As heterogeneous computing starts to grow, intelligent networking will be the facilitators of smart enterprise systems architecture. Basically hardware vendors are beginning to put intelligent silicon on network adaptors. This provides the ability through deep packet inspection to realistically provide Network Function Virtualization (NFV) and true Software Defined Networks (SDN) as a part of hardware/software computing infrastructure. This requires an intelligent NIC, Software Defined Networks (SDN) & Web Services/Cloud Servers must be engineered to “be aware” of the intelligence in the hardware so that software can make smart choices based on business logic context.
Here is a copy of Ballmer’s internal email to all Microsoft employees:
From: Steve Ballmer To: MS FTEs Date: Sep. 2, 8:00 PM PDT (Sep. 3, 6:00 AM EET) Subject: Accelerating Growth
We announced some exciting news today: We have entered into an agreement to purchase Nokia’s Devices & Services business, which includes their smartphone and mobile phone businesses, their award-winning design team, manufacturing and assembly facilities around the world, and teams devoted to operations, sales, marketing and support.
For Microsoft, this is a bold step into the future and the next big phase of the transformation we announced on July 11.
We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together. Our Windows Phone partnership over the past two and half years has yielded incredible work – the stunning Lumia 1020 is a great example. Our partnership has also yielded incredible growth. In fact, Nokia Windows Phones are the fastest-growing phones in the smartphone market.
Now is the time to build on this momentum and accelerate our share and profits in phones. Clearly, greater success with phones will strengthen the overall opportunity for us and our partners to deliver on our strategy to create a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.
This is a smart acquisition for Microsoft, and a good deal for both companies. We are receiving incredible talent, technology and IP. We’ve all seen the amazing work that Nokia and Microsoft have done together.
Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we expect a smooth transition and great execution.
As is always the case with an acquisition, the first priority is to keep driving through close, which we expect in the first quarter of 2014, following approval by Nokia’s shareholders, regulatory approvals, and other closing conditions.
But I also know people will have some questions about what happens post-close. While details aren’t final, here is what we know, and how we’re generally approaching integration:
1. Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia, reporting to me.
2. Julie Larson-Green will continue to run the Devices and Studios team, and will be focused on the big launches this fall including Xbox One and our Surface enhancements. Julie will be joining Stephen’s team once the acquisition closes, and will work with him to shape the new organization.
3. As part of the acquisition, a number of key engineering leaders will be joining Microsoft from Nokia, reporting to Stephen in his new capacity:
· Jo Harlow, who will continue to lead the Smart Devices team
· Timo Toikkanen, who will continue to lead the Mobile Phones team
· Stefan Pannenbecker, who will lead Design
· Juha Putkiranta, who will lead the integration effort on Nokia’s behalf
4. Regarding the sales team, we plan to keep the Nokia field team, led by Chris Weber, intact and as the nexus of the devices sales effort, so that we can continue to build sales momentum. After the deal closes, Chris and his team will be placed under Kevin Turner. We will develop a single integrated team that is selling to operators, and there may be other integration opportunities that we can pursue. Kevin will work with Chris Weber and Chris Capossela to make those plans.
5. Our operating system team under Terry Myerson will continue unchanged, with a mission of supporting both first-party and third-party hardware innovation. We are committed to working with partners, helping them build great products and great businesses on our platform, and we believe this deal will increase our partner value proposition over time. The established rhythms and ways of working between Terry and his team and the incoming Nokia team will serve us well to ensure that we do not disrupt our building momentum.
6. We are planning to integrate all global marketing under Tami Reller and Mark Penn. It is very important that we pursue a unified brand and advertising strategy as soon as possible.
7. Finance, Legal, HR, Communications, DX / Evangelism, Customer Care and Business Development will integrate functionally at Microsoft. Sourcing, customer logistics and supply chain will be part of Stephen’s Devices organization. ICM / IT will also integrate functionally for traditional IT roles. We will need to work through the implications for factory systems given the differing manufacturing processes and systems at both Nokia and Microsoft.
8. We plan to pursue a single set of supporting services for our devices, and we will figure out how to combine the great Nokia efforts into our Microsoft services as we go through the integration process.
9. There are no significant plans to shift where work is done in the world as we integrate, so we expect the Nokia teams to stay largely in place, geographically.
10. Tom Gibbons will lead the integration work for Microsoft.
While today’s announcement is big news, we have to stay heavily focused on running the current business. We have a huge fall and holiday season ahead of us, so we need to execute flawlessly and continue to drive our business forward. I have no doubt we will.
Samsung is winning because of taking the time to invest in local stores and understanding the market. Watch Lenovo, Huawei, & Samsung swing the revenue streams that Apple desires from the PRC consumer to their P&Ls from Apple’s.
Both Intel and Google are eyeing the lucrative video delivery domain for possible new expansions. This area if done properly by these two giants could provide a major disruptive technology and business set of offerings changing the face of the computer and TV industries. This may become the major “big stakes” battlefield of the next-gen TV services domain space.
Apple is probably thinking in terms of the “next generation” TV service. With its feet already wet via You Tube, they are giving strong signals that hey are serious about becoming players in this domain.
If able to pull it off, Intel will evolve to the next instantiation of this historic enterprise. This launch (probably 2014-ish) will challenge Intel’s ability to break away from its old internal models and practices to re-invent the enterprise to deal with content as an additional vehicle to achieve revenue goals rather than just HW. If OnCue is allowed to operate as an independent company with separate iMBOs, they may have a chance. The new blood recruited from various media sectors can help if they are given free reigns to establish a separate Intel subculture. Has that ever really worked before for Intel????
This is a very interesting slide deck on Internet Trends. Specifically when you dissect digital media into audio, photo, video and audio you see we are just at the beginning of a huge growth in demand for Cloud Services to support our digital lifestyle. When you combine what we want digitally with how we use it and socialize using it, the volume of digital content will grow at an unbelievable rate through 2035. internettrends052913final-130529094939-phpapp02
The dramatic growth in smartphone, tablet and vertical market portable devices e.g., medical instrumentation is starting to drive major change at big tech companies. If you watch product offerings and new positioning of Google, Microsoft, and Apple, you’ll see that significant investments are geared toward the mobile consumer and mobile information worker. These products require new device technologies such as flexible silicon and Thin flexible substrates for interconnect technology.
A good example of this is the lighting fast reorganization of Intel after Brian Krzanich’s installation as CEO. Under Otellini’s tenure Intel missed a huge opportunity to become the chip supplier to Apple for iPhones even though the traditional conservative “number crunching/data driven” advice given to Paul Otellini went against his gut, Intel passed on the opportunity. Their analysis misjudged the potential volume by a factor of 100 and over estimated the costs of manufacturing. Basically the conservative mindset of “group think” there projected the iPhone as a losing business proposition. See here The new CEO has immediately reorganized the global enterprise to make it more agile and created a New devices Group reporting directly to him. See here
Hopefully this will open Intel up to address new markets and new types of Si architecture along with manufacturing processes. Also the industry will hopefully follow Intel’s lead and innovate even more in this hot technology domain When you look at flexible silicon and thin film technologies, the future is clear. New companies will grow to tech giants that embrace this technology and benefit from lessons learned from the old tech giants.
The information age has brought about the rise of a new type of technology company. These are companies where the products or services they produce/provide are intrinsically connected to the IT infrastructure required to sustain the enterprise’s day to day operations. Unlike a food processor where the consumer product is supported by technology but disconnected once it is consumed. In these enterprises, the consumer buys a product/service that links them back into the enterprise’s IT infrastructure and the company monetizes this connection in order to perpetuate business and seduce the consumer down the path to purchasing more and more offerings to leverage the established link.
Even giants like Microsoft are going this way by eliminating free Hotmailand replacing it with free online Outlookand SkyDrivespace in the cloud. Companies who identify their current reliance on IT as a part of their business value proposition will be able to take advantage of this fact to create strategic inflection points. They will use adjunct offerings that take the enterprise to a new level of revenue and profitability. “Quick” tactical offerings with IT infrastructure “come-along” benefits will seed the prime rose path leading the consumer to partake in future offerings built upon a baseline infrastructure. Emergence of these new Technology Giants will be driven by executive leadership recognizing that IT isn’t just a necessary evil but rather an important platform allowing the launch of never before revenue models and opportunities.
The IaaS and PaaS cloud models allow architects to decouple components of an application or enterprise system into the lowest functional components and design for failure how these pieces can be utilized as “independent black boxes” to form an application. This allows for provisioning elasticity and resiliency of individual components and their states in the inevitable event of hardware or software failure.
One of the least understood impacts of this approach is that the message queues used by components can become the most important elements in assuring availability, scalability and ultimate reliability. In essence the messaging infrastructure components become the most critical parts of an applications infrastructure designed to exploit elasticity. If you envision these Enterprise Apps as complex organisms, then the message queues and their reliability become mission critical organs of the living, agile enterprise architecture. Components such as controller apps, databases and such should be isolated allowing buffering of request along with replies making the network of components more durable and state independent facilitating failover and scalability.
There are key information systems that can affect the health and profitability of an Auto enterprise over the next few years. This is because the issues of global economics, competition and the need for agility put auto companies in a position that require ultimate flexibility and agile JIT systems. Commodity pricing and cost sensitive third party components also stress an enterprise’s information systems forcing consolidation, analytics and visualization all be properly orchestrated in order to turn raw data into meaningful, accurate, actionable information. Market complexity is rising as is costing pressure putting the manufacturer in a “tight profitability corner”.
Some Requirements of Auto plant IT systems
Auto enterprises will need holistic information systems that all the formation of factories that are digital in nature allowing management to make quick decisions based on multiple views of data engaged as meaningful decision support information. Because consumers are enamored with technology, software controls for electronic components are making autos a complex of silicon components demanding overall systems software integration. These systems can impact:
Product Design
Production
Plant Automation
Production Execution
Supply Chain Management (SCM)
If executed properly, good IT consulting can assist management to:
Speed the product design process,
Achieve faster time-to-production,
Enable increased manufacturing execution efficiency and production quality, and
Ease the management of design and production changes.
MES
Manufacturing Execution Systems (MES) essentially use intelligence about the manufacturing process to monitor, automate and guide critical decisions of the digital auto factory. The ultimate goal is to utilize manufacturing informatics to increase the ability of operations to respond in an agile and effective manner to any situation.
More Info…
In working at Intel and designing factory systems and management decision support systems we’ve learned many things that can apply directly to the auto factory. While working with the auto technology teams an Intel and Microsoft, we gained experience in how to integrate technology into the auto manufacturing process.
The influx of companies trying to exploit “Big Data” as a new revenue source has provided a number of workforce challenges for senior managers. Do they hire very smart math folk to devise new algorithms and create a “secret sauce” for their products? Do they develop or acquire superiors hardware that leverages new Si technology to better process big data? Do they form teams that have practical business experience to ferret out which real problems exist in the marketplace and what approach to analytics will be truly appreciated by customers’ end users?
Well the answer is … a little of each! The most important thing many companies are missing today is that they focus on the technology and technologist in their hiring decisions but not the business logic experience. There is great value in having teams of technology folk embedded with thought leadership coming from experience. Bright, eager, smart people, with minimal experience know theory and math but don’t know human behavior in business. They also don’t have the understanding of the technology assimilation hurdles that form huge barriers to rapid adoption and market share growth. The targeted customer base will often need help understanding:
How much data do we have?
What is actionable information contained in the big data fog?
How much information do we need to make decisions?
What changes in data are significant and require action?
What is a practical “on ramp” to use big data technology?
The bottom line is an integrated team of smart technologist stewarded through development with experienced thought leadership will result in the “BIG THEORY” required to make big data solutions palatable and easily digested by the human organism we call an enterprise. Where in reality, meaningful mobile visualization transforms BIG DATA into actionable information.
As heterogeneous computing starts to grow, intelligent networking will be the facilitators of smart enterprise systems architecture. Basically hardware vendors are beginning to put intelligent silicon on network adaptors. This provides the ability through deep packet inspection to realistically provide Network Function Virtualization (NFV) and true Software Defined Networks (SDN) as a part of hardware/software computing infrastructure. This requires an intelligent NIC, Software Defined Networks (SDN) & Web Services/Cloud Servers must be engineered to “be aware” of the intelligence in the hardware so that software can make smart choices based on business logic context.
