Business Strategy for Software Executives
February 24, 2009
The Disruptive Power of Virtualization
Few vendors appreciate the potential for virtualization technology to remake large parts of the IT industry, impacting the markets for server software, storage and beyond.
By George Gilbert and Juergen Urbanski, Tech Strategy Partners
Everyone in The Valley knows that virtualization software from vendors such as VMWare, Microsoft and Citrix can be used to consolidate underutilized servers. Many also realize that virtualization creates a new platform for delivering high availability and disaster recovery at radically lower cost and complexity. Few though fully appreciate how virtualization will completely upset the status quo in markets as diverse as databases, middleware, systems management software and storage. How much of that ripple effect will lead to a disruption of existing markets vs. creation of entirely new markets will be of vital importance to vendors such as Oracle, IBM, HP, CA, BMC, Symantec, NetApp, EMC, DELL and many others.
This article examines the economic impact of server virtualization across key parts of the IT stack and concludes that, among other effects, virtualization creates unprecedented pressure on the database and middleware business and threatens to crack open the storage industry.
Guy Smith takes a look at the forecast for business intelligence in the cloud and finds a hole in the market in this post to the SandHill.com Blog on cloud computing.
The Collaboration Conundrum
Enterprise 2.0 models are changing the way companies do business – and supply chain interactions are no exception. Ken Lyon of BitLogic explains why adopting social networking models as the basis for supply chain data exchange will provide benefits to all participants in this post to the SandHill.com Blog on Enterprise 2.0.
Publish Your Perspective!
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DON'T MISS: What’s Different About M&A in this Downturn
M&A may be more resilient in this downturn than in previous ones, but it will be a different kind of M&A. Find out how in this article from The McKinsey Quarterly.
News Update: Movement in M&A
SAP swoops in for a downturn deal; plus India commiserates at Nasscom, HP avoids layoffs and cloud computers will double. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Virtualization’s Impact?
How will virtualization impact current enterprise software leadership?
Last week, readers picked the R&D strategy that will have the greatest impact.
More at SandHill.com:
IBM plans IT center in Dubuque – and job applications pour in.
OpSource receives $10 million.
Outsourcer Aragon buys Krugle.
Grant Wagner named president and CEO of XML software developer Formatta.
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