Business Technology Roundtable

Ongoing Adoption of Enterprise Social Software Solutions

The demand for substantive customer feedback -- and engaging all constituents into the feedback process -- drives the need for businesses to innovate and also manage innovation in a new way.

Results from a recent market study show that this inherent need is also creating the opportunity for social technologies to help support and add value to the commercial innovation process.

The fourth annual "Social Business Survey" from International Data Corporation (IDC) revealed a significant departure from previous years -- in terms of focus and use cases for social business technology.

With the maturing of social media tools within the enterprise -- and their adoption as an engagement channel -- use cases have grown into some broad categories, such as customer experience, sales enablement, digital commerce, enterprise social network (ESN), innovation management, and socialytics.

IDC says that as users request solutions to extend outside the firewall, the 2012 survey demonstrates that security (84%) and privacy (81%) are the top two important functionality identified by companies.

"As enterprise social software grows into enterprise social networks (ESNs), solution functionalities like profiles, activity streams, and blogs have quickly become assumed," says Vanessa Thompson, research manager for the IDC enterprise social networks and collaborative technologies group.

IDC believes that the marked shift in the buying behavior of solutions in 2012 highlights the need for meaningful solutions to extend outside the company firewall and include customers, partners, and suppliers in the feedback and business workflow processes.



Additional findings from the IDC market study include:
  • In 2012, 67% of companies surveyed have deployed corporate-sponsored enterprise social software, noting that the level of autonomy an employee has on how they manage individual task and business workflow has increased.
  • In 2011, the top response to why organizations were using social media, networking, or community initiatives for business purposes was to acquire knowledge and ask questions. This dropped dramatically in 2012, replaced with the notion of customer feedback and engaging all constituents into the feedback process to support and add value to the innovation process.
  • Survey respondents highlighted competitive pricing (87%), minimal performance downtime and latency (85%), and meeting expectations with regard to solution updates or upgrades (85%) to be the most important characteristics of solutions.

IDC polled 700 senior executive-level decision makers in the United States, on their current and future technology and business plans, perceptions, and experiences related to the use of social media or social networking for business purposes and corporate sponsored enterprise social software applications.
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Massive Economic Upside for Unified Communications

A significant new analysis of the economic potential of video, data and voice systems that work together over the Internet -- known collectively as Unified Communications (UC) -- demonstrates that when these collaboration technologies are interoperable, they deliver clear commercial and consumer benefits.

The paper, written by Dr. Michael Katz and Dr. Bryan Keating studies the current unified communications market. The Katz/Keating study outlines the potential negative outcomes for the market of some UC vendors refuse to adopt industry standards that would enable video-to-video calls between different systems.

"The economic effects of incompatibility are not an abstract academic theory," Katz said. "There are real, everyday consequences to economic growth, consumer well-being and business productivity when one company has a proprietary Internet video system that does not work with others. This means less jobs will be created and people and businesses will not be able to communicate as freely, thus negatively affecting global economic potential. Our strong view is that government should monitor this market carefully to ensure that the implementation of standards is not blocked by dominant players seeking to gain competitive advantage."

UC  technologies -- especially video calling -- have been found to improve collaboration, boost productivity, reduce travel costs and enable remote training and services in health care and education.

However, according to the research by Katz and Keating, industry standards are critical to the future growth of the UC market. The market study reports that analysts at both Gartner and Frost & Sullivan find that interoperability is an important consideration for enterprise customers and that standards will increase flexibility for users as well as help lower costs.

"UC has the potential to be a huge growth industry at a time when many sectors are stalling," Keating said. "As with the Internet, we can't afford to have a ‘go-it-alone' mentality in this area.  We must do everything we can to ensure that companies adhere to the common global standard for video calling so that businesses and consumers reap the full benefits of these compelling communications platforms."


The study, commissioned by Cisco, included these findings:

  • UC technologies have significant potential to increase business productivity but the lack of interoperability is an impediment to widespread adoption.
  • UC is particularly susceptible to market failures that could impede standards based interoperability: (a) there are powerful network effects, meaning that the technologies become more valuable as more users are connected; (b) there are significant costs associated with using multiple vendors or switching from one to another; and, (c) certain vendors have large installed bases and important complementary products.
  • Under prevalent market conditions, those vendors who would gain a competitive advantage when networks are proprietary can have incentives to thwart interoperability by undermining industry standards or refusing to adopt them.
  • For these reasons, Katz/Keating conclude, the UC market should be monitored closely for signs of specific anti-competitive conduct.  When there is evidence of conduct that could or has adversely affected competition through effects on interoperability, government should address that conduct and impose appropriate remedies that would ensure adherence to agreed-upon industry standards. 
The economic study follows two recent surveys in the U.S. and in Europe which showed strong support for video technologies working together.  Nearly four in five likely U.S. voters surveyed believe it is important for technologies such as video calling to work together to help create jobs, promote innovation and deliver critical benefits in remote health care, education, business and other services.  And 84 percent of European consumers surveyed believe that video calling should be as easy as making a phone call.

The use of video by consumers, government and business is growing at a staggering rate.  According to the Cisco Visual Networking Index, in just three years, one million video minutes (the equivalent of 674 days) will traverse the Internet every second.  Use of video calling services is also increasing. Share your support for an open video community.
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Global Cloud Index: Traffic to Grow Sixfold by 2016

In the second annual Cisco Global Cloud Index (2011-2016), Cisco forecasts global data center traffic to grow fourfold and reach a total of 6.6 zettabytes annually by 2016. The company also predicts global cloud traffic, the fastest-growing component of data center traffic, to grow sixfold – a 44 percent combined annual growth rate (CAGR) – from 683 exabytes of annual traffic in 2011 to 4.3 zettabytes by 2016.

For context, 6.6 zettabytes is equivalent to:
  • 92 trillion hours of streaming music – Equivalent to about 1.5 years of continuous music streaming for the world's population in 2016.
  • 16 trillion hours of business Web conferencing – Equivalent to about 12 hours of daily Web conferencing for the world's workforce in 2016.
  • 7 trillion hours of online high-definition (HD) video streaming – Equivalent to about 2.5 hours of daily streamed HD video for the world's population in 2016.
The vast majority of the data center traffic is not caused by end users but by data centers and cloud-computing workloads used in activities that are virtually invisible to individuals.

For the period 2011-2016, Cisco forecasts that roughly 76 percent of data center traffic will stay within the data center and will be largely generated by storage, production and development data. An additional 7 percent of data center traffic will be generated between data centers, primarily driven by data replication and software/system updates.

The remaining 17 percent of data center traffic will be fueled by end users accessing clouds for Web surfing, emailing and video streaming.

From a regional perspective, the Cisco Global Cloud Index predicts that through 2016, the Middle East and Africa will have the highest cloud traffic growth rate, while the Asia Pacific region will process the most cloud workloads, followed by North America.



Overview of the Latest Worldwide Market Study:
  • The Cisco Global Cloud Index (2011-2016) was developed to estimate global data center and cloud-based Internet Protocol (IP) traffic growth and trends. The Cisco Global Cloud Index serves as a complementary resource to existing network traffic studies, providing new insights and visibility into emerging trends affecting data centers and cloud architectures. The forecast becomes increasingly important as networks and data centers become more intrinsically linked in offering cloud services.
  • The Cisco Global Cloud Index includes a "workload transition" forecast, which shows the workload shifting from traditional data centers to more virtualized cloud servers.
  • The forecast also includes a supplement on Cloud Readiness Regional Details, which examines the fixed and mobile network abilities of each global region (from nearly 150 countries) to support business and consumer cloud-computing applications and services.
  • The Cisco Global Cloud Index is generated by modeling and analysis of various primary and secondary sources, including 40 terabytes of traffic data sampled from a variety of global data centers over the past year; results from more than 90 million network tests over the past two years; and third-party market research reports. 

"As cloud traffic continues to proliferate in a new world of many clouds, the Cisco Global Cloud Index provides all cloud computing stakeholders with a very valuable barometer to make strategic, long-term planning decisions. This year's forecast confirms that strong growth in data center usage and cloud traffic are global trends, driven by our growing desire to access personal and business content anywhere, on any device. When you couple this growth with projected increases in connected devices and objects, the next-generation Internet will be an essential component to enabling much greater data center virtualization and a new world of interconnected clouds," said Doug Merritt, senior vice president, Corporate Marketing, Cisco Systems.

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