1 / 32

Enterprise Software

Enterprise Software. Past , Present, Future? Some Personal Musings. Who The Hell Am I?. 1970-1980 Lecturer in CS Dept - Edinburgh Operating Systems, Compilers, Communications 1980-1984 BNOC -> Britoil - Glasgow Infrastructure architect (off-shore and on-shore)

spike
Download Presentation

Enterprise Software

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Enterprise Software Past, Present, Future? Some Personal Musings

  2. Who The Hell Am I? • 1970-1980 Lecturer in CS Dept - Edinburgh • Operating Systems, Compilers, Communications • 1980-1984 BNOC -> Britoil - Glasgow • Infrastructure architect (off-shore and on-shore) • 1984-2001 Soft-Switch -> Lotus -> IBM • Soft-Switch (Clydebank & Philadelphia, PA) • Founded Soft-Switch UK (1984-1986) • 2nd level development management (1986-1988) • Chief Architect -> Chief scientist (1988-1993) • Lotus/IBM (Cambridge, MA) • Chief Messaging Architect (1993-1998) • Chief Technology Officer (1998-2001) • Lotus Fellow (1 of 4) / IBM Fellow (1 of 151)

  3. The Source of my Musings Recently (2003-2004), I was the CTO of an Enterprise Software company – Entigo. Entigo was a dot.bomb survivor, that after $40,000,000 had been blown on catalog & order offerings, successfully re-cast itself as the vendor of “Warranty Chain Management Software”. Despite excellent lead customers, sales hit a wall. The company continues to limp along. Entigo is not alone!

  4. What is Enterprise Software?

  5. What is Enterprise Software? • Software employed to run an enterprise • Directly • Accounting, ERP, CRM, Supply chain, Service, HR, … • Indirectly (support the above) • OS, DB, EIA, Web app. server, IDEs, …

  6. How Is Enterprise Software Acquired? • It isn’t! • Do nothing • Continue with current systems/processes • It is custom built. • by in-house IT or under contract • Requirements -> Specifications -> … • As a product. • A Commercial Of The Shelf (COTS) offering • Alignment will be required! • Align the software with current business processes. • Align new business processes with best practice.

  7. How is COTS Enterprise Software Sold? • By a direct sales force • Bundled with hardware • For an up-front license fee with annual renewals • For a recurring fee • Through an indirect channel • Bundled with hardware • For a recurring fee • Through telemarketing • For a recurring fee

  8. Enterprise Software The Far Distant Past 1950 – 1970

  9. What Computers Replaced

  10. Enterprise Data – Sources & Sinks • Punched Cards & Cheques • Punches, Sorters, Collators, Readers, Tabulators • Required Re-keying (paper->cards, cheques) • Magnetic Tape • Sequential Read & Write

  11. Enterprise Software Landscape • Large mainframes – largely leased. • Software bundled with hardware. • Operating Systems, Assemblers, Compilers • Batch processing the norm. • Initially manual, and then OS (JCL) scheduled. • Enterprise software? • Primarily developed in house. • A few COTS offerings • Sort/Merge utilities. • Payroll packages.

  12. Enterprise Software The Distant Past 1971 – 1985

  13. Enterprise Data – Sources & Sinks • Cards, Cheques, and Tapes • Green Screen Input • Command lines, Forms, Function keys • Magnetic Discs • Random Block Level Read & Write

  14. Enterprise Software Landscape • Larger mainframes and mini-computers • Software was separately purchased/leased. • From hardware manufacturer & independents. • Online access & processing became the norm. • Enterprise software • The majority still developed in-house. • More COTS software (beyond OS, etc.) employed • Data Management Systems • ISAM -> CODASYL -> Relational & 4GL • Application packages (financial, utilities, etc.).

  15. Enterprise Software The Intermediate Past 1986 – 1997

  16. Enterprise Data – Sources & Sinks • Cheques, Green Screens, PC based clients • Magnetic Discs • 70% per year compound growth in storage density • Tapes (for backup only) • Inter-enterprise (B2B) data (EDI) • PC documents (files)

  17. Enterprise Software Landscape • PC use explodes • Hardware & software start to be decoupled • The rise of Microsoft • Personal productivity software is developed • Word processors, Spreadsheets, Presentation Graphics, … • LANs become widely deployed • Client/Server architectures are promulgated • Utilize Rich UIs and cycles close to the user • Version control become a nightmare

  18. Enterprise Software The Recent Past 1998 – 2001

  19. Enterprise Data – Sources & Sinks • Cheques • PC (thick) clients & Browser (thin) clients • Shared Magnetic Discs • SAN – Storage Attached Network (Block Mode) • NAS – Network Attached Storage (File System) • Mirroring, SNAPing, and Tapes (for backup) • 120% per year compound growth in storage density • B2B data & commerce • B2C communication & commerce

  20. The Internet Explodes • PCs and modems provide consumer access • Relatively cheap PCs • Flat rate access tariffs (originally in US, then spread) • World Wide Web & Browsers • B2C becomes possible • Communication & commerce • B2B • Becomes much more frictionless • Expands to encompass smaller businesses

  21. Year 2000 • A once in a millennium (lifetime) event • Constituted a massive forcing function

  22. Not an option Limited option The Enterprise Software World Changes • Do nothing • Continue with current systems/processes • Custom Build • Requirements -> Specifications -> … • COTS product. • Alignment will be required! • Align the software with current business processes. • Align new business processes with best practice. • From who?

  23. Purchase From Who? • No over-arching offering • Some area only addressed by quite new vendors. • Financials plus (ERP) • SAP, … • Supply Chain (SCM) • E2, Ariba, Manugistics, … • Customer Relationship & Sales Force Automation (CRM) • Seibel, … • Human resources (HR) • PeopleSoft, … • Required huge amounts of customization & integration.

  24. Integration – Where, When, & How? • Between systems/applications • ETL & EAI tools • Data archeology & anthropology • Via common data • The growth of 2nd & 3rd party system integrators • Professional Services, IBM Global Service, Accenture, … • The growth of IT Outsourcing • Transfer IT staff & equipment to a 3rd party • Transform “fixed” into “variable” costs

  25. Enterprise Software The Present 2002 – 200x

  26. Enterprise Data – Sources & Sinks • Cheques become electronic images • Otherwise stasis except for data volumes • 120% per year compound growth in density

  27. Enterprise Software Landscape • The industry hits a wall • Hardware & software massively over-sold over the preceding period. • New software license revenue drops to near zero. • Enterprise software purchasers object to the prevailing business model. • High initial license fee. • Significant annual renewal (previously maintenance) fee. • High customization and integration costs. • IT departments & vendors start to move off-shore • 70% reduction in loaded costs & high quality.

  28. Enterprise Software The Future 200x – ????

  29. New License Revenue is Way Down. Tuesday, November 9, 2004 The Tech Recovery appears to be losing steam, with the growth in corporate spending slowing. Companies are squeezing more out of what they have on hand, buying cheaper technology and refusing to pay big upfront fees. The shift is holding back a major driver of growth in the broader economy.

  30. Enterprise Data – Sources & Sinks • Stasis except for data volumes

  31. Enterprise Software Landscape • What will the future require? • The huge up-front license fee is largely dead. • Yields revenue smoothing. • Poses much larger capital demands. • Requires acceptance of “out of the box” functionality. • Pay for what you eat as you eat it. • Off-shore software development • India today • China tomorrow

  32. Questions?

More Related