Category: Radical Decentralization
November 24th, 2009
The cloud computing battleground takes shape. Will it be winner-take-all?
You can bet that the industry will be playing for keeps yet businesses can increasingly reap real bottom line benefits. This year has been one of relatively grand alliances between emerging cloud computing vendors as they fill holes in their capabilities and try to create appealing one-stop enterprise cloud services.
We’ve seen major announcements so far from IBM and Juniper, Cisco/EMC/VMware, and most recently BMC and Salesforce. There are many other smaller initiatives that have formed as well and all of these efforts underscore several key points for those businesses trying to understand the real strategic benefits of the cloud including cost, agility, and scalability:
First, there is no single vendor that can today provide an end-to-end cloud computing solution for businesses, hence the reason for all the alliances. The cloud computing stack (facilities, bandwidth, compute power, storage, operations, management, etc.) is deep and comprises not only most of the elements that you would find in a corporate data center but a great deal more besides. This includes R&D, product development, support capabilities, developer networks, and capabilities such as compliance monitoring and additional layers of security and governance.
Second, it’s unclear how the cloud computing vendor landscape is going to shape up. Everyone is in early days yet with only Amazon with anything approaching operational maturity, with Google and Force.com vying for the lower end of the enterprise. Making long-term decisions isn’t a good idea in this environment, though using cloud computing tactically does make good sense at this point, especially if you’re experimenting with private cloud technology that will likely translate well to public clouds, such as Eucalyptus.
Third, and perhaps most importantly, standards for cloud computing are just emerging and only cover today an incomplete portion of the cloud computing stack. This means scenarios where you can seamlessly move your cloud computing workloads from your private cloud and public clouds of choice are fairly far off still, unless you are willing to commit to one of the alliances that will enable it with proprietary approaches. This is the core scenario that businesses are interested in as dabble with cloud technology internally today and then want to move outside to get cost and quality advantages as they get more confidence in the cloud. But it’s one that is currently rife with lock-in and those that remember the platform wars of the 90s are wise to recall.
Related: Cloud computing and the return of the platform wars
Let’s also not forget the economics of online services, which apply generally to any cloud computing service that is self-provisioning (meaning users can sign-up and begin using it immediately). Infoworld’s Zack Urlocker pointed out last week that Tim O’Reilly’s discussion of the tendency of the end-game scenario for a given online segment to be winner-takes-all almost certainly applies to cloud computing as well:
While the benefits of cloud computing are enormous in terms of reducing costs, increasing utilization, and providing scalability, there’s a significant risk of lock-in. Given the early state of cloud technology, there simply aren’t adequate standards to offset this.
My fellow ZDNet colleague Phil Wainewright recently pointed out what I like to call the
October 25th, 2009
Are the iPhone and social networks making the classic Web and intranet obsolete?
Many as-yet-unforeseen new developments will create enormous societal, cultural, and business opportunities over the next decade, just as long as we don’t make irreversible decisions down the wrong path. There’s been an important and relatively sudden change taking place over the last couple of years in the way that we interact with the Web. While direct access or search activity has been (and still is) the most common way that we access the content and applications of the Web, new ways have been rapidly growing and competing with how we work online, both at home and at work.
Thus these new models, exemplified by social networking sites like Facebook or mobile apps on platforms like the iPhone, Palm’s new webOS, and Android, will ultimately herald a change in the way that we work with our IT systems in the enterprise.
The once relatively unified world of the Internet, with a few major top-level types of access directly connected to it (browser, e-mail, IRC client, newsreader, etc.) and a few key sub-apps such as search that virtually everyone online used have been extended — as well as fragmented — into popular new channels into which users are now rapidly moving en masse.
That’s not to say that direct usage of the Internet (loading up and using sites and apps via the traditional Web browser) is going away. It’s still far and away the most common way to interact with the Web today and will likely be that way for quite some time, if not forever.
But real shifts in both online platform alternatives and in the mobile market are beginning to usher in foundational new usage patterns by users. These new channels — of which the latest generation of mobile apps and social networking platforms, which are often tightly integrated with the Web but are not truly one with it, are just the two biggest examples — demonstrate what is probably a generational transformation of the vital border between us and the Internet.
And this is the crux of the point: Where the point of user attention and interaction resides and who controls it is one of the most important conversations between us and our “preferred intermediaries”, a fancy term for who we like to work with to interact with the Web. This in turn has significant implications for enterprise intranets, our often clunky yet essential local “Web” in our organizations.
Why are these changes happening? There are at least two major reasons:
The first is that user attention on the Web has been moving to social networks, best exhibited by Facebook, which has been the single largest gainer of online usage in the last 3 years, over all other applications. Even e-mail has been eclipsed in many markets and only search remains more dominant. Social networks, which are platforms in their own right — just like the Web, but also have touchpoints well outside of it — have come into their own as competing yet codependent platforms that sprawl across the Internet, telecommunications infrastructure, mobile devices, and desktop computers.
The second reason is
September 6th, 2009
How the Web OS has begun to reshape IT and business
These days in the halls of IT departments around the world there is a growing realization that the next wave of outsourcing, things like cloud computing and crowdsourcing, are going to require responses that will forever change the trajectory of their current relationship with the business, or finally cause them to be relegated as a primarily administrative, keep-the-lights-on function.
IT is going to either have to get more strategic to the business or get out of the way. Businesses too must grow a Web DNA. The proximal cause of this seems to be the growing domination of the global network that surrounds all businesses today: The Web. If you’ve read my writings here since 2006 you largely know what’s happening: Today’s highly evolved Web has grown far beyond its original roots in content distribution and communication. It has become a fully fledged platform for media (TV, movies, music, newspapers, gaming, etc. have been strongly disrupted by the Web and now largely reside there) as well as more strategic pursuits. Probably most significantly is computing in all its many forms. This ranges from low-level services such as raw compute power and storage to social computing, semantics, and collective intelligence.
But the advent of a Web OS is certainly not just an IT story. It’s also — and really mostly — a business story. Those who are trying to track the so-called “big shifts” in the 21st century, thinkers like John Hagel, are attempting to pin down the specific changes taking place in the world today. John recently noted that “we are moving from a relatively stable business environment to one characterized by rapid rates of change with ever more disruptions generating increasing uncertainty and unpredictability“. In this way, routinely transforming instability and rapid change from a threat (which it is to most businesses today) into opportunity is a core skill that organizations increasingly must be able to cultivate.
That much of the pace of change today is driven by the modern world’s pervasive and instant global flows of knowledge is largely due to influence of the Web and its billions of two-way touchpoints with nearly a third of the world’s population (including practically all of the developed world). In addition to ultra fast feedback loops that drive real-time action/response scenarios in the marketplace, the Web has also become an incredibly efficient, inexpensive, and easy-to-use delivery system for just about anything that an interface can be wrapped around.
This has created a new form of leverage in terms of the ability to change and adapt by tapping rapidly and deeply into on-demand resources (be they computing, data, or even people and ideas) in virtually real-time. A recent article in the Wall Street Journal noted that because of modern technology, particularly the Web, business “initiatives that used to take months and megabucks to coordinate and launch can often be started in seconds for cents.” Clearly, this is a brave new world, even if it’s one that’s still happening more on the edge than in the core of businesses today.
WOA = Web-Oriented Architecture
CC/SRR = Creative Commons/Some Rights Reserved
AOP = Architectures of Participation
It’s a world where scarcity practically doesn’t exist and access to abundance is virtually free. It’s also true that the business models of the Web OS are only emerging as well. While monetization is prevalent for those consuming or participating in the Web OS, there is also a real and ongoing concern that it’s also the modern version of sharecropping. That traditional management approaches often don’t understand the nuances of these issues and aren’t designed to take advantage of this modern economic landscape, much less compete with a growing number of businesses that do, is a whole side story I’ll explore when I’m able. But it’s one in which the Web OS is increasingly forcing a serious reevaluation of modern business practices as well as the very notion of how an opportunity is defined, identified, and targeted.
What is the Web OS?
While there are multiple ways of looking at the Web as an operating system, from cloud environments that mimic a desktop operating system to sets of services packaged together and bundled as an individual product to companies, the largest — and the most significant — is the idea of an overarching and emergent Internet operating system. The data, services, and even communities of the Web are now programmatic and can be incorporated and remixed into any other business or product at will. The concept of a Web OS isn’t new. But its arrival on the scene in compelling form with serious impact to the enterprise is.
Over the last few years, as open APIs, social networking platforms, cloud computing, open identity services, sensor-driven databases (such as with GPS and OpenStreetMap), or even people (example: Amazon’s Mechanical Turk) have created open ecosystems in which anyone can participate, including business, both to contribute and to consume. The Web has become the ultimate outsourcing platform and one that is incredibly agile too, combined with economies of scale that are very hard to match. There are challenges too: Unpredictabilities and risks exist that must be dealt with both routinely and successfully.
But to perform well in this changing business environment organizations have to
August 11th, 2009
Pragmatic new models for enterprise architecture take shape
The best outcomes result naturally from self-organizing thought leaders in an organization that seek each other out and collaborate on shared solutions to their problems.Hear the words “enterprise architecture” and many people will turn away automatically. It’s not that they aren’t aware that technology drives so much of the modern world, they just think it doesn’t apply to what they do. The famous IT/business divide is too often kept this way because of mutual incomprehension, not-invented-here thinking, and apparently incompatible mindsets. However, this is beginning to change.
High technology continues to relentlessly pervade practically every aspect of today’s business world, prescribing what is potentially possible and often conferring enormous leverage when harnessed fully. But it has been the advent of the Web 2.0 era and its inexorable movement (some might even say infiltration) into the workplace that is making traditional IT — and the master planning version of it, enterprise architecture — an entirely new beast by popularizing simple, egalitarian tools and approaches that can be understood and applied more easily and quickly by a broad audience across most organizations.
Increasingly, in some IT departments and business units around the world, a closer new relationship is forming in which technology is deeply interwoven into continuous joint business processes of creation, change, and adaptation. Like so many grassroots tech culture movements, this one doesn’t yet have a formal name, but increasingly some are calling it emergent architecture.
The first seeds of this change began to be felt with advent of agile development processes a few years ago along with the subsequent rise of software mashups, and the popularity of user-distributable widgets, badges, and gadgets. These technology approaches combined with emerging business trends such as tacit interactions and pull-based systems driven from with bottom-up within organizations, particularly when co-existing with social computing and Enterprise 2.0.
The result: A new environment for creating technology-driven business solutions using different, more open communication channels with richer information and ground truth as well as significantly more adaptive technology elements often strongly influenced by the Web 2.0 world.
Meeting in the middle: Emergent Architecture
In recent years enterprise architecture has been moving from a discipline that provides top-down, a priori technology blueprints to the business side to one that articulates key, strategic possibilities and only the most critical high-level constraints (such as security standards) and then operates as a conductor, promoter, problem solver, and evangelist across the organization through the vehicle of a cohesive community to co-develop needed solutions.
When I wrote that most organizations were badly in need of a technology and software process “angioplasty” a few years ago, I highlighted the trends that will increasingly drive the agenda for new initiatives and projects when it comes to the strategic application of technology to business:
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration (internal or external) over contract negotiation
- Responding to change over following a plan
This is more true than it’s ever been and has been contributing to a growing discontinuity in the way that enterprise architecture will be conducted in the future. Going away are overly formal procedures, detailed technology prescriptions, complex software frameworks, and dreaded compliance checks. Replacing them are highly collaborative, adaptive processes, technology opportunism, simple (frequently Web-oriented) technologies, and dynamic — even spontaneous responses — to organizational and marketplace needs.
Enterprise architects of the near future will still dispense clear guidance that carries the requirements of the entire organization with it, but it will be appropriately broad and EAs will actively help tailor it to local needs across the organization. Self-service IT will become much more common as workers are comfortable using today’s extremely easy-to-use, adaptive, and flexible tools, many of them using Web 2.0 ideas such as simple, open architectures and malleable pieces and parts, especially open APIs, and even new, open business models such as crowdsourcing and community-based involvement.
While organizations such as Gartner are just beginning to map this trend, there’s increasingly little doubt that the infamous chasm that often disconnects IT and business is being crossed in many quarters by business users unafraid of today’s populist technologies combined with IT practitioners that strongly desire to solve immediate and important business problems. That today’s collaborative and communication technologies in the workplace are much more open, social and collaborative than they were even a couple of years ago are likely to be
August 5th, 2009
The future of enterprise data in a radically open and Web-based world
Like many aspects of applying Web 2.0 to the enterprise, the challenge is both in adapting the business and its thinking while successfully leveraging the latest delivery methods.In recent months, another significant front in the growing trend of open data has emerged, and with it a growing focus on what businesses can do with that most precious asset they’ve developed at enormous expense over the years: their data.
The advent of a new administration in the United States, which has been pushing to open U.S. government databases en masse, and a proliferation of open data initiatives in other countries — perhaps most notably in the U.K. — has put the often behind-the-times government world into the forefront of open data with such sites as data.gov, which the nation’s CIO Vivek Kundra has promised will have tens of thousands of feeds this year alone.
Open data holds up the promise of instant connectivity between arbitrary numbers of ad hoc partners while at the same time reducing integration costs, improving transparency, harnessing external innovation, and even (perhaps especially) creating entirely new and significant business models. I sometimes refer to these as “open supply chains“, and the term is highly descriptive when it comes to the potential for open data models to make cloud computing safe and interoperable, help journalists to do their jobs better, or create multi-million dollar new lines of business, such as Amazon’s well-known Web Services division.
All of this activity underscores the relatively lackluster track record of traditional businesses in understanding and managing the opportunities, risks, and rewards of open data. Despite some significant success stories there is an apparent — and perhaps widening — digital divide between the classical world of business and the online world.
Even the considerable investments that most large organizations have made in IT system interoperability and integration, particularly with such popular approaches such as service-oriented architecture, have produced famously lackluster results. My good friend David Linthicum, a leading SOA expert, has gone as far as saying that the lack of focus on data is a major part of the problem.
Taking a product focus instead of a project focus
For those that have embarked down the open data road to see where it leads, one thing seems to be clear: Exposing data — whether it is internally within an organization or outside to partners, or even the whole world — is a way of thinking about the very nature of the business, more than it is about achieving a one-off end goal. This is because open data seems to create immediate, close, and powerful relationships between the publisher and the consumer of the data, and leads to a series of unexpected outcomes. These relationships can be created with extreme ease with today’s methods over networks like the Web and though often speculative, a good subset of them form rapidly into important ones that can draw in new customers, identify new innovations, head off competitors, or just generate revenue. Witness Twitter and its hundreds of partners accessing the platform (and its enormous audience) through its API or Netflix and its impressively successful prize contest that opened up data selectively to dozens of high-value self-selected contributors as a leading example.
Read about emerging open business methods for more open data success stories.
In other words, in order to be competitive with the next generation of businesses, most organizations are going to have to look at open data for reasons involving efficiency, competitiveness, and long term health, particularly as open data enters their particular industry.
Enterprise open data options: Leveraging today’s Web best practices
But it’s still not clear to businesses the options they have and how they need to think about opening up strategic sets of data for reuse internally, with their partners, and indeed, with the rest of the world. Far from being a story about IT plumbing, open data is a way of doing business, forging strong relationships over the network with other organizations, customers, and potential customers. However, the success of the Web itself as a dominant global platform has made it the de facto channel for providing open data, even the networks internally to most businesses heavily use Web technology for their applications, intranet, and interaction with the rest of the world. This means opening data generally means opening it up over the Internet using Web technology and approaches.
So critically, being successful with enterprise open data requires
July 27th, 2009
Ten top issues in adopting enterprise social computing
Last week ZDNet’s Larry Dignan wrote an insightful post that analyzed the recent report from Charlene Li and the Altimeter Group/Wetpaint about early data that seems to show an intriguing correlation between social media engagement and corporate financial performance. The key finding was this:
To be specific, companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference.
This report (details and copy here) is encouraging news for those embarking on applying social software to various parts of their business. But, as Larry points out, these numbers can be interpreted a number of ways. Many organizations would rather wait for best practices to solidify before climbing very far up the social computing adoption curve. So while there’s increasingly less question that there is genuine ROI in social media, the question still remains whether it can directly drive fundamental, bottom line performance in the average organization today.
This highlights a key conversational thread that came out of last month’s Enterprise 2.0 conference: Does social computing really deliver significantly better business performance? Or is it merely a minor incremental improvement?
Unfortunately, despite an growing body of encouraging case studies, evidence, and research, the jury is still out on total impact social computing will have on businesses. This return will even vary widely for many organizations for a number of reasons will explore below. At present, the uncertainty is simply because that there are not enough organizations that have incorporated social computing approaches (which encompasses the full range of social software as applied to business that include social networks and Enterprise 2.0 to things like crowdsourcing and social CRM) across their lines of business for us to get a complete enough picture. Even the ones that have done it, haven’t done it long enough to see what the results actually are.
Instead, as companies begin pilots and initiatives, we are seeing the first wave of issues cropping up as the larger cultural, IT, and business impact of social tools begins to be felt.
Sidebar: What is social computing? It’s the use of social software within and between organizations and any interested parties such as employees, customers, and partners. Social computing, as explained here, can usher in significant large-scale shifts in where productive forces and innovation come from. Organizations will all adopt enterprise social computing tools in slightly different ways and will generally proceed from ad hoc usage, often by applying widely available consumer tools at first, to more evolved open business models. As of this year, about half of all large organizations now have social computing tools deployed in some manner.
The following is a summary of the issues I’m hearing from practitioners in the field as well as from our clients and industry contacts.
While these ten issues with social computing are the ones I hear about most, your mileage will almost certainly vary. However, I believe them to be representative of where we are in 2009. Please note that these are by no means insurmountable obstacles and merely represent a good cross section of what early adopters typically encounter as they begin climbing the social computing adoption curve (see diagram above).
Ten top issues with social computing in business
- Lack of social media literacy amongst workers. Anecdotally, the farther a business is from the technology industry, the less likely that line workers will be familiar with the latest software innovations. Those who haven’t been maintaining blogs, updating wiki sites, using social networks, sharing information socially, etc. will require more education than those who do. Even the basics of netiquette as well as key techniques to get the most from social computing platforms such as encouraging the building of links between data, tagging information, or establishing weak ties over the network are often poorly understood even by frequent users of social computing tools. In short, social computing requires some literacy efforts in most organizations to achieve effectiveness, just like personal computing skills did a few decades ago.
- A perception that social tools won’t work well in a particular industry. There is often an assumption in many specialized industries — such as medicine or manufacturing, just to cite two random examples — that social tools won’t
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 provides intrinsic economic or technical benefits in a situated setting. This is because a significant part of building a robust and successful cloud computing environment is creating a complete and compelling finished solution that includes 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
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
An internationally recognized enterprise architect and business strategist, Dion Hinchcliffe has been working for two decades with leading-edge methods to accelerate project schedules and raise the bar for software quality. You can follow Dion on Twitter.
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