Posts Tagged ‘Cloud Wars’

Event Report: Microsoft Convergence 2014 Day 1 Demonstrates Solid Momentum and Mindshare ( #CONV14 )

Microsoft Convergence Kicks Off In Atlanta

The annual Microsoft Convergence customer event kicked off on March 4th, 2014.  Far from the days of the Stampede in Fargo, North Dakota, the event shows how far the Microsoft Dynamics customers, partners, and products have progressed.  Over 12,000 attendees including customers, partners, staff, and prospects gathered in Atlanta, GA for the largest Microsoft Enterprise Applications conference.  The sold out event featured a volunteer program on Day 0 and a good number of partner meetings the weekend before.  Analysis from four key announcements on Day 1 include:

  • Microsoft Dynamics gaining momentum on the large enterprise and divisions of large enterprises. Key customers presenting in the opening keynote include Chobani, City Harvest Inc, Delta Airlines, Lotus F1 Team, New Belgium Brewery, and Weight Watchers.  These presenting customers share a key theme of customer centricity and a Microsoft enterprise backbone.  Moreover, many showcase the devices and services theme set by former CEO Steve Ballmer.

    Point of View (POV):
    Constellation sees a growing trend where organizations and brands move to Dynamics for both CRM and ERP.  The ability to integrate back to other Microsoft technologies such as SharePoint, Office 365, and Azure Services provides both a pull and a push.  As organizations think about consolidating vendors and moving to the cloud, the Microsoft Dynamics team provides some compelling options in manufacturing, retail, distribution, public sector, professional services, and travel and entertainment.  The launch of a Microsoft Dynamics CRM Online Enterprise License at $200 per user per month show cases the move upmarket.
  • Dynamics CRM users gain key marketing and social capabilities. Microsoft announces the next release of Dynamics CRM in Q2 of 2014.  Microsoft Dynamics Marketing, which was formed from the Marketing Pilot acquisition , debuts to assist with campaign management.  The service and support offering gains new features such as Unified Service Desk along with closer integration to recently acquired Parature.  Newly launched Microsoft Social Listening launches at no additional charge for Dynamics CRM Online professional license holders.

    (POV):
    The rewrite of acquired entity Marketing Pilot provides some improvement to the original product.  Parity at the Exact Target and Hubspot level will take at least two to three more releases.  Release of unified service desk paired with Parature, provides a powerful combination in customer service and support.  Microsoft Social Listening finally provides customers with a social tool that has been sorely missing in the line up.  More importantly, in CRM and customer experience, the mobile access options have not forced customers onto Windows Phone and instead have provided native support of iOS and Android..
  • Dynamics ERP users prepare for new releases. Dynamics GP gets a release for Q1 2014 that includes identity management, workflow, and self service companion apps.  Dynamics NAV shoudl receive an update in Q4 2014.  More importantly, the team announced the availability of Microsoft Dynamics AX 2012 R3 for May 1st 2014.  Key themes include mobile enablement, support for deployment on Windows Azure in the Infrastructure as a Service (IaaS) layer, and an end to end apps and services framework.  .  The cross offering with the Windows Azure team is the Microsoft Dynamics Lifecycle Services which improve implementation times and enable agile updates.

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News Analysis: FinancialForce.com ERP Arrives To Signal The Era Of Best Of Breed Cloud Suites

FinancialForce Debuts Its Full ERP Suite


On February 19th, San Francisco headquartered, FinancialForce.com announced the launch of its full suite of ERP offerings built on the Salesforce1 platform.  Backed by investments from UNIT4 and Salesforce.com, the cloud based vendor began as a single ledger financial management system built on the Salesforce.com Force.com platform.  The announcement and product launch shows how FinancialForce:

  • Delivers a full ERP suite on the Salesforce1 platform. The platform brings together a series of organic products and recent acquisitions in HR, supply chain, and project management (see Figure 1).  The December 2010 acquisition of Appirio’s professional services automation assets form the Professional Services Automation offering.  The 2013 acquisitions of Vana Workforce and Less Software brought the human capital management (HCM) and supply chain management (SCM) capabilities.

    Point of View (POV):
    The management team at FinacialForce.com was smart to bring in acquisitions built on the original Force.com platform.  Post merger integration was greatly simplified as the products shared a common architectural base.  More importantly, the acquired solutions were easily upgraded to the Salesforce1 platform to create an end to end ERP cloud based ERP suite.  Customers gain the full advantages of the Salesforce 1 platform and integration with the core Salesforce CRM offerings.
  • Demonstrates focus on long term growth and viability .  FinancialForce.com showed 80% year over year growth in revenue run-rate compared to 2012.  Headcount grew 62% year over year with over 260 global employees.  Furthermore, customers represent a global base with 27 countries and users in 45 countries.

    (POV):
    Cloud has gone mainstream and customers now expect their cloud companies to demonstrate viability.  The mergers and acquisitions required to build a full cloud ERP suite signal a maturity by FinancialForce.com and the market.  Early customers of the full suite provide positive references on both the synergies of the ERP offering and the flexibility of the Salesforce1 platform for extensibility.

Figure 1. FinancialForce.com Launches A Full Integrated ERP Suite

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Research Summary: Next Generation CIOs Aspire To Focus More On Innovation And The Chief Digital Officer Role

Executive Summary

Constellation shares with its clients the fourth annual groundbreaking survey of CIOs later this week.  The 2014 survey interviews respondents about their priorities by CIO persona.  Constellation identified infrastructure, integration, intelligence, and innnovaiton as the four personas of the next gen CIO in 2011.

Survey results show that while CIO’s prefer to spend more time on innovation projects, most CIOs must spend their time battling the reduction of cost in IT delivery.  In the shift towards dominating digital disruption, CIOs can only move as fast as their organization’s DNA will allow while driving transformation. Using Constellation’s organizational DNA framework, CIOs can understand how much change they can expect their organization to consume and gauge their ability to impact the thought process and culture.  An excerpt of some of the findings can be found below:

A. CIOs Must Battle Keeping The Lights On Despite A Desire To Focus On Innovation

In Constellation’s recent CIO survey of 119 respondents, over 44% expressed that reducing the cost of IT delivery remained the number one priority (see Figure 2).  However when asked what should be the number one priority almost 44% expressed that bringing innovation to the business was the number one requirement (see Figure 3).

Figure 1. CIOs Still Prioritize Reducing IT Costs

Figure 2.  Bringing Innovation to the Business Is Top Of Mind On The CIO Agenda

B. CIOs Must Overcome Three Barriers To Bringing Innovation To The Business

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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.

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

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News Analysis: Acumatica Raises $10M In Series C Funding, Aims For 1B In Revenue By 2023

New Funding Round Fuels Road Map And Geographic Expansion


On November 18th, privately held Acumatica announced Series C funding from Runa Capital and Almaz Capital.  The  Kirkland, WA based Acumatica, has been quietly providing its partners a customizable, cloud-based ERP and CRM development platform for the SMB market.  Acumatica’s previous rounds were funded by Visma (a KKR company) and Almaz Capital (backed by Cisco).  The announcement is significant because Acumatica intends to:

  • Expand its partner base into new markets. Acumatica currently has offices in Washington DC, Singapore, and Moscow.  Through affiliates, resellers, and partners,  Acumatica is present in the US, Canada, Mexico, UK, Nordics, The Netherlands, Africa, Middle East, India, and Southeast Asia.  Sales come exclusively from partners.  Thus, the company intends to recruit more partners for high growth markets such as Asia and Latin America.  European expansion will focus on a replacement ERP market of aging systems

    Point of View (POV):
    Early success with Acumatica has come from the ease of use and functional footprint that accelerates a partner’s ability to take a solution to market.  However, future growth will require the leadership team to increase its investment in brand awareness and partner enablement.  Expect key hires in partner sales, support, and R&D.  Given the limited number of qualified partners in the market, Acumatica will have to convince partners from competitors to switch.  Early indications show this market traction.  In fact, since August 2013, Acumatica has added 50 partners, bringing the total to 270.

Event Report: Day 1 At Oracle Open World 2013: The Quest For Innovation #oow13

Past Oracle Open Worlds Have Disappointed Customers and Partners

Let’s be frank.  The past five years at Oracle Open World have disappointed even the faithful.   The over emphasis on hardware marketing and revisionist history on cloud adoption bored audiences.  The $1M paid advertorial keynotes had people walking out on the presenters 15 minutes into the speech.  Larry Ellison’s insistence on re-educating the crowd on his points subsumed the announcements on Fusion apps.   Even the cab drivers found the audience tired, the show even more tiring.

Oracle went from hot innovative must attend event to has been while most industry watchers, analysts, and media identified shows such as Box’s BoxWorks, Salesforce.com’s DreamForce, and Exact Target’s Connections as the innovation conferences in the enterprise.  These events such as Constellation’s Connected Enterprise, capture not only the spirit of innovation but also provide customers a vision to work towards.  Hence, most believe Open World could use much needed rejuvenation and a shot of innovation juju (see Figure 1.)

Figure 1. Oracle Open World Lights Up San Francisco From September 22nd to September 27th

“Next Slide Please”: Oracle Enters A Period Of Reinvention At #OOW13

Walking through the event on Saturday (Day 0) and today (Day 1), one will notice a slight change in the spirit of the event. While half the base is die hard Oracle Red Stack customers (i.e. those who grew up from database to middleware to apps), the good news is the other half of the Oracle customers who came in through acquisition (i.e. or some say by accident) are present in larger numbers.  These customers by acquisition sought best of breed, took more risks, and fought in some cases not to be on the Oracle Red Stack.

For Oracle to win the innovation battle, the company must win over the mind share of the Oracle customers by acquisition.  In fact, these customers represent the early adopters representing market leaders and fast followers while the core Oracle Red Stack is more cautious adopters and laggards (see Figure 2).  Market leaders and fast followers have key components required for successful building blocks of corporate IT and often have line of business leaders that push the envelope.  Oracle must tap into that spirit in order to move its base forward towards innovation.

Figure 2. Organizational DNA Determines Pace And Appetite For Disruptive Tech Adoption

Open World 2013 Attempts To Change The Tenor Of Oracle’s Outward Conversation

In the spirit of innovation, attendees can expect six distinct mega themes to emerge from this uber event catering to 60,000 physical attendees and potentially 100,000 online.

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Monday’s Musings: NSA PRISM Scandal Hurts US Cloud Companies And Hastens The Return Of On-Premises Software

Non-US Based Organizations And Even Some US Organizations Will Not Tolerate Snooping In A Post PRISM World

Since the Edward Snowden PRISM revelations, Constellation has received a steady stream of inquiries on cloud strategy.   In fact, nervousness runs high among many non-US based companies using services from US based cloud companies across the cloud stack.  In early August 2013, the Information Technology & Innovation Foundation put out its report “How Much Will PRISM Cost the U.S. Cloud Computing Industry” Assuming that 20% of current clients switch to a non US based provider,  the report estimates a loss of $22 to 35B by 2016.

Constellation agrees.  All signs point to an anti-US stance until the security issues is addressed.  The odds on the US government moving fast on this issue are as good as Major League Baseball players or Tour de France Cyclists honoring a performance enhancement drug use ban.  In fact, Constellation is aware of at least 50+ contracts that have been put on hold or cancelled in the past 30 days.  With the EU’s Nellie Kroes already sounding the alarm bells in a way she only can, cloud buyers have taken notice.

The Bottom Line: Clients Should Consider Alternatives To Pure Cloud Models And Encryption Technology

Interesting enough, fifteen years into the cloud revolution, talk has rekindled about building on-premises software in light of this scandal. Unfortunately, the last major on-premises software company to receive funding squandered it all in 2005 and retooled to the cloud. Furthermore, a few entrepreneurs are looking at VC funding to take some key systems back on-premises.

However customers do not have time to wait for new software to arrive in the on-premises deployment option.  In the meantime, a few near term strategies have emerged:

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News Analysis: Kana Express 13 Addresses Omni-Channel Customer Service for Mid-Market

Just 14 months after announcing the acquisition of Trinicom, Kana has revealed the latest release of its cloud customer service suite for the mid-market, Kana Express.   Released on June 27, 2013, the new product reflects the company’s mission “To provide leading customer service solutions that empower our customers to create experiences that count, for their customers wherever they engage”.

Key features in the release include:

  • Advanced analytics and reporting. Kana Express features improved trend analysis, performance reporting, and forecasting.  Personalization has been improved and new reporting options include an easy to use custom dashboard designer.

    Point of View (POV):
    Analytics and reporting is often an after thought in design for mid-market solutions.  Key reports such as contact flux, cockpits, and customer monitors provide not only information, but insight into what the next best action could be.  The custom dashboard designer enables easy creation of visualizations and filtering of data by dimensions.
  • Anytime, anywhere, access. Improvements in access include mobile device usage, Section 508 disability compliance, and internationalization capabilities.  Support for 30 languages out of the box, user defined time zones, double-byte character sets, and international address validation add to a list of features supporting international business requirements .

    Point of View (POV):
    Prospects will most likely flock to the eye candy features of mobile support for device and screen readers.  However, the internationalization efforts close the gap between large expensive enterprise solutions and what mid-market solutions traditionally offered.  Constellation sees this as an immediate win for companies with an international footprint but not an international budget.
  • Improved browser based user experience. Kana Express supports Chrome, Firefox, Internet Explorer, and Safari browsers.  Additional enhancements include support for live chat, contextual next best options, and real-time access to the knowledge base.

    Point of View (POV):
    Agents can tailor the new UI and personalize to their preferences, reducing click throughs and improving productivity.  One powerful feature is the ability to automatically present contextual knowledge such as a related topic, interaction history information, or external system data.

Figure 1. Kana Express Screenshots Show New User Experience and Improved Accessability

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News Analysis: Oracle’s Cloud Strategy – Revisionist History or Cloud Genius?

This is a joint post with my colleague Holger Mueller who looks at IaaS/PaaS and Future of Work technologies for Constellation Research.

At a press conference on June 24th, 2013 with Microsoft’s CEO, Steve Ballmer ,and Oracle’s President Mark Hurd announced a cloud partnership where Azure customers will be able to run Oracle Database (no version mentioned, but Constellation expects this to be 12c), Oracle Weblogic, and Java.

Oracle also announced availability of Oracle Linux for Azure customers. Constellation believes that the deployments of the Oracle 12c, Weblogic and Java stack pieces will be deployed on Oracle’s Linux.  Should this be true, the approach makes sense, as this is a tested and proven hardware and software combination. Further, Microsoft has already begun to run parts of Azure on Linux.

The partnership alliance poses significant implications for both vendors and more importantly customers moving to the cloud for three reasons:

  • Java comes to Azure, a sign of pax in the .NET vs Java wars. For Applications to run on Azure, they needed to be built in C# or compatible languages. Now, with the licensing of Java by Microsoft as part of this partnership, Java applications will run on Azure. This opens doors for Java applications on the Azure cloud, as well as general more portability for Java applications. And Azure becomes a friendly cloud for the 9 million+ Java developers out there. .

    Point Of View:
    Microsoft and Oracle strike a win-win here.  Microsoft gains more language derived potential for expanding Azure and Oracle adds a marquee cloud stack to support Java.  Given the substantial overlap of enterprise customers on both Microsoft and Oracle, customers will benefit from more cross cloud compatibility for Java while supporting Azure for IaaS.
  • Azure will run Oracle Weblogic and the Oracle Database. Microsoft will support Oracle Linux in Azure as the foundation to run the middleware and the database stack.  Though the press release and the press conference did not specify which Oracle database, Constellation speculates this is for Oracle Database 12c. In addition, Oracle announced license mobility for customers who want to run software on Azure and bring Oracle Linux to Azure..

    (POV):
    Interesting enough when Larry Ellison spilled the news for this announcement during the Q4 Oracle earnings call, this was not about the Oracle Database, but very specifically about Oracle 12c. It’s not clear why 12c is not specifically referenced in the press release – but with the ORacle 12c general availability slotted for June 25h, 2013, this moment may not have been the time to steal the thunder.  Of note, it is not only the database, but also the Weblogic application server which will be deployed on Azure. This comes as a surprise at first, but given the work Oracle has done to integrate the former BEA flagship product with 12c and Java – it was a question of taking whole technology building and avoiding too many interfaces. Why run Java apps through Biztalk to an Oracle database?  Constellation views this as a smart move by both companies, as it allows Azure customers to utilize more of the Oracle products, that are more and more entwined due to the Fusion and Exaxxx products.
  • The hypervisor is where Microsoft and Oracle draw a line in the sand. Oracle will support Microsoft’s hypervisor Hyper-V to be the demarcation line between higher level application code and the Oracle products that now run in Azure.  The combined offering will be running on Hyper-V, which creates some headaches for Oracle on the hypervisor level as Constellation predicted, and will be supported by Oracle support as running on Windows Azure. .

    (POV):
    This poses some engineering work for the Oracle hypervisor teams, but nothing impossible to achieve. And the benefits are tangible, Hyper-V built applications will now be able to run on the Oracle Database (12c, and on Oracle Linux). This will give a lot of performance critical (think Dynamics) applications that were limited by SQL Server scalability before, new breathing room.  Microsoft was able to protect higher level applications of its technology stack with this agreement and at the same time Oracle benefits from a whole ecosystem of Hyper-V compatible applications. The cost of supporting Hyper-V for Oracle, which is tangible, is however dwarfed by this additional market potential. And it gives Mircosoft an important leg up against VMware’s vSphere.  Constellation believes this has significant implications in the cloud stack wars among Amazon, Google, HP, IBM, and VMware.  In unusual candidness for these  Oracle listed the current and future deliverables for the alliance in an blog post here.

Why did this happen?

As previously mentioned, this would have been a very good April Fool’s headline – even back on April 1st 2013. So this alliance comes as a surprise pretty much to all industry observers, at least we have not seen anyone claiming to see this one coming.

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Monday’s Musings: The Controversy Surrounding Gartner’s CRM Market Share Analysis

The Gartner Market Share Analysis:CRM Software Report Raises Questions On Accuracy of Market Sizing Reports

The recent Gartner report “Market Share Analysis: Customer Relationship Management Software, Worldwide, 2012” has generated some controversy among the enterprise software set.  The report and other reports such as these, are often used for bragging rights by vendors and for buyers to gauge vendor viability.

This specific report attempts to rank CRM software spending by vendor using total software revenue worldwide.  The good news – the numbers are directionally correct with Salesforce.com claiming the top mantle from SAP this year with $2.525 billion in CRM revenue (see Figure 1). The bad news – many question the accuracy of the actual revenues numbers as listed in the press release, especially for the Microsoft Dynamics CRM business.

As Scott Bekker at Redmond Magazine reported, “Gartner put Microsoft’s CRM revenue at $1.1 billion, up from $900 million in calendar-year 2011.  That’s a sizable bump. As of May 2012, Microsoft was only claiming that all of Dynamics, which includes Microsoft’s established ERP products as well as CRM, amounted to $1 billion in annual revenues.”

Mssr. Bekker makes a polite but astute point.  The 26% bump in CRM revenue is significant.  However, the total revenues are questionable.  In any modest observation, that kind of overall growth in the Microsoft Dynamics unit would have Microsoft CEO, Steve Ballmer, shouting from the tops of Mount Ranier and probably have Kirill Tatarinov next in line to be Microsoft’s CEO.

Figure 1. Gartner’s Recent CRM Software Spending by Vendor, Total Software Revenue Worldwide, 2012 (Millions of Dollars)

Not to violate any copyright laws, despite fair use laws, here’s a link to the full table found in their press release. A recreated table below shows the rankings.

Bottom line it shows Microsoft in 4th place for CRM with over 1.1B in revenue.

Organization 2012 revenues 2012 marketshare (%) 2011 revenues 2011-2012% growth
salesforce.com 2,525.6 14.0 2,004.6 26.0
SAP 2,327.1 12.9 2,325.1 0.1
Oracle 2,015.2 11.1 1,870.0 7.8
Microsoft 1,135.3 6.3 900.9 26.0

The Market Sizing Game For Vendors And Legacy Analyst Firms Flawed With Faulty Methodology

In reality, the market sizing game for enterprise software is both an art with some science.  Having played this role as a vendor in an Analyst Relations capacity in a past life, one knows that executives can not disclose such financial information directly to a research or market sizing firm.  The research analysts must play a guessing game with the software executive and ask 100 questions to zero in on a number.  Unlike hardware, where individual counts are more obvious, software revenue sizing requires analysts to dig deep into financial statements and any conversation where growth rates have been discussed.  Revenues are hidden in bundling, suite sales,  discounting schemes, channel revenue deals, OEM arrangements, and inter-company transfers.  To complicate matters, SaaS revenue calculations can differ from how on-premises revenues are calculated.  Analysts must also determine the truthfulness of vendors who are trying to indirectly guide analysts to the “right” numbers.  In short, this is hard work.

As assumptions are built on previous numbers, one false guess in a previous year, cascades and geometrically inflates or deflates a set of future numbers.  In the case of these CRM numbers, one may speculate that past executives may have provided a higher number than actually generated, resulting in the current alleged inaccuracies.  Another speculation may come from previous and current analysts who may only focus on one area of the business and not have the total picture on the Microsoft Dynamics overall business.  There are many points of inaccuracy that can occur with software revenue market sizing and every legacy analyst and market sizing firm works hard to avoid these situations.  For market analysts, dissecting revenue from vendors such as SAP and Oracle is often difficult as these numbers and break outs are masked with multiple acquisitions and product lines.

To be clear, the SAP and Oracle numbers also seem inflated.   These numbers have been inflated over decades.  Given that these vendors also have many other lines of revenue aside from CRM, it’s hard to gauge the accuracy of their numbers without some digging.  Now one would assume a market sizing firm should be doing this right?

The Microsoft Dynamics CRM Revenues Do Not Meet The General Sniff Test

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Executive Profiles: Kirill Tatarinov, President Microsoft Business Solutions

Welcome to our series of market maker 1:1 interviews with business leaders in the world of enterprise software  The interviews provide insightful points of view from a customer, industry, and vendor perspective.

Kirill Tatarinov, President of Microsoft Business Solutions (@KirillTatarinov)

Kirill Tatarinov is president of the Microsoft Business Solutions Division (MBS) with responsibility for MBS research, development, sales, marketing, and operations. MBS develops and markets a portfolio of Microsoft Dynamics products and services covering a broad range of functions including financial, customer relationship and supply chain management (ERP and CRM) that bring simplicity, value and agility to organizations of all sizes.

Prior to joining MBS in 2007, Tatarinov led the Management and Solutions Division at Microsoft, where he was in charge of the Microsoft Windows management technologies and products, including Microsoft System Center, Systems Management Server, Microsoft Operations Manager and Microsoft Application Center, as well as Windows Server solutions, including Microsoft Small Business Server.

Tatarinov joined Microsoft in 2002 with 15 years of experience in the software industry. Before joining Microsoft, Tatarinov was senior vice president and chief technology officer for BMC Software Inc. While at BMC he also had responsibility for corporate development and for Patrol Software business. Before that, Tatarinov was co-founder, chief architect, and head of R & D for Patrol Software, the developer of innovative software solutions for systems and network management acquired by BMC in 1994. Before co-founding Patrol Software, Tatarinov worked in several systems, networking and consulting companies in Russia, Israel and Australia.

In January 2002, Computerworld named Tatarinov one of the business world’s 2002 Premier 100 IT Leaders. This award honors individuals who have had a positive impact on their organizations through the use of technology.

Tatarinov grew up in Moscow, Russia, and holds a master’s diploma in systems engineering from Moscow University of Transport Engineering (MIIT) and an MBA from Houston Baptist University. He serves on the Seattle advisory council of the U.S. Fund for UNICEF, whose mission is to help the world’s children.

Tatarinov lives in the Seattle area with his family. Outside work, he spends his time skiing and is a Level-1 ski instructor, certified by the Professional Ski Instructors of America.

The Interview

Constellation sat down with Kirill Tartarinov in New Orleans, LA during the 2013 Microsoft Convergence Conference to discuss the changes since 2007 and to take a look forward for the Microsoft Dynamics product line.

1. Customers don’t always associate Microsoft with innovation in the enterprise side. What are some milestones that counter that perception Dynamics?

Kirill Tartarinov (KT): While our roots as a company have been on the consumer side, make no mistake, enterprise is hugely important for what we do. People overlook the fact that Microsoft has been providing mission-critical solutions for over 20 years. We achieved significant milestones across the entire product portfolio from Windows and SQL Server to Office, the Cloud both public and private, and Dynamics. We have seen significant innovation from consumer to the enterprise. Innovation that helps Microsoft serve as the trusted advisor between consumers and business customers. But as far as milestones, what is most important is what we see here at this event (Convergence). Convergence is a reflection of our success in the enterprise. Every single one of our customers and partners are proof points. It is their path, their story of how they are innovating using both our enterprise and consumer technologies and making them better at what they do. As we move forward, we see the complete power of Microsoft coming together in the enterprise across Windows Server, Azure, Office 365, and Dynamics.

We are in the business of transformation. We are privileged to wake up every day and get the chance to help businesses unlock their potential by uniting the tremendous innovation across Microsoft and delivering it to people in business in specific scenarios, really helping every person be the best at what they do and helping businesses succeed by uniting their people, processes, and technology with their customers. That’s our mission. It is our differentiator and something Microsoft is in a unique position to deliver.

2.Let’s take a look at over the past 6 years since  you joined MBS in 2007, what did you set out to achieve for across the division and across Microsoft?

(KT): There were three things I set out to achieve on behalf of our customers and the company. First, I set out to unite all MBS employees from Fargo to Hyderabad to Copenhagen to Moscow and Sao Paolo. Second, I had to turn Microsoft Dynamics into a profit engine for our shareholders and third, I had to create a sustainable, long-term growth strategy to ensure our prominence in the enterprise business applications long into the future.

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Research Summary: Constellation Cosmos – Cloud Bill of Rights for SaaS Apps, Actian and Netsuite Achieve Epic Status

Constellation Certifies Vendors On How Well They Perform To The Cloud Bill Of Rights

The Enterprise Cloud Buyer’s Bill of Rights provides a tool for clients and vendors to change the tenor of contract negotiations from user subservience to an equal and collaborative long-term partnership.  This Constellation CosmosCertification for the Cloud Buyer’s Bill of Rights: SaaS Applications is intended to help buyers and prospective buyers of enterprise cloud applications identify the vendors that meet the spirit of the Cloud. The certification applies four of the six Cosmos categories and includes ownership experience, use case support, corporate vision and ecosystem feedback. Constellation rates vendors on a 0- to 5-point scale.  Constellation’s goal is to recognize vendors for honoring these rights upfront in their existing contract language and throughout the buyer and ownership experience.

Behind The Scenes On How The Cosmos Works

Constellation CosmosTM is Constellation’s flagship quantitative and qualitative product and solution comparison tool.  A typical Cosmos contains 50 to 150 exception-based criteria used to help buy-side clients with product and solution selection across the galaxy of choices.  The evaluation comprises of six major categories on a 0 to 5 point scale where Constellation evaluates key criteria in:
  1. Ownership experience. Criteria evaluated include assessments on vendor executive advocacy and accountability, timely and meaningful interactions, professional customer support, overall sales cycle and buying process, quality of product and service, and ongoing transparency.
  2. Solution offering. Criteria evaluated include assessments of functional requirements, technical requirements, architectural considerations, and deployment options pertinent to the category.
  3. Use case support. Criteria evaluated include assessments on the ability to support anywhere from 3 to 12 popular use cases requested by end user clients.  Use cases typically align with a business process. Considerations include geographical requirements, market size requirements, and industry requirements.
  4. Market execution. Criteria evaluated include assessments of the total number of live customers, total number of customers including prospects, total number of customers over 1B in revenue, funding raised to date (if a startup), total annual revenues, total number of external trained professional service staff, total number of internal trained professional service staff, number of updates per year, and geographic penetration
  5. Corporate vision. Criteria evaluated include assessments of the strength of management team, product direction, level of innovation, market leadership, community stewardship, and investment in R&D.
  6. Ecosystem feedback. Criteria evaluated include assessments of vendor-supplied references (at least 3), direct customer feedback from inquiries and interactions, and partner feedback.
The final ratings place solutions into 5 categories
  1. Epic. Composite scores typically above 4.25
  2. Stellar. Composite scores typically between 3.25 and 4.24
  3. Emerging. Composite scores typically between 2.25 and 3.24
  4. Nascent. Composite scores typically between 1.25 and 2.24
  5. Laggard. Composite scores typically between 0 and 1.24

The Constellation CosmosTM graphic is a three-dimensional visualization tool built from three axes:

  • Capability represents the X-axis. Capability includes the use case support and solution offering categories.
  • Strategy and execution drives the Y-axis. The score comprises of market execution and corporate vision.
  • Reputation forms the Z-axis. The scores come from the ownership experience and ecosystem feedback categories.
  • Weighted score defines the radius of the sphere. The scores are the composite from capability, strategy, and reputation.

 

Constellation updates Cosmos’ periodically as client demand dictates.  Some reports may be deprecated over time based on lack of market interest.  Constellation reserves the right to determine when reports are updated and in what manner.

NetSuite and Actian Corp Achieve Epic Status In the First Of Many Certifications Of Cloud Companies
For the Cloud Bill of Rights: SaaS Applications, the application and the vendor contract were evaluated on 61 criteria.  Constellation evaluated the vendors based on the experience of over 1500 software contract negotiations.

Netsuite provides an end-to-end cloud business application suite and was certified against the 61 criteria listed in Constellation’s Cloud Bill of Rights and the Constellation Cosmos methodology. Netsuite achieved a 4.48 weighted score and achieved the highest certification – Epic for its achievement in meeting the 61 requirements of the Cloud Buyer’s Bill of Rights category

Actian Corporation was certified against the 61 criteria listed in Constellation’s Cloud Buyer’s Bill of Rights and the Constellation Cosmos methodology.  Actian Corporation’s acquired Pervasive Software on April 11, 2013. Constellation evaluated Pervasive Software prior to the merger. The cloud based integration application known as Actian DataCloud and its contract were evaluated on 61 criteria in the Cloud Buyer’s Bill of Rights: SaaS Applications.. Actian DataCloud achieved a 4.77 weighted score and achieved the highest certification – Epic for its achievement in meeting the 61 requirements of the Cloud Buyer’s Bill of Rights category.

Report Links

Download a snapshot of the reports at the Constellation Research website:

Constellation Cosmos – Cloud Bill of Rights: Saas Apps Actian Corp.

Constellation Cosmos – Cloud Buyer’s Bill of Rights: SaaS Apps – Netsuite, Inc.

Your POV.

How’s contract negotiations with your Cloud Vendors? 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.

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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.

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