Exploring the Trends in Global Business Communications

Today, most important executive relationships are globally distributed, but many business leaders still say that they want more collaboration in person. Particularly during activities such as brainstorming for new ideas, managing a specific crisis or making presentations. This is among the key findings from a new Economist Intelligence Unit (EIU) survey.

While the primary function of meetings is to build relationships with customers, some 89 percent of EIU survey respondents say communications where the parties can see and respond to each other benefit internal business functions such as employee coaching and training as well as communications with partners and customers.

An additional 43 percent of respondents use meetings to discuss and resolve major issues with customers such as a service or product failure or dissatisfaction with the partnership. Motivations for expanding these meetings also include contract renewals, brainstorming sessions and being introduced to other clients or customers within the organization.

This EIU survey, sponsored by Cisco, explores the challenges of global enterprise collaboration and the perceived value of different types of business communications -- including telephone, instant messaging, email and conferencing.

Survey respondents were also asked their views on what business processes can be most impacted through in-person interaction as well as on potential productivity gains through these efforts.

The 862 global senior executives surveyed identified a number of key trends in business communications. These insightful findings include:

Face time is a priority -- When it comes to different stakeholders, business leaders attach greater importance to in-person meetings with customers than with colleagues, partners or suppliers. More than half (54%) of respondents to an Economist Intelligence Unit survey said they see meetings with customers as having the greatest impact on their business. This need for face time relates to how most respondents (56%) ranked the most important aspect of business collaboration: determining audience engagement and focus.

Email is getting in the way -- Business leaders in all categories cite email as the primary tool used in collaborating with colleagues, partners and customers (as much as 66% for senior managers) with the telephone identified as the second most-used business communication tool (25%). However, neither text nor voice alone was cited as the best option in communicating critical information in a global business.

Motivations for more meetings differ regionally -- Asked to pick their strongest motivation for meetings with colleagues outside of their own office, respondents from Asia-Pacific and Europe, the Middle East and Africa (EMEA) are most interested in resolving a problem quickly. However, U.S. business leaders are motivated more by cost reductions in meetings with colleagues. Non-U.S. respondents are also more interested in generating better long-term relationships during their meetings with partners `nd customers.

Industry dictates motivations as well -- In meeting with business partners or suppliers, respondents in the consumer goods industry are most likely to meet face to face to give or receive direction, while business leaders in energy/transportation, technology and services are most likely to meet to generate better long-term relationships. Respondents in other industries are most likely to meet with partners to be motivated or inspired.

To supplement the survey, the EIU hosted a roundtable discussion with two industry leaders, Joan Parsons, head of U.S. banking for Silicon Valley Bank, and Morten Hansen, a management professor at the University of California Berkeley School of Information and co-author of the book, Great by Choice, about their perspectives on business communications.

An analysis of the findings will be included as part of a EIU video webcast on April 24th, sponsored by Cisco Systems, Inc.

Five Megatrends are Driving the Personal Cloud Era

If you believe that you've had to learn more about the safe online operation and ongoing management of your PC than you ever wanted to know, then you'll be pleased to discover that there's relief on the horizon. According to the latest market study by Gartner, the reign of the personal computer is coming to an apparent close. By 2014, the personal cloud will replace the personal computer -- and this transition will likely include greater use of media tablets, chromebooks or other similar devices.

Gartner analysts said the personal cloud will become the foundation for a new era that will provide users with an inbreased level of flexibility with the devices they use for daily activities -- leveraging the strengths of each device, ultimately enabling new levels of user satisfaction and productivity.

However, Garner says that it will require enterprise IT leaders and their staff to fundamentally rethink how they deliver applications and services to their end-users.

Seeking New Fundamental Ways to Achieve Goals

"Major trends in client computing have shifted the market away from a focus on personal computers to a broader device perspective that includes smartphones, tablets and other consumer devices," said Steve Kleynhans, research vice president at Gartner.

He says that emerging cloud computing services will become the glue that connects the various digital devices that people will choose to use during the different aspects of their daily life.

"Many call this era the post-PC era, but it isn't really about being after the PC, but rather about a new style of personal computing that frees individuals to use computing in fundamentally new ways to improve multiple aspects of their work and personal lives," said Kleynhans.

Transition is Defined by a Series of Megatrends

Several driving forces are combining to create this new era. Gartner believes that these "megatrends" have roots that extend back through the past decade, but are aligning in a new way:

1. Consumerization -- Gartner has discussed the consumerization of IT for the better part of a decade, and has seen the impact of it across various aspects of the corporate IT world. However, much of this has simply been a precursor to the major wave that is starting to take hold across all aspects of information technology as several key factors come together:

• Users are more technologically savvy and have very different expectations of technology.
• The Internet and social media have empowered and emboldened users.
• The rise of powerful, affordable mobile devices changes the equation for users.
• Users have become innovators.
• Through the democratization of technology, users of all types and status within organizations can now have similar technology available to them.

2. Virtualization -- it has improved flexibility and increased the options for how IT organizations can implement client environments. Virtualization has, to some extent, freed applications from the peculiarities of individual devices, operating systems or even processor architectures. Virtualization provides a way to move the legacy of applications and processes developed in the PC era forward into the new emerging world. This provides low-power devices access to much-greater processing power, thus expanding their utility and increasing the reach of processor-intensive applications.

3. Software App-ification -- When the way that applications are designed, delivered and consumed by users changes, it has a dramatic impact on all other aspects of the market. These changes will have a profound impact on how applications are written and managed in corporate environments. They also raise the prospect of greater cross-platform portability as small user experience (UX) apps are used to adjust a server- or cloud-resident application to the unique characteristics of a specific device or scenario. One application can now be exposed in multiple ways and used in varying situations by the user.

4. The Self-Service Cloud -- The advent of the cloud for servicing individual users opens a whole new level of opportunity. Every user can now have a scalable and nearly infinitd set of resources available for whatever they need to do. The impacts for IT infrastructures are stunning, but when this is applied to the individual, there are some specific benefits that emerge. Users' digital activities are far more self-directed than ever before. Users demand to make their own choices about applications, services and content, selecting from a nearly limitless collection on the Internet. This encourages a culture of self-service that users expect in all aspects of their digital experience. Users can now store their virtual workspace or digital personality online.

5. The Mobility Shift -- Today, mobile devices combined with the cloud can fulfill most computing tasks, and any tradeoffs are outweighed in the minds of the user by the convenience and flexibility provided by the mobile devices. The emergence of more-natural user interface experiences is making mobility practical. Touch- and gesture-based user experiences, coupled with speech and contextual awareness, are enabling rich interaction with devices and a much greater level of freedom. At any point in time, and depending on the scenario, any given device will take on the role of the user's primary device -- the one at the center of the user's constellation of devices.

Why Big Data Applications Adoption is Accelerating

Big Data applications have gained new momentum in the marketplace, as the benefits of working with larger and larger data sets enables analysts to spot key business-related trends. International Data Corporation (IDC) released a worldwide forecast of Big Data opportunities, noting that the market is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015.

This represents a compound annual growth rate (CAGR) of 40 percent -- or about 7 times that of the overall Information and Communications Technology (ICT) market.

"The Big Data market is expanding rapidly as large IT companies and start-ups vie for customers and market share," said Dan Vesset, program vice president, Business Analytics Solutions at IDC.

IDC believes that for business technology buyers, opportunities exist to use Big Data solutions to improve operational effichency and to drive innovation. Use cases are already present across industries and geographic regions.

"There are also Big Data opportunities for both large IT vendors and start ups," Vesset continued. "Major IT vendors are offering both database solutions and configurations supporting Big Data by evolving their own products as well as by acquisition. At the same time, more than half a billion dollars in venture capital has been invested in new Big Data technology."

Findings from the latest IDC market study include:

• While the five-year CAGR for the worldwide market is expected to be nearly 40 percent, the growth of individual segments varies from 27.3 percent for servers and 34.2 percent for software to 61.4 percent for storage.
• The growth in appliances, cloud services, and outsourcing deals for Big Data technology will likely mean that over time end users will pay increasingly less attention to technology capabilities and will focus instead on the business value arguments. System performance, availability, security, and manageability will all matter greatly. However, how they are achieved will be less of a point for differentiation among vendors.
• Today there is a shortage of trained Big Data technology experts, in addition to a shortage of analytics experts. This labor supply constraint will act as an inhibitor of adoption and use of Big Data technologies, and it will also encourage vendors to deliver Big Data technologies as cloud-based solutions.

"While software and services make up the bulk of the market opportunity through 2015, infrastructure technology for Big Data deployments is expected to grow slightly faster at 44 percent CAGR. Storage, in particular, shows the strongest growth opportunity, growing at 61.4 percent CAGR through 2015," said Benjamin S. Woo, program vice president, Storage Systems at IDC.

The significant growth rate in revenue is underscored by the large number of new open source projects that drive infrastructure investments.

Focus on Big Data Deployment Methodology

IDC methodology for sizing the Big Data technology and services market includes evaluation of current and expected deployments that follow one of the following three scenarios:

1. Deployments where the data collected is over 100 terabytes (TB). IDC is using data collected, not stored, to account for the use of in-memory technology where data may not be stored on a disk.
2. Deployments of ultra-high-speed messaging technology for real-time, streaming data capture and monitoring. This scenario represents Big Data in motion as opposed to Big Data at rest.
3. Deployments where the data sets may not be very large today, but are growing very rapidly at a rate of 60 percent or more annually.

Additionally, IDC requires that in each of these three scenarios, the technology is deployed on scale-out infrastructure and deployments that include either two or more data types or data sources or those that include high-speed data sources such as click-stream tracking or monitoring of machine-generated data.

Videoconferencing Apps will Grow Rapidly in Latin America

There's little doubt about the continued adoption of videoconferencing and telepresence applications over the past few years. Clearly, growth has been fueled by the increasing popularity of video communications among multinational companies around the world -- particularly with mobile video chat applications that utilize new handheld devices.

According to IDC's latest market assessment, the videoconferencing and telepresence market will continue to be one of the fastest growing networking markets for the foreseeable future.

"Growth has been spurred on by more well-defined video use cases among organizations across a range of vertical market segments, including healthcare, higher education, financial services, legal, law enforcement, manufacturing, and retail," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC.

Other industry analysts are equally enthusiastic about the market outlook, as more enterprise users find new ways to connect and collaborate with internal and external stakeholders via traditional video meeting rooms and other more flexible video endpoints.

Enterprise Video Communications Market Results

Infonetics Research released excerpts from its fourth quarter (4Q11) "Enterprise Telepresence and Video Conferencing Equipment" report, which analyzes markets and vendors by region.

"Sales of telepresence and videoconferencing equipment surged in the past two years, with growth accelerating in 2011 as video took off on enterprise IP PBX systems" said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

The video conferencing market is being fueled by a confluence of factors, including the proliferation of video-capable equipment, demographic and communication trends that favor video, and industry use cases -- such as tele-learning and tele-medicine.

Most importantly, the video collaboration market is being driven by increasing demand across a growing number of industry verticals that use the technology today.

The Infonetics market study highlights include:

• The global enterprise video conferencing and telepresence market jumped 15 percent to $882 million between the third and fourth quarters of 2011, setting a record high for quarterly revenue.
• For the full year 2011, sales of videoconferencing and telepresence equipment are up 34 percent to $2.99 billion.
• Infonetics expects a cumulative $22 billion to be spent by enterprises on videoconferencing and telepresence hardware and software from 2012 to 2016.
• PBX-based systems had the strongest performance for the year, growing 80 percent, as they offer a cost-effective way to enjoy multi-modal communication using existing infrastructure.
• Market leader Cisco shows no signs of slowing down: its 4Q11 telepresence and videoconferencing revenue jumped 25 percent sequentially and market share is up 3 points to 52.5 percent.
• Dedicated multi-purpose room video systems made up over half the enterprise videoconferencing equipment market in 2011 and will continue to be the biggest revenue-generator among enterprise video solutions.
• Sales of videoconferencing infrastructure and endpoints are strong in all major world regions, but the standout region is the Caribbean and Latin America (CALA), which saw sales nearly double in 2011.

Demand for More Open, Flexible Workplace Environment

According to a new market study by Cisco, a majority (60%) of IT decision makers from North European countries believe the ability to work remotely leads to increased productivity -- and it is no longer necessary to be confined to an office to be productive.

Although these IT decision makers believe technology (such as business tablets) allows them to be more mobile and flexible, more than half (56%) of those surveyed -- led by those in Norway and The Netherlands -- work one or more extra hours per day as a result of the ability to work remotely.

In Northern Europe, there is a growing need for remote access to the company network, social media access in the workplace and for the freedom to use personal devices for business purposes -- also known as "Bring Your Own Device" or BYOD.

This trend can have a significant impact on the IT policies of organizations and among end users who are employed by companies with IT policies -- as the study also found that nearly half (47%) indicate their IT policy could use improvement or updating.

That's the primary conclusions from an online survey held by Cisco in five countries: Belgium, Denmark, Norway, Sweden and The Netherlands. The results of this North European survey complement and confirm the findings of last year's Cisco Connected World Technology Report -- an international research into the demands, behaviour and work lifestyles of the next generation of workers.

In addition, the survey found that when faced with the choice between "a higher salary and no remote access" versus a "lower salary position that offers remote access," end users are split, with one out of every two respondents (53%) opting for a lower salary, because they find work flexibility more important.

With little differentiation across the countries, more than 6 out of 10 (65%) end users expebt to have remote access to the network in the future.

Demand for Mobile Enterprise Connectivity

Looking at the use of mobile devices, end users from Northern European countries tend to use more than one device during the typical workday: more than 8 in 10 (82%) end users indicate they use at least one device at work that is not company-issued.

More than half (51%) of the surveyed IT decision makers even indicate that up to 50% of their company's mobile workers use a smartphone as their primary communication device.

Overall, most businesses in the surveyed countries have at least taken some steps to prepare for a "mobile and distributed" workforce. Still, 1 in 5 IT decision makers (21%) indicate that their company is as yet completely unprepared. The highest percentage of unprepared businesses is reported in Norway (26%).

In The Netherlands, 14% of decision makers indicate that their company is totally unprepared. In each country, roughly one-third (36%) indicate they are actively working towards enabling a mobile, distributed workforce, especially in the Netherlands (45%).

Surprisingly, although Norway reports the largest percentage of completely unprepared companies, it also has the highest proportion of companies that already have state-of-the-art IT support for a "mobile and distributed" workforce (34%), together with Denmark (31%). In that respect, Netherlands (14%) and Belgium (12%) trail the pack.

Access to Social Media Networking Resources

Few end users (less than 1 in 5, 19%) report that access to social media type websites and applications is restricted at the workplace. Likewise, about 6 in 10 IT decision makers (59%) -- particularly those in Denmark -- feel that access to social media sites and applications are important for the work-life balance, or staying competitive with other businesses that use them.

"Our Workforce Survey in Northern Europe confirms that employees really want an open and flexible workplace environment. The survey indicates that IT decision makers want to accommodate this requirement and in a secure way enable a mobile, distributed workforce. Most end users in the surveyed countries indicate that they work an extra hour or more per day because of their ability to work remotely. This shows BYOD brings the productivity we are looking for," said Niels Furu, Vice President, Cisco Northern Europe.

A Spring Break with TFA

By Nina Gokhale

I spent my spring break in Memphis, Tennessee as a participant in Maximum Impact: Alternative Spring Break with Deloitte and Teach for America. Over a period of four days, I was able to witness first hand the struggles of this community. We spent our first evening exploring Memphis, where only 4% of students graduate college-ready. The next three days we worked with TFA members and school administrators at various schools. Following are my reflections on each day’s events.

Sunday:

Beale Street is like a smaller version of New Orleans’ Bourbon Street. Bars with neon signs line the street. Live music pours from open doors. There was a fair number of people out for a Sunday evening, but as we ventured out, the scenery changed. Historic landmarks and office buildings are heavily interspersed with boarded up structures. Few cars drove by. For the largest city in the state, it seemed far too empty.

Monday:

I spent my day doing landscaping and secretarial work. The work I did was mundane, but somehow, I’ve still come away feeling satisfied. I’ve long been troubled by the fact that the work I do does not seem to make a long-lasting difference. And I’ve heard it a lot, but I’m really starting to see that small amounts of time can help. One hour from thirty-five of us can greatly reduce a teacher’s work outside of the classroom. A morning in the dirt can create an environment where students are proud and excited to come to each day. The gratitude everyone expressed is truly remarkable and has shown me that my efforts can be the highlight of another’s day, week, or month. 

Tuesday:

We spent the following day at a middle school. Here I had the opportunity to work with small groups on math problems. For a few, it clicked. In other cases, however, I felt like I was merely speaking at the students, unable to tell whether they had any grasp of what I was saying. Only when I began to work on more personal levels with my groups of six, addressing individual issues, did I see any progress. But I struggled running around even with this small few. I cannot even begin to understand how teachers are expected to work with classes of 30 and address the various levels of students’ understanding. I always assumed that children slipping between the cracks was due to lack of care on part of the teachers, but I am seeing it’s a lot more complicated than this.

Wednesday:

During a college Q&A, one student asked about paying for college. I gave the classic answer, about scholarships, financial aid, loans, etc. But it was difficult, giving them this broad answer, when many do not have the resources necessary to understand the complicated processes to finance their educations. And even with aid, there are still significant out of pocket expenses. A TFA corps member told us afterwards that he encourages his students to go to community college prior to attending a university. While a necessary move for many, this increasing long and expensive process will unfortunately make a college degree even less attainable for these students.

Thursday:

The idea of TFA terrifies me. Being the force that is supposed to motivate students and put them on track is an incredible amount of pressure. Yet for some reason, this new found fear is not driving me further from the idea of being a corps member, but closer to it. The hours of frustrations and failures are worth it, even if only a few achieve their potential. It’s scary, but the cause is worth fighting for.

How Government Agencies will Adopt Cloud Services

While most commentary about managed cloud services tend to focus on the advances in commercial enterprise applications, government agencies are also making noteworthy progress. In particular, the advent of regional community cloud hubs is a phenomenon that's worthy of further exploration.

According to their latest market study and related report, IDC Government Insights believes regional cloud hubs will significantly change the way state and local governments procure online computing services.

These regional cloud hubs, defined as one government agency offering computing and storage services to other government agencies, have proven successful in the State of Michigan and State of Utah. In addition, the IDC's research provides a framework for building similar regional cloud solutions.

According to Shawn McCarthy, research analyst, IDC Government Insights, "We believe that cloud hubs will see rapid growth, since the first multi-agency efforts have already shown a positive return on investment and solid service levels for cloud solutions subscribers."

Cloud computing is rapidly changing the way government organizations consume computing resources. This comes at a time when virtualized servers and efforts towards application standardization have merged many government solutions.

IDC says that as solutions merge, less data center space is needed. In fact, by the end of 2012 close to 40 percent of federal data centers will be shuttered. Many state governments are following a similar path, often combing multiple data centers into one or two large statewide operations. Remaining data centers often serve as a shared computing and storage resource for multiple departments.

Why State Government is Leading the Way

While any level of government can, in theory, offer services to any other government office, state-level governments are often most qualified to serve as regional hosts -- offering government-to-government services to other state agencies or to local municipal government entities.

Local governments are already looking for trusted cloud providers -- and for ways to significantly reduce their growing IT costs. Through these cooperative arrangements, the government sites are able to leverage private cloud services including software as a service, infrastructure as a service, online storage, and security as a service, among others.

Being able to purchase services through high volume state contracts can give local governments a substantial pricing edge. In addition, moving to a shared service environment also helps local governments conform to broader data standards and gain access to streamlined reporting tools that can be hosted right on the shared system.

"In general, the larger government operations that already manage complex IT systems will evolve as the most likely regional hosts," said McCarthy. "Smaller government agencies may choose to get out of most IT hosting and management operations, as long as they can find reliable, affordable and privately hosted solutions through the cloud."

Business Model for Regional Cloud Hubs

According to IDC, these managed cloud solutions often require zero to moderate capital expenditures and are developed in-house or are commercially developed private clouds -- dedicated to government use and designed to meet specific government standards.

As a result, this evolution has the potential to trigger the following game-changing consequences:

• For the host facility, it can turn a government agency cost center into a revenue center. By selling cloud solutions to other government organizations, host agencies can offset their own IT costs.
• Local governments can buy cheaper cloud solutions than they might find on their own and they may be able to reduce capital expenditures and overhead costs.
• Cloud services will replace internal client/server systems as the main model for government application delivery. The race is on to build shared regional data centers and the largest portfolios of government solutions.

The IDC Government Insights report features two U.S. states, Michigan and Utah, both well on their way to building cloud hubs that can be used by multiple government agencies at various levels of government. In addition, the report highlights several regional multi-state cloud computing efforts.