Tag Archives: cloud computing

.net, cloud computing, microsoft, professional, silverlight, software development, windows

Bob Muglia leaving Microsoft, CEO Steve Ballmer searching for new cloud leadership

January 10, 2011 onlyconnect 1 Comment

Microsoft has announced that Bob Muglia, President of Server and Tools, is leaving Microsoft.

In his memo, Steve Ballmer says:

Bob Muglia and I have been talking about the overall business and what is needed to accelerate our growth. In this context, I have decided that now is the time to put new leadership in place for STB. This is simply recognition that all businesses go through cycles and need new and different talent to manage through those cycles.

It is always hard to tell from the outside, but in my encounters Muglia has been among the most articulate and confident of Microsoft’s top executives. I have also noticed in my regular look at Microsoft’s financials that the Server and Tools business has performed consistently well for as long as I can remember.

Most recently, Muglia took over the Azure business and seemed to know where he was going with it. He is also responsible for developer tools, and while his remarks about Silverlight at Microsoft’s PDC in November were disappointing to developers on that platform, they showed a clear sense of direction.

In this context, it seems surprising that Ballmer is in search of “new and different talent”. It does sound as if Ballmer and Muglia do not see the future of the cloud business – which is the focus of the memo – in the same way.

The key question: in what way did Ballmer and Muglia’s vision differ? I guess we will get some more clues as today’s news is discussed.

Update: Mary Jo Foley has posted Bob Muglia’s internal email to his team:

Later this year, I’m moving on to new opportunities outside of Microsoft, so I wanted to take a few minutes to share with you what’s important to me in life and leadership.

The foundation of who I am is based on living with integrity. Integrity requires principles, and my primary principle is to focus on doing the right thing, as best I can. The best thing, to the best of my ability, for our customers, our products, our shareholders, and of course, our people.

Just sugar, or did Muglia feel that staying at Microsoft would compromise those principles?

Since the announcement, the reaction across the industry has shown the high regard in which he is held, and bewilderment at why he is being let go. Here’s Redmonk analyst James Governor on Twitter:

Another exit: Microsoft server chief Muglia leaving company normally i say so what but this is TERRIBLE for microsoft

adobe, apple, internet, microsoft, mobile, professional, silverlight, software, software development

Adobe declares glittering results as CEO says Apple’s Flash ban has no impact on its revenue

December 21, 2010 onlyconnect 3 Comments

Adobe has proudly declared its first billion dollar quarter, $1,008 m in the quarter ending Dec 3 2010 versus $757.3 m in the same quarter of 2009.

I am not a financial analyst, but a few things leap out from the figures. One is that Omniture, the analytics company Adobe acquired at the end of 2009, is doing well and contributing significantly to Adobe’s revenue – $98.4 m in Q4 2010. The billion dollar quarter would not have happened without it. Second, Creative Suite 5 is selling well, better than Creative Suite 4.

Creative Suite 4 was released in October 2008, and Creative Suite 5 in April 2010. It is not perfect, but the following table compares the Creative Solutions segment (mainly Creative Suite) of the two products quarter by quarter from their respective release dates:

Quarters after release	1st	2nd	3rd	4th	5th	6th
Creative Suite 4	508.7	460.7	411.7	400.4	429.30	432.0
Creative Suite 5	532.7	549.7	542.1

CS4 drops off noticeably following an initial surge, whereas CS5 has kept on selling. It is a good product and a de-facto industry standard, but not every user is persuaded to upgrade every time a new release appears. My guess is that things like better 64-bit support – which make a huge difference in the production tools – and new tricks in PhotoShop have been successful in driving upgrades to CS5. Further, the explosion of premium mobile devices led by Apple’s iPhone and iPad has not been bad for Adobe despite Apple CEO Steve Jobs doing his best to put down Flash. Publishers creating media for the iPad, for example, will most likely use Adobe’s tools to do so. CEO Shantanu Narayen said in the earnings calls, “We have not seen any impact on our revenue from Apple’s choice [to not support Flash]”, though I am sure he would make a big deal of it if Apple were to change its mind.

Before getting too carried away though, I note that Creative Suite 3, published in March 2007, did just as well as CS5. Here are the figures:

Quarters after release	1st	2nd	3rd	4th	5th	6th
Creative Suite 3	436.6	545.5	570.5	543.5	527.2	493.6

In fact, Q4 2007 at $570.5 m is still a record for Adobe’s Creative Solutions segment. So maybe CS4 was an unfortunate blip. Then again, not quite all the revenue in Creative Solutions is the suite; it also includes Flash Platform services such as media streaming. Further, the economy looked rosier in 2007.

Here is the quarter vs quarter comparison over the whole company:

	Q4 2009	Q4 2010
Creative Solutions	429.3	542.1
Digital Enterprise	211.8	274.10
Omniture	26.3	98.4
Platform	47	46.1
Print and publishing	42.9	47.3

In this table, Creative Solutions has already been mentioned. Digital Enterprise, formerly called Business Productivity, includes Acrobat, LiveCycle and Connect web conferencing. Platform is confusing; according to the Q4 09 datasheet it includes the developer tools, Flash Platform Services and ColdFusion. However, the Q4 10 datasheet omits any list of products for Platform, though it includes them for the other segments, and lists ColdFusion under Print and Publishing along with Director, Contribute, PostScript, eLearning Suite and some other older products. According to this document [pdf] InDesign which is huge in print publishing is not included in Print and Publishing, so I guess it is in Creative Solutions.

In the earnings call, Adobe’s Mark Garrett did mention Platform, and attributed its growth (compared to Q3 2010) to “higher toolbar distribution revenue driven primarily by the release of the new Adobe Reader version 10 in the quarter.” This refers to the vile practice of foisting a third-party toolbar (unless they opt-out) on people forced to download Adobe Reader because they have been send a PDF. Perhaps in the light of these good results Adobe could be persuaded to stop doing so?

I am not sure how much this breakdown can be trusted as it makes little sense to me. Do not take the segment names too seriously then; but they are all we have when it comes to trying to compare like with like.

Still, clearly Adobe is doing well and has successfully steered around some nasty rocks that Apple threw in its way. I imagine that Microsoft’s decision to retreat from its efforts to establish Silverlight as a cross-platform rival to Flash has also helped build confidence in Adobe’s platform. The company’s point of vulnerability is its dependence on shrink-wrap software for the majority of its revenue; projects like the abandoned Rome show that Adobe knows how to move towards cloud-deployed, subscription-based software but with business booming under its current model, and little sign of success for cloud projects like Acrobat.com, you can understand why the company is in no hurry to change.

cloud computing, open source, salesforce.com, software development

The Salesforce.com platform play

December 9, 2010 onlyconnect

I’ve been mulling over the various Salesforce.com announcements here at Dreamforce, which taken together attempt to transition Salesforce.com from being a cloud CRM provider to becoming a cloud platform for generic applications. Of course this transition is not new – it began years ago with Force.com and the creation of the Apex language – and it might not be successful; but that is the aim, and this event is a pivotal moment with the announcement of database.com and the Heroku acquisition.

One thing I’ve found interesting is that Salesforce.com sees Microsoft Azure as its main competition in the cloud platform space – even though alternatives such as Google and Amazon are better known in this context. The reason is that Azure is perceived as an enterprise platform whereas Google and Amazon are seen more as commodity platforms. I’m not convinced that there is any technical justification for this view, but I can see that Salesforce.com is reassuringly corporate in its approach, and that customers seem generally satisfied with the support they receive, whereas this is often an issue with other cloud platforms. Salesforce.com is also more expensive of course.

The interesting twist here is that Heroku, which hosts Ruby applications, is more aligned with the Google/Amazon/open source community than with the Salesforce.com corporate culture, and this divide has been a topic of much debate here. Salesforce.com says it wants Heroku to continue running just as it has done, and that it will not interfere with its approach to pricing or the fact that it hosts on Amazon’s servers – though it may add other options. While I am sure this is the intention, the Heroku team is tiny compared to that of its acquirer, and some degree of change is inevitable.

The key thing from the point of view of Salesforce.com is that Heroku remains equally attractive to developers, small or large. While Force.com has not failed exactly, it has not succeeded in attracting the diversity of developers that the company must have hoped for. Note that the revenue of Salesforce.com remains 75%-80% from the CRM application, according to a briefing I had yesterday.

What is the benefit to Salesforce.com of hosting thousands of Ruby developers? If they remain on Heroku as it is at the moment, probably not that much – other than the kudos of supporting a cool development platform. But I’m guessing the company anticipates that a proportion of those developers will want to move to the next level, using database.com and taking advantage of its built-in security features which require user accounts on Force.com. Note that features such as row-level security only work if you use the Force.com user directory. Once customers take that step, they have a significant commitment to the platform and integrating with other Salesforce.com services such as Chatter for collaboration becomes easy.

The other angle on this is that the arrival of Heroku and VMForce gives existing Salesforce.com customers the ability to write applications in full Java or Ruby rather than being restricted to tools like Visualforce and the Apex language. Of course they could do this before by using the web services API and hosting applications elsewhere, but now they will be able to do this entirely on the Salesforce.com cloud platform.

That’s how the strategy looks to me; and it will fascinating to look back a year from now and see how it has played out. While it makes some sense, I am not sure how readily typical Heroku customers will transition to database.com or the Force.com identity platform.

There is another way in which Salesforce.com could win. Heroku knows how to appeal to developers, and in theory has a lot to teach the company about evangelising its platform to a new community.

amazon, azure, cloud computing, internet, microsoft, professional, ruby, salesforce.com, software development

Salesforce.com acquires Heroku, wants your Enterprise apps

December 8, 2010 onlyconnect

The big news today is that Salesforce.com has agreed to acquire Heroku, a company which hosts Ruby applications using an architecture that enables seamless scalability. Heroku apps run on “dynos”, each of which is a single process running Ruby code on the Heroku “grid” – an abstraction which runs on instances of Amazon EC2 virtual machines. To scale your app, you simply add more dynos.

Why is Salesforce.com acquiring Heroku? Well, for some years an interesting question about Salesforce.com has been how it can escape its cloud CRM niche. The obvious approach is to add further applications, which it has done to some extent with FinancialForce, but it seems the strategy now is to become a platform for custom business applications. We already knew about VMForce, a partnership with VMWare currently in beta that lets you host Java applications that are integrated with Force.com, but it is with the announcements here at Dreamforce that the pieces are falling into place. Database.com for data access and storage; now Heroku for Ruby applications.

These services join several others which Salesforce.com is branding at Force.com 2:

Appforce – in effect the old Force.com, build departmental apps with visual tools and declarative code.

Siteforce – again an existing capability, build web sites on Force.com.

ISVForce – build your own multi-tenant application and sign up customers.

Salesforce.com is thoroughly corporate in its approach and its obvious competition is not so much Google AppEngine or Amazon EC2, but Microsoft Azure: too expensive for casual developers, but with strong Enterprise features.

Identity management is key to this battle. Microsoft’s identity system is Active Directory, with federation between local and cloud directories enabling single sign-on. Salesforce.com has its own user directory and developing on its platform will push you towards using it.

Today’s announcement makes sense of something that puzzled me: why we got a session on node.js at Monday’s Cloudstock event. It was a great session and I wrote it up here. Heroku has been experimenting with node.js support, with considerable success, and says it will introduce a new version next year.

Finally, the Heroku acquisition is great news for Enterprise use of Ruby. Today many potential new developers will be looking at it with interest.

amazon, cloud computing, google, professional, salesforce.com, web authoring

Database.com extends the salesforce.com platform

December 8, 2010 onlyconnect 4 Comments

At Dreamforce today Salesforce.com announced its latest platform venture: Database.com. Salesforce.com is built on an Oracle database with various custom optimizations; and database.com now exposes this as a generic cloud database which can be accessed from a variety of languages – Java, .NET, Ruby and PHP – and accessed from applications running on almost any platform: VMForce, Smartphones, Amazon EC2, Google App Engine, Microsoft Azure, Microsoft Excel, Adobe Flash/Flex and others. One way to use it would via JPA (Java Persistence API) in an VMForce Java application.

The Database.com console is a web application that has a console giving access to your databases and showing useful statistics and system information.

You can also create new databases, specifying the schema and relationships.

The details presented in the keynote today were sketchy – we saw applications that honestly could have been built just as easily with MySQL – but there is more information in the FAQ. The Database.com API is through SOAP or REST web services, not SQL. Third parties can create drivers so you can you use it with SQL APIs such as ODBC or JDBC. There is row level security, and built-in full text search.

According to the FAQ, Database.com “includes a native trigger and stored procedure language”.

Pricing starts from free – for up to 100,000 records, 50,000 transactions and 3 users per month. After than it is $10.00 per month per additional 100,000 records, $10.00 per month per additional 150,000 transactions, and $10.00 per user if you need the built-in authentication and security system – which as you would expect is based on the native force.com identity system.

As far as I can tell one of the goals of Database.com – and also the forthcoming chatter.com free public collaboration service – is to draw users towards the force.com platform.

Roger Jennings has analysed the pricing and reckons that Database.com is much more expensive than Microsoft’s SQL Azure – for 500 users and a 50GB database $15,000 per month for Database.com vs a little over $500 for the same thing on SQL Azure, though the two are difficult to compare directly and he has had to make a number of assumptions. Responding to a question at the press and analyst Q&A today, Benioff seemed to accept that the pricing is relatively high, but justified in his view by the range of services on offer. Of course the pricing could change if it proves uncompetitive.

Unlike SQL Azure, Database.com starts from free, which is a great attraction for developers interested in giving it a try. Trying out Azure is risky because if you leave a service running inadvertently you may run up a big bill.

In practice SQL Azure is likely to be more attractive than Database.com for its core market, existing Microsoft-platform developers. Microsoft experimented with a web services API for SQL Server Data Services in Azure, but ended up offering full SQL, enabling developers to continue working in familiar ways.

Equally, Force.com developers will like Database.com and its integration with the force.com platform.

Some of what Database.com can do is already available through force.com and I am not sure how the pricing looks for organizations that are already big salesforce.com users; I hope to find out more soon.

What is interesting here is the way salesforce.com is making its platform more generic. There will be more force.com announcements tomorrow and I expect to to see further efforts to broaden the platform then.

Update – I had a chat with Database.com General Manager Igor Tsyganskiy. He says Microsoft’s SQL Azure is the closest competitor to Database.com but argues that because Salesforce.com is extending its platform in an organic way it will do a better job than Microsoft which has built a cloud platform from scratch. We did not address the pricing comparison directly, but Tsyganskiy says that existing Force.com customers always have the option to “talk to their Account Executive” so there could be flexibility.

Since Database.com is in one sense the same as Force.com, the API is similar. The underlying query language is SOQL – the Salesforce Object Query Language which is based on SQL SELECT though with limitations. The language for stored procedures and triggers is Apex. SQL drivers from Progress Software are intended to address the demand for SQL access.

I mentioned that Microsoft came under pressure to replace its web services API for SQL Server Data Services with full SQL – might Database.com face similar pressure? We’ll see, said Tsyganskiy. The case is not entirely parallel. SQL Server is a cloud implementation of an existing SQL database with which developers are familiar. Database.com on the other hand abstracts the underlying data store – although Salesforce.com is an Oracle customer, Tsyganskiy said that the platform stores data in a variety of ways so should not be thought of as a wrapper for an Oracle database server.

Although Database.com is designed to be used from anywhere, I’d guess that Java running on VMForce with JPA, and following today’s announcement Heroku apps also hosted by Salesforce.com, will be the most common scenarios for complex applications.

cloud computing, google, java

Google App Engine and why vendor honesty pays

December 6, 2010 onlyconnect 1 Comment

I’ve just attended a Cloudstock session on Google App Engine and new Google platform technologies – an introductory talk by Google’s Christian Schalk.

App Engine has been a subject of considerable debate recently, thanks to a blog post by Carlos Ble called Goodbye App Engine:

Choosing GAE as the platform four our project is a mistake which cost I estimate in about 15000€. Considering it’s been my money, it is a "bit" painful.

Ble’s points is that App Engine has many limitations. Since Google tends not to highlight these in its marketing, Ble discovered them as he went, causing frustrations and costly workarounds. In addition, it has not proved reliable:

Once you overcome all the limitations with your complex code, you are supposed to gain scalabilty for millions of users. After all, you are hosted by Google. This is the last big lie.

Since the last update they did in september 2010, we starting facing random 500 error codes that some days got the site down 60% of the time.

Ble has now partially retracted his post.

I am rewriting this post is because Patrick Chanezon (from Google), has added a kind and respectful comment to this post. Given the huge amount of traffic this post has generated (never expected nor wanted) I don’t want to damage the GAE project which can be a great platform in the future.

He is still not exactly positive, and adds:

I also don’t want to try Azure. The more experience I gain, the less I trust platforms/frameworks which code I can’t see.

Ble’s post is honest, but many of the issues are avoidable and arguably his main error was not to research the platform more thoroughly before than diving in. He blames the platform for issues that in some cases are implementation mistakes.

Still, here at Cloudstock I was interested to see if Schalk was going to mention any of these limitations or respond to Ble’s widely-read post. The answer is no – I got the impression that anything you can do in Java or Python, you can do on App Engine, with unlimited scalability thrown in.

My view is that it pays vendors to explain the “why not” as well as the “why” of using their platform. Otherwise there is a risk of disillusionment, and disillusioned customers are hard to win back.

adobe, internet, professional, software development, Web, web authoring

Adobe abandons Project ROME, focuses on apps rather than cloud

November 30, 2010 onlyconnect 1 Comment

Adobe is ceasing investment in Project ROME, a labs project which provides a rich design and desktop publishing application implemented as an Adobe AIR application, running either in the browser or on the desktop using the Flash player as a runtime.

According to the announcement:

Project ROME by Adobe was intended to explore the opportunity and usability of creative tools as software-as-a-service in the education market and beyond. We have received valuable input from the community after a public preview of the software. Following serious evaluation and consideration of customer input and in weighing this product initiative against other projects currently in development, we have made the difficult decision to stop development on Project ROME. Given our priorities, we’re focusing resources on delivering tablet applications, which we believe will have significant impact on creative workflows.

There must be some broken hearts at Adobe because ROME is a beautiful and capable application that serves, if nothing else, as a demonstration of how capable a Rich Internet Application can be. In fact, I have used it for that purpose: when asked whether a web application could ever deliver the a user interface that comes close to the best desktop applications, I showed Project Rome with great effect.

I first saw Project ROME as a “sneak peek” at the Adobe MAX conference in 2009. It had made it past those initial prototypes and was being worked up as a full release, with a free version for education and a commercial version for the rest of us. Curiously, Adobe says the commercial version will remain available as an unsupported freebie, but the educational offering is being pulled: “we do not want to see pre-release software used in the classroom “.

Why abandon it now? I think we have Apple’s Steve Jobs to thank. AIR applications do not run on the iPad; and when Adobe says it is focusing instead on tablet applications, the iPad will figure largely in those plans. Still, there are a few other factors:

One thing that was not convincing in the briefing I received about Project ROME was the business model. It was going to be subscription-based, but how many in this non-professional target market would subscribe to online desktop publishing, when there are well-established alternatives like Microsoft Publisher?
Adobe makes most of its money from selling desktop software, in the Creative Suite package. ROME was always going to be a toy relative to the desktop offerings.
The output from ROME is primarily PDF. If Rome had been able to build web pages rather than PDF documents, perhaps that would have made better sense for a cloud application.
Adobe did not market the pre-release effectively. I do not recall hearing about it at MAX in October, which surprised me – it may have been covered somewhere, but was not covered in the keynotes despite being a great example of a RIA.
The ROME forum shows only modest activity, suggesting that Project ROME had failed to attract the attention Adobe may have hoped for.

It is still worth taking a look at Project ROME; and I guess that some of the ideas may resurface in apps for iPad, Android and other tablets. It will be interesting to see to what extent Adobe itself uses Flash and AIR for the commercial design apps it delivers.

Final reflection: this decision is a tangible example of the ascendancy of mobile apps versus web applications – though note that Adobe still has a bunch of web applications at Acrobat.com, including the online word processor once called Buzzword and a spreadsheet application called Tables.

cloud computing, microsoft

How will online services impact Microsoft’s partner business?

November 25, 2010 onlyconnect

2010 is the year Microsoft got serious about cloud services. Windows Azure opened for real business in November 2009 – OK, just before 2010 – and CEO Steve Ballmer took to telling the world how Microsoft is “all in” for cloud computing whenever he got up to speak. Office and SharePoint 2010 launched in May 2010 complete with the ability to create and edit Office documents from a web browser. Microsoft also announced Office 365, essentially an upgrade of its existing BPOS offering, offering hosted Exchange, Sharepoint and Lync (Office Communicator). Microsoft also announced Small Business Server 2011, including an Essentials edition, formerly codenamed “Aurora”, which is little more than Windows Home Server plus Active Directory and points small businesses towards cloud services for email and document collaboration.

I’d guess that Microsoft’s cloud conversion is driven in part by the progress Google, Salesforce.com and others have made in persuading businesses that hosted internet services make more sense than maintaining your own servers and server applications in many cases.

But what is the impact on Microsoft partners, who have been kept busy supplying and configuring servers, implementing backup, keeping systems running, and then upgrading them as they become obsolete? On the face of it they have less to do in a hosted world, and although Microsoft offers commission on the sale of online subscriptions, that might not compensate for lost business.

Then again, cloud services offer new opportunities, still need configuring, and look likely to be a source of new business for partners particularly at a time when the majority of businesses have not yet made the transition.

I’m researching a further piece on the subject and would love to hear honest views from partners such as resellers and solution providers about how Microsoft’s online services are affecting partner business now and in the future. Or maybe you think this cloud thing is overdone and it will be business as usual for a while yet. You can contact me by email – tim(at)itwriting.com – or of course comment below.

Tech Writing