For Small SaaS Vendors, The Benefit Of A Free Tier Is To Attract Partners

TJ Keitt

Recently, I published a report about a small software-as-a-service (SaaS) vendor, Dimdim, which is having success in the crowded Web conferencing market. Like many small vendors, Dimdim provides a free service tier, generously allowing up to 20 participants into the free meeting, to help drum up business. The report, though, did not simply highlight the number of users that Dimdim has captured in four short years of existence -- over 5 million -- but also its success in attracting partners like Intuit, Novell and Nortel CVAS. Why? For new vendors entering crowded markets, attracting partners is vital for two reasons:

  1. Partners open doors to new markets. In crowded markets, incumbent vendors and new entrants jostle to serve customer needs. For the new entrants, the customers that can be wrangled through media hype and analyst buzz is minimal. Mass appeal comes from firms with strong working relationships with a range of buyers in a number of markets -- e.g., oil & gas, healthcare, government -- embracing a small vendor's offering and introducing it to their clients.
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Is Disposing Of, Reselling, Or Recycling End-Of-Life IT Equipment Really Strategic To You?

Doug Washburn

Yesterday, I participated in one of the regular content planning sessions for us analysts on Forrester’s IT Infrastructure & Operation’s Research team. Similar to investment managers and their portfolio of stocks or bonds, we spent time making buy/hold/sell decisions on what we will research more, continue to research, or stop researching. Among the many criteria we use to make these decisions, like client readership, inquiries, or consulting, the strategic relevancy to IT is an important factor to consider. And there was some heated debate around research themes we may phase out down the road…

Enter the discussion on IT asset disposition – or the process of reselling, donating, or recycling end-of-life IT equipment. While every organization eventually has to dispose of its end-of-life IT equipment, it’s long been an afterthought. And the data backs this up. Forrester finds that 80% of organizations globally use their OEM, third parties or a combination of the two for IT asset disposition. But when asked how important IT asset disposition is relative to other IT asset management processes, it’s far and away the least important. As an indicator of this, I recently surveyed over 300 European IT professionals where 77% of respondents ranked IT asset disposition “less important” or “least important.”

This begs the question, is disposing of end-of-life IT equipment really strategic?

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Dell – Ready To Challenge HP And IBM For The High Ground?

Richard Fichera

Historically, the positioning of Dell versus its two major competitors for high-value enterprise business, particularly where it involved complex services and the ability to deliver deeply integrated infrastructure and management stacks, has been as sort of an also ran. Competitors looked at Dell as a price spoiler and a channel for standard storage and networking offerings from its partners, not as a potential threat to the high-ground of being able to deliver complex integrated infrastructure solutions.

This comforting image of Dell as being a glorified box pusher appears to be coming to an end. When my colleague Andrew Reichman recently wrote about Dell’s attempted acquisition of 3Par, it made me take another look at Dell’s recent pattern of investments and the series of announcements they have made around delivering integrated infrastructure with a message and solution offering that looks like it is aimed squarely at HP and IBM's Virtual Fabric.

Consider the overall pattern of investments:

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Go Long On Glue Manufacturers

John Kindervag

FLASH TRAFFIC: This just in!

The Washington Post is reporting a new wrinkle in cyberwarfare. In the article Defense official discloses cyberattack, the Post reports that “malicious code placed on the [flash] drive by a foreign intelligence agency uploaded itself onto a network run by the U.S. military's Central Command.” Perhaps SkyNet has become self-aware, as this malware appears to be able to “upload” itself onto a military network. We ARE nearing August 29th

Fascinating. Blame the flash drive. Expect the USB bashing to start again soon. SysAdmins all over will be buying up the world’s supply of epoxy and shoving those nasty USB ports full of that goop. Go long on glue manufacturers.

According to Deputy Defense Secretary William J. Lynn III, "It was a network administrator's worst fear: a rogue program operating silently, poised to deliver operational plans into the hands of an unknown adversary." This must be one awesome piece of code – sentient, silent, and “poised.”

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Sales Reps' Top Five Annoying Habits (Whether They're Selling Cars Or Software)

Duncan Jones

I’m in the process of buying a new car, and I’m trying to apply everything I’ve learned from my research into software negotiation towards getting a good deal. I’m noticing many of the irritating behaviors from the dealers’ sales staff that Forrester’s sourcing and vendor management clients encounter regularly from their software reps. Here is my list of the worst ones, but I’d love to hear other people’s suggestions:

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Telepresence Is Cheaper Than A Helicopter And Easier To Include In A Public Sector Budget

Jennifer Belissent, Ph.D.

Having temporarily relocated to Eastern France – far from Paris and closer to Switzerland and Italy – I recently had the pleasure of experiencing my closest Cisco TelePresence site in Rolle, Switzerland, on the north shore of Lake Geneva for a discussion with Paul Mountford, President of Cisco’s Emerging Markets Theatre.  Cisco’s Emerging Market’s strategy has focused on what they call “country transformation,” which revolves primarily around increasing the penetration of broadband.  For FY11, Cisco will shift the message from country-wide transformation to something that rings closer to home (literally and figurative) with talk of “life-changing” stories through “life-changing” networks.  While still a little lofty, the message resonates deeper than country transformation, which speaks primarily, if not exclusively, to high-level government officials.  More a topic for Davos than for a boardroom or a living room.

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What Technology Trends Will Impact Your Organization In The Next 3 Years?

Gene Leganza

Despite the lack of a sustained full-on recovery in the global economy, one gets the feeling that we're at the beginning of a period of tech expansion and growth, doesn't one? For many, 2011 budgeting planning is happening now, so it remains to be seen what your expansion and growth will be in the near term, but there's certainly no shortage of interesting new developments from technology vendors to whet your appetite.

While it's fun to look at emerging tech and imagine what impact it might have several years from now, it's a bit more pragmatic to focus on the technology trends that will be hitting the mainstream and making significant waves in the corporate world and in the public sector in the next few years. 

In Q4 of last year Forrester published The Top 15 Technology Trends EA Should Watch. The author, analyst Alex Cullen, spoke with a few dozen analysts for input and then applied strict criteria for inclusion of a particular tech trend in the doc: 1) significant business or IT impact in the next 3 years; 2) newness, with implications not only for new business capabilities but also for the organization's understanding of the technology and how to manage it; and 3) complexity, especially regarding cross-functional impact to the organization.

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Will Plug-In Hybrids Change The Data Center?

Richard Fichera

In a recent discussion with a group of infrastructure architects, power architecture, especially UPS engineering, was on the table as a topic. There was general agreement that UPS systems are a necessary evil, cumbersome and expensive beasts to put into a DC, and a lot of speculation on alternatives. There was general consensus that the goal was to develop a solution that would be more granular install and deploy and thus allow easier and ad-hoc decisions about which resources to protect, and agreement that battery technologies and current UPS architectures were not optimal for this kind of solution.

So what if someone were to suddenly expand battery technology R&D investment by a factor of maybe 100x of R&D and into battery technology,  expand high-capacity battery production by a giant factor, and drive prices down precipitously? That’s a tall order for today’s UPS industry, but it’s happening now courtesy of the auto industry and the anticipated wave of plug-in hybrid cars. While batteries for cars and batteries for computers certainly have their differences in terms of depth and frequency of charge/discharge cycles, packaging, lifespan, etc, there is little doubt that investments in dense and powerful automotive batteries and power management technology will bleed through into the data center. Throw in recent developments in high-charge capacitors (referred to in the media as “super capacitors”), which add the impedance match between the requirements for spike demands and a chemical battery’s dislike of sudden state changes, and you have all the foundational ingredients for major transformation in the way we think about supplying backup power to our data center components.

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Think You Know About All The Big US Government Regulations Coming Up? All 191 Of Them?

Chris McClean

There has been an interesting PR battle in Washington over the last few weeks about the number of massive regulations still on the administration's agenda. House Minority Leader John Boehner wrote a memo to President Obama citing a list of 191 proposed rules expected to have a more than $100 million impact on the economy (each!) and asking for clarification on the number of these pending rules that would surpass the $1 billion mark. The acting head of the Office of Management and Budget responded, saying that the number of "economically significant bills" passed last year actually represented a downward trend, and the current number on the agenda is more like 13.

For those of you wanting a little more clarification, you can search through the OMB's Unified Agenda and Regulatory Plan by economic significance, key terms, entities affected, and other criteria. Making sense of all of these proposed rules will take time, but it will help you get an idea of issues that your organization may have to face in the near future.

Coincidentally, my latest report, The Regulatory Intelligence Battlefield Heats Up, went live yesterday. In this paper, I offer an overview of different available resources to keep up with new and changing regulations as well as relevant legal guidance.

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IT Spending Rebound Will Mean More Spending On Sustainability Software And Services

Chris Mines

Forrester's latest forecast for the technology economy is bullish, which by extension means good news for providers of software and services focused on improving corporate sustainability.

In our new outlook for IT spending by businesses and governments, we estimate that the market will hit $1.58 trillion in 2010, up almost 8 percent from the depressed 2009 level, and grow by a further 8.4 percent to $1.71 trillion in 2011 (global purchases expressed in U.S. dollars). U.S. government data about the overall economy, and tech vendors' Q1-Q2 financial reports, buttress our expectation that IT spending will growth at more than double the rate of the overall economy in 2010-11 and even beyond. See the details in Andrew Bartels's latest report here.

We expect that some of the prime beneficiaries of this positive outlook for IT spending will be those services and software suppliers that are focused on helping clients improve their sustainability posture. In particular, we are very positive on the outlook for sustainability consulting, and for enterprise carbon and energy management (ECEM) software.

Our research team is working now on reports that will update our outlook and spending forecasts for these two exciting markets. As we work with clients in enterprise IT organizations, it's clear that the "green IT" of yesterday is becoming the "IT for green" of tomorrow; that is, IT organizations and infrastructure are increasingly being deployed to meet the corporatewide sustainability challenge, not just improving IT's own energy efficiency and CO2 footprint.

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