Q2 2010

D a v e A b r a h a mFo u n d e r a n d C E OS i g n i f y

L a u r a D i D i oP r i n c i p a l A n a l y s tI n f o r m a t i o n Te c h n o l o g y I n t e l l i g e n c e C o r p

M a r t i n K u p p i n g e rSenior Par tner and FounderKuppinger Cole

B i l l M o r a nPrincipal AnalystPtak Noel & A ssociates

C o r e y N a c h r e i n e rSenior Securit y AnalystWatchGuard

| THE INDEPENDENT RESOURCE FOR IT EXECUTIVES

P r i n c i p a l A n a l y s t

D a v e A b r a h a mD a v e A b r a h a mFo u n d e r a n d C E OFo u n d e r a n d C E OS i g n i f yS i g n i f y

L a u r a D i D i oL a u r a D i D i oP r i n c i p a l A n a l y s tP r i n c i p a l A n a l y s tL a u r a D i D i oP r i n c i p a l A n a l y s t

D a v e A b r a h a mD a v e A b r a h a mD a v e A b r a h a m

BI in a

virtual

world

Plus, security: What you need to

know

ETM ■ CONTENTS PAGE

4

7 Editor and contributors page

8 Industry snapshot and � e ETM community

9 Professional pro� le

82 Events and features

10 A new breed of players

CLAUDIA IMHOFF (INTELLIGENT SOLUTIONS) moderates a panel discussion on a range of business intelligence topics with the help of SANDY STEIER (1010DATA), ELISSA FINK (TABLEAU SOFTWARE), DAVE SCH� DER (TE� DATA), and RICHARD NIESET (KICKFIRE).

22 Secure and social

SAM MASIELLO (MCAFEE), talks to ETM’S ALI KLAVER about the changing threat landscape and how it applies to organizations and

social media, now and in the future.

26 Identity for the cloud— What do we really need?

MARTIN KUPPINGER (KUPPINGER COLE) sees the evolution of identity and access management as the key to avoiding security and management risks—but it has to be recognized as integral to all parts of the business, not just the cloud.

28 Search—What’s in it for you?

� e search and content processing sector is in transition, making for both an exciting and challenging time. STEPHEN E. ARNOLD (ARNOLDIT.COM), author of the � rst three editions of the Enterprise Search report, seeks answers from � M� N KHAN (SEARCH TECHNOLOGIES), PAUL DOSCHER (EXALEAD), MARC KRELLENSTEIN (LUCID IMAGINATION) and JASON HUNTER (MARK LOGIC).

40 � e heat is on

LAU� DIDIO (ITIC) talks about the partnerships, and divisions, between the two sets of players in the current virtual desktop infrastructure market—Citrix/Microso� and VMware/EMC.

Contents

CONTENTS PAGE ■ ETM

5

Contents

44 BPM—Changing how you do business

Process management is changing, and business process management itself is changing how enterprises do business. DANA GARDNER (INTE� RBOR SOLUTIONS) leads a panel discussion on current and future trends, joined by MALCOLM ROSS (APPIAN), OLIVIA TRILLES (AU� PORTAL) and CHRIS HO� K (SAP).

52 Authenticating the cloud

While much has been discussed about the security of applications and data in the cloud, there’s a blind spot when it comes to authentication. DAVE AB� HAM (SIGNIFY) helps to shed light on the issue.

54 Immediate results

Remain So� ware is focused on successful change management. WIM JONGMAN and MARCO KOK talk to ETM’S ALI KLAVER about how they’re helping businesses succeed with the help of H. UTKU ALATAS (ISBANK).

58 Join the conversation

How can today’s new tools and techniques provide business value to enterprise organizations? MA� HEW LEES (PATRICIA SEYBOLD GROUP) gets the expert opinion of CHRISTOPHER LAMB (IBM), MA� TUCKER ( JIVE) and CARLOS DIAZ (BLUEKIWI SOFTWARE) on the mindsets both organizations and individuals should have in order to get the most out of their social technology investments.

66 IBM’s POWER7 in review

In February, IBM announced its latest microprocessor, POWER7, along with changes to the latest version of AIX which supports the advanced features of POWER7. BILL MO� N (PTAK NOEL & ASSOCIATES) discusses chip properties and compares its performance to the older POWER6 while examining the competitive implications of the new systems.

70 No time? No sta� ? Problem solved!

How do you � nd the perfect PCI and compliance solution for your company that works every single time? MIKE WALDER (SECURE TECHNOLOGY HAWAII) talks to ETM’S ALI KLAVER about why they chose AirTight, and why it’s been so successful.

74 Back on track

Now that the economy is slowly recovering, businesses are beginning to look at cloud computing with renewed interest—and NaviSite is ready to meet demand. ETM’S ALI KLAVER talks to CLAUDINE BIANCHI and DENIS MARTIN about their solutions, including application management, and where they see the market going.

78 Securing the future

COREY NACHREINER (WATCHGUARD) predicts the most important threats to IT security this year.

7

EDITOR’S PAGE ■ ETM CONTRIBUTORS

C o n t r i b u t o r s D a v e A b r a h a m

Fo u n d e r a n d C E OS i g n i f y

L a u r a D i D i oP r i n c i p a l A n a l y s t

I n f o r m a t i o n Te c h n o l o g y I n t e l l i g e n c e C o r p ( I T I C )

M a r t i n K u p p i n g e rSenior Par tner and Founder

Kuppinger Cole

B i l l M o r a nPrincipal Analyst

Ptak Noel & A ssociates

C o r e y N a c h r e i n e rSenior Security Analyst

WatchGuard

HeadquartersInformed Market Intelligence (IMI) Ltd

Farringdon House, 105-107 Farringdon RoadLondon, EC1R 3BU ,United Kingdom

+44 207 148 4444

New York68 Jay Street, Suite #201, Brooklyn, NY 11201, USA

+1 718 710 4876

BI in a virtual worldIn the last few months I’ve noticed a quiet explosion in discussions involving virtualization and the cloud. Admittedly, after the economic lag, a lot of companies put developments in virtualization on hold, but with this new surge of interest I like to think that this heralds a new stage of growth for companies globally.

This issue of ETM in particular deals with some of the most up-to-date trends in virtualization and the cloud, including a fantastic piece by Martin Kuppinger on “Identity for the cloud—What do we really need?” (page 26). Plus, Laura DiDio (ITIC) talks about the main players in virtual desktop infrastructure today (page 40), as well as featuring on our profile page for this issue.

We’ve also introduced a special new section on www.globaletm.com around enterprise search with the help of Stephen Arnold (ArnoldIT). He moderates a dynamic panel podcast featuring Exalead, Search Technologies, Mark Logic and Lucid Imagination. You’ll find the transcript on page 28.

Operational intelligence is running hot at the moment so we’re featuring two additional panel podcasts, one on business intelligence (page 10, moderated by Claudia Imhoff from Intelligent Solutions), and another on business process management (page 44) with Dana Gardner (Interarbor Solutions).

There are also quite a few opinions on security this issue, including a piece on the top 10 security threats of 2010 by Corey Nachreiner from WatchGuard (page 78).

I hope that we’ve provided some handy updates and essential solutions for your virtualization, security and BI needs this issue.

Thank you for reading, and if you would like to contribute to any future issues of ETM, please feel free to contact us at www.globaletm.com or via email at editor@enterpriseimi.com

Ali KlaverManaging Editor

Fo u n d e r / P u b l i s h e rA m i r N i k a e i n

M a n a g i n g E d i t o rA l i K l a v e r

A r t D i r e c t o rA r i e l L i u

A s s o c i a t e D e s i g n e rM i c h a e l C h a n

He a d o f D i g i t a lA l f o n s o M u n o z

Po d c a s t / S o u n d E d i t o rM a r k K e n d r i c k

A s s o c i a t e E d i t o r sM a r y Wr i g h t

A c c o u n t E x e c u t i v e s J o e M i r a n d a

S a n d i n o S u r e s hA i c h a G u l t e k i n

No r t h A m e r i c a n A c c o u n t E x e c u t i v e sFa r r a h Tu t t l eYe s s i t A r o c h o

M a r k e t i n g E x e c u t i v eA l e x T h e m i s t o s

Enterprise Technology Management is published by Informed Market Intelligence

How to contact the editorWe welcome your letters, questions, comments, complaints, and compliments. Please send them to Informed Market Intelligence, marked to the Editor,Farringdon House, 105-107 Farringdon Road, London, EC1R 3BU, United Kingdom or email editor@enterpriseimi.comPR submissionsAll submissions for editorial consideration should be emailed to editor@enterpriseimi.comReprintsFor reprints of articles published in ETM magazine, contact sales@enterpriseimi.comAll material copyright Informed Market IntelligenceThis publication may not be reproduced or transmitted in any form in whole or part without the written express consent of the publisher.

8

ETM ■ INDUSTRY NEWS

Nokia goes open source

Industry snapshot

Styled as a rival to the iPhone and Google’s Android operating system, Nokia’s N8 phone is the � rst handset to use the Symbian operating system since it became open source. � e N8 has a 12 megapixel camera and allows people to record and edit HD video clips, as well as watch web TV services.

April saw Google pull its search service out of China a� er disagreements stretching over the past two months. Google’s recent move to Hong Kong was slammed by Chinese authorities which has essentially allowed them to stop self-censoring. It still means that the Chinese government would prevent mainland users from seeing “sensitive” search results.

Google/China row continues

Poll results

Since the last issue of ETM we have introduced a poll facility on gloabletm.com. � e results have been surprising:

• 58.3% of you think that the iPad heralds a new age of information at your � ngertips

• 40% of you use Twi� er for social networking, both business and personal, while 40% of you claim to not use Twi� er at all

• 98% of you would like a social networking site that is especially directed at enterprise IT executives... ETM can help!www.gloabletm.com

THE ETM CommunityETM IS HERE TO HELP YOU GET THE ANSWERS AND SOLUTIONS YOU NEED TO HELP YOUR BUSINESS

SUCCEED—it’s something we’re passionate about. So we’ve developed a social networking platform catered speci� cally to your needs.

You’ll be able to connect with the IT community through your personal pro� le and blogs, by uploading whitepapers, taking part in discussions, and connecting directly with like-minded IT executives—plus much more.

We’re on the verge of launching during the next quarter, so please keep an eye on www.globaletm.com for the new-look website and social networking platform. We’d love to know what you think: aklaver@enterpriseimi.com

LAURA DIDIO ■ PROFESSIONAL PROFILE

Meet: Laura DiDioPrincipal Analyst Information Technology Intelligence Corp (ITIC)

HOW DID YOU START OUT IN THE IT INDUSTRY?

LD: It was pure propinquity. I had been working as an on-camera investigative reporter for CNN in the early 1980s. At the time, CNN was struggling � nancially and by chance I was recruited to cover semiconductors for Electronic Buyer’s News. I literally began covering high tech at the chip level—Intel, Motorola, Texas Instruments, Fairchild, National Semiconductor—just at the time the industry went into an explosive growth phase.

HOW DID YOU END UP WHERE YOU ARE TODAY?

LD:It’s been an interesting journey. A� er starting out covering semiconductors I transitioned to computer hardware, so� ware, applications, networking and security. From there it was a natural progression to covering the business issues that are closely intertwined with technology, such as TCO, ROI, licensing and contract negotiation, and regulatory compliance issues. In 1998, the rise of the internet and the transition to digital media began to impact newspapers and magazine revenues, so I thought it was a good time to transition to the analyst ranks. I joined Giga Information Group in the fall of 1998.

WHAT IS THE MOST REWARDING EXPERIENCE YOU’VE HAD?

LD:As a reporter I got to interview the late, great, Robert Noyce, who co-founded Intel Corp (along with Andrew Grove and Gordon Moore) and who, along with Jack Kirby, is credited with

inventing the integrated circuit chip. Noyce was a true genius and it was a privilege to interview him. And of course, thanks to the high technology vendors, I’ve visited some amazing countries, including a stay at the Hotel Carlton in Cannes, France.

WHAT DO YOUR COLLEAGUES SAY ABOUT YOU? WHAT ARE YOUR STRENGTHS?

LD:� is is a tough one because they don’t always tell me. I would hope they say that I’m hard working, professional, and a team player always willing to help out my co-workers. My top strengths are writing, conducting primary research and articulating my � ndings to assist clients in optimizing their business and technology needs.

IF YOU COULD CHANGE ONE THING ABOUT YOUR JOB, WHAT WOULD IT BE?

LD: I’d clone myself, so I have more time. I love the high technology industry and the people in it. It’s fast paced and demanding but sometimes I wish we could have regular 8am-6pm business hours.

CAN YOU GIVE US A CASE STUDY THAT HIGHLIGHTS WHAT ITIC CAN DO?

LD: I helped a corporate client negotiate a be� er licensing deal with one of their vendors that saved them over $3 million. I also helped another client re-negotiate their sales contract a� er I determined that the sales person had deliberately overcharged them. I brought the incident to the a� ention of a high level executive who quickly

recti� ed the situation and the corporate client saved over $100,000.

HOW DO YOU SEE THE FUTURE OF CLOUD COMPUTING?

LD: I think corporations will adopt it at a measured pace with private cloud adoptions outpacing public cloud adoptions by a 2-to-1 margin for the next 12 to 18 months. Presently, many companies are taking a “wait and see” a� itude about pu� ing their critical line-of-business applications into the cloud until they can be sure of key issues like security, response time and costs.

WHO DO YOU THINK ARE THE BEST ANALYST COMPANIES IN THE MARKET TODAY?

LD: I’m admi� edly biased, but I like the smaller independents and start-ups like Altimeter, � e Enderle Group, Horses for Sources and Pund-IT. Of the big named � rms, I think IDC does the best job of tracking unit shipments and revenues, and Forrester Research delivers outstanding value to its clients via its inquiries.

HOW DO YOU STAY UP-TO-DATE PROFESSIONALLY?

LD: I constantly read, take brie� ngs with vendors and corporate clients, a� end conferences, and talk with peers.

ITIC, founded by Laura DiDio in 2002, provides primary research and consulting on topics ranging from so� ware, hardware, networking, virtualization and cloud computing, to the services industries that support the technology including outsourcing. Prior to founding ITIC, Laura spent over six years

at Yankee Group, where she held the title of Research Fellow. She has also held reporting positions at computer networking industry trade publications including: Computerworld, Network World, Communications Week, LAN Times, and Digital Review. She shares her story so far with ETM: Laura DiDio

9

If people want more information about you, where can they go?Visit ITIC: www.itic-corp.com

ASK THE EXPERT ■ SOCIAL MEDIA AND THE THREAT LANDSCAPE

22

SAM MASIELLO (McAfee), talks to ETM’S ALI KLAVER about the changing threat landscape and how it applies to organizations and social media, now and in the future.

Secure and social

h� p://www.GlobalETM.com

23

SOCIAL MEDIA AND THE THREAT LANDSCAPE ■ ASK THE EXPERT

AK: SAM, HOW HAS THE THREAT LANDSCAPE CHANGED IN THE PAST TWO YEARS? HAS IT CHANGED D� MATICALLY IN THE PAST SIX MONTHS OR SO?

SM: What we’ve seen over the past couple of years is the migration from these end mass type of a� acks where you see phishing emails sent to millions of people. � ese show up on the radars of just about every � ltering provider and ISP fairly quickly, and they get shut down quickly.

But it also extends to larger numbers of targeted a� acks going a� er individual organizations or groups of organizations, in an a� empt to either steal data or proprietary and intellectual property.

� e game really has changed from the end map type of a� acks where they’ve tried to cast as wide a net as possible and see who they can get on their phish hook, to much more targeted a� acks aimed at individual organizations and even individual people.

� e messages they’re sending to these people to try to trick them include much more personalized information—something to the e� ect of the phone number of the company or the CEO of the company that they generally don’t put in generic phishing emails—to make it look a bit more legitimate.

It’s been fairly successful in some instances. A good example is something called Operation Aurora. We found that there were some very high value target companies, like Google, that were being targeted speci� cally by cybercriminals to try to steal their intellectual property.

Imagine all the research projects that are going on at Google and what could be the next big money maker for them. If someone were to potentially get in there and steal that information prior to Google going to market, then another company could beat them to it.

AK: WITH THE CONTINUED RISE OF SOCIAL MEDIA THESE DAYS, THESE SORTS OF A� ACKS CAN ALMOST BE HIDDEN, IN A SENSE, SO HOW SHOULD ORGANIZATIONS HANDLE SOCIAL MEDIA? SHOULD THEY ALLOW LIMITED ACCESS, BAN IT COMPLETELY, OR BE COMPLETELY OPEN?

SM: � ere is a lot of opinion on this topic and I think that it’s important to discuss it because there are a lot of companies who have gone to both ends of the extreme. Some allow it completely and don’t do any sort of monitoring of the content; and there are some that, in an e� ort to protect themselves, block all access to social media sites—which in my personal opinion is a li� le draconian.

What you need to do is a hybrid approach. You need to be able to have your marketing department and employees using these social media outlets because right now it’s a great way to market your organization.

Whether you’re a small or large company, social media is where people are going now. � ey’re focusing less on individual advertisement-laden type sites, and going to social media sites where people have invested a lot of money in trying to promote their own brands.

Since people are using social media sites like Facebook and MySpace much more frequently: it’s a great opportunity for these companies to be able to have targeted advertisement based on people’s interests on these social media sites.

From a marketing standpoint, if a company is blocking access completely, they’re kind of missing the boat. But I think they also need to make sure that their employees aren’t doing anything that could potentially violate the terms and conditions of their employment.

Like, for example, talking about proprietary projects, or talking about proprietary technology or con� dential projects. � ese water cooler-type chats are potentially huge opportunities for data leakage.

Companies have to make sure that they’re allowing access to these sites because they provide huge marketing opportunities for them, but they also have to make sure that they monitor the information their employees are pu� ing on these sites because they could also be high risk.

AK: I LIKE YOUR HYBRID APPROACH SAM, PARTICULARLY WHEN YOU’RE CONSIDERING MARKETING YOUR COMPANY, AND IT’S ALSO ABOUT EDUCATING THE EMPLOYEE AS WELL, IF YOU’RE GOING TO ALLOW FREE AND OPEN ACCESS TO VARIOUS SOCIAL MEDIA NETWORKS.

DOES THIS FALL INTO BEST P� CTICES? CAN YOU RECOMMEND FIVE OF THE MOST IMPORTANT BEST P� CTICES AN ORGANIZATION SHOULD FOLLOW TO PROTECT THEIR NETWORK?

SM: You just mentioned the � rst one when you talked about educating employees, and educating their users. I think that making sure you educate your users is the most important aspect of protecting the information that’s in, or going out, of an organization.

� e reality is that the user is the weakest link in the security chain—whether it’s posting information on a social media site, clicking on an a� achment in an email, or protecting end-point devices against data leakage, viruses and spam. So I think you mentioned the � rst one very eloquently, right o� .

We need to make sure we’re educating the users, to make sure they understand what is allowed and what spam and phishing emails look like. One of the things very prevalent right now is fake AV, where you go to a website and a window pops up saying that your machine is being scanned for a virus.

It inevitably � nds something because it’s actually a fake piece of malware that’s saying you have something wrong with your machine when you actually don’t. � at’s one of the ways that people are being tricked into downloading fake antivirus so� ware, giving up their credit card information, and downloading malware onto the machine.

� e next four are kind of all bunched together, but they fall under a defence in depth type of approach. Push protection out from your network as far as you possibly can so that you are only accepting tra� c on your network that you have to, and not all of the a� acks that are coming in from the outside.

� e reality is that the number of a� acks is increasing in frequency and sophistication every single day, and so by pushing as much as that out into the cloud as you possibly can, you’re limiting the amount of bandwidth you have to accept on your network for these a� acks.

For the things that get passed to cloud—make sure you have perimeter protection on your inbound network such as looking for spam and viruses, and an IPS solution in place that’s looking for other intrusions that are trying to a� ack your network.

Having endpoint protection in place is another big one because the endpoint is no longer just the PC’s or the laptops that you have si� ing

“... McAfee is the only company whose sole focus is on security.”

EXECUTIVE PANEL ■ ENTERPRISE SEARCH

28

The search and content processing sector is in transi-tion, making for both an exciting and a challenging time. STEPHEN E. ARNOLD (ARNOLDIT.COM), author of the fi rst three editions of the Enterprise Search report, seeks answers from KAMRAN KHAN (SEARCH TECHNOLOGIES), PAUL DOSCHER (EXALEAD), MARC KRELLENSTEIN (LUCID IMAGINATION) and JASON HUNTER (MARK LOGIC).

Search—What’s in it for you?

h� p://www.GlobalETM.com

29

ENTERPRISE SEARCH ■ EXECUTIVE PANEL

SA: I’D LIKE TO ASK EACH OF OUR PARTICIPANTS TO BRIEFLY INTRODUCE THEMSELVES AND POSITION THEIR FIRM’S SEARCH SERVICES AND TECHNOLOGIES—PAUL WOULD YOU LIKE TO START?

PD: I’ve been in so� ware sales for over 30 years with a number of well known companies such as Oracle, BusinessObjects, VMware and a plethora of smaller companies.

Exalead was founded in 2000 by former AltaVista lead developers. Traditionally, the company focused on building large scale enterprise search technology � rst distributed in 2004. We now have over 250 customers worldwide such as the World Bank, PriceWaterhouseCoopers and La Poste in France.

In the past year we’ve seen an evolution in enterprise search to something that is now being commonly referred to as search-based applications. We see huge opportunity as this market evolves to get closer to mission-critical applications that are being delivered to our customers today by Exalead CloudView technology.

KK: I’m the CEO and founder of Search Technologies. I started in the search business in the early ‘90s with Excalibur Technologies which eventually became Convera. I founded Search Technologies in 2005 to focus primarily on helping customers to implement search solutions.

Our business is about ge� ing the solution working, rather than building products, so we work with a number of search so� ware providers, including some of the panellists today. We operate globally, and in our � ve year history we’ve delivered more than 20,000 days of consulting to over 150 customers.

We’re search product agnostic, although a large proportion of our implementation work today involves FAST Search from Microso� , SharePoint, the Google Search Appliance and also open source so� ware such as Solr and Lucene.

JH: I’m the Principal Technologist at Mark Logic. I’ve been here about six years, just a� er the company de-cloaked seven years ago and started telling everyone what we do.

We’ve now got around 200 customers, 160 employees, and do a lot of work in media, government and � nancial services with customers like Lexis Nexus, Elsevier, the National Archives and Records Administration and more.

What we sell that all these people are using is an XML server—it’s an XML-centric, transactional, search-centric, structure aware, schema free, very fast, clustered database server. So we think search-based applications are key. We actually go as far as calling them information applications.

We see people doing things like creating content, retrieving it, reusing it, delivering it, collaborating together, visualizing and analyzing, and as search being at the heart of all these things.

MK: I started Lucid Imagination in 2007 and I’ve been working in enterprise search for about 20 years. I was the Chief Technology O� cer at Northern Light back in the late ‘90s.

I started Lucid because I realized that there was now open source so� ware for search, Lucene and Solr, which was as good or be� er than the commercial products, and was free. So the combination of that so� ware, and free, seemed winning to me.

We provide support, services and value-add so� ware around Lucene and Solr—basically everything that the open source doesn’t have, we try to provide.

We sell formal support contracts, provide consulting, training, knowledge base and other services, and provide additional so� ware to complement what’s in the open source.

SA: PAUL, FROM EXALEAD, DOES A PLAIN VANILLA KEYWORD SEARCH DELIVER VALUE FOR AN EMPLOYEE SEEKING BUSINESS INFORMATION TODAY?

PD: I believe that it can, but when you use the words plain vanilla keyword search, what you’re really talking about is how you can help people navigate through a set of information so that they can get to the information they want.

� e days of people doing a Google search where they get the top 10 results delivered page a� er page—those kinds of opportunities for information are fast becoming very passé and frustrating for users.

What we see today are applications that help the individual through very easy to use and � exible interfaces that give them the capacity to navigate through information a� er it is intelligently combined in an index. Semantic relevance is maintained and managed so that di� erent styles of information, once integrated into an index, maintain their semantic relevance and integrity.

Exalead builds very � exible and adaptable user interfaces to work across the entire ecosystem. It could be a very simple keyword search, or as complex as a dashboard that shows all sorts of graphical interfaces.

We have a customer who is a very large logistics company and their instantiation was in fact a keyword search. But the power of the retrieval, and then the assistance through navigational tools to help the user drive down to the speci� c items of information they want, has now become so advanced that you can build business intelligence-looking dashboards and people won’t realize that it’s a search technology underneath.

LAU� DIDIO (ITIC)talks about the partnerships, and divisions, between the two sets of players in the current virtual desktop infrastructure market—Citrix/Microso� and VMware/EMC.

There’s no ho� er market in high tech this year than Virtual Desktop Infrastructure (VDI) and you don’t need sales and unit shipment statistics to prove it. No, the best measurement of VDI’s hotness is the sudden � urry of vendor announcements

accompanied by a concomitant rise in vitriol.� e main players in the VDI market are actually two sets of pairs. It’s

Citrix and Microso� lining up against VMware and EMC for round two in the ongoing virtualization wars. On March 18, Citrix and Microso� came out swinging, landing the � rst potent, pre-emptive punches right where they hope will hurt VMware the most: in its pocketbook.

Citrix and Microso� unveiled a series of VDI initiatives that include aggressive pricing and more simpli� ed licensing models. To demonstrate just how commi� ed they are to taking on VMware and EMC, the two � rms even went so far as to combine their respective VDI graphics technologies.

At stake is the leadership position in the nascent, but rapidly expanding, global VDI market. � e results of the ITIC 2010 Global Virtualization Deployment and Trends Survey, which polled 800+ businesses worldwide in December/January, indicate that 31% of respondents plan to implement VDI in 2010—that’s more than double the 13% that said they would undertake a VDI deployment in 2009.

ANALYST FEATURE ■ VIRTUAL DESKTOP INFRASTRUCTURE

The HEAT is on

40

Application virtualization is also on the rise. � e same ITIC survey found that 37% of participants plan application virtualization upgrades this year, up from 15% who responded a� rmatively to the same question in 2009.

� e current installed base of VDI deployments is still relatively small; hence the statistics that show the number of deployments doubling year over year must be considered in that context. Nonetheless, double digit deployment � gures are evidence of strengthening demand and a market that is robustly transitioning from niche to mainstream.

� e spate of announcements from Microso� and Citrix were clearly intended to capitalize on the growth spurt in VDI. At the same time, the companies threw down the gauntlet with initiatives aimed at solidifying and expanding their base of current VDI customers while serving the dual purpose of luring VMware customers away from that company’s VDI platform.

� ey include:

• “VDI KICK START” � is wide-ranging sales promotion, which runs through December 31, 2010, seeks to jumpstart VDI deployments by lowering the entry level pricing for customers purchasing Microso� and Citrix technologies.

As part of this deal, existing Microso� client access licensing (CAL) customers will pay $28 per desktop for uP to 250 users to purchase the Microso� Virtual Desktop Infrastructure Suite, Standard edition, and Citrix’s XenDesktop VDI Edition for one year. � at’s roughly a 50% discount o� the list prices that corporations have paid up until now for their annual CALs.

� is is crucial for cost-conscious businesses. Client access licenses typically represent the lion’s share of their licensing deals since desktops outnumber servers in mid-sized and large enterprises. In addition, the two � rms merged Microso� ’s 3D graphics technology for virtual desktops, called RemoteFX, with Citrix’s high-de� nition HDX technology in order to deliver greater integration and higher performance capabilities.

• THE MICROSOFT VIRTUAL DESKTOP ACCESS (VDA) LICENSE PLAN Organizations that use � in Client devices which are not included or covered under Microso� ’s SA maintenance plan can now purchase the VDA licenses at a retail price of $100 per device per annum. � is targets end users who travel or telecommute and need to

use personal devices or public networks to access their corporate data.

Microso� also made another move towards simplifying its virtualization licensing plan. Starting July 1, Microso� SA customers will no longer be required to purchase a separate license to access Windows via a VDI.

• THE “RESCUE FOR VMWARE VDI” (THE NAME SAYS IT ALL)

� is promotion is a direct a� ack on

VMware. Like the VDI Kick Start program, it runs through December 31, 2010.

Under the terms of this deal, any Microso� So� ware Assurance licensing/maintenance customer can replace their existing VMware View licenses for free. VMware View users who opt out of that platform in favor of the Citrix and Microso� o� erings will receive up to 500 XenDesktop VDI Edition device licenses and up to 500 Microso� VDI Standard Suite device licenses free for an entire year once they trade in their VMware View licenses.

Dai Vu, Microso� ’s director of virtualization marketing, said the announcements were all about delivering more value to desktop customers and simplifying and extending organizations’ licensing rights.

� e Citrix/Microso� announcements also cement the close working partnership and the “enemy of my enemy is my friend” relationship the � rms have enjoyed for many years. By bundling their respective VDI o� erings together, the two companies should also ensure integration and interoperability which are crucial components for each and every layer in a virtualized data center environment.

VMWARE AND EMC: NOT STANDING STILLVMware and EMC executives have yet to publicly respond to the Microso� /Citrix initiatives. However, it’s almost certain that VMware will have to o� er its current and prospective VDI accounts incentives to counter the Microso� /Citrix alliance.

Cash-strapped corporations and IT departments are all on the lookout for top notch products at bargain basement prices. And it doesn’t get much be� er for customers than the free Rescue for VMware VDI program.

VMware built up a commanding lead in the server virtualization arena over the last � ve years by virtue of being � rst to market and delivering leading edge features and performance in its signature ESX Server product. VMware’s competitors have spent

the last several years playing catch up in server virtualization. � is allowed them to charge a premium price for its premier o� erings.

Depending on the size and scope of the individual organization’s server virtualization deployment, customers paid on average 35% to as much as 75% higher for VMware server-based o� erings. � ere were surprisingly few complaints.

� e emerging VDI and application virtualization markets are a di� erent story. Only about 5-8% of organizations worldwide have fully virtualized their desktop infrastructure. So it’s too soon to declare a clear market winner.

It’s safe to say that Citrix, Microso� and VMware are all market leaders in this segment. � is time around though, Microso� and Citrix are determined not to let VMware and EMC run away with the race by building an insurmountable lead.

Meanwhile, VMware and EMC have not been idle. Former Microso� executive Paul Maritz succeeded VMware founder Diane Greene following her 2008 departure as the company’s president and chief executive o� cer. Since then he has made tangible moves to bolster VMware’s position in the VDI and application virtualization arenas. Maritz and EMC CEO Joe Tucci make a formidable combination, as do EMC and VMware.

EMC purchased VMware in 2004 for $635 million and it owns an 86% majority stake in the server virtualization market leader. In the past several years, VMware’s fortunes and revenues

CHANGEVIRTUAL DESKTOP INFRASTRUCTURE ■ ANALYST FEATURE

“Hardware vendors like Dell, HP and IBM et al all have a stake in the

future success of the VDI market.”

41

BACKGROUND � e POWER architecture had its start in the late 1980s as an IBM e� ort to create a lower cost RISC processor for low end and mid-range systems. It a� racted a� ention in the marketplace with the PowerPC alliance which consisted of IBM, Apple and Motorola.

Over the years, Apple and Motorola dropped out while IBM continued to develop the architecture for its servers.

One has to acknowledge IBM’s persistence and the investment protection it has delivered to its customers. For example, IBM provided increased performance and price/performance to its long time AS/400 customers (renamed to System i). iOS will take advantage of most of the high-end features of POWER7 with some exceptions that are only available with AIX 6.

THE NEW CHIPIBM spent li� le announcement time discussing the new chip. Rather, they focused on their new systems. � is is because customers are generally more interested in new system (or package) features that help the performance of their particular workloads and less so on the chip speci� cations.

In February IBM announced its latest microprocessor, POWER7, along with changes to the latest version of AIX which supports the advanced features of POWER7. BILL MO� N (PTAK NOEL & ASSOCIATES) discusses chip properties and compares its performance to the older POWER6 while examining the competitive implications of the new systems.

ANALYST FEATURE ■ REVIEW

IBM’s POWER7 in review

66

82

Events and features 2010ETM is focusing on:

Security, BI and the Cloud

EVENTS AND FEATURES ■ 2010

GARTNER SOURCING SUMMITDATES:30 May – 1 June 2010LOCATION: Tokyo, JapanURL: www.gartner.com/it/page.jsp?id=1267919

GARTNER PPM AND IT GOVERNANCE SUMMITDATES:7 – 9 June 2010LOCATION: Orlando, FLURL: www.gartner.com/it/page.jsp?id=1216519

INTEROP TOKYODATES: 7 – 11 June 2010LOCATION: Tokyo, JapanURL: www.interop.com

GARTNER OUTSOURCING SUMMIT 2010 – LATIN AMERICADATES: 8 – 9 June 2010LOCATION: Sao Paulo, BrazilURL: www.gartner.com/it/page.jsp?id=1188515

GARTNER SOA AND APPLICATION DEVELOPMENT AND INTEG� TION SUMMITDATES: 14 – 15 June 2010LOCATION: London, UKURL: www.gartner.com/it/page.jsp?id=1128412

GARTNER IT INF� STRUCTURE, OPE� TIONS AND MANAGEMENT SUMMITDATES: 14 – 16 June 2010LOCATION: Orlando, FLURL: www.gartner.com/it/page.jsp?id=1219216

TDWI EUROPEAN CONFERENCEDATES: 14 – 16 June 2010LOCATION: Munich, GermanyURL: www.tdwi.eu/nc/en/events/conferences/tdwi-2010-munich.html

CODE GENE� TION CONFERENCE 2010DATES: 16 – 18 June 2010LOCATION: Cambridge, UKURL: www.codegeneration.net/cg2010

ENTERPRISE ARCHITECTURE CONFERENCE EUROPE (EAC 2010)DATES: 16 – 18 June 2010LOCATION: London, UKURL: www.irmuk.co.uk/eac2010

GARTNER SECURITY AND RISK MANAGEMENT SUMMITDATES: 21 – 23 June 2010LOCATION: Washington, DCURL: www.gartner.com/it/page.jsp?id=1180650

TECHCONNECT WORLDDATES: 21 – 25 June 2010 LOCATION: Anaheim, CAURL: www.techconnectworld.com

CLOUD COMPUTING WORLD FORUMDATES: 29 June – 1 July 2010LOCATION: London, UKURL: www.cloudwf.com

THE GREEN ENTERPRISE WORLD FORUMDATES: 1 July 2010LOCATION: London, UKURL: www.greenenterpriseforum.com

GARTNER APPLICATION AND ARCHITECTURE SUMMIT DATES: 12 – 13 July 2010LOCATION: Tokyo, JapanURL: www.gartner.com/it/page.jsp?id=1267916

GARTNER BUSINESS INTELLIGENCE AND INFORMATION MANAGEMENT SUMMITDATE: 14 July 2010LOCATION: Tokyo, JapanURL: www.gartner.com/it/page.jsp?id=1267917

BLACK HAT US 2010DATES: 24 – 29 July 2010LOCATION: Las Vegas, LVURL: www.blackhat.com

GOVERNMENT CLOUD 2010DATE: 11 August 2010LOCATION: SingaporeURL: www.futuregov.net/events/government-cloud-forum-2010

TDWI WORLD CONFERENCEDATES: 15 – 20 August 2010LOCATION: San Diego, CAURL: www.tdwi.org/Education/Conferences/index.aspx

PII 2010 – PRIVACY IDENTITY INNOVATIONDATES: 17 – 19 August 2010LOCATION: Sea� le, WAURL: www.techpolicycentral.com/pii/featured/events-calendar.php

Interested in contributing?

If you’re an analyst, consultant or an independent and would like to contribute a vendor-neutral piece to future issues of ETM, please contact the managing editor: Ali Klaver: aklaver@enterpriseimi.com.

“www.globalETM.com”“www.globalETM.com”

TBC TBC

ETM Q2 ISSUE ■ 2010

To read the

full version of the Q2 issue,

please go to

“www.globalETM.com”

To read the

full version of the Q2 issue,

please go to

“www.globalETM.com”“www.globalETM.com”“www.globalETM.com”“www.globalETM.com”“www.globalETM.com”“www.globalETM.com”