Click here to close now.




















Welcome!

@CloudExpo Authors: Kaazing Blog, Pat Romanski, Esmeralda Swartz, Liz McMillan, Elizabeth White

Blog Feed Post

The Expectations of the Enterprise 2.0: An Interview with Matt McIlwain

Madrona Venture Group's Matt McIlwain discusses what the enterprise 2.0 means, and what brought us to this point in software development. Learn how BYOD policies, empowerment, and other innovative strategies all contribute to the apps we can't live without.

Noel: Hello, this is Noel Wurst with Skytap and I am speaking Matt McIlwain who is the managing director at Madrona Venture Group. I was really interested in

speaking with Matt based off an article that I read that he recently wrote titled, “ In the Empowered Enterprise 2.0, Startups Have the Inside Track to Success.” How are

you today, Matt?

Matt: I’m doing fine, Noel.

Noel: Great. Thanks for sitting down with me today. As an English major, I first wanted to ask you what your definition was for the Enterprise 2.0, and may be

how that differs from what it used to be, from the Enterprise 1.0.

Matt: Yeah, the way I think about it, is that Enterprise 1.0 was more of a top-down driven style of organization where not only parameters but decisions were

made and controls were set and new types of products were identified and developed in a top-down way. In contrast, Enterprise 2.0 is an era where the

bottoms-up motion of new applications and solutions being discovered is combined with the top -own motion, and they kind of coexist with an increasing

amount of influence from the bottoms up.

Noel: Okay. With that bottoms-up process, I know that comes a lot with collaboration, and it’s really interesting when I was researching the evolution of this

definition, I read where Andrew McAfee, who is credited with coining the phrase “Enterprise 2.0,” I read where he had to revive or he

chose to revised his definition completely only 7 days after he published it because of the input he received on just other people thought the definition

should mean. It’s kind of like you had collaboration from the very start, just with the coining of this phrase and it’s just grown and grown in the

developing of these applications.

Matt: I actually think that collaboration is very important and I think it’s one of three core areas around Enterprise 2.0, the other two being

elasticity and insight. Elasticity, meaning everything that we can now buy on-demand and buy by small increments. Obviously infrastructure as a service

would be one of the examples of that but almost anything which you can buy on a kind of low-end entry subscription basis, or have a free trial and go from

a premium model into something that you can buy a limited amount of is the elasticity notion.

Collaboration to me is more the overarching word that encapsulates the cloud-first designs, the mobility access capabilities that we have, and there is

this notion which I think is to your point, of some of the social dimensions that things are iterative, that I put something out there and I get feedback

around it or I put something out there and others improve it. That’s one of the three elements of the collaboration piece, which sits in this broader, I

like to use the ICE metaphor. Insight, Collaboration, and Elasticity: the 3 key building blocks of Enterprise 2.0.

Noel: What kinds of, I guess as far as how these enterprise applications are developed to make them qualified to be considered an “Enterprise 2.0” application.

What kinds of differences are you seeing in the way that these apps are actually built and the way that they’re actually developed versus the way that they

were developed in the past? Is that creating any kind of difficulty for some organizations?

Matt: I think that the key insight there is that a lot of things are starting more at the edge of the enterprise. In fact it is bottoms-up idea. And people are

trying to solve their problems at the edge of the enterprise. One way to think about it is that there are really three types of IT within an enterprise

now. There’s corporate IT, there’s business unit IT, and there’s shadow IT. And at some level, there have always been those, but shadow IT, because they

can go out and find and download, or use if it’s a cloud, back to that cloud part of collaboration, a solution—they can adopt it, they can work with it,

and they can deliver solutions that solve their localized problems. That’s a motion that didn’t work the same way ten to fifteen years ago and so what

you're seeing is teams of the shadow IT level that are going out and solving your problem.

Sometimes solving your problems means they have to develop an application, and they can do that with this very elastic infrastructure, or these simple to

try and then adopt software-as-a-service kinds of solutions to solve your problem—and that’s what’s very different now. Now, the other side of the coin is

that within an enterprise, you can’t allow that to happen sort of willy-nilly and without any kind of governance, and policy management, and control—and

that’s why that Enterprise 2.0 definition has to have both top-down and bottoms-up and how they meet together to create something that was workable from an

enterprise perspective.

Noel: Do you think that agility and agile development has played some sort of role in that? With everything trying to be done faster and at a higher quality?

If teams are seeing the ability to implement things like this on their own, without this approval they used to have to get in the past. Do you think that

agility is helping teams deliver faster and at a higher quality, but is there still some risk involved when teams are making those decisions for

themselves?

Matt: I think that it definitely helps from an agility perspective. What I would note is that one of the biggest challenges within the enterprises, is they

don’t have particularly agile infrastructure. So, you're seeing a lot of big corporations try to create more agile software development teams but their

internal procedures around procuring and configuring that infrastructure are not agile. So, I think as a result back to this bottoms-up, you're seeing

teams say, “Hey I’m just going to go find some elastic, agile infrastructure and an elastic agile process and I’m going to go solve my problem that way.”

What happens though, is a lot of those types of solutions are one-offs, and once they get developed and somebody throws them essentially over the wall into

some kind of a production environment—what’s going to happen then? I think that’s why you're seeing the emergence of a new type of system that is an agile

systematic approach that has a notion of continuous integration involved in it that is helping bridge this gap between these bottoms-up one-offs and the

more systematic needs of enterprise organization. Because once that first solution is built, you need to continually improve it, back to the point of our

collaboration, and you're going to get feedback on what needs to be continually improved.

Noel: Absolutely. To go back to your article where you mentioned that the relationship between bring your own device policies, distributed responsibility, and

enterprise 2.0, but you also brought up one other thing that I thought was really great. It was that, when employees become empowered in their personal

lives through their devices that they use on their own time. Whether it’s a smart phone, or a tablet, wearables, or anything else that’s coming out these

days— that expectation of that empowerment moves into the workplace as well.

They’re expecting that empowerment, I think you used the phrase “out of every piece of technology they touch”—they’re expecting it work as well. That’s a

connection that hadn’t really been made before I don’t think. In the past, you expected to get the same out of your devices at work than you did at home.

Matt: Look, I’m a big believer that human beings like the feeling of freedom and empowerment. That smart connected device that they use in their personal lives

is in a sense sort of a personal remote control that connects their physical world with their digital world. It allows them to have access not just to the

device but all the applications and solutions that are often digital first but increasingly interacting with the physical world. Take Uber for an example

and so with that the expectations that brings, they simply go, “why can’t I have that in my work context?”

Whether I’m a consumer or services in the work context, the knowledge worker, the business workers that are within the business units wanting to consume

services in a more agile way. Having that same kind of personal smart phone remote control experience in the office with apps like Concur, which is a SaaS

kind of app, or SalesForce, and so and so forth, or they’re the teams that are developing the next generation of solutions within the enterprise. And

because those expectations have been raised so much, the enterprises are now following rather than leading. Fifteen to twenty years ago,

really the enterprises had the resources to go buy the big iron compute technology of the day, and systematic approaches of the day and develop solutions

in that. That’s no longer the case.

Noel: In another article that I read on the same topic, the author mentioned that the startups that are producing really innovative enterprise software are

receiving a lion’s share of venture capital because the software is “usable.” While I really like that that’s that’s a goal they have to create something

“usable,” it almost seemed like it came up a little bit short. In your story, you're explaining how these enterprise applications aren’t just

usable—they're really enjoyable. They’re fast, they accept and welcome feedback, they benefit the employees and the businesses, and I feel like it

goes beyond the definition that we once had of just what “usability” was.

Matt: I’ll come back in a second to the usability point. I think that the link there is actually that when people have empowerment, they have freedom, and

they’re also often willing to have accountability and say, “Hey, okay I got the freedom. I got to go do the things I wanted to do, but what did I

deliver as a result?” Whether I’m a team, part of a team that’s going to deliver a next generation product or I’m part of a business team that because I

got to pick my apps, I was expected to deliver a better marketing solution, or a better sales solution or whatever it might be within my organization.

I think that that’s a key piece, and it does start at some level with usability. Let me give you a very “non-enterprisey” example. In the last month, this

organization, Code.org, put out this idea of an idea of “an hour of code” and invited anybody, mostly kids, to develop their first software program. 20

million people, mostly kids, did this in the last month and I know, I’ve got a 10-year-old son. He feels so empowered now about, “Hey I can develop

software. I did it on this particular service that was online. I want to learn more about this. I want to build a mobile app now.” And so, you kind of lean

in with that freedom and that experience, and it starts with usability.

Code.org at its surface was very simple and easy in how you learn to do basic building block kind of software development, but now you want more. A lot of

times, good usability is actually abstracting away and masking the complexity that’s underlying it. Somebody has to be able to build the stuff that’s

complex, and extract a way up into the level of usability and that’s where you need systematic approaches.

That’s why the bottoms-up piece will have its limits, because you need systematic approaches. Whether it’s how you manage all this new bottoms-up

empowerment, or how you create a level of accountability and control for, “what are we going to do in the future once these things are becoming

standardized within our organization.” I think usability is a wedge into getting adoption of innovation.

Noel: That is very interesting. I hadn’t thought of that. It is almost like usability is, kind of like the enterprise used to exist in this 1.0 fashion, is now

at 2.0. I wonder if, one day, usability is going to carry an entirely new meaning. Not just being enjoyable, but delivering those results as well. Even if

it’s usable, there’s still a business goal there to deliver value to the customers that this app is essentially serving.

Matt: I’ll give you one example from one of our portfolio companies. Lots of people use these top-down things like SharePoint, and Project, to manage work. But

if they’re hard to use, and they're kind of kludgy because you’ve got to integrate different pieces together—you might go looking for something else. We’ve

got a company called SmartSheet that has tens of thousands of paying customers. It’s a very simple, bottoms-up, project management, “get stuff done”

application. It’s cloud first, it’s mobile first, it’s very broad-based in its capabilities and it’s basically replacing emails, spreadsheets, and

SharePoint in big companies. Big companies like, well, someone I shouldn’t say, but shockingly big companies in the tech world.

Noel: That is very cool. Thank you so much for sitting down with me today.

Matt: Well, my pleasure, Noel. I enjoyed having the conversation.

Noel: Definitely. Everyone, this again is Matt McIlwain who is the managing director at Madrona Venture Group and again,

that article that Matt recently wrote is titled, “In the Empowered Enterprise 2.0: Startups Have the Inside Track to Success”. Thanks

so much, again.

Matt: Thank you.

Read the original blog entry...

More Stories By Skytap Blog

Author: Noel Wurst is the managing content editor at Skytap. Skytap provides SaaS-based dev/test environments to the enterprise. Skytap solution removes the inefficiencies and constraints that companies have within their software development lifecycle. As a result, customers release better software faster. In this blog, we publish engaging, thought provoking stories that revolve around agile enterprise applications and cloud-based development and testing.

@CloudExpo Stories
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...