Salesforce Q2’14 Financial Results – No Respect

When a bold, trend-setting company such as Salesforce earns the respect of the Wall Street financial community then maybe we truly have reached the point that “The Cloud” is recognized as a legitimate business model and not just a ‘fad’.  Nowadays, Salesforce is treated just as another company when analyzing their quarterly financial results.

rodney-dangerfield-quotes2

Salesforce is still not a profitable company; yet.  However, with consistently improving business, which is more sustainable than selling traditional on-premise software by-the-way, the future is bright.  They are focused on ‘growth’ versus ‘profit’ now.  If this trend continues from $-0.16 Earnings Per Share (EPS) last quarter to $-0.10 EPS this quarter it shouldn’t be too long before they are profitable.

At that inflection point it will be absolutely interesting to see how explosive the Company might grow considering the solid foundation they would have built and the unbelievable scalability of this type of Software-as-a-Service (SaaS) business model.

Below is a link to a Forbes article the summarizes Salesforce’s Q2’14 Finanical Results:

http://www.forbes.com/sites/alexkonrad/2014/08/21/salesforce-narrowly-beats-expectations-in-q2/

By almost every metric the company improved the flow of cash coming into the company by somewhere between 30% and 40%. Cash was up 34% to $246 million; deferred revenue up 31% to $2.35 billion. Unbilled and deferred revenue that the company has under contract but won’t appear on the books yet stands at $5 billion, up 32%, while Salesforce is now projecting full-year growth of between 31% and 32%, with its guidance inched up $30 million to $5.34 billion to $5.37 billion.

#CloudIsAFad and #SaaSIsAFad.com

cropped-saasisafad_header

LinkedIn Q4’12 financial results: Cloud/SaaS are fads.

Congratulations to LinkedIn, once again, on delivering great fourth-quarter financial results.  These outstanding results continue to demonstrate the fact that the ever-growing disparate nature between “business cloud” and “consumer cloud” which we wrote about here previously.

While “Facebook fatigue” starts to set in for many users, LinkedIn’s membership continues to swell at an incredible pace.

Facebook Fatigue:  “About 27 percent of Facebook users – and 38 percent of those ages 18-29 – said they plan to spend less time on the social network this year, and 61 percent have at one time or another taken a “Facebook vacation” lasting several weeks or more.

Of course Facebook’s overall user base of over 1 billion and revenue in the $5 billion territory dwarf’s LinkedIn’s numbers in the same categories but the viability of each companies business model is what separates these two cloud ‘social’ companies.

linkedin logo

LinkedIn Q4 2012 financial results:

  • Revenue jumped 81 percent to $303.6 million
  • User base rose 8 percent to 202 million

Almost all of Facebook’s revenue is based on advertising, while LinkedIn is a nice blend of advertising and subscriptions.  Advertising only is not a viable long-term business strategy.  It’s just too simple for advertisers to switch from one marketing medium to another and they do it all the time.  Whatever is the ‘hot’ advertising deliver platform at a particular time is where the money will surely flow.

As LinkedIn continues to establish itself as the most popular site for job seekers, the company is selling more subscriptions to help recruiters find the right people. Revenue from talent solutions, Web-based software that recruiters and employers use to fill jobs, climbed 90 percent to $161 million, accounting for 53 percent of total sales.

Bait-and-switch?

I personally am a big fan of LinkedIn and absolutely love their services however it’s also best to be cautious not to rely on just one such service.  Why?  Because we’ve seen it thousands of times previously where a once great service starts to let pure greed take over the corporate culture from what it once was.  When a company starts to focus on pure profit and forgets about delivering a quality product or service then they are doomed. In the case of LinkedIn it might be starting with this:

Starting in the second quarter, the company will raise subscription prices for products targeting recruiters and promoting job openings.

Of course LinkedIn has every right in the world to charge whatever they wish for their services but they should be careful to avoid the ‘How Netflix Lost 800,000 Members, and Good Will‘ effect.  What Netflix did was a classic bait-and-switch.  They on-boarded millions of loyal, and mostly satisfied, users and then arrogantly raised prices on their services.

Subscribers revolted and many dropped the service. The plan further tarnished a once widely respected Internet service that had already been wounded by an unpopular price increase in the summer.

Netflix temporarily lost yours-truly as a customer.  On a side-note, I admire Netflix mostly for their outstanding corporate culture.  View this slideshow if you want to learn more about the Netflix Corporate Culture.

I’m certainly not saying that LinkedIn is in danger of losing users due to this price increase but it’s always wise not to bite the hand that feeds you.

Fads

Just for fun I took the 2 year stock chart from Yahoo Finance and added today’s projected closing price of nearly $150 per share to the far-right portion of the chart.  As you can clearly see LNKD investors are certainly pleased with that they didn’t listen to all the ‘Cloud Is A Fad’ nay-sayers.

linked stock price 02 08 13

In summary, and in the true #CloudIsAFad spirit, I guess I will close by sarcastically pointing out that LKND on pace for over $1 billion annual revenue (~$16B valuation), CRM on pace for over $3 billion annual revenue (~$24B valuation) and even FB with over $5 billion annual revenue (~$69B valuation) are all just Fads.  #SaaSIsAfad.

You can read the entire article on ‘LinkedIn Profit, Sales Beat Estimates After Membership Swells’ here:  http://www.bloomberg.com/news/2013-02-07/linkedin-xxx.html?cmpid=yhoo

 

Governance Gone! Wild!

While to some the acronym, ‘GGW’ might conjure up beautiful visions of fancy tour buses traveling the country capturing everything in sight on video for the whole world to see (as long as you pay the $9.99 per DVD, or opt for the $19.99 for full-DVD collection, or get their online subscription for $9.95 per month — or whatever it costs), I have just witnessed a different version of ‘GGW’ that is anything but beautiful.  In fact, ‘Governance Gone! Wild!’ is down-right scary!

I just attended several days of the Dreamforce 2012 conference in San Francisco and, as always, I was impressed with the innovation, which is clearly evident at these events.  I was impressed with the creativity of all the Software as a Service (SaaS) applications available built upon the Force.comheroku and/or other Salesforce platform services.  There were apps for this, and apps for that, and apps that work with other apps, and integrated apps.  In fact I’m on “app-overload” right now and tonight, instead of sweet sugar plums dancing through my head, I will most likely have a nightmare about all the possible lack of governance issues that are not being addressed in this quickly-evolving ‘cloud’ environment.  It’s truly like the Wild West!

This is not to say that these SaaS application vendors have overlooked governance issues completely.  In fact I suspect many of them take these items seriously and have built their respective solutions accordingly.  However, I can tell you what is an obvious generalization is the main pitch-points in these solutions is (1) easy user experience with a simple, familiar web-interface and (2) ability for organizations to self-manage or re-configure solutions without the need for costly professional services or software development.  These are not bad pitch-points in the least but what I must say is that conversations seem to rarely dig too much deeper than the surface of some point-and-click functionality and a demonstration or two.  I admire these vendors for their passion to solve very specific needs for enterprise customers and I’m invigorated with their energy to quickly have their Killer SaaS app deployed and being utilized by their customers to improve operational efficiencies.

Yet, as I put myself in the shoes of the SaaS vendor the last thing I would want to do is possibly slow down the sales cycle by bringing up governance and organizational readiness topics such as policies, processes or people that wasn’t directly related to my particular technology.  These topics are somewhat related to the technology but it’s more about the organizational readiness by the customers themselves.  We must remember that these applications are promoting their solutions to enterprise organizations, not consumer.  Therefore, I would like to give one specific example of what caused my “Governance Gone!” nightmare.

 

Wild! 

As seen below in the photo below (not to the left), Salesforce.com introduced their new “marketing cloud”.  At the Dreamforce conference they setup an example of the ‘Dreamforce Social Media Command Center’.  They had a full-time agent at each of several work stations.  Each of these work stations was monitoring a different social media feed.  One each for Facebook, Chatter, Twitter, LinkedIn, YouTube and maybe even a few other social networks to provide an example of a Social Media Command Center and how this could be a reality within your particular organization.  As I saw this incredible activity of feeds, tweets, #hashtags, likes, posts and other real-time social interaction – this is where it really struck me about Governance (or lack thereof in this scenario).  It was Wild!

These are the types of things I was thinking to myself, not from a technology perspective itself, but rather ‘are these people considering the following types of items’ before going buck-wild to immediately implement this type of Command Center within their own organizations:

  • People:
    • Since these are mostly real-time conversations and, naturally, the business wants to represent themselves professionally, what type of special training will be required for this new type of social media command center operator?
  • Policy:
    • As we all know, social networks are filled with people that sometimes spew nasty, disgusting or plain hateful messages because they think they are completely anonymous to the world.  In these cases what is the organizations policy about any responses, deletion of messages or any other action?
  • Process:
    • With this gluttony of electronic information overload from such a wide ranging variety of sources, in different formats and with such a diverse contextually meaning, what is the process to accurately analyze the data?  After all, I would imagine that video-’gamers’ are quite active on these types of social networks and “rad”, “bad” or “bitchin’” don’t quite translate into the true meaning if you just consider the official dictionary definition of a word or phrase.

In summary, in our zeal to innovate and offer powerful, useful, as well as, truly remarkable technology, which is going to revolutionize the way we do business, we should not be in such a rush to not consider and overlook an organizations preparedness from a governance standpoint.  Great technology is not always good enough.  If your organization decides to not consider well-thought out governance plans then the “Governance Gone!  Wild!” bus may be paying you a visit sooner than expected!

Crossing the ECM/Capture Chasm – ‘This is the Renaissance’

Marc Benioff, Salesforce.com CEO, has been famously quoted on his opinion of cloud computing in terms of saturation-point, as well as technology innovation, for a viable business model.

“This is the heyday of the Cloud. This is the Renaissance.

We are in the Great Time. ”

…and he continues…

 “So we’re still at the very, very beginning.

We are in the first innings of Cloud Computing.

This is still the Renaissance. ”

While this is just one man’s opinion I personally happen to think he is absolutely correct.  We truly are in the first innings and, in particularly, as it relates to Capture and ECM moving to the cloud.  Future innings have yet to be played.  In this baseball analogy the convergence of old-school “traditional – behind the firewall” technology and new “innovative – cloud collaboration/mobile” technology are on a crash course of epic proportions.

Then on 9/6/2012 as Jeff Bezos, Amazon.com CEO, was proudly introducing his companies’ new Kindle Fire tablet device he was quoted as saying the following:

“We want to make money when people use our devices, not when they buy our devices.”

 

Salesforce.com reinventing themselves

Let’s take a high-level look how Salesforce.com’s business has changed over the years since the company started business in 1999.  They started with their (1) core Customer Relationship Management (CRM) service and then they (2) offered a development platform.  Next, they (3) built an ecosystem of development partners, and then they created sales and marketing programs to (4) resell third-party as well as additional Salesforce.com branded-services.  All along, they have been strong in their advocacy of (5) using mobile devices so they have provided pre-built applications and also development tools for integrators to create mobile applications for Salesforce.com.

 

Amazon.com reinventing themselves

Just like Salesfore.com reinventing themselves; Amazon.com has also done a great job on continually enhancing their business and the formula to success, at a high-level, is amazingly similar.  First, Amazon.com had their (1) core business of electronic commerce selling books and music items.  Next, they (2) built a platform and exposed their product information via Web Services.  Once they offered these Web Services, third-party web sites could integrate and (3) sell products directly from the Amazon.com online catalog with Amazon Affiliates.  Amazon realized their Web Services were world-class and their data center infrastructure could be additional sources of revenue so they started offering Amazon Web Services (AWS) for software developers to (4) create new applications other than just e-commerce.  And, of course, with the recent aggressive announcements with Kindle Fire, Amazon has made a huge investment in the future of (5) delivering content, over the long-term, to mobile devices as a financial business model, not when customers purchase the hardware itself.

 

Cloud Capture Convergence

This is not to say that this convergence of Traditional technology and Cloud technology is necessarily a bad thing and, in fact, can be quite good.  For example, ECM systems (or Systems of Record2) have a long history of positive results if implemented and governed properly.  There really is no question about this, however the truth of the matter is that with this legacy comes baggage which slows down technology innovation.  Baggage just means that there is an existing customer base that you must support and there is a feature improvement list gathered from customer feedback that is probably quite extensive.  Also, from a software architecture standpoint, the software was not engineered with modern capabilities such as mulitenancy, web services connectivity or thin client design.

However, on the complete other end of the technology spectrum you have a whole host of cloud-based, Software as a Service (SaaS) applications (or Systems of Engagement) which are highly collaborative with these modern capabilities, yet most of them lack the most basic capability in terms of enterprise-type features that have proven ROI over the years.  One of the most basic productivity-enhancing and cost-reducing capabilities missing, of course, is automatic Data Capture.  The cost of your investment is really easy to calculate just with the number of labor hours that can be recouped simply by eliminating manual data entry.  I admire these companies of being so forward-thinking that they overlook the obvious.

 

The formula to success is rather obvious

So what’s the point of me pointing out these bold comments by these CEO’s from some of the more successful cloud companies?  The point is that both Amazon.com and Salesforce.com have quite similar business models now, yet they were born very different companies as their core business.  These companies are quickly transforming into “services” companies.  Both of these companies have fully-embraced cloud as a business model, not just a casual interest, or a fad that will fade away.  Both companies have built amazing technology and integration platforms for developers to quickly and easily create powerful applications like never before.  Each company has created two of the most thriving and robust ecosystems in computing history with partners gladly and enthusiastically promoting solutions built on these respective platforms.  Then one of the newest similarities of these two successful cloud companies is their absolute focus on using mobile devices as a delivery method for their content and services.

 

The application of the future

So now for my own bold prediction.  As these cloud applications evolve they, too, will start to incorporate core functionality such as automatic Data Capture themselves directly into their applications or mash-up software applications will be created that deliver the realization of best-of-breed solutions.  Let’s use two famous companies and describe the future of a best-of-breed business productivity software application, with specific details.  First, in the “traditional/behind-the firewall” ECM business let’s take Microsoft SharePoint Server.  Unquestionably one of the most popular ECM systems in the industry and very ‘disruptive’ since Microsoft starting sincerely promoting SharePoint as more of a true ECM solution instead of just a collaboration tool.  Secondly, in the “cloud/collaboration-mobile” business let’s take a look at Box.  Box is also a leader in their respective market space of cloud storage with high-security and easily accessable content via mobile devices.  (Admittedly, Box is a much smaller, newer start-up company but a leader none-the-less.)  ‘Where am I going with this vision?’ you might be asking yourself since you might be aware of Box’s infamous bashing of SharePoint as seen below in this billboard advertisement.  Well since these early days the rhetoric has been tempered quite a lot, in my opinion, and might I even dare to say that using each products respective strengths can help achieve the ultimate in business efficiency?

From a pure data capture and ECM standpoint, SharePoint has features that Box simply does not offer.  This includes a robust metadata framework, this also includes enterprise search and managed metadata just to name a few features that inhibit Box from serious contention if an organization requires these traditional ECM capabilities.  However, SharePoint has its own deficiencies and right now one of these areas is poor support for mobile devices.  Box absolutely excels in the area of mobile application development because their service was built with a “mobile first” mentality.  So what if we could blend the positive qualities into one to provide users with the functionality they desire on mobile, yet still adhere to traditional ECM policy and governance with metadata support?

The answer is “you can”.  Through the beauty of modern integration techniques users can now view, manage and edit documents stored in Microsoft SharePoint through the Box user interface on mobile devices.  Just imagine the enhanced productivity that can be achieved through a highly usable experience for the users themselves but also the piece-of-mind that your organization is not sacrificing critical features necessary to run an effective business.

This is the vision of the application of the future.  Remember, “we are in the first innings – This is the Renaissance.  We are in the Great Time.”

 

More information:

1Geoffrey Moore:  “Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers” (amazon.com paperback)

2John Mancini:  “A future history of content management” (slideshare.net presentation)

Your killer SaaS app


Is your SaaS value proposition convincing enough without automatic data entry?

Imagine you’ve just created the next ‘killer’ Software as a Service (SaaS) app and you are absolutely convinced your new software service is going to revolutionize a particular industry or solve a significant pain point for organizations all over the world.  You create some compelling sales and marketing materials with a heavy emphasis on Return on Investment.  After all, you have conviction that your service is going to help businesses decrease operational costs, improve worker productivity and provide much better access to information which all translates to achieving tangible payback on your customer’s technology investment.

So you’ve done your research, you’ve developed the software application; you created awesome marketing materials, assembled a sales team and created a terrific support structure but for some reason your totally revolutionary SaaS application just isn’t selling as well as you had hoped.  Do you think that you might be overlooking a feature or function that is so fundamental to providing tangible Return on Investment that customers simply cannot so “No” to immediately deploying your innovative solution?

Time is money

I might really be overstating the obvious but employers pay employees to work, not do data entry.  Whether your core expertise is in accounting, customer service or mechanical, your employer pays you to spend a majority of your time focusing on your respective skills.  However, organizations often overlook the total amount of time that is consumed with such tedious activities such as manually entering data from a bank statement into an accounting system. Or how many total hours field service technicians are spending collecting and entering work order data into an ERP system.  These are real, tangible costs that the organization is paying.  This directly relates to unrealized business productivity and effects the financial bottom-line significantly.  Time is money and time utilized manually entering data into systems is, quite frankly, a waste.

Use cases for Information Capture

Let’s take a look at a few use case scenarios and focus on Mobile Information Capture, specifically, since there is a lot of interest in this area and there is an abundance of data to support that this is one of the greatest opportunities to achieve quick return on investment.

First, consider the industry of Field Service technicians.  According to a November 2011 study by Dave Wood of Harvey Spencer Associates (HSA) entitled “A Study of the Mobile Capture Marketing in the United States”, he cites DF Blumberg Associates as sizing the Field Service market at $225 billion in 2011 and growing to $500 billion by 2018 with nearly half of the 3 million workers using mobile productivity solutions by then.  Since a good majority of these mobile devices will most likely be equipped with a camera this translates directly into a great opportunity to provide these workers with the ability to nearly effortlessly snap pictures of objects such as work order signatures, checks for payment, assessment photos or even invoices and then automatically have the data extracted from these images to populate database fields in a Field Service SaaS application.  Just to name a few of the Field Service benefits for Mobile Capture could be enhanced customer service, the ability to realize the payments quicker and, of course, improve overall worker efficiency.

In a second use case scenario, also taking data from the same Mobile Capture Market survey, consider the Transportation industry.  For the survey, they focused on Long Haul Trucking.  They found that this particular market featured 1.9 million trucks and 1.7 million deliveries daily. The research showed that each delivery generated a packet of documents that must be captured for invoicing, with an average of 5 pages per packet.  This translated into a total capture volume of this market of 8.5 million documents PER business day.  The types of items that needed to be captured will slightly vary depending on the particular trucking organization, yet generally documents such as Bills of Lading, Trip Sheets, Scale Tickets and Vehicle Expense Receipts were common among most organizations.  After some calculation of the projected number of drivers that will have access to dedicated scanners or multifunction devices, the survey predicted that approximately 400,000 drivers will have only smart phones as their primary capture device. This presents a terrific opportunity to capture all these documents DURING the trip instead of waiting until the trip is complete which could be days, or even weeks later.

The last use case scenario shared by the HSA survey was general Capture to Cloud.  This was predicted to be, by-far, the largest growth opportunity for Mobile Capture and anyone would be hard pressed to argue this prediction.  With the prediction of 2 billion smart phones by 2018 and cloud storage vendors competing like crazy for market share, it only stands to reason that these factors are going to contribute to huge growth for Capture to Cloud applications using mobile devices.

Bringing easy to use, yet highly-effective Ubiquitous Information Capture into the mix

Now that you have your killer SaaS app ready for prime-time   Your story is polished and you are earning business because your SaaS application is addressing customer pain points such as decreasing operational costs, improving worker productivity and providing better access to information.   You can prove, without a doubt, a tangible Return on Investment with reduced labor costs associated with manual data entry and you recognize the unbelievable potential in the Mobile Capture market, so the question begs, ‘what do you do to make your SaaS application even more appealing to potential customers?’

‘Add Data Capture to you SaaS’ is the answer.  It’s really that simple.  The technology has evolved over the past couple years so that the technology offers extremely advanced features and functions that are completely transparent to the users themselves.  This helps achieve a pleasant user experience which helps drive adoption of the solution among users.  Additional, the behind-the-scenes technology is performing tasks traditionally done by humans so the processing is highly effective from an automation standpoint.  The user simply snaps a picture and this technology can automatic recognize the type of document and can intelligently extract all the information from the image.

With this new Data Capture capability not only will your SaaS application provide a much more elegant user experience but you can absolutely guarantee cost savings to your customers with the quantifiable amount of time that is recouped by not having users do manual data entry.  The benefits of your SaaS can be incrementally increased with this new Data Capture capability.  Overall you can offer a truly appealing ROI story before you even being to discuss all the wonderful capabilities of your particular application.  The additional features are just like icing on the cake to solidify the sale.

Total Hours x Dollars per Hour = Tangible Cost Savings

This helps achieve a few things in your favor as the preferred software vendor of choice:

  1. Encourages your customers to make a quicker decision on purchase and implementation of your solution because every day they choose not to make a decision they are squandering money and resources
  2. Helps differentiate your application from competitors with value business functionality that makes the user experience much more enjoyable and helps drive higher adoption rates
  3. The likelihood of selling more subscriptions to your customers is higher because they can justify adding more licenses due to the fact that they have proven ROI

So, are you ready to take your killer SaaS app to the next level with Ubiquitous Information Capture?

Frankie-the-frustrated worker dealing with lack of direct Line of Business integration and Manual Data Entry

For this particular blog post I would like to use a light-hearted approach to a major problem.  The problem is lost productivity and user frustration around populating data into Line of Business applications via Manual Data Entry versus Automation.

To illustrate my point let’s take one of the most popular Software as a Service (SaaS) applications ever, Salesforce.com.  And while the application is absolutely simple to use and easy to manage, what lacks is the ability to take information from paper and/or an image and put it directly into Salesforce.com database fields.
1.  Let’s take a moment to go through the steps to import data into Salesforce.com and follow the steps Frankie-the-frustrated worker must take to get this task done.
2.  Commentary of Frankie-the-frustrated worker:
“Frustrating!  Step 1 of 7????”
3.  Commentary of Frankie-the-frustrated worker:
“MORE FRUSTRATING!!!  WASTING TIME!!!”
4.  Commentary of Frankie-the-frustrated worker:
“MORE THAN EVER FRUSTRATED!!!!!!!!!  
WASTING TIME, MONEY, AND ENERGY!!!!!!!!!!!” 
5.  Commentary of Frankie-the-frustrated worker:
 “FORGET IT!!!!!!!!!!!! 
 THIS WILL NEVER END!!!!!!!!!!!!!!!!! 
 WHY IS IT LIKE THIS????? 
 ISN’T THERE AN EASIER WAY????????????????” 

Education and modern technology reduce Frankie’s frustration

Are we still living in the stone age when it comes to data entry into computer systems?  Isn’t there a more efficient method to automatically populate data in your software application instead of costly manual data entry?  It’s 2012 after all, not 1912.  Why do we accept such primitive methods of data entry?
Answer:  Because we need to educate the market on the capabilities of capture technologies.  We also need to strive to make integration and usage as easy as possible.  If you build it, they will come.
Eliminating Frankie’s frustration with Ubiquitous Information Capture
Realizing the dream of Ubiquitous Information Capture directly into applications is much easier than you might think but we must educate the market on current capabilities.  The idea is simple, yet highly effective.  Embed the ability to take photos with a smart phone and/or capture paper documents from a scanning device directly into your software application.  Note that all I’ve done in the screen prints below is add a small icon of a camera and scanner directly into my CloudConnectMashup software application.
Now, I can offer my users a truly great user experience because contributing information is nearly effortless and removes pain associated with manual data entry.  This translates directly into reduced operational costs, improved efficiencies and an overall better work environment.
Think about all the lost opportunities to drastically reduce labor costs, most likely in the billions if not trillions of dollars, associated with manual data entry in just the use cases below:
  • Transportation applications with Bills of Lading, Proof of Deliveries, Trip Sheet or Scale Tickets
  • Field Service applications with Proof of Work delivered, Vehicle Identification Number, Work Orders or Assessment documentation
  • Contracts Management applications with Amendments, Terms and Conditions or License Agreements
  • Invoice Management applications with Invoices, corresponding Packing Lists or Proof of Performance
  • Sales/Contact Relationship Management applications with Business Cards, Agreements or Correspondences
Do you know a Frankie in your organization?  Do you have a story, good or bad, to tell?  We’d love to hear your feedback.

$4.3 billion for Ariba and reportedly $300 million for Vitrue (#CloudIsAFAD continues)

SAP Buys Ariba to Combat Oracle, Cloud Vendors

http://blogs.wsj.com/cio/2012/05/22/sap-buys-ariba-to-combat-oracle-cloud-vendors/?mod=yahoo_hs

Oracle Answers SAP Cloud Acquisition With its Own Deal

http://blogs.wsj.com/deals/2012/05/23/oracle-answers-sap-cloud-acquisition-with-its-own-deal/?mod=yahoo_hs

Oracle Is Starting To Look A Lot Like Salesforce.com

http://finance.yahoo.com/news/oracle-starting-look-lot-salesforce-160026902.html

Piece-parts vs. Solutions

A little humor before our message:

Why is the word “solution” so difficult for some to digest?  True, I’m sure the word means different things to different people but to me it’s very straight-forward.  Let me explain.

A “solution” is when the sum of parts collectively comprise a product or service that can be used or consumed without the need for additional parts.  A car, for example, is a “solution”.  Sure it needs gas and occasionally other consumable parts such as tires, oil changes or new wiper blades but the point-is that you can drive this “solution” off of the auto dealers lot ‘as is’.  As technology relates, a computer is an example of a solution.  It already has all the parts put together where you can go into your local computer shop and buy a computer, boot it up, and immediately begin using it.  The hard drive, video card are all integrated and the operating system is already installed.  All you do is some customization of your desktop and add services such as an internet provider or additional software packages.  Simple and easy!

This concept of ‘piece-parts’ vs. ‘solutions’ is the irony of “the cloud”.  Software as a Service (SaaS) applications are the dream of “solutions” realized.  To non-technical persons they would not think anything of all the ‘piece-parts’ that were put together to create something that you just ‘drive-off-the-lot’ as my car analogy in the previous paragraph illustrates.  And this is EXACTLY how it should be, in my humble opinion.  All the technology involved to make a solution should be completely transparent to users and they should not care.  It should just simply work.

I think far too often people fall in love with their ‘piece-part’ and think the world revolves only around their product or service when this is not true.

*Thinking to myself ironically* I guess Cloud Is A Fad and people won’t continue to demand “solutions”.  I guess ease of use and simplicity will never work.  Naw, never, not in a million years *more irony*.  Microsoft Windows with simple point-and-click functionality will never catch on.  Apple iPad’s with large touch screen interfaces and big buttons will never be adopted by the masses.  And, of course, “the cloud” will never be used in the enterprise because it’s just for personal use like Facebook and G-Mail.  It’s just a fad.

I guess the billions, probably even trillions, of dollars in total being spent on building cloud infrastructures and research are pipe dreams.  I guess all the really, super smart technology companies like Microsoft and Oracle will continue to sell traditional on-premise software and not have an aggressive cloud strategy eventually.  Wait, Microsoft introduced Office365 for cloud and Oracle’s Larry Ellison Reveals Oracle’s Public Cloud; Calls Salesforce The ‘Roach Motel’ Of Cloud Services.

It’s ON folks.  The opportunities within the emerging cloud marketplace are tremendous. Whomever delivers the winning formula of offering “solutions” which are highly-effective, yet easy to use and digest will win.  Plain and simple.  ‘Piece-parts’ will remain just that, ‘parts’ with unrealized true potential just like a hard disk drive has no value without software.  And software has no value without processing and storage.

 

Development Platform

Boy was that easy, simple and effective!

What is you you ask?  You are reading it right now.  Creating this web site with a highly-effective blog from WordPress , then adding a Content Management system from Joomla , then adding a testing/education application from moodle , and then adding a social portal from elgg  took me maybe a grand total of one hour time.  This is not to brag but rather to demonstrate the fact how far we have come regarding the great progress of offering simple, yet highly-effective point-and-click tools to make powerful applications.

This web site is an example of just this.  It cost me a grand total of the domain fee of ~$10/year plus one year of hosting at ~$60/year.  ~$70 total!  All the software is open source and free to use for non commercial usage.  A great deal, in my opinion.

Anyhow, I remember all that not long ago how I would have had to manually install databases and configure connectors and mashup applications.  It was doable but time-consuming and frustrating.  This ease of use allowed me to jump right into settings up this web site exactly how I want it to be from a functionality standpoint instead of dealing with all the technical details of getting everything working correctly.

I think this type of dynamic is what is going to be changing in the Information Technology world.  Traditional IT folks will need to become more agile on enhancing business processes or become more focused on creating useful tools instead of the details of software installation, patching updates and/or upgrades.  In other words, I can have my applications hosted in ‘the cloud’ where a service provider does all the low-level technical things that still need to be done, but I can channel my energy to more productive activities.

The idea of a Development Platform being so easy to use, yet powerful enough to be deployed for enterprise applications is here to stay.  It’s a way to easily jump start your path to efficiency!

What do you think?

CloudIsAFad.com is born

Whelp folks – Welcome to Cloud Is A Fad.com!

This web site is born out of the idea that a few of my friends share regarding “cloud computing”.  Often times we hear from non-believers, naysayers and doubters that “cloud computing” is just a passing ‘fad’ and will go away.  “No one will ever trust their sensitive information in ‘the cloud'” or “It’s just for personal use and it will never be embraced by enterprise organizations” is what they say.

“Ohhh realllllyyyyy???” is my typical response.  Ever use Gmail?  Ever use Facebook?  Google Docs?  All cloud.  Online Banking?  “No one will ever trust their financial information online”.  Ever buy something from Amazon.com?  Cloud.

So, long story short, this web site is created with an ironic spin to the notion that “Cloud Is A Fad”.  We invite your participation.