October 2011 Archives

Bucking the trend in tough times can bring its own problems

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If you talk to people at Citrix you can't escape the impression that whatever the conditions elsewhere in the industry or the wider world, life is pretty good at the vendor right now. The channel's not doing too badly out of it either judging by one of the briefings I went to at the Citrix Summit where people talked of growth rates of 87% and 144%.

But there can be consequences to success. For example, EMEA vice president of channel strategy Carsten Thomsen (who can be pretty direct in conversation), revealed there were parts of the channel suffering from a fundamental capacity because they didn't have enough people to meet the demand from customers.

Even more startling was his statement that the problem was so pronounced in Germany that there were partners who could not sell any more because their capacity was "maxed out until next year".

It's an intriguing situation to face where sales channels for certain technologies may be suffering constriction because of a lack of capacity to fulfil demand, especially in these rather straitened times. You could even label it bizarre, but it's still a problem. 

The lack of suitably trained and qualified people available is driving Citrix to try and use its own consulting resources and technical support people to help drive "knowledge transfer" to the channel. Which shows it's being proactive about the situation but these things still take time. 

And while you might argue this is a good problem for a technology supplier to have, it's also potentially a bit of a disaster if you're having to turn customers away or put them off.

Desktop virtualisation is not so easy PC

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Having attended VMworld and Citrix Summit in the space of a week, one of the main impressions I came back with was that for all the talk about desktop virtualisation over the past two years or so, it is turning out to be a bit more complex and expensive than most people originally thought.

While everyone understands the merits of desktop virtualisation, it appears that people are still concerned about the costs and the complexity involved. For instance, in the latest Citrix Channel Index, resellers reported that for most customers the cost of additional infrastructure and complexity of virtualisation technologies were their top concerns.

Informal conversations with resellers seem to reinforce the impression of a market that hasn't quite hit the heights people expected. The cost issue may be addressed in the near future if Citrix delivers on its prediction that the price of virtual desktops will drop below their physical counterparts within the next six months or so. 

The complexity is another issue, of course, but one that provides an opportunity to do what partners are supposed to do best. As Citrix EMEA vice president of channel strategy Carsten Thomsen pointed out, although desktop virtualisation is a "truly transformational technology", organisations still require help understanding its full potential.

"It's a perfect scenario for the channel to provide value-add in the form of genuine consultancy and service," he told MicroScope.

It's interesting to note that Citrix resellers, in any case, seem to be getting the message from the customers and living up to Thomsen's advice. According to the Citrix Channel Index, nearly 60% of partners believe their primary role is to provide consultancy, advice and knowledge around desktop virtualisation.

Microsoft's Android patent bonanza

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Here's an interesting stat: according to Microsoft, it now has patent agreements with OEMs that account for over half of all Android devices.

Including its latest deal with Compal, Microsoft has patent agreements with 10 Android device makers.

There have been suggestions that Microsoft is actually making more money out of its Android patent deals than from Windows Phone sales, although the software giant has tried to downplay them.

Still, while it sorts outs its mobile OS strategy, it must be a comfort for Microsoft to be making money from a rival platform. That said, it will probably have mixed feelings if the payments from royalty cheques become significant as they would concrete evidence that Android sales were shooting up.
 
Which would only make it harder to dislodge, if at all, when Microsoft gets its act together.

Not everything is virtual at VMworld

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As more than one observer has already remarked, this year's VMworld Europe event in Copenhagen was occasionally like a conference in reverse. This was most obviously manifested in the fact that the keynote from VMware CEO Paul Maritz was delivered on the final day of the show (20 October), rather than the first.

That it happened the morning after a big party in an old Carlsberg brewery for those attending the show didn't help to lift what seemed, on the whole, to be a fairly muted atmosphere at the morning's event. It probably didn't help that after two busy days at the show, many people in the audience were probably starting to turn their attention to the journey home.

The strange timing of Maritz's keynote was dictated by his attendance at the high profile "mastermind keynote interview" at The Gartner Symposium in Orlando, Florida on Tuesday, 18 October, the opening day of VMworld.

Sadly, while VMware may be able to make it possible for businesses to have as many identical virtual machines in as many different locations as they like, short of creating a virtual Maritz, the company still doesn't have the technology to make its CEO appear in two different places at the same time.

iOS5 and iCloud upgrade is a painful process

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There was a lot of hype around iCloud and the launch of iOS5 yesterday. They were bringing lots of wonderful features for Mac, iPhone, iPad and iPod Touch users, far too many for me to list here.

But here's the thing: if Apple knew these products were going to be incredibly popular, don't you think it could have done something to make sure they were easy and quick to download? It has taken me close to 5 hours to download iOS5 onto my iPhone via iTunes. And even then, it dropped the connection two or three times.

I thought about going for the 'download only' option for my daughter's iPod Touch but the connection to the network dropped on that too.

To take advantage of iCloud, I also had to download the latest version of OSX, 10.7.2. I tried that and it took me four or five hours to download it and, again, the connection got dropped a couple of times as well.

But here's the kicker, as one of the few MobileMe users out there, you'd expect the transition from MobileMe to iCloud to be fairly painless. You'd be wrong. Oh, the transition was lovely and seamless - until it came time to try and get into my mail account again. Then I was told that my user name or password for iCloud was incorrect. Not just on my iMac but on my iPhone and my iPad too. 

And as I write, the connection to download iOS5 has just dropped again. 

Steve Jobs famously remarked that the launch of MobileMe was "not our finest hour", iCloud may well be working better for everyone else out there but to me, so far, it's a right old mess.

"Frustrated" IT professionals keen to switch jobs

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perrin.jpg"Frustrated", "Numb", "Unchallenged" and "Underpaid". Those are the words used by IT professionals in Ireland when asked to describe how their job made them feel. Do their UK equivalents feel the same?

According to the survey of IT professionals in Ireland by Archer Specialist Recruitment, as many as three-quarters of those who responded planned to leave their job in the next three years, a third complained their role did not match their skill set and just under half (45%) felt their future in the company where they worked was not secure.

Not happy bunnies then. Archer's principal IT recruitment consultant Sam Perrin suggested some of the findings might be down to expectations. "A lot of IT professionals have high expectations of their jobs with the grass being greener with other Silicon Valley type organisations. This creates a feeling of frustration," he stated. 

"Some companies fall into the trap of only thinking about their own immediate deliverables and ignore the creative potential within their team," Perrin added. "Most companies have had to become leaner, requiring more from each person. IT professionals often work a good stretch beyond a 40 hour week which can make them feel underpaid."

In other words, companies are not only busy sweating their equipment assets, they're also sweating their people. It's an understandable development but it's hard for people (and businesses) to see too far ahead when the sweat is blurring their vision.


Blackberry outages send message on back-up strategy

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If I was RIM, I might be asking some hard questions of my IT network provider (assuming I had one) in the wake of the much-publicised outages at the Blackberry-maker.

According to the company's most recent pronouncement on the issue, which has left users unable to use Blackberry messaging or email services, the problem was caused by "a core switch failure within RIM's infrastructure".

Of course, it's not quite that simple because, as RIM's statement explains, the system was "designed to failover to a back-up switch [but] the failover did not function as previously tested".

What a way to find out. In RIM's defence, at least it had a back-up option, but you could understand how the company might be hopping mad at having shelled out good money for a back-up switch to handle just such an eventuality only to find at the crucial moment that the bloody thing didn't work!!

I'll wager someone has been getting some very angry phone calls from RIM about this. Well, they wouldn't have received the emails or messages.

Best value for government contracts? What about everyone else?

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Interesting to see Lord Digby Jones, former head of the CBI, calling on the government to change its procurement strategy and use "best value" rather than" best price" as the yardstick for contracts.

Although we might quibble over what constitutes "best value", his sentiments are laudable, so laudable in fact that I wonder if he might also call on members of the CBI and other business bodies to follow the same yardstick in their procurement strategy.

Lord Digby Jones obviously believes a shift to "best value" will help UK companies to win tenders to supply goods and services to central and local government. One would hope that if they do so well set against the "best value" yardstick that the very least UK-based businesses could do would be to apply the same principles further down the supply chain when it comes to their tenders for goods and services.

Creating such a virtuous chain of value would surely serve to reinforce the credentials of "best value" as a bedrock for tenders and contracts all the way up and down the supply chain.

Steve Jobs: the first business superstar?

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jobs.jpgIf you want to gain a sense of Steve Jobs' achievements, you only need to look at the reaction to his death. I'll wager that no other technology boss - no other business leader even - would have so many eulogising him or her after their death, the President of the US, fellow CEOs, the Mayor of New York, George Lucas, the governor of California. 


Very few would generate so much coverage in the mainstream media - TV, radio, newspapers and web sites. And which other IT CEO would have members of the public leaving flowers at their local office or store?

So what is it about Jobs that makes the response to his death akin to something you might see when a major film star or musician passes away? He was, in many senses, the first superstar of the business world. 

Jobs and Apple were so closely intertwined in people's minds as to be almost one and the same. Apple is no different from other companies in that it makes products, but the difference is it makes products which a lot of people buy and love (not just Macs but iPods, iPhones and iPads). Lots of people might use PCs, for example, and not give a damn about Macs but they would love their iPod Touch, or their iPhone or their iPad.

Emotional attachment to a thing is a hard trick to pull off. To make it happen, you need to create a product that engages people intuitively to the point where they can't understand why they never had it before. That means placing greater emphasis on design and ease of use. The underlying technology is only part of the overall equation.

Jobs was able to appreciate that technology wasn't the be-all and end-all so Apple's products often tended not to be the fastest or most powerful or have the most ports or whatever else techies thought were particularly important that week or month. Technology was part of the equation in delivering a successful product but what it came in, how it looked and how you engaged with it were as important.

Too many technology companies failed to understand this and it's a measure of Jobs' and Apple's influence on the computing and mobile phone world that so many of them have been forced by the success of products like the iMac, the Macbook, the iPad and the iPhone, to re-evaluate their own product development and design processes. Why? Because Apple taught people who buy products to expect more from the people who made them.

So how does that explain the reaction to Jobs' death? Like Apple, Jobs was always just outside the technology mainstream. His outsider status made Jobs more famous in the IT sphere than if he had been the CEO of yet another PC maker. It also gave him the ability to take Apple beyond computers into music, for example, an area which touches people much more directly than computers have ever done.

iPods and iPhones expanded Jobs' and Apple's engagement with people to the point where he and the company resonated with the wider public far more widely than any of their rivals. By following his instincts, Jobs transformed his outsider status in the IT sphere into superstar status in the wider world. He is the first person from the technology world to do this. It will be interesting to see, as our engagement with technology becomes more pervasive, whether others will be generate the same level of response in years to come.

Oracle OpenWorld not so open to Salesforce.com CEO

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Doesn't look like Oracle's OpenWorld event in San Francisco is all that open after all. What else are we to think of the bizarre story that Salesforce.com CEO Mark Benioff has had his keynote speech, due to be presented at the event today (5 October), cancelled. And on the day before it was scheduled too.

The redoubtable Benioff has arranged to present his keynote anyway, but in a nearby restaurant. "Larry just cancelled my keynote tomorrow," Benioff tweeted yesterday (4 October)."Join me @ St.Regis AME restaurant."

"Larry", in case you haven't twigged, is Oracle CEO Larry Ellison.

Of course, the story isn't quite as clear-cut and "open" as Benioff would have us believe. Oracle had actually rescheduled his speech to 8am tomorrow (6 October). Both Oracle and Benioff probably knew not many people were likely to attend, especially as there's a big party tonight, but it stills leaves a little room for argument as to whether the speech was "cancelled" or "rescheduled".

In any case, it's great publicity for Benioff's keynote and it's likely to be even more popular than normal as a result. 

Does business have its head in the cloud?

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When I first saw the headline on the MicroScope story, I was pretty impressed. "Cloud to become a business conversation in 2012," it stated. According to a global study by auditors KPMG, cloud computing would no longer just be a technology conversation in 2012 but it would become a business one too.

Well, I suppose it's a question of how much a part of the business conversation it becomes. For example, if a senior executive asks someone in IT "what about this cloud computing thing then?", does that count as a business conversation?

Maybe not if you consider that, according to KPMG, of the 806 senior executives in 15 countries, up to 81% of businesses are either planning a cloud implementation, are in the early or advanced stages of experimentation or have full cloud implementations in place. Is it just me or does there seem to be quite a bit of putting together there? Would it be more informative to know just how many, for example, were still at the planning or early stages of experimentation?

In any case, KPMG found that 10-15% already run all core IT services in a cloud or are on the path to doing so. The fact that seems like quite a high number suggests cloud is doing pretty well. Commenting on the results, KPMG UK technology head Tudor Aw argued they showed cloud computing would move from being a "competitive advantage to an operational necessity".

Well, up to a point. Because the survey also noted an overwhelming number of those taking part in the survey reported they needed to be shown potential cost savings to justify a move to the cloud. To me, that doesn't sound quite like "operational necessity" just yet although it may be the case that those who have adopted cloud will find it becoming so. I think people are concentrating on saving money first and it's encouraging in that light that three-quarters of those who have made the move to cloud report they have reduced costs.

It's important not to dismiss saving costs as an important argument in favour of cloud computing in any business conversation, especially in these straitened times. In fact, with the business becoming much more focused on cost, it may well be that the perceived cost benefits of cloud computing are an important weapon in getting it front and centre of any conversation. 

Yes, partners should be committed, but how do you define their commitment?

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"Underperformance is no longer an option." Chilling words from Anthony O'Mara, Trend Micro EMEA senior vice president, in the context of what the vendor expects from its channel partners going forward. 

He hits the nail on the head when he describes most vendor partner programmes as "nothing more than a restrictive table of discounts" which much of the channel has responded to by adopting "coping strategies, rather than engagement strategies". 

The new Trend Micro partner programme, he continues, is set to "challenge and reward both our commitment to the channel and the channel's commitment to Trend Micro as a vendor". Nothing to disagree with there, especially as it's a statement that could be applied by any vendor to any partner programme. I doubt there are any programmes that don't reward the channel for commitment to the vendor or programmes that reward channel partners for not showing commitment to the vendor.

Anyhow, O'Mara is specifically referring to the weakness of some partners in serving the emerging market of delivering security through a hosted approach. What he fails to address is whether partners may not be quite as gung-ho as Trend Micro would like because their customers aren't on board yet either. We don't know. While there is a requirement for channel partners to help vendors promote their products and their strategy, they also need to reflect the demands of their customers.

Whatever happens, I suspect the partners who end up being invited to leave the partner programme will be probably be those who are less enthusiastic about Trend Micro irrespective of whether they adopt hosted models or not. And I also suspect that there may well be instances where certain partners are kept on board even if they are not exactly shouting the Trend Micro message from the rooftops because it will be in the vendor's interest to engage with them and, hopefully, their customers.

It's all down to how you define that word "commitment".

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This page is an archive of entries from October 2011 listed from newest to oldest.

September 2011 is the previous archive.

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