TECH

Google and IBM struggling with their ecosystems

Provided by Pakutaso

Well, IBM has announced the spin-off of the company, but we can’t expect a drastic improvement to the extent of splitting up the building and so on. It is only expected to improve efficiency because each company’s territory will become clearer.

This is where M&A and collaboration come into play, but even so, it basically just increases the sales of the acquired company.

And then there is the question of why now, because if you have a good management staff at IBM, they will have spun off the company in May.

If you look at the scope even wider than mergers and acquisitions and collaborations, the possibility of “rebuilding the ecosystem” to make it cloud-ready comes into play. Metaphorically speaking, Microsoft is trying to take the same strategy as it did when it got back on its feet… Or, rather, the way we see it, we will have to take it.

In this article, I’m going to share with you some of the world’s transformational decisions and the struggles of Goo! gle GCP and IBM Cloud to respond to them.

Just like in politics, the IT industry is also regressing in some respects to a decade ago, and Amazon AWS and Microsoft AZure, with their ecosystems, are going to be the ones to increase sales.

The Decline of Large Scale OSS

First of all, a company cannot survive if it does not secure sales and profit.

Nowadays, most of OSS is composed of software developers dispatched by companies. This is because there is a merit for a company to dispatch software developers.

However, something different is about to happen in this world of OSS.

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This article alone won’t ring a bell. So how about the following article?

This means that big vendors like Google, which provides OSS developers, will suffer from shortage of developers. Naturally, the number of OSS developers will decrease.

Of course, OSS development is also based on supply and demand, so developers from all over the world are expected to participate in it. However, nowadays, the isolation of OSS is going on, and it is uncertain whether developers from a certain country can continue to participate in this field.

In addition to the above, we have been working on the development of the serverless computing environment, such as Knative and Istio.

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“That decision upset many of Google’s partners, most notably IBM Corp. which has also contributed greatly to the development of Istio.”

Well, that’s true – IBM thought it would provide OSS developers and “everyone would share in the profits”. However, Google, which seems to be unable to move due to lack of developer supply from overseas, tried to control the world of Kubernetes one way or another politically.

In addition, the direct participation of foreign developers is gradually declining, because the two parties can’t coexist with each other since they have fundamental conflicting behavioral principles. Linux, the biggest OSS, has become a “dilettante club”, so the development is just going on as planned.

Right now, there are only export restrictions on high-performance chips and the like, but if things go badly, OSS development may have to move to membership. When I was a reseller of U.S. software, there was a time when the access to patches was restricted.

Therefore, although the shortage of developers is increasing due to the declining birthrate and aging population, “OSS as a form of joint development” will become more and more difficult to achieve. That is why the interest in automatic programming and debugging technologies using AI is increasing.

Expanding Indirect Effects of Ecosystem

Engineering people like to use words like “ecosystem” and “community,” but to a physicist, it is just a collection of elementary particles.

What I am trying to say is that the world is nothing more than the accumulation of things that individuals do, wherever they are. Ecosystems and communities are not generated by any particular substance.

There are places like GitHub and Twitter that are accessible to everyone, and people who are interested in them are exchanging information with each other. OSS vendors such as Red Hat facilitate such human network formation.

Especially these days, the opportunities for direct contact with people are decreasing due to work at home. So, from now on, it is expected to become more and more important to have a diffuse community using SNS.

This is a huge hassle for entities like Google and IBM, which have talented employees. The people you talk to are not “hearing one and knowing ten”. It’s also more like “hear one and know none.

Amazon AWS and Microsoft Azure have created an “ecosystem” or “community” in such a world. They are not the high-tech “user clubs” of big companies. The world of “one-person systems” is a tough one.

In other words, in the world of Twitter and the like, you need to make full use of your brilliant communication skills to win projects, or to overcome this by bodily effort. It’s a world where even Hitachi Vantara’s executives comment that it’s not easy.

Sales promotion through the Web is also becoming more important. In a sense, this is the world of SEO (Search Engine Optimization), in which Google is best at what it does.

And while IBM and Red Hat have a lot of enterprise business know-how, Google is still struggling. When you think about it this way, it seems to make sense for the two to work together.

Come to think of it, there is an executive who explained to me that “one-on-one promotional communication is still viable in the age of telecommuting,” but to what extent is he serious?

No, I admit that it does work, since face-to-face is now over a screen, for all intents and purposes. However, it is far less efficient than diffuse, one-to-many communication. I doubt it’s based on proper data analysis or expert consultation.

This is a world that can be tried and tested, which is why Google and IBM have been working with us for several years now.

Only SI Vendor is the only one with eight directions

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Now, if Google and IBM are good, what the hell is going on with AWS and Microsoft?

After all, AWS is famous for JAWS. ClassMethods President Yokota has been recognized as an AWS Hero for his work here.

If you read through IT magazines, you’ll see him on a daily basis. If you don’t know this, you haven’t read IT magazines, and Microsoft has been so influential that they have tried to reorganize their Microsoft partners with the help of the AWS user group.

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Our partner here is a specialist who fully utilizes AWS, as typified by the class method.

There is a difference in the amount of technical know-how and human resources invested. And by committing only to AWS, we also get incentives.

Of course, the benefits to AWS will change the status of AWS partner support, but there is little to gain for those who don’t contribute to the growth of AWS sales.

The world is built on serious business principles and those who say “let’s find a community that will help us” need to be very careful. If you are useful, they will come to you.

The problem with the Japanese management class is that many executives underestimate the importance of alliances. Well, since the weak are always disappearing, things will gradually change from now on.

Summary

Google and IBM had high hopes for OSS, but looking at the results alone, Amzon AWS and Microsoft Azure, which formed a closed partner/user association using SNS, were successful.

Large Japanese companies have also hosted user groups, but the age range of the participants is different. Large Japanese companies had executives in their 40’s, but AWS and Azure have many young engineers. (That’s why the emphasis is on the technical content.)

How will companies like Fujitsu, NEC, Hitachi, and NTT DATA move forward with their sales growth strategies? I think we’re entering an interesting phase.

Well, I guess that’s about as far as I’ll go. See you soon.

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Sei Yotsuba