Two months ago, we announced our upcoming Forrester Forrsights Software Survey, Q4 2010. Now the data is back from more than 2,400 respondents in North America and Europe and provides us with deep and sometimes surprising insights into the software market dynamics of today and the next 24 months.
We’d like to give you a sneak preview of interesting results around some of the most important trends in the software market: cloud computing integrated information technology, business intelligence, mobile strategy, and overall software budgets and buying preferences.
Companies Start To Invest More Into Innovation In 2011
After the recent recession, companies are starting to invest more in 2011, with 12% and 22% of companies planning to increase their software budgets by more than 10% or between 5% and 10%, respectively. At the same time, companies will invest a significant part of the additional budget into new solutions. While 50% of the total software budgets are still going into software operations and maintenance (Figure 1), this number has significantly dropped from 55% in 2010; spending on new software licenses will accordingly increase from 23% to 26% and custom-development budgets from 23% to 24% in 2011.
Cloud Computing Is Getting Serious
In this year’s survey, we have taken a much deeper look into companies’ strategies and plans around cloud computing besides simple adoption numbers. We have tested to what extent cloud computing makes its way from complementary services into business critical processes, replacing core applications and moving sensitive data into public clouds.
As salesforce.com keeps adding more clouds to its SaaS development platform, some sales and marketing leaders are thinking that their annual user and developer conference doesn't have much to offer non-techies. But at Dreamforce 2010 last week in San Francisco, there were several big themes that marketers should be watching, whether or not you are a current salesforce customer. Here are a few that I made note of during the Analyst Summit:
Everything's a feed. Salesforce is making a big bet that the "feed" will become the new workplace for knowledge workers and is integrating Chatter (its group collaboration tool that it doesn't want you to think of as Facebook for the enterprise) into everything it does, including the sales and service apps (or clouds). A sales rep needs help on a deal? He starts a Chatter, and the whole company comes to his rescue. You need your expense report approved? Your manager sees it in her Chatter feed. Salesforce claims that there are 60,000 companies using Chatter that are seeing big productivity improvements, along with a 10%-15% decline in email. Perhaps the biggest news about Chatter is Chatter Free, a brilliant account penetration strategy that gets Chatter into the hands of the other 80% of employees in a client site who don't have salesforce seats. Salesforce thinks that the killer app for Chatter will be file sharing, just as the killer app for Facebook is photo sharing. And expect Chatter to be opened up beyond the user base of a single company to allow collaboration with prospects, customers, and partners. Start thinking now about how this will affect your customer experience, and let me know if you have plans to use it like this.
On Dec. 2, Oracle announced the next move in its program to integrate its hardware and software assets, with the introduction of Oracle Private Cloud Architecture, an integrated infrastructure stack with Infiniband and/or 10G Ethernet fabric, integrated virtualization, management and servers along with software content, both Oracle’s and customer-supplied. Oracle has rolled out the architecture as a general platform for a variety of cloud environments, along with three specific implementations, Exadata, Exalogic and the new Sunrise Supercluster, as proof points for the architecture.
Exadata has been dealt with extensively in other venues, both inside Forrester and externally, and appears to deliver the goods for I&O groups who require efficient consolidation and maximum performance from an Oracle database environment.
Exalogic is a middleware-targeted companion to the Exadata hardware architecture (or another instantiation of Oracle’s private cloud architecture, depending on how you look at it), presenting an integrated infrastructure stack ready to run either Oracle or third-party apps, although Oracle is positioning it as a Java middleware platform. It consists of the following major components integrated into a single rack:
Oracle x86 or T3-based servers and storage.
Oracle Quad-rate Infiniband switches and the Oracle Solaris gateway, which makes the Infiniband network look like an extension of the enterprise 10G Ethernet environment.
Oracle Linux or Solaris.
Oracle Enterprise Manager Ops Center for management.