Posts Tagged ‘BPO’

News Analysis: Rimini Street Vs Oracle Ruling Has No Negative Impact on Third Party Maintenance Rights

Recent Oracle vs Rimini Street Ruling Is About Customer Software License Rights Not Third Party Maintenance

On February 13th, 2014, the United States District Court , District of Nevada Judge Larry Hicks issued a partial summary judgment in the Oracle vs Rimini Street Case. Here’s the executive summary to key questions about the ruling*:

Is Third Party Maintenance still valid for Oracle products or anyone else? Yes.  Users should make sure this right is explicit in all future software deals.

Can a customer give a copy to a third party? Yes if you have this in your license agreement.   Users should negotiate this in  contracts to ensure this right exists and remains as part of the ownership experience.

Do you have to read every contract detail before a third party maintenance provider can host the software? Yes. If there are site restrictions  and if you want to host it in a vendor’s own data center.  Make sure you have the right to a site change or site license change.

Can copies of software from customers that are loaded onto the server that are identical to what another customer’s rights be used or reloaded. Yes, the software license goes to intellectual property not to the media.  Third party maintenance vendors can use the same instance in setting up their clients and this will drive down the cost.

Does this ruling impact other businesses? Yes.  If you have no site specific rights, you can’t have a third party outsource or host.  This could have major legal ramifications for Oracle and other vendor’s existing hosting and outsourcing businesses.

Four Customer Cases End In A Draw For Oracle and Rimini Street Based On Contract Law Technicalities

The ruling includes cases from four customers each with unique contract language:

  • City of Flint – US District Court rules In Oracle’s favor. “Based on the court’s ruling s above, none of Rimini’s asserted license provisions (Sections 1.2(b), 1.2( c), or 14.2) expressly authorize Rimini ’s copying of Oracle’ s copy righted PeopleSoft branded software a s a matter of law. Therefore, the court finds that Oracle is entitled to summary judgment on Rimini’s express license affirmative defense as it relates to the City of Flint, and the court shall grant Oracle ’s motion accordingly.

    Point of View (POV):
    The City of Flint’s PeopleSoft contracts were pre-Internet and did not allow for third parties to copy licenses onto other servers on their behalf.  In fact, the licenses only allowed for the City of Flint to provide “access to and use of the Software” to a third party.  The ruling makes sense and is based on how the license contract is written.
  • Pittsburgh Public Schools – US District Court rules In Oracle’s favor. “Based on the rulings above, the court finds that none of Rimini’s asserted license provisions (Sections 1.1, 1.2, or 10.2) expressly authorize Rimini’s copying of Oracle’s copy righted PeopleSoft branded software as a matter of law. Therefore, the court finds that Oracle is entitled to summary judgment on Rimini’s express license affirmative defense as it relates to the Pittsburgh Public Schools, and the court shall grant Oracle’s motion accordingly”.

    (POV):
    Despite Oracle granting the Pittsburgh Public Schools “a nonexclusive, nontransferable license to make and run copies of the Software, “the right to access and use the Software is a separate right from the right to copy or reproduce software”.  The ruling makes sense as with City of Flint based on the language in the original PeopleSoft contract.

Trends: 10 Trends for #Cloud Computing in 2014 To Dominate #Digital Disruption [Slide Share]

Ten Trends For Cloud Computing In 2014 To Dominate Digital Disruption

Constellation’s cloud computing research falls under the Tech Optimization and Innovation business theme and throughout other areas where applications are applied.  The trends for 2014 cover across the entire cloud stack.

Holger Mueller, VP and Principal Analyst, covers the impact of Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) as well as HR Technologies in the Future of Work.  R “Ray” Wang researches the impact of Cloud Computing on business strategy and the application landscape.

Below are the 2014 trends for Cloud Computing.  Join the Constellation experience as we set to help our clients dominate digital disruption.

<iframe src=”http://www.slideshare.net/slideshow/embed_code/29546510″ width=”600″ height=”400″ frameborder=”0″ marginwidth=”0″ marginheight=”0″ scrolling=”no” style=”border:1px solid #CCC;border-width:1px 1px 0;margin-bottom:5px” allowfullscreen> </iframe> <div style=”margin-bottom:5px”> <strong> <a href=”https://www.slideshare.net/rwang0/10-trends-for-cloud-computing-in-2014-to-dominate-digital-disruption” title=”10 Trends for #Cloud Computing in 2014 To Dominate Digital Disruption” target=”_blank”>10 Trends for #Cloud Computing in 2014 To Dominate Digital Disruption</a> </strong> from <strong><a href=”http://www.slideshare.net/rwang0″ target=”_blank”>R “Ray” Wang & Holger Mueller</a></strong> </div>

Your POV.

Do you have a cloud strategy?  Can you see how the cloud will help enable digital business disruption?   Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Cloud and Digital Business transformation efforts.  Here’s how we can assist:

  • Assessing cloud computing readiness
  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing
Resources

Reprints

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2001 -2014 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Customer Experience

Event Report: Infosys Global Analyst Summit – Awaiting The Post Infosys 3.0 Emergence

Infosys Puts Its Best Foot Forward

Constellation attended Infosys’ 2013 Global Analyst Summit from July 29th to July 30th in Boston.  Despite the below industry average growth of the previous year, conversations with key executives and top customers indicate an imminent shift.  In fact, Infosys has added 100+clients not including customers from Lodestone.  Retention is 98% for about 800 clients.  The client list includes more than half of the Fortune 500.  Repeat business is between 95 to 96%.  Most clients represent the top 5 or top 10 of each major industry.  All is not gloom and doom.

While Core Business Is Solid, Non-Body Count Growth Is the Long Term Challenge

CEO and Co-Founder

Infosys S.D. Shibulal

Consequently, Infosys faces a similar challenge all global IT services firms must overcome – remaining relevant with clients facing business model disruption and a rapid pace of change. In one-on-one conversations with:

  • S.D. Shibulal – Co-founder, Member of the Board, Chief Executive Officer and Managing Director
  • Vishnu Bhat – Vice President and Global Head, Cloud
  • Paul Gottsegen – Chief Marketing Officer
  • Sanjay Purohit – Senior Vice President and Head of Products, Platforms, & Solutions
  • Suketu Patel – VP, Head of Strategic Global Sourcing
  • and several key customers in banking, consumer packaged goods, healthcare, high tech, and retail

At the Global Analyst Summit and through client conversations over the past 6 months, Constellation gained insights in how Infosys is addressing their client’s challenges.  Both the Infosys executives and the clients recognize that Infosys must make significant market shift and take the lead in co-innovating and co-creating intellectual property.

Infosys 3.0 Is Alive And Well And Part Of The Required DNA Transformation

More…

Event Report: 2013 Capgemini India Analyst & Advisor Day #CGAR2013

Capgemini India Plays A Key Role In The Global Delivery Model

Analyst and advisors gathered on February 12th, 2013 at Capgemini’s India headquarters located near the trendy and upmarket Powai suburbs of Mumbai.  Capgemini India’s CEO, Aruna Jayanthi welcomed guests with a perspective on Capgemini India’s progress.  With more than 40,000 people, the team plans to grow to 70,000 people in 3 years at almost a 20% CAGR year-over-year. Aruna sees the potential for up to 70% of Capgemini’s infrastructure services delivery to come from India.

As part of the non-linear growth plan, Capgemini intends to rely on a shared services model and platform between multiple delivery centres critical for scale and growth.  The good news – Capgemini India expects a reduction in the double digit wage inflation of the past 24 months.  Forecasts call for 5 to 9% for 2013.  Her three focus areas include growth, continued investments, and building end-to-end capability in India.

The analyst and advisor day was hosted in Capgemini’s Accelerated Solutions Environment (ASE).  The ASE combines a patented methodology with a unique, open work environment to deliver large scale facilitated sessions geared at accelerating timelines, gaining alignment and mitigating risks.  ASE’s provide a safe and effective place for collaboration and innovation.

Under this year’s theme of transforming customer experience, sessions touched on nine key areas:

  1. Portfolio transformation. Capgemini India is playing a key role in aligning with the consulting team’s digital transformation efforts.  If successful, the team will gain synergies across consulting, infrastructure, and bpo as part of a broader portfolio transformation.  One example of a focus on IP creation and innovation is Sogetti’s product engineering capabilities delivered in Capgemini India for aerospace and defense. Product Engineering is a priority for Capgemini in 2013.  European service providers Altran, Alten, Safran will have some competition from Capgemini going forward.
  2. Digital utility transformation. With 80% of meters in EU to be converted to smart meters by 2020, Capgemini sees a role in guiding this shift from analog to digital for utilities.  The utilities segment is expected to grow 4% & related software services are expected to grow about 7-8%.  Despite a perceived slow growth in utilities, smart metering is the base for transformation.  Early investment by Capgemini will play a key role in growing out this industry as a shortage of energy production and an upgrade of legacy transmission and energy production technology drive future growth.
  3. All channel experience. Customer centricity is changing as businesses focus on an “All Channel” and “Affordable” value proposition.  The firm focuses in on digerati as a key target for digital transformation. Why? Digerati are 26% more profitable than their peers.  The shift to all channel is a key part of the move to digital transformation and customer experience strategy for clients.
  4. Demand driven supply chain. Demand driven concepts are not new, however, customers seek to improve their ability to deliver on perfect orders.  Organizations also seek to get as close to the consumer as possible.  Capgemini’s work at one client helped a stagnant retail gain achieve 23% increase in customer satisfaction and gain 96 basis points of margin.  Constellation sees this buyer centric shift to matrix commerce as a key trend for 2013.
  5. Tax and welfare. Global governments face a $2.4 trillion USD tax revenue every year.  Consequently, Capgemini’s efforts in tax and welfare focus on the fraud and compliance equation.  The Capgemini’s India team has over 400 employees in their center of excellence complementing 8,000 onsite personnel at clients.  The mission is to improve revenue and increase compliance.  Constellation expects this market to grow as big data technologies improve the ability to manage both structured and unstructured data sources.
  6. Global in house centers. The team shared a success story on the factory franchise approach for testing services at ANZ bank.  The global in house center provided a strong alternative to BOT or captive acquisition.  Capgemini intends to selectively grow this model over the next few years.  Constellation believes this approach is smart but will deliver low volume.
  7. Service integration. Opportunities exist to move operational responsibility for IT provisioning to Capgemini to drive cost savings.  The goal – manage sophisticated IT supplier frameworks.  If successful, service integration will prove to be the PMO account control model of the 2010′s.
  8. Mobile testing. Most organizations face a need for a comprehensive mobile QA strategy.  Building upon Neoload’s Neotys solution offering, Capgemini India opened a mobile testing CoE in Mumbai in December 2012.  The range of mobile testing opportunities has grown as the group seeks to expand from 250 to 1000 FTEs globally.  Constellation sees this as a bold move to jump into an emerging and growing market.
  9. Big data and analytics. As one of the earlier CoE’s, business information management (BIM) was launched in September 2010 as Customer BIM Experience showcase or (CUBE).  With the advent and hype of big data, the BIM team is now playing a key role in using BIM to improve customer experience.  Constellation sees the future with BIM and the support of big data business models.

Figure 1. Cap Gemini’s ASE Uniquely Creates Visual Story Telling Via Graphic Recorders

<iframe align=center src=http://www.flickr.com/slideShow/index.gne?user_id=35408001@N04&set_id=72157632782632882&detail=yes frameBorder=”0″ scrolling=no width=”600″ height=”500″></iframe>

Source: R Wang & Insider Associates, LLC. All Rights Reserved.

The Bottom Line: Capgemini India Taking Key Steps To Support Nonlinear Growth Opportunities

More…

Monday’s Musings: Putting An End To The Conflict Of Interest Among Some Sourcing Advisors

Many Services Firms Seek Unfair Advantages With Market Makers

Service providers continue to battle it out in the über competitive market for large annual multi-million dollar contracts.  Market makers who serve as sourcing advisors, (i.e. management consultants, analysts, or vendor specialists) often influence the outcome of large sourcing contracts and system integration projects.  Consequently, more and more service providers seek to influence sourcing advisors.

Now let’s be honest, influence through consulting engagements around positioning, competitive intelligence, and go-to-market strategy is nothing new.  Most firms make it transparent to the buyer who they work with.  However, in the past few months, we’ve uncovered several new techniques that cross the line on both objectivity and transparency.  These approaches include both formal and informal contractual guarantees across three major areas:

  • Number of blog posts or written research about a vendor. Sourcing advisors commit to writing certain amounts of research in exchange for a contract with the service provider.  In some cases, the research may require editorial approval by the service provider.
  • Number of invitations to bidders conferences. Sourcing advisors commit to inviting the contracted service provider to a short listed group of candidates.  Some contracts even include a tiered scale for greater payouts based on the number of invitations to deals.
  • Kick backs and referral fees for closed business. Sourcing advisors collect a financial reward for recommending a buyer to a service provider.  Fees work similar to referral models with alliance partners.

The Bottom Line:  Ask These Five Questions Before You Engage With Your Sourcing Advisor

More…

Monday’s Musings: Q1 2011 State of Social CRM and CRM From An EMEA Point Of View

Greeting from London!  It’s been a great surprise to enjoy the sunny and warm weather (by UK standards) as I readjust my body clock.  Thankfully, I’ve had a chance to catch up with a few new and old clients, several analysts, media moguls, and in real life meetups w/ close relationships (i.e. @grahamhill and @buchanla) built over Twitter.  Nothing beats in-person conversations and I’m thankful we could connect on the state of disruptive technologies such as Social CRM, CRM, Cloud optimization, gamification, and mobile enterprise.  A few trends from some great discussions and debates:

  • Social CRM (SCRM) adoption picking up in the UK for marketing and support/service. Conversations with Laurence Buchanan, CapGemini’s chief dude on CRM and Social CRM, indicated that clients are interested in SCRM for both an offensive and defensive strategy.  Offensive strategies focus on social media monitoring and marketing.  Defensive strategies mitigate risk in public relations disasters from support and service incidents.  Talking to a few utility and public sector prospects and clients, it became quite apparent that Laurence’s experiences proved out true.  A regulated industries CIO confided in me and said, “We’re doing this b/c we don’t want to end up as the top BBC story.”  Talks with a retail prospect focused on shifting marketing budgets to digital marketing.
  • Design thinking a key differentiator in successful SCRM adoption. Over some great Earl Grey and Matcha GreenTea latte’s, rockstar strategist and CRM guru, Graham Hill, discussed some of the key elements of successful implementations.  The introduction of services design thinking presents a key factor in success.  Success requires balancing the left brain and right brain points of view.  Moreover, his experiences from working at Toyota and other quality focused enterprises prove out why it’s better to get the design right the first time.  Good design embodies input in organizational culture, business processes, and of course technology.  One of the memorable quotes from the day stuck with me – “Consume as little technology as you need”.
  • The cloud will play a key role in social media monitoring. As media monitoring evolves from a highly paid, skilled craft to a high volume mathematical data crunching exercise, BPO offerings will emerge to address big data crunching.  Companies such as Wipro and Capgemini are already building such service lines.  Also, these Cloud BPO services such as CapGemini’s Immediate gain traction with clients who want a set of unified CRM and Social CRM services delivered in the cloud.  It’s also healthy to note that the EMEA clients have gained confidence in privacy controls and cloud security provisions by EMEA providers.
  • Salesforce.com and Microsoft Dynamics CRM gaining traction in UK. In 29 conversations over the past 2 quarters, CRM discussions lead with Salesforce.com and Microsoft Dynamics CRM. Salesforce.com dominates the CRM replacement buy-side decisions among large enterprise CIO’s.  Meanwhile Microsoft Dynamics CRM leads discussions among net new buyers in small and medium sized businesses, public sector, and divisions of large enterprises with Microsoft centric IT shops.

Your POV.

Are you in EMEA and deploying Social CRM?  What’s working? What lessons have you learned?  Share your thoughts here or send a private email to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your Social CRM/ Social Business efforts.  Here’s how we can assist:

  • Assessing social business/social CRM readiness
  • Developing your social business/ social CRM  strategy
  • Vendor selection
  • Implementation partner selection
  • Connecting with other pioneers
  • Sharing best practices
  • Designing a next gen apps strategy
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Resources And Related Research:

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.  For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.

Copyright © 2011 R Wang and Insider Associates, LLC. All rights reserved.

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


More…

Wednesday’s Whispers: Corporate Whispers and Monthly Market Trends – June 2009

CORPORATE WHISPERS AND MONTHLY MARKET TRENDS*
Starting this month, we’ll be splitting the trends in Corporate Whispers from the People Whispers series.  Catch the latest monthly random thoughts, trend points, and corporate trends.  Hearing from twitterati, software execs, and industry experts about:

User trends

  • Recent win by SUSEN Software over SAP enhances validity of the used software market in the EU.  Other players like Used Software have battled Microsoft to open up competition in the market.  Many CIO’s hope that Nellie Kroes at the EU will investigate the lack of third party maintenance options and anti-competitive behaviour in some segments of enterprise software (i.e. Oracle DB, SAP, etc.) before her term expires.
  • Hybrid deployment options continue to gain ground.  Conversations with over 101 software decision makers highlight a shift from single source vendor strategies.  Move to support hybrid deployments benefit enterprise service bus and integration providers such as Boomi, Pervasive, and Informatica.
  • Japanese CIO’s finally realizing that they need to break free from their existing ERP software vendor relationships.  SaaS options now in consideration.  Recent advancements by NTT to host Zoho, Siemens’ 420K employee move to Success Factors, and Flextronics 240k employee deal with Workday have shifted perception that SaaS can’t solve large enterprise requirements.
  • Conversations with over 100 EMEA decision makers show a big push to move away from a single source vendor strategy.  Third party maintenance, virtualization, SaaS, Open Source, and BPO top lists of planned initiatives in 2009/2010.
  • Support for Apple Macs in corporate environments gaining significant traction.  Despite shipment gains, lack of real corporate support models (i.e. go to the Apple Store to fix your MacBook) do not engender the backing of corporate IT support departments.

Software vendor and system integrators trends

Your POV

Got a scoop or something to share? What are you hearing in the market?  Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang. All rights reserved.

Monday’s Musings: Can IT Services Firms Shift the Balance of Power To Create Choice for the Customer?

Current Model Lopsided Towards the Large ISV’s

Rapid enterprise apps vendor consolidation over the past 5 years leave end user enterprises with fewer vendor choices and less competition.  The impact to services firms is a continued and increased dependency on the fortune and “good will” of the software vendor by IT Services firms.  However, ISV’s now have the upper hand as IT services firms focus on becoming the “best” partners of the ISV’s, not the other way around.  Case in point: the investment IT services firms are making in training and staffing for upgrades, partner solution certifications, and in some cases co-development.  This flow of activity and investment typically has been one way:

  • Requires investment expense by the IT services firm
  • Includes forfeiture of intellectual property rights
  • Provides no exclusive guarantees of go to market rights for any time period.

My question to the service vendors: does this have to be the way moving forward?

IT Services Firms Must Respond or Face An Increasingly Dominant ISV’s

Rapid changes in business models, work force dynamics, geopolitical, and economic concerns, and technology advancements challenge IT Services firms to transform existing business models.  As IT Services leaders respond, they must determine which strategies will reduce the dependency on large ISV vendors while advancing market mind share.  IT services firms during this historical point in time have the opportunity to shift the balance of power in their favor. Seven critical strategies will include:

  1. Earn the role as a strategic adviser. Win on thought leadership, innovation, and relevance.
  2. Dominate a category. Focus on micro specialization pivot points such as industries, geos, market size, and roles.
  3. Build and delivery vendor agnostic IP. Use the power of the cloud (i.e. SaaS, PaaS, and Cloud infrastructure) to deliver solutions without being dependent on any one ISV.
  4. Lead your own solution centric ecosystem. Stop building someone else’s ecosystem and focus on who your best partners are, not vice versa.
  5. Deliver on the failed promises of enterprise apps. Earn trust and relevance by focusing on lowering ownership costs, increasing flexibility through better integration, and extending functionality without the legacy packaged apps overhead.
  6. Win over customers with 3rd party maintenance. Like the stifling of software innovation in the 70′s and 80′s by hardware vendors requiring captive maintenance, software vendors today are stifling business process innovation with captive maintenance.  Have customers pressure vendors into offering third party options.
  7. Leverage social media to generate brand awareness. Build community and user generated content leveraging today’s Web 2.0 tools.

The bottom line – IT services providers must win or end user customers will lose.

Continued domination by an ever shrinking base of ISV’s means that consumers will see reduced choice and market competition.  As SaaS development and delivery costs lower the barrier of entry for new competitors, expect new vendors and choices to emerge.  Should the IT services providers make the transformation, the system integrators will be able to deliver unique IP and provide business process/transformation in the cloud like the service bureaus of the 1990′s.

Your POV.

Do you think services firms have the discipline and skill to make the transition?  You can post here or send me a private email to rwang0@gmail.com.

Copyright © 2008 R Wang. All rights reserved.