Showing posts with label cloud computing. Show all posts
Showing posts with label cloud computing. Show all posts

Monday, May 2, 2011

AP professionals see benefits to cloud computing

By Mark Brousseau

Accounts payable (AP) professionals see "minimal IT involvement" as the biggest benefit of using Software-as-a-Service (SaaS) or cloud computing for AP processing, according the findings of the 2011 AP Automation Study by International Accounts Payable Professionals. Nineteen percent of survey respondents identified "no capital investment" as the biggest benefit of cloud computing or SaaS, while 17.5 percent cited "lower cost per invoice" and 14.3 percent identified "fast start-up."

Some 12.7 percent of respondents identified "no software or hardware " as the biggest benefit.

Randy Davis, vice president of sales and marketing operations for eGistics isn't surprised that these benefits would rank high in the minds of AP staff. "Cloud offerings have always touted minimal IT involvement, no capital investment, fast deployment, and no on-site software as benefits," he notes.

But Davis believes that the ability of cloud-based document processing solutions to remove paper management from AP processing could deliver even greater benefits to AP professionals. "Today's cloud-based AP solutions significantly improve on key usability factors such as electronic capture, structured indexing, search and retrieval, work allocation, data updates and corrections, and audit and tracking -- things that directly contribute to the smooth operation of an AP department," Davis says.

"eGistics believes that business users will increasingly appreciate and accept the benefits of SaaS and cloud computing for critical tasks such as AP processing and management, and that such benefits will soon be taken for granted. At the end of the day, AP departments are looking for solutions that help them do their jobs faster, more accurately and with better accountability," Davis concludes.

What do you think?

Thursday, March 24, 2011

AIIM/info360 lint in the cranial vent

By Steve Weissman of the Holly Group

After spending more than three days at the AIIM Conference/Info360 event in Washington, D.C., my brain is clogged with all kinds of interesting nuggets.

Here are but a few of the more intriguing story lines that stuck following my ECM Practitioner class, my series of show-floor briefings, and my numerous in-the-corridor-and-press-room perspective checks with buyers, vendors, and integrator/reseller types:

Misuse/overuse of the word “new”
This itself isn’t, well, new in terms of vendor marketing, but it kept surfacing in places where the principals really ought to have known better. The lesson is to ask, “In what way is this new?” when you hear the word.

Is the feature/product/capability truly innovative? Never before seen in this particular market space? Never before offered by this particular vendor? I found much of what was touted as “new” either to be old client/server development techniques wrapped in ECM/BPM clothes or long-standard features finally being offered by the vendor in question. So as they said in ancient Rome, caveat emptor.

Emerging stratification in the world of mobility
All the talk of customer engagement intersected with the drive to enhance the mobile experience to surface an important distinction between enabling browser-based smartphone or tablet access to content and process activities on the one hand, and fielding true mobile apps for the purpose on the other.

The separation of these two tiers is still nascent, but the long-term ramifications are significant since they speak to new ways to think about information architecture, content structure, usability, security, and privacy. The use of “m.” sites and formatting is just the beginning.

Tendency to ignore the past (and thus the risk of being condemned to repeat it)
Specifically, is cloud computing a true innovation or merely a viable hosting alternative with its roots in 1970s timesharing and 1990s ASPs? (See prior point regarding new.)

To be sure, the underlying technology is hugely more flexible and accessible today than it was then, but the takeaway here isn’t one of semantics and definition – rather, it has to do with cutting away the hype, focusing on the practical, and, especially, looking to preceding market models and technology trends for guidance.

Black/white vs. shades of gray
Perhaps it’s a reflection of how commodity so much of the technology has become, and thus how competitive the market is today. But there was an awful lot of talk about good tools vs. bad, all users vs. none wanting certain features, old technologies being dead vs. new ones being saviors.

Well, the world isn’t a binary place. Tools that do x vs. y aren’t better of worse; they’re merely different, and depending upon what you need to accomplish, they may be absolutely perfect for you. Just as, say, and “old” technology like microfiche is very much alive, and perhaps critical for archivists needing to think in terms of centuries-long retention schedules.

Conclusion
My mother-in-law used to say, “Remember who you are!” when the kids would go out, and so you should remember who you are when you attend conferences and exhibitions. There’ll be plenty that will stick in your brain, and you’ll best make sense of it only by using your own organization and needs as the touchstone.

What do you think?

Steve Weissman, ECMp, ECMs, BPMp, can be reached at 617-383-4655.

Monday, January 17, 2011

Changing the CFO’s Perception of AP

By R. Edwin Pearce

Historically, if you asked a CFO to tell you the first thing that popped into their mind when you mention accounts payable (AP) processing, they likely would have responded with some variation of “cost center.” The fact is, as a percentage of revenue, the costs associated with AP processing typically represent a small blip on the radar of most companies. But as companies have tightened their spending as a result of the recent economic downturn, that blip is now a significant opportunity.

More than 75 percent of AP departments report into the CFO, according to various studies. With CFOs keenly interested in cost containment and improved cash management, AP leaders would be well served to find ways to deliver strategic benefits to the organization. Notably, 56 percent of CFOs believe AP represents a more strategic opportunity for improvements than it did two years ago.

One reason CFOs are changing their tune on AP is that they are seeking ways to avoid further layoffs, while weathering the recession. To this end, most are tightening controls over employee spending and placing greater emphasis on measuring and monitoring the company’s financial health.

These types of activities are clearly in the AP department’s wheelhouse.

CFOs are looking past the traditional paper-encumbered stereotype of AP and focusing more closely on the tremendous amount of financial data that flows through AP. From this perspective, they see AP as a means to improving working capital management, reducing supply chain risk, and greatly reducing the incidence of fraud. Most importantly, CFOs recognize that AP can help a company improve its cash position by extending days payables outstanding, avoiding late payments, capturing early-pay and volume discounts, and ensuring that payments and orders are compliant with contracts.

At many companies, AP no longer is merely a back-office transaction function where efficiency and low cost of operations are the only requisites for success; AP processes are being more tightly linked with treasury functions to help maximize working capital management. This is part of an overall move to align core processes across business functions to support corporate strategic initiatives.

While this increased corporate standing is good news for AP departments, they must also be ready for CFOs to more closely assess their performance based on key criteria such as costs, service delivery, error rates, timeliness of responses to inquiries, compliance, and vendor relationships.

This makes it imperative that AP departments continue their automation initiatives. Not only does automation help AP departments improve on-time payment performance, reduce errors, slash costs and enable greater visibility into financial data. But it also delivers the quantifiable data on process performance that CFOs will require as AP evolves into more strategic partner for their organization.

R. Edwin Pearce is executive vice president of sales and corporate development for eGistics, Inc., a provider of e-document solutions. He can be reached at 214-256-4607 or via epearce@egisticsinc.com.

Wednesday, December 8, 2010

Cloud computing's "green" credentials

By R. Edwin Pearce

The market for cloud computing has expanded quickly over the past few years, largely driven by its ability to deliver impressive economic benefits to cash-strapped organizations. But a new study finds that not only can cloud computing keep operations in the black, it also can help them be "green."

Pike Research reports that the growth of cloud computing will have important implications for both energy consumption and greenhouse gas (GHG) emissions. In fact, by 2020, cloud computing will lead to a 38 percent reduction in worldwide data center energy expenditures, compared to a business-as-usual scenario, Pike Research reports.

“The growth of cloud computing will have a very significant positive effect on data center energy consumption,” says Pike Research Senior Analyst Eric Woods. “Few, if any, clean technologies have the capability to reduce energy expenditures and GHG production with so little business disruption. Software-as-a-service, infrastructure-as-a-service, and platform-as-a-service are all inherently more efficient models than conventional alternatives, and their adoption will be one of the largest contributing factors to the greening of enterprise IT.”

To be sure, cloud computing's "green" credentials and environmental impact aren't the top reasons for organizations to deploy the technology. But they are certainly incremental benefits, particularly for organizations that list environmental sustainability among their strategic objectives.

R. Edwin Pearce is executive vice president of sales and corporate development for eGistics, Inc., a leading provider of hosted document management solutions. Pearce can be reached at 214-256-4607 or via epearce@egisticsinc.com.

Monday, December 6, 2010

Cloud computing grows up

By R. Edwin Pearce

The next year will be big for cloud computing, with the technology transitioning from “early adopter status” into a mainstream platform for IT. That’s according to IDC, a leading research and advisory firm, which ranked the maturation of cloud computing among its top IT predictions for 2011.

IDC predicts that spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011, up 30 percent from 2010, as organizations move a wider range of business applications into the cloud. Small and medium-sized business cloud use will surge in 2011, with adoption of some cloud resources topping 33 percent among U.S. midsize firms by year’s end.

“[Cloud computing] can no longer be invested in, or managed, as sandbox efforts around the edges of the market. Instead, they are rapidly becoming the market itself and must be addressed accordingly,” warns Frank Gens, senior vice president and chief analyst at Framingham, MA-based IDC.

Gens is exactly right. Organizations of all sizes are taking a hard look at cloud-based solutions as a way to avoid the hefty capital investments and ongoing maintenance and upgrade costs associated with traditional on-premise solutions, and to ensure their IT infrastructure remains up-to-date.

In addition to changing the way organizations access business applications, the growth of cloud computing also will bring mobile banking and payments one step closer to reality, IDC predicts. But this also is true of mobile applications in other industries, most notably healthcare and insurance.

What do you think?

R. Edwin Pearce is executive vice president of sales and corporate development at eGistics, Inc. (www.egisticsinc.com), a leading provider of hosted solutions for payments and document automation. He can be reached at 214-256-4607 or via e-mail at epearce@egisticsinc.com.

Wednesday, December 1, 2010

Enterprises will place emphasis on vendor integration in 2011

Posted by Mark Brousseau

As organizations become increasingly decentralized, 2011 will see enterprises identifying technology suppliers that can integrate effectively with other — often competing — solutions, according to new research released by analyst firm Real Story Group (formerly CMS Watch).

"Going into 2011, our research customers are indicating an unprecedented aversion to vendor lock-in," said Real Story Group President and Principal Analyst, Tony Byrne. "In the real world, enterprises have to support multiple devices, multiple internal portals, multiple web delivery channels, underutilized SharePoint deployments, and the lingering primacy of e-mail as a corporate information management platform — so vendors will have to adapt."

Real Story Group provided 12 other technology predictions for 2011:

1. "Bring Your Own Device" policies will push HTML5 adoption for mobile access to enterprise applications
2. Content-rich customers will rebel against Web CMS marketing spins
3. Microsoft will turn to partners to fix SharePoint shortcomings
4. The top end of the Web CMS market will be redefined
5. Intranet community managers will adopt public social functionality
6. SaaS vendors will try to separate from "The Cloud"
7. Buyers will have a greater acceptance of newer standards
8. Case Management will become the leading application from high-end ECM vendors
9. Digital Asset Management vendors will greatly expand video management capabilities
10. E-mail will remain the world's de-facto enterprise document repository and workflow system
11. Portal software will increasingly produce services for other portals
12. Specialized talent around managing content will begin to migrate out of large corporations

What do you think?

Wednesday, November 17, 2010

7 Major Projects CIOs Should Consider

Posted by Mark Brousseau

With 2011 predicted to be the year when the IT industry will reach nearly $3.5 trillion in revenue and show long-term growth for the next five years, Gartner analysts say there are seven business and IT issues that warrant the greatest attention and demand the clearest strategies for the future.

“We are increasingly living, playing and working in a digital world where people will have no alternatives but to become ‘more digital’ with the assets they have available,” said Stephen Prentice, vice president and Gartner Fellow. “In 2012, the Internet will be 75 times larger than it was in 2002, and if Facebook was a country, it would be the third largest in the world (after China and India). Device and data proliferation is also a reality that cannot be escaped. Smart devices will rise from 60 billion devices in 2010 to more than 200 billion in 2020.”

“Technology is no longer the preserve of the CIO,” said Ken McGee, vice president and Gartner Fellow. “It has become everyone’s property and everyone’s issue.”

With the IT industry on track to show a compound annual growth rate (CAGR) of 4 percent for the next five years Gartner has identified seven business and IT issues that CIOs should act on during the next three years. “CIOs will need to begin implementing these technologies within three years to meet the six year predictions,” McGee said. The seven issues include:

IT/OT Alignment- Inadequate software management of operational technology (OT) systems will result in a major business failure of a top Global 100 company by 2013.

Executives are realizing there are cost savings and management efficiencies to be gained by integrating the IT and OT groups together. Although efforts to integrate groups are challenging, benefits from streamlined budgets, coordinated planning, consistent technology architectural decisions and maximizing technology purchasing power make for extremely compelling cases for IT and OT group integration.

Business Gets Social -Through 2015, 80 percent of organizations will lack a coherent approach for dealing with information from the collective.

Today, social media is changing the way business is conducted. “Understanding the power of communities, the multiple personas of their members expectations, their aspirations and how to interact with them will become essential skills for business in the 21st century,” said McGee. “However, vast sums of money and enormous amounts of time will be spent during this decade and beyond to discover how IT and business leaders best capitalize on the growing spread, power and influence of social networks.”

Pattern-Based Strategy- Through 2015, pattern-seeking technology will be the fastest-growing intelligence investment among the most successful Global 2000.

A Pattern-Based Strategy provides a framework to proactively seek, model and adapt to leading indicators, often-termed "weak" signals that form patterns in the marketplace. It will allow IT leaders to seek-out patterns amidst the burgeoning information sources and model future possibilities. “We have found that senior business and IT leaders see lack of information shareability as a barrier to growth,” Prentice said.

Cloud Computing- By 2016, all Global 2000 companies will use public cloud services.

Cloud computing represents a shift in the relationship between the providers and consumers of IT-based solutions. It constitutes the basis of a discontinuity that amounts to a new opportunity to shape the relationship between those who use IT services and those who sell them. Gartner said worldwide cloud services revenue (including public and private services) is forecast to reach $148.8 billion in 2014.

Context-Aware Computing- By 2016, one-third of worldwide mobile consumer marketing will be context-awareness-based.

Context-aware computing will foster people to be more digital with the assets they have available. Context-aware computing is taking advantage of location and time and is a new era of augmented reality. More than $150 billion of global telecom spending will shift from services to applications by 2012, and the global market for context-aware services will amount to $215 billion.

“Unlocking this potential will be one of the next major challenges for IT,” said McGee. “For example, we expect 75 percent of new search installations to include a social search element. The world is digital and business leaders can’t ignore it.”

Sustainability- By 2016, sustainability will be the fastest-growing enterprise compliance expense worldwide.

As long as the current science surrounding climate change remains credible, organizations should anticipate that the current focus on energy, water and greenhouse gas (GHG) emissions will continue, and this will draw attention to other environmental issues, such as resource depletion, species extinction, bio-diversity and environmental justice. There will remain many hard trade-offs between an organization’s financial and operational performance and that of its environmental performance. Information systems will be critical in the role — from governance, risk and compliance, through corporate social responsibility systems, to enabling new and more-sustainable business models.

New Realities of IT: Balancing Cost and Innovation with Risk and Governance- Innovation accomplishments will be among the top-three selection criteria for new CIOs by 2016.

With the recent global recession, innovative thinkers must find new ways to create growth — in revenue, jobs and industries — in this new business climate. Cost and value optimization must remain a top priority, while the search for growth continues.

Regulatory and corporate demands for greater attention to risk have already begun to emerge. Gartner also foresees a new emphasis on business change governance.

Beyond 2020, Gartner analysts forecast that two emerging trends will become $1 billion markets. First, human augmentation, a technology that focuses on creating cognitive and physical improvements as an integral part of the human body is slowly but steadily becoming a reality and enhancing peoples’ lives.

The second trend is wireless power devices. By 2011, there will be more than 1 billion PCs and 5 billion mobile phones in use in the world, and based on the levels of demand Gartner foresees cumulative sales from wireless power products surpassing $1 billion by 2020.

“We are reaching these observations by exploring future IT growth and future adoption projections upon demand,” McGee said. “We are looking at emerging business and societal trends and based upon our findings, we will indicate likely future IT winners and losers. This methodology will not replace any existing methodologies, but simply complement existing models.”

“Looking forward, we expect to see more deployment of existing technologies in new and innovative ways, and fewer and fewer genuinely new technologies emerging in the mainstream,” said Prentice. “That is not to imply that no new developments will occur, but we are now starting to see the early indications of precursor and trigger technologies for the next wave of technology, which is likely to run from about 2025 through 2080.”

What do you think?

Thursday, November 4, 2010

Companies Unprepared to Address Risks Created by New Technology

Posted by Mark Brousseau

Less than a third of global businesses have an IT risk management program capable of addressing the risks related to the use of new technologies, according to Ernst & Young’s 13th annual Global Information Security Survey. In spite of the rapid emergence of new technology, just one in ten companies consider examining new and emerging IT trends a very important activity for the information security function to perform.

A significant increase in use of external service providers and business adoption of new technologies, such as cloud computing, social networking and Web 2.0, is recognized to increase risk for 60% of respondents. Yet, in spite of this, less than half intend to increase annual investment in information security.

Paul van Kessel, Ernst & Young Global IT Risk and Assurance Leader,comments: “Technology advances provide an increasingly mobile workforce with seemingly endless ways to connect and interact with colleagues, customers and clients. These advances represent a massive opportunity for IT to deliver significant benefits to the organization but new technology also means new risk. It is vital that companies not only recognize this risk, but take action to avoid it.”

Over half of respondents state that increased workforce mobility poses a considerable challenge to the effective delivery of information security initiatives, due to widespread use of mobile computing devices. For almost two-thirds employees’ level of security awareness is recognized as a considerable challenge.

"As the mobile workforce continues to grow, so does the level of risk. In addition to implementing new technology solutions and re-engineering information flows, companies must focus on informing the workforce about risks. The delivery of effective, and regular, security awareness training is a critical success factor as companies attempt to keep pace with the changing environment,” van Kessel adds.

Among the other findings in the report:

•Half of respondents plan to spend more over the next year on data leakage and data loss prevention – up 7% from last year. To address potential new risks, 39% are making policy adjustments, 29% are implementing encryption techniques and 28% are implementing stronger identity and access management controls.

•For the first time, continuous availability of critical IT resources was identified as one of the top five risks.

•23% of respondents are using cloud computing services, a further 15% plan to use within the next 12 months. For 85% of respondents, external certification of cloud service providers would increase trust; 43% state that certification should be based upon an agreed standard and 22% require accreditation for the certifying body.

What do you think?

Thursday, September 23, 2010

Online Storage and Privacy Laws

Posted by Mark Brousseau

If you store sensitive files on your personal computer which law enforcement authorities wish to examine, they generally cannot do so without first obtaining a search warrant based upon probable cause. But what if you store personal information online—say, in your Gmail account, or on Dropbox? What if you’re a business owner who uses Salesforce CRM or Windows Azure? How secure is your data from unwarranted governmental access?

Both the U.S. Senate and the House of Representatives are investigating these crucial questions in two separate hearings this week. Congress hasn’t overhauled the privacy laws governing law enforcement access to information stored with remote service providers since 1986. The Electronic Communications Privacy Act (ECPA), the key federal law governing electronic privacy, has grown increasingly out of touch with reality as technology has evolved and Americans have grown increasingly reliant on cloud services like webmail and social networking. As a result, government can currently compel service providers to disclose the contents of certain types of information stored in the cloud without first obtaining a search warrant or any other court order requiring the scrutiny of a judge.

Against this backdrop, the Competitive Enterprise Institute has joined with The Progress & Freedom Foundation, Americans for Tax Reform, Citizens Against Government Waste, and the Center for Financial Privacy and Human Rights in submitting a written statement to the U.S. Senate and House Judiciary Committees urging Congress to reform U.S. electronic privacy laws to better reflect users’ privacy expectations in the information age. The groups also belong to the Digital Due Process coalition, a broad array of public interest organizations, businesses, advocacy groups, and scholars who are working to strengthen U.S. privacy laws while also preserving the building blocks of law enforcement investigations.

“The success of cloud computing—and its benefits for the U.S. economy—depends largely on updating the outdated federal statutory regime that currently governs electronic communications privacy,” the statement argues. “If Congress wants to ensure Americans enjoy the full benefits of the cloud computing revolution, it should simply reform ECPA in accordance with the principles proposed by the Digital Due Process coalition.”

What do you think?

Wednesday, July 7, 2010

The state of storage

Randy Davis (rdavis@egisticsinc.com) of eGistics, Inc. (www.egisticsinc.com) finds several interesting trends in The 2010 State of Storage Report from Networking Computing.

1. The top planned storage project for 2010 is improved allocation
2. Forty-seven percent of respondents say insufficient storage resources for mission-critical applications is their No. 1 concern
3. Storage area network (SAN) vendors are responding to demands for lower-cost storage
4. Storage virtualization is growing
5. Thin provisioning is catching on
6. There is a significant increase in interest in cloud-based storage

How do these trends reflect your storage strategy?

A welcome cloud during the economic recovery

By Ed Pearce (epearce@egisticsinc.com)

In spite of hopeful signs that the economy is on the mend, the 2010 State of Storage report from Network Computing finds that the fallout from the recession has left IT execs without the resources necessary to store the rising volume of information required to support their business applications.

Nearly half (47 percent) of the respondents to the survey say they have insufficient storage resources for their mission-critical applications, while 30 percent say they have insufficient tools for storage management. Another 30 percent of respondents say they have insufficient storage resources for departmental/individual use. Nineteen percent say they lack staff for their storage requirements.

And -- regardless of economic "green shoots" -- the situation isn't likely to change any time soon: 34 percent of respondents say they have an insufficient storage budget to meet their business demands.

Against this backdrop, it's little wonder that survey respondents are showing increased interest in cloud storage services (34 percent in 2010 versus 19 percent in the 2009 State of Storage report).

With a hosted variable cost storage model, if your business struggles, and your volumes drop, your operations costs will be aligned with your usage, and you won’t pay for a “just-in-case” capital investment. The variable cost model also eliminates the need for capital investment (software licenses and hardware) or maintenance contracts; customers typically are charged a one-time load fee to archive documents. And when an array fills up, or a server must be replaced, it’s your service provider’s problem. Using a thin-client interface, there may not even be software to install, manage or maintain. In addition, variably priced storage solutions can facilitate more effective operations by providing scalability that would be very cost prohibitive in a traditional, licensed in-house system.

CBA Chief Information Officer Michael Harte spoke for many users when he recently told the Committee for Economic Development in Australia that, "I will never implement an internal solution for a common problem that I could procure on subscription across the Web."

With the economic recovery still gaining strength, the trend for 2010 will be the more efficient use of existing IT resources. That should make hosted solutions a welcome cloud during the turnaround.

Wednesday, June 30, 2010

On-premises versus the Cloud

Posted by Mark Brousseau

There is a lot of talk these days about on-premises versus cloud computing. Keyon C. Thomas (keyon@infostreet.com), reseller channel manager at InfoStreet, says the market is shifting:

I talk to VARs/MSPs all day long. One of the things I am always shocked by is how many of them don't know how little money they make selling on-premises technology and how much more they can make selling all cloud solutions. For some of my VAR's, I see an 82% profit increase. If that is not enough to get your attention then I don’t know what will. Let me break down why and see if it makes sense to you guys as well.

So let’s first look at a typical on premises install. You go in and meet with the client to make sure that you have the things they need. From there you order from your vendor, in most cases you sell at a set price with your commission built in. Plus you have to put money into technicians setting stuff up (and even if you are the tech your time is money because that time you are spending could be better spent on finding more clients). This is about a 5- to 6- day deployment with a combination of time at the client location and pre configuration at your location. Plus with most on-premises solutions, there is no recurring revenue unless you get a break fix support contract. Even if you have a break fix contract, when something goes amiss you still have to send someone out to the location to fix it so, again, you are eating into your overall profits.

Now let’s look at a cloud install using a combination of SaaS and HaaS. Your client’s network should already be in place just like it would have been in the prior example. If you can get the networking contract then you have minimal work there to set it up. Hardware would come from you HaaS vendor with the deployment specs provided to them. This is again a simple install since all the configurations were done before you received them decreasing your time at the client location.

Deployment of the file server, Exchange, SharePoint, and Communicator like environments for the clients can be deployed by the SaaS provider with a couple of clicks so you don't have to have a technician. There are even SaaS offerings of Accounting, MS office suite, and industry specific software. For most clients you're looking at about a 1 work day deployment. In both cases you are going to have recurring monthly revenue coming in before you add your support contract. When stuff does go down, if it is hardware you ship it back to the HaaS vendor and if it is software the SaaS provider is taking care of it, so you are not devoting man hours to it. Quite simply you are collecting the same if not more money but doing CONSIDERABLY LESS WORK per client. This frees you up to get more clients. Where you may only be able to support 7 to 14 on-premises clients you could support over 100 cloud clients. It just makes sense.

So my question to you is would you like to explore how to decrease your operational expenses while you significantly increase your bottom line?

Wednesday, May 19, 2010

Removing the Model T mentality from SAP hosting

Posted by Mark Brousseau

At one time or another, most people have heard Henry Ford’s famous quote about his revolutionary Model T automobile: “Any customer can have a car painted in any color so long as it is black.” Today, we look upon his inflexible, non-customer service-oriented attitude as quaint, a mindset from a bygone era that would never fly today.

But the reality is that attitude is still very prevalent. Not in our vehicles, thankfully – you can get a car or truck painted in just about any crazy color, or combination of colors you want. Instead, it’s the common mindset for IT hosting in the SAP world.

Dan Wilhelms (dwilhelms@sym-corp.com), president and CEO of Symmetry Corporation (www.sym-corp.com), explains:

By now you’ve probably seen all the articles and heard the Webinars talking about IT infrastructure as a commodity rather than a strategic advantage. They tell you how, in this day and age, managing your own infrastructure makes about as much sense as manufacturing your own electricity on a day-to-day basis, and that you’d be better off moving to a hosted model. And they tell you how IT costs to manage SAP average three percent to five percent of revenue, whereas an integrated technical managed services solution incorporating hosting reduces this figure to only one percent of revenue. All of which is true.

Unfortunately, they tend to leave out one small detail. The act of moving your infrastructure to a 20th Century-style hosting provider can be very expensive and time-consuming, especially for a mid-market organization, before it ever becomes smooth and cost-efficient.

The reason is that Henry Ford mentality. The typical 20th-Century hosting provider has a giant server farm full of equipment onto which it will move your applications. Essentially, they tell you that you can run your applications on any hardware you want – as long as it’s the hardware they already have. If you’re running on the same hardware – say your current system is IBM and so is the provider’s – that part will probably transition fairly smoothly. But if your applications are set up to run on HP servers and they’re using IBM, it’s going to take a lot of work to make the changeover. And guess who has to make the change?

The other big problem with the 20th Century model is sharing resources. Back in Ford’s day, when running water was still a rarity, families often shared bathwater (or even baths) because filling a bathtub was a time-consuming, labor-intensive task. They didn’t want to waste the effort on providing clean water for each bath.

In the traditional hosting world, the resources you’re sharing are servers. In order to operate as efficiently (and profitably) as they can, hosting providers try to fill every micron of disk space on every server with data. That means they’ll often mix data from two or more organizations to increase utilization.

It makes sense from their standpoint. But it’s not so good from yours. If a problem with some other organization’s application takes down the server you’re sharing, you are just as out of luck as they are – even though your applications are running perfectly fine. In addition, if you’re working with a government agency and have to show compliance with laws requiring separation of data, it’s going to be pretty tough to prove when your supposedly secure data is running alongside that of an organization with different (or no) compliance requirements.

There is a solution, however. Rather than settling for a “Model T” type of hosting environment, look instead for a provider using a 21st Century hosting model.

With a 21st Century hosting provider, you don’t have to make your applications fit their hardware. Instead, they will host your applications on whatever hardware you want – whether that means purchasing all new hardware of your choice as part of an upgrade, or actually packing up and shipping your current hardware to their locations. If you’re buying new hardware, a good hosting provider will even give you a choice of procuring it yourself or taking that burden off your hands – whatever method works best for you.

Moving to a hosted system dedicated specifically to your organization instead of one that is carved out of a general storage area network also solves the concerns regarding data separation. Since your hardware operates as separately as if it were in your own facility, there is no chance someone else’s application problems will affect your business. It also makes proving separation of data a very simple task.

A 21st Century hosting provider will also tend to be more specialized. In the early days, hosting meant setting up equipment and running whatever applications its customers sent its way. There was little on-staff expertise to draw from if there was a problem with, say, SAP or another complex system. In the new world of hosting, providers specialize in particular technologies and have deep expertise on staff, which allow them to do what you really want them to do – manage and maintain the system completely, including overcoming any issues immediately rather than having to call an outside specialist.

While moving to a 21st Century hosting provider makes sense for virtually any organization, it is particularly well-suited to mid-market organizations that are increasingly finding more time being spent on IT maintenance and less on actually deriving more value out of their applications. It’s a lot like those early Model Ts. Back then, if you were going to own a car, you had to know how to fix it, too.

Today, most car owners don’t know what’s under the hood and don’t want to know. They just want to get in and drive. Rather than adding IT staff (and finding themselves in the IT business instead of whatever business they’re actually in), these mid-market organizations can stay focused on the reasons they installed their applications in the first place.

When it comes to hosting, why settle for a Model T mentality? Using a 21st Century hosting provider will give you complete control over your environment and keep your data separate, all while saving you as much as 30 percent over traditional hosting. Even Henry Ford would approve of that.

What do you think?

Wednesday, April 28, 2010

Specialized document management products challenging ECM mega-suites

Posted by Mark Brousseau

The divide between "Enterprise Content Management Suite" platform vendors and more specialized Document Management product suppliers is becoming more pronounced, giving buyers more choices to address a broad range of content management challenges, according to new research by The Real Story Group (formerly CMS Watch).

The Real Story Group just released its annual Enterprise Content Management (ECM) and Document Management Marketplace overviews earlier this week, including "Cross-Check" charts for both sets of vendors. The overviews assess changes that have occurred in the previous 12 months, as well as trends emerging in today's marketplace. This research differs from other market analyses by focusing on needs and impact for the buyers and users of technology, not the sellers. "It's a risk mitigation report," notes Real Story Group analyst Alan Pelz-Sharpe, "giving you an inside look at what is really going on among the vendors and what you need to know to make the right procurement decisions." Given the divide between the more focused Document Management market and ECM suites, The Real Story Group has created two Cross-Checks.

There are no "leading" vendors or "magic" segments here. A vendor's suitability may depend on the enterprise customers' risk profile, as well as the "fit" of the technology itself, which The Real Story Group evaluates in its subscription-based research.

Other key takeaways from this analysis conclude that:

• There is continued consolidation at the top end of the market
• More focused Document Management vendors continue to thrive
• International and non-traditional options (open source/cloud) continue to disrupt both markets
• SharePoint 2010 will be remain a strong contender and competitor — but typically not a replacement system

Just as importantly, the ECM market is strong and continues to grow, with dozens of viable supplier options targeting specific business problems. "When it comes to selecting the best technology for your enterprise, you must look beyond ‘the top right quadrant,’" argues Real Story Group founder Tony Byrne. "Otherwise you'll blind yourself to many other great options."

What do you think?

Wednesday, April 21, 2010

TAWPI @ AIIM

Posted by Mark Brousseau

Based on what he saw yesterday, Jim Thumma (jthumma@docfinity.com), vice president of sales, marketing and professional services for Optical Image Technology, Inc. (OIT), says it is clear that info 360 – AIIM international’s exposition + conference continues to shrink. Many vendors I spoke with today share his assessment, noting that expo hall traffic has been steady for most of the show, but lighter than in years past.

Thumma’s other observations on info 360:

… “There are lots of companies pushing the cloud,” Thumma said
… Thumma found it ironic that despite all the "squawking" over the past few years about “what SharePoint isn’t,” the SharePoint pavilion was positioned in the front of the expo hall, and featured a cast of companies marketing SharePoint add-ons.
… “There are many old faces here, but also many new faces,” Thumma said.

What did you notice at info 360?

Thursday, April 1, 2010

The Human Cloud?

Posted by Mark Brousseau

A new category of software is revolutionizing the way enterprises will work in the next decade by moving information workers themselves into the Cloud, according to new research by the Real Story Group.

Having mastered the science of hosting and processing information assets, vendors are now beginning to distribute live information professionals on a massive scale. "This is all a natural evolution," notes Real Story Group principal, Alan Pelz-Sharpe. "Enterprises have gone from outsourcing, to nearshoring, to offshoring employees...so moving them into the Cloud represents an obvious next step."

Some skeptics have raised technical challenges of hosting human beings in the Cloud. However, an Amazon spokesman played down the technical hurdles. "We digitized Edward Tufte's books, and honestly, we found human beings a lot less complicated," noted Amazon's Justin Tyme Beamme-Up.

Other observers have noted that transferring sentient beings to and from the Cloud could present substantial bandwidth bottlenecks. Real Story Group's Theresa Regli predicts particularly heavy strains on networks in North America.

The Human Cloud marketplace remains very immature, but established vendors have recently rolled out competitive offerings.

Longtime vendor Joylent has a new offering called "Joylent Green," a more eco-friendly Human Cloud service that reduces energy supply to the autonomic nervous system during non-business hours.

Another vendor, SalesForce.com, is experimenting with hosting actual salespeople. "It's great! Now I can get their loud voices and loud ties out of my office," said an executive at one satisfied beta customer.

Different types of Human Clouds have emerged, including public and private versions. "We host public clouds for your employees' faces, hands, and mouths, but we put their private parts in, well, a private cloud," said Stratto Cumulus, CMO of Rackspace, who confirmed the vendor had no plans to change its name.

Meanwhile, from Redmond comes news of the forthcoming release of Microsoft's Human Cloud offering. Microsoft's Vice-President of Information Worker Cloud Services revealed that the company's "ShareJoint 2011" offering will be released to beta during Q2 2014 under the slogan, "Where has your body gone today?"

Not every major Cloud vendor is sanguine about the human angle. For example, EMC has no near-term plans to release a Human Cloud service. "As a general rule, we don't like people," explained EMC spokesperson, Ms. Anthrope Hardisk.

Happy April Fool's Day!

Thursday, March 18, 2010

Control is Overrated

Posted by Mark Brousseau

Out of control? When it comes to management, “Out of Control” is a compliment. Siamak Farah, director and CEO of InfoStreet (www.infostreet.com) explains:

It may seem counter-intuitive, but the more you control, the less you will succeed. In other words, unless you let go, you won’t grow.

Especially in small business environments, there is a general feeling that if management does not keep it all in check, the business will fall apart. For a moment, let’s assume that this theory is true. By this definition, the more management controls, the better work gets done.

Expanding further, it then behooves us to give management control of everything to ensure it is done the best it can be done. Now, we have just bound the growth of the company to the availability of management. Since the hours of the day are limited, the growth of the company is now limited. Therein lies the fundamental flaw in “control by management”.

If management liberates itself from control it can then be free to think of larger plans. After all, presumably the reason you are in a management position is that you have experience.

Experience can not only create competitive advantages, but it can also avoid costly mistakes. In business, as in sports, wins often come from not making mistakes. Yet, when in the trenches, even the most experienced can make mistakes since they are not sufficiently removed from the process to clearly see the obstacles. This is precisely why even the best players in the world have coaches.

Be a Coach, Not a Player
Throughout our business lives, we have all heard the advice: “delegate, delegate, delegate”. But often this great advice is shrugged off with “I wish I could”, “Don’t have the talent”, “We are under-resourced”, “It’s too risky at our size”, and similar rationalization. Yet, the truth is that by delegation you will get more done with better quality, have a happier team, and the quality of your business and your business life will increase at least ten-fold.

Some are fortunate enough that they can afford great talent, therefore delegation seems like a no-brainer. However, delegation is an acquired skill for most. Those who don’t have it will try to micromanage even the best talent, rendering it virtually ineffective.

On the other hand, some may overcompensate for previous micromanagement and completely wash their hands off of the tasks at hand. That, in the words of my friend Allen Hargreaves, is abdication and not delegation.

Delegation is about letting the person closest to the problem solve the problem, and you, the management, being there in support of them, not to monitor them. You have to be there, side-by-side and close enough to share your experience, but far enough that the work is done by the delegatee and they receive ALL the credit for it.

Developing Delegatees
A great psychiatrist friend of mine once told me that counseling is ineffective. It amounts to giving advice, in one ear and out the other. By contrast, with therapy, the psychiatrists often know the answers, but never share it with the patient. They just ask questions leading the patient down the path so they themselves can reach the right conclusions. That experience will never be forgotten, and thereafter, the patient will always take the right steps.

Management coaching should also be very similar to the therapy approach. Using this model, you can empower the best talent to be better. You can also take even the least experienced, and turn them into the most valuable team members. This approach can allow you to hire out of college, and in no time compete very effectively with those who are paying much higher salaries.

Control has its place
As you may have seen in my other posts, patience is running thin in today’s work environment. Impatient people are often short with others, especially with those that are in the learning phase, or simply did not see a problem the way others viewed it.

This is where control has its value. Regardless of how frustrated, outraged, or peeved you are, you need to be in control of your emotions. This is even more important for leaders who are coaching, teaching, and sharing their experience on a daily basis.

Remember the rule on controlling emotions: In any given exchange, regardless of the position one holds, the one who loses their temper has lost. The damage might seem temporary, but I can assure you it is not.

People often don’t remember details of events, but they do remember how they felt at the event. Therefore an event in which you have shown frustration – or worse yet, anger – will be forever be remembered in a negative light, diminishing your value as a leader or a team player.

Manage Processes Not People
In the 1930s, when talking about black empowerment, Marian Andreson was credited with a quote which truly applies to today’s business environment. She said:

“As long as you keep a person down,
some part of you has to be down there to hold him down,
so it means that you cannot soar as you otherwise might.”

So let go of controlling people today, and focus on creating processes, strategies, and competitive advantages. When you create processes, people can follow them with minimal guidance. As a result, you get controlled quality without having to control people.

This is the formula for growth. Let go, so you can grow.

What do you think?

Thursday, December 4, 2008

No Time for Inaction

By Mark Brousseau

While it’s vital to carefully manage investments, it’s an important time not to “hunker down.” That’s a key message that IDC will deliver this morning during a Webinar on the firm’s predictions for 2009. IDC says that while the recession is slowing down the entire market, it is accelerating the transformation of the IT industry.

IDC believes the disruptive vectors of the market will be among the highest-growth sectors in 2009, as their advantages are magnified in a down economy. Suppliers who slow-down their transformation will limit long-term viability and miss near-term growth, IDC predicts.

For instance, growth of cloud computing will slow in 2009, IDC says, but still expand its growth edge over traditional offerings. Additionally, online commerce, while experiencing slower growth, will break the $8 trillion mark, and take more market share from traditional commerce. The number of people online next year will exceed 1.5 billion – about ¼ of the entire population of the planet – IDC predicts.

What do you think? Post your comment below.

Saturday, November 8, 2008

Service in the Sky

Posted by Mark Brousseau

Below is a link to an interesting article in the November 10 issue of Newsweek about cloud computing.


http://www.newsweek.com/id/166818

What is your organization's approach to cloud computing? Post your comments below.