This week GE met with customers and partners for the fourth annual Minds + Machines conference. In his keynote, available for replay online, CEO Jeff Immelt said that Industrial Internet value is nothing fancy — it’s doing substantive things that customers appreciate: no unplanned downtime, asset optimizations, and enterprise optimization.
GE focused much of the discussion on its Predix cloud-based platform, saying it is core to GE’s business, and essential for melding physical and digital assets. GE reasserted what it said in August — that Cloud computing is an enabler for innovation in industry, now enabling its key customer segments – aviation, energy, healthcare and transportation – to improve their use of data, increase timeliness of analysis, and improve their asset performance (1618RA, GE Drives into Cloud Services Market with the Roar of its Predix Engine, 6Aug2015). GE also announced a bevy of new features and partnerships and said its software business has revenues of $6 billion today and will grow to $10 billion by 2020.
Both Immelt and GE Chief Digital Officer Bill Ruh portrayed the Industrial Internet as more important than the consumer Internet of Things (IoT). Ruh quipped that GE provides the “Internet of Really Important Things” and the Industrial Internet could become twice the size of the consumer IoT. Perhaps this is posturing. While we agree on the importance of the Industrial Internet, (1575STR, IoT Platforms: Where’s the Apps?, 8May2015), we also Continue reading GE’s Minds + Machines Focuses on Industrial Change for Survival
It’s unlikely that any type of enterprise IT vendor will be more important than IT services providers to the changing face of business IT, and to the digital-first reshaping of global business.
The big question is, will the leaders be today’s most influential providers, transitioned to the new realities, or will it be another group or type of services providers built around today’s nascent, digital-business-first technologies and innovative business practices?
This week, Saugatuck CEO Bill McNee, Sales VP Al Vanek, and I participated in “Future Smart. Achieving Success in the Digital World,” the Sourcing Industry Conference (SIC) hosted in Dallas by Saugatuck parent Information Services Group (ISG) along with more than 170 sourcing industry providers from all markets. We spent time discussing enterprise business changes – especially the emergence of Cloud, mobility, analytics, and Digital Business – and their impacts on IT outsourcing of all types with longtime Saugatuck clients Accenture, Cognizant, IBM, and Wipro, along with representatives from Atos, Genpact, HCL, HP, Infosys, TCS, Xerox and too many others to list here.
Ongoing clients of Saugatuck’s CRS subscription research service will see more in-depth insights from these conversations over the coming weeks. The net for this blog post is this: The business IT world is, right now, changing faster and creating more new types of opportunity for IT services providers than we have ever seen previously. But at Continue reading ISG SIC 2015 – The New, Scary, IT Services Reality
What is Happening?
Earlier this week, Saugatuck attended Workday Rising 2015 at the Mandelay Bay in Las Vegas. Compared to last year, the event has grown dramatically – from approximately 3500 attendees last year to over 5500 this year, including more than 3000 customers, 400+ prospects, and nearly 1,000 partners (according to Workday). This reflects that fact that not only is the business and customer base growing rapidly, but so is their partner ecosystem.
The core of the event showcased the growth in their product on many fronts, with improvements and new capabilities added across their existing products and platform. Additionally, Workday seems committed to taking on not just HCM and Finance, but also vertically-focused applications that play to their strengths. It is clear that they are moving toward more and more ERP functionality, starting with the industries least served by current options, or industries where the Cloud is of particular benefit.
Overall, we took away seven major points from this year’s event:
- Workday Planning – Though Workday already has strong relationships with Tidemark, Anaplan, and Adaptive Insights (including direct investments in Tidemark and Anaplan), they are now working on a planning application inside their core application environment, that is deeply integrated within their HCM and Finance solution sets.
The new planning capabilities take advantage of their acquisition of Gridcraft to deliver a planning application inside of the familiar spreadsheet interface, which borrows heavily from the look of Google Sheets or Excel. While this planning application is a nascent feature for Workday we expect this to become a core area for them, as it will likely benefit in the future from Workday’s expertise in machine learning and predictive analytics.
In the future, we expect Workday’s planning capabilities will be bolstered by Insight Applications. While there was little mention of new Insight Applications this year the concept is not one that Workday has abandoned, but instead one that has necessarily been slowed as they worked on performance improvements in the platform to enable these capabilities. However, the launch of the Planning application does raise some questions for the future. This is an area where Workday has build many strong partnerships, and we are uncertain how Workday plans to chart the balance between developing new capabilities, and competing with existing partners.
Continue reading Seven Key Takeaways from Workday Rising
Saugatuck’s ongoing research in the adoption and use of Cloud-based business management software includes regular assessment of what enterprise IT and business leaders, along with planners and buyers, consider to be their top concerns regarding Cloud-based business software. And our analysis of that research indicates that Cloud-based business software is already considered to be strategic to the enterprise.
We can see three basic tiers in the data as shown in Figure 1: Security/Privacy, which will (almost) always be top-ranked in all cases; Integration, which is increasingly challenging given the broadening mix of solutions, device types, data formats, user interfaces, and compliance requirements; and “the rest,” e.g., provider lock-in, performance-related issues, customizability/configurability, and so on.
Figure 1: Ranking Top Cloud Software Concerns, 2004 – 2014
|Enterprise Leadership Concerns Regarding Cloud-based Business Software
||Typical % of Leaders Selecting as a Top 3 Concern
|Data security and privacy
||75% – 85%
|Integration with existing systems and software
||60% – 65%
||35% – 40%
||30% – 35%
||25% – 30%
Source: Saugatuck Technology, an ISG business; annual global surveys, 2004 – 2014
Continue reading Managing Enterprise Customer Concerns
The promise of the IoT is improved service interactions between business and their customers, and between governments and their citizens. Realizing these promises relies on collecting, managing, and analyzing data. But the IoT generates data streams in unprecedented volumes, frequency, and variety. These data streams can choke the networks, applications, and target systems. The data goes into data management systems that are in many cases unable to process adequately.
With existing systems often unable to support IoT demands, enterprises assume they must add new infrastructure. IoT deployments require infrastructure expansion: new devices and applications are the norm. But the IoT data streams define the scale.
Just because we can collect data from connected objects frequently, should we? It’s not a secret that most IoT data remain underused, misused, and unused. Data misuse means added deployment costs and project time. Adequate and appropriate data planning is critical to attractive ROI of IoT deployment.
Instead of assuming the need to collect as much data as possible and then filter it later, more attention should go into planning the data lifecycle. Users, developers, and providers of IoT-related offerings need to consider the potential costs of careless data collection. Planning questions should start with the application requirements. Continue reading Data Insanity Will Slow the IoT
What is Happening?
On 15 September, Accenture announced it had entered into an agreement to acquire Cloud Sherpas, a cloud advisory and technology services firm that had specialized services related to Google, Salesforce and ServiceNow. According to the press, the 1,100+ professionals acquired from Cloud Sherpas will join a newly created Accenture Cloud First Applications team. Accenture hopes that the acquisition will strengthen Accenture as an enterprise cloud services provider and enhance its ability to provide cloud strategy, technology consulting, and cloud application implementation, integration and management services.
Saugatuck views Accenture’s acquisition of Cloud Sherpas as being another indicator that the importance of Managed Services is increasing as enterprises transition to various forms of Cloud-based infrastructure. This Research Alert focuses on the increasing importance of Managed Services and offers some factors to consider during evaluation and selection of Managed Services.
Why is it Happening?
In early April Saugatuck published the findings from its 2015 Cloud Infrastructure Survey. The survey results clearly show that:
- IT infrastructures are transitioning rapidly from traditional On-premises resources to alternatives that include various forms of Cloud-based resources;
- The infrastructure transition results from and enables both the migration of conventional application workloads to the Cloud, and the deployment of new application workloads designed for Cloud; and
- Enterprise executives are focusing on increasing the value of their IT organizations.
These are a few of the findings from our global web survey of 327 IT execs spanning major geos and business sizes. (For more information about the survey, go to Saugatuck’s 73-page Strategic Report 2015 Infrastructure Survey: Next-gen IT – Cloud on the March, 1553SSR, 01Apr2015). Continue reading Managed Services: The Cloud Catalyst
At least half of the expected real economic value of the IoT will come from interoperability – connecting devices to each other and external systems. But interoperability in the IoT is costly and complex. Standards efforts are nascent and confusing. The pace of innovations is outrunning the ability to connect the devices.
Plus, the IoT is perhaps the most hyped technology trend in the last decade. Its promise touches almost every aspect of human existence. From smart factories to smart cities, connected devices are changing the way enterprises and governments operate and provide services. But something stands in the way of the IoT reaching its full potential: reality. The reality is a web of poorly connected sensors feeding data streams in unprecedented volumes and variety into systems that are unable to process adequately.
While it is easy to blame the providers, success in IoT interoperability goes beyond the IT Master Brands working together. The age-old position that competitive advantage comes from proprietary technologies is passé. Instead, the winners will be providers who flexibly support needed enterprise transactions required by business constituents. And successful enterprises will engage those providers and tackle interoperability head-on to address business requirements. Collaborative pilot projects are cropping up to show how the IoT can address specific applications. Continue reading Poor Interoperability Will Slow the IoT
The benefits resulting from adoption of mobile, social, analytics, and the Internet of Things (IoT), ranging from new revenues to improved customer satisfaction, are enticing. And, the potential exposures for enterprises that do not make a transition to digital business are sobering. As a result, the question for a rapidly increasing number of enterprises is no longer: “if” to transform to a digital business? Rather, the question has become: “how” to transform? A just-published Strategic Perspective provides guidance to IT executives on planning and executing their enterprises’ transition to digital business. Specifically, our ongoing research has identified the following basic guidelines:
- Identify goals and objectives. Goals and objectives should encompass your company’s goals and potential exposures in its business model, customer support processes, product/service delivery processes, value proposition, etc.
- Develop a realistic and detailed plan. Realistically consider available skills, manpower and budget limitations.
- Assess the Propensity for Change. Perform a candid assessment of the challenge associated with accepting and implementing change.
And, we suggest a four-step process for the transition to digital business: Continue reading Paving the Bumpy Road to Digital Business
As we wrap up one week of travel and client work and head to the next, we’d like to offer up our first-take thoughts on Salesforce’s just-concluded Dreamforce event in San Francisco. Two things stand out for now:
Microsoft. Salesforce made it abundantly clear not only that it is partnered with Microsoft, and that the partnership is core to Salesforce’s future. By one count, Salesforce CEO Marc Benioff mentioned “Microsoft” more than 20 times in his keynote. More concretely, Microsoft CEO Satya Nadella used the event to unveil the new integration of its Cortana Analytics Suite into Salesforce, highlighting Cortana’s natural-language voice search, predictive analytics, and associated Salesforce / SalesCloud app-friendly dashboards. Microsoft and Salesforce leaders also talked up a deeper partnership that is meant to lead to integrations of a bevy of MSFT business apps, including Skype for Business, OneNote, and the Office Delve and Office Graph offerings with Salesforce’s Cloud platforms and associated apps.
Obviously, talk is cheaper than action, especially when it comes to strategic vendor partnerships. Driving meaningful revenue is the only real yardstick. But given how these two firms still compete head-to-head in CRM and related business management software markets, the talk more than likely signifies an expanded / expanding relationship that frankly, is likely to benefit Salesforce more than Microsoft. Both firms are strong in mid-sized and smaller firms, and Microsoft should benefit in both through the Salesforce connection. But Microsoft can be one powerful key that helps unlock more large-enterprise doors for Salesforce.
Data and Things. Salesforce announced the release of its new “IoT Cloud,” which is being positioned as a platform and set of capabilities linking and enabling access to data from most types of Internet-connected devices. Data from social media services, Continue reading First Take: Dreamforce and the Continuous Change of Business IT
Earlier this week I traveled to Lucca, Italy, to participate along with nearly a thousand other clients, partners and colleagues in Tagetik’s annual In Touch Partner Summit and Conference. This included moderating a panel of channel partner executives on Wednesday September 16th, and delivering an afternoon featured presentation entitled “Navigating the Cloud: What’s Driving Adoption?” on Thursday September 17th.
Long known as a provider of unified BI / corporate performance management software, Tagetik offers a robust suite that addresses a range of customer needs, including planning, budgeting and consolidations. I enjoyed meeting one-on-one with more than a dozen customers at the conference, and it quickly became clear that the solution set is especially relevant to upper-mid and large enterprise customers who emphasized Tagetik’s ability to address their complex, global requirements to me.
On Thursday, I also had a chance to sit down with Manuel Vellutini, Tagetik’s Co-CEO, and Dave Kasabian, the firm’s CMO, about their priorities for 2016 and beyond. Three key themes came through: Continue reading On The Road At Tagetik In Touch