At SAPPHIRE NOW 2010, SAP's annual marquis customer event, SAP Co-CEOs Jim Hagemann Snabe and Bill McDermott share insights into how companies strive to align IT strategy with business goals. Three themes: 1) real-time 2) unwired and 3) sustainable.
Real-time. Enterprises need information more quickly; daily, weekly, or monthly updates rarely suffice. At the same time, the amount of data that companies now have available to them is astounding.
Unwired. Firms are increasingly leveraging mobile so that employees, customers, and partners are no longer bound by their IT systems and hampered in decision-making but instead empowered with information and decision tools anywhere. (SAP's acquisition of Sybase adds to their capability in mobile.)
Sustainable. Not just goals towards green and reduction of carbon emissions, companies also want to make sure they get leverage out of their investments; today's technology decisions must make long-term sense on the IT strategy path.
Most organizations who speak with Forrester struggle to balance business goals such as real-time information, mobile access, and sustainability with cost pressures and management of existing IT investments. Firms strive to get the most out of their existing IT investments while balancing investment in newer technologies -- such as analytics, mobile devices, or GRC solutions. Increasingly, IT departments are also facing another challenge -- as businesses can easily go outside of IT to buy and often self-provision new tools to achieve their goals: SaaS and Web 2.0 solutions and mobile devices such as iPads or BlackBerrys.
Is it me or do you feel like everyone is restructuring their IT organization – or at least talking about it? Chatter among CIOs often turns into a debate over the merits of plan-build-run models versus demand/supply models – or any other IT model du jour. So, I was eager to get my hands on the first draft of Marc Cecere’s presentation on “Future BT Organizational Models” that he’ll be delivering at Forrester’s IT Forum in Las Vegas (it’s next week, so I’m up to my elbows in draft presentations – reviewing our CIO analysts’ content, pushing their thinking further, and frankly reveling in all the new research). Here’s a sneak peek:
Monday, May 17: I'm on my way to SAP's SapphireNow to figure out where the world's largest enterprise vendor is taking its customers after buying Sybase. Is SAP's future mobile apps? Newfangled "in-memory" architectures? Cloud-based apps? Or is SAP just grabbing a database to compete with Oracle's?
I know you've got questions too about the future of enterprise applications -- and not just about SAP's direction. I've had many discussions with individual Forrester clients about the future of applications over the years, but never with everyone. Now, OutSystems and I have come up with a new use of social media to open the doors on a worldwide Q&A on the future of applications. Visit What's the Future of Applications? Ask Rymer for details.
We call it "social consulting." Here is how it works:
1. During the next week, visit the "Ask Rymer" site and post your biggest, baddest questions about the future of applications. We've got to account for change agents ranging from the Apple iPad to Smart Computing approaches to cloud computing to Lean Software to understand the future of applications. And we've got to continue our progress toward software that is designed for people and built for continuous change.
Recently, SAP announced a definitive agreement to acquire Sybase for $5.8 billion, at $65 a share, a 44% premium over the share's three-month average price. The transaction is expected to close during the third quarter of 2010. Sybase will operate as a standalone unit under the name “Sybase, a SAP Company,” and be run by Sybase’s management team.
Although execs from SAP and Sybase have stressed mobility, real-time information, in-memory, and analytics benefits that come from this acquisition, the increasing pressure from Oracle cannot be undermined. Oracle’s stronger focus of stack level integration and selling around applications, middleware and database, and recent acquisition of SUN has put pressure on SAP.
SAP-Sybase Deal Offers A Lot Of Synergies
SAP and Sybase offer many benefits ranging from in-memory technologies, databases, analytics, and data integration to mobility and ILM.
A few weeks ago IBM invited me to a day-long conference in San Francisco to preview a new product direction around case management. At first I was a bit hesitant because case management is a bit outside of my normal research agenda, but an old pal in IBM analyst relations convinced me to come over. It was well worth the time. What I saw was much more than I expected as IBM plans to productize a true Information Workplace offering around the pervasive business issue of case management. The concept of an Information Workplace, first presented by Forrester in 2005, is defined as:
A software platform now emerging to support all types of information workers by providing seamless, multimodal, contextual, mobile, right-time access to content, data, voice, processes, expertise, business intelligence, eLearning content, and other information through the use of portals, collaboration tools, business process management, content repositories, content analytics, taxonomies, search, information rights management, and other emerging technologies.
In the fanfare surrounding Microsoft’s unveiling of Office and SharePoint 2010, the co-authoring capability Microsoft is offering in OneNote, Word, PowerPoint, and Excel stood out. Put simply, co-authoring is the ability of multiple people to work synchronously on a document. Microsoft has built a number of features to make real-time editing work: notification of who is working on the document and integration with OCS to facilitate conversations; locking of sections to editing; and a “save to share” feature that reconciles changes between editors after they’ve finished, to name a few. However, lost in this talk of real-time document collaboration is a more basic need that I believe Microsoft is actually solving (hinted at in the title of this post).
Most of us have already heard that Sybase will become part of SAP — or, to be more precise, that SAP and Sybase announced that SAP's subsidiary, SAP America, Inc., signed a definitive merger agreement to acquire Sybase. When this acquisition takes place, there will be various impact areas across SAP and Sybase’s combined portfolio. Rather than discussing this big picture, I would like to focus on SAP for Banking.
Late last week, ExlServices acquired PDMA, Inc., maker of the LifePRO Insurance Policy Administration System. In his discussions with Forrester, Yogendra Goyal, VP & Global Head - Insurance Practice, was very clear on how the deal will help theBPO provider. He said the LifePRO platform will enable the company to move to a more sophisticated outcome pricing model as well as enable it to to cut costs and drive higher value and up the process stack. It's another clear example of how the BPO market is moving to have a standard software platform underpin its process work (see my report Platform BPO: Process Outsourcers Take A New Approach To Traditional BPO for more information).
Yesterday at its annual analyst meeting, Accenture unveiled its new software group. Yes, the company has formally set up a software organization to sell packages and SaaS offerings. The group was internally established back in September 2009, but publically launched this week. The group has 48 products, 36 of which are vertical packages that Accenture has done on its own; the remainder are enhancements to existing packages from vendors like Oracle and SAP. The vertical packages include freight and logistics, hotel property management, and a claims components solution. Sample “enhancements” cover P&C billing with SAP, banking with both SAP and Oracle, and a human capital management offering with SAP. The numbers on the group: the offerings cover 8 industry segments and it has 2,000 people and claims that it has signed 600 deals where there is an explicit software license. There are 12-15 software factories in support of 48 products. This is an extreme example of the standardized offerings that services vendors will bring out as the market evolves.
Every spring I’m faced with the wonderful opportunity – and challenge – of choosing the best questions for Forrester's annual 20 minute Web survey of commercial buyers of IT infrastructure and hardware across North America and Europe.
As technology industry strategists, what themes or hypotheses in IT infrastructure do you think we should focus on? What are the emerging topics with the potential for large, long term consequences, such as cloud computing, that you’d like to see survey data on? Please offer your suggestions in the comments below by May 21!
This year, I’m proposing the following focus areas for the survey:
New client system deployment strategies– virtual desktops, bring-your-own-PC, Win 7, smartphones, and tablets
Hypothesis: Early adopters are embracing virtual desktops and bring-your-own-PC, but the mainstream will proceed with standard Win 7 deployments