So is Lotus conceding the government cloud email market to Microsoft and Google?
Category IBM/Lotus
The news that the USDA is consolidating all their email systems onto Microsoft's hosted offerings hit the webs today. Mary Jo Foley had an interesting column titled Microsoft and the USDA: May the best incumbent win:
Microsoft execs have been crowing about the company’s big cloud win this week with the United States Department of Agriculture (USDA), via which the organization will be moving 120,000 users to the Microsoft’s hosted e-mail, collaboration and conferencing products.
It appears that a number of their various email systems were Microsoft to begin with, and they decided that there's some level of comfort in migration when the vendors are the same. But it also means whatever level of Notes mail used in the organization was lost, and that's where I really have to wonder about IBM's commitment to the government sector.
Here's what we hear from IBM concerning that particular loss:
An IBM spokesperson made it sound as if IBM decided against bidding on the deal, given the USDA’s requirement for Federal Information Security Management Act (FISMA) compliance. A spokesperson said that “IBM has chosen to not address FISMA compliance requirements and instead is focused on commercial requirements addressing cross-company collaboration with a focus on security and enterprise integration.”
Say wha...?
Google has achieved compliance, Microsoft is working on it, and IBM "has chosen not to address FISMA compliance requirements"?
The government released a 25 point Federal technology plan today, which has an interesting emphasis:
Shift to “Cloud First” policy. Each agency will identify three “must move” services within three months, and move one of those services to the cloud within 12 months and the remaining two within 18 months.
Email will likely be one of those "must move" services, and I'm going to guess that FISMA certification will figure in to more than a few of the RFPs. And IBM has chosen to "not address" certification and instead focus on something that has enough buzz words to say little and win big in buzzword bingo?
I'm going to hold out hope that the IBM spokesperson was talking only about the USDA contract and not the LotusLive strategy going forward. Because if that's the case, Lotus's strong presence in the government market is about to be slashed dramatically...
The news that the USDA is consolidating all their email systems onto Microsoft's hosted offerings hit the webs today. Mary Jo Foley had an interesting column titled Microsoft and the USDA: May the best incumbent win:
Microsoft execs have been crowing about the company’s big cloud win this week with the United States Department of Agriculture (USDA), via which the organization will be moving 120,000 users to the Microsoft’s hosted e-mail, collaboration and conferencing products.
It appears that a number of their various email systems were Microsoft to begin with, and they decided that there's some level of comfort in migration when the vendors are the same. But it also means whatever level of Notes mail used in the organization was lost, and that's where I really have to wonder about IBM's commitment to the government sector.
Here's what we hear from IBM concerning that particular loss:
An IBM spokesperson made it sound as if IBM decided against bidding on the deal, given the USDA’s requirement for Federal Information Security Management Act (FISMA) compliance. A spokesperson said that “IBM has chosen to not address FISMA compliance requirements and instead is focused on commercial requirements addressing cross-company collaboration with a focus on security and enterprise integration.”
Say wha...?
Google has achieved compliance, Microsoft is working on it, and IBM "has chosen not to address FISMA compliance requirements"?
The government released a 25 point Federal technology plan today, which has an interesting emphasis:
Shift to “Cloud First” policy. Each agency will identify three “must move” services within three months, and move one of those services to the cloud within 12 months and the remaining two within 18 months.
Email will likely be one of those "must move" services, and I'm going to guess that FISMA certification will figure in to more than a few of the RFPs. And IBM has chosen to "not address" certification and instead focus on something that has enough buzz words to say little and win big in buzzword bingo?
I'm going to hold out hope that the IBM spokesperson was talking only about the USDA contract and not the LotusLive strategy going forward. Because if that's the case, Lotus's strong presence in the government market is about to be slashed dramatically...



Comments
And IBM? Well… No. IBM just don't seem to want to play. Weird.
Posted by Ben Poole At 17:00:49 On 09/12/2010 | - Website - |
Posted by Timothy Briley At 18:18:12 On 09/12/2010 | - Website - |
With roll-outs of this magnitude, all the players know what the potential risk is, so there should be few if any surprises in the end--particularly as the decision and bid process can be quite lengthy. Thus, IBM should have some press in the works and be ready to contain any negative spin from the decision.
Now, I am not telling IBM how to run their business, for clarity... Since the big announcement landed today, and any company would of course want to get some traction on their press releases, I'd say that within 72 to 96 hours, if they haven't clarified their position on FISMA and the cloud, they aren't a serious player in that vertical any longer and that would be tragic. Those who have worked with Lotus for a long time know well the influence the Federal Government had with the Lotus Notes security model over the years; leaving that space could really put into question the Notes strategy long-term. I really like the Lotus brand and respect the design and ingenuity of it. Seeing it potentially separate from the Feds is difficult. I hope this is just a one-off and things will improve. Well, that is my opinion, for what it is worth...
Let's hope this is a one 'loss' wonder.
Posted by Bill Malchisky Jr. At 18:44:04 On 09/12/2010 | - Website - |
I don't know anything about state agencies but on the fed side they've been purging Notes since the early 2000s. Pretty much every place that I've heard of that has run Domino (keep in mind where I live) has either purged or is purging Domino email. Domino apps get recategorized as "Legacy" and the next x.0 version is built in parallel on another technology. Look through the Wayback Machine for .gov sites that used to be Domino but aren't anymore.
IBM and Lotus have been getting killed in the federal sector for many years now. It's only news at the moment because "cloud" is hot now and MS and Google are putting up viable cloudy products and getting some press-release worthy wins.
Posted by Scott Gentzen At 19:26:04 On 09/12/2010 | - Website - |
The thing that is so irritating is that the Lotus professionals who have effectively bet their careers on the success of Lotus Notes are the only ones to lose.
Posted by The Notes Guy In Seattle At 22:58:10 On 09/12/2010 | - Website - |
In-house is safe. Off-site is a potential big disgrace.
Posted by Thomas At 06:37:40 On 10/12/2010 | - Website - |
I wonder how one becomes a Google partner....
Posted by Darren Duke At 07:12:02 On 10/12/2010 | - Website - |
As to the government, I am still fielding RDp/RFQ from governments on Domino so it's not gone everywhere but yesterday I was speaking with someone who also reiterated the move to the cloud by the gov agencies and it's not the IBM cloud.
Wonder what is going on inside the government sales IBMers minds.
Posted by Keith Brooks At 07:23:42 On 10/12/2010 | - Website - |
Good luck with that one!
Posted by Thomas At 07:31:30 On 10/12/2010 | - Website - |
Posted by Rob Novak At 07:43:38 On 10/12/2010 | - Website - |
It wasn't newsworthy then (I didn't think anything said "cloud" anywhere) but last year, they started contracting out for moving to Microsoft's BPOS including contracts to help with user training and transition services for the Notes shops.
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For the required "cloud" services stuff, DoI let out another RFQ recently which required any "cloud" proposal work within the MS BPOS solution. Google and Onix are suing over that requirement since it pretty much blocks them out.
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As for the security/privacy issue, MS is running in datacenters specifically set up for Federal systems hosting. Not sure if Google's doing something similar, but I'd expect so.
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Posted by Scott Gentzen At 08:25:53 On 10/12/2010 | - Website - |
Posted by Thomas At 08:37:07 On 10/12/2010 | - Website - |
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Posted by Darren Duke At 09:26:59 On 10/12/2010 | - Website - |
Really the biggest difference in the "cloud" push is that the data's not in gov data centers anymore. Could be a bad thing. Could be a good thing. I bet MS and Google run their datacenters more consistently than a lot of gov agencies.
Posted by Scott Gentzen At 09:57:31 On 10/12/2010 | - Website - |
Posted by Duffbert At 10:02:10 On 10/12/2010 | - Website - |
Posted by Tim Paque At 10:21:29 On 10/12/2010 | - Website - |
Hosted mail is an invitation to problems, but the "just pay them money and all your difficulties will end" song is one that is enormously tempting to federal CIOs. The tech people have a completely different view. No effin' way is it as easy as they think, and the users will find that out. That's the one population that has been 100% ignored in all this rush to the cloud: cloud computing sucks ass if you're anything more than a casual user. You run into a lot of things, very fast, that you are absolutely stuck with.
I mean, it's even worse than the essentially-uncustomizable Outlook client. You literally can't change a damn thing. You have special needs and requirements? Go pound salt. One size fits all, which means it doesn't fit anybody.
Posted by Turtle At 11:04:00 On 10/12/2010 | - Website - |
Two thoughts come to mind.
First, it doesn't matter if there are problems. As long as CIOs can show on paper that they are saving money it is a win for them (and we all know how numbers can be massaged)
Second, when you have so much chatter about the cloud being the best thing since sliced bread what would we expect them to think? Do we honestly think CIOs would look at it from a technical or user perspective? Some might but the majority wouldn't give those aspects a second thought.
I've witnessed the start of a Gmail migration at a major international bank for some of its users and all your points were valid then and still are.
Posted by Jim Casale At 11:59:38 On 10/12/2010 | - Website - |
A thought -- FISMA compliance is a massive undertaking, perhaps the spokesperson's comments if taken in the context of time (e.g. "not interested...during this short bidding process") then it would make more sense to me than just "not interested." Of course IBM is interested in security overall, and they do have a federal sales force selling into DOD and the intelligence community and other agencies, so the spokesperson's comments don't seem representative of IBM's overall government industry strategy.
Government contracting in IT is a mess, and there are few "win win" situations out there. Clearly Microsoft's USDA win is a big deal for them, and I suspect they have protected themselves contractually, but it's also going to be a giant headache for them. Not to say any vendor should walk away from a multimillion dollar, multiyear deal, but I have seen some of the "winners" lose on both sides of these transactions...
Posted by Rob Novak At 12:17:30 On 10/12/2010 | - Website - |
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Posted by Ed Brill At 05:50:22 On 25/07/2011 | - Website - |