Archive for August, 2010

Monday’s Musings: Why Next Gen Apps Must Improve Existing Activity Streams

Upcoming Data Deluge Threatens The Effectiveness Of Activity Streams

Activity streams, best popularized by consumer apps such as Facebook and Twitter, have emerged as the Web 2.0 visualization paradigm that addresses the massive flows of information users face (see Figure 1).  As a key element of the dynamic user experiences discussed in the 10 elements of social enterprise apps, activity streams epitomize how apps can deliver contextual and relevant information.  Unfortunately, what was seen as an elegant solution that brought people, data, applications, and information flow into a centralized real-time interface, now faces assault from the exponential growth in data and information sources.  In fact, most people can barely keep up with the information overload, let alone face the four forces of data deluge that will likely paralyze both collaboration and decision making (see Figure 2):

  1. Massive activity stream aggregation by enterprise apps. Every enterprise app seeking sexy social-ness plans one or more social networking feeds into their next release.  The mixing and mashing of personal and work related feeds will leave users confused about context and lower existing signal to noise ratios.  Yet, proliferation will continue as users seek to bring aggregated sources of information into one centralized feed.
  2. Explosive growth in the Internet of Things (IOT). Beyond just device to device communications, the web of objects, appliances, and living creatures through wired and wireless sensors, chips, and tags will drive most of the growth in the internet in the next 5 to 10 years.  With an estimated 100 billion net-enabled devices by 2020, these networks seek to discover activity patterns, predict outcomes, and monitor operational health.  The massive amounts of sensing data driven into systems will not only overwhelm users, but also handicap the performance of today’s data warehouses, analytics platforms, and applications.
  3. Flood of user generated content (UGC). User generated content continues to grow.  Facebook has over 500 million users populating pages with rich social meta data.  There are over 300 million blogs.  Wikipedia has more than 15 million articles.  Content sources will propagate at geometric rates, especially as BRIC (Brazil, Russia, India, and China) countries up their adoption.
  4. Proliferation of social meta data. Organizations seeking a marketing edge must digest, interpret, and asses large volumes of meta data from sources such as Facebook Open Graph.  Successful identification of social graphs require matching gargantuan volumes of meta data (e.g. likes, check-ins, groups, etc) through introspection across a vast array of objects.  Human centric and object centric events will inevitably coexist and engulf unified activity streams.

Figure 1.  Activity Streams Improve Collaboration And Deliver Dynamic User Experiences


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Personal Log: Altimeter Group’s One Year Anniversary – Thank You!

Thank You To Our Clients, Peers, Alliance Partners, Readers, Friends, And Followers

One year ago today, Charlene, Deb, Jeremiah, and I announced the transformation of Altimeter Group from a single analyst firm to a partner model.  As the founding partners, we set course on four areas of focus: Innovation, Customer, Leadership, and Enterprise.  Our goal — advise our clients on how to adopt and navigate the chaotic world of emerging and disruptive technologies.

Despite starting in the midst of an epic recession, we each brought with us a precious handful of clients who believed in us, our work, and our ability to advise them.  Our VP of Business Development and Sales, David Stanley, took a chance on us without a salary.  Our friends at V3, helped us navigate the crazy world of PO’s and procurement organizations. Over the first 3 months, we built our firm one client at a time.  With continual trust and encouragement, our clients drove our growth in 2009.

Based on our original strategy and strong input from our clients, we added Alan Webber, Lora Cecere, Michael Gartenberg, and Marcia Conner to our founding year partner roster.  They expanded our coverage to include public sector, supply chain strategies, mobile and personal technologies, and enterprise 2.0 collaboration.  Along the way, we added nine extraordinary founding year staff members in sales, research, consulting, and in our back office.  We moved from the original Hangar to the current Hangar 2.0 to account for the growth.

It’s been quite a ride in a year and I can not say this enough, “Thank you to our 100+ clients!  Thank you to our peers, alliance partners, readers, friends and followers!  Without you, we wouldn’t be here today!”

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Polls And Surveys: Insider Insights™ – Customer Centric Cloud Agreements

Annual Evaluation On SaaS Satisfaction Begins This Fall

The Software Insider Insights™ solution evaluation and buyer comparison tool will launch this Fall.  The first report focuses on Customer Centric Cloud Agreements – Software-as-a-Service (SaaS).  This evaluation will:

  • Identify the leading seller/vendors delivering SaaS based applications that adhere to the spirit of the cloud
  • Evaluate seller/vendors performance against the latest provisions in the Customer Bill of Rights: Software as a Service (see Figure 1)
  • Recognize seller/vendors who deliver a customer centric approach to SaaS solutions.

Invited Vendors Represent Today’s SaaS Leaders

The 2010 Customer Centric Cloud Agreements- SaaS evaluation ranks the most popular vendors by inquiry and contract frequency.  The invited participants also qualified based on overall total number of subscribers.  The current list of evaluated vendors will include:

  • Ariba
  • Concur
  • Epicor Lite
  • FinancialForce
  • Intacct
  • Microsoft Dynamics CRM OnDemand
  • NetSuite
  • Oracle Siebel OnDemand
  • Plex Systems
  • RightNow Technologies
  • Salesforce.com
  • SAP ByD
  • SuccessFactors
  • Taleo
  • Ultimate Software
  • Workday

Your POV: Your Input Makes The Difference

As part of the Insider Insights evaluation process, input from users will be incorporated into the evaluation process.  Please take the time to complete this short 10 question survey.  As an added incentive, 5 respondents will be randomly chosen on September 30th to win a free 30 minute advisory call with R “Ray” Wang to be used by 2010.

Share with us your input here:

Quarterly Financial Tracker: Q2 CY 2010 – SaaS Vendors Still Show Massive YoY Growth

The majority of 22 publicly traded software vendors demonstrated solid year-over-year (YoY) quarterly growth from Q2 2009 (see Figure 1).   Every SaaS vendor in the Software Insider Index® drove 14% to 26% growth (see Figure 2) despite the pick up in on-premises license sales.  Highlights for the 2010 CY Q2 2010 results:

On-Premises Trends

  • JDA Software (59.19%) and Manhattan Associates (32.93%) continue to ride the CPG, retail, and supply chain investment wave.  Manhattan solidified a significant turnaround in 2 quarters of growth.
  • Large mega vendor bellwethers Oracle (12.95%) and SAP (12.34%) showed significant double digit growth.  SAP’s license gains of 17.31% demonstrate a turnaround in the sales team.  All indications point to BOBJ and the non-EMEA regions driving sales growth.
  • The SMB vendors shared mixed results with Epicor (8.68%), Lawson (5.81%), and CDC Software (3.92%) continuing to grow key license revenues.  While IFS total revenue gains were low in the 1.40%, IFS grew license revenue by a whopping 19.77%.
  • Unfortunately, other SMB vendors Exact (-4.99%) and Deltek (-7.07%) showed negative revenue momentum.  These vendors not only lost ground in license revenue but also saw declines in traditionally stable maintenance revenue.
  • Maintenance fee growth remains healthy for most vendors as new programs to show value to customers gain traction.

SaaS Trends

  • SaaS vendors continue to grow in mid to high double digit growth rates for subscription revenue. SuccessFactors (26.81%), Salesforce.com (24.78%), and Concur (20.49%) moved past 20% year over year quarterly growth.
  • Ariba ($93.2M) nears the $100M per quarter revenue benchmark as Blackboard ($101.5M) continues to grow from this achievement in Q1 2010.
  • RightNow (19.58%), NetSuite (16.83%), Ultimate Software (15.67%), and Taleo (14.63%) all showed solid quarters of growth, though these growth percentages show slight declines.
Figure 1.  Software Insider Index® On Premise Vendors: Q2 CY 2010


(Right click to view full image)
Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
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News Analysis: Capgemini Immediate Delivers Cloud Services To Royal Mail Group

Capgemini Changes The Rules Of The Cloud Game

On July 27, 2010, Capgemini announced a six-year cloud computing deal with Royal Mail Group (RMG).  The partnership brings the capabilities of Capgemini’s Infostructure Transformation Services (ITS) and Capgemini Immediate to RMG.  As the UK’s second largest employer, RMG employs 188,000 people, handles over 80 million items per day, and delivers over 150,000 parcels per day via ParcelForce, its worldwide express parcel business.  Analysis of the deal reveals two key points:

  • Royal Mail Group chooses cloud computing for concrete business value. RMG sought a new eBusiness platform.  Through the RFP process, RMG determined that traditional on-premise software and hardware solutions on single stack technologies (e.g. Microsoft, Oracle, and IBM) did not meet current and future business requirements.  Requirements included decreasing the time to market to deliver new solution offerings, delivering pay-as-you-go services to meet the needs of the organization’s personal and small or medium business customers, and supporting RMG’s innovative parcel delivery services to keep up with the UK’s online shopping boom.  After careful analysis, RMG realized they would have to go best of breed.

    Point of View (POV):
    With over 3000 web pages and 100 applications, RMG felt the dual weight of transforming legacy applications and the need to free up resources for innovation.  As with many legacy systems, changes to their current eBusiness platform most likely took too long to implement and the integration challenges of managing a specialized and aging e-business environment became too cumbersome to manage.  RMG chose Capgemini Immediate because the solution delivered an ecosystem of solutions as one offering with Capgemini acting as both the services integrator and prime contractor.  RMG gained both the business value in best of breed solutions and the flexibility of the cloud computing model.
  • Capgemini Immediate mitigates the challenges of managing SaaS best of breed “hell”. Capgemini’s integrated best of breed cloud offering includes 18 initial SaaS and open source suppliers across the software-as-a-service (SaaS) and platform-as-a-service (PaaS) layers of cloud computing.  Key examples of core PaaS components delivered immediately to the customer include Drupal (Content Management), Apache Software Foundation (Common UI service), IBM Infosphere Datastage (ETL), Cordys (Business process orchestration), Attenda (Business activity management), and Talis (Semantic data management).  For example, the marketing and eBusiness SaaS offering includes Salesforce.com (Customer transactions), Demandware (eCommerce), Kognitio (Data Warehousing-as-a-Service), Ominiture (Web analytics), Eloqua (Online marketing) and Google (Search) see (Figure 1).

    POV:
    Leading companies who seek best of breed approaches often face challenges in integration and managing multiple vendor contracts.  The Capgemini Immediate offering reduces the risk of best of breed because clients sign one contract and Capgemini manages the delivery risk, SaaS and hybrid integration, and the management of partners.  In addition, the on-demand pricing and delivery model enables organizations to manage seasonal peaks such as holidays that may require excess capacity.  Best of breed solutions can link back to the RMG ecosystem with ease allowing for more choices among application solutions.

Figure 1. Capgemini Immediate Provides A Best Of Breed E-Business Platform In The Cloud

Source: Capgemini

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Tuesday’s Tip: 10 SaaS/Cloud Strategies For Legacy Apps Environments

Legacy Apps Customers Seek Practical Advice

Organizations determining when and how to make the move to SaaS and Cloud face realistic challenges in gaining buy-in and realizing the apparent and hidden benefits of SaaS/Cloud.  In a recent survey of over 300 companies, 73 respondents who were wary of SaaS/Cloud were asked to list the top 3 reasons they did not plan to deploy a SaaS/Cloud solution in the next 12 months (see Figure 1).  The top 3 reasons related to legacy environments, org structure, and governance include:

  • Legacy apps CIO’s. CIO’s vested in protecting the existing investments may often proceed with caution for SaaS and Cloud solutions.  In some cases, sunk cost mentality takes hold and the goal of being 100% pure with a single vendor clouds the vision to meet needed business requirements.
  • Burden of legacy apps. Legacy apps maintenance and upkeep represents a key barrier to SaaS and Cloud adoption.  Organizations often remain complacent about maintenance and upgrades, preferring to avoid substantial changes and risk.   Becuase the money and resources to support legacy apps consume most of the budget, organizations have little funds for innovation and experimentation.  Eventually, business decision makers procure SaaS/Cloud solutions to by-pass IT.
  • No IT team buy in.  Many constrained IT teams have not taken the time to understand the requirements to support SaaS and Cloud apps in a hybrid mode.  SaaS requires organizations to revisit SOA strategies, integration requirements, and master data management.  Business leaders and decision makers often overlook these dependencies at the organization’s long term expense.

Figure 1.  Legacy Issues Hamper SaaS/Cloud Adoption


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Research Report: The Upcoming Battle For The Largest Share Of The Tech Budget (Part 2) – Cloud Computing

Welcome to a part 2 of a multi-part series on The Software Insider Tech Ecosystem Model.  Part 2 describes how the cloud fits into the model.  Subsequent posts will apply the model to these leading vendors:

      The aggregation of these posts will result into a research report available for reprint rights.

      Cloud Computing Represents The “New” Delivery Model For Internet Based IT Services

      Technology veterans often observe that new mega trends emerge every decade.  The market has evolved from mainframes (1970′s); to mini computers (1980′s); to client server (1990′s); to internet based (2000′s); and now to cloud computing (2010′s).  Many of the cloud computing trends do take users back to the mainframe days of time sharing (i.e. multi-tenancy) and service bureaus (i.e cloud based BPO). What’s changed since 1970?  Quite plenty — users gain better usability, connectivity improves with the internet, storage continue to plummet, and performance increases in processing capability.

      Cloud delivery models share a stack approach similar to traditional delivery.  At the core, both deployment options share four types of properties (see Figure 1):

      1. Consumption – how users consume the apps and business processes
      2. Creation – what’s required to build apps and business processes
      3. Orchestration – how parts are integrated or pulled from an app server
      4. Infrastructure – where the core guts such as servers, storage, and networks reside

      As the über category, Cloud Computing manifests in the four distinct layers of:

      • Business Services and Software-as-a-Service (SaaS) – The traditional apps layer in the cloud includes software as a service apps, business services, and business processes on the server side.
      • Development-as-a-Service (DaaS) – Development tools take shape in the cloud as shared community tools, web based dev tools, and mashup based services.
      • Platform-as-a-Service (PaaS) – Middleware manifests in the cloud with app platforms, database, integration, and process orchestration.
      • Infrastructure-as-a-Service (IaaS) – The physical world goes virtual with servers, networks, storage, and systems management in the cloud.

      Figure 1. Traditional Delivery Compared To Cloud Delivery


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