Cloud computing not on the CIO agenda in the next year

This according to a ComputerWorld story on a CIO survey (via a Billy Marshall article on Sandhill.com) conducted by our friends at Goldman “no subprime on me” Sachs.  Lots of discussion around reducing consulting and hardware as well as targeting headcount among IT staff positions. 

“It also showed that CIOs planned to emphasize economizing measures over
investments in new technologies, with cloud computing emerging as the
last item on their priority lists, despite the hype around it.

Virtualization and server consolidation top the list with application integration on the list as well. 

I’m guessing that “cloud computing” on its own is not at the top of the list because it is more of a “how” vs. a “what.”  Also interesting that things like virtualization rank so high which a non-techie like me would include in the cloud computing category.  Read Billy’s take and reference the post I wrote on consuming software for some additional perspective on this.

Great news! Nigeria issued me a $500k ATM card!

What, sounds crazy?  To hard to believe?  Well, check out the email below and you’ll clearly see that I was awarded this based on my email address being randomly selected.  What luck! 

Look further and you’ll see this has to be official because it is from atmdesk02@gmail.com but I am to respond to atmdesk01@gmail.com – nice way to keep the outbound and inbound emails separate, I suppose.

ATM_scam

Ok, so enough sarcasm but I believe there are two interesting points that this little gem illustrates: 

First, it is spam and was tagged as such but these things continue to be sent out because someone somewhere does think they have won something even after all the coverage and awareness around them.  If they didn’t work they would disappear. 

Second, I receive a great deal of solicitations via email as a VP of Marketing and am always dismissive of those that are “business” correspondence coming from somethingclever@gmail.com or nickname@aol.com.  We live in a day in age where buying a domain and having email for it is about as cheap as a latte so not having a business email for business makes you highly suspect in my book.

Consuming Software

I was in the Bay Area for a few days last week for some meetings and had a great chat during my visit with someone who really gets software-as-a-service from an investor perspective.  We hit a couple of core themes during our conversation including the notion of “consumption.” 

Enterprise software has not been easy for business users to consume in the past.  It required software, servers, consultants, and extensive configuration as well as the lead from IT to get it in the hands of the business end-users.

In the past it was about business users using software once it was set-up.  Now it is about business users individually consuming software and realizing the business value first.

This puts a new onus on any company wanting to successfully penetrate the enterprise with software and do so while avoiding bloody and bruising 18 month sales cycles.

Get all or some part of it into the hands of the business end-users first and have them begin to rely on it.  When the time comes to talk about a broad deployment that needs IT attention it has almost become predetermined.

This approach is made possible by the ability to deliver software via the internet (SaaS/on-demand).

This is getting serious

From the Financial Times:

“Merrill Lynch has sharply cut the use of private jets among its senior managing
directors by requiring them to obtain direct clearance from the global
head of investment banking to hire one and to demonstrate there is no
more efficient means of transport.”

“The restrictions on flying by private jet are also meant to demonstrate
that the firm’s top brass must set an example to the rank and file in
tightening belts. Other changes include requiring bankers to travel by
taxi rather than limousine and reduced allowances for dinner on the job.”

The horror….

More on SaaS integration

This article came out a couple weeks ago and I have been meaning to do a post around it for some time.  It’s an InformationWeek article on SaaS integration that highlights three companies positioning to address the need – Boomi, SnapLogic, and Cast Iron.  We continue to see needs around this in the marketplace and after a bit of research and outreach, I believe the problem falls into two related but distinct categories:

1  Data extract/upload

This is predominantly for those applications that need to pull something out of an existing on-premise application and transfer it to an on-demand application once or with low frequency (think batch or asynchronous).  We can do this but our core competency is not in data extraction and this is better served by on-premise integration products or defined adapters.  In fact, many of the SaaS application companies we spoke with were using the usual integration broker middleware products for this along with their own consulting folks to get new customers connected.  Yes, this approach works but it doesn’t scale (see below).

2. Transactional processing

This is for those applications that require real-time/near-time information flow between on-premise applications and on-demand applications.  eProcurement, epayment, and supply chain applications currently fit here and this can also include multi-party information flows between two or more separate companies as well as more sophisticated business rules.  An example of this is using an on-demand CRM application to create quotes based on catalog and pricing information that exists in an on-premise enterprise application.  A single company has the need but the information flows are frequent and real-time/near-time.

Hubspan has a unique perspective on this challenge coming at it from an inter-enterprise background.  After the initial extraction and uploads occur, my view is that the needs (and approach) will evolve and become more transactional in nature for all on-demand applications. 

Until then, there is plenty of room in the pool for everyone…