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Just Say No to SLAs

Just say NO to SLAs

Most of you who’ve either purchased or delivered cloud services have been asked for an SLA (Service Level Agreement). I’ve seen SLAs that can be measured on inches of paper.  Why so big?

Just consider getting 10 people in a room and trying to write down the definition of what it means for an application to be down:

  • Do you mean a partial outage?
  • What if only one iPad can access the application, is the application up?
  • What if it’s down for one minute in the middle of the night? Is it down?

Now let’s imagine adding our lawyer friends into the mix to write in English our definition of application outage, and then discuss the terms of a penalty payment. If you do this, you’ll quickly see the contract getting thicker and thicker.

SLAs are an anachronism. They come from the day of companies using Model 3 and outsourcing. This means handing over all of your computers and staff to another company, so they can take over your mess and do it for less.

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New Study Tells Retailers: Win Consumers’ Trust to Deliver the Hyper-Relevant Experiences They Want

As Cisco’s chief marketing officer, an important part of my role is to build and maintain the trust of Cisco’s customers.In fact, “brand promise” ultimately relies upon the trust consumers have placed in a brand. Customers who are loyal to a brand will trust that the next product or service introduced under that brand will fulfill the brand promise. However, trust can also have more widespread impacts that affect an organization’s ability to compete and to provide the innovative customer experiences required in the Internet of Everything (IoE) era.

This week at the National Retail Federation’s “Big Show” in New York, Cisco released a new study that uncovered some unique insights about shopping behaviors and attitudes among U.S. and U.K. consumers in the digital age. The findings point to the need for retailers to provide “hyper-relevant” shopping experiences that deliver value to the consumer in real time throughout the shopping lifecycle. Hyper-relevance comes with the ability to dynamically compare real-time customer information with historical data, and the resulting insights allow retailers to improve operations and the customer experience. At stake, according to our research, is an estimated profit improvement of 15.6 percent for an illustrative $20 billion retailer that builds agile business processes for turning these insights into value.

Our research shows that consumers are looking for retailers to deliver hyper-relevance via three value proposition categories: efficiency, engagement, and savings. In the area of efficiency, for example, 77 percent of respondents said they would be “somewhat” or “very likely” to use a solution to optimize the checkout process. In terms of savings, 79 percent indicated a willingness to take advantage of in-store offers provided via digital signage, while 73 percent said they’d like to receive special offers through augmented-reality solutions. And, in the area of engagement, 57 percent indicated a desire to learn more about products in the store by using augmented-reality capabilities.

One of the points I found particularly interesting is that consumers are relatively willing to provide certain types of personal information to retailers—such as name, age, past purchasing history, interests, and hobbies—in order to get a more personally relevant shopping experience. But beyond this basic information, there is a “trust cliff,” a steep drop-off in willingness to share certain types of personal information. A significant 16 percent of respondents were not willing to share any personal information at all.

This trust cliff presents an interesting conundrum for retailers. On one hand, our study shows that customers want personalized and contextually relevant shopping experiences. But on the other hand, they are reluctant to share the very information that can help provide these “hyper-relevant” experiences.

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2015 Is the Year of Hyper-Relevant Retail: Winning Shoppers with Efficiency, Savings, and Engagement

“Mike” may be an avid golfer who enjoys meandering through the sporting goods section of his local retailer. But he would be a very different shopper the morning his plumbing fails and threatens to flood his basement. In such a context, efficiency rules, and it is critical for the retailer to speed his shopping journey — from product research to fast checkout and payment. Friendly, by-name greetings offering prompts for new golf products on Mike’s smartphone would seem irrelevant at best, and intrusive at worst.

Checkout optimization, in-store sensors, augmented-reality solutions, and real-time analytics at the “edge” of the network are just a few of the capabilities that could give the retailer a clear picture of Mike’s shopping habits in that particular context — time, place, and situation — while helping Mike meet his plumbing crisis in a timely and efficient manner.

In effect, Mike is one customer, but he can be many different shoppers. And retailers need to know them all. Technology — specifically Internet of Everything (IoE) solutions that connect people, process, data, and things — is the way to do it.

To better illuminate the competitive dynamics and opportunities for retailers, Cisco this week shared its fifth annual retail consumer survey. Released at the National Retail Federation (NRF) “Big Show” in New York, the study includes a survey of 1240 consumer respondents from the United States and United Kingdom. Later this year, Cisco will release the complete global findings from 6,000 respondents across 10 countries.

At NRF, we also met with retailers from around the world, who shared their successes and challenges. Technology, of course, can be a headache for retailers. From disruptive innovations to rapidly changing customer behaviors, today’s retailers are challenged on multiple fronts. As the Cisco study found, however, IoE-enabled solutions offer retailers an opportunity to provide their customers with hyper-relevant experiences that blend the best of online shopping with the advantages of the in-store experience.

The key is to gain insight into the real-time nuances and context of the many shopping journeys available to consumers. That requires investments in the right technology. But how can retailers avoid the kinds of investments that have not paid off in the past?

In the Cisco study, we tested 19 IoE-enabled shopping experiences, spanning all stages of the shopping journey and addressing many maturing digital enablers, including video, mobility, and analytics. Overall, consumers indicated that they are very interested in using these applications to get more value. The table below illustrates our respondents’ interest level in the 19 individual concept tests, along with the financial opportunity from each of three value proposition categories: efficiency, savings, and engagement. Our economic analysis revealed that roughly two-thirds of the total potential opportunity (or $208 million for an illustrative retailer with $20 billion in annual revenue) comes from applications that deliver greater efficiency for consumers.

In the United States, disruptive innovators (e.g., Groupon, LivingSocial, Gilt) have successfully targeted consumer savings, which has served to exacerbate margin compression for retailers in some categories. We are now exploring these trends in Europe, Asia Pacific, and Latin America. We find that most incumbent retailers, by contrast, are investing heavily in solutions that engage consumers at all points of their shopping journey, including bringing them into the store and cross-selling and up-selling to them (indeed, this is the underlying strategy of today’s discount wars).

Consumers have always been preoccupied with savings. So 
it is no surprise that savings remain the area of most interest to our survey respondents. Efficiency, however, is a close 
second in terms of interest. When asked about the areas where they would 
like to see improvements, 39 percent of our respondents 
identified the process of selecting and purchasing goods, showing a need for greater 
ease and efficiency. By contrast, only 13 percent sought improvements that would create a more personalized
shopping experience.

In this year’s survey, consumers made it clear that experiences must be efficient, contextual (that is, reflecting a shopper’s individual situation, real-time environment, history, and so forth), relevant to real-time needs, and easy in which to participate. In the retail environment, such situational awareness is essential to creating a better customer experience. Retailers must increase the value to the consumer throughout the shopping journey, demonstrably providing a combination of efficiency, savings, and engagement.

By exploring these solutions today, retailers can begin to realize a new level of innovation and competitive dynamism. And customers like Mike can look forward to getting their plumbing fixed ASAP (and maybe even return to the store later that day to try out some of those new golf products).

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Ready for #SuperMobility?

It’s no longer a question of whether mobility best practices and policies are required, it’s a matter of when your strategy will get ahead of the unstoppable trend. Business and IT leaders alike are not just witnessing the movement of everything mobile, but guilty themselves: who isn’t on their devices for both work and play anymore?

User experience, performance, security and management are key red flags that shoot up when we think about mobile. Getting these four totems right will help organizations keep employees or customers happy and productive, while protecting the business. This is no piece of cake: mobility is a journey and you need a strategy.

Thought leaders and innovators across industries are converging on #SuperMobility Mobile Con this week in Vegas to discuss best practices and ways for organizations to tackle these key issues. We’ll be there too to discuss how to move beyond BYOD and develop an enterprise mobility strategy.

Session: Embark on Your Employee and Customer Mobility Journey
Time: Sep. 09, 2014 from 3:30 PM to 4:29 PM
Location: Sands Expo − MobileCON Show Floor, Stage 3 Read More »

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Indoor Wi-Fi Location and Beacons: Better Together Part 2

wifibeaconLocation-based services have been getting a lot of attention lately and people are increasingly curious about how Wi-Fi and beacons play together in the hot space that is indoor location technology. In my last blog I reviewed how beacons work and how to differentiate when to use Wi-Fi and beacons. There’ve been some great questions about beacon technology and how it complements Cisco’s location-based Connected Mobile Experiences (CMX) solution, so I want to follow up on these topics with everyone.

What types of beacons are there?

Generally, there are two different classes of beacons: transmit only and backhaul enabled.

Transmit only beacons are exactly as they sound – they simply transmit information to anyone that is capable of hearing (bluetooth enabled smartphones). They do not receive or pass any data or information upstream.

Apple’s iBeacon is the best example of this type of BLE beacon. You can think of them like the navigational beacons used by airplanes when on approach to major airports. The beacon doesn’t even know the plane is there, but the plane is aware of the beacon and knows where the beacon is allowing it to take the correct action. Same is true for smartphones and transmit only beacons like iBeacon – the intelligence is located in the mobile application which must recognize the beacon and take appropriate action.

Backhaul enabled beacons generally include a Wi-Fi chipset for either management or data capabilities. Some backhaul enabled beacons are USB enabled and take advantage of whatever connectivity exists within the PC they are connected. Read More »

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