Microsoft announced today that it is discontinuing the Microsoft Office PerformancePoint Server product. The business performance monitoring and analytics capabilities of PerformancePoint will be bundled into the SharePoint Server enterprise license (CAL) going forward, and no longer sold separately. The planning and budgeting capability of PerformancePoint will see a midyear enhancement that is already in the works, and then put into support mode. Existing PerformancePoint customers will receive support on these products for 10 years. Another element of the announcement is the return of FRx reporting and forecasting capabilities to the Microsoft Dynamics business applications group.
After investing heavily in the development and launch of PerformancePoint over the past 3 years, it is a major shift in strategy for Microsoft to essentially kill off the product initiative. Its rationale is that the goal is to make business performance monitoring and analytics pervasive across the enterprise, and SharePoint is the best vehicle to carry this functionality. Microsoft expects that bundling these capabilities at no additional cost within the SharePoint enterprise license will accelerate sales of SharePoint, including upgrades from the standard license. Planning, meanwhile, is seen as a Finance desk application that is not part of the SharePoint strategy.
I'll be attending the World Economic Forum in Davos next week -- look for posts here as I gather up blasts of insight from the gathering.
I'm running a session on January 29th at Davos that will analyze how social computing will transform corporations and markets. Discussion leaders will be: Michael Arrington, TechCrunch, Jimmy Wales of Wikipedia, Robert Scoble of Fast Company TV, Reid Hoffman of LinkedIn, Matt Cohler of Benchmark Capital (late of Facebook), and others.
We're going to be working to answer the questions listed below.
Big news in the information management world today – Autonomy announced it will acquire Interwoven for $775 million.
Since 2005, Autonomy has acquired technology for search (Verity), archiving (ZANTAZ), and records management (Meridio). With Interwoven, Autonomy gains a technology foothold where it was previously weakest -- at the point where digital content gets created, captured, and managed. Yet knowing Autonomy, it’s likely after Interwoven’s solid customer base in several niche market segments: law firms and customer-facing media, entertainment, and commerce Web sites. All of these Interwoven customers had better prepare for a knock on the door from Autonomy reps prepared to sell them on the virtues of extracting “meaning” from their digital information (using Autonomy IDOL, of course).
Enterprise search and enterprise content management are two sides of a coin. Both are necessary to create, manage, store, find and analyze information. Yet information workers still generate an enormous amount of content in word processing applications and distribute it via email. Content created in this way is difficult to manage and control as well as difficult to find. The high price Microsoft paid for FAST Search and Transfer last year was based in part on the expected value of combining the two sides of the coin — to tightly integrate search and classification capabilities at the point where content is created and accessed. Autonomy brings more sophisticated — and much needed — archiving and records management capabilities to this picture.
In his inaugural address, Barack Obama told us it's "..time to put aside childish things." A country that once showed greatness through youthful exuberance is being asked to show greatness through measured maturity. It's a moment of realization. And a time of challenge.
Microsoft has announced that it intends to lay off up to 5000 employees over the next 18 months. For those of us who have chosen this industry as our career home, layoffs are nothing new. We live in a cyclical world and nowhere is the cycle more evident than in the computer industry, where companies are constantly appearing out of nowhere, growing, shrinking, acquiring and being acquired.
But this is different. This is the latest sign of a sea change in our industry. The best and brightest minds in the industry saw this coming. Steve Jobs saw it when he turned Apple Computer into Apple and turned tech into "tech fashion." Larry Ellison saw it when he began to acquire players that would make Oracle an indispensable piece of corporate infrastructure and at the same time established a more predictable maintenance revenue stream to Oracle.
Many years ago as I started researching and analyzing the differences between major BI vendors, one criterion that I always used was whether these vendors ate their own dog food. In other words, did a vendor executive team use the same solutions for data collection, building metrics and dashboards to run their own companies that they also tried to sell to their clients? Those who did tended to score higher in my evaluations.
The same guiding principle is applicable to Forrester: you have to eat your own dog food in order to convince the clients to buy your products and services. Hence, our methodologies, such as Forrester Waves are completely open and transparent (thank you, Doug Henschen, for recognizing this in your recent blog), and we encourage our clients to challenge us on every point made in our Waves.
After about 8 weeks of research (some of which occurred from China while I was overseas for a client project!) I am very pleased to announce that Forrester's latest Wave evaluating search marketing agencies is now live on our site.
I would encourage you to access the full report for a detailed exploration of each of 7 vendors: 360i, icrossing, iProspect, IMPAQT, OneUpWeb, Razorfish, and Reprise Media. Here are a few snapshots from my analysis:
This study found search vendors deliberate in their strategy and technology developments, more secure in their definition from competitors, and outlining a future vision that aligns with changing consumer behavior and marketer needs. This is a startk contrast to the immature landscape we evaluated at the end of 2006.
Business says it wants to be more involved with technology decision-making – taking a more leadership role especially when it comes to solutions with direct business benefit. And if business acts on this desire by working with IT the way we’ve wanted, this is all to the good. But we have to recognize that the more they care – for example if they are in product development or sales – the less likely they are going to want to work with us in the way we wanted – via steering committees, architecture review boards, and formalized project proposal processes. To them, it might appear easier to use SAAS offerings, or contract for or develop their own solutions – and they may have a point. Many of the efficiencies centralized IT can provide count less when using cloud-based services and newer, more end-user friendly tools. And if IT won’t support them because they are off the ‘approved technology’ ranch – well, they have alternatives.
At the beginning of this decade HP put forth a vision for the future data center that they have now fulfilled with both products and services offerings. Viewed by some at the time as a reaction to IBM Applications on Demand, HP coined Adaptive Infrastructure as its vision for a "composable" data center that let resources be quickly and easily assigned to business services based on their needs and for IT Ops to achieve and maintain high utilization of their data center resources.
Two things before I start: 1) A big "Thank You' to everyone who commented on my blog posts, emailed me, or spoke to me by phone about the research called "How To Avoid B2B Marketing Obsolescence", and 2) No, I really don't believe B2B marketers will become obsolete. That was just a title that would get you to read further!