June 14th, 2009
Cloud computing and open source face-off
Cloud computing remains one of the big topics in software this year despite considerable and ongoing concerns over lock-in, lack of control, and security. The siren song of ease-of-development, reduced costs, highly elastic scalability, and next-generation architectures has many in IT and in the Web community carefully weighing the benefits and risks.
This puts open source on individual installations at a distinct disadvantage with the cloud. Along the way, open source has become a key enabler for cloud computing by providing both cheap inputs (as in free) as well as rich capabilities to providers of cloud services. The writing, however, is beginning to appear on the wall: the cloud computing industry will use open source as leverage for a new generation of proprietary platforms-as-a-service, very much like the established Web 2.0 services in the consumer space have used open source platforms to capture and create lock-in around data.
Dana Blankenhorn’s coverage last week (”IBM expects Linux to make money“) of that company’s re-emphasized focus on the bottom line with open source puts cloud economics on the front line of major computing vendors:
IBM is tightly focused on server sales and the development of clouds, which can be sold, rented, or deliver profitable services.
For cloud computing, “why wouldn’t you run it on Linux?” [IBM's Bob Sutor] asked, because Linux can deliver all kinds of virtualization and those who want Windows desktops need never know they’re not.
Thanks to clouds IBM can profitably deliver thousands of desktops that look like Windows but have Linux on the back-end. It can also sell servers that are compatible with its clouds at the deepest level. [snip]
Sutor and Zemlin also discussed what might be called the “corporate-cloud boundary,” the point in the growth of an enterprise system where building a cloud starts to make economic sense. Clouds start to make sense when heavy virtualization takes place, Sutor said.
And Linux will make IBM money when used in cloud-based products which are metered to customers, often by the hour. One big reason that open source will help fuel the rise of cloud computing, while often becoming second fiddle to platforms in the cloud, is that software is only a component of a computing environment, albeit an expensive one and cloud economics almost always favor the incorporation of open source products. However, something that open source has only been partially successful at incorporating as a value creator (essentially, only the cost of development) is what IBM’s Sutor clearly stated: economies of scale.
It’s not that cloud-enabled services such as Ubuntu with Eucalyptus can’t provide cloud services; they can. However, they aren’t part of a finished solution and don’t create an ecosystem that create intrinsic economic or technical benefits in a situated setting. This is because a significant part of building a robust and successful computing environment is creating a compelling, finished solution that contains infrastructure, management, research & development, and support. All of these come together to create a service comprehensive enough that computing can take place, or significantly, can be an effective target environment for outsourcing. When a computing ecosystem consists of multiple stakeholders that depend upon it, costs and effort can then be distributed. The more customers a cloud provider has, the better the outcome for the cloud provider and its customers (eventually becoming “too big to fail“, an additional cloud computing issue that’s outside of this discussion, but an important one as well.)
At the end of the day, cloud providers generally have two major advantages they can
June 13th, 2009
Running your SOA like a Web startup
One of the more striking differences between IT and the online world these days is the contrast between traditional enterprise service-oriented architecture and its equivalent on the Web, open APIs. More and more lessons are coming from the online space, providing key insights into how we might invigorate the way we open up our IT systems for maximum value.
SOA does not have the same business urgency and lacks critical focus in this regard in most organizations. So while some new data shows that 75% of all large enterprises will be using SOA by the end of this year (and 60% will even be expanding it), the most obvious successes with service-oriented approaches aren’t classical organizations at all. They are Web companies that offer APIs out of a basic need: To build a network of partnerships quickly and cheaply as well as tap into external innovation and inexpensive 3rd party investment.
A quick examination of Google News shows several useful new public-facing Web services (aka open APIs) that were announced this week, including one for Microsoft’s Bing as well as from smaller companies like School Loop, which just launched an API that “lets gradebook and assessment systems pull data–such as rosters and assignments–from School Loop and write scores into the School Loop gradebook for display to parents, teachers, students, and other stakeholders.” Both of these APIs let anyone, anywhere build applications that interact with and incorporate their respective capabilities.
These are just two typical examples of more than 40 new APIs that were released to the world over the last 30 days alone, according to Programmable Web’s API dashboard, currently the most reliable source for such information. This pace of release is fairly steady: A “global SOA” is growing up around us on the Web.
Joe McKendrick recently asked here on ZDNet if we needed an iTunes model for Web services. The reality is, it already exists — albeit in Web-friendly, simple form — and not in the failed visions of UDDI directories of yore, but in the pragmatic release of hundreds and hundreds of new APIs every year.
SOA and Open APIs: Close Cousins
Now, it’s also true that SOA initiatives in large companies generally don’t publicly announce their internal developments, so it’s much harder to get a sense of what is being created and used in most organizations. However it’s fairly clear that there are some significant differences and outcomes between these two approaches for open services, even as they ostensibly have the same goals on the face of it: To encourage interoperability between different business systems and enable opportunities that would otherwise be too difficult, expensive, or time-consuming to capture.
What’s especially intriguing about these two sides of the same coin are the innate assumptions that they make: SOA is usually an overhead effort (thought it can also be done on the ground) between IT and the business which ultimately allows businesses to achieve improved results and even serendipitous outcomes when it comes to the integration and leverage of existing investments in systems and data. The ROI is very often hard to measure and rapid improvements to the business are usually not the norm. SOAs also tend to be more inward facing and designed for internal consumption.
Contrast this with open APIs, in which the API is considered of primary strategic advantage to the business. The view is the investment in the development of an API is warranted because of immediate benefits that can be gained: increased reach to new customers on the network, tapping into external innovation, increased 3rd party investment, and a scalable model for 3rd party relationships. Interestingly, the bigger the organization, the more value an API has to offers to existing and potential partners, primarily because of the data tends to be richer and more valuable and/or the functionality it exposes is world-class through the success of the enclosing business. This is a vision where a service-oriented business channel (open APIs, not Web pages) often becomes the dominant channel for interaction with their customers as it arguably has for market leaders such as Amazon, Twitter, and others. Unlike most SOA efforts, APIs also tend to be designed for consumption by the broader world, though they are certainly used internally as well.
In would be a gross oversimplification to say that SOA is a technical approach to solving a outstanding set of business problems and open APIs are a business solution that uses a technical approach, but increasingly that seems to be the case. A couple of years ago I asked if it was the timing was right for businesses to open up to the cloud particularly since a near majority of CIOs were clamoring for it. For more enterprises, that just hasn’t happened, leaving strategic gaps in execution that has helped lead to the recent discussions about the possibility of the quiet death of SOA.
These points highlight a key difference between
June 8th, 2009
Reconciling social computing with the enterprise
Umair Haque wrote an impressive tract on his Harvard Business blog late last week about Twitter and how it changes the rules of innovation. It’s an incisive and challenging piece that well worth reading if your looking at cutting-edge business trends. It also helps surface what’s turning into an increasingly larger gap between what happens in the business world and what happens everywhere else.
It will sometimes be a challenge to find the right metrics that help you to drive decisions about your social computing behaviors that improve the business. Jeff Jarvis and Michael Arrington made similar points over the weekend about process vs. product, ostensibly about their particular industry (journalism) and how social processes are competing — often more effectively, though very differently — with traditional, non-social “product” creations, namely news stories. As we’ll see, you can find similar examples of this now in many other industries. The key point: The processes involved in how we accomplish our daily work are being transformed by social tools on the network. Along the way, the act of work itself is becoming more of a collective journey instead of a final destination as our individual work experiences become more open, collaborative, participatory, and social.
The net result is often better and richer outcomes, though the journey can occasionally devolve into a less-than-deterministic result that can be (for the time being) rather unsatisfying, though rarely does it come to a complete stop until everyone who wants to has a crack at it.
On the other hand, the classical way of working has been to create finished, perfect-as-possible outcomes (products, services, etc.) from opaque, unknowable, lengthy processes which outsiders, within or outside the organization, could not directly perceive, alter, or improve. As Jarvis writes of traditional work methods:
It is the byproduct of the means and requirements of mass production: If you have just one chance to put out a product and it has to serve everyone the same, you come to believe it’s perfect because it has to be, whether that product is a car (we are the experts, we took six years to tool up, it damned well better be perfect) or government (where, I’m learning, employees have a phobic fear of mistakes - because citizens and journalists will jump on them) or newspapers (we package the world each day in a box with a bow on it - you’re welcome).
The key point here is the broader changes we are experiencing today: The pervasive presence of social software and today’s highly open, interactive, and remixable Web embedded deeply into our personal lives is increasingly allowing us to experience a new way of living. And it’s one that bears less and less resemblance to the workplace all the time, with significantly differing behaviors, skills, tools, and expectations. This situation creates a delta that, sooner or later, will simply become untenable for many organizations. We simply aren’t keeping up with the pace of change, never mind that not all workers are experiencing the change of the modern world the same way or at the same speed. Media sharing sites, social networks, and social tools have become embedded deeply in a large percentage of people’s lives, just as long as we remember it’s not everyone.
This increasing distance between these two worlds creates a gap — a disconnect, even — that increasingly cuts organizations off from their most valuable assets (their people) and also exerts a subversive force on organizations as their workers help themselves to the tools of their own volition, bring their (and arguably better) new behaviors and processes to work, and try to get things done with them, whether that’s crowdsourcing, Enterprise 2.0, online customer communities, etc.
So what will happen? Will there just continue to be a growing chasm between the worlds of business and how we do things outside of work? Or will the gap just become too large to sustain, with an equilibrium shift suddenly taking place in some way that creates what I’ll call (for want of a better term), a social singularity.
Singularities are popular topics with tech audiences. Read about technology singularities and Internet singularities.
A social singularity would be embodied by a convergence of
June 5th, 2009
Eight ways that cloud computing will change business
When a major change arrives on the IT scene it’s not always clear what the implications will be, if any, and so for large organizations a risk-managed wait-and-see attitude tends to prevail. Occasionally however some shifts offer cost savings, improvements to operations, or ways to tackle business problems that offer significant strategic advantage. The larger the benefit in one or more of these areas, then the more strategic the advance is and the greater potential it will impact the bottom line.
Cloud computing is quickly beginning to shape up as one of these major changes and the hundreds of thousands of business customers of cloud offerings from Amazon (Amazon Web Services), Salesforce (Force.com), and Google (many offerings, including Google App Engine), including a growing number of Fortune 500 companies, is showing both considerable interest and momentum in the space.
Cloud Computing: A delicate balance of risk and benefit
To be clear, there are currently unanswered questions and inherent challenges — even some major risks — in adopting cloud computing for more that so-called “edge” computing of minor applications and non-critical business systems. Notably, these include security of enterprise data that stored in the cloud, risk of lock-in to cloud platform vendors, loss of control over cloud resources run and managed by someone else, and reliability.
On the other side of the coin are some benefits that can potentially change the game for many firms that are willing to be very proactive in managing potential downside. These include access to completely different levels of scale and economics in terms of the ability to scale very rapidly and to operate IT systems more cheaply that previously possible. Easier change management of infrastructure including maintenance and upgrades (cloud vendors extensively virtualize and commoditize the underlying components to make them non-disruptive to replace and improve) as well as offering improved agility to deploy solutions and choice between vendors, particularly when cloud interoperability becomes more of a reality than it is today. Cloud computing also offers an onramp to new computing advances such as non-relational databases, new languages, and frameworks that are designed to encourage scalability and take advantage of new innovations such as modern Web identity, open supply chains, and other advances.
In fact, cloud computing holds the potential to dramatically change the businesses that adopt it, even if the technologies are only used internally. While these possibilities are only now starting to become clear, we can get a decent sense of these now:
8 ways that cloud computing will change business
- The creation of a new generation of products and services. The economics of cloud computing lets innovative companies create products that either weren’t possible before or are significantly less expensive than the competition (or just more profitable.) This part of cloud computing is an arms race and there are short windows of opportunity since competitors can often put the economic advantages of cloud computing into their product formulations fairly quickly once they see that it works for you. Where it gets interesting is that many business ideas that required prohibitive amounts of computing power, scale, or radically new business models (the aforementioned open supply chains and Global SOA) but couldn’t be implemented due to existing technical limitations or cost-effectiveness, can now be realized. Every improvement in storage, processing power, or technology enables innovations that weren’t possible before (high speed Internet, for instance, made products like YouTube possible) and cloud computing makes these opportunities unusually accessible. Smart companies will take notice.
- A new lightweight form of real-time partnerships and outsourcing with IT suppliers. Companies that did traditional outsourcing of their IT services a few years ago already know what this feels like; a large part of what used to be in-house is now being done somewhere else and changing anything is hard. But unlike traditional outsourcing of IT, cloud computing will provide agility and control that traditional outsource cannot match for the most part. Don’t like your cloud vendor? Unless you negotiated a long-term contract, you can often switch far easier than changing IT outsourcers. In fact, many cloud computing relationships consist of nothing more than a cancel-at-the-end-of-the-month commitment and corporate invoice. For many companies, this will actually be improvement over what they have now and give them choices they perhaps never had when everything required internal execution or to go through the outsourcing supplier relationship.
- A new awareness and leverage of
June 3rd, 2009
Building a vision for Government 2.0
Government 2.0 isn’t waiting for a federal mandate. Earlier this week, the nation’s first ever CIO, Vivek Kundra, urged the use of Web 2.0 approaches to address the needs of government and citizens at the Management of Change conference in Norfolk, Virginia. Kundra outlined several important areas where he believed Web 2.0 can help improve government: connecting with citizens and their ideas (social computing), routing around the horizontal and vertical silos surrounding government data (open APIs), and tapping into the potential savings of low-cost new software applications and processing capabilities (SaaS and cloud computing.)
Among the three areas, Kundra’s perception that citizens were a true peer group in the process of governing seemed to come through clearest:
“We’ve got to recognize that we can’t treat the American people as subjects but as a co-creator of ideas. We need to tap into the vast amounts of knowledge… in communities across the country. The federal government doesn’t have a monopoly on the best ideas.”
That the global, pervasive network known as the Internet can directly connect citizens with their government is obviously an idea well-aligned with Web 2.0 ideas. Not that the vision for something known as Government 2.0 is a new one. It goes back to the very beginning of the Web 2.0 discussion. But with a new administration in place in Washington and a passionate CIO that by all appearances is progressive and understands the modern IT era, the timing seems to be ripe for a remaking of government and perhaps even democracy itself.
Fixing what isn’t broken?
Our democracy is not quite 250 years old and its mechanisms have largely served us very well over the years. That we currently have representative government is for a variety of reasons, not the least of which were that the vast distances in our large country used to make wide-scale direct democracy difficult and that considerable expertise and knowledge were perceived to be required to make important government decisions. The Internet, however, with its ability to make any distance equally close and to let us research virtually anything in real-time, has seemingly erased the need to impose such constraints on how we govern ourselves.
But of course there is more to the story. The state of government today is also still very much a “we the people” vs. them, the government. There is a distance between us and our government, at least for most of us, that is reminiscent of paternal days of old when getting involved, unless it was your local assembly, was something that few people had the ability to do. Government was for people who could join it and make a career of it, and many have indeed dedicated their lives to public service. Now, however, there is the means to enable many, many more to be involved and to potentially create a government that fits us and serves us, in our time, better than it can in its present form.
We should also not forget the classic sayings that “bureaucracies exist to perpetuate themselves” and “power corrupts, and absolute power corrupts absolutely”, which are old chestnuts for a reason. The roots of these concerns occasionally need tending to as well.
In short, events of the last couple of years and vast changes in our modern society seem to urge some essential improvements upon our government, if only we had the means:
Improving Government 1.0
- More transparent and accountable. Too much government information is inaccessible from the citizens that paid to create it. Much more than just raw data or collated statistics, which is increasingly opening up already, its the very deliberations of the government machine; the decision making, who made them and why, as well as the actual actions taken, all of which are often far too closed to the governed, yet affect us so profoundly. Make no doubt about it, like Web 2.0 was to the rest of society, opening up daily activity to the daylight is a sea change and governments around the world, never very comfortable with scrutiny or criticism to begin with, will be seriously challenged in an era where their constituents have as much power as they do to communicate. It’s also true that too often the information that is intentionally kept from coming to light that is the most significant. I’m not talking here about secure or classified information; there is information that simply must be kept highly circumscribed for security reasons (though that too is often overdone). For an example of a move in the right direction, OpenSecrets.org is an excellent example of transparent and accountable government information, while Data.gov is also a good start, but only a start. Globally visible, persistent government activity is the enabler here, and Enterprise 2.0, which will be used much more internally within government at first over the next few years, is part of the answer.
- Less expensive, cumbersome, wasteful, and heavyweight. Our current government is largely a construct of the 20th century, when most of the growth and development of the federal government as well as our state and local governments took place. This is a traditional paperwork and hierarchy-driven system where, despite impressive adoption of Web 1.0 as well as numerous bright spots (some dramatically so), far too many of the cowpaths have merely been paved. The way we run our government must be reinvented for a world that has gone decidedly connected, digital, and is increasingly ready to be directly participatory. Not only can the way we interact with citizens and within government be made enormously better and more lightweight, it could cost dramatically less with the application of new technologies and social structures. And as we saw with the rise of nearly revolutionary open business models 10 years ago on the Web, engaging the greater world on the public network is often the best, easiest, and cheapest way to accomplish things, if only we have the freedom to fundamentally rethink the way we do things today. With the federal budget skyrocketing and no end in sight, dramatic means will be required to cut costs sooner rather than later, and some of the more powerful aspects of 2.0 will likely be the answer.
- Not as impersonal and imprecise. Not many people have a regular, meaningful relationship with their government other than paying their taxes and obeying the law. Most of the time, we are a government statistic instead of what we really are: living, breathing citizens. And while the debate on large vs. small government will probably never be over, a new form of government that is far more direct and personal is coming. The very nature of how citizens can connect with, engage, and gain mutual value from our government is changing because of the Internet. With 2.0, the government’s ability to provide a customized experience to each and every citizen so that the services that are provided, whatever they end up being over time, are exactly what we need, right when we need them, often powered by the rest of us. And mass customization is likely just the beginning; Facebook groups and political online communities began to help us self-organize but the legislation of the future as well as national decisions will increasingly be tailored by us and for us in a form of modern digital gerrymandering to fit us like a glove, potentially overcoming at long last the winner takes all tyranny of traditional democracy. E-mail gave us ability to reach our representatives instantly, but social tools, online community, government tools powered by collective intelligence, and participatory citizenship will change our civic lives a great deal more. In the very near future, for better or worse, our relationship with our government is almost certainly going to be closer, more personal, dynamic, and custom fit.
A quick glance at this list shows that it tends to parallel
June 1st, 2009
Twitter on your intranet: 17 microblogging tools for business
Ultimately, if you want to use the right tool for the job, you’re probably going to need a specialized microblogging platform.So you’re bitten by the Twitter bug and want to bring the social messaging experience to work in order to connect with and share information conveniently amongst your colleagues. Perhaps you’ve even obtained permission to try out microblogging in trial form on your local intranet. You sit down and begin to see how you can adopt social messaging internally. It goes slowly at first…
As a Web-based consumer application, you quickly discover that while Twitter itself is a terrific environment, it isn’t very usable yet for businesses because of it lacks a variety of capabilities needed to fully work on the local intranet (details on this below). You wonder what other options exist to bring microblogging to the workplace in a business-friendly manner. Plenty, it turns out.
As we’ll see, choosing one carefully will be key to the long-term success of your experiment.
With the recent growth of Web 2.0 tools in the workplace (to about half of all organizations today), this scenario is becoming more common. The good news is that the broad success of Twitter over the last year has led to the introduction of a whole series of business-focused microblogging applications that bring many (though not yet all) of the necessary enterprise capabilities to the microblogging world.
What exactly is microblogging?
Read the rest of this entry »
May 30th, 2009
The enterprise implications of Google Wave
Google has launched many communication services since its inception yet none of these have had such obvious business utility or attempted to reinvent the collaborative process from the ground-up.Google announced their forthcoming service known as Wave this week to widespread coverage in both the press and blogosphere.
Created by many of the same team members that developed the highly successful Google Maps, the preview of the service itself on Thursday was quite compelling, resulting in a rare standing ovation at a tech conference according to ZDNet’s own Sam Diaz. Its egalitarian and federation-friendly design is intended to create an entire open ecosystem for communication and collaboration that Google is not-so-modestly touting as the reinvention of digital interaction circa 2009.
This is clearly a tall order, but the Internet leader provides plenty of substance to back up this vision despite growing evidence that individual companies may be losing the capacity to drive the agenda for the world when it comes to establishing successful new Internet standards and technologies. While the ultimate destiny of Wave itself is far from clear, it’s both intriguing and open enough that it will likely emerge on the radar of businesses large and small when it becomes widely available later in the year.
Wave’s relevance to the enterprise might seem premature with so many of the early and current Web 2.0 applications (blogs, wikis, social networks, Twitter-style social messaging, mashups, etc.) still — often arduously — making their way into the workplace years after their inception. Though we seem to finally be hitting a tipping point with 2.0 tools at work, Wave itself seems credible enough to get on our watchlists, at least to understand the implications.
The real question is whether there are really such significant gaps in the current state of Web-based communication that we need something new like Wave. With Google’s tendency to emphasize the consumer world first and the enterprise later, it’s also valid to ask if Wave will really have much impact on businesses. Interestingly, you might be surprised at some of the answers, so let’s take a look.
Wave: A communication and collaboration mashup
Google Wave itself consists of a dynamic mix of conversation models and highly interactive document creation via the browser. Using simple, open Web technologies (Google makes much of the fact that most of Google Wave is a open set of formats and architectures that is jointly developed with the Web community) Wave combines many of the key features of e-mail, instant messaging, media sharing, and social networking into a seamless experience and data set that are eponymously known as waves. All of this is opened up to developers via the Google Wave API.
The demonstration at the introduction of Google Wave (link below) showed how users can interact in real-time, collaboratively creating structured conversations that contain rich media, instant notifications, simultaneous user editing of the conversation, and live integration with server-side resources such as spell-checking and language translation. Most interestingly, while waves are relatively self-contained and use their own types of servers and data formats, they are easy to embed elsewhere or to build extensions for, enabling virtually infinite options for distribution over the Web or within the firewall, as well as rapid integration with existing applications and data. In fact, a wave is almost a form of social glue between people and the information they care about. And as we’ll see, this has implications for the enterprise world, not only with SOA but also with social communication in general as well as Enterprise 2.0 specifically.
See Waves in action: Watch the introduction keynote at Google I/O on Thursday.
What Google has done with the Wave protocol is essentially create a new kind of social media format that is distinctively different from blogs, wikis, activity streams, RSS, or most familiar online communication models except possibly IM. Both blogs and wikis were created in the era of page-oriented Web applications and haven’t changed much since. In contrast, Google Wave is designed for real-time participation and editing of shared conversations and documents and is more akin to the simultaneous multiuser experience of Google Docs than with traditional blogs and wiki editing. Though Google is sometimes criticized for missing the social aspect of the Web, that is patently not the case with waves, which are fundamentally social in nature. Participants can be added in real-time, new conversations forked off (via private replies), social media sharing is assumed to be the norm, and connection with a user’s contextual server-side data is also a core feature including location, search, and more.
The result is stored in a persistent document known as a wave, access to which can be embedded anywhere that HTML can be embedded, whether that’s a Web page or an enterprise portal. Users can then discover and interact with the wave, joining the conversation, adding more information, etc. Google has also leveraged its investments in Google Gadgets and OpenSocial, two key technologies for spreading online services beyond the original boundaries of the sites they came from. All in all, Google Wave is a smart and well-constructed bundle of collaborative capabilities with many of the modern sensibilities we’ve come to expect in the Web 2.0 era including an acutely social nature, rapid interaction, and community-based technology.
As the original announcement post explained, to fully understand Google Wave, one should appreciate the separation of concerns between the product Google is offering and the protocols and technologies behind it, which are open to the Web community:
Google Wave has three layers: the product, the platform, and the protocol:
- The Google Wave product (available as a developer preview) is the web application people will use to access and edit waves. It’s an HTML 5 app, built on Google Web Toolkit. It includes a rich text editor and other functions like desktop drag-and-drop (which, for example, lets you drag a set of photos right into a wave).
- Google Wave can also be considered a platform with a rich set of open APIs that allow developers to embed waves in other web services, and to build new extensions that work inside waves.
- The Google Wave protocol is the underlying format for storing and the means of sharing waves, and includes the “live” concurrency control, which allows edits to be reflected instantly across users and services. The protocol is designed for open federation, such that anyone’s Wave services can interoperate with each other and with the Google Wave service. To encourage adoption of the protocol, we intend to open source the code behind Google Wave.
The key here is that Google is expecting many more front-ends for creating and editing waves, depending on the individual requirements of various entities. Google Wave is their own front-end application for doing so and using HTML 5 in their wave client shows they are planning more for
May 15th, 2009
The year of the shift to Enterprise 2.0
Traditional collaboration tools can create powerful, local information flows but little build-up of value over time.The latest data emerging on how enterprises are using Web 2.0 tools in the workplace this year is painting a picture of a sea change in the way those businesses conduct collaboration and communication amongst their workers, and to a lesser extent the rest of the world.
Intriguing new just-released reports now show that between a third and one half of businesses either already are or will be employing so-called Enterprise 2.0 tools in the workplace (blogs, wikis, and social networking/messaging) in 2009. The data also show that security concerns remain high, access is actually fairly low, compliance with mainstream enterprise data practices is poor, and some workers aren’t planning to get anywhere near them.
The bottom line: The tools have arrived. How enterprise knowledge and is created and flows within our organizations is beginning to change dramatically.
In my recent post about the return on investment (ROI) of Enterprise 2.0, I cited the most recent widely available data as of mid-2008 saying approximately a third of businesses have the tools in place. However, we know have additional, more recent datapoints that shows both the latest adoption rates as well as some of the concerns that business have with use of the social tools inside and outside their organizations:
- Nearly one in two businesses will make use of Enterprise 2.0 software in 2009. According to a new report from Forrester, despite the novelty of the technologies (only 3 years old), the percentage penetration is very high, about half of all enterprises globally. Tellingly however, actual employee access to the said tools is fairly low and few enterprises are taking a “holistic” approach and are using them in a more targeted and/or fragmented manner.
- Business use of social networking has rough parity with personal use, while a quarter of people are not planning to use the tools at all. A broad new survey of over 6,000 respondents released yesterday by TMCnet and IntelliCom Analytics shows consistent business use of the social networking tools tools across organizations of all sizes and around the globe, ranging from 35% to almost half, depending on the demographic. The survey also found that company policies around social tools also remain far behind adoption, with less than half of all organizations having official policies on use. Also, some workers are determined to be disengaged, with about 25% reporting no plans to use social networks, period.
- Concerns about the security issues with social computing is high, around 80%. A new survey from Deloitte, also released yesterday, showed that Web 2.0 and social engineering security concerns are at an all-time high. Pretexting and phishing are now widely regarded as a serious threat to most organization’s information security.
- At least 50 percent of organizations will use wikis as important work collaboration toos in 2009. This is a slightly older but new to me finding from a respected source, the Society for Information Management’s Advanced Practices Council (APC). The report notes that “with over 75% of the global assets tied up in knowledge assets, having access to increased solutions to improve collaboration productivity is a key growth factor for organizations that want to improve their innovation capacity.” The report itself is only available to members, but is summarized well here.
- Management of content types like SMS/text messages, blogs and wikis are largely off the corporate radar in 75% of organizations. The AIIM State of ECM Report for 2009 says this issue (lack of indexing and archiving of these vital information flows) is a major management risk. It’s also a terrible and unnecessary loss for most organizations.
Proactive organizations: Avoid disruption while managing risk and accessing benefits
While the challenges of taking a business social are many and varied, one critical underlying issue that’s become increasingly clear that businesses need to strike the right balance between the tools they now have for communication and collaboration. A major change has taken place in many organizations over the last year and so there is imbalance and uncertain about how to best use the resources at hand.
To be clear, social tools aren’t the right answer for
April 18th, 2009
Google's cloud gets ready for the enterprise
Last week’s announcement of Java support for Google App Engine (GAE), along with a host of new features aim specifically at businesses, served to reconfirm the Internet giant’s interest in providing enterprises with its evolving cloud computing capabilities. So what’s new and what’s missing in GAE for enterprises that are looking to try out the cloud?
These additions move Google much closer to the enterprise space than it was previously, though there is still work to do.For its part, the enterprise software market has so far remained fairly resistant to Google’s offerings, which range from search to SaaS products, at least compared to the uptake in software from established enterprise leaders such as Microsoft, IBM, Oracle, and SAP.
But today’s increasingly broad interest in cloud computing may provide Google with an ideal opening. That is, if they can successfully deliver their unique strengths in the technical and economic underpinnings of networked computing in a form businesses find compelling for cutting costs, becoming more agile, and transitioning successfully to the next generation of computing.
The good news for Google: Of the big four enterprise firms mentioned above, only Microsoft currently has a credible cloud computing offering heading to the market with Azure, though IBM and Oracle are certain to follow shortly. Thus there is a clear opening for Google if it can offer businesses what they really need in the cloud before the leading enterprise software firms manage to arrive. It won’t be easy; the network is Google’s turf and it is clear that the platform wars have indeed returned, as I discussed a few weeks ago.
The original GAE was primarily a consumer Web application-focused cloud computing offering at the outset and was concerned about performance and high scalability much more than it cared about a robust feature set. It took cloud computing minimalism to a new level, though again, that was also about making it run quickly. GAE also required that you adopt its choices in programming language (Python), database (proprietary datastore), and request/response application model. And while it’s not giving these up, the latest additions promise to bring many of the capabilities and technologies that enterprises will require and open up Google’s nascent cloud computing platform for a much broader range of uses. As we’ll see, these additions move Google much closer to the enterprise space than it was previously, though there is still clearly work to do.
Let’s take a look at exactly what the new GAE offers from an enterprise perspective and then look at what
April 12th, 2009
Determining the ROI of Enterprise 2.0
Despite recent statistics showing that Enterprise 2.0 tools have spread to about a third of businesses globally, there remain ongoing questions being asked in the enterprise software community about the real returns that they provide to businesses that deploy them.Many IT solutions create value only after traveling through an indirect chain of cause and effect. Certainly blogs, wikis, and social networks are popular on public networks, but does that translate to meaningful bottom line value to organizations? In other words, is Enterprise 2.0 truly strategic in the unique way that information technology can so often be?
This is a key question since actual penetration of these tools is almost certainly lower than the one third figure I mention above. Most organizations today, even the ones where the applications are available to employees currently, are not yet exhorting workers to adopt these tools en masse despite a suite of compelling arguments and a growing set of case studies. Even impressive citations such as the recent TransUnion Enterprise 2.0 case study that claims an eye-opening 50x return on investment (using the most basic ROI formula for calculating returns) are not yet initiating widespread inquiry.
Instead, while we’re seeing widespread interest and acceptance of Enterprise 2.0 in the workplace, there is still mostly a wait-and-see attitude amongst IT managers and business leaders at the moment. The reasons for this seem to fall into three general categories:
One is an broad wariness of a new horizontal information technology approach that purports to solve so many problems and will overlap extensively with existing solutions from e-mail and instant messaging to content/document management and knowledge management systems, to name just a few. Other related concerns are feelings that workers already have a lot of software to use today, that the tools already exist in the organization (see my Enterprise 2.0 and SharePoint discussion a few weeks ago), or that the available tools aren’t fully enterprise-ready yet.
A second set of issues is related to corporate culture and its fundamentally hierarchical nature, which seems anathema to the flattened, highly social nature of Web 2.0 in the enterprise. At this point, it’s becoming increasingly clear that in some tightly controlled, top-down organizations, culture is indeed an impediment to the use of emergent, social computing. Fortunately, there is now enough evidence visible in current case studies that many industries can indeed benefit from Enterprise 2.0.
The last issue is one that has bedeviled software and its strategic application to business since the very beginning, namely the
A veteran of software development, Dion Hinchcliffe has been working for two decades with leading-edge methods to accelerate project schedules and raise the bar for software quality. See his full profile and disclosure of his industry affiliations.
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