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Demand For 3D Printing Skills Is Accelerating Globally

Demand For 3D Printing Skills Is Accelerating Globally

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careeer start35% of all ads posted for engineering jobs in the last 30 days prioritize 3D printing and additive manufacturing as the most sought-after skill.

Wanted Analytics’ latest analysis of the 3D printing and additive manufacturing job market found that IT and management expertise were the second most common skill sets mentioned in ads seeking to recruit engineers.  Key take-aways from their study and the growing market for engineers with 3D printing skills are provided below:

Key Take-Aways

  • The number of job ads requiring workers with 3D printing skills increased 1,834% in 4 years and 103% when comparing August 2014 to August 2013.  The following graphic illustrates the accelerating growth of 3D printing and additive manufacturing expertise needs of employers over the last four years.

3D Printing Additive Manufacturing

  • Wanted Analytics found that the most in-demand jobs requiring 3D printing and additive manufacturing expertise include the following:
    • Industrial Engineers
    • Mechanical Engineers
    • Software Developers, Applications
    • Commercial and Industrial Designers
    • Marketing Managers – High demand for marketing and selling expertise as manufacturers, software and service providers look to launch new business models that capitalize on 3D printing’s many business advantages.
  • Manufacturing has the highest number of positions for 3D printing and additive manufacturing skills, with the following industries generating the majority of the jobs in this field today:
    • Other Computer Peripheral Equipment Manufacturing
    • Colleges, Universities, and Professional Schools
    • Tire and Tube Merchant Wholesalers
    • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
    • Aluminum Sheet, Plate, and Foil Manufacturing
  • Demand for freelance 3D printing and additive manufacturing expertise is flourishing globally.  Elance has an impressive 76,979 portfolio samples used by freelancers to promote their 3D printing, 3D modeling and additive manufacturing expertise.  There are 2,444 freelancers actively looking for 3D printing, 3D modeling and additive manufacturing projects, and 88 projects currently open.
  • Freelance exchange ODesk currently has 2,395 freelancers listed as 3D printing specialists and designers and 78 projects currently open.
  • Guru.com lists 367 freelancers with 3D printing expertise available and 180 open projects.
  • CAD Crowd has 3,760 3D printing freelance experts and provides a global map of their locations, which is shown below.

global map

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Must-See Sessions at Social Media Week, Sydney

Must-See Sessions at Social Media Week, Sydney

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Social Media Week, Sydney is just around the corner. It is the first time that the event has been run in Australia but the organising team, Simon Micarone, David Wesson and Will Ockenden have high hopes for it becoming a regular feature on the Australian conference landscape.

Running all week, from 22 September through to 26 September, there are a great range of sessions, keynotes and master classes to participate in. But if you are like me, you may need to ration yourself in an effort to learn but also continue delivering for clients. With this in mind, I have selected some of the must-see sessions and master classes that will impact not just the way that you think, but the way you carry on the business of social media.

Monday, 22 September:

Tuesday, 23 September:

 

Wednesday, 24 September:

Thursday, 25 September:

Friday, 26 September:

  • Keynote – Under the Digital Bridge (Venessa Paech). This will be awesome – especially for those of us who deal with trolls, ranters, ravers and other monsters in our audiences.
  • Living in the Culture of Participation (Panel). Want to know what it takes to make effective change? This panel will blow your mind. You have been warned.
  • Stay for the day. Ok – you may as well block out the whole day. There are some awesome sessions that you’ll want to immerse yourself in. And anyway, it’s Friday.
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10 Things We Want to Know About IoT

10 Things We Want to Know About IoT

Despite the overabundance of 'experts' in IoT, many questions about IoT remain unanswered. R “Ray” Wang and Richie Etwaru discuss unanswered "big picture" questions about IoT. 1) What type of utility will we derive from IoT? 2) When will we be able to derive that utility from IoT?

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10 Things We Want to Know About IoT - webinar recording

10 Things We Want to Know About IoT - webinar recording

Today Constellation hosted the webinar, 10 Things We Want to Know About IoT. Please find the webinar recording and additional digital IoT resources below. 

Despite the overabundance of 'experts' in IoT, many questions about IoT remain unanswered. R “Ray” Wang and Richie Etwaru address the critical questions that should be asked about IoT.

  1. How mature does IoT technology need to be before it begins to significantly impact consumers and business models?
  2. What impact will IoT have on consumers and business models?
  3. What types of connections between 'things' will be meaningful?
  4. What should we/will we do with all the data collected by these 'things'?
  5. How should businesses prepare?
  6. At what level of maturity is IoT technology?

and many more!

Internet Of Things Webinar

Resources:

A Framework to Humanize the Internet of Things Through Verbs by Richie Etwaru

Unanswered Questions About the Internet of Things by Richie Etwaru


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Weekly Recap - September 19th 2014

Weekly Recap - September 19th 2014

Time to try something new - tackling the highlights of the week in video - as they flew by me...

[Bear through the initial bad audio, the magic of Google Hangouts makes it better soon.]

Here are the events captured in the video:

  • SAP Cloud Deep Dive - my takeaways
  • Infor Inforum 14 - Day 1 Top 3 Keynote Takeaways ... read here
  • HANA Cloud Platform Revisited ... read here
  • Market Move - Cisco buys Metascale ... read here
  • Event Report - Infor Inforum 14 - Top 3 Takeaways
  • HP Helion Press Call with Saar Gillai and Marten Mickos
  • Progress Report - ADP shows great vision ... read here
  • Market Report - SAP acquires Concur... read here
  • Larry Ellison steps down as Oracle CEO - my takeaways
  • Friday Briefings with X-IO (Storage), Informatica DreamForce announcements preview, HyTrust (Security), CloudFactory (BPO) and Realm.io (Mobile DB)
  • Preview on next week - Workday Tech Summit and Wipro Analyst Day
 

 

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Progress Report - ADP shows great vision, delivers product innovation, now it needs to deliver adoption

Progress Report - ADP shows great vision, delivers product innovation, now it needs to deliver adoption

We were invited to ADP’s yearly analyst summit in their brand new Innovation Lab in the Chelsea neighborhood of New York. What was an empty floor plan back during my first visit in April this year – with only the blueprints giving an impression of what it would be, the space has turned into an impressive working facility with a mix of open space floor plan, huddle spaces and of course cafeteria and snack area. Unfortunately ADP sent the developers home for the day – would have been great to see the center in action, maybe something to consider for next year.

Over 20 analysts received a comprehensive briefing starting with CEO Carlos Rordriquez all the way to an update on ADP’s Research activity. ADP was smart to have a customer speak to us, too – giving a welcome change to vendor speakers but also a great validation point. 

Tough to pick the Top 3 takeaways – but here we go:
  • ADP has delivered – When I first saw the demos and mockups of ADP’s new interface and product architecture at the Meeting of the Minds (MOTM) conference this spring in Orlando, my (conservative) bet was 50 / 50 that ADP would deliver in September as promised. It’s simply too easy to show nice demos and mockups and then often too hard to build them in real software. I raised my confidence a few weeks later when visiting the Innovation Lab and talking more in detail with Roberto Masiero and Keith Fulton and their teams. Talking to some of the new hires and seeing talent and background my odds went up to maybe 80%. Often even very talented people don’t make dates. But after today’s briefings it’s clear that ADP has delivered to the vision and ideas of MOTM (what I called a front end renovation strategy back then) and delivered its new user interface, delivering new user experience with the interactive paycheck, and Benefits Enrollment this September. Both are only a start – but have good seasonal arguments for them – HR Tech is coming and Enrollment is starting for most enterprises. And naturally paycheck related innovation reaches most eyeballs in the ADP user community.

    What I missed back then – or wasn’t briefed on – I tend to belief the latter of course – is that the team took a platform approach to deliver the new applications. And already in April ADP published the platform to the community at developers.adp.com. This gave ADP more eyeballs and more validation, something always helpful for new platforms. On top of that platform ADP created a declarative Visual Design Language (VDL) to build systems – a good move to ensure consistency across products and developers. If all works ADP should pick up significant speed in the next quarters and deliver a very large number of new UIs for many / most of their products in 2015.  
CEO Rodriguez opens the analyst meeting
  • ADP doesn’t stop here – Beyond the new user interface, ADP plans to deliver innovations in Social HCM (mostly around Performance Management), very interesting Benchmarking capabilities (both in pilot today and coming 2015, my guess it at MOTM), Data Mashups of HCM and non HCM data for true performance insights (summer 2015) and predictive analytics capabilities (later in 2015).

    But even before all of the above, ADP will make available its Marketplace (again my guess is for HR Tech) – that will open up for partners and customers. We have seen a number of marketplaces being more quietly (SuccessFactors) or loudly (Cornerstone) launched – so this seems to become a trend. And it makes sense to lower integration and purchasing costs for customers, but at the same time increases the stakes of the game not only from a platform perspective, but also a commercial perspective (invoicing, payment are just a few examples). 
 
The ADP Lab is in good company as Masiero shows 

  • New Innovation keeps coming – As if the above wasn’t enough, ADP is also actively working on their next generation architecture. It has many very compelling and modern design characteristics like a global object model that will be kept in memory, using columnar database technology, fully declarative execution and forming a backend to the existing VDL UI. We need to learn more on that asap, but definitively one of the more innovative HCM architectures out there. And the ADP team seems to be already on the way – sharing size of the object model graph and access times (no surprise, superfast) with the analyst community. And with an open source first approach the ADP team has been able to build the next generation platform at impressive speeds. It was too early – or ADP didn’t want to share yet – what the first use cases will be, but definitively an area on which we will keep a key eye on. 
 
Deliverables and design principles of the new ADP UI

Tidbits


  • DaaS Opportunity ahead – It was good to catch up with Ahu Yildirmaz, the Head of the ADP Research Institute that prepares the monthly ADP National Employment Report, which turns out to be remarkably accurate. ADB is building on this capability with the launch of a new workfroce index next month, designed to provide a clearrer picure of the vitality of the U.S. workfroce and emerging trends. nd with ADP paying 1 out of 6 paychecks in the USA there is enough data to be more than ready for some benchmarking and further data related activities and services. Good to see some of those on the roadmap for 2015.
     
  • Global View makes progress – It was good to catch up on GlobalView with Stuart Sackman and David McIninch. The product makes progress and has interest of prospects, but is challenged with the innovation happening both in house and at long term partner SAP. Innovation is great but you need terra firma for global rollouts. And ADP partners with SuccessFactors and Workday, with the sound directive that the customer should always win. Certainly a good bearing but it will be good to see more of an ADP product / IP strategy for GlobalView, too, creating more differentiators over pure services competition in BPO.
     
  • Focus on global compliance - ADP is building on their global footpring and deep knowledge to position themselves as the leader in Global HCM compliance. For examle ADP supports the statutory rules and policies for Social Benefit managament in China, where work rules vary by city.
     
  • Analytics – but really dashboards – ADP is creating a promising dashboard product, that makes suggestions to guide the path of analysis, as demoed by Richard Wilson and Vikas Saini, it is tackling key performance questions and includes non HCM data – what most users want to see. It would be good to have the product making recommendations in even stronger voice, but a good start (see my take on ‘true’ analytics here).
     
  • Recruiting – shows the need for a new UI – Next we looked at Talent Management, and as briefed together with Bill Kutik and Steve Boese, not surprisingly a lot of Recruiting. The functionality is solid and good – but the user experience is a few years old. So it’s timely the new VDL powered UI is around the corner. I’d expect ADP to show mockups shortly. And then there is the alternative view, making the recruiter obsolete (read here) which isn’t reflected. I also think ADP needs ‘guerilla’ / viral ways to get Talent Management functionality into its customer base, as perception, access to decision makers and sales skills take a long time to develop.
     
  • A blossoming Innovation Lab – Next we met with Roberto Masiero and Keith Fulton, the two drivers behind the Innovation Lab. If ADP customer like the new products, these are the gentlemen to send the fruit baskets to (they will share them with their teams). I was impressed that they found time and energy – despite the remarkable 9 month only ingestion time for the Innovation Lab and new user interface – to come up with the next generation architecture. Being able to disrupt yourself while disrupting ADP is remarkable.
     
  • Compelling UIs are coming – Last but not least a sneak previews on the Talent Management UIs with Anna Carsen. They all look clean, easy to use and well thought through. And it should not be a surprise, as the team does robust usability and focus group testing. Good to see the progress. 

MyPOV


At Constellation we always have the customer in mind, and it looks like ADP is coming around and offering its customers (and prospects) a really compelling product vision and roadmap with early proof points coming this year. It makes sense for SAP to start with Paycheck and Enrollment related products, and most of the innovations will hit the masse of products in 2015 – which is going to be soon. Coupled with innovations around social, BigData and Analytics the future for ADP customers looks bright from a product direction.

But getting there is hard and while ADP is migrating a lot of customers, adoption of new products being the area of attention. And it’s one thing to build a great (the current approach) product or a solid product (Vantage) and then get it adopted. The slow adoption of the ADP Talent Management products may serve a warning. So ADP needs to get adoption of these new products right in its huge install base.

Last but not least we heard before the event that ADP veteran Michael Capone is leaving the company, to pursue a long term calling in the healthcare (software) industry. The team under Capone is very strong and this analyst day certainly showed that – but there is realistically a (small) cloud on the ADP horizon. It’s now to Rodriguez to find the right leader of the product organization that is currently in flight – not a walk in the park, but with a strong team certainly doable. We will be watching closely.


More on ADP
 
  • Site Visit - ADP's new innovation lab in Chelsea - read here
  • News Analysis - ADP announces Spin-Off plans for Dealer Services, sharpens ADP's focus on HCM - read here.
  • Event Report - ADP's Meeting of the Minds - ADP has made up its mind (almost) - customers not yet - read here.
  • First take - 3 Key Takeaways from ADP's Meeting of the Minds Conference Day 1 Keynote - read here.
  • ADP innovates with with verve and good timing – read here.
 
And  more on the importance of the paycheck for HCM:
 
  • Could the paycheck re-invent HCM – yes it can – read here.
  • And suddenly, payroll matters again! Read here.
 

 

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Marketing Led Sales – a new era for Hubspot and CRM

Marketing Led Sales – a new era for Hubspot and CRM

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Back in the beginning of 2013, I released a research report into the field of marketing automation. It investigated the challenges faced by marketers – from the explosion in digital and social channels to the newly emerging connected consumer and sought to map out the strengths of the various marketing technology vendors and their software offerings. In this report, I had identified that:

HubSpot looks to upset the apple cart.

With the focus on inbound marketing I predicted that HubSpot was well placed to become a future category leader.

At the recent INBOUND2014 conference, HubSpot announced a bold new offering – HubSpot CRM. Now, HubSpot, along with many other marketing automation platforms have long provided a simple CRM-style database – or tight integration to dedicated customer relationship management platforms such as Salesforce. But this feels different. It is different. It is FREE – as part of your HubSpot subscription.

But it’s not the pricing (or lack thereof) that feels revolutionary. It’s the fact that the HubSpot CRM reverses the priority of CRM – from sales first to marketing first. So now, rather than CRM and sales leading the customer process, HubSpot reaches out through its marketing platform to engage customers and then automatically connects them through to the sales teams seamlessly. The CRM platform works almost behind the scenes, logging your sales emails, phone calls and leads as they are made, not after the fact. And because it is part of the one platform, the marketing data that has been accumulated through various touch points, from web, to download, to webinar and so on, is also immediately available to the sales team as the relationship moves closer to conversion.

This new extension to an already powerful mid-market solution will strengthen what is already an attractive software platform. More importantly, it presents small and medium businesses with a compelling proposition – all in one, integrated sales and marketing automation.

And while this is a welcome mid-market addition, I am most excited about what this means for those organisations actively engaged in strategic digital marketing. Sure, most companies are shifting to digital, but those organisations with a mature approach to digital will be able to quickly deploy this kind of solution to create a competitive advantage. With HubSpot CRM, customers – and the customer experience – is more tightly connected to the sales process. It’s marketing led sales, not sales driven marketing. And this is a revolution that has been waiting in the wings.

Now I can’t wait to see what the next act brings.

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Simply Secure is not simply private

Simply Secure is not simply private

Another week, another security collaboration launch!

"Simply Secure" calls itself "a small but growing organization [with] expertise in usability research, design, software development, and product management". Their mission has to do with improving the security functions that built-in so badly in most software today. Simply Secure is backed by Google and Dropbox, and supported by a diverse advisory board.

It's early days (actually early day, singular) so it might be churlish to point out that Simply Secure's strategic messaging is a little uneven ... except that the words being used to describe it shed light on the clarity of the thinking.

My first exposure to Simply Secure came last night, when I read an article in the Guardian by Cory Doctorow (who is one of their advisers). Doctorow places enormous emphasis on privacy; the word "privacy" outnumbers "security" 16 to three in the body of his column. Another admittedly shorter report about the launch by The Next Web doesn't mention privacy at all. And then there's the Simply Secure blog post, which cites privacy a great deal but every single time in conjunction with security, as in "security and privacy". That repeated phrasing conveys, to me at least, some discomfort. As I say, it's early days and the team is doubtless sorting out how to weigh and progress these closely related objectives.

But I hope they do it quickly. On the face of it, Simply Secure might only scratch the surface of privacy.

Doctorow's Guardian article is mostly concerned with encryption and the terrible implementations that have plagued us since the dawn of the Internet. It's definitely important that we improve here - and radically. If the Simply Secure initiative does nothing but make encryption easier to integrate into commodity software, that would be a great thing. I'm all for it. But it won't necessarily or even probably lead to better privacy, because privacy is about restraint not secrecy or anonymity.
As we go about our lives, we actually want to be known by others, but we want those who know us to be restrained in what they do with the knowledge they have about us. Privacy is the protection you need when your affairs are not secret.

I know Doctorow knows this - I've seen his terrific little speech on the steps on Comic-Con about PRISM. So I'm confused by his focus on cryptography.

How far does encryption get us? If we're using social networks, or if we're shopping and opting in to loyalty programs or selected targeted marketing, or if we're sharing our medical records with relatives, medicos, hospitals and researchers, then encryption becomes moot. We need mechanisms to restrain what the receivers of our personal information do with it. We all know the business model at work behind "free" online services; using encryption to protect privacy in social networking for instance would be like using an armoured van to deliver your valuables to Bernie Madoff.

Another limitation of user-centric or user-managed encryption has to do with Big Data. A great deal of personal information about us is created and collected unseen behind our backs, by sensors, and by analytics processes than manage to work out who we are by linking disparate data streams together. How could SS ameliorate those sorts of problems? If the SS vision includes encryption at rest as well as in transit, then how will the user control or even see all the secondary uses of their encrypted personal information?

There's a combativeness in Doctorow's explanation of Simply Secure and his tweets from yesterday on the topic. His aim is expressly to thwart the surveillance state, which in his view includes a symbiosis (if not conspiracy) between government and internet companies, where the former gets their dirty work done by the latter. I'm sure he and I both find that abhorrent in equal measure. But I argue the proper response to these egregious behaviours is political not technological (and political in the broad sense; I love that Snowden talks as much about accountability, legal processes, transparency and research as he does about encryption). If you think the government is exploiting the exploiters, then DIY encryption is a pretty narrow counter-measure. This is not the sort of society we want to live in, so let's work to change the establishment, rather than try to take it on in a crypto shoot-out.

Yes security technology is important but it's not nearly as important for privacy as the Rule of Law. Data privacy regimes instil restraint. The majority of businesses come to know that they are not at liberty to over-collect personal information, nor to re-use personal information unexpectedly and without consent. A minority of organisations flout data privacy principles, for example by slyly refining raw data into valuable personal knowledge, exploiting the trust citizens and users put in them. Some of these outfits flourish in the United States - the Canary Islands of privacy. Worldwide, the policing of privacy is patchy indeed, yet there have been spectacular legal victories in Europe and elsewhere against the excessive practices of really big companies like Facebook with their biometric data mining of photo albums, and Google's drift net-like harvesting of traffic from unencrypted Wi-Fi networks.

Pragmatically, I'm afraid encryption is such a fragile privacy measure. Once secrecy is penetrated, we need regulations to stem exploitation of our personal information.

By all means, let's improve cryptographic engineering and I wish the Simply Secure initiative all the best. So long as they don't call security privacy.

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SAP strikes again - this time it is Concur - and the push into spend management

SAP strikes again - this time it is Concur - and the push into spend management

It was rumored for quite a while, that SAP may acquire Concur. After SAP acquired Ariba a few years back and Fieldglass this year (we covered earlier here) - it was only a matter of time till the company would likely acquire again. Earlier this week board member Bern Leukert talked about how SAP is #1 in users and #2 in revenue for cloud based applications. The 700M US$ that Concur has as cloud revenue run rate will certainly bring SAP closer to #1 Salesforce.com. And pushing it's user base to 50M creates certainly a nice cushion, should anybody try to go for SAP's crown of having the most cloud users. 
 
 
 
So let's dissect in our unique new analysis stile the press release (you can find it here): 
 
SAP SE (NYSE: SAP) and Concur Technologies, Inc. (NSDQ: CNQR) today announced that SAP’s subsidiary, SAP America, Inc., has entered into an agreement to acquire Concur. With more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries, Concur is the leader in the multi-billion market for travel and expense (T&E) management software. With Concur, SAP’s business network – the world’s largest – will transact more than US$600 billion annually, deliver frictionless commerce across more than 25 different industries and address annual corporate travel spend of US$1.2 trillion worldwide.
 
MyPOV - An impressive increase of market share for SAP in the corporate spend management market. But if you consider that with Ariba and Fieldglass and now Concur, SAP only addresses in total half of the corporate travel market, you realize it is early days in this market category. But SAP certainly is in the pool position now. 
 
The Concur board of directors has unanimously approved the transaction, which is expected to close in the fourth quarter 2014 or the first quarter 2015, subject to Concur stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions. The per-share purchase price of US$129 represents a 20% premium over the September 17 closing price, a 21% premium over the one month volume weighted average price per share and an enterprise value of approximately US$8.3 billion. The transaction will be funded from a credit facility agreement of up to €7 billion to cover the purchase price, target debt refinancing and acquisition-related costs. The company has undergone an external credit rating process with two agencies. The results of this process will be published shortly.
 
 
MyPOV - SAP paid a significant but not hefty premium (Fieldglass wasn't disclosed and Ariba was 20%, too - but 'cheap' at only 4.3B US$) - and let's not even calculate how long it could / would take to earn that amount back... but the real value of Concur is in its established interfaces to the many travel industry providers. If SAP wanted to compete in this space without Concur it would have had to spend a lot of time and money, and the former is in short supply for SAP in regards of moving to the cloud. 
 
“The acquisition of Concur is consistent with our relentless focus on the business network,” said Bill McDermott, CEO of SAP. “We are making a bold move to innovate the future of business within and between companies. With Ariba, Fieldglass and Concur, SAP is the undisputed business network company. We are redefining how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment. With the SAP HANA platform, the possibilities to innovate new business models around Concur and the network are limitless.”
 
MyPOV - McDermott puts it perfectly. I'd debate the relentless focus with the cumbersome presentation of the Ariba keynote at Sapphire in 2013 (read here) - but recently the focus has certainly gone up. As spend management has a number of 'higher ground' argument that are attractive to SAP:
  • Large user base - As SAP wants (and probably needs) to be a leader in cloud - spend management apps deliver the users. SAP would not have been #1 in users even before Concur if it had not acquired Ariba.
     
  • Stable revenue - SAP wants (and needs) cloud revenues. Spend revenue are stable and have less of a need to keep a salesforce around immediately as other SaaS software categories.
     
  • Little competition - The other SaaS player - including Oracle have little interest in the category - for now. So SAP can acquire avoiding bidding wars (remember Retek?).
     
  • Up sell - Spend management applications are an easy up sell / cross-sell item for the SAP salesforce. Same buyers, more SAP install at the customers.
     
  • Synergies - What companies spend needs to get funded and updated in an enterprises 's Financial and Purchasing systems. SAP owns many of these, so getting rid of an interface and let SAP own it is an intuitive synergy to decision. makers. 

“Concur shares SAP’s vision to help our customers ‘Run simple.’,” added McDermott. “Concur cloud solutions are network-based and enable context-aware applications for travelers to use on any mobile device. With Concur, people are given the professional courtesy and ultimate flexibility to make the choices that are right for them. No longer does cost control for companies have to come at the expense of people.”
 
MyPOV - This fits nicely with McDermott new mantra of 'simple'. And there is a lot of potential to reduce the administrative hassle of travel and expenses. If SAP can really late this simple - very good news. And I like the new People focus in the quote. Note, not employees, but people. 
But it is also proof that to create simple application a lot of complexity needs to be handled in the background. To get that right is the 'do or die' for the delivery of simple applications. 
 
“We have always been focused on making solutions for real customer problems, and with SAP we have a great opportunity to advance that mission,” said Steve Singh, CEO of Concur. “We are constantly seeking innovative ways to deliver the best customer experience and we’re excited about leveraging SAP technology, including SAP HANA as we scale globally.”
 
MyPOV - Nice and wow - already aligned with HANA, that was fast. But does HANA make sense for expense reports? We will see. 
 
Scaling the Business Network
Concur will expand SAP’s business network to reach into the US$1.2 trillion corporate travel spectrum.
Concur has developed an open platform to connect the corporate travel ecosystem, such as airlines, hotels and car rental companies in new and innovative ways.
 
MyPOV - We need to dig a little deeper here, tough to assess how much work has to be done here. 
 
With the addition of the corporate travel ecosystem to the Ariba and Fieldglass networks, SAP’s business network will have an opportunity to power transactions that drive more than US$10 trillion of global spend annually.
 
MyPOV - Staggering numbers. But then if SAP could make 1% of transactions (The Apple Pay few, just to throw that out) - it would make only 1B p.a. But there's is more money to be made than process / transaction costs, to be fair. 
 
With SAP HANA, Concur anticipates real-time network collaboration that will reshape the travel value chain, create new business models and eliminate needless complexity confronting millions of business travelers worldwide.
 
MyPOV - That's a nice vision - but much of travel operated through interfaces of highly proprietary systems. Try to book an airline ticket between 1 and 4 AM for a local airline and you may often be turned away. Maintenance time. 
 
SAP applications touch two-thirds of global commerce; combined with the power of SAP HANA, SAP is uniquely positioned to make the “real-time networked economy” a reality.
 
MyPOV - A lot has to happen for a real time networks economy. Start with software agents to transact business. Something - at least publicly - of the enterprise software vendors is working.on. And sometimes enterprises need to get comfortable with first. 
 
Achieving Significant Business Synergies
Together the two companies will have more than 50 million users in the cloud — more than any enterprise cloud company — and will be the second largest cloud company by measure of revenue.
 
MyPOV - Here we go. Has the SAP board incentives in that direction - similar like the 1B user ambition of the past?
 
Concur has a revenue run rate of more than US$700 million. With its global reach in every country around the world, SAP will provide a global platform to scale.
The majority of SAP customers do not run Concur, presenting a clear opportunity to scale as part of the SAP franchise.
 
MyPOV - I am sure there are some hefty returns on these two categories in the acquisition cost model. 
 
Only 30% of Concur customers currently run SAP, presenting a dynamic opportunity to introduce SAP innovations to the Concur install base.
 
MyPOV - That's a little tougher sale, SAP will have to create substantial synergies and can't at the same time risk the openness of Concur for non SAP back ends, unless jeopardizing potential future revenue. 
 
With one of the richest T&E data sets in the industry and the potential of the SAP HANA platform, Concur will deliver unique insight and analytics to business expense wherever it occurs.
 
MyPOV - Certainly some Data-as-a-Service plans and benchmarking ambitions get new spring in their legs. 
 
With the dominance of the mobile device in travel and entertainment, Concur will collaborate with SAP’s innovation leadership to build network-based, context-aware mobile applications.
 
MyPOV - Good synergies and the chance to sell a lot of mobile apps. And Apple is a 30% winner. Oh well. 
 
SAP will migrate all its corporate travel and expense management to Concur’s integrated solutions. [...]
 
MyPOV - This is a key and probably right decision. SAP is well advised not to have the situation it had for HCM products again. But a decision for SAP T&E customers to keep an eye on. Remember a year ago Expenses was SAP's showcase for cloud apps. Time flies in the cloud age. 
 

Implications, Implications. 

Let's look at the implications of this market move :
 

Implications for SAP customers 

There key scenarios are in play here:
  • SAP customer how don't use SAP T&E and ConcurGood news if they don't use competitor products. Wait and see what SAP will come up with and look at the ROI of a travel spend management and T&E project. If a competitor product(s) is used - then stay where you are. Monitor SAP process and announcements though.
     
  • SAP customers who use Concur Generally good news. Check what contacts say for material change in control. Ensure support and call SAP asap in case there are roadmap dependencies.
     
  • SAP customers who use SAP spend management and T&E appsTime to call SAP asap and get reassurances in operation. Secure potential roadmap items contractually. Monitor carefully what SAP ans to do and be proactive. Use ASUG and other user groups as a forum. 

Implications for Concur customers 

You have become a SAP customer now. See what SAP will do to reach out to you and chart your course. If unfamiliar with SAP time to join user groups and get familiar. If you have a Concur roadmap dependency secure it asap - best contractually. Better now than when the transaction has close. 
 

Implications for Partners 

For implementation partners the market has certainly become larger, so good news. But standing with the respective vendor may change and it's key to come to a strategic decision on the prospects of of this acquisition on your business.
If you are a fulfillment partner check your contracts. Keep or improve conditions. It is unlikely that SAP will try to change the economics immediately - but ultimately they may well try. Be prepared for both cases and balance your provide portfolio. 
 

Implications for competitors 

With Ariba and now with Concur, SAP has a jump start in spend management. It's a too large spend of your customers not to have a strategy. Of you had contracts and partnerships with Concur, and you want to maintain that status - then secure contracts. Check Material Control Change clauses. Look for early signals of SAP in regards of heterogeneity plans and ambitions. 
 

MyPOV 

A good acquisition for SAP that further builds it's lead in spend management and T&E with the Concur acquisition. I went over above why this is an attractive area for SAP. On the flip side many of these arguments are also the reason why competitors don't want to get in the game (yet). Margins are things. The question is where is a the best return of billions. There it is interesting that SAP finances the deal. No direct rancor for SAP customers asking for a return on maintenance. Good for investors as a 20+ growth in SaaS revenue for SAP is 'baked in' through Concur. Did Concur have a dominating position in the market? I leave this to others. 
 
 
A good first acquisition for sole CEO McDermott that gives breathing room for product development and quarter end pressure to make year over year SaaS revenue comparisons. 

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And more on overall SAP strategy and products:

 

  • Event Report - SAP SuccessFactors picks up speed - but there remains work to be done - read here
  • First Take - SAP SuccessFactors SuccessConnect - Top 3 Takeaways Day 1 Keynote - read here.
  • Event Report - Sapphire - SAP finds its (unique) path to cloud - read here
  • What I would like SAP to address this Sapphire - read here
  • News Analysis - SAP becomes more about applications - again - read here
  • Market Move - SAP acquires Fieldglass - off to the contingent workforce - early move or reaction? Read here.
  • SAP's startup program keep rolling – read here.
  • Why SAP acquired KXEN? Getting serious about Analytics – read here.
  • SAP steamlines organization further – the Danes are leaving – read here.
  • Reading between the lines… SAP Q2 Earnings – cloudy with potential structural changes – read here.
  • SAP wants to be a technology company, really – read here
  • Why SAP acquired hybris software – read here.
  • SAP gets serious about the cloud – organizationally – read here.
  • Taking stock – what SAP answered and it didn’t answer this Sapphire [2013] – read here.
  • Act III & Final Day – A tale of two conference – Sapphire & SuiteWorld13 – read here.
  • The middle day – 2 keynotes and press releases – Sapphire & SuiteWorld – read here.
  • A tale of 2 keynotes and press releases – Sapphire & SuiteWorld – read here.
  • What I would like SAP to address this Sapphire – read here.
  • Why 3rd party maintenance is key to SAP’s and Oracle’s success – read here.
  • Why SAP acquired Camillion – read here.
  • Why SAP acquired SmartOps – read here.
  • Next in your mall – SAP and Oracle? Read here.

And more about SAP technology:

  • HANA Cloud Platform - Revisited - Improvements ahead and turning into a real PaaS - read here
  • News Analysis - SAP commits to CloudFoundry and OpenSource - key steps - but what is the direction? - Read here.
  • News Analysis - SAP moves Ariba Spend Visibility to HANA - Interesting first step in a long journey - read here
  • Launch Report - When BW 7.4 meets HANA it is like 2 + 2 = 5 - but is 5 enough - read here
  • Event Report - BI 2014 and HANA 2014 takeaways - it is all about HANA and Lumira - but is that enough? Read here.
  • News Analysis – SAP slices and dices into more Cloud, and of course more HANA – read here.
  • SAP gets serious about open source and courts developers – about time – read here.
  • My top 3 takeaways from the SAP TechEd keynote – read here.
  • SAP discovers elasticity for HANA – kind of – read here.
  • Can HANA Cloud be elastic? Tough – read here.
  • SAP’s Cloud plans get more cloudy – read here.
  • HANA Enterprise Cloud helps SAP discover the cloud (benefits) – read here.
Find more coverage on the Constellation Research website here.
2012, 2013 & 2014 (C) Holger Mueller - All Rights Reserved

 

Tech Optimization Data to Decisions Digital Safety, Privacy & Cybersecurity Innovation & Product-led Growth Future of Work infor workday IBM SAP Oracle Microsoft Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer

Event Report - Infor's Inforum - It was all about verticals, now it is getting horizontal with vertical depth

Event Report - Infor's Inforum - It was all about verticals, now it is getting horizontal with vertical depth

I had the opportunity to attend Infor’s yearly user conference in New Orleans. The event was very attended with over 6000 participants and was filled with pretty strategic announcements for Infor, customers, partners and competitors. I previously blogged about my Day 1 Keynote takeaways – you can find them here.
 



Tough to make a call for the Top3 event highlights – but here you go:

1. Vertical vs Horizontal

For a long time Infor has positioned itself as the vendor that goes the extra mile to build vertical functionality. Sometimes the vendor even calls it micro-verticals, and Infor is starting to make a name for themselves in this area. CEO Charles Philips shared a conversation with a potential customer in real estate, who stated that the whole industry does not see much support from the other enterprise software vendors. And there can be no question that Infor has some very deep functional assets across the many vendors the company had acquired.

So far so good for Day 1- but then the Day 2 keynote add significant horizontal functionality plans to the agenda. Not only did Infor announce a new Financials product – Philips said they are the first vendor to do so in the last 10 years (well SAP may want to argue), but also a new HCM product, the two being bundled into the new CloudSuite Corporate product. Head of Product Soma Somasundaram went over the design principles for the new Financials product (press release here), and they are all good ingredients for a promising future. And to be fair, Infor executives during the keynote tirelessly described additional vertical features that are planned to be part of the product. So a key focus of upcoming R&D is going to be on horizontal functionality, but coupled with deep functional depth. Unfortunately Infor did not share a roadmap, so the audience was left with an unclear timeline of what will be delivered when. Certainly early days, but a roadmap will be key for Infor to flesh out.
 
Soma Somasundaram introduces new Infor Financials (thanks to @RalphRio for picture)

2, Cloud if you want

Infor keeps building on Amazon’s AWS as its public cloud partner, we covered the original announcement at the AWS Cloud Summit in San Francisco here. In the meantime Infor has complemented AWS with additional capabilities that the vendor needed to make its application portfolio run on AWS. During an executive Q&A COO Pam Murphy shared that all products can be up and running in 30 minutes. That is a far cry from the 2-3 minutes a traditional AWS AMI image sees, but very fast if you consider that Infor has to spin up quite complex product architectures to enable their products to ruin on AWS. And its superfast if you consider the times involving installing the same onsite. It’s likely the software download (or the unwrapping of the DVDs) will take longer than 30 minutes.

But despite all the marketing attention for CloudSuite Infor allows their customers do deploy all their products on premise as well. And while some may argue that this makes Infor not an ‘all –in cloud vendor’ – it’s the choice customers want. From the conversations with customers it certainly it is encouraging for them to see other customers starting to run CloudSuite on AWS, and their experiences will be key for the next wave of adoption. That said we didn’t see (yet) a live CloudSuite customer on stage (or missed it as I watched the Day 2 keynote between hotel, taxi and airport).

Scibelli introduces glide (thanks to @alanlepo for picture)

3. Ion is the (not so) secret (anymore) weapon

The key enabler in Infor’s application architecture is and remains its Ion product. We spend some time (never enough) with Massimo Capoccia, who leads the effort at Infor. And Ion has morphed from a file handler doing export, import and transfer of data across the Infor products into a veritable application server, which enables calling of APIs, direct data to multiple sources and allows for workflows to be executed on the data while it is in flight or to orchestrate the data flow. All that while being deployed both in the cloud (on AWS) and on premises (as customer choose). Infor did not confirm that Ion will move into a full PaaS when I asked, but the writing is certainly on the wall. If Infor gets programming language support and code management right, it will be a key area where its customers should pay close attention to, not only to integrate and run products from the Infor portfolio, but potentially build next generation applications on.

Tidbits


  • Hook & Loop keeps delivering – The creative team keeps delivering great looking user interfaces, I was particularly impressed by the new Glide touch UI. It’s now time to issue dates for the uptake of this new user interfaces for the existing and newly announced products. 
  • HCM also brand new - During the Day 2 keynote Infor’s Tarik Taman showed the new look and feel and a number of interesting features for HCM. Very much Performance Management focused, complemented by the new analytical capabilities Infor has acquired with PeopleAnswers. With the latter and Workbrain, Infor has two veritable assets to build an interesting and competitive 21st century HCM product. 
  • Data Science good, but...  – Analytics played a big role at Inforum, with two data scientists getting ample room in the keynotes, on each day. It is good to see Infor investing in this key area – as analytics make the difference in the future of enterprise automation. My main concerns here are on positioning and delivery – read on in MyPOV below.
  • Infor Ming.le may change gestalt – Infor is one of the vendors that have opted to make social capabilities a standalone and separate product. Social is not part of the platform right now – as the Infor products have been built on different technology platforms. But it runs in the cloud (on AWS) and creates value for the existing Infor applications. If it will become a more native platform capability with the new products the vendor announced today, will be interesting to see. 

MyPOV

A very good event for Infor and its customers. It is clear that the R&D effort goes to high return areas, where multiple / all Infor products can benefit from it investment wise. The new UIs, Ion, Infor Ming.le are shared investment. The same for the newly announced horizontal functionalities. With that Infor is changing its R&D investment strategy from leveraging great vertical functionality from acquired assets to (my speculation) building its next generation of product organically. Executives openly stated that intention for the new Financials product. This means massive investment into product and even though Infor has added well over a 1000 developers in the last quarters it needs to balance new product development with functional extension and demand in the existing product portfolio. And Infor needs to provide a roadmap when which functionality will be available. Maybe too early at Inforum, but better sooner than later.

On the analytics side it was great to see so much attention being given to Analytics. Infor calls it Data Science, but in my view the science term is misleading. Yes the quants are also called data scientists, but science has uncertain outcomes and uncertain outcomes are not something an executives making enterprise software decisions have an appetite for. We know smart people can move the needle in any analytical process – but through a time consuming professional services engagement. And that in my book is not the future of analytics in the 21st century, which is much more the multiple analytical model enabled business user running these analytics personally and without involvement of data scientists. Infor would not be the first vendor caught in the services trap – but likely also not the last one, too. And Infor certainly spend more time on Analytics than fellow competitors (e.g. SAP) did at their user conference, so overall good to have the focus on Analytics.
 
My colleague Alan Lepofsky has written a great event report on his findings here - don't miss it. 
 
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More about Infor
  • First Take - Infor's Inforum - Top 3 Takeaways from Day 1 Keynote - read here
  • Market Move - Infor runs CloudSuite on AWS - Inflection Point or hot air balloon - read here
  • Progress Report - Infor moves to the cloud and (micro) vertical flavor - read here
  • Inforum 2013 – Takeaways from the Keynote – Day 2 – read here.
  • Infor’s bet on microverticals – the good, the bad the ugly – read here
Find more coverage on the Constellation Research website here.

 

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