Migration to Office 365 is inevitable for virtually all organizations for several reasons, including the instant availability of new features, simplification of the IT environment, and elimination of the technical debt of extensive customization. However, as outlined in a new Leadership Insight published for clients of our Sourcing Strategies subscription research and advisory View, it should not be viewed as a cost-saving measure. Moving to the cloud involves both legal and technical complications, particularly for companies that have complex SharePoint implementations with large numbers of mission-critical workflows, interfaces, and workarounds.
The main drivers for this move include internal pressure to reduce maintenance costs and Microsoft’s Cloud-first strategy, which means that all upgrades to Office and SharePoint will appear in the cloud first and on-premises much later, if at all. The online versions of Exchange and SharePoint will be the vanguard of Microsoft’s product strategy. Continue reading Office 365 Migration is Inevitable, and Complex
ISG released its fifty-third quarterly Outsourcing Index® report last week, providing a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.
The fourth quarter of 2015 was exceptionally strong in terms of annual contract value (ACV) growth, however, this came on the heels of a down year overall for the sourcing industry. For those of you that have not traditionally tracked this segment of the IT Services industry, there has been a long-term secular trend towards deals with smaller ACV and shorter contract terms. Overall, we’re seeing more deals getting done, but they are smaller and shorter.
What’s driving this change? Companies need flexibility. Smaller, shorter deals enable sourcing buyers to move more quickly in response to the dramatic changes that are sweeping through our increasingly connected global economy. Companies are also looking for outcome-based approaches that can directly Continue reading The Outcome Economy: Changing the Rules of the Outsourcing Game
At the beginning of this week, we saw the following statement from SAP and Accenture:
“SAP and Accenture (NYSE:ACN) are joining forces in the core and industry development and go-to-market of SAP® Business Suite 4 SAP HANA® (SAP S/4HANA), the next-generation business suite from SAP built on the industry’s most advanced in-memory platform. This unprecedented collaboration intends to accelerate development of SAP S/4HANA as well as industry and line-of-business solutions, with a view to simplifying and fast-tracking customers’ journeys to digital businesses.”
On the surface, such partnerships are commonplace. But to Saugatuck, this announcement carries some extra meaning, suggesting a potentially seismic shift in how SAP, and other enterprise business management software providers, develop their core offerings.
The announcement suggests on one hand that SAP continues to shift from in-house-focused application development toward more collaborative, partner-driven Continue reading SAP, Accenture, HANA, and Digital Business
This year – 2016 – will be a tumultuous year for security, and not because of data breaches and compromises, of which there will be many. Rather, the year will herald the beginning of significant market change as technology changes, Cloud delivery models, politics and regulation all tear at the fabric of and alter the security market landscape. The significant changes to security that Saugatuck Technology forecasts for 2016 include:
- Passwords become passé
- Organizational musical chairs
- Governments Want a Say
- From Zombie Toasters and Washers to …
- Flashlights and Hands-up, You’re Covered
- Not Ready for Prime Time
- Structural Market Evolution
Of these, the most substantive market changes will occur from Government Intrusiveness, Zombie Toasters, Flashlights and Hands-up, and Structural Market Evolution.
Each of these four areas of change will influence and affect the market of Continue reading IT Security in 2016
The unfettered use of modern cryptography is coming under pressure from governments around the World that: 1) wish to limit its uses, 2) use “backdoors” to gain access to its protected data, and 3) obtain technical assistance from telecommunication and Internet operators to obtain access to encrypted data.
The current pressure for restrictions and super-access privileges is coming from governments in China, France, the U.K. and U.S. The move by these governments to gain access to encrypted data is occurring on the heels of the terrorist attacks in Paris and San Bernardino from ISIS terrorists and sympathizers who are using smartphones, tablets, computers, the Internet, Wi-Fi, Tor, and VPN services to recruit, plot and carry out attacks around the World.
- In France, the government extended a State of Emergency that expands house arrests, restricts freedom of association, maintains warrantless searches, expands search powers to cover electronic devices, and enables the French government to block websites and social networks.
- In the UK, bulk data collection practices are enlarged with the ability to identify devices and their usage to IP addresses. A new bill being considered in Parliament will force Internet service providers to keep records of every website their customers visit for a period of 12 months, for subsequent access by law enforcement.
- In China, a new law mandates telecommunication and Internet service providers to provide technical methods, assistance and support for decrypting data and other counterterrorism efforts of the government.
- In the US, a proposed Senate intelligence committee bill will require companies to decrypt data upon government request.
Continue reading Will 2016 Bring a Framework for Encryption Warrants?
Two emerging technologies that are often in today’s headlines, but which we expect will stall in 2016: drones and autonomous vehicles. We find these compelling because they serve as highly-visible proxies illustrating many of the regulatory and societal issues and challenges engendered by the adoption and adaptation of low-cost technology sets.
Consumer and commercial uses of Unmanned Aerial Systems (a.k.a. “drones”) will be challenged in the coming year, as a panoply of issues confuse consumers, regulators, and businesses. Announced this week, the U.S. Federal Aviation Administration’s (FAA) Small Unmanned Aircraft System (UAS) registry is now live and ready for UAS owners; registration is mandatory for any UAS weighing more than a half-pound and operated outdoors. The registration, and other FAA rules such as height restrictions, are to promote safety, but many parameters and enforcement are still uncertain – and we are unlikely to achieve clarity within the next 12 months. Meanwhile, approximately 700,000 drone units are expected to ship in the U.S. by year-end 2015, a 63 percent increase from 2014, according to the Consumer Electronics Association.
And the industrial drone market is expanding beyond the military into commercial uses, such as agriculture, construction, and energy/utilities. But flying a drone for business is more involved, requiring an airplane pilot’s license. According to the FAA, “Anyone wishing to operate a UAS for purposes other than hobby/recreational must obtain a grant of exemption issued under Section 333 or type and airworthiness certificate.” The rules might change in 2016, but in the U.S. these consumer/business differences will create confusion. Plus, there is a dizzying range of models; everything from a $70 quadcopter to a Predator Drone. Given the flood of consumer and industrial drones into the US market especially, we expect an explosion of problems in 2016 – despite, and in some cases because of, the new regulatory/registration efforts. Continue reading 2016 Confusion: Drones and Autonomous Vehicles
Salesforce is closing out its calendar year with some holiday greening.
This company announced this week a 12-year wind energy agreement for 40 megawatts of a new West Virginia wind farm’s output through a virtual power purchase agreement (VPPA). Continue reading Holiday Greens: Salesforce Announces First Major Renewable Energy Agreement
This week, IBM said that Munich, Germany will serve as the global headquarters for its new Watson IoT unit, with 1,000 IBM developers, consultants, researchers and designers. It is the first Watson center outside the U.S.
We think the move is a smart one for IBM in several ways, by combining extension of IBM’s Cloud-first business drive with an application of the Watson technology in possibly the hottest IT industry trend today – the IoT. Continue reading Kognitiv im Munich: IBM Opens Global HQ for Watson IoT
2015 has seen the departure of three senior executives at Wipro, and each has enjoyed significant media scrutiny and speculation about conspiracy theories that stimulate the rumor mill. None of that is unusual – unfortunately – and clients of Wipro should continue to ignore the hype that seems especially prevalent among some Indian business media participants.
At the end of the day, senior executive departures are an everyday occurrence. Some are voluntary, some are encouraged and many are forced. A changing of the top brass is often an opportunity for renewed focus, new directions or course corrections. It’s isn’t always a bad sign.
Those accountable for the management of their company’s relationship with Wipro, as well as those owning the service lines that Wipro supports, should keep their eyes focused on the leadership team two or three layers below these departing senior executives. Companies the size of Wipro do not live and die on the comings and goings of a single senior leader. Divisions/Verticals such as Healthcare and Oil & Gas are driven and successful based on a team of very talented people. The leadership team with the direct client contact and the delivery team leadership are the people to watch. If that layer of leadership starts to leave en masse, then there is reason to consider your contingency plans, and potentially shift critical work to another service provider. Continue reading Business As Usual: Wipro’s Senior Leadership Changes
This week, Cisco and Ericsson announced a broad-reaching and, in many ways, unprecedented partnership regarding Cloud, IoT, mobility, and more.
The partnership focus is on network transformation for network services providers, including advancements in mobility and the Internet of Things (IoT). The partnership includes planned global coverage affecting business and technology from both companies, including the following: Continue reading Cisco, Ericsson Partner on Networks, IoT, Mobility and More