CIO Review Magazine – Oct
Transcription
CIO Review Magazine – Oct
Opinion: Dave Hale, E2Open Inc Meet the CIO: Andrew Macaulay, Clearwire In Conversation: Kumud Kalia, Akamai Technologies Bruce Anderson, IBM CIOReview The Navigator for Enterprise Solutions PUBLISHED FROM FREMONT, CA OCTOBER - NOVEMBER 2012 Leading the Context-aware Mobile Application Development Raj Tumuluri, CEO $10 CIOREVIEW.COM Contents cover OCTOBER - NOVEMBER 2012 14 PAGE story Mobile Application Development Leading the Context-aware By CR Team 06 OPINION TheRiseofthe Cloud:Threator Opportunity? DaveHale,CIO, E2OpenInc 08 CEOSPOTLIGHT RichardEicherJr,SkycoreLLC LynnLeBlanc, HotLinkCorporation GilElbaz, FactualInc 18 MEET THE CIO 24 Envisioningtobeatthe forefrontofNext-GenProcess Technology 34 TECHNOLOGY RajivRamaswami,EVP&GMInfrastructure&NetworkingGroup, Broadcom TimYeaton,President &CEO,BlackDuck Software 26 IN CONvERSATION BruceAnderson, GM-GlobalElectronics Industry,IBM FOSSandInnovationinthe ChineseTechnologySector 36 MARKETING JezFrampton,GlobalCEO,Interbrand 38 vIEWPOINT GreatSalesandEngineeringTeams sharetheSameDNA ToddMcKinnon,CEO&CoFounder,Okta TheCIOsetsthe emotionaltone foranEnterprise 28 JeffRichardson,EVP&COO,LSI 40 TheFineLineofTrustinCloud 30 vIEWPOINT JonWallace,Director,EmergingTechnology &Strategy,AppSense AndrewMacaulay, SVPIT,Clearwire CanITOpenNewSourcesOf Revenue? 42 TECHNOLOGY 20 BattlingtheChallengesinthe EnterpriseComputingIndustry BhaskarHimatsingka,CTO,Ariba,Inc. 22 SustainingCustomer’s Sophisticationis TopPriority KumudKalia,SVP&CIO, AkamaiTechnologies MatthewBrown,VP&PracticeLeader ServingCIOs,Forrester BigBroadData:TheroleofDataAPIs 32 Consumerizationof ITDoesnotEqualBYOD 44 vIEWPOINT JoshDasher,VP–Products&Marketing, AppCentral AnantJhingran,VPData,Apigee UnderstandingAppStore Upkeep-SimpleIsnotEasy ChrisSchroeder,CEO&Founder,App47 33 UnlockingBigData: 46 vCTALK ThenextBigOpportunity AjayChopra,GeneralPartner, TrinityVentures FaisalHusain,CEO,Synechron C IO R ev i e w |3| October - November 2012 CIOR eview OCTOBER - NOVEMBER - 2012 Publisher & Editor-in-Chief Harvi Sachar Managing Editor Christo Jacob Sr.Visualizer Dips Mailing Address CIOReview 44790 S. Grimmer Blvd Suite 202, Fremont, CA 94538 T:510.490.2428, F:510.440.8276 CIO Review Oct-Nov 2012, volume 1-3 Published bi monthly by CIOReview subscription rate: $60 for 12 issues To subscribe to CIOReview Visit www.cioreview.com Copyright © 2009 CIOReview. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited.The publisher assumes no responsibility for unsolicited manuscripts, photographs or illustrations. Views and opinions expressed in this publication are not necessarily those of the magazine and accordingly, no liability is assumed by the publisher thereof. C I O R ev i e w |4| October - November 2012 R Editorial Information is Wealth ecently, I happened to meet a guy who does nothing for his daily living, but lives happily having daily meal three times a day. How? He knows the sacred places in the city where the free meals are offered. This relates me to the fact that “Information is Wealth”. Today, Venture capitalists are realizing this fact and are betting high on Big Data. Today “Big Data” is a part of every sector which can be captured, communicated, aggregated, stored, and analyzed. A recent study states that the market for big data tools will rise from last year's $9 billion to $86 billion in 2020, when spending on big data tools will account for some 11 percent of all enterprise IT spending. Hence this has become a very serious issue that the business leaders and policy makers need to tackle the economic possibilities of big data. Social media sites, smart phones, and other consumer devices including PCs and laptops, and growing trend of Cloud Computing and Mobile computing have allowed billions of individuals around the world to contribute to the amount of big data available. This has cautioned most of the players in the industry to monetize these resources in every means. Large corporations like SAP and IBM draw a lion’s share of the attention surrounding “Big Data” and analytics platforms. But thanks to the resourcemagnifying abilities of cloud and a variety of open-source tools, more startups are emerging with products designed to chop, sort, and analyze massive amounts of information. Today, what we lack is the talent that can handle the massive information today. McKinsey states that the U.S alone faces a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts to analyze big data and make decisions based on their findings. Big Data being at an inflection point, having a core set of deep analytical talent is not enough to transform an organization, especially if the key business leaders and analysts do not know how to take advantage of this big data capability. All of the business leaders in an organization need to have deep understanding of analytical techniques in order to make maximum use of it, which will help them to deliver maximum value to their customers. Please do share your thoughts with us. Christo Jacob Managing Editor [email protected] Opinion The Rise of the Cloud: Threat or Opportunity? The author is CIO, E2Open Inc DAvE HALE E2Open Inc (EOPN) is a provider of cloud-based, on-demand software solutions enabling enterprises to procure, manufacture, sell, and distribute products more efficiently through collaborative execution across global trading networks. Founded in 2005, the company’s impressive clientele include Celestica, Cisco, Dell, Hitachi, IBM, LSI, Motorola, RIM, Seagate, and Vodafone. David Hale is responsible for the company’s software-as-a-service operations, IT operations, and global support. A flood of recent articles and posts in the trade press appears bent on ratcheting up the anxiety of IT professionals as cloud-based technologies continue to gather strength and importance. To be fair, any disruptive technology is going to create some anxiety, as by definition it changes the landscape; certainly the cloud is rapidly changing the information technology market. Apart from the initial fears (e.g., the cloud will do away with IT careers) and temptations (e.g., the cloud will set me free), the ultimate reality of the cloud is that it presents new opportunities and challenges to IT professionals. Through the cloud, organizations perform tasks or use applications that leverage vast outsourced computing and processing power, which enables them to quickly scale services and applications to C I O R ev i e w |6| October - November 2012 Dave Hale In today’s world of “everything cloud,” business teams have direct access to IT resources via third-party cloud providers—and this means that technology strategy and decision-making are open to new influencers meet changing demands without requiring significant capital outlays for new network assets. This increases IT flexibility and can lower costs—but it also disrupts the normal course of business. Specifically, the cloud empowers business teams to do things that were previously the exclusive responsibility (and competency) of the IT organization. In today’s world of “everything cloud,” business teams have direct access to IT resources via third-party cloud providers—and this means that technology strategy and decision-making are open to new influencers. But this is not necessarily bad news for the IT function. It does, however, require a willingness from CIOs and IT managers to re-imagine the role and function of their teams within this new paradigm—and the ways in which they can most effectively support and guide their business counterparts. Put differently, the new opportunity for IT organizations is to: understand the shift to Internet -enabled applications, prepare their enterprise environments accordingly, and evolve management styles to meet the promise of cloud computing. IT organizations capable of this type of re-engineering and flexibility will be well positioned to reap the rewards of today’s best cloud solutions. After all, the function of cloud-based technologies is not to replace existing IT organizations, but to extend the value of the core systems they have built as well as validate the quality and effectiveness of those systems. Part of the transition will involve IT professionals relying more on skills beyond technical ones, specifically those that relate to people, processes, governance, and compliance, as the relationship between company and cloud provider becomes more critical. As Reuven Cohen notes in the Forbes article questioning open source code, application programming interfaces (APIs) and Big Data have become some of the most valuable currencies in the emerging cloud computing landscape: “APIs have become the roadmap to a network of complex and globally disperse cloud computing environments,” he says. “What and how you interact with these platforms is quickly taking center stage.” IT professionals continue to be among the major players on that cloud-based stage, as their mindsets change from fear to excitement, from IT versus cloud to IT rising with the cloud. The new opportunity for IT organizations is to: understand the shift to Internet-enabled applications, prepare their enterprise environments accordingly, and evolve management styles to meet the promise of cloud computing. C I OR e v i ew |7| October - November 2012 A CEO SPOTLIGHT QR Codes to empower Data Collection RICHARD EICHER Jr, CEO, Skycore LLC t this point, you have probably seen QR codes printed on magazine ads, direct mail pieces and posters. You may even have used a mobile shopping app for scanning a UPC barcode to compare prices of products online. We are now seeing smartphone scanning technology being effectively Richard Eicher Jr Founded in 2003, Skycore LLC is a mobile value added service provider (VASP) specializing in mobile multimedia delivery technologies and applications for mobile operators, enterprises, brands and their agencies. deployed in the workplace as employees are given tablets and smartphones or bringing their own device to work (BYOD). Merchants, educators and enterprises are beginning to roll out iOS and Android devices for AIDC applications. Because traditional mobile scanners used for AIDC can cost as much as $1,500 or more, smartphones and tablets with or without ruggedized cases offer a low cost, easily replaceable and customizable alternative. In many cases, these alternative devices are more convenient and offer more utility than traditional AIDC hardware. And they C I O R ev i e w |8| October - November 2012 are already in your pocket! As employees are exposed to the user interfaces of Android and iOS devices, the training required for commercial applications can potentially be much lower. Rugged and purpose-built mobile computers won’t go away – they are critical for many applications, and especially for harsh, rugged environments. Instead, what we will see are many new opportunities for businesses to collect data and increase productivity based on the low price, convenience and ready availability of smartphones. For the AIDC industry as a whole, we see the expansion of value-added services into these new areas. www.lightspeedml.com Codes (shelf labels), Codabar (FED-X, blood banks, libraries) and many more. Opportunities for Entrepreneurs In the first million transactions recorded and validated using codeREADr, our commercial barcode scanning app and SaaS platform, the top five ‘objects’ scanned were (in order): What is holding up adoption in the Enterprise? The camera on smartphones is excellent for scanning QR codes and UPC barcodes but has been far less efficient at reading the plethora of barcode symbologies used in most commercial enterprise applications. While some of those codes are being replaced by QR codes, most businesses will continue to use those other symbologies for a long time to come. The good news is smartphones will soon be able to efficiently scan these commercial symbologies, and do so as fast and accurately as traditional AIDC scanners. [This enabling technology will be announced in Q4/2012 or sooner.] The most common symbologies for commercial applications include PDF417 (boarding passes, driver’s licenses, shipments, documents, IDs, expo badges, etc.), Aztec (boarding passes and rail transportation tickets), Data Matrix (marking small items, marking secure items, documents, etc.), Code 39/Code 128 (tickets, shipments, packaging), Maxicode (shipments ), Plessey 1. Tickets (access control) 2. Asset Tags (real-time asset tracking and inventory) 3. Badges (meetings & expos – especially for lead retrieval and attendance tracking) 4. IDs (student, membership, patient and employee) 5. Offers, Vouchers, Loyalty Cards and Coupons (Apple’s Passbook will greatly increase this category) Entrepreneurs will be able to build third party services leveraging a smartphone’s ability to track, validate and authenticate data embedded in these objects. In particular, as many of these objects will be moving from paperbased to mobile-based (e.g. Apple Passbook or Google Wallet), they can not only deliver these objects but also close the loop and validate them without a significant capital expense for hardware. Android and IOS app development teams Quality and Testing for apps done by your team We guarantee Quality and aggressive schedules Unbelievable pricing for developers and testers Come for speed and price Stay for quality and experience of stress free working with our team www.lightspeedml.com 510.943.5090 CEO SPOTLIGHT IT INTEROPERABILITY: An Opportunity for Entrepreneurs to Innovate LYNN LEBLANC, CEO, HotLink Corporation Lynn LeBlanc Founded in early 2010, HotLink Corporation has developed a heterogeneous data center system management platform for virtual, cloud & physical computing infrastructure. Headquartered in Sunnyvale , California the company’s customers include enterprise IT organizations spanning technology, financial services and telecommunications. R arely, can you open an IT publication without reading about cloud-based computing. Most will agree that the ‘idea’ of cloud-based computing is compellingæ fully elastic capacity in which IT only pays for what is used and is removed from the day-to-day operational complexity and cost of administering undifferentiated compute resources that can instead be outsourced to others. For most sizable IT shops, the vision is a dynamic C I O R ev i e w |10| October - November 2012 mix of on and off-premise resources in an integrated pool with a single point of management, seamless workload conversion and user-provisioned services. Frequently, industry analysts describe an evolution to cloud computing as a “journey.” Unfortunately, the journey can involve many products, multiple management layers, various databases, custom scripts, service catalogs, self-service portal and substantial professional services over a sustained period of time. The technology vision is such a significant deviation from the present state of IT, implementation can take a decade. In a climate where business is required to deliver positive financial results every quarter, long-term investments are challenging to justify and completely impractical for many. A key element of the complexity of transitioning to cloud-based services is the incompatibility of the disparate virtual infrastructures being ‘pooled’ into a cloud. The x86 virtualization platforms that have proliferated over the past five to eight years each had their own management infrastructure, a tight coupling between the underlying hypervisor and the tools used to manage multihosts deployments. VMware vCenter is used to manage vSphere, Microso/ SCVMM to manage Hyper-V, XenCenter to manage XenServer, and so on. VMware dominates the on-premise server virtualization market today since they were first to market and have the most mature feature sets. Others are rapidly gaining ground as competing technologies mature. The virtualization vendors have provided APIs for integration but only expose very basic hypervisor features. The net result is that enterprises, inherently diverse due to broad scope and scale, already have multiple on-premise virtual ‘silos’ to manage with multiple management solutions in place. In contrast to the VMware dominated on-premise virtual infrastructure, the IaaS cloud service providers more commonly deployed opensource Xen-based infrastructure along with their own management tools for customers to use. Because of the platform incompatibility with the on-premise deployments, the cloud services are managed as yet another ‘silo’ in the enterprise. Most industry experts agree that an effective cloud management solution for enterprise IT must enable interoperability of diverse platforms. However, that prerequisite is out of sync with the offerings of most vendors today and unachievable with the virtual infrastructure limited APIs alone. With the extraordinary economic potential of cloud computing, IT interoperability is a huge opportunity for entrepreneurs to innovate. In fact, the company I founded, HotLink, is focused in this very area. As with all important enabling technologies for sizable markets like information technology, innovation requires talented engineers to develop novel technical solutions, capital to fund the development, and knowledgeable teams to take the solutions to market. For those who have the right motivation, talent and experience, I would consider this to be an important industry opportunity with significant upside potential. CEO SPOTLIGHT You need to know the Power of APIs GIL ELBAz, CEO, Factual Inc A Gil Elbaz Founded by Gil Elbaz in 2007, Factual Inc is an open data platform for application developers that leverage large scale aggregation and community exchange. s someone who is dedicated to creating high quality and accessible data, I am encouraged that more and more people are realizing that data in massive volumes does not really mean much unless it is high quality, verifiable, relevant, and accessible. The most important trend I see in the world of data today is that the element to create quality and accessible data is entering the mainstream. The rise in data marketplaces or data exchanges is a great sign because they enable distribution to new customer segments, more creative pricing, as well as easier data sharing. Companies like Microsoft’s Azure Data Marketplace, docs, Factual and EMC/Greenplum are creating exchanges that demonstrate, to paraphrase Bill Joy, that there may be more valuable data outside your company than in it. These marketplaces/exchanges will foster the sharing and using of external data sources and will drive the creation of business models so people can get valuable data at a fair trade. There will be a natural process of quality control as the organizers and participants of the mar- kets seek to protect their brands and insist that those who provide data show that it is correct. Third parties will review the quality of data, as they do for most other products. The rising adoption of Application Programming Interfaces (APIs) outside of the world of tech startups will accelerate data accessibility. Most people do not know that most of the traffic for Twitter comes via APIs. The same is true for other popular Internet companies. APIs allow people to incorporate data directly into applications. To make this work, you have to understand how to build and run an API and what kinds of applications it will support. Companies like Apigee are bringing the infrastructure and knowledge of how to publish APIs to market. I predict that as more great data becomes accessible through APIs and other means, the idea of a data supply chain will become popular. At Factual, we realized that all over the Internet, relevant data was available, but it was incredibly fragmented, and without any clean standards applied. Our first mission is to collect those fragments along with direct contributions from C I O R ev i e w |12| October - November 2012 organizations and individuals and to create data about places and products. We have also created many APIs to help mobile app developers, ad targeting efforts, and businesses. We think that as more and more data becomes accessible, more companies will join us in creating data supply chains. Road to the Future: The discipline of Data Science will play a much more pivotal role in shaping every aspect of a business, moving from R&D/back office to being indispensable to their core strategy. It’s the difference between having a few Hadoop engineers to employing data strategists that will ensure all functions have access to clean, high quality internal and external data, as well as a deep toolkit to do predictive analysis. While it’s exciting to see positions like Chief Data Officer, and Stanford opening a Data Science 101 class, we are still away from really knowing the combination of talent + software + culture required to affect the impact big data can have across the entire organization. I predict Data Scientists will be in the core DNA of many organizations, and a norm in the workforce versus an outlier and a minority. Challenges faced by Entrepreneurs: The characteristics of successful entrepreneurs will change in the next decade. Open source and cloud technology have dramatically lowered the costs of the development and production of new products. A startup that required $10 million a decade ago can now get going for $500,000 or in some cases even far Business Intelligence, Mobile and Cloud are the top priority for CIOs in Asia. Reducing enterprise costs did not make the top ten business priority list in 2011, but ranked number three on the list worldwide. Courtesy: Gartner Executive Programs (EXP) CIO Agenda survey less. While that sounds rosy, it also means that there is more competition ever from other startups as well as from nimble groups within larger organizations. On the consumer side of the business, we have seen a tremendous acceleration around new products and features, and in order to succeed several things have to come together. Creating great products is of course primary, but communication and marketing skills will become more important than ever as an increasing number of products and services proliferate the market. Attracting talent is the first chore. Once a product is in place, developing market awareness and changing consumer behavior is the next challenge. Successful entrepreneurs will be more balanced between engineering and communication skills. In addition, it is clear that Lisa Gansky is right on the money in her characterization of how businesses need to embrace the Mesh. The most significant moat will come from data and relationships, and Mesh-oriented products look to every customer to provide information or reach that extends the value of the entire network to the entire consumer base. C IO R ev i e w |13| October - November 2012 Cover Story Raj Tumuluri, CEO Leading the Context-aware Mobile Application Development By CR Team C I O R ev i e w |14| October - November 2012 any first-generation authoring platforms and mobile strategies focus on replicating portions of customer and employee Web portals on a mobile device. This is a logical and necessary first step for enterprises, but it is also not the endpoint. New technology is enabling mobile-only capabilities that the “conventionalweb” could never do. Consider mobile-applications that can bring-up applications for boarding-passes, as soon as you reach the airport counter or act as Keys with near-field-communication (NFC) on arrival at a hotel. These applications leverage the mobile-only features such as location, motion, type of device being used and other proximity-sensors to adapt the behavior of applications to suit the convenience of the user. Thus, a travel-application that “knows” that you are going to play Golf, can automatically alert you to sudden rain or other changes in the weather ( picking up weather information on your course-location ) and a health-care M application can simply speak to you or your loved-ones when it is time for the medication or monitoring the vital readings. These new-generation applications your customers love to use have become possible, due to the recent advances in the location-aware, speech and other sensory technologies that are now part of most popular mobile devices. Speech and other modes of interaction for convenience of user are now standard on most mobile device-platforms. However, authoring applications with these contextaware features need not require enterprises to deviate from the established web-like development paradigm or get locked-in to often proprietary or device-specific development. "User experience is critical to the delivery of sophisticated mobile applications," says Shekar Pannala EVP & CIO of Bank of New York Mellon. "To that end, we have put in place the foundation technology for natural, deviceappropriate interaction. As we roll out applications, we will C I O Re v i e w |15| October - November 2012 • The most flexible Application Development (AD) options & tools based on Open Standards • A securely managed container for all enterprise MEAP applications. Remotely install, manage and delete your MEAP applications and related data. • A cross-device-platform, cross-network Alert-messaging architecture • An Open Integration Server Connectivity Architecture which can connect to various back-end systems is instantly scalable and reuses existing IT investments • State-of-the-art interaction options (voice, touch, speech, gestures, and many more) • Available on all Smartphones, Tablets, Rugged devices, and adaptable to Embedded platforms like kiosks and other devices SMP-SmartBroker — A solution for brokerage houses that offers the customers the accurate information that they need and provides them with the ability to take control of their portfolio even while they are on the move. SMP-Pharma — Enables Field Reps to review and interact with their schedule, client data, and information as well as transactional details via mobile devices. Field Rep productivity is enhanced with the ability to update opportunities, review account information, real time monitoring of the progress of new competitive drugs through the clinical trials and approvals process, and furnishing information on any developments that would threaten competitive position. SMP-SmartMail— Provides intelligent mobile access to email, contacts directory, alerts and calendar. Interaction with SmartMail is multimodal, providing hassle free access to the user. SmartMail alerts the users based on their alert rules. D-CMS- Digital Content Monetization Server—By the induction of D-CMS, content-service-providers can simplify the introduction and modification of content, applications and services to newer target-platforms; attract new customers with personalized, tailored offerings; increase competitive advantage with rapid access to new content and applications using open interfaces; deliver services that drive revenue, lower cost for the deployment and operations; increase stickiness and capture event-driven market opportunities; enhance the quality of customer experience through personalized, customized content by mining customer use and offering services and packages that adapt to their changing needs and devices. SMP SmartCare — The application caters to the diverse and demanding needs of all the constituent parties including physicians, caregivers, patients, hospitals, and pharmacies among others. Mobile Force Automation (MoFA)— Enables enterprises to assign jobs based on customer needs, and field workers to send, receive, and collaborate on data and information as they move through the work hours, wherever they may be in the given territory or facility. be enabling context-aware interaction using voice, gesture and other natural interaction capabilities. Users will be able to simply say 'transfer money from account A to account B' as well as use touch or keypad inputs. While we may not implement all the features on day one, it is important to have an architecture for the future." Context-awareness can make personal mobile devices more responsive to individual needs and help to proactively anticipate user’s situation and intelligently deliver personalized information through real-world appli- cations and services, using sensor inputs, data analytics, social networks and delivery context. Somerset, New Jerssey headquartered Openstream leads the pack in providing context-aware features for enterprises and authors of mobile applications through its W3C Open standards based Cue-me™ Mobile Development platform and was selected as a Cool Vendor in Context-aware computing by Gartner in 2011. “Openstream’s mobile platform enables enterprise-solutions help transform the daily activities of an executive on the move, through compelling and convenient speech and touch user-interfaces that can adapt to the user’s situation and preferences,” says Raj Tumuluri, CEO, Openstream. Many field-users tasked with form-filling type applications find it cumbersome to use the small keypads to input data on mobile devices, often resulting in partially filled forms and inaccurate data capture in the field. So, a new paradigm of user interaction called multi-modality promises to enable enterprises overcome the challenges associated with user input Openstream Products and Solutions Cue-me Context-aware Multimodal Mobile Development Platform Shadowing the innovation curve at the W3C and other Open Standards Bodies, Openstream's Cue-me™ Mobile Enterprise Platform provides a device-and-context appropriate architecture and platform to readily embrace the current state-of-theart, while providing a future-proof strategy. Based on a distributed SOA, Cue-me™ Multimodal CoDA platform is a flexible, standards-based platform and architectural-pattern, providing a strong foundation for the rapidly evolving technology space. Cue-me provides: C I O R ev i e w |16| October - November 2012 Openstream at a Glance Founded CEO Headquarters Development & Support Center Marquee Customers Awards/Certifificcations Website : 1997 : Raj Tumuluri : Somerset, New Jersey, U.S. : Bangalore, India : A leading retail player, Bank of New York Mellon, AstraZeneca,Verizon Wireless, Shumate, Hess, Omnesys, Thermal Services, Abbott, ABML, ICICI, several leading pharmaceutical, healthcare and brokerage companies : SI Top 10 Mobile Companies, Gartner Cool Vendor, Voice&Data Top-5 mobile platforms : www.openstream.com and display on small devices. Apple’s new SIRI speech and Swipe interfaces are some of the examples of such interaction-convenience on a mobile device. Technically, the multi-modal approach or multi-modality refers to integrating graphics, text, and audio output with speech, text, and touch inputs to deliver a superior experience to the user. In essence, multi modal applications give users multiple options for inputting and receiving information. Uniqueness Cue-me: World’s First Contextaware Multimodal Mobile Authoring Platform With more than 700 types of mobile devices in use in the marketplace today, in all sizes and running various Operating systems and version, the prime goal for Openstream was to provide a robust and device-contextaware multi-modal authoring platform, which can adapt to newer device-features and interface technologies, that runs across all devices with appropriate and consistent features. Openstream’s Cue-me Platform based on asynchronous event driven architecture with its design principles based on to those of the World Wide Web consortium’s Multimodal Interaction Framework (W3C MMI) architecture, viz., modularity, extensibility, encapsulation, distribution, and recursiveness. Openstream co-authored the standard, and actively contributes to various working groups with its key research focusing on improving accuracy and usability of mobile applications using context-aware multimodal interfaces. Integrated Application & Security Management Industry analysts affirm that the next generation mobile strategy will state how the enterprise will handle a mix of corporate- and employee-owned devices, making application management and security central to any enterprise mobile strategy. Openstream’s cue-me™ platform is the first mobile development platform with integrated application management and adaptive security. Secure-container based application development enables offlinedata store and access across enterprise mobile devices that can be centrally managed. Revenue Model Perpetual & Recurring-subscription (SaaS) License revenue for the platform, solutions and services. The integrated authoring, deployment and management approach helps achieve the lowest total-cost-of-ownership (TCO) for enterprise mobility. The Road Ahead It is not uncommon that despite having built a solid technology, startups fail to survive in the dynamic market conditions. But Openstream weathered the various challenges and hurdles exceptionally well by blending the solid strategy of joining hands with large organizations in the field with broader market-reach and having a sound technology to revolutionize the future of mobile applications development. With management team drawn from Nortel, Infosys, IBM, Intel, HP, Alcatel and Verizon; the work environment at Openstream drives the spirit of innovation. In the near mid-term the company plans to continue its focus on three main industry sectors — Retail Services,Life Sciences & Healthcare, Financial services, and Media and Entertainment. It has already launched its solutions, suitable for some of the key media and entertainment businesses, energy and utility companies, and financial institutions. With about 2 million mobile devices running applications built on cue-me™ around the world, Openstream intends to continue its focus in the U.S. and Indian markets to source customers, keeping the U.S as the primary and significant near term revenue market. In India the company plans to particularly focus on the MNCs to test new products and services for future. Partnerships Today, the company has strategic partnerships with IBM, Cognizant, Omnesys, Customer XPs, mVikarsha and key partnerships with various device manufacturers and carriers around the world. C I OR e v i ew |17| October - November 2012 MEET THE CIO The CIO sets the emotional tone for an Enterprise ANDREW MACAULAY, Senior Vice President of IT, Clearwire Opportunities and challenges facing Clearwire Andrew Macaulay Clearwire Corporation (NASDAQ: CLWR) is a leading provider of 4G wireless broadband services. Founded in 2003, the company holds the deepest portfolio of wireless spectrum available for data services in the U.S. Andrew Macaulay is the Senior Vice President of Information Technology at Clearwire. He is responsible for Clearwire's IT strategy and providing software, infrastructure, desktop and communications services for the company and its customers. An industry veteran, he has held key leadership roles at Capgemini US and Level 3 Communications. With his 18+ years of experience in the telecom industry, Andrew brings a strategic leadership focus to large, cross-discipline IT development and support organizations. Moreover, he is responsible for the internal network that provides voice and data communications services for our internal employees and systems. He opens up to CIO Review about trends shaping the future of the industry and the various challenges and opportunities for CIOs. C I O R ev i e w |18| October - November 2012 Clearwire built the first 4G mobile network in the U.S. in record time. Once built, we switched into an “operate the network” mode that involved a companywide cost transformation. Now, the company is transitioning to a next-generation, ultra-high capacity network using a technology called TDD-LTE. All this involved periods of growth, contraction, and priority changes for people, processes and technology in a short period of time. We had two different IT transformations over this period of time. The first transformed our typical startup IT applications and infrastructure of disparate components into a more consolidated, mature and stable set of solutions. Over the last 18 months, we transformed again into a leaner, significantly more cost efficient IT organization without sacrificing any of the maturity and stability gains. Major tech Implementations I first joined Clearwire to help manage a complex Amdocs billing system transition. We also transformed our Data Center infrastructure into a Private Cloud solution, achieving a 96 percent virtualized environment that provides for rapid build and teardown of environments for our application teams. Just recently, we shut down the last of our old data centers. In addition we have several applications provided in SaaS or Managed Service arrangements by other vendors. We have replaced our Data Warehouse solution, expanded our Unified Communications platforms, and implemented B2B solutions with our trading partners. We re-architected the dot com sites including adding mobile versions, updated all our billing and care platforms to handle our new “No Contract” Clear service, updated the IVR achieving increased containment rates, and implemented a new inventory management system. In addition, we handled the seamless transition of Customer Care and certain engineering functions to external companies, and implemented a new SaaS based Care Agent Desktop successfully deployed to over 2000 agents in 4.5 months from project kickoff. Over the next six months, we have other upgrades and system consolidations planned. External forces transforming IT today These external forces have already changed the shape of our IT organization at Clearwire and will continue to do so. Thanks to the relative youth We always want to be trusted advisors on mobile and cloud solutions for our business.The key for us is to remain nimble and forward- looking of our company (i.e. no large, aging platforms) and a focus on virtualization during our first IT transformation, we are already structured to efficiently deliver virtualized services. We would not even consider a solution these days that does not run in a virtualized environment. I believe cloud solutions are just another delivery mechanism to be weighed on an individual case basis. I do not have rules that everything must move to the cloud or that nothing shall move to the cloud. I view the ability of our business groups to now easily identify, and even try, SaaS solutions themselves as improving the gap between business and IT communications. Traditionally in IT, we get “requirements” from the business on what they want, but there are always a lot of requirements that can’t be articulated or are “know it when I see it” situations. Embedding ourselves in with our business groups and embracing these new trends as a catalyst for figuring out how to drive business outcomes through the use of technology is working for us. We always want to be trusted advisors on mobile and cloud solutions for our business.The key for us is to remain nimble and forward-looking. Key trends shaping the industry The flow of SaaS, IaaS and PaaS offerings will continue unabated. From my conversations with peers across industries, I see more and more willingness to consider these types of solutions in mission critical areas than just a few years ago. Historical concerns are dwindling enough that a lot of traditional premise based solutions will be left behind. My prediction is that change will now happen faster than the premise based providers think. I also see more key IT roles being filled domestically. Over the last 18 months, I have focused on getting all long term IT positions at Clearwire to be filled by employees with a few key vendors pro- viding managed services. It’s amazing what you can do with a small team of the right employees in an empowering environment. Goals and challenges for CIOs today If you have not read the book “Real Business of IT” by Hunter & Westerman, I’d highly recommend it. I can’t say it any better than they did: “It’s not about IT. It’s all about business outcomes and business performance.” Last year, we demonstrated how well we could run our own IT shop enabling us this year to become closer partners with our business functions. We re-organized to align with each business function, while retaining efficiencies of a centralized IT and we changed our dashboard metrics away from how the machines are running to how we helped deliver positive business outcomes. I also believe it is the CIO’s role to be a catalyst for innovation. There are IT components to everything we do in business these days, across all industries. IT staff are frequently the only ones who see all aspects of a business from one end to the other. A CIO should unlock that knowledge and the ideas that can stem from it to provide innovation for the products and services of their business. Finally, I cannot fail to mention again the important goal of creating an environment where IT professionals are engaged at the highest level. The CIO sets the emotional tone for the organization not just the technical one. The biggest challenges are not technical. We did it all while reducing our IT budget and streamlining our systems and operations, and I plan on continuing to find ways to reduce the cost of IT each and every year while delivering more, not less, for our business. Simultaneously, we significantly increased the engagement level of the IT staff. The biggest challenge is to keep that going as the changes in our business continue. C IO R ev i e w |19| October - November 2012 MEET THE CIO Battling the Challenges in the Enterprise Computing Industry BHASKAR HIMATSINGKA, Chief Technology Officer, Ariba, Inc. Opportunities and Challenges facing Ariba Inc: Bhaskar Himatsingka Headquartered in Sunnyvale, CA, Ariba Inc (NASDAQ:ARBA), a provider of collaborative business commerce solutions was one of the first dotcom companies to leverage the power of technology and help their clients manage their expenditure better. After the dot com bubble burst they have emerged on a quest to fulfill their unfulfilled mission: to automate procurement process. Today Bhaskar Himatsingka is Chief Technology Officer of Ariba Inc, who is responsible for Ariba's technical strategy and overall product architecture is on his success ride bring in lot of IT transformation within the organization. Prior to joining Ariba, Himatsingka served as a Consulting Software Engineer for Asera, Inc. He was also a Principal Software Engineer at Oracle Corp. where he served as Team lead for the RDBMS Data Management team and earned several patentsHe has contributed key components to Ariba’s Platform Integration layer, led the initial development of Ariba Category Management solution and spearheaded efforts to drive integration across its Spend Management suite. He opens up to CIO Review about his journey in Ariba so far. C I O R ev i e w |20| October - November 2012 When we started out in 1996, we were exclusively focused on helping companies to better manage their spend by providing them with technology to automate the procurement process. But when the tech bubble burst, we quickly realized that our original vision of making procurement better was unfulfilled. So we spent many years evolving our solutions by adding capabilities like sourcing and contract management. While on that journey we recognized that there was going to be a fundamental shift in the way companies purchased and deployed software. They were no longer going to be interested in expensive, behind-the-firewall software or lengthy implementations. And despite the billions spent on technology to streamline processes, business remains highly inefficient. So we shifted our business model and re-engineered 100 percent of our solutions so that they could be delivered on-demand. And we continued to innovate and build on our network, which has become the world’s largest open trading platform. Our goal in making the move was two-fold. We wanted to make it easier for companies to do business with Ariba, but more important, we wanted to simplify business commerce. Every day when we come to work, we think about how we can make processes more collaborative between companies, not just how to make them better within a company. Change does not come easy. It took more than 20 years for the Internet and “consumer networks” to become a reality. Our biggest challenge at Ariba is to educate enterprises on why a new approach to commerce that is being fueled by business networks like the Ariba Network is essential to their future success. The opportunity for Ariba to grow is open ended. The top 2,000 global businesses today spend $ 12 trillion dollars annually with their suppliers. However, only ~$320B + of that 12 trillion is conducted on the Ariba Network today. Ariba’s Our role as pioneers and leaders is to help the industry reshape itself and deliver on the promise of better and simpler commerce existing customers - with an estimated $ 3 trillion spend - represent a largely untapped market opportunity. Major technology Implementations In early to mid 2000, we went from being a procurement applications provider to a Spend Management provider adding solutions for the whole source-to-pay process to our portfolio. We spent about 2-3 years enabling and, as appropriate, rearchitecting our applications to run On Demand. In doing so, we did not take a short- term approach and throw a bunch of hardware at the problem (aka a glorified ASP model). We actually created a true multi-tenant architecture which can service companies of all sizes – from a small shop with a handful of employees to Fortune 100 organizations with thousands of people around the world. While doing this, we also built the world’s largest, most global and open business commerce network. We continue to focus on how we can not only keep up with the scale of our growth, but also how we can innovate to create additional value for the users of our community. Key trends Remember the phone you had in your hand five years ago? Now we have phones that are as powerful as Cray super computers. This and many other online services, like ecommerce have changed how we produce, share, and consume information as well as conduct personal commerce. Now, it is finally starting to touch enterprise software. Gone are the days where you could force employees to use non-intuitive applications. Also gone are the days where you can force employees to do double data entry or waste time on mundane information search/discovery. Social is another major trend transforming the industry. Five years ago, I would not have dared to discuss deploying our applications in the cloud with a Fortune 100 company. Now I dare them not to. Five years ago, Oracle was saying On Demand is a mirage and now they are all about the cloud. VMware is trying to figure out where to go from here. Who knows how much longer RIM is going to last. Everything is being rethought including the opportunities in managing commerce better. Our role as pioneers and leaders is to help the industry reshape itself and deliver on the promise of better and simpler commerce. That is what we think about every day. Social is hot right now in the enterprise space. And the reason is not because the notion is new, but because companies have been trying to solve the people collaboration problem within their four walls and either the software or approach was not right or the enabling technology ca- pabilities did not exist. We have seen how it has become a reality in the consumer world, and it is fast becoming a reality within businesses. Enterprise software as we know it today will not exist in 20 years. IT as we know it will not exist in 20 years. Top priorities As a CTO, my top priority is to design solutions that address the challenges and needs of our customers – and the CIO is one of them. It is certainly an exciting time to be a CIO. But itis also a bit scary. Given the change that is happening in the world of enterprise computing, prioritizing which problems to go after is a key challenge. So forming an opinion on where IT needs to be 10 years from now and why, is critical. Change does not happen by chance, someone has to make it happen. And if you do not know where you are headed, your direction will be determined for you – and your company may not be around. C IO R ev i e w |21| October - November 2012 MEET THE CIO Sustaining Customer’s Sophistication is TOP PRIORITY KUMUD KALIA, Senior Vice President & CIO, Akamai Technologies Industry Trends Kumud Kalia Kumud Kalia is the Senior Vice President & Chief Information Officer of Akamai Technologies. In his role as the CIO he is responsible for leading the global strategy, development, and operation of the applications and infrastructure that support the company's business processes. Akamai Technologies, (NASDAQ: AKAM) is an Internet content delivery network headquartered in Cambridge, Massachusetts. Founded in 1998, the company helps businesses connect the hyper connected, empowering them to transform and reinvent their business online. Kumud joined Akamai in October 2011, and is focused on creating an agile and efficient user experience for Akamai's customers, employees, and partners. An engineer and experienced CIO, he is a seasoned leader in scaling IT systems for highgrowth, blue chip corporations. Prior to Akamai, Kalia was CIO of Direct Energy, energy and services business operating in the U.S. and Canada. Earlier in his career, Kumud was Vice President and CIO of the Business Markets Group of Qwest Communications International. He has served as CIO for Dresdner Group in North America, and has also performed in technology, operations and strategy roles at various investment banks. In an interesting conversation he speaks about the way internet is changing the society and businesses and how Akamai is a ‘cool’ place to work. Excerpts from the interview. C I O R ev i e w |22| October - November 2012 The cloud has been written about more than I can even talk. It is a big trend for companies and an IT ecosystem that drives its own challenges. Some of them are how to migrate to the cloud, what tools people require and how they manage cloud vendors and accelerate their cloud offerings. Rethinking of the internet as consumers, we see a host of mobile devices connecting to the internet along with a lot of content changes. Enterprises today are adapting to those changes but they cannot ignore security threats. There are a plethora of security challenges with access to the internet, company resources, inside firewalls, outside firewalls, from employees or partners or resellers. There are opportunities galore for Akamai to ride these trends as several companies adopt them. Many companies are trying to plan ahead for their growth. And if they aim to obtain functionality from Saas vendors, they want to make sure that it is done in a secure way. They are also leveraging the internet infrastructure of Akamai to make sure that they receive high quality web experience. Dealing with the Change The trends are almost exponential in the way they are taken up. It’s tough to keep up with exponential growth. Customers are struggling with the same kind of exponential growth as well. There are complex challenges that our customers have to deal with. If you are an e-commerce retailer your website is now a very sophisticated vehicalists instead of a simple website. There are a number of third party websites riding the package of web content. They need to enable facebook updates, social media implementation and integration with their own retail offering. They must develop Over the last decade, CIOs have been under immense pressure to justify the investments that they make in terms of business value their web properties for different devices and platforms. A developer who used to develop for internet explorer or safari now has to think of a whole list of browsers, platforms and devices. That is massive behavioral change for our customer which brings in a lot of complexity. Evolving role of the CIO Increasingly CIOs are becoming business executives and leaders rather than mere technology functional leaders. Over the last decade, they have been under immense pressure to justify the investments that they make in terms of business value. They face globalization challenges on how to make IT investments relevant to business contexts. Now there is better understanding among non IT functionaries as well on how to leverage IT. CIOs today have to partner more with their business colleagues to create solutions rather than think of IT projects. Challenges The hardest challenge for Akamai is to keep up with the hyper growth in the market. We see the proliferation of connective devices and security challenges all of which is passing through Akamai’s network. We see a high growth in traffic in terms of network and in customer demand for new solutions. Moreover, our customers now come to us with more sophisticated requests than they used to. So, we have to adapt our own internal business processes to match their level of sophistication. That requires a lot of customization to our systems to process the sophisticated order by our customers. Keeping up with our customers’ sophistications is our top priority. China’s smart phone market is estimated to increase to 26.5 percent in 2012 making it the largest smart phone market in the world. Courtesy: IDC We do not want the company to customize each one of our systems with each and every order coming in. So we are trying to figure out all these sophisticated combinational orders from our customers. The customer might have taken an acceleration service from us for our web property and now they increasingly ask us to do the same for mobile web properties. They also ask us to add security services to their web properties. Earlier the different combinations of these services might have been for one product or service, but now they are becoming three or four product or service customers. This puts complexity into our teams. We do not want to have duplication or replication of what we have been doing. We want to be able to scale our business in a way that we have not had traditionally. We are keen to have these changes done efficiently. The internet is changing the society and how businesses function at large. We at Akamai feel privileged to be an integral part of the transition and help bring about that social and commercial benefit to people. There is no better place than being in the driving seat and observing these changes. C I O Re v i e w |23| October - November 2012 MEET THE CIO Envisioning to be at the forefront of Next-Gen Process Technology RAJIv RAMASWAMI, Executive Vice President & General Manager - Infrastructure and Networking Group, Broadcom Rajiv Ramaswami serves as Executive Vice President and General Manager of Broadcom's Infrastructure and Networking Group. Founded in 1991, Broadcom (BRCM :NASDAQ) is a global innovator and leader in semiconductor solutions for wired and wireless communications. In this role Ramaswami is responsible for all Ethernet controller, switching and physical layer products, optical solutions, storage products, security and embedded processors. The group's products and technologies are targeted to enterprise, service provider and data center markets. End products offered by this group include Ethernet controllers for notebooks, desktops and servers; storage silicon solutions; and physical layer deRajiv Ramaswami vices, optical solutions, switches, security and embedded processors for Layer 2 to Layer 7 switches, routers and security appliances - equipment that delivers and manages the flow of voice, video and data services within and across networks. Ramaswami joined Broadcom in 2010 after serving as Vice President and General Manager of the Cloud Services and Switching Technology Group at Cisco Systems, Inc. Prior to joining Cisco, he served in various technical and leadership positions at Xros, Tellabs and IBM's T.J. Watson Research Center and holds 33 U.S. patents primarily in optical networking, and has coauthored a textbook, "Optical Networks: A Practical Perspective.". In a candid chat with Ramaswamy, we explore the trends that Broadcom has been following and how he is aligning his team to meet the grand goal for Broadcom C I O R ev i e w |24| October - November 2012 Broadcom’s role in new times As employees around the world replace their desktops and laptops with mobile devices, network managers are seeking new ways to provision, secure and control enterprise computing resources and information access to keep employees connected – regardless of their location. Broadcom’s new solutions for the modern workforce (aka Enterprise 2.0) bring the innovation Broadcom is known for in the data center and service provider networks to enterprise networks, enabling seamless wireless and wired connectivity. For the business person or end user specifically, Broadcom’s chips deliver secure and fast connections, effortless streaming video, and easy access to cloud based applications, regardless of whether users are connecting into the network through wireless devices such as notebooks, smart phones and tablets, or traditional wired desktops. In short, it means a better overall experience when connecting with the corporate network. Trends I foresee Enterprises continue to work on improving their ability to provide a seamless user experience regardless of what device or means the user is connecting to the network. For instance today, users have to deal with separate authentication mechanisms for their wired and wireless networks. Furthermore enterprises continue to deploy more and more, higher capacity wireless, with the new 802.11ac standard offering gigabit speeds comparable to wired desktops. Broadcom is the market leader in both switching technology and wireless LAN technology, allowing us to deliver on a combined high-performance wired/wireless access network for enterprise users. Another emerging trend is Software Defined Networking (SDN), an important technology that redefines how networks are managed and configured, and provides a platform by which the network can be programmed to provide services to networks. In the coming months and years, enterprises are going to need to be more adaptable and flexible, and emerging network architectures like SDN will provide the necessary centralized control. It’s a fascinating opportunity that Broadcom has pioneered for years (through the Open Networking Foundation) and will continue to support with products that are SDN-enabled and friendly so that we provide solutions that allow them to flourish. Our goal is to make the network control programmable, making the underlying network appear as a logical entity, making the programmable interface accessible on computing devices in a centralized way, enabling network virtualization and better visualization of the network. Creating a robust Network Infrastructure Broadcom is definitely seeing content consumption driving traffic growth – in fact, there’s been 100 percent CAGR since 1990. With the number of devices connected to IP networks set to exceed 2x the global population in 2015, this demand will create a real challenge. As smartphone and tablet sales increase, new devices are proliferating and show no signs of stopping; service providers are under pressure to keep pace with traffic growth. Broadcom’s opportunity lies in helping our customers deliver more bandwidth, functionality and board space while reducing system costs and power consumption. As carriers around the world roll out 3G and now 4G technologies, they are faced with a dramatic overhaul of their mobile infrastructure, including base stations, backhaul, as well as their aggregation and core networks. Broadcom’s chips power the equipment deployed across the entire carrier network. Driving IP creation across different Portfolios Broadcom strongly believes that the true technology innovation is collaboration and the sharing of intellectual property with colleagues and other industry visionaries—and it is a message that starts with Broadcom co-founder and CTO Henry Samueli and resonates throughout the organization. Our IP portfolio has more than 16,800 U.S. and foreign patents. IP creation and sharing is alive and well within Broadcom. In fact, leveraging existing IP from the company’s own broad portfolio of engineering expertise is as easy as logging on to a centralized portal. We have unique and efficient system for IP sharing and unified design flows through its centralized engineering organization and IP library. This unified design approach encourages collaboration across business units, eliminates areas of potential overlap, dramatically reduces engineering costs and time-to-market, and provides the company with a powerfully competitive advantage. Broadcom’s substantial technology expertise in India specifically has resulted in more than 200 patent applications with the U.S. PTO and contributions to worldwide industry standards bodies. This India-developed IP is leveraged across global SoCs and has contributed to many technology firsts. India is both an important R&D center as well as end market for our products. Our presence in India continues to grow and now represents more than 10 percent of our corporate headcount with more than 1,000 employees in Bangalore, Hyderabad and Mumbai. India represents the largest R&D team outside of the U.S. Our operations in India are already contributing powerful innovations to Broadcom’s patent portfolio. Business opportunities As we discussed, Indian telcos are served through our customers, both Global and Local OEMs. We also engage directly with telcos, as we strongly believe that understanding the end market requirements and pain points is critical in designing the right products with the right feature set. Service providers around the globe are racing to transform their mobile networks to fulfill consumer appetite for more and more bandwidth. Indian carriers must significantly upgrade their entire mobile infrastructure as they roll out 4G and expand 3G services. This includes macro base stations, backhaul networks, including microwave back- haul —, for which India is one of the world’s largest markets, as well as aggregation and core networks, all of which needs to be optimized for increased data traffic with Ethernet/IP connectivity. The transition to full IP capability with compatibility to existing networks is one of the major pain points for the Indian telcos, and Broadcom offers the industry’s broadest portfolio of end-to-end solutions to power the network transformation. We recognize the value of the innovation happening in India, see impressive products rolling out from both Indian OEMs and Indian units of Global OEMs. We engage and support many local players, such as Tejas Networks. Another milestone in the evolution of Indian Telecom industry is the formation of Indian standard organization DOSTI , which will allow Indian OEMs and telcos to have a voice in global telecom standards. Broadcom is committed to supporting the DOSTI objective and actively participating in the organization’s charter. vision set for the Team We want to transform the network with the industry’s broadest portfolio of innovative, end-to-end high performance silicon and software solutions. Our growth strategy is based on a profound commitment to expanding our footprint and addressable market. In India and beyond, we strive to be at the forefront of next-generation process technology and integration with an IP portfolio unsurpassed in strength and breadth—and will continue marching forward toward that goal. (As told to Christo Jacob) C I OR e v i ew |25| October - November 2012 IN CONVERSATION EMERGING MARKETS: THE NEW DRIvERS FOR THE ELECTRONICS INDUSTRY BRUCE ANDERSON, General Manager - Global Electronics Industry, IBM Bruce Anderson Bruce Anderson, General Manager - Global Electronics Industry, IBM, is responsible for IBM’s Electronics Industry Worldwide, across consumer electronics, medical device, office equipment and Semiconductor companies. Through global relationships, market expertise and deep industry insights, Bruce and his team help companies across the world improve products, enhance collaboration, increase speed to market and reduce costs to sustain operational excellence and profit in today’s highly competitive market place. C I O R ev i e w |26| Bruce Anderson, General Manager - Global Electronics Industry, IBM, is responsible for IBM's Electronics Industry Worldwide, across consumer electronics, medical device, office equipment and Semiconductor companies. Through global relationships, market expertise and deep industry insights, Bruce and his team help companies across the world improve products, enhance collaboration, increase speed to market and reduce costs to sustain operational excellence and profit in today's highly competitive market place. In its report earlier this year, Global Industry Analysts (GIA) announced that growth in the global consumer electronics industry is forecast to be driven by ongoing trends, such as, digitalization, miniaturization, mobility, and portability. Additionally, growth opportunities are also expected to stem from the widening consumer base in Asia-Pacific, Latin America, and the Middle East markets. By 2015, the electronics market will touch $1.4 trillion by 2015. Like all emerging markets, India is one of the fastest growing markets for electronics, a fact that IBM has been betting on over the past few years. IBM serves a lot of MNCs as well as domestic companies in India both from a service and product perspective. It has a large percentage of operations in India and is focused on serving electronics companies both domestically and activities to be done out of India. In a candid chat with Bruce Anderson, General Manager - Global Electronics Industry, IBM, we explore the emerging trends that have been following the electronics industries. Anderson also talks about the various initiatives taken at IBM to stay ahead of the competition. Current Initiatives at IBM We serve companies in a wide array of sectors such as consumer electronics, medical device, office equipment and more. Our services can be categorized into three areas: 1. Product Immigration: This involves product development, process and all the intelligence that is required to this well. 2. Supply Chain, Operations and Optimization: This looks at how a product is moved, built and shipped around the world. 3. Marketing, Sales and Service differentiation: Helps clients in exploring new markets with the help of IBM's analytics. All of our services, products and research are focused across these three areas. We explore a lot of opportunities in using our ad- October - November 2012 vanced analytic capabilities in medical device industry and consumer electronics industry. Trends in the Industry We survey the CEOs of the major companies every year. Last year's survey saw over 1500 CEOs and a good percentage were from the electronics industry. The CEOs of these companies are keen on how best they can understand their customer and how they use analytics to really do more data driven fact based decisions. This makes them move to a certain direction depending on the insight. This further helps them decide and build more workforce in order to operate on an ideal basis. Best results can be achieved when all the above said analytic solutions are enabled. 1. Customers and consumers, both are now better informed about the products and services and this never used to happen in the past. We do not find people who go out to make a purchase without a good amount of research. All these are done from reviews that have been published in magazine, blogs and various social media platforms and so on. There are unbelievable number of sources for this kind of marketing to happen. 2. Importance of emerging markets is that they are capable of affording more on the electronics products. We are seeing not only consumer electronics become more popular but also people are locating business operations close to where that demand is. We can observe a rise in business activities in countries like India, China and Brazil. Hence, we see these emerging economies as more important in the global operations with electronic companies. 3. The trend now is that, a higher percentage of an electronics company’s revenue is inclined towards the service side. IBM over the last 15 years has changed from a 10 percent service and 90 percent product to a 60 percent service company today. This is a great way of staying in touch with the market and having connected products is really a key strategy to making sure that it is possible. 4. We are seeing a lot of convergence in the industry. Today, we can see pure data companies buy major brands who make devices and involving themselves in the consumer electronic business. It is very interesting to see how these companies compete against some of the power houses in the manufacturing industry. Aligning to changing Behavior The market today is getting smaller. One of the changes we observe in the consumer behavior is about the pervasiveness of allowing electronics into many different areas. The first thing that comes to our mind would be entertainment and convenience. This in- cludes television, telephone, smartphones, tablets and all the other industries around it. We are now seeing people using electronics for security of their homes, healthcare, and the way energy is managed and so on. People have the same expectation when it comes to infotainment, which translates into many other categories under electronics. They can expect it to be connected, intuitive and results shown in real time basis. The consumers are now trained to get additional value for their device. They are getting much more receptive to a system that is user friendly. Once the manufacturing companies own their customers for the relationship perspective, they are going to be in charge to see how the ecosystem operates. We can see a lot of electronics companies rushing to build the direct relationship with the end user of their product. These companies change the nature of how their products are sold in service. The companies who do not follow this are not likely to succeed as they lose touch in what their consumers actually want. vision set for the future We have subject matter experts workingfor IBM. We have got an extremely well educated population who are applying tremendous skills in the other markets. There is a rapid expansion of these skills to help a lot of companies. These people are made of world class skills. They have been working on some of the most innovative projects around the world. It is an immense asset that we have got here where the engineers disrupt engineering and innovation centers. They have a thirst for that level of expertise so that they can create that excellence in operations. C IO R ev i ew |27| October - November 2012 IN CONVERSATION Solving the DATA DELUGE GAP JEFF RICHARDSON, Executive Vice President & COO, LSI SI Corporation went through significant amount of changes in the last seven years, and recognized the need to reposition itself to grow and create a leadership identity within the industry. The company was witnessing a massive explosion of data being created in the digital world and what is more, LSI was recognizing the coming decade will see an even faster acceleration in data creation. Hence, to address this data explosion globally, LSI repositioned itself by developing technology and products that are essentially meant to meet this requirement. Today LSI is focused primarily on the infrastructure side of the storage and networking markets rather than consumer segment. There is a significant gap emerging in the industry between the growth and explosion of data and the underlying infrastructure that is in place today.This growth in data creation and the attendant network traffic is witnessing a 40-60 percent growth, but the required infrastructure is not in place be it datacenter, wireless or network infrastructure. LSI calls this gap the ‘Data Deluge Gap’. In conversation with Jeff Richardson, he opens up on ‘Data Deluge Gap’ and LSI’s approach in solving this issue. L Jeff Richardson Jeff Richardson is the Executive Vice President and COO of LSI. LSI Corporation (NYSE:LSI) designs semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing. In his current role, Richardson is responsible for marketing, engineering and manufacturing of the company’s product operations. He joined the company in 2005 from Intel where he served as VP of the Digital Enterprise Group and GM of the Server Platform Group. He is the member of the board of directors of Volterra Semiconductor Corporation and holds a bachelor’s degree in Electrical Engineering from the University of Colorado. C I O R ev i e w |28| October - November 2012 LSI’s approach For example, a few months back the mobile networking industry was moving fast towards a 3G rollout, but now they are migrating faster towards 4G and the primary goal of this is to help them deal with this data deluge. The product that LSI develops in this space is the Axxia com- munication processors that help prioritize and accelerate the information across these networks and enable our customers to address the challenges of massive information. On the storage side you probably see a trend in the industry wherein lot of PCs, notebooks have started using flash based drives instead of standard rotating media hard disk drive. Jeff says, “We have created a product that adds some ‘intelligence’ that can manage how data is written and read after the flash provides it and can do certain things that enable the hard disk drive to be able to perform at a higher level of maintaining the consistency of the data on the drive. The most important, or hot data can be cached so it can be accessed very quickly. Combining our SandForce flash storage processor and our understanding of storage technology we have developed products that accelerate application level performance and allow our customer to more quickly manage their data”. Hottest trends to follow The heart of the storage industry is the rapid adoption of flash technology into new segments like server for enterprise tech products, as well as PCs and Ultra Books that are now using flash based technology as their primary storage. For Ultrabooks, flash uses low power, extending battery life, and provides fast boot up times. We see a huge and rapid adoption of flash based technology out of companies that are deploying IT as a part of their data service as they can per- form much faster than the disk drive that actually pays off in terms of overall application performance and helps them extract more value from their data. We are working with several flash vendors to help them build disks that can be used both in server and client web applications. Also in developing our flash based solutions for the enterprise customers we are engaging with leading server vendors. We also interact with several large hyper scale data center companies that are focused on social networking or ecommerce, to deploy our flash solution in their data centers and enable them to provide enhanced level of service in terms of faster and secure access to data to their customers. Goals for the CIOs Today When the economy had a significant downturn in 2008, CIOs were forced to go back to the drawing boards and leverage technology to get more out of their fixed pool server or their overall IT capacity. As a result, technologies like server virtualization became mainstream during that time frame. Today, you find the CIOs are in the same situation as they were five years ago. CIOs and traditional enterprises have started to look very closely at what some of the big hyper scale data centers have put into place, the architectures, their methodology and the skills required for ideas they might leverage in their own organization. Also, CIOs are working at leveraging the cloud. Instead of investing their entire budget to build out their own systems, they have started to leverage cloud for applications like email, and paying others to manage it instead of doing it inhouse. This gives them the capacity they need to deal with the massive amount of data they must contend with each day. My Learning’s I joined the company in the year 2005 along with the new CEO and was elevated to COO last year. Since I joined, we have been working to reposition our company to focus on driving opportunities around the data deluge gap. So be it our market strategy or product strategy we are tightly focused on providing products that bring acceleration and intelligence to the Storage and Networking space. As part of this strategy, we made nine acquisitions in just a few years, the most recent one being SandForce. My past experiences have helped me balance strategy and execution. Our leadership team has made sure we have a very competitive strategy for the next 3-4 years and at the same The heart of the storage industry is the rapid adoption of flash technology into new segments like server for enterprise tech products time make sure that we stay focused in terms of our execution. This combination ensures we have the right product portfolio for our target markets and that we execute on delivering these critical products. The leadership team makes sure that you have a very good job in terms of executing the correct product according to the strategy. We ensure to get the right portfolio to achieve what we want to through product execution. vision Ahead The vision is to be the premier semiconductor and software solutions provider in the markets we serve; in the networking, enterprise storage and client computing areas. Our goal is to go deep in those markets and drive growth for the company. C I O Re v i e w |29| October - November 2012 vIEW POINT CAN IT OPEN NEW SOURCES OF REvENUE? MATTHEW BROWN, VP & Practice Leader serving CIOs, Forrester Forrester is a global research and advisory firm serving professionals in 17 key roles across distinct client segments. Matthew Brown is the Vice President and practice leader serving CIOs and IT leadership teams for Forrester. With more than 18 years of professional experience in enterprise IT, interactive marketing, and technology markets, Matthew advises clients in a wide variety of industries around the globe on IT's role in innovation, IT organization, strategic planning, and workplace technologies.Using an interaction with one of his clients he explains how new sources of revenue can be obtained using IT. E Matthew Brown very once in a while I get the opportunity to completely immerse myself in one of my client's problems. This time, it was at an IT strategy offsite where a senior director of IT asked me one simple question: "How can we use information technology to help our company open up new streams of revenue?" I found the question refreshing, mainly because nine out of ten CIOs I talk to these days ask the opposite: "how can IT reduce costs?" Fortunately for me, this client had invited lots of smart people from business and IT and outside experts into the room for two days to explore the revenue question. Challenges familiar to most life sciences companies got folks in the room in the first place: patent expiration foretold eroding profit margins for their blockbuster drugs, and expansion into emerging markets was an avenue for growth, yet one fraught with complexity and uncertain returns. So this group's charter was to think digital C I O R ev i e w |30| Taking inspiration from morning TED talks, four working teams presented ideas for revenue opportunities created by emerging technologies in tech markets like mobile, big data, security, and October - November 2012 consumer experiences. The teams cited creative ideas — like algorithms that use public data sources to reduce production forecast variance and improve distribution allocations; modern IT security models, pioneered in financial services, that would enable them to cut the time it takes to on-ramp a new manufacturing partner from months to weeks; company-owned data that could be sold or licensed and made available through public APIs to third parties; and many more. The teams shared inspiring ideas that were big enough and bold enough to at least warrant further investigation. But as often happens in IT strategy discussions, there were debates aplenty that got mired in the barriers the current IT organization faced in incubating and ultimately commercializing nascent revenue-generating ideas. Topping the list — Rigid contracts with outsourced providers hampered innovation and speed; low, no, or shrinking budgets; limited insight into end-customer needs; aging systems that vacuum up already scarce resources; internal IT talent drain wrought by years of outsourcing and many more. These barriers haunt many large IT shops, I find. Reflecting on the offsite, there were three things that separated the successful and unsuccessful presentations as workgroups pitched ideas to a panel of business executives and outside experts. The successful teams: 1. F ramed all IT barri ers around t h e i mp a c t t h e y h a d o n c u s t o me r s The IT leaders who looked at problems through the eyes of the end customer garnered far more influence and support from the audience than those who looked at problems through the eyes of IT. 2 . T o l d s to r i e s a b o u t r e v e n u e o p p o r t u n i t i e s th r o u g h i m a g e r y . Something that's easily forgotten amidst the engineering culture of IT The Asia/Pacific (excluding Japan) business process outsourcing (BPO) market is forecast to reach $9.5 billion in 2016, up from $5.9 billion in 2011. In 2012, BPO in Asia/Pacific is on pace to total $6.45 billion. Courtesy: Gartner - the standout IT leaders were those that could mask IT complexity through imagery, and tell visual stories that cut right to commercial opportunity. (Not a single architectural diagram made its way into the highest-impact pitches.) 3. Used fac ts and data to quanti fy thei r assertions. While many of these IT folks were clearly uncomfortable using data - like consumer health technology trends and business technology adoption trends - to bolster their arguments, those that did clearly garnered trust among business leaders weighing which investments made sense to explore further. I will remember these simple lessons when advising my IT clients who were raised in the cold, hard world of engineering. Unfortunately, we will not know for a while whether these ideas will translate into new revenue streams for this client. But it was great to see the passionate ideas for change shared by IT leaders in such a large organization. C IO R ev i e w |31| October - November 2012 vIEW POINT vIEW POINT Consumerization of IT Does not Equal BYOD Unlocking Big Data: The next Big Opportunity I T ByFAISAL HUSAIN, CEO, Synechron ByJOSH DASHER, Vice President – Products & Marketing, AppCentral t amazes me how often I read articles, by respected industry folk, that confuse the Consumerization of IT with Bring Your Own Device (BYOD). Philippe Winthrop over at the Enterprise Mobility Forum is one of the few I have seen get it right. So what is the difference? The difference is simple. The CoIT describes employees expecting to quickly leverage tools/solutions/technologies with near-frictionless availability and extreme ease of use, while BYOD is literally employees bringing their own devices into the workplace. Frictionless availability is nicely encapsulated in “there’s an app for that”. If a user does not have what they need, they simply go and get it. With or without IT. And if we are being honest, IT often equates to friction from an employee’s viewpoint. Mobile apps are feature-focused – the best ones tend to do a few things really well, rather than many things so-so, making reading manuals or even help files a thing of the past. More fuel for short attention spans. BYOD is fine and well, but organizations need to define boundaries around which apps are allowed on what devices. Email and calendar are fine, and should be universally available for your employees, but that does not mean you need to support custom apps for every platform that enters the building. Rather than viewing BYOD from a reactionary posture, let’s work to embrace what mobile is capable of being. Perhaps the bigger question is – why does it matter, anyway? Seldom does a product not benefit when the principles of good design are applied, and the demands of consumerization force the issue. Remember when there was “enterprise C I O R ev i e w |32| October - November 2012 grade” and “consumer grade”? Enterprise grade was robust, fully-featured, and secure, while consumer grade was viewed as a toy. Macs were the constant example of great design that influenced and informed employees of what computing could be. Today, consumer products like the iPad lead the way in usability, putting many BYOD is fine and well, but organizations need to define boundaries around which apps are allowed on what devices “enterprise grade” products to shame. By re-evaluating old assumptions, better solutions emerge for both employee and employer. At the end of the day, what is really exciting are the applications that are starting to emerge that solve problems in ways that are uniquely mobile. Solutions that are not simply a desktop port to mobile with some touch screen user interface affordances, but truly solve a problem that would otherwise continue to fester. We are just starting to see great examples of such solutions, and they inspire in a way that I have not felt in technology for over a decade. Josh Dasher AppCentral is a mobile application management provider that helps enterprises to distribute, secure and manage the mobile apps that are driving new levels of productivity. Founded in 2007 and headquartered in San Francisco, the company allows employees, contractors and partners to use business information on any smart device, even if not controlled by IT. he industry ecosystem we operate in has always been in a state of constant flux, brought about by paradigm shifts in technology, global economy, and stricter compliance rules and regulations. Right from the time when we started operations in 2001, to the global credit crisis in 2008-2009, we have witnessed significant changes in terms of how businesses operate, adapt to stay afloat, manage intense competition, and make efforts to maximize ROI on their IT investments. Our role has always been to develop and nurture holistic relationships with our clients, something that is more in line with a partnership model and not the conventional client-vendor relationship. Having said that, I can foresee a number of emerging trends in the technology domain, which are expected to drive the growth of the ecosystem we operate in. In the financial services space, which is our core focus area, a lot of our clients (banks, asset managers, wealth management, and the energy & commodities trading firms) will be impacted by compliance and regulatory changes introduced after the financial crisis of 2008-09. For instance, the Dodd-Frank Wall Street Reform and Consumer Protection Act will have a massive impact on business operations and its effective implementation will necessitate widespread technology upgrades. Dodd-Frank is one of the most complex pieces of legislation ever written, and financial services firms and other businesses that have been affected, are bracing up to its full impact. Similarly, the recent string of "rogue-traders" will require financial institutions to take a top to bottom look at how Risk is measured and managed. Another area that probably holds the most potential and is already registering high-growth patterns includes the various technologies that are being used for developing mobility solutions and accelerators for a wide variety of industries including BFSI and digital media domains. With more end-users shifting to mobile avenues such as smart phones, tablets etc, for accessing online services and entering transactions, businesses are witnessing more potential in making available mobility solutions to their customers. Businesses that have realized the power of enabling mobility solutions early on, have reaped tremendous benefits in terms of faster processing and improved customer satisfaction. The arrival of big data, which involves analyzing voluminous and increasingly complex data to derive information that has significant business value, also has huge potential. Leveraging this information, businesses are now able to get answers for difficult questions pertaining to their workforce, end-customers, technology readiness, and competitive advantages. Big data is potentially the next big thing in the industry and as demand increases, more of this work will be outsourced. The demand will be both for new systems that can process data more intelligently as well as tasks that can easily be accomplished via automated systems. Big data opportunities are immense and very Faisal Husain Headquartered in New York, Synechron is a fast growing IT company specializing in Capital Markets, Mortgage, Insurance, Energy & Commodities, and Digital Media & Technology space. The company employs 4000 professionals across nine countries globally Client satisfaction and commitment to excellence are their core values. real today, and we believe that we can use it to bridge the competitive gaps faced by businesses. There are opportunities on the horizon, but just like the two sides of a coin, there are challenges as well. Staying relevant in terms of technology innovation, and trends in the industry where clients operate, are the basic challenges faced by most IT companies. In addition, entering newer geographies and increased competition from other emerging outsourcing destinations are among the other challenges that need to be addressed. At Synechron, we are gearing up for these challenges by investing in building the right technical capabilities (mobile & big-data) as well as the right business consulting capabilities for regulations, compliance and risk projects. C I O Re v i e w |33| October - November 2012 TECHNOLOGY FOSS AND INNOvATION IN THE T CHINESE TECHNOLOGY SECTOR ByTIM YEATON, President & CEO, BlackDuck Software Tim Yeaton Founded in 2002, BlackDuck Software is a provider of consulting and software for enabling enterprise adoption of open source software (OSS). Headquartered in Burlington, the company is the partner of choice for open source software adoption, governance and management. C I O R ev i e w |34| October - November 2012 he arrival of Chinese Vice President Xi Jinping in the U.S. for trade talks earlier this year indicates that it is an opportune time to reflect on the rapid changes happening in China’s technology sector, particularly the rise of free and open source software (FOSS) as a key part of the innovation happening there today. By way of background, I have been working with Chinese technology companies since 1997, and was recently named a Chinese Open Source Promotion Union (COPU) Advisor. Needless to say, the change that continues to play out has been rapid and dramatic. As recently as the 1990s, China’s technology industry was still centered largely in electronics assembly and manufacturing, driven primarily by labor costs rather than innovation. Yet the government, particularly the Ministry of Industry and Information Technology (MIIT, though back then it was MII), was focused on turning China into a technology innovator, starting with electronic components and semiconductors. During the last decade, these efforts enabled China’s tech sector to move beyond being the world’s contract manufacturer. China became the world’s dominant electronics component supplier, despite the Western perception of being great at replicating existing technology cheaper and faster, but with limited original innovation. Fast-forward to today, and you see even faster acceleration in the tech sector with greater focus on indigenous innovation as a key part of the latest Five Year Plan. Much of this acceleration is happening in and via software. For example, many Chinese technology companies are now recognized innovators and global leaders in telecom and electronics (Lenovo, Huawei, Haier, ZTE) and IT services (Neusoft, VanceInfo, HiSoft), along with a large and innovative indigenous digital media and online gaming sector (Tencent, Baidu, Sina, Shanda). What you do not see is a software sector with visible brands and global reach – but that too is likely to change. The China Software & IC Promotion Center (CSIP) – a branch of the MIIT – has embarked on an ambitious program to drive innovation, global presence and growth of the Chinese software industry, much like semiconductors and electronics a decade ago. Similarly, the Ministry of Science and Technology (MOST) has become an active supporter and promoter of FOSS through its China Software Industry Association (CSIA) and Co-Soft OSS League efforts across more than 50 science and technology parks throughout the country. One strategy employed by CSIP/MIIT is enabling effective use of FOSS in companies’ product development, while also ensuring compliance with FOSS and commercial intellectual property (IP). Black Duck partnered with CSIP a year ago to help implement this program, and it has given us visibility into the Chinese software sector and where it is headed. It is interesting to note that MIIT has concluded that, for Chinese software companies (and tech sector companies in general) to be accepted in the global market, they have to deliver innovative, differentiated solutions – largely via software – (as reflected in the Five Year Plan) and demonstrate their respect for IP rights protection at the same time. Consequently we see most of the Chinese technology companies looking to employ FOSS aggressively in combination with their own custom development, because they recognize that utilizing FOSS at-scale provides competitive advantage and will accelerate their growth and penetration of global markets. They also recognize the need for effective FOSS governance to ensure quality and security, all while enabling IP compliance and effective code reuse. We see strong and growing interest among Chinese tech companies in FOSS governance and management for these reasons. We also see interest in FOSS strategy and policy guidance and FOSS development best practices, both to be more effective in utilizing FOSS at-scale in development and to overcome lingering trepidation among individual developers that using FOSS means they aren’t really doing their jobs – and thus, fear losing them. China recognizes that the aggressive use of FOSS provides competitive advantage against other global technology companies with more traditional development strategies, while supporting its key objectives: growth of exports, development of indigenous innovation industries and expanding employment. The Chinese software sector, supported by MIIT and MOST, aspires to become a major force in the global marketplace, and we are honored to be working with MIIT/CSIP, COPU and many Chinese companies as they embark upon this journey. C I OR e v i ew |35| October - November 2012 5 MARKETING customers. They could learn from the way Amazon uses feedback and digital tools to engage customers through its recommendation system, one-click shopping button, loyalty program Prime, credit card and app. WAYS TO BUILD BRANDS IN THE S POST-DIGITAL WORLD JEz FRAMPTON, Global CEO, Interbrand imon Smith, our European Head of Digital, has a mantra-“Everything is digital." He also believes that “Digital is the most misunderstood word in business today.” In 2011 we surveyed more than 800 companies about their digital strategy. Some 16 percent described their company as "digitally inactive." And of those who had a digital strategy, two-thirds confessed to implementing it in a fragmented way. Here is an overview of why and how you should catch up and build success in our post-digital world. Recognize the new power dynamic Digital media have triggered profound shifts in consumers’ interactions and relationships with businesses. The language of B2C and B2B is no longer relevant. At Interbrand, we use the terms business and consumer (B&C) and business and business (B&B) to describe how businesses and consumers now work together to create brands. And for brand, read: business. Consumer-created content and conversations are driving organizations’ image, reputation and bottom C I O R ev i e w |36| Remove the seams/Stick with digital October - November 2012 line. This represents a significant shift in dynamic. As consumers become increasingly influential, businesses are becoming less powerful. This means that you need to focus more on understanding, engaging and staying relevant to consumers, and less on regimenting or controlling them. Vitamin Water and Pepsi have both demonstrated how stronger engagement with their markets can create more successful products and services. Others would do well to follow their lead. In contrast, BP failed to engage with the debate after the Gulf of Mexico oil spill in 2010. Trying to "shout" back with big budget advertising only served to alienate people and further damage the company’s reputation. Respond to the purchasing revolution It is time to tear up the traditional "funnel" model of consumer purchasing. Consumers now go through a dynamic, non-linear decision-making process. What other consumers say about a brand is becoming the most important input in consumer choice. More than two-thirds of global consumers, young and old alike, seek online reviews or recommendations from Jez Frampton With nearly 40 offices in 25 countries, the 1974 founded Interbrand’s combination of rigorous strategy, analytics and world-class design enables it to assist clients in creating and managing brand value effectively across all touchpoints in all market dynamics. others. And we have all been put off a product or service by a lone bad review. A fluid and uncertain market is the new normal, which means traditional marketing strategies are no longer effective. In this world, responsiveness trumps efficiency. The ability to engage with customers one-on-one, particularly after purchase, is vital to long-term business success. Doing this adds value, generates revenue and most importantly builds customer loyalty. Yet a quarter of companies do not solicit post-purchase feedback from Just as Amazon simplifies life for customers, digital media can be used to smooth their way through potentially disjointed experiences. Our online and offline worlds are now merged into one ongoing experience. That experience-- how audiences encounter and perceive your business--increasingly determines its vitality. Consumers have become used to buying online, returning in-store and instantly receiving product updates. And they expect each interaction to reflect your brand in a consistent and engaging way. Every aspect of your business, across all departments, experiences, environments and communications (‘touchpoints’ as we call them at Interbrand), should feel the same. Think of Disney’s commitment to magic, Apple’s to humanizing technology or BMW’s to driving experience. This seamlessness is the Holy Grail in building relationships with customers, and digital media offer huge opportunities in this quest. So, a fashion retailer can be browseable anywhere, quickly replicate communications across all outlets, offer purchase via QR codes, connect customers to other fans, turn their "likes" into product previews, reward introductions to other customers. Put digital center stage Digital media form an intrinsic part of consumers’ interactions with businesses. So it follows that digital should be central to building relationships with your customers and enhancing their experience. Yet rather than taking a holistic approach, many busi- A fluid and uncertain market is the new normal, which means traditional marketing strategies are no longer effective nesses just use digital media as a promotional or idea generation tool. Many of us have inboxes full of Groupon or CouponsDaily voucher codes. While this may drive short-term sales, over time it can dent brand perceptions, and ultimately business value. In a few cases, these kind of promotions have led to unsustainably high-volume, low-value demand with catastrophic results for reputation and revenue. Crowdsourcing can be a boon for business innovation and public engagement or a disaster. It all depends on whether you have the systems and knowhow to manage a torrent of ideas effectively. Well-planned digital activities enable more meaningful connections with consumers. Adidas’s engaged its young target audience through its limited edition Originals sneakers in 2010. Each shoe was embedded with an augmented reality (AR) code, which unlocked access to an online gaming environment. In a clever twist, the sneakers also acted as game controllers. In 2011, Tesco created a virtual supermarket on a South Korean subway billboard. Waiting commuters could scan the QR codes of products on the billboard, purchase them and have them delivered within 24 hours. This reinforced Tesco’s focus on convenience and brought real benefit to customers. Interestingly, the retailer has had a bumpy ride in the UK during 2011/12 because it resorted to oldfashioned price cuts rather than adding value. Create a digitally based culture/Bring the outside in So digital has changed the way we all live our lives and make consumer choices. It also has far-reaching implications for business communication, decision-making and structure. There is a growing disconnect between the increasingly flexible social networks we all enjoy and the rigid structures and hierarchies in which most of us work. Departmental and divisional silos made sense when efficient production was the key to business success but responsiveness is the name of the game now. In today’s world, anything that hinders speed and agility contributes to failure. To keep up with rapidly changing markets, businesses need to gradually move their structure from a "vertical" approach to a more "horizontal" one. The way forward is to use digital innovations to bring the outside in. The brightest businesses are creating tools and processes that enable employees to connect and collaborate across the organization. Procter & Gamble’s Clay Street Project, for example, creates multi-discipline teams that focus on market needs, rather than divisional performance. In terms of business innovation, IBM has developed Beehive, an organization-wide networking and ideasharing hub to facilitate employee contributions. And Innovation Pipeline, AT&T’s internal idea generation tool, has significantly changed the company’s structure. It has also resulted in around 50 new patents. C IO R ev i ew |37| October - November 2012 vIEW POINT Great Sales and Engineering Teams share the Same DNA TODD MCKINNON, CEO &Co Founder, Okta Todd McKinnon Founded in 2012 and headquartered in San Francisco, CA, Okta is an on-demand identity and access management service that enables enterprises to accelerate the secure adoption of their web-based applications, both in the cloud and behind the firewall. C I O R ev i e w |38| October - November 2012 R ecently, I welcomed Adam Aarons and Hector Aguilar to the Okta team and offered some thoughts, culled from my time as an engineer, on what constitutes a great engineering team. It was meant as a bit of advice (for what it was worth), to Hector, our new VP of engineering – because admittedly, I am an engineer at heart. I ran engineering at Salesforce.com before founding Okta, and I approach most problems with an engineering mindset. It’s just how I’m wired. Product and engineering folks often assume that a great product “sells itself” and that the best product and technology will win. This is not true. Oracle was not the best database, and BetaMax was better than VHS. To win you need great product AND great sales. As CEO of Okta, I am obsessed with making sure our sales team is the best in high tech. And I realized that my advice to Hector on what makes a great engineering team applies, in many ways, to sales teams, too. As it turns out, high performing sales teams and engineering teams are not all that different. People Matter For any department - whether engineering, HR, sales, you name it talent is the most important puzzle piece. Talented people want to work with other talented people. You need to keep the proverbial bar high. Great engineers are craftsmen. They care deeply about the creative and engineering process that goes into products. Great salespeople are craftsmen. They see beauty in how a prospect and initiative move from green sales opportunity through the evaluation and selections process to a completed deal. Great engineers rely on their knowledge of technology and what has worked and failed in the past. Great salespeople rely on their knowledge of people and organizations and what has worked and failed in the past. Salespeople are great at building relationships. They know how to read people like an engineer can read code. They have seen the patterns that say a prospect will buy. They can sense a bad deal like a great engineer can sense bad architecture. Great engineers need judgment. They need to balance moving fast and getting things built with doing things right and avoiding technical debt. Great salespeople need judgment. They need to balance closing a deal and getting a “logo” with what will make the customer successful and benefit both companies over the long term. Management Just like engineering teams should be organized by product areas, sales teams should be organized by geo- building relationships and generally knowing where the market is headed. In both sales and engineering the They decide when to commit the deal. The company trusts them and knows that once committed, they will do what it takes to bring it in. A good sales process is like iterative development. They are frequent milestones along the way that are observable proof points that the deal is progressing. “Is there budget for the project?” “Does the selection criteria line up well with our solution?” “Have we clearly communicated how we are different from the competition and our economic value?” “Have we positioned a smaller purchase on the road to an enterprise rollout?” These prevent you from coming to the end of a long sales cycle and getting a big and costly surprise. Testing graphic region. This allows the sales team to build long term relationships with the same set of customers and prospects. Prospects like to talk to local customers during reference checks. The sales team can get to know regional partners and connect them with the right customers. It allows momentum in the region to build. The fundamentals of management are the same across sales and engineering. You need to build a culture that expects and rewards excellence. You have built the team with talented people, now you need to give them room to perform to their potential. You need openness and transparency so they have the information needed to make the right decisions. Know Where You are Headed Both sales and engineering teams need to balance both short-term demands with longer term planning and roadmap. Great sales teams are thinking three moves ahead of the competition in identifying prospects, process is critical. The best sales processes empower talented salespeople with everything they need to close the deal. They foster transparency and communication so the entire team knows what is going on with a deal. Great salespeople do not lose alone, they win as a team. The sales of smart devices that link to the handset to carry out specific tasks will reach over 10 million in 2017 from just over 10 million at the end of 2012 says a report by Juniper Research. Courtesy: Juniper Research Like you test your products you should test your sales process. Know your win and loss record. Look at your sales cycles and figure out the common characteristics of the long vs. the short. What can you automate? Early in the cycle could you have better collateral to educate the buyer? Talk to the prospects you lose to competitors. Hear it directly from them about why they chose a different solution. Though salespeople are distinct and may not always see eye-to-eye, the qualities of what makes sales and engineering teams successful at their respective jobs aren’t all that different. Both are predicated on talent. Similar things motivate both. They need to feel empowered and know where the company is headed, that they have a stake in the future of the company. They need to execute, whether they are building the next big product or trying to close that crucial customer. And they need to be held accountable for results, just as the executives must hold themselves accountable for steering the company in the right direction and for communicating what is expected to all employees. C I O Re v i e w |39| October - November 2012 vIEW POINT THE FINE LINE OF TRUST IN THE I BY JON WALLACE, Director, Emerging Technology & Strategy, AppSense n the last few years there has been an explosion of technology advancements within what is considered to be the ‘cloud’ space, much of which has caught enterprises off guard. Historically, large organizations charted the enterprise-computing course. However, recently many technology teams have been forced to make uneducated decisions about the cloud due to an inability to perform adequate research. For enterprise organizations, cloud technology is seen as both a major step in IT evolution and at the same time, one of the biggest threats to security. On one hand, there is the security group, who are responsible for safeguarding company information and IP at all cost. Yet, on the other hand, there are the desktop and delivery teams, who are responsible for delivering resources to users. In the past, both of these teams existed and worked together with some what of an unsaid truce. Recently, with the rapid introduction of new devices such as smartphones and tablets the truce is now on the brink. More and more users are demanding that IT provide remote work capabilities and easy access to information. And, with an array of available consumer cloud services, C I O R ev i e w |40| October - November 2012 they are finding ways of servicing themselves when IT will not. To reference a recent quote from a CIO: “We have 15,000 iPads in our organization. I never bought a single one of them yet users are demanding we support them. With so many personal and corporate applications, combined with the data access problem, we have a challenge to solve both fast and securely” The initial reaction from IT personnel is to simply label the cloud as insecure and untrusted. While at times that is in fact the case, more often than not, it’s not so clear-cut. In most instances the former claim is based on unfounded knowledge. Consider for a minute the datacenter of a provider like Amazon. It is safe to say that for most organizations, the security, maintenance and management of Amazon is in fact greater than their own environments. Which Data is Worth Securing? I had a number of executive strategy reviews recently and the subject of cloud was discussed. Within the meetings, most people spoke passionately about how cloud services for CRM and sales had enabled their organizations to be more effective and profitable yet, were equally ag- gressive at the thought of storing user data anywhere except their own datacenters. This is an interesting paradigm whereby organizations were willing to trust the cloud to store content such as customer information, sales history and account lists, but were unwilling to consider storing documents containing source materials or manufacturing processes. With that in mind, I would like to explore the value placed on certain information or data, and how it ultimately helps Organizations are unwilling to potentially expose sensitive documents that contain material possibly protected by patents, but are willing to take risks with regards to customer information Jon Wallace Headquartered in New York, Appsense is a provider of user virtualization technology to enterprise organizations. Founded in 1996, the company enables clients to embrace consumerization in the enterprise by independently managing all aspects of the user experience across mobile devices and desktops. organizations make decisions as to what companies will or will not store in the cloud. During the same meetings we spoke of how organizations considered many documents too sensitive in nature and proprietary and as such could not risk being exposed. Because of this classification, it was determined that cloud storage was far too risky and was therefore, not an option in many cases. What is especially of interest here is that organizations are unwilling to potentially expose sensitive documents that contain material possibly protected by patents, but are willing to take risks with regards to customer information. While leakage or theft of any material would be bad, I would consider an organization’s customer base to be amongst its most sensitive. While the meetings exposed a substantial amount of useful and interesting information, the most important take-away was that enterprise organizations do in fact have a line they draw when it comes to cloud. Whereas many will claim that enterprises are not open to the idea of cloud, what I am actually seeing is that it is not about whether or not they are ready for the cloud, but it is about what they are ready to use it for. Leverage the Private Cloud Before making a decision about capitalizing on the uses of the cloud, a CIO should ensure that he, or she, as well as the employees are well educated on the topic. This does not mean listening to a sales pitch or even architecture specialists, but instead prep as if they were in fact planning to sell whatever the service is, internally. Any reputable cloud provider should be willing to source documentation and even provide onsite access to facilities to demonstrate the robustness of their solution. Expenditure in advertising on mobile messaging is slated to touch $7.4 billion by 2017. This growth will be fueled by an increase in the use of location-based SMS to deliver relevant ads to consumers. Courtesy: Juniper Research Many areas of cloud exist that need considering when going through the investigation process including multi-tenancy, separation of privilege or encryption keys, authentication and physical change control to name a few. While many cloud vendors are interested in providing multi-tenant solutions in order to maximize revenue, most will also provide single instance environments if pushed hard enough. It is also worth noting that delivering or making use of cloud services is not just about hosting everything outside of the organization and in fact, organizations that fully educate themselves on the end user need, can find satisfying solutions. Education Remains as the Key As previously mentioned, one of the driving factors for cloud adoption is user demand. The ‘bring your own device’ (BYOD) trend for example is having a profound impact. However, if we take a deep look at the topic at hand, it is possible to see the same thing from two different lenses and thus, reach different conclusions. For many users, the issue is not so much from where they can access resources from but how. For example, if a user has to initiate a VPN connection from a smartphone using two-factor authentication, only to then open another application to access data, the friction is too high. Many consumer cloud providers have been very successful in addressing this very issue. Organizations have access to technology that can enable them to provide users with the same level of service as a leading consumer cloud provider without having to entrust the data to a third party. When you talk about cloud to most enterprises they automatically think public and shared. That’s the misconception.The concept of private cloud is very real and should no longer be shunned. C I O Re v i e w |41| October - November 2012 TECHNOLOGY Big Broad Data: The role of Data APIs ANANT JHINGRAN, Vice President Data, Apigee Founded in 2004 by Chet Kapoor and Rajvir Singh, Apigee is a provider of API technology and services for enterprises and developers. Headquartered in Palo Alto, the company offers an API management platform, which provides visibility, protection, control, and tools for users to use or offer APIs. E nterprises today are shifting their focus from the “bigness” and technology hype of “Big Data” to breadth and diversity, signal extraction, analytics and deep insights. The future is around the easy consumption, the flow and interaction of data, which drives a revolution in the world of Data APIs. The structure of the Data APIs becomes increasingly important. Building an Information Halo around APIs Let us consider enterprises as one of two types from a data perspective: those for whom data is the core business and those who give data away to attract increased transactions to the core of their business. In the latter case, the data (information) itself is not necessarily monetizable, but it attracts people to the business. In both scenarios, data is a fundamental and critical part of an API strategy Enterprises that are monetizing around data are beginning to plant flags in different domains. Weather, finance, real estate, Internet traffic and dozens or hundreds of other domains are forming. C I O R ev i e w |42| October - November 2012 The people building the data in any domain are doing so by collecting from disparate data sources. To build out any one domain, they have probably stitched together data from a large number of data sources, cleansed and standardized it before finally exposing it as an API. What are companies using to collect and stitch the data? Anant Jhingran While linked data techniques are excellent at accessing individual data elements, I argue that this is not the model that these data providers need A natural and familiar stitching technique is the linked data model (linkeddata.org). While linked data techniques are excellent at accessing individual data elements, I argue that this is not the model that these data providers need. Instead they need to crawl, bulk load, and access data in large quantities, before cleansing, standardizing, and delivering it. If linked data is not the most effective method to stitch data together to create the domains (at the bottom of the stack), can linked data become the de-facto standard to express data out of the information halo (at the top of the stack and as the Data API for domains)? The answer is probably yes – eventually. I think it is an unlikely scenario just yet. Today, the challenge is how to cleanse, standardize, unify and use the data in individual domains. Linked data techniques have the right characteristics to bring together data that have already been cleansed, standardized, and stitched but is not a great model to do the initial stitching. It will most likely become useful and common in the future when the inter-linking of domains becomes more important than it is today. If linked data is not the approach to expose data as APIs, what is? The school of thought to which I subscribe is one of schema-based access to data APIs patterned after relational models. Here are a few examples of data APIs, which highlight three common kinds of data access patterns. • Primary key lookup - to get to a specific data element. • Imposed hierarchy-based lookup - in which you have classes with hierarchy and in effect traverse the hierarchy to get to the data elements. • Rectangular lookups - defined by typical relational lookups of rows and columns. All of these techniques are being built around single data sources as opposed to massively linked data sources. The structure and “RESTification” of Data APIs There are several approaches to Data APIs. In addition to the per- spective that is Pragmatic REST for SQL Developers, there is Microsoft’s OData approach. OData is a step in the right direction but there are certain things OData needs to do to become the de-facto standard. The “RESTification” of the Data APIs is a fundamental imperative and both the Prag- matic REST for SQL and the OData approaches are good starting points. Whatever the solution is, it cannot be vendor specific. Data is too important, and the data revolution too fundamental for it to be associated with any one vendor. OData technologies need to be available in all ecosystems, not just in the Windows Foundation Classes (WFC) library and the .NET Framework. Similarly pragmatic REST and other techniques cannot be available in Apigee or any other single vendor offering only. Let the call to action be, to come together as a community; get the best of the linked data and OData ideas and techniques together and transform the world with Data APIs. C I OR e v i ew |43| October - November 2012 vIEW POINT UNDERSTANDING APP STORE UPKEEP - SIMPLE IS NOT EASY To ensure success, you will need resources devoted to fine-tuning its idiosyncrasies, aligning platforms, addressing customer support and so many other needs CHRIS SCHROEDER, CEO, founder App47 Chris Schroeder Headquartered in Reston, Virginia App47 provides application intelligence for the mobile enterprise and gives them the power they need to optimize the mobile user experience. Founded by Chris Schroeder in 2011, the company provides to its clients seamless deployment through reliable management and powerful performance analytics, without compromising enterprise or user data privacy. When it comes to resolving that build vs. buy decision, we have noticed that the lead decision-makers tend to be folks who are already in development or IT C I O R ev i e w |44| October - November 2012 W e are noticing a trend with respect to enterprise app stores, one that is encouraging because it demonstrates increasing endorsement of app stores themselves, but one that is also concerning because it might be clouding perspective on what is really required for app store implementation success. We all know that an app store is the internal distribution and management of privately owned apps, and we all know that it’s something that can deliver tremendous organizational advantage. The question becomes, how do we proceed with an enterprise app store? SPOILER ALERT: It’s the classic IT dilemma: Do you buy it, or do you build it? Here is where it gets troublesome. When it comes to resolving that build vs. buy decision, we have noticed that the lead decision-makers tend to be folks who are already in development or IT. They know how to deploy servers, write software. That means they are already technically adept, and understand the resource demands an app store implementation might require. They know how to point to a file or an XML document and satisfy requirements for Android or iOS. It is not rocket science, right? That certainly makes the case for a build. Why pay a vendor and deprive a capable techie in your organization with the chance to play in a new sandbox? But consider that their ability might be the best example of a double-edged sword in all of IT. Yes, they understand the very real technical requirements, which lead them to the dangerous conclusion that enterprise app store builds are easy. That kind of thinking, in our experience, puts them on the wrong side of the buy vs. build dilemma. Sure, installs are easy, even fun. But once the store is “open for business”, as we have said before, the real work now begins. The tech savvy who built their own enterprise app store are now faced with the demanding reality of managing and maintaining that store something often overlooked during the initial excitement of the in-house build. Open the doors on your enterprise app store and aside from ensuring that it is well stocked with fresh apps (itself an ongoing requirement) you have to address AD, LDAP, VPP, user permissions, upgrades, authentication, and more. Setting up a web server so it has access to a file is without question old hat for most, but what about the fundamental follow-through of bringing in security? Prior even to these concerns is the bedrock UX requirement of making sure it runs properly on myriad devices, via different browsers, diverse screen resolutions and keyboard layouts, and just generally cooperates with a multi-vendor environment. Global mobile messaging traffic is estimated to reach 28.2 trillion by 2017. This figure is almost double the 14.7 trillion messages which will be sent in 2012. The growth will be driven by the upsurge in use of instant messaging service which will account for a quarter of the annual traffic. Courtesy: Juniper Research The complexities become evident pretty fast, which is why a bit of planning and preparation can go a long way toward making the right build vs. buy decision. Think of it like renovating a room in your house. Maybe it is time to transform that unfinished basement into the perfect man-cave, and when your old college roommate tells you he can wire up the entertainment system for a case of beer and a pizza, you’re all for it. You get the speakers set up, the big-screen on the wall -but wait, the fiber optic connection is on the other side of the room. And you do not have cable anymore. You are going to use satellite and Internet for all your content. Well, plug in the HD antenna and at least you get local stations. That’s cool, right? Clearly what is begun in earnest can end in frustration if you are not seeing the big picture. That expansive vision is critical for effective enterprise app store implementation, especially when you need to confirm how it generates revenue. In the same way companies evaluate their Intranets or platforms like SharePoint, you will need to sit down with your CIO, or whoever manages the budget, and convince them that it is worth the engineering dollars and technical time to first set up your enterprise app store, but then more importantly to maintain your enterprise app store. To ensure success, you will need resources devoted to fine-tuning its idiosyncrasies, aligning platforms, addressing customer support and so many other needs. Is that the best use of your R&D dollars? If you want to change your job title to “enterprise app store manager” then perhaps it is. But if you would rather stay focused on the mission of your particular organization, it is worth it to weigh the advantages of buying an app store vs. building one yourself. C IO R ev i e w |45| October - November 2012 vC TALK OPPORTUNITIES GALORE FOR ENTREPRENEURS IN MOBILE AND SOCIAL “REINvENTION” AJAY CHOPRA, General Partner, Trinity Ventures Trinity Ventures is a boutique early stage venture firm with an unwavering dedication and respect for entrepreneurs. Their main focus is on early stage companies in targeted technology categories: Cloud/Mobile Infrastructure, Digital Media, Software-as-a-Service, and Social Commerce and Entertainment. The firm was founded in 1986 with a focus on a diffentiated approach to venture capital — an approach long on collaboration, short on hierarchy, and with none of the “our way or the highway” mentality. Since joining Trinity Ventures in 2006, Ajay Chopra, General Partner, Trinity Ventures, has developed a reputation as an entrepreneur’s coach. His passion is helping entrepreneurs execute their Big Idea. He has over 20 years of operating experience at the senior management and board level with start‐ups, private companies and public companies, including at Pinnacle Systems, a company that he founded and grew to a $350M revenue NASDAQ listed company. Being the General Partner, Ajay Chopra shares his current priorities and some tips for the entrerpreneurs. Ajay Chopra Area of focus of investment Trinity is an active investor broadly in the IT and IT enabled services area. Our current investment themes are Digital Media, Social eCommerce and entertainment, Cloud services and Software infrastructure. About half of our investments are consumer focused and half are B2B. We invest primarily on the U.S based companies and work tightly from a single office so we can provide personal service to our portfolio companies. Some of the hottest technologies we follow We are very excited about mobile commerce. We feel that mobile commerce is in its first inning. With ubiquity of cell phones and enablement of location based services several interesting opportunities for commerce will fuel innovation. Trinity has a very good portfolio in eCommerce space with C I O R ev i e w |46| October - November 2012 investments in Zulily, Beachmint, ThredUp and Bonfaire. We plan to look aggressively for investments in mobile commerce space. Trinity Ventures also believe that the IT services space is going through a massive transition with more and more of enterprise applications moving from “behind the firewall” deployment to cloud based services. The first wave of this transition was for back office services such as customer support and HR. We now see opportunities in front end cloud services such as marketing automation and social media analytics. Trinity has made recent investments in these areas including Act-On and Dynamic Signal. The New areas of opportunity for innovation The re-invention of web services in the mobile and social domain are huge opportunities for innovation. We have al- ready seen early examples of this in the consumer services, for example, in the photo space (Instagram is mobile reinvention of Photobucket) and video space (SocialCam is the mobile reinvention of YouTube) and publishing space (Flipboard is mobile reinvention of Yahoo News). We believe we will witness several such reinventions in the B2B space as well as the workforce becomes more mobile and fragmented. Your most effective medium to learn from the technology decision makers and influencers about the latest Enterprise solutions Get to know more about CIOs needs and expectations from Enterprise Solution providers YOU CAN’T AFFORD TO MISS Advice to the Entrepreneurs Invest your time in building companies that solve real problems for your target customers. Usually this means that you need to have a very good idea of the problems your customers face. We like entrepreneurs who have deeply internalized these problems and are passionate and relentless about providing a kick-ass solution that is second to none. Please send us your cheque to CIOReview, 44790, S Grimmer Blvd, # 202 Fremont, CA - 94538 You may call us at 510.936.8604 $60 for 12 issues