Nemertes Impact Analysis: February 12, 2008

Nemertes Impact Analysis

Expert Insight On How Recent News Affects You

Microsoft's Huge Patch Release Underscores Need for Automation

Microsoft (NASDAQ:MSFT) announced plans to release 12 patches Tuesday, seven of which carry the most severe threat rating. This is the largest number of patches released in 12 months by Microsoft, and the patches cover a wide swath: Internet Information Server (IIS), Internet Explorer, Microsoft Works, VBScript, JScript, Active Directory, and even MS-Office for the Mac.

Patching is very labor-intensive, particularly given the scope of the MS patch list. In Nemertes' "Security and Information Protection" benchmark, one-third of participants said they still patch servers manually-meaning they're burning way too much midnight oil unnecessarily.

Impacts:

Enterprises: If you still are patching manually, now is a good time to re-evaluate automated patch solutions.

Vendors: Enterprises are looking for solutions that are comprehensive and
automated, yet provide relevance to these critical functions, including compliance, information integrity and information protection.

Investors: Look for consolidation in the patch-management space. Patching is becoming part of comprehensive compliance and information-protection solutions. Patch solutions that could be targets for acquisition include Shavlik Technologies and Patchlink Corporation.
--Ted Ritter, research analyst

http://www.nemertes.com/products_services/research/benchmarks/nemertes_benchmark_security_and_information_protection_volumes_1_4_0 [3]

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9061561&source=rss_news50 [4]

Oracle Rides SOA-Driven Data-Management Tide

Oracle (NASDAQ: ORCL) is releasing its new Data Integration Suite, bringing together its growing set of data-quality management (DQM) and master data management (MDM) tools and linking them to its middleware and service-oriented architecture (SOA).

Implementation of SOA tends to uncover problems in enterprise-data management. Previously hidden discrepancies in the meanings or values of data become visible when SOA breaks down the application and data silos that had hidden them. Nemertes' "Service Oriented Architectures and Applications" benchmark found that although only 25% of participants have an MDM system deployed, 53% of those without plan to get one, and another 17% are considering it. Moreover, 80% of participants with an MDM
have integrated it into their SOA, which shows that Oracle is making a wise move with its new suite.

Impacts:

Enterprises: As you move into SOA, don't wait for the data inconsistencies to pop up. Make plans to find them and address them proactively. Consider products from Oracle, IBM, and others to help.

Vendors: If you're selling MDM or DQM tools,make sure they're SOA-ready. Partner with core application vendors, such as Microsoft,or those with vertical applications.

Investors: Look for smaller MDM and DQM companies, such as Kalido, as potential acquisition targets for vertical-specific enterprise software vendors. Examples include SunGard in higher education and Sage Software in medical-records management.

--John Burke, research analyst

http://www.oracle.com/technologies/integration/data.html [5]

Sony Ericsson Smartphone Straddles Entertainment, Productivity

Sony Ericsson will use Windows Mobile software (rather than the Symbian OS it has been using) for its Xperia X1 phone, scheduled for release later this year.

By combining Microsoft's mobile platform, geared toward business users, with Sony's consumer features, such as Walkman music players and Cybershot camera, the converged device addresses entertainment and productivity.

Nemertes has found mobile productivity solutions are high on enterprise priority lists. IT decision-makers want to mobile-enhance numerous applications, and 90% say they'll start with office-productivity.

Impacts:

Enterprises: The device, with touchscreen and slide-out keypad, could be the iPhone for business users since it has the productivity benefits of Windows Mobile along with the entertainment features.

Vendors: The same battle raging in the wired community over open platforms vs. proprietary platforms will play out in the wireless space, as well. Open platforms, such as Google's Android, will increasingly contend with Windows. For the foreseeable future, carriers and mobile instrument makers must support both.

Investors: The development is a boost for Windows Mobile which lags far behind Symbian in market share among mobile operating systems. This is the first time that Sony Ericsson has not used the Symbian operating system, in which it is a shareholder.

--Katherine Trost, research analyst
http://www.news.com/2300-1041_3-6229980-1.html [6]

Microsoft UC Developer Programs Increase Application Integration Options

Microsoft (NASDAQ:MSFT) announced programs to support application development for Office Communications Server (OCS) 2007. Microsoft's initiatives include an early-adopter program to train independent software vendors (ISVs) to integrate third-party products with OCS 2007 and Exchange 2007, and a virtual lab environment.

The real driver behind UC adoption isn't the feature set. It's the ability to integrate UC services with business processes and applications, typically through service-oriented architectures (SOA). In the Nemertes benchmark, quot;Service-Oriented Architectures and Applications," 58% of IT executives said their organizations were evaluating or planning to integrate communication applications with their SOA initiatives.

Impacts:

Enterprises: Make sure you educate your developers and line-of-business managers on the opportunities to integrate business-process applications with communications services to improve efficiencies, reduce costs, and gain competitive advantage.

Vendors: Developer support for UC platforms is key to success. Make sure you're doing all you can, such as establishing communities of interest, providing support tools, and building partnerships to expand third-party developer networks.

Investors: Expect ISVs to continue to build out the ecosystem around UC products. Look for opportunities to invest in ISVs with specific vertical experience such as Aspyra (health care) and Onesta (financial services).
--Irwin Lazar, research analyst

http://www.microsoft.com/uc/default.mspx [7]

Ericsson Announcement Provides Boost to the Mobile Worker

Ericsson (NASDAQ: ERIC ) inked a deal with laptop manufacturer Lenovo (HKSE:0992.HK ) to provide HSPA modules for Lenovo laptops starting in 2008.

HSPA (High-Speed Packet Access) is a 3.5G wireless data technology encompassing 160 networks serving 20 million users and reaching a total of 200 million individuals (primarily outside the United States), according to the Global Mobile Suppliers Association.

In the Nemertes' benchmark, "Building the Successful Virtual Workplace," application access and business-unit requirements were the leading drivers for mobile services for more than half the participants. The ability to buy HSPA access modules already installed in laptops offers an easier way for
enterprise mobility managers to provision high-speed data services.

Impacts:

Enterprises: Plan to leverage HSPA where it makes sense as part of your mobile architecture (particularly outside of the United States)

Vendors: HSPA will increasingly be a requirement for mobile devices, especially in areas outside of the United States. Define your HSPA strategy moving forward.

Investors: As HSPA deployment grows look for opportunities to invest in companies delivering HSPA infrastructure including Nokia-Siemens (NYSE: NOK), Ericsson, Alcatel-Lucent (EPA: ALU) and Texas Instruments (NYSE: TXN) to name a few.
--Irwin Lazar, research analyst

http://www.ericsson.com/solutions/operators/mobilesystems/index.shtml [8]

AT&T's Expansion of 3G Signals Importance of Wireless Broadband

AT&T (NYSE: ATT) is increasing its deployment of its 3G UMTS (Universal Mobile Telecommunications System) third-generation wireless network, giving the carrier coverage to 350 U.S. markets by year's end.

AT&T also will have a platform for upgrading to HSPA (High Speed Packet Access) and ultimately LTE (Long Term Evolution), a pre-fourth generation wireless technology.

Nemertes' research has consistently shown enterprise intent to deploy wireless mobility solutions. The stumbling block has been the lack of ubiquity in high-speed wireless access. AT&T's announcement as well as Verizon's (NYSE: VZ ) recently stated intent to evolve its EV-DO (Evolution Data Optimized) wireless access to LTE means not only will high-speed access be available in more places, it also will be much more capable.

Impacts:

Enterprises: This is good news for enterprises who have been holding off on major wireless applications. The general availability of wireless broadband should ease concerns associated with roaming.

Vendors: General availability of UMTS sparks additional demand for the appropriate chip sets and transponder technology that will be embedded in laptops and other wireless devices.

Investors: As the wireless data market continues to heat up, the carriers' prospects will also improve. Further, the chip-set requirements will benefit vendors such as Intel (NASDAQ: INTC ), Ericsson ( Stockholm:Erica.ST ), and Motorola (NYSE: MOT).
--Dr. Mike Jude, research analyst

http://www.engadgetmobile.com/2008/02/06/atandts-2008-plans-include-80-new-cities-with-3g-hsupa-network/ [9]

Poor Password Management at Root of $7.3B Losses at Societe General

Strong identity management and better internal audit processes could have saved the French bank Societe General much of its lost money.

A former auditor's embezzlement scheme compromised many users' accounts across multiple systems, allowing him to circumvent separation-of-duties protections and cover his tracks.

Nemertes' "Security and Information Protection" benchmark found that as more robust identity-management practices and systems continue to spread into the enterprise, about a quarter of participants listed identity management as a top priority for 2007 and 2008.

Impacts:

Enterprises: This is the best possible cautionary tale to show to management when they kick about implementing IdM, doing audits and following procedures.

Vendors: Likewise, this is good ammunition for the marketing machine! Be ready to explain, though, how your tools would be less vulnerable to gaming than the systems in place there.

Investors: Look again at the vendors, large and small, in the IdM space.
--John Burke, research analyst

http://www.infoworld.com/article/08/02/04/Poor-password-management-may-have-led-to-bank-meltdown_1.html [10]

SOA Goes Vertical and Horizontal: Perceptive Software Serves Insurance Companies

Perceptive Software has announced ImageNow, an Enterprise Service Bus (ESB), specifically for insurance companies. ImageNow ESB provides insurers with an open, Web services solution to integrate Perceptive's insurance application, ImageNow, with the rest of the insurance companies' services ecosystem.

Perceptive's ImageNow ESB is riding a wave of adoption of SOA for ERP systems. In Nemertes Research benchmark, "Services Oriented Architectures and Applications (SOAA)," 72% of participants are using SOA to use services
from or provide services to their ERP applications.

Impacts:

Enterprises: An ESB is a logical and functional means to link legacy applications into a SOA. Push your legacy application providers to move in the same direction as Perceptive.

Vendors: Enterprises are moving to SOA and if your legacy application doesn't provide a set of open, standards-based interfaces, you risk being replaced with an application that is either SOA, or SOA-friendly.

Investors: Look for legacy application providers to extend their interfaces to an ESB. Also, look for companies, like Sonic Software to extend ESB through configurable adapters.
--Ted Ritter, research analyst

http://www.nemertes.com/benchmarks/nemertes_benchmark_softwareoriented_architectures_and_applications_1?# [11]

http://virtualization.sys-con.com/read/498460.htm [12]