Software Division CEO Insights: Jeff Haynie, Appcelerator

This interview was originally published in SIIA’s Vision From the Top. The 2013 Vision From the Top will be released at All About the Cloud, May 7-9 in San Francisco.

In 2020, looking back on this decade, what will be the single most impactful technical advancement driving business growth?

It’s clear to me that mobility will be the single most impactful technical advancement driving business growth in the next ten years … and that’s because mobility has been the single most impactful technical advancement in our personal lives over the past ten years.

Mobility is impacting humanity even faster than the web did. Think about it: there are 7 billion people on the planet, and 1.5 billion of them are on the web. But 5 billion of them have mobile phones! The reach of mobile phones is phenomenal – more than three times the reach of the internet even today.

Last Christmas more than half of all adults used their mobile phones to help them make decisions about in-store purchases. People now use mobile apps more minutes per day (94 minutes) than they browse the web (72 minutes). And we can interact with mobile devices in ways we could never interact with the web through features like touch, motion, and voice controls (welcome to my world, Siri!).

As you think about how much mobile has changed your personal life, it’s barely touched how businesses operate. The current trend of “bring your own device to work” underscores how much business has not tapped the power of mobile … workers would rather pay for and use their own devices at work than be hobbled by the current mobile options provided by their employers.

Mobile in the enterprise is unfolding in two stages: the first is improving existing business processes by mobilizing information and providing it to the employee or customer at their moment of need. For example, a salesperson walks into a client meeting carrying a mobile device equipped with all the account information, a complete order history, understanding of available inventory, and most current price list for that customer. Or a doctor has walks into an exam with all the pertinent patient information at his fingertips including x-rays, MRIs and other visual items. This acceleration of information enables faster, better decision making.

The second stage is where apps utilize all of the interactions and contextual elements that that mobile device and cloud can provide … such as hyper-location, the customer’s previous buying behavior, and the condition and location of perishable inventory. Imagine a mobile application that provides a vice president of sales a real-time performance metric of where his sales people are and their performance in the accounts they are visiting, enabling him to shift sales/pricing strategies on the fly, to close a higher percentage of business. Or imagine a packaged goods company sending a 25% off coupon to a customer who is browsing the frozen food aisle of a grocery store, encouraging them to switch from a competitor’s product.

We are in the early days of companies tapping the power of mobile to improve business processes. Mobile will be even more transformative to business than the web was.

What’s the future for hybrid cloud strategies?

Mobile + Cloud = More than the Sum of Their Parts

Two of the most powerful trends in technology are converging into the mobile cloud. Mobile provides massive reach through billions of devices, while the cloud offers the ability to scale quickly. The strengths of both of these elements combine to create a result that is larger than the sum of their parts … mobile devices provide massive volumes of contextual information while the cloud is able to store, manage, and interpret this massive data.

Cloud-based services also enable enterprises to rapidly integrate functionality, such as check-ins, photos, authentication, and storage to their mobile applications, and then scale those functions rapidly. Enterprises only pay for the cloud capacity they utilize, as opposed to building up servers or storage that may lay unused for long periods of time. Given the current rapid adoption of new apps and innovation of new features, it’s nearly impossible for an enterprise to plan for infrastructure to support. The cloud provides maximum and immediate flexibility to scale mobile applications.

By combining both mobile and the cloud, enterprises can transform their relationships with customers and further empower their workforces with flexible, device-optimized applications, quickly and easily.


Rhianna Collier is VP for the Software Division at SIIA. Follow the SIIA software division on Twitter @SIIASoftware

Software Division CEO Insights: John Herr, Adaptive Planning

This interview was originally published in SIIA’s Vision From the Top. The 2013 Vision From the Top will be released at All About the Cloud, May 7-9 in San Francisco.

In 2020, looking back on this decade, what will be the single most impactful technical advancement driving business growth?

Looking back on this decade which started deep in a global recession, the importance of understanding the true financial picture of an operation became critical. Companies of all sizes needed the ability to conduct more what-if analysis, get real-time analytics, and operate with greater agility than they had in growth times. With these economic conditions in mind, two important technological advancements, cloud computing and mobile, have gained leadership as the platform for managing a company. Realoperational management expands beyond the finance department to planning and analysis across all aspects of a company.

Structural changes in our global economy and the way we communicate are presenting a perfect storm for cloud and mobile to intersect. These two powerful platforms are disrupting the technology landscape and will prove to be the single most impactful advancement over the next eight years. The trend has already begun. Now all individuals need is an internet connection to access cloud applications anywhere and at any time. Couple cloud applications with mobile devices and this technology intersection will truly transform the way we live and work.

The explosion of tablets will drive increased demand for Corporate Performance Management (CPM) and a host of other applications necessary for business productivity in an increasingly complex, inter-related and uncertain economy. As conditions require daily access to key metrics, managers and executives will increasingly rely on dashboards and reports to access this information from anywhere and on any device, so they can operate effectively and make decisions swiftly. Either one of these trends discussed here, cloud and mobile, is capable of significant transformation, but the confluence of these technological platforms will disrupt the market as pressure to cut costs and make faster decisions continues to loom in this period of economic uncertainty.

What do you do as CEO to keep your organization focused on customers and value?

At Adaptive Planning we have built a customer centric organization by hiring people who are focused on customer success, by measuring success through metrics that matter to the customer, not just the bottom line, and by building an organization that is truly customer centric. As a SaaS provider our business is dependent on our customers renewing and continuing to expand their relationships with us. The value we deliver is critical. As a result, we continually seek product feedback in the form of Customer User Groups, online forums, annual surveys, and customer support cases.

Adaptive Planning’s product development roadmap is not based solely on what strategy our executive team has come up with, but rather is a direct result of the requests and product feedback from our customers. Our primary objective is to build the best product that we can that will meet the complex and varied needs of our customers, so they can benefit in their professional lives and transform how they strategically impact their organizations.

Because we are a SaaS vendor, we are able to monitor customer usage activity, proactively reach out to customers before their renewal period, and provide open access to executive management. This customer driven culture has earned us stripes in the form of #1 in customer satisfaction awards and more importantly renewals. In addition, our satisfied ecosystem of customers is a self-perpetuating community and we benefit from frequent introductions and referrals.

Social media and social business are big themes for 2012. In which areas of business will the social movement have the most impact (or most potential for impact)? Why?

The broad technological shift towards the social enterprise is an important one. Collaboration and the consumerization of the enterprise are critical trends that are impacting how employees communicate and operations function. As the social enterprise explodes going forward, collaboration capabilities in any cloud application will be critical. The recent political movements in the Middle East propelled by the advent of mobile and social platforms signals that this transformation is only just beginning and is reaching further than first world economies.

Corporate performance management processes-including budgeting, forecasting and reporting-are some of the most collaborative processes in business. At Adaptive Planning, we have been a leader in embedding collaborative capabilities into our SaaS CPM solution from day one. By harnessing these collaborative capabilities, finance, management and executive teams are better able to evaluate the feedback, input, and current thinking of numerous people throughout the organization-resulting in better informed decisions that drive real competitive advantage.


Rhianna Collier is VP for the Software Division at SIIA. Follow the SIIA software division on Twitter @SIIASoftware

An Industry that Never Stands Still: The History and Future of the SIIA CODiE Awards

Now in its 28th year, the 2013 CODiE Awards will be launching Monday. I sat down with SIIA President and CODiE Awards founder, Ken Wasch, to discuss why the program is so meaningful to the industry and what contributes to its success. Since this is my second year as the program coordinator, I wanted to find out why Ken has invested a great deal into the program and why he gets so excited at the start of each CODiE Awards season.

Why did you start the CODiE Awards?

Every industry should have an opportunity to celebrate its own achievements, and the CODiE Awards were the very first peer recognized awards in the personal computer/software industry. Over the years, we modified the categories to reflect the dynamic changes in the industry, but what we never changed was the fact that it was a peer reviewed program.

What’s important about peer review?

Unlike awards that are based on sales, what’s important about peer review is that there’s a leveling of the playing field. Great products from smaller companies have an equal shot at winning a CODiE Award. If you have an awards program that is based on sales, obviously the industry giants will always win them. And so, awards that are based on sales reflect the marketing muscle of the publisher, not necessarily the intrinsic innovation of the product. The CODiE Awards sometimes recognize great products that may not achieve great commercial success.

Why do companies nominate for the CODiE Awards?

The hallmark of our industry is the hundreds of thousands, if not millions, of software developers who are hard at work, innovating in a way that was unimaginable a few years ago. It’s good for the industry, it’s good for the customers, and it’s good for developers themselves to be recognized for that innovation.

What do you love about the CODiE Awards?

This time of year, it’s very exciting to see all the new products. I love the CODiE Awards season. It lasts from early August to mid-October, when all the nominations for the next year come in, and I’m always blown away by some of the new products that are nominated. It’s an industry that never stands still.

How have the CODiE Awards changed over the last 28 years?

There are so many different categories. The CODiE Awards have grown in scope from initially 20 categories, to 79 categories. Originally, the awards were largely focused on entertainment and education, and they expanded to a broad range of business and information categories. You know, the words software and information have become so broad they touch almost every human endeavor, so there are almost an unlimited number of categories we could establish. This year, we have limited the categories to the 79 where we believe there’s a critical mass of companies that we can reach.

The nominees have changed so much. I remember one CODiE Award winner 20 years ago. It was a product called Coupon Clipper, where you would take the coupons that you get from the newspaper and enter them into a database. It would keep a record, so before you went to the supermarket, you would know which coupons are about to expire, and how you might adjust your shopping so you get maximum impact from your coupon collection. The product won a CODiE Award, but I thought anyone who would use this product has too much time on their hands. It was too much work to manage it! But, even though the product didn’t do well in the market, because our program recognizes great products, and not sales, it was recognized for its innovation.

What is the future of the CODiE Awards?

When something has been around as long as this–28 years–it has stood the test of time. We have been smart enough to freshen the program every year or two. The CODiE Awards will thrive if we keep modifying the categories to keep current where the industry is innovating. The categories can’t remain static.

A decade ago, the word cloud meant something totally different. The cloud categories have now become mainstream. The mobility categories cut across all of information and all of software, and the development and distribution of video products has become a mainstream new category. On the ed tech side, the use of technology in education is nothing new. What is new is the multiplication of devices within an educational environment, whether it’s mobile, tablets, laptops, desktops, or electronic whiteboards. The number and diversity of devices is spurring innovation in the software applications that run on them.

Why do you think companies should nominate for the CODiE Awards?

For small and medium-sized companies that want to distinguish themselves from their competitors, the CODiE Awards provide a great opportunity to set themselves apart from other innovators. It’s a great reward for the developers, but it also has significant payoff in terms of bragging rights in a CODiE Award winner’s market.


Wendy Tanner Wendy Tanner is CODiE Awards Coordinator. Follow the CODiE Awards on Twitter @CODiEAwards

Software Division CEO Insights: Ezequiel Steiner, Acumatica

This interview was originally published in SIIA’s Vision From the Top. The 2013 Vision From the Top will be released at All About the Cloud, May 7-9 in San Francisco.

Are traditional on-premise mega-vendors really committed to Cloud, or is it just a strategy to perpetuate and protect their on-premise legacy?

All major analyst groups confirm high demand for Cloud services. In 2011, Gartner reported that the Cloud is the number one technology affecting IT. Forrester Research reported that over the next 12 months the majority of companies plan to increase cloud spending. In 2012, the Cloud is no longer a novelty – customers and vendors are rapidly adopting the technology.

Mega-vendors typically follow technology trends instead of creating them. Cloud ERP Software follows this behavior. Mega-vendors are committed to Cloud offerings, but lag the market in terms of releasing products. This causes the market to doubt their commitment, but the complexity of building an offering may be more to blame than the commitment of the mega-vendors.

Committing to the Cloud requires a full company effort. Cloud vendors such as Acumatica have been working on our software for many years, but more importantly, we have been developing a business around SaaS and Cloud offerings. In addition to software, the Cloud requires a new business model, new sales techniques, new partnership models, and new support models.

To cope with these challenges, some mega-vendors have developed hosted versions of existing legacy software. These efforts are mostly stop gap measures to enter the market. Hosted legacy software provides some of the benefits of Cloud such as outsourced IT and remote access, but doesn’t deliver the same advantages as a web-based application that is designed specifically for the Cloud. A web-based solution has several advantages over hosted legacy software. First, it eliminates client software to reduce IT and maintenance costs. Second, cloud solutions provide access from anywhere without the complexities of VPNs or remote access software. Third, cloud-based systems are designed to minimize network traffic and deliver data to mobile devices. And finally, systems designed for Cloud have security models to ensure that a compromised client will not impact the integrity of the system.

The challenges associated with developing a Cloud application and changing organizational behavior cause mega-vendors to launch stop-gap products to get to the market quickly. This gives the appearance that they are not fully committed. But, commitment to the Cloud is a long-term undertaking. There are several things that mega-vendors can do to expedite their delivery process …

The mega-vendors are buying up pure-play SaaS companies. Will they succeed in using those acquisitions to help change their companies to the SaaS culture and business model?

There are two challenges associated with moving to the Cloud – software challenges and organizational challenges. Companies can solve the software challenge by purchasing a pure Cloud vendor or by utilizing a software development platform developed specifically for Cloud applications. The organizational challenges need to be solved through training, hiring, and incentive plans.

In the ERP software space, mega-vendors have taken different approaches building their Cloud solutions. SAP elected to build their software in-house, Microsoft is entering the market through legacy hosting, Sage has purchased ERP solutions, Oracle is biding their time, and Visma is building an offering by using a cloud platform.

Time will tell the best way to acquire a Cloud solution, but we can gather some initial insights based on events over the past few years. Building a solution on your own is difficult as the experience of SAP ByDesign illustrates. After years of work and a product re-launch, SAP has little to show for their efforts.

The most interesting approach is the one being taken by Visma. Instead of re-developing core accounting functions on the Cloud, they opted to OEM our platform technology to build a new line of software that will be targeted to small and medium sized businesses. The benefits of this approach include faster development timelines, lower costs, and faster market entry. This approach also ensures that Visma will have a complete understanding of the software that they develop which will help with support and maintenance activities.

Using a Cloud development platform will also help the mega-vendor face the equally important task of transforming their organization. Purchasing a separate SaaS company will create a new and growing revenue stream, but will not transform the existing organization. Using a Cloud platform will involve the entire organization in the development and planning process so people are more interested and knowledgeable of the Cloud solution. This will improve the sales, support, and adoption of the new products.

One of the most difficult issues facing mega-vendors is managing their existing installed base of customers. Many mega-vendor customers want the benefits of cloud such as reduced IT costs, browserbased access, scalability, current and up-to-date software, but these customers have already paid for their software as well as software customizations. A properly designed Cloud solution requires a completely new code base. This means the mega-vendor must convince customers to purchase their new solution, perform a data migration, and pay to rebuild their customizations. For many mega-vendors this seems like a lot of work, but the risk of not doing it is that customers will begin investigating different vendors.

With relatively little advantage associated with moving existing customers, mega-vendors need to sell cloud solutions to new markets. This is a difficult task – especially if the company purchased a pure-SaaS player. Sales teams that understand the intricacies of existing software will not know the new software or the new sales process. Training can help solve these problems, but unless the commission plans are changed and new people are hired, sales people will follow the path of least resistance and sell the legacy (non-Cloud) solution.

A combination of OEM development, intense sales training, new commission plans for recurring revenue, and partnerships with service/hosting providers will help mega-vendors market and sell Cloud solutions.


Rhianna Collier is VP for the Software Division at SIIA. Follow the SIIA software division on Twitter @SIIASoftware

The questions that didn’t make it into Vision from the Top

Each year SIIA sets out to pick the minds of individuals who are shaping and growing our industry. Just a couple of weeks ago we released the 2012 Vision from the Top publication that features interviews with these business leaders providing thoughts on trends, M&A activity, and the future of our industry.

While we went through the interview process we asked the contributing executives some questions that you won’t find answered in the publication which I thought I would share with you. We asked the member executives to look at Forrester’s 2012 Cloud Predictions and tell us which one would have the most significant impact in 2012. The majority of contributors said “The cloud market will grow beyond $60 billion in 2012”. What does that say about cloud computing? It is not just a trend, it is the way in which we compute today and if you are not providing or consuming cloud services you will be at a disadvantage in the marketplace. HOWEVER, we also asked which of Forresters’ predictions will be the biggest challenge in 2012 and the majority also selected “The cloud market will grow beyond $60 Billion in 2012”. Clearly the consensus is that the cloud market will grow but will continue to face challenges, likely around security, integrations, etc.

Another popular response was that “Large enterprises will take the lead in cloud markets in 2012”. I found this one surprising since the enterprises have made a much slower move to the cloud than the SMBs. However, what I am hearing from the members is that 2012 will be the year. We have certainly seen a significant investment being made by the enterprises with all the recent M&A activity. Every day I wake up and wonder which one of the SIIA members will be acquired today!

If you read Vision from the Top you will see that the contributors are either CEOs or large business unit leaders of enterprises. We wanted to get an idea of their personal technology choices so we asked some personal questions (at least in the technology world these would be considered personal). Not surprising an overwhelming majority of contributing executives use an iPhone as their smartphone of choice. And an overwhelming number said they also carry a tablet of some kind, no more lugging around those heavy laptops.

Next we invaded the social space of the contributing authors. We asked how many of them actively used Facebook and approximately 60% said yes. At first I thought that number was low until I saw the answers to the next question, do you activity use LinkedIn? An overwhelming majority actively use LinkedIn. That should not be a surprise given the business nature of the application. Now here is an interesting one, the majority of respondents do not, yes DO NOT, actively use twitter. A little surprising but I suppose these executives leave Twitter to their marketing departments.

 


Rhianna Collier is VP for the Software Division at SIIA.

IBM Watson and the Cloud- Implications of the Next Generation of Computing: SIIA’s All About the Cloud

After attending this year’s All About the Cloud, Abdullah Mashuk shared a summary about the IBM Watson and the Cloud: Implications of the Next Generation of Computing Presentation.

Presenter: Stephen Gold, IBM Corporation

Discussion Points:

  • Watson had 70% unaided awareness within American population. In jeopardy Watson needed to wait 3 second before buzzing to answer a question affirmatively.
  • Watson helps convert unstructured data into something meaningful
  • Trillion interconnected devices 2 billion mobile devices driving information’s. Information is becoming new oil. Oil in the ground does not have much value, but once it extracted refined then it had value. Information has same implication. Big data by itself is not that interesting, but what you do it can be insightful.
  • Next generation system will be learning system, systems that are not just programs, but systems that are taught. System that will get smarter with each iteration, with each outcome, with each new information.
  • On big difference between programmatic system vs. learning system is the notion search vs. discovery.
  • Next generation of system will be about bringing back relevant information.
  • Deterministic vs. probabilistic system. 2+2 may not always 4 it may have probabilistic answer.
  • 90% of current world data is collected within the last two years
  • 80% of data is unstructured
  • Only 20% of date currently leveraged by traditional system.
  • 83% CIO thinks big data / analytics is important
  • Differences among Watson and other systems is Watson’s ability of Natural Language processing. Its ability to break question into sub components and evaluate each components for possible answer/solution.
  • IBM Watson use case in health care – Medical information will be doubled by the time a med student finish the entire curriculum. It will be impossible consume all the data. 81% physicians spends 5 hours or less per month on medical journal. Watson can process vast number of information and help a doctor quickly diagnose a patient and prescribe right medicine. Watson currently being used in pre-authorized treatments. Announced development partnership with cancer care institute.
  • Other use case can be in financial services industries.
  • IBM Watson is delivered as a service through cloud. (public/private/hybrid)

Using Cloud to Manage Business Growth: SIIA’s All About the Cloud

After attending this year’s All About the Cloud, Abdullah Mashuk shared a summary about the Using Cloud to Manage Business Growth Presentation.

Moderator: Michael Pearl, PricewaterhouseCoopers
Speakers: Nara Balakrishna (Appirio), Guy Shani (Clarizen), Gil Zimmermann (CloudLock)

Discussion Points:

  • Mike help client leverage cloud to drive their business
  • Nara – Cloud solution provided, help mid size companies to move to cloud. How he uses cloud to run his buinses
  • Guy – collaborative online project management services. 1600 customers (midsize to large companies). How his company leverages cloud to drive his business
  • Gill – Cloud data security. Help leverages enterprise leverages the cloud secured way. 100s of enterprise customer, millions of users use cloud securely.
  • How to leverage the cloud to manage the growth of the company
    1. Support millions of users without having a single server
    2. Continuously innovate, continuously provide value to customer
    3. Built on Google App engine, so not need to focus on infrastructure management, just focus on software development
  • Share some experiences about connectivity and collaboration across the org
    1. Disparate group across many geographical locations. Use own solution to communicate and collaborate with own employees.
    2. Also other cloud based solution like Saleforce, Marketo etc
    3. Only 100+ employees but supporting many customer world wide
  • Nara sharing perspective of how Appirio grown and how you managing your customer
    1. 3 guys supporting 500 people
    2. all project run using own solution build cloud based solution
    3. Able to move quickly (on baording new employees, )
    4. Spend a little less on IT
  • Some challenge from IT organization that you serve (how do they respond)
    1. How you go around IT
    2. IT leader recognize the shift in market
    3. 70/75% spending keeping their lights on
    4. Moving form IT maintenance to innovative business solution
  • Guy’s perspective
    1. 5 years ago only early adopters SAAS based model for project management
    2. More streamlined a way to deliver cloud based solutions
    3. Is SAAS the right vehicle no longer a concern
    4. SAAS is valid option to consider
    5. Spend more time focusing on the right solution
  • Security and Risk Management (how customers manage this aspect)
    1. CIO stands for Chief Information Officer (Not infrastructure office)
    2. CIOs need to make sure information available securely
    3. Making sure IT provide the best application
    4. People will find a way collaborate, so CIO need to enable cloud based solutions that are secured from the company data point of view
    5. Dropbox are users breaking corporate policy
    6. How can do things before and do more securely on the cloud
  • Future of IT (two path for IT organization)
    1. One – strives for best of breed technologies
    2. Other – will just keeps the light on
    3. Roles are changing
  • Example of most innovative way to leverage cloud
    1. 2 examples – Helping twitter to scale from few sales force to 100s of salesforce. Helping them implement tool like Salesforce.com and other cloud based solution
  • How clients are using project management tools:
    1. Immediately value is people are using the tool, more adoption among users
    2. Managers have full visibility to data that was not there before
    3. Help make real time decision
    4. Cut timesheet process to days to hours
    5. Customers (Marketo) are teaching them how to best to use theirs own software
  • How customers learned more about the information using Cloudlook
    1. 60 seconds to instal in any size organization
    2. Data on the dashboard is eye opener for the customer
    3. Moving from windows based servers to cloud based solutions
    4. Once organization gone from traditional file servers application to Google Apps, it is very hard to go back.
    5. Paradigm shift, data does not belong to server anymore.
  • Perspective on cloud adoption of companies that already invested heavily on Legacy applications
    1. Collecting information from the different system and putting in front of users. Start with that then extend to other services. (Front office first, collaboration second, HR and other services next)