ellementK: (ĕll'ǝ-mǝnt-kā)
noun - A fundamental, essential, or irreducible constituent of a composite entity. Middle English, from Old French, from Latin About Eleanor Kruszewski: I'm known variously as Eleanor or Elle. My last name is like that coach from Duke - kru-shef-ski. Based in Menlo Park, CA, I work for Yahoo! in their Developer Network. The easiest description of what I do is the MBA shin kicker, handling community, marketing, commercial programs and sundry backend stuff. Disclaimer: I've done big corps, midcorps, and startups, so I overstate and oversimplify as much as anyone else. These opinions are my own, not my employer's. |
View all entries in the 'Enterprise IT' CategorySiebel a decaying asset?Peoplesoft didn’t really mark the end of an era for me, nor did Macromedia. I think Siebel - were it to be scarfed up - would do the trick. The Wall St. Journal had a piece yesterday that brought me short with this realization. Oracle Has Discussed Siebel Buyout Not really a big deal, but I was struck by shareholder revolt leader Herbert Denton proclaiming “Siebel can be viewed as a ‘decaying asset,’” in a letter to the board. The logic is saturation and consolidation and customer reluctance to upgrade, which are inexorable forces at work in the enterprise space. But the phrasing seems particularly jarring in that it states the obvious: software is a decaying asset. Sure Siebel’s business was never what it seemed in 1999, with untold licenses bought but never installed. In fact, last spring I found a Gartner stat that said 42% of all CRM sw went unused, vs the industry norm of 20%. CRM software is particularly suspect because walking around enterprises you can see how few people use it. Since then Siebel, among the big players of that day, has labored under the weight of needing to prove its usefulness. Fighting to grow sales (we could joke about how much of that 42% was later upgraded) off a bogus number that itself is cause for ill-will from your customers, in the face of competition and code-base and functional maturity that itsefl is a natural impediment to ready upgrading. Oh, and there’s the re-emergence of that pesky ASP model, call it grid, software as a service, BPO, whatever - all that puts an end to professional services around installs and custom work. Gak - what a mess. So Siebel’s got On Demand now, and might even make an acquisition here or there, but we’ll see where it all ends up. When I started this, I was going to point out the irony that all software is decaying, in that new versions are generally welcomed. But ironically, the problem in this space is that the software is not decaying, it’s the appetite for investment on the part of customers and partners. Software gets to be good enough, and it’s clearly time to go out and find new markets. But that’s the hardest message of all to get through to big successful-feeling companies who have achieved a lot through the years. End of life is a real stage, you either do it yourself, or the market’ll do it for you. Oh, and a note about how I derived this link. From an idea on a blog (maybe Doc’s??), I emailed myself a link, which will be good for you for a week; if you are a WSJ subscriber the 30-day link is here. Participate: 0 Comments | TrackbackIBM surveys perception of On Demand mktng messageLast week I received an invitation to a survey offered by Meta Group on IBM’s OnDemand program. It didn’t seem to work the first time I tried it, but apparently I misread a question (bad survey design!). It’s worth it though because it offers a glimpse into IBM’s marketing and insights that 1). they’re perceptive enough to suspect (and willing to spend money confirming) that their marketing is missing its target, and 2). that there’s conflict within IBM groups about which message should be most prominent. Take the image below, for example, which I captured out of their survey. This question presents seven perfectly reasonable interpretations of what IBM’s OnDemand initiative means:
Now, I can make a guess (until they share survey findings as promised) which option ends up being the most popular (#1), and the option IBM’s marketing honchos really want to see (#6) - but what’s truly interesting is the small, yet important, differences in what each interpretation means. Each bullet lists an empirically strong value proposition, which is clearly targeted to a particular functional group in the enterprise. So, this survey is a test to see if the right message resonates with the right functional area (the survey requests role and position). That’s very good marketing execution and perfectly valid. However, if you take a step back, and look at how different the value propositions are within each of these, and how each value propositon really points to a different level of integration and reliance upon IBM - we see exactly how confused one can get about just what IBM is supposed to bring. If IT is looking at IBM as an infrastructure provider, and the board is looking at this as a business model intiative (which I think is pretty hard to swallow), and the procurement guys see this as a sourcing model - things get pretty convoluted when you roll all these projects up, never mind the fact that each group is convinced that their idea of IBMOnDemand is correct. We’re all guilty of relying on high concepts such as On Demand to sell products and servics - but in this case I actually think what IBM and HP and even Gartner are doing in this space is dangerous. IBM has its version of IBMOnDemand, which is both vague and big enough to safely cover all these attributes mentioned above. HP has “Adaptive Enterprise”, which, to my mind, is even less clearly articulated than IBM’s. Then we’ve got Gartner selling their “Real Time Enterprise” which, when I can parse their texts on the matter, seems to be an even higher conceptual model of this same vision of provisioned/billed-when-needed, autonomically-managed, integrated-via-components model. This model itself is sound - it will be a cheaper, more efficient, more robust way to operate. The migration demanded by this vision is enormous though, as is the implicit flexibility demanded of these systems. I’m troubled by the monolithic approach of IBM and HP (check out this ITWorld webcast they sponsored with Gartner for an example - site registration required) in this space. Sun seems to get it more with their talk (well Jonathan’s is the only stuff worthwhile) of Solaris 10 containers for virtualization - that seems to offer a middle path, namely in migrating currently-running applications without modification. What’s missing here, I feel, is the simple recognition that any of these utility schemes seem to involve significant engineering, along the rough equivalent of putting in a new electrical system in a house. Why would you want a proprietary wiring system? This sounds basic, but I’m not convinced that IBM and HP (and even Sun) get that these utility infrastructures need to be open standards and portable. Customers will sign up for service contracts, but it will be very difficult (as both HP and Sun have found) to get them to rearchitect their environment to work only with their products. So the final question of the survey was to comment on both the good and bad of all this. I shared the following with Meta, which I’ll share with you here. I absolutely think that IBM’s amoeba-swallowing-approach is dangerous to what is a genuinely important next step in enterprise architecture, even though I do admire them for cooking up discrete and compelling value propostions for each of their constituencies. It’s a heck of a marketing campaign; it’s just not particularly helpful to the ecosystem.
Question: What is the single biggest thing IBM is doing right at this time?
Question: What is the single biggest mistake IBM is making at this time? Google V. Microsoft outlooked in MIT’s Technology ReviewThis month’s (January 2005) Tech Review has a lengthy piece where Charles Ferguson, veteran of past battles with Microsoft (founded Vermeer, maker of FrontPage, in the midst of the browser wars) looks at What’s Next for Google. The piece is well worth a read, as it puts the current search environment (the overview of which is a draft post I’ve never had time to complete) in perspective - both as the next frontier and as the setting for a standards battle.
One point I think Ferguson did miss was when he wrote, Two Google employees (both of whom prefer not to be named) told me that Google’s leaders believe that the company’s expertise in infrastructure—knowing how to build and operate those 250,000 servers—constitutes a competitive advantage more important than APIs or standards. This could be a major, even fatal, error. Microsoft can certainly obtain or cultivate the skills necessary to operate large-scale computing infrastructures; indeed, it already operates MSN, with nearly 10 million users. is the whole of the Gmail and Blogger initiatives. Looking at those two projects, Google is moving to host and support (and technically, thereby, own and control access to) customers’ data. It’s this aspect of Google’s business that goes beyond simply the operational wherewithal necessary to operate this infrastructure, what Gartner called “Tera Architectures” in a Symposium 2004 presenation, Tera Architectures Emerge from the Lab. In terms of testbed for development of new algorithms and advertising schemes, as well as adding that personal element that John Battelle noted as being missing from Google when it’s compared to Yahoo! in these two posts: here and here. We’ll see how it plays out. Participate: 0 Comments | TrackbackConsolidation in the PC marketIBM’s selling their PC business to Lenovo, reports The New York Times today. This comes after research firm Gartner issued a press release on Monday predicting that 3 of the top 10 PC Manufacturers will be out of (the) business by 2007. And they pointed to IBM as a potential player. I have to say I’m significantly less impressed by their display of foresight given the fact that IBM no doubt mentioned this to them. But who knows? Maybe the Gartner statement cleared the way before IBM’s announcement. Regardless, Gartner is already 33% correct - wonder what that does to their probabilities. We only need two manufacturers to shut down operations now for Gartner’s prediction to come to pass, and we have 2 full years. Who’s likely to be next? No shocking insight from Gartner. Analyst Leslie Fiering only shared specuation on two of the three. “The PC divisions of HP and IBM are vulnerable to being spun off if their drag on margins and profitability are deemed too great by their parent companies.” Big deal. We knew about HP already. Carly in her WSJ interview this week commented that any non-performing business is subject to divestiture, and IBM has already leaked. So what, Gartner. I want to hear your predictions for who this third player is. Adding to the connumdrum are conflicting reports as to the continued growth of the PC business over the next year and beyond. Gartner sees strong sales to continue throughout 2005. However, InformationWeek has a report with a roundup of other numbers, with the bearish title New Orders For Computers Fall; Dip In Buying Seen In ‘05:
None of us knows the future - it might be safest to make predictions that include sure bets, as Gartner did earlier this week. Participate: 1 Comment | TrackbackMicrosoft and Sun report on progress of collaborationAs I wrote about two weeks ago, the area of integration between Sun and Microsoft around directory services is a powerful reason for their new alliance. The Wall Street Journal has a quick piece that reports on their first joint progress report.
However, a problem this big and this obvious also has a lively open source project aiming to bridge the gap. SAMBA is a project designed to provide interoperability between various OS for file, print, authentication and other services. See the full story here. WSJ interviews Carly FiorinaYesterday’s The Wall Street Journal has an interview with Carly Fiorina. It’s more of the same - she emphasizes the importance of “execution” and constant focus on cost savings. And she lists HP’s 3 top priorites as “how to get more efficient and effective” at managing the cost structure, gaining greater share of wallet, and a new focus on growing by leveraging capabilities and skills to grow organically into new businesses (she cites move into digital entertainment as an example of this.) The mass layoffs are over, but HP will expand and contract as they increase focus on new areas of the business and shift away from less profitable areas. For technology she has this to say:
Provacatively, she responded to questions about the recent departure of many of HP’s top players by saying:
That all may be true, but it seems a strange cultural thing that HP is unable to put them to use productively - even if they weren’t the best fit with one particular job. Participate: 0 Comments | TrackbackChip Chatter - Consumer & Converged DevicesI have a lot of back posts to put up over the next few days, but first a current piece from today. Right away I’ve seen two pieces on chips from big players, tracking with themes I’m developing. First the announcment of the Cell chip, product of joint development efforts of IBM, Sony and Toshiba. This chip is designed for consumer electronics applications targeted at the digital home including Sony’s Playstation and handling video display for high resolution displays. As The Wall Street Journal reports in WSJ.com - IBM, Sony, Toshiba Unveil Chip For Home-Entertainment Sector:
(edited 13 Dec) See also The Red Herring blog post which has more info about the Cell chip as well as comments on where it will fit in in the world of consumer electronic devices and games. The New York Times focuses on Intel and its strategies and challenges ahead with a piece looking forward to Otellini’s ascent to CEO. Most noteworthy for the theme of convergence around multifunction advanced handsets, the piece reports on Otellini’s new strategy of “platformization” — what seems to be Intel focusing less on the hardware attributes of chips but more on the holistic solution. Looking forward to Otellini’s first strategy presentation to Wall Street, The Times expects him to announce Intel’s focus on “four areas for growth: international markets for desktop personal computers, mobile and wireless applications, the digital home, as well as a new initiative aimed at large corporate computing markets that Intel is calling the Digital Office.” We’ll have to wait to see what is shared about the “Digital Office” initiative… that makes me think of Xerox. Perhaps to underscore this shift, the most innovative part of Intel’s strategy that’s discussed in the article talks about Intel’s investment in Craig McCaw’s wimax startup, Clearwire:
What I take away from this is more evidence that consumer facing applications are receiving the focus that was formerly centered around the enterprise. I’m going to be posting on this theme quite a bit (including backposts) so I will return to add links later. Participate: 0 Comments | TrackbackSolaris 10 on x86 - critical to Sun’s continued successThe Register’s Ashlee Vance has a piece on Sun and its future - positing that Sun will only retain relevance if Solaris 10 on x86 becomes the new growth engine. Vance takes the audacious positon that Sun is in extreme danger of becoming “a bigger, richer version of SGI”. I definitely recommend you check out the full article, but it goes like this:
This part is very insightful, because its at the crux of the fight between HP and Sun over Schwartz’s blog posts (which I blogged here) that marginalize HP-UX as a dead platform. But Solaris’ franchise is based on its success with the RISC architecture - which is itself in decline. Therefore, it is critical to Sun that they get their ‘best of breed’ operating system out there on as many x86 boxes as possible, as quickly as they can.
Interesting stuff.
Sometimes the detail is nice too! Participate: 0 Comments | TrackbackUpdate on IBM WorkplaceHere’s a snapshot of the current plan for IBM Workplace - IBM Workplace Changes in Store Participate: 0 Comments | TrackbackMicrosoft takes stake in ADFS-enabling startupTonight I was at a Churchill Club event where I met Glenn Kesselman, director of channel and partner sales for Vintela, a Utah based company that works to bridge the conflicting identity management services of *nix and Microsoft. Glenn said they had big news coming out on the wires, and it turned out to be that Microsoft took a minority stake, with a cash infusion of “under $10m”. For full details, Vintela: Microsoft’s Secret Unix/Linux Weapon?. This investment continues a positive relationship of co-development and joint sales/marketing efforts. Tools like these help ease the pain of integration now, but I do wonder about Vintela’s long term strategy in the face of the Sun-Microsoft alliance - which is fueled by this exact issue. If big customers brought Sun and Microsoft to the bargaining table and extracted committments to deliver interoperability, it throws the long term viablity of Vintela’s product line in question. I can’t help but wonder if they would have been better off in an outright purchase. Participate: 0 Comments | TrackbackSecurity Report: Windows vs Linux | The RegisterUK tech site The Register has a report assessing the Windows-Linux security debate. Given the snarky character of the site (fondly called ‘El Reg’ by its regulars), this report seems biased in favor of Linux. It’s still an interesting examination of a complex issue and worth a read. Security Report: Windows vs Linux | The Register Participate: 0 Comments | TrackbackMicrosoft announced “Whitehorse” product as competitor to UML modeling toolsArsTechnica comments on the ZDNet piece on Microsoft’s new project around developing a competing framework to the UML commonly in use todya by many large ISVs, saying:
With IBM’s acquisition of primary UML-tool developer Rational last year, Microsoft is likely responding with the increasing integration between IBM’s products and Rational tools. It does seem a shame for them to take another direction completely, but given the fact that Microsoft developers tend to raised in Microsoft environments (where Rational has not been strong historically) - this could be a win in terms of growing adoption of rigorous software development practices within Microsoft shops. Participate: 0 Comments | TrackbackSuSE Linux Gaining TractionWe have a couple reports of SuSE Linux gaining traction with Novell’s backing and enterprise experience. Bolstered by Novell ’s promises of continued support, ‘Palladium’ Echoes in New Handheld Security Spec‘Palladium’ Echoes in New Handheld Security Spec
Speculation is that someone among the handset manufacturers will jump on board in the near term. I’m not convinced that this is an enormous problem since handsets and carriers are quite well locked down today (see iscussion of the power struggles here). Participate: 0 Comments | TrackbackA Broader View of CurrencyDouglas Rushkoff has a speculative piece, TheFeature :: Open Source Currency, on what the emergence of alternative electronic currencies could mean for the world at large. It’s brief and worth a reread, especially in light of the troubles experienced (and caused) by PayPal’s network outages of last week. Participate: 2 Comments | TrackbackThat enterprise software licensing problem…..At Symposium and increasingly in commentary and news, it’s apparent that the time-honored models of selling perpetual software licenses are breaking down. Customers are increasingly drawn to service providers and ASPs who sell ’software as a service’ — they sell access but not the intellectual property of the code. To get a sense of the current mood, see eWeek’s report on discussions at the SoftSummit conference held last week in Santa Clara. Also worth reading is this IDC report discussing the issue in a more academic way, focusing on the upcoming financial headaches for ISVs as their revenue streams are strained by disappearing upfront license payments. Participate: 1 Comment | TrackbackWas Gartner’s endorsement of SOA at Symposium newsworthy?At the opening keynote at Gartner’s Symposium conference, I was struck by the opening panel’s announcment that SOA was the most important trend. Now, I’m not minimizing it - but the delivery of this was basically that the speaker (I think Gartner Distinguished Analyst, Gene Phifer) basically looked at the audience and pronounced “SOA” like it was new information and all the attenees - largely CIOs - needed to take away from the conference. Here’s “>the research piece Gartner produced to go along with their keynote theme. I’m just surprised that they pronounced it as if it were unheard of in the industry, instead of the lively topic of hype that it already was (see such indications of preSymposium indicators of SOA’s importance as this Survey: SOA prominent on 2005 budgets) Still, the Gartner endorsement has let loose a more serious consideration of what SOA means by the tech media. Two pieces I found interesting are these from Infoworld - Coming to Terms with Service-Oriented Architectures - a more general, big picture piece - and Coming to Terms with Components - which gets more into the details of businsess models and implementations. Sure, SOA is important, but it’s a concept, a framework not all that different than the vision behind CORBA back in the ’90s (and how successful was that? what about EJB?). The emergence of SODA (services oriented development of applications) as a methodology takes us one step further toward realizing this goal by giving us a path to follow. Make no mistake - implementing SOA involves rearchitecting applications, data centers, networks and systems. It can be implemented incrementally, as enterprises roll out new applications - but this fundamentally conflicts with the kind of projects enterprises are taking on. They’re largely incremental improvements and staged roll outs. The current climate in enterprise IT spending doesn’t point to a huge uptake in undertaking projects to implement SOA. There are significant benefits to be gained from adoption of SOA and component-based web services. It reduces integration costs for future applications and for changes to the system - essentially increasing agility and adaptability. But we can’t forget that it involves building a fundamentally different infrastructure. Now vendors are talking about this a lot. Package vendors are retooling their applications to include web services and support SOA - but that’s because SOA helps mitigate one of their harder-to-avoid sales objections - the sheer cost and disruption of upgrades and new installs. But we have to remember that what vendors want to sell and what customers want to buy can be quite different. Especially with lagging IT spending and a widely held sense that there is no ‘next big thing’ out there to drive spending, vendors are eager to hop on anything that will strengthen their selling propositon. And SOA - as a “revolutionary” approach to software development, integration and delivery - implies a multi-year investment cycle, similar in strength and scope to those seen with the migration to client/server and the web. Participate: 0 Comments | TrackbackRevisting chassis designAddressing the consumer side for a bit, we take a look at the quiet computing issue. As computers become increasingly integrated in the life of the average American home, fan noise, power consumption and form factor assume more importance in buying decisions and user satisfaction. Visit anyone with a Windows Media home system and you will be surprised by the audible hum of the processor. What works in the office or the den doesn’t work when projecting movies - the processor should not be audible over the sound of crickets. It interferes with the viewing experience. Finally there’s growing momentum to adopt the BTX chassis, which is designed to maximize airflow over the hottest components (chips and graphics cards). Vendors currently producing kit with this chassis configuration include IBM (ThinkCentre), Gateway (consumer-grade 700GR - see article here), and HP (Grantsdale-chip based dc7100). I have yet to see a demo of these systems, but anything to bring entertainment convergence closer to the TV model should help to improve the customer experience and increase adoption. Could this be a way for the Windows Media home entertainment style boxes to be welcomed into living rooms? For more information see eWeek article: Quiet Computing. Participate: 1 Comment | TrackbackThin clients as model for simplifying user experience and securityIn both conversations and in print, I can see that significant thought is being put into how to secure the typical user computing environment (from normal office workers to home computers). A recent report from AOL and the National Cyber Security Alliance shows exactly how unsecure most home pc’s are: 80% of their participants had malware on their pcs.Participate: 0 Comments | Trackback MicrosoftWatch interviews Microsoft WatcherSee this interesting interview of Joel Spolsky (author of Joel on Software - a very good forum for software development issues). It’s little like eavesdropping on guys talking about last night’s game…. I’m tracking these issues because I am very curious what the true development path for Longhorn will be. The further it gets pushed back, and the more features are stripped from Rev 1, the further behind Microsoft is falling in terms of credibility and relevance. I am deeply concerned that Microsoft’s process capability to develop software has suffered as it has grown so large. Participate: 1 Comment | Trackback |
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