Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

Category: IT/Software (Page 1 of 58)

A Fascinating Saga Continues: AI Disrupting Enterprise Software

This past week was another brutal one for software companies, as evidenced by the big stock declines you see here (as of market close on Feb 7). This week may have been better for some than the week before, but not by much. Some observers are starting to refer to what’s happening as the “SaaS apocalypse.” Fox Business called it a “$1 trillion rout in U.S. software giants” and labeled it “the software Armageddon.”

Just what exactly happened this first week of February to cause the latest shock to the industry? A single move by an AI company juggernaut. As Fast Company put it, one Anthropic update wiped billions off software stocks. It begins: “Investors fear Claude Cowork’s new agentic features threaten entire categories of SaaS tools.” The article continues:

“Tech workers have been worried for years about the AI tidal wave coming for their jobs, but their bosses are starting to worry now, too.

“Stocks plunged this week as fears escalated that AI advancements will take a bite out of business for many software, data, and professional services companies. The market losses are tied to updates to Anthropic’s AI-powered workplace productivity suite, Claude Cowork, which threatens to replace some software tools ubiquitous in the professional world.”

But despite many in the tech world piling on to the prevailing opinion that enterprise software is dead, there are a few voices speaking out with a viewpoint that all is not lost for the software industry. One example is cited in the closing paragraph of the above Fast Company article:

“Not everyone deeply invested in AI agrees. Nvidia CEO Jensen Huang swatted away worries that AI would eat the traditional software industry after the stock bloodbath that began on Tuesday. ‘There’s this notion that the tool in the software industry is in decline, and will be replaced by AI,’ Huang said, emphasizing that relying on existing software tools makes more sense than reinventing the wheel. ‘It is the most illogical thing in the world, and time will prove itself.’ ”

Another skeptic is Steven Sinofsky, a former Microsoft exec who’s a board partner at Andreessen Horowitz (a16z). Here’s a (long) opinion piece he published this week: Death of Software. Nah. Additionally, an article in The Economist argued a bit against the prevailing dire view: Why software stocks are getting pummelled. Are investors overestimating the risk from AI? (May require a free subscription.)

And the Fox Business article cited above ends with this note: “Despite the stock market turbulence this week, the Dow Jones managed to cross the historic 50,000 level, underscoring the continued exuberance surrounding the AI race.”

For a fascinating, deep-dive analysis of the situation, Ignite Insights published this (very long) post on its Substack just days ago: The Great SaaS Unbundling. Where Software Value Actually Goes When Agents Arrive. (May require subscription.)

(Note: This post first appeared on the blog of my client Timmaron Group.)

#EnterpriseAI: General Mills Is ‘Transforming With the Power of Cloud and AI’

I attended an event yesterday at the headquarters of General Mills to hear how the company has partnered with Google Cloud over the past few years to transform itself in the age of cloud and AI. No doubt, hearing how any Fortune 500 could pull off something like this would be quite a story, I figured, let alone a company that’s been around for 155 years(!). Yes, we’ve been known to build ‘em to last here in Minnesota.

I pulled into Betty Crocker Drive in Golden Valley MN about 8:15 am and drove into the sprawling, grassy campus, with several gleaming buildings. I hear it’s not all that busy these days, however, what with remote work. But it may be the most impressive facility of any of our giant local companies for holding a big event like this. The crowd looked like it numbered 300 or more. Being that I’m a big fan of in-person events (but somewhat skeptical of AI hype), I had to check it out. Plus I felt an obligation to be there in light of my role as a board member of MinneAnalytics. (We love data and AI!)

So, what I thought I’d do is share my notes with you, along with some photos, plus stand-out quotes from the executive panel that followed the morning speakers.

Notes from the Opening Keynote by Rich Rubenstein, VP-Data & Analytics

Rich Rubenstein

Rich Rubenstein

– All General Mills data is now on the Google Cloud Platform today.
– The company uses Vertex AI.
– “This is not a science-fair project. We use AI every single day.”
– The focus is on innovation — “in products, in go-to-market, and in how we connect with consumers.”
– On the topic of AI hype: “There’s a tremendous amount of light and heat in this space. But we know we have a solid foundation. We’ve invested in someone [Google] that we know can take us a long way.”

 

Some Remarks from Jenny Hon, Senior Director, Strategy & Enterprise Architecture

– The cloud transformation journey is based on the company’s purpose: “To be the undisputed leader in food.”
– “All signs indicate that our ‘Accelerate Strategy’ is working.” accelerate strategy
– How we win is by doing four things: “Boldly building brands, relentlessly innovating, standing for good, and unleashing our scale.”
– She noted that General Mills has nine billion-dollar brands.
– The company used Cloudera for a long time, “but it wasn’t enough to take us where we wanted to go.”
– What is cloud for General Mills? They focus primarily on infrastructure as a service (IaaS).
– Developing a FinOps practice has been a major focus — “to ensure business unit cloud spends don’t blow their budgets.”

Some Remarks from Josh Moe, Senior Manager, Enterprise Architecture

– “Our aspiration is to lead CPG in data and analytics.”
– The company began in 2019 with a big bet in data analytics with Google Cloud.
– They had looked at two major vendors [the other was Microsoft Azure].
– “We moved SAP from on-prem to cloud. There was a lot of complexity in that.”
– “We did a major transformation and data migration in 24 months. Even Google doubted we could do that.”
– Specifically, the data lake migration took 15 months, and the data center migration took 18 months.
– “We did a full rebuild of how we do SAP.”
– The company’s “Analytics Enterprise Data Warehouse” is on BigQuery. “It’s the enabler of the work we’re doing in AI.”
– “We’re very intentional about our data. Do we own it? Or just subscribe to it?”
– The company has “Automated Self-Service Infrastructure Processes” that provide a simple and secure experience for its data scientists, product teams, and developers.

Some Remarks from Hanna Gordon, Director, Digital & Technology Data Science

– She started with General Mills in 2016, and has managed rapid growth of its AI/ML team.
– In 2019, the team began work with Google Cloud and Google AI.
– Forbes has called her AI team one of the fastest-growing in the country.
– “We have 6 million models in production today.” [Are you kidding me!?]
– Their first use case went live in 2020.
– In 2022, the company’s migration was complete and they began building a machine learning engineering team.
– In 2023, her team has been optimizing workflows, building MLops, and working with generative AI, “like everyone else.”
– The team now numbers 75 in the U.S. and India.
– They now have three core roles: data scientist, ML engineer, and MLops analyst (the most recent role).
– She showed a slide (see “Model Growth”) that listed their number of models per year, and the number of predictions per month — now 500 million(!) from the current 6 million models.

Following the above talks, after a break, there was an executive panel moderated by Saher Asad, Director of Engineering for Google Cloud. The participants were:
– Jeff Young, Chief Data Officer, Prime Therapeutics
– Jason Staloch, VP-Digital Core, General Mills
– Mark Langanki, CTO, C1 (ConvergeOne)

A few highlights:
– Staloch: “Gen AI is the third big thing [transformational technology], after the Internet and the iPhone, that really started on the consumer side.”
– Young: “The first thing we look at with gen AI: is it safe and secure?… We have to be able to wall off our data.”
– Staloch: “There’s a closer relationship now between business and IT. We can tell the story better now.”
– Asad: “Gen AI has taken a lot of the complexity out” [of the AI journey].
– Langanki: “One use case we found, when a conversational chat answer is ‘I don’t know’, we feed that chat into gen AI to find out what the real question was.”
– Young: “Building internal literacy is important for us.”
– Staloch: “The focus should not be on finding a use case but, rather, what is the problem?”
– Langanki: “The conversation on a bot must stay private.”
– Asad: “There’s a big rush now in gen AI, but it’s not the answer to every problem.”
– Staloch: “We’re introducing a private LLM for employees.”
– Young: “The biggest challenge now is how to deploy AI at scale.” His advice: “Start slow. Make sure your data is as high quality as possible,”

One final point cited by Asad, the moderator: Gartner has found over time that only 60% of IT pilots make it into production. The firm also reported recently that it predicts 91% of future IT projects will involve AI. You do the math.

Thanks to General Mills and Google Cloud for putting on this event!

By the way, there were several more technical and hands-on sessions in the afternoon, but I wasn’t able to stay for those. I’ll be interested to hear from colleagues about those sessions.

SaaS is so yesterday. The new hotness? Software WITH a Service: #SwaS

So, we know you’ve been sitting around wondering… what’s the next big wave in B2B software? Well, so have a bunch of Silicon Valley VCs, according to the author of a recent TechCrunch guest post, “Why ‘Do It For Me’ Is The Next Big Thing.”

Service-keyboard-450wThe author is Anthony P. Lee, a general partner at Altos Ventures, and he makes an excellent argument about how SaaS is no longer enough — specifically, for companies in the ginormous space we call Small Business.

Continue reading

My Coverage of #Gluecon 2014: Seven API-Related Stories Written for ProgrammableWeb

Glue-stageI attended the Glue Conference May 21-22 in Broomfield, CO, and a pre-event on May 20 called API Strategy & Practice. It was my sixth Glue in a row, since the event began in 2009. It's been a very popular developer event, and has grown each year — now attracting approximately 650 attendees. There were 70 speakers, selected from some 500 who applied. I've written extensively about each of the six Glue Conferences I've attended. This year, I reported for ProgrammableWeb for the first time. (More about that site below.)

Here are my seven posts from #Gluecon 2014, in chronological order of the particular sessions that I wrote about:

Developers at Roundtable Ask, ‘Are APIs Copyrightable?’ (863 words)

‘API First’ Isn’t Just for Startups Anymore (529 words)

How to Secure Your REST API the Right Way (411 words)

10 Reasons Why Developers Hate Your API (918 words)

Reverb, Apigee Announce Swagger 2.0 Workgroup (720 words)

As APIs Proliferate, Can Search Scale to Keep Up? (388 words)

API Design Should Be About ‘Interactive’ and ‘Tinkering’ (600 words)

I also shot a bunch of photos at the event, as I always do. Here's my Flickr set of Gluecon 2014.

About ProgrammableWeb:  As the world's leading source of news and information about Internet-based application programming interfaces (APIs), ProgrammableWeb is known as the Web's defacto journal of the ProgrammableWeb-logo API economy. Since it was founded in 2005, ProgrammableWeb (now based in San Francisco) has been chronicling the daily evolution of the global API economy while amassing the Web's most relied-on directory when it comes to discovering and searching for APIs to use in Web and mobile applications. In 2014, Gartner identified ProgrammableWeb as one of several “Cool Vendors” in Information Innovation. It is also the most widely-cited source of data related to APIs in the mainstream media, conferences, whitepapers, and other forms of research. ProgrammableWeb is where you can keep-up with what's new and interesting in a world where the Web is a programmable platform. When it says "the Web is a platform," it is referring to how Web-based and mobile apps are enabled by Internet-based APIs. For example, the way in which the developers of many location-aware apps are able to incorporate Google Maps into their wares with just a few lines of code (using the Google Maps API). Read more about ProgrammableWeb here.

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