In the Age of the Customer, it’s vital that your hard-pressed IT budget is spent wisely and is refocused into areas of the business that can help improve client acquisition, retention and profitability. Negotiating better deals with your legacy incumbent software vendors is a great way to free up cash to spend on innovation.
If you have an upcoming contract negotiation with Microsoft, Oracle or SAP then let’s schedule a call to discuss how you can gain greater pricing and contract concessions by working with Forrester’s dedicated Software Contract Negotiation experts. With the costs of software licenses and annual maintenance going up each year and vendors providing limited transparency into licensing options, it’s critical you know which discounts to target and what negotiation tactics have worked well for other businesses.
Having worked with thousands of clients, Forrester has built up significant market intelligence on what’s achievable and how to get it. As a result, we are often able to show our clients how to negotiate additional savings on their license and on-going maintenance/support costs. And our success-based fee model means you only pay us if our advice helps you save you money.
We can help you and your negotiating team:
● Review the competitiveness of your software vendor’s proposals and renewal contracts.
● Refine your negotiation strategy and tactics so that you target the most valuable concessions, improve contractual terms and maximize savings.
● Optimize your time at the negotiating table by helping you prepare for, and react to, your software vendor’s sales tactics and objections.
India's government cloud infrastructure, Meghraj, goes live today. The government cloud (g-cloud) now offers infrastructure-, platform-, storage-, and software-as-a-service for the Indian public sector.
A fortnight ago, my colleague Manish Bahl and I published a report that highlighted the opportunities and challenges of cloud adoption in the public sector. Three-quarters of the Indian public sector organizations we interviewed indicated that addressing the rising expectations of citizens and ensuring that they are satisfied is their top business priority. Over the next decade, the Indian government’s g-cloud approach will drive major changes in the types of services it delivers — not just to citizens but also to employees and businesses by 1) rolling out services faster and reaping the desired benefits earlier, 2) optimizing the use of infrastructure while reducing management overhead, and 3) reducing bureaucracy and increasing transparency.
While the government’s efforts to centralize services via the g-cloud is commendable, we believe that the initiative will be successful if the government can overcome three fundamental challenges:
A lack of common policies will challenge application reuse. The problem is significant in India due to the diversity of the federal structure and the disjointed, disparate IT initiatives of the central and state governments. The government will face challenges in getting the various departments to use common policies and a shared g-cloud infrastructure.
My wife would say that the cold weather has me watching too many "waste of time" sporting events. She is correct of course, but sports and life have many paralells and here's my current favorite. I am believing more and more in the importance of Karma where good intent and deeds contribute to future happiness, and bad intent deeds contribute to future suffering. Hence, there is only one explanation for the dismal Denver performance yesterday. Denver had simply way too much bad Karma. And here's why. They denied Patriot fans the opportunity for any tickets (not one) to the AFC championship game in Denver. This was a selfish, low class, and just down right mean. It created a tremendous reserve of negative Karma that could not be overcome Sunday. As a Pats fan, I was thrilled to see not just a loss but a record setting devastation.
1. Enhanced Virtualization Becomes A Separate Initiative From Private Cloud. Forrester predicts that in 2014, CIOs will bless the separation of these initiatives such that the firm can both use private cloud to embrace the age of the customer and work to advance back-end systems.
2. OpenStack Becomes A Standard. Forrester predicts that by the end of 2014, OpenStack APIs will become the fourth standard. Over the past few years, OpenStack has grown in functionality and deployments.
Mobility is becoming pervasive in the enterprise. Smart devices, including wearables, are appearing in all sectors, both in developed and emerging markets. Businesses that fail to prepare for the mobile mind shift risk losing their competitive edge. I hope this year’s Mobile World Congress, which kicks off on February 24, will emphasize the interaction between business processes and mobility — in addition to the traditional gadgets.
I focus primarily on themes relating to the connected business and social collaboration, and I will travel to the world’s leading mobile event in Barcelona to gain new insights into several questions in these areas:
VMware recently announced that it has signed a definitive agreement to acquire AirWatch, a leading provider of enterprise mobile management and security solutions. The acquisition is expected to provide customers with the most complete solution to manage users, devices, and applications across server, desktop, and mobile environments.
VMware obviously has had to expand its penetration beyond the server-centric virtualization market. So far, it has had mixed success with selling virtualization as a platform in the region, even though it has successfully entrenched itself as a leading hypervisor provider (unfortunately, VDI has proved a difficult sell for VMware in AP). In order to gain much deeper penetration and traction, VMware needed to add an end user computing offering to its portfolio. The pairing should result in:
Transformation Should Focus On Improving Outcomes, Not Merely On Increasing Competition
I’ve spoken with many IT Procurement leaders in public sector organizations ranging from US county schools districts to national governments. Most are prevented from applying best practices such as Strategic Software Sourcing by their politicians’ ill-conceived edicts and directives, such as those included in this announcement by the UK’s Cabinet Office that optimistically claims “Government draws the line on bloated and wasteful IT contracts”. In related press interviews the relevant minister Francis Maude complained that “a tiny oligopoly dominates the marketplace” and talked about his intention to encourage use of open source alternatives to products such as Microsoft Office, to increase competition and to divert more spend to small and medium-sized IT companies. The new edicts include bans of contracts over £100 million or 2 years’ duration and of automatic renewals. Mr. Maude claims these rules “will ensure the government gets the best technology at the best price”.
Mr. Maude and his team have a laudable and important goal but their approach is misguided, in my opinion. Short term contracts, indiscriminate competition and avoiding sole source category strategies will deliver neither the best technology nor the best price, because:
Mobile device management remains the starting point for a true mobile workplace experience. VMware's recent acquisition of AirWatch isn't the first time that a leading provider of virtual desktop technology has bought mobile device management capabilities. But the road to creating a true mobile workplace experience is long. The task of meeting workforce requirements by consolidating device management, desktop management, virtualization, and the delivery of the right applications and content to mobile endpoints remains complex. A number of managed service providers are positioning themselves as strategic partners to support you in this transition. Are you ready for such an engagement? How do you select the right partner?
One obvious starting point is to check the capabilities of the provider you have already picked to manage your devices. But which of these providers are up to the challenge? Our research reveals that the European playing field is evenly shared between telecommunication providers and IT service providers.
IT Providers, Telcos, And Disruptors Are Fighting For Your Business
For our new report, Managed Mobile Workplace Services In Europe, we spoke with a number of leading telcos and IT providers that are expanding into comprehensive mobile services beyond device management. Here's our take on their plans to support your mobile workplace transformation strategy:
Lenovo’s made three strategic moves in just one month: 1) Buying IBM’s x86 server business, 2) Reorging into four business units – most importantly including one called “ecosystem and cloud group”, and 3) Buying Motorola Mobility. The later two are driven by the mobile mind shift – the increasing expectation of individuals that they can access information and service, in context, in their moment of need. Smartphones are central to that – as are the ecosystem and cloud services that deliver value through the smartphones.
Lenovo has stated intentions to become a leading smartphone maker globally, building on their leading position in the China market. Buying Motorola Mobility is a much quicker way for Lenovo to access the premium smartphone market with a leading Google Android (not forked Android) offering - than trying to do it with their existing design teams and brand reach. Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets, and built critical mass makes a lot of sense.
But Motorola has not been shooting the lights out with designs or sales volumes in smartphones. So the value is simply in brand recognition to achieve market recognition faster - and to dramatically expand the design and marketing team with talent experienced at US and Western markets.
In the fast-moving markets of wearables and IoT, it's easy to be dazzled by new technologies. But what's more impressive to Forrester is a coherent, disruptive business model. I've written that 2014 will be the year of wearables 2.0, when select vendors develop real wearable business models. To help that journey along, I'd like to offer up a hypothesis for a new industry axiom:
In the era of wearables and the Internet of Things, tech companies must create a new kind of ecosystem – an ecosystem not of developers, hardware makers, or services companies, but of brands, healthcare providers, retailers, financial services companies, and governments.
I'm still testing this hypothesis out, and will write about it in future research. In the meantime, I'd like to hear your examples. To give you a sense of what I'm talking about, it's an ecosystem comprised of companies in: