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We expect both the rate of customer adoption and ecosystem building to accelerate even further in 2006. Concurrent with accelerated customer adoption, hardware vendors, OEMs, and software vendors are aggressively building products and solutions that enable and facilitate server virtualization.

People often forget about management tools when they're building a new network or looking at the one they have. Most hardware vendors provide management software with their products these days, but there is a whole tier of software that can give visibility into the network as a whole.

Robert Whiteley

There is no doubt that software as a service has become a driving force within the software industry. Indications are that customer adoption will continue over the next five years and spending will remain on the rise. The software industry must adopt a new frame of reference for value creation. Software as a service delivery is at the forefront of this trend, and adoption will grow as more customers experience software as a service and the offerings mature, becoming more readily accepted and available in the market.

Communications server momentum is here now. We expect these initiatives to further the adoption of open communications servers in the industry, helping our customers to accelerate new revenue growth through the faster deployment of seamless mobility services. Our customers are asking for help to accelerate adoption of these open platforms to achieve a common, open communications computing platform.

Desktop virtualization addresses security and management. In 2006 we'll start to see broader adoption of desktop virtualization as more products are introduced.

This is building on further deployment of virtualization software. Virtualization hardware will certainly offer more efficient, more robust use of virtual machines.

Martin Reynolds

Our goal is to help OEMs create a new class of virtualization solutions for small and medium enterprises. The new class of solutions would consist of the same OEM software (snapshot, replication, etc.) ported onto a high-performance, low-cost hardware platform.

It's kind of six of one, a half dozen of the other. Storage vendors are always going to advertise that their products will take the load off the server. Server vendors are going to say they'll take the load off your storage -- frankly, I'd be disappointed in a server vendor like IBM that didn't try to leverage its servers.

The majors are all taking positions. You'll see announcements from all the major storage vendors in early 2006. By the end of 2006, there'll be firefights all over the place, because all of the major OEMs will be competing aggressively against each other for this business, because it's new, it's exciting, it's high value-add. There'll be quite a firestorm by the end of the year.

Kirby Wadsworth

LSI has achieved first pass success on this product. Using LSI, OEMs have the opportunity to source expanders and controllers from a single vendor, providing proven interoperable solutions and the lowest risk path to success. By reducing the number of vendors to be managed, these OEMs can speed products to their customers faster. As a hacker, Pex Tufvesson is in a class of his own.

Siebel has provided a consistent vision for the CRM industry for over a decade. With Customer Adaptive Solutions -- and everything they represent -- the company is laying out a new vision for customer facing applications that are more flexible and better able to accommodate customer input. This will enable Siebel users to be more responsive to customers and enable the kind of customer centric processes that drive loyalty and, ultimately, repeat business.

Denis Pombriant

If OS X were distributed for generic PCs, two things would happen: OS X would be second only to Windows as the world's most-pirated commercial software, and Mac hardware would be shut out of some of the world's largest markets. Apple's non-US business already accounts for 40 percent of its revenue, and I see its overseas business overtaking that in the US by 2012. Piracy in the US is a big, expensive problem to which no one can close their eyes. But elsewhere, software vendors don't just lose sales to piracy. Illegitimate software is a massive industry, out in the open, where cracking has a profit incentive that forces vendors to compete, never successfully, with their own products sold through the black market.

The business model associated with what we do with blade network technologies has to be very closely aligned with how server vendors operate, how they get products and how those products are supported. That is very different to how networking vendors operate.

The addition of Todd marks the maturing of our efforts to establish industry-leading partnerships that benefit our customers. Our channel partnerships are an essential part of our growth strategy, and Todd has the breadth of experience in the software, hardware, and telecommunications industries to introduce new programs that will accelerate the adoption of our sophisticated speech solutions.

Stuart Patterson

When we asked participants which vendors would be considered in 2006 for their ERP purchases, Microsoft Business Solutions led the pack. Our research indicates that there will be a huge surge in ERP spending in 2006. With companies of all sizes growing their ERP budgets, this is bound to be a banner year for top vendors in this space.

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