November 18th, 2009

IBM feels cozy on sidelines as Oracle-Sun deal languishes in anti-trust purgatory

Posted by Dana Gardner @ 3:44 am

Categories: Apache, BI, Cloud computing, Eclipse, Enterprise Java, HP, Hardware Infrastructure, IBM, Intellectual Property, Java, Microsoft, Open Source, Oracle, SAP, SOA, Silicon Valley, Software Development, Software Infrastructure, Sybase, System Z, Wall Street, business intelligence, database, datacenters, mainframe

Tags: Oracle Corp., Antitrust, Sun Microsystems Inc., Steve Mills, IBM Corp., Programming Languages, Open Source, Java, Databases, Software Development

You have to know when to hold them, and when to fold them. That’s the not just slightly smug assessment by IBM executives as they reflect — with twinkles in their eyes — on the months-stalled Oracle acquisition of Sun Microsystems, a deal that IBM initially sought but then declined earlier this year.

Chatting over drinks at the end of day one of the Software Analyst Connect 2009 conference in Stamford, Conn., IBM Senior Vice President and IBM Software Group Executive Steve Mills told me last night he thinks the Oracle-Sun deal will go through, but it won’t necessarily be worth $9.50 a share to Oracle when it does.

“He (Oracle Chairman Larry Ellison) didn’t understand the hardware business. It’s a very different business from software,” said Mills.

Mills seemed very much at ease with IBM’s late-date jilt of Sun (Sun was apparently playing hard to get in order to get more than $9.40/share from Big Blue’s coffers). IBM’s stock price these days is homing in on $130, quite a nice turn of events given the global economy.

Sun is trading at $8.70, a significant discount to Oracle’s $9.50 bid, reflecting investor worries about the fate of the deal now under scrutiny by European regulators, Mill’s views notwithstanding.

IBM Software Group Vice President of Emerging Technology Rod Smith noted the irony — perhaps ancient Greek tragedy-caliber irony — that a low market share open source product is holding up the biggest commercial transaction of Sun’s history. “That open source stuff is tricky on who actually makes money and how much,” Smith chorused.

Should Mills’s prediction that Oracle successfully maintains its bid for Sun prove incorrect, it could mean bankruptcy for Sun. And that may mean many of Sun’s considerable intellectual property assets would go at fire-sale prices to … perhaps a few piecemeal bidders, including IBM. Smith just smiled, easily shrugging off the chill (socks in tact) from the towering “IBM” logo ice sculpture a few steps away.

And wouldn’t this hold up go away if Sun and/or Oracle jettisoned MySQL? Is it pride or hubris that makes a deal sour for one mere grape? Was the deal (and $7.4 billion) all about MySQL? Hardly.

Many observers think that Sun’s Java technology — and not its MySQL open source database franchise — should be of primary concern to European (and U.S.) anti-trust mandarins. I have to agree. But Mills isn’t too concerned with Oracle’s probable iron-grip on Java …, err licensing. IBM has a long-term license on the technology, the renewal of which is many years out. “We have plenty of time,” said Mills.

Yes, plenty of time to make Apache Harmony a Java doppelganger — not to mention the Java market-soothing effects of OSGi and Eclipse RCP. [Hey, IBM invented Java for the server for Sun, it can re-invent it for something else ... SAP?]

Unlike some software titans, Mills is clearly not living in a “reality distortion field” when it comes to Oracle’s situation.

“We’re in this for the long haul,” said Mills, noting that he and IBM have have been competing with Oracle since August 1993 when IBM launched its distributed DB2 product. “All of our market share comes at the expense of Oracle’s,” said Mills. “And we love to do benchmarks again Oracle.”

Even as the Fates seem to be on IBM’s side nowadays, the stakes remain high for the users of these high-end database technologies and products. It’s my contention that we’re only now entering the true data-driven decade. And all that data needs to run somewhere. And it’s not going to be in MySQL, no matter who ends up owning it.

November 18th, 2009

HP offers slew of products and services to bring cost savings and better performance to virtual desktops

Posted by Dana Gardner @ 2:44 am

Categories: Akamai, Cloud computing, HP, Hardware Infrastructure, IT Management, Microsoft, Open Source, SaaS, Software Development, Software Infrastructure, VMware, Virtualization, Windows, convergence, datacenters, management

Tags: Desktop, Hewlett-Packard Co., Performance, Thin Client, Cost Savings, Virtual Desktop, HP MultiSeat Solution, HP MultiSeat, Business Benefit Workshop, Thin Clients

Hewlett-Packard (HP) this week unleashed a barrage of products aimed at delivering affordable and simple computing experiences to the desktop.

These include thin-client and desktop virtualization solutions, as well as a multi-seat offering that can double computing seats. At the same time, the company targeted the need for data security with a backup and recovery system for road warriors. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

The thin-client offerings from the Palo Alto, Calif. company include the HP t5740 and HP t5745 Flexible Series, which feature Intel Atom N280 processors and an Intel GL40 chipset. They also provide eight USB 2.0 ports and an optional PCI expansion module for easy upgrades.

The Flexible Series thin clients support rich multimedia for visual display solutions, including the new HP LD4700 47-inch Widescreen LCD Digital Signage Display, which can run in both bright and dim lighting while maintaining longevity, and can be set in either a horizontal or vertical position. With the new HP Digital Signage Display (DSD) Wall Mount, users can hang the display on a wall to showcase videos, graphics or text in a variety of commercial settings where an extra-large screen is desired.

The HP t5325 Essential Series Thin Client is a power-efficient thin client with a new interface that simplifies setup and deployment. All new HP thin clients include intuitive setup tools to streamline configuration and management. These include the ThinPro Setup Wizard for Linux and HP Easy Config for Microsoft Windows.

In addition, HP thin clients also include on-board utilities that automate deployment of new connections, properties, low-bandwidth add-ons, and image updates from one centralized repository to thousands of thin clients.

Client virtualization

Three new client virtualization architectures combine Citrix XenDesktop 4, Citrix XenApp or VMware View with HP ProLiant servers, storage and thin clients to provide midsize to large businesses with a range of scalable offerings.

HP ProLiant WS460c G6 Workstation Blade brings centralized, mission-critical security to workstation computing and allows individuals or teams to work and collaborate remotely and securely. This solution meets the performance and scalability needs for high-end visualization and handling of large model sizes demanded by enterprise segments such as engineering and oil and gas.

HP Client Automation 7.8, part of the HP Business Service Automation software portfolio allows customers to deploy and migrate to a virtual desktop infrastructure environment and manage it through the entire life cycle with a common methodology that reduces management costs and complexity. Customers also capture inventory and usage information to help size their initial virtual client deployment and reoptimize as end-user needs change over time.

The HP MultiSeat Solution stretches the computing budgets of small businesses and other resource-constrained organizations by delivering up to twice the computing seats as traditional PCs for the same IT spend.

HP MultiSeat uses the excess computing capacity of a single PC to give up to 10 simultaneous users an individualized computing experience. This is designed to help organizations affordably increase computing seats and provide a simple setup, as well as reduce energy consumption by as much as 80 percent per user over traditional PCs.

Data protection and backup

To address the problem of mobile workers — now estimated at 25 percent of the workforce — potentially losing company data, HP is offering HP Data Protector Notebook extension, which can back up and recover data outside the corporate network, even while the worker is working remotely and offline.

With the Data Protector, data is instantly captured and backed up automatically each time a user changes, creates or receives a files. The data is then stored temporarily in a local repository pending transfer to the network data vault for full backup and restore capabilities. With single-click recovery, users can recover their own files without initiating help desks calls.

De-duplication, data encryption, and compression techniques help to maximize bandwidth efficiency and ensure security. The user’s storage footprint is reduced by deduplication of multiple copies of data. All of the user’s data is then stored encrypted and compressed and the expired versions are cleaned up.

HP introduced HP Backup and Recovery Fast Track Services, a suite of scalable service engagements that help ensure a successful implementation of HP Data Protector and HP Data Protector Notebook Extension.

Workshops and services

To help companies chart their way to client virtualization, HP is also offering a series of workshops and services:

• The Transformation Experience Workshop is a one-day intensive session to help customers build their strategy for virtualized solutions, identify a high-level roadmap, and get executive consensus.
• The Business Benefit Workshop allows customers to identify, quantify and analyze the business benefits of client virtualization, as well as set return-on-investment targets prior to entering the planning stage.
• An Enhanced HP Solution Architecture and Pilot Service ensures the successful integration of the client virtualization solution into the customer’s infrastructure through a clear roadmap, architectural blueprint, and phased implementation strategy.

Products that are currently available include the t5740 Flexible Series Thin Client, $429; the t5745 Flexible Series Thin Client, $399; and is currently available, the LD4700 47-inch Widescreen LCD Digital Signage, starting at $1,799; and the ProLiant WS460c G6 Blade Workstation, starting at $3,044.

The t5325 Essential Series Thin Client starts at $199 and is expected to be available Dec. 1.

November 3rd, 2009

You'll be far better off in a future without enterprise software

Posted by Dana Gardner @ 7:05 am

Categories: .NET, Agile Development, Amazon, Cloud computing, Enterprise Java, HP, Hardware Infrastructure, IBM, IT Management, IT Service Management, Microsoft, Open Source, Oracle, Progress Software, Red Hat, SAP, SOA, SOA Governance, SOA architect, SaaS, Software Development, Software Infrastructure, System Z, Virtualization, Web Services, datacenters, governance, mainframe, management

Tags: Enterprise Software, Software, Dana Gardner

This guest post comes courtesy of Ronald Schmelzer, senior analyst at ZapThink.

By Ronald Schmelzer

The conversation about the role and future of enterprise software is a continuous undercurrent in the service oriented architecture (SOA) conversation. Indeed, ZapThink’s been talking about the future of enterprise software in one way or another for years.

So, why bother bringing up this topic again, at this juncture? Has anything changed in the marketplace? Can we learn something new about where enterprise software is heading? The answer is decidedly “yes” to the latter two questions. And this might be the right time to seriously consider acting on the very things we’ve been talking about for a while.

The first major factor is significant consolidation in the marketplace for enterprise software. While a decade or so ago there were a few dozen large and established providers of different sorts of enterprise software packages, there are now just a handful of large providers, with a smattering more for industry-specific niches.

We can thank aggressive M&A activity combined with downward IT spending pressure for this reality. As a result of this consolidation, many large enterprise software packages (such as enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM) offerings) have been eliminated, are in the process of being phased out, or are getting merged (or “fused”) with other solutions.

Many companies rationalized the spending of millions of dollars on enterprise software applications because the costs could be amortized over a decade or more of usage, and they could claim that these enterprise software applications would be cheaper, in the long run, than building and managing their existing custom code. But, we’ve now had a long enough track record to realize that the result of mass consolidation, need for continuous spending, and inflexibility is causing many companies to reconsider that rationalization.

We can thank expensive, cumbersome, and tightly-coupled customization, integration, and development for this lack of innovation in enterprise software.

Furthermore, by virtue of their weight, significance in the enterprise environment, and astounding complexity, enterprise software solutions are much slower to adopt and adapt to new technologies that continuously change the face of IT.

We refer to this as the “enterprise digital divide.” You get one IT user experience when you are at home and use the Web, personal computing, and mobile devices and applications and a profoundly worse experience when you are at work. It’s as if the applications you use at work are a full decade behind the innovations that are now commonplace in the consumer environment. We can thank expensive, cumbersome, and tightly coupled customization, integration, and development for this lack of innovation in enterprise software.

In addition, no company can purchase and implement an enterprise software solution “out of the box.” Not only does a company need to spend significant money customizing and integrating their enterprise software solutions, but they often spend significant amounts of money on custom applications that tie into and depend on the software.

What might seem to be discrete enterprise software applications are really tangled masses of single-vendor functionality, tightly-coupled customizations and integrations, and custom code tied into this motley mess. In fact, when we ask people to describe their enterprise architecture (EA), they often point to the gnarly mess of enterprise software they purchased, customized, and maintain. That’s not EA. That’s an ugly baby only a mother could love.

Yet, companies constantly share with us their complete dependence on a handful of applications for their daily operation. Imagine what would happen at any large business if you were to shut down their single-vendor ERP, CRM, or SCM solutions. Business would grind to a halt.

While some would insist on the necessity of single-vendor, commercial enterprise software solutions as a result, we would instead assert how remarkably insane it is for companies to have such a single point of failure. Dependence on a single product, single vendor for the entirety of a company’s operations is absolutely ludicrous in an IT environment where there’s no technological reason to have such dependencies. The more you depend on one thing for your success, the less you are able to control your future. Innovation itself hangs in the balance when a company becomes so dependent on another company’s ability to innovate. And given the relentless pace of innovation, we see huge warning signs.

Services, clouds, and mashups: Why buy enterprise software?

In previous ZapFlashes, we talked about how the emergence of services at a range of disparate levels combined with evolutions in location- and platform-independent, on-demand, and variable provisioning enabled by clouds, and rich technologies to facilitate simple and rapid service composition will change the way companies conceive of, build, and manage applications.

Instead of an application as something that’s bought, customized, and integrated, the application itself is the instantaneous snapshot of how the various services are composed together to meet user needs. From this perspective, enterprise software is not what you buy, but what you do with what you have.

One outcome of this perspective on enterprise software is that companies can shift their spending from enterprise software licenses and maintenance (which eats up a significant chunk of IT budgets) to service development, consumption, and composition.

This is not just a philosophical difference. This is a real difference. While it is certainly true that services expose existing capabilities, and therefore you still need those existing capabilities when you build services, moving to SOA means that you are rewarded for exposing functionality you already have.

Whereas traditional enterprise software applications penalize legacy because of the inherent cost of integrating with it, moving to SOA inherently rewards legacy because you don’t need to build twice what you already have. In this vein, if you already have what you need because you bought it from a vendor, keep it – but don’t spend more money on that same functionality. Rather, spend money exposing and consuming it to meet new needs. This is the purview of good enterprise architecture, not good enterprise software.

When you ask these people to show you their enterprise software, they’ll simply point at their collection of Services, Cloud-based applications, and composition infrastructure.

The resultant combination of legacy service exposure, third-party service consumption, and the cloud (x-as-a-service) has motivated the thinking that if you don’t already have a single-vendor enterprise software suite, you probably don’t need one.

We’ve had first-hand experience with new companies that have started and grown operations to multiple millions of dollars without buying a penny of enterprise software. Likewise, we’ve seen billion-dollar companies dump existing enterprise software investments or start divisions and operations in new countries without extending their existing enterprise software licenses. When you ask these people to show you their enterprise software, they’ll simply point at their collection of services, cloud-based applications, and composition infrastructure.

Some might insist that cloud-based applications and so-called software-as-a-service (SaaS) applications are simply monolithic enterprise software applications deployed using someone else’s infrastructure. While that might have been the case for the application service provider (ASP) and SaaS applications of the past, that is not the case anymore. Whole ecosystems of loosely-coupled service offerings have evolved in the past decade to value-add these environments, which look more like catalogs of service capabilities and less like monolithic applications.

Want to build a website and capture lead data? No problem — just get the right service from Salesforce.com or your provider of choice and compose it using web services or REST or your standards-based approach of choice. And you didn’t incur thousands or millions of dollars to do that.

Open source vs. commercial vs. build your own

Another trend pointing to the stalling of enterprise software growth is the emergence of open source alternatives. Companies now are flocking to solutions such as WebERP, SugarCRM Community Edition, and other no-license and no-maintenance fee solutions that provide 80% of the required functionality of commercial suites.

While some might point at the cost of support for these offerings, we point out the factor of difference between support and license/maintenance costs. At the very least, you know what you’re paying for. It’s hard to justify spending millions of dollars in license fees when you’re using 10% or less of a product’s capabilities.

Enhancing this open source value proposition is that others are building capabilities on top of those solutions and giving those solutions away as well. The very nature of open source enables creation of capabilities that further value-adds a product suite. At some point, a given open source solution reaches a tipping point where the volume of enhancements far outweighs what any commercial vendor can offer. Simply put, when a community supports an open source effort, the result can out-innovate any commercial solution.

There are now a lot of pieces and parts available that are free, cheap, or low cost that companies can assemble into not only workable, but scalable offerings that can compete with many commercial offerings.

Beyond open source, commercial, and SaaS-cum-cloud offerings, companies have a credible choice in building their own enterprise software application. There are now a lot of pieces and parts available that are free, cheap, or low cost that companies can assemble into not only workable, but scalable offerings that can compete with many commercial offerings. In much the same way that companies leveraged Microsoft’s Visual Basic to build applications using the thousands of free or cheap widgets and controls built by the legions of developers, so too are we seeing a movement to free or cheap Service widgets that can enable remarkably complex and robust applications.

The future of commercial enterprise software applications

It is not clear where commercial enterprise software applications go from here. Surely, we don’t see companies tearing out their entrenched solutions any time soon, but likewise, we don’t see much reason for expansion in enterprise software sales either.

In some ways, enterprise software has become every bit the legacy they sought to replace in mainframe applications that still exist in abundance in the enterprise. Smart enterprise software vendors realize that they have to get out of the application business altogether and focus on selling composable service widgets. These firms, however, don’t want to innovate their way out of business. As such, they don’t want to just provide the trains to get you from place to place, but they want to own the tracks as well.

The question is: Is the cost of the proprietary runtime infrastructure you are getting with those widgets worth the cost?

In many ways, this idea of enterprise software-as-a-platform is really just a shell game. Instead of spending millions on a specific application, you’re instead spending millions on an infrastructure that comes with some pre-configured widgets. The question is: Is the cost of the proprietary runtime infrastructure you are getting with those widgets worth the cost? Have you lost some measure of loose coupling in exchange for a “single throat to choke?”

Much of the enterprise software market is heading in direct collision course with middleware vendors who never wanted to enter the application market. As enterprise software vendors start seeing their runtime platform as the defensible position, they will start conflicting with EA strategies that seek to remove their single-vendor dependence.

We see this as the area of greatest tension in the next few years. Do you want to be in control of your infrastructure and have choice, or do you want to resign your infrastructure to the control of a single vendor, who might be one merger or stumble away from non-existence or irrelevance?

The ZapThink take

We hope to use this ZapFlash to call out the ridiculousness of multi-million dollar “applications” that cost millions more to customize to do a fraction of what you need. In an era of continued financial pressure, the last thing companies should do is invest more in technology conceived of in the 1970s, matured in the 1990s, and incrementally made worse since then.

The reliance on single-vendor mammoth enterprise software packages is not helping, but rather hurting the movement to loosely coupled, agile, composition-centric heterogeneous SOA. Now is the time for companies to pull up the stakes and reconsider their huge enterprise software investments in favor of the sort of real enterprise architecture that cares little about buying things en masse and customizing those solutions — but instead to building, composing, and reusing what you need iteratively to respond to continuous change.

As if to prove a point, SAP stock recently slid almost 10% on missed earnings. Some may blame the overall state of the economy, but we point to the writing on the wall: All the enterprise software that could be sold has been sold, and the reasons for buying or implementing new licenses are few and far between. Invest in enterprise architecture over enterprise software, services over customizations, and clouds over costly and unpredictable infrastructure — and you’ll be better off.

This guest post comes courtesy of Ronald Schmelzer, senior analyst at ZapThink.

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October 25th, 2009

Application transformation case study targets enterprise bottom line with eye-popping ROI

Posted by Dana Gardner @ 10:44 am

Categories: Application Lifecycle Management, Cloud computing, Developer Tools, Enterprise Java, Government, HP, Hardware Infrastructure, Home, IBM, IT Management, IT Service Management, ITIL, Java, Linux, Open Source, Oracle, Podcasts, SOA, SOA Governance, SOA architect, SaaS, Software Development, Software Infrastructure, System Z, VMware, Virtualization, database, datacenters, governance, mainframe, management

Tags: Legacy Application, Transformation, ROI, End-user Productivity, Podcasts, Roi/Tco, Strategy, Internet, Finance, Managerial Accounting

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

This podcast is the first in the series of three to examine Application Transformation: Getting to the Bottom Line. Through a case study, we’ll discuss the rationale and likely returns of assessing the true role and character of legacy applications, and then assess the true paybacks from modernization.

The ongoing impact of the reset economy is putting more emphasis on lean IT — of identifying and eliminating waste across the data-center landscape. The top candidates, on several levels, are the silo-architected legacy applications and the aging IT systems that support them.

Using our case study, we’ll also uncover a number of proven strategies on how to innovatively architect legacy applications for transformation and for improved technical, economic, and productivity outcomes. The podcasts coincidentally run in support of HP virtual conferences on the same subjects:

Register here to attend the Asia Pacific event on Nov. 3. Register here to attend the EMEA event on Nov. 4. Register here to attend the Americas event on Nov. 5.

Here to start us off on our series on the how and why of transforming legacy enterprise applications are Paul Evans, worldwide marketing lead on Applications Transformation at HP, and Luc Vogeleer, CTO for Application Modernization Practice in HP Enterprise Services. The discussion is moderated be me, Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Evans: When the economic situation hit really hard, we definitely saw customers retreat, and basically say, “We don’t know what to do now. Some of us have never been in this position before in a recessionary environment, seeing IT budgets reduce considerably.”

That wasn’t surprising. … It was obvious that people would retrench and then scratch their heads and say, “Now what do we do?”

Now we’re seeing a different dynamic, … something like a two-fold increase in what you might call “customer interest” [in applications transformation]. The number of opportunities we’re seeing as a company has doubled over the last six or nine months.

If you ask any CIO or IT head, “Is application transformation something you want to do,” the answer is, “No, not really.” It’s like tidying your garage at home. You know you should do it, but you don’t really want to do it. You know that you benefit, but you still don’t want to do it.

This has moved from being something that maybe I should do to something that I have to do, because there are two real forces here. One is the force that says, “If I don’t continue to innovate and differentiate, I go out of business, because my competitors are doing that.” If I believe the economy doesn’t allow me to stand still, then I’ve got it wrong. So, I have to continue to move forward.

Secondly, I have to reduce the amount of money I spend on my innovation, but at the same time I need a bigger payback. I’ve got to reduce the cost of IT. Now, with 80 percent of my budget being dedicated to maintenance, that doesn’t move my business forward. So, the strategic goal is, I want to flip the ratio.

… Today, we’ll hear about a case study — with the Italian Ministry of Instruction, University and Research (MIUR). This customer received an ROI in 18 months. In 18 months, the savings they had made — and this runs into millions of dollars — had been paid for. Their new system, in under 18 months, paid for itself. After that, it was pure money to the bottom-line.

… Our job is to minimize that risk by exposing them to customers who have done it before. They can view those best-case scenarios and understand what to do and what not to do.

Vogeleer: We take a very holistic approach and look at the entire portfolio of applications from a customer. Then, from that application portfolio — depending on the usage of the application, the business criticality of the application, as well as the frequency of changes that this application requires — we deploy different strategies for each application.

We not only focus on one approach of completely re-writing or re-platforming the application or replacing the application with a package, but we go for a combination of all those elements. By doing a complete portfolio assessment, as a first step into the customer legacy application landscape, we’re able to bring out a complete road map to conduct this transformation.

We first execute applications that bring a quick ROI. We first execute quick wins and the ROI and the benefits from those quick wins are immediately reinvested for continuing the transformation. So, transformation is not just one project. It’s not just one shot. It’s a continuous program over time, where all the legacy applications are progressively migrated into a more agile and cost-effective platform.

The Italian Ministry of Instruction, University and Research (MIUR), is the customer we’re going to cover with this case, is a large governmental organization and their overall budget is €55 billion.

This Italian public education sector serves 8 million students from 40,000 schools, and the schools are located across the country in more than 10,000 locations, with each of those locations connected to the information system provided by the ministry.

Very large employer

The ministry is, in fact, one of the largest employers in the world, with over one million employees. Its system manages both permanent and temporary employees, like teachers and substitutes, and the administrative employees. It also supports the ministry users, about 7,000 or 8,000 school employees. It’s a very large employer with a large number of users connected across the country.

Why do they need to modernize their environment? In fact, their system was written in the early 1980s on IBM mainframe architecture. In early 2000, there was a substantial change in Italian legislation, which was called so-called a Devolution Law. The Devolution Law was about more decentralization of their process to school level and also to move the administration processes from the central ministry level into the regions, and there are 20 different regions in Italy.

This change implied a completely different process workflow within their information systems. To fulfill the changes, the legacy approach was very time-consuming and inappropriate. A number of strong application have been developed incrementally to fulfill those new organizational requirements, but very quickly this became completely unmanageable and inflexible. The aging legacy systems were expected to be changed quickly.

In addition to the element of agility to change application to meet the new legislation requirement, the cost in that context went completely out of control. So, the simple, most important objective of the modernization was to design and implement a new architecture that could reduce cost and provide a more flexible and agile infrastructure.

The first step we took was to develop a modernization road map that took into account the organizational change requirements, using our service offering, which is the application portfolio assessment.

From the standard engagement that we can offer to a customer, we did an analysis of the complete set of applications and associated data assets from multiple perspectives. We looked at it from a financial perspective, a business perspective, functionality and the technical perspective.

From those different dimensions, we could make the right decision on each application. The application portfolio assessment ensured that the client’s business context and strategic drivers were understood, before commencing a modernization strategy for a given application in the portfolio.

A business case was developed for modernizing each application, an approach that was personalized for each group of applications and was appropriate to the current situation.

… This assessment phase took about three months with the seven people. From there, we did a first transformation pilot, with a small staff of people in three months.

After the pilot, we went into the complete transform and user-acceptance test, and after an additional year, 90 percent of the transformation was completed. In the transformation, we had about 3,500 batch processes. We had the transformation. We had re-architecting of 7,500 programs. And, all the screens were also transformed. But, that was a larger effort with a team of about 50 people over one year.

… We tried to use automated conversion, especially for non-critical programs, where they’re not frequently changed. That represented 60 percent of the code. This code could be then immediately transferred by removing only the barriers in the code that prevented it from compiling.

All barriers removed

We had also frequently updated programs, where all barriers were removed and code was completely cleaned in the conversion. Then, in critical programs, especially, the conversion effort was bigger than the rewrite effort. Thirty percent of the programs were completely rewritten.

The applications are now accessed through a more efficient web-based user interface, which replaces the green screen and provides improved navigation and better overall system performance, including improved user productivity.

End-user productivity is doubled in terms of the daily operation of some business processes. Also, the overall application portfolio has been greatly simplified by this approach. The number of function points that we’re managing has decreased by 33 percent.

From a financial perspective, there are also very significant results. Hardware and software license and maintenance cost savings were about €400,000 in the first year, €2 million in the second year, and are projected to be €3.4 million this year. This represents a savings of 36 percent of the overall project.

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

October 20th, 2009

SOA user survey defines latest ESB trends, middleware use patterns

Posted by Dana Gardner @ 10:30 am

Categories: .NET, Agile Development, Apache, Cloud computing, Developer Tools, Enterprise 2.0, Enterprise Java, IT Management, IT Service Management, ITIL, Open Source, SOA, SOA Governance, SOA architect, Software Development, Software Infrastructure, content delivery network, datacenters, governance, management

Tags: Enterprise Service Bus, SOA, Survey, SOA User Survey, Service-Oriented Architecture (SOA), Middleware, Web Services, Enterprise Software, Software, Dana Gardner

Take the BriefingsDirect middleware/ESB survey now.

Forgive my harping on this, but I keep hearing about how powerful social media is for gathering insights from the IT communities and users. Yet I rarely see actual market research conducted via the social media milieu.

So now’s the time to fully test the process. I’m hoping that you users and specifiers of enterprise software middleware, SOA infrastructure, integration middleware, and enterprise service buses (ESBs) will take 5 minutes and fill out my BriefingsDirect survey. We’ll share the results via this blog in a few weeks.

We’re seeking to uncover the latest trends in actual usage and perceptions around these SOA technologies — both open source and commercial.

How middleware products — like ESBs — are used is not supposed to change rapidly. Enterprises typically choose and deploy integration software infrastructure slowly and deliberately, and they don’t often change course without good reason.

But the last few years have proven an exception. Middleware products and brands have shifted more rapidly than ever before. Vendors have consolidated, product lines have merged. Users have had to grapple with new and dynamic requirements.

Open source offerings have swiftly matured, and in many cases advanced capabilities beyond the commercial space. Interest in SOA is now shared with anticipation of cloud computing approaches and needs.

So how do enterprise IT leaders and planners view the middleware and SOA landscape after a period of adjustment — including the roughest global recession in more than 60 years?

This brief survey, distributed by BriefingsDirect for Interarbor Solutions, is designed to gauge the latest perceptions and patterns of use and updated requirements for middleware products and capabilities. Please take a few moments and share your preferences on enterprise middleware software. Thank you.

Take the BriefingsDirect middleware/ESB survey now.

October 16th, 2009

What's on your watch list? Forrester identifies 15 key technologies for enterprise architects

Posted by Dana Gardner @ 8:29 am

Categories: Agile Development, Amazon, Apple, Application Lifecycle Management, BI, Cisco, Cloud computing, Enterprise 2.0, Enterprise Java, Google, HP, IT Management, IT Service Management, ITIL, Microsoft, Open Source, Oracle, SOA, SOA Governance, SOA architect, SaaS, Security, Software Development, Software Infrastructure, VMware, Virtualization, Web Services, Web Technology, business intelligence, convergence, datacenters, governance, iPhone, management

Tags: Forrester Research Inc., Operational Planning, Pricing, Business Intelligence, Tools & Techniques, Strategy, Business Operations, Marketing, Enterprise Software, Software

Riding the right — or wrong — technology wave can help — or really, really hurt — your business. Moving at the right time can be the critical factor between the two outcomes.

Yet new technologies come down the pike at alarming speed. Deciding which will fizzle and which will sizzle — and when — can be a daunting and ongoing task. What’s an enterprise architect to do?

Forrester Research has tried to sort things out with a new report, “The Top 15 Technology Trends EA Should Watch.” And, if even limiting the selection to 15 sounds like a lot to keep your eye on, Forrester has grouped them into five major “themes,” and has ranked the technologies by their impact, newness and complexity.

Calling “impact” the most important criterion, the report says this considers whether the technology will deliver new business capabilities or allow IT to improve business performance.

“Newness” comes in second because it’s likely that enterprises will have to gear up to learn new processes and the processes themselves are prone to rapid evolution. “Complexity” places other demands on the business, requiring more time to learn operations that are more complex than others.

The five themes identified by Forrester, along with their associated technologies, are:

• Social computing in and around the enterprise
  • Collaboration platforms become people-centric
  • Customer community platforms integrate with business apps
  • Telepresence gains widespread use
• Process-centric data and intelligence
  • Business intelligence goes real time
  • Master data management matures
  • Data quality services become real-time
• Restructured IT services platforms
  • SaaS will be ubiquitous for packaged apps
  • Cloud-based platforms that become standard infrastructure and platform as a service
  • Client virtualization is ubiquitous
• Agile and fit-to-purpose applications
  • Business rules processing moves to the mainstream
  • BPM will be Web 2.0-enabled
  • Policy-based SOA becomes predominant
  • Security will be data- and content-based
• Mobile as the new desktop
  • Apps and business processes go mobile
  • Mobile networks and devices gain more power

The technologies range from real-time business intelligence (BI) with a very high impact, high newness and high complexity to data- and content-based security, which scored a medium in all three categories. I guess that keep my friend Jim Koblielus busy for some time.

Forrester limited the report to a three-year horizon for two reasons. First, it represents the planning horizon for most firms and, second, any technology that won’t have an effect in less than three years may be interesting, but it’s not actionable.

The report also says that we’re entering a new phase of technology innovation. This analysis is based on Forrester’s finding that technology change goes through two waves. The first involves innovation and growth. This features a rapid evolution of the technology and rapid uptake by businesses. The second phase is refinement and redesign, in which technologies are only incrementally improved.

I hear a lot these day about “inflection points” in the IT market. I hear folks point to the hockey stick growth effect coming for netbooks/thin clients/desktop virtualization/Windows 7. I like to add the smartphones and Android-o-hones to that category too.

And even if the cloud is a slow burn, rather than hockey stick, the importance of business processes supported by services supported by all the old and new suspects is huge. I call the ability to refine and adapt business processes as the big productivity maker of the next decade — supported by IT as services.

Perhaps the new Moore’s Law is less about systems, and more about what people do with the services those systems enable. What do you think?

Incidentally, the full report is available for download from Forrester.

BriefingsDirect contributor Carlton Vogt provided editorial assistance and research on this post.

October 15th, 2009

Making the leap from virtualization to cloud computing: A roadmap and guide

Posted by Dana Gardner @ 10:48 am

Categories: Amazon, Cloud computing, Google, HP, Hardware Infrastructure, IBM, IT Management, IT Service Management, ITIL, Open Source, Podcasts, SOA, SOA Governance, SOA architect, SaaS, Silicon Valley, Software Development, Software Infrastructure, VMware, Virtualization, Web Services, business intelligence, datacenters, governance, management

Tags: Hewlett-Packard Co., Information Technology, Server, Cloud Computing, Virtualization, Storage Management, Utility Computing, Hardware, Storage, Dana Gardner

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

Get a free copy of Cloud for Dummies courtesy of Hewlett-Packard at www.hp.com/go/cloudpodcastoffer.

This latest BriefingsDirect podcast discussion focuses on enterprise IT architects making a leap from virtualization to cloud computing.

How should IT leaders scale virtualized environments so that they can be managed for elasticity payoffs? What should be taking place in virtualized environments now to get them ready for cloud efficiencies and capabilities later?

And how do service-oriented architecture (SOA), governance, and adaptive infrastructure approaches relate to this progression, or road map, from tactical virtualization to powerful and strategic cloud computing outcomes?

Here to help hammer out a typical road map for how to move from virtualization-enabled server, storage, and network utilization benefits to the larger class of cloud computing agility and efficiency values, we are joined by two thought leaders from HP: Rebecca Lawson, director of Worldwide Cloud Marketing, and Bob Meyer, the worldwide virtualization lead in HP’s Technology Solutions Group.

The discussion is moderated by me, BriefingsDirect’s Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Lawson: We’re seeing an acceleration of our customers to start to get their infrastructure in order — to get it virtualized, standardized, and automated — because they want to make the leap from being a technology provider to a service provider.

Many of our customers who are running an IT shop, whether it’s enterprise or small and mid-size, are starting to realize — thanks to the cloud — that they have to be service-centric in their orientation. That means they ultimately have to get to a place, where not only is their infrastructure available as a service, but all of their applications and their offerings are going in that direction as well.

Meyer: A couple of years ago, people were talking about virtualization. The focus was all on the server and hypervisor. The real positive trend now is to focus on the service.

How do I take this infrastructure, my servers, my storage, and my network and make sure that the plumbing is right and the connectivity is right between them to be agile enough to support the business? How do I manage this in a holistic manner, so that I don’t have multiple management tools or disconnected pools of data.

What’s really positive is that the top-down service perspective that says virtualization is great, but the end point is the service. On top of that virtualization, what do I need to do to take it to the next level? And, for many people now, that next level they are looking at is the cloud, because that is the services perspective.

Lawson: A lot of people are trying to make a link between virtualization and cloud computing. We think there is a link, but it’s not just a straight-line progression. In cloud computing, everything is delivered as a service.

What’s really useful about cloud services like those is that they’re not necessarily used inside the enterprise, but what they are doing is they are causing IT to focus on the end-game. Very specifically, what are those business services that we need to have and that business owners need to use in order to move our company forward?

… We’re learning lesson from the big cloud service providers on how to standardize, where to standardize, how to automate, how to virtualize, and we’re using the lessons that we are seeing from the big-cloud service providers and apply them back into the enterprise IT shop.

Meyer: The cloud discussion is important, because it looks at the way that you consume and deliver services. It really does have broader implications to say that now as a service provider to the business, you have options.

Your option is not just that you buy all the infrastructure components. You plumb them together, monitor them, manage them, make sure they’re compliant, and deliver them. It really opens up the conversation to ask, “What’s the most efficient way to deliver the mix of services I have?”

The end result really is that there will be some that you build, manage, and manage the compliance on your own in the traditional way. Some of them might be outsourced to manage service providers. For some, you might source the infrastructure or the applications from the third-party provider.

… Then you start to understand the implications of shifting workloads, not losing specialty tools, and really getting to a point when you standardize. You could start to get to the point of managing a single infrastructure, understanding the costs better, and really be more effective at servicing and provisioning that. Standardizing has to happen in order to get there.

I’m not just talking about the server and hypervisor itself. You have to really look across your infrastructure, at the network, server, and storage, and get to that level of convergence. How do I get those things to work together when I have to provision a new service or provide a service?

… You’re looking to source something for a service or you’re looking to pull assets together. Everybody will have some combination of physical and virtual infrastructure. So how do I take action when I need a compute resource, be it physical or virtual?

Automation makes the transition possible

How do I know what’s available? How do I know how to provision it? How do I know to de-provision it? How do I see it if that’s in compliance?” All those things really only come through automation. From a bottom-up perspective, we look at the converged infrastructure, the automation capabilities, and the ability to standardize across that.

… When it’s gone beyond a server and hypervisor approach, and they’ve looked at the bigger picture, where the costs are actually being saved and pushed — then the light goes on, and they say, “Okay, there is more to it than just virtualization and the server.” You really do have to look, from an infrastructure perspective, at how you manage it, using holistic management, and how you connect them together.

Hopefully, at HP we can help make that progression faster, because we’ve worked with so many companies through this progression. But really it takes moving beyond the hypervisor approach, understanding what it needs to do in the context of the service, and then looking at the bigger picture.

Lawson: … Most IT organizations want to be aware and help govern what actually gets consumed. That’s hard to do, because it’s easy to have rogue activity going on. It’s easy to have app developers, testers, or even business people go out and just start using cloud services.

… [But] if IT is willing and able to step back and provide a catalog of all services that the business can access, that might include some cloud services. We try to encourage our customers to use the tools, techniques, and the approach that says, “Let’s embrace all these different kinds of services, understand what they are, and help our lines of business and our constituents make the right choice, so that they’re using services that are secure, governed, that perform to their expectations, and that don’t get them into trouble.”

We encourage our customers to start immediately working on a service catalog. Because when you have a service catalog, you’re forced into the right cultural and political behaviors that allow IT and lines of business to kind of sync up, because you sync up around what’s in the catalog.

There’s no excuse not to do that these days, because the tools and technologies exist to allow you to do that. At HP, we’ve been doing that for many years. It’s not really brand new stuff. It’s new to a lot of organization that haven’t used it.

You can start to control, manage, and measure across that hybrid ecosystem with standard IT management tools. … The organizing principle is the technology-enabled service. Then you can be consistent. You can say, “This external email service that we’re using is really performing well. Maybe we should look at some other productivity services from that same vendor.” You can start to make good decisions based on quantitative information about performance availability and security.

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

Get a free copy of Cloud for Dummies courtesy of Hewlett-Packard at www.hp.com/go/cloudpodcastoffer.

October 15th, 2009

Oracle's Fusion Apps finally come out from behind the OpenWorld curtain

Posted by Dana Gardner @ 9:13 am

Categories: Developer Tools, Enterprise Java, HP, Hardware Infrastructure, IBM, Linux, Open Source, Oracle, SOA, SOA Governance, SOA architect, Silicon Valley, Software Development, Software Infrastructure, Sybase, VMware, Virtualization, business intelligence, database, governance, management

Tags: Oracle Corp., Tony, Fusion Apps, Ellison, Service-Oriented Architecture (SOA), Social Networking, Web Services, Middleware, Enterprise Software, Software

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

By Tony Baer

Like almost every attendee at just-concluded Oracle OpenWorld, the suspense on when Oracle would finally lift the wraps on Fusion Apps was palpable. Staying cool with minimizing our carbon footprint, we weren’t physically at Moscone, but instead watching the webcasts and monitoring the Twitter stream from our home office.

The level of anticipation over Fusion apps was palpable. But it was hardly suspense as it seemed that a good cross-section of Twitterati were either analysts, reference customers, consultants or other business partners who have had their NDA sneak peaks (we had ours back in June), but had to keep our lips sealed until last night.

There was also plenty of impatience for Oracle to finally get on with a message that was being drowned out by its sudden obsession with hardware. Ellison spent most of his keynote time pumping up its Exadata cache memory database storage appliance and issuing a $10 million challenge to IBM that it can’t match Oracle’s database benchmarks on Sun.

Yup, if the Sun acquisition goes trough, Oracle’s no longer strictly a software company, and although the Twiterati counted its share of big iron groupies, the predominant mood was that hardware was a distraction.

“This conference has been hardware heavy from the start. Odd for a software conference,” tweeted Forrester analyst Paul Hamerman. “90 minutes into the keynote, nothing yet on Fusion apps.”

“Larry clearly stalling with all this compression mumbo jumbo,” “Larry please hurry up and tell the world about Fusion Apps, fed up of saying YES it does exist to your skeptics,” and so on read the Twitter stream.

There was fear that Oracle would simply tease us in a manner akin to Jon Stewart’s we’ll have to leave it there dig at CNN: “I am afraid that Larry soon will tell that as time has run out he will tell about Fusion applications in next OOW.” A 20-minute rousing speech from Calif. Gov. Arnold Schwarzenegger served as a welcome relief from Ellison’s newly found affection for big iron toys.

Ellison came back after the Governator pleaded with the audience to stick around awhile and drop some change around California as the state is broke. The break gave him the chance to drift over to Oracle Enterprise Manager, which at least got the conversation off hardware.

Ellison described some evolutionary enhancements where Oracle can track your configurations trough Enterprise Manager and automatically manage patching. As we’ve noted previously, Oracle has compelling solutions for all-Oracle environments, among them being a declarative framework for developing apps and specifying what to monitor and auto-patch.

The main topic

But the spiel on Enterprise Manager provided a useful back door to the main topic, as Ellison showed how it could automate management of the next generation of Oracle apps. Ellison got the audience’s attention with the words, “We are code complete for all of this.”

Well almost everything. Oracle has completed work on all modules except manufacturing.

Ellison then gave a demo that was quite similar to one that we saw under NDA back in the summer. While ERP emerged with and was designed for client/server architectures, Fusion has emerged with a full Java EE and SOA architecture; it is built around Oracle Fusion middleware 11g and uses Oracle BPEL Process Manager to run processes as orchestrations of processes exposed from the Fusion Apps or other legacy applications. That makes the architecture of Fusion Apps clean and flexible.

But at this point, Oracle is not being any more specific about rollout other than to say it would happen sometime next year.

It uses SOA to loosely couple, rather than tightly integrate with other Fusion processes or processes exposed by existing back end applications, which should make Fusion apps more pliant and less prone to outage.

That allows workflows in Fusion to be dynamic and flexible. If an order in the supply chain is held up, the process can be dynamically changed without bringing down order fulfillment processes for orders that are working correctly. It also allows Oracle to embed business intelligence throughout the suite, so that you don’t have to leave the application to perform analytics.

For instance, in an HR process used for locating the right person for a job, you can dig up an employee’s salary history, and instead switching to a separate dashboard, you can instead retrieve and display relevant pieces of information necessary to see comparisons and make a decision.

Fusion’s SOA architecture also allows Oracle to abstract security and access control by relying on its separate, Fusion middleware-based Identity Manager product. The same goes with communications, where instant messaging systems can be pulled in (we didn’t see any integration with Wikis or other Web 2.0 social computing mechanisms, but we assume that they can be integrated as services.). It also applies to user interfaces, where you can use different rich internet clients by taking advantage of Oracle’s ADF framework in JDeveloper.

Oracle concedes the obvious: Outside of the mid-market, there is no greenfield market for ERP, and therefore, Fusion Apps are intended to supplement what you already have, not necessarily replace it.

That includes Oracle’s existing applications, for which it currently promises at least a decade of more support. But at this point, Oracle is not being any more specific about rollouts other than to say it would happen “sometime next year.”

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

October 13th, 2009

Engine Yard draws funding as it ushers more developers onto the Ruby services train

Posted by Dana Gardner @ 10:55 am

Categories: .NET, Agile Development, Amazon, Apache, Developer Tools, Eclipse, Enterprise Java, Google, JBoss, Java, Microsoft, Open Source, SaaS, Software Development, Software Infrastructure, Testing Tools, Virtualization, Web Services, Web Technology

Tags: Developer, Java, Ruby, Tony, Engine Yard, Ruby On Rails, Scripting Languages, Software/Web Development, Web Development, Dana Gardner

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

Developers are a mighty stubborn bunch. Unlike the rest of the enterprise IT market, where a convergence of forces have favored a nobody gets fired for buying IBM, Oracle, SAP, or Microsoft, developers have no such herding instincts. Developers do not always get with the [enterprise] program.

For evidence, recall what happened the last time that the development market faced such consolidation. In the wake of web 1.0, the formerly fragmented development market – which used to revolve around dozens of languages and frameworks – congealed down to Java vs .NET camps. That was so 2002, however, as in the interim, developers have gravitated toward choosing their own alternatives.

The result was an explosion of what former Burton Group analyst Richard Monson Haefel termed the Rebel Frameworks (that was back in 2004), and more recently in the resurgence of scripting languages. In essence, developers didn’t take the future as inevitable, and for good reason: the so-called future of development circa 2002 was built on the assumption that everyone would gravitate to enterprise-class frameworks.

Java and .NET were engineered on the assumption that the future of enterprise and Internet computing would be based on complex, multitier distributed transactional systems. It was accompanied by a growing risk-aversion: Buy only from vendors that you expect will remain viable. Not surprisingly, enterprise computing procurements narrowed to IOSM (IBM, Oracle, SAP, Microsoft).

Different dynamic

But the developer community lives to a different dynamic. In an age of open source, expertise for development frameworks and languages get dispersed; vendor viability becomes less of a concern. More importantly, developers only want to get the job done, and anyway, the tasks that they perform typically fall under the enterprise radar.

Whereas a CFO may be concerned over the approach an ERP system may employ to managing financial system or supply chain processes, they are not going to care about development languages or frameworks.

The result is that developers remain independent minded, and that independence accounts for the popularity of alternatives to enterprise development platforms, with Ruby on Rails being the latest to enter the spotlight.

In one sense, Ruby’s path to prominence parallels Java in that the language was originally invented for another purpose. But there the similarity ends as, in Ruby’s case, no corporate entity really owned it. Ruby is a simple scripting language that became a viable alternative for web developers once David Heinemeier Hansson invented the Rails framework. The good news, Rails makes it easy to use Ruby to write relatively simple web database applications. Examples of Rails’ simplicity include:

• Eliminating the need to write configuration files for mapping requests to actions
• Avoiding multi-threading issues because Rails will not pool controller (logic) instances
• Dispensing with object-relational mapping files; instead, Rails automates much of this and tends to use very simplified naming conventions.

The bad news is that there are performance limitations and difficulties in handling more complex distributed transaction applications. But the good news is that when it comes to web apps, the vast majority are quite rudimentary, thank you.

The result has propelled a wave of alternative stacks, such as LAMP (Linux-Apache web server-MySQL-and either PHP, Python, or Perl) or, more recently, Ruby on Rails. At the other end of the spectrum, the Spring Framework takes the same principle – simplification – to ease the pain of writing complex Java EE applications – but that’s not the segment addressed by PHP, MySQL, or Ruby on Rails. It reinforces the fact that, unlike the rest of the enterprise software market, developers don’t necessarily take orders from up top. Nobody told them to implement these alternative frameworks and languages.

Although hardly the only cloud provider out there that supports RoR development, Engine Yard’s business is currently on a 2x growth streak. Funding stages the company either for IPO or buy out.

The latest reminder of the strength of grassroots markets in the developer sector is Engine Yard’s securing of $19 million in C funding last week. The backing comes from some of the same players that also funded SpringSource (which was recently acquired by VMware). Some of the backing also comes from Amazon, whose Jeff Bezos owns outright 37Signals, the Chicago-based provider of project management software that employs Heinemeier Hansson. For the record, there is plenty of RoR presence in Amazon Web Services.

Engine Yard is an Infrastructure-as-a-Service (IaaS) provider that has optimized the RoR stack for runtime. Although hardly the only cloud provider out there that supports RoR development, Engine Yard’s business is currently on a 2x growth streak. Funding stages the company either for IPO or buy out.

At this point the script sounds similar to SpringSource whose new owner, VMware, is launching a development and runtime cloud that will eventually become VMware’s Java counterpart to Microsoft Azure.

It’s tempting to wonder whether a similar path will become reality for Engine Yard. The answer is that the question itself is too narrow. It is inevitable that a development and runtime cloud paired with enterprise plumbing (e.g., OS, hypervisor) will materialize for Ruby on Rails. With its $19 million funding, Engine Yard has the chance to gain critical mass mindshare in the RoR community – but don’t rule out rivals like Joyent yet.

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

October 7th, 2009

Survey says slow, kludgy business processes hamper competitiveness

Posted by Dana Gardner @ 11:07 am

Categories: BI, Enterprise 2.0, Microsoft, Open Source, Progress Software, SOA, SOA Governance, SOA architect, Software Development, Software Infrastructure, Web Technology, business intelligence, datacenters, governance

Tags: Business Process, Progress Software Corp., Survey, Operational Planning, Podcasts, Tools & Techniques, Business Operations, Internet, Management, Dana Gardner

Corporations, are your business processes slowing you down? If so, you are in good company. Seventy-two percent of organizations say their business processes take too long and need to be streamlined.

So says a new independent survey conducted by Vanson Bourne for Progress Software.

The survey had a single goal, to determine the tools and processes large companies have put in place to support operational responsiveness and the ability to make “real-time” decisions. Vanson Bourne surveyed 400 large companies in the United States and Western Europe to develop its findings.

The bottom line: An overwhelming majority of businesses still feel they have a ways to go before they are equipped to respond to market or customer changes quickly enough to compete well in a global marketplace.

“The quest for faster operational responsiveness is becoming more urgent now that external factors such as social networking have boosted speed of response,” says Dr. Giles Nelson, senior director of strategy at the Apama division of Progress Software. “If organizations can’t keep up with the pace of customer feedback, they will find themselves exposed to competitive threats.”

I recently reached a similar conclusion in a podcast discussion with IT analyst Howard Dresner, with an emphasis on business intelligence (BI) in the stew of real-time requirements. Other firms I’ve worked with, such as Active Endpoints and BP Logix, call the value “nimble” or the ability to quick orchestrate and adapt processes.

[UPDATE: TIBCO today delivered its iProcess Spotfire product for real-time BI aligned to business process management.]

Sure is a lot of emphasis on real-time data, analysis and process reactivity nowadays! No process like the present, I always say. [Disclosure: TIBCO and Progress are sponsors of BriefingsDirect podcasts.]

On average, 22 percent of U.S. companies surveyed by Vanson Bourne admitted that, by the time they noticed it, they had missed the opportunity to react competitively to a change or trend affecting one of their processes. A lack of information seems to be fueling the problem. More than half of companies identified information gaps in decision-making as a cause.

The good news is that surveyed companies have solutions to the information gap in mind, namely access to real-time data. Ninety-four percent of companies cited the importance of real-time data – and the majority of those companies are making moves to gather it. Some 82 percent are planning to invest in real-time technology by mid-2010 in an effort to speed up internal processes, they said.

As Nelson at Apama sees it, bad news now travels very quickly – and companies need to make sure they’re not stuck in the slow lane when it comes to responding to customer issues.

“The overwhelming majority of people we spoke to recognize the importance of responding quickly to customers and to be much more responsive to changes in market conditions. Unfortunately, in most cases at present the process and information reporting infrastructure can’t match that vision,” Nelson says. “Business Event Processing is becoming the way of dealing with this decision-making lag.”

I’d add a bit more. What we’re actually seeing is that corporations now see that they must be able to analyze and act in Internet time. Many of us webby and social-media types have known that for some time, but the urgency has now hit the mainstream bricks (not just the clicks).

Furthermore, the payoffs from becoming a real-time-oriented organization will go far beyond knowing what’s being said about you on Twitter. As the economy has shown in the last year, those who can move fast and move well will survive and thrive. The others will find themselves in a downward spiral.

BriefingsDirect contributor Jennifer LeClaire provided editorial assistance and research on this post.