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.