Nemertes Impact Analysis

Expert Insight On How Recent News Affects You

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Cisco gets Agitated Over Wifi

Cisco (NASDAQ: CSCO) and privately held Agito Networks, announced last week
that Cisco would use Agito's wifi integration technology to deliver fixed mobile
convergence (FMC) capabilities.

Nemertes' recent study, Advanced Communications Services: Next generation
Wireless, finds that FMC is interesting to the enterprise IT, but that
adoption has been slowed by carriers' reluctance to provide FMC services, and of
enterprises to cede network control. This announcement, as well as offerings by
other vendors, such as privately held DiVitas, does a neat end run around the
issues.

Impacts:

Enterprises: If you have been holding back on deploying FMC, you should take
a look at the Cisco/Agito solutions.

Carriers: Enterprises are primed to develop their own FMC solutions. It is
time to get into the market.

Investors: When enterprises can become their own carriers, the dynamics and
economics of telecommunications change. Keep an eye on the uptake of this
technology to gauge the wind direction.

http://www.nemertes.com/benchmarks/nemertes_benchmark_acs_nextgeneration_wireless
http://newsroom.cisco.com/dlls/2008/ts_052808.html?POSITION=LINK&COUNTRY_SITE=us&CAMPAIGN=NewsAtCiscoLatestNewsfromCDCHP&CREATIVE=LINK2&REFERRING_SITE=CISCO.COMHOMEPAGE

Mike Jude, Senior Analyst

VMWare Wants Applications to Be-have: Acquires B-hive Networks

VMWare (NYSE:VMW) intends to acquire privately held B-hive Networks, an
application performance management provider. Application performance management,
in the physical world, is a basic requirement of IT operations. In the virtual
world, the need may be greater since all applications - including security -
share a common hardware base. The issue is underscored by Nemertes' upcoming
Webinar, Virtualization Security 101: Virtual Insecurity = Real Problems,
where a primary consideration of virtualization security is the potential
virtualization and application performance hits.

Impacts:

Enterprises: Make sure your current application performance management
solutions are virtualization-aware; don't assume physical = virtual performance.

Vendors: Virtualized application vendors should look to integrate with a
solution like B-hive to support application performance management in the
virtual world.

Investors: VMWare has been on a buying spree, so look for additional
acquisitions by VMWare and competitors, particularly in virtualization lifecycle
management. Likely candidates include privately held Embotics and Surgient.

http://www.nemertes.com/webinars/nemertes_client_webinars_virtualization_security_101_virtual_insecurity_real_problems
http://weblog.infoworld.com/virtualization/archives/2008/06/vmware_goes_aft.html

Ted Ritter, Research Analyst

Xiotech Adds Virtual View

Adding virtualization environment awareness to its storage resource
management application, privately held Xiotech is adding deeper support of
virtualization to Tier 2 storage vendors.

Nemertes' benchmarks, Information Stewardship, and The New Data
Center, show that good storage management is critical when creating a data
center that is ready for future growth and greater agility.

Impacts:

Enterprises: Mid-range storage vendors incorporating good virtualization
support into storage management tools makes storage management easier for medium
and small businesses, enabling them to adopt and exploit virtualization.

Vendors: Robust support for virtualization will become a critical
differentiator for buyers of data center infrastructure, including security and
management tools. Be sure your products are ready soon.

Investors: Privately held Compellent has also moved to build in support for
virtualization, and other smaller storage vendors (e.g. NexSan, Intransa,
iQstor, all privately held) should follow; failure to support virtualization
robustly could seriously hurt those that do not.

http://www.nemertes.com/new_data_center_volume_3_storage_preview
http://www.xiotech.com/About_Press_Release.aspx?ID=NR-05-28-08

John E. Burke, Principal Research Analyst

PDF:Preempting Desktop Function? Adobe Launches Online Office Suite

Adobe (NASDAQ:ADBE) has jumped into the desktop software as a service (DSaaS)
market with a new suite of productivity and collaboration tools. Adobe's focus
is on collaborative document creation (Buzzword) and unified conferencing
(ConnectNow), but no spreadsheet or presentation authoring tool.

Like Google Documents (NASDAQ: GOOG), and Microsoft Office Live (NASDAQ:
MSFT), Adobe seems to be hoping to capitalize on small-business interest in SaaS
to develop a community of users.

Impacts:

Enterprises: The continuing development and spread of DSaaS offerings present
opportunities for small businesses to reduce costs and get great functionality.

Vendors: The more these offerings spring up and compete with each other, the
more quickly they'll become acceptable alternatives to desktop-resident
solutions, spelling trouble for the only big office suite vendor left,
Microsoft.

Investors: Watch smaller vendors like Zoho and ThinkFree as potential
partners for other companies looking to build an on-line office presence;
perhaps HP (NYSE:HPQ) or EMC (NYSE:EMC).

http://www.adobe.com/aboutadobe/pressroom/pressreleases/200805/060208Acrobat.combeta.html

John E. Burke, Principal Research Analyst

Mr. Data, are you there?

Androids aren't just for science fiction any more as Google's ( NASDAQ: GOOG
) demo of its Android wireless applications platform showed last week. Combining
many of the Google Apps features in a mobile device, that works and even looks
like an iphone, demonstrates the virtues of wireless open access.

Nemertes study on the growth of the Internet, The Internet Singularity,
Delayed, shows how wireless can drive demand for Internet Access. Devices
driven by Android are likely to accelerate this dynamic.

Impacts:

Enterprises: Open access will make deploying mobility applications much
easier. Check out Android.

Vendors: Proprietary operating systems are poised to become passé. Vendors
like Apple (NASDAQ: AAPL) will feel the heat.

Investors: This could be a threat to Apple's position in the market. Invest
in carriers and vendors that adopt open access solutions like Android.

http://www.nemertes.com/internet_singularity_delayed_why_limits_internet_capacity_will_stifle_innovation_web
http://www.youtube.com/watch?v=1FJHYqE0RDg

Mike Jude, Senior Analyst