By: Stuart Coetzee, Business Development Manager, TISSL Posted: 11th April 2013 Copyright TISSL © 2013

Businesses such as Livebookings.com tell us that bookings made using smartphones or tablets are inexorably on the rise. So if mobile devices can increase bookings and add to the eating-out experience before a diner even enters a restaurant, how can they make table-side ordering and service work better for both parties?

Mobile devices are great upselling tools. A traditional fixed-point terminal can generally cover between 25–30 diners in a full-service environment depending on the layout of the restaurant. A handheld or tablet can cover around 50–60 without a drop in efficiency; even more with a strong system of runners. Having your best customer-facing staff equipped with mobile devices not only increases throughput but also significantly increases upselling. Our clients report an increase in dessert sales and additional drinks in sections where handhelds are employed.

Handhelds also have the advantage of being able to be used in outside areas. While running extension leads and cat5e cables can often severely damage the efficiency of a system, a tablet can be used in an outside area with the access point tucked neatly away under cover, away from the elements. As large numbers of tablets can run through each access point, once the infrastructure is in place it’s very easy to scale up as needed.

We've recently trialled giving diners the ability to order directly from their smartphone, and the results were impressive. As well as reduced hardware costs, the upselling of drinks and desserts hit 20%. This app is being further developed to automate upsell features and link them directly to the user’s dining history.

Tablets are amazing, especially for managers who pride themselves on their service skills. When running TISSL EPoS, a table plan can be viewed—meaning managers can instantly spot tables that are suffering from slow service, are waiting for food or need to pay. It’s a real bonus to have this information to hand and to be able to instantly give discounts, make voids, see counts of ‘specials’ and perform other managerial functions without having to return to a fixed-point terminal.

Mobiles are great devices for the sommelier too, providing a real-time count of the number of bottles remaining in stock, with warnings preset to alert staff to recommend alternatives if certain bottles are running low or out of stock. With this level of automation and instant data access, sommeliers are freed up to spend more time on the floor doing what they do best, offering expert advice and service.

Queue-busting is undoubtedly the optimum method of handling takeaway and counter-based services as it breaks down ordering, payment and food delivery into three separate steps—and here mobiles are unbeatable. While customers queue for food, a staff member goes up the queue and takes orders. As another staff member on the till is taking payment, your first staff member is simultaneously taking new orders. A third staff member can be introduced to deliver food if the volume of trade is high enough. Using mobile devices to take orders effectively turns a 3–4 terminal operation into a single, slick operation which increases sales.

TISSL client, Stein’s Fish & Chips Restaurant in Padstow, is a fan of mobile devices.  The team has found that 55 quality meals can be served in 15 minutes using a single queue-busting device; such is the effectiveness of the process! Queue-busting releases kitchen time, allowing chefs to cook more intricate meals whilst still providing fast service. As restaurants can then turn more meals and offer better quality, queue-busting is a sure-fire winner.

We all know that the customer experience can make or break the fortunes of a restaurant. When combined with well-trained and attentive staff, mobile POS can unquestionably bring greater speed and efficiency to the point of service, and that makes for satisfied customers.

By: Ruth Cheesley, MD, Virya Technologies Posted: 18th January 2013 Copyright Virya Technologies © 2013

1 Cloud-Based Phone Calls
Phone calls will increasingly become cloud-based and less reliant on a network provider. We will also see more cities roll out widespread free Wi-Fi. Most recently, we’ve seen Google, in an expansion of its role as an Internet Service Provider, introducing New York City's biggest contiguous free public Wi-Fi network in the Chelsea neighbourhood of Manhattan. Chelsea is home to Google's New York headquarters, which conveniently means employees out at lunch breaks or area meetings will be able to remain productive even while out of the office!

WIder access to Wi-Fi access points outside the home and office will facilitate more people switching to freely available data-based communication methods such as Google Voice, Google+ Hangouts and Skype. Mobile phone network providers will have to adapt quickly as their market share for voice calls and text messages begins to diminish in favour of data equivalents—ultimately if everything runs via Wi-Fi, who needs a network provider?

2 Further Enhancements To The Shopping Experience
The shopping experience online will mirror in store, with 360 degree visuals via Google maps, interactive shopping, reviews and ratings pulled in via microdata and checkout shopping via Google shopping. We may even see the introduction of banking with Google too! The in store experience will generally continue to blur with the online world, pulling in reviews and price checking through apps and later, gadgets, which can be worn while shopping. ‘Scan while you shop’ will include the ability to also see what your friends and family like.

Google is already introducing an online game—Ingress—which transforms your local area into a real time strategy game, allowing you to do battle with other gamers as you walk down the street or explore new towns, fighting for control over monuments or areas of the city. Imagine the potential of interfacing with the much coveted Google Glass, and the potential for developing the Augmented Reality aspect for businesses is quite mind boggling.

The question is, will you ever get to work on time?!

3 SEO Gets Personal
Search engine optimisation will increasingly become more about content optimisation and author reputation. Personal profiles will become more important, as author rank develops its impact on search results. Businesses will need to refocus on the people behind the business and not just the brand itself. Those who embrace this approach will take leaps forward in their search engine results page position, those who choose to ignore will stay where they are or lose ranking.

People don’t buy from people, they buy from people they know, like and respect.

4 Social Signals Take Priority
Social signals will influence where search engine listings appear, with those which your network have recommended or shared being ranked higher than those with no interaction. For example, Google is building a trust-based network (Google+), whereby your social habits and connections inform your search results. If you search for something in Google when you're logged in, results which have been recommended (by '+1' or sharing) by your network (people in your Circles) will begin to be served up above those which haven't—the relevance algorithm won't be ignored completely, but precedence is beginning to be given to resources which people in your network think are useful.

5 Open Source is King
Businesses will increasingly turn to open source technologies, as closed source systems become less able to keep pace with the rapid pace of change, with the crowd-sourced development model being unsustainable in a closed source environment. Small businesses in particular will drive this shift in mentality, requiring their larger business suppliers to adapt. Joomla! For example, is fast becoming one of the most popular open source content management systems in the world, powering almost 3% of the web and exceeding 30 million downloads—the chances are during your day you probably browse at least one website using Joomla!.

6 Responsive Website Design
Responsive website design will become the norm, allowing websites to be displayed on a range of devices with ease. Frameworks such as the Twitter Bootstrap and Foundation 3 will be adopted as best practice for website design.

7 Rising Apprenticeships
More young people will turn to vocational learning and apprenticeships in preference to university as tuition fees rise and leading drops. Technology-related apprenticeships will become more popular as the benefits delivered by a tech-savvy young workforce make them increasingly attractive candidates for employment and training. At Virya Technologies, we have taken on two apprentices in recent months, having employed our first apprentice as a full time website designer following successful completion of his programme in October 2012. The level of support available means that many companies can now actively engage with a younger, more tech-savvy workforce, who have the passion, skillset and potential to thrive in a technology-based environment.

By: Craig Sears-Black, Managing Director, Manhattan Associates Posted: 9th November 2012 Copyright Manhattan Associates © 2012

Online buying has really started to take off in the UK, as evidenced by Capgemini figures that reveal how online sales hit their highest growth this year, recording a huge 17% jump on July 2011 and a 9% increase month-on-month from June 2012. This equated to an estimated £6.5bn spent online (an average of £128 per person), a significant rise on the £5.8bn spent during July 2011. Total growth for the year to date stands at approximately 13%—in line with previous forecasts.

The advent of the multi-channel retailing era has led to increasingly complex interactions with customers. Now savvy shoppers can not just shop in stores, but also browse online, price check using a mobile device, place a ‘click-and-collect’ order or give customer feedback via Facebook. Multi-channel retailers are getting used to consumers doing their research online before appearing in the store to make the actual purchases or vice versa. In many cases, a sale may span several channels before it closes.

This places tremendous pressure on the retailer to support integrated, cross-channel selling. The value proposition for multi-channel sales is to capture the sale that would not occur otherwise because a customer no longer relies exclusively on shopping at a brick and mortar store.

In perhaps a more global context, as retailers move to multi-channel selling and grow to a broader geographic customer base, the natural tendency is to increase inventory levels close to the point of demand. Retailers often gravitate to opening regional distribution centres to minimise stock-outs and satisfy their geographically dispersed customers. They add new layers of software and inventory systems to deal with each new retail channel and track each channel through separate divisions and warehouse systems. 

Controlling inventory, being ready to ship on-time and handling a diverse customer base are all far more difficult when using discrete systems for different retail channels. Depending on how resources have been allocated within the company, this can create unanticipated supply chain bottlenecks, resulting in late shipments and customer complaints or supply chain blind-spots where poor inventory visibility results in missed sales opportunities.

Just as customers have no patience for order delays or non-availability, shareholders have no patience for reduced inventory turns, increased inventory investment, and higher working capital costs. Because of these dynamics, the traditional, static way of fulfilling a customer’s order out of the geographically closest warehouse is becoming outdated and traditional inventory systems, not up to the task of effectively and accurately supplying products through the mixed modes of modern retailing, are putting companies at a competitive disadvantage.

Today’s retailers—as well as distributors and manufacturers—need to adapt to the new multi-channel retailing era or face being marginalised or bankrupted. To adapt they need to harness the power of inventory across their enterprise and involve suppliers and logistics partners in direct customer order fulfilment. They must strive to reduce costs across the supply chain without sacrific­ing order quality and on-time delivery.

Distributed Order Management to the rescue
The answer is to integrate supply chains for multiple retail channels to efficiently meet growing demand. This has been challenging despite promises of integration tools, standards and web services. Today, software solutions have matured significantly and have been deployed to help companies accomplish this by weaving the varied strands of their distribution systems into a cohesive, effective network. The promise is rapidly becoming reality as retailers, solution vendors, and the marketplace gain experience in deploying these solutions.

For example, Distributed Order Management solutions allow managers to combine existing inventory systems and coordinate multiple retail channels by sourcing products from warehouses throughout the world. Effective solutions provide system-wide inventory visibility, sourcing, allocation and delivery scheduling at each stage of the fulfilment process in real time. Using configurable rules, Distributed Order Management solutions can aggregate orders as they are placed, evaluate global inventory and then match demand to supply. An effective solution can provide precise understanding of product demand and backlog for all markets—not just single channels.

Distributed Order Management solutions build on traditional inventory systems such as Warehouse Management solutions that determine the fastest and most efficient ways of shipping a particular order whether they be ‘singles’ for web, mobile and call centre orders or bulk consignments for store orders.

Whilst Warehouse Management solutions enable companies to fulfil orders from a specific facility, Distributed Order Management allows companies to connect their Warehouse Management solution, which manages the supply side of the equation, to equally sophisticated instruments such as planning and replenishment solutions on the demand side. This allows companies to manage the diverse ways customers now have of ordering, while orchestrating higher service levels.

By using Distributed Order Management solutions, companies gain a global view of inventory and an equally broad view of the pathways their customers use. These solutions help companies recognise that not all customers are created equal, and that the end user has many choices about where to shop for a product and where to buy it.

Distributed Order Management solutions take into account the fact that different channels demand different levels of service. Some channels need product faster, while others are less time-sensitive. Failure to meet a “just in time” commitment has different consequences depending on how close it is to the final customer transaction.

Tightly focusing the supply chain on that final transaction should be the goal of every effective retail operation. Distributed Order Management solutions allow managers to do just that by optimising supply and demand without building yet another inventory system. When used effectively, Distributed Order Management solutions become the “nervous system” of the entire retail supply equation.

Ultimately, all customer channels—e-commerce, m-commerce, f-commerce, s-commerce and v-commerce plus and the more traditional channels of physical stores, catalogues and call centres—must be brought together into a fully integrated order and distribution loop through coordinated inventory management, instantaneous communication and rapid response to spikes in demand. While few companies can take on such a monumental project all at once, Distributed Order Management solutions offer a cost-effective alternative to gain most of the benefits full integration can achieve.

Order fulfilment execution will always be the gold standard by which successful companies are measured. Distributed Order Management can help them get there, and stay there—whatever new challenges come along.

Recommendations for Action

1. Cultural Re-Alignment
It is critical to understand that improved inventory management and fulfilment process­es must be preceded by appropriate corporate cultural shifts. Before designing, buying, or implementing any Distributed Order Management system, ensure your organisation has been realigned to support overall brand prosperity, rather than the health of any one channel. Corporate incentives and measurements should be driven from brand, rather than channel, profitability.

Once the organisation has been brought together, a cross-channel, cross-functional team must be formed to select and shepherd the implementation of a Distributed Order Management System.

2. Next, Pilot a Subset of Products and Geographic Areas
The importance of pilot programmes as a means of fleshing out gaps in workflow, system parameters, or user expectations prior to full system rollout can never be over-stated. Select a narrow set of products across a narrow geographic area for the first 90 days of implementation and experimentation. If appropriate, let your customers and suppliers opt into this pilot programme, with the understanding that they will be receiving the benefits that have been discussed, such as greater fill rates or multi-channel order status visibility. An end-to-end coalition of the willing will be a key contributor to project success, and involving your customers will demonstrate the win-win results that Distributed Order Management promises.

3. Finally, Move to Full Rollout
With incentives and metrics in place, customers on board, and a successful 90-day pilot complete, it is time to move on to full rollout. Start with requests to product and logistics suppliers to participate in the new program. Brand the initiative to the customer base 90 days after full rollout, to be sure that all kinks have been worked out of business processes.

By: Andy Tudor, Head of Multichannel Solutions, Retail Assist Posted: 16th May 2012 Copyright Retail Assist © 2012

Over the coming year, retailers who are already looking at the different ways in which their customers transact with them will start to introduce new IT initiatives to turn their plans into reality.

Many are starting to espouse omni-channel, and see it as an all-encompassing ‘win-win’ interface that enhances customer convenience and satisfaction whilst increasing the retailer’s ability to secure sales. 

Based upon the work being currently undertaken by the most forward-thinking of our clients, we forecast see the following developments:

Mobile Payments – expect to see significant trials of mobile payments, marking a move beyond today’s mobile-optimised websites and mobile apps to focus on linking different channels. The goal here is a scenario whereby customers start to research purchases on their mobile ‘phone, then go into a store to confirm their choice, possibly completing the purchase on their ‘phone as well.

With the adoption of NFC payment technology, firstly via debit or credit card and ultimately evolving to mobile ‘phones containing NFC chips, we will see organisations such as the London Underground use this payment technology to replace their Oyster cards. Once mobile payment technology is implemented widely within the public sector, we believe any resistance to using it within retail will lessen.

Reduced fixed till usage - we anticipate a move away from fixed tills. We’ve already come across a number of tablet trials and, as platforms such as Windows 8 start to come out, we may see a real challenge to Apple’s monopoly. Tablets can offer a desirable, added level of in-store customer interaction. Having that one-on-one experience with the customer is particularly important for retailers whose product price-points or overall basket values are high.

Social Networking – social networking has already proved its worth by enabling retailers to better understand their customers. In extreme examples, we’ve seen executive board members respond to Twitter feeds and Facebook comments. At an operational level, we also see retailers studying live Twitter streams to gauge consumer reaction to new product launches.

We predict that social networking practices will be widely introduced into the workplace and become an integral part of a retail organisation’s culture. In the case of ‘bricks and mortar’ retailers, social networking can usefully underpin internal communications between Head Office and the store estate, utilising a technology that is becoming commonplace in the lives of their employees.

International web sites – this is another exciting area and one where we foresee considerable expansion. We will soon see dedicated foreign language websites which will break down the barriers to international trade and permit customers logged on from anywhere in the world to shop in their native language and currency.

But what about the economics of these new omni-channel initiatives? In simple terms, can the retail industry afford them?  

Whilst few deny the importance of omni-channel, we see differing levels of investment in this area, not surprisingly. Some retailers are making good progress and are integrating their channels seamlessly.  Others are simply making sure that financial pressures are well managed and are not investing in omni-channel this year.

Those retailers that have decided to embark upon omni-channel developments are at different stages of the journey. At one extreme, we see some who have yet to embark on a mobile strategy, still trading via ‘bricks and mortar’ stores or on the web. At the other, we are working with businesses at the forefront of omni-channel, which have already merged their channels and have achieved the goal of enabling customers to start product research using one channel, and make their purchase using another.

Behind the scenes, those clients leading the omni-channel charge are joining up their fulfilment processes and making their stock and inventory work very hard. In cases where a web purchase cannot be fulfilled from the Distribution Centre because it is not holding product in stock, we see product coming from store to complete the process; a great example of omni-channel in practice.

Looking back three to five years, a retailer was considered to be at the cutting edge if it had a transactional website.  In the past year or two, we’ve seen multi-channel retailing become more commonplace, which has allowed customers to travel in different channels in their purchasing journey.

Today, the buzz is omni-channel, and is all about the customer shopping the brand as opposed to shopping the channel. A consistent brand and shopping experience can be provided regardless of the channel chosen. That’s real progress.

In conclusion, if a retailer gets omni-channel right, there are clear financial benefits to be gained. Take the example of one of our clients who has now enabled fulfilment from stores as well as via the DC for web purchases. It attributes a 20% sales uplift on a like-for-like basis in the 8 weeks leading up to Christmas 2011 to this new approach. No one can dispute that this is a very significant return on investment, and one which clearly justifies the initial capital outlay.

Retail Assist is a retail-only IT services & solutions provider with an extensive client base, especially in the apparel retail sector. Visit www.retail-assist.co.uk

By: Andy Tudor, Head of Multichannel Solutions, Retail Assist Posted: 31st January 2012 Copyright Retail Assist © 2012

ME commerce is a term recently coined to describe the coming together of mobile and e-commerce. The ethos is simple: virtual shopping is no longer limited to sitting in front of a PC or laptop, browsing and buying from retail sites, an activity traditionally referred to as e-commerce. With the advances of mobile/smartphone technology, ME commerce empowers consumers to make decisions to buy from multichannel retailers, wherever and however they choose. The retailer’s challenge - and opportunity - is to recognise that ME commerce is about ME, the consumer, and MY ability to be more demanding and shop ‘smarter’.

We live in a world where channels are multiplying and integrating at an impressive rate, so the retailer’s approach to underpinning an ME commerce offer is important. It is predicted that by 2014 there will be more mobile users than PC users. Mobility opens up a new dimension to retail, one which will fast become the norm if the 2014 statistic holds true. So how does the retailer adapt to this omnipresent channel of mobile commerce?

Most users carry mobile phones wherever they go. In fact, according to a Pew study conducted last year, two thirds of adults sleep with their mobile phone next to their bed. Among ‘millennials’ (young people aged 18 to 29), this figure rises to 90%. The Pew research further reveals that adults who use text messaging receive an average of 10 texts a day, rising to 50 a day in the case of most teenagers.

The potential for retailers to connect with consumers through mobile devices is significant. However, "with great power comes great responsibility". Retailers would be well advised not to annoy consumers with irrelevant marketing to their mobile phones or attempt to interact with them at inconvenient times. When used correctly, the immediacy of the mobile channel brings benefits to seller and purchaser alike; consumers gain access to the goods they want when they want, and retailers enjoy sales they would not have generated in the past.

There has been much debate about whether mobile commerce generates incremental sales or simply cannibalises existing sales. For consumers who are ‘glued’ to their mobile devices, facilities such as free Wi-Fi instore can encourage them to shop there and then. This may sound strange – after all, why would you want to order something online if it was there in front of you? Take the case of an item of clothing not being available in the required size instore; how much better it is to order it online without leaving the store than go home and perhaps forget to make the purchase.

It’s important to note too that a mobile phone is not only a tool for shopping ‘on the go’. It’s also a useful means for consumer and retailer alike to learn more about a product, whether that be scanning a barcode in store to get rich media product content sent to a phone, or searching the internet by phone whilst on the high street to find out which shop is holding stock.

Many consumers have preferred shopping channels. I, for example, prefer not to shop in-store but to order online from the comfort of my own home. My wife has a different approach. She enjoys the high street experience, browsing in several shops before making a purchasing decision.

Retailers need to accept that, whilst my wife and I are by no means exceptions to the rule, there is an important subset of consumers who are channel-agnostic. These customers are indifferent to the channel they use but do want to engage with the product and the service the retailer provides. In 2005, 97% of the consumers surveyed by the eCommerce Times said that they expected a channel-agnostic customer experience. I wager this percentage will have increased over the past seven years.

Even stronger than our preference for certain channels is our emotional attachment to brands, particularly those in the fashion sector. To capitalise on this, retailers should enable consumers to engage positively with their brands, irrespective of the channels they decide to use, in a way that is well managed and consistent throughout. Even though it is calculated that a consumer who shops across multiple channels is up to four times more valuable in monetary terms than one who shops via a single channel, creating a universal consumer experience remains of paramount importance to all retailers.

As retailers introduce multiple shopping channels, they should factor in the consumer’s ability to influence brand identity positively and negatively.  They have much to gain from mapping consumer interaction with each channel to market, putting in place support functions that give real-time visibility of cross-channel consumer interaction, and building a mechanism to capture feedback at the point of purchase.

At the end of the day, smart retailers will entice us to interact with their brands in many new ways. They may have already created a profile of your previous brand contact and purchasing habits. Having made a purchase in a ‘bricks and mortar store’, you may now have received an invitation on your mobile phone to download the retailer’s smartphone app or been directed to their mobile-optimised website. A friend’s Facebook profile may have prompted you to click through to a retailer’s profile page, where you found yourself able to purchase from within the social media site. In short, you may, without knowing it, already be part of an online community which has a common loyalty to certain brands.

To win our custom, retailers must evolve their IT strategy from 'multiple channels' to 'multichannel', by providing consumers with the same destination, no matter what vehicle the consumer uses to reach it.

Andy Tudor is the Head of Multichannel Solutions in the Aurora Client Services division of retail-only IT services and solutions provider, Retail Assist. Contact Andy at andy.tudor@retail-assist.co.uk.

By: Peter Abrahams, Practice Leader - Accessibility and Usability, Bloor Research Posted: 21st June 2011 Copyright Bloor Research © 2011

Apple has announced the next version of OS X, the operating system for Macs, called Lion. It has 250+ new features, including 11 specific accessibility features and several more that could have accessibility benefits.

OS X ships with a built-in screen-reader, VoiceOver, which has been extended to:

In previous versions you have been able to increase the size of the cursor arrow but when you did this the arrow became pixelated and the edges were rough; a small improvement in Lion is that the larger cursors remain crisp and sharp. I have my cursor at a medium size, it makes it easier to find on a large iMac screen and I look forward to this small improvement.

Another feature I use quite frequently is screen zoom. If there is something on the screen that is small, some text or often an image, I zoom the whole of the screen so I can see the relevant section blown up. The problem is that I lose the rest of the screen. Lion will offer a function to have a section of the screen in a separate window and to zoom on that. This is the best of both worlds with magnification of the bit of the screen of interest whilst still being able to see the context of the rest of the screen.

Lion improves Braille support with support for more languages and more control of the verbosity.

A significant usability feature is that for existing OS X users Lion will be downloadable from the Mac App Store. The advantage being that there will be no distribution of CD and installation from CDs. For people with disabilities this should be a welcome improvement, just a couple of clicks to download (see my article Usability and Accessibility of Apple Mac App Store) then a few more to install.

FaceTime, the video calling facility built-in to Lion, provides high-definition video which should make it possible for deaf people to use sign-language when communicating remotely. Lion improves and extends the support for full-screen apps. Full screen applications are beneficial to people with vision impairments as the content can be bigger and also there are no distractions. Full-screen should also help people with dyslexia, and some cognitive limitations. With Lion you can have multiple applications open in full-screen mode and you can navigate from one to another using a gesture.

Preview is the tool for looking at images and PDF documents. Lion provides a magnify feature to enlarge specific text or images.

Safari, the built-in browser, has some new features that will benefit people with disabilities.

The Screen Sharing feature enables one Mac to observe or takeover control of another Mac. This provides an excellent remote user support facility. Many users with disabilities will find this useful as it means that small issues can be diagnosed and resolved quickly and effectively by a remote friend.

And finally you can resize a window from any side or corner.

Lion will ship in July and is great value at £20.99 in the UK ($29.99 in the US). I plan to upgrade as soon as it ships as the accessibility benefits are significant as well as many other of the 250 new features which will improve my usability and general user experience.

By: Gerry Brown, Analyst - Digital Marketing & CRM, Bloor Research (Moved) Posted: 23rd February 2011 Copyright Bloor Research © 2011

In the last 12 months technology shares on the NASDAQ exchange have appreciated by 28%. Apple’s have appreciated by c. +80%, Oracle’s by +40%, IBM’s by +30%. Microsoft’s haven’t: they have gone in reverse by -3.5%. Apple is now valued at c. $100bn more than Microsoft.

It’s not that Microsoft’s results have been so bad. Their accounts would have a finance man purring like a stroked kitten. Microsoft’s tech industry leading 30% net margin on revenue of $62.5bn created $18.7bn of net profit in 2010. Nice.

But these impressive figures hide a break from the past. Bill Gates was always obsessed with winning market share and beating the competition. Nowadays Microsoft is more interested in making loads of money and retaining the status quo. The decline of the Roman empire was exactly the same. This is what the stock market is picking up on.

While rivals such as Larry Ellison at Oracle are still hungry for scalps (for example, he said recently that he was ‘going after’ HP at the top end of the server market, ‘and then we’ll take on IBM’ with his new Sun servers and Exadata), Microsoft has been focusing much of its effort on internal wrangling and re-structuring.

Four of CEO Steve Ballmer's direct reports have departed since May 2010, including Stephen Elop who left to run Nokia, and Robbie Bach who ran Microsoft’s entertainment division. Three Divisional Heads have now gone (out of 5 Divisions), the most notable being the President of the $15bn Servers and Tools Business (STB), Bob Muglia.

Ballmer’s email to Microsoft employees on January 10th said “I have decided that now is the time to put new leadership in place for STB. This is simply recognition that all businesses go through cycles and need new and different talent to manage through those cycles”. This doesn’t quite square with Ballmer’s letter to shareholders last September that reported ‘outstanding momentum across all our businesses’. The ‘new and different talent’ to run STB is Satya Nadella, a 20 year veteran at Microsoft. He ran the Bing search engine division. A chance to blood new talent has been missed.

The Microsoft mission statement: “to enable people and businesses throughout the world to realize their full potential” lacks real teeth. Previously, one key objective was ‘to take on difficult challenges and see them through to the end’. When Microsoft entered a market it would never let go. It offered a low price point with continually increasing product functionality, the marketing machine kicking in with slick promotions and resellers everywhere. Microsoft’s goal was to become market leader no matter how long it took, and it was a compelling proposition.

Imagine my surprise when they retreated from the performance management market: “we've made it clear in the public domain that we're shifting back, or pulling back… (from) where we were essentially in a competition with the Cognos and Business Objects of the world“ they said. What? Pulling back? Microsoft? Unheard of.

Microsoft’s aura of invincibility has been punctured. Once upon a time, if Microsoft entered a market, existing suppliers knew they were in trouble and clamoured to sell up and get out. Not anymore. Now they fancy their chances of winning against Microsoft and tucking into that soft underbelly of late-to-market indecisiveness that has bedevilled the company in recent years.

The lion needs to wake itself from its gentle slumber, put its teeth back in, get up from its soft bed of grass and go and kill something if it’s going to restore its lost pride of place in the industry. However, a change of leadership may be required at the very top of Microsoft for this goal to be achieved.

By: Simon Holloway, Practice Leader - Process Management & RFID, Bloor Research Posted: 24th January 2011 Copyright Bloor Research © 2011

Back in September 2010 I was asked to meet those in HP responsible for devising the strategies being offered by HP to the Retail sector, Kobi Elbaz, Director, Client Solutions and Workstations, EMEA, and Emily Dart, Manager, Retail Store Solutions.

Before I look at the solutions and offering being promoted by HP, let us look at the retail industry itself. The retail sector has undergone its biggest ever evolution in the past decade as new technologies have given people greater choice in the way that they shop. People, who shopped in stores or via catalogues and door-to-door selling, can now buy online or via digital TV. This has resulted in a multi-channel approach to selling by retailers intent on ensuring they maximise sales and market share with 2009 and first half of 2010 being one of the toughest recorded for retailers.

Liane Dietrich, MD at LinkShare UK, has recommended[1] that, as customers have increasingly turned to the web in search of the best deals, the key for retailers looking to boost dwindling high street sales is to seize the opportunities which exist online by promoting their brand whilst also appealing to the ever-savvy online shopper. Dietrich explained that one consequence of the bargain hungry customer is that they have become more demanding—shoppers now require more from their online shopping experience and expect to be presented with something extra to entice them into making a purchase. Therefore to be successful in an economy which still remains fragile, retailers need to adapt to the changing shopping habits of their target audience as well as maximise the potential of all revenue streams available to them. Today’s customers are often better connected and hold more technology in their hands than exist in stores, thus enabling to compare prices online through their mobile phones.

So what is HP offering to help with these issues? Elbaz explained that HP saw that retailers needed to invest in the latest customer-friendly technologies and, given HP’s penetration into the vertical with 90 out of the world’s top 100 retailers being customers, HP equipment handles over 3.5 billion credit card transactions annually. Besides the hardware that people are familiar with from HP, the company also offers:

• Point of Sale (POS) systems based on an industry standard architecture with a small footprint;
• Digital signage ranging from 42 inch to 47 inch LCD displays; and
• Kiosk implementations that include media players, Touchsmart PC and touch screens.

From a services viewpoint, HP aim to be the partner at the customer’s table. In the retail sector they are offering 4 solutions:

• Store-to-go is an outsourcing alternative for retailers. It is an alternative to traditional services of contracting and ownership, relieving the retailer of the burdens associated with purchasing, deploying, managing, optimising, and upgrading an in-store environment. It is a packaging of a hardware offering with surrounding services.
• Business intelligence is based on HP’s business intelligence offering using HP hardware, and Oracle or Microsoft software, with services. BI solutions can be built to understand how customers shop, identify up-sell and cross-sell opportunities and assess same-store sales to increase turnover. Process improvements, as well as operations and IT efficiencies, can be identified and implemented. Collaboration solutions that allow retailers to interact more closely with both customers and suppliers are also included.
• Track and trace visibility allow distribution networks to operate more effectively through increased visibility and performance metrics. In this package of goodies is an RFID solution that provides automation, efficiency and reliability of data to support real-time decisions and advanced analytics for a competitive advantage. There is also pick-by-voice or pick-to-light solutions to select the right part, track inventory and send part replacement notices. There is support for both RF and WLAN mobile devices. Both warehouse management and workflow management capabilities are included in the solution.
• eCommerce and Multi-Channel provides support for customer direct services, customer relationship management, business continuity as well as data protection and recovery.

Solutions means software, particularly applications, and that is not part of the HP portfolio. However HP has formed major partnerships with the 3 main application vendors in this sector: SAP, Oracle and Microsoft. In addition they have formed strategic partnerships with best-of-breed vendors such as Retallx, eRetail and Aldata, to name just a few. HP, through its EDS acquisition, has also acquired a number of vertical-oriented services groups. Now each of HP’s software vendor partners has a retail strategy of their own, so there would seem to be potential for a disconnect. To avoid this HP are working closely with their major software partners to integrate their solutions with their software partners’ solutions. This results, if you like, in a SAP, a Microsoft, an Oracle and so-on version for each solution, where appropriate.

In an additional discussion with Mario Vollbracht, Worldwide Segment Executive, Retail and Consumer Goods Industries, explained that HP saw that being independent of software applications meant they could better respond to their client’s need with a right combination of hardware and software appropriate to the existing portfolio of their client. Vollbracht also stated that HP saw their ability to manage effectively the legacy portfolio of retail organisations coupled with HP’s business process knowledge as key differentials in the services offered by the company.

Elbaz expounded that HP not only saw the technology challenges that retailers faced, but they themselves were retailers with stores in Eastern Europe where they were learning to eat their own dog food. He explained the HP POS solution was able to support the necessary agility that business required, by providing solutions that were compatible as a retailer grows with the ability to customise and redeploy systems. This business requirement goes hand in glove with HP’s known stability and reliability as a hardware vendor. This approach is very like the way HP went into the use of RFID to track and trace.

For what I was told of a year or so of operating, HP has come a long way, but I felt that they aren’t quite there. The information on the solutions on the web site is a bit sketchy, but what there is is very good. I also feel that the relationship with different software partners needs to be made clearer in terms of what is actually being offered by the partnership. Retailers aren’t going to buy hardware; they want cost-effective and quick-to-implement solutions which give a very good ROI. These solutions are a combination of hardware and software. It is a case of nearly there, but if you do start talking to them you may well find the solution you are looking for, but you need to do some digging to get there.

[1] Online retail in 2010, John Ronson, Retail Digital, Apr 16, 2010

By: Gerry Brown, Analyst - Digital Marketing & CRM, Bloor Research (Moved) Posted: 22nd December 2010 Copyright Bloor Research © 2010

1. Technology Designed for Everyone
The technology world enlarged in 2010. Consumers fell in love with the intuitive user interfaces and versatile technologies of the likes of Apple, Facebook and Google. “I love it” is how most users describe their iPad or iPhone. Now consumers want their enterprise applications to offer a similar user-oriented experience.

Consumers want to use technology to connect and collaborate with others. No wonder social networking and mobility is such a compelling combination for businesses and end users alike. Facebook’s mobile users spend twice the amount of time on Facebook than do non-mobile users. This trend is set to accelerate. Hence SAP acquired Sybase for its mobile apps platform, rather than its database technology.

Traditional consumer brands such as Sony (Vaio) and Samsung (Galaxy) and Amazon (Kindle and EC2) sense there is more money to be made in Tech. As do a vibrant new group of entrepreneurs who have developed well over a million consumer apps on various platforms. There are no barriers or caveats to entering the software market anymore.

2. Making Technology Easy to Consume
How do you turn 5 keystrokes into 3? How do you make software that is immediately intuitive and makes obvious sense to users? Can you eradicate training courses and user manuals? Some enterprise software user interfaces look like a flight pilot’s cockpit instrument panel.

Steve Jobs, the Tech industry’s top CEO, loves a clean design and simplicity for Apple’s users. The iPod has 5 keys; the more modern iPad has 3. Jobs launched the iPhone 3G using only 11 presentation slides, only one of which contained any words. BBC Radio 4 recently praised Apple’s use of clear, plain English in its product descriptions, in contrast to Microsoft’s “techno-babble” that can alienate potential customers.

Facebook starts product development from the premise ‘how does this product enable users to communicate and collaborate?’ Features and functions become outputs rather than inputs when viewed in this manner.

3. Getting the Price Point Down
High price is the last great bastion of the technology industry. But now many vendors offer similar ranges of products to address similar markets; the key decision-making criteria has become availability, brand, and most importantly, price—especially as vendor pricing is increasingly transparent and available on the Internet. There are now many options open to vendors who want to offer more customer value and encourage product trial.

BI vendors such as QlikTech, Tableau, TIBCO Spotfire, and MicroStrategy offer generous free trial product downloads. Open Source vendors such as Jaspersoft, Pentaho and SugarCRM offer free entry-level products. Spiceworks’ network management software is free if you are prepared to accept the advertisements that come with it. Many excellent applications, such as Google Analytics for example, are totally free of charge. Virtually every kind of software platform, application and service is available for rent as a SaaS service in the Cloud.

4. Be different
Competition from now on will be intense and hostile. Recent aggressive moves from industry titans such as HP, IBM, Oracle, and Microsoft set the tone. Product innovations are easy to copy and vendors are now stepping on each others’ toes. To insulate themselves against this trend the top Tech companies have transformed themselves into brands. They hope to encourage a sense of community and belonging, customer loyalty and advocacy, and a feeling that customers cannot do without them.

Brand Finance now rates Apple, Microsoft and IBM as 3 of the most valuable ($) 5 brands on earth—ahead of Coke, Mars, Persil and all the other household names. Six of the Top 20 valued brands are from the Tech industry. The thought-leadership, business model innovations and brand distinctiveness that characterise these vendors are now becoming essential pre-requisites for success in Tech.

Those that are truly market-oriented and customer-centric will thrive. Those that remain product-led will find it increasingly hard to attract new customers. Business agility will be key to vendor survival. ‘Be fast and be bold’ as Facebook says. Vendors, customers and users should endeavour to embrace this dictum.

If there are vendors or others who want advice in any of the above, drop me a line and I will be glad to help. It is Xmas after all ;-) And a happy New Year to all our readers!

By: Fran Howarth, Practice Leader, Bloor Research Posted: 20th December 2010 Copyright Bloor Research © 2010

The retail industry is one that operates under tight profit margins and the recent economic slowdown has seen those margins put under even greater pressure, with many retail chains reporting that the outlook for consumer spending still remains fragile. Key initiatives in the retail sector revolve around cost-cutting activities, drives to improve operational activities and efforts to reduce shrinkage.

Much of these efforts focus on expanding the use of technology within the retail sector. In the past few years, retailing processes have become increasingly automated, including activities at the point of sale, and processes such as promotion management, forecasting and replenishment. The use of automation for processes previously performed manually has led to efficiency and staff productivity improvements that directly impact the bottom line.

However, through automation, many of the old safeguards such as manual inventory checking and management authorisation have disappeared, opening up further chances for shrinkage to occur. According to the Global Retail Theft Barometer 2010, produced by the Centre for Retail Research, retail shrinkage averaged 1.4% of retail sales across the 42 countries that it surveyed. There have been numerous studies concerning losses from shrinkage within the retail sector. They all vary to some extent, but all agree on one point—losses from employee theft or error account for more than half of all shrinkage, more important than shoplifting in almost all the surveys. Also, employees tend to steal larger amounts; according to the Centre for Retail Research study, average loss though employee theft amounted to $1,890, compared to $438 for shoplifters.

Automation can actually make theft or mistakes easier. For example, the University of Florida found in a recent study that "sweethearting" is the most common type of employee theft, whereby cashiers fail to ring up or scan goods for friends and relatives at the point of sale, or scan in a much cheaper item than the one handed to the customer. Another growing problem is organised crime, whereby criminals may falsify receipts to claim unwarranted refunds or pressure employees to slip them goods or, increasingly, gift cards that can be sold through online auctions.

Retailers looking to combat retail shrinkage, measure promotions, manage staff productivity and identify training requirements now have a new tool available—VigilancePro Retail from activity management software vendor Overtis. The tool is built on its flagship VigilancePro Enterprise product, which is used by enterprises and public sector organisations to visually identify and manage exactly how users access, process, store and transmit sensitive information.

Recognising that there is a specific need for such capabilities in the retail sector, Overtis developed VigilancePro Retail for this vertical, with the software integrated with the point of sale terminal to analyse all transactions made to look for unusual patterns of activity that could point to a mistake being made, such as the wrong change tendered, or deliberate acts of fraud. Every transaction entered by the employee is captured for real-time reporting and analysis and a visual record is captured by linkage with CCTV surveillance systems for evidence of which employee performed which actions.

Retailers will see many benefits from integrating this software into their existing security environments, from reducing profit shrinkage and excessive refunds or under-ringing to improving productivity by identifying areas where staff need extra training. However, it could also have extra advantages, such as preventing customers from abusing or harassing staff, helping retailers to meet health and safety objectives.

Not only will VigilancePro Retail be a boon to retailers, it could also be beneficial to other organisations involved in activities where staff handle money, such as bars, restaurants and fast food outlets, petrol forecourts and in the gaming industry, and casinos in particular. By providing a user-centric view of all transactions, backed up by video evidence, such organisations have a powerful tool available to them to reduce the cost to their business and other problems associated with the insider threat.

By: Simon Holloway, Practice Leader - Process Management & RFID, Bloor Research Posted: 17th December 2010 Copyright Bloor Research © 2010

Last week I posted a short blog post about a collaboration between NXP Semiconductors and Google to provide an open source software stack for NFC. This article looks at this announcement in a little more detail.

In a nutshell what is this announcement about? Well, firstly, the NFC stack will be fully integrated and validated on Gingerbread, the latest version of the Android platform. The other piece of the announcement relates to Google integrating NXP’s NFC controller (PN544) into its newly launched Nexus S phone, co-developed by Google and Samsung, offering users access to NFC based services and applications. Using natural touch gestures, NFC devices can easily pair with accessories, interact on a peer-to-peer level to exchange data, and connect to a huge installed base of reader and tag infrastructures. Nexus S will offer consumers immediate access to read NFC tags.

What does this mean? For developers of applications for Android it means that they are now able to access an open source NFC implementation, giving them a faster time to market and lower implementation and development costs. NXP have agreed to help drive the development of new applications that extend the touch interface of mobile applications beyond the devices screen.

Launched in 2009, the PN544 is, according to NXP, the world’s first truly industry standard NFC controller. It provides a fully compliant platform for handset manufacturers and operators to introduce NFC devices and services. The NXP PN544 chip is fully compliant with all released NFC specifications on the Single Wire Protocol (SWP) connection with the SIM and the Host Controller Interface (HCI). Features include:

• Small footprint for size optimisation
• Optimised for low power consumption
• Optionally working in Battery Off and Battery Low modes
• MIFARE 1K/4K Reader/writer functionality enabled in host baseband
• Optionally available with an modular, generic and platform independent software stack
• Optimised antenna designs for best-in-class RF performance

Eric Chu, Mobile Platforms Program Manager, Google, stated: “With NXP's contribution, the introduction of NFC in Android provides developers, service providers, and device manufacturers a game-changing opportunity to deliver new services while enabling users to interact with each other and the physical world in ways previously not possible.”

NFC is a market proven technology co-invented by NXP in 2002. In 2004 NXP co-founded the NFC Forum to lead the collaboration with all industry stakeholders and help standardise the technology. NFC technology evolved from a combination of contactless identification (RFID) and interconnection technologies. NXP have been ranked as the number one contactless IC vendor by ABI Research for three years in a row.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 23rd November 2010 Copyright Interarbor Solutions © 2010

Three megatrends are shaping the next generation of successful businesses and governments. We're talking about pervasive mobile applications, highly responsive cloud-computing models, and knowledge-adept social collaboration.

Indeed, by the year 2020, The Economist newspaper predicts there will be two trillion devices connected to the Internet. And taking a look at where we are right now, McKinsey Quarterly reported in August that in 2010 some four billion people have cell phones, and 450 million have access to a full web experience.

Moreover, Jupiter Research reports that by 2014 there will be 130 million enterprise users involved with mobile cloud activities. Not only is access pervasive, but the amount of information available is also exploding. The Economist again reports that in 2005 mankind created 150 exabytes of digital data … and in 2010 we will create fully eight times more data.

These changes are at a pace they’ve never seen before as they address them and try to drive these into their business or government environments.

As these trends literally rearrange business ecosystems, a gap will surely emerge between the companies that master change -- and exploit enabling technologies -- and those that fall ever further behind.

For those that do step up to the challenge -- expect a relentless emphasis on rapidly recurring innovation to meet dynamic customer and citizen demands.

Our latest BriefingsDirect podcast therefore focuses on how these trends -- and rapidly evolving customer, citizen, and user expectations -- are newly impacting the enterprise. We also examine how technology advancements are making it possible to drive innovation to meet these new demands for instant gratification.

Please join HP executive Dave Shirk, Senior Vice President of Worldwide Marketing at HP Enterprise Business, as we explore how HP is working to make headway, so that the next few years bring about a generational opportunity -- and not a downward complexity spiral. The discussion is moderated by BriefingsDirect's Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Shirk: We're seeing a lot of shift going on in the marketplace right now. When we look at where consumers are driving business or where citizens are driving government, it's fundamentally changing the way they operate. We've seen three core things come out.

The business models are all starting to change the way in which people approach markets across the globe. That's having to really rethink the ways in which they've approached them versus traditional methods.

The second thing we see is this whole shift in mobile computing meeting cloud computing and the enterprise trying to figure out exactly how to take best advantage of that to create this competitive advantage. Then, the overall demographic piece weighs into that.

We've seen the rise of the millennials, as they're being referred to. All of these things are forcing business and government to stop and say, "You know what, if we're going to grow or we're going to create a service differentiation, we're really going to need to do things differently and we're going to have to do it way faster than we've ever done it before."

According to the Society for Engineers, you now have over 800,000 graduates in China, over 300,000 graduates in India, 100,000 some in Japan, etc. It's over the last 10 to 12 years that each of those graduation rates has occurred. They are part of the workforce now.

When they went through that process, they were always connected and they always were involved in a social network-based environment. They have a level of their lifestyle that is all tied to this always-connected environment. When you think about the ubiquitous computing that that has brought to them, as they enter the workforce, they are looking at things a lot differently than ever before.

They bring new ideas. They bring new ways to that. They're looking for businesses that will support that kind of methodology and structure. ... So, when we think about that Gen X group that's out there, we see them driving an enormous part of this change.

The last statistic I saw was that they are now over 50 percent of the workforce. The analogy that's always used is that, to them, being connected and always involved in some type of networking-based collaboration or information sharing of some sort is about the same as it is for you and me to pick up our remote controls and turn on our television sets. That's already having a very profound effect on how business and government are changing and the expectations that are out there in the marketplace.

It's this [demand for] immediate or instant gratification: "If I can't get what I want in the following way, I’ll find the business or government environment where I can." While the government piece maybe a bit harder to change, the business piece isn't, and so the competitive pressure to serve this audience, both as the consumer and also as employees, is a big part of that shift.

We see technology as the cornerstone to being able to solve some of these trends and some of these challenges.

We call that the "Now Problem." They want this, they want it done now, and they want it to work a certain way. We see technology as the cornerstone to being able to solve some of these trends and some of these challenges.

These changes are at a pace they’ve never seen before as they address them and try to drive these into their business or government environments.

This is probably best represented in the words of Professor Gary Hamel, who is the foremost business visionary person out there in the marketplace. In his book, Future of Management, he described it as "whiplash change."

That's very much the case when I speak with our clients both on the business side and the government side. That's exactly what they're sitting there and thinking and working through right now.

Role of technology

We look at the technology piece of [the change] and say that you really can't [react] any other way -- the pace of it, the speed of it, and some of the complexity associated with it. For a long time, business has tried to use labor as an arbitrage to try to work their way through this and just throw bodies at it. That's quickly dissipating. The speed and the connectedness that we see, and the confidence level that all of these types of services require make it no longer possible to go through that.

What we see is IT completely embedded in the business. Over the next couple of years, that's going to continue to be the trend and the strategy that will play out in the way in which business and government work this. Ultimately, that's going to be the differentiator that drives an ability not only to serve these constituencies but to out-serve them, and that's going to be the name of the game.

[The solution] starts with a desire to change and to drive innovation in a different way. We sit and we think about the fundamental change in this. We talked for years that the business was focused on business processes and business process reengineering. While that’s still very important, it isn't going to go away any time soon.

It's becoming obvious that the bigger driver and the more significant trend is the information process, understanding the segments of business or government that need to be addressed. What their needs are, what they want, what they want to talk about, the ways in which they want to interact is all part of this change that’s taking place.

Closing the gap

So, as we start to pull back and step back from this, we look at that and we look at this vision that we have for the Instant-On Enterprise and how we’re enabling end-users to become a part of that, how we’re enabling businesses and governments to provide that type of capability. It really is about closing the gap between what IT can provide and what the business needs to be able to serve each of those audiences.

What we’ve launched with this vision is to put the foundations in place to make that possible and take a journey with our clients both from the business side and government side and help them move down that particular path, find ways to navigate these challenges and these trends, and to out-serve and to over-serve all the audiences that they need to meet the needs of.

[This change] is inevitable. Different businesses and governments will have, at different times, one of these four elements be more important or more significant to them at different points. All of them share the innovation requirement. We see that in all things.

Our view is that the innovation has to take place throughout that information process. It doesn’t matter whether it happens back at the data center or at every touch point. Innovation has to take place throughout for the business to meet the needs of those segments I’ve referred to earlier -- how it services it, how it conducts itself, and ultimately how it meets our needs or exceeds the needs of the audiences.

Agility really is about instant expectations, and can we turn things on and off, instead of just setting them up for a rainy day and hoping that they will be used.

Agility, optimization, and risk all vary in and out with innovation in terms of their need and their level of importance.

Agility really is about instant expectations, and can we turn things on and off, instead of just setting them up for a rainy day and hoping that they will be used. A big part of technology’s trouble in the past was that we created all of these things and we never had a plan for ending their lifecycle or turning them down slightly, so that we could turn up other activities or other possibilities in an instant-on environment and an instant-on enterprise. A core part of the vision that we see is being able to drive that agility to meet those changing business needs.

When HP looks at the Instant-On Enterprise, the enablement of that is really a journey, and we’ve got to figure out what pieces make the most sense. There are some things that are much easier to focus on first and then, over time, to gain more and more of an Instant-On nature.

Critical success factors

Flexibility, security, speed, automation, and insight, those absolutely are attributes that we look for. We see them as the critical success factors in the way in which every part of the environment that IT leverages, drives, and embeds in the business has to come forward.

And yet, everybody is stuck in this mode of an enormous legacy that they have to deal with, and that gets in the way of being able to provide some of these new capabilities.

We’ve spent a lot of time and gotten a lot of expertise over the years trying to figure out the best ways to address these albatrosses that are keeping IT from being able to deal with the needs of the business. In the Instant-On Enterprise journey, that's a big part of the set of steps that we have to work through and work with our clients to make sure that they understand where to prioritize.

In the first few months that I have been here, one of the things that I've learned is that HP, as a company, has this incredible breath and depth of portfolio.

Our view is that we work with our clients and figure out ways that they can, as we say, shift that equation. How do you shift from 70 percent of that equation being focused on operational management, and 30 percent, if you are lucky, being spent on new and innovation-based capabilities to help or assist the business and its growth versus shifting it the other way? How do you get to 30 percent operational mode, and move forward with 70 percent focused on the business?

Changing business models

When I spend time with clients and listen to them, a big part of what they're asking for is, "We’ve got these pressures. We're seeing the business models change and we're experimenting with some things. We're seeing the mobile and the cloud computing pieces coming at us like a freight train. At the same time, we're seeing the demographic shift both on the end-user consumer side and on our employee side. We need strategic partners to help us with this. How do we navigate this? What is the way in which we should do that? HP, do you have a point of view?"

We're in a unique position, because we're the only company in the marketplace that has a full suite of consumer products, and yet we stretch all the way back through to the data center. All the capability, all the offerings, that are in between, all the services that are necessary to address each of those pieces, are contained inside the portfolio capability that HP has of hardware, software, and services.

We looked at this and said, "How do we take the best combination of that breadth of portfolio and bring those together in a set of solutions to best address what we are hearing over-and-over from some of the research that we’ve done and listening that we’ve done with our clients?"

They need to figure out how to modernize their applications. We want to make sure that we are there and we’ve got a set of solutions for that. They’ve got huge data-center issues in terms of how they're going to transform their data centers and deal with more virtualization-based techniques and capabilities and bring networking and storage and compute power together in some fashion.

They’ve got this issue of enterprise security. They need to figure out how to secure the enterprise. I don’t mean desktops, but all points, all touch points of the enterprise -- how they build applications, how this information is accessed inside and outside of the organization, and then fundamentally optimizing that information, the ways in which you store it, the way in which you deliver it, the way in which you print it for that matter, all those pieces.

Hybrid delivery for us is our answer to the multiple ways in which a customer or client has to go through the process of building or delivering on these various technology services to their enterprise or their government.

Then, they need to underpin that by the best way to figure out how to deliver it. Do we do it for them? Do they build it themselves with our architecture, and our capability set, and our consulting expertise? What combination of ways makes the most sense to set that up?

... We help our clients work their way through that with a series of workshops that we do to get in and investigate. We ask a series of questions, do a series of exploratory-based activities that help prioritize where we think the quickest return on investment is, because all these require some level of return to feed the next one and then the next one.

Hybrid delivery for us is our answer to the multiple ways in which a customer or client has to go through the process of building or delivering on these various technology services to their enterprise or their government.

There’s an enormous amount of talk about cloud in the marketplace today. HP has been at the forefront of that, but we have a little different position. We think it’s unique and we think we're the only ones out there that are really positioned to do this, which is the concept of hybrid IT, where you’ve got a mix. You’ve got a mix of traditional on-premises-based capabilities, but then you figure out what private cloud or public cloud-based capabilities best serve your business on a global basis.

HP comes in and, unlike other companies that try to force you into a one-size-fits-all structure, we sit down with the client. Our unique IP in this area is that we have an incredible depth of intellectual capital in this particular area, which is helping the clients figure out the best balance or mix of the delivery methods.

We can help them build it. They can host it or we can host it for them. We can provide those services from our public cloud-based capabilities or from our private cloud based capabilities. We really don’t care, if that blend changes over time. That’s the beauty to the journey to this Instant-On Enterprise.

Starting small

Our data says that most customers still start with a small private cloud implementation to really understand the value of the cloud and demystify it. We’ve said that there is going to be something after cloud. We don’t know what that level or that style of computing is going to be, but our architecture is built such that we’ll be ready for that. For our clients, we’ll help navigate them through each of these pieces, and that’s the important thing for us.

We have our new HP Hybrid Delivery Strategy Service, which is a place for a client to start, get a basic orientation, sit down and understand kind of where we think they might consider beginning that journey. So that, along with a number of other capabilities that we have to help them through these various workshops, I think is really the best place for them to start.

There are a whole series of workshops globally that our teams are set up to do, everything from a small couple-of-hour based interaction to a full suite of in-depth analysis and consulting engagements to work with a client. ... We ask a series of questions, do a series of exploratory-based activities that help prioritize where we think the quickest return on investment is, because all these require some level of return to feed the next one and then the next one.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: HP.

You may also be interested in:

• Shoemaker on how HP CSA Aids Total Visibility in Services Management Lifecycle for Cloud Computing
• HP Business Service Automation portfolio gives IT the tools it needs to compete with clouds
• HP eyes automated apps deployment, 'standardized' private cloud creation with integrated CloudStart package
• HP adds new consulting services to smooth the enterprise path to cloud adoption

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 17th November 2010 Copyright Interarbor Solutions © 2010

The rapidly changing and fast-growing opportunity for more businesses to reach their customers and deliver their services via mobile applications is at a crossroads.

Over just the past two years, the demand for mobile applications on more capable classes of devices, such as smartphones and tablets, has skyrocketed. Now businesses need to figure out how they can get into the action.

Small and medium-size businesses (SMBs) especially need to reevaluate their application development and end-user access strategies to be able to deliver low-cost yet impactful applications to these newer devices. This goes for reaching employees, as well as partners, users, and customers.

Hopefully, there's a shift in the skills required to put these applications on these devices and distribute them. The emphasis on capabilities is moving from hardcore coders -- with mastery of embedded platforms and tools -- to more mainstream graphical and scripting-skilled workers, more power-users than developers.

This sponsored podcast explores how mobile application development and the market opportunity are shifting, and how more businesses can quickly get into the mobile applications game and build out new revenue, share more data, and provide better direct customer access in the process.

Our panel consists of Roger Entner, Senior Vice President and Head of Research and Insights in the Telecom Practice at the Nielsen Co., and Wayne Parrott, Vice President for Product Development at Genuitec. The discussion is moderated by BriefingsDirect's Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Entner: About 50 percent of all devices being sold in the US right now are smartphones. We expect smartphone penetration to be at about 50 percent by the end of next year. Almost 60 percent of smartphone owners are actually using applications. That’s a huge percentage.

We're now at that sweet spot where it makes a lot of sense for businesses to have applications both for their consumers and their employees alike, because there is enough of an addressable base there.

We just launched our second edition of our Mobile Apps Playbook. But to quote numbers from there, year-over-year second quarter '09 to second quarter '10, smartphone penetration in the US went from 16 percent to 25 percent.

Now, we have 3- and 4-inch screens that are actually readable. We're not just merely replicating a desktop experience, but actually tailoring it to the device and working with the strengths of the device rather than with the weaknesses.

The devices that we call now smartphones are little computers that today are as powerful as laptops a few years ago. I always say that this little thing you have in your hands, a smartphone, has far more computing power than was used by NASA to put men safely on the moon and bring them back alive.

Applications becoming easier

And now Apple, Google, Microsoft, and the others, have software development kits (SDKs) out there that make app development a lot easier than it has ever been.

If you have a talented developer or a talented person in your department, he might be able to build that internally. Or, there are now myriad development shops out there that have the capabilities to build applications and charge only a few thousand dollars -- and that's single digit thousand dollars -- to have a capable, usable application.

There are a lot more people who know how to program these things, and have good ideas of applications. There is a really good market out there to put the two together.

Parrott: We’re seeing a big move toward interest in mobile at the development side. What are the factors that’s really led to the explosion of mobile apps? It's not only the smartphones and their capabilities, but we also look at the social changes in terms of behavior.

People more and more have a higher reliance on their smartphone and how they run their lives, whether they are at work or on the move. The idea is that they are always connected. They can always get to the data that they need.

Basically, we're taking their lifestyle away from their desktop and putting it in their pocket as they move around. More and more, we see companies wanting to reach out and provide a mobile presence for their own workforce and for their customers.

The question they ask is, "How do we do that? We already have a web presence. People have learned about our brand, but they can't access this through their smartphones, or the experience is inferior to what they’ve come to expect on the smartphone."

We're seeing a big growth of interest in terms of just getting on to the mobile -- having a mobile presence for the SMBs.

Still a great deal of complexity

If you take a look at the current state of native mobile app development, it's really not much better than it was five years ago. You still see a strong fragmented programming model base, different operating systems, and different hardware capability. It's still a mess. You pretty much have to pick a subset of devices that you want to focus on.

Entner: If we take one little step back, one of the genius things that Apple has done is turn the bookmarks into an application. About 60-70 percent of all applications on the iPhone or an Android are actually glorified HTML ports. So, it's not that difficult or that demanding on the application side.

One new trend is HTML5, which is slowly but surely approaching. There has been no finalized HTML5 standard [from the W3C], but a lot of web browsers, and even mobile web browsers, have now some HTML5 capabilities. And, it will really help in the development cycle for basic applications.

Where HTML5 will not to be able to help us, at least right now, is when we try to take advantage of location-based services because there is no standard yet. They're still arguing about this one, and especially high performance graphics. But, on the standard application, HTML5 will take us miles forward and diminish the difference between the desktop and the mobile environment.

... At the same time, all of the SDKs are getting more powerful and more user-friendly. So, it's moving toward a more harmonized and more rapid development environment.

Parrott: Prior to HTML5 talking about mobile web was pretty much a joke. Mobile web was an afterthought in the phone market. You had these small, dinky displays. Most of them couldn't even render most standard HTML. What's new?

You still see a strong fragmented programming model base, different operating systems, and different hardware capability. It's still a mess. With the advent of the smartphone what you really saw was pretty much the Internet, as you experience it on your desktop, now on to your smartphone, but with even more capability.

Part of it is because HTML5 has stepped back and looked at what the future needed to be for a web programming model. To become more of a common run-time, they had to address some of the key gaps between native hardware, APIs, and web. Much of those have really centered on one of the biggest digs that mobile web had in the old days, when you were doing something, were connected, and then you lost your connectivity.

Out of the box

HTML5, right out of the box, has a specification for how to operate in an online, offline, or disconnected type mode. Another thing was a rendering model, beyond just what you see on your desktop, that actually provides a high-end graphics type capability -- 2D, 3D types of programming. These are things that more advanced programs can take advantage of, but you can build very rich desktop type of experiences on the laptop.

Then, they went beyond what you're used to seeing on your desktop and took advantage of some of the sensors that these phones have now -- accelerometers, location capability, or geolocation. APIs are now emerging as a companion to HTML5, which is a spec that will span across your desktop to the mobile phone. It's a very capable specification.

In addition, there is the movement in terms of the standards body, especially the W3C, to address mobile device API. You will eventually program in a standard way and talk to your contacts list, your cameras, video, recording devices, and things like that. That will soon be available to us in a web programming model.

What used to be exclusively the demand of the hardware API guys to do really low level, high performance bit twiddling is now going to be available to the general web programming masses. That opens up the future for a lot more innovation than what we’ve seen in past.

There is enough HTML5 core already emerging that we could start to program to a subset of that spec and treat it as kind of a common run-time that you would program across pretty much all of the new emerging smartphones as we look forward.

Entner: It's only a matter of when ... HTML5 will come. Apple and Google are at the forefront and are already launching websites and services in it. You can get HTML5 YouTube, HTML5 Google, and even Yahoo mail access. You can have the Apple website in HTML5. It just depends on what is fully supported right now.

Some browsers support it, and some don't yet. On the mobile side, it also fully depends on what is supported. If you have the WebKit engine at the core of the browser that your device is using, HTML5 is pretty widely supported.

Parrott: As we've talked to more-and-more of our SMBs, one thing that stands out is that they don't have a lot of resources. They don't have a huge web department. Their personnel wear a number of hats. Web development is just one of n things that one of the individuals may do in one of these organizations.

At Genuitec, we developed a product called MobiOne Studio. The target user is anyone who has an idea or an vision for a mobile web application or website. MobiOne is geared to provide a whole new intuitive type of experience, in which you just draw what you want. If you can develop PowerPoint presentations, you can create a mobile web application using MobiOne.

You lay out your screens, you pane them all up, and then you wire them together with different types of transitions. From there, you can then immediately generate mobile web code and begin to test it either in the MobiOne test environment, that's an emulated type of HTML5 environment, or you can immediately deploy it through MobiOne to your phone and test it directly on a real device.

If you can develop PowerPoint presentations, you can create a mobile web application using MobiOne.

With MobiOne Studio we recognized that the first thing that most companies want to do is just mobilize, just get a mobile presence, mobilize their websites, and have that capability. As Roger said a while ago, a lot of the apps you see out there are really glorified mobile websites and are packaged up in a binary format.

Second Studio phase

In MobiOne Studio's second phase, once you design and you like what you have, you have a progressive step that you can go from a very portable form to compile it down -- or cross-compile -- from HTML5 to whatever the native requirements are of that particular target app store. So, Google will have their app store, and Apple and RIM each has their own model. They are all fairly different models.

But with HTML5, you can go directly to your customers now. You can market to them directly. It depends on your way of interacting with your customers, but we have seen a number of novel approaches already from some of our customers. When any customer is in your store, you make it very easy for them to access your site, to make them aware of your mobile capabilities, lure them in, and get them connected that way.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Sponsor: Genuitec. Learn more.

You may also be interested in:

• Rise of WebKit Advances Mobile Web's Role, Opens Huge Opportunity for Enterprise Developers on Devices
• Genuitec Marks Progress with Two Milestone Releases of MyEclipse 6.5 Products
• Genuitec Expands Pulse Provisioning System Beyond Tools to Eclipse Distros, Eyes Larger Software Management Role

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 16th November 2010 Copyright Interarbor Solutions © 2010

The lives of IT admins in Windows environments should get a little easier with the launch of rPath's rBuilder 5.8 for "push-button" deployment of Windows Server instances.

The Raleigh, N.C. company's rBuilder 5.8 introduces release automation to the world of Windows Server applications. With the new software, rBuilder 5.8 earns bragging rights as a first commercial solution to address deployment automation for Windows instances and apps. [Disclosure: rPath is a sponsor of BriefingsDirect podcasts.]

The deployment challenge

For most IT organizations, deploying Windows apps into production is complex, cumbersome, and time-consuming. That complexity can lead to long delays in full deployments that leave a dark cloud hanging over service levels and business agility.

The rise of public cloud services such as Amazon EC2 has further motivated IT to become more responsive to business lines.

With its automation approach, rBuilder 5.8 is wrestling that challenge to the ground with what it calls “push-button deployment” of Windows apps. This software helps to automatically resolve dependencies to virtually eliminate deployment-time failures, automatically generate standard MSI packages that are ready to deploy, apply version control to all packaged elements, and eliminate drift between dev, test, and production release stages, says rPath.

rBuilder 5.8 also generates image output on demand for rapid deployment or retargeting between physical, virtual, and cloud environments, makes way for targeted changes for low-overhead, conflict-free maintenance, and provides a single enterprise solution for automated deployment of any application, running any platform, deployed to any execution environment -- physical, virtual, or cloud, said rPath.

There are some more resources available on the capabilities and new release: Attend a free, live webinar Nov. 16; watch a short video; read a whitepaper, and learn more.

The need for deployment speed

Deployment dysfunction is a primary source of delay in delivering IT services in response to business demand. The rPath solution also works to complement Microsoft development and operating environments, including Team Foundation Server and System Center Configuration Manager.

With some 70 to 80 percent of IT spending due to operating expenses, nearly half is attributable to deployment-related tasks. This is particularly true for Microsoft Windows environments, which constitute 74 percent of the data-center server market. If rBuilder 5.8 lives up to its promises, it could find a home in many Windows-based IT departments. And it lends a hand in migration and hybrid deployments, too.

rPath has also joined the Microsoft System Center Alliance, a partner community in support of the System Center ecosystem. The System Center Alliance provides an online community that aims to help partners collaborate on the creation of solutions for the System Center and deliver an information resource about these new solutions for customers and sales channel partners.

BriefingsDirect contributor Jennifer LeClaire provided editorial assistance and research on this post. She can be reached at http://www.linkedin.com/in/jleclaire and http://www.jenniferleclaire.com.

You may also be interested in:

• rPath brings data center automation to Windows environments
  
• Trio of cloud companies collaborate on new private cloud platform offerings
  
• rPath offers free management tool for applications aspiring to the cloud

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 4th November 2010 Copyright Interarbor Solutions © 2010

The rapidly evolving landscape for global business—and the consequent need for IT to relate differently to businesses so they together serve their customers in innovative ways—has to mean more than business as usual from technology suppliers.

While a majority of vendors seem to be hunkering down around an entrenched set of core products and aging IT approaches, HP this week shared a different vision, what it calls the “Instant-On Enterprise." [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

The Instant-On Enterprise, as HP defines it, is a data-driven organization that leverages technology for everything—but specifically to better address the ever-evolving needs of end-users. As users' expectations and experience change, so too must the ways enterprises relate to them, are perceived by them.

The next several years will form a culmination of now-clear mega trends that have only just begun to roil conventional business practices. We're talking about pervasive mobile applications use, highly responsive cloud computing models, and knowledge-adept social collaboration. More than just these shifts, there also needs to be an increasingly automated, secure, and harmonizing management capability that combines and reinforces them.

As these trends literally re-arrange business ecosystems and re-established the service delivery order, a gap will surely grow between the companies that master change and exploit enabling technologies—and those that fall ever further behind.

With that in mind, HP has rolled out new solutions that aim to help both business and government create their own Instant-On Enterprise. Not surprisingly, the driver of the Instant-On Enterprise is everything becoming connected and immediate, people expect responses regardless of sourcing and/or partner ecosystems—and within seconds instead of days.

“It takes a special kind of enterprise to close the expectation gap between what customers and citizens expect and what the enterprise can deliver,” says Tom Hogan, executive vice president of Enterprise Sales, Marketing and Strategy at HP. “The Instant-On Enterprise delivers differentiated competitive advantage, serving customers, employees, partners and citizens with whatever they want and need, instantly…"

Embedding Tech
New HP research reveals that the role of IT is shifting from chiefly being the administrator of the enterprise to becoming one and the same with the enterprise. This means enabling rapid, recurring business process improvements to meet dynamic customer demands, as well as gaining near-instant insights into shifting markets.

Coleman Parkes research conducted for HP in October reveals that 86 percent of senior business and government executives believe they must rapidly adapt the enterprise to meet changes in consumer expectations. The research also indicates that 78 percent believe technology is the key to business and government innovation, and 85 percent indicated that in order to be successful, technology needs to be embedded in the business or government service

HP’s new solutions work to help enterprises and government leverage technology in ways that will meet those goals. HP sees it as a reinvention of how technology is used to deliver innovation at every point in the value chain. That covers the services that are delivered, the mobile devices that provide the access, and the global data centers required to power the Instant-On Enterprise.

Instant-On Puzzle Pieces
There are several components to HP’s Instant-On Enterprise: HP Application Transformation, HP Converged Infrastructure, HP Enterprise Security, and HP Information Optimization:

• HP Application Transformation solutions work to help enterprises gain control over aging applications and inflexible processes that challenge innovation and agility by governing their responsiveness and pace of change.
• HP Converged Infrastructure solutions are engineered to drive out costs and provide the foundation for agile service delivery. HP promises this solution delivers the data center of the future.
• HP Enterprise Security solutions secures the IT infrastructure by people, processes, technology and content. These solutions aim to aligns security to meet business and government demands without losing flexibility.
• HP Information Optimization solutions deal with how information is gathered, stored and used. The idea is to harness the power of information and ensure its integrity and protection while delivering it in the context of the enterprise.

Realizing that there is no one single delivery model that meets every end-user need, HP also introduced two new Hybrid Delivery services. HP Hybrid Delivery Strategy Service offers a patent-pending, model-driven framework to introduce hybrid delivery concepts into their existing environments.

HP Hybrid Delivery Workload Analysis Service offers experts that gather service usage and demand profile data, and then develop a set of recommendations on how to best characterize and combine workloads in hybrid environments.

BriefingsDirect contributor Jennifer LeClaire provided editorial assistance and research on this post. She can be reached at http://www.linkedin.com/in/jleclaire and http://www.jenniferleclaire.com.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 28th October 2010 Copyright Interarbor Solutions © 2010

Businesses are looking to cloud-computing models to foster agility and improve time-to-market for new services. Yet attaining cloud benefits can founder without higher levels of unified server, data, network, storage, and applications management.

These typically disparate forms of management must now come together in new ways to mutually support a variety of different cloud approaches -- public, private, and hybrid. Without adoption of such Business Service Automation (BSA) capabilities, those deploying applications on private and hybrid clouds will almost certainly encounter increased complexity, higher risk, and stubborn cost structures.

This latest BriefingsDirect discussion therefore focuses on finding low-risk, high-reward paths to cloud computing by using increased automation and proven reference models for cloud management—and by breaking down traditional IT management silos. In doing so, the progression toward cloud benefits will come more quickly, at lower total cost, and with an ability to rapidly scale to even more applications and data.

We're here with two executives from HP Software & Solutions to learn more about what BSA is and why it's proving essential to managed and productive cloud computing adoption: Mark Shoemaker, Executive Program Manager for Cloud Computing in the Software & Solutions Group at HP, and Venkat Devraj, Chief Technology Officer for Application Automation, also in HP’s Software & Solutions Group. The discussion is moderated by BriefingsDirect's Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Shoemaker: There is hardly a place we go that we don’t end up talking to our customers about cloud. Most of the enterprise customers we talk to are looking at private cloud, the internal cloud solution that they own, that they then provide to their business partners, whether that’s the development teams or other elements in their business. Most of them are looking to build on the virtualization work that they've already done.

They want to improve their productivity, definitely get better utilization out of what they have already got. They want IT to be your better partner in the business. What that means is to shorten the time that the business has to wait for the services.

Devraj: There is also an interesting micro trend that’s occurring. A lot of the application teams, end-user business teams, are getting increasingly sophisticated. They're learning about private cloud implementations. Consequently, they're demanding levels of service from IT that are difficult to provide without a private cloud.

For example, because of things like agile development methodologies, application teams are doing a lot more application deployments and code releases than ever before. It's not uncommon to see dozens of application releases for different applications happening during the same day.

IT operations are just bombarded with these requirements and requests, and they are just unable to keep up based on yesterday’s processes, which are relatively static. These application teams and business unit teams are quite influential.

They're even willing to fund specific initiatives to allow their teams to work in self-service mode, and IT ops are finding themselves in reactive mode. They have to support them, make their internal processes more fluid and dynamic, and leveraging technology that allows that kind of dynamism.

... The third-party companies, the cloud providers, the pure-play server enablers, have an unfair advantage. Because they were started relatively recently, in the last few years, they have the advantage of standardized platforms and delivery units.

They can say, "Okay, I'm going to deliver only Linux-based platforms, Windows-based platforms, or certain applications." When you look at the typical enterprise today, however, IT has a lot more to deliver.

There is a lot of prevailing heterogeneity in terms of multiple software platforms and versions. There is a lack of standardization. It's very difficult to talk about cloud and delivery within the enterprise in the same breath, when you look at these kinds of technical challenges.

As a result, IT is undergoing a lot of pressure—but they have to deliver given the kind of challenges that they face. That’s going to require a lot of education and access to the right kind of technology, training, and guidance.

Shoemaker: Just to add to Venkat’s comment, we're seeing the business driving IT and demanding that agility and that flexibility. We talk to a lot of our customers, where their own coworkers have taken corporate credit cards and gone out into the public cloud, procured space, and have begun developing outside of them. IT really has to get in front of this. They have to manage all this.

... The one thing that’s different about cloud is that it really is a supply chain. It’s the supply chain of IT technology that the business consumes. If you think about what a supply chain is, it’s something that’s got to be repeatable. It has to be governed, and it provides a baseline or foundation and building blocks to build those services that you can then customize on top of the business.

So, the farther up that you can go with your standard building blocks, the less difficult it is to manage and focus on the custom business-facing functions on the front-end.

To do this, cloud has helped us out in a lot of ways. One of the challenges IT has always had is to get the business to consume standards. Because of a lot of hype in the market, the business absolutely is convinced that they get it, and they want the business benefits that cloud offers.

Even if the business decides to go to a public cloud, they still have to consume those elements in a standard fashion. There's no way out of that.

Devraj: And yet, the software used by these enterprises tends to be disparate, heterogeneous, and requires a lot of domain knowledge to be able to manage, resulting in significant delays and bottlenecks associated with service delivery. Those processes just don’t scale in the cloud.

At Stratavia we had built a patented technology to manage and control varied software stacks, such as databases, web servers, application servers, and even well-known packaged applications, including Microsoft Exchange, Oracle E-Business Suite, and SAP.

The content that I talk about becomes an abstraction layer, where the customer, the end user, the people who consume the services, see a very easy to understand service catalog. They can click on it. They can choose some menu options, some values from a drop-down box, and then specify exactly what they need, and have the response come back in minutes and in hours, rather than days and weeks, as is traditionally the case.

For example, just at the database layer, within the enterprise, it's very common to see four or five different platforms in use, such as DB2, SQL Server, Oracle, and so on. By automating the operations management lifecycle around these layers, Stratavia has made it possible for the enterprise to deliver and manage these assets as a service within the context of the cloud.

As more and more of HP’s and Stratavia’s joint customers started seeing value in that capability, HP brought Stratavia into its BSA/Business Technology Optimization umbrella.

There's a big gap in IT today, which is IT/Ops Engineering or IT/Ops Architecture. That’s a big missing silo within IT/Ops. And a lot of the operators today that rely on scripts, command-line stuff, and point-and-click tools need to evolve themselves to more of an architect approach. They need more of taking stock of the big picture, and taking the tribal knowledge that they have in their heads and looking at the out-of-the-box content that HP provides and selecting the right content that corresponds to their tribal knowledge.

When they go into the cloud, the underlying management, things like compliance and governance, are not out of whack. They're able to successfully take that knowledge, put it in there, and then, in their new role as architects or engineering folks, they're able to watch, measure, and make modifications as appropriate.

So, the role that people play, that key subject matter experts play, is very crucial as part of walking before running with automation.

Gardner: Now that you have mentioned Stratavia, and for the benefit of our listeners and readers, HP has acquired Stratavia, and there was also quite a bit of related product and service news on Sept. 15 around BSA as the acquisition was unveiled.

Shoemaker: Obviously, the Stratavia acquisition was a huge, huge win for us, and puts us in a great position to help our customers transform their infrastructure. ... And several other things have happened in the last 60 days. We had VMworld, and we presented a cohesive strategy for infrastructure and even PaaS built on the BladeSystem Matrix hardware platform that we have, Converged Infrastructure. We've combined that with two other pieces and a piece of Cloud Service Automation (CSA) software.

CloudStart is a consulting and a professional services-led engagement capability where we come in and work with the customer to get that transformation process nailed, so we can quickly get them moving into the cloud benefits.

On the back end of that, there is another piece that we announced called Cloud Maps, which is really more knowledge, but in a different capacity, in that it offers downloadable templates, preconfigured applications, and best practices for sizing.

We see the Stratavia acquisition fueling this fire, because in the end, cloud is a solution, and a solution needs content, and content wins. Content is what the customer is able to consume and use day one, when the solution is in. So it's important. And we've done a lot there.

We now have a best-in-class content provider in Stratavia that’s come on board to help round out the capabilities and add more into what the customer can get out of our solutions in very quick order.

All that sits on a recently refreshed BSA portfolio, with significant enhancements and new capabilities across network, automations, servers, and storage, that really makes all this happen.

... Let's face it, a lot of the CIOs are looking at a data center that’s packed full of applications that they probably don’t feel as if they have got a good handle on. Now, cloud is coming into the picture, and they've got two things to do here.

Number one, they need to start applying those new business methodologies to IT around providing cloud and the things that go with that, but also they have got a transformation piece to go along. And that can be very daunting.

What we've done is looked at the experience of helping previous customers do that work and we have applied that into the CloudStart and Cloud Maps, CloudStart being the planning and the upfront work that you need to get done.

So, we're right there with you. You don’t have to read chapter one of the book.

Then, as we put the infrastructure in with CSA for Matrix in the frame, we're embedding some of the CSA software inside of the Blade Matrix frame. So you have a way to build infrastructure as a service (IaaS) and manage it through the platform throughout the lifecycle.

Then, on the back end of that, we have the preconfigured application templates. If I need a SQL Server image to put into the system, I can pull that from Cloud Maps, build it into a framework and offer that very quickly. I don’t have to go and figure out how to size for this piece or what golden template looks like for this application.

It's really about obtaining a running start into the cloud, and one that’s not going to leave you wanting in a year or two. You have to be careful. Cloud is a great enablement technology and a lot of people are looking at IaaS, but that’s the starting point for it, and then you have to manage everything that you put inside of that as well.

Listen to the podcast. Find it on iTunes/iPod. Read a full transcript or download a copy.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 26th October 2010 Copyright Interarbor Solutions © 2010

The FUSE family of software is now under the FuseSource name and has today gained new autonomy from Progress Software with its own corporate identity.

Part of the IONA Technologies acquisition by Progress Software in 2008, FuseSource has now become its own company, owned by Progress, but now more independent, to aggressively pursue its open source business model and to leverage the community development process strengths.

In anticipation of today's news, our discussion here targets the rapid growth, increased relevance, and new market direction for major open source middleware and integration software under the Apache license.

We'll also look at where FuseSource projects are headed in the near future. [NOTE: Larry Alston also recently joined FuseSource as president.]

Even as the IT mega vendors are consolidating more elements of IT infrastructure, and in some cases, buying up open-source projects and companies, the role and power of open source for enterprise and service providers alike has never been more popular or successful. Virtualization, cloud computing, mobile computing, and services orientation are all supporting more interest and increased mainstream use of open-source infrastructure.

Here now to discuss how FuseSource is therefore evolving we're joined by Debbie Moynihan, Director of Marketing for FuseSource, and Rob Davies, Director of Engineering for FuseSource. The discussion is moderated by BriefingsDirect's Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Moynihan: Over the past couple of years, there has been a lot of focus on cost reduction, and that resulted in a lot of people looking at open source who maybe wouldn’t have looked at it in the past.

The other thing that’s really happened with open source is that some of the early adopters who started out with a single project have now standardized on FuseSource products across the entire organization. So there are many more proof-points of large global organizations rolling out open source in mission-critical production environments. Those two factors have driven a lot of people to think about open source, and to start adopting open source.

Then, the whole cloud trend came along. When you think about scaling in the cloud, open source is perfect for that. You don’t have to think about the licensing cost as you scale up. So, there are a lot of trends that have been happening and that have really been really helpful. We're very happy about them helping push open source into the mainstream.

From a FuseSource perspective, we've been seeing over 100 percent growth each year in our business, and that’s part of the reason for some of the things we're going to talk about today.

Davies: We've been around in this space for a while, but the earlier adopters who were just trying out in distinct groups are now rolling this out into broader production. Because of that, there is this snowball effect. People see that larger organizations are actually using open source for their infrastructure and their integration. That gives them more confidence to do the same.

I recently spoke to a large customer of ours in the telco space. They had this remit. Any open source that came in, they wouldn’t put into mission-critical situations, until they kicked the tires for a good while — at least a couple of years.

But because there has been this push for more open source projects following open standards, people are now more willing to have a go using open source software.

In fact, if you look at the numbers of some of our larger customers, they are using Apache ServiceMix and Apache ActiveMQ to support many thousands of business transactions, and this is business-critical stuff. That alone is enough to give people more confidence that open source is the right way to go.

When you look at cloud, there are different issues you have to overcome. There is the issue about deploying into the cloud. How do you do that? If you're using a public cloud, there are different mechanisms for deploying stuff. And there are open source projects already in existence to make that easier to do.

This is something we have found internally as well. We deploy a lot of internal software when we are doing our big scale testing. We make choices about which particular vendors we're going to use. So, we have to abstract the way we are doing things. We did that as an open source project, which we have been using internally.

When you get to the point of deploying, it’s how do you actually interface with these things? There is always going to be this continuing trend towards standards for integration. How are you going to integrate? Are you going to use SOAP? Are you going to use RESTful services? Would you like to use messaging, for example, to actually interface into an integration structure?

You have to have choice. You can’t really dictate to use it this way or the other way. You've got to have a whole menu of different options for connecting. This is what we try to provide in our software.

We always try to be agnostic to the technology, as much as how you connect to the infrastructure that we provide. But, we also tend to be as open as we can about the different ways of hooking these disparate systems together. That’s the only way you can really be successful in providing something like integration as a service and a cloud-like environment. You have to be completely open.

Moynihan: Progress is launching a new company called FuseSource that will be completely focused on the open source business model. We're really excited as a team. The FuseSource team has been an independent business unit since IONA was acquired by Progress Software. We have been fairly independent within the company, but separated as our own company we'll be able to be completely independent in terms of how we do our marketing, sales, support, services, and engineering.

When you're part of a large organization, there are certain processes that everyone is supposed to follow. Within Progress, we are doing things slightly differently (or very differently depending on the area) because the needs of the open source market are different. So being our own company we'll have that independence to do everything that makes sense for the open-source users, and I'm pretty excited about that.

From a practical perspective, the business model is very different. In traditional enterprise software sales, there is a license fee which is typically a large upfront license cost relative to the entire cost over the lifetime of that software. Then, you have your annual maintenance charges and your services, training, and things like that.

From an open source perspective, typically upfront, there is no license cost. Our model is that there is no license cost. It’s a subscription support model, where there is a monthly fee, but the way that it is accounted for and the way that it works with the customer is very different. That's one of the reasons we split out our business. The way that we work with the customers and the way they consume the software are very different. It’s a month-to-month subscription support charge, but no license charge.

That’s also the reason people like cloud. You pay as you go. You scale as you go. And you don’t have that upfront capital expenditure cost. For new projects, it can be really hard to get money right now. All these benefits are why we're seeing so much growth in FuseSource.

While we do have some level of product management for open source, a lot of it is based around packaging, delivery, licensing, and these types of things, because our engineers are hearing directly from customers on a moment-by-moment basis. They're seeing the feedback in the community, getting out there, and partnering with our customers. So, from an economic perspective, the model is different.

Now, being backed by Progress Software provides us the benefit that customers can have that assurance that we're backed by a large organization. But, having FuseSource as standalone company, as you said, gives us that independence around decision making and really being like a startup.

We'll be able to have our own processes in any functional area that we need to best meet the needs of the open source users.

Davies: From a technical perspective, it’s really good for us. The shackles are off. There’s a lot of sudden reinvigorating that seems to move forward. We've got a lot of really good ideas that we want to push out and roll out over the coming year, particularly enhancing of the products we already have, but also moving onto new areas.

There's a big excitement, like you would expect when you have got a startup. It just feels like a startup mentality. People are very passionate about what they're doing inside FuseSource.

It's even more so, now that we have become autonomous of Progress. Not that working inside Progress was a bad thing, but we were constrained by some of the rigors and procedures that you have to go through when you are part of a larger organization. Because those shackles have been taken away, it means that we can actually start innovating more in the direction we really want to drive our software too. It’s really good.

Moynihan: From a customer perspective, this change will have a small but significant impact. We are continuing to do everything that we have been doing, but we will be able to have even more independence in the way that we do things. So it will all be beneficial to customers.

We have also launched a new community site at FuseSource.com, which we're pretty excited about. We were planning to do that and we've been working on that for several months. That just provides some additional usability and ability to find things on the site.

Overall, it will be really good for our customers. We've talked with them, and they're pretty excited about it.

Listen to the podcast. Find it on iTunes/iPod. Read a full transcript or download a copy.

By: Simon Holloway, Practice Leader - Process Management & RFID, Bloor Research Posted: 7th October 2010 Copyright Bloor Research © 2010

The process associated with securing a commercial lease or loan, commonly referred to as asset finance originations, is getting more and more complex and therefore the need to automate has grown. Leasing capital assets is just one way companies are moving expenditures from CAPEX to OPEX budgets. Leasing is a process by which a firm can obtain the use of a certain fixed asset for which it must pay a series of contractual, periodic, tax deductible payments. Other companies opt to secure commercial loans in order to meet their operational and cash flow needs. The asset finance organisations who handle these lease or loan applications are operating in a cut-throat market and are finding they need to differentiate themselves. Yet, until recently, they were limited in their ability to perform risk assessments because of internal technology hurdles. They often support multiple back-office processing systems which could not share customer information, needed a great deal of individual customised programming, and often required expensive upgrades to maintain over time. But this situation is changing. Rapport360 from International Decision Systems is the first front-office asset finance solution Bloor has come across to provide seamless integration with multiple back-office processing systems. In doing so, decision-makers get full visibility into customer risk across system platforms so they can make better credit decisions and gain a competitive advantage.

International Decision Systems (IDS) was founded in 1974 and is headquartered in Minneapolis, MN with sales offices in the UK, Australia and Singapore and a development centre in Bangalore, India. The company specialises in the asset finance software market, providing solutions which support the full lifecycle covering both front and back office operations (see Figure 1 below). For back office portfolio management, IDS provides:

• InfoLease, which provides support for leasing operations, covering functionality for loans, reporting and regulatory compliance; and
• ProFinia, which manages lease and loan portfolios along with their underlying assets and collateral.

For the front office, IDS provides:

• InfoAnalysis, which is a solution for transaction quoting including tracking of critical sales data for salespeople; and
• Rapport, which enables contract origination including credit applications, product pricing, partner relations and booking.

Figure 1: Full Asset Finance Management Lifecycle

IDS has over 250 customers in 34 countries including Wells Fargo, Bank of America, GE Capitol, John Deere, Dell, RBS Asset Finance, Olympus, Xerox, CAT, Volvo and Daimler.

Terry Welty, Chief Marketing Officer at IDS, explains “The main challenges in managing the current asset financing process are high cost, low productivity, and limited visibility of customer risk data. Often there is a large amount of re-keying which results in poor data quality and a lack of synchronisation between back-office applications. This process also slows response time and potentially results in lost sales. Perhaps one of the biggest problems, however, is that because different back-office systems do not share information, decision makers are unable to see the “big picture” of customer risk across different business units and geographic locations which can lead to difficult decision-making.”

October 2010 sees the launch of a new version of the IDS Rapport solution called Rapport 360™. Rapport has always provided support for the management of workflow, screens and rules to enable organisations to provide best practices. It contains a pricing engine that supports matrix, rate card pricing, as well as asset and risk-based scenarios. Information from CRM systems, credit bureaus, and other financial and asset information resources is able to be incorporated into the system to provide a single view. Rapport supports the creation, distribution, and management of origination documents as well as bid, quote, and proposal letters.

Figure 2: Rapport 360 Coverage

So what is different about this release? Katie Emmel, Director of Product Management at IDS, told me that IDS has now added the ability to support simultaneous integration with multiple back office servicing systems through a feature called Smart Synchronization. Emmel said, “Customer records can now be updated instantly in all applicable systems. Rapport 360 provides a single, consolidated view of customer risk by capturing delinquency and exposure information.” The other key differential I identified was that administrators in user organisations are able to manage workflow, screens and rules to regulate and establish best practices across an organisation without having to use IT resources or the vendor. Rapport 360 provides support for the complete origination process from quotation through decisioning to final booking.

But what does this mean to you? The support for multiple back-office and smart synchronisation means that costs can be lowered and valuable staff resources can be refocused. Customers also gain by receiving faster response time. One of the biggest improvements, however, is that, by seeing the complete picture associated with customer exposure, finance companies can make better decisions, reduce risk and therefore improve profitability and ROA.    

Bloor recommends any organisation involved in leasing to take a serious look at this new product from IDS. From what we have seen, it fills in many of the gaps that were previously missing from solutions in this marketplace.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 6th October 2010 Copyright Interarbor Solutions © 2010

The trend toward converged infrastructure—a whole greater than sum of the traditional IT hardware, software, networking and storage parts—is going both downstream and upstream.

HP today announced how combining and simplifying the parts of IT infrastructure makes the solution value far higher on either end of the applications distribution equation: At branch offices and the next-generation of compact and mobile all-in-one data center containers.

Called the HP Branch Office Networking Solution, the idea is that engineering the fuller IT and communications infrastructure solution, rather then leaving the IT staff and—even worse—the branch office managers to do the integrating, not only saves money, it allows the business to focus just on the applications and processes. This focus, by the way, on applications and processes—not the systems integration, VOIP, updates and maintenance—is driving the broad interest in cloud computing, SaaS and outsourcing. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

HP's announcements today in Barcelona are also marked by an emphasis on an ecosystem of partners approach, especially the branch office solution, which packages 14 brand-name apps, appliances and networking elements to make smaller sub-organizations an integrated part of the larger enterprise IT effort. The partner applications include WAN acceleration, security, unified communications and service delivery management.

Appliances need integration too
You could think of it as a kitchen counter approach to appliances, which work well alone but don't exactly bake the whole cake. Organizing, attaching and managing the appliances—with an emphasis on security and centralized control for the whole set-up—has clearly been missing in branch offices. The E5400 series switch accomplishes the convergence of the discrete network appliances. The HP E5400 switch with new HP Advanced Services ZL module is available worldwide today with pricing starting at $8,294.

Today's HP news also follows a slew of product announcements last month that targeted the SMB market, and the "parts is parts" side of building out IT solutions.

To automate the branch office IT needs, HP is bringing together elements of the branch IT equation from the likes of Citrix, Avaya, Microsoft, and Riverbed. They match these up with routers, switches and management of the appliances into a solution. Security and access control across the branches and the integrated systems are being addressed via HP TippingPoint security services. These provide granular control of application access, with the ability to block access to entire websites—or features—across the enterprise and its branches.

Worried about too much Twitter usage at those branches? The new HP Application Digital Vaccine (AppDV) service delivers specifically-designed filters to the HP TippingPoint Intrusion Prevention System (IPS), which easily control access to, or dictate usage of, non-business applications.

The branch automation approach also support a variety of network types, which opens the branch offices to be able to exploit more types of applications delivery: from terminal serving apps, to desktop virtualization, to wireless and mobile. The all-WiFi office might soon only need a single, remotely and centrally managed locked-down rack in a lights-out closet, with untethered smartphones, tablets and notebooks as the worker nodes. Neat.

When you think of it, the new optimized branch office (say 25 seats and up) should be the leader in cloud adoption, not a laggard. The HP Branch Office Networking Solution—with these market-leading technology partners—might just allow the branches to demonstrate a few productivity tricks to the rest of the enterprise.

Indeed, we might just think of many more "branch offices" as myriad nodes within and across the global enterprises, where geography becomes essentially irrelevant. Moreover, the branch office is the SMB, supported by any number and types of service providers, internal and external, public and private, SaaS and cloud.

Data centers get legs
Which brings us to the other end of the HP spectrum for today's news. The same "service providers" that must support these automated branch offices—in all their flavors and across the org chart vagaries and far-flung global locations—must also re-engineer their data centers for the new kinds of workloads, wavy demand curves, and energy- and cost-stingy operational requirements.

So HP has built a sprawling complex in Houston—the POD Works—to build an adaptable family of modular data centers—the HP Performance Optimized Datacenter (POD)—in the shape of 20- and 40-foot tractor-trailer-like containers. As we've seen from some other vendors, these mobile data centers in a box demand only that you drive the things up, lock the brake and hook up electricity, water and a high-speed network. I suppose you also drop them on the roof with a helicopter, but you get the point.

But in today's economy, the efficiency data rules the roost. The HP PODs deliver 37 percent more efficiency and cost 45 percent less than a traditional brick-and-mortar data centers, says HP.

Inside, the custom-designed container is stuffed with highly engineered racks and the cooling, optimized networks and storage, as well as the server horsepower—in this case HP ProLiant SL6500 Scalable Systems, from 1 to 1,000 nodes. While HP is targeting these at the high performance computing and service provider needs—those that are delivering high-scale and/or high transactional power—the adaptability and data center-level design may well become more the norm than the exception.

The PODs are flexible at supporting the converged infrastructure engines for energy efficiency, flexibility and serviceability, said HP. And the management is converged too, via Integrated Lights-Out Advanced (ILO 3), part of HP Insight Control.

The POD parts to be managed are essentially as many as eight servers, or up to four servers with 12 graphic processing units (GPU), in single four-rack unit enclosures. The solution further includes the HP ProLiant s6500 chassis, the HP ProLiant SL390s G7 server and the HP ProLiant SL170s G6 servers. These guts can be flexibly upped to accommodate flexible POD designs, for a wide variety and scale of data-center-level performance and applications support requirements.

Built-in energy consciousness
You may not want to paint the containers green, but you might as well. The first release features optimized energy efficiency with HP ProLiant SL Advanced Power Manager and HP Intelligent Power Discovery to improve power management, as well as power supplies designed with 94 percent greater energy efficiently, said HP.

Start saving energy with delivering more than a teraFLOP per unit of rack space to increase compute power for scientific rendering and modeling applications. Other uses may well make themselves apparent.

Have data center POD, will travel? At least the wait for a POD is more reasonable. With HP POD-Works, PODs can be assembled, tested and shipped in as little as six weeks, compared with one year or longer, to build a traditional brick-and-mortar data center, said HP.

Hey, come to think of it, for those not blocking it with the TippingPoint IPS, I wish Twitter had a few of these on those PODs on the bird strings instead of that fail whale. Twitter should also know that multiple PODs or a POD farm can support large hosting operations and web-based or compute-intensive applications, in case they want to buy Google or Facebook.

Indeed, as cloud computing grains traction, data centers may be located (and co-located) based on more than whale tails. Compliance to local laws, for business continuity and to best serve all those thousands of automated branch offices might also spur demand for flexible and efficient mobile data centers.

Converged infrastructure may have found a converged IT market, even one that spans the globe.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 4th October 2010 Copyright Interarbor Solutions © 2010

Look for a sharp uptick in cloud computing from financial services firms over the next two years, along with similar increases in cluster and grid technologies. This increased interest comes from a concern over the current data explosion and the firms' lack of scalable environments, insufficient capacity to run complex analytics, and contention for computing resources.

These findings come from a recent survey conducted by Wall Street & Technology in conjunction with Platform Computing, SAS, and the TABB Group. [Disclosure: Platform Computing is a sponsor of BriefingsDirect podcasts.]

Completed in July, the survey found noteworthy differences in the challenges being faced by both buy- and sell-side firms, with sell-side institutions more likely to report a lack of a scalable environment, insufficient capacity to run complex analytics, and contention for computing resources as significant challenges.

According to the survey, data proliferation and the need to better manage it are at the root of many of the challenges being faced by financial institutions of all sizes. Two-thirds (66 percent) of buy-side firms and more than half (56 percent) of sell-side firms are grappling with siloed data sources. The silo problem is being exacerbated by organizational constraints, including policies prohibiting data sharing and access, network bandwidth issues and input/output (I/O) bottlenecks.

Too much data
Ever-increasing data growth is also cause for concern, with firms reporting that they are dealing with too much market data. Sixty-six percent of respondents didn't think their analytics infrastructures would be able to keep pace with demand over time.

Both buy- and sell-side firms plan to increase their focus on liquidity and counterparty risk in the next 12 months. Counterparty risk management was ranked as the highest priority for the sell side (45 percent) with liquidity risk following at 43 percent. Liquidity risk and counterparty risk scored high for the buy side with 36 percent and 33 percent, respectively.

The financial institutions plan to turn to a combination of technologies including cloud computing and grid technologies. Within the next two years, 51 percent of all respondents are considering or likely to invest in cluster technology, 53 percent are considering or likely to buy grid technology, and 57 percent are considering or likely to purchase cloud technology.

The report, “The State of Business Analytics in Financial Services: Examining Current Preparedness for Future Demands,” is available for download at http://www.grid-analytics.wallstreetandtech.com. (Registration required.) Wall Street & Technology, in conjunction with the survey sponsors, will host a webinar to discuss in-depth key findings of the survey on October 7 at 12 pm ET/9 am PT. For more information, visit: http://tinyurl.com/2ulcesm.

By: Simon Holloway, Practice Leader - Process Management & RFID, Bloor Research Posted: 1st October 2010 Copyright Bloor Research © 2010

We all know that Manufacturing is all about products and that you have to keep reinventing your product portfolio to keep ahead in today’s market. Perhaps what it is not so well known is that the majority of R&D products don’t even make the market and of those that do only 1 or 2 really make a worthwhile profit. Therefore product development is a risky business, but one we can’t avoid. So how can we limit the risks and get better control of the process of controlling the life of our products?

Andy Michuda, Chief Executive Officer of Sopheon told me, “Product life cycle management (PLM) is the most vital business process in manufacturing today. A right decision on which product ideas to develop and produce can transform a company’s future. A wrong decision can bring a company to its knees. In the race for growth and profitability, the capacity to understand and act on PLM’s power will separate the winners from the losers”. But what exactly is PLM? There seem to be no standard definitions of PLM—everyone has something slightly different to say. Even the site http://www.product-lifecycle-management.info has a number of different definitions!

Let me give you my condensed definition of PLM. “It is the business process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal. It integrates people, data, processes and business systems and provides a product information backbone for companies as well as their partners, suppliers and customers.” PLM is first and foremost a business discipline, whose goal is to eliminate waste and improve efficiency, and is considered to be an integral part of the lean production model. However, because of the business complexity and rate of change that requires organizations execute as rapidly as possible, application software is becoming more and more crucial to the success of PLM. It is one of the four cornerstones of a corporation's information technology structure. Shoenhair of Ping, a PTC Customer, supports this view: “PLM can be difficult to measure, but it is absolutely critical to leaning out processes, and critical to improving information flow and control.”

Where do ERP and PLM fit? Most manufacturing companies distinguish two main process chains: the operational process chain and the technical process chain. ERP systems largely address the operational process chain, whereas PLM systems automate and enable predominantly the technical process chain.

Figure 1: ERP and PLM (Source: PLM Technology Guide)

Johan Malmström, PLM Business Development Manager, SAP, emphasised the collaborative nature of PLM, “PLM makes sure that everyone works towards one version of the truth, with clearly defined tasks and responsibilities. It manages the product structure and related information, the usage of this data across the product lifecycle as well as the process of creating this data. Process support includes workflow capabilities, program and project management, resource management etc. to make sure that the correct resources are working on the correct tasks in order to deliver the right products to the market in the right time.”

Michuda explained that PLM is implemented in practice on three different levels, each of which is supported by a different tool set.

• Transactional Processes: Enterprise resource planning (ERP) applications manage transactional processes. They are designed to unify materials planning, purchasing, financial transactions, accounting and reporting into streamlined transactional processes. Supply chain management (SCM) and customer relationship management (CRM) applications also address process needs at this level.
• Technical Data: Computer-aided design (CAD) applications, as well as those related to formula, recipe, or product data management (PDM), are primarily focused on managing the masterfile of descriptive data within the product lifecycle. These PLM systems streamline and continuously improve the processes of defining, designing and producing products, while potentially also supporting aspects of product innovation. They offer collaboration capabilities that enable enterprise-wide sharing of product designs, reducing the chance of design and manufacturing errors.
• Business Information: The business level of PLM deals with business issues around critical business-related decisions within the product lifecycle. At the business level of PLM, the emphasis is on solutions that handle innovation governance issues such as process management, decision support, idea management, product portfolio management, expertise management, and intelligence around markets, competitors and technologies. Regulatory compliance and sustainability that important not only during product innovation but also to effective management of the supply chain are also included within the business level.

So what tools are used in a PLM solution? The PLM Technology Guide shows the core technology of a PLM system and some of the many solutions that can rest on the basic technology. The orange line outlines Product Data Management (PDM), which is typically used for basic CAD file and Data Management.

Figure 2 PLM Functionality Source:  PLM Technology Guide

Who are the main players? The major players in PLM space can be grouped under 3 broad categories:

• PLM product vendors such as Dassault Systemes , PTC ,Siemens, Sopheon, Aras
• The ERP vendors such as Oracle Agile, SAP PLM, Infor PLM, Epicor, IFS
• Consulting & implementation companies such as Accenture, Atos Origin, Capgemini, ITC Infotech, IBM, Infosys, KSA, Wipro and HCL Technologies.

What is coming? Dassault Systemes, on their web site, describe PLM v2 – “PLM 2.0 is a major redefinition of the PLM markets targeting all users creating, consuming and remixing IP. PLM 2.0 is to PLM what Web 2.0 is to the Web, harnessing collective intelligence from online communities. Any user can imagine, share and experience products in the universal language of 3D. PLM 2.0 brings knowledge, from idea to product experience (IP), to life. It merges the real and virtual in an immersive lifelike experience.” SAP’s Malmström sees the following three trends:

• Consumer-Driven Sustainable Innovation: with a focus on developing the right products at the right time in fast innovation cycles.
•  Global Price and Time Pressure: requires development efficiency, sharing of information in dynamic development networks.
• Increasing Product Compliance and Regulations: manage compliance, controls, documentation and visibility.

Mike Spragg, Infor's UK director for the process industries, sees the increase in environmental awareness and the incorporation of the ‘green’ agenda as an area of PLM expansion, “PLM has much to offer manufacturers.  PLM begins at the earliest possible stages of design, meaning these new green considerations are factored in long before products are manufactured and then enter the supply chain. This can save costs that would have to be borne were the products reworked at a later date.”

Deepankar Ghosh, Head – Manufacturing Practice, ITC Infotech, provided a clear idea of the importance of PLM, “PLM industry is comparatively a niche industry which is gaining more currency and acceptance as organizations are realizing the value that the PLM process brings to the table. With an ever increasing pressure on bottom line it is imperative that companies make IT investments where the ROI is not only high but faster. A more informed and demanding customer is seeking not only cheaper but innovative and trendy products more than ever before. For an organization to be ahead of its competition, collaboration across key roles and functions within the company and with its supply chain has become critical. The environment for the PLM practice to grow is just right and we will soon be witnessing an unprecedented interest in this area.”

So, if ERP manages your operations, PLM manages your product portfolio from creation to end of life. My experience of PLM solutions is that they really do provide value—you just need to find the one that best suits your pocket and needs. If that is the case then come along to PLM Connect and find the answer.

By: Rob Bamforth, Principal Analyst, Quocirca Posted: 27th September 2010 Copyright Quocirca © 2010

Technology innovation is often hard to demonstrate to those in senior decision-making roles in most organisations, and generally for very straightforward reasons. Many vendors pitch their products or services as being full of benefits, but often these are simply features dressed up with a few marketing buzzwords ending in ‘ability’. The answer to the question ‘what will it do?’ is generally ‘anything’ as those flogging the idea, either from outside or with the help of internal IT champions typically ignore the unspoken part of the question ‘...for me, our company, against the competition, etc’.

It is an issue of putting the innovation into specific context.

In October 1993 the then Anderson Consulting created a dramatic way of doing this for their retail prospects in Europe, through a ‘blue sky thinking’ experience called ‘Smart Store’, built at its office in Windsor, which aimed to transport senior retail executives into the distant future of 2010. The multi-room showcased the impact of technology in a context that would grab and sometimes shock retail executives into action. Many of the concepts, such as self scanning, logistics tagging and tracking, are now pretty much the norm, so it must have been a successful, if rather expensive investment.

While Smart Store showcased other company’s technology innovation to help Anderson Consulting sell services, other centres of innovation and executive briefing centres have been built by technology companies keen to show off their thought leadership. Both IBM and Sun Microsystems developed these sorts of facilities and have tried as hard as possible to justify the generally hidden back end ‘big tin’ with applications and services set in the context of real business.

Although the theatrics rarely meet the impressive standards of Anderson Consulting, some effort still goes into filling the demonstrations with props. It might seem trivial, but there is merit in demonstrating real world examples and doing some sort of scene setting. After all, how many business leaders or managers seeking solutions to specific business problems want to be faced simply by banks of (expensive) IBM and Sun servers?

From a recent visit to Motorola’s innovation centre in Basingstoke it is clear that money had not been frittered away on superfluous theatrics. The markets being targeted and applications shown address down-to-earth everyday business needs, not blue sky concepts. The main room is filled with many diverse communications devices from simple two way radios to smart consoles for forklift trucks; all great examples of Motorola’s innovation and technical prowess, but how do they connect to business?

Rather than looking for props or theatrics, the clues come from Motorola’s recent changes in corporate structure, in particular the decision to spin off the phones division earlier in 2010 and the acquisition of Symbol in 2006.

As the spinoff of the consumer oriented mobile phone part of the company concludes in 2011, what remains is business and public sector organisation focused, covering wireless LAN, drop in cellular networks and mobile devices. Rather than having the generic devices that might be picked up as consumer friendly phones by the average office worker, the new Motorola has large ranges of more specialised devices, some offering voice communications, some mobile data, others converging both. Why? It allows Motorola to provide different devices to target the specific working needs of different groups of workers, with tools that are sometimes rugged, often just robust, but always designed and dedicated to do a particular job—hence the reason there are so many in the innovation centre.

That is all well and good and, to be honest, what you might expect from a large technically driven company with over seventy years of innovation, but while the hiving off is bringing much needed focus, it is the acquisition and subsequent slow absorption of Symbol that turns that focus into revenue. Symbol not only brought smart small IT devices to the radio company, it also introduced an ecosystem of applications, application developers and channel partners.

This has become the driver for much activity and is where the business innovation is happening; developing a mobile application to meet the business process need of an individual worker, blending small robust hardware with the right interface options to fit their role and adding the spice of well engineered radio technology.

If Motorola can stay partner friendly and avoid the arrogance that so often surrounds long term industry players who think they can do it all themselves, this sounds like a recipe for success for all parties involved.

Mobile applications that address business needs rather than massage egos or satisfy gadget lovers will appeal to the business decision makers. That should put Motorola’s mobile innovation into context, and while its innovation centre is not overly theatrical in its presentation, this is not an issue for the practical business needs being addressed.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 24th September 2010 Copyright Interarbor Solutions © 2010

An often-overlooked aspect of data center transformation (DCT) is what to do with the older assets as newer systems come online. Much of the retiring IT equipment can possess sensitive data, may be sources of significant economic return, or at least need to be recycled according to various regulations.

Improperly disposing of data and other IT assets can cause embarrassing security breaches, increase costs, and pose the risk of regulatory penalties. Indeed, many IT organizations are largely unaware of the hazards and risks of selling older systems into auction sites, secondary markets or via untested suppliers.

Compliance and recycling issues, as well as data security concerns and proper software disposition, should therefore be top of mind early in the DCT process, not as an after-thought.

In a recent podcast discussion, I tapped two HP executives on how to best manages productive transitions of data center assets—from security and environmental impact, to recycling and resale, and even to rental of transitional systems during a managed upgrade process. I spoke with Helen Tang, Worldwide Data Center Transformation Lead for HP Enterprise Business, and Jim O'Grady, Director of Global Life Cycle Asset Management Services with HP Financial Services.

Here are some excerpts:

Helen Tang: Today there are the new things coming about that everybody is really excited about, such as virtualization, and private cloud. ... This time around, enterprises don’t want to repeat past mistakes, in terms of buying just piles of stuff that are disconnected. Instead, they want a bigger strategy that is able to modernize their assets and tie into a strategic growth enablement asset for the entire business.

Yet throughout the entire DCT process, there's a lot to think about when you look at existing hardware and software assets that are probably aged, and won’t really meet today’s demands for supporting modern applications.

How to dispose of those assets? Most people don’t really think about it nor understand all of the risks involved. ... Even experienced IT professionals, who have been in the business for maybe 10, 20 years, don’t quite have the skills and understanding to grasp all of this.

We're starting to see this  sort of IT hybrid role called the IT controller, that typically reports to the CIO, but also dot-lines into the CFO, so that the two organizations can work together from the very beginning of a data center project to understand how best to optimize both the technology, as well as the financial aspects.

Jim O'Grady: We see that a lot of companies try to manage this themselves, and they don’t have the internal expertise to do it. Often, it’s done in a very disconnected way in the company. Because it’s disconnected and done in many different ways, it leads to more risks than people think.

You are putting your company’s brand at stake, through improper environmental recycling compliance, or exposing your clients, customers, or patients’ data to a security breach. This is definitely one of those areas you don’t want to read about in a newspaper to figure out what went wrong.

One of the most common areas where our clients are caught unaware of is the complexity of the data security, and the e-waste legislation requirements that are out there, and especially the pace of its change.

We suggest that they have a well thought-out plan for destroying or clearing data prior to the asset decommissioning and/or prior to the asset leaving the physical premise of the site. Use your outsource partner, if you have one, as a final validation for data security. So, do it on site, as well as do it off site.

Have a well-established plan and budget up-front, one that’s sponsored by a corporate officer, to handle all of the end-of-use assets well before the end-of-use period comes.

E-waste legislation resides at the state, local, national, and regional levels, and they all differ. There's some conflict, but some are in line with each other. So it's very difficult to understand what your legislative requirements are and how to comply. Your best bet is to deal with a highest standard and pick someone that knows and has experience in meeting these legislative requirements.

There are tremendous amounts of global complexities that customers are trying to overcome, especially when they try to do data center consolidation and transformation, throughout their enterprise across different geographies and country borders.

You're talking about a variety of regulatory practices and directives, especially in the EU, that are emerging and restrict how you move used and non-working product across borders. There are a variety of different data-security practices and environmental waste laws that you need to be aware of.

A lot of our clients choose to outsource this work to a partner. But they need to keep in mind that they are sharing risk with whomever they partner with. So they have to be very cautious and be extremely picky about who they select as a partner.

This may sound a bit self-serving, but I always suggest for enterprises to resist smaller local vendors. ... If you don’t kick the tires with your partner and you don’t find out that the partner consists of a man, a dog, and a pickup truck, you just may have a hard time defending yourself as to why you selected that partner.

Also, develop a very strong vendor audit qualification and ongoing inspection process. Visit that vendor prior to the selection and know where your waste stream is going to end up. Whatever they do with the waste stream, it’s your waste stream. You are a part of the chain of custody, so you are responsible for what happens to that waste stream, no matter what that vendor does with it.

You need to create rigorous documented end-to-end controls and audit processes to provide audit trails for any future legal issues. And finally, select a partner with a brand name and reputation for trust and integrity. Essentially, share the risk.

Enterprises should well consider how they retire and recover value for their entire end-of-use IT equipment, whether it's a PDA or supercomputer, HP or non-HP product. Most data center transformations and consolidations typically end with a lot of excess or end-of-use product.

We can help educate customers on the hidden risk and dispositioning that end-of-use equipment into the secondary market. This is a strength of HP Financial Services (HPFS).

Typically, what we find with companies trying to recover value for product is that they give it to their facilities guys or the local business units. These guys love to put it on eBay and try to advertise for the best price. But, that’s not always the best way to recover the best value for your data center equipment.

Your best bet is to work with a disposition provider that has a very, very strong re-marketing reach into the global markets, and especially a strong demonstrative recovery process.

We're now seeing it migrate into the procurement arm. These guys typically put it out for bid and select the highest bid from a lot of the open market brokers. A better strategy to recover value, but not the best.

Your best bet is to work with a disposition provider that has a very, very strong re-marketing reach into the global markets, and especially a strong demonstrative recovery process.

From a financial asset ownership model, HPFS has the ability to come in and work with a client, understand their asset management strategy, and help them to personalize the financial asset ownership model that makes sense for them.

For example, if you look at a leasing organization, when you lease a product, it's going to come back. A key strength in terms of managing your residual is to recover the value for the product as it comes back, and we do that on a worldwide basis.

We have the ability to reach emerging markets or find the market of highest recovery to be able to recover the value for that product. As we work with clients and they give us their equipment to remarket on their behalf, we bring it into the same process.

When you think about it, an asset recovery program is really the same thing as a lease return. It's really a lot of reverse logistics—bring it into a technical center, where it's audited, the data is wiped, the product is tested, there’s some level of refurbishment done, especially if we can enhance the market value. Then, we bring it into our global markets to recover value for that product.

We have skilled product traders within our product families who know how to hold product, and wait for the right time to release it into the secondary market. If you take a lot of product and sell it in one day, you increase the supply, and all of the recovery rates for the brokers drop overnight. So, you have to be pretty smart. You have to know when to release product in small lot sizes to maximize that recovery value for the client.

We're seeing a big uptake in the need to support legacy product, especially in DCT. We're able to provide highly customized pre-owned authentic legacy HP product solutions, sometimes going back 20 years or more. The need for temporary equipment just scaling out legacy data center hardware platform capacity that’s legacy locked is an increasing need that we see from our clients.

Clients also need to ensure their product is legally licensed and they do not encounter intellectual property right infringements. Lastly, they want to trust that the vendor has the right technical skills to deal with the legacy configuration and compatibility issues.

Our short-term rental program covers new or legacy products. Again, many customers need access to temporary product to prove out some concepts, or just to test some software application on compatibility issues. Or, if you're in the midst of a transformation, you may need access to temporary swing gear to enable the move.

We also help clients understand strategies to recover the best value for decommissioned assets, as well as how to evaluate and how to put in place a good data-security plan.

We help them understand whether data security should be done on-site versus off-site, or is it worth the cost to do it on-site and off-site. We also help them understand the complexities of data wiping enterprise product, versus just the plain PC.

The one thing we help customers understand, and it’s the real hidden complexity is how to set up an effective reverse logistic strategy.

Most of the local vendors and providers out there are skilled in wiping data for PCs, but when you get into enterprise products, it can get really complex. You need to make sure that you understand those complexities, so you can secure the data properly.

Lastly, the one thing we help customers understand, and it’s the real hidden complexity, is how to set up an effective reverse logistic strategy, especially on a global basis. How do you get the timing down for all the products coming back on a return basis?

Tang: We reach out to our customers in various interactions to talk them through the whole process from beginning to end.

One of the great starting points we recommend is something we called the Data Center Transformation Experience Workshop, where we actually bring together your financial side, your operations people, and your CIOs, so all the key stakeholders in the same room, and walk through these common issues that you may or may not have thought about to begin with. You can walk out of that room with consensus, with a shared vision, as well as a roadmap that’s customized for your success.

Listen to the podcast. Find it on iTunes/iPod. Read a full transcript or download a copy.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 24th September 2010 Copyright Interarbor Solutions © 2010

Sonoa Systems, a provider of application programming interface (API) solutions, has changed its name this week to Apigee.

While Sonoa originally offered a free API tools and management platform, Apigee now offers three product lines for enterprises, developers, and API providers of all sizes. The company now serves more than 7,000 developers and some 140 enterprises with API management services. [Disclosure: Sonoa Systems is a past sponsor of BriefingsDirect podcasts.]

“By unifying the company under one brand and launching our premium line, we can better serve the full spectrum of companies and developers using APIs to power their apps, mobile and multichannel strategies and business partnerships,” said Chet Kapoor, CEO, Apigee.

The traffic has been brisk. Currently, 2,500 GB of data per month and 25k messages are processed per second on Apigee Tech, says the firm.

As I heard more about the role of APIs and how managing and defining that traffic and use patterns—both incoming and outgoing—I was reminded too of the Big Data analysis value so many companies are building out.

What if you were to be able to analyse real-time data with real-time API activities? This may not be for everyone, but many mobile, e-commerce and service providers—and a boat load of web-focused start-ups—could develop some super insights.

Joining the analysis from APIs, systems logs, and data could be a killer business intelligence benefit. It might also spur new revenue by selling that analysis if you happen to find yourself at the juncture of APIs and data and either business or consumer behavior. Viva la real time analytics at scale!

Among the new and rebranded Apigee products:

• Apigee Premium: Announced on Wednesday, Apigee Premium provides advanced features on top of the Apigee Free platform, including unlimited API traffic, advanced rate limiting and analytics, and developer key provisioning. Visit https://app.apigee.com/sign_up to sign up for the preview.
• Apigee Free: A free tools platform launched last year for developers and providers to learn, test, and debug APIs, get analytics on API performance and usage, and apply basic rate-limits to protect their services.
• Apigee Enterprise: An industrial-grade API platform for enterprises using APIs to fuel their mobile, multichannel, application and cloud strategies. Previously Sonoa Systems’ core product ServiceNet, Apigee Enterprise provides API visibility, control, management and security.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 23rd September 2010 Copyright Interarbor Solutions © 2010

IBM is snapping up yet another business analytics player. After purchasing OpenPages last week, Big Blue is now laying down $1.7 billion in an all-cash deal to acquire Netezza.

Netezza provides high-performance analytics in a data warehousing appliance that claims to handle complex analytic queries 10 to 100 times faster than traditional systems. Netezza appliances puts analytics into the hands of business users in sales, marketing, product development, human resources and other departments that need to actionable insights to drive decision-making.

With its latest business analytics acquisition, Steve Mills, senior vice president and group executive of IBM Software and Systems, says the company is bringing analytics to the masses.

“We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value,” Mills says. “Netezza is a perfect example of this approach.”

Big Blue’s long haul
Netezza fits in with IBM’s maturing business analytics strategy. Big Blue has long put an emphasis on data analysis and business intelligence (BI) as key drivers of IT infrastructure needs. The company has demonstrated a clear understanding that data analysis and BI can also be easily applied to business issues.

IBM’s relationship database, DB2, also fits into the big picture. Over the years, IBM has built a strong family of database-driven products around DB2. Essentially, IBM has successfully worked to tie the data equation together with the needs of enterprises and the strength of their IT departments.

While DB2 reaches into the past and supports the data needs of legacy and distributed systems and applications, new architectures around in-memory and optimized platforms for persistence-driven tasks are in vogue. While Neteeza's strengths are in analytics, this architecture has other uses, ones we'll be seeing more of.

Fast-forward to the Netezza acquisition. The $1.7 billion grab shows that IBM is well aware that big data sets don’t lend themselves to traditional architecture for crunching data. IBM, along with its competitors, have been developing or acquiring new architectures that focus more on in-memory solutions.

Rather than moving the entire database or large caches around on disk or tape, then, new architectures have emerged where the data and logic reside closer together—and the data is accessed from high-performing persistence.

For example, with Netezza appliances, NYSE Euronext has slashed the time it takes to load and extract massive amounts of historical data so it can run analytic queries more securely and efficiently, while reducing run times from hours to seconds. Virgin Media, a UK provider of TV, broadband, phone and mobile services with millions of subscribers, uses Netezza across its product marketing, revenue assurance and credit services departments to proactively plan, forecast, and respond to the effect of pricing and tariff changes enabling them to quickly respond with competitive offerings.

Business analytics consolidation
With the Netezza acquisition, the business analytics market is seeing consolidation as major players begin preparing to tap into a growing big data opportunity. Much the same as the BI market saw consolidation a few years ago—IBM acquired Cognos, Oracle bought Hyperion, and SAP snapped up Business Objects—vendors are now seeing big data analytics as an area that should be embedded into the total infrastructure of solutions. That requires a different architecture.

The competition is heating up. EMC purchased Greenplum, an enabler of big data clouds and self-service analytics, in July. Both companies are planning to sell the hardware and software together in appliances. The vendors tune and optimize the hardware and software to offer the benefits of big data crunching, taking advantage of in memory architecture and high performance hardware.

Expect to see more consolidation, although there aren’t too many players left in the Netezza space. Acquisition candidates include data management and analysis software company Aster Data Systems and Teradata with its enterprise analytics technologies, among others. [Disclosure: Aster Data is a sponsor of BriefingsDirect podcasts.]

Meanwhile, Oracle this week at OpenWorld is pushing against the market with its new Exadata product. The battle is on. My take is that these purchases are for more than the engines that drive analytics—they are for the engines that drive SaaS, cloud, mobile, web and what we might call the more modern work loads ... data intensive, high-scaling, fast-changing and services-oriented.

BriefingsDirect contributor Jennifer LeClaire provided editorial assistance and research on this post. She can be reached at http://www.linkedin.com/in/jleclaire and http://www.jenniferleclaire.com.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 22nd September 2010 Copyright Interarbor Solutions © 2010

Morphlabs, a provider of enterprise cloud architecture platforms, has simplified the process of building and managing an internal cloud for enterprise environments -- enabling companies to create their own private cloud infrastructure.

The Manhattan Beach, Calif. company today announced a significant upgrade to its flagship product, mCloud Controller. The enhanced version introduces Enterprise Cloud Architecture (ECA), a new approach that provides enterprises with immediate access to the building blocks and binding components of a fault tolerant, elastic, and highly automated platform.

Morphlabs also announced a partnership with Zend Technologies Ltd., whose Zend Server will be shipped as part of the mCloud Enterprise, said Winston Damarillo, CEO at Morphlabs.

mCloud Controller is a comprehensive cloud computing platform, delivered as an appliance or virtual appliance, as well as providing open mCloud APIs (you can manage the ECA cloud from an iPad, for example). To support the leading platforms, mCloud Controller will have built-in ECA compliant support for Java, Ruby on Rails, and PHP.

Fittingly for enterprise private clouds, the Morph offering also provides direct integration to mainstream middleware via standards-based connectors. It also supports a plethora of VMs, from KVM to Xen, and and VMware, and allows for others cluster managers to be used as well.

Look for Morphlabs to seek to sell to both service providers and enterprises for the compatible hybrids benefits. Of course, we're hearing the same from Citrix, VMware, Novell, HP, etc. It's a horse race out there for a de facto hybrid cloud standard, all right.

Productivity gains
“PHP has been broadly adopted for the productivity gains it brings to Web application development, and because it can provide the massive scalability that e-commerce, social networking and media sites require,” said Matt Elson, vice president of business development at Zend. “Integrating Zend Server into Morphlabs’ mCloud Controller enables IT organizations to leverage the elasticity of cloud computing and automate the process of deploying highly reliable PHP applications in the cloud.”

Key features of the mCloud Controller with ECA include:

• Uniform environments from development to production to help users simplify system configuration. Applications can grow as needed, while maintaining a standardized infrastructure for ease of growth and replacement.
• Simplified system administration with automated monitoring and self-healing out of the box to avoid complicated system tuning. mCloud Controller also comes with graphical tools for viewing system-wide performance.
• Self-service resource provisioning, which frees the IT department from numerous application provisioning requests. Without any system administration skills, authorized users can start and stop computes and provision applications as needed. Billing is also included within the system.
• Streamlined application management automates the process of deploying, monitoring and backing-up applications. Users do not have to deal with configuration files and server settings.

The mCloud Controller v2.5 is available now in the United States, Japan and South East Asia. For more information contact Morphlabs at info@mor.ph.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 21st September 2010 Copyright Interarbor Solutions © 2010

Aster Data has taken big data management and analytics to the next level with the announcement of its Aster Data nCluster 4.6, which includes a column data store and provides a universal SQL-MapReduce analytic framework on a hybrid row and column massively parallel processing (MPP) database management system (DBMS).

The San Carlos, Calif. company's new offering will allow users to choose the data format best suited to their needs and benefit from the power of Aster Data’s SQL-MapReduce analytic capabilities, as well as Aster Data’s suite of 1000+ MapReduce-ready analytic functions. [Disclosure: Aster Data is a sponsor of BriefingsDirect podcasts.]

Row stores traditionally have been optimized for look-up style queries, while column stores are traditionally optimized for scan-style queries. Providing both a row store and a column store within nCluster and delivering a unified SQL-MapReduce framework across both stores enables both query types.

Universal query framework
For example, a retailer using historical customer purchases to derive customer behavior indicators may store each customer purchase in a row store to ease retrieval of any individual customer order. This is a look-up style query. This same retailer can see a 5–15x performance improvement by using a column store to provide access to the data for a scan-style query, such as the number of purchases completed per brand or category of product. The Aster Data platform now supports both query types with natively optimized stores and a universal query framework.

Other features include:

• Choice of storage, implemented per-table partition, which provides customers flexible performance optimization based on analytical workloads.
• Such services as dynamic workload management, fault tolerance, Online Precision Scaling on commodity hardware, compression, indexing, automatic partitioning, SQL-MapReduce, SQL constructs, and cross-storage queries, among others.
• New statistical functions popular in decision analysis, operations research, and quality management including decision trees and histograms.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 21st September 2010 Copyright Interarbor Solutions © 2010

HP is pushing the automation card again with new tools for hybrid IT environments. The company Wednesday announced “enhanced automation solutions” that set the stage for lower-cost business application deployment — whether those apps are deployed traditionally, virtually or via a cloud.

HP’s latest Business Service Automation (BSA) enhancements beef up its solutions for hybrid IT environments, which the company defines as any combination of on-premise, off-premise, physical and virtual scenarios, including cloud computing. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

HP has identified a strong need in the enterprise, which is why it’s moving so fast on the BSA front. Although hybrid IT environments can increase a business’s agility and speed time to market, they also increase complexity, risk and costs by creating IT silos — if the environment isn’t holistically managed. HP’s new BSA software enhancements work to take the “if” out of the equation.

A 360-degree hybrid solution
This week’s BSA announcement builds on HP’s recent cloud announcements for hybrid IT environments. The just-announced software enhances the HP’s BSA portfolio to offer unified server, network, storage, and application management. The goal is to break down IT silos to simplify application development and hybrid IT management.

HP is promising financial returns for companies that adopt its solutions. According to a June 2010 ExpertROI Spotlight, conducted by IDC on behalf of HP, organizations that deploy HP BSA solutions can realize up to $4.82 in benefits for every IT dollar invested, reduce annual IT costs by up to $24,000 per 100 end users, and reduce outsourcing costs by 40 percent to 80 percent.

“Organizations are seeking solutions that deliver business applications and services with greater agility, speed and at the lowest cost to the enterprise, regardless of their IT environment,” says Erik Frieberg, vice president of Marketing, Software and Solutions at HP. “Clients can achieve up to 382 percent ROI by deploying HP’s leading automation software and leverage the benefits of new hybrid delivery models.”

HP’s acquisition of Stratavia has strengthened its automation portfolio by adding deployment, configuration and management solutions for enterprise databases, middleware and packaged applications. These solutions aim to bridge the gap between application development and operational teams. With Stratavia’s technology in its portfolio, HP said it can now provision all of the components, rapidly deploy changes and manage the ongoing configuration and compliance management.

Under the BSA hood
HP’s BSA portfolio now offers new capabilities in application deployment and risk mitigation, as well as better efficiency and productivity. For example, HP Server Automation 9.0 helps clients automate the entire server life cycle, control virtualization sprawl, and provide more flexible provisioning and deployment of applications. New Application Deployment Manager (ADM) functionality lets IT organizations automate the release process to bridge the gap between development, quality assurance and operations teams. HP said these enhancements can accelerate application deployment by up to 86 percent.

What’s more, HP Network Automation 9.0 now helps clients contain costs, mitigate risk and improve efficiency of the network by automating error-prone tasks, reducing outages and enforcing policies in real-time regardless of the environment. And HP Operations Orchestration 9.0 helps clients faced with constant alerts and siloed teams improve service quality across hybrid environments. It gives clients the ability to automate the IT processes required to support cloud computing initiatives.

HP Operations Orchestration software can help manage a hybrid infrastructure through a single view while HP Client Automation 7.8 helps clients reduce administration costs for managing physical and virtual machines through a single tool. And HP Storage Essentials 6.3 helps clients reduce complexity in hybrid environments, while improving storage utilization and controlling capacity growth.

IT needs to play at productivity better
The BSA offerings come at a crossroads for enterprise IT. The fact is that IT can no longer just compete against its own past practices and cost structures. There's a looming gulf between what IT costs the IT department to provide and what a small army of outside hosts is coming to market with. IT now needs to compete against the costs structures of pure-play cloud and SaaS providers and hosts.

The solution for IT to remain competitive, and to pick and choose what to retain and what to outsource, is to make all of its systems and apps perform better and more efficiently. And it also needs the governance and management to automate those apps and systems to keep complexity and costs in line.

Visibility, automation and management are essential for IT to stay in the game against hosts, MSPs, clouds, SaaS providers, etc. And the same management allows IT to function as the best broker of services, regardless of where the servers reside. This is clearly the target HP's BSA portfolio has in its sights.

BriefingsDirect contributor Jennifer LeClaire provided editorial assistance and research on this post. She can be reached at http://www.linkedin.com/in/jleclaire and http://www.jenniferleclaire.com.

By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 17th September 2010 Copyright Interarbor Solutions © 2010

Delphix has brought virtualization techniques to database infrastructure with general availability of Delphix Server, which reduces structured and relational data redundancy while maintaining full functionality and performance -- and operating in a fraction of the space at lower cost.

The Palo Alto, Calif. company, just launching this week at DEMO, says that Delphix Server solves two major IT challenges: the operational complexity and redundant infrastructure required to support applications lifecycles via multiple database caches. Delphix software installs on standard x86 servers or in virtual machines, allowing customers to virtualize database infrastructure into a "single virtual authority" and do for relational data what storage innovations and "de-dupe" have done to reduce myriad standing copies of data caches.

The interface for managing the data is very clean and time-line based down to seconds. It reminds me of an enterprise-level version of Apple's Mac OS X Time Machine, but far more granular. This allows all those with access to the data to manage it intelligently but sparingly.

While Delphix consolidates storage and reduces database provisioning and refresh times, it adds little or no impact to production systems through its innovative synchronization technology, says Jed Yueh, CEO at Delphix. Other benefits include:

• Agile application development: Delphix automates the provisioning and refresh process, enabling developers to instantly create personal sandboxes or virtual databases (VDBs) that are up-to-date and isolated from other VDBs. Developers can cut months out of project schedules and perform destructive or parallel testing to improve overall application quality and performance.

• Improved data resiliency: Patent-pending TimeFlow technology enables customers to create a running record of database changes; VDBs can be instantly provisioned from multiple points-in-time, with granularity down to the second. This time-shifting capability enables businesses to dramatically reduce the time required to recover from logical data loss.

• Storage consolidation: The average customer creates seven copies of each production database for development, testing, QA, staging, operational reporting, pilots, and training, with each copy typically having its own dedicated and largely redundant storage. Delphix creates a single virtual environment, where multiple VDBs can be instantly provisioned or refreshed from a shared footprint -- coordinating changes and differences in the background without compromising functionality or performance.

Both enterprises and service providers for SaaS and cloud will benefit from reducing the vast data redundancy across the app dev and ops lifecycle. By shrinking the hardware requirements, those hosts seeking to improve their margins gain, while enterprises and ISVs can devote the server and storage resources to more productive uses.

I should think that the app dev and test folks would grok the benefits too. Why not cut the hardware and storage costs for bringing applications to maturity by virtualizing the databases? What works for the OS and runtime works for the data.

You may also be interested in:

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By: Dana Gardner, Principal Analyst, Interarbor Solutions Posted: 15th September 2010 Copyright Interarbor Solutions © 2010

• Technology, process and people must combine smoothly to achieve strategic virtualization benefits
• Converged Infrastructure Approach Paves Way for Improved Data Center Productivity
  
• HP's Bill Veghte on managing complexity amid converging IT 'inflection points'