Join Us At Customer Experience Forum West In Los Angeles, November 14-15, 2012!

Moira Dorsey

Our Forum For Customer Experience Professionals in Los Angeles is just four weeks away — and we have some exciting news!

First, our final lineup of external speakers is confirmed. All of our main-stage speakers are from companies featured in our new book, Outside In — some of them are even the subjects of case studies in the book.

Many of you have asked us to feature more business-to-business content in our events, so in response, we have both Randy Pond, EVP of operations, processes, and systems at Cisco Systems, and John Taschek, VP Mof market strategy at salesforce.com. Both companies are in the book, and Randy is the executive sponsor of the program that won one of our 2012 Voice Of The Customer Awards.

In addition to Randy and John, we have Dr. Jim Merlino, the chief experience officer for Cleveland Clinic, a world-famous, $6 billion healthcare provider. The work he is doing is as applicable to organizations outside of healthcare as it is relevant to all of us who have ever been (or will ever be) patients.

We’re also excited about our main-stage panel on building a customer-centric culture with Nancy Fratzke of US Cellular and Kelly Harper of BMO Financial Group. Transforming a culture is one of the hardest things any of us will do, and both of these panelists have successfully done it.

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Oracle Continues to Make Cloud Progress

James Staten

Well if you're going to make a dramatic about face from total dismissal of cloud computing, this is a relatively credible way to do it. Following up on its announcement of a serious cloud future at Oracle Open World 2011, the company delivered new cloud services with some credibility at this last week's show. It's a strategy with laser focus on selling to Oracle's own installed base and all guns aimed at Salesforce.com. While the promise from last year was a homegrown cloud strategy, most of this year's execution has been bought. The strategy is essentially to deliver enterprise-class applications and middleware any way you want it - on-premise, hosted and managed or true cloud. A quick look at where they are and how they got here:

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Microsoft Moves to Level the Cloud Platform Playing Field

James Staten

In typical Microsoft fashion, they don't catch a new trend right with the first iteration but they keep at it and eventually strike the right tone and in more cases than not, get good enough. And often good enough wins. That seems the be the pattern playing out with Windows Azure, its cloud platform.

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SAP Restocks Its Cloud-Zoo With Ariba

Holger Kisker

SAP Turns To Acquisitions For Cloud Innovations

Just three months after SAP acquired SuccessFactors, a cloud leader for human capital management solutions, for $3.4 billion, it has now announced the acquisition of Ariba, a cloud leader for eProcurement solutions, for another $4.3 billion. Now, $7.7 billion is a lot of money to spend in a short amount of time on two companies that hardly make any profit. But it’s all for the cloud, which means it’s for the future business opportunity in cloud computing services. So far, so good; SAP has invested and acquired quite a number of cloud companies over the past years: Frictionless, Clear Standards, Crossgate, etc. The difference in this most recent acquisition is the big overlap with existing solutions and internal R&D.

Following the first wave of cloud acquisitions, SAP was sitting amid a zoo of cloud solutions, all based on different platforms: ePurchasing, CRM-OnDemand, BI-OnDemand, Carbon Impact, ByDesign, Streamwork . . . They all used very different technology, resulting in big integration and scale challenges behind the scenes. The market welcomed with open arms SAP’s announcement 1.5 years ago that it would consolidate its cloud strategy on the new NetWeaver platform for both ABAP- and Java-based cloud solutions.

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2011 Retrospective – The Best And The Worst Of The Technology World

Richard Fichera

OK, it’s time to stretch the 2012 writing muscles, and what better way to do it than with the time honored “retrospective” format. But rather than try and itemize all the news and come up with a list of maybe a dozen or more interesting things, I decided instead to pick the best and the worst – events and developments that show the amazing range of the technology business, its potentials and its daily frustrations. So, drum roll, please. My personal nomination for the best and worst of the year (along with a special extra bonus category) are:

The Best – IBM Watson stomps the world’s best human players in Jeopardy. In early 2011, IBM put its latest deep computing project, Watson, up against some of the best players in the world in a game of Jeopardy. Watson, consisting of hundreds of IBM Power CPUs, gazillions of bytes of memory and storage, and arguably the most sophisticated rules engine and natural language recognition capability ever developed, won hands down. If you haven’t seen the videos of this event, you should – seeing the IBM system fluidly answer very tricky questions is amazing. There is no sense that it is parsing the question and then sorting through 200 – 300 million pages of data per second in the background as it assembles its answers. This is truly the computer industry at its best. IBM lived up to its brand image as the oldest and strongest technology company and showed us a potential for integrating computers into untapped new potential solutions. Since the Jeopardy event, IBM has been working on commercializing Watson with an eye toward delivering domain-specific expert advisors. I recently listened to a presentation by a doctor participating in the trials of a Watson medical assistant, and the results were startling in terms of the potential to assist medical professionals in diagnostic procedures.

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Shining The Harsh Light On Cloud Washing

James Staten

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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SAP Acquires SuccessFactors – A Look At The Deal

Holger Kisker

Some Reflections On The Deal For Competitors, Partners, and Customers

 The Deal

On December 3, SAP announced the acquisition of SuccessFactors, a leading vendor for human capital management (HCM) cloud solutions. SAP will pay $3.5 billion (a 52% premium over the Dec 2 closing price) out of its full battle chest and take a $1 billion loan. SuccessFactors brings about 1,500 employees, more than 3,500 customers, and about 15 million users to the table. In 2010, the company reported revenues of $206 million and a net loss of $12.5 million. A price of $3.5 billion is certainly a big premium, but the acquisition catapults SAP into the ranks of leading software-as-a-service (SaaS) solution providers — a business that will grow from $21.3 billion in 2011 to $78.4 billion by 2015 (for more information, check out our report “Sizing The Cloud”). The deal will certainly help SAP to achieve its 2015 target of $20 billion revenue and 1 billion users as it mainly targets the 500,000 employees that SAP’s already existing customers have. The deal is expected to close in Q1 next year. However, because most of the stocks are widely spread, stakeholders might hold back for now, waiting for possible counter bids from competition.

 The Organization

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This Week's Economic And Tech News Points To A Tech Downturn in Europe, Slower But Still Positive Growth In US, And Boom In Asia

Andrew Bartels

Picking through economic news this week (French and German growth numbers; financial market turmoil; scattered US indicators) and the vendor announcements from Dell, HP, Lenovo, NetApp, and Salesforce.com, four trends emerge:

  1. European economies are headed for a recession, and European tech market is already in decline. Eurostat (The European Union statistical agency) announced on Tuesday, August 16, that real GDP in the 17 euro area countries and the 27 European countries both grew by just 0.2% in the second quarter of 2011 from the first quarter. Annualizing these growth rates to make them comparable with US GDP growth rates, the numbers were 0.8%. France's real GDP showed no growth, while Germany's real growth was o.4% on an annualized basis. These were sharp slowdowns from France's growth of 3.6% in Q1 and Germany's growth of 5.3%. With worries growing about a financial crisis hitting European banks as a result of potential losses on their holdings of Greek, Portuguese, Irish, Italian, and Spanish bonds, ongoing government austerity programs in these countries as well as the UK, and feeble EU efforts to deal with the problems, there is a high probability that Europe will slip into recession in Q3 and Q4 2011.
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Trust.platform.com — How To Communicate SLAs In The Cloud?

Stefan Ried

Today Informatica announced the availability of a trust site similar to what other major cloud platforms like salesforce.com (trust.salesforce.com) and NetSuite (with its availability status) have done before.

Informatica also added more enterprise-level connectivity and a 24x7 support to its cloud offering, thus making it more enterprise ready than ever.

Let’s have a look at these trust.platform.com sites for a minute and analyze the value of this new way of communicating availability:

Screenshots:

 Trust.InformaticaCloud

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Trust.salesforce.com

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NetSuite

It actually looks like the industry is moving away from the traditional service-level agreement (SLA) communication, with its well-defined statistical availability number of 99.9%, 99.995%, etc. I believe that this makes a lot of sense for most cloud computing platforms in the SaaS and PaaS category, as I noted in my recent blog on cloud computing taxonomy

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Lots Of Talk About Chatter At Salesforce’s UK Customer Event

Duncan Jones

Marc Benioff, CEO of salesforce.com, gave a typically energetic performance at London’s Royal Festival Hall yesterday, both in the main-stage keynote and the private lunch for press and analysts. In addition to some humorous digs at Oracle, SAP, and pretty much any company that wants to run its own data center, Benioff described his vision for enterprise applications in the world of social computing, which he calls Cloud 2. Key to this vision is salesforce.com’s own Chatter application, which is . . .  er, well actually it's not really clear what it is. Various spokespeople described it as an internal Facebook, a collaboration engine, Twitter but secure, but to me it still seems to be a user interface in search of an application.

The demonstration reminded me forcibly of the scene in Bruce Almighty in which Morgan Freeman lets Jim Carrey hear all the prayers being made at that instant by the citizens of Chicago. The user gets a stream of tweets, discussion threads, notifications, and alerts from feeder applications, messages from colleagues to each other, general questions, etc. My question, which no-one could answer adequately was “how is this different from email?” The features they cite — filtering, highlighting, threading, categorizing, etc. — are all in Outlook if you care to use them.

The main difference, apart from the fashionable user interface with the sender’s photo next to each message, is the switch from emailers deciding who they want to read their message, to readers deciding whose chats they want to see. Benioff’s description of his own Chatter feed puts him as the omniscient Bruce, watching every sales process, customer service problem resolution, product design collaboration, and invoice approval throughout his organization.

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