| THE INDEPENDENT RESOURCE FOR IT EXECUTIVES

Q2 2010

BI world
in a
virtual
Plus, security: D av e A b r a h a m
Fo u n d e r a n d C E O
Signify

What you need to Laura DiDio

know
Principal Analyst
In f o r m a t i o n Te c h n o l o g y In t e l l i g e n c e C o r p

Mar tin Kuppinger

Senior Partner and Founder
Kuppinger Cole

Bill Moran
Principal Analyst
Ptak Noel & A ssociates

C o r e y Na c h r e i n e r
Senior Security Analyst
WatchGuard
ETM ■ CONTENTS PAGE

Contents

7 Editor and
contributors page
10 A new breed of players
26 Identity for the cloud—
What do we really need?
CLAUDIA IMHOFF (INTELLIGENT MARTIN KUPPINGER (KUPPINGER
SOLUTIONS) moderates a panel discussion COLE) sees the evolution of identity and access

8 Industry snapshot and on a range of business intelligence topics with
The ETM community the help of SANDY STEIER (1010DATA),
ELISSA FINK (TABLEAU SOFTWARE),
DAVE SCHRADER (TERADATA), and
RICHARD NIESET (KICKFIRE).
management as the key to avoiding security and
management risks—but it has to be recognized
as integral to all parts of the business, not just the
cloud.

9 Professional profile
22 Secure and social 28 Search—What’s
for you?
in it
The search and content processing sector
SAM MASIELLO (MCAFEE), talks to is in transition, making for both an exciting
ETM’S ALI KLAVER about the changing threat and challenging time. STEPHEN E.

82 Events and features landscape and how it applies to organizations and
social media, now and in the future.
ARNOLD (ARNOLDIT.COM), author
of the first three editions of the Enterprise
Search report, seeks answers from KAMRAN
KHAN (SEARCH TECHNOLOGIES),
PAUL DOSCHER (EXALEAD), MARC
KRELLENSTEIN (LUCID IMAGINATION)
and JASON HUNTER (MARK LOGIC).

40 The heat is on
LAURA DIDIO (ITIC) talks about the
partnerships, and divisions, between the two
sets of players in the current virtual desktop
infrastructure market—Citrix/Microsoft and
VMware/EMC.

4

44 BPM—Changing
you do business
how
Process management is changing, and
business process management itself is
changing how enterprises do business.
DANA GARDNER (INTERARBOR
SOLUTIONS) leads a panel discussion
on current and future trends, joined by
MALCOLM ROSS (APPIAN), OLIVIA
TRILLES (AURAPORTAL) and CHRIS
HORAK (SAP).
52 Authenticating
cloud
the
While much has been discussed about the
security of applications and data in the
cloud, there’s a blind spot when it comes to
authentication. DAVE ABRAHAM
(SIGNIFY) helps to shed light on the issue.
54 Immediate results
Remain Software is focused on successful
change management. WIM JONGMAN
and MARCO KOK talk to ETM’S ALI
KLAVER about how they’re helping businesses
succeed with the help of H. UTKU ALATAS
(ISBANK).
58 Join the conversation
How can today’s new tools and techniques
provide business value to enterprise
organizations? MATTHEW LEES
(PATRICIA SEYBOLD GROUP) gets the
expert opinion of CHRISTOPHER LAMB
(IBM), MATT TUCKER ( JIVE) and
CARLOS DIAZ (BLUEKIWI SOFTWARE)
on the mindsets both organizations and
individuals should have in order to get the most
out of their social technology investments.
CONTENTS PAGE ■ ETM
Contents
66 IBM’s
review
POWER7 in
In February, IBM announced its latest
microprocessor, POWER7, along with changes
to the latest version of AIX which supports
the advanced features of POWER7. BILL
MORAN (PTAK NOEL & ASSOCIATES)
discusses chip properties and compares its
performance to the older POWER6 while
examining the competitive implications of the
new systems.
70 No time? No staff ?
Problem solved!
How do you find the perfect PCI and compliance
solution for your company that works every
single time? MIKE WALDER (SECURE
TECHNOLOGY HAWAII) talks to ETM’S ALI
KLAVER about why they chose AirTight, and
why it’s been so successful.
74 Back on track
Now that the economy is slowly recovering,
businesses are beginning to look at cloud
computing with renewed interest—and NaviSite
is ready to meet demand. ETM’S ALI KLAVER
talks to CLAUDINE BIANCHI and
DENIS MARTIN about their solutions,
including application management, and where
they see the market going.
78 Securing the future
COREY NACHREINER
(WATCHGUARD) predicts the most important
threats to IT security this year.
5
 EDITOR’S PAGE ■ ETM CONTRIBUTORS

Fo u n d e r / P u b l i s h e r
Amir Nikaein
Managing Editor
A l i K l av e r

BI in a virtual world Ar t Director

Ariel Liu
A ssociate Designer
Michael Chan
In the last few months I’ve noticed a quiet explosion in discussions involving
virtualization and the cloud. Admittedly, after the economic lag, a lot of companies put He a d o f D i g i t a l
A l f o n s o Mu n o z
developments in virtualization on hold, but with this new surge of interest I like to think
that this heralds a new stage of growth for companies globally. Po d c a s t / S o u n d E d i t o r
Mark Kendrick
This issue of ETM in particular deals with some of the most up-to-date trends in
virtualization and the cloud, including a fantastic piece by Martin Kuppinger on “Identity A ssociate Editors
M a r y Wr i g h t
for the cloud—What do we really need?” (page 26). Plus, Laura DiDio (ITIC) talks
about the main players in virtual desktop infrastructure today (page 40), as well as Account Executives
Jo e M i r a n d a
featuring on our profile page for this issue. Sandino Suresh
We’ve also introduced a special new section on www.globaletm.com around Aicha Gultekin
enterprise search with the help of Stephen Arnold (ArnoldIT). He moderates a No r t h A m e r i c a n A c c o u n t E x e c u t i v e s
dynamic panel podcast featuring Exalead, Search Technologies, Mark Logic and Lucid Fa r r a h Tu t t l e
Ye s s i t A r o c h o
Imagination. You’ll find the transcript on page 28.
Operational intelligence is running hot at the moment so we’re featuring two Marketing Executive
Alex Themistos
additional panel podcasts, one on business intelligence (page 10, moderated by Claudia
Imhoff from Intelligent Solutions), and another on business process management (page
44) with Dana Gardner (Interarbor Solutions). Contributors
There are also quite a few opinions on security this issue, including a piece on the top D av e A b r a h a m
10 security threats of 2010 by Corey Nachreiner from WatchGuard (page 78). Fo u n d e r a n d C E O
Signify
I hope that we’ve provided some handy updates and essential solutions for your
virtualization, security and BI needs this issue. Laura DiDio
Principal Analyst
Thank you for reading, and if you would like to contribute to any future issues I n f o r m a t i o n Te c h n o l o g y I n t e l l i g e n c e C o r p ( I T I C )
of ETM, please feel free to contact us at www.globaletm.com or via email at editor@
Mar tin Kuppinger
enterpriseimi.com Senior Par tner and Founder
Kuppinger Cole
B i l l Mo r a n
Principal Analyst
Ptak Noel & A ssociates
Ali Klaver C o r e y Na c h r e i n e r
Senior Security Analyst
Managing Editor WatchGuard

Enterprise Technology Management

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7
ETM ■ INDUSTRY NEWS

Industry snapshot
Google/China row Nokia goes open Poll results
continues source
Since the last issue of ETM we have introduced
a poll facility on gloabletm.com. The results have
been surprising:

•58.3% of you think that the iPad

heralds a new age of information at your
fingertips

•40% of you use Twitter for social

April saw Google pull its search service out of
China after disagreements stretching over the
past two months. Google’s recent move to Hong
Kong was slammed by Chinese authorities
which has essentially allowed them to stop
self-censoring. It still means that the Chinese
government would prevent mainland users from
seeing “sensitive” search results.
Styled as a rival to the iPhone and Google’s
Android operating system, Nokia’s N8 phone is
the first handset to use the Symbian operating
system since it became open source. The N8
has a 12 megapixel camera and allows people to
record and edit HD video clips, as well as watch
web TV services.
networking, both business and personal, while
40% of you claim to not use Twitter at all
•98% of you would like a social
networking site that is especially directed at
enterprise IT executives... ETM can help!
www.gloabletm.com

THE ETM Community

ETM IS HERE TO HELP YOU GET THE
ANSWERS AND SOLUTIONS
YOU NEED TO HELP YOUR BUSINESS
SUCCEED—
it’s something we’re passionate about. So we’ve
developed a social networking platform catered
specifically to your needs.

You’ll be able to connect with the IT community

through your personal profile and blogs,
by uploading whitepapers, taking part in
discussions, and connecting directly with like-
minded IT executives—plus much more.

We’re on the verge of launching during the next

quarter, so please keep an eye on www.globaletm.
com for the new-look website and social
networking platform. We’d love to know what
you think: aklaver@enterpriseimi.com

8
 LAURA DIDIO ■ PROFESSIONAL PROFILE

Meet: Laura DiDio

Principal Analyst
Information Technology Intelligence Corp (ITIC)

I
TIC, founded by Laura DiDio in 2002, provides primary research and
consulting on topics ranging from soft ware, hardware, networking, virtualization
and cloud computing, to the services industries that support the technology
including outsourcing. Prior to founding ITIC, Laura spent over six years
at Yankee Group, where she held the title of Research Fellow. She has also held
reporting positions at computer networking industry trade publications including:
Computerworld, Network World, Communications Week, LAN Times, and Digital Review.
She shares her story so far with ETM: Laura DiDio

HOW DID YOU START OUT IN THE IT inventing the integrated circuit chip. Noyce was rectified the situation and the corporate client
INDUSTRY? a true genius and it was a privilege to interview saved over $100,000.

LD:
him. And of course, thanks to the high technology
It was pure propinquity. I had vendors, I’ve visited some amazing countries, HOW DO YOU SEE THE FUTURE OF
been working as an on-camera investigative including a stay at the Hotel Carlton in Cannes, CLOUD COMPUTING?

LD:
reporter for CNN in the early 1980s. At the France.
time, CNN was struggling financially and by I think corporations will adopt it at
chance I was recruited to cover semiconductors WHAT DO YOUR COLLEAGUES SAY a measured pace with private cloud adoptions
for Electronic Buyer’s News. I literally began ABOUT YOU? WHAT ARE YOUR outpacing public cloud adoptions by a 2-to-1
covering high tech at the chip level—Intel, STRENGTHS? margin for the next 12 to 18 months. Presently,

Motorola, Texas Instruments, Fairchild, National
Semiconductor—just at the time the industry
went into an explosive growth phase.
HOW DID YOU END UP WHERE YOU ARE
TODAY?
LD:
This is a tough one because they
don’t always tell me. I would hope they say
that I’m hard working, professional, and a team
player always willing to help out my co-workers.
My top strengths are writing, conducting
many companies are taking a “wait and see”
attitude about putting their critical line-of-
business applications into the cloud until they can
be sure of key issues like security, response time
and costs.

LD:
primary research and articulating my findings WHO DO YOU THINK ARE THE BEST
It’s been an interesting journey. to assist clients in optimizing their business and ANALYST COMPANIES IN THE MARKET
After starting out covering semiconductors I technology needs. TODAY?

LD:
transitioned to computer hardware, software,
applications, networking and security. From IF YOU COULD CHANGE ONE THING I’m admittedly biased, but I like the
there it was a natural progression to covering the ABOUT YOUR JOB, WHAT WOULD IT BE? smaller independents and start-ups like Altimeter,

business issues that are closely intertwined with
technology, such as TCO, ROI, licensing and
contract negotiation, and regulatory compliance
issues. In 1998, the rise of the internet and the
transition to digital media began to impact
newspapers and magazine revenues, so I thought
it was a good time to transition to the analyst
ranks. I joined Giga Information Group in the fall
LD:
I’d clone myself, so I have more time. I
love the high technology industry and the people
in it. It’s fast paced and demanding but sometimes
I wish we could have regular 8am-6pm business
hours.
CAN YOU GIVE US A CASE STUDY THAT
The Enderle Group, Horses for Sources and Pund-
IT. Of the big named firms, I think IDC does the
best job of tracking unit shipments and revenues,
and Forrester Research delivers outstanding value
to its clients via its inquiries.
HOW DO YOU STAY UP-TO-DATE
PROFESSIONALLY?

LD:
of 1998. HIGHLIGHTS WHAT ITIC CAN DO?

LD: I constantly read, take briefings with

WHAT IS THE MOST REWARDING I helped a corporate client negotiate a vendors and corporate clients, attend conferences,
EXPERIENCE YOU’VE HAD? better licensing deal with one of their vendors that and talk with peers.

LD:
As a reporter I got to interview the late,
great, Robert Noyce, who co-founded Intel Corp
(along with Andrew Grove and Gordon Moore)
and who, along with Jack Kirby, is credited with
saved them over $3 million. I also helped another
client re-negotiate their sales contract after I
determined that the sales person had deliberately
overcharged them. I brought the incident to the
attention of a high level executive who quickly
If people want more information about you,
where can they go?
Visit ITIC: www.itic-corp.com

9
ASK THE EXPERT ■ SOCIAL MEDIA AND THE THREAT LANDSCAPE

Secure and
social
SAM MASIELLO (McAfee),
talks to ETM’S ALI KLAVER about the
changing threat landscape and how it
applies to organizations and social media,
now and in the future.

http://www.GlobalETM.com

22

AK: SAM, HOW HAS THE THREAT LANDSCAPE CHANGED IN
THE PAST TWO YEARS? HAS IT CHANGED DRAMATICALLY IN
THE PAST SIX MONTHS OR SO?
SM:
What we’ve seen over the past couple of years is the migration
from these end mass type of attacks where you see phishing emails sent to
millions of people. These show up on the radars of just about every filtering
provider and ISP fairly quickly, and they get shut down quickly.
But it also extends to larger numbers of targeted attacks going after
individual organizations or groups of organizations, in an attempt to either
steal data or proprietary and intellectual property.
The game really has changed from the end map type of attacks where
they’ve tried to cast as wide a net as possible and see who they can get
on their phish hook, to much more targeted attacks aimed at individual
organizations and even individual people.
The messages they’re sending to these people to try to trick them
include much more personalized information—something to the effect of
the phone number of the company or the CEO of the company that they
generally don’t put in generic phishing emails—to make it look a bit more
legitimate.
It’s been fairly successful in some instances. A good example is
something called Operation Aurora. We found that there were some
very high value target companies, like Google, that were being targeted
specifically by cybercriminals to try to steal their intellectual property.
Imagine all the research projects that are going on at Google and
what could be the next big money maker for them. If someone were to
potentially get in there and steal that information prior to Google going to
market, then another company could beat them to it.
AK: WITH THE CONTINUED RISE OF SOCIAL MEDIA THESE
DAYS, THESE SORTS OF ATTACKS CAN ALMOST BE HIDDEN, IN
A SENSE, SO HOW SHOULD ORGANIZATIONS HANDLE SOCIAL
MEDIA? SHOULD THEY ALLOW LIMITED ACCESS, BAN IT
COMPLETELY, OR BE COMPLETELY OPEN?
SM:
There is a lot of opinion on this topic and I think that it’s
important to discuss it because there are a lot of companies who have gone
to both ends of the extreme. Some allow it completely and don’t do any
sort of monitoring of the content; and there are some that, in an effort to
protect themselves, block all access to social media sites—which in my
personal opinion is a little draconian.
What you need to do is a hybrid approach. You need to be able to have
your marketing department and employees using these social media outlets
because right now it’s a great way to market your organization.
Whether you’re a small or large company, social media is where people
are going now. They’re focusing less on individual advertisement-laden type
sites, and going to social media sites where people have invested a lot of
money in trying to promote their own brands.
Since people are using social media sites like Facebook and MySpace
much more frequently: it’s a great opportunity for these companies to be
able to have targeted advertisement based on people’s interests on these
social media sites.
From a marketing standpoint, if a company is blocking access
completely, they’re kind of missing the boat. But I think they also need to
make sure that their employees aren’t doing anything that could potentially
violate the terms and conditions of their employment.
Like, for example, talking about proprietary projects, or talking about
proprietary technology or confidential projects. These water cooler-type
chats are potentially huge opportunities for data leakage.
SOCIAL MEDIA AND THE THREAT LANDSCAPE ■ ASK THE EXPERT
Companies have to make sure that they’re allowing access to these sites
because they provide huge marketing opportunities for them, but they also
have to make sure that they monitor the information their employees are
putting on these sites because they could also be high risk.
AK: I LIKE YOUR HYBRID APPROACH SAM, PARTICULARLY
WHEN YOU’RE CONSIDERING MARKETING YOUR COMPANY,
AND IT’S ALSO ABOUT EDUCATING THE EMPLOYEE AS WELL,
IF YOU’RE GOING TO ALLOW FREE AND OPEN ACCESS TO
VARIOUS SOCIAL MEDIA NETWORKS.
DOES THIS FALL INTO BEST PRACTICES? CAN YOU
RECOMMEND FIVE OF THE MOST IMPORTANT BEST
PRACTICES AN ORGANIZATION SHOULD FOLLOW TO
PROTECT THEIR NETWORK?
SM:
You just mentioned the first one when you talked about
educating employees, and educating their users. I think that making sure
you educate your users is the most important aspect of protecting the
information that’s in, or going out, of an organization.
The reality is that the user is the weakest link in the security chain—
whether it’s posting information on a social media site, clicking on an
attachment in an email, or protecting end-point devices against data
leakage, viruses and spam. So I think you mentioned the first one very
eloquently, right off.
We need to make sure we’re educating the users, to make sure they
understand what is allowed and what spam and phishing emails look like. One
of the things very prevalent right now is fake AV, where you go to a website
and a window pops up saying that your machine is being scanned for a virus.
“company
... McAfee is the only
whose sole focus
is on security.”
It inevitably finds something because it’s actually a fake piece of
malware that’s saying you have something wrong with your machine when
you actually don’t. That’s one of the ways that people are being tricked
into downloading fake antivirus software, giving up their credit card
information, and downloading malware onto the machine.
The next four are kind of all bunched together, but they fall under a
defence in depth type of approach. Push protection out from your network as
far as you possibly can so that you are only accepting traffic on your network
that you have to, and not all of the attacks that are coming in from the outside.
The reality is that the number of attacks is increasing in frequency and
sophistication every single day, and so by pushing as much as that out into
the cloud as you possibly can, you’re limiting the amount of bandwidth you
have to accept on your network for these attacks.
For the things that get passed to cloud—make sure you have perimeter
protection on your inbound network such as looking for spam and viruses,
and an IPS solution in place that’s looking for other intrusions that are
trying to attack your network.
Having endpoint protection in place is another big one because the
endpoint is no longer just the PC’s or the laptops that you have sitting
23
EXECUTIVE PANEL ■ ENTERPRISE SEARCH

Search—
What’s in it for you?
The search and content processing sector is in transi-
tion, making for both an exciting and a challenging time.
STEPHEN E. ARNOLD (ARNOLDIT.COM),
author of the first three editions of the Enterprise Search
report, seeks answers from KAMRAN KHAN
(SEARCH TECHNOLOGIES), PAUL DOSCHER
(EXALEAD), MARC KRELLENSTEIN
(LUCID IMAGINATION) and JASON HUNTER
(MARK LOGIC).

28

SA: I’D LIKE TO ASK EACH OF OUR PARTICIPANTS TO BRIEFLY
INTRODUCE THEMSELVES AND POSITION THEIR FIRM’S
SEARCH SERVICES AND TECHNOLOGIES—PAUL WOULD YOU
LIKE TO START?
PD:
I’ve been in software sales for over 30 years with a number of
well known companies such as Oracle, BusinessObjects, VMware and a
plethora of smaller companies.
Exalead was founded in 2000 by former AltaVista lead developers.
Traditionally, the company focused on building large scale enterprise search
technology first distributed in 2004. We now have over 250 customers
worldwide such as the World Bank, PriceWaterhouseCoopers and La Poste
in France.
In the past year we’ve seen an evolution in enterprise search to
something that is now being commonly referred to as search-based
applications. We see huge opportunity as this market evolves to get closer to
mission-critical applications that are being delivered to our customers today
by Exalead CloudView technology.
KK:
I’m the CEO and founder of Search Technologies. I started
in the search business in the early ‘90s with Excalibur Technologies which
eventually became Convera. I founded Search Technologies in 2005 to focus
primarily on helping customers to implement search solutions.
Our business is about getting the solution working, rather than building
products, so we work with a number of search software providers, including
some of the panellists today. We operate globally, and in our five year history
we’ve delivered more than 20,000 days of consulting to over 150 customers.
We’re search product agnostic, although a large proportion of our
implementation work today involves FAST Search from Microsoft,
SharePoint, the Google Search Appliance and also open source software such
as Solr and Lucene.
JH:
I’m the Principal Technologist at Mark Logic. I’ve been here
about six years, just after the company de-cloaked seven years ago and started
telling everyone what we do.
We’ve now got around 200 customers, 160 employees, and do a lot of
work in media, government and financial services with customers like Lexis
Nexus, Elsevier, the National Archives and Records Administration and
more.
What we sell that all these people are using is an XML server—it’s an
XML-centric, transactional, search-centric, structure aware, schema free,
very fast, clustered database server. So we think search-based applications are
key. We actually go as far as calling them information applications.
ENTERPRISE SEARCH ■ EXECUTIVE PANEL
http://www.GlobalETM.com
We see people doing things like creating content, retrieving it, reusing it,
delivering it, collaborating together, visualizing and analyzing, and as search
being at the heart of all these things.
MK:
I started Lucid Imagination in 2007 and I’ve been working in
enterprise search for about 20 years. I was the Chief Technology Officer at
Northern Light back in the late ‘90s.
I started Lucid because I realized that there was now open source
software for search, Lucene and Solr, which was as good or better than the
commercial products, and was free. So the combination of that software, and
free, seemed winning to me.
We provide support, services and value-add software around Lucene and
Solr—basically everything that the open source doesn’t have, we try to provide.
We sell formal support contracts, provide consulting, training,
knowledge base and other services, and provide additional software to
complement what’s in the open source.
SA: PAUL, FROM EXALEAD, DOES A PLAIN VANILLA KEYWORD
SEARCH DELIVER VALUE FOR AN EMPLOYEE SEEKING BUSINESS
INFORMATION TODAY?
PD:
I believe that it can, but when you use the words plain vanilla
keyword search, what you’re really talking about is how you can help people
navigate through a set of information so that they can get to the information
they want.
The days of people doing a Google search where they get the top
10 results delivered page after page—those kinds of opportunities for
information are fast becoming very passé and frustrating for users.
What we see today are applications that help the individual through very
easy to use and flexible interfaces that give them the capacity to navigate
through information after it is intelligently combined in an index. Semantic
relevance is maintained and managed so that different styles of information,
once integrated into an index, maintain their semantic relevance and
integrity.
Exalead builds very flexible and adaptable user interfaces to work across
the entire ecosystem. It could be a very simple keyword search, or as complex
as a dashboard that shows all sorts of graphical interfaces.
We have a customer who is a very large logistics company and their
instantiation was in fact a keyword search. But the power of the retrieval, and
then the assistance through navigational tools to help the user drive down
to the specific items of information they want, has now become so advanced
that you can build business intelligence-looking dashboards and people
won’t realize that it’s a search technology underneath. 
29
ANALYST FEATURE ■ VIRTUAL DESKTOP INFRASTRUCTURE
The HEAT is on
T
here’s no hotter market in high tech this year than Virtual
Desktop Infrastructure (VDI) and you don’t need sales and
unit shipment statistics to prove it. No, the best measurement
of VDI’s hotness is the sudden flurry of vendor announcements
accompanied by a concomitant rise in vitriol.
The main players in the VDI market are actually two sets of pairs. It’s
Citrix and Microsoft lining up against VMware and EMC for round two in
the ongoing virtualization wars. On March 18, Citrix and Microsoft came
out swinging, landing the first potent, pre-emptive punches right where they
hope will hurt VMware the most: in its pocketbook.
40
LAURA DIDIO (ITIC)
talks about the partnerships, and
divisions, between the two sets of
players in the current virtual desktop
infrastructure market—Citrix/
Microsoft and VMware/EMC.
Citrix and Microsoft unveiled a series of VDI initiatives that include
aggressive pricing and more simplified licensing models. To demonstrate just
how committed they are to taking on VMware and EMC, the two firms even
went so far as to combine their respective VDI graphics technologies.
At stake is the leadership position in the nascent, but rapidly expanding,
global VDI market. The results of the ITIC 2010 Global Virtualization
Deployment and Trends Survey, which polled 800+ businesses worldwide in
December/January, indicate that 31% of respondents plan to implement VDI
in 2010—that’s more than double the 13% that said they would undertake a
VDI deployment in 2009.

Application virtualization is also on the
rise. The same ITIC survey found that 37%
of participants plan application virtualization
upgrades this year, up from 15% who responded
affirmatively to the same question in 2009.
The current installed base of VDI
deployments is still relatively small; hence
the statistics that show the number of
deployments doubling year over year must
be considered in that context. Nonetheless,
double digit deployment figures are evidence
of strengthening demand and a market
that is robustly transitioning from niche to
mainstream.
The spate of announcements from
Microsoft and Citrix were clearly intended to
capitalize on the growth spurt in VDI. At the
same time, the companies threw down the
gauntlet with initiatives aimed at solidifying and
expanding their base of current VDI customers
while serving the dual purpose of luring
VMware customers away from that company’s
VDI platform.
They include:
• “VDI KICK START”
This wide-ranging sales promotion, which runs
through December 31, 2010, seeks to jumpstart
VDI deployments by lowering the entry level
pricing for customers purchasing Microsoft and
Citrix technologies.
As part of this deal, existing Microsoft client
access licensing (CAL) customers will pay $28
per desktop for uP to 250 users to purchase the
Microsoft Virtual Desktop Infrastructure Suite,
Standard edition, and Citrix’s XenDesktop
VDI Edition for one year. That’s roughly a 50%
discount off the list prices that corporations
have paid up until now for their annual CALs.
This is crucial for cost-conscious businesses.
Client access licenses typically represent
the lion’s share of their licensing deals since
desktops outnumber servers in mid-sized and
large enterprises. In addition, the two firms
merged Microsoft’s 3D graphics technology
for virtual desktops, called RemoteFX, with
Citrix’s high-definition HDX technology in
order to deliver greater integration and higher
performance capabilities.
• THE MICROSOFT VIRTUAL
DESKTOP ACCESS (VDA)
LICENSE PLAN
Organizations that use Thin Client devices
which are not included or covered under
Microsoft’s SA maintenance plan can now
purchase the VDA licenses at a retail price of
$100 per device per annum. This targets end
users who travel or telecommute and need to
CHANGEVIRTUAL DESKTOP INFRASTRUCTURE ■ ANALYST FEATURE
use personal devices or public networks to
access their corporate data.
Microsoft also made another move towards
simplifying its virtualization licensing plan.
Starting July 1, Microsoft SA customers will no
longer be required to purchase a separate license
to access Windows via a VDI.
• THE “RESCUE FOR VMWARE VDI”
(THE NAME SAYS IT ALL)
This promotion is a direct attack on
“Hardware vendors like Dell, HP and
IBM et al all have a
future success
market.”
VMware. Like the VDI Kick Start program, it
runs through December 31, 2010.
Under the terms of this deal, any Microsoft
Software Assurance licensing/maintenance
customer can replace their existing VMware
View licenses for free. VMware View users who
opt out of that platform in favor of the Citrix
and Microsoft offerings will receive up to 500
XenDesktop VDI Edition device licenses and
up to 500 Microsoft VDI Standard Suite device
licenses free for an entire year once they trade in
their VMware View licenses.
Dai Vu, Microsoft’s director of
virtualization marketing, said the
announcements were all about delivering more
value to desktop customers and simplifying and
extending organizations’ licensing rights.
The Citrix/Microsoft announcements also
cement the close working partnership and the
“enemy of my enemy is my friend” relationship
the firms have enjoyed for many years. By
bundling their respective VDI offerings
together, the two companies should also ensure
integration and interoperability which are
crucial components for each and every layer in a
virtualized data center environment.
VMWARE AND EMC: NOT
STANDING STILL
VMware and EMC executives have yet to
publicly respond to the Microsoft/Citrix
initiatives. However, it’s almost certain that
VMware will have to offer its current and
prospective VDI accounts incentives to counter
the Microsoft/Citrix alliance.
Cash-strapped corporations and IT
departments are all on the lookout for top notch
products at bargain basement prices. And it
doesn’t get much better for customers than the
free Rescue for VMware VDI program.
VMware built up a commanding lead in
the server virtualization arena over the last
five years by virtue of being first to market
and delivering leading edge features and
performance in its signature ESX Server
product. VMware’s competitors have spent
stake in the
of the VDI
the last several years playing catch up in server
virtualization. This allowed them to charge a
premium price for its premier offerings.
Depending on the size and scope of the
individual organization’s server virtualization
deployment, customers paid on average 35%
to as much as 75% higher for VMware server-
based offerings. There were surprisingly few
complaints.
The emerging VDI and application
virtualization markets are a different
story. Only about 5-8% of organizations
worldwide have fully virtualized their desktop
infrastructure. So it’s too soon to declare a clear
market winner.
It’s safe to say that Citrix, Microsoft and
VMware are all market leaders in this segment.
This time around though, Microsoft and
Citrix are determined not to let VMware and
EMC run away with the race by building an
insurmountable lead.
Meanwhile, VMware and EMC have not
been idle. Former Microsoft executive Paul
Maritz succeeded VMware founder Diane
Greene following her 2008 departure as the
company’s president and chief executive
officer. Since then he has made tangible moves
to bolster VMware’s position in the VDI and
application virtualization arenas. Maritz and
EMC CEO Joe Tucci make a formidable
combination, as do EMC and VMware.
EMC purchased VMware in 2004 for $635
million and it owns an 86% majority stake in the
server virtualization market leader. In the past
several years, VMware’s fortunes and revenues
41
ANALYST FEATURE ■ REVIEW

IBM’s POWER7
in review BILL
In February IBM announced its latest microprocessor,
POWER7, along with changes to the latest version of AIX
which supports the advanced features of POWER7.
MORA N (PTAK NOEL & ASSOCIATES)
discusses chip properties and compares its performance to the
older POWER6 while examining the competitive implications
of the new systems.

BACKGROUND
The POWER architecture had its start in the late 1980s
as an IBM effort to create a lower cost RISC processor
for low end and mid-range systems. It attracted
attention in the marketplace with the PowerPC
alliance which consisted of IBM, Apple and Motorola.
Over the years, Apple and Motorola dropped out
while IBM continued to develop the architecture for
its servers.
One has to acknowledge IBM’s persistence and
the investment protection it has delivered to its
customers. For example, IBM provided increased
performance and price/performance to its long time
AS/400 customers (renamed to System i). iOS will
take advantage of most of the high-end features of
POWER7 with some exceptions that are only available
with AIX 6.

THE NEW CHIP

IBM spent little announcement time discussing
the new chip. Rather, they focused on their new
systems. This is because customers are generally more
interested in new system (or package) features that
help the performance of their particular workloads and
less so on the chip specifications.

66
EVENTS AND FEATURES ■ 2010
Events and features 2010
ETM is focusing on:
Security, BI and the
Cloud
GARTNER SOURCING SUMMIT
DATES:30 May – 1 June 2010
LOCATION: Tokyo, Japan
URL: www.gartner.com/it/page.jsp?id=1267919
GARTNER PPM AND IT GOVERNANCE
SUMMIT
DATES:7 – 9 June 2010
LOCATION: Orlando, FL
URL: www.gartner.com/it/page.jsp?id=1216519
INTEROP TOKYO
DATES: 7 – 11 June 2010
LOCATION: Tokyo, Japan
URL: www.interop.com
GARTNER OUTSOURCING SUMMIT 2010 –
LATIN AMERICA
DATES: 8 – 9 June 2010
LOCATION: Sao Paulo, Brazil
URL: www.gartner.com/it/page.jsp?id=1188515
GARTNER SOA AND APPLICATION
DEVELOPMENT AND INTEGRATION
SUMMIT
DATES: 14 – 15 June 2010
LOCATION: London, UK
URL: www.gartner.com/it/page.jsp?id=1128412
GARTNER IT INFRASTRUCTURE,
OPERATIONS AND MANAGEMENT
SUMMIT
DATES: 14 – 16 June 2010
LOCATION: Orlando, FL
URL: www.gartner.com/it/page.jsp?id=1219216
Interested in contributing?
If you’re an analyst, consultant or an independent and would like to contribute a vendor-neutral piece to future issues of ETM,
please contact the managing editor:
Ali Klaver: aklaver@enterpriseimi.com.
82
TDWI EUROPEAN CONFERENCE GARTNER APPLICATION AND
DATES: 14 – 16 June 2010 ARCHITECTURE SUMMIT
LOCATION: Munich, Germany DATES: 12 – 13 July 2010
URL: www.tdwi.eu/nc/en/events/conferences/ LOCATION: Tokyo, Japan
tdwi-2010-munich.html URL: www.gartner.com/it/page.jsp?id=1267916
CODE GENERATION CONFERENCE 2010 GARTNER BUSINESS INTELLIGENCE AND
DATES: 16 – 18 June 2010 INFORMATION MANAGEMENT SUMMIT
LOCATION: Cambridge, UK DATE: 14 July 2010
URL: www.codegeneration.net/cg2010 LOCATION: Tokyo, Japan
URL: www.gartner.com/it/page.jsp?id=1267917
ENTERPRISE ARCHITECTURE
CONFERENCE EUROPE (EAC 2010) BLACK HAT US 2010
DATES: 16 – 18 June 2010 DATES: 24 – 29 July 2010
LOCATION: London, UK LOCATION: Las Vegas, LV
URL: www.irmuk.co.uk/eac2010 URL: www.blackhat.com
GARTNER SECURITY AND RISK GOVERNMENT CLOUD 2010
MANAGEMENT SUMMIT DATE: 11 August 2010
DATES: 21 – 23 June 2010 LOCATION: Singapore
LOCATION: Washington, DC URL: www.futuregov.net/events/government-
URL: www.gartner.com/it/page.jsp?id=1180650 cloud-forum-2010
TECHCONNECT WORLD TDWI WORLD CONFERENCE
DATES: 21 – 25 June 2010 DATES: 15 – 20 August 2010
LOCATION: Anaheim, CA LOCATION: San Diego, CA
URL: www.techconnectworld.com URL: www.tdwi.org/Education/Conferences/
index.aspx
CLOUD COMPUTING WORLD FORUM
DATES: 29 June – 1 July 2010 PII 2010 – PRIVACY IDENTITY
LOCATION: London, UK INNOVATION
URL: www.cloudwf.com DATES: 17 – 19 August 2010
LOCATION: Seattle, WA
THE GREEN ENTERPRISE WORLD FORUM URL: www.techpolicycentral.com/pii/featured/
DATES: 1 July 2010 events-calendar.php
LOCATION: London, UK
URL: www.greenenterpriseforum.com
ETM Q2 ISSUE ■ 2010

To read the

full version of the Q2 issue,

please go to

“www.globalETM.com”
please go to
full version of the Q2 issue,
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TBC