Comments for Business Technology and People http://blog.luttinger.com Cloud, RIA, SaaS, PaaS and Application Infrastructure Software Blog Fri, 09 Jul 2010 08:03:44 +0000 hourly 1 http://wordpress.com/ Comment on How to survive the dark side of Cloud Computing by Stefan Ried http://blog.luttinger.com/2010/06/10/cloud-computing-you-got-to-have-what-it-takes-or-else/#comment-221 Stefan Ried Fri, 09 Jul 2010 08:03:44 +0000 http://blog.luttinger.com/?p=212#comment-221 the per seat license revenue is declining, but also more users can get easy access. So the SaaS-shift is only a disaster for those vendors that do not think in new roles. Eg. additional mobile user roles, or social roles like SFDC's chatter subscription, will help to compensate at least a bit the decline of license revenues. We are fully area of the price declining in general and have incorporate this for example in our prediction of the PaaS market sizing. This will cannibalize some partner of existing middleware platform revenues. But, revenues will not only be shifted into subscriptions, they actually decline. Forrester Clients can download the full market sizing model and adjust parameters due to their own business model here: http://www.forrester.com/rb/Research/platform-as-a-service_market_sizing/q/id/47483/t/2 the per seat license revenue is declining, but also more users can get easy access. So the SaaS-shift is only a disaster for those vendors that do not think in new roles. Eg. additional mobile user roles, or social roles like SFDC’s chatter subscription, will help to compensate at least a bit the decline of license revenues.
We are fully area of the price declining in general and have incorporate this for example in our prediction of the PaaS market sizing.

This will cannibalize some partner of existing middleware platform revenues. But, revenues will not only be shifted into subscriptions, they actually decline. Forrester Clients can download the full market sizing model and adjust parameters due to their own business model here: http://www.forrester.com/rb/Research/platform-as-a-service_market_sizing/q/id/47483/t/2

]]> Comment on The Extended Enterprise – from vision to reality with Rich Internet Application technology by Applying RIA and Web to the Extended Supply Chain « Business Technology and People http://blog.luttinger.com/2010/02/24/the-extended-enterprise-%e2%80%93-from-vision-to-reality-with-rich-internet-application-technology/#comment-216 Applying RIA and Web to the Extended Supply Chain « Business Technology and People Thu, 24 Jun 2010 14:07:42 +0000 http://blog.luttinger.com/?p=188#comment-216 [...] interaction with Extendas, in relation with their Flower Office project (mentioned in my post The Extended Enterprise – from vision to reality with Rich Internet Application technology). I was able to get additional details about the solution and its reach – all the way from [...] [...] interaction with Extendas, in relation with their Flower Office project (mentioned in my post The Extended Enterprise – from vision to reality with Rich Internet Application technology). I was able to get additional details about the solution and its reach – all the way from [...]

]]> Comment on How to survive the dark side of Cloud Computing by avigdorluttinger http://blog.luttinger.com/2010/06/10/cloud-computing-you-got-to-have-what-it-takes-or-else/#comment-212 avigdorluttinger Mon, 14 Jun 2010 06:48:45 +0000 http://blog.luttinger.com/?p=212#comment-212 Thanks for commenting, Randy. I agree that Magic faces a difficult dilemma with its licensing model. But the key point I wanted to raise in my post is the much tougher dilemma other middleware vendors are facing concerning a service based business model. In the past, I equated Magic’s path to that of Forrest Gump crossing America, first alone and then with an increasing number of followers. That was in the context of the adoption of metadata driven technologies. I believe that we will see a similar phenomenon with licensing. As the granular price for a software service unit continues to drop, revenues shrink. One typical reaction to that is consolidation, in the hope of reduced overheads. Another is more fundamental and transformational – realignment of the revenue distribution in the supply chain. For Cloud Native companies such as Saleforce.com this is the baseline, charging “run time” fees for Force.com application deployment and usage. But for traditional development tool vendors it would not be as simple, since they do not have a licensing scheme related to the outcome of a development, and such development can be deployed on other vendor’s platforms. That’s where Magic’s business model position, which was a big challenge in an on-premise environment, becomes an asset in a Cloud based context. I do hope that Magic’s management will leverage this into new growth taking advantage of the Cloud boom – I must say the the last 12 months were quite positive in that respect. Thanks for commenting, Randy. I agree that Magic faces a difficult dilemma with its licensing model. But the key point I wanted to raise in my post is the much tougher dilemma other middleware vendors are facing concerning a service based business model.
In the past, I equated Magic’s path to that of Forrest Gump crossing America, first alone and then with an increasing number of followers. That was in the context of the adoption of metadata driven technologies. I believe that we will see a similar phenomenon with licensing. As the granular price for a software service unit continues to drop, revenues shrink. One typical reaction to that is consolidation, in the hope of reduced overheads. Another is more fundamental and transformational – realignment of the revenue distribution in the supply chain.
For Cloud Native companies such as Saleforce.com this is the baseline, charging “run time” fees for Force.com application deployment and usage. But for traditional development tool vendors it would not be as simple, since they do not have a licensing scheme related to the outcome of a development, and such development can be deployed on other vendor’s platforms.
That’s where Magic’s business model position, which was a big challenge in an on-premise environment, becomes an asset in a Cloud based context. I do hope that Magic’s management will leverage this into new growth taking advantage of the Cloud boom – I must say the the last 12 months were quite positive in that respect.

]]> Comment on How to survive the dark side of Cloud Computing by Randy http://blog.luttinger.com/2010/06/10/cloud-computing-you-got-to-have-what-it-takes-or-else/#comment-211 Randy Mon, 14 Jun 2010 03:53:55 +0000 http://blog.luttinger.com/?p=212#comment-211 If you measure success on shareholder value, Magic's share price is the same as it was twenty years ago. The licensing model for the cloud is the same dilemma faced with the shift to the internet from client server. The first go around, protecting licensing fees, achieved zero growth. A different concept perhaps is "eyeballs first". In Magic's case, a hybrid of protecting revenue and eyeballs first would be revolutionary. I'm not privy to yearly revenue for developer licenses vs runtime, but I do know what the growth rate is for the current model - zero, maybe 10% in the best of times. The same can be said for maintaining separate pathways for unipaas and iBolt. A hybrid model to get the product in the marketplace sure would be interesting. You're absolutely correct in your current assessment that others will fail while Magic will continue to survive based upon it's current model. Everybody in the community should appreciate this fact for both stability and their livelihood. But, why not choose one of the fifty countries you do business, and just go crazy and try an experiment? Who knows, it might even work. If you measure success on shareholder value, Magic’s share price is the same as it was twenty years ago. The licensing model for the cloud is the same dilemma faced with the shift to the internet from client server. The first go around, protecting licensing fees, achieved zero growth. A different concept perhaps is “eyeballs first”. In Magic’s case, a hybrid of protecting revenue and eyeballs first would be revolutionary. I’m not privy to yearly revenue for developer licenses vs runtime, but I do know what the growth rate is for the current model – zero, maybe 10% in the best of times. The same can be said for maintaining separate pathways for unipaas and iBolt. A hybrid model to get the product in the marketplace sure would be interesting. You’re absolutely correct in your current assessment that others will fail while Magic will continue to survive based upon it’s current model. Everybody in the community should appreciate this fact for both stability and their livelihood. But, why not choose one of the fifty countries you do business, and just go crazy and try an experiment? Who knows, it might even work.

]]> Comment on The coming out of the hybrid SaaS model by Cloud Computing – you got to have what it takes, or else… « Business Technology and People http://blog.luttinger.com/2009/05/04/the-coming-out-of-the-hybrid-saas-model/#comment-209 Cloud Computing – you got to have what it takes, or else… « Business Technology and People Thu, 10 Jun 2010 15:29:14 +0000 http://avigdorluttinger.wordpress.com/?p=14#comment-209 [...] this subject in my article on RIA and Cloud Computing Apps, as well as in a blog post last year (The coming out of the hybrid SaaS model). I’d like to revisit this [...] [...] this subject in my article on RIA and Cloud Computing Apps, as well as in a blog post last year (The coming out of the hybrid SaaS model). I’d like to revisit this [...]

]]> Comment on Producing water from thin air – dream or reality? by Gene http://blog.luttinger.com/2009/10/13/producing-water-from-thin-air-dream-or-reality/#comment-206 Gene Mon, 17 May 2010 06:36:38 +0000 http://avigdorluttinger.wordpress.com/?p=143#comment-206 This technology is very interesting. It is a direction that Rio Tinto is looking into due to the remoteness of a number of its mine sites and its obligations to aboriginal communities on their lease land. When you say that the 1,000 cubic meter production machine is breaking the cost barrier what are you referring to? What is that cost barrier? I would be interested in learning more, is there someone you could put me in touch with. Thanks. This technology is very interesting. It is a direction that Rio Tinto is looking into due to the remoteness of a number of its mine sites and its obligations to aboriginal communities on their lease land.

When you say that the 1,000 cubic meter production machine is breaking the cost barrier what are you referring to? What is that cost barrier?

I would be interested in learning more, is there someone you could put me in touch with.

Thanks.

]]> Comment on More about Enterprise RIA in practice by A reality check on “citizen development” « Business Technology and People http://blog.luttinger.com/2009/07/24/more-about-enterprise-ria-in-practice/#comment-202 A reality check on “citizen development” « Business Technology and People Thu, 25 Mar 2010 17:03:01 +0000 http://avigdorluttinger.wordpress.com/?p=109#comment-202 [...] The temptation of “citizen” application development dates back to the prehistory of the PC – the introduction of micro computers and products such as Framework and dBase. That was the time when we entered the market with Magic Software, and I supported the thesis that 4GL’s enable line of business experts to directly implement business applications shortcutting much of the traditional development and programming process. Reality proved otherwise, showing that such easy to use tools actually amplify lack of IT skills, which sometimes led to very unhappy endings. We revised our approach very fast to target system analysts rather than LOB professionals, and observed amazing results – very small teams providing very rich and comprehensive applications (an example in More about Enterprise RIA in practice). [...] [...] The temptation of “citizen” application development dates back to the prehistory of the PC – the introduction of micro computers and products such as Framework and dBase. That was the time when we entered the market with Magic Software, and I supported the thesis that 4GL’s enable line of business experts to directly implement business applications shortcutting much of the traditional development and programming process. Reality proved otherwise, showing that such easy to use tools actually amplify lack of IT skills, which sometimes led to very unhappy endings. We revised our approach very fast to target system analysts rather than LOB professionals, and observed amazing results – very small teams providing very rich and comprehensive applications (an example in More about Enterprise RIA in practice). [...]

]]> Comment on The Extended Enterprise – from vision to reality with Rich Internet Application technology by Coté's People Over Process » Links for February 26th through March 1st http://blog.luttinger.com/2010/02/24/the-extended-enterprise-%e2%80%93-from-vision-to-reality-with-rich-internet-application-technology/#comment-198 Coté's People Over Process » Links for February 26th through March 1st Mon, 01 Mar 2010 23:24:48 +0000 http://blog.luttinger.com/?p=188#comment-198 [...] The Extended Enterprise – from vision to reality with Rich Internet Application technology [...] [...] The Extended Enterprise – from vision to reality with Rich Internet Application technology [...]

]]> Comment on More about Enterprise RIA in practice by The Extended Enterprise – from vision to reality with Rich Internet Application technology « Business Technology and People http://blog.luttinger.com/2009/07/24/more-about-enterprise-ria-in-practice/#comment-196 The Extended Enterprise – from vision to reality with Rich Internet Application technology « Business Technology and People Wed, 24 Feb 2010 13:08:02 +0000 http://avigdorluttinger.wordpress.com/?p=109#comment-196 [...] – I did not figure out yet what’s behind this, but the first RIA example that I described in “More about Enterprise RIA in practice” also originated in that [...] [...] – I did not figure out yet what’s behind this, but the first RIA example that I described in “More about Enterprise RIA in practice” also originated in that [...]

]]> Comment on Renewable energy and hydrogen – what’s bringing them together? by Cristina http://blog.luttinger.com/2010/02/04/renewable-energy-and-hydrogen-%e2%80%93-what%e2%80%99s-bringing-them-together/#comment-194 Cristina Mon, 08 Feb 2010 15:33:22 +0000 http://avigdorluttinger.wordpress.com/?p=169#comment-194 I think you hit the point with the mobility character of energy carriers. Hydrogen offers this advantage that in my opinion is just not being "sold" enough. Storage and Safety are two subjects that are very central, but that do not anymore pose the initial complications. The safety standards for example for hydrogen-powered vehicles are given and do not involve safety measures that are difficult to fulfill . The standards are "easy" to follow and guarantee the safety the users. Also concerning storage, the issue has been dealt with and provides as of today very clear guidelines on "how" to store hydrogen safely. The debate should concentrate more on production and on creating "the hydrogen value chain", one that is sustainible and one on which governments can rely to build the necessary infrastructure. Therefore I guess that in order to be serious about a hydrogen economy the production and its "unique selling proposition" (mobility as an energy carrier) are key to get to the next stage of implementation. I think you hit the point with the mobility character of energy carriers. Hydrogen offers this advantage that in my opinion is just not being “sold” enough. Storage and Safety are two subjects that are very central, but that do not anymore pose the initial complications. The safety standards for example for hydrogen-powered vehicles are given and do not involve safety measures that are difficult to fulfill . The standards are “easy” to follow and guarantee the safety the users. Also concerning storage, the issue has been dealt with and provides as of today very clear guidelines on “how” to store hydrogen safely. The debate should concentrate more on production and on creating “the hydrogen value chain”, one that is sustainible and one on which governments can rely to build the necessary infrastructure.
Therefore I guess that in order to be serious about a hydrogen economy the production and its “unique selling proposition” (mobility as an energy carrier) are key to get to the next stage of implementation.

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