Cost Conundrum as Companies Quit IoT Shows Need for a New Business Model

I. Grant

Summary Bullets:

• Cost and higher priorities have led some firms to abandon their IoT plans

• IoT generates a small fraction of operators’ income

New research by GlobalData shows that the companies that give up on their IoT projects do so because they are too expensive to implement (41%), and because their priorities shift (23%). Another 21% found they are too costly to maintain.

GlobalData asked more than 1,000 users worldwide, mostly industrial firms, about their IoT investment intentions. Replies show that getting budget is less of an issue this year than last, suggesting firms are more willing to try out the technology. However, this also led to more projects being abandoned later in the project lifecycle. While most firms kill their IoT projects in the investigation phase, all firms in GlobalData’s 2016 survey pulled the plug at the latest during the pilot stage. This year, 6% abandoned their projects in each of the deployment and post-deployment phases, citing implementation and maintenance costs reasons. Read more of this post

OpenStack Summit 2017: Hosted Private Cloud Demand Reflects Both the Popularity and Problems of OpenStack

C. Drake

Summary Bullets:

  • OpenStack cloud deployment continues to grow, with the main business drivers among enterprise users including the desire to avoid vendor lock-in and the potential to enhance innovation and operational efficiency.
  • Specific criticisms of OpenStack focus on the current six-month release cycle, as well as the complexity of the installation process for new releases and insufficient support for containers.

The May 2017 OpenStack Summit in Boston highlighted continued growth in the number and size of OpenStack cloud deployments, as well as evidence of increasing maturity for the technology. It also illuminated some of the ongoing challenges facing the OpenStack movement. Read more of this post

SAP Jumps on the Multi-Cloud Bandwagon as a Venue for Selling Leonardo

C. Dunlap

C. Dunlap

Summary Bullets:

  • SAP is playing catchup with PaaS rivals, integrating its middleware with public cloud providers.
  • SAP missed the opportunity to provide an SCP roadmap around emerging DevOps technologies.

SAP focused much attention during this week’s annual Sapphire Now conference on the re-release of its Leonardo IoT platform, expanded to include machine learning and big data innovations (please see: SAP Relaunches Leonardo, Blending AI, Big Data, IoT and Blockchain, May 17, 2017). Perhaps more significantly, SAP revealed that these high-value services will run on SAP Cloud Platform (SCP) with the ability to reach broader markets through multi-cloud agreements and integrations with popular public cloud partners. Read more of this post

There’s a New Informatica in Town That Wants to Unleash the Power of Your Data

B. Shimmin

B. Shimmin

Summary Bullets:

  • At its annual user conference, Informatica quietly introduced an entirely new brand identity, which is designed to free the company from its ETL roots and target enterprise cloud data management.
  • To reach this goal, however, the company intends to do far more than merely switch up its logo and mission statement.

It is not uncommon for a technology vendor to make a break with the past by rolling out a new brand identity. Such efforts typically involve an extravagant launch party, an extensive marketing campaign, and of course, an extremely expensive logo retrofit. On average, these rebrands aren’t a good thing, at least not initially, since they’re often undertaken in response to an existing or anticipated threat. The idea is to create some cognitive dissonance among existing and potential customers, severing existing perceptions and creating new associations that are in tune with current (and hopefully future) market ideals. Read more of this post

WannaCrypt Global Ransomware Attack Highlights a Worsening Data Hijacking Epidemic

E. Parizo

Summary Bullets:

  • WannaCry, the largest-ever ransomware attack, is likely a harbinger of what’s to come.
  • The emergence of ransomware highlights the importance of tying security to data backup and recovery.

Suddenly, the whole world knows about ransomware.

While ransomware is no secret to those in the cybersecurity industry who have seen a steadily growing number of isolated incidents, to everyone else, ransomware made its presence broadly known late last week. The largest-ever single ransomware incident, a variant of the WannaCrypt strain known (aptly) as WannaCry, caught tens of thousands of organizations in at least 150 countries by surprise, likely causing millions if not billions in damage. Read more of this post

Red Hat Summit 2017: IT Automation Takes One AWS-sized Step Closer to Business Innovation

Brad Shimmin – Research Director, Business Technology and Software

Summary Bullets:

• Red Hat’s re-energized partnership with Amazon and its continued investment in Red Hat Insights smartly emphasizes AI-driven IT automation as a way to root out the foibles of human-mediated decisions in optimizing hybrid cloud/premises environments.

• Beyond automation, however, Red Hat’s growing focus on big data points to a distinct need within the industry to bring both operational and business analytics together within a single pane of glass.

At Red Hat’s annual customer event in Boston, Massachusetts last week, the industry’s leading purveyor of all things Linux rolled out a series of announcements relating to analytics-driven IT automation and private cloud enablement – two topics that are impactful on their own but superb when combined. Read more of this post

The Competitive Impact of Cisco’s Acquisition of Viptela Is Yet to Come

M. Fratto

Summary Bullets:

  • Cisco intends to acquire Viptela for $610 million (USD), but it’s one more SD-WAN product in a sea of products.
  • The competitive impact will take a year or more to be realized, and will largely be determined based on Cisco’s integration strategy.

Cisco Systems intends to acquire Viptela for $610 million. That’s a pretty good chunk of change for a company that already has two SD-WAN products, IWAN on the ISR routers and Meraki’s SD-WAN. Until the deal closes, Cisco and Viptela will be pretty quiet about future plans, but since Viptela will be added to Cisco’s Enterprise Networking Group, it is safe to say it will augment Cisco’s networking portfolio and at least, for a while, be offered alongside IWAN. Read more of this post

AT&T, Verizon Stake Out U.S. Microwave Spectrum Licenses Ahead of Big 5G Broadband Expectations

B. Washburn

B. Washburn

Summary Bullets:

  • 5G’s high-frequency component holds the promise of very high-performance/low-latency millimeter wave mass-market communications. AT&T and Verizon are aiming for companies with large bundles of spectrum licenses.
  • Millimeter wave license holders struggled to monetize the business. The 5G spec makes mass-market promises, but the technology has to break cost and power usage barriers.

The latest U.S. spectrum auction wound down in April, raising US$19.8 billion – less than half of what the U.S. government expected – for 70 MHz of spectrum sold for cellular communications in the desirable sub-1 GHz band. Comcast, T-Mobile and Dish Networks bid heavily. But, incumbent mobile operators AT&T, Verizon and Sprint, usually starved for spectrum and willing to spend big, barely made a showing. Read more of this post

The Detail Devils of the IoT

I. Grant

Summary Bullets:

  • The John Deere copyright clause is a stark warning to scrutinize IoT EULAs.
  • Inaction could kill recurring revenue business models for thousands of manufacturers.

Companies looking to take advantage of the Internet of Things (IoT) need to scrutinize their end-user license agreements (EULAs). This follows an attempt by tractor manufacturer John Deere to use the Digital Millennium Copyright Act (DMCA), US legislation designed to prevent theft of intellectual property such as videos and music, to force customers to use licensed channels to repair their machines. Read more of this post

As Huawei Expands Its Public Cloud Platform It Should Not Underestimate Private and Hybrid Cloud Requirements

C. Drake

Summary Bullets:

• Although Huawei’s public cloud platform will compete internationally against Amazon, Microsoft and Google, Huawei will differentiate by focusing on emerging markets and specific verticals.

• In promoting its public cloud platform, Huawei must continue to support the long-term need among many enterprises for private and hybrid cloud solutions.

It’s been a busy few weeks for Huawei, which has been forging ahead with new initiatives for supporting the adoption of cloud-based technologies and services among enterprise customers. One of the most attention-grabbing announcements at Huawei’s 14th Global Analyst Summit in Shenzhen (April 11-13), centered on the international expansion of the company’s public cloud platform. Huawei has offered public cloud services in China since 2015, competing against local providers such as Alibaba. It is now extending its ability to deliver public cloud services internationally via strategic partnerships with Deutsche Telekom, Orange and Telefónica, which will each utilize Huawei’s platform to offer public cloud services in regions where they have network infrastructure strengths. Although Huawei plans to extend its public cloud platform to other regions, it will do so cautiously, in response to customer demand, and with partners that need strict selection criteria. Read more of this post