Who are you? Not philosophically but digitally. What is your identity within your organization? Not just for authentication purposes but for informing others what you have to offer and what you want. This is not a trivial question, at least from a software point of view. Each of us is likely to have many different digital footprints at work. Who you are on the enterprise social network, through email, or even on external services such as LinkedIn cannot be divorced from who you are in the company directory. Your transactional work product, usually recorded in a System of Record is also a part, but an incomplete part, of the total
The quarterly earnings announcement season is in full swing for large tech companies. This past week IBM announced its quarterly financial results and SAP issued guidance. Oracle did the same a month ago. Each of these companies is still showing reduced overall revenue due to the shift to cloud computing. On the surface, this would appear to be a big problem. When companies undergo radical changes that drop revenues, everyone has to worry that their favorite supplier may become the next Sun, Palm, or worse, Novell which is only a shadow of its former self. I, for one, am not worried. Yes, these quintessential IT companies are taking it on
This week I ran into an interesting problem. My email stopped working. That is, my Microsfot Outlook and Lync could no longer communicate with our cloud-based Office 365 Exchange server. Microsoft support was flummoxed. I eventually found the solution and it lay in system updates. By applying an optional system update to my laptop, not an Office update, I was able to get back to normal. Certainly makes you wonder what the word “optional” means in this context. If it is necessary for applications to work, it’s probably required not optional. Although Microsoft never admitted it, it is very likely something changed in the back-end. Nothing had changed with my
I make it a point to never be overtly political in my posts, blogs, article, and other writing. That’s because I write about technology not politics or art. Art and technology have one thing in common though. Both are creative pursuits that require a free environment in which to thrive. What the awful people who attacked the offices of Charlie Hebdo did not seem to understand is that the writers and cartoonists were not satirizing Islam per se. They were not trying to insult Muslims or the Prophet Mohammed. Nope. They wanted to insult the very same extremists that killed them. The staff, the artists, writer, editors, and other members
It is traditional to spend some time at the beginning of the year to take a quick look ahead. That’s a great practice since it helps to set the stage for the strategies in the new year. To help with that, I’ve put together a short representation of those trends that will impact organizations in the coming 12 months. Social, Mobile, and Cloud Trends 2015
The quarterly earnings announcement season is in full swing for large tech companies. This past week IBM announced its quarterly financial results and SAP issued guidance. Oracle did the same a month ago. Each of these companies is still showing reduced overall revenue due to the shift to cloud computing. On the surface, this would appear to be a big problem. When companies undergo radical changes that drop revenues, everyone has to worry that their favorite supplier may become the next Sun, Palm, or worse, Novell which is only a shadow of its former self.
I, for one, am not worried. Yes, these quintessential IT companies are taking it on the chin revenue-wise owing to the shift to cloud computing. Cloud computing is disrupting the traditional on-premises software businesses and wreaking havoc with vendors’ hardware units. Major shifts in a market can cause these type of short-term effects on any business. Just look at how the introduction of shale oil has effect the otherwise same energy business, dropping oil prices precipitously in a year. The current disorder in the IT industry is, however, over-shadowing the future benefits of cloud computing.
See, the problem lies in short term versus long term expectations. On a quarter to quarter basis, less money is being made by IT companies switching from traditional to cloud models for their products. Yet these cloud businesses are growing rapidly versus stagnating software and hardware businesses. On top of that, cloud business are locking in revenue far into the future. The traditional model of hardware and software requires customers to make big upfront investments which generate a lot of money all at once. Cloud business generate revenue over time but that revenue is stickier. Big upfront investments make it hard for companies to make decisions about a product; Subscriptions ease the worry that a wrong decision will be made. When IT products start to age, especially hardware, responsible IT managers reevaluate vendors opening the door to competitors; With cloud services offering constant updates and incremental cost increases, it’s easier to stay with what is already in place.
Of course, these are the strategies of growth companies in the IT sector. Companies such as Amazon, Salesforce.com, and Netsuite are successful because they reduced resistance to sales and locked in customers for the long haul. They act like media companies, worried about innovation and churn as much as scoring big deals. I suspect this is what is messing with the heads of the financial analysts the most. They see companies that should be acting like lumbering dinosaurs, grazing safely in placid waters free of major predators, acting like nimble up and comers. Stock prices are as much a reflection of perceived future value as present value. Financial analysts are used to viewing companies such as IBM, SAP, Microsoft, and Oracle act in a certain and predictable manner. That major IT companies are taking steps to ensure they don’t become lunch for some upstart should suggest more value in the future. It’s just not foreseeable what that value will be. The outmoded models no longer work well, as is always the case when big changes are in progress.
So, while market analysts (like me) are predicting accelerated growth in the IT market because of the shift to cloud computing, financial markets will continue to punish the major companies that are embracing these changes. Ours is a long-term view based on successfully delivering superior products and services to customers. Theirs are short-term models based on financial metrics from an earlier age.