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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Worldwide focus on SMB and Channel Partners market research and industry analysis.

Anurag Agrawal

Lessons from a Business Focused CIO of an SMB

Jagdeep RandawaI first met Jag Randhawa at Dell World. It was a meeting organized by Dell Analyst Relations to showcase Dell’s Cloud Business Applications. Unbeknownst to Dell Analyst Relations, we hardly discussed Dell. What struck me immediately was his smiling demeanor and an earnest desire to be a champion of business innovation and his views on what IT could do to spur growth through employee involvement and implementing new technology ideas.

We re-connected, ten months later at his office.

Jag Randhawa is the VP of IT at CAMICO Mutual Insurance Company, an SMB with slightly less than 100 employees. And he is the quintessential CIO who loves his job, his company and his fellow colleagues. He also showers high praise on Dell’s customer intimacy, likes VMware’s virtualization solutions and embraces Open source.

Specifically, he uses Dell for Network, Switches, PCs, Servers, Storage and is purchasing Microsoft Software. From VMWare, he uses their server virtualization technologies and software like VMotion and inventory management software for managing all the VM servers.

Cloud Focus

His is a Dell shop, to the extent that he has replaced all existing storage and security solutions with those from Dell. He and his IT team of twelve do not work with any channel partners. His philosophy – whichever applications that can be pushed to the cloud without compromising security of his customer data, just do it. And he has done it; CAMICO is using 12 cloud applications which are:

    1. SalesForce.com – Sales Management

 

    1. SilverPop – Marketing Automation

 

    1. Nexure – Agency Management Solution

 

    1. Acuity – Legal Partners Expense Management

 

    1. DocuSign – Electronic Signature

 

    1. LearnLive – Webinar Broadcasting and Training

 

    1. ADP/HCM – Payroll and Human Capital Management

 

    1. Skype – IM and Video

 

    1. Paypal and Total Biller Solution – Credit Card Payment Gateways

 

    1. Concur - Travel Expense Management

 

    1. RingCentral – Telephony

 

    1. MailRoute – Email Spam Filter



Business Perspective Focus

To increase employee engagement and help grow the business, he created a Bottom-up Innovation Program at CAMICO, in which employees submit ideas to grow the top-line, increase operational efficiencies, improve customer service, enhance business processes, and reduce cost. This program has generated many valuable ideas, and as a result he is embarking on two of his most ambitious business focused IT projects.

    1. Using Open Source for eCommerce solutions

 

    1. Developing a Big Data Proof of Concept



Both of the projects are still in infancy stage and they are both being developed using Open Source. To explain further on the eCommerce solution initiative, he says, “We currently host our website and members-only extranet using Oracle Portal, and now we are planning to use Drupal for our website and another open source software for extranet, which is yet to be determined. Our website and extranet also have eCommerce capabilities embedded in it, so we will be porting our eCommerce into this new Open Source portal”.

He is most excited about the big data project which is his initiative to provide actionable insights and perspectives for the business management at CAMICO. When I asked him about the key objective of working on a big data project, he said, “We are experimenting with Big Data using many of the Open Source software to analyze and find correlations among loss trends. The first objective is to find loss causes in our current data and subsequently use these findings to better underwrite future risks.”

Employee Engagement Focus

As mentioned earlier, The Bottom-up Innovation Program was his brain child. The program encourages all employees to submit ideas that could add value to customers or the business. Employees observe their environment, listen to customers, and bring their outside experiences as consumers to generate ideas that could benefit the company or customers. These ideas are validated, refined and prioritized by a committee of fellow employees. For every accepted and implemented idea, employees are recognized for their contributions through intrinsic and extrinsic rewards. This program makes employees more an integral part of the company, thereby increasing employee engagement and retention. The program has become such a success that he is invited to speak at several industry events for the benefit of other organizations. He not only speaks about the concept but also explains the implementation mechanics and expected outcomes of the program.

Overcoming business challenges

Similar to most other CIOs, he and his team have a long list of IT initiatives but the top four initiatives for 2014 and beyond are:

    1. Replace Website, Members-Only and eCommerce platform

 

    1. Use Big Data for analyzing current and future risks

 

    1. Move more infrastructure solutions into the cloud

 

    1. Build targeted Mobile solutions



But there are enough challenges that his team (he detests the word “staff”) has to overcome. As per Jag, the biggest challenge for any IT department is money and talent. He elaborates on his statement, “There is never enough money to do everything we want to do. However in my view, if there is a business justification for an expense, money is never an issue. The definition of business justification is, for every dollar spent how much money the new solution is going to make or save? There are times when you cannot find direct or immediate benefits, so you have to find creative ways to show value and sell new ideas. Cloud applications make it easier to try new solutions without heavy upfront commitment”. To qualify, he quickly states that the big data project was unscripted and not budgeted but he was able to create a business value which catapulted it to be among the top four IT initiatives.

Business Focused CIO

He is very clear in his mind that there has never been a better time to be a CIO. And he has a message for other IT leaders, “Technology has become an integral part of the business. IT leaders should always be thinking of how they can leverage technology to create competitive advantage, grow the business and create operational efficiencies.” As if on cue, he recites what he practices:

    1. Partner with business peers. Look for ways to help them achieve their goals faster using technology.

 

    1. There is no IT project; every project is a business initiative. If you want funding for any initiative, figure out how it adds value to the business.

 

    1. Find partners who will help you showcase the value of technology.

 

    1. Above all, build credibility with your peers by providing excellent service.



Way to go.

Anurag Agrawal

Outage Immune, Distributed, Scalable Database-as-a-Service for SMBs from GenieDB

Since the time Amazon announced its Database-as-a-Service, most IT vendors, big and small, have either spun off services utilizing Amazon or built services that are complementary to Amazon. And many others have rolled out competing products. Each of them is targeting SMBs with the promise of agility, reliability, scalability and integration capability. The market has become crowded with options that are very difficult to sift through for SMBs. Nevertheless, the interest in database-as-a-service has never been higher. As per Techaisle’s 2013 SMB Cloud Computing study, between 6% and 64% (varies by employee sizes) of SMBs are either using or planning to use database-as-a service. However with  an average number of formal IT staff at 4.2 and percentage of SMBs having formal IT staff varying from a low of 3% (for 1-4 employee size) to high of 97% (for 500-999 employee size) businesses the adoption is sporadic and hindered because of inherent possibility of “lights-out” situation due to outages, network latency and connectivity issues.

GenieDB, a company founded in 2011, has brought into the market a MySQL-database-as-a-service that that removes outages from the equation. Phyken Media, a video game studio for mobile platforms, developer of “Wizard Ops Tactics” is GenieDB’s marquee customer. Kunal Patel, President of Phyken Media, was faced with two huge challenges;
 

1/ during development of the game he had to have access to robust technology that could scale to production rapidly,

2/ be able to deploy into multiple geo locations for multiple-cross-region-player challenges without having to install and manage multiple servers.

In such a rapid-fire environment, where all the data is “hot”, Kunal and his team of developer-artists turned to GenieDB to utilize its MySQL database-as-a-service offering which he said is hugely disruptive enabling globally distributed databases where all nodes remain synchronized.

To get to know more about GenieDB we had a very detailed Q&A with Sumeet Sheokand, CTO, GenieDB. Given below is an excerpt from the interview.

Techaisle: What is the motivation behind GenieDB and in particular MySQL-as-a-Service?

Sumeet Sheokand, CTO: GenieDB is built with the aim of dramatically simplifying database management in the cloud for business critical applications. Dealing with cloud outages, network latency, redundancy, replication, tuning, etc. can be very painful and time consuming, distracting precious IT resources away from other core business areas.  We want to evolve this vision to the point where you no longer need a team of DBAs to manage complex, distributed database platforms. We will either automate processes or provide a very simple interface to manage hundreds of highly available, low latency MySQL databases ready for any cloud infrastructure, anywhere in the world. It is well known that the only way of overcoming the challenges of cloud outages and network latency is to distribute copies of the database across wide geographical areas, a historically difficult problem for relational database architectures. GenieDB makes this critical functionality available to all businesses and all budget sizes, in a very easy-to-use package. In keeping with the theme of making it easy, we offer our core technology as a Database as a Service (DBaaS). This allows us to offer our users a point and click ability to deploy geographically distributed database servers with automated management and monitoring already in place.

Techaisle: What problem are you trying to solve? Especially, how can small and mid-market businesses benefit from GenieDB?

Sumeet Sheokand, CTO: We have created a geographically distributed database fabric that removes the database as a single point of failure and makes cloud-enabled MySQL database provisioning, management and monitoring an exceedingly simple affair.  With our service, the small and mid-market businesses can focus on running their businesses or building their applications rather than worrying about architecting complex distribution, replication and failover systems, not to mention installing, patching and maintaining backups. All the rote tasks of using databases will be taken care of by our service.

Techaisle: Is the service a better mousetrap than others that are available in the market?

Sumeet Sheokand, CTO: The comparison between what is available in the marketplace today and GenieDB can best be described as the difference between a database-in-the-cloud vs. a Cloud Database.  The existing DBaaS solutions are simply databases which have been put into the cloud utilizing a variety of scripts (i.e. "A Few Scripts-as-a-Service").  These offerings are partial solutions as they do not remove the complexity of building distributed systems in the cloud.  Some only offer single locations; some only offer it in certain locations, while others don’t offer an easy path to grow the database with business traffic. Through our proprietary storage engine, GenieDB has fundamentally transformed the way a relational database functions in the cloud, removing all of these common pain points within the database layer. Businesses can choose their cloud providers, their locations and size, and know that their database will be available, responsive and grow as their business grows, with minimal effort.

Techaisle: How do you think it is different from Translattice, NuoDB, Galera?

Sumeet Sheokand, CTO:  GenieDB stays true to MySQL, the most commonly used database in the world, as compared to Translattice (Postgres) or NuoDB (Not MySQL, custom). GenieDB also offers an ‘Eventually Consistent’ model that allows us to place the nodes as far apart around the world as the business needs and deliver local database performance, instead of being limited by network distance (Galera).

Techaisle: Is GenieDB’s approach similar to Google’s Spanner?

Sumeet Sheokand, CTO: GenieDB has some conceptual similarities to Google Spanner, such as a consistent Clock around the cluster. GenieDB uses software Lamport Timestamp based clock compared to Google’s hardware based clock. Even though there are similarities, GenieDB was developed independent of the Spanner effort. It was nonetheless a great validation of our vision and approach. Google Spanner is also not available as a product for businesses at large to use in their own applications. GenieDB is available today to reap the same benefits.

Techaisle: Can it be deployed only across Amazon or other cloud providers as well? Do end-users have a choice of cloud provider they feel comfortable with?

Sumeet Sheokand, CTO: GenieDB is currently available across Amazon, Rackspace and Google’s cloud services. We are actively working on integrating a handful of other popular providers, including HP, into the service. We will be happy to work with our customers to accelerate their cloud of choice for integration.

Techaisle: The future is Hybrid as we all know it, so how does it work if in a customer’s environment there are both on-premise and cloud based MySQL databases?

Sumeet Sheokand, CTO:  GenieDB core software is agnostic to machine location. It just needs a Linux machine with network access. It is because of this capability, that we can build a database cluster across multiple cloud providers. Hence, we can support any Hybrid configuration, if we have access to the machines. There are business and security concerns on providing full access that would need to be figured out.

Techaisle: Why did you choose MySQL for database-as-a-service?

Sumeet Sheokand, CTO: MySQL is the ubiquitous database for modern applications. It is by far the most widely installed and used database in the cloud today and hence is the basis of our service.

Techaisle: Most of the SMBs do not have IT staff let alone database administrators. Can it still be deployed with limited technology knowledge?

Sumeet Sheokand, CTO:  Deploying GenieDB does not need any technical knowledge, staff or application changes besides pointing the application to the GenieDB provided database location.  It is this [SMB] specific target audience for which we designed GenieDB.

Techaisle: How do you help SMBs in understanding the technology and how the service solves their business pain points?

Sumeet Sheokand, CTO: GenieDB has extensive amount of information available at its site including FAQs, White Papers and Demonstrations. We also offer a one week, free trial of the service and support so that potential customers can experience the service before buying.  We are of course happy to spend as much time as necessary to get any new client comfortable with our service.

Techaisle: For type of SMB customer is this solution most suitable?

Sumeet Sheokand, CTO: GenieDB is a Storage Engine for MySQL and as such is a general solution. Hence, GenieDB works with any application that works with MySQL today. From a business perspective, any business that is running a critical application on a single database could benefit from GenieDB, so that if one database server goes down, others are still available and the application will continue to work without any downtime.  Typically we see customers that are starting a new project or that have an existing project that is anticipating growing traffic or is becoming more business critical.

Techaisle: What is a typical deployment timeframe?

Sumeet Sheokand, CTO: Nodes are spun up and the cluster made available within minutes. Most applications can be up and running against GenieDB under an hour, including data transfer. The actual duration does depend on the amount of data to transfer and the upload capacity available from the customer site.

Techaisle Take

At last count, MySQL is still the most widely used database for cloud deployments and is easily the one that SMBs use extensively. However, MySQL’s continued dominance is being questioned since it was ingested by Oracle through its Sun acquisition. Although Postgres is usually considered to be more powerful and meant for big data sets, there is yet no visible mass migration from MySQL to Postgres. The success of GenieDB and the decision to use its DBaaS is not dependent upon the debate of MySQL vs. Postgres but GenieDB’s relevance for the most-used open source database. GenieDB has created a very useful solution for SMBs but will be challenged to capture mind-share of IT consultants, service providers and the developers who are advisors to SMBs for development of applications based on multi-nodal, geographically dispersed, tightly synchronized MySQL databases. Apart from focusing on growing its customer base GenieDB will have to continue to add feature sets, capabilities and integrate with different regional cloud providers. For now, GenieDB’s MySQL-as-a-Service receives check marks for its simplified usage, ability to integrate with all MySQL applications, rapid deployment, cloud portability (not being locked-in with a single provider) and above all making the database immune to outages.

Anurag Agrawal

Citrix cloud drives a new solutions category: Mobile Delivery Infrastructure (MDI)

Steve Daheb, Chief Marketing Officer, Citrix, says, “Citrix is a cloud solutions company that enables mobile workstyles”. This philosophy’s execution is anchored to its three product pillars:

  1. XenDesktop
  2. Netscaler, and
  3. XenMobile

Citrix has committed itself to an ambitious definition of enterprise mobility, with a framework spanning nine components; customers can use Citrix technologies to create an integrated, single vendor solution covering all nine areas, or can opt to plug competing products into any of the nine areas – an approach that Citrix has labeled “any-ness.”


Mobile Delivery Infrastructure (MDI)

We believe that there is current demand in the market for a reasoned approach to defining enterprise mobility. The suppliers of the endpoint products aren’t in a position to define the architecture and services needed to connect their products to corporate networks, applications and data, and the suppliers of data center infrastructure lack visibility into the endpoint side of the equation. Citrix is unique in spanning both environments, and its approach to enabling customers is, in our opinion, well-aligned with the need for architectural clarity that we have observed in the market. Accordingly, using the Citrix framework as a starting point, we have created a definition of enterprise mobility that we have dubbed “Mobile Delivery Infrastructure,” or MDI. MDI is comprised of three distinct, critical solution pillars: endpoint tracking and security, collaboration and sharing, and app delivery and management.


Mobility Delivery Infrastructure (MDI)


Endpoint Tracking & Security


Collaboration & Sharing


App Delivery & Management


  • MDM
  • Mobile network control
  • Single Sign-on & Identity Management

  • Sandboxed mail
  • Secure mobile data sharing Collaboration

  • App dev tools
  • Mobile app security Windows-as-a-Service


Unsurprisingly, given our starting point, Citrix can be seen as a standard-setter for MDI. Its approach to MDI will likely attract many firms in search of a consistent approach: Citrix’s fundamental belief that work is not a place, simpler is better and any-ness wins will resonate with many customers looking for a starting point for a mobility framework.

The breadth of the Citrix portfolio will also help prospective customers to understand the requirement for the full breadth of MDI technologies. While many other cloud companies are developing either one solution or several for mobile workforce enablement, Citrix’s strategy seems akin to Microsoft’s during its formative years: it owned the platform (the operating system) for the PC, attracting an ecosystem of hardware, software and networking companies which built products and solutions extending the utility of the core product. To that extent, Citrix seems to have created a corporate mobility delivery infrastructure that can either be utilized stand alone or combined with other solutions.

SMB Market Potential

Citrix‘s main target has been the enterprise segment, which has served it well. It has yet to develop a coherent strategy for marketing and selling to the SMB segment, relying on partners to address the market. However, Techaisle research demonstrates that the SMB focused channel partners themselves want tremendous help from their vendors. For example US channel partner data clearly shows the help required on multiple fronts.

Nevertheless, the SMB market has huge potential with nearly 300 million mobile workers by 2016.The SMBs investing in mobile enablement will need MDI solutions to supporting these 300 million mobile workers – which will create demand for one or more solutions within Citrix’s MDI platform.


Techaisle outlook: We believe that mobility is transitioning from being defined by devices to being defined by management strategies – and that this will create demand for MDI. With products covering each aspect of MDI – and with an approach that supports both single-vendor and best-of-breed deployments – Citrix is extremely well positioned to benefit from this transition.


Anurag Agrawal

Next big thing for SMBs: Need for Enterprise Performance Management

CRM has become a core application for businesses and we have already seen that Sales Force Automation and Marketing Automation functions have been quickly incorporated along with Business Intelligence.  All of these can use the same or linked tables to provide a 360 degree view of the sales and marketing process. However, today, we have finally come to a place where it should be easy enough for SMBs to plan and execute business strategy using a structured performance management system, like the Balanced Scorecard. Key Performance Indicators (KPIs) should be a standard part of the application architecture as should a meta-directory of KPIs that all applications can access.  To measure the effectiveness of Sales, Marketing, Operations, and industry-specific activities, each area should have standard metrics and access to benchmark data that lets the SMB know how they are doing compared to peers, but rather than only using historical data it should be based on forward-looking objectives (leading indicators) that are tied directly or indirectly to activities designed to ultimately improve financial results. SMBs are seriously interested in measuring elusive objectives like Return on Marketing Investment, Optimal Pricing, Cost of Acquisition, Lifetime Customer Value. They want integrated applications that can not only measure these objectives but also be able to optimize effectively.  This is what we call the Enterprise Performance Management (EPM).

For EPM applications to be really effective, they should be able to collect data from all applications and break into several areas; for people, productivity should be monitored through activity and results (as it already is in the new generation of SaaS applications), and effectiveness of software and equipment should be measured through algorithms that follow click paths, analyze application usage, optimize the process flow and usability of the systems. In some cases, like network optimization, filtering potential employees and ecommerce, systems should optimize themselves and human intervention should only be required when something is way outside the parameters defined by the administrator – who may increasingly be the LOB management.

With the EPM (Enterprise Performance Management) system SMBs will have a new attitude and culture that values and uses data visualization as the quickest way to gauge overall performance and specific areas of interest at a glance.

Most SMBs that have used CRM and ERP systems within the past few years are familiar with the dashboards that are available with many of these applications, either embedded or purchased separately. We believe that Dashboards will continue to evolve and be dynamic in several ways; the way they use data from subsystems like ecommerce and other real time feed sources, the way users can personalize the layout of their dashboards. Similarly, within the EPM, the actual KPIs should be dynamic and have the ability to build KPIs “on-the-fly” by calculating variables on the screen and saving the result in a meta-repository for all to use. It will have to become the norm.

While several SaaS vendors allow this kind of metric building and start the user at a dashboard, we have yet to see anything targeted to the mid-market or SMBs that connects the performance across front office, production, fulfillment and customer service. NetSuite does it to some extent almost out of the box. The market has to catch up. While this level of functionality is an excellent target, small businesses can probably get by with a good understanding of leads, opportunities, customers, invoicing, billing and customer service (or the appropriate subset) by integrating together several applications from different IT vendors. But the need for EPM is genuine and the industry has to quickly design solutions to empower SMBs with enterprise-level EPM technology at an affordable price.

 

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