In our November 2012 issue of The Net Effect, we published a White Paper titled “Top 10 Reasons Why Clients Spend WAY TOO MUCH...For Telecommunications.” This is the first in a series of blog entries that will explore each of these topics in more detail, starting with #10 Incorrect Rate Implementation in New Agreement. You would certainly want to believe that for organizations which have been around for a very long time, implementing a new agreement into their billing systems would be a well-documented and routine process for telecommunications companies. However, more often than not, this is not the case; and as a consumer of these services ...
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Healthcare organizations pay an unnecessary premium for IT systems, software and services. The reasons are many; NET(net) identifies the Top 12 in our White Paper. With all the focus on reducing Healthcare costs, it may surprise you to learn that of the 30 industries we recently sampled, Healthcare organizations actually pay more for technology than any other industry. Our analysis shows Healthcare organizations pay an average 17% more than that of the other 29 industries we sampled, and 33% more than the industry with the lowest average costs (Food Service). In the first posting of this blog series, we outline why we believe Healthcare ...
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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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This is a big quarter for Microsoft, with the release of Windows 8 and Office 2013, as well as the Surface / RT line of tablets and phones. It’s also a historic market opportunity for Microsoft’s enterprise customers. Most large businesses have been paying for Enterprise Agreements for a decade or more now, and are wondering whether the continued investment is worthwhile in a time of tightening cost controls and decreased relevance of traditional desktop computing in the enterprise. Will the market embrace Microsoft’s new products, or yawn and continue to run on the “good enough” existing versions of Win/Office, and continue the amazing ...
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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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You are a new CIO, it could be your first CIO job or you may have been in that seat before. Whatever your situation, you are now in a new job and you need to make an impact on your new organization. The saying, “you only have one chance to make a first impression” certainly applies to your situation. Without a doubt, your organization will be looking for you to build value and whatever you do, you will make a first impression (either positive or negative). Here are some tips from the trenches to help you make that first impression a positive one. While there is always a “honeymoon” period for a new CIO, it doesn’t last long and in almost all ...
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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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Of course they do. Software companies design complexity into their licensing terms, and the result is that customers are unable to ever be sure they are completely in compliance with the license terms. This problem is endemic to the industry and is well known by every observer of the sector. As the soft economic cycle continues, the IT media is full of stories warning of software companies increasing audits. The connection is obvious - if revenues decline due to slow customer purchases, then the software companies can simply turn to their enforcement arms in order to make up the revenue shortfall. A rational observer can only conclude that ...
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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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