Posts Tagged ‘Amdocs’

Quarterly Financial Tracker: Q3 CY 2010 Enterprise Software Vendors Solidify Performance Turnaround

The super majority (26 of 27) of publicly traded software vendors in the Software Insider Index® delivered turnaround stories for Q3 Cy 2010 year-over-year (YoY) performance.  SaaS vendors and middleware vendors led the charge with solid double digit gains against tough comps.  Performance of on-premises apps vendors reflected the easy comps from a dismal 2009 downturn.  An analysis of the 2010 CY Q2 2010 results show:

SaaS Vendors Continue To Crush All Expectations In Subscriber Growth (Figure 1.)

  • SaaS vendors showed massive gains in subscription revenue at on-premises vendor expense.  SuccessFactors (33.22%) continued the lead in quarterly revenue gains followed by a record breaking Salesforce.com quarter (29.81%).  Kenexa (25.97%) and RightNow (25.46%) also demonstrated above 25% YoY quarterly gains.
  • Subscription license growth has become the norm for both SaaS and On-Premises vendors looking at SaaS revenue.
  • On premises vendors w/ subscriptions showed traction.  SAP reported $101M of subscription revenue and JDA software reported $5.758M in subscription revenues.
  • Of note, Saba (3.89%) and Kenexa (25.97%) were added to the Software Insider Index® this quarter

Figure 1.  SaaS Vendors Continue To Crush All Expectations In Subscriber Growth (Right click to view full image)


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

Traditionally On Premises Apps Vendors Fare Well As Technology Spending Picks Up

  • JDA Software (65.29%) continues to benefit from retail and supply chain vendor consolidation.  However, JDA’s growth came from maintenance revenue, not new license gains.  In fact, the ratio of maintenance to license revenues remains dangerously high at 3.94.  The good news – focused efforts around SaaS options also grew.   Meanwhile, rival Manhattan Associates saw gains with (13.35%) YoY quarterly growth with respectable new license gains.
  • SAP (19.74%) showed a huge turnaround with significant gains.  However, new license growth came mostly from analytics revenues and not from core apps such as ERP, CRM, SCM.
  • Traditional bellwethers CA (17.21%) and Oracle (15.82%) showed above 15%, healthy YoY quarterly gains.
  • SMB vendors showed mixed results with Epicor (16.28%) leading the pack through gains in Epicor 9 and significant new license growth of 47.07%.  Epicor and Microsoft Dynamics (not listed) have been beneficiaries of the two-tier apps strategy movement.  On the other hand, IFS (5.34%), Lawson (3.35%), and Deltek (1.74%) barely moved the needle in revenues.  Deltek’s 21.38% new license growth reflected a structural shift in the business as new license gains make up maintenance losses.
  • Four vendors continue to enter dangerous trends with maintenance to license revenue ratios above 3: Manhattan (4.42), JDA (3.94) Lawson (3.86), Oracle (3.24)

Figure 2. On Premises Apps Vendors Fare Well As Technology Spending Picks Up (Right click to view full image)


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

Middleware Vendors Benefit From Optimization Mandates (Figure 3.)

  • VMware (45.84%), Informatica (30.68%), and Software AG (28.89%) crush numbers as demand for middleware, virtualization, and integration continue to gain traction.
  • All middleware vendors maintain healthy maintenance to license revenue ratios below 2.0:  SoftwareAG (.65), VMware (1.08), Informatica (1.31), Progress (1.82).

Figure 3. Middleware Vendors Benefit From Optimization Mandates


(Right click to view full image)  Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
The Bottom Line – Enterprise Software Is Back

Refresh cycles, demanding business requirements, and shift to hybrid deployment options fuel growth for this quarter.  Organizations continue to free up budget to support legacy apps optimization to fund innovation projects.  SaaS will be the predominant entry point for new innovation while organizations seek two-tier approaches to consolidate legacy apps.  The theme for enterprise software customers remains “Show us the business value!”

Your POV.

Are you increasing your spending on enterprise software?  Want to know more about a specific vendor’s financial health? Can we help you work with a specific vendor?  Please post or send on to rwang0 at gmail dot com or r at softwareinsider dot org and we’ll keep your anonymity.  Further, let us know if you need help with your next gen apps strategy, overall apps strategy, and contract negotiations projects.  Here’s how we can help:

  • Designing a next gen apps strategy
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing
  • Assessing SaaS and cloud
  • Evaluating Cloud integration strategies
  • Assisting with legacy ERP migration
  • Planning upgrades and migration
  • Performing vendor selection
  • Renegotiating maintenance

Disclaimers* Not responsible for any math errors or erroneous revenue information.

1. Calendar year estimates based on the quarter nearest the calendar year.

2. Why these vendors than others?  Easy – because I cover them.

3. Exchange rates as of February 25th, 2010 for vendors who have not published quarterly conversions.  Not responsible for currency flux.

4. Estimates created for privately held vendors, when listed.

Not sure? Please read the quarterly filings yourself =)

Related resources and links

2010 Calendar Year Q2

2010 Calendar Year Q1

Software Insider Index™ (SII): 2009 SII Top 35 Enterprise Business Apps Vendors™

2009 Calendar Year Q4

2009 Calendar Year Q3

2009 Calendar Year Q2

2009 Calendar Year Q1

Software Insider Index™ (SII): 2008Software Insider IndexTM (SII): SII Top 30 Enterprise Business Apps VendorsTM & SII Top SaaS Business Apps VendorsTM SII Top 30 Enterprise Business Apps Vendors™

2008 Calendar Year Q4

2008 Calendar Year Q3

2008 Calendar Year Q2

2008 Calendar Year Q1

Reprints

Reprints can be purchased through the Software Insider brand or Constellation Research, Inc.  To request official reprints in PDF format, please contact r@softwareinsider.org.

Disclosure

Although we work closely with many mega software vendors, we want you to trust us.  A full disclosure listing will be provided soon on the Constellation Research site.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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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Research Report: Microsoft Partners – Before Adopting Azure, Understand the 12 Benefits And Risks

It’s All About The Cloud At WPC10

Attendees at this year’s Microsoft Worldwide Partner Conference 2010 in Washington, D.C. already expect Windows Azure development to be a key theme throughout this annual pilgrimage.  Microsoft has made significant investments into the cloud.   Many executives from the Redmond, WA, software giant have publicly stated that 90% of its development will be focused on the Cloud by 2012.  Delivery of the Cloud begins with the Azure platform which includes three main offerings:

  1. Microsoft Windows Azure
  2. Microsoft SQL Azure (formerly SQL Services)
  3. Microsoft Windows Azure Platform: AppFabric (formerly .NET Services).

Therefore, Microsoft partners must determine their strategy based on what part of the cloud they plan to compete in and which Azure services to leverage.  As with any cloud platform, the four layers include infrastructure, orchestration, creation, and consumption (see Figure 1):

  • Infrastructure. At a minimum, Windows Azure provides the infrastructure as a service.  Data center investments and the related capital expense (capex) is replace with oeprational expenses (opex).  Most partners will take advantage of Azure at the infrastructure level or consider alternatives such as Amazon EC2 or even self provision hosting on partner servers and hardware.
  • Orchestration. Microsoft Windows Azure Platform: AppFabric delivers the key “middleware” layers.  AppFabric includes an enterprise service bus to connect across network and organizational boundaries.  AppFabric also delivers access control security for federated authorization.  Most partners will leverage these PaaS tools.  However, non-Microsoft tools could include advanced SaaS integration, complex event processing, business process management, and richer BI tools.  The Windows AppFabric July release now supports Adobe Flash and Microsoft SilverLight.
  • Creation. Most partners will build solutions via VisualStudio and Microsoft SQL Azure (formerly SQL Services).  Other creation tools could include Windows Phone7 and even Java.  Most partners expect to use the majority of tools from Microsoft and augment with third party solutions as needed.
  • Consumption. Here’s where partners will create value added solutions for sale to customers.  Partners must build applications that create market driven differentiators.  For most partners, the value added solutions in the consumption layer will provide the highest margin and return on investment (ROI).

.NET:.NET (tongue and cheek here) – Microsoft partners and developers can transfer existing skill sets and move to the cloud with ease, once Microsoft irons out the business model for partners on Azure.

Figure 1. Partners Must Determine Which Layer To Place Strategic Bets

screen-shot-2010-03-22-at-105927-pm

More…

Wednesday’s Whispers: People Whispers – May/June 2010

PEOPLE WHISPERS: MOVES, PROMOTIONS, AND MILESTONES*

The tech sector continues to expand.  Significant job moves in May and June highlight the emerging  number of career opportunities.  As always, thanks for your emails and alerts.  If you’ve got a change or know of a promotion, keep dropping me a line! If you need a referral, and we’ve worked together in the past, don’t hesitate to reach out to me via Linked In.

Lynn Anderson is now CEO at Coaching4Abundance. She formerly ran the Oracle Services Group for Capgemini US, LLC and served in various roles over 11 years. Prior roles include work at Southern Companyand as a Scientific Analyst/Captain in the US Air Force

Diana Benedikt became Managing Director at Scale Business Group in February 2010.  Prior roles include a 3 year stint at Venture Insight Advisors.

Kelly Berkley became Sr. Marketing Manager at USIS in January 2010.  Prior marketing roles include Research Associate at New Media Strategies: A social media marketing agency and market researcher at Robbins-Gioia.

Justin Che became General Manager for Emerging Businesses, STS SBU at Digital China in April 2010.  Justin’s background includes stints as TAM for APAC at Managed Objects , and R&D work at NCNIPC.

Gerard Corbett, APR, Fellow, PRSA became Blogger and Thought Leader at Career Thought Leaders Consortium in January 2010.

Jim Deters is now Board Member Deming Center for Entrepreneurship at University of Colorado at Boulder.  Jim’s startup and entrepreneurial experiences include President & Co-Founder at Ascendant Technology and the software company CONET USA.=

Carl Doty became Vice President, Enterprise Strategy at Merkle in January 2010. Carl’s research experience comes in hand with positions as VP and Research Director at Forrester Research and Director at Stratgic Solutions Group, LLC

Sharath Dorbala is now Vice President, Technology Strategy at Amdocs.  He’s served various roles over his 5 year career including Vice President, Product Management and Strategy and Director of Product Management and Strategy.  Previous product roles include Group Manager, Product Management and Strategy at Oracle Corporation.

Kersten Geiger became Global Head of Industry Solutions at SAP. She formerly served in various roles including Executive Vice President of Industry Solution Management at SAP.

Quarterly Financial Tracker: Q1 CY 2010 – Software’s Back With Double Digit Gains In License Growth

The majority of 21 publicly traded software vendors managed to show year-over-year (YoY) gains over the dismal beating from calendar year (CY) Q1 2009.  SaaS vendor maintained their double digit gains while on-premise vendors mostly showed positive traction (see Figure 1) and (see Figure 2).  Highlights for the 2010 CY Q1 2010 results:

  • Big gains in YoY license revenue for on-premise vendors such as Manhattan Associates (188.64%) and  JDA (87.43%) reflect the investments being made in retail and supply chain.  Manhattan’s gains are the greatest across the board as they demonstrate a turnaround from last year.
  • Meanwhile, SMB bell-weathers Lawson (28.10%), Deltek (24.75%), and Epicor (23.21%) signal return of key license sales in on-premise.  Concurrently, Oracle (20.45%) and SAP (11.oo%) demonstrate a strong recovery in enterprise license revenue growth in on-premise.
  • Maintenance fee growth for on-premise vendors hold steady with mostly single digit YoY gains except JDA Software (32.71%) and SAP (11.34%).
  • SaaS vendors kept steady growth in the double digits for subscription revenue. UltimateSoftware (27.80%), RightNow (26.80%), Salesforce.com (24.47%), and SuccessFactors (24.29%) led the charge.
  • Overall growth rates on a YoY revenue basis have stabilized for most SaaS vendors at the mid teens to twenties.
  • Of interesting note, professional services fees for on-premise vendors match or double the license revenue. SaaS vendor professional services revenue are well below 1x license revenues, closer to 10% or less.
Figure 1.  Software Insider Index® On Premise Vendors: Q1 CY 2010*


(Right click to view full image)
Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
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Software Insider Index™ (SII): 2009 SII Top 35 Enterprise Business Apps Vendors™

2009 Results In Major Revenue Declines For On Premise And Officially The Year Of SaaS

A review of last year’s financial performance should erase any doubts about the viability of SaaS as a deployment option and a business model.   Traditional on-premise business apps vendors took the brunt of the beating earlier in the year but have slowly recovered.   This year’s Software Insider Index™ (SII) highlights two major themes:

  • Legacy On-Premise Vendors Retain Operating Margins But Lose Revenue Share. Almost every on-premise software vendor lost revenue on a year-over-year (YoY) basis in 2009 (see Figure 1).  IFS (3.87%) and SAS Institute (2.21%) grew in the midst of the financial onslaught.  SAP is still double the size of Oracle in apps revenue!  Vendors such as QAD (-31.42%) and Manhattan Associates (-26.84%)saw the worst YoY declines (see Figure 2).  Most vendors relied on their maintenance and support to bolster their revenues. For example, CDC, Epicor, Exact, Lawson, Manhattan, Oracle, QAD, and SAP exceeded a 1:2 ratio in new license to maintenance revenue.  Why?  Customers chose not to upgrade, purchase new licenses, and expand their footprint.   Despite the downturn, most vendors survived with operating margins between 10% an 50%, well above those achieved by SaaS vendors.   Traditional vendors clearly felt pressure from SaaS/Cloud.
  • SaaS Models Prove Themselves In 2009. Meanwhile, every SaaS vendor grew, from Ariba with the lowest YoY revenue growth (0.44%) to SuccessFactors with the highest (38.73%). Overall the SaaS vendors tracked in the 2009 SII grew 7.98% in YoY revenue. SaaS deployments expanded in all areas from CRM to HCM to spend management. Of note, Salesforce.com exceeded the $1.3B mark, a milestone for the SaaS industry.

Figure 1. Software Insider IndexTM (SII) Top 35 Enterprise Business Apps VendorsTM (Calendar Year Revenue)

screen-shot-2010-03-18-at-110717-am

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Event Report: Salesforce.com Pushes Social CRM Technology — But Don’t Expect Companies To Be Successful With Tools Alone

This post was co-written with Jeremiah Owyang, Partner and Colleague at Altimeter Group

Mark Benioff and Jason from TwitterWonder what your high school mascot guy did when he grew up? He went to enterprise software.Salesforce Demo AreaMarc Benioff of SalesForce

Service Cloud 2 Answers IntegrationService Cloud 2 InStranet Knowledge IntegrationService Cloud 2 Google IntegrationService Cloud 2 Twitter Integration

Above: Pictures from Salesforce’s event

Salesforce.com launches a new set of social apps that make CRM connected to the social web. So what does it mean?

Salesforce.com’s Twitter integration and application launch helps brands monitor what’s being said. Yet despite the fanfare, the application lacks a pre-determined way to identify the profiles of Twitter profiles and primary keys within the CRM database. Secondly, the system doesn’t provide a default setting to prioritize the influence (such as more followers) vs a profile with few followers -limiting the ability for brands to prioritize their support offerings.

Salesforce.com’s “Answers” product is a threat to community platforms that offer support-heavy features. Vendors like Lithium (although a SF partner) Jive, Telligent, Awareness, and Mzinga are impacted. Brands that have a strong Salesforce.com implementation will first look to their CRM vendor for social support offerings -reducing the pipeline for community platform new comers. The newly minted “Knowledge” product, which harvests the IP from customer service reps, and customers themselves is also a direct threat to wiki creators such as SocialText, Atlasian. Those vendors should quickly bolster their marketing efforts to demonstrate how they are differentiated. Client server based contact center products such as Amdocs, Cisco, and Genesys, will face increased competition as business users choose to move to platforms that deliver provide greater social aspects tied to user generated content.

Despite Salesforce.com’s technical announcement, this doesn’t mean success for their customers. Technology is only 20% of any enterprise change, the other 80% is culture, process, roles, and strategy change -key requirements that Salesforce.com is not equipped to provide. As a result, don’t expect customers that don’t have the right program in place to take advantage of these technology offerings -instead expect vendors with a heavy professional service offering to empower a company to truly embrace customers in the social web.

Overall, Salesforce.com is above and beyond other CRM vendors in terms of connecting to the social web. Yet despite their ability to connect with new channels, they lack a full solution to empower brands to make the cultural changes within their organizations. Expect other CRM vendors such as Oracle’s Social CRM offerings and Microsoft Dynamics CRM to do a “me too” in coming months as others jump on the social CRM bandwagon.

For the CIO: Ray’s Take: The coming wave of social CRM initiatives and cloud based service solutions require CIO’s to rethink about their overall apps strategies to support hybrid deployment options. Rapid proliferation of SaaS solutions inside the organization requires strong CIO leadership in coordinating data, business process, and meta data integration strategies. Moreover, now will be the time to begin master data management activities that will support social CRM initiatives and resolve profile identification and entity resolution issues. Take control now or lose control forever.

For the CMO: Jeremiah’s Take: Marketing has spread beyond awareness and lead generation -support IS marketing. Yet to be successful, your internal processes must quickly meld PR and support to provide a seamless experience to the customer. Be proactive, not reactive: Use brand monitoring technologies to head off issues before they volcano into PR disasters.

Your POV

Ready to put your service strategy to the test with Salesforce.com’s Answers product or another social CRM tool? Where are you today in your efforts?  Post your comment here or reach me direct at r at altimetergroup dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang. All rights reserved.

Software Insider Index™ (SII): SII Top 30 Enterprise Business Apps Vendors™ & SII Top SaaS Business Apps Vendors™

Now with most of the craziness of Q4 behind us, its time to unveil the Software Insider Indices:

  1. SII Top 30 Enterprise Business Apps Vendors provides a snapshot of an ongoing vendor ranking by revenue.  Some vendors are private and of course not on this list, unless there’s a reasonable estimate.
  2. SII Top 5 SaaS Business Apps Vendors. provides a snapshot of an ongoing vendor ranking by revenue.  Some vendors are private and of course not on this list, unless there’s a reasonable estimate.

So drum roll please…

2008-sii-top-30-enterprise-business-apps-vendors-rev-23

Software Insider Index: Top 30 Enterprise Business Apps Vendors™

The 2008 SII® Top 30 Enterprise Business Apps Vendors*

  1. SAP $14,689.9M (€11,567.0M)
  2. Oracle (Apps Revenue Only) $8,418.3M (est.)
  3. Computer Asssociates $3,248M
  4. Amdocs $3,162M
  5. Intuit $3,107M
  6. Infor $2,200M (est.)
  7. Sage Group (oct. fiscal year) $1,893.4M (£1,295.0)
  8. Microsoft Dynamics $1,154.5M (est.)
  9. SalesForce.com $1,076.8M
  10. Lawson $843.2M
  11. Agresso $500.4M (€ 393.5M)
  12. Epicor Software $477.8M
  13. Activant $432M (est.)
  14. JDA Software $390.3M
  15. IFS $383M (SKr 2,500M) (1USD = 6.58 SKr, average quarterly exchange rates)
  16. Exact Software $337.4M (€265.4M)
  17. Manhattan Associates $337.2M
  18. Ariba $337.1M
  19. Deltek $289.4M
  20. QAD $279.4M
  21. i2 $256.9M
  22. Glovia (A Fujitsu Company) $246M (est.)
  23. CDC Software $235M (est.)
  24. IBS Software $229.6M (SKr 2035M)
  25. Concur $220.4M
  26. Cincom $178M (est.)
  27. Taleo $167.7M
  28. NetSuite $152.5M
  29. RightNow $102.6M
  30. SoftBrands $99.7M

The 2008 SII® Top 5 SaaS Business Apps Vendors*

  1. SalesForce.com $1,076.8M
  2. Concur $220.4M
  3. Ultimate Software $178.0M (added 2/26/2009 @ 17:17 GMT)
  4. Taleo $167.7M
  5. NetSuite $152.5M
  6. RightNow $102.6M

Your POV.

Am I missing a vendor?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com .

* Not responsible for any math errors or erroneous revenue information.  Calendar year estimates based on the quarter nearest the calendar year.  Exchange rates as of February 25th, 2009 for vendors who have not published quarterly conversions.  Not responsible for currency flux.  Please read the quarterly filings yourself =)

Changes: March 12, 2009 converted IFS from $279.3 to $383M (SKr 2,500M)  using 1USD = 6.58 SKr, average quarterly exchange rates.  Ranking moved from 21 to 15.

Speaking Engagement: Forrester Teleconference – Achieving A Perfect Order To Combat The Evil Forces Of A Recession

Thursday, February 19, 2009, 1:00 p.m.-2:00 p.m. Eastern time (18:00-19:00 UK time)

Presented By:

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

Cost:  Please check the registration page Register

Who should attend: Business Process & Applications professionals, CIO’s, Application Delivery and Program Management Professionals.

Description:

Declining sales, shrinking operating margins, and labor force reductions, drive Business Process & Applications professionals to streamline core business processes such as opportunity to cash. Efficient and effective delivery of orders that consistently meet a stakeholder’s (e.g., customer, supplier, partner, and employee) expectation is known as a “perfect order.” Because the delivery of a perfect order is complex, many organizations rely on software solutions to automate, simplify, and integrate. So how does a BPA pro know what the key steps to supporting a perfect order are? What technology is required to deliver on all the steps of a perfect order? How well does the organization support the people, process, and technology requirements for a perfect order? To help BPA professionals answer those questions, Forrester has developed a checklist of the 20 best steps required to support a perfect order and to enable BPA pros to score themselves on their ability to achieve the delivery of a perfect order.

Agenda:

  • Understand the business imperative to achieve a perfect order in this economy.
  • Learn the 20 best practices of the perfect order.
  • Measure outcomes with a perfect order index.

Vendors mentioned: Amdocs, Epicor Software, GSI Commerce, Infor, Infosys, Manhattan Associates, Microsoft, Oracle, SAP, and Sterling Commerce

Related Research:

The Forrester Wave™: Order Management Hubs, Q4 2008

by R “Ray” Wang, November 14, 2008

Technical requirements:

An Internet connection with a browser is required for the visual presentation. For the audio component, a separate phone line is required.

You will receive dialing and WebEx instructions via email prior to the Event.

If you have any problems accessing the teleconference presentation, please call the Client Resource Center at +1 866.FORRESTER (367.7378) or +1 617.613.5730 and identify yourself as a teleconference attendee.

Research Summary: The Forrester WaveTM: Order Management Hubs, Q4 2008 – Sterling Commerce, Oracle, SAP, and Epicor Emerge As Leading Solutions That Support The Delivery Of A Perfect Order

FORWARD AND COMMENTARY

In the second update to the industry’s only business process-focused assessment of its kind, we evaluated eight leading order management hubs in a 152-criteria evaluation. The Forrester Wave provided head to head comparison of which order management hub solution would best support the 20 steps in a perfect order.  Importantly, the end to end business process included four major sub processes: Opportunity to Order Capture, Order Capture to Order Fulfillment, Order Fulfillment to order Completion, and Order Completion to Cash.

These demo-based product evaluations were conducted from April 2008 to August 2008 and interviewed eight vendor and 40 user companies including: Amdocs, Epicor Software, Infor, Manhattan Associates, Microsoft, Oracle (E-Business Suite and Siebel), SAP, and Sterling Commerce.  Unlike other analyst evaluations, the Forrester Wave contains no “magic” and provides end users with both transparency of the scoring process and flexibility to personalize weightings to best meet an end user’s scenario.  The tool is accessible via an XL spreadsheet.

RESEARCH HIGHLIGHTS

Introduction

Perfect orders drive a direct correlation to positive stakeholder satisfaction scores. Despite the benefits, success in consistently delivering a perfect order eludes many enterprises because existing systems lack the process and functional flexibility to deftly move orders across the end-to-end order management cycle. With pressure on enterprises to seek new ways to create market differentiation, order management hubs rise to prominence because:

  • Process-centric views trump yesterday’s functional fiefdoms.
  • Standardized best practices provide little value in today’s constant world of change.

Research Findings

We found that Sterling Commerce and Oracle E-Business Suite led the pack among the Leaders who delivered technologies that support the perfect order. Meanwhile, Oracle Siebel, SAP, and Epicor Software earned their Leader designation because of their strong support for end-to-end order management processes and forward-looking product strategies. Microsoft, Amdocs, and Manhattan Associates placed in the Strong Performer category for their specialization in targeted markets. The solutions evaluated represent eight of the top 10 to be considered in shortlist discussions for order management hubs customers seeking to achieve a perfect order: (See Figure 1.)

Figure 1: The Forrester WaveTM: Order Management Hubs, Q4 ’08

Main Graphic for OMH Wave Q4, 2008

Source: Forrester Research, Inc.

Report Links

Click on the link for the in-depth details and scores related to the 152 criteria used in this Forrester report: The Forrester WaveTM: Order Management Hubs, Q4 2008.  For media courtesy requests, please send me an email to rwang@forrester.com

Your POV.

Would love your feedback on the report.  You can post here or send me a private email to rwang0@gmail.com.

Copyright © 2008 R Wang. All rights reserved.

Wednesday’s Whispers: The Word On the Street – December 2008

PEOPLE WHISPERS: MOVES, PROMOTIONS, AND MILESTONES

Congratulations to all!  Thanks for your emails and alerts.  If you’ve got a change or know of a promotion, keep dropping me a line!

Jim Anderson is now a Partner at Element Consulting Group.  Jim previously served as EVP for professional services at Lawson Software and Group VP roles in services for PeopleSoft and JD Edwards.

Sharath Dorbala has been promoted to Vice President, Solution Management at Amdocs from his previous position as Director of Product Strategy this November.  Prior to returning to Amdocs, he worked at Oracle where he was part of the Fusion Middleware team.

Max Efimov is now Director – Emerging Technologies at SITA CORP.  Max was formerly a Manager at BearingPoint in the Enterprise Solutions SAP group.

Madhu Ghosh became Leader Program Management and Product Strategy for Global Analytics Products at Dun & Bradstreet in September 2008.  He was previously a Leader for Business Development & Strategic Marketing.

Kartik Iyengar is now Head – Strategic Growth at an undisclosed company.  Kartik was formerly a General Manager in EAS for Wipro and an avid SAP ESOA evangelist.

Joanne McCool became the COO of Ternary Software in April 2008 and a Board Member Volunteer at The Career Wardrobe.  Joanne served various roles at Primavera Systems, Inc. where she was the VP/General Manager of Evolve and a VP of Human Resources.

Jim Nail the former marketing and strategy star analyst at Forrester Research has been at Cymfony Inc. as their Chief Strategy and Marketing Officer.  Check out his new site!

Balakrishba Narasimhan has left SAP Global Marketing where he was director of the highly acclaimed Apollos Competitive Intelligence strategy group. He is now a Senior Director for Corporate and Field Marketing at Appirio.

Mike D’Onofrio joined Zuoro as a VP of sales and member of the executive management team.  Mike bring over 20 years of selling experience in the billing industry, most recently with WebEx and ADP.

Mohan Pillai left Fujitsu Consulting where he was a Director in the SAP CRM Practice and has now joined Sparta Consulting Inc where he serves as a Director for the SAP practice.

Vicki Raeburn became SVP Critical Information Development & Quality at IHS in July 2008.  Prior to IHS, Vicki was a Senior Vice President and Chief Quality Officer at D&B – Dun & Bradstree.

Sunder Sarangan now serves as an Associate Vice President for Field Marketing at Infosys Technologies Ltd. He was promoted from his previous role as Head of Worldwide Industry Analyst Relations.

Adil Vazifdar has left Tata Consulting Services where he was the Global Head, CRM Sales and Marketing and joined Cegedim- Dendrite as an Account director.

Ellie Wilkinson joins Tableau Software as a Director of Product Marketing from Microsoft Business Solutions where she was a Group Program Manager leading the global launch of Microsoft Dynamics AX 4.0, including channel partner and field readiness, marketing and events, AR/ PR strategy, positioning and launch execution worldwide through 36 countries.

John Wookey joins SAP leading on Demand initiatives for the Enterprise.  He starts November 10th in Palo Alto, CA.  John formerly ran Oracle’s Fusion Application initiative and left Oracle October 2007.

CORPORATE WHISPERS

Got a scoop or something to share? Please post or send on to rwang0@gmail.com and we’ll keep your anonymity.

  • ISV’s in the gov contracting space are the hot M&A plays as software vendors and IT services providers scramble to get a piece of the infrastructure spending action.
  • Mergers may come soon to the IT Services firms.  Expect the most activity in the Microsoft Partner Base as bulking up gives partners more reach into geo’s and micro vertical markets.

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