A fascinating post as usual by Sam Lawrence How social software could dethrone the big guys:
The next enterprise software leaders
…Canon used to be fax machines, printers and copiers. They were able to reinvent and capitalize on the digital imaging market and flip flop leadership with Kodak. Kodak is still a player but now there’s a wholly new set of competitors. The same thing will happen for enterprise software. Sure Microsoft, IBM, SAP, and Oracle will be around but there will be room, for the first time in decades, for new players to capitalize on the massive demand and emerge as leaders in a wholly shifted playing field.
This was countered by Dennis Howlett who is visiting the US this week for SAPPHIRE, the SAP event that is “the one place where senior executives, business managers, and decision-makers can come together to explore how innovative business solutions foster long-term, profitable growth”.
His blog post on ZD Net Why social software won’t dethrone the incumbents countered some of Sam’s points:
…While it’s fashionable to beat the large vendors over the head with the latest shiny objects in our fashion led technology game, it is a foolish person who is prepared to bet against IBM, SAP, Oracle and Microsoft. The fact they have yet to establish infrastructures that allow them to credibly include the full gamut of social software (with the possible exception of IBM) doesn’t mean they won’t or can’t…
and
…Sam’s argument is based on Forrester analyst Rob Koplowitz’s assessment of readiness among these vendors compared with the newer vendors like SixApart, Atlassian, SocialText, Jive, Awareness and others. While there is no doubt these category specific vendors have an edge, they’re minnows both in aggregate and market impact…
Typical pithy stuff from Dennis, who is obviously very focused on SAP this week, and well worth reading and absorbing. I posted a lengthy response to both these articles at ZD Net.
This is a very thought provoking post on many levels particularly when you have been heavily engaged in the complex currents and prevailing wind changes typical of the ecosphere in a large enterprise. Not to mention financial justifications which Dennis clearly has a very solid handle on.
There’s great advantage to creating synergy between the enterprise juggernaut backbone and the lighter more agile emergent Enterprise 2.0 app owners. I was chatting with Rod Boothby, VP of Platform Evangelism at Joyent last week, who told me he’s seeing new management roles around ‘light engineering’ in the enterprise to manage the cloud and SAAS.
The challenge is getting these two groups to talk to each other - not the vendors, opposing factions inside the enterprise. Sig Rinde’s quoted post is excellent: “Business is a value chain, a social value chain with a clear purpose”. At budget time this type of thinking is central to decision making.
The IT guys can make a no brainer case for keeping lotus notes running (’the backbone’ to senior management), while mission and metrics for enterprise collaboration processes and technologies, particularly if not built on solid foundations within the enterprise (for example a ground up informal adoption, or ownership in a single silo of many competing ones), can have a hard time justifying its existence.
Sig’s ‘Barely Repeatable Process’ - a bespoke solution to a problem not solvable by the big boys - will get budget justification, because of understood value. Collaboration, while clearly valuable, is being hurt IMO by a lot of very rapid change in the E2.0 spacecoupled with confusion in the marketplace with facebook style ‘poking’ and ‘funwalls’.
The guy with the checkbook may well have teenage daughters who spend their lives on facebook and don’t get any work done - I had this conversation recently with someone in senior management while explaining enterprise collaboration. Not helpful.
Happy talk about ‘groundswells’ (a great book but superficial takeaway by people who skimmed it seems to be ad hoc adoption) and buzzy new tech that will be out of fashion in a year isn’t going to make collaboration technology the backbone of the enterprise, which is where ultimately it will be.
The sweet spot is synergy between backbone and agile limbs as separately debated by Sam with his ‘enterprise octopus’ analogy. I suggest that those who do that best will either become profitably (for the founders) subsumed into a larger organization, or be key partners to them in a growing space…
It would be fascinating to see what enterprise collaboration will look like five years from now and who the players are: SAP’s ‘Business by Design’ initiative is delayed, IBM have offerings that are pretty low key,although David L Barnes, IBM’s program director for emergent internet technology, gave me some insight into IBM’s ‘lotus notes in a browser’ future plans last year. No sign of that yet, and ‘backbone’ adoption will be slow…
Meanwhile Atlassian and Jive are making great headway today. I wonder if this will be a tortoise and the hare race…the tortoise doesn’t appear to have started moving yet, but that could be very deceptive…