Click here to close now.

Welcome!

Java Authors: Liz McMillan, Pat Romanski, Carmen Gonzalez, Yeshim Deniz, Ruxit Blog

Related Topics: Cloud Expo, Microservices Journal

Cloud Expo: Blog Feed Post

SaaS & Business Intelligence at Dreamforce

It's a great time to be in this business

SalesForce.com Journal on Ulitzer

I was lucky enough to be at Dreamforce 2009 last week and wanted to pen down a few thoughts while the event is still fresh in my mind. I don’t think there was any earth-shattering news there, and I got the feeling (both onsite and online) that a lot of people didn’t really grasp the value of Benioff’s announcement (or strategy) about “socializing” the platform with Chatter. 

I, for one, certainly couldn’t make sense of Colin Powell’s presence at one of the keynotes (not sure what he can possibly offer the world of SaaS but maybe I missed something).  But overall it was an enlightening conference and here are some of my impressions (and they pertain mostly to the SaaS BI realm).



First, the sheer number of bodies at the event was impressive. I understand 18,000 people took part and that is quite a large crowd given how undersold (to put it mildly) other conferences have been this year. Businesses have been reluctant to invest in conferences in 2009 as evidenced by abysmal attendance numbers and the rising popularity of “virtual conferencing”.  So if one conference was preferred over all others, it must have been Dreamforce 2009, because it seemed like everybody and his mother sent people there.

Second, I was impressed by the level of “education” the typical attendee exhibited. I didn’t really see or hear people asking basic “big picture” questions. Rather, the inquiries were very focused, deep, and to the point, revealing mature customers (buyers) who had done some serious homework. Actually, most of these folks have had meaningful experience in the cloud (some good, some bad) and knew how to hit the right vendor pressure points. From my standpoint, it is always vastly better (and more enriching) to deal with well educated buyers in a no-nonsense approach. This is exactly the user profile I experienced at Dreamforce.com manning the GoodData booth.

Third, and I realize this is subjective, but to be honest, there are a lot of small clueless companies out there having nothing to do with cloud per say who clutter these shows for the publicity of slapping “cloud” onto their marketing literature. I’m not going to name names, but let’s just say when you sell gardening shoes, mailboxes, or kitchen countertops, I’m not sure you should be spending marketing dollars on Dreamforce.

Fourth, I didn’t pick up any “religious” fervor at the show from either buyer or vendor sides. I assumed this was going to be a major rah-rah for everything cloud (with Open Source type of fervor) but I found the discussions to be much more measured and rational with most people objectively comparing both approaches (when applicable) with few pre-conceived notions. I believe this is a sign of industry maturation as people are getting better at separating the wheat from the chaff. I feel for the most part that SaaS limitations are well understood by most (not all) people and expectations are becoming more reasonable for the most part.

Fifth, I believe that SaaS beachheads have been claimed.  This is particularly true in the BI space. This has a lot to do with perception obviously but in my opinion, the winners and losers have already been tagged.  Most companies (if not all) are fairly new in the cloud space yet already, they have public reputations as in “these guys aren’t serious” or “these folks are the ones you want to talk to”.  Obviously first-to-market matters a great deal in any industry and cloud is no different.  Except with SaaS of course, you can be first to market with a virtual product (vaporware, in the on-premise world), and it takes longer for people to read the fine print but, eventually, they do.  When people have an interest in a particular SaaS domain, they go directly to the “top dogs” without stopping anywhere else.  I believe there is plenty of space for new companies in the cloud but for those having established an early lead (perceived or not, and with compelling technology), the future seems bright.

Sixth, everybody in the BI cloud space faces the exact same problems.  And no one has clear answers so this is still a very “trial and error” process.  The difference is between vendors who admit this, and those who don’t (mostly to themselves).  This is a sweeping statement but overwhelmingly, when you talk to other vendors, the same themes come out time and again.  Namely, how to scale fast enough (or onboard efficiently with minimal customer “touch”), and how to control sales and marketing costs which are turning out to be higher than anticipated.   Although adoption is growing, in my opinion, the technical hurdles are not remotely as high as the business ones.

Most of the BI cloud vendors have managed to get by on minimal engineering costs.  Offshore labor is cheap enough that you can afford competent engineering teams in India, Central Europe or China (to name a few) for literally dollars a day and minimal liability.  Some of these vendors are making ends meet with two-man engineering teams!  And only two I know of have engineering teams exceeding ten people. So clearly, the money pit is elsewhere.

And elsewhere is S&M (no, not the fun kind) namely Sales and Marketing. The original proposition for cloud was that the “service”, unlike traditional enterprise software, was going to kind of sell itself.  S&M budgets were going to be minimal. No more travelling field sales force, expensive face-to-face customer visits, pre or post-sales engineers.  It was all going to be “automatic” and on the web. But my limited experience contradicts this.

Because now, adoption and competition are growing.  For example nowadays in SaaS BI, you have dozens of vendors. You skim enough to get to the “serious” ones (see #5 above) and now you’re left with maybe four or five guys.  Next year, there will likely be ten serious contenders.  The more competition you have, the higher sales cycles and costs get.  Next thing you know, you’re back to boots on the ground and to a more traditional enterprise software sales models. This is the danger facing many SaaS players these days.  CEOs and investors are edgy about this emerging trend. It breaks the anticipated mold.

The other problem is what I call customer “touch-too-much”.  In a SaaS model, efficient on-boarding is crucial. This is not only about flipping the proverbial switch – because properly-engineered multi-tenant systems achieve this quite well – but more about the time it takes to get a user’s business problem solved.  Namely, the costly interaction spent on a given customer to handle specific needs and the amount of customization needed to achieve satisfaction (and final sign-off on the purchase order). POCs, sales cycles and marketing costs are growing.

This is a huge problem in the BI space because the requirements phase can be long and even there agility is not necessarily a Holy Grail.  The basic problem is simple: it is very difficult to remove the “human factor” when implementing BI.  Cookie cutter never satisfies a particular business problem entirely. The money’s in the customization and the subject matter expertise.  You must solve difficult business problems, not engineering ones.  The same challenges apply to software engineering, and history has seen a flurry of “blissful automation” endeavors fail in that space (remember 4GL?).  At the end of the day, you can’t remove what’s between the chair and the keyboard, and you can’t efficiently and consistently automate it in software – whether in the cloud or not.

Now, this is not so bad for a company like Salesforce.com because they’re a platform play.  So by definition, they provide efficient functionality (large offering surface), but it’s all fairly mediocre and “cookie cutter” – Users are free to (try and) customize their modules as they see fit.  In the analytics space, for example, Salesforce reporting and analysis is shallow. Consequently, users looking for customer data insight and trending statistics (say for pipeline analysis) will look for integrated solutions fitting their specific business needs.

But for the after-market players who “plug” into something like Salesforce, it’s a major hurdle. Unless they can very quickly and cheaply customize their offerings for a myriad of different business cases, and move through POCs quickly, the SaaS hosting and costing model won’t do them much good.  In my opinion, most existing BI SaaS vendors are currently struggling with this conundrum. Lucidera seems to have as well. Its demise was a shot across the bow.  The first SaaS BI player to move past this problem wins the game and keeps the investors happy.

I have a hard time thinking of a SaaS BI vendor currently striking a reasonable balance between zero S&M and massive S&M.  One on end of the scale, I see folks adamantly opposed to spending a dime on marketing and expecting serendipitous results. On the other end, I see vendors placing heavy bets on misguided or highly-targeted verticals.  I see both strategies as precarious and hope for more level-headedness in the coming months.

No matter which way this goes, we're in for a wild ride. No prisoners will be taken. It's a great time to be in this business.

Yours in BI.

Read the original blog entry...

More Stories By Jerome Pineau

Twenty years of extensive hands-on software development, application engineering, customer interaction, management and consulting experience spanning a diverse array of industries and business models.

Now a "full-service" sales engineer, solutions architect, evangelist, technical ambassador (or whatever you want to call it) in the business intelligence space, specializing in high-performance analytical database management systems (ADBMS).

@ThingsExpo Stories
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and Care Packs. As a trusted supplier, CBS guarantees quality controlled stock levels thanks to an Auto...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
GENBAND introduced its Real Time Communications (RTC) Client for Lync* to seamlessly combine real-time communications with Lync Instant Messaging (IM) and Presence. “We’re shaking up the economics of delivering Unified Communications (UC) and offering a compelling way to integrate previously bespoke communications technologies,” said Carl Baptiste, GENBAND’s Senior Vice President, Enterprise Solutions. “We’re offering enterprises the best of both worlds by combining our own high availability voice, video and collaboration with Lync’s IM and Presence; creating a single, web centric, client. O...
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
SYS-CON Events announced today that Optimal Design, an Internet of Things solution provider, will exhibit at SYS-CON's Internet of @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Optimal Design is an award winning product development firm offering industrial design and engineering services to the consumer, medical, and defense markets.
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Telecommunications Corporation, a facilities-based international carrier licensed by t...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applications as well as responsive action controls. The various architectural building blocks of an IoT ...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Participants will reach the final if their IoT solution is liked. A community vote will determine the best solutions submitted in each country, after which an expert jury will select the national winners and the best international IoT solution. Each country's best solution can win a national marketing campaign worth up to €30,000 and become a partner in Deutsche Telekom's participating markets. The winning international solution can become partner of Deutsche Telekom Group across all eight countries and reach out to a potential of 10,8 million business customers. Deutsche Telekom Group has a...
Recent technology advances in miniaturization has positioned the wearables as the pinnacle of technology convergence with the human body. We inquire if wearables are mere standard miniaturized devices extended with the connectivity and present our views on considerations like design, applications, performance, efficiency, interoperability, usage scenarios, human device interaction and consequent trade-offs enabling wearables to impart optimal value.
WebRTC Summit has announced today that Peter Dunkley has been named summit chair of WebRTC Summit 2015 New York. The 4th International WebRTC Summit will take place on June 9-11, 2015, at the Javits Center in Manhattan, New York. @ThingsExpo anticipates 90% of WebRTC companies & developers will monetize their products & services through IoT by 2016. Peter Dunkley is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS7, ISDN and simi...
In this session we look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. We will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS7, ISDN and similar protocols and creating advanced routing and serv...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.