Cisco Extends Its Data And Analytics Capabilities At Its Annual Cisco Live Event

Gene Cao

At the Cisco Live Event 2014 in San Francisco last week, we heard about plenty of updates, extensions, and new acquisitions to expand the business. The major technologies highlighted were InterCloud, Application Centric Infrastructure (ACI), and the Internet of Everything (IoE). Among these new offerings, I reveal that Cisco’s extended big data and analytics capabilities excited me the most. Why? Because its data virtualization techniques can help customers easily analyze large volumes of virtual data, no matter where it physically resides; enhanced video analytics technology could improve the customer experience when checking out in retail stores or waiting for a train; while IoE analytics and digital intelligence increase customer engagement.

  • Data virtualization supports big data analytics. End user organizations realize the importance of quickly and carefully making decisions; to do this, they plan to centralize data from different branch offices or departments. Consolidating data that resides in multiple systems and in global locations — or that is locked away in spreadsheets — is expensive. For example, telecom operators in China have hundreds of millions subscribers and need to consolidate and analyze this customer data — but it resides in 31 provincial companies. Data consolidation will be a huge and expensive project, but data virtualization technology can help solve this problem. Customers could consider adding Cisco to their data virtualization vendor shortlist, especially given Cisco’s acquisition of Composite Software last July.
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Negotiating with Microsoft in June; do you take it to the wire or settle early?

Mark Bartrick

June is a such great month – the days are getting warmer, Wimbledon merges tennis with strawberries and cream, the kids are all pleasantly subdued while revising and sitting exams, the football World Cup is just around the corner, and (how could we possibly forget) it’s also Microsoft’s financial year end.

Many of you will already be in the throes of a negotiation with Microsoft for an Enterprise Agreement (EA) renewal. Or perhaps you are looking at the pros/cons of their Office 365 solution. If you’re planning to take the negotiation to the wire on June 30th in order to squeeze the very best deal at Microsoft’s year end, be aware that Microsoft would like you to dance to a different tune. They are pushing really hard to complete negotiations sooner rather than later. In fact, you might well have been told that Friday, June 20th is their deadline.

Microsoft will tell you that they need a few working days to get signed paperwork through their internal system in order to formally book the deal. While there is some truth in this, it’s also true that the Microsoft sales rep and their reseller doesn’t get commission until the deal has been booked and the revenue formally recognized – hence the pressure to get stuff signed by the 20th!

Whichever date you choose to conclude your negotiation, rest assured that the later it is in June then the more stressed your Microsoft rep will become.

Here are four tips to think about while you negotiate with Microsoft in June:

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Microsoft CEO Satya Nadella’s first earnings call – talks about courage, challenges and the future.

Mark Bartrick

It’s been an interesting few weeks for Microsoft. XP has gone off Support and left many clients exposed to security risks. At the same time, the US Government has just warned all users to avoid using Internet Explorer (IE) versions 6 to 11 as they say that there is a serious flaw that hackers are already apparently exploiting.

Against this backdrop, Satya Nadella, Microsoft’s newly minted CEO, joined Microsoft’s recent earnings call to talk about the ‘courage’ they will exhibit as they move forward. Let’s hope that courage includes supporting clients who find themselves in difficulty from product flaws.

Microsoft reported earnings were $6.97 billion on revenue of $20.4 billion; this is roughly flat with a year ago. But this third quarter fiscal 2014 earnings call might be more memorable for the fact that the company's CEO was on the call than for anything about the earnings report itself. Nadella spent an hour on the analyst call on April 24 talking Microsoft strategy and answering Wall Street analyst questions. That's something former CEO Steve Ballmer rarely did.

While Nadella didn't make any major announcements, he did drop a few hints that might tell us more about his plans and where Microsoft may be going.

"What you can expect of Microsoft is courage in the face of reality, we will approach our future with a challenger mind set," Nadella told analysts. Here are a few challenges that spring to my mind; cumbersome and sometimes conflicting contractual paperwork, product divisions working in isolation from each other, Google and IBM competing hard in the email/collaboration/cloud space, having to cut Azure prices to more closely align to Apple and Amazon, and a frustratingly slow start in the tablet space.

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Now Some IBM Customers Might Be Able To Take Advantage Of Cheaper Third-Party Software Support

Mark Bartrick

Chief information officers (CIOs) are dedicating more of their budgets to what we call “systems of engagement” (technologies that help win, serve, and retain customers) rather than “systems of record” (back-office technologies). According to research here at Forrester, new business investment in the former will be eight times that of the latter in 2014. All of which means CIOs are re-examining their back-office legacy spend to see what savings can be made to fund new front-office innovations.

But releasing back-office spend is not easy. For many companies, most of the ‘easy’ savings have already been achieved - so squeezing even more savings has become a tougher game. For example, you can only try to re-negotiate legacy support costs a few times before the vendors say ‘enough is enough’. While such comments may have discouraged negotiators in past, the advent of third party software support in the last five years has, for Oracle and SAP users at least, kicked the cost savings door back open and given fresh impetus to procurement people seeking to reduce software support costs.

I am sure that many of you have read some of my previous comments on the emergence of the third party software support market over the past number of years. Companies like Rimini Street, Spinnaker Support and Alui have saved some Oracle and SAP clients a lot of money. For companies who have moved to third party support, or who have simply used the threat of moving to third party support in order to drive the vendor’s costs lower, the savings they are enjoying have freed up cash to spend on new innovations and front-office client engaging stuff.

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Oracle's Q3 falls short of market expectations (again). So expect to get a call from your Oracle sales rep sometime soon.

Mark Bartrick

Oracle has missed revenue expectations for three quarters in a row now as its Q3 results fell short of market expectations. The company blamed currency fluctuations and the strength of the US dollar for this latest miss.

The company reported third quarter earnings of $2.6 billion on revenue of $9.3 billion. Wall Street expected to Oracle to report fiscal third quarter revenue of $9.36 billion.

To be fair, Oracle did deliver some good data points. For instance, hardware system product revenue for the third quarter was $725 million, up 8 percent from a year ago. Software license and support revenue was up 5 percent to $4.6 billion and new software licenses and cloud subscriptions were up 4 percent from a year ago to $2.4 billion. Oracle says its outlook for the fourth quarter was solid. Safra Catz, Oracle co-president, said revenue growth in the fourth quarter will be between 3 percent and 7 percent.

Oracle won’t want to miss Quarterly earnings expectations again and will expect their sales teams to outperform in the next couple of months. All of which bodes well for an exciting run up to Oracle’s fiscal year end on May 31st.

Here are three quick tips to bear in mind as you prepare to negotiate with Oracle:

1.        If you have an Oracle contract up for negotiation this quarter, then you should leverage the pressure Oracle sales are under to hit market expectations by squeezing an extra point or two of discount in return for a signed contract.

2.        If you have a support renewal coming up, remember you have a choice now and third parties like Rimini Street, Spinnaker Support and Alui can give you real leverage at the negotiating table.

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Analytics Helps Retailers Improve Customer Retention

Gene Cao

IBM recently kicked off its big data market planning for 2014 and released a white paper that discusses how analytics create new business value for end user organizations. The major differences compared with last year’s event:

  • Organizational change. IBM has assigned a new big data practice leader for China, similar to what it’s done for other new technologies including mobile, social, and cloud. IBM can integrate resources from infrastructure (IBM STG), software (IBM SWG), and services (IBM GBS/GTS) teams, although the team members do not report directly to them.
  • A new analytics platform powered by Watson technology. The Watson Foundation platform has three new functions. It can be deployed on SoftLayer; it extends IBM’s big data analysis capabilities to social, mobile, and cloud; and it offers enterprises the power and ease of use of Watson analysis.
  • Measurable benefits from customer insights analysis. Chinese organizations have started to buy into the value of analytics and would like to invest in technology tools to optimize customer insights. AmorePacific, a Hong Kong-based skin care and cosmetics company, is using IBM’s SPSS predictive analytics solution to craft tailored messages to its customers and has improved its response rate by more than 30%. It primarily analyzes point-of-sale data, demographic information from its loyalty program, and market data such as property values in the neighborhoods where customers live.
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Strategies For Negotiating With In The Wake Of Its Growing Product Set And New Editions

Liz Herbert

Despite an increasingly crowded market of cloud applications, is still very much the “darling” of the SaaS world. Some evidence of the provider’s continued fast-paced growth?

1)      Strong stock market performance. On June 12, 2013, when announced the completion of its acquisition of ExactTarget, stock (CRM) was trading at $37.58. On February 19, 2014, it closed at just over $63, a gain of 67.7% over that period (for reference the NASDAQ Composite did roughly 25% over the same period).

2)      External accolades for its ability to innovate. In August, was names by Forbes as the world’s most innovative company for the third year running.

3)      Steady flow of new products and editions. In November, announced its new Salesforce1 Service Cloud – a platform to be used for cloud-based application development. This product represents a significant improvement in the mobile experience which will ideally aid them in meeting their aggressive financial predictions. Not long before that, had announced, in April 2013.

4)      Revenue growth.’s recent fiscal results (Q3 2013) conservatively project revenue growth of more than $1 billion for both this year and next ($4.05 billion for FY 2014 and $5.15 billion for FY 2015, compared to $3.05 billion in FY 2103).

So, it is no surprise then (in light of’s massive scale and continued expansion) that we continue to receive a heavy volume of Inquiries into Forrester about how to negotiate with

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Microsoft Licensing Update: Product Retirements Imminent – You Need To Upgrade Or Run The Risk Of Using Un-Supported Software.

Mark Bartrick

Microsoft retires support for various older products in 2014 and 2015. This means there will be no more free updates or security patches. While it’s a common occurrence to see support for older products retired by software vendors, it’s annoying if either the old stuff is still running perfectly well or if the upgrade option is financially onerous, will significantly disrupt the business or offers little in the way of real added benefit.

So in April we’ll be finally bidding farewell to support for the likes of Windows XP, Office 2003, Exchange Server 2003, and in July 2015 we’ll say adieu to support for Windows Server 2003. In addition, some more recent products will be transitioning to extended support in July 2014 - namely SQL Server 2008 and SQL Server 2008 R2 – which puts them next on the path to software heaven.

Windows XP

On April 8, 2014, Windows XP will reach the end of its support lifecycle and Microsoft will no longer provide security or online updates.

Office 2003

As a part of the Microsoft Support Lifecycle Policy, Office 2003 products receive five years of Mainstream Support and five years of Extended Support. April 8, 2014 marks the end of this 10-year support period. Running Office 2003 after the end-of-support date may expose your company to security risks and technology limitations. 

Exchange Server 2003 
While Exchange Server 2003 was a leader in the messaging space, after 10 years of technology progression it will reach End of Support effective April 8, 2014.

Windows Server 2003 

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IBM SaaS: Heavy On Choice – But Light On “Plug and Play”

Liz Herbert
IBM is making a big push into the SaaS space – boasting 100+ SaaS offerings and $1 billion plus in targeted investments. The good news for buyers is that the strategy is broad, flexible, and open. But, the downside is that the current landscape is fragmented and inconsistent across its different offerings; buyers do not today have a simple “cloud store” where they can go and download all of these different solutions with instant provisioning and pre-built integration. So, what should buyers expect?
What you will get:
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The Recent Ruling In Oracle vs Rimini Street Has Significant Implications For The Wider Outsourcing Industry

Duncan Jones

I've just published a Quick Take report that explains why the Nevada District Court’s recent decision on some of the issues in the four-year-old Oracle versus Rimini Street case has significant implications for sourcing professionals — and, indeed, the entire technology services industry — beyond its impact on the growing third-party support (3SP) market.

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