One plus One Equals Five

That's not just bad math, that's the new Oracle / Sun merger. Wow. I have always appreciated both companies for their technical abilities. They have always worked together to bring these excellent technologies of theirs, however, there was always a bit of a break or a seam between the two companies where things would fall through the cracks. Now there is one provider for all the technologies and the gaps are filled. But that's not all. When you add the two, the sum of the parts is clearly much larger then the two companies parts.

I am revisiting our strategy regarding the technologies that are being offered by Oracle / Sun. I have been critical and maybe a bit unkind towards Oracle and maybe now we need to re-evaluate that. What is different to me is that we don't fit into the Oracle developer world. I see People, Ideas & Objects as a customer of Oracle / Sun. When I see things from that renewed perspective, I see this solution growing substantially more real in terms of its possibilities.

Making this big of a shift in terms of the Draft Specification, the user community and the Community of Independent Service Providers are not affected. Producers win handsomely in a revised People, Ideas & Objects. I'll be making this decision in a short period of time. January 31, 2010 I'll note the changes, if any, in a post.

Larry Ellison made the comment in his presentation today. "How can you be against cloud computing, that's all there is". Sun Microsystems wrote a White Paper on Cloud Computing in June 2009. Access to the document may require registration. Unlike most papers on Cloud Computing, this paper identifies the key concepts and concerns of business users. I learned a lot about many of the changes in architecture that are necessary, and I see clearly how an application such as People, Ideas & Objects can run in the cloud.

The two terms best used to define People, Ideas & Objects overall concerns is "Quality & Velocity". Two buzzwords that are well worn but important to these communities. Quality of course is the hard fought-for demand for perfection. Doing things in a half-baked manner is unacceptable to me and these user communities, and although I am unable to assert the necessary requirements in a project with this scope. The architecture and Complex Adaptive Systems, where users are in control of the product quality, are how the People, Ideas & Objects application modules will achieve its quality.

Velocity is a term that is being used in the technology and Complex Adaptive Systems communities. It refers to the speed at which things are happening. The bureaucracy was very effective in its efficiency, due to its inherent inefficiency. That is to say that the bureaucracy is inefficiently efficient. Today, and in the future, requires that velocity be accelerated to meet the demands of the market for energy. Velocity is the speed of change and development, and can not be planned or organized in a traditional fashion. It has to happen and evolve from the community naturally, it can't be forced or involve management changes.

Quality & Velocity are why the communities, and particularly the Community of Independent Service Providers are so important to the success of People, Ideas & Objects and the energy industry. As much as I want to be part of that community, I know that any further meddling from me is not just counter-productive but destructive. If I could write the Preliminary Specification it would take me 5,000 years. I chose the alternative and sane choice of not being involved at all. My job, as I see it today, is to source the financial resources to support the communities and, hopefully I will be able to continue to do research in areas that may be of value to the communities. When I mean communities I mean everyone that is affected by these developments.   

Cloud computing imposes some interesting restrictions on our developments, and some interesting opportunities. The biggest opportunity is of course facilitating velocity. Recall in the shrink-wrap days how software was upgraded? Usually annually and with a steep price attached. People, Ideas & Objects will be upgraded constantly, possibly by the second. There is no way that I can see an industry such as oil and gas, with the inherent issues ahead of them being able to adapt quick enough if they are not using cloud computing for their ERP system. SAP is the bureaucracy, as is People, Ideas & Objects are the nimble, agile and high velocity oil and gas industry.

One very interesting change from traditional systems is the stateless nature of cloud computing. If we go back to our Technical Vision, we see that Asynchronous Process Management is a cornerstone of our application. This means that when partners in a Joint Operating Committee vote for a capital expansion, this may bring in elements of game theory. Therefore some producers may withhold their vote until they can determine another firms decision. This is asynchronous in that the voting process may be held up for a few weeks. This asynchronous process will have to be written to new tables in the database to reflect its percent of process completion. Not a difficult thing to do, but to leave the variables in state could lead to technical difficulties in the Cloud computing model and potentially lost data. Its an architectural change in the way that cloud computing operates.

I can see in my future many oil and gas company managers arguing that their involvement in this critical area should be considered, and a different architecture be adopted. If we go back to Professor Carlota Perez, the People, Ideas & Objects strategies are the competitive way in which the Information & Communication Technology Revolution competes with managements charade. Management have a choice, either accept the changes that are happening or die. I, after six years have a preference towards your demise, however I won't state it here, their may be children that are reading this.

Again this Sun Microsystems paper is by far the best that I have seen on the concepts around cloud computing. It fits into how the oil and gas industry is able to accelerate its performance to the level that is needed to meet the market demand for energy. Meeting these demands for the remainder of this century. If your an investor or shareholder in oil and gas that thinks this alternative form of organization meets with your needs. Please review our Funding Policies & Procedures. And if your a potential member of our user community or interested in the Community of Independent Service Providers, please join us here.

P. S  I am impressed by Apple's new iPad. The only question I have about the device, is what do you need an office for?

Technorati Tags: People's Oracle Sun Agile-Scrum Strategy
 

Open Source, with a twist.

Although People, Ideas & Objects is a project that subscribes to many of the principles of open source software. We don't qualify under any of the currently existing Open Source Initiatives approved licenses. My two concerns regarding this project are that the ability to run the binary of the applications be limited to People, Ideas & Objects exclusively. I am also concerned with the industries desire and behavior of parsing "opportunities" to have multiple companies "compete" for the crumbs they leave for service providers in the oil and gas industry. These competitive strategies have left all of the power in the hands of the bureaucracy as to what and when a project will get funded, implemented and deployed in the oil and gas industry. Name a good oil and gas accounting or ERP application in the market space and you'll see the results of the oil and gas industries micro management of the software vendors. This 1950's style of management is inappropriate for the oil and gas companies to continue. They have enough to do in this new age of costly energy to be concerned with the competitive makeup of any of their service industry providers. Please see the Resource Marketplace Module for further information on how this is handled in the People, Ideas & Objects application.

However, in order to provide the security and stability of the application it needs to be subjected to as many "eye-balls" as possible. This provides the innovative oil and gas producer with assurance that there is no inappropriate code contained within the application. What "our" license will provide is the ability to inspect, test and review the code, but not to run the binary.

At this point in time, lets also be clear of how the application binary will be provided to the innovative producers. The cloud computing concept is in its infancy, but I see no other way then to run an application of this size any other way other then on the cloud. Oracle has recently termed the phrase "industry in a box" and that applies clearly to the application modules of People, Ideas & Objects. The size of this application may have several thousand members of the Community of Independent Service Providers and multiples of this being their employees, millions of users, tens of thousand of producers, hundreds of thousands of Joint Operating Committee's and tens of thousands of service industry firms.

An application of this size can not be undertaken by multiple vendors. The intellectual property that supports the Draft Specification is a result of my six years of dedicated 14 hours per day of research. To come up with a competitive offering someone is going to have to come up with a different hypothesis and build it through research such that it solves the industry problems in similar ways that the People, Ideas & Objects Draft Specification does. This too will take them six years and will have to be done by people who are sworn not to have, or will ever, read any of the material in the Preliminary Research Report, Draft Specification and this blog. Good luck.

Clearly the ability of the industry to sponsor multiple applications like People, Ideas & Objects is not within what could be practically done in the time frames available to them. No doubt management will attempt to do so, and I wish them good luck. Focusing the energies on this one project will be a challenge for all concerned. Diluting our efforts with competing alternatives will only cause the industry to expend more cash and time. This is primarily due to the fact that an innovative oil and gas producer does not garner any competitive advantage from using their ERP system. People, Ideas & Objects focus is to provide the innovative producer with the most profitable means of oil and gas operations.

It is however, not the basis of whether the producer will earn any profits. Their profits are based on focusing their energies on applying their ever increasing scientific and engineering capability toward their unique and mutually exclusive asset base. People, Ideas & Objects provides this natural way of operations but cannot take credit for a producer being profitable when it has nothing to do with the science or assets of the producer firm. What I can assure the innovative producer is that whatever the decisions and assets look like, using People, Ideas & Objects will ensure these assets earn the most profits then either SAP or Oracle. That is People, Ideas & Objects competitive offering.

I am pleased to note that yesterday Sun and Oracle have received European approval for their merger / acquisition. Sun has been our hardware and software (Solaris, Java, NetBeans, GlassFish and others) vendor. Now with Oracle being part of the mix, its important to note that the two technologies of theirs that are being added to this project. The first is the Oracle Database, the place where I was indoctrinated on relational theory, and Oracle Coherence. We will not be using any of the Fusion Middle Ware products and as such are able to maintain the blank slate approach to this most unique of industries, oil and gas.

Oracle and I have a bad history together. They are single-handily responsible for much of the management of the applications intellectual property in this fashion. In 1993 we signed a comprehensive agreement to jointly develop oil and gas systems for Canadian producers. In 1997, after expending mine and others capital, Oracle Energy was announced. We chose to move to make our applications operate with Price Waterhouses oil and gas applications and said good bye to the likes of Oracle. Oracle Energy was quietly put six feet under in 2000. So here we stand, again.

If there is an opportunity to resurrect the 1993 agreement between Oracle and People, Ideas & Objects, I'm there. An application of this scope needs the resources of Oracle to be a fundamental aspect of its deliver-ability, reliability, accessibility and security. The only thing I would ask Oracle to make this happen is they recognize the market space of the energy marketplace is People, Ideas & Objects. Provide me with some compensation for their activities in 1993 to 1997, and together we can make this real.

Oracle stands to earn significant revenues and profits from the licensing of Java, Databases, Computer sales, service and support. IBM also wants this business, however, I feel the market is best served by Oracle and expect that they are the most capable. Oracle, here is my email address. If I here from you before March 31, 2010 the business is possibly yours.

This is why we are Open Source with a twist. For more information on Open Source and its benefits, please review this recent Sun interview. If these strategies resonate with your firm, please support these developments here. If your a user, or maybe want to be come part of the Community of Independent Service Providers, please join us here.

Technorati Tags: People's Open-Source Oracle Sun
 

As the Sun sets...

We bid adieu to Sun Microsystems and recognize the Draft Specification is now one year of age.  I can say with out much reservation that it has, and will be, the most difficult thing that I have done in my life. Taking better then a year to write and the result of seven years of university and thirty years of experience in oil and gas, at 50 you know there is not that much gas left in the tank. My father always said that your 40's are the time in which you can do anything. Your are mentally, physically, spiritually and intellectually at your life's peak, and I feel that is the case with me. After a little more then a year since publication, this past year has been more about recovery and recharge then anything else.

I look back on the 17 years in which I started working to develop oil and gas systems; with amazement that I was able to get the job done. For much of that time I was driven to do something that I did not know specifically what it was. Searching and hunting for something to satisfy an unknown. When I originally saw what it was that I could do, it was May 1992. In a flash the idea came to me and I was driven to make it real. 

For many of those days it seemed to me like I was locked in a darken room where I needed to find the exit. Being constantly reminded of the obstacles, dangers and pressures which frustrated the journey. I needed to find the way for those that would follow. Rising above the day to day grind never made any sense. The counter intuitive and seemingly destructive decisions to pursue this project alienated and confused most. But I always knew whatever the result I was reaching for, I could achieve that vision of so many years before. 

Today I look back on these times as the best part of my life. The struggle is the prize and this journey has produced a new "way" for the oil and gas industry. I am pleased with the results of this effort and will continue to make the project real. Writing here about the compelling reasons why the industry should adopt the Draft Specification. Recruiting the people needed to take it to the next level. And joining those people who will solve the problems we face in meeting the demands for energy. 

For people who have similar feelings and opportunities. Those with the desire to do something that they know is above and beyond them. Preparation is the difference between success and failure. It is academic whether you will do it or not. You really have no choice. I think preparation needs two very important ingredients. A Master's level education will help in defining and building the many contradiction and conflicts that arise. Secondly a physical depth brought about by high levels of competition in sports. Your system will be taxed and the stress will kill you. I've suffered 4 bouts of Pneumonia in the past 6 years and I know that if I was not as fit as I once was when I went into this process, let's just say the stress is super human. But more importantly the physical competition shows you that there is nothing but your mind that limits your potential. 

I am honored to lead this project. I am rested and fully recovered and look forward to the next 17 years. When we look at what has been done and compare it to what needs to be done, little has been achieved. I am reminded of Ray Kurzweil's Law of Accelerating Returns about how things get done. Very slowly at first, and then they pick up their own momentum. According to Google, 861 people have looked at the Draft Specification. When we think that People, Ideas & Objects is about obscure oil and gas ERP systems, I think this number shows these ideas have a community of like minded people. Please join us here. 

Technorati Tags: People's Sun Specification

"Industry in a box."

It's 1992 all over again. I find myself in the position where I have a good handle on the needs and understanding of the energy industry. And I stumble into the previously unfavorable position where Oracle Corp is making statements and announcing product architectures that resonate with me. And that is the bad part. Not that Oracle technology is not the best, it is, and I find they are sailing closest to the wind in terms of the market offerings and future architectures. 

The problem for me is that Oracle and I have had business dealings before. In early 1997 Oracle executed a coup against its global Independent Service Providers that was of questionable strategic and tactical value. It is doubtful in my mind that Oracle has changed its way's. With their pending acquisition of Sun Microsystems they seem to be an imposing figure on our horizon. We need to decide how to capture the best value for our clients, the oil and gas producers.

The comment "Industry in a Box" is attributed to Larry Ellison who is the founder, Chairman and majority owner of Oracle. The comment was made in a Forbes article "Questioning Oracle's Cloud" where it is asked if Oracle's commitment to cloud computing is consistent with its current application offerings. 

Irrespective of Oracle's application offerings, People, Ideas & Objects Draft Specification details the needs of an innovative oil and gas producer. None of the current Oracle application offerings are needed to augment the software development capability that People, Ideas & Objects offers the oil and gas producer. Leading one to realize that Oracle is as much of a direct competitor as it is a technology provider. I think it was this same conflict that lead Oracle to make the decision to become an application provider at the expense of its Independent Software Vendors in 1997. 

The point of the article is Ellison's comment. It accurately captures the value proposition that People, Ideas & Objects offers the oil and gas producer. A value proposition based on the understanding that the innovative producer will have it's asset base, geological and engineering capabilities as its primary competitive advantage. Owning and operating computer hardware and software that provides the back office functions does not provide any competitive value. 

Go through an energy companies career listings and see the detailed description of an IT job they are looking to fill. Painful. The "Industry in a box" for oil and gas is consistent with the competitive advantages and value proposition noted here. A centralized, secure, virtual capability providing the producer with the most profitable means of oil and gas operations. Please join us here.

Technorati Tags: People's Sun Capabilities Strategy Leadership

That's a five minute misconduct.

Using a hockey analogy to reflect the opposing team is indulging in inappropriate or unfair play. It's also an analogy that will be intimately understood by Sun Microsystems Chairman Scott McNeally. I'm speaking of the actions of IBM in this proposed acquisition of Sun.

Lets go back to the Microsofts offer to purchase Yahoo. I thought Microsoft never wanted to purchase Yahoo, but they certainly were not happy with having to deal with both Google and Yahoo in the critical and valuable search business. Microsoft's acquisition of Yahoo has similar anti-trust issues to what IBM would be presented with in purchasing Sun. In fact it is the management of Sun that are contending that IBM stick to the acquisition in a potentially difficult anti-trust review. This may be a key point that helps Sun in the very near future and adds fuel to my hypothesis of IBM's dirty tricks. 

If Microsoft could have eliminated Yahoo from the marketplace without spending any money, would that not be a worthwhile action to take? For IBM to walk away from Sun after reducing the offer and peaking at what Sun has under the covers, IBM quickly learned more then they otherwise would have in normal operations. Key contracts, technologies, strategies and tactics of Sun were possibly made available as a result of the offer. Walking away after this peek, after they have the goods, after they make a revised less valuable offer shows that Sun may have some big nasty skeletons in its closet. It also does not speak well of Sun's management in deferring the opportunity to fulfill their shareholders potential on a short term basis. Which introduces a conflict and concern that otherwise is unnecessary and is certainly destructive. This is why IBM needs to be assessed this penalty.

Sun is having a difficult time. They have technologies that few fully understand or appreciate. In a world where value is attributed to those with coherent sound bites, Sun looses a lot of people beyond Java. Sun also has a number of technologies that are unique and far more valuable then the sum of their parts. And that is what IBM is after. Like Microsoft wanting Yahoo's market share for search, IBM wants desperately needs Sun's technologies. 

After the introduction of the personal computer, IBM blew it, big blue time. Under Lou Gerstner, austere management and a lot of luck the firm was able to recover. But what is it that they own now? Services in the form of corporate services to companies. Few if any actual technologies, certainly not a coherent story that can be told. I ask what are the benefits of services to companies? If I buy some IBM services, how do I know that you have provided that excellent quality of services that you claim? And if they are of such high regard, why am I being asked to sign another contract? Selling services without any products is not a long term viable strategy to making money, in my opinion. 

So IBM has now put Sun into play. What ever damage that is done to Sun is of net benefit to IBM. I'm not a fan of this tactic, and I find it oddly coincidental that it's only played out by those with anti-trust difficulties. We'll see how this one plays out, but IBM should be penalized not only five minutes, but a game misconduct and a 10 game suspension. 

Technorati Tags: People's Sun Strategy

IBM's advertisements

Many of the newspapers have been sporting a series of ads from IBM. The first of these is "A mandate for change is a mandate for smart." You know that a trend is well ingrained when the large suppliers are on board. With their recent announcement to purchase Sun Microsystems and being on the same song page that we are, there may be hope for their future.

They not only are on the same page, but they also get it, comments like this are the appropriate mindset for the economic conditions and times that we find ourselves. 

Right now - today - leaders of businesses and governments everywhere have a unique opportunity to transform the way the world works. 

The means that IBM suggests this is possible is;

First, the world is becoming instrumented. Imagine, if you can, almost a billion transistors for every human being. Sensors are being embedded everywhere: in cars, appliances, cameras, roads, pipelines... even in medicine and livestock.

Limiting the People, Ideas & Objects application to a technical perspective we see IBM's comments are consistent with our technical vision . 

Second the world is becoming interconnected. Like people, systems and objects can now "speak" to each other, producing oceans of data.

A further extension of our technical vision in which we note the crush of data will begin with the introduction of IPv6. I also like the comment about people, systems and objects and the similarity to our People, Ideas & Objects name. 

Third, all of those instrumented and interconnected things are becoming intelligent. They are being linked to powerful new back-end systems that can process all that data, and to advanced analytics capable of turning it into real insight, in real time. 

At times I find it as difficult to figure out if IBM is selling something or talking about something in the future. I think I should cordially welcome them to the vapor-ware market. There comment that they want you to join them in building a smarter planet. Welcome to the party IBM, pull up a chair and start pulling some weight if your serious. 

Technorati Tags: People's Vision Sun Trends

Sun's in the news.

We see a bid being made on Sun Microsystems by IBM. Sun is our key vendor, and as a software developer they are the key to our technology stack. Java, JavaFX, GlassFish, Solaris, NetBeans, MySQL, and SPARC to name just a few of the more important ones. In addition to the products, there are the research and development capabilities which brought about these technologies. Other then Apple, no other firm, in my opinion, has the diversity and completeness of product and service offering. I would include IBM in that comparison.

That is why I think the acquisition by IBM is smart. They need these technologies. And to a large extent I think this will be a positive for the assets formerly known as Sun. There is a concern that Sun has been living on its cash flow since the dot com meltdown. Unable to turn their research and development into a monetary gain or business that is self sustaining. I think the main owners of the company, who are also the founders in the early 1980's, might agree with me that the technologies are better in IBM's hands. 

IBM has many of the same desires as the management / ownership as Sun. Cloud computing is the future. Java is a key enabler. And open source software are the only way. These assets would be in the hands of the next best custodian in IBM. 

Apparently the company was shopped around to both Dell and HP. Neither of those firms were interested. I find that hard to believe. What I don't want to see is Sun assets being taken by Oracle specifically. Watch them step in with a bid to spoil IBM's party and raise the takeover price. Microsoft, probably couldn't take Sun due to legal reasons. or someone else who wouldn't have the resources or where-with-all to optimize the technologies.

So this is a thumbs up for the potential merger of IBM and Sun. Smart move by IBM, and maybe the best way to realize the technologies potential developed in Sun. People, Ideas & Objects started off working with IBM and moved to Sun when IBM were getting out of the oil and gas industry. The one gain we would have if this merger went through, is access to IBM's DB2 database and maybe a renewed commitment to the energy industry. 

Technorati Tags: People's Sun Business Technology Open-Source

Open Source as Innovation Platform

It would be no surprise that I subscribe to Jonathon Schwartz' web log. The CEO blogger from Sun Microsystems. Jonathon is way out there in terms of his devotion to open source. And is the reason that Sun has opened most of their software openings. He has undertaken to write a series of blog posts on the methods that Sun is using to commercialize their open source offerings and how it sells hardware. Moving to the video format might not really work for him, you can view the three posts here, here and here, I would recommend that you subscibe to his blog here.

I found something that was said, or maybe it was the way it was said that made me realize another of the many benefits of open source solutions. Picking winners. I have been in this "business" of technology in one form or another since 1992. I refer to those days as the wild wild west. Nothing but gunslingers, bandits and posies. If you thought you missed something, believe me you didn't. 

The idea was you needed to get a big vendor interested in your ideas, code or customers. This was prostitution at the highest level of business. Those that where anointed by the vendors from California, would rightly strut themselves a bit faster then other lesser software providers / hardware vendors. These were the days and if you were lucky the relationship would last upwards of a few years before your customers and vendors quietly found themselves and their allegedly better business arrangements. 

Used and abused you leave the software industry and hope that one day it will mature into a real business. In my case I saw that Intellectual Property could provide a reasonable safe guard to the antics of the western minded, but when combined with open source, it was a good time to get back into the software business. Now how does that relate to the Sun CEO weblog video series. 

There is no picking of winners and losers. There is just doing the business of doing the business. If you have a good idea, you win. If you have a bad idea, hopefully you'll keep trying until you get it right. No more of this so and so has supported what's-his-name. Just do your job the best that you can and let the upside depend on your skills to add value. You don't need to get into the rut of trying to impress and promote someone into a business they should have been in if they hadn't been sleeping. All this as an added feature of open source software.

If you were looking for a place where the open source world would help in the oil and gas industry, look no further. Please join me here. 

Technorati Tags: People's Sun Open-Source Development Value-Proposition

Security in the Draft Specification

We are beginning to build some traffic in the Draft Specifications knol. Which is the Google service I am using for the public access to the systems definition. The first module that people run into is the Security & Access Control Module. This is for a number of reasons. 

Security & Access Control will be the first module that is built in the People, Ideas & Objects. It is necessary to ensure that the users, producers and developers in the system have a high level access and ensure the security of the interactions and transactions that are undertaken in a secure manner. 

Having this as the first module also helps us test the module in a live setting. Eating our own dog food as the developers like to say. The Security & Access Control Module is made up of the various Sun Microsystem products known as Identity Management. The strategy in this development is to have Sun, who I think have a significant vested interest in making their products work, implement and manage this modules development and support. 

In an nutshell that is the critical aspect of the beginning of this module. When operational we can then begin the difficult task of implementing the Military Command and Control Metaphor into the generic Sun Microsystem Identity Management Tools. (Also part of the Security & Access Control Module.)

The point of this entry is to suggest that the reason the boring and painful discussion at the beginning of the Draft Specification is there for a reason. The importance of the module in terms of its timing and security needs. Those that are interested in many of the oil and gas attributes should just skip the Security & Access Control Module and start with the Partnership Accounting Module . 

Technorati Tags: People's Specification Sun Security

Why at $3.27 it's a buy.

Sun Microsystem stock at today's prices represents the easiest and most cost effective manner in which to make money. At $2.42 billion (Friday November market cap, the company is trading below its cash value. And this post is to show how far they are ahead in providing the types of services applications such as People, Ideas & Objects need.

I have specified an architecture of Sun technologies for the People, Ideas & Objects applications to be run in. (See the July 2008 post here.) Sun has published a white paper that captures the extensibility and flexibility of their products in terms of how the can be configured. For those that are technically challenged I would skip this post now.

Downloading the .pdf is available to those with a Sun account. The configuration discussion talks about the performance and configuration advantages available for the deployment of GlassFish on Solaris. Making the post I made in July 2008 look like the optimal solution that Sun has to offer. This is why Sun will make money in the software future. No other vendor can provide our application with the support and low licence costs. Running GlassFish in some of the configurations using IBM and Oracle would be prohibitively expensive. Not so with Sun.

So their choice was to ensure the developer and user of their software services were able to operate their technologies in the optimal configuration without first having to bankrupt them. Taking the hit in current revenues for the long term. In today's myopic market of this quarter Sun doesn't fit in. In this go forward environment Sun and Apple are the only two companies that I can see making money in the future on technology.

The only change that I would make to the blog post in July is the need to build our own data centres. Using network.com provides us with the resources of a service based offering of processors and support. Processing is too critical a resource not to be under our influence and control. With the majority of the support for our data centers remaining with Sun.

Technorati Tags: People's Sun Software Specification

Recommitting to Sun Microsystems.

Sun put out their third quarter earnings today. Those that have seen them probably share a concern that I have about the stability and durability of the company and its products. Clearly we are a Sun customer. Every product we are proposing to be used in the People, Ideas & Objects application modules is a Sun product first and foremost. I feel that they have "some skin in the game" and are therefore easily motivated to make their technology work, and they have.

We can't afford any of the finger pointing between vendors that we have seen in the past systems. That game is unacceptable to the users, developers, account managers, project managers and investors in the oil and gas industry. This expectation is also in line with the companies genetic makeup. They are an engineering firm, first and foremost with most of the technologies being far superior to the competitions. The only complaint I have of Sun is that I wish they would hire some people to take out the garbage. And what I mean by that is they have a tendency to solve the big problems and unfortunately the other less problematic tasks get overlooked. This is not a significant problem but one that shows up in their marketing at times.

Speaking of marketing, the open source initiatives the company has implemented are the reason that the risks in committing to them are minor. We would still be able to use and improve Java for our needs even if the companies receivers were hounding the researchers. Try that with an IBM or HP.

Jonathon Schwartz the President and CEO is an avid blogger and has been quoted in innovation in oil and gas many times. His blog post today provides a wealth of information that is more informal then the statutory reporting, and hence useful. Comments like these from Jonathon are the ones that make me feel that sticking with them carries little to no risk.

What went well within the quarter?

The biggest highlights were the performance of our Solaris based, chip multi-threading (CMT) systems, which again grew a whopping 80%, year over year. These systems leverage awareness of Solaris/Opensolaris and our outstanding ISV portfolio, and are driven by extreme energy
efficiency and virtualization - attributes we just multiplied with the launch of our newest CMT system: the T5440.

Simultaneously, our Open Storage systems also delivered a great quarter, up 150+% year over year. These systems, known by many as Thumpers, are amplified by the awareness of our open source ZFS file system, a technology at the heart of Sun's storage business. You'll be hearing more about Open Storage at a launch event we're holding on November 10th. If you're technical, and you want some hints about what we're about to unveil, click here.

And finally, most of our software business grew - including MySQL, Java, alongside Solaris, management and our virtualization products. As we've been saying, open source is a great distribution model - and it feeds a great revenue model.

Now, how is Software growing if you give everything away?

We make our software freely available to enable its distribution to the farthest reaches of the market - which we then monetize with commercial subscriptions and services, alongside optimized hardware systems (like Open Storage, above). We continue to reach customers that have already settled on our software - the process of selling to them is simplified by the fact they're already using our core products. And unlike most university students (who typically have more time than money), our paying customers view downtime or administrative complexity as more expensive than a software subscription (that is, they have more money
than time).

Thus, customers will pay, and continue to pay for access to enterprise grade features, along with mission critical support and maintenance - the Software business is both a license, subscription and services business.

To understand the total size and value of Software at Sun, you need to look at billings alongside our multi billion dollar support streams - remembering that a lot of our software is sold as a subscription service (remember, it's open source). In addition, you have to recognize that how much a "Systems Service" support contract is attributable to software is entirely subjective (we don't price them separately to customers). It's like asking how much revenue a mobile phone manufacturer should attribute to their operating system - you're not charged separately at the point of sale.

Wait, you make money off Java?

Yes, it's among the most profitable technology products at Sun - and improving. Java's one of the most popularly distributed pieces of Software on the internet, we distribute over a million Java run times a day to users across every OS and geography on PC's. That helps us reach a very broad community of users and, more importantly, developers. We have some exciting news coming up around these distribution volumes - and their value to us, and others.

Noting the importance of the customer in their product offerings...

What is Sun focusing on?

Strategically, we continue to focus on two core areas - creating the world's largest, and fastest growing developer communities - for whom we build the products, services and technologies on which they'll build their products and services. With brands like MySQL, Java and OpenSolaris - we measure and drive their adoption very aggressively.

And secondly, we deliver compelling commercial offers to those deploying applications - across a diversity of industries - through commercial subscription, services and optimized system products. That is, we sell data-center systems, software and services.

We're focused on today's customers with our current products and services, and tomorrow's customers with our investments in freely distributed software.

Operationally, we're focused on execution - in the field, in the labs, and on behalf of our shareholders. Innovation loves a crisis, even when the stock markets don't - and Sun's positioned very well to supply the platforms on which the next generation of clouds will be
built.

When I look at the firms offerings and see the stock's price, a mere $4.0 billion market cap, I shake my head. I think Sun has put themselves out in front of the competition. And I think that the firm is dedicated to doing the right things right, which makes them particularly difficult to understand. Open source and proprietary systems are the tools of building a strong firm for the long run. The problem for people investing in the firm is that the story doesn't necessarily fit into a $4.0 billion package. Given time the firm will be able to better articulate their story. This will only happen after the general public can better understand the difficult concepts that the firm operates with.

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Access Management for Web Applications

A series of blogs has been put up by Maria Sum at Sun Microsystems. The seven part series discusses the Sun products for security and access control. These are the products that have been selected in the Draft Specification for the Security & Access Control  module.


In the Draft Specification, the Security & Access Control module is also the first module to be built. Using Sun Identity, Federated and Access Management frameworks. How this is implemented in the People, Ideas & Objects application modules is that we will be building the application module almost immediately. It will then be used by the community to test and develop the module to the needs of the community. Making the module so that it is Single Sign On (SSO) and that everyone in the community has a hands on understanding and use of the module right from the start.

This is certainly a different way of developing the application, usually the Security & Access Control are the last things that are cobbled together as an after thought. Sun has something to say about that and the use of their product frameworks.  

Typically, the number-one problem in developing Web applications is that identity is often an afterthought," Jamie observes. "Developers tend to focus on the logic, UI, and other aspects until it dawns on them, toward the end of the cycle, that they must secure the applications for, say, user login's and protect the data. Then come the important questions of what tools to use for verifying and authorizing access, what maintenance tasks are involved, whether to adopt federated identity—all afterthoughts at the eleventh hour.

The security of the information held within the People, Ideas & Objects application modules is of a mission critical, highly sensitive and confidential basis. Add to the fact that we are interacting between the community, the producers and their partners and all members of the service industry the security of the system becomes the number one priority. This also brings up the nature of the code that is compiled into the module. This needs to be open and reviewable by those that use the code. It is not enough to say "trust me", people, producers and suppliers have to be able to independently verify that the security level is achieved through their own review. And in People, Ideas & Objects the source code is available to the community and producers for just this purpose.

As with most of Sun's products this independent review of the source code is available to their products. Sun is strongly committed to Open Source Software and therefore their code is openly reviewable as well as that of the People, Ideas & Objects application modules. These products include the following four components.

• Sun Java System Access Manager
• Sun Java System Federation Manager
• Sun Java System Directory Server
• Sun Java System Identity Manager

By implementing the application early, we are able to use the SSO as the method that our community accesses "Google Apps for People, Ideas & Objects Domain" and "SalesForce.com". Permitting our Users to sign on once and have access to all of our systems with one very secure sign in page. Early use will educate our users on its value and features and debug our implementation. Ideally we will need to have the authentication, verification and audit procedures and policies in place before the system is provided to our customers. A system that is used by all members of the community first, and then as production code for our producer clients.

I want to stress a major point of how this application, as defined, is implemented in the greater scheme. If producers are not satisfied with the level of security offered, they are able to deal with the Users and Developers directly to get the solution they want. Try that with either Oracle or SAP. It is reasonable therefore we will have the most secure system possible operating in the ERP market space. And yet, by using Sun's products in this fashion we inherit the following.

Again, Jamie emphasizes, The goal is to free up developers to do their primary jobs instead of fiddling with security.

and

Jamie strongly advocates access management being part of the application design. Applications that work centrally with access management are the answer, he says; otherwise, "you end up creating a load of mundane and unnecessary work for professional-service engineers and system integrators." Typically, as in health-care applications, you "retrofit or use a wedge to incorporate SSO into applications."

This is the model that Sun uses to provide the product. What Sun's Chief Open Source Officer calls the try-prototype-buy support model. Making the extensive costs of developing a high level system such as this much more affordable for development. Interestingly Sun states this in two different phases of a development projects life cycle. When you have time but no money, free is great, and when you have more money then time, the Sun services are there to provide the support.

In Part 5 of the series Sun engineers talk about the "build" model of how the applications go from Open Source to commercial release. The feature differences between the different builds and the expectations from each product. They also state that the application when used in an environment such as People, Ideas & Objects, should have the most recent version of the Sun products.

Lastly I don't expect this preliminary operating feature consider the Military Command & Control Metaphor, or digital signing of documents like agreements and A.F.E.'s in this first build of the module. 

I will be adding this information to the Draft Specifications for the Security & Access Control module in the wiki. To begin this development we need to have our targeted audiences, the oil and gas investor that is disgruntled by the bureaucracy, and governments that need to resurrect the economy, provide the financial resources. If you know of someone that meets that requirement, please send them the URL to this website and encourage them to contribute, and join me here.

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Filthy Rich Clients

Sun Microsystems have released the "Preview SDK of JavaFX". This is Sun's response to the various development frameworks involved in web based user interfaces. Microsoft's Silverlight, Adobe Flash, and other rich media application frameworks. These frameworks are able to provide what is expected by users when they demand Rich Internet Applications. The best video on the site is SunEVP Rich Green demoing many of the capabilities of this addition to the Java language. (No Link)

JavaFX provides audio, video, 2D and 3D rendering on the Java Virtual Machine (JVM). JavaFX provides developers, designers and users with the ability to have the most visually rich interfaces to their applications. In my opinion this is one of the most important developments to the Java language. That is for a variety of reasons but for users of oil and gas ERP styled systems such as People, Ideas & Objects, rich media is critically important.

Just as no one would provide a green screen textual interface to a user today. The time has come for users to demand much more from their systems interface. More information about the actions that are happening of the users interest. What do I mean? Providing subtle hints in audio, visual and textual clues that certain actions are starting, running or completing. Maybe a user is in the Analytic & Statistics Module and wants to know when a complex algorithm is finished. The information is of critical importance to some urgent work been done by the user for an oil and gas producer. But the user also has over 50 other tasks that are overdue for other producers. The system should provide a subtle, but definitive, indication of when the users attention is required over the noise of the other 50 tasks.

Defining the need for this type of interface in the People, Ideas & Objects application modules is difficult to articulate. What I expect to see through the development of these systems is an iterative increase in the productivity of the oil and gas user. Quantum increases over the performance of today. If man can develop their mechanical leverage of one barrel of oil to offset the labor equivalent of 18,000 man hours. We should be able to achieve similar leverage metrics from an intellectual point of view. As much as computers have enabled our lives and increased the productivity of workers, I am certain that I would have concurrence that we have not attained anywhere close to the 18,000 fold increase in leverage that we should expect from computers.

JavaFX is an important component in implementing the systems interface to the level of these expectations.

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But can this project scale?

Many people look at a start-up such as this project and say, it'll never work, they can't scale. I look at the existing infrastructure of SAP and Oracle and say, it'll never work, too much code and too many customers. How's that for different points of view.

The constraints of organizations are quickly becoming the impediment to growth. That is by removing the constraints, growth will accelerate. Look at what has happened in the technology marketplace in the last ten years. Apple reacquainted itself with Steve Jobs and restarted the organization essentially from scratch. New designs, new processors, new operating system with 5 major upgrades, invented the iPod, iPhone and who knows what else exists in the man's mind. It's now 3 times the size of Dell.

Google has started as two PhD students with some fancy search algorithms. Ten years later they have built one of the most prolific cloud based product producers. And Microsoft continues to spawn vaporware in every product category as a means to sew Fear, Uncertainty and Doubt (FUD). The performance of the start-ups in the last ten years vs. the industry behemoths has created more value then the behemoths have lost.

Sun Microsystems have two projects Project Hydrazine and Project Caroline. There is a very informative (technical) podcast that you can listen to on Project Hydrazine here. These two projects provide People, Ideas & Objects with the ability to scale better then SAP and Oracle.

Lets look at the Draft Specification - Security & Access Control Module of the People, Ideas & Objects application. This module uses the Federated Identity products of Sun Microsystems. (I recommend you watch the four minute video with the perspective of a JOC in the forefront of your mind.) I take these tried and true applications and implement them in what I believe to be the greatest level of security and user friendliness. I do this development on Project Hydrazine and then deploy it their as well. Suddenly the users of this application have a state of the art Security & Access Control module capability. I provide the major accounting firms with the necessary access for compliance and boom, the job is done.

Well maybe not that easy, but far easier then the two ERP vendors I mentioned earlier. They have a lot invested in their code. They can't, and won't, throw that code where it belongs, even it is not up to the quality necessary for compliance. The reason they don't want to change is that it will take them the better part of this century to change the user base over to the better product. Constraints of code and customers for a software firm are the impediments of growth. I'm certainly pleased that I have neither code or customers at this point in time.

And that is the point. When I do commit to the code, it will have to be in such a fashion that I am not undertaking a huge infrastructure that needs to be built to support it. I hire Sun through Project Hydrazine to deploy the application and run it on their servers. I think they know a few things about that, and they sure are motivated to be the best.

So can this project scale? You tell me. And don't tell anyone but I feel like I'm cheating.

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The End of IT As We Know it

Click on the title of this entry to view an interesting Sun Microsystems Net Talk that was produced in October 2007. It has some interesting statistics and opinions on where the Information Technologies (IT) are headed.

For instance, the number of people that Sun employs is 34,500 and over 25,000 of those are not assigned a permanent office or working environment. Many work from home or work occasionally in meeting rooms. This is how I see most industries operating and particularly the oil and gas industry. The mandatory attendance in your office from 8:00 to 5:00 will change to a more flexible schedule. The oil and gas industry operates 24 hours a day and this will be reflected in people's schedules. Another reason will be the time zone changes in the area of operations of the producer. Fuel costs on the daily commute may also become a primary reason for this change.

Java has 6 million developers. One for every thousand people in the world. Java has been the number one programming language for a number of years so this is not surprising. The ability to source the numbers of developers that are necessary for this project should, as a result, be easily accommodated.

Other comments in the presentation were around the concept of the "Enterprise computing in the open network." The costs associated for each company to build the appropriate data-center for their needs is quickly outstripping what is reasonable from a cost point of view. The reason is the demand for processing during peak loads is causing the companies to source additional processing capabilities. This is the beginning of a trend that is discussed in this video. A trend that is the reasoning behind Sun making the claim that a firm will have 100% of its processing, applications and networks provided by service providers. This is also the basic assumption in the People, Ideas & Objects application.

In oil and gas having the hardware, applications and network in-house does not provide any competitive advantage. The innovative producer has the land base and physical assets augmented by their understanding and application of earth sciences and engineering capabilities. IT is a cost that is best handled on a service basis. And as the Net Talk points out, services hosted by providers on the Internet. The presenter, Bob Worrall, Sun's CIO points out that this trend will be the end of the traditional Intranet and Data-center. The role of IT within the firm will involve aggregating the relevant services and distributing them. IT will be involved in management of the service providers.

An area that Sun is addressing at this point in time is the area of access control and security. You can watch a good summary provided by Craig MacDonald. Sun Federated Identity is a component of the first module in the People, Ideas & Objects, the Draft Security & Access Control Module. A module in which we are layering the Military Command & Control Metaphor over the Joint Operating Committee participants and those that work for them. This module provides access to the IT resources necessary for People to do their jobs. Providing the producer with access and assurance that data and information are provided to only users that are authorized. This area is a key differentiating point of all other systems providers and the key reason that I have used Sun Products exclusively in the Security & Access Control Module.

Sun suggests that billing is the issue or impediment to full deployment of this changed IT environment. It is difficult to quantify and value every transaction in a service level offering. What I think is needed is an overall service that is billed, based on the size of the producer, that covers the associated costs that are incurred by People, Ideas & Objects in providing that service. This will have to be something that is discussed when we move toward the deployment of this application.

On a related theme, Cisco has a number of videos on YouTube about their new "Tele-Presence" product. Although expensive in comparison to video chat, I think Cisco has identified a market here. When you have large numbers of people needing to sit down in a meeting on a regular basis, the services of Tele -Presence would help in facilitating that communication. Although costly from the point of view of an unproven technology, I think it may pay for itself in reducing flight and accommodation costs, and increase productivity through better communications. Have a look.

Cisco Tele-Presence

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Interesting research at Intel

We are all heading towards cloud based computing. Billions are being invested in centralized processing and storage facilities to offer processing and storage on demand. For Google to run their services requires them to own the most processing and storage power in the world. And has anyone stood up and asked if this an effective way to conduct computer based functions? Well Intel has and the results are surprising.

In a document released yesterday, Intel documents the research they did on the processing and network bandwidth demands of the two prominent methods of computing. Comparing "Virtual Hosted Desktop" with "Embedded Application" which relies on remote processing on a virtual server, to "Stream OS" with "Stream Application" which relies on streaming of operating system software to hardware client platforms.

The results show that streaming the operating system and application to the client platform for user based actions was, from a server perspective, far more efficient. 20 clients accessing the server for these services used only 1% of the servers performance. Whereas the "Virtual Hosted Desktop" solution took up to 45% of the server processing requirements for the same 20 clients. Intel even crippled the script of the test for the Virtual Hosted Desktops to remove the high processing required for graphics. I assume that the network bandwidth of data would be small and therefore incidental to the performance of either method.

Sun Microsystems has moved in this direction with their SPARC based offerings, Solaris and Java products. Using the "Stream OS and Application" method provides us with a reduction in processing requirements, and, an increase in performance on the client desktop. The only caveat that Intel mentioned was the initialization of operating systems on the client side could cause momentary increases in processing and network demands. Suggesting that "if" all 20 clients logged on at the same time, the systems may have performance issues.

This "Streaming" architecture provides the People, Ideas & Objects application with the performance and reliability that is necessary for the users. This architecture also allows us to control all the required software necessary for the user to do their jobs. Such that if there were a bug in the systems we would know about it, and who to fix it.

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Uh, actually it's three applications.

I was running through the options in how the People, Ideas & Objects application modules can be implemented with Solaris 10 and Java. What has quickly become obvious is that the application that we are building is actually three different applications. Categorized on the basis of either a Producer, a Person or a Joint Operating Committee (JOC). Each category having access to the eleven modules of the People, Ideas & Objects through different interfaces.

The Solaris operating system provides containerized virtual instances of the operating system. For all intents and purposes these virtual instances of Solaris are as separate and distinct to the two operating systems running applications in ExxonMobil and ChevronTexaco. A virtual instance of Solaris is created for each person, JOC and producer company. This provides the separation and access of resources to only those who are authorized. Interactions between instances is through the Java enabled transaction management capabilities.

This provides enhanced security flexibility to each person, JOC or producer company. With each virtual instance of Solaris accessible by the owner they can grant access privileges based on Solaris' 50 user definable roles. Root access is available to be granted to a variety of people who need that access, yet it only provides root access to those areas. Audit, compliance and others will be able to access what they need to do their jobs without the risk of granting global root access to people who need it.

Each of these virtual instance will provide a server side MySQL database that manges the data model for their type of user, a person, JOC or producer. I believe this helps in avoiding much of the complexity and confusion that "might" occur if we ran this application as one monolithic instance. One might assume that the hardware requirements would explode in terms of cost and complexity, and this is where Sun has obviously spent some engineering time. And why this will be run on Sun's network.com or cloud computing platform. Each processor could handle 16 virtual instances, and, are able to scale dynamically to use the number of processors any application may demand. Making the decision to use Sun's cloud computing the equivalent of a "doh!" as Homer Simpson would say.

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I swear, a day has 36 hours.

Going over the budget numbers for this software development project. In doing so I want to bring back a term that was used in the pre-2000 era technology. That is "burn-rate". Not something that you necessarily want to brag about but this project may have one of the largest "burn-rates" in technology history.

First off I want to note the costs of development in the May 2004 proposal was detailed at $70 - 85 million. Two changes have made these previous development numbers pale in comparison to what they will be in the future. A third change works to expand the number of hours in a day, which leads to even higher annual costs.

As I have mentioned on many occasions, the Users need to be involved in this software development. I have argued that SAP knows nothing of drilling wells and NGL operations. And as a result SAP doesn't work for oil and gas. The need to have the Users involved in development from the start is necessary to get this system right. There is no other way to deal with the issues of determining who, what, where, when, why and how the software has to work then asking the people who hold this tacit knowledge collectively.

OK so the users need to be compensated. Asking them to volunteer their time is an excessive request that extends well beyond the reasonable or even surreal. I have also noted here before that the oil and gas industry is headed towards an annual turnover of $4.5 trillion. I'll bet even Dr. Evil would choke on those numbers. The cost increase that I am talking about here is that the user-to-developer ratio will range from a low of five-to-one and an upper factor of ten-to-one. That's up-to ten User hours for each developer hour.

The second aspect of the original proposal was that it was just for Canadian operations. Back then my thinking was limited to that market, and rather quickly realized that the global audience needed to be targeted. Having only one geographic location being serviced by this application is a reduction in the real value of using the Joint Operating Committee. Besides the supply of energy is a global problem. Therefore, the royalty, tax and compliance requirements of the total population of global producers needs to be considered on top of just the Canadian operational environment.

Lastly I want to add fuel to the fire of my adversaries by noting that the compression of time is something that will be implemented in this application. Instead of budgeting for four years, I think it can be done in two and half years to initial commercial release. (Maybe even less!). We are approaching a systems use that may start the day in Russia and China, move to the Middle East, Europe and then the United States. Users from these regions will be able to collaborate in an asynchronous manner. Hence providing for potentially a "day" of user driven development that totals 36 hours.

To deal with this wealth of information we need the developers to be writing code at approximately the same pace. I have thought about this and have come up with a one-third, one-third, one-third solution. Each third of the time allocated to developers will be sectioned off in the following manner. Open-Source developers, Sun Microsystems and Indian based development houses.

Open-Source developers will be welcomed in this development and be able to add this project to their client list. These people are generally doing what they are doing because their recognized skill set is exceptional. The type of developers that are able to produce ten fold what other developers can do.

Sun Microsystems developers. And here we are accessing the Solaris, Java and MySQL developers. Sun has hired many of the best developers in the world. I also believe that this project will be the first test of Sun's integrated environment, and it is therefore incumbent upon them to prove to the world that it is a viable environment. Essentially setting the bar as high as has been attained in terms of technological risk and implementation.

Lastly I am a fan of the Indian based model of software development. That these are offered at a discount is only gravy for this projects budget. Although they may be fairly new to the overall development world (in terms of the fifty year history of computing) they have inherent advantages in that they speak on average 7 different languages and communication becomes their forte. After all Java is only another form of communication. Secondly they are able to fill in the gaps of time in our 36 hour clock. Lastly they will be a quick and efficient resource in terms of taking many of the boiler plate technological frameworks that exist today and implement them in our code. What I mean is the PPDM, (Petroleum Producer Data Model), XBRL, (Extensible Business Reporting Language) of the SEC, Alberta Crown Royalty frameworks etc. These have become the building block of many companies and we will be able to leverage heavily off this infrastructure.

That in a nutshell is how we will develop the eleven modules in the People, Ideas & Objects application. Anyone want to guess what the total cost will be? I think the annual costs are quoted in the B (Billion) range. This also does not impute the Users and Developers are chained to a desk for 8 hours a day. Some Users, and some developers may only contribute a total of eight hours to the project and some will find life-time employment with this project. Life time employment, as Google has shown, development never stops.

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Following up on Sun.

Yesterday's post commented briefly on Sun Microsystems software, hardware and service offering. Sun published their HPC (High Performance Computing) newsletter, and here are four excellent articles from that publication.

First is Sun co-founder Andy Bechtolshiem talking about the building of "commercial" grade systems for "cloud" computing. Andy makes the comment that he spends more of his time on physics these days. Bechtolshiem always provides fascinating talks.

Second is another pertinent article, "Big Data Changes the Rules," regarding this software development project. Recall the Technical Vision that is a key part of this application. How it predicts a data Tsunami will provide key competitive advantages to those in oil and gas that can manage and use this data. The article notes some of the details of how the unsuspecting oil and gas firm may have difficulty with these data volumes.

The third article is an interesting read on how Sun's network.com is being used in innovative ways.

Lastly a comparison of MySql database vs. Oracle. Our choice of database is to use MySQL since Sun purchased the company. This now provides us with a one system vendor solution for all our needs. SPARC chip-set, Solaris Operating Systems, Java and Databases are proprietary technologies of Sun. No more finger pointing as to who's fault it is.

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Why Sun Microsystems is our vendor.

This may be possibly one of the most important technology announcements ever made. (Click on the title of this entry for the article.) If it's not the biggest, I can assure you that it is the largest that I've seen and probably ever will. This announcement tells the current bunch running IT the party is over. Pack your bags your out the guard is changing.

Information Week reports Sun's CEO Jonathon Schwartz states Sun's vision and strategy are now focused on providing support to the start up software firm. In doing so Schwartz expressly calls his current key partner Oracle, the competition.

Schwartz said Sun is repositioning itself as a disruptive software supplier, using freely downloadable open source code to initiate relationships with developers in young Internet companies. With MySQL in its arsenal, Sun has become "an arms dealer" for the next generation of those companies, said Rich Green, the vendor's executive VP for software.

But Sun may find itself offending some communities even as it builds new ones. Oracle is an old partner that has sponsored Solaris sales to customers that want to run the Oracle database. By offering free or low-cost MySQL subscriptions, Sun is now a threat to Oracle's database cash cow. "MySQL will work fine alongside Oracle," Schwartz said in response to an InformationWeek question, "but I prefer to focus on acquiring new customers, not on the competition."

This hurts Oracle. Oracle could see the Open Source writing on the wall and launched a massive takeover of established software vendors. Sun has driven database sales for Oracle for many years. Oracle is now forced to hang its hat on the old generation technologies as the key to their sales growth.

I have documented the two constraints of a software vendor in this blog before. The constraints of code and customers motivate the "established" software vendor to sell the status quo. Change becomes unspeakable in terms of innovation or progress. Old generation software companies had to die in order for change to occur. This has been reflected in IBM's jettison of Qbyte a few years ago. So how does a software vendor compete in this new generation?

As you can imagine the business model has to change, or should I say has changed. Open Source software shows the way. The code base is never settled. It is in a constant state of development. Go to any open source project and you can select any version of the software that you like. The bleeding edge, the alpha, the beta and a few versions of the supported code base in "stable" condition. Innovation doesn't stop, how could the code? The customers demand that the software be reliable and operate as promised in their firm. Any variation needs to be addressed with very specific processes. And no two companies are ever the same. This is where the constant development model meets the reality of the installation and the software User becomes the key in the Open Source community.

To many people in the oil and gas industry, dealing with a start-up on such a large-scale project is not something they thought they would have to do. But how else can you approach such a difficult task as is faced by the energy industry as a whole. Can you continue to live with software that was conceived in Germany for manufacturers? If you believe you can then you know who to call.

Sun's Schwartz has legitimized People, Ideas & Objects as the key to the future generation of IT enabled oil and gas producers. And completely de-legitimized the non Open Source vendor. And in the process has told the Emperor he has no clothes. In my books that is a big announcement.

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