AirBnB lowers hotel prices 8-10%, effects low end hotel more


There’s all sorts of fun findings and theories in this study of AirBnB’s effect in the hotel market in Austin and Dallas. The easiest one is that it lowers pricing by 8-10% for the non-business traveler segment:

As Airbnb has its roots in casual stays, including those involving shared accommodations, we expect it to be a more attractive option for travelers on a budget. Conversely, business travelers and vacationers who frequent high-end hotels are two examples of consumers we argue are less likely to substitute a hotel stay with an Airbnb stay.

There’s also some interesting commentary on the very fixed assets of traditional hotel companies verses the agility of AirBnB:
– It’s impossible to rapidly increase the supply of hotel rooms to meet demand: it takes an average of 4 years to build new hotels, so you can’t really meet rising demand even on an annual basis.
– In contrast, the AirBnB supply can expand and contract on a daily basis as people decided to list and delist their rooms and houses.
– Of course, AirBnB demand is cap’ed to the number of fixed houses and apartments in an areas…but companies to hotel rooms, that supply seems infinite. (There’s an interesting analogy to public cloud here.)

AI market sizing: $39bn in growth in less than 3 years?!

The market — defined as A.I.-related hardware, software and services — will surge from $8 billion this year to $47 billion by 2020, predicts IDC, a research firm.

Uh…

Also, some coverage of Watson business models, including customized cocktail drugs, which I hear is a scary big business in the horizon.

And, there’s some IBM AI spreadsheeting you can fiddle around with:

Market-share:

IBM may have a chance to join that group. By 2020, IDC predicts, 60 percent of the A.I. applications will run on the platform of four companies: Amazon, Google, Microsoft and IBM.

Revenue:

UBS estimates that Watson may generate $500 million in revenue this year and could grow rapidly in the years ahead, possibly hitting nearly $6 billion by 2020 and almost $17 billion by 2022.

Having lived through The Great Cloud Forecasting era around the turn of the decade, my advice is: take all this with care, but enjoy the razzle-dazzle!

Source: IBM Is Counting on Its Bet on Watson, and Paying Big Money for It

Book Review: Maximize Your Investment: 10 Key Strategies for Effective Packaged Software Implementations

The premise of this book, for most anyone, is painfully boring: planning out and project managing the installation of COTS software. This is mostly lumbering, on-premises ERP applications: those huge, multi-year installs of software that run the back office and systems of record for organizations. While this market is huge, touches almost every company, and has software that is directly or indirectly touched by almost everyone each day (anytime you buy something or interact with a company)…it’s no iPhone.

If you’re in the business of selling enterprise software and services, however, Beaubouef’s book is a rare look inside the buyer’s mind and their resulting work-streams when they’re dealing with big ol’ enterprise IT. As a software marketer, I read it for exactly that. I was hoping to find some ROI models (a scourge of my research). It doesn’t really cover that at all, which is fine.

There’s a core cycle of ideas and advice flitting in and bout of the book that I like:

  1. COTS software will do, you know, 80% of what you like. The rest is customizing it through configuration, your own code layered on-top, or getting the vendor to add in new features.
  2. The more you customize the software, the harder it will be to change. But, the less you customize it, the less it creates differentiation for your business processes.
  3. Most of the problems and challenges you’ll encounter, though, will be human based.
  4. Much of these human problems are about managing the requirements process to make sure the software is matching the needs of the business.
  5. Process-wise, to do this we like to take on a waterfall approach (try to specify everything up front, implement it all, then verify if it works). This results in a lot or risk of waiting for that final verification to see if it works and you were right about matching the COTS implementation to business needs.
  6. Instead, and iterative approach that focuses on learning and honing the COTS/business match-up seems like a good idea.
  7. Role-wise, getting someone(s) who have a tops-down view of the business process and enough technical understanding to map that to the COTS project is a really good idea, though hard to put in place.

While the book focuses on on-premises software, the overall thinking could easily apply to any implementation of a large IT-driven, vendor provided system: SaaS would work, and to an extent the kind of infrastructure software we sell at Pivotal. As the points above go over, the core thrust of the book is about managing how you make sure your IT is actually helping the business, not bogging down in its self.

If you’re pretty vague on what you should do in these large IT initiatives, you could do a lot worse than read this book.

Check out the book: *Maximize Your Investment: 10 Key Strategies for Effective Packaged Software Implementations *

ABB & Microsoft – more software eating 3D objects, i.e., IoT

Microsoft helping out ABB with some cloud ‘n’ IoT fun:

The most significant of these is a new alliance with Microsoft, whose Azure public cloud has been chosen to underpin ABB’s cloud, IoT and digital services across the ABB group. The companies will also work together on projects and services, although the extent of this will emerge over time. ABB also announced an internal reorganization and the appointment of a chief digital officer. All of these moves are part of ABB’s Next Level strategy, now in its third iteration, which sets out targets and priorities aimed at maintaining or increasing growth, profitability and value.

The agreement with Microsoft will help ABB offer cloud-based digital services across all its divisions. Functions such as monitoring, analytics, control, billing, forecasting, machine learning and many others will be delivered via applications and services hosted in Azure by Microsoft.

On ABB:

It has annual revenue of $35.4bn (2015) from operations in 100 countries, supplying switchgear, breakers, substations, generators, uninterruptible power supplies and power electronics, as well as management software.

Source: “ABB says the Next Level is digital, and Microsoft will help it get there”.

Saving $20m and going agile in the process

From an interesting sounding panel on government IT:

“We do discovery on a small chunk and then development, and then while that’s going on, we’re starting discovery on the next small chunk, and so on and so forth,” Smith said. “And then when the development is done, we loop back and we do user testing on that piece that’s done. But we don’t release it. That’s … one of the differences between agile and the way we did it. At the end of the phase we release everything.”

Also, some fun notes on consolidating legacy systems and resistance to going agile.

Puppet momentum, ~$100m annual sales

Growth, in terms of customers and revenue, appears to be significant. About 34,000 companies use Puppet’s software to automate data center operations, with 6,000 added last year, Kanies said. The company is approaching $100 million in annual sales and is expanding its headquarters in Portland, Ore. In January, it secured $22 million in financing from Silicon Valley Bank to fuel further expansion.

And then a stray container momentum/penetration number from Forrester:

Stroud sees promise in Puppet’s container support, despite his observation that only about 8% of companies are using containers for production workloads. “It gives current Puppetized work the ability to be containerized,” he said.

From The Register’s PuppetConf report

DellEMCWorld 2016

I skipped a few years, but I’ve been to most of the DellWorlds. It’s fun to be back this year now that Dell has fully scooped up EMC and, thus, Pivotal. I’m giving a talk on Wednesday, Oct. 18th, at 2:15pm along with my pal Richard Seroter, slides above.

There’s a few other recordings and shenanigans going on as well. Hopefully we’ll get some Pivotal Conversations episodes going, if not a new Coté Show episode too.

Cloud Platform Adoption: Lessons Learned — Philip Glebow, Gap

Gap’s Philip Glebow goes over their use of Pivotal Cloud Foundry, including things that worked well and need improvement. His list of the supporting tools they use – like APM and data virtualization – is handy as well.

Some items:

  • (~2:30) Fast deploys: “We can deploy changes faster than people can really consume them.”
  • (~18:00) Developer morale: “We could really push something in five minutes… and developers love it, you click the commit button and there you go.”
  • (~19:40) [Poor transcription by me] On the danger of changing too fast: …generally we want to have a little bit of control into what goes into that production environment… but we don’t want to change so rapidly so that users are confused… There’s also a little bit of cultural change that we need to go through… ((too rapid of change is jarring)) …and as we bring that capability forward, we want to be sensitive to those concerns.
  • (~23:58) Overview of their pipeline and testing.
    (~26:29) [Poor transcription by me]  Typically we’ve organized out teams around sort of domain concepts – so we have a pricing team – then there’s several squads, then that squad is responsible for optimization – price, packing the stuff, etc. That’s how we’ve organized the teams, two pizza teams, we’ve tried to that. Also, distributed teams… sometimes that’s a little bit complicated.

Allianz now deploying to production in minutes

By changing its development practices and investing in a private cloud platform as a service, there have been clear benefits to the business. “Historically it would take two or three days for a deployment to go to production, with lots of manual production. Now with the apps in the garages we can do it on the basis of Cloud Foundry within minutes.”

Source: Allianz app deployment goes from ‘days to minutes’ with PaaS and agile practices