Analyze This! Cisco Spends $3.7B To Buy AppDynamics

Cisco’s intent to acquire AppDynamics – officially announced on Wednesday Jan 25 2017 – is quite a surprise. Then again, it isn’t. 

It’s a surprise because AppDynamics was one day away from its IPO, giving nary a hint of courting a suitor.  That would be an awfully expensive and troublesome camouflage.  And if it was camo, it was amazingly airtight in this notoriously leaky information age.  (As I write this, several press outlets report the deal went from idea to agreement in three days.)  

It’s not a surprise because: 

·        AppDynamics’ APM competitors have been rapidly broadening their monitoring to yield better analytics with fewer blind spots.  Cisco gives AppDynamics an exceptionally clear view of network performance and AppDynamics gives Cisco a clear view of application performance.  APM solutions must continue to expand their data ingestion to provide optimum value.   

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Reinvent the Web to Win the Mobile Moment

Ted Schadler

Last time, we talked about how your mobile website sucks. You and your agency partners took a valiant swing at fixing it using responsive web design techniques. But most of you did that without asking a critical question:

What are my customers trying to get done on their phones?

So you created one-size-fits-all responsive retrofits rather than reinventing your website for the way we live now -- on our phones. That's not enough because:

  • Not everyone will use your app. Sorry. We hoped they would. They won't.
  • Your website is or will be majority mobile. Walmart had 70% of web traffic from phones. You need to deliver a mobile-perfect solution.
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Asia Pacific Tech Spending Forecasts: Lackluster in 2017, Acceleration in 2018

Fred Giron

Forrester just released our forecast for business and government purchases of technology goods and services in Asia Pacific (AP) markets. CIOs in the AP region will continue to face a business environment of high uncertainty and modest economic growth in 2017, with 3% growth in tech spending. Better economies in 2018 will push growth closer to 6%. Customers in the region will grow and exert more power, creating challenges that require CIOs to do more — and do it faster. Following are some of the high-level trends by major AP country:

  • Japans slow-growth tech market is Asia’s biggest — but not for long. Japan is expected to spend US$248 billion and on tech goods and services in 2017, which is the largest among all Asia Pacific countries. Measured in yen, growth will be low: 1% in 2017 and 0.4% in 2018.
  • Chinas tech market will continue to shift from hardware to software and services. Forrester projects that China’s tech market spending will grow at 7% in yuan renminbi in 2017 (3% in US dollars). Hardware markets will continue to mature; state-owned enterprises will continue to replace foreign products with local alternatives; and cloud adoption will reduce the need for capital expenditures.
  • Indias tech spending will maintain the highest growth rate in Asia Pacific. India’s total tech purchases will increase by 8% in 2017 and by 10% in 2018 in rupees (5% and 8%, respectively, in US dollars). A robust economy, combined with government-led initiatives like Digital India and Make in India, will spur increased investment in the software, services, and outsourcing segments.
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Findings From The Forrester CRM Wave For Midsize Organizations

Kate Leggett

We included 11 vendors in the CRM Forrester Wave™ for midsize organizations. These 11 vendors reported a total of about 200,000 midsize customers. Compared to CRM vendors tackling the enterprise space, these vendors typically offer more streamlined - and sometimes simpler - capabilities. We saw some similar - and some strikingly different trends in this market segment. Midmarket customer demand:

  • Great user experiences that are affordable. These two factors are paramount for midsize organizations who don’t have large budgets, yet require the power of CRM. CRM must also be simple: simple to learn, simple use, simple to configure.
  • Single platform. Midsize organizations do not have the breadth and depth of IT and administrator resources that enterprise organizations have. They expect unified business and administrator tooling for their CRM. 
  • Cloud CRM. Midmarket organizations demand cloud as their primary deployment model. We expect that newer cloud solutions will replace most on-premises installations in the next five years.
  • Prescriptive advice over raw analytics. Midsize organizations manage large volumes of data. CRM users - whether in sales, marketing or customer service - all struggle to take the right next best step for the customer - for example to pinpoint optimal offers, discount levels, product bundles, and next conversation for better customer outcomes. Midsize organizations are increasingly using prepackaged analytics within CRM to prescribe advice in the flow of their work. 
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Mobile Experiences Just Got Better

Michael Facemire

Oh, hello friends, it's been too long! But I couldn't let today's news stay this far under the radar. With a relatively small announcement on its blog, Google announced that the first Instant Apps have gone live! As a reminder, Instant Apps are Android apps that are internally compartmentalized into individual views (atoms) that your users can interact with from web search results. For instance, if a customer only needs to find the nearest bank ATM, they shouldn't need to download your app (and use precious device storage) to do that -- now they simply interact with the appropriate screen within the existing app delivered via the web! This immediately changes how companies deliver mobile experiences. Why?  Because it knocks down 3 major stumbling blocks of mobile experience development:

  • App discovery is hard. Users find content with web search engines. Instant Apps brings that same power to finding app experiences. Getting people into an app store is hard. Finding your app once there is hard (Our recent data shows that only 26% of smartphone users find new apps through app store searches). Ensuring their device has enough free space, and that no angry reviews scare them off is hard. Deep linking was a bandaid for some of these ills, but Instant Apps will solve them all by delivering a complete native experience as the result of a web search.
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The Next Step In Web CMS Evolution

Mark Grannan

Today, we publish the Forrester Wave™: Web Content Management Systems, Q1 2017 after three months of research and another month of writing and editing. Today, we can step back and begin to help our clients leverage this research to shape their digital experience strategy. But first, a special thank you to my colleagues Danielle Geoffroy, Allison Cazalet, Stephen Powers, and Ted Schadler for their invaluable contributions. Also, thank you to the 15 vendors -- Acquia, Adobe, Crownpeak, Episerver, e-Spirit, Hippo (BloomReach), IBM, Jahia, Magnolia, OpenText (TeamSite), OpenText (WEM), Oracle, Progress Software, SDL, and Sitecore -- and their client references who made this research possible.

So where to start? At the highest level, we’re witnessing a step-function along our evolutionary journey thanks to digital. Digital disrupts communication, community, privacy, convenience, products, and services because always-on connections change our demand cycles. Those enterprise organizations who don’t evolve are being disrupted. My colleagues on customer experience research team have shown this correlation of revenue being tied to customer experience, across industries and geographies (link). Additionally, we’re starting to understand how digital maturity stages correlate to technology priorites such as Web CMS with Forrester's Digital Maturity Model (link):

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NRF 2017 highlights the need for operations to support customer experience

Phoenix Zhang

This is the first National Retail Federation Expo I’ve attended, and I must say it exceeded all of my expectations and reshaped my view of retail. Over three days in New York, I met with more than 30 vendors and had many wonderful discussions about the changes revolutionizing store operations, hardware and software developments, front-end and back-end integration, and retail analytics. HPE generated a lot of buzz on the floor with demos of its machine-learning algorithm in reducing and preventing store inventory shrinkage. And Checkpoint showed me their new RFID tunnels that promised an impressive 99.9% accuracy[i].  As a supply chain and logistics management professional, I look at these latest developments from a different angle. My top three key takeaways:

  • Digital store operations have huge implications for planning and fulfillment. I was amazed to see how much technology has been developed to improve store operational efficiency and customer experience, such as Theatro’s voice-controlled wearable. But the hidden benefits of all this for supply chain managers are still under-explored. Take the latest in-store RFID application from Tyco Retail Solutions: Stores are primarily using it inside fitting rooms to track what items customers have bought or left behind. The same application and the data it captures could give retailers and their upstream suppliers unprecedented insights into what items are most or least popular and how fast they are selling, allowing far more accurate and deliberate replenishment and inventory.
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HPE Acquires Simplivity – Strong Tactical Move with Strategic Ramifications for the HCI Landscape

Richard Fichera

Rumors had been flying for some time about SimpliVity needing additional funding, and that HPE had made an offer that was unacceptably low at $650 Million. Clearly, these were more than casually well-informed rumors, since HPE announced on January 17 that it would be acquiring SimpliVity for $650 Million in cash. Was this a fair price? That is hard to say. Since I’m not really an equity analyst, I will spend no more time on this other than to say that it is far short of the kinds of valuations that the industry was expecting. Competitor Nutanix’s current market capitalization is slightly over $4B, which is more than a bit rich for such a company. Despite its high growth rates, it has yet to turn a profit.

But pricing aside, was it a smart move for HPE? Absolutely. It’s probably the smartest acquisition that HPE has done in its entire history, and certainly one that helps shatter the perception that HPE always overpays for its acquisitions, even when they are strategically sound. SimpliVity was essentially tied for first place in our recent Forrester’s recent Wave™ report on Hyperconverged Infrastructure Solutions, coming in substantially stronger than HPE’s own HC380 product.

The fit with HPE for SimpliVity’s solution is impressive because:

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Your Mobile Website Sucks

Ted Schadler

This is part two in a series on Reinventing the Web to Win the Mobile Moment. Here's part one, a Drunk History Of Mobile Strategy.

For 20 years we have optimized the web as a big billboard broadcasting everything about a company. Marketing owns the public site, and cares more about acquisition than utility. Product teams own the private sites and are faced with an ever-escalating array of digital touchpoints. Is it any wonder firms, aided by their digital agency and web content management software, have built one-size-fits-all reponsive websites and punted on the responsiblity to make them great?

"Why can't they all just use our app," I hear you say. Alas, few customers and even fewer prospects will use your app. But they will visit your website on their phones, particularly when they search or link their way to it. Sadly, when they arrive, their experience — even on your new responsive site — is awful. Why?

  • Your one-size-fits-all responsive retrofit isn't mobile-first . . . While responsive web design solves a litany of problems — including making your site visible on Google Search — it doesn't magically deliver desktop conversion results. REI told us, "When we went to responsive web design, we celebrated for a minute. Then we asked, ‘Is our responsive website enough?'"
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Public Cloud Providers Embark On A European Building Spree

Paul Miller

A Google data centre in Finland. Image source: Google.
(A data centre in Hamina, Finland. Source: Google)

Not long ago, European customers of the global public cloud vendors relied upon a single data centre ‘region’ for all their cloud computing needs. From Lisbon to Lviv, Kiruna to Kalamata, customers of Amazon Web Services (AWS) and Microsoft Azure sent everything to Ireland, and customers of the Google Cloud Platform (GCP) sent everything to Belgium. And, mostly, public cloud’s early adopters in Europe just got on with it.

For the majority of public cloud workloads, storing and processing data somewhere in the European Economic Area (EEA) really was — and is — good enough. Network latency was mostly low enough not to be a problem, and European regulations covered the main use cases well enough to appease all but the most cautious lawyers.

But connections can always be faster, and there are still use cases in regulated industries and government where keeping personal data inside specific geographic borders is either essential or encouraged. And, more and more often these days, customers just seem to feel happier when their data doesn’t leave the country. Mostly, no law requires it, and no regulation recommends it. But it’s still happening. We should all be pushing back against this odd trend towards data balkanisation, much harder than we are.

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