Blog Content: Last month, we revisited and fleshed out the Saugatuck Boundary-free Enterprise™ business model by examining the four critical types of “boundaries” that formerly limited business (and IT) abilities, and which are being erased, realigned, or otherwise shifted: Technological, Functional, Organizational, and Cultural.
As we began saying almost a decade ago, “Cloud changes everything,” and its biggest change is in how, when, where, and why enterprises do business. Because we are increasingly likely to rely on new and different types of technologies and providers to do business, our relationships with IT providers will need to be re-examined and rebuilt. This will only expand and accelerate as more types and sizes of firms add, or migrate to, more types of Digital Business. Continue reading
As part of Saugatuck’s ongoing “Finance in the Cloud” Series, Mike West and Bill McNee recently conferenced with executives from FinancialForce.com to learn more about the FinancialForce Cloud ERP / Finance solutions, their market reception, future plans for enhancement and how FinancialForce views “Finance in the Cloud.”
Launched in 2009 as a joint venture between UNIT4, a Dutch enterprise software company, and salesforce.com, FinancialForce was founded to enable real-time financial management built on salesforce.com’s technology platform, Force.com. The following year FinancialForce added Professional Services Automation, based on a solution acquired from Appirio. Thirteen months ago, FinancialForce made two more key acquisitions, Less Software (supply chain management) and Vana Workforce (human capital management). In early 2014, it announced its FinancialForce ERP – further repositioning itself as a unified back-office suite provider.
It has been quite a journey for FinancialForce. According to the Unit4 annual report total revenue grew 85% last year, “with the annual run rate in December 2013 (including services) reaching $30.6 million.” With continued strong growth in 2014, Saugatuck Continue reading
Epicor – Making Clouds in Manufacturing ERP / Finance
As part of Saugatuck’s ongoing “Finance in the Cloud” Series, Mike West and Bill McNee recently conferenced with executives from Epicor to learn more about the Epicor Cloud Manufacturing ERP / Finance solutions, their market reception, future plans for enhancement and how Epicor views “Finance in the Cloud.”
Founded in 1972, Epicor recently went through a significant re-architecting of their mid-market core offerings that provide customers significant choice in how they want to deploy their solutions – whether ERP, Retail or HCM (among others) – in the Cloud, on-premises or in some hybrid configuration. Few legacy providers have successfully invested in creating a common code base that can be deployed across multiple platforms. No doubt, the ability to transition a customer from on-premises to the Cloud (or the reverse) is a great selling benefit.
Prior to the call we had assumed that Epicor’s core manufacturing customer base would be more conservative in their adoption of its Cloud offerings; however, we were surprised to hear that demand is accelerating faster than we anticipated, with 15-20 percent of new ERP deal activity during 2014 Cloud-based.
Epicor’s Cloud Finance solutions are Continue reading
The on-demand Cloud model is beginning to displace traditional outsourcing. But outsourcing has developed over many years alongside industry, and it has had an important impact in shaping service customer expectations and supplier contractual obligations. Cloud services do not readily fit the mold. While simple or limited Cloud is seldom an issue, the widescale replacement of traditional in-house infrastructure is beginning to bring new concerns into focus. This is particularly important for the evolution of IaaS and PaaS.
Although Cloud is simpler in its agreements than its predecessors and envisions a utility-based model, it must still fit in with the auditing, technical integration, and governance needs of the firm. Traditional outsourcing models have tended to focus upon the Service Level Agreement (SLA) for contractually defining what is to be provided and how. However, the SLA has proven to be a thorny issue in the Cloud environment, particularly in public Cloud services. The issue has focused upon the definition of downtime, such as might be experienced when a Cloud provider goes offline for several hours—as has happened several times recently. What constitutes downtime, and what penalties (if any) should be paid to the client when this affects business? But this masks a range of related contractual concerns.
Cloud services need to be fitted into an organization to be used effectively. This means that they need to be integrated with other suppliers in the evolving multi-vendor environment. Management of vendors has centered upon the Vendor Management Office (VMO), which is increasingly being called upon to deal with services originating in the Cloud. But these services have different characteristics from their predecessors, different lifecycles, and different procedures for onboarding and releasing. Continue reading
As we close out every year, especially in periods of rapid and accelerating change, looking back to interesting and compelling events becomes a de rigueur part of blogging and analysis.
One of the more digital business interesting developments affecting enterprise CIOs in recent weeks was Twitter’s late October announcement of its “Fabric” software development platform for mobile apps. Fabric enables Twitter to create its own new digital business, while enabling enterprises and IT services providers to do the same. Since the announcement, I’ve researched it in more detail, spoken with a handful of experienced developers, and played a bit with the thing myself.
Here’s a year-end update on what Fabric is, how it can enable and challenge enterprise Marketing and other aspects of Digital Business, and how it in turn changes and challenges the role(s) of the enterprise CIO.
Fabric is a free extension with three SDKs that can be added to existing iOS and Android development environments. It enables very simple and straightforward, with drop-down menus for adding Twitter functions, analytics, and ads to applications. Developers select Continue reading
As part of Saugatuck’s ongoing “Finance in the Cloud” Series, Mike West and Bill McNee recently conferenced with executives from Tidemark to learn more about the Tidemark solutions, their market reception, future plans for enhancement and how Tidemark views “Finance in the Cloud.”
Formerly known as Proferi, Tidemark is a privately-held firm founded in 2010 that provides Cloud-based analytics solutions built for a mobile device-enabled platform. Tidemark has grown rapidly, and now has nearly 200 employees and over 50 customers.
Tidemark’s differentiation in the financial planning and analysis (FP&A) space, which has many competing providers, is a process-focused elastic grid platform that enables a high ease-of-use user experience designed to move financial analysis beyond the CFO suite. Tidemark targets the emerging urgency – not just in the CFO suite, but across the lines of business – for real-time analysis of multi-dimensional, complex Continue reading
What is Happening?
Recent vendor announcements not only highlight accelerated growth of the Internet of Things (IoT), but also highlight the increasing potential for market confusion, the need for consensus standards, and resulting the value of provider ecosystems.
This week, Intel Corp. announced its “Intel® IoT Platform” and partnerships for deploying and managing the Internet of Things – with Intel focusing on connectivity and security, while partners will focus on mass deployment services. Wind River Edge Management System provides cloud connectivity for device configuration, file transfers, data capture, and rules-based data analysis / response. Improved connectivity is touted via Intel IoT Gateway integration as well as expanded cloud analytics support for IoT Developer Kits. Security will be delivered by Intel Security, which includes McAfee Enhanced Security for Intel IoT Gateways as well as Enhanced Privacy Identity (EPID) technology. API connectivity will be delivered via the Intel Mashery API management tools.
A few weeks ago, SAP said it is teaming with Samsung to integrate Samsung’s wearable devices and mobile devices to create industry-specific enterprise applications. The vendors expect to leverage joint cloud solutions based on the SAP HANA® Cloud Platform mobile services. Specifically, the partnership targets the retail industry by integrating mobile payments as well as helping analyze shopping experiences. SAP has also enhanced its Manufacturing Execution Suite to take advantage of the expanding IoT. SAP says it is adding 500 new developers dedicated to IoT projects.
Meanwhile, on the home front, last week Cisco established an international joint venture with Bosch and ABB to develop and operate an “open software platform” for home devices and applications, and GE has continued to build out – and profit from – its “Industrial Internet” IoT initiatives aimed at commercial and industrial machine and sensor interconnectivity, management, and data analysis. Continue reading
We at Saugatuck are frequently privileged to partake in update briefings with a wide range of IT providers, both established Master Brands and emergent, potentially disruptive upstarts. These briefings are helpful in not only catching up with planned product updates, key customer wins, new offering availabilities, and so on, but also in developing and refining providers’ overall visions of current and expected IT market – and how they will or are pursuing those markets.
Recent briefings with the largest and most established IT providers – the Master Brands of the world – have spurred some internal thinking about their positioning as they continue to transition from traditional markets to more and more types of Cloud-catalyzed, digital-business-first demand and situations. The bottom line is that, while they are all making substantial progress in their own transitions, and in rethinking/re-inventing themselves, the traditional IT Master Brands still have some way to go in their own understanding of how markets and buyer/user demands are shifting. They still don’t see the holistic, digital enterprise picture.
One graphic used in a recent Master Brand briefing really spotlighted this continuing lag/gap in understanding. I’ve reproduced the graphic below – this is a close approximation, with everything in the right place but with non-original colors and typeface. Continue reading
Developing Cloud and Mobile solutions to drive a Digital Business strategy requires an approach to architecture that is services-oriented and layered into multiple tiers on both the client and the Cloud. Correctly done, this approach to architecting for Digital Business will deliver two competitive advantages, greater reach and improved flexibility, which can overcome advantages of scale and position held by established competitors in the industry.
Multi-device development means multiple layers of client functionality, shifting computing to intelligent clients capable of complex local processing and data storage for significant advantage. With this thick-client development model, shipping large amounts of data back and forth between the client and the Cloud is no longer necessary, becausethe client can process (CRUD), sort and present data that it retains and stores. Local data, either in persistent stores or in memory, can be searched and sorted, filtered, and reported/displayed without additional communication required to the Cloud or a local server.
A multi-device architecture and development model makes it possible for a Cloud provider to address the needs of a wide range of potential customers, using PCs or Macs, tablets, phablets, smartphones and purposed devices, e.g., tools or IoT devices (See Figure 1 – The Multi-Device API Cloud). Continue reading
What is Happening?
In October IBM announced surprising and disappointing revenue and profit for 3Q2014. The stock market reacted, and many trade and financial publications and pundits were quick to criticize IBM as being slow to capitalize on Cloud computing and the resulting spending shifts in both software and infrastructure. Thus, it was rather predictable that IBM has recently announced several billion-dollar-deals with very large customers (e.g., “IBM Signs Multi-Billion Dollar Cloud Computing Deal with a Dutch Bank.“).
However, some press and industry pundits were quick to express that these deals are merely further indication how IBM is not winning in the new Cloud-oriented market. Saugatuck sees things a little differently, and interprets recent IBM media and press activity as representative of how IBM and other traditional vendors are evolving with the market, and how the key to significant deals is expertise in helping large customers innovate and transform their businesses. Continue reading