Friday, May 29, 2009

Google Wave for the Enterprise

Iein Valdez

Very exciting news from Google I/O over the last couple of days-- especially Wave, Google's vision for reinventing communication on the web. A lot has been written about the basics of Wave-- we like Mashable's summary and TechCrunch's analysis in particular -- but less has been written about Wave's implication for the enterprise. We thought we'd share some of our thoughts based on today's early look and our experience helping some of the largest companies in the world do more with Google technology.

Let's start with the obvious-- email (and collaboration in general) is far more of a problem in an enterprise than it is in people's personal lives. Filtering through hundreds of email messages every day has become an end in and of itself, instead of a means to getting real work done.

Gmail has been a much needed evolution in how we can do email at work-- features like threading, archiving, labels, instant search, and highly flexible rules and filters have already helped millions of workers get their jobs done faster.

Wave is the revolution-- changing the notion of what it means to communicate with colleagues and customers. By allowing a "wave" to morph from a traditional email to an IM to a wiki and back again as colleagues contribute to it, Wave will break down the silos of communication that define collaboration at work.

Perhaps most importantly, Wave is a platform. This is the most important part of yesterday's announcement for the enterprise. This will allow partners (including Appirio!), to turn Wave into a role-specific tool to get work done.

Imagine the following:
  • Project Waves: Bridge the gap between your under-used project wiki page and the day-to-day email and IM traffic among the project team. Get new project team members up to speed quickly by having them "playback" the critical waves in the project workspace.
  • Sales Waves: Collaborate on deals in an environment rich with context from your CRM system, embedded as gadgets within the wave. Turn everyone in your company into a member of a virtual account team that contributes ideas on how to do more business with your most important accounts.
  • Support Waves: Stop endless loops of customer support email. Engage your customers in a wave that evolves as their needs change. Resolve their issue faster, and create reusable waves for customers with similar problems.

Exciting days ahead for changing how work gets done in the enterprise-- especially when Wave is combined with a powerful back-end application platform like Force.com. We're excited to start playing with this exciting technology, and will keep you updated as we learn more. Leave a comment if you'd like to start a conversation about how to use Wave in your enterprise!

Monday, May 11, 2009

Do your most strategic apps belong in the cloud?

Balakrishna Narasimhan

I've been in a number of conversations over the past few weeks where I've been asked which business processes or apps belong in the cloud.  There are obviously some technical considerations, but I'd like to focus on the strategic reasons for making the decision and how things have changed in the shift from traditional IT architectures to IT in the cloud.

Traditional IT department
In the past, the only way for a company to maintain control of their business process was to completely own the technology supporting the process.  The rationale was that a company's most strategic, differentiating processes are unique and therefore have to built by the company either from scratch or by heavily customizing packaged applications.  This also meant owning the entire technology stack supporting the process and the application.  So, while the intent was to create differentiated processes that were agile and differentiating, the reality has become that the technology stack is an albatross around the IT team's neck that prevents them from moving as quickly and as efficiently as they would like to.

The result is that while IT organizations are keen to support the business, they are unable to go much beyond providing basic services.  The solution to the problem of managing the entire stack was traditionally either hosted/managed server services or outsourcing, but each introduces its own problems.

Outsourcing
In the case of outsourcing, the enterprise gains cost savings but relinquishes control of their business process and has to adhere to the provider's "best-practice" process.  This clearly means that outsourcing can only be applied to commodity processes rather than any differentiating processes or processes where innovation is needed.  The IT team's role shifts to primarily vendor management with little ability to innovate or drive the business.

Hosted/Managed Servers
Hosting gets a bit closer to solving the problem because it reduces some of the IT team's pain in terms of managing infrastructure.  However, the IT team still needs to spend a lot of their time maintaining the application and the middleware stack, i.e., applying patches and bug fixes, implementing upgrades, maintaining integrations, etc.  In addition, the team also needs to manage their relationship with the hosting vendor.  So, again, the main impact is some cost savings but no real gains in terms of agility or ability to innovate or support the business.

IT department in the cloud
Cloud computing changes the decision process completely.  No longer do companies face a choice between relinquishing all control of their business process for cost savings or dealing with the high costs and complexity of supporting an entire software stack.

Platforms like Force.com and Google App Engine give companies a way to control the parts of the stack that matter most, the application and business process layer and abstract away the management of the infrastructure.  This means that the IT team can focus their energies on driving innovation and supporting the business.

A real-life example
In a past life, I was a partner at a major management consulting firm.  Since our business was our people, we believed strongly that our most critical processes were those that were related to managing our people, e.g., recruiting, employee performance management, compensation, project management, project staffing, etc.  The technology supporting many of these processes is available from outsourcers but we couldn't even consider those offerings because our processes were absolutely unique and core to our business.  The result was the that we spent significant amounts of money maintaining a brittle IT infrastructure that was great at running the business in a static state, but was difficult to adapt as we changed our business model, made acquisitions or entered new markets.

Fast forward to today at Appirio.  We run our entire business in the cloud.  A core part of our business is delivering professional services to our 150+ enterprise customers (and products to over 2500 companies).  We manage all aspects of our professional services business in a custom application running on Salesforce's Force.com platform.  The application is completely customized to our unique processes but runs in the cloud.  Therefore, we can quickly adapt the application as new needs arise and not worry about maintaining servers or managing infrastructure.  With no intervention from us on the infrastructure side, the application has supported our four-fold growth over the past year.  In addition, as we make changes to our internal organization structure or introduce new products or service offerings, we can make changes almost instantly.  Our IT costs less than a third of industry benchmarks AND we can run a better, more agile business.

That's why we believe that over time, companies should move not only their non-core processes but also their most strategic processes to the cloud!