|By Jeremy Geelan||
|November 23, 2004 12:00 AM EST||
This exclusive interview with John A. Swainson was conducted by JDJ publisher Jeremy Geelan and originally published in the print edition of JDJ's May 2004 issue.
Jeremy Geelan: Let's start at 35,000 feet: What's been the main impact of IBM's "On Demand" vision on the Information Technology scene to date?
Swainson: Let's start by defining "on demand." First, on demand reflects what our customers are doing with their businesses - streamlining their business processes to make them more flexible and adaptive to new markets and opportunities. They use information technology as a tool to integrate these processes, so obviously IT is a critical enabler of on demand. In the case of IBM software, our focus has been on making sure customers can use our products - WebSphere, DB2, Lotus, Tivoli, and Rational - to establish what we call an on demand operating environment, which is a middleware infrastructure that gives our customers a way to build, integrate, and manage their new and existing applications.
Making it possible for people to do this required that we create a new, standards-based computing model. This model is based on the technical principles of a service-oriented architecture. It is delivered in our products, ones like WebSphere Business Integration, that customers can buy today. However, more and more, we are seeing customers starting to approach this from the business process angle, using our business consultants to define the business processes, and then tying the delivery of those processes to a set of technology models that help them achieve their goals.
Many customers have begun to realize the business benefits of on demand. Charles Schwab has implemented a WebSphere-based solution to allow their financial advisors to deliver portfolio analyses to their clients in near real time. By taking advantage of grid computing features in WebSphere, they have been able to make more efficient use of server resources and reduce the elapsed time to run these transactions from 8 - 10 minutes to just 15 seconds.
Jeremy Geelan: How favorably does it resonate with your customers, the fourfold typology of 21st century businesses as needing to be responsive, resilient, variable, and focused? Are there any further attributes that have emerged as being equally important?
Swainson: On demand resonates very well with customers because it maps to what businesses today are trying to do - find ways to be more flexible and responsive in order to stay competitive. It manifests itself in things like our WebSphere and Tivoli products, where systems become self-monitoring and self-healing, cutting down on system outages and enabling employees to spend more time on higher-level tasks. We're also seeing more interest in business process integration projects geared to specific industries.
Jeremy Geelan: How large do SOAs loom in IBM's vision for the future?
Swainson: IBM has been helping customers build service-oriented architectures for more than 10 years, because SOA is a design pattern, not a product per se. We have thousands of customers who have built these on WebSphere and MQ. Based on this experience, we have worked with the industry to define a set of standards and have codified successful implementations into a set of templates and guidelines for our services teams to use.
We have worked with thousands of customers on Web services and SOA engagements, and we lead the industry in every aspect of SOA, including products, standards, education, services, and experience. Our work includes standards created by the big market share of products like WebSphere MQ enterprise messaging, as well as more formal standards. IBM was a primary driver behind the Web Services Interoperability Organization, and we work with other vendors to introduce specifications for transactions, reliability, management, and grid computing. JSR109 is a recent example.
Jeremy Geelan: And grid computing - where does that fit in?
Swainson: Grid computing is another technical underpinning of an on demand environment. We've been helping our customers develop grids for years, primarily for scientific analysis. Now IBM is introducing technology that can be applied to commercial grid environments to make them easier and less expensive to implement.
Jeremy Geelan: In terms of the competitive landscape, since Gartner reported that 37% of all deployed application servers were WebLogic vs. IBM (at 22%), things have changed dramatically. What are the current statistics in terms of market share between you and BEA?
Swainson: Last year Gartner reported that IBM's share of the application server market rose to 37% in 2002 from 31% in 2001, making us the market leader. BEA dropped to second place, with market share declining 5 points, to 29%. Our goal was to become the market leader, and we think we're extending our lead.
Jeremy Geelan: When talking to your customers, what are the key integration drivers from their perspective, and how is IBM delivering on each of them?
Swainson: Integration is a must, but the integration priorities of customers are unique depending on the size of the business, the industry they compete in, the customer's long-term goals, and the customer's technology capability. There are a couple of key themes that rise to the top. Customers want to link different areas of their business with those of their clients and partners, and they want to leverage as much of their existing infrastructure as possible.
We help them get there with IBM's open, standards-based approach to integration, with WebSphere. We enable customers to automate the flow of information and process transactions to help them become more agile and responsive. We use horizontal end-to-end integration to leverage existing investments to increase business flexibility and efficiency and drive ROI. IBM can tailor integration solutions to best suit the needs and priorities of any customer, no matter the industry. IBM offers 63 industry-tailored software solutions spanning 12 industries. And every one of those 63 solutions is based on WebSphere.
Jeremy Geelan: How about the breakdown between large enterprises and SMBs - where does IBM see the most growth? What kind of things are you doing for the SMB space?
Swainson: The SMB marketplace represents a big opportunity for top line revenue growth for IBM. According to AMI-Partners, the overall market opportunity for SMBs last year was $300 billion, and it is the fastest-growing segment of the IT market - growing faster than the IT market as a whole. SMB is also the fastest-growing market segment for IBM. We just announced a strong start to this year with first quarter SMB growth at 15% year to year - thanks in large part to a partner ecosystem that delivers more than half of IBM's total SMB revenue. Local and regional ISVs represent a cornerstone of IBM's SMB strategy - more than half of all mid-sized customer IT investments are based on the application decision.
Also, while SMBs may not have the size, global reach, and revenues of larger organizations, they still have the desire to have a successful, profitable, and growing business. IBM's Express portfolio of middleware, hardware, services, and financing is a comprehensive suite of offerings built from the ground up for SMB customers and priced with their needs in mind.
Jeremy Geelan: Jonathan Schwartz went on record in JDJ as saying "middleware is history." Clearly that wasn't meant literally, but he was saying that end-to-end "systems" will supplant it as a focus. Is the IBM view that middleware, on the contrary, is just beginning?
Swainson: Saying that middleware is "history" is laughable. IBM has tens of thousands of customers who need and use middleware for transactions, data management, development tools, systems management, security, and collaboration in a heterogeneous systems environment. The WebSphere platform experienced 12% revenue growth in 2003 over the previous year. The WebSphere platform grew 24% in 1Q04, marking its twenty-second consecutive quarter of revenue growth
Jeremy Geelan: Scott McNealy once said "We're down to three - IBM, Microsoft, and Sun." Does the recent Microsoft-Sun pact change anything as far as IBM is concerned?
Swainson: Sun is a distant fourth or fifth in middleware market share, depending on which study you're looking at. We haven't heard much about what the deal really means for Sun, Microsoft, and the future of Java, but we haven't heard that Sun is backing away from Java either. I expect that Microsoft will continue to try to convince people to move from Java to their proprietary language environment, and I expect that Sun will continue to strongly support Java.
Jeremy Geelan: Some of IBM's moves in the Java space appear to be moving away from Sun - Eclipse tooling rather than NetBeans, SWT instead of Swing, and now a new virtual machine. From one perspective it looks like IBM is trying to break away from having any licensed Sun code in its product offerings. Is this the end game?
Swainson: IBM created Eclipse because there was no industry standard for building and integrating application development tools. We see Eclipse as very supportive of Java, and it has made a large contribution to Java's success in the marketplace - and with more than 18 million downloads, it is by far the most widely adopted Java development environment. Interestingly, it is also being broadly used in non-Java environments as well, with a great deal of activity in the community now to build C and C++ tools based on Eclipse.
SWT was developed because many of our customers demanded user experiences that the Java Swing code couldn't provide. The whole notion behind Swing is to have a consistent UI model across clients; SWT, on the other hand, allows people to build UIs that are deeply integrated with the look and feel of the host platform. So you can build Windows applications with that look and feel that fully integrate into the Windows desktop, and the same goes with Linux and pervasive platforms. Having said that, Swing is part of the Java standard, and IBM delivers more products using Swing technology than anyone else in the industry.
Jeremy Geelan: Scott McNealy told IBM to stop pushing him to open source Java until you do the same with DB2. If Java is not open sourced, how does this affect IBM's licenses with Sun in the future? How serious was the call to Sun to collaborate with you on an open source implementation of Java?
Swainson: We have been stating for years that we'd like Sun to make Java a true open standard, and we remain optimistic. IBM's long-standing support for open source is based on our conviction that openness creates new opportunities and spurs innovation. Open source also gives customers choice and helps them meet their IT needs more quickly and effectively. An open source Java platform would be good for the industry, good for customers, and good for Java.
Jeremy Geelan: What major product announcements is IBM likely to make this summer, or should we be waiting for the fall for the next big additions?
Swainson: Later this year we'll be announcing the next generation of WebSphere Application Server, Version 6. It will be the foundation for IBM's on demand operating environment and will advance IBM's leadership in things like grid and autonomic computing, security, systems management, application development, and SOAs. We'll also begin rolling out software that will closely integrate IBM's market-leading WebSphere MQ messaging software with high-level integration to form a single Enterprise Service Bus infrastructure.
All these products are part of IBM's effort to help customers compete more effectively in the marketplace. We will continue to help customers solve pain points, such as integrating far-flung silos of information across the enterprise and with trading partners. And we will continue to deliver on IBM's on demand vision through industry leadership in open standards, ongoing investment in research and software development, strategic acquisitions of companies like Rational and, more recently, Trigo and Candle, and our unmatched portfolio of software, hardware, services and financing. That's how we are making on demand a reality for our customers.
|Janelle Hill 11/23/04 05:26:14 PM EST|
You have a fact backwards. One place you say (webLogic BEA product) has 37% according to Gartner but IBMer says last year''s Gartner report put IBM at 37% (Websphere). Which was it last year? I think IBM had lead. Would like to know this year''s numbers.
|Elvisita''s Dad 11/23/04 05:25:44 PM EST|
Who Cares! IBM is the world''s leading "outsourcerer" and hence on my Sh*t list. Boycott them I say!
|Claudia 11/23/04 05:25:09 PM EST|
According to a recent Barron''s article, IBM''s software unit did not receive any bonuses as a result of their poor performance over the past year and only grew about 1%, primarily from growth in the Rational software division. Also who has a WSJ subscription can read the follwing article, very interesting: http://online.wsj.com/barrons/article/0,,SB107671594816229855-search,00 Extracts: "...IBM''s software execs were shut out of a portion of their 2003 bonuses because of lackluster sales growth. Smith Barney software analyst Tom Berquist, who tracks IBM''s software performance relative to the companies he covers, estimates that Big Blue''s software sales grew only 1% after accounting for foreign-exchange gains. And he agreed with us that the bulk of that came from IBM''s Rational software outfit, which it acquired in 2003..." "...Berquist points out that IBM reported that WebSphere, which competes directly with BEA Systems'' WebLogic software, was up 10% for the fourth quarter. But a closer look at the numbers, Berquist says, indicates little change from previous quarters wherever the two companies compete head-to-head.
"IBM in most cases bundles software with mainframe sales, [and thus] it is likely that most -- if not all -- of WebSphere''s growth is on the mainframe side," Berquist notes. ..."
Not to mention the fact that many sales and managers of the software division from IBM left...
|towatatalko 11/23/04 05:24:34 PM EST|
Few years back when IBM first started looking into Linux as the means of support for mainframes and later zSeries they picked four Linux developers: Red Hat, SuSE, Turbolinux, and believe it or not Caldera. Out of those Caldera was out and behind in development, so they were counted out. Turbo and SuSE were the strongest and delivered timely products for S/390, AS400, RS6000. But Turbo had to close its US operations and laid off its staff in South San Francisco in July 2001 and 2002. So, naturally only SuSE and RH remained. But RH was far behind in development of mainframe products as compared to SuSE and Turbo, simply put Red Hat was not even a player among mainframe community who were already well versed with SuSE and Turbo. In other words when Investing $50M in Novell/SUSE, IBM just naturally picked the best out there for their mainframes, that's all it is to it, they rewarded SuSE, because they got most consistent and best software development from them.
|barthrh2 11/23/04 05:23:46 PM EST|
In December 2000 IBM committed to invest $1Billion in Linux software, hardware, services, the open source community and partnerships during 2001. That's only 2001! If anything, they have only increase their rate of investment.
|slackr 11/23/04 05:23:03 PM EST|
IBM is huge. They retooled as a consulting company so they deliver "solutions" more than hardware, and that is why they've been big on Linux. Basically, there are a ton of little Linux consultants out there but for top-tier corporations you would only hire a company of large standing. IBM is really the only player in this type of (growing) Linux market (although Sun is moving in that direction, but my boss thinks that Big Blue will want to buy them out.)
|sofist 11/23/04 05:22:08 PM EST|
IBM is not stupid. They do not want to create another Microsoft. They are going to play on two horses, one being Red Hat and the other SUSE/Novell. This makes room for IBM to make A LOT of money by selling hardware. Don't worry, in five years, there will still be Red Hat *and* SUSE - both having around 30% of the market. IBM will make it so.
|jdifo88ol 11/23/04 05:21:29 PM EST|
None of the 5 mentions: how long until IBM buys out Novell?
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Oct. 2, 2014 10:15 AM EDT Reads: 3,188
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
Oct. 2, 2014 10:00 AM EDT Reads: 1,168
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Oct. 2, 2014 08:00 AM EDT Reads: 1,342
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Oct. 2, 2014 08:00 AM EDT Reads: 1,202
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Oct. 1, 2014 10:00 PM EDT Reads: 1,854
Whether you're a startup or a 100 year old enterprise, the Internet of Things offers a variety of new capabilities for your business. IoT style solutions can help you get closer your customers, launch new product lines and take over an industry. Some companies are dipping their toes in, but many have already taken the plunge, all while dramatic new capabilities continue to emerge. In his session at Internet of @ThingsExpo, Reid Carlberg, Senior Director, Developer Evangelism at salesforce.com, to discuss real-world use cases, patterns and opportunities you can harness today.
Oct. 1, 2014 08:30 PM EDT Reads: 2,231
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Oct. 1, 2014 05:00 PM EDT Reads: 2,422
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArcho...
Oct. 1, 2014 03:30 PM EDT Reads: 1,139
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
Sep. 30, 2014 10:30 AM EDT Reads: 1,618
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how thes...
Sep. 29, 2014 06:45 AM EDT Reads: 1,931
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
Sep. 28, 2014 09:45 AM EDT Reads: 1,577
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) ir...
Sep. 27, 2014 11:30 PM EDT Reads: 1,953
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn rea...
Sep. 27, 2014 10:30 PM EDT Reads: 1,863
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder ...
Sep. 27, 2014 10:30 PM EDT Reads: 2,324
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
Sep. 27, 2014 09:45 PM EDT Reads: 2,548
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
Sep. 27, 2014 08:45 PM EDT Reads: 2,434
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
Sep. 27, 2014 01:00 PM EDT Reads: 2,097
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice s...
Sep. 26, 2014 11:45 PM EDT Reads: 1,620
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
Sep. 26, 2014 10:45 PM EDT Reads: 1,537
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example...
Sep. 26, 2014 07:45 PM EDT Reads: 2,352