SaaS Pricing Models In Flux

Liz Herbert

At Forrester’s recent IT Forum in Las Vegas, we conducted a roundtable with several leading software and services firms focused on SaaS around the topic of SaaS pricing trends. Key takeaways:

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How Would You Sell Business Architecture To Your CEO?

Alex Cullen

Consider the following scenario. You have realized that your firm can benefit from having a documented business architecture – perhaps based on business capabilities – not for any one issue or need but rather as a general framework for planning, strategic execution and coordination by different parts of business and IT. You are in a meeting with your CIO, making the case, when the CIO says, “In a couple of minutes our CEO is dropping by. You can make your case to him. If he’s interested, we’ll go ahead.” 

OK – that scenario may seem like kind of a stretch – after all, how often does the CEO drop in on the CIO and want to listen to a pitch on business architecture? Well, something like this happened to me recently, and I’d like your thoughts on how to make the case. I was visiting a client – the head of EA at this client (a medium-size financial services firm) – when he said, “I’ve started to lobby with our business management that we need a business capability map. The CEO is dropping by and would like to hear the reasons from you. I think you’ll have about 15 minutes.”

Talk about a challenge! When CEO arrived, after initial introductions, this is the case I made:

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Microsoft Licensing, June 2010 — The Perfect Storm

Christopher Voce

Last week I recorded a podcast on what has recently become a very hot IT research topic at Forrester right now — Microsoft licensing. June 2010 signifies an extremely active and very hectic month for a large number of businesses because it's not only the last month of Microsoft’s fiscal year but also the last month for a large portion of Microsoft's three-year contracts.

The reason for this pileup of Microsoft licensing activity partially stems back to 2000: Microsoft refreshed their volume licensing program and introduced Software Assurance. Microsoft Enterprise Agreements are typically for three years. Facing the initial June deadline in 2001, many businesses switched over to this offering and since then, every three years their licensing agreements need to be reassessed and renegotiated. Now fast forward nine years to June 2010 and factor in several significant new products releases — and  here we are again witnessing what is truly the perfect storm of activity, discussion, and negotiation for businesses and their Microsoft licensing, decision-making personnel.

As you might expect, we receive an ever-increasing number of inquiries related to this subject as we continue to get closer to the aforementioned June 30th deadline. Clients bring a range of questions like whether or not they should renew their enterprise agreement (EA), if Software Assurance holds enough value to justify the commitment, or what IT upgrades and migrations impact their decisions. My first response to these questions is. . . there is no easy answer. Each company has their own set of requirements, cost limitations, and future strategic plans that affect which decision is right for them.

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Where Does Web Conferencing Technology Make Sense?

TJ Keitt

Last night I had the pleasure of attending the Citrix Online Executive Meet-Up here in Boston; as an East Coast-based technology analyst, I rarely see the vendors I cover in person without hopping on a plane. For those unfamiliar, Citrix Online is the maker of popular remote access and Web conferencing technologies GoToMyPC, GoToAssist, GoToMeeting and GoToWebinar. The centerpiece of this event was a customer panel exclusively made up of marketing professionals who use the conferencing technologies for customer and channel interactions. It was a fact I made sure to jot down in my notebook – why such a marketing-heavy panel? This prompted a broader question: are sales and marketing the real killer applications for Web conferencing?

A myriad of companies occupy the Web conferencing market, offering solutions that address four basic use cases:

  • Ad hoc meetings: collaborative sessions that need to happen on short notice. These could be quick screen sharing/document sharing sessions, technical support or demonstrations.
  • Formal meetings: planned sessions with formal agendas that are centered on a group considering one or more pieces of content.
  • Large & small group presentations: more formal events where a presenter addresses a group of some size with varying degrees of interactivity.
  • Training sessions: educational sessions where participants get information, have interactive learning sessions and can be tested on content.
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Crisis Communication, Business Continuity, And Risk Management

Chris McClean

I recently recorded a podcast with Stephanie Balaouras, discussing the potential for increased collaboration between crisis communication, business continuity, and risk management functions. The strategies that businesses implement to manage disasters can mean the difference between bankruptcy and resilience... and we unfortunately see reminders of this on an almost weekly basis.

As each disaster hits the news (BP’s oil spill in the Gulf Coast, the recent volcanic eruption over Iceland, the financial crisis, the H1N1 virus, the extreme weather that crippled Washington, DC this past winter, etc.), the overwhelmingly negative impacts that occur start to hit home. Fortunately, we are starting to see our clients turning more to their crisis communication, business continuity, and risk management teams to ensure that they are prepared for the worst.

There are many potential points of collaboration between these teams. . . from modeling critical business processes and assessing the business impact of incidents to executing effective remediation plans and conducting post-incident loss analysis. Recently, I’ve also seen companies that talk about starting from scratch with a risk management function, although they have already done a substantial amount of relevant work for their business continuity function.

Of course, while there are some good trends that point to increased cooperation, there are still many areas for further improvement for every company. In fact, our data shows it to be the rare case in which both internal and external crisis communication functions are handled well in the same plan, with one usually being much stronger and more of a focal point.

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10 Components Of A Successful BI Strategy Plan

Boris Evelson

Defining a successful BI strategy is a lot more than gathering requirements and selecting a vendor. While it’s been a subject of many books, I know few of you have time to read them, so here’s a short version.

  1. First defining what BI is and what it is not. Is it just reporting, analytics and dashboards? Or does it involve ETL, DW, portal, MDM, etc., as well?
  2. If the former, you then need to define linkages, dependencies, overlaps and integration with all of the latter (including - very importantly - integration and coordination with the higher level enterprise architecture efforts). If latter, it’s a whole different subject. You then really do need to read a few thick books.
  3. Ensure senior business executive commitment and top down mandate. If you cannot get that, do not proceed until you do. Two ways to “sell BI” to them (even though that’s not a good position to be in):
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Deltek Announces Its Intent To Acquire Maconomy: The PSA Segment Of Project-Based Solutions Is Alive And Well

Margo Visitacion

Deltek’s announcement today of its intent to acquire Maconomy has the potential to vault the vendor’s position as a potential leader in the project-based solutions (PBS) space. For midmarket organizations that deliver projects as a crucial part of their revenue generation, this is a good move.

While the focuses of the products share slight overlaps, the products themselves target different functionality and different markets. Deltek has long been a major vendor in the AEC and government contractor markets, while Maconomy, a Denmark-based PBS vendor, focuses on the public relations/advertising, legal, publishing and accounting markets.  

What’s good:

  • Few overlaps – in customers and in industries.
  • Opening doors to new regions – Deltek has limited exposure in EMEA, and Maconomy has had a very difficult time penetrating North America.
  • Mature product sets – Deltek isn’t acquiring an idea but a full blown product. This will allow them to quickly pursue new customers in expanding regions.

 

What’s going to be a challenge:

  • Create visibility in existing markets in new regions – The struggles to gain penetration in the new regions won’t get any easier for either vendor; however, the solutions’ strengths may gain them easier entry.
  • Integration – Deltek is still working through integration challenges with some of its earlier acquisitions (namely, Welcom) and now adds another platform into the mix. The positive here is that Maconomy is fully functional on its own, and we don’t expect there to be huge overlap, if any.
  • Sales integration – Opening new regions and new industries can be a tough sales training challenge. Expect a few bumps.

 

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The Ariba Commerce Cloud: Stratus Or Cumulus?

Duncan Jones

Bob Calderoni and Tim Minahan, Ariba’s CEO and CMO respectively, explained their vision for the future of supplier networks at the company’s Ariba Live customer event this week. The basic concepts, of a B2B community with value-adding services for sellers, such as prospect discovery and multi-customer e-invoicing, is one I’ve advocated to network providers for a long time, including in my report of internetwork interoperability (Enterprises Should Push Supplier Networks To Deliver Interoperability). The community concept is certainly fashionable at the moment, with lots of business-to-business (B2B) technology vendors trying to match the success of Facebook, LinkedIn, Twitter, and the like. The big question is whether Ariba can achieve the universal reach that the commerce cloud will need if it is to deliver value to its members.

Social media consumers don’t seem to be worried by monopolies. As my daughters tell me, people of their age have to be on Facebook to know what’s going on. There’s no point using other services like MySpace or Bebo (or, for older readers, Yahoo Groups, Geocities, Friends Reunited, and their equally overhyped predecessors), because everyone uses Facebook, and the community only works if everyone’s in it. It’s the same with B2B eCommerce — supplier-side members want to know about all the relevant parties (i.e., RFX’s), and party organizers (i.e., buyers) want to publish the invitation in one place yet still reach all their potential friends. In practice, this means the community must either be:
a) a broad stratus formation covering everything, Straus cloud cover

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Put Your IT Staff Through Sales Training

Nigel Fenwick

I was recently asked about the importance of selling skills for CIOs - does a CIO need to be a good salesperson? It seems to me the answer to this should be a resounding yes. After all, IT executives need to be able to sell themselves effectively in order to attain the heights of the C-Suite. Great CIOs must be great communicators, capable of delivering a compelling presentation or a memorable speech, and inspiring others to follow them.

But what of sales skills beyond being a good presenter? Since many sales skills are focused on understanding people and connecting with them, I've found sales training to be highly effective on two levels:

  • Developing better listening skills. One of the first things you learn as a salesperson is not how to make a pitch, but how to listen to a customer - only by listening can a good salesperson effectively satisfy the needs of a prospect/customer.
  • Understanding how products/services meet the customer needs. Salespeople spend a lot of time learning about a firm's products and services; they learn how they meet the various customer needs and they learn how to present them in the best light.

So go ahead and sign up for the next sales training class being run in your organization - you may be pleasantly surprised!

Are CIOs the only people in IT needing sales skills?

I'd like to make the case for putting everyone in IT through sales training - here's why:

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Elaborating On The Technology Libertarianism Theme: Some Observations On Two IT Organizations

TJ Keitt

Last week, Forrester held its annual IT Forum in Las Vegas with the interesting theme, “The Business Technology Transformation: Making It Real.” Gathering together a group of IT professionals and vendors interested in how business leaders will insert themselves into technology decisions, it provided a perfect opportunity for me to discuss Technology Libertarianism – my shorthand for IT departments that take a hands off approach to technologies workers want to use to do their jobs. On the floor of the conference I talked to an IT professional at a large, national non-profit organization and two information workers from at a public corporation providing a popular software-as-a-service application.

The conversation with the IT professional centered on his organization’s need for standardization: they were making efforts to have a homogeneous computing environment for the purposes of having greater control. During our talk, we discussed the influence an end user could possibly have over applications and hardware. His thoughts? While the end users in his organization needed a standard set of applications, and they needed to control the desktop environment to ensure delivery of said applications, he could see the potential of not having to standardize smartphones. When I introduced the idea of virtual desktops to push applications or software-as-a-service, which would allow him not to have to standardize the desktop, he did concede those are interesting ideas. However, he needed to see more evidence that these could be effective solutions for his organization.

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