From #KubeCon, Three Things Happening with the Kubernetes Market

This year’s KubeCon+CloudNativeCon was, to say the least, an experience. Normally sunny San Diego treated conference-goers to torrential downpours. The unusual weather turned the block party event into a bit of a sog. My shoes are still drying out. The record crowds – this year’s attendance was 12,000 up from last year’s 8000 in Seattle – made navigating the show floor a challenge for many attendees.

Despite the weather and the crowds, this was an exciting KubeCon+CloudNativeCon. On display was the maturation of the Kubernetes and container market. Both the technology and the best practices discussions were less about “what is Kubernetes” and, instead more about “how does this fit into my architecture?” and “how enterprise-ready is this stuff?” This shift from the “what” to the “how” is a sign that Kubernetes is heading quickly to the mainstream. There are other indicators at Kubecon+CloudNativeCon that, to me, show Kubernetes maturing into a real enterprise technology.

First, the makeup of the Kubernetes community is clearly changing. Two years ago, almost every company at KubeCon+CloudNativeCon was some form of digital forward company like Lyft or cloud technology vendor such as Google or Red Hat. Now, there are many more traditional companies on both the IT and vendor side. Vendors such as HPE, Oracle, Intel, and Microsoft, mainstays of technology for the past 30 years, are here in force. Industries like telecommunications (drawn by the promise of edge computing), finance, manufacturing, and retail are much more visible than they were just a short time ago. While microservices and Kubernetes are not yet as widely deployed as more traditional n-Tier architectures and classic middleware, the mainstream is clearly interested.

Another indicator of the changes in the Kubernetes space is the prominence of security in the community. Not only are there more vendors than ever, but we are seeing more keynote time given to security practices. Security is, of course, a major component of making Kubernetes enterprise-ready. Without solid security practices and technology, Kubernetes will never be acceptable to a broad swatch of large to mid-sized businesses. That said, there is still so much more that needs to be done with Kubernetes security. The good news is that the community is working on it.

Finally, there is clearly more attention being paid to operating Kubernetes in a production environment. That’s most evident in the proliferation of tracing and logging technology, from both new and older companies, that were on display on the show floor and mainstage. Policy management was also an important area of discussion at the conference. These are all examples of the type of infrastructure that Operations teams will need to manage Kubernetes at scale and a sign that the community is thinking seriously about what happens after deployment.

It certainly helps that a lot of basic issues with Kubernetes have been solved but there is still more work to do. There are difficult challenges that need attention. How to migrate existing stateful apps originally written in Java and based on n-Tier architectures is still mostly an open question. Storage is another area that needs more innovation, though there’s serious work underway in that space. Despite the need for continued work, the progress seen at KubeCon+CloudNativeCon NA 2019 point to future where Kubernetes is a major platform for enterprise applications.  2020 will be another pivotal year for Kubernetes, containers, and microservices architectures. It may even be the year of mainstream adoption. We’ll be watching.

TEM Market Leaders Calero and MDSL Merge as Global IT Spend Management Consolidation Continues

Key Stakeholders: Chief Information Officer, Chief Financial Officer, Chief Accounting Officer, Controllers, IT Directors and Managers, Enterprise Mobility Directors and Managers, Networking Directors and Managers, Software Asset Directors and Managers, Cloud Service Directors and Managers, and other technology budget holders responsible for telecom, network, mobility, SaaS, IaaS, and IT asset and service expenses.

Why It Matters: The race for IT spend management consolidation continues. The financial management of IT is increasingly seen as a strategic advantage for managing the digital supply chain across network, telecom, wireless, cloud, software, and service portfolios.

Top Takeaway: The new combined business with over 800 employees, 3,500 customers, and an estimated 2 million devices and $20 billion under management both serves as legitimate competition for market leader Tangoe and an attractive potential acquisition for larger IT management vendors.

[Disclaimer: Amalgam Insights has worked with Calero and MDSL. Amalgam Insights has provided end-user inquiries to both Calero and MDSL customers. Amalgam Insights has provided consulting services to investors and advisors involved in this acquisition.]

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Now Available, The 2020 Guide to Continuous Integration and Continuous Delivery

Amalgam Insights’ Research Fellow Tom Petrocelli has just published a groundbreaking Market Landscape on Continuous Integration and Continuous Delivery titled “The 2020 Guide to Continuous Integration and Continuous Delivery: Process, Projects, and Products

This Market Landscape provides guidance on the processes, projects, products, and vendors that allow leading software development departments to effectively support continuous integration and delivery across their application portfolio. It is recommended for Software Engineering Directors  and IT Executives making “buy versus build” decisions and designing CI/CD workflows.

How CrossKnowledge’s CK CONNECT Solution Effectively Assesses and Trains People Skills: A Neuroscience Evaluation

In a recently published Market Milestone, Todd Maddox, Ph.D., Learning Scientist and Research Fellow for Amalgam Insights, evaluated CrossKnowledge’s CK CONNECT Solution Suite from a neuroscience perspective.

Maddox argues that people (aka soft) skills training is an important part of any organizations Learning & Development strategy, but that most people skills training solutions are ineffective because they engage only the cognitive learning systems in the brain, instead of engaging a combination of cognitive, behavioral, and emotional learning systems in the brain. CK CONNECT meets these challenges and provides the competitive advantage that organizations need to attract, train, and retain the best talent.

For more information, read the full Market Milestone available on the CrossKnowledge website at no cost.

The Need for Simulation and Situational Awareness in Cybersecurity Training – A Neuroscience Perspective

Organizations are more vulnerable than ever to cybersecurity threats. Global annual cybersecurity costs are predicted to grow from $3 trillion in 2015 to $6 trillion annually by 2021. To stay safe organizations must train their employees to identify cybersecurity threats and to avoid them. To address this, global spending on cybersecurity products and services is projected to exceed $1 trillion from 2017 to 2021.

Unfortunately, cybersecurity training is particularly challenging because cybersecurity is more about training behavioral “intuition” and situational awareness than it is about training a cognitive, analytic understanding. It is one thing to know “what” to do, but it is another (and mediated by completely different systems in the brain) to know “how” to do it, and to know how to do it under a broad range of situations.

Regrettably, knowing what to do and what not to do, does not translate into actually doing or not doing. To train cybersecurity behaviors, the learner must be challenged through behavioral simulation. They must be presented with a situation, generate an appropriate or inappropriate response, and must receive real-time, immediate feedback regarding the correctness of their behavior. Real-time, interactive feedback is the only way to effectively engage the behavioral learning system in the brain. This system learns through gradual, incremental dopamine-mediated changes in the strength of muscle memory that reside in the striatum of the brain. Critically, the behavioral learning system in the brain is distinct from the cognitive learning system in the brain, meaning that knowing “what” to do has no effect on learning “how” to do it.

Cybersecurity behavioral training must be broad-based with the goal of training situational awareness. Cybersecurity hackers are creative with each attack often having a different look and feel. Simulations must mimic this variability so that they elicit different experiences and emotions. This is how you engage experiential centers in the brain that represent the sensory aspects of an interaction (e.g., sight and sound) and emotional centers in the brain that build situational awareness. By utilizing a broad range of cybersecurity simulations that engage experiential and emotional centers in different ways, the learner trains cybersecurity behaviors that generalize and transfer to multiple settings. Ideally, it is also useful to align the difficulty of the simulation to the user’s performance. This personalized approach will be more effective and will speed learning relative to a one-size-fits-all approach.

If your organization is worried about cybersecurity threats and is looking for a cybersecurity training tool, a few considerations are in order. First, and foremost, do not settle for a training solution that focuses only on providing learners with knowledge and information around cybersecurity. This “what” focused approach will be ineffective at teaching the appropriate behavioral responses to cybersecurity threats, and will leave your organization vulnerable. Instead focus on solutions that are grounded in simulation training, preferably with content and delivery that is broad-based to train situational awareness. Solutions that personalize the difficulty of each simulation are a bonus as they will speed learning and long-term retention of cybersecurity behaviors.

Canonical Takes a Third Path to Support New Platforms

We are in the midst of another change-up in the IT world. Every 15 to 20 years there is a radical rethink of the platforms that applications are built upon. During the course of the history of IT, we have moved from batch-oriented, pipelined systems (predominantly written in COBOL) to client-server and n-Tier systems that are the standards of today. These platforms were developed in the last century and designed for last century applications. After years of putting shims into systems to accommodate the scale and diversity of modern applications, IT has just begun to deploy new platforms based on containers and Kubernetes. These new platforms promise greater resiliency and scalability, as well as greater responsiveness to the business. Continue reading “Canonical Takes a Third Path to Support New Platforms”

Skillsoft’s Compliance Solution Provides the Competitive Advantage Organizations Need in the Modern Workplace

In a recently published Analyst Insight, Todd Maddox, Ph.D., Learning Scientist and Research Fellow for Amalgam Insights, evaluated Skillsoft’s Compliance Solution Suite from a learning science perspective—the marriage of psychology and brain science.

Maddox argues that compliance is an area where organizations cannot afford to be negligent. Training isn’t a luxury, it’s a necessity. For training to be effective, it needs to optimally engage appropriate learning systems in the brain and be designed in such a way that it effectively trains hard skills, behavioral skills, interpersonal skills, and situational awareness.

For more information, read the full Market Milestone available on the Skillsoft website at no cost.

Why Skillsoft’s Workplace Harassment Prevention Training Solution Primes Behavior Change: A Learning Science Evaluation

In a recently published Analyst Insight, Todd Maddox, Ph.D., Learning Scientist and Research Fellow for Amalgam Insights, evaluated Skillsoft’s Workplace Harassment Prevention Training Solution from a learning science perspective—the marriage of psychology and brain science.

Maddox shows that effective harassment prevention training requires content that is engaging and highlights the nuances of harassing behavior. This content must then be delivered in a way that broadly engages multiple learning and memory systems in the brain in a way that “draws the learner in” and primes the learner for behavior change.

For more information, read the full Market Milestone available at no cost on the Skillsoft website.

Augmented Reality in Product Development: A Neuroscience Perspective

 

3D Dynamic Representation

Product development is a collaborative process in which the product evolves from an idea, to drawings and ultimately to a physical prototype. This is an iterative process in which two-dimensional (2D) static images and schematics drive development early in the process only later leading to the development of a physical 3-dimensional (3D) prototype. This approach places a heavy load on the cognitive system in the brain because 3D dynamic representations and imagery must be constructed in the brain from a series of 2D static images. Continue reading “Augmented Reality in Product Development: A Neuroscience Perspective”

Look Beyond The Simple Facts of the Cimpl Acquisition

(Note: This blog was co-written by Hyoun Park and Larry Foster, an Enterprise Technology Management Association Hall of Famer and an executive who has shape the Technology Expense Management industry. Please welcome Larry’s first contribution to Amalgam Insights!)

On August 22, 2019, Upland Software announced the acquisition of Cimpl (f.k.a. Etelesolv), a Montreal-based telecom expense management platform that was the market leader in the Canadian market and had expanded into the United States market. With this acquisition, Cimpl will become a part of Upland’s Project & Financial Management Solution Suite and add approximate $8 million in annual revenue.

Context for the Acquisition

The TEM (Technology Expense Management) industry has experienced a continual series of ebb-and-flow acquisitions/mergers over the past twelve years. The typical TEM acquisition/merger encompasses two or more independent entities within the realm of TEM, WEM (Wireless Expense Management) or MMS (Managed Mobility Services) merging to create a more comprehensive expense management solution portfolio with superior global delivery capabilities.

The reality is that many of these mergers are driven by economic reasons where one or both entities can reduce overhead by eliminating duplicate services. Overhead is eliminated by unifying back-office operations and amalgamating technology platforms. These types of consolidation mergers are typical in a maturing industry that is eventually dominated by a few leading solution providers representing the majority of market share. All of the leading TEM solution providers including Tangoe, MDSL and Calero encompass a long history of multiple “like-minded mergers”.

Cimpl as an outlier in the TEM market

Until this recent acquisition, Cimpl has maintained the persona of the independent dark horse of the TEM industry quietly residing in Quebec, Canada refining its multi-tenant cloud platform and progressively building its market share.

Unlike most TEM managed service solution providers, Cimpl has decided to focus on being mainly a pure software company and providing a white-label technology platform for its delivery partners. In early 2018 CIMPL stealthily started to expand its physical presence into the United States. Since its inception, Cimpl has continued to progressively achieve conservative incremental success and stay profitable in contrast to a number of TEM vendors that have gone through boom-or-bust cycles driven by external funding (or the lack thereof).

The Challenge for TEM

The traditional acquisition playbook is preventing the TEM industry from being recognized as a strategic asset by organizations. Nonetheless, the TEM industry is experiencing a dramatic paradigm shift as organizations continue to replace legacy communication services with the ever-growing spectrum of cloud-based services. Traditionally, TEM solutions have focused on validating the integrity of invoice charges across multiple vendors prior to payment and allocating expenses to the respective cost centers leveraging the leased service. Enterprises derive value from TEM solutions by enabling a centralized ICT (Information and Communications Technology) shared service to automate the lifecycle from provisioning through payment and managing the resolution of disputed invoice charges for essentially static services.

However, as organizations adopt more ephemeral cloud services that encompass multi-vendor private, public and hybrid leased environments for compute, storage, API-enabled integrations, connectivity, input/output, and telecommunications, the purpose of the centralized ICT business operation is being transformed from managing daily operations to a fiduciary broker focused on optimizing technology investments. Unlike the recurring charges that represent the majority of traditional telecom charges, cloud services are consumption-based, meaning that it’s the responsibility of the client user to deactivate and manage the appropriate configuration of contracted services based on statistical analysis and forecast of the actual usage.

In the world of cloud, the provisioning activities such as activations, changes, and deactivations are done “on-demand,” completely independent from the ICT operation. The primary focus of ITEM solutions is to manage recurring and non-recurring invoice charges in arrears. As ICT operations evolve into technology brokers, they need real-time insight underpinned by ML and AI algorithms that make cost optimization recommendations to add, consolidate, change or deactivate services based on usage trends.

Why the CIMPL acquisition will help Upland

This context brings us to the real ingenuousness of the Cimpl acquisition. In the typical quiet financial days of August when everyone is away on vacation, Upland Software announced an accretive acquisition of Cimpl with a purchase price of $23.1M in cash and a $2.6M cash holdback payable in 12 months. Upland expects the acquisition to generate annual revenue of approximately $8M, of which $7.4M is recurring. The keyword buried within all of those financial statistics is “accretive” which means their strategy is to help increase natural growth.

Upland already has an impressive complementary portfolio of profitable software solutions. A closer look at the acquisition of Cimpl shows how Upland is formulating a solution strategy to manage all aspects of the Information and Communication Technology business operations.

The strategic value of the Cimpl acquisition becomes very clear when you recognize that Upland is the first company to combine an IT Financial Management platform (ITFM), ComSci, with an IT Expense Management-based solution (ITEM), Cimpl. Upland already owns additional complementary solutions such as a document and workflow automation, a BI platform, customer engagement platform, and a knowledge-based platform. With these components, Upland is working to create an industry-leading ERP-type solution framework to automate, manage, & rationalize all aspects of ICT business operations.

Although both ITFM and ITEM support the ICT business operations, they focus on different aspects. ITFM is predominately used on the front end to manage budgets and on a monthly basis to support internal billing/chargeback activities and leveraged by the IT CFO office whereas ITEM solutions like Cimpl are used by analysts and operational managers because they focus on managing the high volumes of transactional operations and data throughout the month, including provisioning and payment of leased services such as both landline and mobile communication services and now the ever-expanding array of cloud services.

Looking Forward: Our Recommendations

In this context, take the following recommendations into account based on this acquisition.

Expect other leading TEM, ITFM, CEM/CMP (Cloud Expense Management and Cloud Management Platform) solution providers to develop competitive solution frameworks that bring multiple IT categories together from a finance and expense management perspective.

ICT managers need to evolve and transform their solution to due diligence approach beyond pursuing and leveraging independent ITFM, ITEM, CEM/CMP solutions to choosing solutions with comprehensive IT management frameworks. As IT continues to become increasingly based on subscriptions, project-based spend, and on-demand peak usage across a variety of categories, ICT managers should aim towards having a single management control plane for finance and expenses rather than depend on a variety of management solutions

Real-time management is the future of IT expense management. The next levels of operational efficacy will be underpinned by more comprehensive real-time insight that helps organizations understand the most optimal way to acquire, configure and consume inter-related cloud services and pay their invoices. This will require insights on usage, project management, service management and real-time status updates associated with expense and finance. By combining financial and operational data, ICT managers will have greater insights into the current and ongoing ROI of technology under management.