Telecom 2.0 & Communication Enabled Business Processes

When Amazon Cloud player was launched, I posted a note saying it doesn't make sense to store my personal music on the cloud and listen to the list by streaming over the network. I wrote, with the idea of applying cloud computing models all around the place, the biggest beneficiary is not going to be the user - but the Telecom operators!.

All new solutions target for a bigger and bigger network pipe - be it unified communications, Internet 2.0 coined by Cisco for multimedia content, real-time web, activity streaming, Audio/Video Uploads and Downloads. No doubt there is a value behind these new offerings. But, I believe 'bigger' doesn't necessarily mean 'smarter' solutions.

Its time that we demand 'smarter' pipes from our Telecom operators. We transact so much with Internet from PCs and Mobile Phones, that there is enough scope to offer 'smarter/intelligent' services over the Internet Pipe. Mobile Web is gaining lots of traction with the advent of smartphones and their PC-like capacities. Mobile Carriers have a larger role to play in rolling-out those value added services on top of their network.

When I had a chance to work with SalesForce.com, I also realized the fact that granularity of service invocations would have an impact on your costs both from your SaaS provider and the Internet Service operator. More calls you make to the SaaS provider, the more you may end up paying on data charges!.

I had this question for a long time - Is this an Optimal design to do everything over Cloud?. If Cloud is inevitable, what more I could do leveraging the power of the underlying network?

I learned that industry is thinking on similar lines and started working on something called 'Telecom 2.0'. As part of the next generation carrier services, some of the operators have started providing APIs over their networks. So, People can develop innovative applications that can operate on their networks, as if they are interacting with application platforms. What could they do using those APIs? - For example, they can limit or expand the bandwidth availability to an application on-demand at runtime by interacting with carriers, they can communicate about their current location, they can convert voice communications to text, they can process SMS/MMS as intermediary between source and destination, they can in fact optimize the network communications (e.g. Caching the interactions with Cloud - This is my wishlist :-)).

Recently, world's third largest telecom operator Telefonica introduced network APIs called BlueVia that enables these new generation of applications.

For example, Some of the pilot applications written over those APIs include - SugarCRM customer representative receiving incoming voice mails in the form of text messages / return those calls from the application itself / another app called 'Caller ID 2.0' - providing the details of the user who calls you on your VoIP phone. That sound's really interesting!.

These apps fit in the category called 'Communication Enabled Business Processes'. I strongly believe this is going to be next biggest disruptor in business application space. Microsoft Lync and other unified communication solutions, if bundled the rightway, could become the next killer application & ubiquitous use case.

To top it all, the most interesting use case is - TaxiStop - a taxi booking and fleet management application that uses a Network APIs called BlueVia from Telefonica Corporation. The mobile application is available for Android, iPhone and Windows Phones and the core service sits in Microsoft Azure Cloud. The Cloud based service mediates the booking between the passenger and the driver in real-time and in the course of the transaction, it uses network APIs to send and receive SMS/MMS. Please note neither the passenger, nor the Taxi management company is managing the booking application. The services are all brokered via an intermediary which sits in the network. This is a classic example of multi-tenancy and innovative business model!. Apps like TaxiStop truly signal the arrival of a new paradigm - 'Network is the Platform, Network is the Data Center'. Its a significant mind shift change to rethink our business models and IT architectures!.

Toyota & Technology Transformation!

If you believe BFSI (Banking, Financial Services and Insurance industry) is the early adopter of emerging technologies, and Manufacturing industry is typically a laggard in those aspects, think again!. I have some very interesting and promising updates that could change this perception.

Toyota has recently signed up partnerships with two Technology companies. One with Microsoft and another with Salesforce. And that's not all - The partnership with Microsoft will leverage Microsoft Azure/Cloud Computing and SalesForce alliance will leverage its Chatter.

Along with Microsoft, Toyota is attempting to build Next Generation Telematics Platform for Cars using Windows Azure. Telematics is fusing of telecommunications and information technologies in vehicles. Telematics services helps to transmit critical vehicle information via GPS/GPRS/Communication technologies to a centralized data center where the information can be aggregated/analyzed and reported for optimization actions. Information that gets transmitted include car's health information, energy/fuel consumption data, on-call/emergency service requests. General Motors was the pioneer in this offering with its OnStar service in North America.

As automotive industry is moving towards alternate energy sources, role of Telematics is going to be critical in providing centralized energy management services.

The promising aspect is both Microsoft and Toyota are investing close to $12million in a new venture - Toyota Media Services - that would provide IT services to Toyota Automative Group of companies.

In the second update, Toyota has signed up with SalesForce to build a private Network called 'Toyota Friend'. This network will be built on SalesForce Chatter platform. Using this service, Toyota's customers will be able to connect with their own cars, the automative service company and Dealers. This private network will be integrated with the Telematics platform that Microsoft is building for Toyota. Interestingly, using Toyota friend, you car will be able to tweet to you on maintenance schedules, fuel updates, tips for driving, etc.

These two initiatives would certainly change the image of Toyota that it's no more a conservative player when it comes ot adopting emerging Technologies in their automative products/services. And from technologies perspective, Cloud Computing/Social Computing are making inroads to some of the conventional industries such a Manufacturing.

Cloud Computing 2.0

Interesting things happening at SalesForce.com. I believe the recent events at SalesForce.com could influence the progress of Cloud Computing industry in a big way.

1. Database.com
Its a Cloud database offering from SFDC. Using this DB, developers can write applications in any language of their choice, host it on the platform of their choice and connect to this cloud DB, as if they are connecting to on-premise database. There are news that some of the vendors are even developing database drivers (like JDBC) for database.com, so that development community can connect to the Cloud DB with ease. In fact, if those drivers become available, it will require very few changes for legacy apps to be able to talk to Cloud DB.

2. SalesForce.com acquire Heroku.com
Heroku.com is a Rails Cloud Provider. Anyone can write a Rails application and host it on Heroku cloud. With this acquisition, SFDC would have the capability to support Rails PaaS in addition to Java like Force.com platform. This would increase the choice of platforms available to end users for developing custom applications.

3. Cloud 2 Vision
In the DreamForce conference, SFDC CEO has unveiled its next version of Cloud Computing Strategy. And He goes on to say that SFDC architecture has been reworked to support mobile, cloud and social capablities. And now Enterprise business applications can acquire the capabilities of cloud/mobile and social, all three in one offering by partnering with SFDC. Sounds promising?. Its interesting to note that newly launched Database.com comes with native support for modeling social applications (such as integrating with profiles/connections) and connecting to mobile based applications. In a way, SFDC strategy is already demonstrated in databse.com offering.

It is good to see lots of traction on Cloud Computing and increased number of options becoming available to Cloud Development Community. With the rate of progression, I hope to see developers would using most of their standards languages and tool sets to work with Cloud with minimal or no changes to their existing skill sets. This will accelerate the adoption of cloud in the development community and subsequently the same community will influence the adoption within their respective organizations as well.

But, What bothers me is that - SFDC primarily is a business service provider to line of business users. But do you see the change in their course, now morphing themselves to become a platform vendor. And that transformation will only appeal to Enterprise IT and not the line of business users. No doubt, platforms are required to give rise to creation of new applications. But, I would personally like to see lots of innovative business applications served on SaaS from SFDC and others competing vendors and not just the infrastructure.

Another disturbing phenomenon is the disintegration of various layers in Cloud Computing. Now, if someone wants to develop a vanilla enterprise application from scratch, he/she can assemble various layers of the application from various clouds - application layer, database layer, [Am not sure someone provides UI layer/presentation frameworks alone on Cloud]. Now, just imagine, running a single transaction that spans across multiple networks, multiple data centers in different geographies. Am sure that would increase complexity of Enterprise Apps to multifold. And We would need a new set of tools to manage the complexity. I wouldn't be surprised if someone provides those tools also on the cloud..:-)

HCL CEO Vineet Nayar does a Larry Ellison on Cloud Computing!

Few weeks ago, I had raised a concern that many of the Indian IT services CxOs dont talk about Technology and merely interested in topline/bottom line issues. And few weeks later, I had also highlighted the Technology leadership displayed by Steve Jobs in Apple's earnings call.

And this week, Here is Vineet Nayar talking about Cloud in HCL Analyst conference. Its heartening to see an Indian IT services CEO talking about technology. And not only for this instance, Vineet has been articulate and attracting media attention for quite sometime now, due to HCL's tremendous growth in recent years, renewed marketing and Vineet himself talking about company's strategy convincingly.

Now coming to the main issue of 'What' exactly Vineet talked about Cloud. And that where it gets interesting. In the interview, Vineet explains why he is not so excited about cloud. And He states the fact that there is no disruptive technology behind cloud and its just a business model that is packed in a new format. [Oracle CEO Larry Ellison ranted on Cloud few years ago on similar grounds]

Very True!. In fact, I had mentioned this very same issue in 2008 stating that Cloud is indeed a rocket science and there is no magic pill that would enable someone to become a cloud provider from day one. Pls note, anyone can become a cloud consumer instantly. But becoming a Cloud provider is not so easy!. And there are genuine technical challenges in being a authentic cloud provider.

The industry is still in early stages in discussing/debating and defining what an 'authentic' cloud means in 'technical' terms.

Leaving the semantic definitions behind, Cloud indeed brings visible economic benefits to Enterprise IT. And if Vineet, as a CEO of an IT services company, is concerned about his customers (most of them being Enterprise IT), why don't his company take the leadership and pass on the cloud benefits to them?. If Cloud is an opportunity to create a new value for Customers, why dont we adopt it? Why should he wait for a disruptive technology to arrive to create a new value?.

Vineet disputes the value proposition of Cloud, because it fundamentally conflicts with his traditional business model. And the traditional IT services business model is threatened. Period.

In his new book, Vineet reveals HCL's new strategy - Employees First. Isn't it obvious?. In a people-intensive business model, your employees have to be first!. But, then, there are umpteen number of challenges in sustaining this strategy such as Growing wages and increased attrition,etc.

Time has come to revist the linear, people-intensive IT services business model to a non-linear, technology-intensive business model. Only then, IT services can reduce the cost of existing services and introduce new value added new services. And that exactly What Cloud offers!. It provides a non-linear business services platform for end customers with no or less strings attached.

I strongly believe that Indian IT services firms can come up with service innovation backed by Technology. For example, some of the IT service companies are providing platform based BPO services or few of the companies provide business products.

Am glad that Vineet talks about 'Employee First'. But, it would be much more meaningful if Technology also takes a slot in the Strategy.

Promising Acquisition - I

In the recent past, I have had the opportunities to deal with application rationalizations, replacements/migrations and had the chance to recommend suitable SaaS solutions in replacement for on-premise solutions. What do you think the response might have been?. Well, the customers are definitely interested in the solution, but they are not bold enough to take that first critical step due to various reasons such as requirement of new contracts/agreements, data security, provisioning, user management, switching/transition costs.

My point of view - the ideal & easiest situation for the end customers to adopt SaaS would be - the current application custodians becoming the actual Application owners. Yes, the IT service companies who currently manage the applications, to transform themselves as SaaS provisioning companies in the respective business domains. The Service companies that provide the seamless switch to their end customers from being an owner to consumer will add great amount of value.

If that happens, it could open the door for a brave new world where IT service companies start to create their own SaaS ecosystem to serve each other and their respective clients.

Of late, we are witnessing quite a few acquisitions in the market that could lead the way to the new ecosystem - HP-EDS in the past and Dell acquiring Perot Systems last week. Will Dell-Perot combination give HP-EDS a run for its money?. Not necessarily.

The question to be asked is - what is the new value that could be brought by these acquisitions to the end consumer?.

The IT infrastructure products & services market is clearly being disrupted by various factors such as virtualization, cloud computing/SaaS, etc. And companies are rapidly responding to the disruptions by complimenting their capabilities by suitable acquisitions.

As I mentioned earlier in this post, would these new IT infrastructure + Services combo deliver those new value Options or spend the next couple of years in just restructuring companies to increase more revenues?. We'll have to wait and see!

WebServices killed EAI. Cloud Computing/SaaS kills what?

Cloud computing/SaaS has the potential to virtually eliminate Internal IT completely from the enterprises. The widespread adoption of Salesforce.com confirms the fact that operational functions - such as HR, Sales/Marketing – today has the ability to bypass Internal IT departments and go ahead to procure the On-Demand applications of their choice. Is it a threat to Internal IT? Ok, that is a different point of discussion altogether.

But, today, I thought I would write about the role of Technologies in the context of Cloud Computing Space. The very fact that applications being pushed out of the firewall to an external service provider literally ‘masks’ or ‘virtualizes’ the complexity in the architecture and technology behind those applications. The simple/direct consumers of SalesForce.com do not need to know the complexities such as its architecture, technology, etc. They all need to know the consumption details of SalesForce.com services.

In fact, Cloud proponents wish that Business users having the ablility to deploy, consume and compose Cloud Services, without needing technical help. And that’s where the real power of Cloud is waiting to be unleashed!

Here is another story from CIO.com. In a recent survey, CEOs perceive that packaged applications are more reliable than Internal IT developed. And they don’t really care what platform/technology the apps are running on. All they need is business performance and SLAs.

In conclusion, Business desires for Solutions isolated from the complexities of Technology and Platforms. That leads to the need for more ‘abstraction’. Just like WebServices came few years ago and provided the much needed abstraction behind heterogenous platforms, Cloud Computing/SaaS is destined to make significant changes in the Technology industry.

In the context of Cloud computing and provisioning business services to end-consumers, Does the end-consumer really care whether it is serviced by Java or .NET platform?. Not really?. Do they care if it runs on Linux or Windows ? May not be. Would they be worried if it runs on Open Source or Commercial platforms?. Again, Not seriously. It’s the SLA and the integrity of Services that matter to the end-consumer.

This trend will influence the procurement/adoption/experimentation trends of Technologies and Open source frameworks within the walls of Enterprise IT. We may not see wide-spread forums / communication across Enterprise IT users in the long run, as it will get influenced and diffused by Service Providers.

It is the Service Providers who will majorly nurture and develop the platforms and Technologies and not necessarily Enterprise IT shops. That’s a significant shift in the ecosystem of Technology. We could expect umpteen number of small and medium service providers providing pointed solutions in niche industry segments. And it is the Service Providers who will contribute and shape the Technology / Infrastructure & Framework landscape. And Enterprise IT will be forced to provide more value towards real business solutions.

And I also foresee significant consolidation in the Platforms / Infrastructure space. Why do we need various kinds of application servers in the Cloud, while the end objective is driven by performance?

A new market is emerging where we will see hybrid tools and technologies that will enable Enterprise IT shops to manage their data centre operations as well as their Public Cloud operations together from a single window. Am sure IBM is working on such a ‘Hybrid Tivoli’ tools and systems. In fact, one of the interesting note that I read was IBM is working on some sort of ‘Cloudburst’ feature where the load from Internal data centre is dynamically distributed to public cloud and seamlessly serviced! Wow!.

As I wrote before, We are going to witness a highly decentralized, but centrally managed ecosystem for Enterprise IT.

Tech Bits!

Each of the following bits deserve a separate post. So, Pls treat them as preview to my future posts.
- SAP is Timeless Software – SAP’s CTO Vishal Sikka writes that the company believes in incremental innovation and its NetWeaver product suit just follows the same philosophy. It promises its customers a seamless, incremental migration to the new platform without needing a radical transformation of the existing infrastructure.
He also states that SaaS paradigm is suitable only for pointed solutions and not a broader, end-to-end encompassing ecosystem based solutions. Sounds believable?

- I have written about the viability of internal clouds within the company’s own data center. And here is a company doing just that. The company, Cassatt, provides Cloud computing software for Data Centers. The software promises to make the data center efficient, Green and Agile. Sounds very interesting!. Companies which are skeptical about engaging the Internet clouds for security/integrity/SLA reasons have the option to try out and experiment in their own data centers.
You know what – The Company says, it may take another 15 years for companies to fully migrate into a Cloud platform. They believe whatever cloud software that we see in the market is just 1.0 and there is more work to do. As I have written before, the Chief Engineer of Cassatt writes that its all about the Architecture and ilities when it comes to Cloud computing. Couldn’t agree more!

- IBM Smart SOA – Statistics indicate that about 60% of SOA implementations done by IBM are at maturity level 1. And IBM aims to shift the focus of SOA programs to demonstrate business value. This move by IBM clearly indicates the change in the industry’s perspective of SOA programs and the rising demand for demonstrating value.

- I received an email carrying the subject line ‘Future of IT’ and I was curious to find out more. The white paper goes on to say that automation of IT processes is the Future of IT. The perspective is that IT management processes should be automated around ITIL/CMDB practices and the management/resources should be relieved to connect and engage with Business. All this, boils down to the question – ‘Do we need an ERP for IT?’

I strongly believe an ERP for IT will shift the focus of IT from inward to outward and the most important aspect - aligning with business.

- Palm has released its new version of Smartphone 'Pre' and Operating system. As one analyst writes, every other smartphone that gets introduced to the market of late, tries to outdo ‘iPhone’ obviously. And it only adds some more credibility to iPhone, that its is seen as the benchmark to evaluate any new phones coming to the market. Instead of adding features and trying to outdo iPhone, it would be interesting to see if the companies demonstrate the real value brought by the new product. One more phone in the Enterprise Mobility space?. We will have to wait and see.

Cloud Computing Consequences!

What is the impact on Enterprise Architecture with the introduction of Cloud Computing and SaaS?
One word – ‘Serious’.
Here is my perspective.
- On the first look, it may seem like Enterprise Architecture is irrelevant in a company if your complete IT is running on Cloud Computing, SaaS and Outsourcing/Offshoring. In fact, I was of the same opinion last year. However, Its not the case. In fact, the complexity is going to get multiplied.
- We have moved from Monolithic systems to Client-Server to Tiered Architectures. With SOA comes the truly Distributed Architecture. And with Cloud Computing and SaaS, We are moving to “Globally Decentralized/Distributed Architecture”.
- With Global distribution, we will be able to compose business processes out of services from SalesForce.com, Services running on Azure/Amazon and host the resulting composite in another cloud platform. Does that sound too Cool and Flexible!. Of course. But, It is also exponentially complex to manage in the long-run!
- Some of the challenges - What are the failure modes in these Global composites? Can we optimize the attributes of those composites? How do we trace/troubleshoot, version control these composites? What are the foreseeable security threats in these Global platforms?
- Integration between these huge Clouds/SaaS platforms? - Welcome to the world of Software-Intensive, Massive System of Systems! :-)
- If the first generation EA guided us in dealing with System of Systems within an Enterprise, the next generation EA should help us in addressing ‘Massive System of Systems’.
- With this new complexity, not only Enterprise Architecture gets necessary, but becomes absolutely critical in the IT ecosystem.

Its raining from the Cloud!

If you are running an Enterprise Data Center, will you be able to give an itemized billing to your customers as Telecom companies do for every month? Can your customers pay using their corporate credit cards? Will you be able to provision and de-provision servers / resources in couple of minutes instead of huge ramp-up time and Bureaucracy?
And that is what, Cloud Computing promises to offer. While Amazon’s cloud offerings are production-ready, Microsoft’s latest Azure has just been announced. While there is lot of debate going on the industry about the viability of cloud business model in the long-term from providers’ perspective, I clearly see the end consumers being the beneficiaries. A whole new ecosystem is developing around the Cloud computing model. And if Enterprise IT is not taking a note on this model, it may not be good for them in the long run.
Yet again, I see ‘SOA’ hype being overtaken by one more useful and economical solution – Cloud computing. The takeaway from this trend is that – Enterprise IT is much more disciplined than in the past, where they specifically ask ‘What is in it for me?’ rather than getting carried away by a ‘Technology Hype’ story.
And SOA analysts have started confirming that SOA will fade and morph into much broader solution areas like SaaS and Cloud Computing. My take is that SOA will get into the infrastructural layer of enterprise applications where it becomes an enterprise fabric for connecting various entities within and beyond the corporate firewalls.
What would be interesting to see is an evolution of ‘Internal Cloud Platform’ which the Enterprise Data Center Team can just buy such platform off-the-shelf and start provisioning it from day one, rather than building one such platform by themselves.

Imagine the possibilities! The more the savings, there is greater potential to divert those funds to innovative projects.

Oracle on Amazon Cloud

Amazon Cloud computing is gaining enterprise credibility. Now with the biggest announcement, Oracle Database, Oracle Fusion Middleware and Oracle Enterprise Manager can be licensed to run within Amazon EC2 Cloud. Customers can even reuse their existing licenses with no additional licensing fees to run in the cloud. These products along with Oracle Enterprise Linux are prepackaged and ready to run in the Amazon cloud. In addition to that, Oracle Developer tools and Middleware are readily availabile to build and host enterprise applications on the cloud.
Thats definitely a welcome change!. Now, Provisioning, Building and Deploying applications on the Oracle suite does not need a huge upfront / capital expenditure on the hardware infrastructure and all can be done within minutes!.
But, this only means that the enterprise customers will get an advantage at leveraging Hardware/Infrastructure-as-a-Service and they may need to wait till the next level of granularity of services arrive, which is Oracle itself becoming available as Software-as-Service.
One more interesting observation was - with recent acquisition Oracle has made out of BEA systems, having double the power of SOA/middlware platforms, Why didn't Oracle decide to build and host its own SaaS platform?. Instead, why did it decide to partner with Amazon's cloud?
The answer only adds credibility to Amazon in the Cloud Market and I believe this move by Oracle may invite some more Enterprise vendors to Amazon Cloud. Would it be SAP?