Posts Tagged ‘business process outsourcing’

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.

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

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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

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

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

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News Analysis: Infosys Buys Lodestone for $350M

Global outsourcing and Bangalore Infotech bellwether Infosys (NASDAQ:INFY), announced its agreement to purchase Zurich-based Lodestone Management Consultancy for $350M.  A quick analysis of the news reveals:

  • Infosys strengthens its EMEA and SAP vertical presence. Lodestone brings 850 employees which 750 are front line delivery personnel. Lodestone’s 200 clients span industries such as life sciences, consumer goods, automotive, financial Services,  banking and industrial equipment. across a profitable and strategic SAP customer base.

    Point of View (POV):
    The Lodestone acquisition gives Infosys a profitable and strategic SAP customer base.  While some may say this acquisition, which has taken some time to complete, is a late response to the July 2009 HCL – Axon acquisition, Constellation believes this is part of a larger but more conservative approach to shore up Infosys’ EMEA strategy.  In the short term, the economics of EMEA will work against Infosys as Eurozone concerns amplify into 2013.  Long-term, the acquisition may prove itself out as Infosys gains a greater foothold through consolidation.  Constellation estimates $1B in revenues from SAP alone post merger.
  • Lodestone methodology and culture will transform Infosys. Lodestone brings it’s trademark IDEA methodology.  IDEA represents insight, design, execute, and achieve.  This approach aligns with Six Sigma standards and SAP ASAP to improve the quality of implementation outcomes.

    Point of View (POV):
    Infosys can gain from learning the IDEA approach in achieving business transformation across the project life cycle.  More importantly, Infosys gains deep local expertise in a wide range of SAP dominant industries.  Constellation believes the goal is to build out the Infosys 3.0. strategy, which is about expanding into management consulting and systems integration and away from outsourcing.

The Bottom Line: Traditional BPO Models Have Run Their Course and Traditional Outsourcers Must Act Quickly Or Suffer

With the growing backlash on outsourcing in the US elections spreading to continental Europe, traditional BPO models may no longer provide growth.  India’s info-tech giants must take the path to the next level and focus on IP innovation and creation (see Figure 1).   While these are new skill sets required to deliver the next generation of IT services, the shift will take time and a cultural revolution.  Can India’s infotech companies make the shift to a cloud meets subscription economy?  Will the shift from trusted advisor to innovation partner happen quickly enough?  Every global outsourcer faces these same questions amidst consumerization of IT, the rise of cloud computing, and oppression and domination by the mega software ecosystems.

Figure 1.  The Path From Body Shop Provider to High Value Creator

Your POV.

Are you ready for the new Infosys? Do you think they can make the shift from outsourcer to management consultancy?  Let us know your experiences.  Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

Related Constellation Research

Wang, R. “Best Practices – Three Simple Software Maintenance Strategies That Can Save You Millions” Constellation Research, Inc. March 8, 2012

Scavo, Frank & Wang, R. “Big Idea: Constellation’s Business Value Framework” Constellation Research, Inc.  January 31, 2012.

Wang, R. “Best Practices: Why Every CIO Should Consider Third-Party Maintenance.” Constellation Research, Inc. August 7, 2012.

Wang, R. “Market Overview: The Market For SAP Optimization Options” Constellation Research, Inc. May 11, 2011.

Wang, R. “Best Practices: The Case for Two-Tier ERP Deployments” Constellation Research, Inc. February 28, 2011.

Reprints

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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 – 2012 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!

Trends: The Battle For CMO Mind Share

Marketing and Advertising Budgets Are The New Land Grab

Constellation Research, Inc. predicts that the global advertising market (paid search, display, and classified) will hit $125B by 2015.   While IT budgets continue to stay flat, marketing budgets are up.  Warc’s recent Global Marketing Index (GMI) entered positive territory in March 2012.  Consequently, the heat up in marketing and advertising market attracts not only start-ups, but also tech vendors looking to enter this lucrative market.

Solution Providers Rediscover The CMO Budget

In just less than 28 months, enterprise software vendors have bolstered their presence with Chief Marketing Officers mostly through acquisitions and partnerships.  The goal – capture budgets allocated for digital creation, marketing automation and revenue optimization, advertising, CRM and customer experience, analytics, and information brokering (see Figure 1).

Figure 1.  The Battle For The CMO Budget Comes From Six Fronts

Why the change? Marketing sits at the cross roads between the old analog world and the new shift to digital transformation.  With each big shift, organizations will change what technologies they invest in, who they decide to partner with, and how quickly they will make the shift.  This new battle for CMO mind share started when IBM purchased Unica for $480M in August 13, 2010 (Figure 2).  The frenzied activity by Adobe, Dell, Eloqua, Google, Hubspot, Kana, Marketo, Oracle, Salesforce.com, and SAS Institute reflect the desire to be top of mind among CMO budgets.

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

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Research Report: Constellation’s Research Outlook For 2011

Organizations Seek Measurable Results In Disruptive Tech, Next Gen Business, And Legacy Optimization Projects For 2011

Credits: Hugh MacLeod

Enterprise leaders seek pragmatic, creative, and disruptive solutions that achieve both profitability and market differentiation.  Cutting through the hype and buzz of the latest consumer tech innovations and disruptive technologies, Constellation Research expects business value to reemerge as the common operating principle that resonates among leading marketing, technology, operations, human resource, and finance executives.  As a result, Constellation expects organizations to face three main challenges: (see Figure 1.):

  • Navigating disruptive technologies. Innovative leaders must quickly assess which disruptive technologies show promise for their organizations.  The link back to business strategy will drive what to adopt, when to adopt, why to adopt, and how to adopt.  Expect leading organizations to reinvest in research budgets and internal processes that inform, disseminate, and prepare their organizations for an increasing pace in technology adoption.
  • Designing next generation business models. Disruptive technologies on their own will not provide the market leading advantages required for success. Leaders must identify where these technologies can create differentiation through new business models, grow new profit pools via new experiences, and deliver market efficiencies that save money and time.  Organizations will also have to learn how to fail fast, and move on to the next set of emerging ideas.
  • Funding innovation through legacy optimization. Leaders can expect budgets to remain from flat to incremental growth in 2011. As a result, much of the disruptive technology and next generation business models must be funded through optimizing existing investments. Leaders not only must reduce the cost of existing investments, but also, leverage existing infrastructure to achieve the greatest amount of business value.

More…

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

Legacy Apps Customers Seek Practical Advice

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

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

Figure 1.  Legacy Issues Hamper SaaS/Cloud Adoption


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

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

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

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

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

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

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

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

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

      Figure 1. Traditional Delivery Compared To Cloud Delivery


      More…

      Research Report: The Upcoming Battle For The Largest Share Of The Tech Budget (Part 1) – Overview

      Welcome to a multi-part series on The Software Insider Tech Ecosystem Model.  Subsequent posts will apply the model to these leading vendors:

      • Overview
      • Cloud Computing
      • Cisco
      • Dell
      • HP
      • IBM
      • Microsoft
      • Oracle
      • Salesforce.com
      • SAP

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

      Business Models Converge During Recessions

      Is your technology provider a hardware vendor or a software vendor? Does your System Integrator now provide solutions in the cloud? These questions will continue as models converge.  Hardware, software, and system integration vendors must reinvent new models of revenue.  The economic recession has forced business model shifts at the major technology companies.  The goal – own the largest share of both the business and IT technology budget,  As these sellers attack new profit pools, buyers can expect continued convergence of business models because:

      • Hardware companies seek higher margins. Most hardware vendors face single digit margins in their core business.  To bolster margins, many vendors acquired system integration firms.  For example, HP purchased EDS and Dell acquired Perot Systems.  The next logical step requires the hardware vendors to get into software.  Software margins hover from 10% to 50% depending on the market.  Expect a hardware vendor such as Cisco, Dell, or HP to acquire a SaaS based company to move into the software business.
      • Service providers build differentiated intellectual property (IP) using the Cloud. Service providers should go on the SaaS/Cloud offensive if they want to deliver rapid innovation to customers and break the cycle of dependence on packaged apps vendors.  Service providers can take market share through SaaS by investing in white spaces in the solution road map with verticals and other pivot points that have not been well served.  In addition, expect forms of SaaS BPO to emerge as clients seek best of breed SaaS and hybrid deployments.
      • Software companies use Cloud to transform into information brokers. SaaS and Cloud deployments provide companies with hidden value and software companies with new revenues streams.  Data will become more valuable than the software in the Cloud.  Three areas of growth will include benchmarking, trending, and prediction.
      • Companies by-pass software vendors for competitive advantage. Roper Industries acquisition of iTrade Networks on July 26th, proves a key point.  Smart and innovative companies will put custom development in the cloud to meet last-mile solution needs that packaged apps vendors or system integrators fail to deliver.  Companies may also acquire software vendors if they can’t build the solution.

      More…

      Tuesday’s Tip: Note To Self – Start Renegotiating Your Q4 Software Maintenance Contracts Now!

      Labor Day (US Holiday) traditionally marks the end of summer BBQ’s, the beginning of the fall conference season, and yes, the time to begin a review of your software maintenance contacts that expire end of year.   As clients prepare for this seasonal ritual, a few trends in 2009 should set the stage for negotiations:

      • Continued weakness in the economy. Vendor revenues continue to decline as new license sales drop and vendors become more dependent on support and maintenance revenues.  Customers looking to upgrade or commit to new apps can expect vendors to be more generous on the support and maintenance front.
      • Dated and inflexible architecture of legacy applications. Change in business models, workplace dynamics, and macro economic conditions apply new pressures to aging systems purchased pre-Y2K.  Customers seek paths to upgrade but are limited by economic pressures.
      • Vendor awareness of customer discontent with existing support offerings. Customers now seek to understand what value vendors deliver in their support and maintenance agreements.  Many vendors have proactively responded by improving service or making appropriate concessions.
      • Growing acceptance of third party maintenance (3PM) options. Vendors such as Rimini Street and Spinnaker have proven to the market that they can deliver 3PM to an array of ERP applications.  Cutting maintenance fees by 50% or more can free up funds for innovation or pay for the next upgrade.

      Align your apps strategy before negotiating contracts – do your homework

      Contract negotiations strategy should be planned in conjunction with an overall apps strategy.  Begin the process 2 to 3 months in advance.  Make sure the teams have the proper incentives in place.  Take the following steps as you prepare for your maintenance renewals:

      The bottom line – follow the seven simple steps to successfully negotiating software contracts.

      1. Ensure that the right team is in place
      2. Identify the organization’s key business drivers
      3. Determine the product adoption plan
      4. Consider contract strategy implications of the software ownership life cycle
      5. Align contract strategy with product adoption
      6. Identify leverage points
      7. Prioritize key contract objectives

      Your POV

      Looking to hear your best practices with software maintenance contract renewals.

      • Is your maintenance contract up for renewal at the end of the year?
      • Do you need help putting a strategy in place?
      • Have you conducted an apps strategy assessment?
      • Would you like to break free from your vendor but don’t know what options exist?

      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.

      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.