Archive for the ‘project based solutions’ Category

Research Summary: Introducing The 43 Use Cases For Social Business (Social Enterprise)

The Social Business (Social Enterprise) Moves Beyond The 18 Use Cases Of Social CRM

As social media adoption continues to move from mainstream to pervasive ubiquity, enterprises will begin to benefit from these advancements in the consumerization of IT (CoIT).  Just 18 months ago, early adopters identified 18 Use Cases for Social CRM (SCRM).  These ground breaking use cases showed enterprises how to bring social into existing CRM processes.

Consequently, the market has moved on beyond just marketing, service, and support use cases.  In the latest Software Insider “State of Social Business” survey, 103 respondents identified 25 additional use cases that spanned across key enterprise business processes that impact eight key functional areas, from external facing to internal facing (see Figure 1):

  1. Public relations/ marketing (PR/MA).  Key impacted business process: Campaign to lead
  2. Sales (SFA).  Key impacted business process: Lead to deal
  3. Service and support (CSS).  Key impacted business process: Incident to resolution
  4. Projects (PBS).  Key impacted business process: Kickoff to delivery
  5. Innovation/ product life cycle management (PLM). Key impacted business process: Concept to production
  6. Supply chain (SCM). Key impacted business process: Sourcing to acceptance
  7. Human capital management (HCM). Key impacted business process: Hire to retire
  8. Finance. Key impacted business process: Invoice to payment

Figure 1. Constellation Defines 43 Social Business/ Social Enterprise Use Cases and 24 Key Analytics

(Hint: right click to expand and view the full image)

Early Adopters Identify HCM And Projects As The Next Growth Area For Social Business

Survey respondents chose their top 3 internal collaboration and external engagement social business use cases (see Figure 2).  Not surprisingly, service/support use cases led the pack with Reactive support-External (68.9%) and Support escalation and resolution – External (64.1%).  Lead generation – External in the PR Marketing category rounded out the top 3 at (63.1%).  Meanwhile, Projects and HCM gain traction among the top 5 use cases. Respondents report an increase in adoption of Projects Workspaces- Internal (36.9%) such as wiki’s and similar internal collaboration tools.  Meanwhile, HCM Recruiting – External (34.0%) emerged as the fifth most utilized use case.

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News Analysis: Deltek Pays $60M For INPUT, Solidifies GovCon Ecosystem

Deltek Expands Core Vertical While Diversifying Profit Streams

Project Based Solutions (PBS) vendor Deltek plans to close its $60 million acquisition of INPUT, a government contracting market research and business development firm, on October 1st, 2010.  The transaction will add $26.2M in annual revenue, 160 employees, and a rich government contracting ecosystem.  Analysis of the Herndon, VA, based Deltek’s eighth acquisition since 2005 reveals that:

  • INPUT adds market insight and opportunity information to the customer base. INPUT’s solution delivers opportunity information and identification, pipeline development, and capture and proposal management across the public sector market place (see Figure 1).  INPUT’s teaming capabilities, greater reach and membership, and centralized market intelligence matched to opportunities will enhance today’s existing GovWin capabilities (see Figure 1).

    Point of View (POV):
    INPUT provides the information, analysis, opportunity identification, and community stewardship for the government contracting industry.  Deltek gains a key asset that allows government agencies to find potential contractors.  Private sector contractors add the ability to find teaming partners, track competition, and manage the contracting sales pipeline.  The merger expands the reach of GovWin and adds much needed lead information to Deltek’s project initiation, project execution and delivery, and financial management capabilities.

News Analysis: Deltek Offers To Buy Maconomy For $72.7M

Acquisition Consolidates Two Market Leaders In The Project Based Solutions Market

Deltek announced on June 3rd that they would acquire Maconomy for  $72.7M ($3.39/share (DKK 20.50)).  Maconomy is a leading project based solutions (PBS) software company with ~35.6M in revenues (2009) based in Copenhagen, Denmark.  Deltek is a 265.8M revenue (2009) PBS software vendor based in Herndon, VA.   This acquisition is significant because the combined companies:

  • Improve geographic coverage. Maconomy employs over 220 employees with 600+ customers in 58 countries.  eltek reaches 12,000 customers around the world across its portfolio of product lines that includes Costpoint, GCS Premier, Vision, and its Enterprise Project Management suite. Deltek also offers govWin, an online network dedicated to solving common business problems for government contractors.

    Point of View (POV):
    Maconomy’s customers mostly originate from EMEA.  Less than 12% of Maconomy’s revenues come from the US.  Maconomy built good partnerships in Eastern Europe. South Africa, Canada, and India.  Meanwhile, Deltek has a strong base of business in the US public sector and was beginning to move towards greater international expansion.
  • Address a range of PBS vertical industries. Maconomy’s products focus on professional service organizations with about 46% of its revenues coming from consulting and 26% of its revenues coming from marcomm.  Deltek dominates the architecture and engineering space along with government contracting.  The company has shown success in key verticals such as construction services, public sector, and transportation services.

    POV:
    Deltek can boast that 80% of the Engineering News Record 2009 Top 500 Design Firms are customers.  Maconomy’s products X1 and PeoplePlanner demonstrate a strong professional services focus.  Together, they have an opportunity to expand into research organizations, legal services, and audit/tax firms.

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Friday’s Feature: Microsoft Dynamics GP 2010



Latest Release Provides Existing Customers Good Reasons To Upgrade

Redmond, WA based Microsoft Corporation announced its Microsoft Dynamics GP 2010 (a.k.a. GP 11) product on April 20th, 2010.  Available May 1st 2010 in Australia, Canada, the Caribbean, the Middle East, New Zealand, South Africa, the United Kingdom, and the United States, the announcement perfectly coincides with Convergence 2010 in Atlanta, GA.  The latest release delivers on five compelling themes:

  • Improvements in the role tailored user experience. Microsoft enhances and adds action panes, business portals, notifications and work flows by role to keep the experience relevant to how people work.  Unlike legacy ERP systems, the design mantra does not force fit a set of best practices on generic users. Point of view (POV):  Users get started right away with familiar Microsoft user experiences (i.e. Windows 7 and Office 2010).  The 33+ pre-defined roles (e.g April, Charlie, Connie, and Vince) will help users in all sizes of organizations improve productivity from the get-go.
  • Additional investment in analytics and insight. Tighter integration with SQL Server 2008 BI Tools allows users additional control on how they share information.  Pre-built KPI’s, SQL Server reporting (i.e. SSAS cubes), and Microsoft Office forms can be served up with role relevancy.  Reports can then be shared with other users via Sharepoint’s document library. POV: Microsoft Dynamics GP 2010 makes it easy to access key information and insights without expensive configuration and customization.  With over 400 SQL Server reporting services, 200 Excel reports, 80 SRS reports, and pre-populated smart lists, users gain an integrated and embedded BI solution that should meet most requirements.  Refreshable Excel reports take advantage of Power Pivot to save users time and keep information up to date.  Drill back views provide a great way to get insights into GP 2010, Office Excel, and SQL Reporting Services (see Figure 1).
  • Deeper ERP and SCM product set features. Significant enhancements cut across financials, payroll, supply chain management (SCM), and service management.  Financials gain key features such as encumbrance management, project accounting, and lockbox capabilities.  Payroll includes needed updates such as overtime rate calculations and multiple W2 box mappings.  SCM enhancements include automated lot numbering, vendor portals, customer portals, multi-site MRP, and sales forecasting windows.  Service management features add preventative maintenance and labor-payroll integration. POV: This release sets the stage for expansion into the public sector and additional project based industries.  Encumbrance management provides key public sector requirements in fund accounting.  Project accounting enables services based business revenue recognition.  Preventative maintenance features add to service based requirements.
  • CRM Integration and choice of deployment options.  The new GP CRM adapter allows GP users native integration back to Microsoft Dynamics CRM.  More importantly, customers can choose between hosted or on-premise Microsoft Dynamics CRM with the option to migrate to either option over time. POV: Microsoft smartly offers both the on-premise and on-demand versions.  SMB customers still express a preference for on-premise over on-demand.   Customers can also choose to host with partners or directly with Microsoft. More…

News Analysis: Microsoft Dynamics AX Acquires IP For Four Industry Solutions

Microsoft Dynamics Demonstrates Continued Industry Solution Investment

screen-shot-2009-09-22-at-42642-am

Today’s announcement focuses on the Microsoft Dynamics AX product line.  Key facts include:

  • IP acquisition only. Microsoft acquires the intellectual property (IP) for three four industry solutions.  These solutions build on the Microsoft Dynamics AX platform.  Microsoft has not acquired the companies or personnel.   Fullscope, Inc.; Computer Generated Solutions, Inc.; LS Retail, and To-Increase (Columbus IT) remain fully independent and partners within the Microsoft Dynamics ecosystem.

    POV
    :  Unlike other mergers and acquisitions, Microsoft embeds proven and market tested solutions into the core code base.  IP acquisitions provide immediate value without the typical hassles of post-merger integration.  Placing the IP into the main Microsoft Dynamics AX code line ensures consistency.
  • Commitment to upper mid-market requirements. Mid-market sized businesses require deeper levels of vertical and industry functionality.  Today’s announcement demonstrates a commitment to expanding manufacturing, service industries, and retail capabilities.

    POV: Last mile solutions make or break upper-mid-market organizations.  Creating a broader set of common industry capabilities that sit on top of core Microsoft Dynamics AX accelerates both Microsoft and its partners ability to extend vertical capabilities.  Theses solutions come from partners with proven records in delivering to customers.

Acquisition Focuses On Industry IP From Proven Partners

Partner IP selected for acquisition represents the most successful and recognized solutions within the Microsoft Dynamics ecosystem.  Customers can immediately access professional services and process manufacturing capabilities.  Retail solutions will be shortly announced.  Key details for the three industries include:

  • Process manufacturing from Fullscope, Inc. The process manufacturing solution encompasses the entire process manufacturing life cycle and addresses engineer to build.  Key verticals supported include chemicals, food & beverage, life sciences & pharmaceuticals, pulp & paper, and primary metals.  Fullscope garners many Microsoft awards including Partner of the Year for 2007 to 2009.
  • Professional services from Computer Generated Solutions, Inc. The professional services solution provides project based solution (PBS) capabilities that track time and expense, improve project profitability, and optimize resource utilization.  Key verticals supported include advertising & marketing, architecture & engineering, government contracting, legal services, and management & IT consulting services.  CGS was recognized as a 2007 Microsoft Dynamics Inner Circle member.

  • Retail solutions from LS Retail EHF and To-Increase (Columbus IT)*. The LS Retail  solutions focus on delivering end to end retail and POS integration to Microsoft Dynamics AX.  Key features include 6-level item hierarchies, auto item creation, pricing management, purchasing, distribution, loyalty programs, concession management, and hand held support.  The solution is optimized for fashion retailers though other verticals have successfully deployed this product.

    To-Increase A/S, the software development arm of Columbus IT, provides Retail Chain Management solutions.  Key features include both front office (CRM) and back office integration.  The solution includes features such as centralized campaign management, pricing management, inter-company trade, integrated return management, credit risk management, multi-currency, and online Axapta POS integration.  Columbus IT has seen succes in key industries such as Furniture, Gas Stations, Groceries, Healthcare & Cosmetic, and Sports and Fashion.*

The Bottom LineMicrosoft Dynamics AX Users And Partners Can Expect More IP Acquisitions

Building off the experiences from Industry Builders Initiative (IBI) and Certified for Microsoft Dynamics (CfMD), the latest strategy by the Microsoft Dynamics team to accelerate industry vertical innovation for customers and partners provides a pragmatic approach.  Customers expect Microsoft to take the lead in orchestrating common industry capabilities while also providing a stable platform for core Microsoft Dynamics AX capabilities.  Acquiring the IP of proven solutions in the market plays to Microsoft’s strengths by leveraging the ecosystem for innovation while embedding key common business processes.  The result – a more predictable roadmap and a single architecture for customers and partners to expand on.  Pending the success of these IP acquisitions, one can expect more to come as this becomes the model to most efficiently deliver on industry vertical innovation.

Your POV

As an SMB, do you feel Microsoft has the right level of depth in its industry offerings?  Are you in the midst of an SMB ERP vendor selection and are confused by all the choices?  As a partner, do you feel this approach is fair to your investments?  Look forward to your comments or hearing from you.  Post your comments or send a direct email to r at altimetergroup dot com or r at softwareinsider dot org.

* (added 9:23 am GMT-8:00)

Copyright © 2009 R Wang. All rights reserved.

News Analysis: MultiPlus Solutions Acquisition Expands IFS’ Investment In Project Based Solutions

On August 13th, Swedish-based ERP vendor, IFS (OMX STO: IFS), announced its intention to purchase MultiPlus Solutions AS from Qurius International Holding B.V.  IFS, a $383M vendor (2008 revenues), paid an undisclosed sum for the NOK 45.9M or $7.48M (1 NOK = 0.162878 USD ) Norwegian-based project based solutions (PBS) vendor.  Despite the small deal size, the acquisition provides IFS with multiplicative benefits such as:

  • Strengthened presence in key PBS verticals. MultiPlus Solutions delivers PBS for focused industry verticals such as EPC (i.e. Engineering, Procurement, and Construction), marine industries (i.e. shipbuilding, offshore), and project manufacturing industries.  MultiPlus’ industries complement IFS’ seven main industries that include aerospace & defense, utilities & telecom, manufacturing, process industries, automotive, retail & wholesale distribution, and construction contracting & service management.

    POV: IFS gains a significant project based marine ERP solution. In addition to supporting project based operations, the solution also delivers sales support, project management, finance, HR and payroll, logistics, production, and service and maintenance.  Strong capabilities in ship building project management and marine service and maintenance will raise IFS’ capabilities when in competition with other marine focused players such as Logimatic’s MARS and Infor’s Syteline. Expect IFS to gain mind share among industries such as oil and gas construction, ship yard development, and design and engineering firms.

  • Complementary customer base. IFS operates in more than 50 countries and serves over 2,000 customers.  The acquisition adds 100 customers in Norway, Denmark, France, the United States, and China focused on project based  solutions.

    POV:
    Because both vendors have designed their solutions to be database and platform independent, customers can take advantage of product synergies.  IFS customers may seek to adopt MultiPlus’ Drawing and Document Management solution while MultiPlus customers may want to include IFS’ Value Chain Collaboration, Quality Management, and Maintenance, Repair, and Overhaul (MRO) solutions.  MultiPlus can run on Oracle, Informix, Microsoft SQL Server, Microsoft .NET, and various Unix and Linux platforms.  More importantly, customers and the two companies share a similar cultural fit.
  • Momentum towards growth goals. IFS ranks 15th by revenue in the Software Insider IndexTM(SII) among enterprise apps vendors.  CEO, Alistair Sorbie, publicly states his intention to double product revenue by 2013.

    POV:
    Expect acquisitions and continued focus on project based solutions to drive growth.  Success for vendors such as IFS will require growth to $500M in revenue in the next 3 to 5 years.  Building economies of scale will allow IFS to continue its investment in deep micro vertical functionality and expand into more areas of project based solutions.

Recommended course of action – stay the course.

In general, the acquisition bodes well for MultiPlus and IFS customers.  Consequently customers should seek clarifications on issues such as:

  • Timing of code base merge. There have been no formal plans announced to integrate platforms.  Customers should continue to seek guidance on timing.
  • Continued support and future migration. IFS plans to continue its investment but may provide future migration paths.  Customers should seek guidance on how to minimize migration issues in their existing environments
  • Access to MultiPlus functionality. Existing IFS customers who seek to add MultiPlus features may want to seek clarification on whether or not it makes sense to begin deployment today or await future announcements.

The bottom line – PBS space continues to consolidate

Recent acquisitions of QuickArrow by NetSuite OpenAir and growing interest among vendors for solutions that focus more on services industries will increase merger and acquisition activities in the space.  As the developed world shifts from a product based economy to a services based economy, PBS plays a key role in solving the technology needs for a project centric world.  End users can expect more stability as larger vendors acquire PBS specialists for industry specific expertise and key capabilities in project accounting, resource planning, project management, and compliance.

Your POV.

Are you an IFS or MultiPlus customer?  How do you feel about the merger?  Do you feel that IFS will be a good steward?  Were you concerned about MultiPlus’ viability?  Please post your comments here or send me a private email to rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang. All rights reserved.

News Analysis: NetSuite Acquires QuickArrow To Expand PBS Presence

On July 21st, 2009, NetSuite announced its intention to acquire Project Based Solutions (PBS) rival Quick Arrow for $20M.   A few quick facts about the acquisition

  • Existing customers will continue to be supported. NetSuite has committed to supporting the QuickArrow solution.  Customers have the option to move to NetSuite and OpenAir.  NetSuite will not force customers to migrate from Apache.  NetSuite will maintain QuickArrow’s Austin, TX based offices and staff.
    POV: QuickArrow customers should explore the opportunity to align their ERP with NetSuite to take advantage of future synergies and integration points.  Standalone QuickArrow customers should wait for the combined future product road map before evaluating any options.   Expect NetSuite to keep its promise as it would make no sense to acquire a company and not retain the customer base.  NetSuite’s acquisition mitigates financial viability concerns with QuickArrow.
  • Acquisition signals commitment to services industry business. As with the $26M OpenAir acquisition, the addition of QuickArrow will extend NetSuite’s support of professional services verticals such as business and IT consulting, legal, accounting, and government contracting.  NetSuite’s services resource planning (SRP) capabilities include investments in key processes such as marketing, sales, quotes/orders, projects, services delivery, charges, invoices, and revenue and finances.
    POV: QuickArrow adds another 35,000 users bringing the estimated total number of subscribers to about 80,000.  This significant market presence in North America gives NetSuite the opportunity to create not only economies of scale in product development, but also additional capabilities such as international expansion, third party project tool integration, and regulatory compliance support.

The bottom line – NetSuite signals its intent to go on the offense for the services industry business

Project based solutions delivered in SaaS provide rapid benefits and allow vendors such as NetSuite to go on the offensive into the install bases of larger competitors such as SAP and Oracle.  Case in point, NetSuite’s two acquisitions in the PBS space removes key competitors and provides it with 1000 customers in a growing market centered around project based businesses.  QuickArrow brings key customers such as Symantec, Genesys, Thomson Reuters, Informatica, and SalesForce.com.   Given NetSuite’s track record, one may expect the ERP SaaS leader to continue to make acquisitions to round out its capabilities in Project Based Solutions.  Expect other SaaS competitors and on-premise giants to follow suit as this market heats up and SaaS becomes a preferred delivery option.

Your POV

Are you a QuickArrow or former OpenAir customer and want to share your experiences?  Do you want to learn more about the PBS market?  Interested in speaking at a future conference or event?  Please post or send your POV to rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang. All rights reserved.

Monday’s Musings: Why On-Premise Vendors and SI’s Should Go on the Offense with SaaS

On-premise vendors still see SaaS as a loss leader due to huge ramp up and punishing revenue recognition rules

When it comes to the topic of SaaS, many on-premise vendors appear to be living in denial, hoping that SaaS fails, and/or creating confusion in the market place.  These tactics have merit as a shift to SaaS requires plenty of work with minimal return and a destruction – disruption of the current business model.  In conversations with 61 vendors and building off of SaaS evangelist Jeffrey Kaplan’s post (July 2, 2009, Seeking Alpha – “From the Vendor’s Point of View: Why SaaS Sucks”), vendors who have made this transition or have started the investment put in heavy lifting in these activities must:

  • Re-architect apps
  • Find balance between configuration and optimization of SaaS platform
  • Design product road map and rollout strategy
  • Determine SLA’s
  • Identify a hosting strategy
  • Craft pricing and licensing policies
  • Harmonize SaaS pricing with On-premise and other models
  • Create go to market strategy
  • Alleviate channel conflict with partners, resellers, distributors

After all this work to be ready for SaaS deployments, vendors also discover that FASB SOP 97-2 software revenue recognition rules prohibit them from immediately recognizing multi-year contracts. Even worse, subscription revenue can only be recognized on a month-to-month basis – leading to a long road to profitability.  In fact, vendors such as Lawson, estimated a 7 to 10 year break even period for a full SaaS model.  No wonder Harry Debes was fired up on how SaaS could be a fad in his interview with Victoria Ho at ZD Net last year.  In private, most software executives also echo such sentiments and wholeheartedly agree with his comments about the business model challenges.

Yet, SaaS adoption moves beyond the Tipping Point in 2009

However, the confluence of recessionary forces, stalled innovation from many on-premise software vendors, and success of early SaaS pioneers such as SalesForce.com and NetSuite has put Software-as-a-Service into the mainstream.  Vendors can no longer resist the move to SaaS without negatively impacting their license sales and customer mind share.   Additional facts highlight the shift:

  • Forrester State of Enterprise Software 2009 survey results confirm significant adoption rates from 2008 to 2009. Of 1000 IT executives and decision-makers, 24% were interested/considering, 11% implemented or planning to expand, and 5% piloting SaaS solutions (see Figure 1).
  • Clients continue to vote with their budgets despite marketing FUD by many on-premise vendors on the perils of SaaS. Success Factors‘ win at Siemens for 420,000 employees, Workday‘s win at Flextronics for 240,000 employees, and Ultimate Software’s win at P.F. Chiang’s for 30,000 employees reinforces how SaaS is more than CRM and SMB.
  • Concerns over SaaS have dropped significantly over the past year. Successful deployments mitigate concerns and highlight the attitudinal shift towards acceptance.  Major decreases include integration issues (43%), total cost (31%), lack of customization (31%), complicated pricing models (30%), performance (23%), can’t find the specific application (20%), security (17%), and lock in with existing vendor (17%) (see Figure 2).

Figure 1: Users expect to increase SaaS adoption in 2009

saas-deployment-2009

Source: Forrester

Figure 2.  Concerns over SaaS have dropped significantly over the past year

2009 Enteprise and SMB Survey - SaaS Concerns Declinet

Source: Forrester

Defensive SaaS strategies by vendors miss the opportunity to take market share.

As customer’s continue to demand SaaS solutions for rapid deployment, pay-as-you-go pricing models, and timely innovation, traditional on-premise vendors without a SaaS offering must now explain, defend, or develop their own SaaS story.  Concerns about the impact of SaaS have many vendors in defensive mode.  Defensive strategies have included:

  • Creating counter marketing about SaaS and the viability of the market
  • Responding with hosting options and financing options
  • Building SaaS options for a limited set of popular SaaS solutions such as sales force automation (29%), strategic HCM (29%), and customer service and support (27%) (See Figure 3.)

At first glance, mega vendors such as SAP and Oracle have started with the first two points and are evolving to the third.  They aim to counter the success of Ariba, SalesForce.com, Success Factors, Taleo, Workday, and Ultimate Software with their own offerings.  SAP’s OnDemand for LE release and John Wookey’s ComputerWorld UK interview by Mike Simons, confirms that the strategy will include “CRM on-demand and e-sourcing, with expense management set for a 2010 release.”  Wookey’s approach appears to first shore up areas where SAP customers have been defecting and then worrying about what’s next (see Note 1).  Meanwhile, discussions with Oracle product teams also hint that a release of 5 to 9 SaaS offerings to complement Oracle Siebel CRM OnDemand offerings could be announced soon.  This defensive strategy shores up competitive SaaS solutions such as incentive comp, procurement, and strategic HCM.

Figure 3.  Rate of adoption of key SaaS solutions show significant interest in CRM and other areas

2009 Enterprise and SMB Survey SaaS Interest Areas

Source: Forrester

The bottom line -SaaS gives software vendors and system integrators an opportunity to take market share.

Instead of playing defense, vendors should look at the opportunity to take market share through SaaS.  SaaS vendors and their investors have realized they can target any install base and win by providing compelling functionality.  Why shouldn’t on-premise vendors bite the bullet and go on the offense?  To make this work software vendors would want to take advantage of their partner ecosystems and customers to extend capabilities beyond what’s being delivered in on-premise.  Vendors must make an initial investment in a SaaS/PaaS platform, agile development methodologies, and integration technologies to support hybrid deployment options.  From there, white spaces in the product road map will provide direction into the future opportunities such as vertical and other pivot points that have not been well served.  SAP’s acquisition of Clear Standards for carbon compliance, NetSuite’s acquisition of OpenAir for project based solutions, and Intuit’s acquistion of Entellium for CRM highlights examples of going on the offensive with SaaS.  Of equal importance, system integrators can shift the balance of power and deliver new IP via SaaS solutions while reducing their dependency on the mega vendors.

Recommendations: 7 best practices for crafting a SaaS strategy at an on-premise vendor

Imagine you could start from scratch and build a new software company.  That’s the question I posed to 61 software executives this year.  Most stated they would start with a SaaS deployment option for the scale and the business model.  Now what to do if you are an on-premise vendor?  Answer – build a separate SaaS software division within an on-premise software company.  This could be the next trend among the on-premise vendors for both investment and revenue recognition reasons.  What would be a good strategy:

  1. Reuse similar business process parts as the on-premise product
  2. Harmonize the data model and common objects
  3. Build a brand new RIA based UI and UX
  4. Assume that all data sources will be heterogenous
  5. Design the product to run stand alone
  6. Attack white spaces of new growth in a competitor’s install base
  7. Keep a PaaS platform in mind to attract partners and customers to extend the solution

Your POV.

Totally turned off by SaaS? In the midst of a SaaS strategy? Ready to embark on a SaaS strategy?  If you need assistance, don’t hesitate to reach out?  Please post your point of view here or send me a private email to rwang0 at gmail dot com.

Note 1: The large enterprise (LE) SaaS platform will not come from NetWeaver or SAP’s SME Business by Design (ByD) technology, but come from the acquired Frictionless platform.  While this may leave some SAP customers concerned, Wookey and product super stars Kevin Nix and Peter Lim (of Siebel fame) counter by highlighting where SAP components will be reused and highlighting the home base integration advantage.

As also seen in the July 14th, 2009 SandHill.com”Moving to a SaaS Offensive”

Copyright © 2009 R Wang. All rights reserved.

Speaking Engagement: Tenrox Webinar – Capacity Planning for Project-Based Organizations

Exclusive Webinar Invitation

Exclusive Webinar Invitation EARN 1 PDU Register Now Forrester Research

Guest Speaker : R “Ray” Wang, Forrester Research, Vice President & Principal Analyst Current economic conditions drive enterprises to shift their workforce to both a more decentralized and a free agent model. Meanwhile, economic forces are leading to the creation of more agile work models. As this pool of skilled workers increasingly becomes independent of specific corporations, real time workforce planning is now a strategic necessity especially for organizations that have increasingly collaborative project work. Today, location and availability are not the only primary drivers for capacity planning; matching skill-sets, areas of interest, past experience, and real-time staffing has emerged as important workforce planning factors to consider. Join us on March 25, 2009 to learn how these trends are playing out and how project based solutions can play a role in addressing these real-time workforce planning challenges.

We will discuss:

  • The challenges involved in managing a decentralized project-driven workforce
  • New work methods and resource-types such as project-centric, divided, and independent resources.
  • The “shared project workforce”
  • Brief introduction to Tenrox Workforce Management & Planning Software module

Register Now

Who Should Attend: Senior executives at VP, CIO, and Director levels interested in project management applications or in charge of optimizing resource deployment and sourcing.

Date: Wednesday, March 25, 2009

Time: 10 am Pacific/ 1 pm Eastern

Duration: 1 hour

Register now

Sponsored by:


Ray Wang

About the Speaker: Ray serves Business Process & Applications professionals. He analyzes trends in enterprise resource planning (ERP) for the enterprise and midmarket. He also delivers strategic guidance in software licensing and pricing, researches business processes such as the order management cycle and continuous customer management, and assesses functional areas such as customer data integration and the impact of service-oriented architecture (SOA) on packaged applications. With this understanding of the overall ecosystem of solutions, technology, and system integrators, Ray provides strategy and guidance for many clients navigating through the vendor selection process. In 2008 Ray was recognized by the Institute Of Industry Analyst Relations (IIAR) as Analyst of the Year.

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Speaking Engagement: Investing in Project-Based Solutions to Weather the Current Economic Climate

Exclusive Webinar Invitation

Exclusive Webinar Invitation

Register Now

Forrester Research

Guest Speaker :

R “Ray” Wang, Forrester Research, Vice President & Principal Analyst

Project-based solutions (PBS) adoption continues to be driven by specific microverticals in professional services, construction, real estate, and the public sector. A worsening economic climate ups the ante on features that enforce compliance and efficiency. The preference for comprehensive solutions will drive demand for tools that apply program management techniques, deliver on integration and collaboration, and provide new deployment options.

Enterprises considering solutions along the project life cycle should seek industry-specific solutions from vendors who embrace the vision of a world built around projects.

Join us on December 10, 2008 to learn how project-based solutions can help weather the current economic climate.

We will discuss:

  • Business drivers to focus on compliance and efficiency
  • Solutions to address broader project-based requirements
  • PBS to complement program discipline
  • Clients seeking deeper integration and collaboration
  • Hybrid deployment options emerging to reduce costs
  • And a brief demo of how the Tenrox Project Workforce Management solution addresses these issues and concerns

Register Now

Who Should Attend:

Senior executives at VP, CIO, and Director levels interested in project management applications or in charge of implementing and maintaining processes, recognizing revenue, compliance with global labor laws, optimizing business processes and their speed, and optimizing resource deployment and sourcing.

Date:

Wednesday, December 10, 2008

Time:

9 am Pacific/ 12 pm Eastern

Duration: 1 hour

Register now

Sponsored by:


Ray Wang

About the Speaker:

Ray serves Business Process & Applications professionals. He analyzes trends in enterprise resource planning (ERP) for the enterprise and midmarket. He also delivers strategic guidance in software licensing and pricing, researches business processes such as the order management cycle and continuous customer management, and assesses functional areas such as customer data integration and the impact of service-oriented architecture (SOA) on packaged applications. With this understanding of the overall ecosystem of solutions, technology, and system integrators, Ray provides strategy and guidance for many clients navigating through the vendor selection process. In 2008 Ray was recognized by the Institute Of Industry Analyst Relations (IIAR) as Analyst of the Year.

Speaking Engagement: Foresight 2008

Foresight 2008 is the only virtual forum designed to provide project-focused professional services firms with the tools they need to navigate current market challenges, increase profitability and win more work contracts.

Get information on everything from improving utilization to increasing revenues and retaining customers and learn tips and tricks from our lineup of world-class experts and industry leaders.

Foresight 2008 Professional Services Forum is a unique interactive conference that offers attendees access to experts, peers and resources in a single location.

Registration is FREE and you control your level of participation. Drop in for one session or participate all day!

Turn today’s challenges into opportunities you can implement tomorrow. Foresight 2008 – Professional Services Forum. Register today!

Foresight 2008 Agenda

Foresight 2008 Keynote Speaker: Ray Wang, Forrester

Top 10 Ways Services Firms Can Harness Change To Create Profit

11:00 a.m. to Noon

Ray Wang, Vice President, Principal Analyst, Forrester. With his understanding of the overall ecosystem of solutions, technology and system integrators, Ray provides strategy and guidance for clients navigating through the vendor selection process. In 2008 Ray was recognized by the Institute Of Industry Analyst Relations (IIAR) as Analyst of the Year.

AE Keynote Speaker: Kim Kennedy, McGraw Hill

AEC Outlook

1:00 p.m. to 2:00 p.m.

Kim Kennedy, Manager of Forecasting for McGraw-Hill Construction Research & Analytics, the research and consulting business unit within McGraw-Hill Construction. She has been a member of MHC Analytics for ten years, but has more than 25 years of professional experience in construction economics, macroeconomics, consumer, and labor economics.

Consulting Keynote Speakers: Gail Steinel & Jeanne Urich

Turning a Volatile Market into a Growth Opportunity

1:00 p.m. to 2:00 p.m.

Gail P. Steinel is the former global managing partner and founding member of Arthur Andersen’s business consulting practice from 1984 to June 2002 where she managed 10,000 people in 85 countries. From July 2002 through February 2007 she was Executive Vice President with BearingPoint, Inc., a management and technology consulting firm that provides application services, technology solutions and managed services to companies and government organizations, where she had responsibility for overseeing the global commercial services business unit. Currently Gail is the Owner of Executive Advisors, which provides consulting services to chief executive officers and leadership seminars to companies.

Jeanne Urich is a management consultant specializing in Service organization improvement for small to large technology companies. She has been a corporate officer and leader of the Worldwide Services Organizations of Vignette, Blue Martini and Clarify. In each of these roles, she led the growth of their Professional Services, Education, Account Management and Alliances organizations and was responsible for dramatically increasing Services revenue, profit and utilization while maintaining a balanced relationship with system integration partners.

AE Keynote Speaker: David Burstein, PSMJ

Controlling Overhead To Strengthen Your Firm

3:00 p.m. to 4:00 p.m.

David Burstein, PE. Director of Client Services, PSMJ Resources, Inc. David is a consultant with PSMJ Resources, Inc., a leading provider of consulting services to the design and construction industry. David has three decades of design firm experience in a variety of management positions including president of two large engineering companies. As a PSMJ consultant, he has helped dozens of design firms achieve breakthrough improvements in their businesses.

Consulting Keynote Speaker: Joe Kornik, Consulting Magazine

New Economy, More Competition. Time for a Strategy Refresh

3:00 p.m. to 4:00 p.m.

Joe Kornik is Editor-in-Chief of Consulting magazine where he oversees the editorial operations and mission of the magazine. Mr. Kornik is also responsible for the magazine’s Web site (www.ConsultingMag.com) and all live and virtual events, including the Consulting Summit – the largest annual gathering of management consultants in North America

IPO Watch: Deltek Files S-1

After much anticipation since New Mountain funds took the company private with a 75% stake in 2002, Herndon based Deltek Systems filed its S-1 on May 8th 2007. As a Project Based Solution (PBS) vendor, nothing could be more fitting than coming out with the NASDAQ symbol “PROJ”. While private, Deltek remained active and acquired Wind 2 in 2005 and Welcom in 2006 leading to a doubling of its size and customer base. The results of this acquisition and maintenance strategy speak for themselves — software license growth up 215.7%, maintenance increases of 89.1%, and overall revenues up 153.33% since 2002 (see Figure 1.) Key to Deltek’s future will be the expansion into new vertical areas beyond its strengths in public sector, A/E/C, non-profit, and research. Deltek’s key competitors include industry stalwart Primavera, .NET competitor Epicor, and Microsoft with its Project and Solomon offerings.

Figure 1. Deltek Consolidated Financials as Filed in S-1

2002 2003 2004 2005 2006
(in thousands, except per share data)

Statement of Operations Data:

REVENUES:

Software license fees

$ 23,742 $ 36,636

td>

$ 34,934 $ 45,923 $ 74,958

Consulting services

18,063 22,842 28,585 41,212 66,573

Maintenance and support services

43,987 47,778 54,178 63,709 83,172

Other revenues

4,512 2,091 3,516 2,112 3,565

Total revenues

90,304 109,347 121,213 152,956 228,268

As the Project Based Solutions (PBS) space heats up, expect rapid consolidation in the next 3 years among vendors such as Agresso, Artemis Software, Augeo Software, BST Global, CA (Computer Associates)Niku, Computer Methods International Corp. (CMiC), Deltek, Dexter & Cheney, Epicor Software, IFS, Lawson, Maconomy, Maxwell Systems, Mercury Software, Meridian Systems, Microsoft Dynamics, Oracle, OpenAir, Pacific Edge, Planisware, PlanView, Primavera Systems, ProSight, Sage Software, SAP, Softrax, Tenrox, and Viewpoint Software (formerly BidTek). According to Forrester Research, the PBS market is expected to grow to $6.5B by 2010.

(The personal contents in this blog do not reflect the opinions, ideas, thoughts, points of view, and any other potential attribution of my current, past, or future employers.)
Copyrighted 2007 by R Wang. All rights reserved