If you are a large SAP customer, there is likely a latent gold mine of savings opportunities hidden deep down inside your SAP agreements. Did you know that for ERP Application licensing alone, not counting all the variations of licensing definitions we have seen over the years (literally thousands of different definitions of what is a limited professional user as an example), there are still 34 major licensing classes for SAP users? Most clients, even those that closely examine their user demographics, struggle to make sense of their own deployments. The kind of convoluted deployments we routinely see in our client base, combined with the ...
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In last month’s blog post, “How a 5% Performance Improvement Can Result in a 50% Savings”, we discussed how the economics of IT deals of all kinds (Cloud, SaaS, Hardware, Software, Services, Outsourcing and Telecom, among others) can be dramatically improved with very small strategic improvements in the process of IT optimization. We asked you to stay tuned to this month’s newsletter, and the blog post, “The Rise of the Disruptive Supplier”, mainly because optimization itself is often thought to be (and many times is) a unilateral activity. Certainly it is always a best practice to understand the macro market conditions to ensure the ...
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The Hurt Suspend disbelief for just a moment and hear me when I say that most clients wildly overpay for technology. Not you, you say? Well, allow me to add meat to this alleged bone of contention between us, by further quantifying that statement. In a recently completed 36-month study of field results in actual client dealings, we empirically demonstrated that clients significantly overpaid in IT investments, by averaging 40% achieved savings in over 504 managed field engagements. These were not the top 504 savings examples, rather a comprehensive selection of field opportunities ensuring a representative and varied sample with no improper ...
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IT Optimization There are three major components to consider when maximizing economic and strategic value in your agreements, investments and relationships. They are: • Your Company • Your Suppliers • And The Market In your company, you’ll have needs, ambitions, organizational objectives, priorities, budgets, capabilities, infrastructure, and demographics that are all unique to you. In your technology supply chain, suppliers will have their own goals and ambitions, and will have strong incentives to promote their innovations, highlight their capabilities, sell their wares, and position their eco-system partners. In the market, you’ll find ...
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Undeniably, there is a cultural shift going on – and despite lingering security concerns and fears of supplier lock-in, our clients (like many others) are moving to the cloud with increasing confidence that the cost savings, operating efficiencies, and improved services levels are quite worth the perceived increase in risk of additional supplier accountability for security and data issues. In the last couple weeks, as I have participated in two conferences, numerous clients have asked me about Oracle’s cloud strategy. It’s no doubt that Larry Ellison, who famously denounced the cloud in 2005, is not necessarily the first one you think about ...
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Last July, NET(net) analyzed the consolidating Talent Management Systems market following SAP’s acquisition of SuccessFactors in December 2011 and Oracle’s acquisition of Taleo in January of 2012. Since then, our prediction of further market consolidation continues to materialize. The most recent update is as a result of IBM’s acquisition of Kenexa for $1.3 billion in August, which appears to position IBM to compete more directly against Oracle / Taleo and SAP / SuccessFactors. Kenexa has been struggling to make money since 2007. Last year, they generated revenue of $283 million (a 44% increase year over year), but still managed to post a ...
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In one case with our client, we were working with their business consultant, and the software supplier they recommended for an enterprise applications deal. The software supplier recommended a value added reseller (VAR), and the client also needed a systems integrator. It was also decided to host and manage the application, and two providers were needed for this. Due to incomplete software in the core offering, the client also needed to buy some third party applications, and also hired a development company to write needed custom software. Further, the client needed to purchase additional networking equipment, processing equipment, and ...
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This month, NET(net), the market leading IT Investment Optimization firm, is celebrating its 10-year anniversary. This is a meaningful milestone considering only 2 out of 100 companies make it to 10 years. It all started with a simple but brilliant business model crafted by NET(net)’s Founder and CEO, Steven Zolman. Steve’s mission for NET(net) was and is to be the premier source of IT supplier market intelligence to help our global clients optimize their IT investments, agreements, and relationships with key technology suppliers. Reflecting on the last 10 years, it has been an amazing run advocating for our client’s needs and creating ...
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Much has changed since our first detailed analysis of the talent management markets back in 2008. The software oligopoly of SAP and Oracle have significantly changed their views from their previous position that HR software was best served up as part of a monolithic software suite that was on premise in their customer’s data centers to now offering cloud solutions through SuccessFactors and Taleo by acquisitions, respectively. Oracle CEO, Larry Ellison is sort of infamous for his outright dismissal of the cloud, only to later capitulate on his earlier provocative statements and launch Oracle high into the cloud with both arms up as most ...
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In talks with clients, industry analysts, company insiders, investors and others, everyone seems to agree that Steve Ballmer has done a terrible job as Microsoft’s CEO. Mr. Ballmer says he plans to retire in 2018, but with lukewarm support from the board, damaged credibility with partners, lost trust with employees, and constant outside criticism - it’s unclear if he can hold on that long. While leading Microsoft through a time when some of the most innovative and spectacular technology advances occurred (e-readers, cloud computing, social networking, smartphones, tablets, and consumer stores just to name a few), Microsoft has failed to ...
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