IBM connects the dots between data, cloud and engagement

At this week’s IBM Insight conference in Las Vegas, IBM brought out the big guns to demonstrate their chops in the data analytics space. Insight is IBM’s conference dedicated to their solutions around data management and analytics. While there are some highlights, other areas are still evolving.

Setting the stage and connecting the dots

Things kicked off with IBM SVP of the Information and Analytics group, Bob Picciano, talking about the important interconnection between data, cloud and engagement.

  • Data is the ‘What’
  • Cloud is the ‘How’
  • Engagement is the ‘Why’

Bob’s messaging paints a good picture of how the technology and data play a central role to the ever-changing IT organization. Engagement is the key to business relationships with customers. The CIO and IT organization need to fully understand how they engage with customers today and how that will evolve over time. Where are the opportunities? How can IT help create deeper relationships with customers? Data and cloud will play a leading role.

Relationships comes in all sizes

The way companies connect with their customers will vary greatly. To that point, there are some core themes here at Insight that mirrors the varied ways. Two of the key areas are social engagement and mobile. Ironically, traffic at the mobile booth seems anemic compared with the social engagement area, which saw constant traffic. In order for IBM to truly capitalize on the changing marketplace mobile will need to take a stronger position.

Getting social, but still a ways to go

Social media plays a central role in customer engagement for many organizations. The impressive thing is that the #IBMInsight hashtag was trending high on Twitter’s list for much of the day. As a data geek, one is always thinking about the value of those metrics. Trending at the top of Twitter is pretty impressive until you start to look at the finer details.

Running data through Tweet Binder provides a bit of clarity (report). Almost 50% of tweeters used Twitter clients for iPhone, iPad or Android speaking to the importance of mobile in social media. Looking a bit further, 61% of tweeters only tweeted a single tweet while 77.51% of tweeters tweeted only one or two times. That is not a good showing for attendees that should be well versed on the impact of social media and demonstrates there is still a ways to go.

Building an ecosystem

Walking the expansive show floor, it is apparent that IBM has worked to build their ecosystem. There are plenty of vendors that provide complementary products based on IBM technology along with plenty of consulting shops too. The interesting point here is that there are not many larger technology companies other than IBM exhibiting. This could be a side effect to IBM’s wide portfolio of services and solutions and a feeling of competitiveness among vendors. Unfortunately, it does not represent the varied needs of the average enterprise customer.

Summary in a nutshell

Putting it all together, IBM is making good waves to support the enterprise around data and analytics. They have made a good start, but still have a ways to go. The solutions still have a traditional IBM ‘feel’ and with rare exceptions span into the newer territories. There was a showing of IBM’s BlueMix platform, but not too much beyond the large enterprise perspective. Even the cloud area competed with the size of the infrastructure areas.

The reality is that turning a company the size of IBM is hard. In addition to size, there are cultures that need adjustment too. But it seems IBM has started to make good strides in some specific areas with ostensibly more to come. It will be interesting to see how IBM addresses solutions going forward and starts to truly pull the different components (data, cloud, engagement) together.

 

Originally posted @ Gigaom Research 10/27/14

http://research.gigaom.com/2014/10/ibm-connects-the-dots-between-data-cloud-and-engagement/

There comes a point when it is not just about storage space

Is the difference between cloud storage provides about free space? In a word, no. I wrote about the cloud storage wars and potential bubble here:

The cloud storage wars heat up

http://avoa.com/2014/04/29/the-cloud-storage-wars-heat-up/

4 reasons cloud storage is not a bubble about to pop

http://avoa.com/2014/03/24/4-reasons-cloud-storage-is-not-a-bubble-about-to-pop/

Each of the providers is doing their part to drive value into their respective solutions. To some, value includes the amount of ‘free’ disk space included. Just today, Microsoft upped the ante by offering unlimited free space for their OneDrive and OneDrive for Business solutions.

Is there value in the amount of free space? Maybe, but only to a point. Once they offer an amount above the normal needs (or unlimited), the value becomes a null. I do not have statistics, but would hazard a venture that ‘unlimited’ is more marketing leverage where most users only consume less than 50GB each.

Looking beyond free space

Once a provider offers unlimited storage, one needs to look at the feature/ functionality of the solution. Not all solutions are built the same nor offer similar levels. Enterprise features, integration, ease of use and mobile access are just a few of the differentiators. Even with unlimited storage, if the solution does not offer the feature you need, storage value is greatly diminished.

The big picture

For most, cloud storage is about replacing a current solution. On the surface the amount of free storage is a quick pickup. However, the real issue is in the compatibility and value beyond just the amount of free storage. Does the solution integrate with existing solutions? How broad is their ecosystem? What about Single Sign On (SSO) support? How much work will it take to implement and train users? These are just a few of the factors that must be considered.

 

Originally posted @ Gigaom Research 10/27/14

http://research.gigaom.com/2014/10/there-comes-a-point-when-it-is-not-just-about-storage-space/

What do cloud consolidation and disruption have in common?

Originally posted @ Gigaom Research 10/13/2014

http://research.gigaom.com/2014/10/what-do-cloud-consolidation-and-disruption-have-in-common/

One thing is for sure, we can expect to see much more of cloud consolidation and disruption happening in the IT space over the coming months and years. Recently, Cisco, EMC, HP and IBM have all acquired startups from the cloud space. And each of these acquisitions was disruptive in their own way.

Cloud, in theory, should not be that disruptive. However, the essence of cloud actually presents a compelling disruptive story that is intoxicating to those whom fully understand the potential. That being said, enterprise IT organizations will leverage a combination of traditional IT services and cloud-based solutions.

Not surprisingly, the recent cloud acquisitions sit closest to the current state of the traditional enterprise. Key to this strategy is to 1) expand the portfolio by offering new solutions and 2) evolve the enterprise (and provider) toward a cloud-based strategy.

Keeping score

For those keeping score, Cisco acquired Metacloud. EMC acquired Cloudscaling. HP acquired Eucalyptus. And IBM acquired SoftLayer. Based on the momentum, one could look toward IBM to make the next move. On the other side, with Cisco, EMC and HP going after private cloud solutions, there is a position to take that it is these three to watch. An additional factor to consider is that a startup may have a great solution, but not enough runway (money) to keep them afloat until the market is ready to adopt. Watch for more of these situations, as the overall IT market takes longer to adopt disruptive solutions such as cloud-based solutions.

Shifting the incumbents

Regardless of who moves first, second, third or fourth, the act of acquiring cloud-based solutions will create a shift in the provider’s overall strategy. For the enterprise CIO, one key to watch will be momentum among the cloud startups. Which solutions are up-and-coming and getting quite a bit of attention by early adopters? Two that come to mind are Docker and OpenStack. If OpenStack were a company, this would be the one to watch. In any case, enterprise IT organizations need to keep close watch of this area.

As enterprise IT organizations shift from traditional IT infrastructure to converged infrastructure and onward to cloud-based solutions, the incumbent provider must have an answer to the shift. Let it be noted that the incumbent need not provide all parts of the solution. This is where the ecosystem comes in to create value and fill the gaps in the strategy.

Leveraging innovation

Many ask why the incumbents do not innovate internally and build out their portfolio like they have in past years. With a vibrant industry of up-and-coming potential solutions, there are easier paths to success. Why take the risk and invest significant funding into a number of different strategies only to have one pay off? Instead, watch the space and acquire the right solution that has a proven technology and fits the model well. The key is finding the point when the solution is proven, but not so successful that it demands paying a premium.

For the CIO, this means keeping close tabs on how the cloud space is evolving regardless of the stage of adoption they are at. Cloud solutions impact organization, services, and processes in addition to technology.

Divesting leads to Consolidation

The big breakups of 2014 are leading to further cloud consolidation. Many of the large IT providers have simply gotten too big and too diversified. Divesting is essentially a healthy way to trim their portfolio and refocus the company in leading areas within their industry. Divesting also opens the door to an interesting side effect of acquisition opportunities.

Intersection of cloud consolidation and disruption

Each of the acquisition targets is disruptive in their own right. The market as a whole is also very fragmented with solutions solving a similar problem, but in very different ways. And each company does one thing and one thing very well. The opportunity to explode the solution comes with building out the ecosystem. For the startup, what better way than to sell to a larger organization that has several of the building blocks already integrated and productized. Plus, the alternative of heading toward IPO is just not as appetizing of an equity event as it used to be.

Could Rackspace start the cloud vertical movement?

Originally posted @ Gigaom Research 10/8/2014

http://research.gigaom.com/2014/10/could-rackspace-start-the-cloud-vertical-movement/

There are plenty of other posts detailing whether Rackspace (NYSE: RAX) should sell or split. I detailed my own thoughts here back in May 2014. With the speculation continuing to twist in different directions, one thought got me thinking. Ideally, the board of Rackspace would do what they felt was best for shareholders. Maybe the current thinking of split or sell is too simplistic. Maybe there is a possibility that takes them from the muddled world of cloud infrastructure players to a relatively niche area that is ripe for the taking. This shift would put Rackspace in a unique position of differentiation.

Leading the cloud verticals

What if Rackspace shifted gears to focus solely on providing services to cloud verticals? We already know that Rackspace does a fine job of their hosting and cloud services. To that end, their ‘Fanatical Support’ is well respected in the industry. Put cloud verticals together with Fanatical Support and it may end up being a fine option for the future of a leading organization. There are still challenges between the hosting and cloud business revenue models to consider. But beyond that, there is a chance to delve into an area that presents a challenge for many would-be cloud customers.

Starting with Healthcare

Across the spectrum of industries, the financial performance of healthcare (+23.7%) has outperformed other industries in the past year with information technology (+22.0%) trailing closely behind. There are a number of use cases in which cloud computing could (and does) provide value to healthcare organizations. Even considering the compliance requirements of the Health Insurance Portability and Accountability Act (HIPAA), cloud services from IaaS to SaaS make sense. Creating a specific vertical of services that is centered around environments with regulatory issues such as HIPAA enable an easier decision for healthcare organizations as opposed to the alternative where they create their own cloud-based solution.

Fanatical Support pivots

One of the core tenants to Rackspace’s value has been their Fanatical Support. Over the years, their Fanatical Support has served as a key differentiator for the company. Considering the specialized needs of different verticals (like healthcare), it would make sense to pivot this support model from general-purpose support to specialized support for each vertical. Again, bringing support back into the fold as a core differentiator and building on their existing successes.

The value of specialization

In the general-purpose cloud market, the services are fairly confusing and muddled. Not to mention the drive toward razor-thin margins. Different cloud providers offer slightly different features, classes of services and ecosystems. By specializing on cloud verticals, Rackspace could lead the charge in building a specific ecosystem around specific verticals. It has long been discussed that cloud verticals is the logical next step for cloud maturity. Pairing their support model with the specialized services needed by each vertical would create a new level of differentiation and potentially different economic model. And this economic model would present an opportunity for growth beyond the general-purpose cloud solutions offered today. Add in the leadership that Rackspace covets in the OpenStack space and the interest only grows further.

Is Rackspace the only provider that could leverage this route? No. But considering the position that Rackspace currently holds and their suite of components, it would be an interesting approach to follow. And it might present an opportunity for the entire company to pivot without considering sale or split. Granted, there is still a good case to be made for going private too.

Is the cloud unstable and what can we do about it?

Originally posted @ Gigaom Research 9/29/2014

http://research.gigaom.com/2014/09/is-the-cloud-instable-and-what-can-we-do-about-it/

 

The recent major reboots of cloud-based infrastructure by Amazon and Rackspace has resurfaced the question about cloud instability. Days before the reboot, both Amazon and Rackspace noted that the reboots were due to a vulnerability with Zen. Barb Darrow of Gigaom covered this in detail here. Ironically, all of this came less than a week before the action took place, leaving many flat-footed.

Outages are not new

First, let us admit that outages (and reboots) are not unique to cloud-based infrastructure. Traditional corporate data centers face unplanned outages and regular system reboots. For Microsoft-based infrastructure, reboots may happen monthly due to security patch updates. Back in April 2011, I wrote a piece Amazon Outage Concerns are Overblown. Amazon had just endured another outage of their Virginia data center that very day. In response, customers and observers took shots at Amazon. However, is Amazon’s outage really the problem? In the piece, I suggested that customers were misunderstanding the problem when they think about cloud-based infrastructure services.

Cloud expectations are misguided

As with the piece back in 2011, the expectations of cloud-based infrastructure have not changed much for enterprise customers. The expectation has been (and still is) that cloud-based infrastructure is resilient just like that within the corporate data center. The truth is very different. There are exceptions, but the majority of cloud-based infrastructure is not built for hardware resiliency. That’s by design. The expectation by service providers is that application/ service resiliency rests further up the stack when you move to cloud. That is very different than traditional application architectures found in the corporate data center where infrastructure provides the resiliency.

Time to expect failure in the cloud

Like many of the web-scale applications using cloud-based infrastructure today, enterprise applications need to rethink their architecture. If the assumption is that infrastructure will fail, how will that impact architectural decisions? When leveraging cloud-based infrastructure services from Amazon or Rackspace, this paradigm plays out well. If you lose the infrastructure, the application keeps humming away. Take out a data center, and users are still not impacted. Are we there yet? Nowhere close. But that is the direction we must take.

Getting from here to there

Hypothetically, if an application were built with the expectation of infrastructure failure, the recent failures would not have impacted the delivery to the user. Going further, imagine if the application could withstand a full data center outage and/ or a core intercontinental undersea fiber cut. If the expectation were for complete infrastructure failure, then the results would be quite different. Unfortunately, the reality is just not there…yet.

The vast majority of enterprise applications were never designed for cloud. Therefore, they need to be tweaked, re-architected or worse, completely rewritten. There’s a real cost to do so! Just because the application could be moved to cloud does not mean the economics are there to support it. Each application needs to be evaluated individually.

Building the counterargument

Some may say that this whole argument is hogwash. So, let us take a look at the alternative. If one does build cloud-based infrastructure to be resilient like that of its corporate brethren, it would result in a very expensive venture at a minimum. Infrastructure is expensive. Back in the 1970’s a company called Tandem Computers had a solution to this with their NonStop system. In the 1990’s, the Tandem NonStop Himalayan class systems were all the rage…if you could afford them. NonStop was particularly interesting for financial services organizations that 1) could not afford the downtime and 2) had the money to afford the system. Consequently, Tandem was acquired by Compaq who in turn was acquired by HP. NonStop is now owned by HP as part of their Integrity NonStop products. Aside from Tandem’s solutions, even with all of the infrastructure redundancy, many are still just a data center outage away of impacting an application. The bottom line is: It is impossible to build a 100% resilient infrastructure. That is true either due to 1) it is cost prohibitive and 2) becomes a statistical probability problem. For many, the value comes down to the statistic probably of an outage compared with the protections taken.

Making the move

Over the past five years or so, companies have looked at the economics to build redundancy (and resiliency) at the infrastructure layer. The net result is a renewed focus on moving away from infrastructure resiliency and toward low-cost hardware. The thinking is: infrastructure is expensive and resiliency needs to move up the stack. The challenge is changing the paradigm of how application redundancy is handled by developers of corporate applications.

IBM BLU Acceleration speaks to core business challenges with Cancun Release

Originally posted @ Gigaom Research 9/15/2014

http://research.gigaom.com/2014/09/ibm-blu-acceleration-speaks-to-core-business-challenges-with-cancun-release/

 

IBM’s BLU Acceleration is starting to make inroads in addressing common issues faced by enterprise IT organizations. BLU Acceleration is IBM’s in-memory database processing is based on DB2. In-memory processing provides significant performance advantages over traditional methods by eliminating the need to constantly read and write from hard drives. Instead, BLU Acceleration pulls the data into memory and performs the analytical processes within memory. This results in accelerated performance during analytical operations.

IBM’s Cancun Release of BLU Acceleration includes a number of new enhancements to the core product including support for Shadow Tables, Oracle & SAP and IBM’s POWER8 integration.

Shadow Tables

The Cancun Release provides the ability to conduct operations using tables on top of existing tables within the database. Interestingly, the Shadow Tables are column-oriented versus traditional row-oriented tables. This provides a second layer of capability without impacting the performance of core table structures.

Integration with Oracle and SAP

In different ways, IBM is providing greater integration with both Oracle and SAP. For Oracle, IBM is providing tools to migrate existing Oracle environments into IBM DB2 in order to retain existing work. This is key when considering a move from one database platform to another.

For SAP, IBM has provided greater integration with SAP BW (Business Warehouse) beyond the core offering. In doing so, SAP workloads can leverage BLU Acceleration with a number of enhancements. It will be interesting to see how this space evolves compared with SAP’s own in-memory solution, SAP HANA.

Integration with IBM POWER8 processor

The last of the Cancun Release enhancements provides optimizations that fully leverage the POWER8 processor such as concurrent multithreading and 128-bit register instructions. In doing so, IBM creates a powerful combination of tying software applications to engage specific hardware features and therefore optimizing the application for the hardware platform.

Migration Required

IBM BLU Acceleration provides a number of opportunities for in-memory database process. The catch is that it leverages IBM’s DB2 database. In order to leverage the benefits, customers will need to migrate from their existing platform (Oracle, SQL, etc) to DB2.

For organizations looking to enhanced performance in their Big Data and Analytics operations, in-memory processing is key. DB2 with BLU Acceleration is an interesting solution but may pose a moment of pause for non-DB2 customers when considering the requirements to migrate. For Oracle customers, the migration tools in the Cancun Release will help with this process.

Where Does Rackspace Go From Here?

In the past week, the conversation around cloud computing has pulled the spotlight toward Rackspace (NYSE: RAX). Today alone, the stock is trading up 20%. So, why all attention in an otherwise mixed field of great innovators and steady stalwarts? A story in the Wall Street Journal suggests that Rackspace has hired Morgan Stanley to help evaluate options.

That story alone has generated a considerable amount of fodder on the blogosphere and Twitter streams. In addition, there was considerable chatter at this week’s OpenStack Summit in Atlanta.

Internal Competition

Rackspace’s historical ‘bread and butter’ comes from managed hosting and their legendary fanatical support. Then comes along cloud computing, Rackspace’s cloud offerings and a few acquisitions. The problem is that their traditional hosting services and cloud offerings could easily compete with each other. While some will quickly deny this point, the reality is that enterprises moving up the value chain will inevitably move from traditional managed hosting services to cloud offerings. The challenge is that the revenue and cost model for each is very different. In essence, the shift from managed services to cloud offerings will create a drop in revenue without further augmentation in either new customers or additional services.

The OpenStack Factor

Rackspace was an early, and significant, contributor to OpenStack. OpenStack is open source software that presents a strong contender for companies looking to build private and public clouds. In the past 6-12 months alone, OpenStack has received significant support from across the technology industry.

As an early supporter and major contributor to OpenStack, Rackspace got tagged as playing a heavy-handed role in controlling OpenStack’s development. Right or wrong, at the time there was a dearth of corporate leadership at the level Rackspace was playing. So, Rackspace pulled back and others quickly filled in. The question being posed is: Did Rackspace potentially pull back too far?

Today, the picture is quite a bit different. There are a number of major technology companies that have embraced OpenStack and are significant contributors. The question at the OpenStack Summit was whether OpenStack could benefit from a corporate leader helping drive the movement. If so, that could bring things full circle. The question is, with Rackspace’s deep bench of experience and involvement in OpenStack, could they be that leader?

Potential Suitors

Many have noted the potential suitors if Rackspace is contemplating sale. Brandon Butler of Network World mentioned some of the notables in his Cloud Chronicles post. Among those is a familiar cast of characters from technology’s elite.

So, what does all this really mean? Bottom Line: It’s anyone’s guess. But I have a theory.

The Private Advantage

I suspect one option may be to take the company private in order to provide some breathing room to retool. The shareholders of publicly traded companies are a fickle bunch. They’re looking for improvements in revenue and shareholder equity every single quarter. Miss a quarter and watch the stock price drop precipitously.

Sure, a company could make the necessary changes while flying as a publicly traded company. But that would require incremental change to minimize the impact to revenue. As such, it would be a slow and tedious dance in an otherwise dynamic and quickly changing industry. Not exactly a match made in heaven.

Going private would provide Rackspace some breathing room during a dip in revenue while the company retools to take advantage of the assets they have. During that time, they could realign their hosting and cloud businesses to take full advantage of their existing customer base while leading them through their maturing from traditional services to cloud.

Bottom Line

Time is not a kind mistress and I suspect Rackspace sees both the opportunity and the writing on the wall. However, the changes must come quickly as time is a constant and not redeemable.

HP Launches Helion to Address Enterprise Cloud Adoption

Today, HP takes a huge step forward to address the broad and evolving enterprise cloud demand through their HP Helion announcement. HP Helion presents HP’s strategy to provide a comprehensive cloud portfolio. As HP’s CEO Meg Whitman mentioned, “HP is in it to win.” HP is investing over $1b in their cloud-based solutions. It’s clear that HP is working hard to win the new enterprise game.

Traditional IT demand is not going away, but the demand for cloud is increasing. Most enterprises struggle to leverage traditional IT while adopting Transformational IT. Providers, such as HP, need to address this complex and hybrid approach. With Helion, HP ups the ante in addressing this demand.

Today, HP launches their Helion brand encompassing their entire cloud portfolio. The formerly know HP Cloud solution is now part of the Helion branding. But the key change isn’t the branding change. It’s the end-to-end products that address an enterprise’s needs regardless of their state of cloud adoption.

Open Source Software Part of HP’s Strategy

HP’s commitment to OpenStack is not new. They have two board members as part of the OpenStack Foundation. And their further commitment to embrace OpenStack as part of their core cloud offerings furthers both HP and the OpenStack movement as a whole. OpenStack is a key opportunity for enterprises and service providers alike. However, open source software, and specifically OpenStack has presented significant challenges for enterprise adoption.

One of the first solutions from HP is their OpenStack Community Edition (OCE). OCE is intended for entry-level use up to 30 nodes. OCE is an approachable way for enterprises interested in OpenStack to get started. For enterprises interested in going beyond 30 nodes, HP’s commercial solution bridges the gap.

OCE is not only open source, but supported by HP. It’s also one of the first distributions based on the OpenStack Icehouse release. HP intends to ship updates every six weeks, which will keep the distribution fresh. HP OCE is available today as a free download.

Also announced today was HP’s commitment to Cloud Foundry. Cloud Foundry presents an additional opportunity for enterprises to embrace cloud through PaaS. For many enterprises, PaaS presents the solution between a core infrastructure solution and SaaS solutions. Plus, PaaS provides portability for applications based on a specific platform.

In Summary

HP Helion presents one of the most comprehensive end-to-end solutions for enterprises today. OpenStack is very interesting for enterprises, but difficult to consume. Helion lowers the bar and gives enterprises options they’ve been clamoring for.

What Happens if Twitter Went Away?

Ok, that sounds like doom and gloom…but is Twitter too big to fail? Today marks six months since Twitter (NYSE: TWTR) went public. Twitter priced their IPO at $26 per share. On the first day of trading, their stock reached a high of $50.09 and ultimately closed the day at $44.90.

In addition, the lockup ends today for Twitter’s early shareholders or roughly 81% of Twitter’s stock. As such, the stock cratered almost 18% to $31.85.

Twitter Stock Price

At the same time, user growth and EPS are both decelerating. For the naysayer, this paints a picture of impending doom. Whether you believe that is the case or not, the question still exists.

Twitter User Numbers

What would happen if Twitter went away? What would happen to the users and demand? Would it shift to other Social Media sites like Google Plus or Facebook? And would it put a chilling effect on social media as a whole?

Many believe that there is value in social media. Could it be as simple as finding a balance between free and paid services? What are you thoughts?

 

Note: Originally published to Medium: https://medium.com/p/21aa6f8f7323

First Impressions of EMC World

EMC World, EMC’s core annual conference is this week in Las Vegas and there are a number of very core things to watch out for. EMC’s presence in the enterprise space is legendary. However the enterprise space is gaining momentum in the enterprise IT evolution. The question is: Is EMC in a position to support these changes and continue to provide the leadership they’re known for. Bottom line: Companies are moving to the cloud. On the surface, this could present disaster for EMC. Key will be EMC’s ability to shift and help customers embrace the cloud.

Importance of Storage

Storage has grown up. No longer are the days where storage is just a place to store data and files. Storage is now key to the success of any given application. EMC clearly understands this and needs to evolve to this change. This is new! But it provides a radical shift in opportunity for companies like EMC. Look for EMC to make the connection between applications and storage.

Partnerships & Ecosystem Development

EMC provides leadership to enables IT to provide greater business value. The key is to evolve quickly and provide solutions that are needed both today and moving forward.

One could argue that no one company can (or should) be everything to everyone. Even very large enterprise providers such as EMC, need to embrace this shift. One example of EMC’s recent shift is their partnership with SAP. Frankly, this is a great sign of maturity on the part of EMC. Similarly, HP recently started providing their ‘Shark’ solutions for SAP’s HANA. Look for EMC to embrace this relationship and look to other key relationships between EMC and key enterprise players.

Open Source Software Integration

It is clear that open source software (like OpenStack) is changing the way enterprise solutions are built and consumed within a completely new economic model. The more mature enterprise-class providers will acknowledge this shift and embrace it. Look for EMC to provide greater integration with open source solutions.

Enterprise to Service Provider Shifts

Historically, enterprise-class providers create solutions specifically for enterprises…not service providers. Service provider requirements are quite different from that of their enterprise counterparts. At the same time, the shift in demand from enterprise to service provider happens over time, not all at once. Look for EMC to acknowledge this shift in terms of integration between solutions and changes in their management tools. The impact of general-purpose storage solutions also changes the paradigm for EMC. EMC needs to demonstrate value beyond the underlying physical hardware.

The VMware and Pivotal Impact

A constant question for EMC is how VMware and Pivotal play a role in EMC’s future. Both companies provide solutions that support the evolving changes within the enterprise. But potentially create a loggerhead for openness. Can EMC embrace the changes and innovation from both VMware and Pivotal, but still maintain flexibility in their open approach to alternative solutions? Look for indications of this through their partnerships and reference architectures.

Timing is Everything

EMC provides core storage solutions for key enterprise applications. In many ways, these are the very applications that are both sensitive to enterprises and harder to move. In both cases, this translates to risk. Enterprise customers have been hesitant to make the shift from traditional storage solutions to alternative approaches. That attitude is changing. Change is no longer an option it is a requirement. How is EMC taking a leadership role to help existing enterprise customers make this shift? Look for EMC to provide examples of flexibility beyond the traditional enterprise constraints.

In Summary

This year, more than any in the past, is a watershed year for EMC. This year, the stars are aligning where customers are open for change, looking for help and ready to get started. The traditional enterprise sacred cows are up for grab. Now is the time for EMC to demonstrate how they can make this shift and continue to provide leadership to the enterprise customer.