When Pivotal unveiled its road map this week, a tremendous amount of Maritz’s emphasis was placed on two things: data-centric applications as the future and, as Quentin Hardy of the New York Times described in his post, to move enterprises to a model “…where applications are created in days or weeks, compared with months, even years, in big business.”
The second part of Maritz’s vision is best embodied in a piece of text from the Pivotal website, that “…established companies have been largely left out [of rapid development of a new class of applications]. Achieving this capability alongside entrenched technologies and existing data platforms has been stunningly difficult. Until now. “
What’s wrong with this assertion? Conceptually, it’s right – enterprises are building applications with a new class of architectures to tackle new sets of problems. Unfortunately, it’s a vision that’s already too late – and by the time Pivotal products hit the market in 9-18 months, it will be very late.
Moreover, it doesn’t address the right vision – the transformation of enterprise IT from a cost center to a service provider. At Apprenda, we’ve been focused on the fact that enterprises need a PaaS that helps them tackle modern architectures, data-centric workloads, and rapid development for years. Waiting for Pivotal’s vision to turn into products means that CIOs are leaving money on the table because Apprenda is already there, and we’ve been there. The world Maritz describes, as “the future” exists today, and our customers are reaping the benefits of working with a company that has been espousing and backing that vision for years.
Pivotal joining us in this vision validates the vision we’ve had all along, but watch over the next 18 months as we move on to the next phase of enterprise IT’s monumental shift to a services model.
You’ve all heard us Apprendans say this over and over again: PaaS’ role in the market is not just to help enterprise developers deploy and scale applications, but to enable them to write better next generation enterprise applications faster.
Enterprises are writing new types of apps that aren’t standalone products, but are instead services offered via APIs, web front ends, and mobile devices that deliver high margin value to an enterprise’s customer or that supplement that enterprise’s internal processes.
These next-generation applications are multi-tenant, data oriented, and composed from a variety of scalable services. Like Apprenda does, anyone claiming to be an enterprise PaaS should commoditize the sophisticated architecture patterns behind these modern applications, making their development accessible to every developer.
We’re passionate about the fact that the evolution of applications from being products to being Internet delivered services has created a unique set of architecture requirements that traditional application platforms can’t deal with. Apprenda has led this charge and position for years.
We equip developers to write net-new modern enterprise applications today, and we help them leverage their vast existing application portfolios and modernize them into services with little to no friction. Customers like JPMorgan have over 2500 .NET & Java applications powered by Apprenda, with hundreds more being on-boarded. The result? Utilization jumping to 70 percent and more money being spent on innovation rather than keeping the lights on.
Yesterday, Paul Maritz unveiled more details around the Pivotal Initiative and their platform for the enterprise. It’s interesting to hear Maritz position around a future vision that is not really the future, but is the current market reality that leads customers to choose Apprenda because we fulfilled this vision before anyone in the market. Let me explain.
Our customers have bought into this vision today, and are executing with an enterprise PaaS that is driving IT efficiency and equipping CIOs to deliver on helping the business build innovative applications. Companies like JPMorgan Chase and Diebold leverage Apprenda exactly this way. Organizations like AmerisourceBergen have written data-centric cloud applications that are used to manage the intricacies of oncology practices and patient care, and have built those applications 33 percent faster with developers that are now twice as productive. This is how innovation is powered.
So what is the motivating factor for this new class of enterprise applications? When enterprises write custom applications, they fall into one of two buckets: applications that are internally facing that employees use, or those that are externally facing, typically accessed by customers and partners. Increasingly, enterprises are writing these external applications to generate new revenue or increase the stickiness of existing revenue because software based revenue is high margin (compared to their low margin physical goods and services). Healthcare companies write applications to flank their pharmaceutical distribution business, banks write applications to drive down the cost of servicing retail customers, insurance companies try and drive new services to customers through mobile applications, etc.
Essentially, they’re becoming service providers. In addition, cost pressures are forcing them to look for new ways to drive down the cost of the development and maintenance of existing, internally facing application portfolios (which most enterprises have at a scale numbering in the thousands of apps).
What does this mean? It means that to succeed in driving down costs of internal IT delivery, and to equip the enterprise to be able to build more of these next generation applications faster, every enterprise IT department will become a service provider. Over the next 18 months, we’ll witness a shift where IT becomes more aligned with the business and revenue functions of their organizations. They’ll write more apps that are revenue focused, and more internal apps that drive down cost. This means that CIOs need to partner with companies like Apprenda who have proven technology solutions that can reshape IT resources to fit a service provider model for internal and external applications, and that can equip developers to deliver on innovation by developing high margin revenue applications at a break neck pace.