John talked about Microsoft’s mission, his perspectives on key industry trends and market opportunity; he touched on Cloud Computing and Virtualization and took some Q&A from the audience of Managed Service Provider executives.

One of his first proclamations - Microsoft has really embraced the heterogeneous environment. Really? How in the world is Microsoft going to help convince IT line managers, or mid level managers to believe this statement? I think they have a long way to go to achieve this vision with any credibility in the marketplace.  I do know that they are making small strides.

Microsoft has been widely credited with some very good blogs that are self critical and introspective. They have also been quite active in the standards boards within DMTF and many others such as Open WSMAN and CIMON (Open Pegasus). Microsoft in February published 30,000 pages detailed technical specifications – protocol documentation for Exchange, since that time they have published another 15,000 pages. They have had over 224,000 downloads since February 21, 2008. Thus they are trying to be more open by making some of these secret sauce protocol resources directly available on the web.

So for now, I will take a very cautious wait and see approach to this proclamation. Time will tell.

Trends

• Rapid growth continues
• Hosting Competition has a new face
  • Platform gorillas (amazooglesoft)
  • Ad supported Web 2.0 hosters (Google, Facebook,)
• Utility Cloud Computing models are expanding to non-traditional hosting companies
  • Wells Fargo vSafe - hard to believe that a big bank would start to offer a SaaS offering
  • New tools and markets digital ribbon, CohesiveIT

IDC Data shows that growth of SaaS ISV’s is the biggest layer of growth. The fastest growing services are complex, custom applications. IDC says this area will be bigger than the hosting area in the next 5 years. John said that Microsoft is spending a lot of time, money and energy on this right now.

John said:

“when Microsoft thinks about the building blocks that make-up the cloud, virtualization is a core piece of the puzzle. However you also need also identity services, Operating system with standard set of libraries to tap into… or remote storage that application developers will tap into.. Developers will consume these set of services, but you will also need a set of tools to manage your physical, virtual and geographically distributed datacenter infrastructure.” (that is where ScienceLogic comes in!!)

He went on to say,

“In some ways, virtualization enables decentralization – allows you to move from data centers, enables fast scaling out, business to move from on premise to the cloud and off again…. Automation is very important – this will help you scale your business – this is core to your future success.”

He talked about a new breed of knowledge worker: He called them Digital Natives (compared to grey haired guys like me who are left out of this category).

Definition of a Digital natives? A young adult who has grown up with cellphone, web based applications, Facebook account, as their primary mode of communications.

John commented that we are 5 years into a 10 year journey. Only 12% of all servers in the world are virtualized today… in the next 4 years it will double to 25%. This is the time to think through how this business will affect you.

‘Virtualization without good management is more dangerous than not using virtualization in the first place.” Thomas Bittman, Analyst Gartner

Patching and provisioning nightmare – no scalable administration – sprawl chaos.

John posed a question to the audience: How do you partner to provide the ISV support in application development with specific market needs… partner by keeping the hosting to SaaS solution providers up and running and provide the quality of service that their customers expect…. Complimentary services of storage and backup is a big win with a huge market-upside over the next 5 years..

John said that Microsoft continues to make  huge investments with Managed Service Providers.

• Investing in the windows hosting platform
• Hyper V and SQL2008 GoLive program - getting beta code out to service provides to find as many bugs as early as possible.
• Software + Services (S+S) incubation center program
• Partnering for cloud platform market offers
• Cloud platform guidance and best practices

During the Q&A, David Burns from Cincinnati Bell asked the very best question… “when are you going to make it easier for the Service Provider market to deal with the Microsoft Service Provider Licensing Agreement (SPLA) quarterly statistics pull and change the SPLA pricing to be more efficient and creative for the new Virtualization and Cloud offerings you have talked about?”

John’s response: “We hear your frustrations loud and clear and are working on some new ideas for the future version of SPLA.” My interpretation – “Dear Service Providers don’t expect anything new or easier to deal with in the next 6 months!”

His closing remarks: “Cloud is evolving = very early stages, lots of hype, but think of how this evolution will effect your business and how you can plug into it.”

I have to admit that I was already a fan of Collins’ quantitative style blended with clever insight, but this was the first time that I had seen him in person, and he was just spectacular. He has a vivid, animated way of telling a story, and had a great sense of humor. This combination of presentation skill was put to immediate use with his first statement drawing a hearty laugh from the audience full of entrepreneurs.

“How many of you in the room are constitutionally unemployable?”

Much of his remaining presentation provided interesting stories and insight from the research that he has done to understand the make-up of exceptional companies.

As Jim said, he has spent years studying the contrast between average companies and exceptional companies. They faced the same set of variables… similar economic conditions, similar competition for top human resources, and a similar set of huge unknowns.

What is the single biggest element of difference?

Not a function of the cards you are dealt, or circumstance… it is conscious choice and discipline.

Jim’s key principles & disciplines that have come from the studies we have worked on:

1. Building greatness is a cumulative never ending process! The idea that no matter how exceptional, you are always only relatively as good as to what you can do next.
2. Most overnight successes are 20 years in the making…. Wal-mart  took 13 years to get to 125 stores. Starbucks required 17 years to get to 38 stores.

“If you start to break Packard’s law, and there are very few laws of business, it is like breaking a law of physics for building great companies.” - David Packard (Co-founder of HP)

If you allow growth to exceed your ability to get enough of the right people to fill the key seats to execute on the growth brilliantly, you will fall as surely as a stone dropped from your hand. This is one of those timeless truths that extends beyond technology and economics.

The number one constraint on growth and sustained success…

An ability to get enough of the right people in the key seats to achieve that sustained growth.

The discipline that WHO comes before WHAT. Collins always kept coming back to the “who” thing over and over again. He said, “The more turbulent the world, (given the great current economic uncertainty of our financial system) the more important this issue is.”

A question from the audience came near the end of his session… How do you figure out who are the right people to put in key seats on the bus?

Collins responded with “Given that I stand here amidst a room full of unmotivated people… the right people are self motivated, self disciplined, self managed, The task is not to motivate unmotivated people, the task is not to have to manage people… self motivated, figured it out from there… self motivated people don’t need tons of management … when you have to start managing, you know that you have the wrong person at the task.”

Final thoughts:

Greatness is not a function of circumstance. Greatness is a function of conscious choice and discipline. It is not a matter of circumstance, it is one of choices.

I believe that every one of the Inc. 500 companies that I met at this conference achieved the list because they did not embrace the status quo. Incredible passion, an unwillingness to accept failure and an excessive and compulsive willingness to solve customer’s problems were key ingredients in the business building formula for the entrepreneurs that were at the conference.

• Moderator: Nick Hoover, Senior Editor, InformationWeek
• Speaker - Anne Berkowitch, Co-Founder & CEO, SelectMinds
• Speaker - J.B. Holston, CEO and President, NewsGator
• Speaker - Umberto Milletti, CEO, InsideView

Businesses can take advantage of social networks by finding innovative ways to reach out to people. Looking at who you know and how you know them can benefit you. Knowing a personal connection to someone that you are trying to contact (for sales) is helpful. The blurring between home, personal, and business life is making this information more available and better able to leverage. People are able to capture more valuable long term information from social networks.

A lot of social network applications can be taken from the talent management space. Deploying alumni networks as a talent source is also a great asset. Alumni represent a well-known and relevant population. This provides a great economic benefit from a social network.

If you are running a sales organization and looking at building a pipeline of leads, consider how these leads are relevant. The ability to get more leads is apparent in finding the right person, right connection, and right contact. Underlying everything are productivity and efficiency. How much time are sales reps spending researching and pursuing each opportunity? With information on social networks, the time can be greatly decreased. Knowledge sharing is something that can be actively measured.

The ROI varies with the business issue that’s trying to be addressed by a particular network. Recruiting for example has a very concrete, measurable ROI. Knowledge share gets a little more tricky. How do you measure how much is shared and the impact on business systems? Businesses need to determine what specific goal they are trying to address.

CFOs want to see ROI, not intuitive information. If you can demonstrate engagement and participation in these networks and knowledge sharing tools, more and more executives are getting comfortable seeing how it’s used at a qualitative and process level. It’s a very case by case basis.

One major crisis that we see in our customers is the competition between sales and marketing. Each wants to do their own thing, they go together like oil and water. However, the push of the economy is now forcing them work together. This is a great opportunity for IT to step in and help them collaborate and be more productive.

Other resistance from companies are how to manage what they are trying to accomplish while still giving employees free reign of sites like Facebook. What are the incentives for using these technologies? How does it fit into your company culture and productivity scale? You must bring meaning to the structure of engaging in social networks.

Social networks like LinkedIn and Facebook would not exist if people did not contribute information to them. However, if people don’t know that it is there, it does not exist. People need to see the value and get drawn in to engage. There are two ways that companies get into social networks. Tie it into the business process. The general idea of social networks are intuitive and easy to understand, which make it an easier case to present to chief executives. Make it clear - how do you go about it and what’s the value?

Social networks are intrinsically about extending the network, the more contacts you have, the more to choose from when researching a specific contact. It also has to be integrated into your dataworkflow. Companies are going to build a variety of networks inside and outside the enterprise. The big companies (SAP, IBM) are all rushing to offer collaborative and social network functionality. However, this is not entirely useful unless it’s integrated into the entire infrastructure.

Cablevision will ultimately spend about $300m in building a Wi-Fi network exclusively for its customers; 2.4m of these customers qualify to use the service at no cost. There's no pay as you go option, no monthly subscription; you're either a subscriber of theirs, or not. It's a fascinating strategy, because they're leveraging all these dollars as a tool to crack its competitors in the market. With increasing competition from telephone companies that are offering television service, cable companies need to compete on voice, data, and video, as well as well as on mobile offerings. When the network is built, Cablevision can conceivably offer Wi-Fi telephony service, too.

I'm dying to know what the reduced churn rate and increase in subscriptions will be in six months. Given that hotspot access costs $10 to $30 per month depending on the network, Cablevision is delivering something of value. It's great honey for new subscribers and glue to keep current subscribers.

The company is claiming that with this latest activation, they have the largest Wi-Fi network for consumers in the U.S. They're likely correct. The only other public access network of scale that's being used by large numbers is in Minneapolis, and based on what I know about both networks, Cablevision probably deserves bragging rights. The network in Taipei, Taiwan, is likely still larger, but I haven't heard any usage number in nearly two years; at that point, subscription rates were 10 percent of what had been projected.

He’s a bit indignant that so much energy goes to sporting events like the Olympics rather than more important news that isn’t getting reported around the world.

This is in a year when tons of journalists are getting laid off.

This is in a year when there are tons of stories around the world that aren’t getting reported on.

Could we take half of those photographers and send them to Russia, for instance

Reminds me of a feeling I had back in college as an undergrad student studying social sciences and humanities, about the way my friends who were physicists interacted with the world. They were so awed by the stars, Mars, astrophysics, and it seemed to me interesting but altogether unimportant. They argued they may find something outside our planet that could help solve Earth-bound problems like disease, or find the origins of earth and humanity — but really they were doing it because they loved it. One of my friends had a good argument, though — there are enough people right now that we can specialize in what we care about, and there will still be others covering other topics. He could be a physicist and look into the universe’s origin, while I studied social interaction and writing, and our other friends looked into solving cancer or eradicating invasive plants in the native wetlands. We have to specialize, and there are enough of us to do it too.

I think it’s the same way in journalism — whether it’s sports, celebrity journalism, or coverage of politics and war, there are a lot of opportunities right now for journalists. Of course the business model is changing, and some old-schoolers won’t know how to roll with that, but generations change slowly; we’re learning.

Also, the Olympics is seen as more than a sporting event, it’s also a symbol of world competition and cooperation too — a way for countries to come together and share entertainment globally. I think that’s worth covering.

In the second post, Robert Scoble says there are plenty of great journalists but the public doesn’t care. In some ways I have to agree with that, but I don’t think it’s negative, necessarily. I had a conversation with someone the other day about world news reportage. He says, “I was just reading this story, but what does it matter to me if there’s a flood in some city in another country I’ll never visit and some farmer lost his sheep?” World news is only important when it’s relevant, so it’s no wonder that many people don’t care — if they don’t know much about the area, and it doesn’t affect them, they have no incentive to give it full attention. You can call that apathy, but I think it’s an important selectivity skill that humans have. We have to choose what to give priority to, so if nothing stands out as being particularly important, we just ignore it or gloss over it. Human nature…

Also I think the common person today just gets desensitized and doesn’t know where to turn their energy, when surrounded by so many crises. Either you focus on one specialty and do your best to work toward one cause in your life — and maybe that’s just in the course of your daily work — or you become a complete Attention-Deficit-Disorder case and bounce from one problem to the next, without knowing how to solve anything. That just causes a sense of bewilderment, despair, and either that bogs you down or eventually you get desensitized.

There’s a commenter on Scoble’s blog, Spencer, who talks about this generation’s apathy. There are so many people who want to blame today’s generation or the young generation for this “apathy” that they sense. But I see it as a survival mechanism that arises from the way information flows these days. We’re surrounded by crises, everyone wants us to know about them — the water shortage, global warming, death in Iraq, the national deficit. Okay, crisis, I get it. But no one gives a real clear idea on what any individual is really supposed to do to solve the problem. You can’t get involved with one global cause, without ignoring all the others, and if you do get involved it’s likely to become your life’s purpose. Most people are concerned with other things — their families, their work, personal development, their homes and futures, and really that’s enough to take up all their time.

I’m always amazed when I read about the early unionists. Emma Goldman for example, the activist who pushed for the 8-hr workday, and campaigned for free love in the early 1900s when women were still wearing corsets, used to work 16 hour factory days as a seamstress, then lead meetings late into the night. Today we lead cushy lives comparatively–8 hour days, plus commute and lunch, family time, dinner time, gym maybe, sleep… but it still doesn’t seem like we ever have enough energy and time.

What Emma had that most people today don’t, is a community living in the same conditions as herself, with clear goals about what they were campaigning for, and a cause that affected their own daily lives. Today, unionism and local activism is in much shorter supply, in part due to the many people who work fairly comfy desk jobs, and the problem that everyone has his own specialization, works in a cubicle, does his or her own thing. The problems we’re facing today in terms of global warming, global water shortage, aren’t the same kinds of problems that activists have fought for in the past, and there’s no clear road map for how to solve them. Our leaders sure aren’t leading the way.

What we do have, at least, is the Olympics, which is an age old symbol of international cooperation, play and competition…so, uh, go sports! As for full disclosure, I don’t actually have a TV and haven’t watched the Olympics in many years, but I do try taking short showers–does that help?

LAS VEGAS -- Last weekend, more than 9,000 hackers, freaks, feds and geeks gathered for the 16th annual DefCon, the world's largest computer security convention.

Wired.com brought you live coverage of the most newsworthy events at DefCon 16. Here are some photos from the lighter side of the conference.

Left: South Korean hackers compete in the Capture the Flag competition. The goal is to hack into and keep control of targeted servers.

Mr. Sinister and Dragon Cracker battle it out in a round of Guitar Hero -- one of DefCon's newest competitions.

Bringing-your-own-booze supply ensures optimal buzz at DefCon. Shortly after this picture was taken, hotel security escorted this backpack-hacker to his room.

Computer geeks from the National Institute of Standards and Technology set up a network secured with quantum encryption in a conference room at DefCon. The quantum-entangled photons are being used to encrypt a video stream across a line-of-site network.

A compact optical bench and an atomic clock (left) are used to secure a network with quantum encryption.

In the Lock Pick Pavilion, DefCon attendees Dustin, Jennalynn and Kunfoozball practice their lock-picking skills.

DefCon founder and organizer Jeff Moss, aka Dark Tangent, at the conference's closing ceremony Sunday.

A collection of black badges awaits the winners of the various competitions. These badges give their holders lifetime entry to DefCon.

One of DefCon's logos, the smiley-faced skull and crossbones, is welded inside a yellow sphere. The sphere is the primary stage of one of the most difficult competitions at DefCon: The Mystery Challenge.

Unbeknownst to attendees, this laptop is sniffing RFID tags and taking photos of their owners when they pass in front of the detectors. RFID tags are used in everything from building access to some credit cards.

At the closing ceremony, DefCon organizers turn off the lights while the attendees wave their high-tech badges back and forth.

Back to CEP and EPTS, there are folks who appear to believe they may define “CEP” by the current use cases from self-described CEP vendors. Frankly speaking, I am puzzled by the bottom-up approach.

The bottom-up approach is a bit like saying “We have a lot of prototype rockets being built, so let’s define the future of space travel based on the prototypes!”

It really makes little sense, at least to me, to attempt to define CEP based on what the current generation products (self-described CEP products) are capable of doing.   

From my persective, it would be more beneficial to customers to define the types of complex events (and situations) businesses need to detect in real-time and match the technologies and solution architectures to detect those events, in real-time, with high confidence.

A lot of this “top down thinking” has been already done.

IT businesses need to detect operational threats and problems, and be able to pinpoint, with very high accuracy, where the problem is in a complex network, for example.  This problem remains mostly unsolved with a very low signal-to-noise ratio.

Also, most businesses would like to detect fraud and other criminal activity on their network before the activities adversely impacts their business.   This problem remains unsolved for most companies.

Scientific researchers seek models of weather, epidemiology, and so much more; and they need event processing solutions to obtain situational knowledge into current events and predict future ones.  We know how difficult predicting the weather can be!

Folks on the ground need to model urban traffic as events and design better event-driven traffic models and solutions.

The list of important event processing challenges we face go on and on.  

While I see some merit in the bottom-up approach, it is better for users to define what are practical “complex event” related problems and then look for the solutions, vs. define the solution and then look for the problem.

From a strategic perspective,  self-fulfilling CEP use case studies are interesting, but they hould not limit the vision, definition, and future of processing complex events; and be careful of use case fallacies.