Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Agile Computing, @BigDataExpo, SDN Journal, @ThingsExpo

@CloudExpo: Article

2014: Customers Rejoice in the Year of Service Personalization

In 2014, we will see more service providers resolve to add more personalization in enterprise technology

As we enter a new year, it is time to look back over the past year and resolve to improve upon it. In 2014, we will see more service providers resolve to add more personalization in enterprise technology. Below are seven predictions about what will drive this trend toward personalization.

The Internet of Things turns into the Internet of Agents. M2M connections and multi-agent systems will result in an increasing number of highly personalized, value-added branded services. The latest Gartner forecast for the Internet of Things (IoT) predicts that by 2020, there will be $309 billion in incremental revenue opportunity for IoT suppliers, mostly in services. Everything-as-a service (XaaS) will lead us toward more complex services, more bundles and more options. Individual users will use agents whose sole job is to create functional services for individuals, out of everything available in the connected service universe. As we move closer toward XaaS, we will become familiar with the concept of "agents" in the delivery of those everything services via SaaS, PaaS and IaaS. Agents can reside as modules within SaaS service offerings or they can be tools embedded in the service provider infrastructure or operating systems. Agents can exist in cloud-connected devices, or in the management software within the evolving smart device ecosystem. Any service delivery platform (SDP) can contain agents that add functionality to the supported services by collaborating with other agents on other platforms.

Everything-as-a service does not tolerate mediocrity. Services will increasingly be decomposed, repositioned and resold or bundled with other services. Many common products will transition to being sold as a service, resulting in creative combinations of services that have never been thought of previously. Services will become encapsulated within other services and service components extracted from one service will be built into multiple others. In 2014, the gap between products that support the evolution to completely new business models and those that deliver simple efficiency gains will increase, creating a new crop of leaders and leaving many others behind.

Incomplete projects and unfulfilled promises reveal that the emperor has no clothes for many SaaS vendors. It sounded too good be true, and after the last couple of years of hype, enterprises will demand to see results before handing the keys to the kingdom to companies that promise to deliver business transformation. The requirements of Internet merchants and simple commerce do not easily translate to the enterprise, unless you are willing to start walking the path to commoditization. Enterprises will demand to see transformation results for a single line of business, in addition to scalability and performance proof points, before they agree to enterprise-wide deployments.

Cloud-as-we'd-like-it-to-be is not your father's cloud. 2014 will usher in entirely new business models for a uniquely cloud world that goes beyond today's primary use as a cost-reduction tool. We will see the start of the transition from cloud-as-it-is to cloud-as-we'd-like-it-to-be. Not the same old commodity cloud of the past, this cloud makes it possible for service providers to mash up offerings with third-party applications to tap into new markets. In formulating a new strategy for cloud adoption, the question will no longer be, "Should we?" but rather, "How far should we go, and how fast?"

The new cloud world will, when we get there, be dominated by ubiquitous, easily accessible and globally connected computing power available on-demand as shared resources to support computing services for those who want to use them.

Three paradigm shifts will occur in the world of cloud computing:

  • Connectedness instead of insularity
  • On-demand services instead of products
  • Access to shared resources instead of individual ownership

The move to this new cloud means we will be more connected rather than less connected; we will consume more computer-driven services and buy fewer computer hardware and software products; and we will benefit from the economies of scale and improved utilization by sharing more computing resources instead of building out our own. The cloud will bring ubiquitous access to immense software choices for users, at prices held low by the twin drivers of visible competition and a base cost minimized by the effective shared use of infrastructure and platform resources.

Software-defined networks (SDN) and network functions virtualization (NFV) become mainstream. With companies such as Google and Facebook already taking advantage of SDN for their networks, it is not a question of if, but when service providers begin to transition costly, proprietary networks that inhibit new service rollouts and revenue streams. We will see a radical change to commodity hardware populated by different kinds of software. Software will be where the differentiation is, while hardware will earn its living by being inexpensive, reliable and plentiful.

SDN and NFV signal the end of bad vendor behavior. Decades-long mistreatment by vendors will lead to the removal of "strategic vendors" from the preferred vendor list and replacement with new vendors that put the customers' needs first. In 2013, the first steps were taken as service providers realized that promises would remain unfulfilled for re-architected platforms desperately needed to support new services and revenue streams. In 2014 the death wish will begin to be fulfilled for traditional OSS/BSS suppliers and proprietary hardware vendors.

Monetizing the new cloud means survival, but only for the prepared. If you are an individual or a company consuming cloud services, you will, of course, be charged, and you will pay your bills. But if you are a cloud service provider, then life is likely to become more complicated. Simplistic cloud services are easy to copy, and with ever-decreasing barriers to entry, increasingly commoditized. Providers will take advantage of interconnectedness to work with multiple other providers to create new and sometimes unique services consisting of bundles of other services and service components. To do this requires more sophisticated pricing, bundling and partner settlement capabilities to take advantage of the cloud opportunity. For those who are prepared, they might just take on the market leaders to reshape the market as we know it.

What trends do you expect for 2014?

More Stories By Esmeralda Swartz

Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

Latest Stories
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...