Enterprise Apps Future State

The Future State of Enterprise Applica5ons Bruce MacVarish April 2008

Innova5on Waves… solving Big Problems… crea5ng Big Opportuni5es Compu'ng Connec'ng Sensing ? 1980’s 1990’s 2000’s 2010’s Mainframe Computers Remote Access Relevance ‐ Aware Mid‐Range Data Routers / Switches Context ‐ Aware Personal Computers Communica'on Switches Social ‐ Aware ACDs Loca'on – Aware Gateways Analy'cs / Intelligent Filtering Mobile Presence / Availability Source: Ins8tute for the Future 2

Ripples of Consumer Innova5on are shaping User expecta5ons at the Enterprise Edge ENTERPRISE CONSUMER Mobile Sensing Analytics Content / Collaboration Collective Intelligence Security Flows / Streams Discovery Networking Computing Social Collaboration Cloud + Mobile Telephony IT Individual Business User / Consumer Secure, reliable computing and connecting Easy, Intuitive discovering, creating, sharing and sensing 3

Enterprise Applica5ons are not delivering enough End‐User value Business End‐User Enterprise Vendor Employee IT Vendor 1 Consumer End‐User Vendor 2 Consumer Vendor 3 Source: CTC, Google 4

The Enterprise Applica5ons Industry is in transi5on… As Enterprise 2.0 emerges sources of value, compe88ve advantage and architecture shiF 1990 2000 2010 Strategy Own the Stack Own a Layer and Be a Super-Node Orchestrate the Stack Value Hardware Dominance Software Dominance Stewardship of User Data Creation Closed, Proprietary HW Closed, Proprietary SW Power Laws and Network Effects Competitive Scale & Scope of Scale & Scope of Scale & Scope of Advantage Production Core Competency Social “Edge” Competencies Architecture Proprietary network Closed, Client-Server Open Data, Cloud-Premise Hybrid 5

… resul5ng in a rapidly evolving Enterprise SoOware Value Chain Architecture: Develop: Mone5ze: Distribute: Customer: Current Client‐Server Slow, Tight Pay‐to‐Own Direct Enterprise IT, State Coupling, Licensing Indirect Network Centralized Channels Administra8on Many startups treat the ‘raw’ Products must now At work, at home, in a hotel, at internet as their platform. Businesses are increasingly embrace a “discover, school or in a coffee shop, the Speed, simplicity and loose considering what internet learn, try, buy, networked appliance has become coupling are paramount. services-based economics of recommend” cycle – our ‘virtual office’ where we file our scale might do to help them sometimes with one of information and interact with others Products must deliver a reduce infrastructure costs or Developers needing tools and those phases being free, seamless experience, one deploy solutions as-needed and libraries to do their work just another ad-supported, in which all the technology on subscription basis. in your life ‘just works’ and search the internet, download, and yet another being subscription-based. The ubiquity of broadband and can work together, on your develop & integrate, deploy, wireless networking has changed behalf, under your control. refine the nature of how people interact, This means designs Subscription and Advertising and they’re increasingly drawn Enterprise products now centered on an intentional The ‘Net Native Service and models have emerged as a toward the simplicity of Net Native fusion of internet-based more often than not enter Software model impacts how significant new means by services and service-enabled services with software an organization through vendors and developers build, which to directly and software that ‘just works’. the internet-based deliver, and monetize indirectly fund the creation research and trial by a innovations. There is and delivery of software and business unit that tremendous revenue potential in services understands a product’s Computing has become linked to the those markets where it is value communications network applicable Architecture: Develop: Mone5ze: Distribute: Customer: Future Seamless Above any Free, Internet Seamless State Hybrid of one device Subscrip8on, Web‐as‐a‐PlaNorm Business unit SaaS, Cloud & Client‐ Loose Coupling, License, End User Server On‐Premise Open, Simple Adver8sing, Centric The emerging Future State for Enterprise SoOware is Cloud + Premise based and End‐User centric 6

… and new guiding principles for Value Crea5on & Market Advantage 1.  Steward hard‐to‐recreate end user driven data sources 2.  Focus on the End User and all else follows 3.  Oﬀer a Simple, User Centric Experience 4.  Simplify and Shorten User Decision Cycle 5.  Lower cost barriers to Adop8on 6.  Trust in End Users as Co‐Developers 7.  Harness the Power of End User’s Collec8ve Intelligence 8.  Embrace Viral and Social Network Eﬀects 9.  Develop Above the Level of any one Device 10. Use and Share Open, Lightweight Development tools 7

An Enterprise is the sum of User Transac5ons, Conversa5ons, Rela5onships For the last 10 years, enterprise soFware innova8on has primarily focused on organizing and op8mizing Transac5ons. Over the next 10 years, enterprise soFware innova8on will focus on organizing and op8mizing End‐User Conversa5ons and Rela5onships as well. Enterprise Interac8ons Interac8ons Source: Doc Searls 8

New Applica5ons will tap the “Flow” of Enterprise Transac5ons, Conversa5ons and Rela5onships Upstream Customer, Colleague and Partner Downstream Customer, Colleague and Partner Transac5ons, Conversa5ons and Rela5onships Transac5ons, Conversa5ons and Rela5onships Inbound Outbound Streams Streams Enterprise User Searching Storing Tagging / Sharing Pub / Sub Analyzing Sensing Individuals use “streams” to shape and focus daily ac8vity and work processes Teams use “streams” to improve collabora8on and knowledge management Communi8es use “streams” to build and leverage collec8ve intelligence Source: Stowe Boyd 9

The Future State of Enterprise Applica5ons is… •  On‐Demand / Hybrid •  End‐User Centric •  Social •  Device Agnos8c •  Flow Based •  Voice, Visual & Analy8cs Driven 10

Thank You Bruce MacVarish Director, Business User Group, UCS Avaya macvar@avaya.com 11

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Enterprise Apps Future State

by Bruce MacVarish on Dec 11, 2008

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