DT Success Is… Elusive
Dec21

DT Success Is… Elusive

Everybody needs it. Most everybody is trying to achieve it. And the majority of those who try fail to realize its benefits. It is digital transformation — AKA DT, DX or Industry 4.0 — the multi-trillion-dollar business phenomenon enabled by cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security that is reshaping everything for the foreseeable future. Succeeding at DT is the next new normal, and the stakes are literally life and death, i.e. a 33% increase in speed to market; 40% increase in customer satisfaction; and 37% increase in new business revenue. On average, companies going digital expect to increase annual revenues by 2.9% and reduce costs by 3.6%, but businesses going all-in can achieve both revenue gains and cost reduction of more than 30% at the same time. So DT is an extinction-level phenomenom that is transforming all aspects of our lives, and while the stakes are high, the risks — and failure rates — are higher. The failure rates for unsuccessful digital transformation projects range from a low of only 70% to as high as 84%. The biggest DT barrier is cultural resistance to change, followed by legacy IT systems and retaining critical talent, respectively. “One of the things that our research and expertise consistently show is that shifting people and how they need to operate differently are where some of the big challenges are coming from, as more and more companies try to digitally transform,” said IDC’s Shawn Fitzgerald, research director, worldwide digital transformation strategies. Positioned as a Leader in IDC’s Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment, Accenture is also grappling with DT internally, as its more than 400,000 professionals visit more than 10,000 customer sites daily, said CIO Andrew Wilson. He told IT Trends & Analysis that organizations need to transform from old techniques and waterfall philosophies to much more horizontal processes and experiences. “You have to be much more real-time.” The service provider practices what it preaches, focusing on the new skills and training required to enable an increasingly mobile and dispersed workforce to make the most effective use of the latest technologies. Wilson said his company is working to connect employees through social collaboration tools like The Stream, Accenture’s version of Facebook, that enables employees to stay connected with colleagues and communities, post updates and share knowledge anywhere. It also uses video communications, including the CIO’s monthly talk show for employees that features interviews with executives from Accenture and alliance partners. A key component of the SP’s DT-delivery capabilities is called Accenture Digital — consisting of Accenture Analytics, Accenture Interactive...

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CA Wants To Be The One (DevSecOps) Throat To Choke
Nov30

CA Wants To Be The One (DevSecOps) Throat To Choke

Whether it’s via a perfect storm, product onslaught or the ‘disrupt or be disrupted’ times, CA Technologies appears to be making steady, if slow, progress from its mainframe roots to the app-fueled digital transformation world where trust, AKA cybersecurity, is essential. Changing a $4-billion company is proving challenging, especially when you consider that the bulk of your business is tied up with a mainframe environment synonymous with slow and steady, as befits the platform that holds between 70-80% of corporate data and affects 70% of enterprise transactions. The software developer may be pushing the ‘software factory’ theme together with fast and agile DevOps, or the newer handle, DevSecOps, but that doesn’t mean it’s customers are comfortable with rapid changes. Not that they have much choice: only 12% of the Fortune 500 survived the period between 1955 and 2016, and up to 50% of the S&P 500 ranks are expected to be replaced over the next 10 years. So disruption is the name of the game, and CA is doing its best to change its spots and become the essential go-to partner for fast and agile DevSecOps where ‘everyone is responsible for security with the goal of safely distributing security decisions at speed and scale to those who hold the highest level of context without sacrificing the safety required.’ That’s a mouthful, but the stakes are mind-boggling, with the potential to take CA’s total addressable market from mainframe billions to DT/DevSecOps trillions. “The ability to manage change, respond to new inputs or insights and pivot has never been more important,” said CA Technologies CEO Mike Gregoire in his opening keynote . “Our entire portfolio is designed around the pillars of the Modern Software Factory to increase the velocity, security and performance of the solutions and the apps that are critical to our customers’ businesses.” He said the company is on a “deliberate journey”, balancing creation and execution and morphing from a solutions company to one that is focused on “accelerating business values.” Operational efficiency isn’t enough, Gregoire added. “First among the tools to confront these challenges is your Modern Software Factory. It ensures that your company is built to change and can adapt to an accelerating digital world.” We may be app-driven, but without security, you’re looking at a world of pain. With DevOps, CA helped break down the barriers between development and operations but “we don’t think about security,” said Gregoire in a media scrum following his keynote. The application is the weakest link in your chain, he said, so you need security involved right from the start, with the coder. However, rather than best-of-breed standalone tools, customers are...

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CA: Connecting the DoTs

To help address the emerging multi-trillion-dollar app-driven digital transformation business phenomenon, CA Technologies made more than 20 new and enhanced product announcements at CA World ‘17. That might seem like a lot, but not when you consider that even after decades of consolidating and rationalizing its software portfolio, the ISV still lists 192 separate products on its website (courtesy of the approximately 70 companies acquired since opening its doors as Computer Associates back in 1976). While its efforts to expand the non-mainframe portion of its business — 65% of total revenues last quarter — seem to be taking longer than expected, CA’s emphasis on four pillars, or what Ayman Sayed, President & Chief Product Officer, called patterns — 1-making the products simpler to use and driving faster time to value; 2-SaaS availability; 3-openness, i.e. any infrastructure, any platform; and 4-AI — figured prominently in the innovation onslaught. Innovation was repeated often in the keynotes and one-on-ones. ”Most everyone in our industry is operationally efficient… but that’s not enough,” said CA CEO Mike Gregoire. “Our job is to break down barriers between technology and innovation,” referring to the event’s ‘No Barriers’ theme. Whether it’s built internally or bought, the company’s promise “and the holy grail” is to take innovation, integrate it with its other offerings and make it a “force multiplier”, he said. The innovations were intended to help address some of the impacts customers are confronting, he said. There has been a shift from building products to providing and supporting business outcomes. Customers are also demanding more intelligence, and security is becoming a bigger concern and a challenge, he added. Customers were another focus for CA, and as important as the announcements were, the “most exciting” news were the “170 customers joining us to talk about using our products to transform themselves,” said Sayed. Then he talked about the products, including the company’s latest artificial intelligence initiatives. CA combined the up and coming technology with its mainframe roots with solutions that ‘help customers speed time to resolution by 5X, reduce insider threats and cut operational expenses by 25%.’ “Through A.I. and machine-learning powered intelligent automation, CA’s new mainframe solutions enable increased insights across broader sets of data,” said CA’s Ashok Reddy, GM, Mainframe, in a prepared statement. It’s not a new concept or term, but as part of its security focus CA is pushing the concept of DevSecOps. In announcing new tools that integrate security throughout the software development lifecycle, Sayed said this approach is “critically important”, and the tools are now available across the company’s Automic, Veracode, and Continuous Delivery portfolios. “Companies that embrace DevSecOps deliver better and...

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CA’s Perfect Storm (But For How Long?)
Nov16

CA’s Perfect Storm (But For How Long?)

LAS VEGAS:  This would appear to be the perfect time for CA Technologies, which has gathered its key customers and partners here for CA World ‘17. A growing data deluge, a sweeping digital transformation revolution, a heightening focus on security, and the exploding need for constantly evolving apps are all driving this perfect storm at which CA should be at the epicenter. However, neither a perfect storm, nor an epicenter can be weathered without severe risks, and based on the software giant’s most recent financial results CA’s success is still problematic. On October 25 the company reported FY18 Q2 revenue of $1.034 billion, and while that was up 2% year over year, net income was down 13% and bookings were down 1%. The outlook for the remainder of the fiscal year is approximately 5% increase in revenue to between $4.22-$4.25 billion, and a 5%-8% decrease in earnings per share. While painting an optimistic picture — highlighting the SaaS business growth, total new sales, Enterprise Solutions new sales, and Mainframe new sales “all outperformed the year-over-year decline in the renewal portfolio” — during the analysts’ call following the earnings report, CEO Mike Gregoire also noted “disappointing” sales execution in Q2. “In particular, velocity in sales outside of the renewal cycle of Enterprise Solutions products was short of our expectations.’ Overall, Gregoire said the company was well-positioned for the future. “We are well positioned in great markets, and our solutions are solving real problems for our customers.” CA sees itself as the toolmaker for the DT generation, pushing its modern software factory philosophy. Digital transformation should be an ISV’s dream market: spending on DT technologies will exceed more than $1.2 trillion this year, and continue to grow at almost 18% per year to $2 trillion by 2020, almost 20X the anemic growth forecast for the overall IT market. At last year’s event the company trotted out the its Built To Change paradigm, and reinforced it with the ‘Built to Change Summit’ in June. This week’s theme, No Barriers, is all about marrying CA’s own transformation experience with its products, services and expertise, to help its customers overcome the barriers embodied by DT, as Gregoire stated in his keynote yesterday. “The focus today is on innovating the next big shift for your company,” he said. “That is the number one priority we are focused on – providing you with solutions that will remove the barriers between your ideas and outcomes.” CA is helping a lot of companies to change, and Gregoire called out a few, including FedEx, Netflix and Citi, as well as telling the audience that they will be instrumental in...

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VMware’s Intention to Acquire VeloCloud…

The announcement of VMware’s intention to acquire VeloCloud signals the broadening of the NSX Everywhere story. SD-WAN is a solution that offers agility, security, orchestration, and other business outcomes for remote and branch offices. It should not be considered just an MPLS replacement for the WAN with savings on bandwidth costs. At a core level, both NSX and VeloCloud’s products are based on an overlay network, which offers the flexibility to treat a logical network separately from the physical network, and this core concept has been popularized for many years via MPLS. Ironically, it’s the perceived lack of flexibility and costs of MPLS that have become the initial drivers for the popularization of SD-WAN, which promised to modernize the branch networks and WAN. VMware’s NSX Everywhere plan is similar to Cisco’s ACI Anywhere plan since it enables the core data center networks to reach out into other locations such as a public cloud. To read the complete article, CLICK...

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