Thursday, February 11, 2010

Fast Internet Powered by Google

On Wednesday Google announced their plans to offer ultra high speed internet access to some communities. The plan is to build and test a high speed fiber optic broadband network capable of allowing people to surf the Web at a gigabit a second or about one hundred times the speed of many other broadband connections. Google’s announcement has generated mixed reviews. Supporters believe this is what American Internet Service Providers need in order to compete with internet services in other well developed countries. For example, Julius Genachowski, the chairman of the F.C.C. welcomed Google’s announcement, stating, “This significant trial will provide an American test bed for the next generation of innovative, high-speed Internet apps, devices and services.” While critics, however, believe that this is just another ploy of Google to remain the dominating hand on the industry. To critics, this is just another example of the internet search company using its money and industry influence to help shape the future of the Internet to its liking. Google announced its plans for a high speed network just as federal regulators were debating new rules for the Internet and preparing a national broadband plan commissioned by Congress that could call for higher-speed networks to be available nationwide. Chairman of Netcompetition.org, Scott Cleland, said, in response to Google’s “beat them to the punch” announcement, “This is mainly a P.R. stunt, with one hand Google is urging regulations that stifle broadband deployment, and with the other hand, they are saying that telecommunication companies should spend hundreds of billions to give ultrafast internet service to all Americans.” Despite the controversy, Google is set to fulfill its announcement with the a futuristic vision of the Internet, that includes live streaming of 3-D medical images from a rural health clinic to a specialized medical center and downloading of a full length movie in a matter of minutes and much more.
In my opinion, the competition that would be created if Google succeeds in establishing such a high speed network is much needed in the Internet Service Provider industry. The premise of the internet was to provide people with the ability to gather “instant” information, but in comparison to the speed of internet services in other developed countries such as Japan, Denmark and Sweden, American internet services seem rather “sluggish.” So, if Google’s success provides the necessary jolt for internet service providers to improve their services then by all means Google should continue. Also, I disagree with critic’s assumption that Google is trying to monopolize the industry. In one class session, we discussed traits that are attributed to successful business. Some words were visionary, efficient, adaptable, innovative, dominant and effective, all of which describe Google. Google is a business that wants to stay in business; therefore, they must to all things to maintain their relevancy and effectiveness. Google developers notice that Broadband speed in the United States lagged far behind those of other developed countries; in order to maintain the upper hand in the internet industry they have developed the fiber optic broadband system. This is not a public relations stunt for Google, but in fact, an example of them utilizing the Business Continuity Planning in order to remain a successful business. Developers analyzed a problem and organized and designed a strategic plan that would solve the problem. At this stage, before implementing the plan, Google must test to ensure the effectiveness and efficiency of the plan. Change and innovation is what keeps businesses going, so, if Google has developed something, other companies need to follow suit.

Dell acquires Kace Networks

On Thursday Dell announced that the company would acquire the security vendor Kace Networks, which is a popular systems management program. In buying Kace Dell hopes to "expand its system management offering for small- and medium-sized businesses."[1] Kace specializes in providing security to mid-level businesses and Dell hopes to generate greater return on investment by allowing Kace Networks to expand operations within Dell's company. Dell did not comment on any potential layoffs from the acquisition and plans to keep Kace in tact by continuing operations from the company's headquarters in Mountain View, California. By making this move and keeping Kace's operations separate from their own, Dell hopes to cater to the medium businesses while keeping its customer service relationship high with sustained efficiency.

This was a smart investment for Dell to make, it allows them to build new relationships with more clients in different markets while managing the new wing of the company from a distance. Security issues are ever increasing for every company and the need for more efficient system management is obvious for businesses across the board. Kace's Kbox series gives Dell the ability to automatically update servers and software from a distance giving its clients an easy way to save time and money. Dell will gain an advantage in the smaller markets over other companies like IBM and HP who manufacture similar system management tools for larger companies. Dell will also be able to make Kace's manufacturing much more efficient allowing them to build on the existing relationships that Kace has established with smaller firms. Kace's former CEO Meinhardt said that, "For our customers this translates to increased product development investment, greater international support, and higher levels of support that come with joining forces with one the world’s leading technology companies,"
[1] Kace should expect to see rapid development from the merger and its clients should see substantial advances from the move making this beneficial for all parties involved.

This move was clearly aimed at making new relationships with customers for Dell and goes along with the idea that most companies going forward need to find ways to increase customer satisfaction. Not only does the merger coincide with customer service, but also with the growing trend of being consciousness of network security. By making this move Dell is trying to make higher level system management tools available to smaller businesses. This would appeal to the small businesses who need the opportunity to implement new servers and the availability of multiple system management tools without the need of adding new positions or rearranging their operations to maintain the network. The implementation and ease of use for Kace's systems is a big reason that companies choose the Kbox series and will only improve with Dell's funding. "KACE says most of its customers have deployed their KBOX appliances in a week or less, and almost two-thirds said the products paid for themselves in less than three months."[2] If medium size businesses return their investment that quickly it would be hard to imagine that Dell would not gain from this investment in Kace Networks.

Article:[1] http://www.infoworld.com/t/mergers-and-acquisitions/dell-acquires-systems-management-vendor-kace-044
Additional Sources:
[2] http://blogs.zdnet.com/BTL/?p=30687

iQor looks to save costs by using thin clients

Last semester when I went to work, I would see the tradition blueprint of any company, including Loyola- individual offices with their own PCs. I imagine if you walk into any company, you would most of the time see cubicles all with their own desktop PCs or laptops. Working at Loyola, I do know that the individual computers all have their own C drives where they store data on their computer, and then there are also network drives, which are shared by the computers in a given department.
Seeing this as the traditional model, a company, iQor, a call center company, has decided that individual PCs were too much of a hassle to maintain, for "50 cents on the dollar maintaining it", says Vikas Kapoor, the CEO of iQor(1). For a whole PC, this is A LOT of money every year. Loyola has a call center, "phone-a-thon", that operates like this- individual PCs for every phone line. Each call station has its own computer, its own cpu, monitor, keyboard, and mouse. The program that lets users call is shared by a central server.
Seeking an alternative, iQor has opted for thin clients- what they call "lollipops"(1). These are stripped down computers that aren't equipped with hard drives(1). These "lollipops" rely on a central server for most of their functions, processing and storage(1). This is much like the client/server model that has been discussed in class. This model, especially for a company like this, is much more efficient than the traditional model. For iQor, they have a lot of information- phone numbers, addresses, probably social security numbers- for a long list of clients. If everyone has access to that information in their call center, it will make it much more efficient. No more asking around to get information, or a report on a client. Now employees are empowered and have all client information at their disposal. Also, if the "lollipop" fails, you throw it out and get another one(1). The article I read doesn't give it a price specifically, but there are pictures attached to the article that suggest thin clients go for around $ 200. The thin clients also use way less energy than a PC computer. Besides, what would a calling associate have to do other than make and receive calls? Not much on a traditional PC is needed for this business employee. In addition, for the most part, people don't use nearly all the hard drive space that is given to them on a computer. So, in addition to time, energy, and accessibility, the thin client model improves hard drive storage space for iQor.
However, a downfall of this model is that if the server goes out, all of the "lollipops" are out of order. Without the server, the "lollipops" can't do any work. This makes the server the most vulnerable and targeted area when hackers try to hack into a business. Installing the new thin clients might take some time, as well as disposing of the PCs while maintaining their stored data. Transferring data as well from the PCs to the server might take a considerable amount of time as well.
In addition, iQor has made this decision to cut costs. iQor "expects to cut its IT staff to about a quarter of its previous size"(1). Some people might look at this statement and say, "bad- it's a bad economy, people are losing jobs". This is the approach if you don't want to critically think about the good that can come out of this. The company becomes more efficient. IT adds only secondary value to a company usually. If costs can be cut in this division, they will be. This will free up considerable capital for the company to use, whether it be through reinvestment, dividends, or paying its employees more. In addition, all the IT workers that will be cut will find new jobs. IT is obviously a rapidly growing field so there should be no problem for them, even in this economy. In addition, when people are laid off, they either sulk or they get moving on a new job- or a new idea. Lay-offs can foster new business ideas- way to make businesses more efficient, or in some cases, new ideas all together-sometimes revolutionary.
Loyola could easily implement this client/server model to its campus call center. This would make the center more efficient, use less energy (Loyola claims to be going green), and cut maintenance costs it could incur. It would probably be easier to have everyone able to access the same data at any time. The thin client model makes companies, and particularly iQor, more efficient and can help spur more growth within a company through lower costs for the IT sector of a company.

See article:

King, Rachael. "Companies seek alternatives to the old desktop PC," BusinessWeek, January 4, 2010, http://www.businessweek.com/technology/content/jan2010/tc2010014_392808.htm (accessed February 11, 2010).

End notes:

1. King, Rachael. "Companies seek alternatives to the old desktop PC," BusinessWeek, January 4, 2010, http://www.businessweek.com/technology/content/jan2010/tc2010014_392808.htm (accessed February 11, 2010).

Pegasystems Inc. Releases Revolutionary CRM System

Legacy Customer Relationship Management systems have been found as a hindrance in many businesses as they try to retain customers and increase profits, forcing them to resort to other cost saving initiatives such as decreasing operational spending. A major global survey based on international businesses across the UK, Europe, and the U.S. found that “62% of respondents saw differentiating their value proposition by customer service rather than by product as essential” (1). Furthermore, it was found that 74% of customers were “very likely” to buy more from a company who’s service was excellent and went above and beyond that which was expected.

Call centers were found to be one of the major issues with existing CRM systems held by the companies in the survey. Only slightly more than half of the businesses surveyed have a CRM system that goes beyond the call center, and “only two in five have customer service represented at the board level” (1). Pegasystems Inc. has created a process-driven CRM system that allows a business to “look across the whole organization as a part of a fully joined-up, end-to-end process, in dealing seamlessly with the customer’s issue”(1). A business can achieve this customer relation method either by completely transforming their existing enterprise, or through an extended process of implementing new systems with the old, both of which are cost effective, quick, and provide “customer service benefits”(1).

The Pegasystems’ Customer Process Manager is built on its “SmartBPM platform” which allows businesses to boost operations, transform the customer experience, and reach new markets, which was found to a be another major problem with existing CRM systems in multi-national firms. Alan Trefler, CEO of Pegasystems Inc. believes that “Because of the rising debt levels in the US, businesses will use information technology to boost productivity and fuel growth”(2). They will also need to reach new global markets because of the “tapped-out US consumers” (2) who were previously their main source of growth.

I feel like the CRM by Pegasystems Inc. is a strong solution to the constantly evolving customer. It is “outside-in” (3) focused rather than “inside-out”, meaning it is entirely devoted to meeting the needs of the customer and not selling more goods and services to achieve growth. The new CRM system “eliminates callbacks and reworks” (3) and provides “consistent customer experience across all interaction channels”(3). I have had countless bad experiences with call center customer service in the past with companies such as Verizon and Comcast, and it definitely had a negative impact on those respective companies. Aside from the actual systems and products of Pegasystems Inc., which prove to be superior to most existing systems in assisting other companies grow, it is important to realize the growth of Pegasystems Inc. itself. Knowledge Rules Inc., a “highly specialized consulting organization focusing exclusively on Pegasystems rule-based technologies in workflow, BPM and CRM applications” (4) has earned the 1141 position on the 2009 Inc. 5000 list of the fastest growing private companies in America. In another article entitled, “TechWeb’s Intelligent Enterprise Announces 2010 Editor’s Choice Winners Showing Exceptional Vision, Innovation and Leadership”, Pegasystems Inc. Was awarded third place for “Companies to Watch”(5). It seems that Pegasystems Inc. is growing as fast as the companies it provides its services to.


References


1.“Traditional CRM Is Not Delivering Desired Customer Experience Transformation,” Wall Street Journal- Market Watch, February 9, 2010, http://www.marketwatch.com/story/traditional-crm-is-not-delivering-desired-customer-experience-transformation-2010-02-09?reflink=MW_news_stmp, (Accessed February 10, 2010)

2. Robert Weisman,“What will business as usual look like?” Boston Globe, March 15, 2009, http://www.boston.com/business/articles/2009/03/15/what_will_business_as_usual_look_like/, (Accessed February 10, 2010)

3.“Six Competitive Differentiators for Delivering a Better Customer Experience,” Pegasystems Inc., February 1, 2010, http://www.1to1media.com/view.aspx?docid=32162, (Accessed February 10, 2010)

4.“Explosive Growth in Pegasystems BPM Software Fuels Rapidly Emerging Market for Knowledge Rules,” Knowledge Rules Inc., December 18, 2009, http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docKey=600-200912171548PR_NEWS_USPR_____PH28200-30RSQRFG1H92MRIS4MPQKEPOC2&provider=PR%20Newswire&docDate=December%2018%2C%202009&press_symbol=227325&scp=3&sq=pegasystems&st=cse, (Accessed February 10, 2010)

5.“TechWeb’s Intelligent Enterprise Announces 2010 Editor’s Choice Winners Showing Exceptional Vision, Innovation and Leadership,” TechWeb, February 11, 2010, http://finance.yahoo.com/news/TechWebs-Intelligent-prnews-2709093336.html?x=0&.v=1, (Accessed February 11, 2010)

Qatar Steel Chooses GE Intelligent Platforms Proficy Software to Increase Efficiency and Decrease Costs

Since the 1970's, the Middle East has become an important region of the world with regards to the steel production industry. Forbes recently published an article, entitled "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production," which explains that Qatar Steel, a forerunner among Middle Eastern companies in the production of raw steel, recently announced its plan to implement GE Intelligent Platforms Proficy(R) Software "to provide a complete production management solution designed to improve operating efficiency through a reliable and optimum production process" [1]. The software focuses on collecting data from various systems involved in the production process to allow Qatar Steel to more effectively monitor important measurements of performance.

Qatar Steel was named one of the top four steel producers in the Middle East in October 2008, and, according to its website, it has "garnered a reputation for unrivaled quality, flexibility and reliability" [2]. The article claims, "The Middle East is expected to produce over 60 million tons of raw steel by 2010" [3], which is supported by Director and General Manager of Qatar Steel, Sheikh Nasser Bin Hamad Al Thani, on the company website. Even as a forerunner in a growing and very profitable industry, Qatar Steel needs to find ways to stay ahead of the competition. That is why the company signed a contract with GE Intelligent Platforms to use IT in order help it gain a competitive edge in the steel production industry.

According to Malek Hamdieh, Manager of IT for Qatar Steel, the contract with GE was offered after "an exhaustive evaluation process including current and future requirements analysis, return on investment scenarios and implementation methodology" [4]. It is worth $2 million and spans 14 months, which is how long it will take to implement the software solution. The solution will solve the main problem in Qatar Steel's production plant, which is monitoring the input of raw materials into the plant, an essential aspect of maximizing efficiency. I like how the article gives details of the contract and lays out exactly what problem the Proficy Software will be solving.

The article does not stop at "what", however; it goes on to explain how the software will positively affect the production process. Quotes from various company executives and a short explanation of how the software works give insight into the specific ways in which the Proficy Software will increase production efficiency and decrease time spent locating and streamlining information.

At the end of the article, a brief synopsis of the functions of the Intelligent Platforms division of GE is given, which gives the reader a broader sense of the importance of IT, whether used in business or otherwise. For example, the United States Military uses "GE Fanuc vetronics solutions" in "ground combat vehicles" which allows them to be "more maintainable and more inexpensive" [5]. For Qatar Steel, the Information Technology provided by GE helps it keep a competitive edge, but for other clients, including those involved in protecting the environment, GE provides IT that is solving major world problems.

Link to the article:
http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html

References:
[1] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[2] "Qatar Steel Named in Top Four Steel Producers in Middle East." Qatar Steel. 19 Oct. 2008. Web. 11 Feb. 2010. <http://www.qasco.com/news/detail.php?ID=922>.
[3] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[4] Ibid.
[5] Howard, Courtney E. "Warfighters call for innovative, responsive, and reliable vetronics in combat vehicles." Military & Aerospace Electronics Magazine Online. Web. 11 Feb. 2010. <http://mae.pennnet.com/display_article/367892/32/ARTCL/none/EXCON/1/Warfighters-call-for-innovative,-responsive,-and-reliable-vetronics-in-combat-vehicles/>.

IBM Launches Academic Cloud to Speed Delivery of Technology Skills to College Students

With hopes of establishing a future workforce which possesses a firm knowledge and understanding of technology and the benefits so often associated, IBM unveiled plans for an Academic Skills Cloud Monday in New York City, plans which include the installation and maintenance of IBM software to academia for no fee. Following in the wake of IBM’s Cloud Academy initiative for educational institutions, the Academic Skills Cloud draws on the concept of cloud computing or “delivering Internet-based information and technology services in real time (2).” Utilizing these resources, IBM anticipates academia will develop necessary work force skills in students attempting to enter the work force in the future.

Thus far, many analysts of the Academic Skills Cloud find only the inherent advantages associated with implementation of the software. Professors can more easily demonstrate the current technology skills and the application of these skills to decision-making. Additionally, group and long-distance learning programs are much easier to conduct, serving to enhance learning experiences for students. Students now have access to IT curricula and courses from almost any location with the Academic Skills Cloud. The incorporation of the software onto campuses across the nation will undoubtedly free-up existing university technology infrastructure resources. However, I find the most important benefit the program lends students is the ability to stand out from the thousands of graduates across the nation each year when applying for jobs through acquisition of essential IT skills so many now lack as businesses become much more technology oriented in their approaches (1).

IBM seems to assure that the integration of the Academic Skills Cloud will lead, quite directly, to the transformation of the typical and ordinary college graduate of today into the tech-savvy and differentiable global entrepreneur of tomorrow. Such a transformation is extremely important as more businesses and firms are voicing their desire for employees possessing an ability to apply technical skills to any part of their organization. Jim Corgel, the general manager of IBM’s Academic Initiative, professes that, "Businesses today are looking to the technology industry and academia to produce a highly skilled workforce that can help drive transformational projects and solve industry-specific problems (3)." Seemingly, IBM’s Academic Skills Cloud is intended to produce the workforce which Corgel describes through an upper level education which employs technology to such categories as “information management and business analytics, digitized patient records, and clean technologies (1).”

I find it extremely sensible for IBM to not only offer part of its extensive software portfolio to academia to more easily allow the incorporation of technology into curricula, but to do so for no charge. With the goal of the Academic Skills Cloud remaining as the production of a workforce possessing the ability to apply technical skills across a firm, IBM is taking proactive steps to increase their own competitive advantage and to establish a strong foundation in their industry. The implementation of the Academic Skills Cloud will ultimately produce a more knowledgeable workforce, a workforce aware of the extreme importance firms are now placing on the incorporation of technology into everyday operations. The individuals entering into this workforce will be many of the same individuals seeking a job position with IBM in the future. Thus, a program such as the Academic Skills Cloud will limit the amount of time needed for IBM to train incoming employees, as many will already own the skills IBM seeks to establish. Reducing training time cuts overall costs for the firm whilst simultaneously granting more time for research and development.

References
(1) Tetpon, Sean A. "IBM Launches Academic Cloud to Speed Delivery of Technology Skills to College Students." CNNMoney.com. 10 Feb. 2010. Web. 11 Feb. 2010. .
(2) "Cloud Computing." IBM Academic Initiative. IBM. Web. 11 Feb. 2010. .
(3) Barrett, Larry. "IBM Launches Academic Cloud." InternetNews.com. 10 Feb. 2010. Web. 11 Feb. 2010. .

Wednesday, February 10, 2010

IBM Releases Power7 Processor

Just the other day, IBM announced the release of their new and improved Power7 processor. This new server is said to "enable clients to manage current applications and services at less cost with technology breakthroughs in virtualization, energy savings, more cost-efficient use of memory, and better price performance" (1). This new chip is said to have 8 cores which will allow the processor to run up to 32 tasks at the same moment in time. IBM is claiming this new processor to be "the world's fastest processor" (2). One of the reasons for IBM coming out with this new processor is the growing competition in the technology industry. Right now, there are so many different ways to obtain information, but the consumers have difficulty actually learning from their research. Therefore, IBM has set out to develop a more simplified, yet power performance processor.

An article related to IBM's new development discusses how "in data-center computing, the big trend today is to move from building blocks to bundles" (2). The question is whether or not this is going to be beneficial to the consumers. On IBM's website, they neglect to mention the price of this new processor saying only that it will be priced accordingly with the competitor's. However, after more research, I was able to find that the Power7 processor is priced at $190,000. IBM's target industries for this new product are specifically those involved in finance as well as scientific researchers. An example in one article came from the vice president of IT at Rice University who specializes in cancer research claiming that cancer will one day be the lead killer of people. Khan said that after using the new Power7 processor, they are already seeing benefits because they are constantly doing data analysis and the new system is helping to provide the results quick and more efficiently. I was also able to find that IBM is hoping to come out in the future with just as efficicent systems, but ones that will be more afforadable and aimed at email and web applications.

The new process is a smart grid designed to help consumers learn more about their own actions so to avoid expensive costs. "The goal of smart grids, which governements are starting to heavily subsidize, is to give households and businesses timely information so they can change their electricity consumption habits to reduce energy use and pollution, and save money" (2). I think that this is a powerful attribute especially with the world today all involved in the "go green" campaign. After reading several articles, it seemed that a lot of the new technology was trying to be developed in an envirnonmentally friendly order.

I think that IBM's new Power7 processor is going to be a success because organizations and industries are constantly working with data and trying to analyze this data, but are often found overwhelmed with it all. This new processor could potentially change that problem. I found it especially interesting to learn that cancer researchers at Rice University also use the Power7. To know that this new processor is helping speed up cancer research is definitly beneficial not only to the researchers, but the world as a whole. It could even mean that a cure is closer to being found. I think that developing the Power7, it will help IBM to stay on top in the technology industry as well.

References:
1. "IBM Unveils new Power7 Systems to Manage Increasingly Data-Intensive Services" 8 February 2010.http://www-03.ibm.com/press/us/en/pressrelease/29315.wss (Accessed February 10, 2010).
2. Steve Lohr. “Bundling Hardware and Software to do Big Jobs.” The New York Times. 8 February 2010. http://www.nytimes.com/2010/02/08/technology/08blue.html (Accessed February 10, 2010)
3.
Darryl K Taft. “IBM Aims New Power7 Systems at the Smarter Planet.” 8 February 2010. http://www.eweek.com/c/a/IT-Infrastructure/IBM-Aims-New-Power7-Systems-at-the-Smarter-Planet-217284/ (Accessed February 10, 2010)