Hana Enterprise Cloud - Pro and Cons

Stefan Ried

 

 

 

 

 

 

 

 

Prior to its annual Sapphire event next week, SAP today announced the new SAP HANA Enterprise Cloud. As I have followed SAP’s platform and cloud strategy for years and covered platform-as-a-service (PaaS) in general for Forrester since the beginning, I’d like to quickly share my point of view:

 

PLUS

SAP is targeting the very large enterprise market with the Hana Enterprise Cloud.

Vishal pointed out today that some of the largest SAP customers run SAP systems on their premises that, with a single tenant, are far bigger than many of the native SaaS apps – with all of their tenants. All SAP products are available on Amazon’s AWS; however, many SAP customers use it just for dev, test, and disaster recovery. SAP's message is based on the trust relationship it has by combining an ISV and managed service provider in one company. Amazon won't care about any of the issues that customers might have with larger HANA systems on their general-purpose hardware. So, we are talking about a trust relationship between customers and SAP, which is more similar to salesforce.com than to Amazon.

 

MINUS

Half-baked business model

The Hana Cloud is a very careful move to a new business model. It is not disruptive and will NOT accelerate Hana usage to the many more customers who have been struggling with Hana on-premises because of its licensing.

Read more

Categories:

2013 Huawei Global Analyst Summit: welding together networks, devices and services

Dan Bieler

 

Dane Anderson, Dan Bieler, Charlie Kun Dai, Chris Mines, Nupur Singh Andley, Tirthankar Sen, Christopher Voce, Bryan Wang

 

Huawei is one of the most intriguing companies in the ICT industry, but its overall strategy remains largely unchanged: imitating established products and services, then adjusting and enhancing them, and making them available at an attractive price point. But to be fair: Huawei is pushing more and more innovative products.

In 2012, Huawei’s annual revenue growth slowed down to 8% to CNY 220 billion (about US$ 35 billion). During the same period, its EBIT margin remained flat at 9%, despite the changing revenue composition due to the growth of its consumer and enterprise business. Unlike last year’s event which was dominated by the announcement to push into the enterprise space, this year’s Global Analyst Summit in Shenzhen saw little ground breaking news. It was more of a progress report:

Read more

Business Leaders Spending On Technology Because It’s Too Important To Let I.T. Go It Alone

John McCarthy

In Forrester’s latest report, “Tracking The Renegade Technology Buyer,” we uncover the motivations and technology spending priorities of over 1,000 North American and European business executives. The data from the Forrsights Business Decision-Makers Survey was collected in Q4, 2012.  Of the 891 respondents that had a budget over US$1 million, 824 spent their own money on hardware, software, telecom or services. Twenty-four percent of the 891 spent over 21% of their budget on technology, accounting for over $US 31 billion in expenditures. Senior management and sales and marketing were the top spending business functions and financial services/insurance and telecom/utilities lead the pack from a vertical perspective.

So why are business leaders carving out part of their own budgets for technology? It’s contrary to what you think. The high business spenders are not doing it because it is faster or cheaper than central IT – they are doing it because they see technology as too important to their success not to be involved. In parallel, senior management is more relaxed in dealing with the technology – 33% of the high spenders say there technology IQ has increased and they are more comfortable working with IT. Another 20% say that their use of consumer technology has changed their expectations of how technology should be used. The consumerization of IT is not just about younger Gen Y staff wanting to bring their own Macs and iPhones to the office; just as or more importantly, it’s also changing the way senior managers drive business and technology strategy.

Read more

Enterprise Social, It's Time To...

Rob Koplowitz

My father was never one to use profanity, with one exception. In those instances when I was taking just too long to make a decision or show progress, he'd say, "Rob, it's time to ... or get off the pot!" We're pretty much at that point with Enterprise Social.

In 2012 Forrester embarked on an extensive research project to determine the business value of collaboration and enterprise social initiatives. The backdrop was straightforward; overall adoption was not at the levels projected by the organizations that had made the investment. Just about half had made the investment in some form, and just about half were waiting for more evidence of true business value.

Through extensive interviews, we discovered that the value was indeed emerging, albeit somewhat slowly. If that's the case, then the question changes from "is there value?" to "how do we accelerate time to value?" The research indicated that when enterprise social solutions and tenets are applied to known business processes with an eye toward increasing the quality through better access to content and expertise, the results are demonstrable. Additional benefits came from removing human latency from processes by applying not only social, but mobile as well. How do you find the low-hanging fruit in your organization? The more case studies there are, the better chance of finding on that would resonate for you. To that end, Forrester has assembled an all-star cast of vendors to discuss specific use cases within their customer bases. The goal of the panel is to discuss business, not products. 

Joining me on stage will be:

Adam Pisoni of Yammer

Andy Kershaw of Oracle

Read more

US Tech Market Will Grow By 6.2% In 2013 And 6.8% In 2014, As Improving Consumer Spending And Housing Offset Government Cutbacks

Andrew Bartels

No one would claim that the US tech market is booming.  With Europe still mired in recession and debt problems, US economic growth looking soft, and business and consumer worries about the US government raising tax rates and cutting Federal spending, it is not surprising that businesses and governments are being cautious in their purchases of technology goods and services.  But we think the fear is overblown.  Forrester's forecast for the US tech market in 2013 and 2014 -- published today as "US Tech Market Outlook For 2013 And 2014: Better Times Ahead" -- projects a 6.2% rise in 2013 and a 6.8% growth in 2014 in US business and government purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing.  Adding in slow growing telecommunications services pulls growth down to 5.7% in 2013 and 6.1% in 2014. That may not be a boom, but it is certainly not a bust.

While CIOs are cautious in their tech buying -- and in the case of the Federal government, actually cutting back -- that caution has and will show up mostly in reduced spending on computer and communications equipment (with the exception of tablets).  CIOs will be most aggressive in software, especially for SaaS apps, analytics, and mobile apps. IT outsourcing will see good growth in 2013 as the result of 2012 selection decisions, while IT consulting and systems integration will come on strong in 2014.  Business and government purchases of telecommunications services will continue to grow at a slower rate than the overall tech market.  

Read more

Winning The Customer Experience Game

Nigel Fenwick

We all hear and read stories of terrible customer experiences; like me, you probably have had your own share of bad experiences. And social media has made it possible for these bad experiences to be shared instantly with millions of people. But in our journey through life, we also experience service that exceeds our expectations. And as we read reviews online, we're more likely to see a mixture of both good and bad experiences. For example, I recently posted a glowing review for a B&B in Bethel, ME, even though a few things about my stay would have typically caused me to deduct points. My five-star review was extremely positive because the proprietor had blown away my expectations on service, delivering an experience way beyond any I've had in a five-star hotel.

But excelling at the personal touch in a small-town B&B is far easier than doing it at scale in a multibillion-dollar business. Yet there are companies that consistently deliver great customer experiences. (My colleagues even wrote a book on them). They aren't perfect all the time, but, on average, they are better than their competitors. At Forrester, we identify these companies through our annual Customer Experience Index (CXi) research. Toward the top of the 2013 index, we find companies like Marshalls, Courtyard by Marriott, USAA, TD Bank, Southwest Airlines, Vanguard, Home Depot, Kohl's, Fidelity Investments, and FedEx.

Read more

Is your data working for you?

James Staten

 

Every company generates data that would be of significant value to its customers, partners and potential partners; information that could be combined with insights from this ecosystem, public data and other sources to generate significant new discoveries, products and business values. But making our data available, easily consumable and getting payback for sharing it are significant hurdles.

Over many years we have built up an ever-more complex web of security, legal and data management practices that make it nearly impossible to share valuable info between companies in an open marketplace style – which is exactly what is needed to open up this value.

But it doesn’t have to be this way. There is a new approach that leading enterprises and governments are taking today that is significantly simpler, more manageable and empowers companies to share their key data more freely, opening up massive new market opportunities for all. Here's how a few Forrester clients are taking advantage of this new model:

Read more

The Battle For The Indian Banking Industry Will Soon Intensify, And Big Data Will Decide Who Wins

Manish Bahl

 

On February 22, the Reserve Bank of India (RBI), an institution that supervises and regulates India’s financial sector, announced guidelines allowing corporations to enter the banking sector. Private companies, public-sector groups, and nonbanking financial firms will all be eligible to apply for a banking license. We expect RBI to start issuing new bank licenses by early 2014.

RBI guidelines state that companies receiving a banking license must open at least 25% of their branches in rural areas. Despite this guideline, I believe that new entrants will primarily target the same urban and semi-urban customers that existing banks target. The reason is simple: These are the most profitable customers. This helps explain why 85% of rural bank branches in India belong to public banks; it’s simply not an attractive market for private banks.

What it means for current Indian banking CIOs: Leverage big data to grow your business or prepare to be left behind.

As competition increases, businesses will expect new IT capabilities to understand and respond to customer needs better, faster, and cheaper. Banking CIOs who embrace this change will adopt big data technologies and become true business partners. The ones who don’t will be bypassed by new entrants (when they come to play) using big data approaches and internal data from whatever market they’re currently in to analyze the banking market. These new entrants will likely influence customer preferences, question existing assumptions, and look for ways to disrupt the market. I recommend that current Indian banking CIOs:

Read more

Engaged Employees Expect IT Leaders To Understand Their Needs

TJ Keitt

My colleague Simon Yates and I have spent a good bit of time recently discussing the role of IT in creating engaging experiences for employees. We've proposed that IT leaders concern themselves with helping business leaders convert that engagement into productive actions that achieve positive business outcomes, like good customer experiences and employees advocating for the company. But what does this mean for IT leaders in practice? Well, let's look at a group of employees who are currently creating the types of outcomes businesses seek: those willing to advocate for their business as a place to work and as a place to do business. According to our Forrsights Workforce Employee Survey, Q4 2012, around two-thirds of this group feel IT understands and meets their needs (see figure below).

These positive attitudes toward the IT department's performance stand in stark contrast to the views of employees who aren't achieving these outcomes. For example, while 65% of employee advocates are satisfied with the service they receive from the IT department, just 27% of employees not fully advocating for the company share a similar opinion. So what creates this chasm in opinion? We find clues when we look at some of the attitudes employee advocates have about what their organizations allow them to do:

Read more

Can Twitter be used for community discussion? Nestivity believes it can.

Nigel Fenwick

For many, Twitter is a great way to find out what’s happening in the world but not the first place they would turn to drive a meaningful discussion with a group of colleagues or customers. Nestivity hopes to change this by creating a tool which allows Twitter users (and that includes companies) to drive meaningful discussions through Twitter.

The site officially launched today, and it’s free for Twitter users to sign up. The company offers a freemium pay model by charging customers for adding multiple community moderators — provided you only have one moderator, it remains free (for now).

Naturally I’m trying it out and you can help figure out how it works by joining in on the conversation I’ve just set up in my very own “nest”:

What’s the role of IT in creating great customer experiences? Check out the discussion and add your POV and help drive the discussion and you could see your POV included in the new research to be published at the upcoming CIO Forum in May.

And “Chief Digital Officer: real or imagined?” — add your POV to this discussion to contribute toward the research I’m doing on this to be published at our CMO/CIO Forum in the fall.

Can Twitter support vibrant discussions? Does Nestivity add to the ability to make Twitter a useful engagement environment? Share your thoughts on this post here.