Suddenly, Dell Is A Software Company!

Glenn O'Donnell

The Dell brand is one of the most recognizable in technology. It was born a hardware company in 1984 and deservedly rocketed to fame, but it has always been about the hardware. In 2009, its big Perot Systems acquisition marked the first real departure from this hardware heritage. While it made numerous software acquisitions, including some good ones like Scalent, Boomi, and KACE, it remains a marginal player in software. That is about to change.

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Software Audits: A Story Of Home Truths, Horror Stories, And Money

Mark Bartrick

Software audits are a bit like public transport; you can wait for ages for a bus and nothing turns up and then all of a sudden five come along at the same time. It shouldn’t surprise anyone that software vendors are running more licensing audits today than ever before. The challenging economic climate has driven down the volume of new license sales for many vendors, so they are looking to backfill that revenue gap by auditing their clients and by finding which ones are using more licenses than they actually purchased.

Looking at Forrester’s inquiries over the last few years, we can see a steady increase in calls asking for help with a Software Audit. The main vendors we see active in the software auditing space at the moment are IBM, Microsoft, Oracle, and SAP. That’s not surprising, as they’re the major software vendors overall. More clients means more audits. And audits certainly aren’t limited to these players; vendors of all sizes are auditing.

But software audits don’t need to be a horror show. If you are well prepared for an audit and have good Software Asset Management procedures in place then you should have nothing to fear. If you aren’t prepared, perhaps in blissful denial that such an event would happen to you, then let this be a warning; in the software audit space, no one can hear you scream.

Un-licensed software usage is easy to miss. There are many potential causes but the outcome is usually the same; you owe more money to the software vendor!

So be prepared. And preparation starts with this: once the audit request arrives make sure you:

  • Understand the vendor’s Audit process
  • Establish a single point of contact within your organization
  • Establish your audit team
  • Get ahead of the audit by thoroughly reviewing your license entitlements and your actual usage before the Vendor’s audit team arrives
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To Be (To Cloud) Or Not To Be (Not To Cloud) BI

Boris Evelson

My colleagues and I have just completed yet another engagement with a large client — one of dozens recently — who was facing a to be or not to be decision: whether to move its BI platform and applications to the cloud. It’s a very typical question that our clients are asking these days, mainly for the following two reasons:

  1. In many cases, their current on-premises BI solutions are too inflexible to support the business now, much less in the future.
  2. The relative success of cloud-based CRM (SFDC and others) solutions may indicate that cloud offers a better alternative.

These clients put these two statements together and make the reasonable assumption that cloud BI will solve many of the current BI challenges that cloud-based CRM solved. Reasonable? Yes. Correct? Not so fast — the only correct answer is “It depends.”

Let’s take a couple of steps back. First, let’s define applications or packaged solutions vs. platforms (because BI requires both).

Packaged solutions

  • Subscribe to a solution-like CRM
  • Provide standard business functions to all customers (which makes it different from “hosting;” see below)
  • Difficult to tailor to specific needs
  • Usually are used synonymously (but incorrectly, see below) with software-as-a-service (SaaS)

 Platforms for building solutions

  • Subscribe to tools and resources to build solutions like CRM
  • Provide standard technical functions to developers
  • Contain limited, if any, business application functionality
  • Usually labeled either as platform-as-a-service (PaaS) or infrastructure-as-a-service (IaaS).
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Three CXM Trends For 2012

Stephen Powers

As I recently celebrated my fifth anniversary as a Forrester analyst, I reflected on how my coverage area has changed. For the past five years I've covered the web content management (WCM) market. This has been a healthy market, and I still get plenty of interest from my clients on this topic.

But the context of that interest has changed markedly, particularly over the past year. When clients used to ask about WCM, they wanted to know about WCM and WCM only. But these days, they ask about WCM in the context of other technologies supporting customer experience, such as commerce, CRM, and analytics. Our clients have reached a logical conclusion: WCM isn't the end-all-be-all for digital experiences but instead is one piece of the customer experience management (CXM) puzzle.

And the market will continue to evolve in 2012. In particular:

  • Watch for an avalanche of acquisitions, both big and small. Though larger vendors have multiple pieces of the CXM puzzle, no one has yet put together a complete portfolio. Vendors are still missing some critical pieces, such as rich media management (IBM), commerce (Adobe), and testing and optimization (Oracle, SDL). Watch for the CXM vendors to compete to fill these gaps. High-reaching best-of-breed WCMs such as Sitecore may not remain independent for long.
  • Contextualization will become the byword. Forget complicated business rules and template schemes. Technology to contextually adapt customer experiences based on user segment, browsing behavior, locale, and device will be high priority. Vendors will make strides so that customers can increasingly take an "automate + optimize" approach: automating contextualization for most experiences and manually optimizing it for a few high-profile experiences, such as home pages.
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Two Truths And A Lie: Software Development In 2020

Kyle McNabb

When getting introduced to a new subject or new people, we sometimes play a game called "two truths and a lie." The basics of the game are simple: Anyone introducing a subject - or themselves - states two truths and one lie. The audience then has to identify what the lie is. 

Below, you will find three bullets related to our future of software development research. Two are truths as identified by our research, one is a lie: 

  • Software's fueling today's disruption, becoming embedded in everything to make technology useful, usable, and desirable.  
  • Software development expertise will increasingly be centered on Java, .NET, and proprietary development and application platforms. 
  • The U.S. Bureau of Labor Statistics projects software-development-related roles and jobs to increase at double the national average through 2020. 
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A Billion Smartphones Require New Systems Of Engagement

Ted Schadler

It's a technology big idea: that organizations can best serve their customers, partners, and employees with new "systems of engagement." (Thanks to Geoff Moore for permission to define and use his term.) Let us explain why.

First, the logistics. John McCarthy and I spent the last eight months sifting through the patterns that have emerged from firms that have harnessed mobile, social, big data, and cloud technology: 100 conversations; 61 interviews with experts; and Forrester surveys of 10,000 business and IT decision-makers, 10,000 global information workers, and 50,000 consumers. Out of that research we've just published a 28-page report for Forrester clients that we will deconstruct and re-assemble via blog posts over the next few months.

We began by looking for the unintended consequences of a successful mobile app, expecting to find some best practices in experience design, middleware APIs, server deployments, app development, and organizational alignment. We found those things and captured them in the report. But we also found something more important: a new  ability to empower customers, employees, and partners with context-rich apps and smart products to help them decide and act immediately in their moments of need.

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Verne Global And Colt Technology Show A Zero Carbon Data Center – It’s Real, Running, And Impressive In Iceland

Richard Fichera

Data centers, like any other aspect of real estate, follow the age-old adage of “location, location, location,” and if you want to build one that is really efficient in terms of energy consumption as well as possessing all the basics of reliability, you have to be really picky about ambient temperatures, power availability and, if your business is hosting for others rather than just needing one for yourself, potential expansion. If you want to achieve a seeming impossibility – a zero carbon footprint to satisfy increasingly draconian regulatory pressures – you need to be even pickier. In the end, what you need is:

  • Low ambient temperature to reduce your power requirements for cooling.
  • Someplace where you can get cheap “green” energy, and lots of it.
  • A location with adequate network connectivity, both in terms of latency as well as bandwidth, for global business.
  • A cooperative regulatory environment in a politically stable venue.
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Oracle Throws In The Towel And Acquires A Cloud Talent Management Vendor

Claire Schooley

The rumor circulating for the past few weeks has now been confirmed: Oracle is buying Taleo, a global talent management vendor, for $1.9 billion. This is just another — albeit important — acquisition in the strategic talent management space. All companies must have core HR systems in place, but now it’s equally important to look at the strategic part of HR: the performance, succession, career development, and learning components as a layer resting on top of the core. Companies want to retain, develop, and reward their employees and need these applications in place for efficiency and effectiveness.

With this acquisition, Oracle gets a vendor with these talent management components in a pure SaaS deployment model, which provides ultimate flexibility. However, the offerings in the suite are not equally robust. Taleo is known for its recruiting app; to become a suite vendor, it added performance, which has gotten mixed reviews, and learning, which is not best in its class. Learn.com, the vendor Taleo acquired for learning, works OK for the midmarket, but its functionality does not hold up well for large global and enterprise customers.

Oracle can’t buck the SaaS tide any more. SaaS is the preferred deployment model for talent management, and the large ERP vendors like SAP (finalizing its acquisition of SuccessFactors) and Oracle are now joining the movement. Oracle offers Fusion, but a lot of work still needs to be done to develop this into a full SaaS talent suite. Once this deal closes, watch and see how Oracle positions the Taleo offerings with Fusion Talent Management.

Oracle Moves Solidly Into SaaS With Taleo Acquisition

Paul Hamerman

Oracle Corporation announced its purchase of Taleo for $1.9 billion on Feb. 9, 2012, signaling a major shift in its stance on software-as-a-service (SaaS) and talent management applications. The transaction is expected to close midyear 2012, subject to regulatory and stockholder approvals.

Oracle has long held a “we can build it better” position on talent management, learning, and recruitment applications but struggled to compete with best-of-breed talent management vendors like SuccessFactors (recently acquired by rival SAP), Taleo, Kenexa, Cornerstone, and SumTotal Systems. Oracle has been reticent to offer these (or any other) applications via SaaS, preferring a licensed/on-premises business model that provides early revenue recognition versus the deferred revenue model of SaaS.

In fact, Oracle CEO Larry Ellison has been outspoken in his anti-SaaS stance in recent years, changing his posture somewhat with the Oracle Public Cloud announcement at last October’s Oracle OpenWorld conference. Meanwhile, the HR apps market shifted overwhelmingly to the SaaS (subscription-based) deployment model, which has become virtually ubiquitous in recruitment, learning, and talent management and is also growing in core HRMS via ADP, Ultimate Software, and Workday.

By acquiring Taleo, Oracle puts itself back in the game for SaaS recruiting and talent management. Taleo is a market leader in recruitment automation and has a competitive portfolio of products across performance, compensation, and learning management. The $1.9 billion deal price is more than six times Taleo’s 2011 annual revenues of $309 million, a high premium but substantially less than the $3.4 billion and 11-times revenues that SAP recently paid for SuccessFactors.

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What’s A Facebook “Like” Worth?

Nigel Fenwick

Facebook LikeIt seems everyone’s obsessed with Facebook’s IPO right now. And while CMOs are beginning to understand the possibilities of Facebook, and other social technologies, to connect and engage with customers, many CIOs remain unclear on the value of Facebook.

A question many business executives ask is this: “What’s the value of having someone like your page?”

On its own, maybe not much. But the true potential lies in the ability to collect insights about the people who like brands, products or services – be it your own or someone else’s.

For example, the chart below shows the percentage of consumers by age group who have “liked” Pepsi or Coca-Cola. These data suggest Coca-Cola is significantly more popular with 17-28 year olds than Pepsi, while Pepsi appears more popular with the 36-70 crowd. I pulled these data points directly from the Facebook likes of each of the brand pages using a free consumer tool from MicroStrategy called Wisdom. Using this tool I can even tell that Coca-Cola fans are likely to also enjoy the odd Oreo cookie and bag of Pringles.

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