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IBM Assessment: IBM Lotus Notes

IBM Cloud, Watson: littered with OS/2 Warp Deja Vu?

IBM’s latest quarterly financial results support a starting to be issue: The expertise huge may additionally eventually become an also-ran in the cloud computing and artificial intelligence markets. The latest business situation is somewhat equivalent to IBM in the Nineteen Nineties — which tried and did not make OS/2 the favored utility platform for customer-server computing — finally dropping out to windows pcs together with windows NT and Linux servers.

IBM CEO Ginni Rometty

a part of IBM’s latest difficulty involves the way it stories monetary effects. via lumping collectively cloud and cognitive software revenue into one line item, the company may additionally definitely be undermining a comparatively first rate (although removed from stellar) cloud story.

For its Q1 of fiscal 2019, IBM the day before today pronounced:

  • complete earnings of $18.182 billion, down from $19.072 billion within the corresponding quarter closing yr.
  • Cloud and cognitive software income of $5.037 billion, down from $5.116 billion. (be aware: studying that one line, some media reviews erroneously mentioned cloud revenues were down. in fact, the cloud revenues rose — which implies the cognitive piece of the business is a laggard, even complicated IBM says cognitive functions revenues grew four percent.)
  • internet income of $1.591 billion, down from $1.679 billion.
  • The revenue beat Wall road’s expectations, but revenues have been short of analyst expectations, SeekingAlpha says.

    IBM increase moves: blended outcomes

    IBM CEO Ginni Rometty because 2012 has been reshaping the enterprise for growth markets corresponding to cloud features, cognitive computing, cellular, safety and more. IBM has additionally been selling off slow-growth or no-growth utility companies.

    The business’s existing reputation, commonly speaking, hasn’t impressed me. among the explanations:

  • Gartner says the worldwide public cloud market will grow 17.3 percent in 2019. but IBM’s annual as-a-service run fee grew handiest 10 p.c yr-over-12 months in Q1 2019. AWS and Azure are higher and are growing to be way more hastily.
  • The artificial intelligence market is expected to exceed $191 billion through 2024, representing a compound annual growth price of 37 p.c from about 2018, in line with this document. And yet it’s safe to assert that IBM’s own cognitive utility revenues have been exceedingly flat and even perhaps down in some areas.
  • next Up: crimson Hat won’t retailer IBM

    Amazon web features and Microsoft Azure are working away with the general public cloud market, whereas Google Cloud Platform is as a minimum giving chase with some new and creative MSP-oriented strikes.

    because of this, many ISVs (impartial utility companies) and MSPs are embracing multi-cloud administration techniques that lengthen across AWS and Azure — and, more and more, Google. IBM on occasion pops up in that multi-cloud administration conversation — however now not often ample, in my view.

    IBM’s answer to the cloud challenge comprises buying purple Hat for hybrid-cloud application. The conception: pink Hat business Linux (RHEL) is terribly commonplace within on-premises data facilities and across public clouds. purchasing pink Hat, for this reason, offers IBM quick credibility as a multi-cloud and hybrid cloud software provider.

    That’s true. but there are three problems with the IBM-crimson Hat method:

    Challenges and opportunities

    a few bottom-line realities are fairly clear:

    In other phrases, IBM leaders neglected the most vital aspect of the cloud era — they didn’t make Watson handy to devour.

    OS/2 Warp Deja Vu?: For me, it’s a case of deja vu. Roughly 25 years in the past, IBM OS/2 may additionally had been the strongest working gadget available on the market. but the top-rated expertise didn’t win because (A) it became intricate to installation/eat and (B) lacked ISV help. quickly ahead to current day, and similar trends are surfacing with IBM Cloud and Watson — mainly as ISVs flock to Azure and AWS.

    When OS/2’s restricted opportunities grew to become clear, IBM went out and bought Lotus Notes to movement into the sooner-growth groupware collaboration market. It turned into a great flow for a couple of decade — except Microsoft alternate Server eventually beaten IBM in that sector.

    IBM: where’s the Killer idea?

    quickly ahead to latest day. IBM has nearly lost the public cloud wars, and should acquire purple Hat to are attempting and win the hybrid cloud wars. Amid all that, IBM’s overall company is maintaining up moderately well. standard cloud revenues are growing.

    IBM CFO James Kavanaugh

    first rate gains and cash stream will fund R&D, and there are extra alternatives on the horizon. Chief amongst them: Areas like Blockchain and safety.

    In protection, IBM delivered double-digit increase in Q1 2019, and has first rate traction with danger administration utility and features offerings, together with QRadar and Resilient, CFO Jim Kavanaugh spoke of during the previous day’s salary call. additionally, IBM’s protection intelligence operations and consulting features, which realize and respond to security threats for shoppers, are gaining momentum, he added.

    those are promising anecdotes. but overall, it’s clear to me that IBM’s so-referred to as strategic imperatives haven’t completely paid off for the business, its clients or its companions.

    Why Did IBM promote Lotus and different utility items to HCL?

    IBMIBM beefed up its enterprise collaboration providing these days with an acquisition of XCC. picture: Michael Coté

    prior this month, IBM and HCL introduced a deal value $1.8 billion, by which HCL will purchase a bunch of IBM utility products. The transaction, anticipated to within sight mid-2019, addresses a potential market of more than $50 billion. The items consist of:

  •  Appscan for secure application construction.
  •  BigFix for cozy device management.
  •  Unica (on-premise) for marketing automation.
  •  Commerce (on-premise) for omnichannel eCommerce.
  •  Portal (on-premise) for digital journey.
  •  Notes & Domino for e-mail and low-code speedy application construction.
  •  Connections for workstream collaboration.
  • HCL and IBM have current partnerships for 5 of those items, two of which are core to the a number of business digital offices that have invested in Notes, Domino and Connections. The ecommerce offering is also a key software for many. “The products we're buying are in colossal becoming market areas like security, marketing and commerce, which can be strategic segments for HCL. a lot of these products are smartly regarded by customers and positioned within the proper quadrant by means of business analysts,” HCL president and CEO C Vijayakumar said in an announcement. “The giant-scale deployments of these products provide us with an excellent possibility to reach and serve heaps of global agencies throughout a wide range of industries and markets."

    however, the question everyone is asking is why did IBM sell, considering the fact that over the past five years it has in no way overlooked an opportunity to flaunt its application credentials? The sale became introduced not lengthy after big Blue bought red Hat for an magnificent $34 billion, leaving many to wonder if the HCL deal might possibly be a way to cover a tiny part of the can charge. most likely, but that doesn’t tackle the principal issues and upheaval that IBM has been facing over the closing three years.

    connected Article:  6 issues to learn about IBM's $34B Acquisition of red Hat

    selling Legacy application

    Tony Byrne, analyst and founder of precise Story neighborhood, has been staring at and writing about many of these equipment for the previous 15 years. In his company blog, he outlined four take-aways from the deal:

  • Declining toolsets: RSG evaluates a few of those choices and they all had this in typical, they're ordinarily legacy choices, in long-term decline, in keeping with Byrne.
  • funds in legacy: there is a business model around buying ageing structures and housing them more or less to their dying. This can also be very profitable.
  • Licenses: It isn't clear that HCL definitely is aware of a way to execute with ease on the license model that IBM has used. amongst other things, will they now freeze out competing integration companions? 
  • strains proceed to blur: the road between big outsourcing/integration establishments and traditional application vendors has been getting blurry, and this just continues that vogue. capabilities enterprises are envious of the routine salary streams that companies see, certainly with new cloud fashions. 
  • MarketsandMarkets, a revenue have an impact on research and advisory enterprise concentrated on excessive-growth area of interest markets, pointed out that HCL’s purpose is to stream far from a labor-intensive application functions enterprise to an intellectual property (IP)-driven enterprise the usage of the IBM products. The outcomes is that IBM’s historic revenue combine has develop into HCL’s new revenue mix.

    despite the fact, HCL administration has a big assignment ahead proving it might turn the obtained items of IBM into a lucrative investment for its stakeholders.

    linked Article:  How Will the $34B IBM Acquisition affect purple Hat clients? 

    Declining Revenues

    Francois Koutchouk is without doubt one of the long-established participants of the Lotus Notes engineering group shaped in 1989. As a groupware evangelist, product supervisor and technology accomplice recruiter, he had direct visibility into most tremendous agencies adopting Notes. Koutchouk stayed with IBM as a consultant after the acquisition, he then moved on to assist agencies get off Lotus Notes.

    Koutchouk stated one unique skills of Lotus Notes is its resiliency: servers and clients run unattended for years. as a result, many purchasers simply opted to cease paying IBM for enhancements and assist costs. Most additionally froze building of Notes apps, drying out associated revenues for out of doors consultants like IBM world capabilities and IBM partners.

    For well over 10 years most tremendous businesses have feverishly tried to circulation away from Notes. From an estimated 10 million apps at its height, the first seven years saw a discount to 2 million or so apps — mostly through attrition and straightforward migrations to Microsoft SharePoint. The last apps are probably the most valuable, more complicated and tougher emigrate due to the entertaining and proprietary expertise powering Notes. “What IBM didn't tell HCL is that the last few years have seen the apparition of new structures more desirable suitable to migrate Lotus Notes apps and its users, reminiscent of Salesforce and Microsoft PowerApps,” he stated. “This, mixed with new applied sciences to automate migrations, is dropping the count (and cost) of ultimate apps at an remarkable price. IBM is offloading Lotus Notes because $1.eight billion is some huge cash for an put in base racing to zero revenues in just a few years."

    IBM Extends IBM Lotus Notes software to New Markets With on-line provider

    source: IBM

    October 22, 2008 09:01 ET

    ARMONK, big apple--(Marketwire - October 22, 2008) - IBM (NYSE: IBM) these days prolonged its most universal utility, Lotus Notes, to new markets via start as a hosted service, Lotus Notes Hosted Messaging.

    IBM has been riding Lotus Notes and Domino into new markets akin to iPhone clients, social networking and unified communications clients and many different new groups around the world.

    Lotus has led IBM into the nascent cloud features market with offerings corresponding to Sametime Unyte internet conferencing utility and IBM's "Bluehouse" extranet collaboration carrier. IBM is extending its cloud services strategy to its flagship Lotus Notes franchise to appeal to new shoppers together with more retail, world manufacturing and insurance companies. Lotus Notes Hosted Messaging may also be customized to the wants of each and every enterprise with the aid of an IBM capabilities team.

    using a internet hosting carrier, there isn't any deserve to purchase, condo or provide power to new hardware vital to run the application. purchasers of Lotus Notes messaging software can as an alternative center of attention their IT substances on other strategic business initiatives.

    Priced beginning at under $10 per consumer per month, new IBM Lotus Notes Hosted Messaging is designed primarily for corporations with 1,000 to 10,000 employees. despite the fact, IBM can tailor utility and repair plans for smaller and greater agencies as smartly.

    the brand new hosted Notes Messaging service is supported by a dedicated IBM group and lines two provider level agreement options, spam and virus filtering and back up and restore capabilities.

    "utility start fashions akin to cloud computing, software-as-a-provider and internet hosting are evolving as a result of agencies need flexibility," said Kevin Cavanaugh, vp, IBM Messaging and Collaboration. "the brand new hosted Notes is a different alternative IBM is providing to valued clientele. there's excessive demand for this approach on account of the style it's delivered, and its competitive pricing," he added.

    For extra phrases and stipulations of the brand new hosted application and repair, visit

    IBM also announced nowadays that international Hyatt company has chosen IBM Lotus Notes Domino and Sametime collaboration and unified communications application for its 365 motels worldwide. For greater assistance, talk over with

    IBM Lotus Notes and Domino has grown to 140 million licensed users worldwide, has multiplied its user base across small- and medium-sized companies, and is used through more than half of the greatest a hundred firms on this planet, and 80 percent of the excellent 10 global businesses in banking, telecommunications, aerospace and protection, purchaser items, electronics, assurance and prescribed drugs. Lotus Sametime, IBM's industry-leading unified communications and collaboration platform, has greater than one hundred million clients. It has been purchased by using 29 of the world Fortune 50, 12 of the suitable 15 global banks, eight of the good 10 global pharmaceutical businesses, and 4 of the five most profitable businesses on the planet. An Osterman analysis record* states that IBM Lotus Sametime is the #1 quick messaging utility used via establishments. For extra tips, seek advice from

    For a free verify pressure of the new IBM Lotus Notes edition 8.5, visit This software, which is being beta tested through tens of heaps of organizations global, now has new facets that lead to huge storage rate reductions.

    For extra counsel, visit

    *supply: Osterman analysis, "Presence, IM and true-Time conversation trends, 2008-2011, An Osterman research Multiclient report," September 2008.

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    IBM Throws Apple a Bone with Notes-Domino 8.5

    It used to be that Mac users would have to wait a year or more to get the same version of Lotus Notes that Windows users had. But IBM changed that in one fell swoop last week when it unveiled Lotus Notes 8.5 at the Apple MacWorld expo in San Francisco and delivered functional parity between the Windows, Mac OS X, and Linux versions of Notes. Version 8.5 also introduces XPages, a much-anticipated new development tool, and various security and administrative upgrades.

    IBM expressed some much-delayed love for Macintosh at last week’s MacWorld show. The initial release of Notes version 8 back in August 2007 did not support the Mac. In fact, one has to go back more than two years–to the release of Notes 7.0.2 back in October 2006–to find a new release of Lotus Notes for Mac OS X.

    Supporting so-called “non-standard” computing platforms (i.e. anything but Windows or IBM’s penguin pet, the Linux) has always posed a challenge for IBM software developers. You will remember that support for DB2/400–the version of DB2 that underpins the AS/400-PowerSystems-i platform–was missing in action when Notes/Domino 8 shipped. Considering that the AS/400 has long been touted as the second most popular Domino platform (behind Windows, of course), the missing feature made one wonder whether IBM developers had customers’ best interests in mind. It should be noted, however, that the Domino 8.5 server supports i5/OS as well as Linux, Windows, AIX, and Solaris. For the System i customers this extends to software such as Lotus Sametime, Lotus Quickr, and Lotus Enterprise Integrator.

    Only about 10 percent of Notes sales are on Mac, according to published reports of IBM comments. That constitutes a small minority of Notes users, and roughly mirrors the estimated worldwide Mac installed base of 3 to 16 percent of all PCs. But the number of Mac Notes customers is growing quickly, the IBMer said. And besides, putting Mac on a pedestal lets IBM dig into Microsoft, its main competitor in the e-mail and messaging market.

    The elevation of the Mac OS X version of Lotus Notes to peer status was a reason for Mac fans around the world to celebrate. “Notes 8.5 has allowed their Mac users to make full use of a non-Microsoft environment with all the advances of the latest Notes functionality,” says Mark Calleran, the CIO for the international headquarters of The Salvation Army.

    Ron Okamoto, vice president of worldwide developer relations for Apple, says Notes running on Mac OS X “creates an ideal platform for collaboration.” “We’re excited to see IBM’s continued commitment to the Mac platform with its latest release,” he says.

    Later this month, IBM will also be delivering a version of Symphony that supports Mac OS X. Symphony is a Notes add-on for creating documents and spreadsheets that can be shared online.

    For application developers who are taking advantage of an upgrade from pre-8.0.x Domino, the most anticipated feature in Domino 8.5 is Domino Designer, an Eclipse-based design tool that leverages a technology called XPages. This feature will basically let a developer update multiple documents, applications, or Web pages through a single design effort, thereby saving a terrific amount of time and money.

    On the administrative front, users will only need a single password to access all Notes or Domino applications with the new Shared Logon feature, while the ID Vault should make it easier for administrators to access or reset forgotten passwords. The hardware side of the IT house will rejoice at a new feature called Domino Attachment and Object Service (DAOS), which is a fancy way of saying that only one copy of e-mail attachments will be stored on the server, thereby reclaiming gigabyte upon gigabyte of storage.

    Notes/Domino 8.5 also brings support for calendar federation. This will allow Notes users to incorporate public calendars (such as Google Calendar) into their Notes calendar. For a Notes customer that also maintains a Google Calendar, they will now be able to view all their calendar items from Notes.

    Mobile Notes users also get something to cheer about with the introduction of Lotus Notes Traveler 8.5, a smart phone application that gives Notes users access to e-mail, calendar, contacts, to-do lists, and folders. As IT Jungle first reported last month, the new release of Traveler adds support for Nokia‘s popular S60 mobile platform, bringing to two the number of smart phone platforms that Traveler supports (Microsoft’s Windows Mobile being the other one).

    Lotus Notes/Domino 8.5 for Mac OS X is available now in English. It will become available for major European and Asian languages later this week. For more information, visit


    Traveler Has Arrived; Lotus Notes Gets Handheld Mobility

    IBM Launches Lotus Protector to Boost E-Mail Security

    IBM Releases Lotus Notes/Domino 8.5 Beta

    Notes/Domino 8 Hits the Streets

    DB2/400 Support for Domino 8 is Missing in Action

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    IBM unveils Lotus Notes 8.5

    Incisive Media has taken the decision to close the website, and is now publishing its content on its sister site Computing ( 

    V3's main coverage included digital transformation, cloud, mobile technologies, and other articles relevant to today's IT professionals.

    With Computing covering similar topics, but with a broader remit and larger audience, it makes sense to consolidate onto one platform, and allow their audiences to find more relevant content more easily.

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    IBM credits open framework for speeding Notes updates

    Just six months after releasing Notes/Domino 8, Lotus officials say the inclusion of the open client framework is helping them update Notes at a much faster pace.

    The company will ship Notes 8.0.1 next month, but it is not the timing that has changed, rather it's the depth of updates. Typically, the first updates to a new release come in a six-month timeframe but only include a compilation of fixes, according to Lotus officials.

    With the 8.0.1 release, IBM is adding features such as plug-ins for Quickr document libraries, and widget functionality for connecting to corporate and other data.

    “How were they able to go so fast?” says Alistair Rennie, vice president of development and technical support for Lotus. “We are getting all the benefits from the open platform.”

    While flexibility and speed of development are positives, the downside could eventually become complexity.

    For now, however, IBM Lotus is keeping it simple. Rennie says the Live Text and My Widget enhancements that Lotus plans to ship with 8.0.1 are pretty straightforward extensions to the Notes 8 client, which is built on top of Lotus Expeditor and Eclipse.

    Expeditor, formerly called the Workplace Client Technology, and Eclipse, let Notes 8 act as a client for XML-based services, composite applications made up of multiple services, and applications that incorporate XML-based interfaces.

    Things could get more sophisticated midyear when IBM ships Lotus Mashups, which will include a browser-based client tool for executing mashups and a tool for users to mash together small application widgets. There will also be a tool for IT to build widgets that access corporate data.

    The same open client framework used in Notes is being spread throughout the Lotus software portfolio and is already being used for Sametime 8.

    “We are starting to see a lot of partners pick up on that [openness],” Rennie says.

    SAP is one example. The ERP vendor and IBM unveiled a partnership to deliver a joint project called Atlantic that will integrate Notes and SAP’s Business Suite. Atlantic, slated to ship by the end of the year, will present data from SAP within the Notes interface. The first two modules will allow user to request leave and complete expense report processing.

    “This is a sophisticated app that ties real enterprise data to the Notes client,’ said Rennie. “The reason they can do that so elegantly is because of the open platform.”

    Rennie says IBM plans to roll out 8.0.1 to IBM employees in the first half of 2008.

    The 8.0.1 release also features some server improvements that will reduce I/O bandwidth usage by 30%, cut 20% from CPU usage and slim down mail storage by 35% using better compression and storage management.

    In the 8.5 release, which Lotus originally said would ship mid-year but is now not mentioning dates, the server will get further upgrades including another 35% savings on storage by eliminating filing of duplicate attachments, improved Notes ID file management and the ability to use any directory in place of the Domino directory. (Learn more about Messaging products from their Messaging Buyer's Guide.)

    Learn more about this topic  Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.

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