Market Dynamics driving software & services

a)     75% of CEOs place a high priority on rapid response

b)    only 10% believe they can

Market Dynamics also had a huge impact over the last 2 years

a)     .com bomb into the toilet

b)    starting to come back

c)     2004 market uptick

d)    IBM has 8 or 9% growth

e)     Russia, China, India, Brazil

Consolidation across industries

a)     paper company bought OfficeMax

b)    change is happening rapidly

c)     these things allow the companies to change how they do business – requires IT changes

d)    App silos in legacy systems

e)     5 trillion dollars invested in legacy code – PL1 & Cobal

Inflection point of our industry

a)     we are at the point of standardization

b)    electricity was standardized so we can use a gizmo bought at target anywhere that has electricity, prior to standardization you could not

c)     train – before standards NY to St. Louis required several changes of train cars to get that distance, after standardization we got iron from Midwest could go to Pittsburg – the whole economy boomed because stuff could get from one place to another

Web services will be $11 billion worldwide in 2008 IDC

 

?Linux will overtake windows as the number one operating system based on new server shipments? – Stacey Quandt, analyst – I don?t buy this at all

 

ATM – is going to Linux

Point of Sale systems are going to Linux, its taking over the world J

IBM – Workplace 2.0

 

Standards are important – ?standards contribute more to economic growth than patents and licenses?

 

Open Source is driving open standards

 

Workplace 2.0 is built on Eclipse – have to dig into this!

 

Open source is a huge contributor to innovation

Builds great communities

A great way to build open industry standards

Enterprise customers are asking

 

Linux is growing almost as fast as Windows or even faster

 

Eclipse – 39million downloads – 12% linux, 86% windows

 

CapGemini – using Eclipse to speed up software delivery

 

Tools - ETTK on alpha works some cool looking stuff

 

Grid computing stuff – starting to mature its at the point now where mission critical apps can be deployed (www.gridforum.org)

 

Grid computing – used by Charles Swab does your net worth calculations now in seconds, took 3 minutes before

 

Pugh and Associates – cost of computations was 10% of what it used to be.

 

US Tennis Association uses grid computing to ?rent? out computing to allow protein folding calculations. When it is raining no one is using the servers because there is no tennis going on. With the switch to grid computing they went to 85% utilization of the servers 24X7X365

 

Autonomic Computing – electricity black out in 2003 – cool graphic showing the various piece parts of autonomic computing,

a)     self configuring

b)    self healing

c)     self optimizing

d)    self protecting

 

Also put standards around this – put event logs together to find root causes quickly so we don?t end up with what happened to the power grid

 

Privacy is a huge thing – P3P

 

J2EE 1.4 is big and getting bigger – IBM is moving everyone to Portlets – JSF is supposed to make building web apps easier esp portlets Also Service Data Objects are big.

 

Pervasive and wireless computing – autos, phones etc. OSGi

 

RFID – walmart etc

 

Web services – not nearly enough people to make all the work happen, a big part of what drives outsourcing is because we just can?t find the people to do the work.

 

Business are at the point where they are functionally optimized for tasks but not across an entire business process. As an example is IBM looking at their supply chain and linking the existing systems together were able to drive down the cost by 5 billion dollars, enabling them to reduce the cost of their servers but sell more servers.

 

MDA is big and getting bigger

 

Skills – we have a surplus of the wrong skills and a shortage of the skills we need

 

IBM spends 250K per new employee for training the first year. Northface University will deliver graduates that are employable right out of school.

 

Skills that are in great demand, if you know this stuff you are more than employable.

 

1)    System or Solution Architects

2)    Business Process Integration

3)    Portal Design and Legacy Integration

4)    Performance analysis & Tuning

5)    Security and Privacy

6)    Orchestration 7 Provisioning

7)    Linux Servers

8)    Virtualization (grids, SANs, etc.)

9)    zSeries