The Collaboration Cloud

Cloud is the latest buzz in the IT market, and we at Forrester have covered this quite extensively. As I reflect on 2011, this is a theme that has also played prominently in many collaboration vendor discussions — because it is a fundamentally better business model to deliver collaboration technology to users. Faster version cycle times, simplified management of deployed software, reduced TCO of a shared pool of cloud resources, and serving information workers directly are just some of the varied benefits for users, buyers, and vendors. The direct connection to end users is a key to accelerating adoption in the collaboration and growing social markets.

At their Collaboration Summit, Cisco affirmed their commitment to delivering cloud services. They described Cisco WebEx (web conferencing and meeting) and Cisco CallWay (video conferencing) as part of the Cisco Collaboration Cloud — and having used both of these, I can say with certainty that they are usable, simple, and appealing.

I believe that Cisco’s secret to success will be their robust channels approach. Richard McLeod, senior director handling worldwide channels for collaboration sales, runs programs for traditional channel partners helping to install and run collaboration solutions on premise. Others at Cisco, such as Amanda Jobbins, VP global partner marketing, spend a lot of their time thinking about service providers as channels and how Cisco can help them succeed. These leaders look for products Cisco has designed to deliver collaboration capable clouds — and is working to advance the adoption of them — for example:

  • Cisco VideoScape — a new video networking solution allowing combinations of video and collaboration content from multiple sources and to be delivered to multiple endpoints.
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IBM's Acquisition Of Emptoris Further Reduces IT Sourcing Professionals' Options

Just over a week after SAP published its intention to buy Success Factors, IBM announced yesterday that it will acquire Emptoris, one of the leading ePurchasing suite vendors. My colleague Andrew Bartels has described in his blog some of the implications for other vendors in the ePurchasing market:

http://blogs.forrester.com/andrew_bartels/11-12-15-ibms_acquisition_of_emptoris_moves_it_squarely_into_the_epurchasing_software_market_watch_out_for_f

My interest is in what the acquisition means for sourcing professionals, not just the CPOs who might be Emptoris customers, but the IT sourcing professionals setting strategies for dealing with major suppliers such as IBM and SAP.

·         Emptoris customers should give IBM the benefit of the doubt, for now. Craig Hayman, General Manager of IBM’s Industry Solutions division, assured me that he would take great care not to damage Emptoris’s strengths, the ones that attracted him to the company, as they did you, its customers. Emptoris consistently does well in Forrester Wave™ evaluations, not only for its functionality but also its focus on sourcing and procurement, its emphasis on ensuring customer success, and its consistent record of innovation. The good news is that Hayman doesn’t underestimate the challenges of integrating Emptoris into IBM, but is confident he can overcome them. It will take a couple of years before we can judge his success.

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IBM's Acquisition Of Emptoris Moves It Squarely Into The ePurchasing Software Market — Watch Out For Fireworks

IBM today announced that it will acquire Emptoris, a leading vendor of ePurchasing software products, with strengths in eSourcing, spend analysis, contract lifecycle management, services procurement, and supplier risk and performance management (see December 15, 2011, “IBM Acquisition of Emptoris Bolsters Smarter Commerce Initiative, Helps Reduce Procurement Costs and Risks”). That IBM made an acquisition of this kind was not a surprise to me, given that the heads of IBM's Smarter Commerce software team at the IBM Software Analyst Connect 2011 event on November 30 had laid out a vision of providing solutions for the buying activities of commerce as well as the sales, marketing, and services activities. Indeed, in the breakout session in which Craig Hayman, general manager of industry solutions at IBM, laid out the Smarter Commerce software strategy and showed the vendors that IBM had acquired in the sales, marketing, and services arenas, he said in response to my comment about the obvious gaps that IBM had in the buying area that we should expect to see IBM acquisitions in that area.

What was a surprise to me was that IBM acquired Emptoris. My prediction would have been that IBM would buy Ariba, because of the long relationship that has existed between these companies. In contrast, Emptoris has generally worked more with Accenture, and not as much with IBM.

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Shining The Harsh Light On Cloud Washing

For years I have been railing about cloud washing -- the efforts by vendors and, more recently, enterprise I&O professionals to give a cloud computing name to their business-as-usual IT services and virtualization efforts. Now, a cloud vendor, with tongue somewhat in cheek, is taking this rant to the next level. 

Appirio, a cloud integration and customization solution provider, has created the cloud computing equivalent of the Razzie Awards to recognize and call out those vendors it and its clients see as the most egregious cloud washing offenders. The first annual Washies will be announced next Wednesday night at The Cigar Bar in San Francisco, and in true Razzie tradition, the nominees are invited to attend and pick up their dubious honors in person. I'm betting that Larry Ellison will be otherwise engaged.

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