November 16th, 2009

BriefingsDirect analysts discuss business commerce clouds: Wave of the future or old wine in a new bottle?

Posted by Dana Gardner @ 9:30 am

Categories: Amazon, Cloud computing, Enterprise 2.0, Google, Government, HP, IBM, Microsoft, Oracle, Podcasts, SAP, SOA Governance, SaaS, Security, Software Development, Software Infrastructure, Web Services, convergence, governance, management

Tags: Business Process, Supply Chain, Network, Wine, Cloud, Business Commerce Cloud, Age-old, RollStream, Operational Planning, EDI

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. View a full transcript, or download a copy. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

Welcome to the latest BriefingsDirect Analyst Insights Edition, Vol. 46. Our topic for this episode of BriefingsDirect Analyst Insights Edition centers on “business commerce clouds.” As the general notion of cloud computing continues to permeate the collective IT imagination, an offshoot vision holds that multiple business-to-business (B2B) players could use the cloud approach to build extended business process ecosystems.

It’s sort of like a marketplace in the cloud on steroids, on someone else’s servers, perhaps to engage on someone’s business objectives, and maybe even satisfy some customers along the way. It’s really a way to make fluid markets adapt at Internet speed, at low cost, to business requirements, as they come and go.

I, for one, can imagine a dynamic, elastic, self-defining, and self-directing business-services environment that wells up around the needs of a business group or niche, and then subsides when lack of demand dictates. Here’s an early example of how it works, in this case for food recall.

The concept of this business commerce cloud was solidified for me just a few weeks ago, when I spoke to Tim Minahan, chief marketing officer at Ariba. I’ve invited Tim to join us to delve into the concept, and the possible attractions, of business commerce clouds. We’re also joined by this episode’s IT industry analyst guests: Tony Baer, senior analyst at Ovum; Brad Shimmin, principal analyst at Current Analysis; Jason Bloomberg, managing partner at ZapThink; JP Morgenthal, independent analyst and IT consultant, and Sandy Kemsley, independent IT analyst and architect. The discussion is moderated by me, Dana Gardner, principal analyst at Interarbor Solutions.

This periodic discussion and dissection of IT infrastructure related news and events, with a panel of industry analysts and guests, comes to you with the help of our charter sponsor, Active Endpoints, maker of the ActiveVOS, visual orchestration system, and through the support of TIBCO Software.

Here are some excerpts:

Minahan: When we talk about business commerce clouds, what we’re talking about is leveraging the cloud architecture to go to the next level. When folks traditionally think of the cloud or technology, they think of managing their own business processes. But, as we know, if we are going to buy, sell, or manage cash, you need to do that with at least one, if not more, third parties.

The business commerce cloud leverages cloud computing to deliver three things. It delivers the business process application itself as a cloud-based or a software-as-a-service (SaaS)-based service. It delivers a community of enabled trading partners that can quickly be discovered, connected to, and enable collaboration with them.

And, the third part is around capabilities –the ability to dial up or dial down, whether it be expertise, resources, or other predefined best practice business processes — all through the cloud.

… Along the way, what we [at Ariba] found was that we were connecting all these parties through a shared network that we call the Ariba Supplier Network. We realized we weren’t just creating value for the buyers, but we were creating value for the sellers.

They were pushing us to develop new ways for them to create new business processes on the shared infrastructure — things like supply chain financing, working capital management, and a simple way to discover each other and assess who their next trading partners may be.

… In the past year, companies have processed $120 billion worth of purchased transactions and invoices over this network. Now, they’re looking at new ways to find new trading partners — particularly as the incidence of business bankruptcies are up — as well as extend to new collaborations, whether it be sharing inventory or helping to manage their cash flow.

Baer: I think there are some very interesting possibilities, and in certain ways this is very much an evolutionary development that began with the introduction of EDI 40 or 45 years ago.

Actually, if you take a took at supply-chain practices among some of the more innovative sectors, especially consumer electronics, where you deal with an industry that’s very volatile both by technology and consumer taste, this whole idea of virtualizing the supply chain, where different partners take on greater and greater roles in enabling each other, is very much a direct follow on to all that.

Roughly 10 years ago, when we were going though the Internet 1.0 or the dot-com revolution, we started getting into these B2B online trading hubs with the idea that we could use the Internet to dynamically connect with business partners and discover them. Part of this really seemed to go against the trend of supply-chain practice over the previous 20 years, which was really more to consolidate on a known group of partners as opposed to spontaneously connecting with them.

Shimmin: … I look at this as an enabler, in a positive way. What the cloud does is allow what Tim was hinting at — with more spontaneity, self-assembly, and visibility into supply chains in particular — that you didn’t really get before with the kind of locked down approach we had with EDI.

That’s why I think you see so many of those pure-play EDI vendors like GXS, Sterling, SEEBURGER, Inovis, etc. not just opening up to the Internet, but opening up to some of the more cloudy standards like cXML and the like, and really doing a better job of behaving like we in the 2009-2010 realm expect a supply chain to behave, which is something that is much more open and much more visible.

Kemsley: … I think it has huge potential, but one of the issues that I see is that so many companies are afraid to start to open up, to use external services as part of their mission-critical businesses, even though there is no evidence that a cloud-based service is any less reliable than their internal services. It’s just that the failures that happen in the cloud are so much more publicized than their internal failures that there is this illusion that things in the cloud are not as stable.

There are also security concerns as well. I have been at a number of business process management (BPM) conferences in the last month, since this is conference season, and that is a recurring theme. Some of the BPM vendors are putting their products in the cloud so that you can run your external business processes purely in the cloud, and obviously connect to cloud-based services from those.

A lot of companies still have many, many problems with that from a security standpoint, even though there is no evidence that that’s any less secure than what they have internally. So, although I think there is a lot of potential there, there are still some significant cultural barriers to adopting this.

Minahan: … The cloud provider, because of the economies of scale they have, oftentimes provides better security and can invest more in security — partitioning, and the like — than many enterprises can deliver themselves. It’s not just security. It’s the other aspects of your architectural performance.

Bloomberg: … I am coming at it from a skeptic’s perspective. It doesn’t sound like there’s anything new here. … We’re using the word “cloud” now, and we were talking about “business webs.” I remember business webs were all the rage back when Ariba had their first generation of offerings, as well as Commerce One and some of the other players in that space.

Age-old challenges

The challenges then are still the challenges now. Companies don’t necessarily like doing business with other organizations that they don’t have established relationships with. The value proposition of the central marketplaces has been hammered out now. If you want to use one, they’re already out there and they’re already matured. If you don’t want to use one, putting the word “cloud” on it is not going to make it any more appealing.

Morgenthal: … Putting additional information in the cloud and making value out of that add some overall value to the cost of the information or the cost of running the system, so you can derive a few things. But, ultimately, the same problems that are needed to drive a community working together, doing business together, exchanging product through an exchange are still there.

… What’s being done through these environments is the exchange of money and goods. And, it’s the overhead related to doing that, that makes this complex. RollStream is another startup in the area that’s trying to make waves by simplifying the complexities around exchanging the partner agreements and doing the trading partner management using collaborative capabilities. Again, the real complexity is the business itself. It’s not even the business processes. The data is there.

… Technology is a means to an end. The end that’s got to get fixed here isn’t an app fix. It’s a community fix. It’s a “how business gets done” fix. Those processes are not automated. Those are human tasks.

Minahan: … As it applies to the cloud and the commerce cloud, what’s interesting here is the new services that can be available. It’s different. It’s not just about discovering new trading partners. It’s about creating efficiencies and more effective commerce processes with those trading partners.

I’ll give you a good example. I mentioned before about the Ariba Network with $111 billion worth of transactions and invoices being transferred over this every year for the past 10 years. That gives us a lot of intelligence that new companies are coming on board.

An example would be The Receivables Exchange. Traditionally sellers, if they wanted to get their cash fast, could factor the receivables at $0.25 on the dollar. This organization recognized the value of the information that was being transacted over this network and was able to create an entirely new service.

They were able to mitigate the risk, and provide supply chain financing at a much lower basis — somewhere between two to four percent by using the historical information on those trading relationships, as well as understanding the stability of the buyer.

What we’re seeing with our customers is that the real benefits of the cloud come in three areas: productivity, agility, and innovation.

Because folks are in a shared infrastructure here that can be continually introduced, new services can be dialed up and dialed down. It’s a lot different than a rigid EDI environment or just a discovery marketplace. … What we’re seeing with our customers is that the real benefits of the cloud come in three areas: productivity, agility, and innovation.

… When folks talk about cloud, they really think about the infrastructure, and what we are talking about here is a business service cloud.

Gartner calls it the business process utility, which ultimately is a form of technology-enabled business process outsourcing. It’s not just the technology. The technology or the workflow is delivered in the cloud or as a web-based service, so there is no software, hardware, etc. for the trading partners to integrate, to deploy or maintain. That was the bane of EDI private VANs.

The second component is the community. Already having an established community of trading partners who are actually conducting business and transactions is key. I agree with the statement that it comes down to the humans and the companies having established agreements. But the point is that it can be built upon a large trading network that already exists.

The last part, which I think is missing here, and that’s so interesting about the business commerce cloud, are the capabilities. It’s the ability for either the solution provider or other third parties to deliver skills, expertise, and resources into the cloud as well as a web-based service.

It’s also the information that can be garnered off the community to create new web-based services and capabilities that folks either don’t have within their organization or don’t have the ability or wherewithal to go out and develop and hire on their own. There is a big difference between cloud computing and these business service clouds that are growing.

Shimmin: … The fuller picture is to look at this as a combination of [Apple App Store] and the Amazon marketplace. That’s where I think you will see the most success with these commerce clouds — a very specific community of like-minded suppliers and purchasers that want to get together and open their businesses up to one another.

… A community of companies wants to be able to come together affordably, so that the SMB can on-board an exchange at an affordable rate. That’s really been the problem with most of these large-scale EDI solutions in the past. It’s so expensive to bring on the smaller players that they can’t play.

… When you have that sort of like-mindedness, you have the wherewithal to collaborate. But, the problem has always been finding the right people, getting to that knowledge that people have, and getting them to open it up. That’s where the social networking side of this comes in. That’s where I see the big EDI guns I was talking about and the more modernized renditions opening up to this whole Google Wave notion of what collaboration means in a social networking context.

That’s one key area — being able to have the collaboration and social networking during the modeling of the processes.

Minahan: … We’re seeing that already through the exchange that we have amongst our customers or around our solutions. We’re also seeing that in a lot of the social networking communities that we participate in around the exchange of best practices. The ability to instantiate that into reusable workflows is something that’s certainly coming.

Folks are always asking these days, “We hear a lot about this cloud. What business processes or technologies should we put in the cloud?” When you talk about that, the most likely ones are inter-enterprise, whether they be around commerce, talent management, or customer management, it’s what happens between enterprises where a shared infrastructure makes the most sense.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. View a full transcript, or download a copy. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

November 9th, 2009

Here's why text-based content access and management play crucial roles in real-time BI

Posted by Dana Gardner @ 2:27 pm

Categories: BI, Enterprise 2.0, Google, Government, HP, IBM, Podcasts, Software Development, Software Infrastructure, Web Services, business intelligence, content delivery network, database, management, search

Tags: 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: Kapow Technologies.

Text-based content and information from across the Web are growing in importance to businesses. The need to analyze web-based text in real-time is rising to where structured data was in importance just several years ago.

Indeed, for businesses looking to do even more commerce and community building across the Web, text access and analytics forms a new mother lode of valuable insights to mine.

As the recession forces the need to identify and evaluate new revenue sources, businesses need to capture such web data services for their business intelligence (BI) to work better, deeper, and faster.

In this podcast discussion, Part 3 of a series on web data services for BI, we discuss how an ecology of providers and a variety of content and data types come together in several use-case scenarios.

In Part 1 of our series we discussed how external data has grown in both volume and importance across the Internet, social networks, portals, and applications. In Part 2, we dug even deeper into how to make the most of web data services for BI, along with the need to share those web data services inferences quickly and easily.

Our panel now looks specifically at how near real-time text analytics fills out a framework of web data services that can form a whole greater than the sum of the parts, and this brings about a whole new generation of BI benefits and payoffs.

To help explain the benefits of text analytics and their context in web data services, we’re joined by Seth Grimes, principal consultant at Alta Plana Corp., and Stefan Andreasen, co-founder and chief technology officer at Kapow Technologies. The discussion is moderated by me, Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Grimes: “Noise free” is an interesting and difficult concept when you’re dealing with text, because text is just a form of human communication. Whether it’s written materials, or spoken materials that have been transcribed into text, human communications are incredibly chaotic … and they are full of “noise.” So really getting to something that’s noise-free is very ambitious.

… It’s become an imperative to try to deal with the great volume of text — the fire hose, as you said — of information that’s coming out. And, it’s coming out in many, many different languages, not just in English, but in other languages. It’s coming out 24 hours a day, 7 days a week — not only when your business analysts are working during your business day. People are posting stuff on the web at all hours. They are sending email at all hours.

If you want to keep up, if you want to do what business analysts have been referring to as a 360-degree analysis of information, you’ve got to have automated technologies to do it.

… There are hundreds of millions of people worldwide who are on the Internet, using email, and so on. There are probably even more people who are using cell phones, text messaging, and other forms of communication.

If you want to keep up, if you want to do what business analysts have been referring to as a 360-degree analysis of information, you’ve got to have automated technologies to do it. You simply can’t cope with the flood of information without them.

Fortunately, the software is now up to the job in the text analytics world. It’s up to the job of making sense of the huge flood of information from all kinds of diverse sources, high volume, 24 hours a day. We’re in a good place nowadays to try to make something of it with these technologies.

Andreasen: … There is also a huge amount of what I call “deep web,” very valuable information that you have to get to in some other way. That’s where we come in and allow you to build robots that can go to the deep web and extract information.

… Eliminating noise is getting rid of all this stuff around the article that is really irrelevant, so you get better results.

The other thing around noise-free is the structure. … The key here is to get noise-free data and to get full data. It’s not only to go to the deep web, but also get access to the data in a noise-free way, and in at least a semi-structured way, so that you can do better text analysis, because text analysis is extremely dependent on the quality of data.

Grimes: … [There are] many different use-cases for text analytics. This is not only on the Web, but within the enterprise as well, and crossing the boundary between the Web and the inside of the enterprise.

Those use-cases can be the early warning of a Swine flu epidemic or other medical issues. You can be sure that there is text analytics going on with Twitter and other instant messaging streams and forums to try to detect what’s going on.

… You also have brand and reputation management. If someone has started posting something very negative about your company or your products, then you want to detect that really quickly. You want early warning, so that you can react to it really quickly.

We have some great challenges out there, but . . . we have great technologies to respond to those challenges.

We have a great use case in the intelligence world. That’s one of the earliest adopters of text analytics technology. The idea is that if you are going to do something to prevent a terrorist attack, you need to detect and respond to the signals that are out there, that something is pending really quickly, and you have to have a high degree of certainty that you’re looking at the right thing and that you’re going to react appropriately.

… Text analytics actually predate BI. The basic approaches to analyzing textual sources were defined in the late ’50s. Actually, there is a paper from an IBM researcher from 1958, that defines BI as the analysis of textual sources.

…[Now] we want to take a subset of all of the information that’s out there in the so-called digital universe and bring in only what’s relevant to our business problems at hand. Having the infrastructure in place to do that is a very important aspect here.

Once we have that information in hand, we want to analyze it. We want to do what’s called information extraction, entity extraction. We want to identify the names of people, geographical location, companies, products, and so on. We want to look for pattern-based entities like dates, telephone numbers, addresses. And, we want to be able to extract that information from the textual sources.

Suitable technologies

All of this sounds very scientific and perhaps abstruse — and it is. But, the good message here is one that I have said already. There are now very good technologies that are suitable for use by business analysts, by people who aren’t wearing those white lab coats and all of that kind of stuff. The technologies that are available now focus on usability by people who have business problems to solve and who are not going to spend the time learning the complexities of the algorithms that underlie them.

Andreasen: … Any BI or any text analysis is no better than the data source behind it. There are four extremely important parameters for the data sources. One is that you have the right data sources.

There are so many examples of people making these kind of BI applications, text analytics applications, while settling for second-tier data sources, because they are the only ones they have. This is one area where Kapow Technologies comes in. We help you get exactly the right data sources you want.

The other thing that’s very important is that you have a full picture of the data. So, if you have data sources that are relevant from all kinds of verticals, all kinds of media, and so on, you really have to be sure you have a full coverage of data sources. Getting a full coverage of data sources is another thing that we help with.

Noise-free data

We already talked about the importance of noise-free data to ensure that when you extract data from your data source, you get rid of the advertisements and you try to get the major information in there, because it’s very valuable in your text analysis.

Of course, the last thing is the timeliness of the data. We all know that people who do stock research get real-time quotes. They get it for a reason, because the newer the quotes are, the surer they can look into the crystal ball and make predictions about the future in a few seconds.

The world is really changing around us. Companies need to look into the crystal ball in the nearer and nearer future. If you are predicting what happens in two years, that doesn’t really matter. You need to know what’s happening tomorrow.

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

November 5th, 2009

Role of governance plumbed in Nov. 10 webinar on managing hybrid and cloud computing types

Posted by Dana Gardner @ 10:27 am

Categories: Agile Development, Amazon, Cloud computing, Developer Tools, Google, IT Management, IT Service Management, ITIL, Microsoft, SOA, SOA Governance, SOA architect, SaaS, Software Development, Software Infrastructure, Virtualization, Web Services, Windows, datacenters, governance, mainframe, management

Tags: Governance, Webinar, Service-Oriented Architecture (SOA), Cloud Computing, Virtualization, Web Services, Enterprise Software, Software, Hardware, Dana Gardner

I‘ll be joining John Favazza, vice president of research and development at WebLayers, on Nov. 10 for a webinar on the critical role of governance in managing hybrid cloud computing environments.

The free, live webinar begins at 2 p.m. EDT. Register at https://www2.gotomeeting.com/register/695643130. [Disclosure: WebLayers is a sponsor of BriefingsDirect podcasts.]

Titled “How Governance Gets You More Mileage from Your Hybrid Computing Environment,” the webinar targets enterprise IT managers, architects and developers interested in governance for infrastructures that include hybrids of cloud computing, software as a service (saaS) and service-oriented architectures (SOA). There will be plenty of opportunity to ask questions and join the discussion.

Organizations are looking for more consistency across IT-enabled enterprise activities, and are finding competitive differentiation in being able to best manage their processes more effectively. That benefit, however, requires the ability to govern across different types of systems and infrastructure and applications delivery models. Enforcing policies, and implementing comprehensive governance, acts to enhance business modeling, additional services orientation, process refinement, and general business innovation.

Increasingly, governance of hybrid computing environments establishes the ground rules under which business activities and processes — supported by multiple and increasingly diverse infrastructure models — operate.

Developing and maintaining governance also fosters collaboration between architects, those building processes and solutions for companies, and those operating the infrastructure — be it supported within the enterprise or outside. It also sets up multi-party business processes, across company boundaries, with coordinated partners.

Cambridge, Mass.-based WebLayers provides a design-time governance platform that helps centralize policy management across multiple IT domains — from SOA through mainframe and cloud implementations. Such governance clearly works to reduce the costs of managing and scaling such environments, individually and in combination.

In the webinar we’ll look at how structured policies, including extensions across industry standards, speeds governance implementations and enforcement — from design-time through ongoing deployment and growth.

So join me and Favazza and me at 2 p.m. ET on Nov. 10 by registering at https://www2.gotomeeting.com/register/695643130.

November 3rd, 2009

Survey: Virtualization and physical infrastructures need to be managed in tandem

Posted by Dana Gardner @ 12:56 pm

Categories: Agile Development, Amazon, Cloud computing, Enterprise Java, Google, HP, IBM, IT Management, IT Service Management, Microsoft, Oracle, SOA, SOA Governance, SOA architect, Software Development, Software Infrastructure, Testing Tools, VMware, Virtualization, Web Services, governance, management

Tags: Survey, Infrastructure, Noteworthy, Cloud Computing, Marketing Research, Storage Management, Virtualization, Utility Computing, Marketing, Storage

If your company uses test and development infrastructures as a proving ground for shared services, virtualization and private cloud environments, you’re not alone. More companies are moving in that direction, according to a Taneja Group survey.

Yet underlying the use of the newer infrastructure approaches lies a budding challenge. The recent Taneja Group survey of senior IT managers working on test/dev infrastructures at North American firms found that 72 percent of respondents said virtualization on its own doesn’t address their most important test/dev infrastructure challenges. Some 55 percent rate managing both virtual and physical resources as having a high or medium impact on their success. The market is clearly looking for ways to bridge this gap.

Sharing physical and virtual infrastructures

Despite the confusion in the market about the economics of the various flavors of cloud computing, Dave Bartoletti, a senior analyst and consultant at Taneja Group, says one thing is clear: Enterprises are comfortable with, and actively sharing, both physical and virtual infrastructures internally.

“This survey reaffirms that shared infrastructure is common in test/dev environments and also reveals it’s increasingly being deployed for production workloads,” Bartoletti says. “Virtualization is seen as a key enabling technology. But on its own it does not address the most important operational and management challenges in a shared infrastructure.”

Half the survey respondents are funding projects starts in 2009. Another 66 percent of respondents will have funded a project started by the end of 2010.

Noteworthy is the fact that 92 percent of test/dev operations are using shared infrastructures, and companies are making significant investments in infrastructure-sharing initiatives to address the operational and budgetary challenges. Half the survey respondents are funding projects in 2009. Another 66 percent of respondents will have funded a project started by the end of 2010.

The survey reveals most firms are turning to private cloud infrastructures to support test/dev projects, and that shared infrastructures are beginning to bridge the gap between pre-production and production silos. A full 30 percent are sharing resource pools between both test/dev and production applications. This indicates a rising comfort level with sharing infrastructure within IT departments.

Virtualization’s cost and control issues

Although 89 percent of respondents use virtualization for test/dev, more than half have virtualized less than 25 percent of their servers. That’s because virtualization adds several layers of control and cost issues that need to be addressed by sharing, process, workflow and other management capabilities in order to fully maximize and integrate both virtual and physical infrastructures.

“Test/Dev environments are one of the most logical places for organizations to begin implementing private clouds and prove the benefits of a more elastic, self service, pay-per-use service delivery model,” says Martin Harris, director Product Management at Platform Computing. “We’ve certainly seen this trend among our own customers and have found that additional management tools enabling private clouds are required to effectively improve business service levels and address cost cutting initiatives.” [Disclosure: Platform Computing is a sponsor of BriefingsDirect podcasts.]

Despite the heavy internal investments, however, 82 percent of respondents are not using hosted environments outside their own firewalls. The top barriers to adoption: Lack of control and immature technology.

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

October 26th, 2009

Linthicum's latest book: How SOA and cloud intersect for enterprise productivity benefits

Posted by Dana Gardner @ 12:30 pm

Categories: Agile Development, Amazon, Cloud computing, Google, HP, IBM, IT Management, IT Service Management, Microsoft, Podcasts, SOA, SOA Governance, SOA architect, SaaS, Software Development, Software Infrastructure, Virtualization, Web Services, datacenters, governance, management

Tags: Benefit, SOA, Cloud, Linthicum, Dave Linthicum, Service-Oriented Architecture (SOA), Web Services, Cloud Computing, Middleware, Virtualization

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download a transcript. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

Welcome to the latest BriefingsDirect Analyst Insights Edition, Volume 45. This periodic discussion and dissection of IT infrastructure related news and events with industry analysts and guests, looks at a new book on cloud computing, a step-by-step guide on figuring out the right path to combined cloud and SOA benefits.

Dave Linthicum’s new book, Cloud Computing and SOA Convergence in Your Enterprise: A Step-by-Step Guide, has just arrived and digs into the conflation of SOA and cloud computing. Our discussion with Linthicum on his findings is moderated by me, Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Linthicum: SOA is the way to do cloud. I saw early on that SOA, if you get beyond the hype that’s been around for the last two years, is really an architectural pattern that predates the SOA buzzword, or the SOA TLA.

It’s really about breaking down your architecture into a primitive state of several components, including services and data and processes. Then, it’s figuring out how to assemble those in such a way that you can not only solve your existing problems, but use those components to resolve problems, as your business changes over time or your mission changes or expands.

Cloud computing is a nice enhancement to that. Cloud doesn’t replace SOA, as some people say. Cloud computing is basically architectural options or ways in which you can host your services, in this case, in the cloud.

As we go through reinventing your architecture around the concept of SOA, we can figure out which components, services, processes, or data are good candidates for cloud computing, and we can look at the performance, security and governance aspects of it.

Architectural advantages

We find that some of our services can exist out on the platform in the cloud, which provides us with some additional architectural advantages such as self-provisioning, the ability to get on the cloud very quickly in a very short time without buying hardware and software or expanding our data centers, and the ability to rapidly expand as we need to expand basically on demand.

If we need to go from 10 users to 1,000 users, we can do so in a matter of weeks, not having to buy data-center space, waves and waves of servers, software, hardware licenses, and all those sorts of things. Cloud computing provides you with some flexibility, but it doesn’t get away from the core needs to architecture. So, really the book is about how to use SOA in the context of cloud computing, and that’s the message I’m really trying to get across.

… As we move toward cloud computing, there are more economical and cost-effective architectural options. There is also the ability to play around with SOA in the cloud, which I think is driving a lot of the SOA. In fact, I find that a lot of people build their first initial SOA as cloud-delivered systems, be it Amazon, IBM, Azure from Microsoft, and some of the other platforms that are out there.

Then, once they figure out the benefits of that, they start putting pieces of it on premise, as it makes sense, and put pieces of it on the cloud. It has the tendency to drive prototyping on the cheap and to leverage architecture and play around with different technologies without the investment we had to do in the past.

… We’ve got to stop the insanity. We’ve got control IT spending. We’ve got to be much more effective and efficient with the way in which we spend and leverage IT resources. Cloud computing is only a mechanism, it’s not a savior for doing that. We need to start marching in new directions and being aggressively innovative around the efficiency, the expandability, and ultimately the agility of IT.

… When you’re doing SOA and considering SOA within your enterprise or agency, you should always consider cloud as an architectural option. In other words, we have servers we’re looking to deploy in middleware, we’re looking to leverage in databases we’re looking to leverage in terms of SOA. It’s governance systems, security systems, and identity management.

Cloud computing is really another set of things that you need to consider in the context of SOA, and you need to start playing around with the stuff now, because it’s so cheap. There’s no reason that anybody who’s working on an SOA shouldn’t be playing around with cloud, given the amount of investment that’s needed. It’s almost nothing, especially with some of the initial forays, some of the prototypes, and some of the pilot projects that need to be done around cloud.

… Software as a service (SaaS) is probably the easiest way to get into the cloud. It also has the most potential to save you the greatest amount of money. Instead of buying a million-dollar, or a two-million-dollar customer reliationship management (CRM) system, you can leverage Salesforce.com for $50-60 a month.

After that, I would progress into infrastructures as a service (IaaS), and that’s basically data center on demand. So, it’s databases, application servers, WebSphere, and all those sorts of things that you are able to leverage from the data center, but, instead of a data center, you leverage it from the cloud.

Guys like Amazon obviously are in that game. Microsoft, or the Azure platform, are in that game. Any number of players out there are going to be able to provide you with core infrastructure or primitive infrastructure. In other words, it’s just available to you over the ‘Net with some of kind of a metering system. I would start playing around with that technology after you get through with SaaS.

. . . Instead of having to buy infrastructure and buy a server and set it up and use it, we could go get Google App Engine accounts or Azure accounts.

Then, I would take a look at the platform-as-a-service (PaaS) technology, if you are doing any kind of application development. That’s very cool stuff. Those are guys like Force, Google App Engine, and Bungee Labs. They provide you with a complete application development and deployment platform as a service. Then, I would progress into the more detailed stuff — database, storage, and some of the other more sophisticated services on top of the primitive services that we just mentioned.

… PaaS with that Google App Engine is driving a lot of innovation right now. People are building applications out there, because they don’t have to bother existing IT to get servers and databases brought online, and that will spur innovation.

So, today, we could figure out we want to go off and build this great application and do this great thing to automate a business and, instead of having to buy infrastructure and buy a server and set it up and use it, we could go get Google App Engine accounts or Azure accounts.

Huge potential

Then, we can start building, deploying, defining the database, do the testing, get it up and running, and have it immediately. It’s web based and accessible to millions of users who are able to leverage the application in a scalable way. It’s an amazing kind of infrastructure when you think about it. The potential is there to build huge, innovative things with very few resources.

… Ten years ago, it was very difficult to do a start up. You’d have a million dollars in investment funds just to get your infrastructure up and running. Now, startups can basically operate with a minimal amount of resources, typically a laptop, pointing at any number of cloud resources.

They can build their applications out there. They can build their intellectual capital. They can build their software. They can deploy it. They can test it. Then, they can provision the customers out there and meter their customers. So, it’s a great time to be in this business.

… There needs to be a lot of education about the opportunities and the advantages of using cloud computing, as well as what the limitations are and what things we have to watch out for. Not all applications and all pieces of data are going to be right for the cloud. However, we need to educate people in terms of what the opportunities are.

The fact of the matter is that it’s not going to be a dysfunctional and risky thing to move pieces of our architecture out into cloud computing. Get them around the pilot. Get them to go out there and try it. Get them to basically experiment with the technology. Figure out what the capabilities are, and that will ultimately change the culture.

… We’re going to get to a point where the data is going to be a ubiquitous thing. It doesn’t really matter where it resides and where we can access it, as long as we access it from a particular model. It’s not going to make any difference to the users either. I just blogged about that in InfoWorld.

In fact, we’re getting into this notion of what I call the “invisible cloud.” In other words, we’re not doing application as a service or SaaS, where people get new interfaces that are web-driven. We’re putting pieces of the back-end architectural components — processes, services, and, in this case, data — out on the platform of the cloud. It really doesn’t matter to them where that data resides, as long as they can get at it when they need it.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download a transcript. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

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October 21st, 2009

Global study: Hybrid model rules as cloud heats up, SaaS adoption blazing

Posted by Dana Gardner @ 7:46 am

Categories: Akamai, Amazon, Cloud computing, Google, HP, IT Management, IT Service Management, ITIL, Microsoft, Oracle, SAP, SOA, SOA Governance, SOA architect, SaaS, Software Development, Software Infrastructure, VMware, Virtualization, business intelligence, convergence, database, datacenters, governance, mainframe, management

Tags: Software, Software-as-a-service, Avenade, Software As A Service (SaaS), Managed Hosting, Cloud Computing, Tools & Techniques, Emerging Technologies, Management, Dana Gardner

“Cloud” is the game and “hybrid” is the name. A recent global study has encouraging news for cloud-computing enthusiasts, revealing a sharp uptick in the adoption, as well as consideration, of cloud computing. The same study also indicates that those who are adopting cloud aren’t going whole hog, but are taking a hybrid approach — mixing external and internal clouds.

The study, commissioned by global IT consultancy Avanade, showed a surprising increase in the interest in cloud computing, even from a similar study conducted in January of this year. In January, 54 percent of respondents said they had no plans to adopt cloud computing. By September, that percentage had shrunk to 37 percent.

At the same time, the percentage of companies planning or testing cloud computing increased three-fold, going from 3 percent of respondents to 10 percent.

What’s significant in the report is that less than 5 percent of companies are using an all-cloud model. The rest are relying on a hybrid approach, and report security concerns as the chief factor for being cautious.

Nine months ago, 61 percent of respondents indicated that they were using only internal IT systems and today, that number has dropped to 41 percent. At the same time, those using a combined approach on a global level have increased to 54 percent from 33 percent nine months earlier.

The report says it not clear whether the hybrid model will lead to a pure-play adoption at some point.

SaaS is taking off

One aspect of cloud computing that’s finding wide adoption is software as a service (SaaS), with more than half of the respondents worldwide — and 68 percent in the US — reporting that they have adopted SaaS at some level. Despite extremely high satisfaction — more than 90 percent — reliability is still an issue. About 30 percent of respondents said they had lost more than a day of business due to a service outage.

Still, the reliability concerns haven’t dampened users’ enthusiasm for SaaS, and 62 percent of respondents reported that they had plans to move into more SaaS within the next year. However, similar to their experience with cloud, users tend to deliver SaaS applications internally, rather than from the third-party provider.

On a global basis, those who deliver SaaS application internally outnumber those who used a third party by a ratio of 2 to 1. In the US, that increases to 4 to 1. Also, those who do use SaaS often rely on multiple providers, with one third using three or more providers. This leads the report to conclude that there is opportunity in the SaaS market.

Other conclusion from the report:

• Cloud will continue to make significant inroads for the next year, although there won’t be a migration to a full cloud environment.
• The gap is closing between companies with plans to adopt and those without. Avenade sees those curves intersecting in 2011 or 2012.
• Despite the widespread adoption of cloud, there will be some applications that should remain on-premises.
• SaaS adoption will continue to spread and is spreading faster than other technologies have in the past.

The study was conducted by Kelton Research and surveyed 500 C-level and IT executives worldwide.

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

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 14th, 2009

CEO interview: Workday's Aneel Bhusri on advancing SaaS and cloud models for improved ERP

Posted by Dana Gardner @ 10:57 am

Categories: Agile Development, Application Lifecycle Management, Cloud computing, Google, Government, IT Service Management, ITIL, Microsoft, Oracle, Podcasts, SAP, SaaS, Software Development, Software Infrastructure, Web Services, Web Technology, datacenters, iPhone, mainframe, management

Tags: PeopleSoft Inc., Software-as-a-service, ERP, Workday, BriefingsDirect Podcast, Enterprise Resource Planning (ERP), Software As A Service (SaaS), Managed Hosting, Cloud Computing, Enterprise Software

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

The latest BriefingsDirect podcast is an executive interview with a software-as-a-service (SaaS) upstart Workday, a human capital management (HCM), financial management, payroll, worker spend management, and workday benefits network provider.

I had the pleasure to recently sit down with Workday’s co-founder and co-CEO, Aneel Bhusri, who is responsible for the company’s overall strategy and day-to-day operations.

Bhusri, who also helped bring PeopleSoft to huge success, explains how Workday is raising the bar on employee life-cycle productivity by lowering IT costs through the SaaS model for full enterprise resource planning (ERP).

More than that, Workday is also demonstrating what I consider a roadmap to the future advantages in cloud computing. The interview is conducted by me, BriefingsDirect’s Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Bhusri: We’re very similar to PeopleSoft in some areas, and in other areas, quite different. We have the same culture — focused on employees first and customers second. We focus on integrity. We focus on innovation. We brought that same culture to Workday, and our customers are very happy.

The pedigree of the team starts with my co-founder, Dave Duffield. He’s an icon in the software industry. He’s known for high integrity, innovation, and customer service. Many of us, like me, have been with him for 17 years now and we share that vision and that culture with him. We have set out to build the next great software company.

Much like PeopleSoft, we are taking advantage of a technology shift. PeopleSoft benefited from the shift from mainframe to client-server. When Workday started, people weren’t as focused on how big the shift was from client-server or on-premise computing to what is now called cloud computing or, back then, SaaS.

It now seems like it’s even bigger than the shift from mainframe to client-server. This is a massive shift and you see it all across. That’s the big difference. We are obviously leveraging a very different technology base.

The thing that Dave and I both took away from PeopleSoft is that you have to stay on top of innovation, and that’s what Workday is doing. We are innovating where the large ERP vendors have stopped.

One of the reasons why the margins are so high for the [legacy ERP vendors] is that they are at the tail end of the technology life cycle. They are not really innovating.

… One of the reasons why the margins are so high for the [legacy ERP vendors] is that they are at the tail end of the technology life cycle. They are not really innovating. They are collecting maintenance payments. We all know that maintenance is very, very profitable. Well, when you start in a new technology, it’s mostly investing. Usually, when the profitability rates get that high, it means that there is a new technology around the corner that will start cutting into those profitability rates.

… ERP is now 15 years old and just needs to be rewritten. The world has changed so dramatically since the original ERPs were written.

Back then, companies were thinking about being global. Now, they are global. People were not even thinking about the Internet, and now the Internet exists. That was before Sarbanes-Oxley and before the emergence of the iPhone and BlackBerry. All these things pile together to say that it’s time to go back and rewrite core ERP. It’s no longer valid in today’s world.

… These last nine months have been challenging for everyone. We, as a system-of-record vendor, saw fewer projects out there. At the same time, because of our new model and the cost benefits of the SaaS solutions, we were probably more relevant than we might have been without the economic downturn.

… As the Workday system has gotten more robust, we’ve really focused on the Fortune 1000 companies, our biggest being Flextronics. Those large, complex organizations with global requirements have a great opportunity for cost savings.

When you add it altogether . . . it averages out consistently to about a 50 percent cost saving over a five-year period.

We had companies that were planning on implementing the traditional legacy systems, but could not afford it. A great example is Sony Pictures Entertainment. They already own the licenses to the SAP HR system, and yet, after careful consideration, determined they didn’t have the budget to implement it.

… They will be live in five months, and they will get the benefit of about a 50 percent cost savings, if not more. They basically quoted it as one-half the time at one-third the cost.

… When you add it altogether, really do it on an apples-to-apples basis, and look at what we have taken over for the customers, it averages out consistently to about a 50 percent cost saving over a five-year period.

… The data we have now is not theoretical. It’s now based on 60 of our 100-plus customers. Being in production, we have been able to go back and monitor it. The good news about our cost is that it’s all-in-one subscription cost, so we know exactly what the costs were for running the Workday system.

… [Many customers] decided that they were not going to take the major upgrade from one of those ERP vendors. A major upgrade is much like a new implementation and it’s cost prohibitive.

With our focus on continuing innovation, they are not stuck in time. Every customer gets upgraded every four months to the most current version of the system. So as we are innovating, they are all taking the advantage of that innovation, whether it’s in usability, functionality, or a new business model.

I like to think about it as building at web speed, and that’s how Google, Amazon, and eBay think about it. New features come out very quickly. There are no old versions of Amazon and eBay that they have to worry about supporting. It’s one system for all users. We’re able to leverage those same principles that they are and bring out capabilities very quickly, so a customer can identify something that’s important to them.

If you can get your administrative applications, your non-mission critical applications . . . delivered from a vendor . . . why not focus your resources on the core enterprise apps you have?

… I think we are a lot like Salesforce. Dave and I have a very good relationship with Marc Benioff. They’re focused on CRM, and we’re focused on ERP. I think the big difference is that they are focused on becoming a platform vendor, and we are really very focused on staying as an application vendor.

… If you can get your administrative applications, your non-mission critical applications — CRM, HR, payroll, and accounting — delivered from a vendor, and you can manage them to service-level agreements (SLAs), why not focus your resources on the core enterprise apps you have?

More and more CIOs are getting that. It does free up data-center space. It also frees up human resources and IT to focus in on what’s core to their business. HR and accounting don’t have to be specialized in running that system. They have to know HR and accounting, but they don’t have to be specialized in running those systems.

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

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.