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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HP Shows its Next Generation Blade and Converged Infrastructure – No Revolution, but Strong Evolution

With the next major spin of Intel server CPUs due later this year, HP’s customers have been waiting for HP’s next iteration of its core c-Class BladeSystem, which has been on the market for almost 7 years without any major changes to its basic architecture. IBM made a major enhancement to its BladeCenter architecture, replacing it with the new Pure Systems, and Cisco’s offering is new enough that it should last for at least another three years without a major architectural refresh, leaving HP customers to wonder when HP was going to introduce its next blade enclosure, and whether it would be compatible with current products.

At their partner conference this week, HP announced a range of enhancements to its blade product line that on combination represent a strong evolution of the current product while maintaining compatibility with current investments. This positioning is similar to what IBM did with its BladeCenter to BladeCenter-H upgrade, preserving current customer investment and extending the life of the current server and peripheral modules for several more years.

Tech Stuff – What Was Announced

Among the goodies announced on February 19 was an assortment of performance and functionality enhancements, including:

  • Platinum enclosure — The centerpiece of the announcement was the new c7000 Platinum enclosure, which boosts the speed of the midplane signal paths from 10 GHz to 14GHz, for an increase of 40% in raw bandwidth of the critical midplane, across which all of the enclosure I/O travels. In addition to the increased bandwidth midplane, the new enclosure incorporates location aware sensors and also doubles the available storage bandwidth.
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IBM Embraces Emerson for DCIM – Major Change in DCIM Market Dynamics

Emerson Network Power today announced that it is entering into a significant partnership with IBM to both integrate Emerson’s new Trellis DCIM suite into IBM’s ITSM products as well as to jointly sell Trellis to IBM customers. This partnership has the potential to reshape the DCIM market segment for several reasons:

  • Connection to enterprise IT — Emerson has sold a lot of chillers, UPS and PDU equipment and has tremendous cachet with facilities types, but they don’t have a lot of people who know how to talk IT. IBM has these people in spades.
  • IBM can use a DCIM offering  — IBM, despite being a huge player in the IT infrastructure and data center space, does not have a DCIM product. Its Maximo product seems to be more of a dressed up asset management product, and this partnership is an acknowledgement of the fact that to build a full-fledged DCIM product would have been both expensive and time-consuming.
  • IBM adds sales bandwidth — My belief is that the development of the DCIM market has been delivery bandwidth constrained. Market leaders Nlyte, Emerson and Schneider do not have enough people to address the emerging total demand, and the host of smaller players are even further behind. IBM has the potential to massively multiply Emerson’s ability to deliver to the market.
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5-Years Journey Of TOGAF In China Is Just A Beginning For EA

As businesses get larger, and the need for effective alignment of the business with technology capabilities grows, enterprise architecture becomes an essential competency. But in China, many CIOs are struggling with setting up a high-performance enterprise architecture program to support their business strategies in a disruptive market landscape. This seems equally true for state-owned enterprises (SOEs) and multinational companies (MNCs).

To gain a better understanding of the problem, I had an interesting conversation with Le Yao, general secretary of Center for Informatization and Information Management (CIIM) and director of the CIO program at Peking University. Le Yao is one of the first pioneers introducing The Open Group Architecture Framework (TOGAF) into China to help address the above challenges. I believe that the five-year journey of TOGAF in China is just an early beginning for EA, and companies in the China market need relevant EA insights to help them support their business:

  • Taking an EA course is one thing; practicing EA is something else. Companies taking TOGAF courses in China seem to be aiming more at sales enablement than practicing EA internally. MNCs like IBM, Accenture, and HP are more likely to try to infuse the essence of the methodology into their PowerPoint slides for marketing and/or bidding purposes; IBM has also invited channel partners such as Neusoft, Digital China, CS&S, and Asiainfo to take the training.
  • TOGAF is too high-level to be relevant. End user trainees learning the enterprise architecture framework that Yao’s team introduced in China in 2007 found it to be too high-level and conceptual. Also, the trainers only went through what was written in the textbook without using industry-specific cases or practice-related information — making the training less relevant and difficult to apply.
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Why Dell Going Private is Less Risk for Customers than their Current Path

To publish this post, I must first discredit myself. I'm 42, and while I love what I do for a living, Michael Dell is 47 and his company was already doing $1 million a day in business by the time he was 31. I look at guys like that and think: "What the h*** have I been doing with my time?!?" Nevertheless, Dell is a company I've followed more closely than any other but Apple since the mid-2000s, and in the past two years I've had the opportunity to meet with several Dell executives and employees - from Montpellier, France to Austin, Texas.

Because I cover both PC hardware as well as client virtualization here at Forrester, it puts me in regular contact with Dell customers who will inevitably ask what we as a firm think about Dell's latest announcements to go private, just as they have for HP these past several quarters since the circus started over there with Mr. Apotheker. Hopefully what follows here is information and analysis that you as an I&O leader can rely on to develop your own perspective on Dell with more clarity.

 
Complexity is Dell's enemy
The complexity of Dell as an organization right now is enormous. They have been on a "Quest" to re-invent themselves and go from PC and server vendor, to an end-to-end solutions vendor with the hope that their chief differentiator could be unique software to drive more repeatable solutions delivery, and in turn lower solutions cost. I say the word 'hope' deliberately because to do that means focusing most of their efforts around a handful of solutions that no other vendor could provide. It's a massive undertaking because as a public company, they have to do this while keeping cash-flow going in their lines of business from each acquisition and growing those while they develop the focused solutions. So far, they haven't.
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