Archive for April 29th, 2012
I made it to my first session at IBM Impact 2012 earlier this afternoon here at the Venetian Hotel and Casino in Viva Las Vegas.
The session was a stage setter for the rest of the event, and I just HAD to share what I learned with the rest of the world.
Rahul Sahni, a market development advisor with IBM’s AIM and ICS organizations, shared a market view for the Application and Middleware Infrastructure market, which we know is changing underneath our feet.
Rahul’s presentation was excellent, hitting the highlights of both what is shaping the market, and what’s driving some substantial changes in it.
The Economic Shakeout
He set up his presentation with some macroeconomic data: Japan still coming out of recession, Europe still a wildcard with obvious volatility in the south, the US/Canada holding steady in the 3-4% GDP growth range, and the BRIC’s coming in for a gentle landing, some more softly than others.
There are some potential threats to business growth: In the developing markets, the currency devaluations. In the mature markets, the sovereign debt crises. And yet despite all this volatility, the storage and software infrastructure markets remain strong.
Mr. or Mrs. CIO, Can You Spare A Project?
Why? CIO plans require strong IT infrastructures. If you look at where IT execs are spending, the sweet spots include AIM middleware, where often one or several IT projects will include parts of the AIM middleware portfolio.
Becoming Agile For The Upturn
Of those, projects required Agile/OOD systems, process simplification, industry and/or government compliance, cost reduction mandates, the amount and availability of data, and finally, workforce mobility and productivity are the top six drivers. Ergo, the AIM market is expected to grow some 6% in 2012, and will grow to an estimated $1 billion opportunity in 2013.
Economic conditions are such that key projects have resulted in more demand for small IT initiatives with short term ROI and a need for greater productivity and efficiencies. Pie-in-the-sky projects with long-term prospects for growth have been mostly sidelined. Show me the money, and show it to me soon (meaning, the value that will be returned against the project).
The AIM Market Is Growing…and Changing
Of the three AIM market segments, there’s Application Infrastructure (growing at 8%), Business Process Managment (11%), and Connectivity and Integration (2%). In the first, key growth drivers are the enterprise need to provide transparency, reduce costs, and stay competitive.
For BPM, cloud adoption is now a key driver in BPM as smaller and medium-sized businesses’ processes become more complex and as BPM cloud solutions become more price-aggressive.
For Connectivity and Integration, on-premise integration can now be matched by cloud services in functionality and also aggressive pricing.
So, writ large, the AIM market is growing today because its products can help simplify IT complexity, and help organizations better understand, improve, and make more transparent their business processes.
Organizations also need to make the best use of what they already have in the way of IT investments, and AIM products provide the ability to integrate existing applications, infrastructure, and processes with new development initiatives. This becomes especially critical as we see continued activity in mergers, acquisitions, and divestitures. All to applications, infrastructures and processes have to be integrated somehow.
This Is Not Your Father’s Application And Integration Market
So what about some of these new arenas? Mobile platforms will most definitely continue to grow and evolve, with market data suggesting that enterprise investment in mobile application development will increase at the rate of 20-30 percent per annum in order to meet the rising demand for customer applications.
Customer facing industries rank highest with need to develop mobile enterprises, with virtual guns being held to their heads as they compete for customer-centricity in a growing but younger customer base.
Application Convergence Will Rule The IT World
Also noteworthy, over the next few years, the lines between the Web, hybrid and native apps will blur and mobile enterprise application platforms (MEAPs), portals, other web development approaches will converge into a new generation multichannel application development tool. Those organizations unprepared for this transition may soon find themselves on Application Island with no place to row back to.
Become Your Cloud: The Great Mobile Gold Landrush of 2012
It goes without saying that the cloud is inherently critical to this new environment. Cloud based development is lowering the cost of adoption and increasing the speed with which companies can roll out mobile solutions, and a significant portion of the IT opportunity associated with mobile enterprise initiatives will come not from the purchase of devices and network services — the bright and shiny objects that all your friends and family get so googly-eyed about — but from the associated software, consulting, system integration and security services.
The Future’s So Bright…
I’ll call it “the Great Mobile Gold Rush of 2012” — remember, we’re laying the tracks for a new foundation of computing. The excitement may be in the devices, but a little sleight of hand reveals the ridiculously gargantuan opportunity in the virtual picks and shovels required to make it all work.
To which point Rahul began to close his session, reassuring the business partners in attendance and beyond that this is a market IBM is committed to. WebSphere still makes up a substantial share of IBM Software revenues, and IBM’s 2015 roadmap reveals that 50% of segment profit is expected to come from IBM Software. (And no, we’re not feeling any pressure over here or anything!)
IBM’s four key growth initiatives against that 2015 roadmap reveal two obvious intersects with the AIM market, our growth markets, where much of the middleware layer is being laid for those future railroad tracks, and cloud computing, to which IBM has made massive investments in growth, organic and acquisition, over the past several years.
Throw in a little business analytics technology to help you understand your AIM infrastructure performance, and there’s plenty of upside in the AIM.
My takeaway: The AIM future’s so bright you gotta wear some of those Google augmented reality glasses, but if you can’t see your way through evolving with the convergence of the mobile enterprise and the cloud you’ll have few business processes left to worry about managing!
It’s Sunday morning here at Impact 2012, and the IBM Impact Business Partner Summit has already begun.
If you’re not there, and you were supposed to be there, that probably means you overslept and that you’d better hurry up and shower and get down there.
For those of you who are not attending the Impact Business Partner Summit, I have just one question for: Well why not?!… Seriously, if not, that you means you’ve got almost a whole Sunday to yourself in Vegas.
However, as I mentioned in my post yesterday, it’s always good to have some structure in life and at conferences. So, if you don’t have any structure, I’m going to attempt to provide you some in this, “The 5 Things You Need To See At IBM Impact,” overview post. Listen carefully…
Number one, you need to see all the IBM Impact general sessions, mini main tents, and as many of the breakout sessions and hands-on labs as you possibly can. You’ll learn a lot there, and it’ll keep you off the Las Vegas Strip, where nothing good can ever happen to you. Trust me on this.
Solutions For Everyone At The IBM Impact Solution Center
Second, you also need to stop by the IBM Impact Solution Center (the Expo!), where you can spend time playing nice on the Impact Social Playground with all the other boys and girls (more on that in a moment). There’s also the IBM product technology center.
Remember, the conference mantra this year is to “Change the game,” but how in the world are you going to change it if you’re not even in it!??
In the Solution Center, you will find a hub of activity for more than 9,000 expected attendees, and this is where Scott Laningham and I will be spending much of our time on the ImpactTV stage.
This year’s IBM Impact Solution Center will feature the latest technology and cutting-edge solutions offered by IBM and IBM Business Partners. Please take advantage of this opportunity to network, collaborate, and view live demonstrations… even if the demo you’re watching freezes, you’ll learn something!
Playing On The Impact Social Playground
On the Impact Social Playground, you’ll find an exciting social club that will bring together all the social movers and shakers. I’m not one of them, but join us nonetheless and I’ll pretend to move and shake. The Impact Social Playground is located in the Impact Solution Center and will provide enhanced social networking facilities for all attendees, business partners, Tweeters, bloggers, analysts and media.
There will also be 2 private recording pods, for those very personal interviews, and a 12 seat recharger bar station seating for networking and catching up on your social activities, and recharging your batteries (yours and your electronic devices). It’s a great place, in other words, to hang out. In fact, I was hanging out there just last night (I told you, it’s better to stay away from the Strip, and that includes me!)
Of course, if you’re ready to leverage technologies that will fundamentally reshape our future and change the way organizations operate, as well as increase human capability, you should check out the Forbes Business Leadership Forum tomorrow and Tuesday.
There, you will find unmatched resources and practical solutions on how to innovate transform and grow your business, including feedback from clients who have successfully leveraged technology to not just reduce costs and improve efficiencies, but also to fundamentally transform the way they do business. When’s the last time you did that?!
The Impact Unconference
And finally, for you developers out there, day 3 will be “Developer Day” and the IBM Impact Unconference. Developer Day will start with an inspiring general session, “Freedom to Achieve Your Application Potential,” which will be followed by a mini main tent session featuring technology comedian Don McMillan who will present on “The New Development Reality.” You’ll also hear from IBM Fellow Grady Booch, and talks on mobile, cloud computing, and…well, you’ll just have to show up to find out the rest.
Later in the afternoon on Wednesday, the “Unconference,” sponsored by IEEE and the Global WebSphere community, will give developers the opportunity to set the agenda by voting on the ideas they want to hear and presenting topics they want to discuss. It’s the ultimate in crowd sourced content!
So, keep your eye on #IBMImpact via Twitter, and here on the Turbo blog for full coverage of IBM Impact 2012.