The Forrester SaaS ITSM Tool Market Overview: Who Is Where With What

It’s finally here. The Forrester Market Overview: SaaS IT Service Management Tools covers: a little ITSM tool history and how we have moved on, the benefits and risks of the SaaS delivery model, key selection criteria for selecting a SaaS (or on-premises) tool, and overviews of 23 tools (from 21 vendors) and their functional capabilities across the enterprise and midmarket marketplaces.

“Why on earth did you write a SaaS-only ITSM report?” I hear some cry

It’s simple – Forrester client demand. In 2012, a good 25% of my 400ish a year client inquiries related to IT service management (ITSM) tool selection; and the SaaS-delivery model (and the key vendors) was covered in nigh on all of them. That’s not to say the client ultimately went SaaS though, inquiries are very much about rapid information exchange in helping clients make important decisions. It’s not about making the decision for the client.

What the SaaS ITSM market looks like

The following figure shows the 23 vendor tools split by average customer subscription (seat) count (described as Enterprise, Upper Midmarket, and Lower Midmarket) and their degree of customer success (the number of paying customers):

There are of course other ITSM tool vendors who declined to participate for a variety of reasons. One would be that they were not briefing Forrester analysts and thus not on our radar.

The key benefits of SaaS for ITSM

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Surfing The "Mobile Shift"

Ever hear about the myth of the “seventh wave”?  Surfers use it to describe the big one — the wave that you can ride all the way into the beach. While it’s been a while since I’ve tested its premise at the shore, I often think about the seventh wave when dealing with the constant waves of tools, processes, and technology we developers face. With the constant change you face, how do you determine which technologies  will change everything from overhyped vendor pabulum (3D TV, anyone?) We don’t have the capability to invest in every new technical advance that comes down the pike, so we need to be able to tell the seventh-wave technologies from the others that might provide incremental productivity benefits or cost reduction but don’t change everything we do or think.

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The Dreaded G-Word: Digital Experience Governance Doesn't Have To Be So Bad

We’ve all heard how people perceive governance: It slows down processes, stifles innovation, and adds unnecessary bureaucracy. It’s time to get over those perceptions. You need governance, and policies and processes don’t need to be roadblocks. Instead, they can enable better customer experiences using governance models that bridge the gap between IT and the business, unify digital experiences across customer touchpoints, reduce time-to-market, and foster a culture of customer-centric innovation.

But right now many organizations we speak with haven’t given enough thought to their governance model. We identified five main areas of digital customer experience governance that application development and delivery (AD&D) professionals should pay attention to:

  • Roles and responsibilities. Governance means oversight and executive sponsorship. Right now, this is often siloed around business group and, for IT, siloed around software applications.  Digital experience governance instead requires a cross-business executive sponsor, cross-business digital experience steering committees, and cross-application IT functional committees. 
  • Charters. This is your mission statement. It defines your scope, goals, objectives, and articulates the business case. Too often, we talk with organizations that haven’t actually defined their digital customer experience goals, and if they have, their charter is static and siloed around individual brands. Instead, look to define your goals and create a dynamic, cross-business, and cross-application mission statement.
  • Processes. Governance needs to solve the problem of siloed processes: business working alone and then dropping requirements on IT’s desk. Processes must become more iterative and collaborative.  
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Why Your Enterprise Private Cloud is Failing

You've told your ITOps team to make it happen, you've approved the purchase of cloud-in-a-box solutions, but your developers aren't using it. Why?

Forrester analyst Lauren Nelson and myself get this question often in our inquiries with enterprise customers and we've found the answer and published a new report specifically on this topic.
Its core finding: Your approach is wrong. 

You're asking the wrong people to build the solution. You aren't giving them clear enough direction on what they should build. You aren't helping them understand how this new service should operate or how it will affect their career and value to the organization. And more often than not you are building the private cloud without engaging the buyers who will consume this cloud.

And your approach is perfectly logical. For many of us in IT, we see a private cloud as an extension of our investments in virtualization. It's simply virtualization with some standardization, automation, a portal, and an image library isn't it? Yep. And a Porsche is just a Volkswagen with better engine, tires, suspension, and seats. That's the fallacy in this thinking.

To get private cloud right, you have to step away from the guts of the solution and start with the value proposition. From the point of view of the consumers of this service — your internal developers and business users. 

I&O Looks Up at Cloud; Developers Look Down Into It

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Here Comes A New Kind Of Fast Car

No, not cars that move quickly — cars that move data quickly via fast built-in connections. Today, GM announced that most of its US and Canadian 2015 model year Buick, Cadillac, Chevrolet, and GMC vehicles would come equipped with built-in LTE connections — supplied by AT&T — powering a range of OnStar safety, security, diagnostic, and infotainment services. No surprise in cars getting LTE or in GM's leadership — the next logical step in the connected car chain that started with GM's launch of OnStar in 1996. More noteworthy are:

  • AT&T winning GM's business. Verizon Wireless powers the existing OnStar service, and, considering how vital coverage is to OnStar's safety and security services, Verizon's superior LTE coverage (273.5 million people versus 170 million for AT&T today) would seem to make it a logical choice for GM. Apparently GM was convinced by AT&T's public commitment to cover 300 million US consumers by year end 2014 — in addition to the ability to use the same technology globally and the superior performance of AT&T's network when LTE is unavailable. 
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Four Steps Toward Reducing IT Complexity And Improving Strategy

Four stepsMany CIOs are caught in the middle — stuck between competing demands from the CFO to reduce costs and from the CEO to increase innovation. In fact this is a topic which often comes up in our strategic planning workshops with clients.

The challenge is to find a means to achieve both goals simultaneously. Here are four steps you can take to achieve just that.

1. Get agreement on your business capabilities.

Business capability maps are a great way to gain clarity on what's important to your business. A good business capability map for strategy work is one which is organizationally agnostic; i.e., when you look at the boxes on the map, you don't see department names. The reason this is important is that you don't want to put anyone in the position of having to defend "their box" on the capability map. By the way, this is much harder to achieve than you might think! Once you have a draft map, you can share it with business leaders to get their input. This is an important step, as the capability map must be owned by all business leaders — the process of refining the map encourages leaders to take ownership.

  • Tip: Remember, not all your capabilities are inside your organization. Many firms leverage business partners to deliver key capabilities. For example, some firms will use FedEx or UPS to provide their distribution capabilities.
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Five Key Areas Will Dominate Enterprise Mobility Investments In Asia Pacific In 2013

Across Asia Pacific (AP), expanding mobility support for employees, customers, and/or business partners will be the top strategic telecom priority for enterprises in 2013, surpassing other telecom priorities like performing network management and consolidating operations equipment, rationalizing/consolidating telecom/communications service providers, and moving communications applications to the cloud.

While enterprises will invest in a range of mobility products and services, there are five key areas in particular which will attract the most investment in 2013. Vendors need to focus on the solutions and engagement models that meet customers’ needs in these five areas and target the industries and countries where the demand will be greatest:

  • Business consulting services. Specifically for defining a formal enterprise mobility and/or BYOD program strategy, including devices, applications, data access, and provisioning. Moreover, AP organizations will likely need help in drafting compliance and legal policies related to enterprise mobility.
  • Telecom expense management solutions. This is one of the most critical telecom requirements for AP CIOs in 2013. Across the region, 50% to 60% of organizations pay the entire cost of voice and data services for company-supported Android and iOS phones and tablets. For BlackBerry phones, this proportion is nearly 70%.
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India Ranks Second In Expected 2013 Asia Pacific Mobile Software Spending Growth

Data from Forrester’s Forrsights Budgets and Priorities Tracker Survey, Q4 2012 highlights that a total of 53% of IT organizations interviewed in India plan to increase their software spending on mobile applications in 2013. Among all the countries, India ranks second only after Australia/New Zealand and considerably higher than the regional average:

It’s encouraging to see Indian CIOs start to give a high priority to mobility software spending, but our research shows that the majority of mobile application initiatives are skewed toward employees and BYOT (and, to some extent, partners) with little focus on mobile customer engagement. Forrester research findings indicate that mobile applications will be a more critical channel to reach consumer markets in Asia Pacific in the future compared to more developed western markets.  This is especially true in India, where the population is younger (according to the UN, 27% of the population is between the ages of 15 and 29), the mobile Internet user base is growing at the rate of more than 30% annually, and sub-$100 smartphones are further fueling mobile Internet growth.

What It Means For CIOs:

  • Put customers at the center of your mobile strategy. If you’re not establishing the architectures and capabilities to reach these mobile customers now, you won’t be positioned for success three years from now. CIOs have an opportunity to lead their organizations by leveraging technology in strengthening customer relationships.
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2013 Survey Development Starts Now -- What Data Would You Like For Us To Collect?

I’m very excited to kick off survey development for upcoming Forrester Forrsights surveys that will feature security content. Continuing on from previous years will be the Forrsights Security Survey. This is an annual survey of IT security decision-makers from North American and European SMBs and enterprises. New for 2013 is a Workforce Survey that will provide the (also North American and European) employee perspective when it comes to security and devices in use within their workplace. 

These surveys will be fielded April through May, and the results will make their way into published research this summer. Survey development starts now, and I would love to hear what you think about the proposed topics. What are some areas where you’d like to see us gather more data?

Note: I'd love for these surveys to eventually be global! Today we have global data within the Forrsights Budgets And Priorities Tracker Survey (this one goes out to IT decision-makers) and the Forrsights Business Decision Makers Survey

What Master Data Management Metrics Matter?

I recently had a client ask about MDM measurement for their customer master.  In many cases, the discussions I have about measurement is how to show that MDM has "solved world hunger" for the organization.  In fact, a lot of the research and content out there focused on just that.  Great to create a business case for investment.  Not so good in helping with the daily management of master data and data governance.  This client question is more practical, touching upon:

  • what about the data do you measure?
  • how do you calculate?
  • how frequently do you report and show trends?
  • how do you link the calculation to something the business understands?
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