September capioIT Newsletter – Millennials, Baby Boomers and the Cloud, salesforce.com services and Happy 4th Birthday to capioIT

The past month has been one in which the impact of cloud has been reinforced more than ever before. As early adopters of cloud mature, it is clear that success in the cloud will not occur with a static and singular  strategy or approach by either buyers or sellers. An increasingly visible example of this relates to age of the target buyer of cloud services.

Research by capioIT highlights an increasingly significant disconnect between the approach of Millennials and Baby Boomers to the cloud. The pivotal age has an over/under of approximately 50 years old. Our research has shown that a significant number of Baby Boomers (who also often tend to be cheque signers) have not yet fully crossed the chasm to widespread cloud adoption. Millennials on the other hand have not only leapt the chasm they are typically at the front end of innovation across PaaS, SaaS and IaaS and want more.

Of course these are generalisations and some of the most aggressive cloud adopters are Baby Boomers but it does highlight that a one size fits all approach no longer works for the cloud. The way an enterprise or agency sells cloud to its internal stakeholders has to take the age of stakeholders into account. Likewise a vendor must consider age when framing a selling and marketing approach to enterprise and agency customers in addition to the consumer market. For example, don’t bother selling the “Why Cloud?” to a millennial born in the cloud audience. They have moved well past needing to know why.

salesforce.com has been the most successful and important cloud and SaaS vendor to date. It has paved the way for considerable innovation and helped create new markets and was almost singularly responsible for the shift towards business dominating spending on technology and actively attempting to bypass the IT department.

It did not surprise that the services market for salesforce.com took a while to mature. Various vendors have struggled to create the most appropriate structures to drive sustained growth. As a result of this it is still an emerging market.

Not surprisingly with capioIT’s emerging market focus we have released our first ever Global Capture Share report on the salesforce.com SI and Services marketplace. Clearly there are results of interest across the analysis, but the key outcomes for capioIT were the following:
Successful legacy services firms in the salesforce.com Services and SI market have created a structure that aligns salesforce.com with growth and resources. Accenture leads in this respect followed by Deloitte and Cap Gemini.

  • The SaaS services providers, notably Blue Wolf, Cloud Sherpas and Appirio have been particularly successful in this space. They collectively live in the cloud and are creating an ecosystem. Customers align to this cloud based culture.
  • Overall the laggards include many of the Indian based IT services vendors (HCL, Infosys) and legacy IT vendors such as Fujitsu and IBM who have not been able to, or not chosen to,  make the shift towards the SaaS services opportunity.

Whilst there is a lot of visibility and excitement for this report, if you have any questions please let us know.
For the first time in our short history capioIT has chosen to sponsor an event and support the Analyst Relations Forum in London this month.  This event is helping to showcase analyst firms who like capioIT, are looking to disrupt the analyst environment step by step and to remove some of the Stockholm Syndrome features that legacy vendors have inflicted on both the vendor and buy side.

Short insights from August

  • Clearly IBM is gambling their future on softlayer cloud. Sydney launch was at the casino. Will they beat the house? The Indian launch was perhaps less prophetic but still successful
  • Nike, Starbucks and Fitbit are all examples of firms that are truly disrupting multiple industries. Nike is now as much an analytics firm as a lifestyle experience.
  • Data3 announced a profit margin of just  1% on A$833M in sales. It is failing to shift to a higher level of client engagement. This is not unique for Australian based IT firms.
  • In speaking with millennial households their consumption of content transformation is still evolving. Forget no landlines, they have no TV as they just download or stream on devices.
  • Always frustrated when online engagement is optimised for a browser with a 20% market share. This is not a digital centric experience and users simply  switch off.
  • Key challenge for technology departments and vendors is to identify and retain leaders who can drive customer satisfaction.
  • A New York State hotel threatened to charge guests $500 ‘bad review fee’ was suitably hammered and Yelp was perhaps the biggest loser. Winning in social media is hard, and not helped by greed or stupidity
  • Idea from a popular post last year -> In the Customer Centric Organisation, Should the CFO Report to the CMO?
  • Tech vendors cannot be relying on Russia for growth. capioIT forecast that the technology growth will be negative through 2015, beyond that, no-one can make a genuine call.
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HP attempts to merge with EMC – Have most legacy IT vendors run out of ideas?

EMC was a very successful vendor in redefining the storage space, but its business is being impacted on all angles from changing buying patterns, competitive shifts, Infrastructure as a Service, price pressure and of course an internal inability to shift the business model quickly.

Cut to the core and EMC has publicly been considering its long term future financial position. It has one piece of gold, in the form of the 80% of VMware that it owns. The fact that VMware is the redeeming feature of EMC speaks to the failure of EMC to continue to transform in front of the market rather than reacting to change. (One of the major takeaways for capioIT at EMC World was that EMC was following the market in reaction mode, rather than making things happen out in front through innovation).

The EMC scenario is reflected at HP, albeit in the case of HP, the breadth of the business means that the scale of the challenge is even larger. Furthermore, the legacy of the executive dysfunction prior to Meg Whitman taking over as CEO and Chairman has had a massive negative impact.

For EMC, along comes HP, still not burnt from the failed acquisitions of EDS and Autonomy, willing to merge/acquire EMC. Put simply if this happens, it has every indication of adding to the mess of $19B in write-downs that HP has undertaken in recent years.

It is the marriage of two vendors who are struggling to find their identity in a nimble, evolving world. The rationale for two already cumbersome vendors forming a much larger entity with the ability to be flexible, reactive to customer evolution and part of the new order of technology is difficult to identify.

There are so many implications of this. Front and centre, the impact on Cisco, VMware and the VCE enterprise is worth scrutinising. Cisco and EMC always have had a degree of competitive tension in their relationship and it would not surprise that in the longer term Cisco looks to EMC as more competitor than deep partner and increases the enhanced relationship with NetApp amongst others.

The other investment option for EMC is to invest in analytics providers such as Qlik, Tableau et al particularly in alignment with Pivotal. This would solve some of the problems for the future but cannot create the revenues of the storage business in the long term. In addition the potential integration issues and the ability to keep the real IP of these companies, the developers, within EMC does not have a clear resolution. If EMC were to do anything in the analytics space, it would have to be as part of Pivotal. The challenge is that Pivotal has reinforced an agnostic approach to the platform of choice for the user of analytics.

The challenges that HP and EMC face, and the risk that they are willing to make in order to maintain relevance highlights how difficult it is to be a legacy vendor. The transformation required to stand still is at such a level that very few will survive, whether they are a hardware, software or services based legacy vendor. Consider that the biggest challenges for these vendors’ revenue streams are yet to come. The shift to a subscription model for the procurement of technology has only just begun. So far in broad terms revenue and earnings have held up, but long term options are increasingly difficult.

The vendors who are comparatively successfully transitioning to the new technology environment have to be measured on potential rather than execution, but IBM and Microsoft have made tough decisions and embraced changing business models to be in a better place in late 2014 than they were at the beginning of the year. Cisco and Oracle are in the balance, but it is hard to argue that HP, Dell, EMC and Fujitsu are in a better position now than at the beginning of 2014 in light of a rapidly changing future.

Focus Point – A merger of HP and EMC may have been a great idea in 2004, but in 2014, it just reinforces the view that most of the legacy vendors have simply run out of ideas to execute a long term future around.

If you require further information, please contact Phil Hassey,  Founder capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. Phil may be contacted by email below,

phil@capioit.com

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capioIT announces the Global salesforce.com Systems Integration and Services Market Leadership

capioIT is excited to release the 2014 Global salesforce.com Systems Integration and Services Market Capture Share Report. This extensively researched report supports global technology buyers by evaluating the key strengths and weaknesses of 14 prominent salesforce.com Systems Integration and Services providers.

According to capioIT CEO Phil Hassey; “salesforce.com has been a global innovator not just in CRM and SaaS, but also the PaaS market. It has created an ecosystem around itself to maximise customer outcomes.” The initial focus of “simply swiping a credit card” and non-IT teams buying salesforce.com limited the requirements of implementation services. However, as the complexity of salesforce.com deployments increased, alongside concerns over data quality and integration, the growth in services and systems integration requirements has accelerated across the salesforce.com ecosystem.

“Organisations cannot maximise the value of their salesforce.com environment without investments in services such as architectural support, change management and data integration. Successful and accelerated implementation provides enhanced Return on Investment and other measurable business outcomes.” Mr. Hassey added. Despite these customer requirements the salesforce.com marketplace is still far from maturity when compared with platforms such as SAP and Oracle.

Reflecting the emerging market nature of the salesforce.com ecosystem, capioIT has released the first Capture Share for the Global salesforce.com SI and Services Marketplace.

The analysis identified six vendors were ranked as “Market Makers” (the leading position in the Capture Share model). These six leaders are:

  • Accenture
  • Bluewolf
  • Deloitte
  • Cloud Sherpas
  • Appirio
  • Capgemini

salesforce capture share diagram

Accenture has a clear leadership position in the market. It effectively uses scale with over 250% more certified salesforce.com consultants than any other vendor.

Bluewolf is the first of a trio of market maker vendors that were born in, and focused on, cloud application services. Alongside Cloud Sherpas and Appirio, they represent the next wave of application services provider. Bluewolf was the first ever partner for salesforce.com and has continued to grow in alignment.

Deloitte and Capgemini have leveraged their consulting pedigree to also gain a leadership position, particularly in their home markets of US and Europe respectively.

The remaining vendors in the study are a mix of Indian based services providers and large legacy services vendors. The market for salesforce.com services is still evolving and is a long way from maturity. There is still time for these lagging vendors to invest in order to create differentiation and leadership.

As the market for salesforce.com services heats up, buyers and perspective clients need to ensure that their vendor of choice is able to demonstrate the following:

  • Ability to integrate the diversifying salesforce.com platform particularly as it invests in markets such as analytics and wearable technology
  • Ecosystem partnerships across the SaaS provider marketplace and the ability to integrate
  • Data governance expertise
  • A deep bench of industry aligned salesforce.com professionals
  • Strong record of innovation

Note,

The following Vendors are included in this study

  • Accenture
  • Appirio
  • Bluewolf
  • Capgemini
  • Cloud Sherpas
  • Cognizant
  • Deloitte
  • Fujitsu
  • HCL
  • IBM
  • Infosys
  • NTT
  • TCS
  • Wipro

 

Capture Share Reports are independent research. They are not prepared on behalf of any vendor or provider. It is a rigorous and tested methodology that is based on extensive qualitative and quantitative engagement with a range of stakeholders. 

 

For more on capture share reports please see:

 

What is the capioIT Capture Share Report? http://wp.me/p15cZf-7H

 

For more on the Business Principles of capioIT http://wp.me/p15cZf-8x

 

If you require further information, please contact Phil Hassey, CEO capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. Phil may be contacted by email or phone below,

 phil@capioit.com

+61 (0) 422 231 793

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Certified salesforce.com Professionals for Global System Integrators – Accenture leads the way

The salesforce.com System Integration and Solution Services market is accelerating more than any other major enterprise technology platform. The salesforce.com market is innovative and transforming the way enterprises and agencies engage with their customers, stakeholders and overall ecosystem. As a result of this capioIT is increasing focus on this market.

One of the key attributes of the salesforce.com services market is the number of certified salesforce.com professionals that major services providers have within their ranks. The table below highlights the number of certified professionals in the 14 vendors included in the overall salesforce.com capture share report. (source: August 2014, https://appexchange.salesforce.com/results?type=Services&filter=a0L30000001kHrREAU). Note this table highlights the number of global resources regardless of location. 

Vendor Global Salesforce Certified Resources
Accenture 1652
Deloitte 640
Cognizant 604
TCS 594
Wipro 505
Capgemini 407
Appirio 356
Cloud Sherpas 332
Bluewolf 309
Infosys 256
IBM 247
HCL 247
NTT 242
Fujitsu 99

As the table highlights the salesforce.com certified professionals market is dominated by Accenture. As at August 2014, Accenture had approximately 250% more certified professionals than the nearest contender, Deloitte. Cognizant, TCS, are slightly behind Deloitte.

Of the important and increasingly influential cloud focused SI’s Appirio, Cloud Sherpas and Bluewolf have between 300-350 certified professionals. These firms increasingly fight above their weight in this market and as the results of the forthcoming capture share report will highlight are amongst overall market leaders.

Clearly at the smaller end of the numbers of certification and therefore salesforce.com are some global heavyweights, most notably IBM and Fujitsu. These vendors have considerably less certified salesforce.com professionals and influence than in more traditional and legacy technology markets.

Capture Point 

The number of salesforce.com professionals in major Systems Integration and Services providers is clearly not the only determinant of the overall depth of capability that a vendor has in the space. However, it is very indicative of the investment that is being made. The likes of Accenture, Bluewolf, Deloitte and Cloud Sherpas are making comparatively stronger investments in the global and regional salesforce.com ecosystem and it is reinforced by their performance and perception.

If you require further information, please contact Phil Hassey,  Founder capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. Phil may be contacted by email below,

phil@capioit.com

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August capioIT Newsletter – Analytics in sport, Japanese SME innovation and the 101 countries of capioIT

What’s News….

Innovation was a theme for capioIT in July. This is not unusual of course. Innovation is the most tagged item for capioIT research and a favourite topic in any month. We have highlighted some unique perspectives and application of innovation identified this month.

Our CEO, Phil Hassey was in Tokyo this month. Japan has been a traditional home of innovation in process, product and participation. Unfortunately, the competitive advantage that this innovation at the national level provided stalled in recent years. Competition from Korea, Taiwan and China, and the US has had a substantial impact on established powerhouse companies such as Sony, Panasonic and Mitsubishi.

As is always the case in Tokyo eye opening contrasts are easy to find.  Within a few minutes’ walk of the headquarters of struggling legacy Japanese firms, Panasonic and Fujitsu, is Ginza. Anyone who has visited Ginza knows that it is a globally unique hotspot. I met with a couple of smaller digital and analytics agencies who have the mindset to create innovation to beat the new local and international competition. They have the ability to create immediate innovation.

capioIT believes that innovation based benefits for the Japanese economy will increasingly come from smaller organisations and entrepreneurs who are not tied to the traditional Japanese enterprises and the Keiretsu structural limitations.

For a legacy European based vendor, Capgemini has usually carried its weight in terms of innovation. At a recent analyst day Capgemini CTO Lanny Cohen reinforced the Capgemini view on innovation in terms of the CTO role. Simply, the primary role of innovation in an IT services and solutions company is to make money for clients in the short term, then provide a long term vision. Too many firms go for the long vision in innovation that is near impossible to execute.

Sadly, it often seems that sport often only enters technology discussions when it comes to doping and gambling issues. Increasing, and positively, sporting organisations globally are seeing the benefits of investment in SMAC, particularly social media and analytics. Analytics is primarily focused on performance management, but also investment is made from a business and fan engagement point of view.

In the recently completed Super 15 Rugby Competition (played in the Southern Hemisphere with teams from Australia, New Zealand and South Africa), the NSW Waratahs (yes, my local team, so time to be proud …) won their first ever title, beating long term nemesis the New Zealand based Canterbury Crusaders. Earlier in the season the Waratahs management invested a significant amount of time communicating the benefits of their work with IBM to deeply understand each players individual physiological capabilities. This helped them manage training workloads individually and collectively. The impacts of a reduction in soft tissue injuries were very significant and there is no doubt that the work between IBM, the Waratahs and partners was critical for the overdue success that the team experienced on the field.

We expect that the investment in sport for both wearable technology (clearly fitness is the major driver for the consumer) and analytics will be driven to identify the 1% factors that can influence success or failure in the sporting environment just as it does in the business sphere.

Finally, a note on the readership of capioIT. As we reached the halfway mark of 2014, we undertook some analysis of the audience of the capioIT research. There were several outcomes that were very exciting for us. The most exciting was that since 2012, average monthly readership has increased 300% from an already established base. The level of outreach and engagement that this provides is incredibly satisfying and highlights that we are providing content that has an impact on a rapidly growing audience.

Last year, readers came from 101 countries. Whilst the largest source of readers are the US, India and Australia (Thanks Mum and Dad), it was great to have readers from countries as diverse as Malta, Barbados and Azerbaijan. This reinforces the blend of research and insight that we provide that mixes local market intimacy with global reach.

Thanks for taking the time to continue to read the newsletter. We have linked to some of our key content for the month. As always, please let us know if there is any way we can support you and your business requirements, and please provide us with feedback on the newsletter to Phil Hassey.

 

Short insights from July

    • Fujitsu announced that that it will spend billions on cloud computing. It is a concern for Fujitsu that it will be too late to the party to transform the cloud agenda
    • VMware announced the vCHS in Japan, and a partnership in China. Highlights the market reality of China. Opportunity is subdued
    • Not surprisingly the Rackspace fanatical support mantra is clearly visible in the VMware vCHS offerings as it looks to differentiate from the AWS, Azure and Soft Layer
    • Whilst we understand and sincerely respect the benefits from an environmental and sustainability perspective, the strategic value for Google of locating a North Asian data centre is limited in comparison with Japan, Singapore etc.
    • On a positive note for Google, the Google Mobile Monday and Tablet Tuesday approach increases productivity and makes mobility truly enterprise wide for the firm.
    • IT Services providers who could not transition to offshore delivery will really struggle with #cloud. Transformation maybe too much
    • The new economy is not a “sharing economy”. It is a transactional economy. No-one gives up their house, car or other commodity for free which is implied by free. The route to market has just changed
    • Too many legacy vendors are adapting to a world as it was 2-3 years ago, not as it will be in 2-3 years. The inevitable decline is sad
    • I went to a recent launch of Tableau 8.2. Not surprisingly audience demographics were front and centre. The fact that only 23% attendees at the event were from IT functions was very telling. Analytics is increasingly a business play.
    • Exciting that Capgemini has invested in a technology lab in Melbourne. It has a big focus on working with start ups.
    • Whilst there are some failures, digital enablement in Australia has boomed in past 12 months. This is clearly driven by technology.

 

Vendor Consulting
capioIT has an enviable reputation in driving projects that capture and understand specific business challenges and market characteristics to identify, and enable delivery of the most appropriate business strategy.
These services enable a vendor to:

  • Identify and assess the most appropriate geographic location for customer success
  • Validate business decisions through tangible and robust market analysis, forecasts and process driven competitive analysis
  • Identify your most valuable audience and create content that specifically meets their needs to drive engagement to your business
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capioIT July Newsletter – BPaaS, Workday and Unisys, Infosys and Facebook Ethics‏‎

Attached is some of the content from the capioIT newsletter for June. To sign up for the full and free newsletter please check in here – http://www.capioit.com/#!mailing-list-sign-up/cawx

What’s News

It is amazing to realise that we are now officially halfway through 2014. We hope that you are on track to deliver any major professional and personal goals for 2014. Currently there are some tough environments but there is still significant time left this year to achieve your goals.

capioIT spent a lot of time in June looking at the issue of disruption for legacy IT vendors. To say the impact of disruption is massive and accelerating is a huge understatement. The impact is everywhere. The good news is, that it is far from game over and not suffocating for all, serious inertia is required now in order to avoid being left behind.

One firm who is definitely undergoing a significant degree of transformation is Infosys. In late June it announced that former SAP CTO, HANA architect Vishal Sikka will join Infosys in the role of CEO. If he can transform Infosys to an asset and IP based provider he will succeed extraordinarily, if not he will potentially take Infosys with him. Given the challenges that Infosys has historically had meeting targets for IP based solutions he clearly has his work ahead of him.

In general as capioIT wrote this month, whilst the Indian based services firms are still growing, they do face significant challenges as their core differentiator of offshore service delivery has been largely combated (albeit not always successfully) by the legacy IT services providers, most notably IBM and Accenture. The key outcome of this is that the number of legacy providers has doubled in most markets. This is a key reason why it can be more difficult to get on a short list for an RFP.

The best illustration of the disruption to existing vendors has been highlighted with an analysis of market capitalisation that capioIT undertook in June. HR and Finance SaaS provider Workday has a market capitalisation of US$15B on the back of $0.5B in revenues. By contrast, industry mainstay Unisys has a market capitalisation of US$1.2B on the back of $3.5B in revenues. Unisys is profitable, Workday isn’t. The challenge is for the likes of Unisys, Capgemini, CSC and others is that Workday is the model of the future. Again to re-emphasise the point – legacy vendors have to transform end to end to have a chance to compete.

Not everyone will make it; in fact some of the biggest brands in technology will not survive the next 3-5 years. If the likes of Dell, Fujitsu and HP are to survive the next 3-5 years as legitimate enterprise providers then it will have been an extraordinary effort from their board down. Clearly it will be a bloody battle that will impact everyone around them.

A note on a key interesting client engagement that capioIT has undertook in June. For an emerging retailer we undertook a workshop on Business Process as a Service (BPaaS) and what it means for it. It was focused on defining what BPaaS meant to it on its terms, and what it could do for it and its partners with detailed insight into the transformation required. They realize that the task at hand of shifting process to platform is massive and will take time.

Finally, in late June Facebook was “caught” undertaking “research” to manipulate feeds of users. Personally this is no surprise. Facebook is not an altruistic organisation. As much as it may wince, Facebook’s objective is as dictatorial in philosophy as any one party state. Simply, control the information -> control the agenda. Now consumers could change their behaviour to force Facebook and the ilk to be more open and transparent but that is unlikely. The key technology  risk is that Facebook will set back big data in a similar way as to how NSA impacted the cloud marketplace.

Thanks for taking the time to continue to read the newsletter. We have linked to some of our key content for the month. As always, please let us know if there is any way we can support you and your business requirements, and please provide us with feedback on the newsletter to Phil Hassey.

Short insights from June

    • The Victorian Government named the CenITex bidders. The fact that only one is Australian highlights the lack of innovation in the Australian technology space.
    • India, Singapore and others have a Cabinet Minister for Entrepreneurship. The US, UK, and Australian governments do not have a full cabinet level position for science. No wonder it is Asia’s century.
    • Legacy vendors are cutting costs to make money. It is unsustainable and will lead to increased failure. Growth needs investment not cutbacks.
    • Struggling legacy and growth technology organisations have clearly realised that when organisations fail, it is often as much crippling internal process that kills them as much as customer issues.
    • There is no point of an organisation having a great Net Promoter Score if your customer base is becoming a dinosaur
    • The real organisational value of analytics won’t come from Chief Data Or analytics officer, rather from the business analyst and real users
    • A core connecting theme of IBM analytics clients – predict issues before they impact and understand and predict the cost of impact in productivity and regulatory terms.
    • IBM is finally acting to ensure a cloud first and mobile first for its analytics software and platforms. This is a slow ship to turn but it looks like IBM is making the correct moves.

How capioIT can Help Your Organisation….

End User Consulting

capioIT provides consulting to buyers of IT, primarily from a services/integration, IT Strategy and Business Intelligence or Analytics point of view.

capioIT founder and CEO, Phil Hassey started his career as a power user of GIS, and as a result has a depth of experience in understanding the role of business driven technology to gain competitive advantage.

Since capioIT’s establishment, projects have been completed in key emerging markets globally and across a range of industries. Read More….

 

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Google Enterprise – Not quite sweet enough to turn lemons to lemonade just yet.

Last week Google held its customer event in Sydney, Atmosphere14. capioIT was intrigued to find that front and centre at the entrance was a bowl of lemons. I can only guess that Google was going to make lemonade from lemons, sadly, whilst the day had moments of sweetness, Google could not set up the lemonade stand this time around.

As an online consumer brand Google, only has Facebook and on a good day, Microsoft within range. The translation of this to the enterprise space, whilst successful on many other organisations benchmarks, has not been successful enough on a Google scale.
At the Australian event Google proved that it has a range of offerings that enterprises need, particularly in the collaboration and mapping/location space. The collaboration benefits of Google Docs are transformative, as is the ability to use location to drive improved outcomes for buyers and data for sellers.

At capioIT we believe that flaws sit in two key areas. The integration across the enterprise of Google is limited and the Google Compute offering is seriously lagging the other scale public cloud providers.

It was clear that Google enterprise cannot pinpoint an overarching and integrated core customer. They sell to a range of stakeholders, marketing, HR, technology etc, but there is no overriding core customer and limited integration across the client. Whilst it is a strong benefit to have such a diverse client base, if it is to be a truly transformational vendor for the enterprise it needs to fill the gaps, connect the dots, and offer and end to end capability

The Google Compute strategy is much weaker in the overall Asia Pacific region as well as ANZ. A data centre in Taiwan may be great from an ecological efficiency point of view, but it is not likely to interest too many customers in markets such as Singapore, Australia and India. As capioIT highlighted last week, Australia in particular is going to have a surplus of enterprise public cloud providers by year end – see As AWS dominates, Rackspace grows, and IBM, Microsoft and Cisco arrive by year end, does Australia need a sixth global IaaS provider . Despite being a much feared potential competitor in the IaaS market it needs to scale out much more quickly across the Asia Pacific market than it is doing to date. Organisations in key Asia Pacific markets such as China, Singapore, India, Japan and Australia are expecting their global providers to operate locally with in country presence.

Another point that highlighted the comparative lag of Google in the enterprise space was that the crowd was well below that of Amazon Web Services and salesforce at their customer events held in Australia this year. AWS and salesforce set the agenda; if Google wants to be a dominant provider then it must do the same.

Capture Point
Whilst at a product level Google has significant differentiation in the market it needs to do more to really challenge other enterprise providers as a top tier vendor. Integration across the product set and customer requirements is critical as is accelerated investment in cloud compute capabilities.

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