lustratus REPAMA

Posts Tagged ‘applications services management’

I’ve just uploaded the first draft of my latest Cloud Computing REPAMA Segment Analysis Study.

This time I’ve looked at a couple of vendors in the Cloud Software / Cloud Management / Application Services Management segment (using the Lustratus REPAMA Cloud Computing market taxonomy / segmentation model). Specifically I’ve reverse-engineered the key go-to-market strategies of 3Tera and Appistry. I will add another couple of vendors to the study as time goes on but for the moment I thought these would be two good candidates to start with. They are very different companies with very different product approaches to solving similar, if not quite the same problems. I wanted to spend a little time here highliting some of the interesting findings.

Differentiation

I’ve already blogged on my concern that Cloud Computing vendors/ providers are currently differentiating themselves against previous paradigms as opposed to creating differentiation strategies versus their real competitors – i.e. other cloud computing solutions. So it’s no surprise to see that this trend continues in this study with 3Tera. Looking at where 3Tera fires its competitive differentiation fire power in the UNLIKE element of the positioning statement we can see that the focus is:

traditional dedicated infrastructure

To be honest this is an implied competitor/alternative because whilst 3Tera is very clear on its value proposition and target audience, it doesn’t appear to engage in traditional competitive differentiation. Nowhere does 3Tera clearly define what type of solution they feel they are a better alternative to. There is an obvious implied competitor / alternative which is the traditional ways of doing things. But this is never called out explicitly by 3Tera.

Appistry is clearer on its competitive situation. It believes that its competitive differentiation lies versus:

infrastructure approaches to cloud computing

The implication here is that Appistry focuses on the application and not the infrastructure which they believe yields many benefits.

Existing Applications

One area of strong correlation between the vendors in this study is that they both stress their ability to work with existing applications. This correlation suggests that this is a key customer requirement in this particular market segment. As shown in the chart below:

As you can see from the dashed pink line on the chart above (which represents the market mean – the average marketing strategy for this segment) there is strong support for existing applications in addition to the somewhat obvious “table stakes” feature of automated application deployment and management.

Value Proposition

Another strong area of correlation is in the value proposition. The first chart below shows the raw claims made by each vendor for the value they ascribe to their product offer.

Much of these categories of benefit/value are fairly generic and are all very similar to the the value propositions I would expect to see for a cloud computing product. When these value propositions are interpreted against our MITICOR value proposition classification, we can see a very strong correlation between the products of the different vendors as the chart below shows.

The value proposition for both of these products boils down to operational improvement and cost saving which again is very much as I would expect for a cloud computing technology in this segment.

Positioning Statements

I’m not completely 100% happy with either of these positioning statements as both of these companies appear to aim everywhere and focus nowhere. This lack of focus is important to note in itself as it is common in immature markets, but it does make nailing down a semi-accurate reverse-engineered positioning statement a little tricky. But here they are:

3Tera AppLogic Positioning Statement

FOR organisations looking to deploy successful online services to millions of users WHO are struggling to manage the complexity of the infrastructure required to serve online services to online users OUR AppLogic IS A grid operating system for web applications THAT PROVIDES the ability to assemble existing software into portable applications that run on any grid and scale from a fraction of a server to hundreds of servers with a single command UNLIKE traditional dedicated infrastructure OUR PRODUCT makes it extremely easy to deploy scalable web applications without dedicated IT resources and personnel

Appistry CloudIQ Platform Positioning Statement

FOR enterprises seeking to take advantage of cloud computing WHO need to migrate existing applications to the cloud and virtualized environments OUR CloudIQ Platform IS A Cloud application platform THAT PROVIDES enterprises with the ability to move multiple existing applications to the cloud and manage them across multiple cloud environments UNLIKE infrastructure-focussed approaches to cloud computing OUR PRODUCT allows existing applications to be packaged and deployed to a cloud without re-architecture

Both statements are weak in the target customer and their respective pain, need or desire reflecting the lack of clarity in their outbound marketing.

Slides

I’ve placed a slide deck which expands upon this research on Slideshare.net and this is embedded below. If you’d like more information on this study or a copy of the slides, please contact me. Details of  how to interpret REPAMA studies can be found in the Lustratus REPAMA Guide here.

Danny Goodall

Steve and I had an interesting and refreshingly different call this morning with GigaSpaces.

They had reached out to us to make sure we knew all about them so that they could be fully represented in each of the categories in our cloud computing market landscape / segmentation / taxonomy where they have a solution.

And after the call I can see that instead of just being in

• Cloud Software / Compute

They also have a valid claim to

• Cloud Software / Data

and may be even

• Cloud Software / Cloud Management ( /Application Services Management )

This raised a bit of a dilemma for me. I certainly want to represent vendors and providers accurately in the segmentation model but I want to avoid vendors appearing in lots of different segments just because they believe that some esoteric feature or other qualifies them.

Instead I want the segmentation model to reflect where the vendor/provider specifically and actively addresses a market need with a specific capability and value proposition. So if I hear from a vendor/provider “yes we can do that too”, I’m reluctant to simply add them to a segment. After all the motivation behind producing the segmentation model was to remove some of the confusion present in the Cloud Computing not to perpetuate it.

So I think we’ll need to reflect on what we heard this morning from GigaSpaces and think how best to represent those vendors in our market segmentation document that have a single product with broad capabilities. Having said that I think there is enough about the XAP proposition that means I will be adding it to at least one more segment of the market landscape.

Anyway, the refreshing part of the call was that GigaSpaces’ marketing seems to focus on what they can do for organisations rather than simply placing the “Cloud Computing” term before, after and in the middle of their product name everywhere it appears. In fact you have to go digging on their web site to find references to the cloud-enablement features of their product line. I’m not sure whether they have taken this approach consciously or if it is that they’re not sure how best to position their offering in the cloud market. The risk I guess is that as they are not positioned specifically as a cloud computing vendor, they may not be placed on clients’ long lists. But it certainly differentiates them and different is usually good unless you’re selling 8-fingered gloves.

These calls with vendors are useful for many reasons but mainly to test some of my assumptions. As with many of the products and companies I have looked at in compiling the segmentation model, I had “assumed” that I knew what the product was and what it did. It turns out there are many more strings to XAP’s bow than I had at first realised. I knew GigaSpaces as a purveyor of extremely scalable application servers but that, it turns out, is only half the picture.

One interesting feature of GigaSpaces’ XAP product is its application services management layer (my term not theirs – they use application management services!). This layer understands service level commitments for the infrastructure as well as the applications that are deployed to it. It’s common practice for the infrastructure to “understand” the service level that is expected from the infrastructure itself – usually measured in CPU percentages, data volumes or some such. However it’s not so common for the infrastructure to understand the commitment that the application developer has made about the service level that the application will deliver. These application layer service levels are usually described in some business metric and to then have the infrastructure react to automatically provision more infrastructure to meet the business’ requirements to ensure that application SLA commitments are met is a certainly an interesting claim. One that we will dig into a little further over time. GigaSpaces’ Jim Liddle explains a little more here – whist also picking a fight with TIBCO over whether its claim that “self-aware elasticity” is something unique to Silver.

Interestingly, it appears that with a number of GigaSpaces recent Cloud Computing customer wins (they claim to have 75+ “cloud” customers) they have in fact used this application management services layer to control and manage Amazon’s EC2 infrastructure. This ability to manage application services outside of its own compute infrastructure goes some way to answering my rhetorical question of whether any vendors were focussed on providing a pure play layer for application services management. It appears that there are.

So I’ll make some changes to the segmentation model in light of our conversation this morning and I’ll also keep an eye on how GigaSpaces’ cloud proposition develops – specifically following their Platform as a Service partnership with ServePath’s Go-Grid announced earlier today.

Danny Goodall