Appirio

Thursday, July 23, 2009

NetSuite buys QuickArrow: Should we expect Oracle-style acquisition or a SaaS platform for small businesses?

Labels: cloud, CloudComputing, Force.com, netsuite, openair, oracle, quickarrow

Monday, July 20, 2009

Learning from our customers - ThomasNet

Learning from our customers: ThomasNet's migration to the cloud

Inspired by what Marc Benioff said at Structure 09 last month, we've begun a new series on learning from our customers. We are kicking off the series with Brian Makas, Manager of Business Intelligence at ThomasNet. Brian helped ThomasNet move sales, marketing, support and recruiting to the cloud over the past few years. ThomasNet is the leading online industrial marketplace and business-building site connecting buyers and sellers worldwide.

Brian is a frequent speaker on marketing and cloud computing. He spoke at a marketing ROI panel at Dreamforce last year and also presented the ThomasNet story (with us) at a recent salesforce.com executive event in Falls Church, Virginia. In his spare time, Brian is an NHL and UFC fanatic. He shares his thoughts on all four of his interests (marketing, cloud computing, NHL and UFC) on Twitter (@brianmakas).

What problem was ThomasNet looking to solve that lead to using salesforce.com?

We had two very specific problems to address: managing existing prospects and distributing new leads. For prospect information, we used to print out massive book directories that were created once a year. These were then mailed out to regional sales representatives who used that information for the year. It was a nightmare, as we had no centralized place to store prospect information and of course the information would get stale pretty quickly. When it came to distributing new leads, our previous process was based around a "fire and forget" mentality - after we distributed a new lead to a sales representative we really had no way to enrich that record, that is to add more contacts, activity history, etc. that we might acquire after it was first sent out.

In order to solve these problems, we evaluated a number of CRM solutions and salesforce.com's solution had a strong functional fit. The fact that Salesforce is in the "Cloud" was more of an afterthought at the time, but turned out to be critical. We have an independent sales organization; worse than just not being on a single active directory, each office has their own preferences for what computers they use and how they set up their network. Not only would it have been complex and expensive to rollout an on-premise application but the burden of maintenance (especially with an application that needs to be upgraded several times a year) would have severely limited our ability to focus on actual business needs.

What were the results of the rollout?

Once we rolled out Salesforce, our prospect management and lead distribution processes changed completely. Salesforce gives us one place to maintain our prospect and customer information and track all our touch points with them. This is incredibly powerful because we're all working from the same information, can get a full view of the customer and can eliminate inefficient manual processes like our annual prospect book creation process. One very tangible example of this was something that happened recently. I needed to filter all our prospects by a specific set of criteria and get it out to our reps in each region. In the past, this
would've been an extensive process starting with collection of data from multiple different silos, to the development of numerous Excel sheets used to segment data by territory and ending with hundreds of emails flying around to the sales reps. With Salesforce, which already includes all of the relevant information, I was quickly able set the criteria and create reports by region that I could send directly our reps. What would've taken weeks took me hours - start to finish. Salesforce's reporting and built-in filtering capabilities are a lifesaver, in this and many other instances.

One of the interesting things that happened within our company is that the success we had with Salesforce in Sales and Marketing became infectious. Other departments saw how successful the Salesforce effort was and were begging to be a part of it. I've done my fair share of server-oriented programming in my career and I've never been part of a project that people begged to be a part of! We now use Salesforce across many of our core functions including: Sales and Marketing, Sales Resource Helpdesk, Telemarketing, Web Solutions and Recruiting.

As we've expanded our use of Salesforce internally at different departments, we're able to close the loop in terms of customer interactions: "Web2Lead" forms / Force.com Sites / Telemarketing / Helpdesk / Updates from the Editorial team ... Nearly every time a prospect or customer is touched by a member of the ThomasNet team, it's documented in Salesforce.

Salesforce has helped us generate a lot of savings but it also enables us to do things that we couldn't have done before. A great example of this the careers page that you guys built for us Without salesforce.com, we couldn't have built that careers page. Like most of us, our recruiting manager already has a full plate, the last thing he wanted was more work and managing content on a website certainly falls within that category. What really made http://careers.thomasnet.com a success is that is it is not only an applicant tracking system, but also a content management system. What this means is that as our recruiting manager manages current openings, the magic of Force.com Sites not only takes this structured data and auto-populates the website but the applications to those openings are automatically associated as well. With this detailed information, our qualified resume submissions went up 5X and it's transforming the way we recruit.

What has been your experience with Force.com, salesforce.com's platform for building custom applications?

In server-oriented programming, you always had to worry about scaling, it wasn’t enough to know what the initial audience was, you had to predict what the audience would look like several years down the road, before development even started. With salesforce.com’s software as a service (SaaS) offerings, we can focus on the business problems first, rather than worry about servers, hardware restrictions, databases and networks. This reduces our development time because we can start small and work more iteratively with the business. This alignment significantly reduces upfront costs and time-to-market.

In addition, we're almost “forced” into using best practices by using Force.com. When I previously approached business problems, I often found myself forced to treat each development request as its own distinct project, while this approach often met the stated needs of that project, it ended up putting both code and data into silos which didn’t meet business needs as a whole. With Force.com, while it will allow you to build silos and there’s very little you can’t do if you’re willing to bend the rules, there’s often a simple, point and click solution that meets most of your needs. The standardization on Force.com helps us define better solutions because we’re working with common development practices and a common set of business objects and workflows.

The other thing that's cool about a cloud platform like Force.com is that it's always improving and we get more and more new capabilities. It's not like older platforms where you have to upgrade to get the latest functionality or apply patches to get the latest security. With Force.com, we're always on the latest and greatest version.

My advice to anyone who's looked at salesforce.com and discounted it in the past is that you have to reevaluate it again. With the addition of APEX Code, Visualforce, Force.com Sites and more, the salesforce.com of a year or two ago is barely a shadow of what the Force.com platform is today.

Which applications would you say are best and least suited to the salesforce.com platform?

There are a number of areas that I think are particularly well suited to Salesforce. First off, Customer-facing processes are an obvious place to start. Applications or processes that you're currently using to interact with customers can typically be moved to Salesforce with great benefits. Sites has changed my philosophy about what Salesforce is suited for. Other than massive data processing, I'm not sure there's much it can't do. Any situation that requires an interaction between web and company data is now also a good fit, with the new Force.com Sites technology. Related to that, situations where you're collecting information from your users and displaying it back to them are also great fits for Salesforce, e.g., customer surveys, applicant forms, etc.

The only application that isn't particularly well-suited is large scale data processing. Salesforce is not a datawarehouse, or I should say, not yet anyway.

Please detail any unexpected benefits and challenges you came across during your implementation:

Unexpected benefits include how easy it was to expand Salesforce to different areas based on need - lots of synergy in terms of data and training, and automatic centralization of our key information. I also noticed synergy in our tool development, for example, a de-duplication tool we created for lead management worked seamlessly with our recruiting application as well.

In addition, salesforce.com's AppExchange has been a lifesaver, allowing us to take advantage of generic de-duplication tools and lead nurturing applications as packaged programs rather than trying to build our own custom apps.

Unexpected challenges were around the limitations we faced having to follow salesforce.com's development methodology since it's very structured. In the long run though, this challenge is minimized and far outweighed by the benefits realized via abiding to these structures.

What were the initial concerns upon your rollout?

First thing people are afraid of is a loss of control. There are also worries about downtime, but quite frankly, it's much less so than in a traditional IT environment. As much as I’d like to believe our IT department would respond to any problem 24/7/365, without a platform like Saleforce, it’s very rare to have that amount of support.

What would you recommend to those who are getting started with a transition to Salesforce?

(1) Getting started - You must have well-defined problems with well-defined defined solutions. Then you can move on to solving data management problems.

(2) Do the right things - Start small, pick a specific problem and solve it. Don't worry about how big it needs to be, with Salesforce, size and scalability aren’t issues. Don't over-engineer, keep adoption in mind as you move along.

Many thanks to Brian for a lively and insightful discussion. We're excited about many more of these and learning from you, our customers! If you'd like to be a part of this series, please leave a comment below or contact me directly.

Labels: appirio, Customer_Voice, Force.com, salesforce.com

Monday, June 15, 2009

What Force.com Free Edition & Force.com Sites Mean for the Enterprise

Balakrishna Narasimhan

The Challenge
We've written before about the benefits of moving your application portfolio to the cloud. The benefits can range from cost savings and a higher level of innovation to strategic advantage in the case of business-critical applications. With the worsening economic conditions, the maturation of companies like Salesforce and the growing drumbeat of successes at large enterprises, more and more CIOs at large enterprises want to evaluate cloud computing.

Labels: Cloud Computing, Force.com, salesforce.com

Monday, May 11, 2009

Do your most strategic apps belong in the cloud?

Balakrishna Narasimhan

I've been in a number of conversations over the past few weeks where I've been asked which business processes or apps belong in the cloud.  There are obviously some technical considerations, but I'd like to focus on the strategic reasons for making the decision and how things have changed in the shift from traditional IT architectures to IT in the cloud.

Traditional IT department
In the past, the only way for a company to maintain control of their business process was to completely own the technology supporting the process.  The rationale was that a company's most strategic, differentiating processes are unique and therefore have to built by the company either from scratch or by heavily customizing packaged applications.  This also meant owning the entire technology stack supporting the process and the application.  So, while the intent was to create differentiated processes that were agile and differentiating, the reality has become that the technology stack is an albatross around the IT team's neck that prevents them from moving as quickly and as efficiently as they would like to.

The result is that while IT organizations are keen to support the business, they are unable to go much beyond providing basic services.  The solution to the problem of managing the entire stack was traditionally either hosted/managed server services or outsourcing, but each introduces its own problems.

Outsourcing
In the case of outsourcing, the enterprise gains cost savings but relinquishes control of their business process and has to adhere to the provider's "best-practice" process.  This clearly means that outsourcing can only be applied to commodity processes rather than any differentiating processes or processes where innovation is needed.  The IT team's role shifts to primarily vendor management with little ability to innovate or drive the business.

Hosted/Managed Servers
Hosting gets a bit closer to solving the problem because it reduces some of the IT team's pain in terms of managing infrastructure.  However, the IT team still needs to spend a lot of their time maintaining the application and the middleware stack, i.e., applying patches and bug fixes, implementing upgrades, maintaining integrations, etc.  In addition, the team also needs to manage their relationship with the hosting vendor.  So, again, the main impact is some cost savings but no real gains in terms of agility or ability to innovate or support the business.
IT department in the cloud
Cloud computing changes the decision process completely.  No longer do companies face a choice between relinquishing all control of their business process for cost savings or dealing with the high costs and complexity of supporting an entire software stack.

Platforms like Force.com and Google App Engine give companies a way to control the parts of the stack that matter most, the application and business process layer and abstract away the management of the infrastructure.  This means that the IT team can focus their energies on driving innovation and supporting the business.

A real-life example
In a past life, I was a partner at a major management consulting firm.  Since our business was our people, we believed strongly that our most critical processes were those that were related to managing our people, e.g., recruiting, employee performance management, compensation, project management, project staffing, etc.  The technology supporting many of these processes is available from outsourcers but we couldn't even consider those offerings because our processes were absolutely unique and core to our business.  The result was the that we spent significant amounts of money maintaining a brittle IT infrastructure that was great at running the business in a static state, but was difficult to adapt as we changed our business model, made acquisitions or entered new markets.

Fast forward to today at Appirio.  We run our entire business in the cloud.  A core part of our business is delivering professional services to our 150+ enterprise customers (and products to over 2500 companies).  We manage all aspects of our professional services business in a custom application running on Salesforce's Force.com platform.  The application is completely customized to our unique processes but runs in the cloud.  Therefore, we can quickly adapt the application as new needs arise and not worry about maintaining servers or managing infrastructure.  With no intervention from us on the infrastructure side, the application has supported our four-fold growth over the past year.  In addition, as we make changes to our internal organization structure or introduce new products or service offerings, we can make changes almost instantly.  Our IT costs less than a third of industry benchmarks AND we can run a better, more agile business.

That's why we believe that over time, companies should move not only their non-core processes but also their most strategic processes to the cloud!

Labels: CloudComputing, Force.com, Google Apps, PaaS, SaaS

Thursday, January 15, 2009

2009 Prediction - Rise and Fall of the Private Cloud

#6 in our series of 2009 predictions

2008 Recap

2008 saw massive hype around the concept of a “private cloud,” roughly defined as a adopting the technology and practices from public cloud providers for a single company behind the firewall. “Private clouds are the future of corporate IT” declared Gartner. “Private Clouds Take Shape,” gushed InformationWeek, citing the funding of companies like Elastra and Parascale. “Get off my cloud” said eWeek, questioning the security of public cloud environments compared to private clouds.

2009 Prediction

Here’s the rub: Private clouds are just an expensive data center with a fancy name. We predict that 2009 will represent the rise and fall of this over-hyped concept. Of course, virtualization, service-oriented architectures, and open standards are all great things for every company operating a data center to consider. But all this talk about “private clouds” is a distraction from the real news: the vast majority of companies shouldn’t need to worry about operating any sort of data center anymore, cloud-like or not.

The idea that somehow companies can use “private cloud” technology to offer their employees web services similar to Google, Amazon, or salesforce.com will lead to massive disappointment. Here’s why:

• Private clouds are sub-scale: There’s a reason why most innovative cloud computing providers have their roots in powering consumer web technology—that’s where the numbers are. Very few corporate data centers will see anything close to the type of volume seen by these vendors. And volume drives cost—the world has yet to see a truly “at scale” data center.
  
• You can’t teach an old dog new tricks: What do you get when you move legacy applications as-is to a new and improved data center? Marginal improvements on your legacy applications. There’s only so much you can achieve without truly re-platforming your applications to a cloud infrastructure… you can’t teach an old dog new tricks. Now that’s not entirely fair…. You can certainly teach an old dog to be better behaved. But it’s still an old dog.
  
• On-premise does not equal secure: the biggest driver towards private clouds has been fear, uncertainty, and doubt about security. For many, it just feels more secure to have your data in a data center that you control. But is it? Unless your company spends more money and energy thinking about security than Amazon, Google, and Salesforce, the answer is probably “no.” (Read Craig Balding walk through “7 Technical Security Benefits of Cloud Computing”)
  
• There’s no secret sauce: There’s no simple set of tricks that an operator of a data center can borrow from Amazon or Google. These companies make their living operating the world’s largest data centers. They are constantly optimizing how they operate based on real-time performance feedback from millions of transactions. (check out this presentation from Jeff Barr and Peter Coffee at the Architecture and Integration Summit). Can other operators of data centers learn something from this experience? Of course. But the rate of innovation will never be the same—private data centers will always be many, many steps behind the cloud.
  

There’s also something very suspicious in all this discussion of private clouds…. private clouds are advocated mainly by companies who make their money from selling or operating data centers, and risk losing their shirts as real cloud computing drives more and more computing onto shared infrastructure. I understand why these companies are reluctant to embrace true cloud computing: Imagine being the junior partner in IBM Global Services pitching a client to develop an application on Amazon, Google, or Salesforce. Not only are you taking money out of the pocket of your colleagues in hardware and software….. you are also taking money out of the pocket of your colleagues in professional services, since integration and app development are so much easier using on-demand platforms.

That’s not to say that there’s no place for the technology behind private clouds. In certain cases where it simply isn’t an option to utilize a public cloud, this technology can have a significant impact. But those use cases are few and far between, and the benefits to be achieved are insignificant relative to the benefits of moving to a public cloud. Here’s who should be thinking about private clouds:

• Cloud Providers: This is an easy one… companies that plan on being in the business of providing cloud computing capabilities to others need to think about how to effective provide their own cloud. But we’d argue that very few companies actually need to be in this business (e.g., we believe most on-demand BI vendors should be running on public cloud infrastructure).
  
• Highly regulated industries: Government regulation will always lag behind commercial application of technology. There will inevitably be instances where nervous politicians or policy makers write up requirements that can only be met through a private cloud.
  
• Companies in the process of moving to a public cloud: Of course, no company of any significant size can move its IT infrastructure to the cloud all at once. In fact, Appirio specializes in helping companies figure out what the right first step is away from their on-premise infrastructure. For the IT infrastructure that hasn’t yet moved, it definitely makes sense to think about how to use “private cloud” technology. But that means the private cloud is a temporary stop-gap, not the “future of enterprise IT.”
  

Implications for customers.
Of course any customer with a data center should be thinking about how to use the technologies behind “private clouds” to improve their efficiency. But this should be a minor element of your long-term IT strategy. The most important thing any IT department can do in 2009 is chart out a thoughtful plan to migrate significant portions of your IT infrastructure to the public cloud. Don’t let “private clouds” be a distraction from that goal.

Labels: 2009-Predictions, Amazon S3, BI, Cloud Computing, Force.com, Google, IBM, On Demand, PaaS, remove, SaaS

Monday, December 08, 2008

Force.com for Google App Engine: Apps "Native" to a Cloud Community

Salesforce.com made two fantastic announcements today at their CloudForce event in New York. The first is Force.com for Google App Engine (demonstrated on stage by Marc Benioff and our own Narinder Singh using an extension of our work with Harrah's). The second is Force.com Checkout for native apps (Appirio Adoption Accelerator is one of the 19 apps in the pilot). These announcements illustrate two important elements of Salesforce's platform strategy: "Connecting the cloud" and "Go Native." We think Salesforce is uniquely positioned to bring these two concepts together into a powerful platform. Here's what we mean:

Labels: Amazon Web Services, AppExchange, Cloud Computing, facebook, Force.com, Google, Google Apps, Microsoft Azure, On Demand, PaaS, SaaS, salesforce.com

Monday, November 03, 2008

Force.com Sites Unleased !

Narinder Singh
In today's keynote and as reported recently, salesforce.com released the capability to create and run web based apps available to those outside of your company. There were a ton of cool demonstrations shown today and we built many of them (Harrah's, Facebook). We'll highlight those in our Dreamforce Central Blog, but we want to focus on a more subtle point - the rate of innovation and the pace at which it impacts customers.

1. The high rate of innovation of salesforce.com (and other cloud providers) - Two years ago it was Apex code, that allowed real business logic; last year it was Visual Force, that allowed full control over the user experience; this year they announce salesforce sites; allowing you take your apps and expose part or all of them to web users. No enterprise software vendor has come close to matching this pace over the same period of time.

2. The rate at which innovations actually impact customers - In typical on-premise software, even cool new things will require a generation to get into the hands of customers. Already 11 million of Apex Code and more than 50,000 Visual Force pages have been written by salesforce.com customers. We have used both with more than 50 enterprise customers in mission critical apps.

The fact that these two factors can occur while reducing overall IT costs at first glance seems like black magic. But this is in fact the ultimate testament to how different cloud computing is from old world and how far Microsoft, SAP, Oracle and others have to come. You can get started with trying out salesforce and getting started with a trial of all of this in 60 seconds.

How long will it take the others to match that? We have always been fans of cloud computing, but even I sit back stunned at how far the gap is between the old world and the new

Labels: Amazon Web Services, facebook, Force.com, harrah's, salesforce.com

Friday, October 31, 2008

The Time for Choice Approaches

Narinder Singh

Next week will be an important one in deciding our collective future. The impact of our choices next week on businesses will be fundamental. The Economist described that "the current economic malaise will increase the pressure on companies to become more efficient. More has to be done with less...it will also profoundly change the way people work".

The election? No-- Dreamforce, of course! The run up of announcements from Amazon, Rackspace, and now Microsoft; as well as the recent explosion of press and analyst coverage (including a 14 page article in the print version of the Economist ) have more than whet the appetite for the main event. Dreamforce, a celebration of success of the on-demand model and a foreshadowing of the future of SaaS, PaaS, Cloud Computing, is arguably the premier industry event (and the Foo Fighters are playing).

They say that the necessity is the mother of invention. So with an economy in turmoil and technology more important to businesses than ever, the prerequisites have been met. There is growing sense across leaders in the industry that traditional enterprise software is the new mainframe - a legacy that must be overcome or minimally partitioned off. In Microsoft's own announcements, Ray Ozzie passionately described, "Its (cloud computing) a transformation of our strategy." He then went on to acknowledge that the fire of innovation was driven by others: "I'd like to tip my hat to Jeff Bezos and Amazon. Across the industry, all of us will stand on their shoulders."

Whether they can become true agents of change, or if Microsoft Azure will suffer the same fate as SAP and Oracle's lackluster cloud computing strategies remains to be seen. Regardless of which outcome you predict (we think Chevron or BP just as likely to lead the green revolution) the fact is that even Microsoft is admitting the game has completely changed.

So now we come to Dreamforce - it's like the season premier for a new age in the industry (think Lost meets 24 plus American Idol) . Salesforce.com has been the pioneer in this space for the last nine years. What will they do next? We'll just say that it will be a combination of high impact innovations - the importance of which will be most appreciated by those already on the journey to the cloud. We also expect a few ripples in time to provide a glimpse of the future. Its fitting that Malcom Gladwell, the author of "Tipping Point" is one of the keynote speakers. Because we are experiencing one right now.

For those who will be there, and those that can't, we have the guide to helping you get the most out of these important moments in the history of enterprise computing - Appirio's own Dreamforce Central. Get the insiders view of whats happening on the ground at the conference - live blogs and insider commentary, twitters , instant pictures from the floor , a crazy server art exhibit , the private event for industry luminaries and much more. Whether you are in San Francisco and want the "backstage pass" or you're remote and looking to get more than just the announcements, this will be your Hitchhikers Guide to Dreamforce .

If you are coming, come see us in one of 20+ sessions Appirio and our customers are presenting in and come by our booth (#487). Mention that the blog brought you there and get ready for your own special gift....

---What's the image above all about? Find out now!---

Labels: Amazon Web Services, appirio, Dreamforce, Force.com, salesforce.com

Tuesday, October 14, 2008

Good News for Cloud Computing: Nicholas Carr is getting boring

Ryan Nichols

We’ve always been a big fan of Nicholas Carr’s presentation on the Big Switch … he's delivered it at several Salesforce "Tour De Force" events earlier this year, and gave it tonight before a panel in Palo Alto on whether Cloud Computing is “Ready for the Enterprise.”

There’s a lot that we love in Carr’s pitch:

• We love the stats: In the average IT organization, 80% of server capacity is wasted, 65% of storage capacity is wasted, and 70% of IT labor cost is spent on upkeep of legacy applications. Clearly a ripe opportunity to capture the benefits of centralized cloud computing.
• We love the imagery: the image of a huge water wheel, created as a source of major competitive advantage for a steel company, abandoned to rot in the woods just 2 decades later. His message that on-premise servers are on that same path is right-on.
• We love the scope of his talk, with the emphasis on the broader economic implications of cloud computing. Carr points out that what’s most interesting is not the new infrastructure itself, but what gets built on top. The electricity industry itself quickly became a utility… but the market for electric-powered appliances became highly innovative for decades. As a company that builds on the cloud, we love that message.

We were expecting some fireworks in last night's talk: It was sponsored by the German American Business Association, and was hosted by SAP… not exactly the epicenter of cloud computing. And one of the panelists was Steve Lucas, the former head of On-Demand BI at SAP, who recently left to lead the Force.com business at Salesforce.com. Carr himself is a controversial figure, having gone from the IT industry’s biggest foe for suggesting that “IT Doesn’t Matter” to IT’s biggest friend by backing “The Big Switch” to cloud computing.

But there was remarkably little disagreement among the panel, composed of speakers
from SAP, Salesforce, VMWare, and T-Systems: Salesforce, of course, has built its business around the trends that Carr is talking about. VMWare loves the role that virtualization plays in enabling cloud computing providers. T-Systems positioned itself as an enabler of cloud-based applications. Even SAP acknowledged that “we believe that there will be certain edge processes that will be enabled by the cloud,” which is a bold step forward coming from SAP.

Is it just us, or has this entire conversation gotten a little boring? Where are the dissenters, aside from the attention-getting headlines from the free software federation? Carr saw nothing but nodding heads from the audience when he asserted that “the biggest question for enterprises is what do we move to the cloud and when do we move it.” Nobody argued with his assertion "we’re just at the beginning of a transition to cloud computing in the enterprise.”

My realization? "Boring" is probably a great phase for cloud computing in today's environment. The elephant in the room was this month’s financial crisis, finally raised by the audience in Q&A. “Boring” technologies do well in the enterprise during tough economic times.

Lucas emphasized that Salesforce has a simple subscription model that is going to get more appealing to companies in a recession. When the economy is bad, the last thing a company wants to do is write a big, difficult-to-justify license check. He quoted the CIO of a financial services firm he met with in New York in the midst of last week's financial crisis-- “We’re looking at Salesforce because we need to better leverage our IT investment. We have 88,000 servers in our organization, and want to reduce that number.”

Is cutting servers boring? Maybe. But good for customers and, ultimately, the cloud computing ecosystem.

Labels: Cloud Computing, Force.com, Nicholas Carr, on-demand, SaaS, SAP

Saturday, September 06, 2008

The "Grand Old Party" Gets the New Way of Computing

Labels: Force.com, Google Apps, salesforce.com, Software as a Service

Monday, April 07, 2008

What Do You Get When You Cross Salesforce.com and Amazon S3?

Narinder Singh

You get Appirio Cloud Storage for Salesforce.com, a new SaaS offering from Appirio that taps Amazon S3 to extend the storage capabilities of Salesforce.com. (We toyed with calling it SalAmaForce3 but didn't really see that flying.)

Appirio Cloud Storage [press release] lets Salesforce.com users store more documents and larger size files - such as customer support logs, software patches or video presentations - directly through the Salesforce.com interface, at a fraction of the price of existing storage solutions. The new SaaS offering creates a secure integration with the Amazon.com utility storage service and provides the ability to store documents up to 1GB in size (200x current limits).

Feedback from our beta users shows that is has the potential to reduce existing Salesforce.com storage costs by over 80 percent while enabling them to get more mileage out of their on-demand applications. The service, available in three levels of monthly web-based pricing, can be purchased today on AppExchange or on www.appirio.com.

Connecting the Clouds: A Sign of More to Come

We're excited not only about the service itself, but also what it represents. It shows where the industry as a whole can head - as the platforms mature, there is a substantial opportunity for ISVs to tie together the different clouds and provide offerings that extend and fill in the platforms themselves. In traditional enterprise application integration (EAI), packaged integrations were difficult to commercialize. The permutation of versions and customizations created and "n times n" problem, making it too expensive to create something "packaged" that appealed to more than a very small number of customers. But in the cloud, because SaaS providers commit to stable interfaces - Salesforce has maintained backwards compatability for more than a dozen revisions of its API - "integrating the cloud" can become a new class of solution.

Today's platforms will continue to evolve, and innovative companies will find new ways to bring them together. Appirio Cloud Storage is only one of the many products that Appirio will be offering in this camp over the coming year. Stay tuned!

Photo credit: MaxChu on Flickr

Labels: Amazon S3, appirio, Elastic Cloud Computing, Force.com, on-demand storage, SaaS integration, salesforce.com

Monday, March 03, 2008

Insights and Observations from the Pacific Crest On-Demand Conference

Narinder Singh

Last Thursday we had the pleasure of participating in the 3rd Annual Pacific Crest On-Demand Conference, the kickoff to Pacific Crest's Emerging Technology Summit. Salesforce.com CEO Marc Benioff invited us on stage during his keynote to illustrate how partners can harness the power of the Force.com platform, Visualforce and the AppExchange.

The participating companies covered the spectrum from large on-premise software companies such as EMC and SAP, who were describing their expansion into the newest "hot" market, to companies such as NetSuite, Salesforce.com and SuccessFactors that have built their business from the ground up with Software as a Service.

Interestingly, a number of companies there are in the process of trying to radically shift their business model from on-premise to on-demand, and they talked about the challenges. Most of these companies were small and nimble, which enabled them to make the transition cold-turkey. All were very clear that it wasn't an easy switch to make.

Can Companies Have Their SaaS Cake and Eat It Too?

Can companies successfully split their focus between traditional software and on-demand services?

This is a question we've been raising, skeptically, for quite some time in our blog. Our original Services 2.0 position paper in April 2007 described how the disruptive effects of SaaS will impact the economic models of on-premise software vendors. After a year of additional information and insight, it's even more apparent that treating SaaS as just another channel or product feature is a recipe for failure.

Spending a day with companies that have, or are attempting to make the switch from on-premise to SaaS reinforced the major challenges. IDeaS CEO Ed Booth gave a great presentation highlighting the challenges and upside of moving to an on-demand model. Concur Technologies has often been referenced as the best example of a company that successfully made the transition. Some issues raised by them and others included:

• One-time revenue hit: How do you manage through the decline in revenue growth when you move from an up-front license model to a monthly subscription model? With Wall Street and shareholders as panicky as they are today, this is a very difficult proposition for large public companies. Upfront licensing, even with longer term contracts, can drop by as much as 75%. As the Patricia Seybold Group has noted, As a company moves from perpetual licensing - where customers pay a relatively large, one-time licensing fee - to SaaS - where customers pay a relatively small, monthly license fee - financial performance slips in the short-term."

• Internal channel conflict: How do you manage the channel conflict that happens with your own partners, and even your own sales force, when offering both traditional license and on-demand software? Companies like EMC, with established business units focused on driving demand for SaaS or cloud computing, will have a serious challenge with this. The most reliable solution is to completely separate the businesses - which eliminates any synergy of having both models in the same company.
  
• Shifting to a "month by month" culture: How do you change the way you sell to and support customers when you have to earn their business every month instead instead of every few years when the next big version comes along? This is a huge cultural change for sales and support teams to make. SaaS companies require the culture of the web - where sites like eBay, Amazon, Google and others constantly monitor, serve and improve their customer's experience.
  
• Speeding up R&D: How do you adapt your product development processes to deliver an on-demand service? Successful on-demand vendors get the benefit of releasing new features quarterly, not every two or three years. When features are released, they are expected to work with other systems indefinitely. Salesforce.com still supports each of its 12 versions of its API. How many on-premise vendors can claim anything even close?
  

EMC, SAP, Microsoft and Oracle make it clear to customers and stockholders that their foray into SaaS or cloud computing is not a departure from their software strategies, but an expansion of it. They say things like "SaaS is just another delivery model," or "we're giving customers a choice." Yet they keep increasing the on-premise maintenance fees. SAP just increased its maintenance rate from 17% to 22% per year - an increase of 30%! This leads to one of two possible conclusions:

1. The cost of supporting a growing legacy of capabilities keeps increasing, which eliminates the benefits of on-premise scale. Compare this to any internet company, where increased scale lowers cost and results in expanded services for customers.
2. They are taking advantage of customers' inability to easily switch off of their on-premise software.

Traditional software companies - especially large ones - will certainly have to straddle the fence for a while. Yet the doubletalk and denial will not help in the transition. First, they must acknowledge the need to make a transition. Second, in many cases, dramatic actions, like separating SaaS products into completely independent business units or taking companies private to allow for transition, will be needed to make the change. It's likely that legacy companies will not switch until customers stop tolerating increasing TCO and diminishing innovation from their on-premise systems.

Labels: AppExchange, Concur Technologies, EMC, Force.com, IDeaS, on-demand, Pacific Crest, SaaS, salesforce.com, SAP, software-as-a-service

Monday, February 25, 2008

Adobe and Salesforce - A Fine Blend of Art and Science

Chris Barbin

Application development is a unique combination of art and science. Today’s announcement from Salesforce.com and Adobe introducing the free Adobe Developer Toolkit for Force.com is a good example - combining Adobe’s deep understanding of design with Salesforce's powerful platform-as-as-service model so developers can build innovative and visually appealing on-demand applications.

The Adobe Developer Toolkit is a new set of tools and services that streamline the process of creating customized rich user interfaces for delivery via the web. It allows developers to create on-demand applications that work without an Internet connection. The toolkit connects Adobe’s Flex and AIR (Adobe Integrated Runtime), two of the leading rich internet application (RIA) environments, with Salesforce's Force.com platform. This gives Flex developers access to the Force.com web services APIs, so they can make data in a Force.com database available offline.

CIOs and development organizations need to deliver users a wider set of on-demand applications that require very rich client interfaces and/or offline functionality. These have traditionally been two of the biggest challenges for developers of on-demand applications.

Appirio has been an early adopter of various front end on-demand development paradigms, including Adobe Flex and Visual Force. We use these technologies in a number of ways, for example:

• To create user interfaces for call centers - where a high volume of calls means that saving a few clicks can add up to thousands of hours a year
• To develop interfaces for the iPhone - where the user expects a very specific interaction style that works the same as other applications
• To design custom applications for a very specific purpose - like the cinema management application we have written about previously
• Even to create applications for our own internal use (yes, we eat our own dog food here) such as our Professional Services Automation (PSA) application

The Appirio Professional Services Automation (PSA) application enables professional services organizations to track, manage and reconcile a large collection of projects. Appirio originally developed the PSA application to visualize and manage our various projects, resources, timelines, skills and assignments, and at the time there was not a native Force.com application available on AppExchange that offered these capabilities. While you could use Force.com to manage the respective data, workflows and reports, Flex was what enabled us to create a single visual interface that could both increase individual user productivity and provide clear visibility into the status of projects.

This Flex-based scheduling tool brings our PSA, which is built entirely on the Force.com platform, close to functional par with pure-play on-demand PSA vendors at a fraction of the price. This neat little component (shown below) lets managers drag-and-drop projects, lay out an entire consulting team's assignments on a single color-coded grid, and double-click to drill down for more details. This makes consulting managers more productive - and smarter. If the result is just an increase of a few percentage points in utilization, the financial payback will be dramatic.

Here are a few screenshots of the Appirio PSA application and our Salesforce interface on the iPhone. For those interested in participating in the current beta program for our PSA application, please contact us at beta@appirio.com.

Screenshot #1: This is a high-level view of our PSA application, which lays out the entire consulting team's assignments on a single color-coded grid.

Screenshot #3: Example of a Visual Force application on the iPhone showing the apartment floor plan for a real estate agent.

Labels: Adobe Flex, appirio, Force.com, iPhone, on-demand, Professional Services Automation, SaaS, salesforce.com