Tag Archives: ebizQ

Cloud and the end of the PC era

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I was asked to comment on the question “Are we close to the end of the PC era?” at ebizQ. It was a good enough question to prompt this post.

Indeed we are – I’d say that we’re already beyond it. I think that the proliferation of web applications is the curtain call of the PC era, leading the way to the Cloud era. I consider myself an avid PC user and cherish its stand-alone autonomy, yet I already use my PC mostly to access web based applications. And without web access, much of the stand-alone value would become a moot (or should I say Stale?) point.

The PC era introduced the practice of Business Empowered IT, in which the central IT department was short-circuited by business units who needed situational solutions “now and here”. That practice is endowed to the Cloud era, but in a more mitigated manner.

After the heady drunkenness of Business Empowered IT adoption, enterprises woke up to the hangover of unmanageable application portfolios and business disruptions due to rogue code. The result was a backlash trend towards centralized IT, which made PC’s a physical extension of the computing centre.

But it did result in a role change, in which Business got the lead role in requisitioning new solutions and IT projects.

The introduction of the Cloud and SaaS brought back some of the PC era Business Empowered IT practices, as the well-known example of Salesforce.com demonstrated. But at a very different level. What we see now is actually Business Empowered Solutions (or Business Technology, as Forrester termed it), in which what really matters is the process and not the IT implementation.

That is further amplified by the rapid adoption of mobile computing, in particular smartphones and tablets. As long as you have web access, who cares about the device?

And as one would expect, in the Cloud era we see completely new business practices and enterprises, which are the embodiment of Business Technology.

Take for example eBay and its Partner Network business (ePN). This whole business revolves around web sites and applications which reference eBay offerings and catalyse sales of eBay merchants. That’s actually a business which is already derived from existing Cloud business, and which could not exist without a thriving internet economy.

The PC, or any other IT equipment, has become immaterial and a commodity.

So here we go – applause to the good old PC, and Hello Cloud.

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Tips about (Cloud) Service Culture and Contingencies

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A recent discussion at the ebizQ forum is “How Should Companies Prepare for When the Cloud Goes Down?”. It triggered this post.

What do companies do when the electricity goes down or the phone is out? I am not familiar with outage statistics of the Internet at large or specific Cloud Services providers, but I venture to guess that their track record is not worse than that of the major utilities – probably even better. What is often missing is feedback from those service providers when they experience problems. I rarely saw providers that acknowledged a service interruption while that interruption took place. This is the most frustrating part – you do not know if the fault is within your sphere or if it is external.

A very recent example is Orange in Switzerland – following the announcement of iPhone 4, their web site became overloaded and registered users could not access their account – unrelated to their interest in the iPhone offering. Yet, the only message you got when trying to log on was that it cannot present you a personal iPhone offer due to the high demand – and no word about the general login problem. It took about a week until you could log-in again. I expect providers to follow the example of Salesforce.com and be transparent about their on-going service level.

Then comes the contingency aspect. Those who need constant electrical power install UPS systems. Those who need constant communications use multiple alternative networks. And those who need constant computing have DRP and facilities and processes in relation to their service tolerance. Why should using the Cloud be different?

Now let me get back to the popular apprehension about the Cloud going down – and while we’re at it what about the risk of your Cloud Provider going under? One of the most popular SaaS integration applications at Magic Software is the replication of Cloud based data – simply providing an integration link between a Cloud application (such as Salesforce.com) and a local DBMS hosted on the company premises. I consider this as some kind of life insurance policy – not too expensive, not a perfect solution, but something that would help you survive in case of the ultimate disaster.

And putting things in proportion, data is probably safer and more available at Salesforce.com systems than in most companies’ data centres…

My recommendation? Do your due diligence when choosing a Cloud service, require transparency from your Cloud provider in particular on the service state, and set up a contingency to cover your disaster tolerance.

Why should BI be considered in isolation?

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There’s an evolving conversation at ebizQ about BI, questioning if BI is forward or backward looking (is it like driving while looking at the rear-view mirror?).

I’d say that driving without a look at the rear mirror can be quite dangerous. Rather than being holistic, we should consider BI as one technology which contributes to better management, rather than as an isolated panacea.

If you can apply BI to on-going data in order to make near real-time decisions, then you are not just looking backwards. Say that you approach traffic lights, and the green blinks announcing that it would soon turn to red. Should you hit the accelerator or the breaks? If your BI can give this answer, taking into account past behaviour and data as well as present data (speed, location, …) – then you have a good implementation.

We see this kind of implementation more and more. In the context of Process Management, one of the fast growing products (Appian) actually stems from BI and applies this technology to many facets of their product. Other BPM vendors do similar things. BI is also increasingly integrated in the Office environment with add-on products such as Panorama.

To conclude with a broader perspective, let’s not underestimate the relevance of history. History is part of our present and certainly impacts our future, and those who have a good understanding and insight of history usually are able to better interpret the present and make sound decisions about the future. I thing that this is what BI helps us do.