The Birth of Enterprise 2.0
More than simply Web 2.0 applied to business, the synthesis of new technologies, models and mindsets will revolutionize corporate computing - and the software industry.
By M.R. Rangaswami, Sand Hill Group
Sep. 01, 2006
At Sand Hill Group, we've watched the enterprise software industry move in and out of the spotlight. Since launching the Enterprise conference in 1998, we've listened as software CEOs and experts have debated the industry's opportunities and shortcomings.
One by one, technologies, models and vendors have emerged that have had a dramatic impact on the future of the industry: open source, offshoring, services-oriented architecture (SOA) and software as a service (SaaS). Most recently, the buzz about Web 2.0 has moved to its potential in the business world.
The future of corporate computing is starting to come into focus. Rather than one single trend taking the lead, Enterprise 2.0 will be the combination of all of these new technologies and models. It will re-shape the CIO's philosophy about IT - and it will transform the way vendors build and sell software.
What is "Enterprise 2.0"?
It is now well understood that the software industry is undergoing a dramatic revolution. What started a few years ago as the emergence of ground-breaking market shifts is now coalescing into a new vision for using and buying software.
Debate about the exact definition of "Enterprise 2.0" has been vigorous and will continue for some time to come. The fact that publications, blogs and discussion groups have hosted a variety of positions on the topic will serve at first to enhance confusion but will eventually lead to a crystallization of what lies ahead.
Wikipedia ignited controversy by deleting the term "Enterprise 2.0" (it is now being considered for inclusion a second time.) Part of the reason Wikipedia deleted the term was that it was too commercial. The reality couldn't be farther from the truth. Just as e-commerce, Web 2.0 or "Software as a Service" has laid the foundation for the birth of an entire sector-full of product lines and new companies, Enterprise 2.0 will do the same.
The most common definition of Enterprise 2.0 has involved the application of Web 2.0 technologies in the enterprise. As Ray Lane articulated earlier this year, indeed, Web 2.0 has significant implications for the buyers and sellers of enterprise technology which will re-draw the outline of the software landscape .
The reality is something far more.
The Big Picture
Enterprise 2.0 is more than just Web 2.0 for business. Enterprise computing is far more complex than personal computing. It includes legacy environments, innumerable vendors, mismatched data sources, stringent regulations and far flung users. While Web 2.0 can deliver genuine advantages for both business users and consumers, the real "Enterprise 2.0" will encompass a far broader and more complex vision.
Enterprise 2.0 is the synergy of a new set of technologies, development models and delivery methods that are used to develop business software and deliver it to users.
Whether created by software vendors, internal IT departments, line-of-business units or service providers, the software of Enterprise 2.0 will be flexible, simple and lightweight. It will be created using an infinite combination of the latest - and possibly, some old-fashioned - ingredients, including the following:
Some experts have argued that we can't move to Enterprise 2.0 until we fix version 1.0. Only by taking a broad, holistic view of the business IT systems in place today and looking forward, beyond their constraints, will we be able to tap the necessary technologies and models to bring Enterprise 2.0 to life.
One by one, technologies, models and vendors have emerged that have had a dramatic impact on the future of the industry: open source, offshoring, services-oriented architecture (SOA) and software as a service (SaaS). Most recently, the buzz about Web 2.0 has moved to its potential in the business world.
The future of corporate computing is starting to come into focus. Rather than one single trend taking the lead, Enterprise 2.0 will be the combination of all of these new technologies and models. It will re-shape the CIO's philosophy about IT - and it will transform the way vendors build and sell software.
What is "Enterprise 2.0"?
It is now well understood that the software industry is undergoing a dramatic revolution. What started a few years ago as the emergence of ground-breaking market shifts is now coalescing into a new vision for using and buying software.
Debate about the exact definition of "Enterprise 2.0" has been vigorous and will continue for some time to come. The fact that publications, blogs and discussion groups have hosted a variety of positions on the topic will serve at first to enhance confusion but will eventually lead to a crystallization of what lies ahead.
Wikipedia ignited controversy by deleting the term "Enterprise 2.0" (it is now being considered for inclusion a second time.) Part of the reason Wikipedia deleted the term was that it was too commercial. The reality couldn't be farther from the truth. Just as e-commerce, Web 2.0 or "Software as a Service" has laid the foundation for the birth of an entire sector-full of product lines and new companies, Enterprise 2.0 will do the same.
The most common definition of Enterprise 2.0 has involved the application of Web 2.0 technologies in the enterprise. As Ray Lane articulated earlier this year, indeed, Web 2.0 has significant implications for the buyers and sellers of enterprise technology which will re-draw the outline of the software landscape .
The reality is something far more.
The Big Picture
Enterprise 2.0 is more than just Web 2.0 for business. Enterprise computing is far more complex than personal computing. It includes legacy environments, innumerable vendors, mismatched data sources, stringent regulations and far flung users. While Web 2.0 can deliver genuine advantages for both business users and consumers, the real "Enterprise 2.0" will encompass a far broader and more complex vision.
Enterprise 2.0 is the synergy of a new set of technologies, development models and delivery methods that are used to develop business software and deliver it to users.
Whether created by software vendors, internal IT departments, line-of-business units or service providers, the software of Enterprise 2.0 will be flexible, simple and lightweight. It will be created using an infinite combination of the latest - and possibly, some old-fashioned - ingredients, including the following:
- Technologies - Open source, SOA/Web services (AJAX, RSS, blogs, wikis, tagging, social networking, and so on) Web 2.0, legacy and proprietary - or some combination
- Development Models - Relying on in-house, outsourced or offshore resources - or any combination; pursuing a global development strategy; and/or pursuing co-creation with users, partners or both
- Delivery Methods -Downloading individually; paying for a license; and/or, using on-demand/SaaS or via a service provider
Some experts have argued that we can't move to Enterprise 2.0 until we fix version 1.0. Only by taking a broad, holistic view of the business IT systems in place today and looking forward, beyond their constraints, will we be able to tap the necessary technologies and models to bring Enterprise 2.0 to life.
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