IBM adds Sterling Commerce to Websphere, expands scope of B2B integration

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

By Tony Baer

We should have seen this one coming. IBM’s offer to buy Sterling Commerce for $1.4 billion from AT&T on Monday closes a major gap in the WebSphere portfolio, extending IBM’s array of internal integrations externally to B2B.

It’s a logical extension, and IBM is hardly the first to travel this path: Software AG’s webMethods began life as a B2B integration firm before it morphed into EAI, later SOA and BPM middleware, before getting acquired by Software AG. In turn, TIBCO recently added Foresight Software as an opportunistic extension for taking advantage of a booming market in healthcare B2B transactions.

But neither Software AG’s or TIBCO’s moves approach the scope of Sterling Commerce’s footprint in B2B trading partner management, a business that grew out of its heritage as one of the major EDI (electronic data interchange) hubs.

The good news is the degree of penetration that Sterling has; the other (we won’t call it bad) news is all the EDI legacy, which provides great fodder for IBM’s Global Business Services arm to address a broader application modernization opportunity.

Sterling’s base has been heavily in downstream EDI and related trading partner management support for retailers, manufacturers, and transportation/freight carriers. Its software products cover B2B/EDI integration, partner onboarding into partner communities (an outgrowth of the old hub and spoke patterns between EDI trading partners), invoicing, payments, order fulfillment, and multi-channel sales.

In effect, this gets IBM deeper into the supply chain management applications market as it already has Dynamic Inventory Optimization (DIOS) from the Maximo suite (which falls under the Tivoli umbrella), not to mention the supply chain optimization algorithms that it inherited as part of the Ilog acquisition which are OEM’ed to partners (rivals?) like SAP and JDA.

[Editor's note: At the Ariba Live 2010 conference in Orlando, the news of an IBM-Sterling marriage was seen as making IBM more complementary to Ariba's spend management SaaS and cloud offerings. This does not necessarily put IBM and increasingly SaaS-based Ariba into a competitive stance. More on that to come ... Dana Gardner.]

A game changing event such as Apple’s iPad entering or creating a new market for tablet could provide the impetus for changes to products catalogs, pricing, promotions.

Asked if acquisition of Sterling would place IBM in competition with its erstwhile ERP partners, IBM reiterated its official line that it picks up where ERP leaves off – but that line is getting blurrier.

But IBM’s challenge is prioritizing the synergies and integrations. As there is still a while before this deal closes – approvals from AT&T shareholders are necessary first – IBM wasn’t about to give a roadmap. But they did point to one no-brainer: infusing IBM WebSphere vertical industry templates for retail with Sterling content. But there are many potential synergies looming.

At top of mind are BPM and business rules management that could make trading partner relationships more dynamic. There are obvious opportunities for WebSphere Business Modeler’s Dynamic Process Edition, WebSphere Lombardi Edition’s modeling, and/or Ilog’s business rules.

For instance, a game changing event such as Apple’s iPad entering or creating a new market for tablet clients could provide the impetus for changes to products catalogs, pricing, promotions, and so on; a BPM or business rules model could facilitate such changes as an orchestration layer that acts in conjunction with some of the Sterling multi-channel and order fulfillment suites. Other examples include master data management, which can be critical when managing sale of families of like products through the channel; and of course Cognos/BI, which can be used for evaluating the profitability or growth potential of B2B relationships.

Altimeter Group’s Ray Wang voiced a question that was on many of our minds: Why AT&T would give up Sterling? IBM responded about the potential partnership opportunities but to our mind, AT&T has its hands full attaining network parity with Verizon Wireless and is just not a business solutions company.

This guest post comes courtesy of Tony Baer’s OnStrategies blog. Tony is a senior analyst at Ovum.

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IBM cements cloud, appliance, BPM, CEP and SOA into an IMPACT 2009 solution brick

LAS VEGAS -- Wasting no time in bringing a needed cohesion across its products and solutions, IBM on Monday at its IMPACT 2009 event here unveiled a cloud-based business process modeling (BPM) service, tighter alignment with Amazon, better complex event processing (CEP) integration, re-introduced a WebSphere private cloud appliance and double-downed on a slew of its industry framework solutions.

Under the umbrella of spurring on a smarter planet, the IBM push combines many of Big Blue's strengths with the goal of taking out complexity and cutting costs as its customers seek much greater business efficiency in a recession-wracked world. The moves also further IBM's embrace and commitment to services oriented architecture (SOA), but spread its benefits both deeper and wider than the earlier infrastructure push alone.

In a nutshell, IBM is helping enterprises create private clouds as either appliances or built on Z Series mainframes, with better connections to CEP, and managed from BPM in public cloud. It provides an excellent story for IBM, and places it at an early competitive advantage against Microsoft, Oracle/Sun, and HP in the ramp up to SOA-enabled hybrid cloud approaches that tackle tough business problems. IBM is going to the cloud with collaboration, too.

The pizza box-size WebSphere CloudBurst appliance, announced only recently, had its coming out party at today's keynote session, moderated by a hilarious Billy Crystal. See Twitter #IBMIMPACT by searching on the tag in Twitter for more on the live event.

This appliance approach to private clouds will be a big trend in the industry, with Oracle (using acquired Sun technology), HP and perhaps Cisco sure to follow. One has t wonder how Microsoft does appliances, with one or some partners? Will be curious to watch. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

To me, though, the biggest news of IMPACT is the move of IBM to provide its own BPM cloud services, called BPM BlueWorks, beginning in Q2 this year. IBM continues to be chummy with Amazon Web Services, and there's no reason to believe that Google will also be an IBM cloud partner.

Indeed, the shift of BPM to a separate, elevated, cloud-based service makes sense because many services and processes will increasingly come from a variety of sources and source types. Allowing the business process and workflow architects to design, manage and implement extended business processes as a cloud service allows for leverage of more services by more businesses, with control and ability to cut costs and reduce complexity.

What's more, if BPM goes in the cloud, then it takes only a small step for IT and SOA governance to stay in the cloud, too. Will SOA, CEP and extended enterprises business processes come together better as a cloud-based management and governance model takes place? Could be.

The only rub is that IBM or some other cloud provider is host to your core control centers. But if enterprises grow comfortable with more IT functions and assets in a third-party cloud, well then the model way well offer a lot of advantages. Of course, the BPM, SOA and governance controls will also likely become hybrids.

IBM and others, like Microsoft, Oracle and HP, will also want to be in the managed management business, so the competition to do this well and right will be intense. And that will be good for users and probably (hopefully) keep the options, standards and portability largely open.

But users should still look out, as with any cloud services, for lock-in and seek contracts that protect their assets and business property. And I'd say that the governance and process models that dictate how your business works should always be considered an enterprise's property. The cloud provider needs to be a value-added provider, not a Big Brother.

IBM is also pumping up its industry frameworks solutions of applications and expertise for retail, traffic management, and health care. Look for these too to emerge as cloud-based hybrid solutions over time. The goal, of source, is to make IBM the total supplier on these vertical industry solutions, with cost and convenience being the drivers on how they are implemented. IBM has done quite well by this so far, and the cloud moves will help it further.

IBM in the cloud in a lot of ways is a very smart move. Getting BPM there first -- in the middle of processes, solutions, and moving to governance -- will be hard to resist for users and tough to beat by competitors.

Follow me on Twitter at http://twitter.com/Dana_Gardner.

JustSystems moves dynamic document management deeper into enterprise

Structured authoring -- it's not just for technical documents any more. JustSystems today announced XMetaL for Enterprise Content Management (ECM), which integrates with more than 20 commercial repositories and file systems.

This new offering provides seamless integration to all leading content management systems, including repositories from IBM FileNet, EMC Documentum, OpenText, Interwoven, and Microsoft. [Disclosure: JustSystems is a sponsor of BriefingsDirect podcasts.]

JustSystems has also announced an original equipment manufacturer (OEM) agreement with IBM, under which the company will embed and resell IBM WebSphere Information Integrator Content Edition (IICE) with the new XMetaL product. This is designed to allow companies to broaden XMetaL deployments and to leverage repositories they're currently using to store and manage content.

According to JustSystems, XMetaL for ECM will allow companies to start using structured authoring, no matter which repositories are already in place. Companies will also be able to deploy it across departments without disrupting current content management, as well as integrate and automate content creation and publishing across repositories.

Structured documents can be a valuable ally of service-oriented architecture (SOA) by providing data to workers in the document formats to which they are accustomed, and, at the same time, allowing them to focus on authoritative data and content, while eliminating the drudgery of validating and reconciling documents.

I recently wrote a white paper on the role of structured authoring, dynamic documents, and their connection to SOA. Read the whole paper here.

Back in April, I recorded a podcast with Jake Sorofman, senior vice president of marketing and business development, for JustSystems North America. The sponsored podcast described the tactical benefits of recognizing the dynamic nature of documents, while identifying the strategic value of exposing documents and making them accessible through applications and composite services viaSOA.

In the podcast, Sorofman explained the value of structured authoring in the enterprise:

"There are really a couple of different issues at work here. The first is the complexity of a document makes it very difficult to keep it up to date. It’s drawing from many different sources of record, both structured and unstructured, and the problem is that when one of the data elements changes, the whole document needs to be republished. You simply can’t keep it up-to-date.

"This notion of the dynamic documents ensures that what you’re presenting is always an authoritative reflection of the latest version of the truth within the enterprise. You never run the risk of introducing inaccurate, out of date, or stale information to field base personnel."

You can listen to the podcast here or read a full transcript here.

IBM executive defines next generation of enterprise datacenters through cloud computing

IBM Vice President for Enterprise Systems Rich Lechner took the stage at the Forrester Research IT Forum on Tuesday to explore the definition of new enterprise datacenters that will enable new levels of business innovation.

Factors buffeting the definition of the new class of datacenterinclude globalization, a rising tide of information and need for expanded flexibility and adaptability for business models.

To compete, companies need to operate without boarders, and bcome a globally integrated enterprise. "There are huge resource pools emergig around the world ... with new ideas and creativity," said Lechner. It's more than outsourcing, he said, it's about integrating these resources.

The tide of data and devices, of resources, and assets will continue to explode. How can you best use the data that flows all around you?

New business models will evolve, said Lachner. The impact of social networking and peer influences on buying decisions are just beginning to be felt.

Virtualization will remake the landscape IT, as will cloud computing, virtual worlds, and high new levels of scaling when it comes to compute power, said Lechner.

Cloud computing allows an unbounded aspiration of the best user experiences. "It provides anytime, anywhere access to IT resources deliver dynamically as a service," he said. Cloud computing expands capacity almost indefinitely.

IBM's cloud initiatives are allowing technology incubation, data-intense workloads, government-led initiatives and new types of software development support.

IT plus cloud computing can enable change. How to get started? Simplify using virtualization, share infrastructures via SOA, and create a dynamic ability to access data and knowledge, said Lechner.

The world is changing to enterprises without borders, unbounded IT infrastructure, and huge more data sets, and a need for collaboration that increasingly crosses many organizational and sourcing types, he said.

Additionally IBM is learning a lot from Google and vice versa when it comes to cloud computing, said Lechner. Cloud computing allows its practitioners to isolate compute units and make their use far more efficient economically via dynamic provisioning.

For data security, users can physically isolate data using partitioning. IBM for years has been hosting multiple companies on single mainframes with no data protection or privacy issues. The technology exists to leverage the economics of cloud computing while protecting data, said Lechner.

"It's about removing IT has an inhibitor," he said.

Genuitec marks progress with two milestone releases of MyEclipse 6.5 products

Genuitec, the MyEclipse IDE vendor, has marked development progress with two interim releases. The Flower Mound, Tex., firm has announced availability of the initial milestone releases of MyEclipse Enterprise Workbench 6.5 and MyEclipse 6.5 Blue Edition, a tool suite for WebSphere developers.

The Enterprise Workbench release includes an upgrade of MyEclipse Spring tools, which provides integration of the latest Spring framework 2.5 libraries. Also in the release are:

• JAX-WS 2.1 Web services
• Support for JSR-168 portlets
• Improved JSF and Facelet visual page design and coding features
• New web.xml editor; and
• Updated ICEFaces JSF component support.

The M1 release of the Blue Edition offers project migration support from IBM Rational Application Developer and WebSphere Application Developer into MyEclipse.

With the new release, developers can configure, launch, and manage multiple WebSphere profiles simultaneously from within the IDE, allowing the developers to develop, deploy, and debug enterprise Java applications to any number of customized WebSphere profiles.

In another announcement, Genuitec has released the Pulse 2.1, which allows users to manage and configure Eclipse-based products. Among the product enhancements in this release are:

• Desktop Express, which allows ISVs to deliver software to their customers
• Enhancements to Pulse Freelance, which allows users to add and share plug-ins to customize their catalog and share workspace settings.

Last February, I did a podcast with Maher Masri, president of Genuitec on his companies Eclipse-based tools and the migration path to WebSphere. You can read the transcript here. [Disclosure: Genuitec is a sponsor of BriefingsDirect podcasts.]

Last January, I wrote about the Pulse product and its implications for the development and deployment market:

I also expect that Genuitec will move aggressively into “development and deployment as a service” offerings in 2008. There’s no reason why a Pulse set of services could not evolve into a general platform for myriad developer resources and increasingly tools/IDEs as a service. Indeed, Genuitec is finding wider acceptance by developers of developing and deploying in the cloud concepts and benefits.

The milestone release of Workbench 6.5 is currently available from the MyEclipse site for a free trial. The milestone release of Blue Edition is available for a free trial from the Blue Edition site. The subscription price is $149, and those with current subscriptions will receive all upgrades and support at no additional cost. The general release of both products is scheduled for June of this year.

IBM's 'Blue Cloud' signals the tipping point for enterprise IT into services model

I recall a front page story I wrote for InfoWorld back in 1997. At the time there were still plenty of naysayers about whether websites were a plaything or a business tool. There was talk of clicks and mortar, and how the mortar would always determine business outcomes.

And then General Motors -- the very definition of a traditional big business -- unveiled an expansive website that fully embraced the Internet across its businesses. We at InfoWorld wrote about GM's embrace of the Web then as a corporate tipping point, from which there was no going back. Clicks became mainstream for businesses. Case closed.

And so it is today, with IBM's announcement of Blue Cloud -- an approach that not only talks the services talk, but walks the services walk. We are all at the tipping point where IT will be delivered of, by and for services. If Google, Yahoo!, Amazon and eBay can do what they do with their applications and services, then why shouldn't General Motors? Or SMB XYZ?

So the king of mainframes and distributed computing moves the value expectations yet again -- to the pre-configured cloud architecture. The standards meet the management that meets the utility that gets the job done faster, better, cheaper. Slap an IBM logo on it and take it to the bank.

The future of IT is clearly about the efficiencies and agility of the grid/utility/Live/fabric/cloud/SOA/WOA thing. There can be no turning back. I believe Nick Carr is coming out with a book on this soon, The Big Switch: Rewiring the World, from Edison to Google, and IT is by no means irrelevant this time.

IBM's Blue Cloud, arriving in the first half of 2008, will use IBM BladeCenter servers, a Linux operating system, Xen-based virtualization and the company's own Tivoli management software. Nothing about this is terribly new. Sun Microsystems has been talking about it for years. HP is well on the way to making it so, given its Mercury and Opsware acquisitions. Citrix has an eye on this all too. Red Hat has its approach. Amazon is game. Google is riding the wave. Even Microsoft has hedged its bets.

But the tipping point comes when IBM's global clout in the major accounts is brought into play. The sales force will feel The Force, Luke. IBM will march in and let your IT services architecture mimic the service providers' basic set-ups too. You gain the ability to integrate your internal services with those of your partners, customers, suppliers, vendors and providers. Next will come an ESB in the cloud, no? This makes for a fertile period of innovation.

Perhaps IBM will also cross the chasm and host their own services -- not applications per se, but commodity business functions that ISVs, providers, and companies can innovate on top of or in addition to. Google has maps, but IBM has payroll, or tax returns, or purchasing. Could be quite interesting. I would expect IBM to offer ads in these services too some day (come on, Sam, it's not so bad).

And that also means you'll be provisioning IT internally and externally as subscription services. Charge-backs and IT shared services models become the standard models across both supply chains as well as value-added sales activities. Businesses will determine their margins based on the difference between what they pay for IT services (internal or external) plus the cost of the value added services -- and then what they charge on the receiving end. High-volume, recurring revenue, fewer peaks and troughs.

This is really the culmination of several mega trends in two major areas: IT and economics of online commerce. The trends that support this on the IT side include virtualization, high-availability clustering, open source platforms and tools, industry standard multi-core hardware, storage networks, Java middleware, WAN optimization, data services and federation, scripting language maturity -- as well as application consolidation and modernization, datacenter unification, low-energy-use dictates, and common management frameworks. The result is something like Blue Cloud.

The online economics trends include ecommerce, advertising supported Web services/media/entertainment, pay as you use services and infrastructure as a service, and - of course -- free code, free tools, free middleware, free stacks. It's all free -- except the service, maintenance, and support (otherwise known as a subscription).

And if one major corporation buys into IBM's Blue Cloud and they deploy in such a way as to exploit all these mega trends -- while counting on IBM as the one throat to choke as the means to reduce change risk -- what happens?

Well, they might see total IT operating costs go down by 40% over a few years, while also able to enjoy the productivity benefits of SOA, SaaS, services ecologies like Salesforce.com, and therefore become more agile in how they acquire and adjust their business processes and services delivery. You might get to do more for a lot less. And a lot less IT labor.

And so our Blue Cloud-user corporation has their competitors who will, no doubt, need to follow a similar course, lest they be set on a path of grave disadvantage due to higher costs and an inability to change as quickly in their markets. If a mere 50 of the global 500 move to a Blue Cloud or equivalent, it would be enough to change the game in their respective industries. We're seen it happen in financial services, retail, music and media, and IT itself.

And so large enterprises will need not just make decisions about technology platform, supplier, and computing models. They will need to make bigger decisions based on broad partnerships that produce services ecologies in niches and industries. For an enterprise to adopt a Blue Cloud approach is not just to pick a vendor -- they are picking much more. The businesses and services and hosting all become mingled. It becomes more about revenue sharing than just a supplier contract.

Yes, Blue Cloud and many other announcements and alignments in 2007 point to a 2008 in which a services ecology evolves and matures for many industries. The place where differentiation matters most is at the intercept of proper embrace of the service model, of picking the right partners, and of exerting leadership and dominance of best practices within a business vertical or niche. You'll have a different relationship with your services partner than you do with your IT vendor. IBM will show you the way.

Hear the music? It ain't the Blues! It's the quick-step. Dancers, pick your partners carefully. You're going to be spending a lot of time sharing your futures together.

IBM 'continuum' helps companies crawl-walk-run along the SOA path

IBM today unleashed a barrage of announcements that cover services and software to enable a crawl-walk-run strategy for enterprises, as they move into the services-oriented architecture (SOA) world.

The new offerings range from a "SOA Sandbox," which will allow developers to "play" with SOA before using it in a production environment, to WebSphere enhancements, and finally, to an unveiling of the new IBM Optim, a data governance application from recently acquired Princeton Softech.

Key to the crawl-walk-run approach is what IBM calls their SOA Continuum, which takes companies from the very basic -- involving only focused, high-ROI projects -- to the most advanced, in which technology becomes invisible and more than 80 percent of business functions are delivered as services -- and more than 50 percent of those are re-used.

I sort of remember the logic from an earlier blog. Glad they agree.

Recognizing the need for what they've dubbed the Globally Integrated Enterprise, IBM has also introduced assessment tools, including a Benchmark Wizard, which is based on key agility indicators and is loaded with 1,100 qualitative business indicators and uses best practices derived from 1,600 case studies. This will allow an enterprise to determine how it stacks up against the industry in general.

The new offerings also address several key stumbling blocks along the path to SOA-based agility. One such sticking point is how systems respond when services from various sources may be unavailable. IBM says its updates WebSphere Process Server has extensive compensation support, allowing process to recover reliably when target applications are unavailable.

Another key concern is exposing sensitive or personal data when services access databases. The newly acquired Optim product is designed to identify and protect private data in complex application environments.

IBM also announced enhancement for process integrity to several products, including:

• Message Broker and MQ
• Tivoli Composite Application Manager for SOA
• WebSphere DataPower XML Security Gateway
• IBM Information Server

IBM is taking an "all things to all people" approach and offering new SOA configurations, designed to help enterprises use legacy and packaged applications in a SOA environment. These include best practices and step-by-step implementation guides.

To help developers get started -- before even starting to crawl along the SOA path -- IBM has set up a SOA Sandbox, a free test bed on the developerWorks site. The sandbox, where potential users can download trial software or can "play" online in a hosted environment, includes software, tutorials, quick-start guides, and best-practices guidance.

As another aid to companies, IBM is offering "SOA Healthchecks," workshops to assess and diagnose applications, services and infrastructure to determine application reuse, security, and infrastructure flexibility.

Look for this opening salvo to increase in crescendo over the next few months, as IBM rolls out these and more SOA offerings at 500 events, including a customer Webcast on Oct. 9, and a series of announcements to create a drumbeat about the latest SOA end-to-end initiative.

Engagement on SOA has to take place in countless ways. IBM seems to be up to the task, or least is ready to try.