Don’t Tank a Great Cloud Strategy by Maintaining Legacy Silos

There’s no doubt the world is enthralled by the promises of cloud computing. What’s not to like about freeing up enormous capital expenditures in favor of subscription-based services for functionality that someone else has to worry about? Well, the fact is that most SaaS applications are merely silos of their own, not significantly improved from the legacy systems they were designed to replace.

What about APIs, you ask? David Linthicum dispels the API warm and fuzzy when he talks about early attempts to organize cloud APIs: “…while it makes an interesting conversation, consumer concerns still surround vendor lock-in and portability issues.” He’s absolutely right. Most companies are already using several cloud applications and are being forced to choose standards that could be a big problem down the road if they decide to change vendors or add new applications. APIs can and do change with unnerving frequency, creating points of failure and headache.

For all of the great things cloud can deliver, unless a business has a way to quickly integrate cloud-to-cloud and cloud-to-on-premise software, it’s just replacing today’s problems while creating tomorrow’s.

The promise of Integration Platform as a Service (iPaaS)

There is good news in the midst of what could be considered dark clouds (pun intended): There is a cure for the woes of silo’d cloud. On Tuesday, TIBCO announced the launch of Cloud Bus, putting down a significant marker in the iPaaS arena.

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There is No Glass Ceiling When it Comes to the Cloud

The glass ceiling for IT has been broken when it comes to cloud. Unlike before, companies now have the ability to cut out the hardware, and even the software if they choose to, with a cloud solution that reduces costs and shortens time to market. Companies with options can become more agile to better serve their customers. The cloud is the starting point to breaking IT’s reliance on the old ways of doing business.

Companies often get so overwhelmed with the idea of cloud and integration that completing either seems like victory enough . However, with seamless integration and a cloud that comes along with it, companies can go well beyond deployment to find real business value.

Not All Clouds are the Same

As popular as cloud is for businesses, and as important as it is to innovation, cloud projects are often viewed as daunting because of time and cost. These are the two factors that can torpedo any business venture. Companies often think short term when it comes to their systems, so they fail to recognize the necessity of integration and cloud’s ever-increasing value.

Not one cloud looks the same as another and not every company is at the same stage of their cloud deployment cycle. This kind of variation demands something flexible. Companies need the freedom to test different ideas before deployment and the flexibility of a cloud solution (that does not trap a company into a vendor) reveals how companies can make the most of their investments.

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Take the Cloud to a Higher Altitude

This post was originally featured on May 21, 2013 in VentureBeat as a guest post by Matt Quinn, CTO of TIBCO.

We’re well beyond any question about whether cloud computing is the future. Software-as-a-Service (SaaS) paved the way for the idea that organizations can operate some of their most important systems in an on- or off-premise cloud. Small, medium, and even large businesses accept that cloud computing delivers flexibility, cost, and scalability that business has never had before. Companies are gravitating to cloud because it brings very short time to value and doesn’t impact the current business model. Lower cost and less risk are very attractive propositions.

How big is this move? Forrester estimates that the average company has 9.3 different SaaS applications in use. Consulting firm Capgemini reports that 78% of new applications are deployed into the cloud — and that’s just the applications that are being tracked. In reality, workers today are practicing BYOS (Bring Your Own Service) as they experiment with SaaS in broad ways that IT, and even business managers, may not know about.

Cloud has its challenges

As cloud computing continues to mature and its use expands, it hasn’t been without challenges. The most significant limitation has been the increasing pain of a lack of integration between cloud applications and the rest of the business. This is a pain that becomes more acute as the cloud-to-cloud and cloud-to-on-premise system invariably becomes more complex. On top of the integration challenge, the mechanics of cloud expose organizations to increased risk of data integrity, process latency and security. Oftentimes, SaaS applications are being marketed to the business, which likely looks at risk in a different way than IT or compliance. This is a challenge itself as the organization faces risks that aren’t understood or moratoriums on SaaS use that aren’t followed.

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Customers Have Been Stretched Too Thin by Company Service Agreements

Our lives are becoming increasingly elastic with businesses who empower our constantly changing lives as our greatest allies. Service relationships used to be agreed upon as strict packages measured in multi-year contracts with hefty cancellation fees. Mobile phones, insurance plans, and cable subscriptions – anything you couldn’t own outright, involved an ironclad, unchangeable contract. But that’s increasingly passé as businesses tap into the natural ebb and flow of consumer and business life. Namely, if you want to use, rent, or borrow something for a month, a week, or just this moment, an arrangement can be made.

Consistently Inconsistent

These new service relationships make sense when looking at how change is the only constant in our lives. A team can be rapidly growing a business one moment, freezing everything to handle a crisis at another, and then be back expanding at a breakneck pace, all in the same quarter. Naturally, they’d like their services to keep pace.

In our own personal lives, we can be traveling nonstop for what feels like weeks, then come back to a monotonous daily commute for two months. While all of this is going on, we always wonder to ourselves why we are paying for what we often don’t need and can’t increase what we need when we do need it. Why am I paying for utilities when I’m never home? Why can’t I increase my data plan for my phone without entering into another agreement? Why can’t I rent the office space I need, instead of these giant spaces that are available? These were all questions that challenged established businesses to change their perspective on service, and modernize their business models through innovation and flexibility.

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How Retail Data Management is More Difficult than Just Remembering Your Shopping List?

Visiting the neighborhood supermarket on weekends to shop for groceries has become a weekly occurrence for most working people. We all know buying food everyone in the family likes can be a difficult task. I normally have a lot to purchase during these visits because my wife and I have different kinds of breakfast. I am a person who loves the full English breakfast while my wife prefers the delicacies of Indian cuisine.

The Grocery List

Listing our shopping items is a simple process carried out easily in our minds and through conversations. However, for companies that produce the items we buy at the supermarket, maintaining product catalogs is more complex and difficult. Each product is made up of ingredients vital to the nutritional value, flavor, and aroma of the product. For my frosted flakes with honey and almonds to taste perfect and be marketed with the right labels, companies use a data management system to ensure that the right ingredients go into the right products at the right time. Consolidation of information about core products and optimizing product information workflows, increases operational efficiency by providing people and systems in the company with a single source of accurate and consistent product information. [Read more...]

I Know What You Did and Which Aisle You Did It In

Loyalty in the Enterprise:  This is Part Two of a series on loyalty best practices in the Enterprise. Read Part One and discover what are the Four Holy Grails of Marketing.

Indoor mapping of consumer location is the latest arrow in the quiver of the retail marketer. When marketers know where things are happening, they can develop interesting patterns for where to put resources like people, signage and information technology. Geolocation also provides the remarkable ability to spot the patterns that predict what to expect from consumers, and can be tested and continuously refined based on effectiveness and cost.

Marketers can also send messages directly to the consumer based on where they are in that very moment. They can say, “Hey, you were in Aisle 5 and showed interest in that new phone—here’s an offer for 10% off.”

Service versus stalking

But where does it start to look like stalking and less like helpful service? The difference between creepy and convenience is found in whether consumers are knowingly and willingly sharing details about their path through the store, mall or city, and how long they spend in any one spot. When they’re not agreeing to this level of data collection and use, the outcome looks much more like Big Brother.

Pretty soon, they’re not agreeing to share their location and turning off that app that tracks their location. Who wants that? [Read more...]

What are the Four Holy Grails of Marketing?

Loyalty in the Enterprise:  This is Part One of a series on loyalty best practices in the Enterprise.  Tune in tomorrow for the next part in the series.

The remarkable amount of change in the consumer world is ushering in a new definition of loyalty. What have long been static programs of points and plastic cards are becoming dynamic, individualized and much, much more engaging.

The old way of simple ledgers and confusing redemption schemes was a fundamentally flawed proposition. Customers were able to accumulate points but struggled to keep track of and gain real value in return. Something had to change.

Enter Customer Loyalty Management

Customer Loyalty Management is the new, holistic approach to driving higher levels of loyalty to brands. It puts a focus on what have emerged as the four “pillars” of loyalty:

  • Loyalty programs
  • Wider event streams
  • Marketer-driven relationship marketing
  • Test & learn

Each of these four is key to finding the “Holy Grail” of marketing: creating “fans”—people who think of a brand first and represent a much higher lifetime value. But today’s technology combines social, mobile and analytics to create new ways to drive another layer atop the four pillars, including higher trust, greater insight and relevance, and recognition leading to virtuous cycles of increasing value.

These are lofty goals that would be impossible without the new approach in technology and strategy offered by Customer Loyalty Management.

Aligning the Tools and Techniques

As consumers’ buying patterns change, the tools and techniques of loyalty need to change alongside them. There are four specific areas where the tools and techniques align with the four pillars and matter the most for the new Customer Loyalty Management:

  • Social
  • Mobile
  • In-store
  • On-line

Each of these areas is impacted by those changing buying patterns, and there’s an opportunity for brands to avoid disruption and benefit from the shift. These points of personal and digital engagement are the new realities of letting consumers engage in ways that increase their experience and create true fans.

Cloud Integration Needs to be Better, Faster and Cheaper

Massimo PezziniGartner’s Massimo Pezzini spoke this morning at the AADI Conference in London on the topic of why integration is even more critical in the ever-expanding world of cloud computing. Pezzini started out by commenting that application integration was a science that we were finally beginning to master just as the game changed with the arrival of cloud computing. With this game change comes new realities and consequences for cloud services integration (CSI) that Pezzini laid out as follows:

Realities

  • Your organization plays in one or more “virtual enterprises”
  • Cloud services (e.g. SaaS) hold some of your data
  • Cloud services manage “chunks” of some of your business processes
  • Your application portfolio will include both on-premise and cloud apps

Consequences

  • You wil have to increasingly share data with your partners and participate in their business processes (and vice versa)
  • Your data will be fragmented across cloud and on-premise
  • Your end-to-end processes will span cloud and on-premise

He followed up this foundation for his discussion with what he described as the three key issues facing businesses looking to integrate cloud and on-premise applications: [Read more...]

Gartner on Building Big Data Solutions

Ian Finley of GartnerGartner’s Ian Finley spoke this afternoon at the 2013 Gartner AADI Conference in London. In what was a primer on Big Data, Finley predicted that there will be 4.4 million jobs in Big Data by 2015, but only a third of those positions will be filled due to a lack of resources in the labor market. He used that prediction to emphasize the value of first understanding the business need for a Big Data solution and formulation of solid use cases.

Finley provided examples of common Big Data opportunities that Gartner is seeing:

  • Public sector: real-time monitoring of traffic flows, vehicle locations, resource use
  • Public safety: Forecasting the extend and impact of natural and man-made disasters as well as surveillance
  • Utilities: Understanding individual use patterns and improving demand management
  • Retail: Web and e-commerce by analysis of clickstream and customer feedback. Providing faster and more accurate customer responses.

Finley referred to retail as the most popular use case and said that it attracts the greatest number of resources and publicity. [Read more...]

Gartner AADI and Dragging Your Technology Past Into the Future

luggage full and ready to travelGartner’s AADI Conference kicked off this morning at the Park Plaza in London with the keynote Gartner Keynote: Integrate the Past. Embrace the Present. Shape the Future delivered by Gartner’s Andy Kyte and David Mitchell Smith. Kyte and Smith talked about the Nexus of Forces (cloud, mobile, social and information) that is driving both change and uncertainty. They framed their conversation against the skills and assets that organizations bring from their past, but also about the technology and process “baggage.” To move forward, they said, “…organizations must not just integrate legacy but also do so in a way that minimizes dependencies on legacy thinking.”
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