redmonk

IBM closes lackluster M&A year with buying spree

IBM decided to close 2009 with a bang by acquiring Lombardi, a privately held provider of business process management (BPM) software. Big Blue racked up a number of acquisitions this year including: data discovery software firm Exeros, database security firm Guardium, security provider Ounce Labs, and analytics provider SPSS.

Lombardi marks IBM's 90th acquisition since 2003. That's a lot of companies to digest.

With Lombardi, IBM strengthens its presence in BPM by effectively capturing the customers it doesn't already have. IBM currently has more than 5,000 BPM customers in about 30 countries and growing.

According to Lombardi CEO Rod Favaron, the company has about 300 enterprise-level customers with a high percentage shared with IBM. Lombardi has a shockingly impressive customer list, including Allianz Group, Aflac, Barlays Global Investors, Dell, FETAC, Ford Motor, Hasbro, ING Direct, Intel, Maritz Travel, National, Bank of Canada, National Institute of Health, Safety-Kleen, T-Mobile, UCLH, and several governmental agencies.

It's generally been a quiet year for technology merger and acquisition deals with the 2009 value total for tech M&A activity reaching $142 billion, according to recent data from technology investment research firm The 451 Group. To provide context, the second quarter of 2008 alone saw $173 billion in tech M&A deals. The median deal size in 2009 was $40 million, contrasted with a median of $43 million in 2008 and $100 million in 2007.

From January to November 2009 there were only 31 technology transactions valued at $1 billion or more, and The 451 Group reports that all of the high-multiple deals took place in the second half of 2009, resulting in M&A spending running 50 percent higher than in the first two quarters. Notable deals include Dell's purchase of Perot Systems and Cisco Systems' pair of $3 billion acquisitions in October. … Read more

NoSQL and the future of cloud databases

One of the cloud-related trends that developers have been paying attention to lately is the idea of "NoSQL," a set of operational-data technologies based on nonrelational technology.

These technologies do not replace the relational database but rather add a new tool to the developer toolbox. Business intelligence database technologies such as Aster Data, Greenplum, Neteeza, and Vertica do not completely replace the traditional relational database but rather use nonrelational databases to augment the software.

RedMonk analyst Stephen O'Grady wrote recently that NoSQL "adoption was inevitable because, just as in every other walk of life, there are … Read more

Google privacy controls: Most people won't care

Google's biggest threat is no longer Microsoft. It is itself.

As the company harvests copious quantities of personal data, it becomes dramatically better at serving customer needs...

...and at freaking them out over privacy concerns.

In other words, Google gets stronger with every Google Doc created, every Google Voice call dialed, and every Gmail e-mail sent. It becomes stronger because data is the heart of the Web's biggest businesses, as Redmonk analyst Stephen O'Grady implies.

But in so doing Google also becomes more threatening to the very consumers it is trying to serve.

Google Dashboard is meant … Read more

Product management goes open source

One of the hardest parts about launching a new product is knowing what prospective customers want to buy. Sure, some companies like Apple can impose their product visions on the public, but most vendors need to fulfill pre-existing product requirements, not create new ones. For everyone but Apple open source offers a great way to perform product management.

When I was working on my juris doctorate, I signed up to be a guinea pig for Microsoft. (It's not as bad as it sounds.) The company would send people out to my house to observe me using my computer, and … Read more

Open source may be your only ticket out of the cloud

Enterprise IT sometimes behaves like the group of teenagers I counsel on a weekly basis as part of my church responsibilities: "Damn the future, let's live for the present!"

Stephen O'Grady offers a pungent critique of this nearsighted tendency in enterprise IT, especially as it pertains to the cloud:

Very much like Apple on the consumer level, (commercial cloud providers) Google et al demand sacrifices in return for convenience. Perhaps--or make that likely--realizing that businesses will invariably sacrifice the future at the altar of the present. We'll give you the convenience and time to market … Read more

Canonical survey: Ubuntu Server is mission-critical

Canonical, the commercial sponsor of Ubuntu Linux, and analyst firm RedMonk have released survey results that show usage patterns for the Ubuntu server product.

The survey, completed by nearly 7,000 respondents, shows that Ubuntu Server Edition is being used for most enterprise tasks, such as Web sites, files, databases, and mail servers, and is considered "mission-critical" by most respondents.

This is an interesting set of results, even if they are biased, considering that Ubuntu has largely been known for its desktop grace and focus on developing a better Linux user experience. But the enterprise is where all … Read more

Open source becomes paid software in 2009

One of the biggest misconceptions in software is that open source equals free. The early commercial open-source vendors like MySQL and JBoss were able to build decent businesses on top of a license/support-only business model, but over time we've seen that approach become difficult to grow beyond a certain threshold.

I suspect that in 2009 it will start becoming clearer as to what you pay for and why you should. Redmonk analyst Michael Cote made the prediction that next year "it will be cool to pay for software" and I agree. It's one thing to consume open-source software and quite another to pay for it.

Most open source vendors have tweaked their business models to include some kind of additional value only available as part of a subscription. This has brought various cries of derision suggesting that the code is no longer good as the community doesn't get to do QA, along with welcoming arms from investors and developers who want to monetize the code. … Read more

AT&T drops Java on mobile phones, Sun updates JavaFX to no avail

Just as Sun announced the latest rev of JavaFX, AT&T announced that they would drop Java-based phones, favoring Symbian.

Tom Krazit reported earlier today on the news, quoting Roger Smith, director of next-generation services at AT&T who said "Java has not been a success," Smith said. "It's not because Java is bad, but we didn't manage it effectively."

The basic premise of the argument against Java is that it became fragmented with every manufacturer using its own version and defeating much of the purpose of Java as a … Read more

Tech analysts embrace Twitter for instant gratification

In a new trend somewhere between direct customer contact and the public facing comments lies Twitter.

I'll start with the obvious joke that 140 characters, or roughly 2 sentences is typically the value that you get from analysts. However, my experience over the last year or so is that the analysts that I've worked with (both paid and unpaid) have been extremely helpful.

The Top 10 Analyst Twitter-ers via Technobabble: 1 Forrester - Jeremiah Owyang 2 Redmonk - James Governor 3 Message - Stowe Boyd 4 Hurwitz & Assoc. - Robin Bloor 5 Greenmonk - Tom Raftery 6 … Read more