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Microsoft goes open source: a game changer for ITIM?Analysts in both the US and UK have been anticipating Microsoft’s move to extend its IT management capability into the Linux and UNIX platforms. For example last fall at Gartner’s ITxpo, one analyst theorized that if application vendors moved into the IT management space, it would be game-changing. There is little doubt Microsoft’s move will make ripples in the market. The company has incredible influence in so many aspects of IT, that if this proves a serious commitment to IT management, there is a high probability for success. That success will likely come at the expense of incumbent vendors – mainly by way of taking market share from the Big 4. By expanding beyond the realm of Windows it is conceivable that customers might find it attractive to extend their existing MOM implementations to other platforms. However, this does not guarantee gentle westerly winds nor smooth sailing since there are several market dynamics and competitive factors that will influence how – and how quickly – Microsoft’s initiative evolves. First, cost reduction and cost containment are perhaps the most substantive pressures on IT decisions today. As such, it’s reasonable to expect the Big 4 will respond to this event with more aggressive pricing. In this approach, Microsoft will essentially be trading space for time, and slowly chipping away at Big 4 revenue streams. This will weaken the Big 4 over time. Secondly, there will remain some doubts in the market as to Microsoft’s credibility. For example it will have to prove it can manage mission critical environments as well as the incumbent vendors. This means IT decision makers will see tremendous risk in migrating to a Microsoft management platform – which can prove to be a difficult and time consuming sales objection to overcome. At the same time, the Big 4 are investing in two key product functionalities that will extend the vast distance among product innovation that Microsoft, despite its prowess, will find it challenging to cover. Mainly these investments are in behavioural logic – the detection of unusual activity that provides predictive capabilities – and data centre automation. Perhaps then, Microsoft has long range plans to move into the BSM space given it’s newly found operating system independence. BSM is still very much a level playing field with the Big 4 attempting to buy (rather than innovate) their way into a space with more agile pioneers, like Managed Objects, where our vendor neutral approach and pervasive integration is proving a difficult capability for them to match. - Jim
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I certainly agree with the analysis, Jim, I do not believe this move was a shocker. Systems management is becoming commoditized for the very reasons you’ve identified: cost and cost containment. This point is underscored during this period of economic uncertainty currently making headlines in North America.
In addition, your point whether Microsoft has the credibility in the systems management space to sell into that space is also well founded. For example, I do not see sophisticated IT shops – like the investment banking community – going the open source route, also for points you mention regarding the requirement for more than just monitoring.
However, Microsoft could make ground in smaller shops that intend to use open source for pure monitoring – especially if they plan to make the data accessible to a more expansive BSM platform, as you mention. Managed Objects has fulfilled requests from customers to provide integration with such open source monitoring as Nagios for that roll up purpose.
- Michele
Posted by: Michele Hudnall | April 30, 2008 10:43 PM
I would disagree on the point regarding credibility in systems management. Microsoft does have a credible platform for systems management. I would point out that whereas the big four platforms have typically tried to do everything for everyone at the component level, Microsoft's platform has evolved inline with commercial drivers in the data center space. I think Microsoft is better off not having gone head to head with the big four until now. The last ten years is a mere blip in the internet boom compared to what will come in the next ten years. I believe Microsoft is now better prepared to meet the needs of the current and growing commercial hosting providers. The big four may have their hooks into the investment banks of the world, but I believe Microsoft will now demonstrate the credibility they've always had and start to make headway into systems management for the investment banks of the world. Microsoft has vast resources which enables it to very quickly produce a competing product when a market for a product matures. My perception from my personal experience is that until relatively recently enterprises have done their own thing but only now everyone is doing industry aligned ITSM driven by cost. Some of the big four solutions are so arcane that they will need re-engineering to be as extensible as Microsoft's solution. And this is where I think Microsoft will have the big advantage, by being able to extend the System Center platform to meet any requirement faster than the big four, including extending into non Windows environments.
- Mosh
Posted by: Mosh Jahan | May 10, 2008 12:22 PM