A Great Initial User Experience Is Critical

Alan Lepofsky

Vice President & Principal Analyst
Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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As they say, you only get one chance to make a first impression. 

Well, spreadsheet/database vendor Airtable gets a 9/10 for creating an amazing first time user experience that helps guide you through getting started. To help you successfully use their product, they:

• Start you off with a virtual user manual complete with short training videos
• Pre-populate your home page with a few default databases
• Display pop-up guides as you work that highlight key features and functions
• Provide incentives/awards for running through the tutorial, installing mobile applications and inviting colleagues

Airtable provides one of the best first impressions I've ever had with a product. All software vendors, from startups to enterprise software giants should strive to emulate this level of user experience.

PS: Why not a 10/10... because the Guide Book does not (currently) resize with the browser.

HP acquires Aruba – The wireless networking provider – not the Caribbean island

Holger Mueller

Vice President and Principal Analyst
Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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On the morning of March 2nd 2015 the long rumored acquisition of Aruba Networks by HP came through with the official press release (find it here). 

 

So let’s dissect the press release News Analysis style:

PALO ALTO, Calif. and SUNNYVALE, Calif., Mar. 2, 2015 — HP (NYSE: HPQ) and Aruba Networks (NASDAQ: ARUN) today announced a definitive agreement for HP to acquire Aruba, a leading provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies’ boards of directors have approved the deal.

MyPOV – This marks the first acquisition under CEO Meg Whitman, who previously prescribed a ‘pause’ on the acquisition side. We have been a critic of the strategy as HP clearly needed more R&D and product innovation, due to the lack of innovation production under the long tenure of former, former CEO Mark Hurd. The on / off though has hurt e.g. the Software group that has not been growing organically as it should.

Aruba is a Sunnyvale-based industry leader in wireless networking with approximately 1,800 employees. The company had revenues of $729 million in fiscal 2014, and has reported compound annual revenue growth of 30 percent over the last five years.

MyPOV – Aruba Networks (going forward just Aruba) – has capitalized well on the need and convenience of Wifi in the enterprise world. In the ‘cloud only’ enterprise we see only a need for Wifi on premise, as the whole networking market and market place will be transformed. It is good to see HP capitalizing on this trend early. How the market has changed is that HP acquired the venerable 3COM back in 2010 for 2.7B. And that included 3COM IP from 30+ year’s history, including network security and more.

Aruba boasts a highly regarded innovation engine and specialized sales, marketing and channel model, complementing HP’s leading networking business and go-to-market breadth. Together, HP and Aruba will deliver next-generation converged campus solutions, leveraging the strong Aruba brand. This new combined organization will be led by Aruba’s Chief Executive Officer Dominic Orr, and Chief Strategy and Technology Officer, Keerti Melkote, reporting to Antonio Neri, leader of HP Enterprise Group. With this move, HP will be uniquely positioned to deliver both the innovation and global delivery and services offerings to meet customer needs worldwide.

MyPOV – Good for HP to keep the Aruba team in play, but life will be different than ever before for the former Aruba employees. The way how they adopt and make either life better (and hopefully not worse) is going to be key to watch in the next quarters. Aruba related revenue should grow as HP gives Aruba access beyond what the (estimated) 300+ Aruba sales team could reach.

With the shift to mobile, enterprise networking needs are exceeding the capabilities of legacy infrastructure. At the same time, organizations are shifting rapidly to mobility-centric workplaces for their employees, guests, customers and students. The next-generation 802.11ac Wi-Fi standard is critical in enabling this trend. This new technology will support the faster speeds and access to cloud applications that end-users expect. Enterprises need comprehensive, integrated and secure networking solutions to help them transition legacy systems to the wireless edge. Today’s announcement directly addresses these market trends.

MyPOV – Agreed – we only see new buildings and forward looking clients skipping the wired LAN infrastructure for complete wireless network setups. Wireless networks usually pay in a few quarters when measuring ease of use and productivity gains for employees. More nifty ROI strategies exist with offloading corporate mobile plans over to Wifi as needed.

“Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP. “By combining Aruba’s world-class wireless mobility solutions with HP’s leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks.”

MyPOV – HP needed to bring some value to the acquisition – but I am not sure how much value the HP (former 3COM etc.) switch technology can add as the wired past required very different switches than the mobile / Wifi consumption presence. Start to think about load…

“Together with HP, we have a tremendous opportunity to become an even greater force in enterprise mobility and networking,” said Mr. Orr. “This transaction brings together Aruba’s best-of-breed mobility hardware and software solutions with HP’s leading switching portfolio. In addition, Aruba’s channel partners will have the opportunity to expand their businesses with HP offerings. Together, we will build on Aruba’s proven ‘customer first, customer last’ culture, creating an innovative, agile networking leader ideally positioned to solve our customers’ most pressing mobility, security and networking challenges.”

MyPOV – Great plans, good luck with that. And kudos to mention the partner network – will be interesting to see how the new HP / Aruba will deal with overlaps, capacity, conflicts etc. – see below in the implication section.

HP and Aruba believe that by combining complementary product portfolios and go-to-market approaches they will be able to accelerate revenue growth and strengthen the financial performance of the combined HP Networking business, and create a leading competitor in the $18 billion and growing campus networking sector. Overall, HP expects the acquisition to be accretive to earnings in the first full year following close.

MyPOV – Well congrats today – the work starts tomorrow. HP will have to make sure it does not break Aruba culture and drive and Aruba needs to learn to be part of a large mega enterprise. Both obvious things at hand – but way too often broken in the high tech takeover world.

Implications, Implications, …

Implications for Customers

As usual with acquisitions customer needs to look at securing existing build out and roadmap commitments. We advise to quickly look at the acquisition nature for the individual plans – they could be beneficial or a threat. In the case of a threat quickly go back to both vendors to commit to roadmap product plans, services. For a roadmap commitment make sure the right executives from HP are in the room to make the commitment. If advantages can come from the HP portfolio, quickly negotiate switch outs and replacements at defined conditions to long term purchase plans.

Implications for Partners

Partners to both vendors are in a good spot, but make sure to bring in the synergies and chart the value proposition accordingly. Reach out to HP for partnership re-assurance.

HP Partners only – Understand your Wifi strategy and reach out to HP to determine your partner contract. As a fallback look for replacement product strategy for Wifi.

Aruba Partners only – Make sure HP understand the unique value your organization brings to the table and make sure that is seen and understood by HP executives ASAP. As a fallback look for competing products.

Implications for Competitors

Time to chart the future Wifi strategy, there are a few – but not too many vendors left. As of now they will likely command a premium, so plan and move shrewdly. Also expect more entrenched partnerships to be created and use that to your advantage.

Implications for HP / Aruba

HP will have to make sure the two company cultures merge well and remain an agile and key player in the Wifi market. Easier said than done. Aruba will have to make sure to retain key employees to make the acquisition a success. Not every Aruba employee will be ‘thrilled’ to become a HP employee.

MyPOV

Kudos to HP and Whitman to go back out on the acquisition trail, something in my view the company has abstained for too long. If they company was able to execute them given all the work management has with the separation into Enterprise and Consumer, is of course something Whitman needs to make the call. But in my view HP cannot wait longer for getting a more attractive product portfolios in place that it does not have the time (and in networking even maybe not the talent) to develop organically. The challenge now moves from having eliminated whitespace to make the acquisition work.

And finally- why was this an enterprise and not consumer acquisition? If every HP printer is a wifi terminal powered by Aruba… ok heading for the Caribbean now.

 

An Aruba beach (not part of the acquisition...)

Find more coverage on the Constellation Research website here.

----------

More about HP

• News Analysis - HP acquired Eucalyptus - Genius or Panic on Page Mill road? Read here
• News Analysis - Today's Billion in Cloud Investment is HP's and goes to Helion - read here
• A tale of two cloud GAs - Google & HP - read here
• The cloud is growing up - 3 signs from the news - read here
• To HAVEn and have not - or: HP Bundles away - read here

2012, 2013, 2014 & 2015 (C) Holger Mueller - All Rights Reserved

Five Life and Leadership Lessons From The Billionaire's Club

R "Ray" Wang

Principal Analyst and Founder
Constellation Research

R “Ray” Wang is the CEO of Silicon Valley-based Constellation Research Inc. He co-hosts DisrupTV, a weekly enterprise tech and leadership webcast that averages 50,000 views per episode and blogs at www.raywang.org. His ground-breaking best-selling book on digital transformation, Disrupting Digital Business, was published by Harvard Business Review Press in 2015. Ray's new book about Digital Giants and the future of business, titled, Everybody Wants to Rule The World was released in July 2021. Wang is well-quoted and frequently interviewed by media outlets such as the Wall Street Journal, Fox Business, CNBC, Yahoo Finance, Cheddar, and Bloomberg. Short Bio R “Ray” Wang (pronounced WAHNG) is the Founder, Chairman, and Principal Analyst of Silicon Valley-based Constellation…...

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Over the past year, I’ve had the pleasure of speaking with 19 billionaires.  I took the opportunity to ask them for their life lessons and leadership advice.  Because these uber successful individuals came from varied backgrounds and industries, I was expecting many different answers.  However, I was proven wrong.  In fact, the majority of their conversations fit into five common nuggets of wisdom:

Insights Remain Consistent Among The Uber Successful

1. You can never think big enough.  Despite how big you think or how large a problem you hope to solve, there is always a bigger one ahead.  Don’t let the challenge keep you back.  More importantly, don’t let yourself go unchallenged.
2. Do not settle for second best.  Life is short.  Don’t be a maniac but expect more from yourself and others around you.  If you keep high standards, you’ll be surrounded by others who keep high standards in business and life.
3. Remember all you ever have is your health.  When you realize you are on borrowed time, then you’ll change how you live.  Health should never be taken for granted.  Start thinking about how to prolong and improve your quality of life in your 30’s and 40’s not your 60’s.
4. Invest in your offspring and next generation.  Many wish they spent more of their times shaping the next generation including their kids.  Most felt they did not do a great job while focused on their career. Some even suggested that you not have kids unless you are ready to invest the time.
5. Find out who your real friends are earlier than later.  Many mentioned that you only know who your real friends are when you are poor, sick, and unemployed.  Surround yourself with people you can trust with real friendships, not business or social interests.

Do these resonate with you?  What do you think?

Your POV.

Got some nuggets of wisdom to share?  Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Resources

The post Quips: Five Life and Leadership Lessons From The Billionaire’s Club appeared first on A Software Insider's Point of View.

Enterprise Healthcare Management (EHM): Healthcare Meets Analytics

R "Ray" Wang

Principal Analyst and Founder
Constellation Research

R “Ray” Wang is the CEO of Silicon Valley-based Constellation Research Inc. He co-hosts DisrupTV, a weekly enterprise tech and leadership webcast that averages 50,000 views per episode and blogs at www.raywang.org. His ground-breaking best-selling book on digital transformation, Disrupting Digital Business, was published by Harvard Business Review Press in 2015. Ray's new book about Digital Giants and the future of business, titled, Everybody Wants to Rule The World was released in July 2021. Wang is well-quoted and frequently interviewed by media outlets such as the Wall Street Journal, Fox Business, CNBC, Yahoo Finance, Cheddar, and Bloomberg. Short Bio R “Ray” Wang (pronounced WAHNG) is the Founder, Chairman, and Principal Analyst of Silicon Valley-based Constellation…...

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The Healthcare Affordability Crisis Can Be Addressed With EHM Solutions

An affordability crisis has created chaos in the employer-provided healthcare market. With $620 billion in employer-paid costs to U.S. healthcare in 2014 and an annual increase that ranges from 4.7 percent to 10.3 percent a year, employers seek both improved utilization of programs and cost reductions. In addition, 55 percent, or more than half of all Americans, receive healthcare benefits from employer-sponsored programs. 

While early solutions provided transactional management and benefit design, newer solutions have incorporated insight and analytics to improve not only the efficacy of healthcare for employees, but also identify new opportunities. These opportunities not only reduce costs, but also create new programs based on usage patterns, identify opportunities to improve health and wellness, and allow employees to balance out the cost versus quality equation.

Enterprise Healthcare Management (EHM) is a new category of software that helps organizations select, deploy, manage, and influence the outcomes of their healthcare investments to align with business goals such as incentivizing employees to make responsible healthcare decisions; guiding employees to obtain and maximize available benefits; improving visibility into healthcare efficacy for employee and employer; reducing unnecessary or inappropriate care; and revealing usage patterns that could result in new programs.

Constellation expects this category to play a key role in improving the future of work by improving the efficacy of health benefits programs while driving down cost through transparency.

Insights into the Future of Cloud-Based EHM

Signs the healthcare system is not working efficiently:

1. Steadily rising cost of healthcare. Healthcare costs increase on average from 4.7 percent to 10.3 percent a year. While costs go up, quality remains consistent to worse for some employees.
2. Massive underutilization and disproportionate usage of benefits. The lack of insight into program efficacy leads to underutilization and waste.
3. Increasingly complicated regulatory compliance. The Affordable Care Act (i.e. ACA or Obamacare) has created a complicated tangle of healthcare policies and services. Compliance becomes increasingly costly and difficult.
4. Growing complexity of benefits programs. Public and private benefits overhauls led to complexities. These overhauls add costs for or organizations that lack a platform to address the resulting complexities.
5. Rising number of integration challenges. More technology, more integration problems.

Enterprise Healthcare Management Strategically Addresses Health and Welfare of Employees

Recent Constellation inquiries and advisory discussions with clients reveal that both healthcare costs and efficacy of health and wellness programs remain top of mind for CEOs, CFOs, and Chief People Officers. Given the pending retirement of Baby Boomers, the changing business models across industries, and the increasing pace of change, the ‘war for talent’ has intensified across all industries in the United States.

Enterprise Healthcare Management (EHM) helps organizations select, deploy, manage, and influence the outcomes of their healthcare investments so they better align with business goals. Common business objectives of EHM solutions include:

1. Incentivize employees to make responsible healthcare decisions. EHM solutions enable employees to evaluate cost and quality when making healthcare decisions.
2. Encourage employees to maximize available benefits. The best EHM solutions will provide employees access to eligibility and benefit information in an intuitive UX. No more digging, no more ambiguity. Information is available anywhere, anytime.
3. Improve visibility into healthcare efficacy for employee and employer. The most beneficial EHM solutions deliver healthcare usage data to employers, so they may improve the health and productivity of the workplace.
4. Reduce unnecessary or inappropriate care. Using insight and analytics, organizations can identify where and when care was delivered and identify how care can be optimized and when care is excessive or unnecessary.
5. Reveal usage patterns that could result in new programs. Data, insights, and employee engagement can drive future programs based on patterns of use. Applying context that includes location, time, role, gender, relationship, marital status, and other indicators can proactively drive new programs.

Preorder Disrupting Digital Business, published by Harvard Business Review Press In Q2 2015.  Learn more.

The Constellation View: EHM Addresses the Healthcare Affordability Crisis

EHM is a critical technology that will enable organizations to not only survive the massive changes in healthcare, but also succeed as companies are making a shift from:

• Cost to value
• Employer-defined benefit to employer contribution
• Single carrier to multi-carrier private exchanges

The healthcare affordability crisis faced by employers impacts organizational productivity, creativity, and competitiveness. For example, many studies estimate that the average cost of healthcare for active and retired U.S. auto workers is around $1,700 a vehicle, while foreign companies operating in the U.S. pay only $250 per active worker. The lower costs come from not paying the healthcare of retirees.

U.S. healthcare spending was estimated at $3.1 trillion in 2014. Of that massive number, employers paid $620 billion. Add in the confluence of changing payment models, provider shifts, and consumer behaviors, and the private health insurance market faces massive disruption in the next 36 months. While ‘fixing’ the healthcare system requires systemic change, EHM will provide the technological support to organizations navigating the massive transitions ahead.

Resources:

Insights into the Future of Cloud-Based EHM

Your POV.

Ready to take on healthcare costs and improve health outcomes with technology?  Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Resources

The post Research Report: Enterprise Healthcare Management (EHM) – Healthcare Meets Analytics appeared first on A Software Insider's Point of View.

IBM InterConnect 2015 - The Power Of One

Alan Lepofsky

Vice President & Principal Analyst
Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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IBM's newest event, IBM InterConnect is the combination of multiple conferences that used to be held separately throughout the year. In its inaugural run, IBM did an excellent job in telling a consistent story to their customers that spanned all of the IBM software brands. No longer is there one message about security, another about social, another about mobile, etc. Instead IBM is now combining the products and services of the entire company to creating solutions that leverage all of what IBM has to offer.

IBM Watson, BlueMix and Verse were the stars of the show from my perspective, but they were just a small part of what was covered.

Below are the highlights I posted to Twitter during the IBM InterConnect keynotes. Depending on your browser, you may have to scroll down to see all of them.

MWC15 Prep Guide: Disruptive Technology for the Enterprise

Steve Wilson

Former Vice President and Principal Analyst
Constellation Research

Steve Wilson is former VP and Principal Analyst at Constellation Research, leading the business theme Digital Safety and Privacy. His coverage includes digital identity, data protection, data privacy, cryptography, and trust. His advisory services to CIOs, CISOs, CPOs and IT architects include identity product strategy, security practice benchmarking, Privacy by Design (PbD), privacy engineering and Privacy [or Data Protection] Impact Assessments (PIA, DPIA). Coverage Areas: -  Identity management, frameworks & governance-  Digital identity technologies-  Privacy by Design -  Big Data; “Big Privacy”-  Identity & privacy innovation Previous experience: Wilson has worked in ICT innovation, research, development and analysis for over 25 years. With double…...

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R "Ray" Wang

Principal Analyst and Founder
Constellation Research

R “Ray” Wang is the CEO of Silicon Valley-based Constellation Research Inc. He co-hosts DisrupTV, a weekly enterprise tech and leadership webcast that averages 50,000 views per episode and blogs at www.raywang.org. His ground-breaking best-selling book on digital transformation, Disrupting Digital Business, was published by Harvard Business Review Press in 2015. Ray's new book about Digital Giants and the future of business, titled, Everybody Wants to Rule The World was released in July 2021. Wang is well-quoted and frequently interviewed by media outlets such as the Wall Street Journal, Fox Business, CNBC, Yahoo Finance, Cheddar, and Bloomberg. Short Bio R “Ray” Wang (pronounced WAHNG) is the Founder, Chairman, and Principal Analyst of Silicon Valley-based Constellation…...

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Vice President and Principal Analyst, Constellation Research
Constellation Research

Role: Vice President and Principal Analyst focusing on the IOT of Customer Experience and how the cloud is driving more flexible, agile, and robust customer service and customer experiences. In-app or in device customer service is the future. Coverage Areas: Next Generation Customer, Digital Marketing Transformation Bio: As a Vice President and Principal Analyst at Constellation Research, Inc, Petouhoff works with Fortune 100 and 500’s Senior Leadership teams to create strategic customer experience (marketing, sales and service) solutions which engage customers, build brands and grow businesses. Combining her experience as a former Forrester software analyst, PWC systems integrator and change management consultant, Petouhoff leads executive workshops to discuss to not only…...

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Holger Mueller

Vice President and Principal Analyst
Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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pending

Guy Courtin was formerly Vice President and Principal Analyst at Constellation Research covering Matrix Commerce and how the Internet of Things drives the evolution of commerce.  Guy has over 15 years experience in the technology space and specifically in the supply chain space. Most recently he was the Vice President of Research at SCM World. Where he focused on the service providers that empowered supply chains. Prior to SCM World, Guy held numerous senior positions. He was responsible for product marketing at RSi, a retail supply chain solution provider. There managed RSi’s go to market strategy around their leading cloud based supply chain solutions. He also spear headed Progress Software’s supply chain group. Where he was responsible for driving revenue and market share as well…...

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Alan Lepofsky

Vice President & Principal Analyst
Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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Next week 86,000 people will attend Mobile World Congress in Barcelona. This conference strives to cater to EVERYONE--thus it's easy to lose your focus in the deluge of information. For those interested in disruptive technologies for the enterprise, Constellation Research's early adopter's guide to MWC will keep you on track. Keep these disruptive trends in mind while you're walking the floor, and have a successful MWC.

Mobile Workplace

Organizations Must Embrace Mobile Not Just As A Device, But As A Way of Working

By Alan Lepofsky

When people talk about mobile computing, thoughts usually turn to smartphones and tablets. While devices do play a role, mobile describes the larger topic of how people work in motion.

Although mobile transformation has clearly started, few organizations have completed a successful deployment. In a recent Constellation Research survey of 500 organizations, mobile transformation registered as a top priority for fifty percent of organizations, yet only thirty-six percent of organizations perceived their transformation projects as progressing satisfactorily.

Before attending MWC evaluate your organization's mobile transformation progress by identifying its position on Constellation's four-stage mobile transformation framework. Set your goals to advance stage by stage until transformation is complete.

Stage 1: Starting infrastructure (hardware and software) and resource (people and money) allocations to begin projects

Stage 2: Updating existing tools and processes to be accessible from mobile devices

Stage 3: Updating existing tools and processes to be leverage mobile specific features such as cameras, GPS, accelerometers, etc. and to work across a variety of device types

Stage 4: Implementing new tools and/or processes that change the core business (products, services, revenue models, etc.) of the organization

While browsing the floor at MWC remember that while devices are critical components of mobile transformation, devices themselves do not represent true transformation. Devices, including smartphones and tablets represent only the tangible side of mobility. Holistic mobile transformation a simultaneous implementation of devices with the changes in work patterns they enable.

IoT for Matrix Commerce

By Guy Courtin

This year's Mobile World Congress will heavily emphasize what else...the Internet of Things (IoT). Expect to hear a lot about connected homes, connected cars, and how IoT is spilling beyond these areas deeper into the supply chain.

Early adopters should keep their eyes peeled for next generation IoT applications in transportation, manufacturing, warehousing and other parts of the extended supply chain.

The IoT market for commerce isn't as solid as the futurists speaking at MWC will have you believe. Players are still jostling for position, making planning for IoT a little tricky. Try to get a sense for the direction this budding technology market is heading when it comes to standards and IoT platforms. Are we moving closer to standards that will make the connectivity between networks simple? Or is IoT continuing down the path towards specific platforms and standards for different parts of the IoT ecosystem?

Nextgen Apps

The proliferation of mobile devices coupled with advances in cloud technology will push the development of nextgen apps. Mobile devices serve as modern mobile computing platforms. To serve these platforms, enterprises must build new applications to satiate the growing demands of devices and users. Enterprises will experience demand to iterate at an accelerating pace. Embrace these new demands as an opportunity to evolve and innovate.

Holger Mueller describes how organizations can harness trends in mobile to drive innovation.

1. Understand Mobile is more than Mobile. Given that modern mobile applications run in the cloud, they are mostly also created and built with cloud tools. Realizing that these development tools should be more than mobile only tools, but help to craft an overall nextgen apps strategy is a key aspect selecting these tools.

2. Embrace UI Innovation. Enterprises should plan for 6-9 month UI innovation cycles. The pace of innovation of UI is mostly seen as a burden, but Constellation views this as an opportunity to achieve better and more engaging user experiences. The readiness of users to consume apps is phenomenal -embrace the change and leverage it to an enterprise's advantage or risk being left behind.

3. Empower the business user. Most modern development tools have become so easy to use that a business user can build pretty robust and functional rich mobile applications. Empowering the business user is the right strategy as it empowers the business user to make first hand decisions on the respective mobile application, without the delay and risk of 'loss on translation' when working with a technical team.

Mobile Identity

Steve Wilson makes the case for using mobile identification to phase out passwords.

One of the most important trends in the past 10 years is the adoption of smart mobile technology for identity management. The mobile phone is the ideal identity device. It integrates authentication directly with the apps that need it; it's a natural second factor; it's ubiquitous and you notice within minutes when it's lost or stolen; and a mobile phone's built-in cryptography provides smartcard-grade authentication. All those critical identity documents and credentials we carry around in our pockets will soon be managed in secure mobile wallets, with vastly improved privacy. All the major SIM card and mobile firmware providers have major plays in the identity management plumbing, including G&D, Gemplus, Oberthur and Trustonic. And they're all parlaying advanced SIM technology into Machine-to-Machine security in the Internet of Things.

Biometrics and mobile devices go together like strawberries and cream. Voice recognition leader and FIDO Alliance member AGNITiO will be demonstrating new technology to the "Showstoppers" press event on Sunday afternoon.

The GSMA has been collaborating in the past 12 months with the Open Identity Foundation - another sign of how identity and access technology is integrating in the personal device UX. So I'm looking forward to presentations from the likes of John Bradley from Ping Identity and David Pollington from GSMA.

Constellation likes to say that privacy is the inverse of identity: If identity management is what you need to know about someone, privacy management is what you don't need to know! And it's great that privacy gets its own sessions at MWC too. Check out the "User Centered Privacy" panel on Monday afternoon. A strong set of speakers will unpack transparency, choice and control over data in a connected world where information is being broadcast and absorbed more and more continuously.

Highlights:

• Ensuring User-Centered Privacy in a Connected World Monday 16:00 - 17:30
• Keynote: The New Mobile Identity Wednesday 9:15
• SIM: Subscription, Identity and Money Wednesday 11:30 - 13:30
• Navigating the Mobile Contactless Payments Landscape Thursday 11:30 - 13:00

And if you can't be there in person -- or if you just can't be in all places at once -- follow the privacy discussion on Twitter at #MWC15PRIV.

Customer Experience, Branding

Seamless customer experience means consistent branding (not to mention fulfillment of brand promises). Mobile means more channels to manage, but also introduces technologies that can efficiently deliver consistent customer experiences.   

In the digital era, customer experience determines winners and losers. However, as with marketing, analog methods will not work in a digital world.  Now is the time to embrace mobile customer experience.  Natalie Petouhoff explains how.

1. Evaluate your Mobile Customer Experience Strategy: Billions of people are going mobile, so consider how your company is (or isn’t) expanding it’s ability to use mobility to its advantage by examining how your customers will interact with your company via mobile. Strive to create ubiquitous customer experiences, be where your customers are, whenever they are there. Forget multi and omni-channel. Those are either company centric or not truly seamless. Invest in your customers where your customers are: in mobile ubiquity.

2. Prepare a Gameplan: Because some of the most innovative companies in the mobile space will be attending, you’ll want to really set your sights on exploring as much as you can over the four days. Prepare yourself by reviewing your current mobility strategies, set your mobile strategy goals, and then map out the gaps so you have a roadmap to advance from where you are today.

Is your company interested in app technology, cloud capabilities, sustainability or wearables? If you are not sure, there will be plenty of examples of leading brands, for example— AT&T, Jasper, KT Corporation, Oral-B, Sierra Wireless and Vodafone— demonstrating how to deliver fully-integrated, immersive experiences, and showcasing  technologies designed to make our cities a smarter, greener, and healthier places to live.

3. Consider new mobile-enabled realities.

The always-on, always-connected nature of mobile enables every employee to serve as a customer service representative, sales representative, or social media marketer. This shift, however, must run in the company’s DNA. Start planning your mobile transformation now so you can take advantage of this enormous opportunity to harness the power of mobile to transform your organization.

Post MWC Action Plan

Don't let all that inspiration go to waste. R "Ray" Wang explains how to translate inspiration into action.

Use Mobile As The Gateway For Your Enterprise Digital Transformation Projects

Constellation believes that mobile is more than just the device. While smart phones and other devices provide a key enabler, design in digital transformation should take into account how these technologies address the business value and business model transformation required to deliver on break through innovation. These devices provide the sense and respond, the interactivity, and the connectivity required for digital transformation. In applying mobile solutions to the solution design point, Constellation recommends that clients:

1. Assess how third generation enterprise mobile apps can change the business. Constellation recommends that clients seek the most common, cross-functional business problem that cannot be solved with linear thinking. Articulate the business problem and benefit. Show how the solution orchestrates new experiences. Identify how analytics and insights can fuel the business model shift. Exploit full native device features. Seek frictionless experiences.

2. Determine whether to build, buy, or modify. Given the scarcity of third generation enterprise mobile solutions, most organizations fear the need to staff up large mobile app dev shops. Where solutions have been developed, expect to take these solutions as a platform to expand from. Where solutions have not been developed, Constellation suggests that organizations who have strong app dev shops, standardize on a mobile app platform for development. For those who lack the resources or would prefer not to staff up for mobile app dev, Constellation suggests engagement with design shops and system integrators who have platforms that can scale for the rapid of pace of change in mobile development.

3. Plan for a mobile experience workshop. As part of the design thinking process, clients move beyond the inquiry or exploratory conversation to solidify objectives. The process starts with a proof of concept, road mapping engagement, and then the actual enterprise mobility project. The process often results in quick wins for the business side and cuts cost out of the IT budget.

Need additional assistance with your mobile strategy? Contact Constellation. 

IBM bets on the hybrid cloud

Holger Mueller

Vice President and Principal Analyst
Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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• The products gets ready for the hybrid cloud – In hindsight it became clear to me that 2014 was all setup by IBM to show that the vendor understood cloud, was ready for it and a player in the public cloud game. With that established, barbs traded with Amazon, IBM can now pivot to where both business and expertise are – in the combination and co-existence of both on premise and cloud assets for its customers. In short the hybrid cloud scenario. More specifically this means that new code needs to run on premise, and as new code is built with BlueMix, it means BlueMix needs to run on premise. And that is exactly what IBM unveiled with BlueMix Local. BlueMix Local enables customers to deploy BlueMix on local hardware, with IBM taking over the maintenance of the environment from a product code support perspective. More specifically this means that IBM will upgrade all BlueMix Local instances for the customer, in synch with BlueMix cloud releases. Or maybe a few days later. Cloud Purists will be shocked, but customers are likely to see value, e.g. in regulated industries, government, cloud sceptic and high latency geographies. Once you have the infrastructure to propagate and install code like this, it is also easy to create dedicated managed instances of BlueMix, something IBM calls BlueMix Dedicated and has signed a first partnership on this with Indian SI Tech Mahindra.

LeBlanc kicks of with Airbus

• The Organization gets ready for hybrid cloud – To enable the better support for hybrid cloud, IBM has re-organized its development organizations, pretty fundamentally. When a software vendor supports hybrid deployments, it can no longer align product organizations along deployment paths. Inevitably, the development organizations shifts into a matrix modus operandi, with assets being re-used in multiple product or deployment options. When the vendor, like IBM needs to execute a push in a certain direction (here cloud), it means that dotted reporting lines need to be created in the development organization. As such IBM has likely just done the most significant re-organization of its development organization. Speaking with IBM veterans the last similar re-organization of that scale was when IBM created the software group itself. More remarkably the newly created very large product teams have also gone new ways (for IBM) to organize themselves – one of the largest one opting for a functional organization with a centralized product management lead for the complete team. It’s good to see IBM taking bold steps to address the product development organization to align with what the vendor wants (and needs) to deliver to prospects and customers.
  Does it matter how vendors are organized in their product development organizations? Certainly, as software is still build by people and understanding as prospect, customer or ecosystem player how e.g. IBM is organized is important to understand when trying to predict future success, software quality and overall organizational agility.

Hybrid Cloud is the way forward

• BlueMix is the Future – As mentioned above, BlueMix is the PaaS but also the 21st century Rational for IBM, running on premise with the announcement of BlueMix Local. BlueMix is the way how IBM wants customers and developers to build applications, regardless of the deployment and operational model. While BlueMix is based on Pivotal CloudFoundry, it was interesting to see how IBM executives kept stressing how much more IBM had to create around CloudFoundry to make it work for the IBM purposes. And while in the past CloudFoundry was the one and only deployment option, with InterConnect it was clear that IBM considers CloudFoundry only as one of three deployment options, as BlueMix applications can be delivered to run on OpenStack as well as container (Docker – what else) environments. Considering BlueMix is not even one year old (it was launched February 28th 2014) it has made massive progress. A year ago IBM needed partners like Twilio to show standard orientation, partner openness and cool tools, as the vendor had very little functionality / services compared to today… Today BlueMix has over 50 services, and they are not lightweight, but real and key components to build a next generation application.
   

  3 User Categories

  
  So let’s look at the key BlueMix additions beyond Local / Dedicated (see above and the press release here):

• Container support – BlueMix goes the trend of time, but not without IBM making the containers ‘enterprise grade’ and containers deployable in a hybrid way.

• DataWorks comes to BlueMix – Originally a new development from the former InfoSphere family, DataWorks was everywhere with its capabilities to make sense, transform and combine data value added services. Something a PaaS needs, and IBM did well leveraging this asset.
• Collaborative Operations – With this IBM refers to the management tools for hybrid environments, a logical consequence from supporting hybrid.
• Orchestration – Vendors that support hybrid deployments create an orchestration problem, and IBM does well addressing that.
• Security – Always a potential concern and IBM is bringing its security assets to BlueMix, powered by analytics that predict threats and vulnerabilities.
• Secure Passport Services – When enabling hybrid operations, another set of security issues is introduced, using the passport concept to regulate what users are allowed and now allowed to do is a key consequence of supporting hybrid.
• API Harmony – No conference without API management these days and IBM is adding this service to BlueMix, too.
• Watson Zone – Watson brings a significant attraction and differentiation to BlueMix and IBM is shrewd at leveraging this capability in the new BlueMix Watson zone.

So overall good progress with BlueMix, which has focused IBM’s effort more than any development platforms of the last years. The bigger work that is happening behind the scenes is that IBM is working hard to realize the vision it laid out almost two years ago, with the API economy direction. And while BlueMix can consume existing and create next generation application APIs, IBM still needs to make APIs available for its 100+ product SaaS portfolio. And the code and deployment behind these applications needs to become more elastic to allow for cost efficient operations. Moreover IBM is active at signing up data provider partnerships, though it has stopped short of declaring that it is in the DaaS (Data as a Service) game (maybe we see at Insights 2015?).

Analyst Tidbits

• Has Watson stalled? In contrast to Insights 2014 we saw only little progress on the Watson side. And maybe the InterConnect dates came at a bad timing for the product, but it was disappointing to see the same partners and customer on stage at InterConnect as at Insights. And an exclusive Healthcare focus as in the keynote does not do a good service to the potential of Watson, something that was corrected in more detail sessions, but you only have one chance to make a keynote impression. More Watson APIs and Services in BlueMix is certainly the right direction, as it helps Watson adoption and gives BlueMix a unique differentiator in the PaaS market. And maybe we analysts just have too high expectations for Watson, the engineering challenges behind Watson are certainly not trivial.

Watson at MD Anderson Cancer Center

•  IBM Design is on track for its massive objective – It is around 2 years that IBM has started a push into the design space. The vendor has raised its profile in the creative and design community that is taking note of new developments like the IBM Design Language and a massive hiring drive. Like all vendors IBM has to address the challenge to move 100s of products and development teams and it has opted into a central hiring and training model that later embeds the designers with the product teams. It was good to see what thought has been put into putting designers into the right locations, work environment and review processes. In the past many UI initiatives at many vendors have fizzled, faced with the sheer enormous task. But the ongoing IBM effort is roughly 1/3 on the way in terms of product team reach, and the first results are encouraging.

SoftLayer expanding global footprint

• SoftLayer keeps plowing on – IBM announced new recent locations, as usual and seems to be on track for the declared 48 locations by end of 2015. When IBM finds something that works for its customers, it puts its weight behind it, and SoftLayer is a great showcase for that. The need for finding load remains and IBM keeps signing up large deals, but by mid-year it will really be time for a load check on how much runs in SoftLayer across the world. The addition of Power and Watson services will certainly help, with Watson IBM has the option to create a unique environment to operate cognitive (aka performance sensitive and potentially data sensitive applications) applications more locally around the world than any competitor. And the addition of container support in BlueMix allows for the operation of unique applications where the code comes to the data, not the classic model of the data having to find the code.

Tables + Power = Happy Analysts!

MyPOV

IoT Solution Building; Managing and Using Operational Data to change the game!

Andy Mulholland

Vice President and Principal Analyst, Constellation Research
Constellation Research

Andy Mulholland is Vice President and Principal Analyst focusing on cloud business models. Formerly the Global Chief Technology Officer for the Capgemini Group from 2001 to 2011, Mulholland successfully led the organization through a period of mass disruption. Mulholland brings this experience to Constellation’s clients seeking to understand how Digital Business models will be built and deployed in conjunction with existing IT systems. Coverage Areas Consumerization of IT & The New C-Suite: BYOD, Internet of Things, IoT, technology and business use Previous experience: Mulholland co authored four major books that chronicled the change and its impact on Enterprises starting in 2006 with the well-recognised book ‘Mashup Corporations’ with Chris Thomas of Intel. This was followed in…...

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Your enterprise relies on sophisticated management of its manufacturing processes together with its network of sub contractors to utilize expensive assets. Increasingly you need to improve the cohesive operational management in response to calls for more ‘agility’ in responsiveness to market demands. Q. How do you really get the operational game change needed by using real-time IoT sensing data?

Research report now available: The Foundational Elements for the Internet of Things (IoT)

A. The key lies in utilizing ‘Operational’, or ‘Industrial’, data that describes machine, or other physical activities, as opposed to the process transaction recording data of IT. The manufacturer of a complex machine wants to monitor and record data about a series of operating parameters that relate to both setting, and managing, its operational efficiency.  The parameters and formats this requires are simply not the same as the data created and used by Enterprise IT applications. This difference introduces new terms to describe both the data itself, and the application of Internet of Things in this environment.

Terminology for this new environment would describe; Using the ‘Industrial Internet of Things’, IIoT, to manage with ‘Operational Data’ in an ‘Industrial Technology’ environment. Other terms in use include The ‘Industrial Internet’ referring to an US alliance started by General Electric, and ‘Industry 4.0’ started as an alliance of leading German manufacturing companies, but now including other European manufacturers.

There are numerous ‘standards’ emerging all of which focus on creating a data model with a dictionary that suit a particular industry, or type of application. A list of six major ‘standards together with their major technology vendors supporters can be found here, this is not an exhaustive list, but does show the some of the mainstream generic standards together with their major technology supporters.

Before getting into the detailed data aspects it is useful, or even necessary, to have gained a bigger picture of how sensors are connected in order to provide the data. The proceeding blog entitled IoT; Solution Architecture; Network Integration Groups and Fog Computing. provides this overview and is recommended reading. The blog on The Enterprise Digital Business Platform similarly provides good background on how Enterprise Architecture integrates IoT, or IIoT sensing, and other Internet based Front Office activities with Information Technology Back Office Enterprise Applications.

However, first moves into gaining the advantages of IoT, and IIoT data can be obtained relatively simply by using one of the ‘solution packages’ offered by Salesforce, SAP, and others. These provide for a number of permanently connected sensors on the customers own network using suitable, predetermined, formatted data outputs that support direct coupling to their products. These may be to a Services Hub to remain in the Front Office Services environment, or to feed data into a Back Office ERP suite. This closed internal use is often thought of as the ‘Intranet of Things’ due to the resemblance to first generation Internet based technologies of the past always starting as controlled local deployments on in-house networks.

The whole reason for adopting Internet based technology is to create ‘open’ environments that effectively scale externally, therefore the first generation ‘proprietary’ defined direct data connectivity deployments of the Intranet of Things quickly move to require access to a wider range data from increasingly specialized Internet of Things, or Industrial Internet of Things sensors. Data Models and a new form of Data Translation quickly becomes an important issue.

Various names are used to describe the challenge of collecting and rendering usable the data from a wide range of different types of IoT/IIoT sensors, ranging from ‘the final mile problem’, ending up with the more accurate description of the issue as requiring ‘Intelligent Integration’. A further term that defines the solution, and is easier to understand, is the use of an ‘Inter-Layer’ between the sensors, and the services, servers, or other destination devices, that collects, transforms, buffers and forwards the data when required in the format of the request.

There is an important first step in deployment before the data even starts to flow and that is to find, and align, relevant legacy data to provide the contextual information about each sensor and its location. As this data will be spread across the Enterprise in many different applications this is a costly and time consuming activity that needs to be included into the deployment cost cycle. It can be performed by a specialized set of tools or service provider to both drastically reduce both the cost and time; failure to do so can reduce, or defer, the cost benefit of large scale IoT/IIoT deployment.

The ‘Alignment of Sensors’, during deployment is a seldom-mentioned start-up cost and to gain a good appreciation of exactly what alignment delivers, and why it is important, the demonstration of ‘Aligned Sensors’ shown in this Building makes the point clearly. The three examples show the creation of a physical location, usually required to be a graphical display simply to make recognition faster and easier, followed by the alignment of existing data to the sensor. This data might include full details on the sensor itself including its data types and formats, but there will be a great deal of relevant data in legacy files. This might, as an example, include details on the machine type, its history, any service contracts, and similar data that will help to place context on the real-time data being provided by the IoT/IIoT device.

The task of Sensor Alignment results in what is generically known as Asset Mapping. The second task of the Inter-Layer beyond the primary role of managing data flows and formats, is to ensure that an Enterprise can identify in full all its information about each of its Assets which are deemed important enough to require sensing.

 Asset Mapping tools for Sensor Alignment may in time become part of the developing Enterprise Digital Business Platforms from major Technology vendors, but currently it is usually provided with the Inter Layer from a handful of specialist vendors such as the www.AssetMapping.city the source of the examples. A properly performed Asset Mapping deployment ensures that all IoT/IIoT sensors remain individually recognizable. This then leads to the prime role of the Inter Layer in providing usable data from the entire IoT/IIoT installation regardless of type and format, together with control over who may access what sensor data under what conditions.

IoT, and IIoT, devices will produce massive amounts of data, many analysts suggest huge, almost unmanageable, amounts, in reality most of this data will only be used after an event has occurred to provide the context as to why it and how it occurred.  The Inter-Layer also manages short-term buffering for the stream of small data direct from the sensors, consolidating and forwarding this data in blocks to be processed more efficiently.

There are three standard conditions that result in this collated data file in the buffer being sent to a nominated receiving Service, or Application. Firstly, and most obvious, is a preset trigger on an individual sensor, or a collective threshold on a group of sensors, being exceeded. The resulting data forward may be for the individual sensor, or more likely for a Network Integrated Group, (see proceeding blog on Fog Computing), of sensors that will help provide a broader, context on the circumstances surrounding the individual sensor data. At triggering event can also result in a shift from collating data to real-time forwarding of data from the selected sensors to allow continuous monitoring.

The second standard condition uses time stamped forwarding at pre-selected intervals such as once an hour, or once a day, for stable conditions where longer-term trends are of interest. In first generation Intranet of Things and Industrial Internet of Things this is the most likely sensing condition to be deployed.

The third type of request is a reverse of the first, created by an event at the receiving Service, or Application resulting in a call for the data file to be forwarded, and possibly a shift into real-time sensor data forwarding. This may be referred to as ‘taking the query to the data’ as it can be used to gain access to selected data without creating huge volumes of low value data flooding across the Network. Proactive requests from Services, and Applications as a crucial part of dynamic operational management is set to grow in importance. As the Internet of Things becomes established with a growing number of sensors accessable as part of sophisticated activity management. This relates to the example provided in the previous blog IoT; Solution Architecture; Network Integration Groups and Fog Computing.

The diagram below is taken from this blog and was used to illustrate how sensors are discovered, integrated into a Network Integration Group, to be a virtual network that relates directly to the activity of a single factory call off. This process would be repeated for other call offs, or any other process activity that gains from real-time, or near real-time data monitoring of process.

Building onto this the Operational data flow as outlined in this blog together with the use of the three standard conditions for data forwarding would present the following addition to the scenario;

1. Time stamped forwarding would be used as routine background monitoring to make sure that progress of IoT/IIoT sensed activities were in line with planned expectations, and crucially match the planned manufacturing production schedule.
2. If the logistics truck became caught in a traffic jam and fell behind schedule then a trigger event would result in notification to the Manufacturing Production scheduler.
3. This would result in the Manufacturing Production scheduler requesting data to be forwarded from other call offs in order to plan a re scheduling of planned production based on their availability projections.

First generation deployments of IoT, and IIoT, sensing is straight forward resulting in immediate, usually impressive gains, though Asset Mapping and Sensor Alignment may be an unexpected, possibly costly, element. However, as with all rapidly developing technology that is forming the basis for transforming business capabilities it is necessary to have a broader understanding of the direction and types of capabilities that will be emerging.

In particular with any Internet based technology, where a significant part of the benefit in the longer term will be through external connectivity to gain participation with others, the importance of ensuring that your approach will not turn into a barrier preventing longer term advantageous capabilities, makes an understanding of direction absolutely critical.

Research report now available: The Foundational Elements for the Internet of Things (IoT)

Social Business / Collaboration Vendor List

Alan Lepofsky

Vice President & Principal Analyst
Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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New Research: Inside the 9 Cloud Trends Every CXO Needs to Know in 2015

Holger Mueller

Vice President and Principal Analyst
Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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Here’s an excerpt of the report. Over the next few weeks I’ll dive into detail on the trends outlined below.

Consumption at the Pace of Innovation Requires Adoption of the Cloud

Changes driven by innovation have affected IT since its very inception. Whenever a piece of hardware or software gets released to the enterprise, most vendors of these products are already working on the next release if not the next generation of these products. The result – generally available products are already “old” when released. Consequently, all constituents in the market know that the next and better product is right around the corner.

However, enterprise technology leaders must invest at some point with a bet on a distinct combination of hardware and software to accomplish their current and future business objectives. As of a decade ago, these projects required a sizeable capital expenditure (CAPEX) investment with a planned lengthy write-down period. Hence, IT leaders would cling to their IT infrastructure for as long as they could.

With Software as a Service (SaaS), leaders found an alternative to owning applications. Enterprises rejoiced at no longer having to pony up funds for large capital expenditures to purchase perpetual licenses. In fact, organizations celebrated access through subscription. CAPEX was saved, despite the fact that the behind-the-scenes hardware infrastructure of vendors was highly proprietary and tuned to the nature of their SaaS offerings. Only later did stand-alone Infrastructure as a Services (IaaS) offerings come into place.

To a certain extent, the IT world has come full circle. It was a best practice for owners of mainframes in the 1950’s, 1960’s and even 1970’s to rent out excess capacity of their mainframes to interested third parties. Today, the very same effect happens in the public cloud, with the difference that the providers have invested into their IT infrastructure for the sole purpose of renting it out. A number of now defunct players were doing the same last century - buying mainframes with the purpose of renting them out to other enterprises. With the public cloud here to stay, a business model emerges that actually is very familiar to IT leaders of two generations ago.

Looking ahead, Constellation identifies nine key trends in the state of the cloud for 2015:
 

Read more about the report: Inside the Nine Cloud Trends CXOs Need to Know in 2015

Download a snapshot of the report

Stay tuned. Next week I’ll dive deeper into the trends above.