THINK IT Services

THINKstrategies announced today that SchoolDude.com has been named the latest winner of the Best of SaaS Showplace (BoSS) Awards program, which is aimed at promoting the measurable business benefits being delivered by today’s Software-as-a-Service (SaaS) solutions.

The BoSS Awards program was announced in January 2009 as the latest initiative by THINKstrategies to bring attention to SaaS and cloud computing companies which are producing tangible business benefits for specific user organizations. These benefits include increased sales, lower costs, higher customer satisfaction, faster operations, and greater profitability.

SchoolDude.com provides a suite of on-demand operations management solutions that help school districts, private schools, and universities save money and time by managing their IT, facilities, and business operations more efficiently. This includes functions such as preventive maintenance, facility work order management, inventory management, IT incident and IT asset management, community use scheduling, and utility use tracking and analysis.

Click here to read about the business benefits which SchoolDude.com has generated for public school systems and private education institutions which led to it being named the latest recipient of a BoSS Award.

Click here to learn more about the BoSS Awards and how to apply for an award.

I had the privilege of visiting Copenhagen, Denmark, for the first time this past week to give keynote presentations at ComputerWorld’s Top 100 Award ceremony and the first Hosting Day Conference held in the city. I also met with an assortment of local cloud computing entrepreneurs and a variety of established players pursuing Software-as-a-Service (SaaS) opportunities in the Nordic region.

I was invited to participate in these events by Anders Trolle-Schultz, the founder of SaaS-it Consult Ltd. and organizer of the Hosting Day conference. I knew little about Anders or his consulting business when I sent him an email in June to congratulate him on publishing a terrific column in the Sandhill Group newsletter, entitled “Software as a Service: It’s About the Business Model, Stupid!”

I was pleasantly surprised to discover that Anders was a fan of my writings as well, and was flattered when he invited me to participate in his hosting event. Having organized and participated in many industry conferences, I was really impressed by the quality of the speakers and attendees which he brought together in a very short timeframe.

What I quickly learned is that Anders is at the center of a growing ‘ecosystem’ of hosting, SaaS and cloud computing companies in the Nordic region. He is also very well-connected with many of the major global players as well, as the conference agenda and my weeklong schedule of one-on-one meetings he set up illustrated.

In fact, Anders—and his colleague Vagn Kohler—have built SaaS-it Consult business based on their “passion for partnerships”, helping vendors, resellers, hosting companies and others combine forces to deliver “Services Built on Technology” (SBoT)—Anders’ pet phraseology.

Anders, Vagn and I became quick friends this week because we share a similar passion for helping organizations overcome the business challenges associated with migrating from product-centric to services-driven technology solutions.

The visit to Copenhagen reminded me of my previous visits to Dublin where I had helped to organize two, one-day symposiums regarding the emerging SaaS market in 2006-2007. The participants in this week’s hosting event in Copenhagen were trying to decipher the realities about the cloud computing market in the same ways that the ISVs at the Dublin events were trying to understand the SaaS market.

While many in Denmark speak English and everyone drives on the right-side of the road as we do in the U.S., they don’t share the same conviction and enthusiasm of a growing number of American decision-makers that cloud computing is an increasingly attractive and viable alternative to traditional, on-premise software and systems. Instead, the Danes doubt cloud computing will be accepted by mainstream businesses and government agencies until regulatory, reliability, security and scalability concerns are fully addressed.

But, even more importantly, they are skeptical about whether the major hardware and software vendors will adequately revamp their licensing and pricing structures to permit true SaaS and cloud computing to become a widespread reality.
 
While my talk and others during the Hosting Day succeeded in clarifying much of the confusion among the conference attendees regarding the definition of cloud computing, it didn’t rid them of their concerns about the resistance they face convincing IT and business decision-makers of the viability of cloud computing alternatives.

They were also nearly unanimous in their dislike of the term ‘cloud computing’ itself. They all agreed that this term creates too much needless confusion and unfounded fears among corporate decision-makers. As a result, the selling process gets bogged down in technical issues rather than focusing on the business benefits.

The Hosting Day did succeed in bringing together over 60 regional representatives who agreed to establish an informal group, or ‘community’, to encourage ongoing discussions about industry best practices and challenges.

I also had a series of one-on-one meetings choreographed by Anders and Vagn with various vendors, resellers and entrepreneurs trying to determine how to position themselves in the market.

One session with a local entrepreneur generated some interesting ideas about how hosting companies could combine forces to circumvent the nationalistic policies which make it difficult for SaaS and cloud computing vendors to deliver pan-European services in a cost-effective fashion.

Anders, Vagn and SaaS-it will be driving these initiatives, and I’m pleased to be supporting their efforts. I also hope to return the favor and introduce them to my contacts in the U.S. who could benefit from their perspectives regarding the European market in general and effective channel strategies in particular.

Contact me if you’d like to learn more about my trip or would like to meet Anders.

Dell’s acquisition of Perot Systems clearly demonstrates that Dell is in the midst of abandoning its historic advantage as the most efficient direct marketing company in the tech industry, in favor of following the increasingly failed outsourcing models of its bigger hardware rivals.

By buying Perot Systems, Dell is following in the footsteps of HP’s acquisition of EDS in an attempt to match the IT outsourcing (ITO) and services capabilities of IBM.

The only problem is that an increasing number of large-scale enterprises have become disillusioned with tradition ITO because these asset transfer deals have generally failed to achieve their business objectives. Even traditional IT consulting engagements frustrate many IT and business decision-makers because they tend to be too long and expensive.

Blending a labor-intensive business, like Perot Systems, with a product-centric company, like Dell, is also a formula for trouble. These are two very different business models and corporate cultures. Just ask IBMers who have witnessed the constant tug-of-war between its hardware, software and services divisions.

It is for these reasons that I originally criticized HP’s acquisition of EDS. That deal may have fortified HP’s outsourcing business, but it also caused a lot of corporate infighting and hasn’t moved HP any closer to becoming a player in the increasingly cloud computing arena, where the real action will be for years to come.

I always felt that it was unfortunate timing when Dell decided to expand its channels to market at the same time it was acquiring a number of Software-as-a-Service (SaaS) companies to develop greater remote service capabilities. These acquisitions could have given Dell an opportunity to redefine how IT services are built and delivered, and in turn could have further differentiated Dell in the commodity PC business.

Instead, Dell decided to push its products through a broader array of  resellers, many of whom had built up a deep-seated hatred for Dell because of its direct sales tactics of the past. In order to placate these anomosities, Dell has slowed the development of its ‘on-demand’ services as it tries to determine how to position these offerings so they won’t further offend Dell’s potential partners.

Ironically, the Perot purchase will set off far more alarms among third-party service providers, including value-added resellers and integrators, who were just getting comfortable with Dell. Now, they will have to be convinced that Dell isn’t trying to compete with them in the IT services market.

As I said at the time of the HP-EDS deal, this transaction may make sense on paper but it misses the real market opportunity. The world is moving to the ‘cloud’ and Perot has very little to offer in this brave new world.

It may have data center expertise and hosting capabilities, but Perot Systems is not a recognized player in the cloud computing arena. Instead, its people and processes are more likely to reduce the innovation and agility which Dell desperately needs at this time to clearly set itself apart from its competition rather than just imitate them.

Despite the specific problems with this transaction, it doesn’t diminish my view that there is an important role for professional services, consulting and value-added resellers (VARs) in the SaaS and cloud computing market. However, it will take more future-minded IT service providers and tech companies to capitalize on this opportunity.

THINKstrategies announced today that Verio has been named the latest winner of the Best of SaaS Showplace (BoSS) Awards program aimed at promoting the measurable business benefits being delivered by today’s Software-as-a-Service (SaaS) solutions.

The BoSS Awards program was announced in January 2009 as the latest initiative by THINKstrategies to bring attention to SaaS and cloud computing companies which are producing tangible business benefits for specific user organizations. These benefits include increased sales, lower costs, higher customer satisfaction, faster operations, and greater profitability.

Verio is the leading provider in delivering online business solutions to SMBs worldwide. Distributed through its global network of OEM and via Verio channel partners, Verio’s solutions provide web hosting, application hosting and SaaS that enables SMBs to drive online success. Verio is a subsidiary of NTT Communications, one of the largest companies in the world and supports its operations with their highly reliable and scalable Global IP Network providing customers and partners with access to business solutions in more than 200 countries.

Click here to read about Verio’s award-winning SaaS solutions.

Click here to learn more about the BoSS Awards and to apply for an award.

THINKstrategies unveiled today a new Primer aimed at helping Independent Software Vendors (ISVs) develop and deliver successful Software-as-a-Service (SaaS) solutions.

The SaaS Primer for ISVs is based on our extensive experience working with a wide array of SaaS providers, and indepth understanding of the rapidly changing expectations of IT and business decision-makers within organizations of all sizes and across nearly every industry.

Click here to learn more about the new Primer.

In the ongoing tug-of-war between on-premise and on-demand vendors, much was made of Steve Lucas’ jump from the SaaS unit of SAP’s Business Objects to Salesforce.com to lead its new Force.com Platform-as-a-Service (PaaS) initiative a little over a year ago.

With far less fanfare, Lucas returned to SAP last month as its new SVP of Business User Sales for North America. Since Steve is a friend, and SAP and Salesforce.com are also clients, I won’t share any confidential information or insight. However, his move does raise a series of interesting questions about Salesforce.com’s Force.com initiative and SAP’s plans.

Given Salesforce.com’s rapid growth despite the macro-economic slowdown and the major push the company is giving Force.com, it is surprising to see Steve return to SAP which is still struggling to define its Software-as-a-Service (SaaS)/cloud computing strategies and solutions.

While SAP’s struggles have been well documented, Salesforce.com’s PaaS challenges are less well-known. Wall Street analysts have questioned whether Force.com can become a significant revenue generator for the company, and various software vendors and industry observers have debated the merits of building business applications on the platform.

I’ve interviewed a variety of vendors, as well as enterprise decision-makers, who have successfully leveraged Force.com to build business apps and satisfy their corporate objectives. So, I’m convinced that Salesforce.com is heading in the right direction with Force.com. However, there is no question that the PaaS is still embryonic and will go through a series of refinements before it fulfills its promise.

These challenges are minute compared to those facing SAP as it attempts to add SaaS solutions to its legacy applications. So, SAP had to give Steve a pretty good offer to bring him back.

People move between jobs and companies for a combination of personal and professional reasons. Therefore, having one executive jump ship doesn’t necessarily equate to a tidal shift in the marketplace. The SaaS/cloud computing movement continues to accelerate, while legacy software vendors continue to struggle to sustain their sales and profits.

Whatever the reasons were that drove Lucas to return to SAP, it is surprising that the company didn’t capitalize on this opportunity to boast about winning back a key executive in the same way Salesforce.com used Lucas’ defection from SAP to its PR advantage.

More importantly, Lucas’ moves back and forth between the on-premise and on-demand worlds may personify the mixed emotions of various IT/business decision-makers who are also wavering between their legacy on-premise apps and the promise of cloud alternatives.

THINKstrategies announced today that Helpstream has been named the latest winner of the Best of SaaS Showplace (BoSS) Awards program, which is aimed at promoting the measurable business benefits being delivered by today’s Software-as-a-Service (SaaS) solutions.

The BoSS Awards program has been initiated by THINKstrategies to bring attention to SaaS and cloud computing companies which are producing tangible business benefits for specific user organizations. These benefits include increased sales, lower costs, higher customer satisfaction, faster operations, and greater profitability.

Helpstream integrates social Web technologies with modern customer service and collaboration processes to drive effective customer and partner engagement across all business functions. Helpstream’s SaaS design makes it fast to deploy, easy-to-use and affordable. It’s solution can be deployed as a complete customer service system or as an integrated self-service and community case resolution complement to existing CRM systems.

Click here to read more about the company’s BoSS Award-winning capabilities.

Click here to learn more about the BoSS Awards or to submit an application for an award.

For everyone in the U.S., Labor Day weekend represents the spiritual end of the summer. It is also a time when many of us sit back and take stock of our lives and the world around us as we prepare to re-enter the regular work routine.

The first thing to be said about the current state of our world is there is nothing routine about it. Obviously, the economy has had a major impact on the business environment and everyone’s psyches as well. But, even if we are fortunate enough to see an uptick in the financial climate as we approach the last quarter of the calendar year, I believe the rapid migration to cloud-based services will continue to accelerate and fundamentally transform the competitive landscape of almost every industry, including the public sector.

Although I remain a vehement proponent of the cloud computing and on-demand services movement, I also have growing concerns about the long-term impact of the commodization process which this trend is producing. As Tom Foremski blogged on ZDnet in June, the Internet devalues everything it touches.

I think this reverse alchemy is already having a detrimental affect on the SaaS and broader cloud computing market, either pushing down prices or putting an artificial cap on price levels. This price sensitivity of this market is due to three forces,

1. Customer perceptions of value are declining.
2. Technology advancements are reducing the operational costs.
3. The proliferation of players is creating greater price competition.

Given these realities, who will be most likely to sell the value of their solutions and avoid the death spiral of commodization in the cloud?

Here are a few candidates,

• Strategic vendors who offer end-to-end solutions or multi-dimensional portfolios. Customers will pay a premium price for the convenience of obtaining a set of solutions from a single source in an integrated fashion.
• Brand leaders who offer the promise of long-term financial viability and potential of a broader portfolio of solutions (organic or third-party) over time. Customers will gravitate toward proven vendors who are unlikely to disappear in an industry shakeout even if their solutions are not market leading.
• New Breed SIs/VARs who can cobble together cloud computing components or cater horizontal SaaS apps into industry-specific solutions. Appirio is the premiere player in the cloud-based systems integration arena. Veeva Systems  (formerly, Verticals OnDemand) is a good example of a new breed VAR who has reconfigured salesforce.com’s CRM solution to satisfy the unique requirements of the pharma industry.

The strategic vendors and brand leaders maybe one and the same. They may also be many of the legacy vendors who might have been late to the market but benefitted from their timing, tradition and being able to tap an existing customer base. What these companies have learned in many cases is how to make up for their technical deficiencies by offering stronger customer support capabilities. (You can read more of my views on this point in Ecommerce Times.)

While some traditional HW/SW vendors may be able to survive the on-demand services and cloud computing movement, I don’t think traditional SIs and VARs will be so lucky. They are too costly and cumbersome to succeed in an increasingly streamlined sector.

I hate to say this during Labor Weekend when we are celebrating the achievements of workers, but it is no secret and it is not news that the value and relevance of many workers is disappearing. This includes tech engineers, consultants and salespeople boasting old-world skills and high salaries.

Therefore, labor-intensive SIs and IT/business process outsourcers (BPOs) along with legacy system/software-centric VARs are at risk in today’s rapidly shifting world.

Ironically, more streamlined SIs and VARs who leverage a new generation of web-savvy workers may be in the most advantageous position to capitalize on the SaaS and cloud computing opportunity. This new breed of worker will not only have the right technical skills, but will also possess good analytic and people-skills to understand how to cater today’s cloud computing and SaaS capabilities to the specific business processes. But, in order to be effective, they will also have to be backed up by an efficient, cloud-based operating environment which also leverages the best attributes of SaaS…ubiquitous access, information-sharing, agility and scalability.

So, as the differentiation between various horizontal applications diminishes, it will be those SaaS and cloud computing companies which offer the most specialized skills and strongest customer support services that will attain a competitive advantage.

The baton has been passed to a new generation of workers and SIs/VARs with new skills and business models which can address a different set of technical complexities and deliver a new set of solutions in a more rapid and cost-effective fashion.

Unlike the cliche of the gold-rush era that those who sold the shovels got rich while the prospectors went home poor, in today’s ‘cloud-rush’ the tools vendors may not do as well as the tour-guides…the new SIs and VARs.