Recently, global IT consultancy Avanade commissioned Kelton Research for a global study about cloud computing and the adoption of SaaS, and the findings were pretty remarkable. The prominent thread in the study was that SaaS is catching on, and at an unprecedented rate, but it is carving a niche more as a hybrid platform—usage with a legacy system—than as a freestanding one.
Not only are more companies adopting SaaS, more are considering adoption than they were even earlier this year. A similar study was conducted in January, and at the time 54% of participants said they would not consider cloud computing solutions; the more recent survey shows a decrease to 37%. The previous poll also showed 61% of companies were using only internal IT systems, and today that number is down to 41%. Avanade’s study found that 68% of respondents were using SaaS at some level, but still about 30% of those said service outages were an issue.
Whatever security and reliability problems respondents had, 62% said they plan to expand their SaaS usage. However, the study had no real conclusion about whether this uptick in hybrid SaaS usage would lead those companies to move entirely to the cloud. The study did conclude that cloud computing will continue making inroads, but that some applications should remain on-premise. Avanade surmised that the gap between companies planning to adopt SaaS and those that aren’t will close in either 2011 or 2012. It will be interesting to see what ratio of cloud to on-premise usage this hybrid moves to in the future, and how controllable security and dependability can become.
Cloud computing is here to stay, which is a certainty that even Larry Ellison embraces, even for all his posturing with Salesforce.com founder—and self-proclaimed “cloud-computing evangelist”—Marc Benioff. Last week at Oracle OpenWorld in San Francisco, Ellison announced that a full version of Oracle Fusion applications would be available next year, marking the company’s first serious SaaS offering.
Prior to Ellison’s keynote announcement of Oracle Fusion apps, the other buzzed-about speech was the one given by Benioff, mostly because he and Ellison have exchanged thinly-veiled insults for quite a while. Ellison has historically balked at cloud-computing, even though he was one of Salesforce’s first investors. During his speech, Benioff painted Oracle as a bit of a straggler for their favoring on-premise solutions, but also made digs about Oracle’s being more suited to large enterprises, while Salesforce is accessible to businesses of all sizes. Even though Oracle products have been a ground station for many cloud-computing vendors (including Salesforce.com, which uses the Oracle database to support its service), perhaps Benioff’s presence and speech were more a nod to Oracle’s future in SaaS than anything else.
Of course, just because Oracle has pledged to the cloud-computing club doesn’t mean initiation will be easy: some tech pundits note that making a shift to SaaS at this stage of the “game” could mean having to change your business model. Still, Oracle will have a solid stable of on-premise products to cushion the blow of any on-demand failures. There is also the fact that while cloud-computing is wildly popular (and undoubtedly the future), legacy applications haven’t been eradicated yet, and there is still a demand for traditional licensing.
The outpouring of Oracle OpenWorld news continues: Samsung SDS and Oracle have co-developed a native mobile CRM application. Last week, demonstrations of the new application were held at the Moscone Center in San Francisco, but the week prior the product had a “soft debut” in San Diego that was met with positive reviews.
The application is for Samsung smartphones and is based on Oracle Siebel CRM, and will run on the Samsung Mobile Cloud Center (SMCC). The first release is for pharmaceutical companies, but Samsung SDS plans to develop similar CRM applications for other verticals. Oracle already offers mobile version of its CRM system, but it is a basic rendering in comparison to the new Samsung collaboration, which has more features. Some of the advancements include a hub-and-spoke graphic to show users their customers’ connections—as opposed to Oracle’s original spreadsheet for displaying such associations—communication records built into customer profiles, and complex graphs.
At OpenWorld, Oracle’s Anthony Lye spoke to the importance to moving toward mobile in the future, so it is no surprise that this CRM offering is only the first of Samsung’s projected efforts to target the enterprise market. In this regard, Samsung will concentrate on its Windows Mobile phones in 2010, and plans to continue to focus on applications as well as devices by maintaining partnership with Oracle.
Two weeks ago, the annual CRM Expo was held in Nuremberg, Germany, and SugarCRM client 3Dconnexion was awarded the 2009 CRM Best Practice Award. The award is most certainly a testament to the value and capabilities SugarCRM delivers to its customers, and 3Dconnexion is the third SugarCRM customer to win the award, and it is also the third such win for Insignio, SugarCRM’s German partner who managed the implementation.
3Dconnexion is a subsidiary of Logitech, and the award was given in the “CRM Launch” category for their use of SugarCRM as a global customer management platform. 3Dconnexion develops control devices for a wide variety of users, from gamers to product designers, and is headquartered in Fremont, CA, with European headquarters near Munich. The previous CRM system was spread across multiple databases, and they turned to SugarCRM for a consolidation solution for online marketing, sales, services and reporting.
The SugarCRM deployment includes key integrations to tie the CRM system into Google Maps, the company’s e-commerce platform and partner portal. It also serves employees in seven languages in Europe and the United States, and 3Dconnexion’s next step will be implementation in Japan. Thus far, it’s been a good fall for SugarCRM, as they were also recently awarded “Best Open Source Technology” by CRM Magazine.
Keynote speeches at Oracle OpenWorld (which wrapped up yesterday), didn’t necessarily announce radically new concepts, but that certain strategies were promoted at this well-attended event speaks to the certainty of future changes in Oracle’s CRM development. And of course, it will be interesting to see who follows in their footsteps now that this gauntlet has been thrown.
Oracle CFO Safra Catz spoke to some upcoming changes and Oracle’s recent acquisitions. One of her main points was that Oracle was a strong vendor in many industries, but perhaps had not been doing enough to connect their products so that the user wouldn’t have to do this task themselves. The company’s acquisitions are meant to mollify this situation, and make solutions work together. Joel Koppelman, head of project management at 2008 acquisition Primavera, spoke of customers’ demand for integrations to be prepackaged; something Oracle will produce more of in the future.
But it was Anthony Lye, SVP of CRM, who detailed the three strategies that will change the face of Oracle CRM. In a discussion with other executives regarding specific strategies for Oracle Siebel and Oracle CRM On Demand, Lye stated that the fundamentals in the coming year would be: executing the cross-channel customer experience flawlessly, tapping into the power of the social web, and delivering CRM data when, how and where users need it. More specifically, customers start and end in different channels, and are using more mobile data as well, and Lye wants to move toward seamless transitions. This is also important to the third point—supporting the user’s need to access CRM data from pretty much anywhere. And in terms of utilizing social media, Lye thinks it’s especially important that CRM foster customer-to-customer relationships, which is a less-discussed reason for racing to social networking.
Last week, InsideView announced enhancements to its integration of SalesView with both Oracle CRM and Siebel CRM applications. InsideView is a proponent of social media and self-proclaimed leaders of the “Sales 2.0” push, and these latest updates to the SalesView product are a move in support of Oracle’s Social CRM initiative.
SalesView goes beyond the average social enterprise application in that it analyzes information across both traditional sources within a CRM application and emerging social media to present sales opportunities. These prospects are presented within the CRM system, and the latest improvements allow greater coverage for international companies and SMBs.
SalesView is powered by the InsideView Smart Cloud, and is thus the first marketing intelligence solution allowing on-demand addition and validation of content. Naturally, SalesView users enjoy other benefits of cloud computing, like real-time information retrieval from social networking platforms and data resources. SalesView presents these news alerts and relationship analysis natively within the Oracle and Siebel CRM platforms, and content from SalesView can be exported to create or modify account and lead information.
In singing his praise of SalesView, Oracle’s Senior Vice President, Anthony Lye, noted that the integration would result in a combined solution surely invaluable “to even the world’s largest enterprises.” Though InsideView focuses on SMBs, Lye certainly has a point. Though many companies balk at the notion of Enterprise 2.0, it’s unlikely that companies eschewing these principles will flourish, and SalesView’s analytical capacity makes it more than just a social networking tool, and places it head and shoulders above other social media products.
Many content management system providers are moving their offerings to the cloud—or at least providing both hosted and on-demand options—and it seems that the security issues of cloud computing are becoming less and less of an issue for large enterprises. Earlier this week, software provider BMC announced that it would be adopting Clickability’s cloud-based content management platform. Interested in the trend of CM systems migrating to the cloud, enterprise software pundit Phil Wainewright sat down with Clickability CEO Jeff Freund to discuss the general concerns.
They determined the overarching issue to be the need for businesses to employ more dynamic web sites, and sites that provide the same use experience—that is, emanate the core business value—for both the business’s constituents, prospective leads, and customers. Web sites are no longer just platforms for comparison shopping, and with this in mind many content managing systems are widening their reach. Freund stressed that for a site to deliver that core value, it needs to be able to interact with the proprietary company’s CRM and marketing automation platforms. This necessary interaction is part of why CMS on the SaaS model is so handy—cloud-computing provides quicker integration.
In addition to being more cost-efficient than on-site systems, CMS in the cloud gives users quicker deployments in several areas. For instance, given the sheer amount of web content available, and the number of innovations that help people create innovations—and the speed with which these products become available—content management systems need to quickly accommodate this perpetual transformation, and the SaaS model can do this. Freund also notes that the cloud allows user to see their results faster, intimating that Clickability has seen integration times that are from a quarter to a tenth of the time it would take with a traditional on-site platform.
Cloud computing previously had benefits countered by seemingly obvious detriments, but it is interesting to see how it is gaining ground, and who will follow BMC’s footsteps in stepping from behind the firewall.
Earlier this fall, CRM Magazine announced SugarCRM received their Top Open Source Technology Market Award for the second consecutive year. Given that the economy has left companies rethinking their CRM investments—thereby pushing more CRM providers toward open source and helping open source find a niche—it is a definite feat that SugarCRM not only swept the category but was deemed “head-and-shoulders above the rest.”
SugarCRM’s cloud-based platform is known for being easy to use, and for its adaptability to unique business requirements. Open source helps with this, as current CEO Larry Augustin notes that developers use the code to ease integrations rather to actually modify it. It also gives people a better understanding of the inner workings of the platform, and this comprehension is at a higher level than if it’s a SaaS-only or proprietary closed-source model.
Another indication of SugarCRM’s superior open source offering is their incorporation into Microsoft’s web platform. Microsoft is another strong platform in the open source community, and their application installer platform allows people running on MS OS to install SugarCRM through the installer for open source.
It is of note that while SugarCRM was far above the competition, CRM Magazine does note that their score from this year had dropped a couple tenths of a point. This isn’t necessarily a testament to any lacking in SugarCRM’s open source technology, but it is an indication that more CRM providers are entering the field and advancing their products.
After an impressive Series C round of funding late last month, Marketo has bolstered its position as a major player in the marketing automation industry. Venture capital firm Mayfield Fund made the significant investment, as they were impressed with Marketo’s recent customer success and revenue growth. Mayfield’s admiration comes as no surprise, as Marketo’s B2B on-demand lead generation application garnered them a 30% growth rate last November, when most companies were hard-pressed to hold on to existing clients.
Marketing automation is a fast-growing market, presenting a space that many companies are anxious to fill. As Vasan points out, many organizations use Google Analytics for tracking their site visitors, and use a more traditional CRM provider like Salesforce.com for customer management. Marketo bridges the gap between these two offerings, providing revenue-centered marketing and sales solutions for companies of all sizes, and offering a lead management application, as well as Sales Insight, a product helping sales representatives to prioritize leads and opportunities. Mayfield strongly believes they have the ability to change the market dynamics of the marketing automation.
Mayfield is a top VC firm in the Silicon Valley, managing over $2.8 billion, and they have successfully invested in companies like Atari, Genetech, and security software developer Webroot. A provision of the funding will place Mayfield’s managing director, Robin Vasan, on Marketo’s board of directors.
After vetting over 10 CRM providers for a system, Chicago’s United Center selected a Microsoft Dynamics CRM solution delivered by Sonoma Partners. Sonoma Partners is a leading provider of MS Dynamics CRM within the US, and this latest coup represents the fourth phase of a CRM project for the sports arena that hosts the Chicago Bulls and the Chicago Blackhawks.
The first phase began in 2008, when Sonoma deployed MS Dynamics CRM to the United Center’s Prospecting and Premium Seating departments (where it replaced several Goldmine products). The United Center sought xRM deployments, as they wanted to consolidate their multiple and disparate sales systems. They considered MS Dynamics was the best for the job because it allows users to reuse and update existing components between organizations, and therefore provides a cost-effective and time-efficient procedure. The Bulls and the Blackhawks were both reportedly looking to put forth an aggressive call-center effort—another area in which MS Dynamics came out in front.
Robert Gorman, Director of Information Systems at the United Center, says they chose Microsoft Dynamics CRM for its scalability, as well as its automated workflows and integration with Office, SharePoint 2007, and other vertical market apps. Within the Prospecting and Seating departments, some 30 sales representatives will use the platform to manage customer and prospect lists, track inventory data, manage contracts, and follow up on activities. This CRM system will also be extended to the Corporate Sponsorship and Marketing departments to manage various advertising campaigns, from concourse signs to radio spots.
The next step will be to integrate the Levy dining and catering businesses within the arena, as well as the Community Relations department.
