Tag Archives: Mobile

Apple Pay Rolls Out, MCX stonewalls, and PayPal Cringes

The recent rollout of Apple Pay has precipitated some behind-the-scenes machinations among competing efforts in the marketplace, most notably MCX (see 1438MKT, Digital Business Models and Monetization, Part 2 – Mobile Payments, 12 September 2014, for background information).

While Apple has negotiated partnerships for Apple Pay with credit and debit card companies (American Express, MasterCard, and Visa) and with several leading US banks (American Express, Bank of America, Capital One, Chase, Citi, Wells Fargo), the MCX consortium steers clear of the credit and debit card companies and NFC and goes direct to customer bank accounts and loyalty programs, using bar codes and QR readers for its CurrentC platform.

So while Apple has 800 million customer credit/debit cards already on iTunes, and signing up for Apple Pay is simple and painless, Apple Pay’s success still depends Continue reading

Amazon Enters Mobile Payments with a Sharp Knife

By now everybody knows that Amazon has launched Local Register, a direct competitor to Square and PayPal Here at much lower rates. Instead of flooding the market with free readers that nobody uses, Amazon asks business users to pay $10 up front, which eventually will be refunded through use, as Amazon will offset the first $10 of processing fees. How much lower are the processing fees? Dramatically (See Figure 1 – How Does Amazon Compare?). 1420LENS-graphic

The rate for Local Register is a full percentage point below Square, although it is necessary to sign up by October 31, 2014 to lock in the special rate through December 31, 2015. The rate will go up to 2.5% beginning January 1, 2016. Rates apply to all major credit and debit cards. And there are no additional fees for chargebacks or refunds.

Amazon claims that Local Register is compatible with Apple devices running iOS 7.0 and above and has been fully tested on the Galaxy S3, S4, S5, and Fire tablets. It may work on other Android devices, but it has not been fully tested. Apparently, Local Register does not work with the Amazon Fire smartphone.

Mobile commerce is a fast growing segment in the Cloud. The synergy of mobility and Cloud is a natural source of innovation and the mobile commerce segment has Continue reading

Memo to Satya Nadella as Microsoft Shifts Its Core  

To:       Satya Nadella, CEO, MSFT
From:   Bruce Guptill, 30-year IT industry analyst
Re:       Your email of 11 July

Sir:

I have read through and discussed your “internal” email regarding Microsoft’s direction and emphasis with several colleagues and competitors, and I must say, “Bravo.” You are the first Microsoft CEO to effectively, publicly, shift the company’s core positioning and direction. That took vision, guts, planning, lots of internal politicking, and nerves of steel.

For me, the key bits were as follows:

  • “We will reinvent productivity for people who are swimming in a growing sea of devices, apps, data and social networks.”
  • “Across Microsoft, we will obsess over reinventing productivity and platforms.”
  • “We will relentlessly focus on and build great digital work and life experiences with specific focus on dual use. Our cloud OS infrastructure, device OS and first-party hardware will all build around this core focus and enable broad ecosystems. Microsoft will light up digital work and life experiences in the most personal, intelligent, open and empowering ways.”
  • “Developers and partners will thrive by creatively extending Microsoft experiences for every individual and business on the planet.”

In my view, you hit every important point in the right way, effectively blocked every obvious avenue to thwart change, and provided enough direction and emphasis to inspire and guide. Kudos to you and your Continue reading

Research Alert: The Money Cloud – Opportunities and Implications

What is Happening? 

Something is happening with money management, and it is likely to have wide ranging implications across both business and consumer behavior. Payments, discounts, invoices, purchases, and scheduling are coming together in new ways that bring great flexibility and efficiency to enterprises, and which take advantage of the interconnectedness of mobile devices to enable faster, more flexible processes.

While IT industry attention has been primarily interested in financial applications and how they are optimized and deployed, the simultaneous evolution of payments, currency, and discounting has gone almost unnoticed. Aided by the rapid evolution of the technologies at the core of the Boundary-free Enterprise™ new forms of commerce are emerging that will affect supply chains, price control and flexibility, and a company’s ability to attract customers. All ultimately defining the ability to do business in the current age. Continue reading

Research Alert: Cloud, Mobile, Social, Analytics – Greater Than the Sum of Its Parts

What is Happening? 

There is little doubt that the technologies and capabilities of Cloud, Mobility, Social IT and Advanced Analytics (CMSA) promise great value to user enterprises. Few enterprises of any type or size are not actively pursuing each.

And according to the latest research from Saugatuck, enterprise executives expect significant competitive value from each as well. In our Q1 global Cloud IT survey this year, we asked participants to “please indicate how important each of the following technologies are to your company’s competitiveness over the next 24 months.” Figure 1 aggregates the percentages of survey responses ranking each as “Very Important” or “Extremely Important” – rankings that have, over the years, been reliable indicators of imminent investment.

Figure 1: Ranking CMSA Competitive Value

Cloud Mobile Social and Analytics for Business Value

Source: Saugatuck Technology Inc., 1Q2013 global web survey; n = 218

CMSA is truly a simultaneously evolving set of services and capabilities, helping to change enterprise IT from a monolithic entity into sets of loosely-coupled, complementary services.

But as much value as each of these provides (or is expected to provide), even greater value is seen from combining them with each other, and with business management applications software and processes in key enterprise systems. Figure 2 summarizes our survey data regarding how business and IT leaders see combinations of Mobile, Social and Advanced Analytics with enterprise business systems as adding the greatest business value to the enterprise. The higher the percentage, the more survey participants see business value.

Figure 2: The Integrated Value of CMSA with Enterprise Business Systems

The Value of Mobile, Social, and Analytics on Business Apps

Source: Saugatuck Technology Inc., 1Q2013 global web survey; n = 218

Clearly, Cloud-based Mobile, Social, and Advanced Analytics are seen as relatively less beneficial to business when used individually (in most cases) than when used in combination with each other, and as part of enterprise business systems. In short, while Mobility, Social IT and Advanced Analytics each have intrinsic value, that value is typically multiplied with coordinated use.

Why is it Happening? 

With past IT architectures, single or serial evolutionary trends tended to define the evolution, and IT became more and more focused on (obsessed with?) tightly-integrated technologies and systems. This grew through the almost manic progression of 1990s-era distributed and client-server architectures, which brought increased scrutiny on IT costs, resulting in edicts to standardize and integrate, which in turn led to a renewed emphasis on tightly-coupled architectures and technologies.

What makes the combination of CMSA different is that buyers, users, and increasingly some IT leaders are starting to see the potential value and utility of systems, technologies, and business operations that are only loosely-coupled and not tightly integrated. Integration is readily available and reasonably affordable in the form of Cloud-delivered services that alleviate many requirements for tightly-coupled technologies and systems. Cloud Integration services also expand the choice for building out certain capabilities beyond the traditional vendors of complicated, pre-built solutions and heavy customization, toward building a functional alternative from a variety of better suited products from different vendors without the tight coupling at their core.

The high value of Analytics, both alone and when combined with other capabilities and systems, is easy to understand, as the ability to better analyze and then utilize business data has long been a goal of IT and business leaders. In short Analytics almost intrinsically adds value everywhere. Mobility enables greater reach and utility of most business systems; and Social IT enables improved collaboration, which in turn adds value by improving group and resource communication and coordination. And with Cloud, they can often be added, used, and removed as needed –an additional value from the inherent flexibility of loosely-coupled, Cloud-based services.

Finally, more CMSA offerings are being architected with multiple, often open, standards-based interfaces that enable them to work with a wider array of business systems and data. They are enabling Mobile, Social and Analytics capabilities that recently cost significant amounts of additional money when included with traditional software (and didn’t always work as well as needed or expected). Buyers have wanted some combinations of these capabilities for years; making them available cheaply via Cloud has accelerated and expanded their adoption and use.

Market Impact 

By YE 2017, the inclusion of Cloud-based Mobile, Social and Analytics capabilities will be considered de rigueur and required by the majority of IT buyers and users. SaaS and BPaaS provider understand this, and are scrambling to engineer, integrate or embed an increasing range of such capabilities with their offerings.

Most will utilize capabilities from such providers as Dell Boomi, IBM CastIron, Informatica, MuleSoft, Pentaho, etc. These and other Cloud-based integration-as-a-service platform providers (“iPaaS”) are already, rapidly, pursuing BPaaS, SaaS, and other PaaS providers to embed a wide range of integration capabilities into business process services and solutions. So we believe that the loosely-coupled advantages of CMSA will only continue to grow. There will be no shortage of established and upstart providers serving enterprises and Cloud-based business solution providers alike.

Large-scale business management solution providers (e.g., Microsoft, Oracle, SAP) will be pressured to add more data and workflow integration capabilities and APIs to their core Cloud platforms; their traditional preferences for in-house “standards” will decrease as more buyers and users come to accept, then expect, the loosely-coupled IT and business reality of the Boundary-free Enterprise™.

This loosely-coupled future also helps to bring clarity and certainty to the roles of traditional SIs and enterprise IT departments. The proliferation of services and providers will mean increased roles, and increased need for skills, as enterprise users force the growth of a variety of hybridized IT and business environments, utilizing a changing array of Cloud-based offerings that need to work with other Cloud-based and on-premises systems. There will be new, different, and more skills required, and roles will continue to adapt, but there will be no shortage of need for skilled and experienced IT professionals in a world replete with ever-changing, dynamically-utilized IT.

More detailed analysis of this and much more data from Saugatuck’s 2013 Cloud IT survey will be published for Saugatuck CRS clients beginning the last week of June, including a series of research analyses and data reports.

SAPPHIRE 2013: SAP is HANA, HANA is SAP, and the Enterprise Software Future is Not the Past

What is Happening? 

If it’s May, Saugatuck must be participating in SAP’s annual Sapphire user and partner event. And if we’re talking about SAP, we must be talking about what they said they would do, and what they have actually done.

Here’s what we said last May about SAP, Cloud, and the company’s business model:

In a few years, we could be looking back on Sapphire 2012 as a watershed moment, as the dominion of legacy business management software moves to the Cloud. If SAP is serious about Cloud, and we believe it truly is, then they can/should/will legitimize Cloud for business management software. I joked with several analysts, media members and SAP executives at the event that “OK, we can stop calling it ‘Cloud’ and start calling it ‘business IT’.” Continue reading

2012 Cloud Business Summit Video: Social-Mobile Featured Panel

On November 9, 2012, Saugatuck held its 2nd annual Cloud Business Summit at the Westin Times Square in New York City. As with our inaugural event, this year’s conference brought together large-enterprise CIOs, CTOs and senior business leaders to explore what is possible, what is real, and what is not in the Cloud today.

In this Featured panel, entitled “Mobility, Collaboration and Social Business – Key drivers of Business Innovation”, Saugatuck’s Mike West (VP and Distinguished Analyst) and Alex Bakker (Sr. Analyst) lead a discussion concerning the evolution of Collaboration, Social Nets and Mobility technologies, and how the enterprise needs to adapt to address them. Joining them on the panel are Gray Powell, Director Equity Research at Wells Fargo Securities, Alberto Yépez, Managing Director at Trident Capital, Kris Tuttle, Director of Research at Soundview Technology Group.

To learn more about the conference, go to www.cloudbusinesssummit.com, or email Chris MacGregor.

Best Practices Make Perfect: Managing Information in the BfE™

The Boundary-free Enterprise (BfE) enables delivery and use of information within business processes on demand, anyplace, anytime – but not without significant challenges to managing information for use in business decisions. Each of these seven important BfE trends (see Figure 1) presents a significant challenge with a requirement for managing information at its core.

Figure 1: Seven Trends and Challenges of Being Boundary-free
1171MKT Figure 1
Source: Saugatuck Technology Inc.

These 7 key trends set the stage for the urgency building around the need to manage information in a way that addresses the Boundary-free Enterprise.

While the Boundary-free Enterprise liberates data resources for more effective and leveraged uses, ensuring its potential value will require meeting several significant challenges of the realigned work organization, and meeting those challenges will be more successful with the use of these five proven best practices:

  1. Commit to (Cloud) Data Management
  2. Manage the Organizational Issues
  3. Partner with a Data Management Provider
  4. Manage Both Control and Access
  5. Approach Data Management as Value Creation

These five best practices lay a solid foundation for managing information in the Boundary-freeEnterprise .

Note: Ongoing Saugatuck subscription clients can access this premium research piece (1171STR) by clicking here, and inputting your ID and password.  Non-clients can purchase and download this premium research piece by clicking here.

Seven Trends: Information Management in the Boundary-free Enterprise™

Successful business decision-making has always been about having the right information available at the right time. Saugatuck’s model of the emergent, new master architecture for IT and business -The Boundary-free Enterprise™, or BfE– shows how the rapid evolution, adoption, and innovative use of several key technology types changes the way that game can be played, by introducing new options and requires new responsibilities, to deliver information on demand, anyplace anytime.

We’ve just published a Strategic Perspective that examines seven critical trends and challenges in realizing business value from this new “master architecture,” and discusses the related implications for data management. Figure 1 presents each trend with its matching challenge to enterprise business success.

Figure 1: Seven Trends and Challenges in the Boundary-free EnterpriseTM

BfE Trends The Challenge to Succeed
Knowledge Work as a Team Sport Moving beyond individual productivity
Loosely-Coupled Business Suites Link Up Moving beyond individual Cloud solutions
Taking Workflow Out of the Box Moving beyond organizational boundaries to communities of interest
BYOD and Mobile Information Moving beyond the galley-slave model and the vast sea of desktops
Data Gets Real(Time) Moving beyond structured transaction data and decision support
The Rise of the LOB Cloud Moving beyond the potted plant in the corner of the room
 The CIO’s New Clothes Moving beyond buying and managing assets

Source: Saugatuck Technology Inc.

Underlying every single challenge is the need for data management. The Boundary-free Enterprise™ liberates data resources to find more effective uses, yet — whether collaboration, integration, ad hoc workflows, mobile information, real time data streams, LOB innovation or IT resource re-allocation – achieving its potential does require meeting significant challenges, and meeting any of those challenges is a non-trivial feat.

Note: Ongoing Saugatuck subscription clients can access this premium research piece (1167STR) by clicking here, and inputting your ID and password. Non-clients can purchase and download this premium research piece by clicking here.

Surviving Mobility: More than Device Management

IT organizations are actively embracing the mobile computing devices born in the consumer market. While the challenges of managing the devices are significant, they are not overwhelming and multiple tools are available to automate processes ranging from on-boarding a new user, to erasing sensitive data from a misplaced or stolen device.

However, beyond managing the devices, IT organizations are finding – sometimes, the hard way – that managing the applications on the mobile devices is necessary to avoid security and availability exposures. IT shops are finding that welcoming an authorized user on an approved device with unknown software is similar to the Trojans unwittingly welcoming the Greeks by pulling the fabled horse inside the city walls. Details vary by enterprise, but IT organizations should consider the functions detailed in Figure 1, below, for managing mobile device applications and software.

Figure 1: Mobile Device Application Management Functions
1141MKT Figure 1
Source: Saugatuck Technology Inc.

 Note: Ongoing Saugatuck subscription clients can access this premium research piece (1141MKT) by clicking here, and inputting your ID and password.