Monday’s Musings: Avoiding Cloud Vendor Lock-In

Customers Must Hurry To Address The Mistakes From Shadow IT SaaS/Cloud Adoption Amidst the hey day of the early years for software as a service (SaaS) and Cloud, many line of business executives signed simple month to month, user based contracts without the burdens of IT and scrutiny of vendor procurement.  These edge applications and […]

Posted by R "Ray" Wang on October 25, 2015


Event Invitation: Webinar on Building Win-Win Relationships With Oracle

Dealing With Tough Contract Negotiation Scenarios Join me Thursday, September 24th, 2015 from 8 to 10 am PT for a webinar chat that shares best practices in building win-win relationships with Oracle With the experience of negotiating thousands of Oracle contracts, this is an exclusive webinar on building your Oracle relationships. Key topics to be […]

Posted by R "Ray" Wang on September 12, 2015


Tuesday’s Tip: How To Plan For SAP’s S/4 HANA Upgrade And Contract Negotiations Strategy #SAPHANA

Launch Of SAP S/4 Provides Catalyst For Organizations To Update Their Next Gen Apps Strategy The February 3rd, 2015 New York City SAP S/4 launch event brought a positive closure for customers seeking the next generation apps strategy from SAP.  At a high level, the SAP S/4 HANA offering offers: a new suite of applications […]

Posted by R "Ray" Wang on February 3, 2015


Event Report: SAP Australian User Group Summit Highlights Systematic Concerns About SAP

Australian Users Concerns About SAP Similar To Other Global Users Over 500 Australian SAP users gathered between September 8th and 9th, 2014 at the Sydney Hilton for the annual user conference.  Users came from IT roles, marketing, HR, and finance.  In speaking to over 100 attendees, key concerns include: Lack of clarity in future product […]

Posted by R "Ray" Wang on September 8, 2014


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 […]

Posted by R "Ray" Wang on February 17, 2014


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 […]

Posted by R "Ray" Wang on June 25, 2013


Tuesday’s Tip: Putting the Kibosh On ERP Vendor Sales Reps Who Troll For Indirect Access

Constellation Sees An Alarming Increase In Inquiries Constellation has received an alarming increase in inquiries about an unethical vendor sales practice coined as “trolling for indirect access”. Indirect access is when a vendor claims that a client is accessing their perpetually licensed software in an unintentional manner or inappropriately licensed manner. One vendor uses a […]

Posted by R "Ray" Wang on May 28, 2013


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: […]

Posted by R "Ray" Wang on April 17, 2013


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 […]

Posted by R "Ray" Wang on February 4, 2013

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

Thank You For Your Support 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 […]

Posted by R "Ray" Wang on January 3, 2013


Tuesday’s Tip: Act Now To Leave The Door Open For SAP Third Party Maintenance Options

The Real Deadline To Consider Third Party SAP Maintenance Is September 30th In conversations with hundreds of SAP customers, many have not realized that they must act now in the next 30 to 45 days if they want to move off of SAP customer specific maintenance from extended maintenance for older products. Despite the support […]

Posted by R "Ray" Wang on August 21, 2012


News Analysis: UsedSoft Vs Oracle Ruling Opens Up Monopolistic Practices By Software Vendors

Used Software Pioneers Gain A Small Victory In A Shrinking On-Premises Software World The surprise July 3rd, 2012 judgment by the Court of Justice of the European Union for UsedSoft GmbH v Oracle International Corp rules that “An author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs […]

Posted by R "Ray" Wang on July 4, 2012


News Analysis: Spinnaker Expands JD Edwards Support With Versytec Acquisition

Versytec Acquisition Addresses Growing Demand For JD Edwards Support Denver, Colorado based Spinnaker Management announced on March 6th, 2012 its acquisition of competitor Versytec.  For those who remember their third party maintenance (3PM) history, Versytec was among the first firms to announce third-party maintenance services within a year after PeopleSoft acquired JD Edwards in July […]

Posted by R "Ray" Wang on March 25, 2012


Research Summary: Best Practices – Three Simple Software Maintenance Strategies That Can Save You Millions

Forward And Commentary Software ownership costs continue to escalate as vendors accelerate their efforts to capture support and maintenance revenues. Some vendors have gone to the extreme to eliminate third-party options for their customers. This best practices report examines three strategies to free up unnecessary costs to fund innovation and new projects. A. Introduction On […]

Posted by R "Ray" Wang on March 18, 2012


Tuesday’s Tip: Five Cloud/SaaS Contract Negotiation Tips For 2012

Business Leaders Often Poorly Prepared For Cloud/SaaS Contract Negotiations Business leaders often take great care in building their Cloud and SaaS strategy, only to have many of the benefits of flexibility and agility hampered by overlooking details in their cloud contracts.   In conversations with over 200 cloud customers in 2011, key reasons include: A […]

Posted by R "Ray" Wang on January 10, 2012

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News Analysis: Microsoft Licensing Update – May/June 2011

Keeping Up With The Latest In Microsoft Licensing Given the vast array of Microsoft products and licensing categories, an organization may often feel overwhelmed by Microsoft’s policies.  While there may be some complexity, these series of posts are designed to provide up to date commentary and analysis on new programs as they become available.  Feel […]

Posted by R "Ray" Wang on June 27, 2011


Tuesday’s Tip: Dealing With Pesky Software Licensing Audits

Organizations Report Increase In Software Licensing Audits Across the board, the largest complaints about software vendors and their business practices have come from increasingly aggressive software auditing practices.  Once thought to be a small possibility, the software vendors now wield this big stick to drive up sales and of course ensure compliance.  Given the 32 […]

Posted by R "Ray" Wang on April 19, 2011


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 […]

Posted by R "Ray" Wang on January 4, 2011


Research Summary: Software Insider’s Top 25 Posts For 2010

Themes In 2010 Reflected The Buy Side Demand For Both Optimization and Innovation Technology buyers in 2010 focused most of their priorities on finding cost savings through legacy optimization, navigating a flurry of disruptive technologies, and designing/experimenting with new business model innovations.  Consequently, the top 25 posts for 2010 reflected these 3 major themes: Legacy […]

Posted by R "Ray" Wang on January 2, 2011


Polls And Surveys: Insider Insights™ – Customer Centric Cloud Agreements

Annual Evaluation On SaaS Satisfaction Begins This Fall The Software Insider Insights™ solution evaluation and buyer comparison tool will launch this Fall.  The first report focuses on Customer Centric Cloud Agreements – Software-as-a-Service (SaaS).  This evaluation will: Identify the leading seller/vendors delivering SaaS based applications that adhere to the spirit of the cloud Evaluate seller/vendors […]

Posted by R "Ray" Wang on August 26, 2010


Tuesday’s Tip: Dealing With Vendor Threats For “All Or Nothing” Maintenance Agreements

Recent Client Interactions Hint At Increasingly Aggressive Vendor Behavior Conversations with 11 enterprise apps customers in the past two months indicate stricter enforcement of vendor “All or Nothing” maintenance policies.  “All or Nothing” maintenance policies often require customers to put all licenses on maintenance or receive no maintenance from the vendor.  These policies also prevent […]

Posted by R "Ray" Wang on July 20, 2010


News Analysis: Microsoft Licensing Update – May/June 2010

Keeping Up With The Latest In Microsoft Licensing Given the vast array of Microsoft products and licensing categories, an organization may often feel overwhelmed by Microsoft’s policies.  While there may be some complexity, these series of posts are designed to provide up to date commentary and analysis on new programs as they become available.  Feel […]

Posted by R "Ray" Wang on June 6, 2010


News Analysis: Microsoft Licensing Update – April 2010

Welcome To The First Of A Series Of Posts On Microsoft Licensing Updates. Given the vast array of Microsoft products and licensing categories, an organization may often feel overwhelmed by Microsoft’s policies.  While there may be some complexity, these series of posts are designed to provide up to date commentary and analysis on new programs […]

Posted by R "Ray" Wang on April 28, 2010


Tuesday’s Tip: Dealing With Vendor Threats To Charge For Back Maintenance Fees

Four Common Customer Scenarios Will Trigger Vendors To Raise The Back Maintenance Fee Discussion Back maintenance fees describe the amount an organization would have paid for maintenance if they would have continued to pay the usual stream required to access support, bug fixes, patches, and upgrade rights.  As economic conditions have worsened, many organizations have […]

Posted by R "Ray" Wang on April 13, 2010


Monday’s Musings: Decoupling Support From Maintenance – What Apps Vendors Can Learn From Microsoft Dynamics

Who Says Support Has To Be Bundled With Maintenance? About a decade back, vendors would offer support and maintenance as two separate line items on their contracts.  Support would run about 5 to 10% the license fee and so would maintenance.  Keep in mind, average support and maintenance fees were under 15% back then.  Here’s […]

Posted by R "Ray" Wang on March 8, 2010


Monday’s Musings: Why Users Must Preserve Their Third Party Maintenance Rights

Apps Users Seek Third Party Maintenance For Cost, Value, and Service Updated surveys from inquiries, client conversations, and user group meetings show a 113.8% increase in interest in third party maintenance (3PM) services from Q3 2009 to Q1 2010 (see Figure 1).  Key factors stem from (see Figure 2.): Continuing cost pressures. Budgets continue to […]

Posted by R "Ray" Wang on February 22, 2010


Monday’s Musings: The Hidden Value In SaaS Deployments

Gains In SaaS Adoption Driven By Speed And Cost Savings… Preliminary data from Q4 earnings data show continued traction among SaaS solutions.  Expect SaaS deployments to gain steam in 2010 as organizations finalize their SaaS apps strategies to take advantage of 7 key benefits: Richer user experience – SaaS apps bring Web 2.0 usability to […]

Posted by R "Ray" Wang on January 25, 2010


News Analysis: SAP Revives Two-Tier Maintenance Options

Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering. Customers now gain choice with a 2-tier maintenance offering. Here are the details between standard support and enterprise support.

* Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, support packages, risk mitigation, and related new functionality will have choice in staying on standard support. The program is designed for customers who seek to keep their systems up and running. Customers with CPI clauses in their contracts will want to take note – the first set of consumer price index (CPI) price increases will begin January 1st, 2012.
* Enterprise Support remains at 22%. SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1). Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, and transparency for business process performance. Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.
* Supplemental offerings still available. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.

Posted by R "Ray" Wang on January 14, 2010


Tuesday’s Tip: The SAP Optimization List – Key Ecosystem Vendors You Should Know

High Cost Of Ownership And Changing Requirements Drive SAP Users To Seek Optimization Solutions

As users await SAP to regain its mojo (see Dennis Howlett’s post) and implement it’s “Voice of the Customer” strategy in 2010, users must continue to reduce their cost of ownership and complexity. In addition, rapidly changing business requirements require some users to seek SaaS alternatives, additional point solutions, and extensions.
Consequently, vendors providing SAP optimization and extension solutions represent one of the fastest growing parts of the $78.7B (2009 Altimeter Group estimate), 850,000 SAP service partner and developer ecosystem. SAP users already embrace many of the solutions from vendors on this inaugural SAP Optimization List as part of their business value oriented apps strategy. The living list covers seven areas including:

1. application extension and usability;
2. application life cycle management;
3. archiving, storage, and test data management;
4. license management and optimization;
5. Microsoft Office integration;
6. third party maintenance; and
7. virtualization

Posted by R "Ray" Wang on January 5, 2010


News Analysis: DSAG Project Team Members Resign Leadership of SUGEN KPI Working Group

DSAG project team and project leader departure could signal disagreement with methodology not SUGEN SAP embarked on an ambitious program to prove value in its Enterprise Support fee hike last year.   As planned, SAP should announce the results for the first set of SUGEN KPI’s in early December.  However, two key SUGEN KPI project […]

Posted by R "Ray" Wang on November 30, 2009


Speaker Notes: Keynote – SAP UK & Ireland User Group Conference 2009

Building Innovation With And Around Your SAP Environment Location: Manchester CentralAuditorium Date:23/11/2009 Start Time: 16:25 End Time: 17:00 Speaker: R “Ray” Wang Company: Partner with Altimeter Group Keynote summary: Pace of change continues to increase in market forces, work dynamics, business models, and pace of technology adoption. Innovation is essential in this market. There’s a […]

Posted by R "Ray" Wang on November 25, 2009


Event Report: SAP UK & Ireland User Group Conference 2009

SAP users in UK and Ireland remain equally skeptical about SAP (Photos by R Wang & Insider Associates, LLC.   Copyright © 2009 All rights reserved.) The SAP user group hosted its annual event.  Conversations with 37 clients reflect the following broad trends in the UK and Ireland: SAP users remain skeptical about benefits promised […]

Posted by R "Ray" Wang on November 24, 2009


Research Report: Customer Bill of Rights – Software-as-a Service

Connect.  Collaborate.  Innovate. Welcome to the first of many Altimeter Group research reports.  Before you dive deep into the Customer Bill of Rights: Software-as-a-Service report, we wanted to share with you a bit about the research process and how we work within the community. Connect.  We strive to bring new people together and share our […]

Posted by R "Ray" Wang on October 12, 2009


Thursday’s Thanks: Customer Bill of Rights – Software-as-a Service

This post has been cross posted on the Enterprise Advocates blog A New Way Of Creating Research – Collaborative Input And Review Some time early next week, we (i.e. Altimeter Group’s Jeremiah Owyang and I) will be publishing a Customer Bill of Rights – Software-as-a-Service.  Through the generous input of 57 collaborators and organizations, this […]

Posted by R "Ray" Wang on October 8, 2009

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Tuesday’s Tip: Why Free Software Ain’t Really Free

Free Software Gimmicks From Some On-Premise Vendors Only Address The License Cost Issue Recently, readers and clients have been approached by on-premise vendors offering free software modules to incentivize new license purchases.  However, free should not be confused with the Open Source (i.e. Freeware) movement, where source code is provided with minimal copyright restrictions.  Free […]

Posted by R "Ray" Wang on October 6, 2009


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