Posts Tagged ‘Enterprise Business Apps Vendors’

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.

Trends: Real World Lessons In Optimizing The Customer Service Experience From Kana Connect

Workshop On Optimizing Your Customer Service Experience Identifies Eight Strategies
At the 2013 Kana Connect event from September 15th to 17th, 2013 in New Orleans, I had the pleasure of co-leading a workshop with Scott Hays a Sr. Director, Product Marketing for KANA Software.  The goal of the session was to explore eight strategies to improve customer experience. 

By now, you are well aware that “experience counts.” Your customers’ loyalty and future purchases hang in the balance. In this session, we’ll explore the key things you can do to make sure their experiences are positive. Ray Wang from Constellation Research and Scott Hays from KANA guide an interactive workshop to invigorate your future initiatives.

Speaker(s): Scott Hays, Ray Wang, Constellation Research

The event began with a overview of  Constellation 9C’s of customer engagement  and then an overview of the eight ways to optimize your customer service experience.  Teams were broken up to documen current state and to rank future state.  Teams were told to identify the top three ways among these eight strategies:

  1. Effortless and personalized
  2. Channel convenience
  3. Channel consistency
  4. Social media
  5. Unified agent desktop
  6. Agent knowledge
  7. Process-driven
  8. Internationalization

Results Show Future Focus on Channel Consistency, Social Media, and Effortless and Personalized

Given the Kana customer base, current state priorities of agent knowledge, process driven, and channel convenience came as little surprise to the participants.  In fact, most workshop attendees have had More…

Event Report: The Evolution And Maturation of @Tibbr at #Tucon2013, the Tibco User Conference

tibbr Continues To Show Momentum In Customer Adoption And Addition Of Key Enterprise Social Features

On October 14th to 17th 2013, the Tibbr enterprise social crowd mingled with the core Tibco faithful at this year’s TUCON 2013 user conference in Las Vegas.  (An analysis of the broader Tibco announcements can be found from my colleague Holger Mueller).  While the Tibbr team continues to build synergies with the core Tibco offering in Big Data, Events, Integration, and BPM, the Tibbr team also made key announcements that include:

  • tibbr crosses the 6.5M users adoption mark. The team announced paid user growth from 1.2M to 6.5M in over a year.  Distribution partnerships with Amazon Web Services (AWS), KPN, and T-Systems highlight future opportunities for growth.

    POV:
    The team’s partnerships and geographic expansion in Latin America and EMEA have paid off. With an entry point of $12 per user per month, 6.5M users represents a sizable growth in subscriber base, even after enterprise wide discounting.  Given the virality of successful enterprise social networks (ESN), tibbr could prove to be a key cross-sell lead gen for the rest of Tibco’s products.
  • tibbr Files and partnership with Huddle. tibbr Files allows customers to integrate with existing content and file systems such as Box, Dropbox, Google Drive, Huddle, and SharePoint.  Users can access tibbr to view conversations, work on files, and collaborate through the tibbr interface.  the tibbr team announced its partnership with Huddle at Tucon 2013.

    Point of View (POV):
    Customers have been clamoring for more out of the box integration options to unify content repositories.  The partnership with Huddle is crucial for organizations that rely on Huddle’s security mechanisms.  In tibbr, users retain their security, permissions, and versions when accessing Huddle’s files.
  • tibbr Tasks. tibbr Tasks provides social task management capabilities.  Users can create tasks in process, track and update tasks via social channels, and manage a visual portfolio of tasks across all project management tools.

    POV:
    Tasks are a key requirement for supporting Purposeful Collaboration as described by colleague Alan Lepofsky. Many customers have deployed tibbr to unify disparate business processes.  The addition of tasks embedded in enterprise social will improve collaboration at the business process level.
  • tibbr Pages. The new pages product allows users to publish content within and outside the organization.  Pages also retains tibbr security rules.

    POV:
    The tibbr team takes a stab at the proliferation of Microsoft SharePoint kudzu with its own application.  By enabling users to find, publish, and share, the tibbr team adds another key tool to enabling content creation and collaboration for users.

Figure 1. The Tucon 2013 Scene and New Tibbr App Screen Shots



<iframe align=center src=http://www.flickr.com/slideShow/index.gne?user_id=35408001@N04&set_id=72157636735160435&detail=yes frameBorder=”0″ scrolling=no width=”600″ height=”500″></iframe>

Source: 2013 R Wang and Insider Associates. All rights reserved.

The Bottom Line: tibbr Emerge As A Key Player For Enterprise Social

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News Analysis: Zuora Raises $50M Series E Round, Rides #MatrixCommerce Wave

Zuora Rides The Wave In The Subscription Economy

On September 5th, 2013, Foster City, CA based Zuora, announced $50 million in Series E capital.  The announcement has significant ramifications not only for Zuora’s self proclaimed subscription economy category, but also the broader business theme of matrix commerce because Zuora:

  • Expanded the investor pool. Zuora successfully added Next World Capital, Northgate Capital and Vulcan Capital to existing investors.  Benchmark Capital, Greylock Partners, Index Ventures, Redpoint Ventures, Shasta Ventures, Tenaya Capital, Workday founder and co-CEO Dave Duffield and Marc Benioff, chairman and CEO, salesforce.com all contributed to the existing round.

    Point of View (POV):
    The quality of the investment round and the amount indicate significant affirmation that the subscription economy thesis carries a gravitas among the A-list of Silicon valley investors and angels.   With $132.5M in funds raised to date, Zuora is sitting on tremendous amounts of cash from fundraising.  While Zuora could wait well into 2014 for an additional round, the move to raise additional capital will provide Zuora with an advantage over any new entrants or potential direct competitors.  Buyers can expect Zuora to be around for quite some time.
  • Added new board members with deep experiences. CEO and founder Tien Zuo adds Abhishek Agrawal of Vulcan Capital and Craig Hanson of Next World Capital to the board.

    Point of View (POV):
    Craig Hanson  brings significant experience in mergers and acquisitions of late stage and public companies.  Successful acquisitions include MXLogic, LeftHand Networks, NexGen Storage, Nimsoft, PSS Systems, and SenSage.  Abhishek Agrawal brings deep consumer experience from his General Atlantic heritage including Alibaba Gropu, Bazaarvoice, Dice, Facebook, Gilt Groupe, and Network solutions.  Buyers can expect more expertise in supporting vertical markets.  Buyers can expect new partnerships and entry into new geographies.
  • Demonstrated continued growth in a new market category. Since 2007, Zuora’s core solution provides subscription commerce, billing, and finance solutions for pay-as-you-go pricing models.   The More…

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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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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Tuesday’s Tip: It’s Time To Consolidate Social Business Platforms

Greater Adoption In Social Business Signifies A Move To Consolidate Platforms

Constellation’s buy-side clients tend to fit in the market leader or fast follower categories when it comes to organizational personas of disruptive technology adoption.  Since 2010, respondents have progressed through the DEEPR framework and the latest results from 2012 indicate that most survey respondents have moved to Level 3 (see Figure 1).  Changes between 2010 and 2012 show the following top three priority shifts as users move from Level 2 (Experimentation) to Level 3 (Evangelization):

  • The top challenge among respondents is choosing the right platform (63.8%) among the many inside an organization.
  • Over half (56.8%) of the respondents have incorporated social into business models.
  • Respondents fostering internal collaboration (53.5%) now must worry about adoption challenges.

Figure 1. Respondents Shift to Level 3 in DEEPR Framework for Social Business Adoption

The Bottom Line.  Its Time To Scale The Technology While Pushing Ahead On Innovation

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News Analysis: New SAP Customers Face Maintenance Hike

SAP Plans A Standard Support Maintenance Fees Hike Of 5.5%For New Customers

For new customers, SAP announced its intent to raise its standard support maintenance fee from 18% to 19% effective July 15, 2013.  The standard support option was reintroduced in January 14, 2010, after much pressure from user groups.  A few key takeaways:

  • Price hike follows original plans. SAP has provided a six month advanced announcement to raise maintenance for new customers.  SAP has noted that “the adjustment does not apply to any existing maintenance contracts for SAP Standard Support closed before July 15, 2013″

    Point of View (POV):
    The announcement follows the original plan for existing customers to bring Standard Support in line with Enterprise Support by 2015 (see Figure 1).  SAP appears to be harmonizing the price increases for both existing and new customers.  While average support and service contracts are between 18 and 21% in the enterprise software world, SAP’s price increase will still keep it within the norm.
  • SAP raises maintenance rates under the guise of quality. SAP claims that the maintenance fee hike is related to “maintaining the same high level of quality support in the future.  Key features include access to support packages, new releases of standard support solutions, enhancement packages, technology updates, ABAP source code for SAP software applications, and software change management.  SAP also requires customers to use Solution Manager.

    (POV):
    SAP’s tried hard to justify the price increase by offering message handling, remote services, SAP Solution Manager Enterprise Edition, and access to SAP Service Marketplace as additional value added benefits.   Unfortunately, most customers find Solution Manager to be a mile wide and an inch deep, the remote services to be minorly useful, and the SAP Service Marketplace to be immature at best.   The result – customers are not getting much value for the price increase. (Fellow Constellation Analyst Frank Scavo provides a list of four questions every new SAP customer should ask.)

Figure 1. SAP Enterprise Support and SAP Standards Support Schedule circa 2010

screen-shot-2010-01-14-at-74603-am

The Bottom Line: SAP Wants To Eliminate Standard Support And Competitors to Solution Manager

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News Analysis: SAP Business Suite on HANA

Next Stop On The Road To HANA: SAP Business Suite

In a global announcement in Palo Alto, New York and Frankfurt, SAP’s top executives Dr. Vishal Sikka, Rob Enselin, Jim Haggeman Snabe, and legendary founder and chairman Dr. Hasso Plattner announced availability of SAP’s Business Suite powered by SAP HANA.  SAP has rewritten the Business Suite to work on SAP’s HANA platform and believes that customers will benefit for four reasons:

  • Smarter. The embedding of intelligence at the transactional level opens up new business models and process transformation.  SAP’s customer Derek Dyer, Director of Global SAP Services for Deere and Company, emphasized that SAP ERP powered by SAP HANA has “revolutionized” how products and services are introduced to the market, especially in the MRP world.  They see some transformational innovation as a result to faster MRP runs.

    Point of View (POV):
    Embedded intelligence has been a key failure in today’s existing transactional applications.  Customers have sought access to not only real time reporting, but also prediction.  The goal is to get to smarter decisions at all levels of the organization. Customers will benefit from embedded intelligence.  However, this will require people and technology training of the system to identify the patterns and algorithms required to serve up insight on demand.  This will require intelligence at every vertical and micro vertical business process.  Moreover, right-time requirements for in-context computing will turn out to be the surprise benefit as relevancy becomes more important through time, location, role, relationship, sentiment, and intent.  Relevancy and context provide the smartness that is missing in today’s systems.
  • Faster. SAP Business Suite powered by SAP HANA addresses the need for speed.  The in-memory columnar database reduces the input/output (I/O) time and allows for fast access to information.  The result – faster processing and faster scenario evaluation.  Fast transaction management times lead to faster decision making.

    (POV):
    The analytics and crunching capabilities is what’s driving organizations to seek faster speed.  Speed is the difference between a five day drug recall and a five minute drug recall.  Speed is the difference between a 30 day supply chain plan versus the ability to reroute 2 iPhones to your store in 30 seconds.  The impact is huge for customers if SAP does succeed.  SAP’s not the first to do this as Workday has already done this for HR and Finance.  However, for the entire SAP suite and given SAP’s market share, this is a big deal as this reduces the need for separate business intelligence systems.  The performance difference will create a huge competitive advantage for those who adopt versus those who do not.
  • Simpler. SAP Business Suite on HANA delivers consumer grade user experiences.  The goal is to embed live insight into business processes to drive immediate action.  Today, people expect consumer-grade user experiences and the power to translate their live insight into immediate action. Enzo Bertolini, CIO, Ferrero Group expects to improve the trade promotions and supply chain planning process through both better simulation and mobile access.

    (POV):
    SAP Business Suite on HANA provides SAP an opportunity to rethink how information is created, consumed, and shared.  The push to a design thinking focus within SAP has led to significant improvement of the user experience throughout their portfolio of products.  SAP Business Suite on HANA will be an opportunity to show case this new user experience.
  • Open. SAP plans to support database technology and vendor choice for its customers.  Many database partners have committed to work with SAP support in-memory optimizations and provide the necessary support to ensure that customers will succeed.  SAP is providing rapid deployment solutions, trained implementation consultants, and a comprehensive set of services to help clients make the migration to SAP HANA.

    (POV):
    SAP has the opportunity to drive down database costs and improve performance.  While the pricing model will be based on the percentage of application value, SAP must find a way to drive down overall costs if it is serious about improving adoption.  This licensing requirement must be addressed as it will emerge as the most significant barrier to adoption.

SAP Faces A Challenge of Adoption Not Because of Technology, But Because of Customer Vision

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Monday’s Musings: Trends In The Top Software Insider Posts of 2012 (#softwareinsider)

Thank You For Your Support

SoftwareInsider.org generated almost 10 million page views in 2012 (see Figure 1).  This does not include syndication through Constellation Research, Forbes (discontinued in 2012), Enterprise Irregulars, Computerworld UK, and other great media partners.

Figure 1.  Software Insider Achieved 9.8M Page Views for 2012

Classic Posts Address The Key Fundamentals In The Disruptive Technology Shift

Four posts have made the all time favorite list and address the 5 consumer technology forces that influence enterprise software.

  1. Monday’s Musings: How The Five Consumer Tech Macro Pillars Influence Enterprise Software Innovation
  2. Research Report: The 18 Use Cases of Social CRM and The New Rules of Relationship Management
  3. Tuesday’s Tip: Understanding the Many Flavors of Cloud Computing
  4. Best Practices: Five Simple Rules for Social Business

2012 Top 40 Reflects A Broader Shift To Business Outcomes And Technology Adoption

Analyst Relations and the World of Influence - The top blog post of 2013 discussed the future of the industry analyst versus legacy analyst firms.

Consumerization of Technology and The New C-Suite – The impact of technology on the C-suite has never been greater.  As business strategy relies more on technology, CMOs, CFOs, and other line of business heads can expect to work more closely with the CIOs and CTOs.

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Market Maker 1:1: Steve Miranda, Oracle Fusion Applications Update – The Inside Story

The Inside Story On Oracle Fusion Apps At The End of 2012


Constellation sat down with Steve Miranda, Oracle’s Executive Vice President of Oracle Applications Product Development to discuss the state of Oracle Fusion Apps in a no-holds barred honest conversation about what’s working, what’s not, and what to look forward to in 2013.

R “Ray” Wang (RW): Steve Miranda is Executive Vice President of Oracle Applications Product Development. He is responsible for leading all aspects of product strategy, product development, and product delivery for Oracle’s applications and related cloud services. This includes Oracle Fusion Applications and Oracle’s newest products for customer service and support, commerce, and talent management.

Mr. Miranda joined Oracle in 1992 and has held a variety of leadership positions within the development organization. In 2007 he was asked to lead the engineering of Oracle’s next-generation suite of software applications, Oracle Fusion Applications. Under Mr. Miranda’s leadership, Oracle has continually delivered on its promise to help its applications customers innovate and remain competitive while leveraging their existing IT investments and increasing the value of those investments with new Oracle products and services.

Prior to Oracle, Mr. Miranda worked at GE Aerospace. He holds degrees in mathematics and computational sciences from Stanford University.

 

CATCHING UP ON ORACLE FUSION APPLICATIONS TRACTION

(RW): As 2012 is coming to an end it is a good time to reflect on how Oracle Fusion Applications has been doing this year. It would seem that Oracle’s been quite quiet about Oracle Fusion Applications throughout the year. Is the product selling? What’s the state of the Oracle Fusion Applications product lines?

Steve Miranda(SM): Oracle Fusion Applications is doing very well. We’re actively selling the product. In fact, we already have over 400 customers on Oracle Fusion Applications. We’re doing better than Salesforce.com when they started. Keep in mind, we have a rich customer base looking for innovation.

RW: When you say “Oracle Fusion Applications is selling well”, is that the whole suite or components of Oracle Fusion Applications?

SM: We are actively selling the product. More than 400 customers are on Oracle Fusion Applications, that’s any part of Oracle Fusion Applications, not including RightNow, Taleo, Oracle Business Analytics, or Oracle Fusion Middleware. Two thirds of the customers have chosen to deploy in a SaaS model. Then the second largest deployment model but far below are on-premise and the rest are hosted in our managed services.

RW: Does “managed services” means they own their own license, right?

SM: That’s correct. What’s powerful about these deployments patterns is that customers are accessing innovation faster than before. We are at over 100 live customers and are averaging one go-live a day right now.

RW: I understand that Oracle deployed Oracle Fusion Applications internally? How was that experience in “drinking your own champagne”?

SM: Ray, that’s correct. We did drink our own champagne and we are now using Oracle Fusion CRM internally instead of Siebel.. We have a global single instance for the business. When we deployed, we started out with 2 instances to show case a co-existence approach and an end-to-end Oracle Fusion Applications approach. As of June 1, 2012, Oracle Fusion CRM was up around the world. All the territories, forecasting, quotas, sales force automation, and contacts are in Oracle Fusion CRM globally.

RW: Is it one instance now?

SM: Yes. We also went live w/ Oracle Fusion Financials Accounting Hub on the back end. We replaced Hyperion and Oracle E-Business Suite GL and also went live June 1, 2012. We’ve already done several month-end closes and we also have Oracle Fusion Talent Performance Management up live. Employees and managers are now doing goal setting and appraisals.

RW: To be honest with you Steve, we aren’t seeing Oracle much in head to head competitive new deals. We don’t see big press releases about new wins. Where are the customers? Who’s buying what and why?

SM: Well, first of all, many of our existing customers are coming to us about Oracle Fusion Applications. Second of all, and you may not believe this, we’re not focused on publicity, but rather we want to ensure customer success.. Each go-live is very important to us. In our first set of go-lives, we have 10,000 customers who want to talk to the first 10 go lives. We also don’t want to overwhelm our initial customers.

Let me give you some details and examples so you understand the breadth and depth of what the Fusion Apps base looks like and so there’s no confusion. Here’s a selected slice:

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