Lexmark To Buy Readsoft - Consolidation Continues In Capture And Content Management Market

Craig Le Clair

Lexmark’s acquisition of Readsoft is part of a continued effort at Lexmark to balance mature and stable printer HW revenues with faster  growing software and services businesses.  This acquisition is one of many in the last two years, and is consistent with consolidation in the mature capture and content market.  And it works for me.

Readsoft provides more software depth in Europe then Lexmark has, and is stronger than Lexmark in financial process automation (purchase –to-pay and order-to cash although mostly the former) with strong integration with SAP and other ERP vendors. Perceptive Software, the core technology within  Lexmark’s software division, is  more content then transaction oriented, a strength that  Readsoft adds.  

There is also synergy across analytics.  For example, Brainware, acquired by Lexmark, is very strong in analytics for forms processing – one of these being invoices.  This should add smarts to ReadSofts front end. 

As always, success is determined by how integration talks place over time and whether an integrated platform can emerge with minimal customer disruption.  It would be good to see acquisiions in the services area to more quickly balance revenue with the tradition business. 

Mobile Mind Shift In Government Means Mobile Enablement As Well As Engagement

Jennifer Belissent, Ph.D.

Governments face an alphabet soup of digital transformation with eGovernment and mGovernment mandates. Do I hear an sGovernment, anyone? The trend in engaging via new digital channels is clear: 52% of US online adults have engaged in one or more government related activities. For example, 19% have renewed a driver’s license or vehicle registration online, and 16% have paid a bill such as a traffic fine or utility payment. In the age of the customer, government organizations must understand and address the needs of their citizens. For governments, it's the "age of the citizen," with demands for greater transparency and accountability, improved efficiency, and, above all, better service delivery. Citizens no longer accept the shoulder shrug and age-old excuse that government is "like that" when service quality isn't as expected. And, part of that service quality for some is to be able to embrace a mobile moment to look up information or complete a task. Some government organizations hear the call and are making great strides to embrace and enable new mobile delivery channels — where appropriate. But many struggle to invest in what they do consider a strategic initiative. Of those who consider mobility a strategic priority, only 30% in government have increased spending on mobile projects, compared with 51% in other industries.

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Welcome To The Future Of Data Management

Michele Goetz

 The demand for data has never been greater.  The expectations are even grander.  On the other hand, what the business wants has never been more ambiguous.  

Welcome to the future of data management.  

According to recent Forrester research, most of us are ill prepared.

  • The business is placing the ownership on data professionals for data needs they don't have the full knowledge to enable: security, quality, business intelligence, and data strategy. 
  • Pressure to contain cost causes data professionals to focus on bottom line efficiency goals and de-emphasize top line business growth goals.
  • Investment in data  is still grounded in bespoke systems that lack scale, flexibility, and agility
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In The Grasp Of A Mobility-, Data-, And Multiplatform-Driven Future

Clement Teo

“The future is already here — it’s just not evenly distributed.” This popular quote hit home at the Global Mobile Internet Conference panel on meeting the challenge of global connectivity that I moderated this week. Internet.org is a global partnership between technology leaders, nonprofits, local communities, and experts who are working together to bring the Internet to the two-thirds of the world’s population that don’t have it. Founding partners include Facebook, Ericsson, Qualcomm, Nokia (now Microsoft Mobile), and Opera.

What it means

  • The age of the customer is everywhere. This point was cemented at the conference. Device makers, network infrastructure providers, and app developers have to work with telecom providers to leverage existing 2G/3G assets to tap unconnected subscribers or miss out on business opportunities. Governments also need to help by, for example, providing consistent electricity to homes. Improving the customer experience can help businesses grow.
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Announcing The Social Risk & Compliance (SRC) Solutions Wave

Nick Hayes

Today we published a new Forrester Wave: Social Risk & Compliance (SRC) Solutions, Q2 2014. This report evaluates 10 vendors emerging to help organizations enable companywide use of social media while providing the necessary controls and oversight to mitigate associated risks and enforce compliance.

 

Why now

Use of social media today is rampant.

It’s no longer just your marketing team that uses social media for business purposes. Employees across the entire organization use social media for personal and professional reasons, leveraging social to drive real business for your company. The opportunities to enhance your brand, deepen customer relationships, and glean new customer insights are all too valuable to ignore -- but the risks are real too.

Moreover, the legal and regulatory landscape is evolving rapidly, complicating the ways in which you can manage social media and the myriad reputational, security, and privacy risks (among others) that expose your organization. To take advantage of these opportunities and still protect your company, you need new tools and technology to do this effectively.

 

What they do

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If You Are CEO Of A Consumer Organization, You Have A New Job Responsibility -- Security

Stephanie Balaouras

On May 5, 2014, Target announced the resignation of its CEO, Gregg Steinhafel, in large part because of the massive and embarrassing customer data breach that occurred just before the 2013 U.S. holiday season kicked into high gear. After a security breach or incident, the CISO (or whoever is in charge of security) or the CIO, or both, are usually axed. Someone’s head has to roll. But the resignation of the CEO is unusual, and I believe this marks an important turning point in the visibility, prioritization, importance, and funding of information security. It’s an indication of just how much:

  • Security directly affects the top and bottom line. Early estimates of the cost of Target's 2013 holiday security breach indicate a potential customer churn of 1% to 5%, representing anywhere from $30 million to $150 million in lost net income. Target's stock fell 11% after it disclosed the breach in mid-December, but investors pushed shares up nearly 7% on the news of recovering sales. In February 2014, the company reported a 46% decline in profits due to the security breach.
     
  • Poor security will tank your reputation. The last thing Target needed was to be a permanent fixture of the 24-hour news cycle during the holiday season. Sure, like other breached companies, Target’s reputation will likely bounce back but it will take a lot of communication, investment, and other efforts to regain customer trust. The company announced last week that it will spend $100 million to adopt chip-and-PIN technology.
     
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Winners Of The 2014 Groundswell Awards (Business-To-Employee Division)

Philipp Karcher
For the past seven years Forrester’s Groundswell Awards have recognized the most innovative social and collaboration programs with a measurable business impact. This year in the business-to-employee (B2E) division we gave out awards in two categories:
 
  • Employee Collaboration. This category recognizes programs that help employees work better together.
  • Employee Empowerment. This category recognizes programs that help employees better serve customers. 
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Is Red Hat Storage The Future Of Software Storage?

Henry Baltazar

With last week's $175M acquisition of storage startup Inktank, the initial developer of the Open Source Ceph storage platform, Red Hat has added another piece to its growing storage portfolio. With large storage players fleshing out their software storage offerings including EMC (ScaleIO, Project Nile), NetApp, HP, and IBM, it's clear that the transition from hardware-centric storage appliances to software storage is underway — and it won't be long before we are at a point where your next array should be an app running on commodity hardware.

Though large storage players have successfully fended off software challengers such as Symantec before, it is telling that nearly all of the major players are developing and marketing their own software storage products, including EMC’s ScaleIO. The drive toward software storage is clearly gaining momentum, and this time around the storage leaders are active participants in addition to startups such as Nexenta Systems and the Open Source projects.

While Red Hat is not a major storage player today, there are a few reasons why this company could become disruptive as the market transitions to software storage:

  • No legacy business to lose. This is probably the most powerful attribute that makes Red Hat dangerous relative to existing storage players. While Red Hat’s market share (in terms of storage revenue and paying customers) is nowhere near the likes of leaders such as NetApp and EMC, its lack of legacy business will allow Red Hat to attack the NAS, object, and block storage market without the sacrifice of losing high-margin storage appliance sales.  
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Tibco Buys Jaspersoft: A Deal With Transformative Potential

Martha Bennett

Since Tibco acquired Jaspersoft on April 28th, 2014, I keep being asked the question: “Will this deal change the BI and analytics landscape?” (If you missed the announcement, here’s the press release.)

The short answer is: it could. The longer answer goes something like this: Jaspersoft and Tibco Spotfire complement each other nicely; Jaspersoft brings ETL and embedded BI to the table, whereas Spotfire has superior data analysis, discovery, and visualization capabilities. Jaspersoft’s open source business model provides Tibco with a different path to market, and Jaspersoft can benefit from Tibco’s corporate relationships and sales infrastructure. And with its utility-based cloud service, Jaspersoft also adds another option to Spotfire’s SaaS BI offering.    

But that’s only the narrow view: once you take into consideration Tibco’s history (the hint’s in the name - “The Information Bus Company”) and the more recent string of acquisitions, a much larger potential story emerges. Starting with Spotfire in 2007, Tibco has assembled a powerful set of capabilities, including (but not limited to) analytics, data management, event processing, and related technologies such as customer loyalty management and mapping. If Tibco manages to leverage all of its assets in a way that provides enterprises with a flexible and agile integrated platform that helps them turn their data into actionable information, it will be a powerful new force that has the potential of changing enterprise BI platforms market.

To get there, Tibco has a number of challenges to address. On a tactical basis, it’s all about making the Jaspersoft acquisition work:

  • Retaining the talent
  • Making it easy for clients and prospects to engage with both companies
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China’s Cloud Collaboration Market Enters A New Age

Frank Liu

Microsoft’s cloud-based productivity suite, Office 365, is now generally available in China through a partnership with 21Vianet, China’s largest carrier-neutral Internet data center service provider. This announcement follows the recent launches of Microsoft Azure and SQL Server 2014.

The public cloud market in China will grow from $297 million in 2011 to $3.8 billion in 2020. The three segments of the virtual private cloud market will grow from $44 million in 2011 to $1.6 billion in 2020. More and more Chinese customers use cloud collaboration SaaS or plan to do so, expecting it to revolutionize their business. What should I&O pros and CIOs in China know about Office 365?

  • Local teams ensure timely responses. 21Vianet has 300 engineers to provide hardware and software service and support for Microsoft Azure and Office 365. For emerging technologies, large Chinese organizations and government agencies like to have local engineers available to quickly solve their problems rather than using a service hotline or remote support.
  • Chinese customers can choose the services they want.Companies and government agencies wishing to purchase Office 365 have a range of tiered pricing options with different functionality, including only buying one Office 365 service — say, SharePoint, Exchange Online, or Lync. As Chinese organizations normally run collaboration applications on-premises, they won’t give up legacy infrastructure, preferring to test public cloud services on a small scale first. For example, TCL uses on-premises email and Office software, so it’s only buying Lync and SharePoint services to improve efficiency instead of completely migrating to a public platform.   
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