As part of my research around the IT management software market, I spent some days with CA the other week and met several of their customers as well. One of the topics we discussed was the mainframe. There is clearly resurgence in interest in using the mainframe in many enterprises. IBM’s System z mainframe family is mentioned often by our clients as a strong consolidation platform to capitalize on the trend to do more with less: the zSeries not only runs legacy apps, but it is capable of consolidation hundreds of commodity servers under Linux. However, enterprises are cautious about using their mainframes because of shortage of mainframe management resources: not software but people.
Our latest featured podcast is Rob Karel's "Revisiting Product Information Management"
In this podcast, principal analyst Rob Karel outlines the key themes from his recent product information management (PIM) research. He starts by talking about the buy- and sell- side procuct data environments, and outlines a value proposition for managing this product data. He ends by reviewing the capabilities that clients should look for in a PIM application.
We look forward to your questions and comments.
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Building on the 2008 acquisition of Axon, HCL Technologies announced Thursday a strategic partnership with UCS Group, and a deal of up to USD 18.5 million to take over its SAP practice. The acquisition adds to HCL AXON's strength in implementation areas related to SAP and process consulting in the retail and wholesale industry. HCL AXON presently boasts process consulting expertise in industries including public sector, aerospace & defense, oil & gas, and transportation.
This acquisition also expands HCL Axon’s global footprint. While the acquisition of UK-based Axon boosted its European market presence, HCL AXON's business is predominantly in North America and Asia Pacific. UCS Group will give HCL AXON a strong presence in South Africa.
Look out for Forrester's latest SAP Implementation Providers Wave, which evaluates 19 vendors across 60+ criteria including vertical expertise, global presence, and ability to provide best-in-class services for all portions of an implementation and each of the service areas. The Wave is set to publish in August.
As part of my research around the IT management software market, I spent some days with CA last week and met several of their customers as well. One of the customers is a large financial service institute – their name is not relevant to the point of this blog so I will not name them (I would have to ask their permission first).
What particularly interested me was this customer’s definition of a partnership with their suppliers. They are pursuing a strategic sourcing strategy for their IT management software and wish to restrict their interactions to a select shortlist of vendors whom they wish to consider as "vendor partners". They have three simple requirements of a vendor who wishes to be in this list.
In a recent study of SAP Implementation providers, Forrester surveyed 154 SAP Implementation client references. The results? Clients were most satisfied with the transparency of cost and pricing models as well as the technical knowledge of providers and least satisfied with the provider’s methodology for measuring business benefits, end user and IT Training, skill transfer capability and change management.
In another recent study including 139 Oracle client references, the satisfaction ratings were strikingly similar. That’s not surprising as companies report that service provider’s continue to grapple with the same age old set of challenges, regardless of the platform being implemented.
The latest services spend data from Forrester’s Q2 2009 Enterprise IT Services Survey is in, and it isn’t pretty. When 710 IT services decision-makers were asked how current economic conditions will affect their IT services spending over the next 12 months, 56% stated they expect a decrease of at least 5%. Conversely, only 14% expect an increase of at least 5%. The remaining 30% expect spending to remain more or less the same.
Let’s take the 56% that expect at least a 5% decrease in IT services spend. When we asked these 399 people what their firm’s top IT priorities would be over the next 12 months, one priority (out of the 12 we gave them) overwhelmed the rest — renegotiate rates with current players. Eighty-three percent — yes, 83% — rated this either a high or critical priority. Only 3% said it wasn’t on their agenda. To compare, none of the other 11 priorities, which included things like moving to a fixed-price pricing model, implementing or expanding the use of offshore resources, and taking a more consolidated, single vendor approach, cracked 50% in terms of being viewed as a high or critical priority.
deeper into enterprise PaaS, Salesforce went live in June with Force.com Free
Edition, offering free access to the platform for up to 100 users, and Force.com
Sites, allowing customers to build their own branded public-facing Web sites
that integrate with CRM and other apps on Force.com.
are hosted on Salesforce’s infrastructure, users obtain the common benefits of
cloud IT services — faster roll outs, as well as passing capital and operations
costs (configuration, management, reliability, and scalability) to the vendor.
However, I believe Software AG is missing still a huge potential combing the legacy of the mainframe application platform and the integration and BPM centric new world of webMethods. Actually, we had a very controversial debate among the leading Forrester analysts, if it would make sense for them to become a full application development platform. Software AG and Progress Software have both a similar heritage. They have both mainframe based full application development stacks and some new, but independent integration technology. Demographics tell us that the average CIO who still perceives these companies as application stacks will retire soon. At the same time more and more applications will be delivered in the SaaS style and the corresponding platform market (PaaS) will grow up to $ 15 billion annual revenue by 2016.
Software AG has to evaluate one of the following opportunities to retain market share in the market evolution driven by cloud computing and an ongoing market consolidation of integration and application platforms to merged business process platforms:
Our latest featured podcast is Tim Walters's "The Rise Of The Machine (Translations)."
There has been a recent increase in the use of computers to translate information from one human language to another. In this podcast, senior analyst Tim Walters discusses the reasons for this boom in machine translation, how the two main types of machine translation work, and the business use cases for it.
We look forward to your questions and comments.
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