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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Europeans are Demanding More Open Video Calling

As video calling usage increases, 81 percent of Europeans say that they now see it as personally important for them that these communications technologies work together, according to the findings from a recent market study.

In a clear signal to the video communications industry, 86 percent want companies to agree to a common standard so that software and devices -- including popular video calling apps like Skype, Facetime, and Google Chat -- are able to communicate with one another.

Unfortunately, that is still not the case in video calling, as opposed to speaking on the phone or exchanging emails, where interoperability is already the norm.

Europeans appear to have a very healthy appetite for video communications. In a survey of 1873 consumers, conducted on behalf of Cisco Systems, nearly 40 percent of those who use video calling said they will use it more often in the next twelve months, whereas only 4 percent expect to use it less often.

Growing Applications for Video Calling

What particularly attracts people to video calling is that it allows them to talk face-to-face with friends and family across the world. However, they are just as enthusiastic -- and sometimes even more so -- about possible applications of video calling technology in areas such as healthcare, education, and in the workplace.

Of those surveyed, 80 percent see video calling as an important way for patients in distant rural areas to talk face-to-face to medical specialists in cities without travelling, while 69 percent believe the technology has an important role in enabling teachers and other educators to hold live lectures and classes by video calling and to interact with students in real-time.

However, survey respondents are even clearer in pointing out that they want multiple devices or programs made by different companies to be able to communicate with one another.

Of those surveyed, 81 percent indicate such communication to be extremely important to their use of video, an unambiguous indication that people have little tolerance for potential glitches caused by a lack of interoperability.

Given the size of its market share in particular, 78 percent of respondents believe that Microsoft should open its Skype video platform. Moreover, 72 percent deem Microsoft's decision not to make Skype interoperable to be unfair to its users.

Key Highlights from the Video Calling Survey

• 85 percent of respondents want companies to agree to a common standard for video calling so programs work together.
• 84 percent believe that video calling should be as easy as making a phone call.
• 79 percent want Skype to be interoperable with other video technologies.

This survey was conducted by Purple Strategies and based on 1873 telephone interviews. For additional details on related trends, view an infographic that outlines business leader thoughts about in-person and online video meetings.

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Unleashing Application-Driven Network Programmability

The ongoing transformation to a comprehensive Business Technology model requires savvy leaders to see beyond the traditional IT and networking silos within their organization -- thereby offering a cohesive portfolio of application-driven services to their key stakeholders.

Cisco has introduced a versatile and broad approach to network programmability -- Cisco Open Network Environment (Cisco ONE) -- aimed at helping customers drive the next wave of business innovation through trends such as cloud, mobility, social networking, and video.

Cisco ONE enables flexible, application-driven customization of network infrastructures to help realize business objectives such as: increased service velocity, resource optimization, and faster monetization of new services.

The Cisco Open Network Environment is delivered through a rich set of platform APIs, agents and controllers, and overlay network technologies. Cisco ONE complements current approaches to software-defined networking while encompassing the entire solution stack from transport to management and orchestration.

With Cisco's Open Network Environment customers can harness the intelligent network through programmability and abstraction across multiple layers, offering a choice of protocols, industry standards, and usage-based deployment models.

As part of the Open Network Environment, Cisco announced the One Platform Kit (onePK) which provides application programming interfaces (APIs) for developers across Cisco operating systems: Cisco IOS, IOS-XR, and NX-OS.

Cisco also announced proof-of-concept controller software and proof-of-concept OpenFlow agent for Software Defined Networking (SDN) research. Cisco is also enabling scalable virtual overlay networks for multi-tenant cloud deployments with the Cisco Nexus 1000V virtual switch. New innovations include: OpenStack support, programmability, multi-hypervisor capability, and VXLAN gateway functionality.

"Our IT network engineers and computer science department researchers have been collaborating with Cisco to develop and advance SDN solutions that will help move SDN from the R&D lab to mainstream business and academic production environments," said Bruce Maas, vice provost for information technology and CIO at University of Wisconsin Madison. "We believe that programmable networks -- providing program interfaces to devices and software that take advantage of network intelligence -- will enable new research innovations that will advance science and boost economic development."

Cisco is collaborating on emerging network technologies with industry leaders, academic organizations, and standards bodies to meet their heterogeneous requirements for network programmability. Cisco's Open Network Environment supports a wide variety of deployment models including:

• Universities and Research Organizations: Network partitioning or "campus network slicing" using proof-of-concept controller software and OpenFlow agents for SDN research.
• Hyperscale Data centers: Network flow management with programmatic access via APIs.
• Cloud Providers: Automated provisioning and programmable overlay network for scalable multi-tenancy.
• Service Providers: Programmatic access, policy and analytics to optimize and monetize service delivery.
• Enterprises: Private cloud automation for virtual workloads , including VDI.

Beta trials and phased general availability are scheduled to begin the last quarter of 2012.

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Five Megatrends are Driving the Personal Cloud Era

If you believe that you've had to learn more about the safe online operation and ongoing management of your PC than you ever wanted to know, then you'll be pleased to discover that there's relief on the horizon. According to the latest market study by Gartner, the reign of the personal computer is coming to an apparent close. By 2014, the personal cloud will replace the personal computer -- and this transition will likely include greater use of media tablets, chromebooks or other similar devices.

Gartner analysts said the personal cloud will become the foundation for a new era that will provide users with an increased level of flexibility with the devices they use for daily activities -- leveraging the strengths of each device, ultimately enabling new levels of user satisfaction and productivity.

However, Garner says that it will require enterprise IT leaders and their staff to fundamentally rethink how they deliver applications and services to their end-users.

Seeking New Fundamental Ways to Achieve Goals

"Major trends in client computing have shifted the market away from a focus on personal computers to a broader device perspective that includes smartphones, tablets and other consumer devices," said Steve Kleynhans, research vice president at Gartner.

He says that emerging cloud computing services will become the glue that connects the various digital devices that people will choose to use during the different aspects of their daily life.

"Many call this era the post-PC era, but it isn't really about being after the PC, but rather about a new style of personal computing that frees individuals to use computing in fundamentally new ways to improve multiple aspects of their work and personal lives," said Kleynhans.

Transition is Defined by a Series of Megatrends

Several driving forces are combining to create this new era. Gartner believes that these "megatrends" have roots that extend back through the past decade, but are aligning in a new way:

1. Consumerization -- Gartner has discussed the consumerization of IT for the better part of a decade, and has seen the impact of it across various aspects of the corporate IT world. However, much of this has simply been a precursor to the major wave that is starting to take hold across all aspects of information technology as several key factors come together:

• Users are more technologically savvy and have very different expectations of technology.
• The Internet and social media have empowered and emboldened users.
• The rise of powerful, affordable mobile devices changes the equation for users.
• Users have become innovators.
• Through the democratization of technology, users of all types and status within organizations can now have similar technology available to them.

2. Virtualization -- it has improved flexibility and increased the options for how IT organizations can implement client environments. Virtualization has, to some extent, freed applications from the peculiarities of individual devices, operating systems or even processor architectures. Virtualization provides a way to move the legacy of applications and processes developed in the PC era forward into the new emerging world. This provides low-power devices access to much-greater processing power, thus expanding their utility and increasing the reach of processor-intensive applications.

3. Software App-ification -- When the way that applications are designed, delivered and consumed by users changes, it has a dramatic impact on all other aspects of the market. These changes will have a profound impact on how applications are written and managed in corporate environments. They also raise the prospect of greater cross-platform portability as small user experience (UX) apps are used to adjust a server- or cloud-resident application to the unique characteristics of a specific device or scenario. One application can now be exposed in multiple ways and used in varying situations by the user.

4. The Self-Service Cloud -- The advent of the cloud for servicing individual users opens a whole new level of opportunity. Every user can now have a scalable and nearly infinite set of resources available for whatever they need to do. The impacts for IT infrastructures are stunning, but when this is applied to the individual, there are some specific benefits that emerge. Users' digital activities are far more self-directed than ever before. Users demand to make their own choices about applications, services and content, selecting from a nearly limitless collection on the Internet. This encourages a culture of self-service that users expect in all aspects of their digital experience. Users can now store their virtual workspace or digital personality online.

5. The Mobility Shift -- Today, mobile devices combined with the cloud can fulfill most computing tasks, and any tradeoffs are outweighed in the minds of the user by the convenience and flexibility provided by the mobile devices. The emergence of more-natural user interface experiences is making mobility practical. Touch- and gesture-based user experiences, coupled with speech and contextual awareness, are enabling rich interaction with devices and a much greater level of freedom. At any point in time, and depending on the scenario, any given device will take on the role of the user's primary device -- the one at the center of the user's constellation of devices.

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Why Big Data Applications Adoption is Accelerating

Big Data applications have gained new momentum in the marketplace, as the benefits of working with larger and larger data sets enables analysts to spot key business-related trends. International Data Corporation (IDC) released a worldwide forecast of Big Data opportunities, noting that the market is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015.

This represents a compound annual growth rate (CAGR) of 40 percent -- or about 7 times that of the overall Information and Communications Technology (ICT) market.

"The Big Data market is expanding rapidly as large IT companies and start-ups vie for customers and market share," said Dan Vesset, program vice president, Business Analytics Solutions at IDC.

IDC believes that for business technology buyers, opportunities exist to use Big Data solutions to improve operational efficiency and to drive innovation. Use cases are already present across industries and geographic regions.

"There are also Big Data opportunities for both large IT vendors and start ups," Vesset continued. "Major IT vendors are offering both database solutions and configurations supporting Big Data by evolving their own products as well as by acquisition. At the same time, more than half a billion dollars in venture capital has been invested in new Big Data technology."

Findings from the latest IDC market study include:

• While the five-year CAGR for the worldwide market is expected to be nearly 40 percent, the growth of individual segments varies from 27.3 percent for servers and 34.2 percent for software to 61.4 percent for storage.
• The growth in appliances, cloud services, and outsourcing deals for Big Data technology will likely mean that over time end users will pay increasingly less attention to technology capabilities and will focus instead on the business value arguments. System performance, availability, security, and manageability will all matter greatly. However, how they are achieved will be less of a point for differentiation among vendors.
• Today there is a shortage of trained Big Data technology experts, in addition to a shortage of analytics experts. This labor supply constraint will act as an inhibitor of adoption and use of Big Data technologies, and it will also encourage vendors to deliver Big Data technologies as cloud-based solutions.

"While software and services make up the bulk of the market opportunity through 2015, infrastructure technology for Big Data deployments is expected to grow slightly faster at 44 percent CAGR. Storage, in particular, shows the strongest growth opportunity, growing at 61.4 percent CAGR through 2015," said Benjamin S. Woo, program vice president, Storage Systems at IDC.

The significant growth rate in revenue is underscored by the large number of new open source projects that drive infrastructure investments.

Focus on Big Data Deployment Methodology

IDC methodology for sizing the Big Data technology and services market includes evaluation of current and expected deployments that follow one of the following three scenarios:

1. Deployments where the data collected is over 100 terabytes (TB). IDC is using data collected, not stored, to account for the use of in-memory technology where data may not be stored on a disk.
2. Deployments of ultra-high-speed messaging technology for real-time, streaming data capture and monitoring. This scenario represents Big Data in motion as opposed to Big Data at rest.
3. Deployments where the data sets may not be very large today, but are growing very rapidly at a rate of 60 percent or more annually.

Additionally, IDC requires that in each of these three scenarios, the technology is deployed on scale-out infrastructure and deployments that include either two or more data types or data sources or those that include high-speed data sources such as click-stream tracking or monitoring of machine-generated data.

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Mobile Enterprise App Development Life-Cycle Services

Media tablet and smartphone software applications (apps) have entered the mainstream of business technology. In fact, results from recent market research by International Data Corporation (IDC) demonstrates that service providers are already reporting increasing enterprise and independent software vendor (ISV) activity -- centered upon the new commercial mobile apps ecosystem that has emerged.

These latest developments are establishing mobile initiatives for a variety of horizontal and industry-specific business-to-business (B2B) and business-to-consumer (B2C) application scenarios.

Enabling Mobile Enterprise Agile App Development

Furthermore, third parties are increasing their mobile application life-cycle investments to meet the growing demand for mobile applications -- such as native, Web-based or cross-platform -- with an emphasis on accelerating client mobile applications to market at lower total cost of ownership (TCO) with higher productivity and quality.

An insightful IDC study has analyzed the emerging new mobility services market and reviewed vendor investments in infrastructure and mobile intellectual property (IP) -- across fourteen different providers.

The following are key factors influencing growth in this segment:

• Accelerating mobile IP creation or investment and partnership activity through component reusability, application factories, and use of internal IP for rapid cross-platform portability are central to service provider investments.
• Partnerships with mobile enterprise application platform vendors are on the rise as are initiatives that integrate smart device technology with cloud-based back-end applications to improve efficiency, reduce cost, and generate new revenue streams.
• The importance of usability and user experience (UX) is becoming a critical best practice to accelerate development timeframes and ensure alignment to business expectations.
• Mobile development is frequently being packaged as part of broader mobile application life-cycle services -- with heightened attention to mobile platform selection, business case development, architectural planning (e.g. back end integration), and agile mobile development and testing.

"As third-party service providers move forward, they will need to address the broader spectrum of enterprise customer needs, from new entrants to the mobile space to more mature customers that have been engaged in a mobile road map strategy for a few years," said Rona Shuchat, director, Application Outsourcing Services at IDC.

The focus will be on building relevant and innovative business-centric solutions -- using mobile device apps as a key enabler.

As such, it's important to conceptualize new use-cases that will increase operational efficiencies and facilitate higher worker productivity, lower the cost of end-to-end order and supply chains, or introduce effective new ways of marketing products to end-customers via mobility.

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Business Objectives Drive the Shift to Cloud Services

Adoption of cloud computing services continues to accelerate as organizations move from limited deployments to comprehensive solutions, according to the latest market study by CompTIA, the non-profit trade association for the information technology (IT) industry.

More than half (56 percent) of the organizations surveyed for the CompTIA study said their investment in cloud computing will increase by 10 percent or more over the next 12 months.

“This additional investment will likely be accompanied by greater complexity in the overall cloud strategy, such as moving to a hybrid cloud model or adopting more advanced services beyond Software as a Service (SaaS),” said Seth Robinson, director, technology analysis, CompTIA. ”Organizations may begin exploring options such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), which will allow them to experiment with custom application development.”

IT departments are often a key driver behind the transition to managed cloud services, but the CompTIA study suggests individual business unit leaders within an organization are equally or perhaps more likely to now seek out the benefits of a cloud service deployment.

About one in five (21 percent) companies surveyed said that line of business leaders championed the transition to a cloud solution -- independently of their IT department.

“Most SaaS applications are easily accessible through the Internet, making it relatively easy for business employees to use them without involving the IT staff,” Robinson said. “But there are risks in this approach, as lines of business often do not have the same awareness of security and reliability as the IT department.”

Demand for Procurement and Implementation Guidance

That being said, apparently the results from the study provided no specific evidence of where CIOs or other IT managers demonstrated security breaches -- as a result of business leaders leading the shift to managed cloud services.

However, the CompTIA study findings did indicate that there's growing interest throughout these organizations to invest more in cloud computing education and thereby learn about the technology deployment considerations.

Although the mainstream business manager's understanding of cloud computing has improved over the past year, many users continue to have questions regarding details of cloud service implementation.

The 2010 CompTIA cloud computing study found that 60 percent of end users desired a clearer definition of cloud computing. In 2011, that number increased to 66 percent.

Areas where users want more clarity include the types of cloud computing offerings (Software as a Service, Platform as a Service and Infrastructure as a Service) and the types of deployment models (public cloud, private cloud or hybrid cloud services).

Attainment of Business Objectives Drives the Shift to Cloud

Organizations that have invested the time to learn about -- or are experimenting with -- cloud solutions indicate they have a higher level of comfort with cloud computing offerings. Approximately 72 percent of these organizations feel more positive about cloud computing now than they did one year ago. Another 25 percent of survey respondents report no change in their perception.

“For those who feel more positively about the cloud than they did a year ago, the primary reasons are the technical benefits and the ability to achieve other business objectives,” Robinson noted. “This finding is in line with data from other CompTIA surveys, where the primary advantage of cloud computing appears to be increased capability, not cost savings."

Note: the survey included 500 IT business professionals and other key decision makers within the U.S. market.

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