Is 15 minutes a mere instant or an eternity? Is getting an alert 15 minutes after it was first generated fast enough? And the opposite question: is 15 minutes of MSSP-side alert triage enough to make sure that the alert is relevant, high-priority and high-fidelity? Indeed, spending too little time leads to poor quality alerts, but spending too much time on quality alerts leads to the attacker achieving their goals before the alert arrives and is acted upon.
So, yes, I did speak with one MSSP client who said that ?15 minutes is too late for us? and another who said that ?an MSSP cannot do a good job qualifying an alert in a mere 15 minutes? (both quotes fictional, but both ?inspired by a real story?).
The answer to this ? frankly not overly puzzling ? question is again security operations maturity. On one end of the spectrum we have folks who just ?don?t do detection? and rely on luck, law enforcement and unrelated third parties for detection (see this for reference). On the other, we have those with ever-vigilant analysts, solid threat intel and hunting activities for discovering the attackers? traces before the alerts even come in.
As we learned before, security chasm is very strong in this area.
Therefore, a meaningful MSSP SLA discussion cannot happen without the context of your state of security operations.
For example, if you ?
The key message is: you don?t want to pay for speed that you won?t be able [or don?t plan] to benefit from. If security alerts will sit in inboxes for hours, you don?t need them delivered in minutes.
Now, what about the SLAs for various management services, such as changing NIDS rules and managing firewalls? SLAs play a role here as well, and ? you guessed it ? what you need here also depends on the maturity of your change management processes? Some people complain that an MSSP is too slow with updates to their security devices, while others know that MSSP does it faster than they can ever do it.
Blog posts related to this research on MSSP usage:
Every year, my colleague Laura McLellan looks into marketers? pockets. How they spend their money, she?s likely to tell you, reveals what?s on their minds. Here, truth isn?t subject to the distortions of interpretation, politics or spin that, as industry analysts, we occasionally negotiate.
Here, what you see is what you get?and what you get is a clear picture of what really matters.
Laura?s soon-to-be-released findings from the 2015 Marketing Spending Survey follow the marketer?s money trail. These findings tell an interesting story. Here?s what caught my eye:
This last part, in particular, should cause you to sit up straight. Why? Because, as competition and buyer empowerment compounds, customer experience itself is proving to be the only truly durable competitive advantage. A recent Gartner survey (available to Gartner for Marketing Leaders clients here) on the role of marketing in customer experience found that, by 2016, 89% of companies expect to compete mostly on the basis of customer experience, versus 36% four years ago.
According to the same Gartner research, fewer than half of companies see their customer experience capabilities as superior to their peers?but two-thirds expect these capabilities to be industry leading or much more successful than their peers within five years.
Wishful thinking? Perhaps. But what it does reveal is a punctuated shift in emphasis and spending as marketers recognize that customer experience is fast becoming the new battlefield.
In fact, one of the top 10 Gartner predictions this year puts a fine point on that assertion:
By 2017, 50% of consumer product investments will be redirected to customer experience innovations.
Maybe Mercedes Benz USA President and CEO Steve Cannon put it best. ?Customer experience,? he says in Loyalty360, ?is the new marketing.? I couldn’t have said it better myself.
I’ve written quite a bit about how analysts work, and here are some of my personal favorite reads, but they are more focused on vendors versus end users or investors:
I’ve shared my personal social media policy, along with other personal ways I do work.
This blog post is specific to attendance at vendor conferences, for transparency. Some of the conferences I attend I am provided media access and use my credentials as someone who covers and writes about a specific vendor or market. When there are vendor conferences they often pay for travel and hotel for the conference should I choose to attend. Similarly they can also hire Gartner analysts to speak at conferences, which requires a larger commitment of financial investment on their part.
In addition to attending the conference I also meet with other clients, prospects, and interesting people at conferences, so sometimes Gartner will pay for these conferences for research, or to support our business growth and success.
In my past blog posts, I have not been completely transparent around my conference attendance, and it hasn’t been due to wishing to avoid being honest, I just hadn’t really thought about it. When reading some of the other coverage in the press, I soon realized that in order to be fair, I needed to do the same thing.
Going forward you will see full disclosure of when conferences were paid for by a vendor, or when conference admissions were provided by another organization.
I only offer a few new twists following on from yesterday’s at-length notes.
Listening to Irfan (CTO) again I will temper my concerns yesterday re his vision statement. I concede a point. Perhaps SAP has not driven totally new innovation, but SAP Hana SP09 does seem to represent a more rounded set of capability from a well established enterprise vendor. Yes, I would accept that. So not net new per se, but rounded.
Innovators Overshoot. I do think, more clearly now, that SAP needs some serious product strategy to determine how to monetize its innovation-enabling SAP Hana solution:
I think of SAP Hana this way: imagine buying a souped-up, high-end gaming PC with 8 cores and 100 gig of memory, quad video cards each with 4 gig video memory. Then running Microsoft Word on it. It really opens up fast, and you can start typing really quickly. But we need new games and apps to leverage this new found power. We saw, this week, developers with zeal play with new toys. But beyond this, we need new reasons for being.
I’ll give you another example. Being an F1 fan I was impressed and in awe when I saw on stage at Sapphire, Ron Dennis of Mclaren. He and SAP were touting the power SAP Hana would bring to the ream in analyzing the telemetry streaming from their cars during each F1 race. All teams get the same data feeds. Only Mclaren had Hana. Only problem is, the team has not really altered its win rate on the track. So does this mean that the team users have not, as yet, figured out the new, next, innovative questions to ask of the data? The fastest calculator is not that useful if you keep asking the same old questions. I want to see Mclaren win. And I want to hear how SAP Hana made a difference.
Suddenly, I realized: fluids are in, animals are out. The big data ecosystem has given up on its elephants, impalas and pigs in favor of aquatics. Perhaps, the shift started with “data lakes,” or, perhaps, data lakes just reflected the state of big data (pun intended). Or maybe, Cascading was the one that signified the shift: Cascading was the first to enable data application development on Apache Hadoop, leaving developers Driven, Lingual and Scalding. It is now obviously Fluid.
According to Metanautix, navigating data has never been so fluid. Did you notice not just nautix, but also meta in the name? This is for a good reason. Metadata is key to deriving value from big data. Tonight (23 October), I am moderating a panel on enabling Hadoop data, so that a data lake wouldn?t turn into a data marsh. Incidentally, one of the panelists is Waterline Data Science. If you are in the Bay Area, come see the panel in person in Sunnyvale ? everyone is welcome.
Big data is flowing through all kinds of data pipelines and is streaming from all things, up to the point of becoming a DataTorrent. It can run freely in its purest state ? H2O, or get sublimated into Snowflake in the cloud. If weather permits, data could even pour like FirstRain (a company that trademarked the term Personal Business Analytics!).
You might wonder whether the current big data darling Spark fits into the Age of Aquarius picture. It does ? how about a killer app Sparkling Water? The new wave of big data technologies is rising!
Follow Svetlana on Twitter @Sve_Sic
Conversely to my recent post that equity crowdfunding doesn’t exist, debt crowdfunding I believe is almost a foregone conclusion. This is also ironic since only about 4% of the 50 sites I looked at were debt crowdfunding sites (as opposed to 18% for equity crowdfunding). Prosper and Lending Club are two of the more prominent debt crowdfunding sites (at least in the US). Also ironic is that equity crowdfunding gets much more positive press than debt. They say “Invest in the next Facebook, Google or Twitter” like you are simply a click away from making millions. This is highly unrealistic. However, getting a 6% to 8% return by “peer lending” money is very realistic, albeit quite a bit less exciting. Here are my arguments as to why debt crowdfunding has promise. I’ll use the same structure I used in my analysis of equity crowdfunding.
They are more inclusive.
The debt sites I examined are also currently limited to Accredited Investors. This is to be expected since it is the law (in the US at least). However, they are positioned well to adapt to Title III of the JOBS Act (crowdfunding) when the SEC does deliver approved rules. It seems that they always intended to adapt. The whole process from signing up to investing to tracking all could remain the same. The only adjustment would be no need to qualify oneself as an accredited investor when signing up. I can foresee a boom in participation once the crowds are allowed to invest and made aware. In fact, I will go on the record as saying it is the supply side that will limit growth. The crowdfunding sites will struggle to keep a satisfying flow of loans available to the crowds. If anything, this will cripple a debt site and cause an exodus of the crowd.
They are inexpensive to investors.
Investment minimums for debt crowdfunding are as low as $25.00. And service fees are usually less than 1% of the return. These are numbers that the crowd can handle. I believe that the costs to get a loan are still a bit high but as debt crowdfunding grows and competition for loans increases we will most likely see origination fees decline. Now the $25.00 minimum and the 2000 investor limit currently restricts the amount of a loan to a maximum of $50,000. But when Title III hits the limit will be constrained by the $1M annual limit vs. the number of investors. For peer lending to your average citizen this limit isn’t much of a limit. But it also provides plenty of room for loans to small businesses. So I see the opportunity for debt crowdfunding to expand or grow to new types of loans.
Last week I examined 1300 peer-lending loans and here were some findings. There were two major reasons for the loans. 58% of the loans were loan refinancing or debt consolidation and 28% were for credit card payoff. The next most frequent reason was home improvement at a distant 4.36%. Small business loans were 1% and home purchase was .5%. So right now debt crowdfunding is primarily an alternative to high interest credit cards. Over time I would expect to see this change as debt crowdfunding becomes more main-stream. I would expect, in particular, to see business loans, home improvement, and major purchases grow as a larger percentage. However, I believe credit payoff/consolidation to dominate for the next 3-5 years. Other interesting numbers include 40% of the loans were from people with over a 700 FICO credit score. 65% of the loans had a 36 month term and 35% had a 60 month term. 3% of the loans had over a 20% interest rate. 61% had a rate between 10% and 20% and 35% had a rate below 10%. The lowest interest rate was 6%. This may not be the same as holding shares of the next Facebook but it is pretty compelling when compared to savings and CD interest rates.
They are transparent (enough).
The sites provide basic information on the loan such as the reason, the term, the rate, the amount, credit score, and some site risk score. There are often additional details such as the location (State) of the loan, length of employment and verified income. This should be enough information for due diligence on a $25.00 investment. Most of the risk management comes from the risk balance of a portfolio of loan notes. A non-accredited crowdinvestor who has $2000.00 to invest can assemble a portfolio of 80 notes that together comprise an acceptable level of risk. Lending Club, for one, provides information on a selected portfolio including anticipated default rate before you execute on buying the set of notes.
They are direct.
With a few clicks you directly invest in the notes. You don’t have to request more materials or apply for the opportunity to invest. You don’t invest in a security that assembles a set of notes by multiple tranches (sound familiar). You invest in an individual loan note. Within minutes you can assemble a portfolio of 100s of notes. Now it can take a week or two for those notes to close and a subset of them won’t close so it can take several tries and a several weeks to invest all your money. Then about 30 days after your first note closes you will start to see returns accrue. And this, of course, depends on the number of loans available for investment. If you want to invest $50,000, $25 at a time, in notes that have a 36 month term, a credit score over 750 and are originated in Texas then it can take you a long time to get that money invested. But if you are less restrictive and put $25 across a variety of notes then it will go much more quickly. With debt crowdfunding where risk is spread across many loans, investment risk management shifts from the individual investment to the portfolio.
All of these factors combine to make debt crowdfunding more appropriate for the masses than equity crowdfunding. Although equity might get more crowd-friendly, I believe the near-term and mid-term promise for crowdfunding securities lies with debt.
As always, I’m interested in questions and opposing or supporting positions. If anyone knows of great debt crowdfunding sites then please let me know and I’ll look at them.
Soon I’ll move on to reward based crowdfunding.
It hurts me more than it hurts you for me to say this, amigos:
Your social marketing measurement may be downright antisocial.
First, let me ask you a question: Does this look familiar?
Hold that thought.
Now, social marketing measurement here means information pulled from common social media listening tools and not firewalled data from your owned channels, e.g., your brand’s own Facebook page. Ninjas among you are aware of flaws, biases and — ahem — issues inherent herein, but a majority of digital marketing analytics consumers may not be.
(While we’re on the topic, let me mention that my colleague Jennifer Polk and I will be hosting a free webinar this Thursday 10/23 at 11am and 1pm Eastern. Details at the Gartner for Marketing Leaders homepage (scroll to the bottom).)
So here are five non-obvious reasons to interrogate the truthiness of your current social marketing analytics dashboards, reports, white papers, assumptions, content marketing efforts, and periodic self-congratulations:
So think about adjusting for the above. How? You can weight, weight and weight again. Weight for public vs private posts in channels (to the extent you can estimate these, which I’ll admit isn’t easy). Weight for channels and for engagements within channels. A principle I use here is mentioned in #5. Use your own methods, including a hunch.
As usual, almost anything may be an improvement on business as usual.
We just published the 2014 Magic Quadrant for Application Delivery Controllers (ADC) (Gartner subscribers only). The Magic Quadrant includes analysis of ten vendors in the ADC market. In going thru the research process, here are a couple things of note?
In comparison to the 2013 ADC Magic Quadrant, four of eleven (36%) vendors changed positions. The resulting ten vendors in the 2014 ADC Magic Quadrant include:
Three of these vendors (A10, Barracuda, PIOlink) underwent initial public offerings, raising over $300M USD. This is a substantial injection of capital into the $1.6B ADC market which should provide additional financial flexibility and security ultimately could/should drive further R&D investment leading to innovation in the space.
Generally, we see three types of ADC buyers: basic, extended and advanced. Basic buyers are looking for a load-balancer, no more no less. These buyers don?t want, don?t need or don?t know about the more advanced ADC capabilities. However, most of the folks we speak to are extended buyers who are looking to leverage several of the more advanced features such as WAF, GLB, programmatic scripting, FEO etc. The most advanced buyers are looking for the advanced features, AND delivered in resource pool that is dynamically integrated with orchestration systems or CMPs like VMware/OpenStack or as part of an SDN service-chain.
To the Cloud
ADCs sit in front of application servers, thus it is no surprise that as workloads move to the cloud, the ADC vendors are integrating their products into the cloud eco-systems. Thus, over the past year, significant progress has been made with ADC vendors integrating their products tightly to work with CMPs (i.e., VMware, Microsoft and OpenStack – LBaaS plugins for all) as well as within public cloud providers like AWS, Azure, Rackspace, Softlayer, vCloud Air etc?
And Security matters too?
Over the last 12 months, we?ve seen a number of security issues including Heartbleed, weekly breaches in retail, concerns over governmental spying and proliferating DDOS attacks. These all underscore the need for defense-in-depth which includes application security that can be derived from an ADC.
This is just a snippet from the research, and here are some other tidbits, but you can access the full Magic Quadrant here:
Magic Quadrant for Application Delivery Controllers (Analyst(s): Mark Fabbi | Andrew Lerner)
Summary: The application delivery controller is a key component within enterprise data center and public cloud architectures. Network, security and application personnel should evaluate ADCs based on how they integrate with key applications and cloud/virtualization platforms.
3D printer sales to exceed $13.4 billion in 2018 with 2.3 million units shipped.
Our annual forecast incorporates all 3D printers across all of the current 3D printing technologies. Globally, we expect shipments will grow at a compound annual growth rate of 106.6% and revenue will climb at a CAGR of 87.7% through 2018.
We also project the number of printer shipments and revenue across ten regions worldwide. Greater China’s 120.6% CAGR shipment growth will outstrip all other regions through 2018.
The 3D printer market is clearly at an inflection point. Unit shipment growth rates for 3D printers, which languished in the low single and double digits per year since the early days of additive manufacturing are poised to increase dramatically beginning in 2015. As radical as the forecast numbers may seem, bear in mind that even the 2.4 million shipments that we forecast will be sold in 2018 are a small fraction of the total addressable market of consumers, businesses and government organizations (including the military) worldwide.
At the top level, the 3D printer market today has two main branches. While there is some overlap, as there is in any industry that offers products for both markets, consumer buyers are very different than enterprise buyers. Understanding that fact is one of the critical keys to understanding the 3D printer market.
The primary market drivers for “consumer” 3D printers (typically under $1,000) are lower prices, improved performance and expanded global availability. The primary “enterprise” 3D printer market drivers are the viability of 3D printing technologies for prototyping and manufacturing coupled with lower 3D printer costs, improved quality and a wider range of materials.
Gartner has been covering the 3D printer market as it emerged into a viable technology for a wide range of users over the last seven years. After more than two decades of research and development, as well as numerous applications in specialist industries, we find that the technology has finally achieved manufacturing readiness in several industries and can augment manufacturing processes in many more.
A second critical key to understanding the market is the fact that, today, there are seven 3D printing technologies, each with its own set of capabilities and constraints. As new technology providers and technologies have emerged and barriers such as quality and size limitations are being overcome, 3D printing has reached an inflection point with practical, viable applications in a wide range of vertical markets ? including yours.
Gartner?s Forecast: 3D Printers, Worldwide, 2014, written with my co-author Zalak Shah and the assistance of analysts worldwide, is available here. The 42 page report includes forecast data, methodology and assumptions as well as our analysis of what the forecast signifies for technology providers.
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Invest in your people. DHL Express, the international shipper, is one of many good case studies on this topic.
Five years ago when DHL decided to focus exclusively on international shipping, chief customer officer Christine Nashick was charged with overseeing the effort to get an exceptional customer experience in place. She had her work cut out for her. In my recent interview with Christine, she began with a chuckle saying, ?After all, who doesn?t love the international shipping experience? ?
Turning more serious she added: ?I knew we could never deliver an exceptional customer experience independent from an exceptional employee experience.?
Christine?s POV echoes the mountains of research that prove happy employees lead to happy customers. She went to work on an ambitious program to certify every employee (including the CEO) in the principles, intricacies and nuances? of international shipping. She also branded several internal recognition and reward programs to encourage employees to become, as she says, ?insanely customer centric.?
Most marketers are secure in their belief that customer experience is a way to compete. They also concur that people are the priority, yet they struggle when it comes to putting structure around the people component.
Watch this space for an upcoming piece of research that explores this very topic. Highlights include, how to:
Put a Face on the Customer. The more we rely on technology and data to drive the customer experience, the easier it is to forget that we?re marketing to real people. There are several practical actions you can take to humanize customers and build more buyer empathy into the organization.
Quantify and define employee empowerment. Most marketing managers believe they empower their people, even when employees disagree. This disconnect occurs when empowerment lacks definition and is perceived to be too risky. There are several actions you can take to pure more structure around employee empowerment to reduce its risk (and reap its benefits).
Make customer experience a discipline; While no single organization owns the end-to-end customer experience a change initiative to make customer experience a competitive weapon won?t reach its goals without a focal point. If you haven?t done so already, get a chief customer officer in place. Without this role you have little chance of competing on customer experience.
Get CEO Endorsement. The chief customer officer does not directly manage all stakeholders, hence can?t address issues and opportunities to compete on the experience without endorsement from the top. The chief customer officer can also do several things to build a compelling business case for investments in customer experience initiatives.
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