
While many stories last month rest on whether or not Apple will bother with a netbook. Steve Jobs has said the iPhone does everything a netbook would do anyway and was reported as saying “We don’t know how to build a sub-$500 computer that is not a piece of junk”.
The issue with a netbook is that it should be cheaper than a small notebook computer, probably not have an optical disk, run on a lot less power, with a less powerful processing chip, most likely based on cellular style ARM cores, and it should stay connected to the internet over cellular broadband so that someone can use it for an entire day on a single battery charge. Some netbooks will have no disk storage (just using flash) so that the device is lighter and less power hungry, and some of them are little bigger than two handsets placed together or as large as a very small notebook computer.
This will trigger a trend for device makers to move beyond partnering with carrier brands, and actually launch their own virtual operators. This is not - as yet anyway - a way to sell the Dell smartphone designs that cellcos reportedly rejected, but a way to offer notebooks with bundled HSPA access and call plans. The first launch is reported to be in Japan, where Nokia has also launched an MVNO for its luxury handset brand, Vertu.
But if you are tied in for a long time to a network and there is a recession and the operator decides not to invest in its network, you can’t express your displeasure by leaving if you are on a long contract. If you have a contract with Nokia or Apple for a phone AND a network contract, you are in exactly the same boat, you can change neither and that’s likely to be true for some years.
This is why Experton Group believes regulators should do everything in their power to promote open networks. It shoves the arrangements for funding a device right back where they belong, on a consumer and they can choose to have it from the operator or can buy it outright or can acquire it (probably not in a recession) through lease or hire purchase.
Some executives are concerned about Oracle Corp.'s acquisition of Sun Microsystems Inc. and the potential impact that may have upon maintenance and support, continued software commitments from other vendors, and future SPARC hardware generations. A number of clients that have their mission-critical systems on Sun platforms have asked Experton Group to comment on the best approach to minimize risks.
Oracle CEO Larry Ellison claims that Oracle will keep the Sun server line and not sell it. But doubts persist. Many executives worry that Oracle will not invest sufficiently in the development of new SPARC technology or that the quality of server maintenance and support will degrade. Thus, many IT executives that rely on Sun servers for their business- or mission-critical systems feel exposed. Experton Group has spoken to a number of IT executives that feel they would like to switch platforms but are concerned about the support exposure that may occur during the transition to another vendor's servers.
The Strategy: We recommend that executives use this transitional period to gain a firm commitment of direction and support from Sun/Oracle or from potential replacement vendors. To do this, RFG suggests that IT executives develop an RFP that defines all the elements the enterprise demands from its mission-critical server supplier. The RFP should make clear that there will only be one winner of the bid. This should put all the vendors on notice that the enterprise is quite serious about the situation and intends to move forward with the vendor that best satisfies the enterprise's requirements. It is also important that Hewlett-Packard Co. and IBM Corp. also believe they have a strong chance of wooing the enterprise away from Sun. The current environment will help do that, but the belief must be reinforced by IT executives so that the vendors do not respond to the RFP with a boilerplate bid.
Experton Group believes enterprises using Sun servers for business- or mission-critical system need not feel trapped by the current planned changeover in ownership. In fact, it is better to push for changes now while key staff is still in place, than to wait for deterioration of support to occur. Oracle's and Sun's attitudes to the bid will be quite telling and can give executives advanced signals as to what they might expect later on as the acquisition is digested. IT executives should push the major server providers to demonstrate how they would satisfy the enterprises' mission-critical system requirements and transitional needs. However, IT executives should not utilize this approach unless they are serious about awarding the bid to whoever offers the best alternative.
Experton Group has found many IT managers in a dire situation regarding existing data center facilities, which have reached the end of their useful life years ahead of most companies’ strategic plans. This is a result of rapid advances in systems power densities, combined with the increased automation of business processes and storage demands. Together, these changes have drained data centers of necessary space, power, and cooling capacity three to five years ahead of the most conservative estimates.
No-cost actions:
Low-cost actions:
Medium-cost actions
While cooling, space, and power are at a premium in many of today’s data centers, several measures can extend the life and space of systems by up to two years. Often these actions cost little or no money. Aggressively assessing legacy applications can yield some of the biggest gains. Duplicate functions and processes no longer serving a business purpose should be eliminated, freeing up their power and space for new applications on more efficient systems. Small investments can help improve airflow in existing environments, with automatic energy management applications added to run systems at the lowest possible power settings. Incrementally redesigning portions of a data center allows managers to modernize existing facilities over time. While virtualizing all IT areas can maximize energy use, managers should be cautious given the relative newness of some of the technologies.
As companies pursue every angle to reduce costs and drive productivity, some executives are turning to innovative solutions to help achieve desired results. Innovation can come from anywhere or anyone and produce huge gains in productivity or revenues. But like any other successful program, innovation must be approached as a process. Clients have asked Experton Group for advice on innovation programs.
Innovation programs can be extremely successful. Studies have shown innovative enterprise offerings drive revenues and improve margins. In providing higher margins than traditional offerings, innovative solutions promote wealth creation. Moreover, new approaches to standard operations can significantly reduce operation costs. As always, the dollars saved go directly to the bottom line.
There is always room for improvement. Executives should encourage business partners, customers, and employees to participate as often as possible in the innovation program. Individuals should know no idea is dumb and that all ideas warrant consideration. It is also important for the steering committee and dedicated innovation team to be staffed with people open to creative thinking. Too many ideas are killed by the “not invented here” syndrome or by people resistant to change, especially in their own areas of expertise.
Experton Group believes all companies should welcome innovation and have programs in place to facilitate the flow of new ideas. Senior management should also ensure all levels of management are receptive to change and new concepts; bureaucracy and closed minds can prevent an organization from being agile, which can cost the enterprise customer loyalty, market share, and new business opportunities. Business and IT executives should create environments to encourage the development of new ideas and stimulate individuals to contribute innovative solutions to global opportunities and problems. Companies today are valued more for their creative assets than their book value, and making the most of an enterprise’s human assets only occurs if the environment is conducive to change and sensitive to ideas from all sectors. Finally a recommendation for making innovation happening is the use of an external innovation coach as the ignition for the ideas and the process. It also shows very quickly if the company is serious about it or if it is just one more topic for procrastination.
The next Summer University is getting closer. It is time to make your plans and reserve your slot.
Value:
The topics and recommendations can and will save your company millions and are an excellent pay-back for the time and money invested. All delegates will receive the PowerPoint material and some Excel sheet for their use in order to leverage the material directly in their day-to-day business. Bring your challenges with you and setup one-on-one sessions with our experts and you will receive direct value from those individual consultative sessions.
Top Level Speakers:
Our speakers have in average over 25 years of experience and were Vice Presidents or Senior Vice Presidents in companies like Gartner, Forrester, META, IDC, Microsoft, Sun, etc. or had Executive and CIO positions in large organizations. Speakers for the event are: Dr. Andreas Winklhofer, Dr. Kenn Walters, Dr. Friedrich Froeschl (ex-Siemens CIO), Dr. Hellmuth Broda, Werner Reil, Luis Praxmarer, Andreas Zilch, Christophe Toulemonde, Ash Pal, Carlo Velten, Fernando Fernandez, and several more.
Don’t forget to book your hotel room now as Munich is a very popular place in Summer time.
See the full details at www.experton-group.com/esu-09.html
Experton Group is the leading fully integrated research, advisory and consulting company for mid-sized and large organizations, maximizing the business value of their ICT investments through innovative, neutral and independent expert advice.
Experton Group offers consulting services, market surveys, conferences, seminars and publications related to information and communications technology issues.
Our consulting portfolio includes technology, business processes, management and business co operations, investments and mergers.