hybrid customer insight - data collection and analysis from on-premise and in the cloud
TRANSCRIPT
© 2010 Forrester Research, Inc. Reproduction Prohibited1
© 2010 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited
"Hybrid Customer Insight” Data Collection and Analysis On-premise And In the Cloud
Holger Kisker, Ph.D.
Principal Analyst
Forrester Research
© 2010 Forrester Research, Inc. Reproduction Prohibited3
1. Cloud Introduction
2. Why should you care about the cloud?
3. The cloud challenge of customer insights
4. Cloud changes business processes –based on customer insights
Agenda
© 2010 Forrester Research, Inc. Reproduction Prohibited4Source: Wipro Technologies (www.wipro.com)
What is cloud computing?
Cloud computing is:
A standardized IT capability
(services, software, or infrastructure)
delivered via Internet technologies
in a pay-per-use, self-service way.
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Business value
Source: July 2010, “The Evolution Of Cloud Computing Markets” report
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Level of sharing
Source: July 2010, “The Evolution Of Cloud Computing Markets” report
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Cloud computing business model taxonomy
Source: July 6, 2010, “The Evolution Of Cloud Computing Markets” Forrester report
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1. Cloud Introduction
2. Why should you care about the cloud?
3. The cloud challenge of customer insights
4. Cloud changes business processes –based on customer insights
Agenda
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0
50,000
100,000
150,000
200,000
250,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BP Virtualization Tools
Application Virtualization Tools
Middleware Virtualization Tools
Infrastructure Virtualization Tools
Dynamic BPO Services
Dynamic Applications Services
Cloud-based-Integration (CBI)
Dynamic Infrastructure Services
BPaaS
SaaS
PaaS
IaaS
Forrester‟s global cloud market sizing (US$ millions)
Source: April 21, 2011, “Sizing The Cloud” Forrester report
SaaS: $33b
SaaS: $78b
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Base: 1,900 to 2,438 software decision-makers
By the end of 2012, 45% of all companieswill be using SaaS (60% in 2013!).
SaaS
IaaS
PaaS
BPaaS
Cloud adoption accelerates in 2012
Source: Forrsights Software Survey, Q4 2009, 2010, 2011
“What are your firm’s plans to adopt the following software technologies?”
(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”
“planning to implement in the next 12 months,” or “planning to implement in a year or more”)
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Base: North American and European packaged software decision-makers at firms with 20+ employees
who currently use or are planning to use each application
“What are your firm’s plans to use software-as-a-service (SaaS) to
complement or replace the following applications?”
(Select one for each row)
25%22% 24% 24%
19%
11%14%
11% 11% 12%9% 9%
30% 33% 29% 25%26%
27% 21% 23% 22% 21%21% 18%
Complement with SaaS within 2 years Replace with SaaS within 2 years
SaaS first wave
(Current adoption: 20% to 30%)
SaaS second wave
(Current adoption: 15% to 19%)
SaaS third wave
(Current adoption: 14% or less)
25% to 50%
17% to 35+%Shooting star PLM: 11% to 34%
SaaS touches all business application segments
Source: Forrsights Software Survey, Q4 2011
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Cloud computing delivers many different benefits
“How important were the following benefits in your firm’s decision to use SaaS?”
(Respondents who reported “Important factor” or “Very important factor”)
Agility
and
speed
Cost
Base: 920 software decision-makers at firms who are using or planning to use SaaS
Source: Forrsights Software Survey, Q4 2011
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Perceived benefits of cloud computing are shifting from cost and speed to business performance
Base: North American and European software decision-makers who
are using or planing to use SaaS
“How important were the following benefits in your firm’s decision to use SaaS?”
(Percent of respondents that selected 4 „important factor‟ or 5 „very important factor) (Select one for each row)
Source: Forrsights Software Survey, Q4 2009, 2010, 2011
“Lower overall cost” “Improve business agility”
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“What are your firm’s plans to adopt the following software technologies?”
(Respondents who selected “Implementing, not expanding” or “Expanding/upgrading implementation”)
Base: Software decision-makers with 20+ employees
SaaS
IaaS
PaaS
BPaaS
Very large enterprises are using more cloud services than SMBs
Source: Forrsights Software Survey, Q4 2011
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“In [insert next year], what percentage of your software license spending will
go to the following types?”
Base: Software decision-makers
More flexible subscription deals cannibalize traditional software licensing
Note: Each survey predicts spending for the upcoming year.
Source: Forrsights Software Survey, Q3 2007; Q4 2008, 2009, 2010, 2011
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“How valuable does, or would, your firm find the following features in software license agreements?”
(Respondents who selected “Valuable” or “Very valuable”)
Base: 2,198 software decision-makers with 20+ employees
Customers are demanding more licensing agility
Source: Forrsights Software Survey, Q4 2011
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Cloud
licensing
Cloud users
demand more
flexible
subscription
models
On-premise
licensing
Subscription will
continue to
cannibalize
perpetual
licensing
Base: 2,198 software decision-makers with 20+ employees who use the
software categories indicated above
Customer preference will change future licensing
Source: Forrsights Software Survey, Q4 2011
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1. Cloud Introduction
2. Why should you care about the cloud?
3. The cloud challenge of customer insights
4. Cloud changes business processes –based on customer insights
Agenda
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Customer
Who is using the SW?
What is used?
How is it used?
Enforcement
Licensing
Enhancements
• Implementation
Service Provider
• Account Manager
• Help / Service Desk
• Auditing
Customer
Insights
Customer Insights Via Channel
Software
Company
© 2010 Forrester Research, Inc. Reproduction Prohibited20 © 2010 Forrester Research, Inc. Reproduction Prohibited20
Customer
Who is using the SW?
What is used?
How is it used?
Enforcement
Licensing
Enhancements
Customer
Insights?
Data Security
Compliance
Governance
CLOUD
Cloud Blocks Customer Insights
Software
Company
In Cloud Computing Customer Insights Need To Be
Collected Directly From The Customer
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Cloud changes channel dynamics
Traditional
Software
company
Solution
Partner
Technology
Partner
Value added
Reseller
Implementer
Customer
Cloud style
Service
Vendor
SaaS
Vendor
IaaS
Vendor
PaaS
Vendor
Telecom
Vendor
Customer
Cu
sto
me
r In
sig
hts
Customer
Insights
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1. Cloud Introduction
2. Why should you care about the cloud?
3. The cloud challenge of customer insights
4. Cloud changes business processes –based on customer insights
Agenda
© 2010 Forrester Research, Inc. Reproduction Prohibited23
Traditional SW Business Is Linear
Development (e.g. 1x per year)
Sales
Pricing & Licensing (e.g. 1x per 5 years)
Service & Support
Risk & Operations Mgmt
Planning Development Testing Shipment
Licensing Mainteance
RFI RFP Offer Signature
Implement FixesSupport
PacksUpgrade
Bus PlanRisk
AssessmentInvest Tracking
Traditional Software
Business:
• Linear Business
Processes
• One Process Starts
Over The Next
Process
• Discontinuity Favours
Business Growth
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Every Department Feels Some New Pressures From SaaS Adoption
Source: October 12, 2010, “Tech Vendors Are Only Now Realizing The Full Implications Of SaaS” Forrester report
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SaaS Requires Continuous Business Processes
Invent
Develop
LicenseDeploy
Support
Cloud
SaaS Software Business:
• Consinuous Business
Processes
• All Processes Run In
Parallel
• There Is No ‚Escape„
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SaaS Requires Continuous Customer Insights
Invent
Develop
LicenseDeploy
Support
Customer
Insight
Continuous
Pricing Models
Continous Portfolio
Planning
Who
How
When
WhatWhere
Continous Risk
Management
Continous
Support
Continuous
Sales
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Existing NONcloud
products and service
Transform your
product/business
Develop a new cloud
product/business
Two optionsfor each portfolio element
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Forrester‟s SaaS readiness assessment for software vendors
Tier 1 Tier 2 Tier 3
Develop a new product on a cloud platform.
Transform your product.
Simply change deployment.
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If you remember nothing else . . .
SaaS Changes The SW Business Dynamics3
Customer Insights Are A Cloud Challenge2
SaaS Requires Continuous Customer Insights4
SaaS Is The Biggest Cloud Opportunity1
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Thank you
Holger Kisker, Ph.D.
+49 (0)69.9592.9862
www.forrester.com
www.twitter.com/hkisker
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