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Posts tagged ‘AWS’

SaaS Adoption Accelerates, Goes Global in the Enterprise

In working with manufacturers and financial services firms over the last year, one point is becoming very clear: SaaS is gaining trust as a solid alternative for global deployments across the enterprise.  And this trend has been accelerating in the last six months.  One case in point is a 4,000 seat SaaS CRM deployment going live in Australia, Europe, and the U.S. by December of this year.

What’s noteworthy about this shift is that just eighteen months ago an Australian-based manufacturer was only considering SaaS for on-premises enhancement of their CRM system.  What changed?  The European and U.S. distribution and sales offices were on nearly 40 different CRM, quoting, proposal and pricing systems.  It was nearly impossible to track global opportunities.

Meanwhile business was booming in Australia and there were up-sell and cross-sell opportunities being missed in the U.S. and European-based headquarters of their prospects. The manufacturer  chose to move to a global SaaS CRM solution quickly.  Uniting all three divisions with a global sales strategy forced the consolidation of 40 different quoting, pricing and CRM systems in the U.S. alone.  What they lost in complexity they are looking to pick up in global customer sales.

Measuring Where SaaS Is Cannibalizing On-Premise Enterprise Applications

Gartner’s Market Trends: SaaS’s Varied Levels of Cannibalization to On-Premises Applications published: 29 October 2012 breaks out the percent of SaaS revenue for ten different enterprise application categories.  The greener the color the greater the adoption.  As was seen with the Australian manufacturer, CRM continues dominate this trend of SaaS cannibalizing on-premise enterprise applications.

Additional take-aways from this report include the following:

  • Perceived lower Total Cost of Ownership (TCO) continues to be the dominant reason enterprises are considering SaaS adoption, with 50% of respondents in 2012 mentioning this as the primary factor in their decision.
  • CRM is leading all other enterprise application areas in net new deployments according to the Gartner study, with the majority of on-premise replacements being in North America and Europe.
  • Gartner projects that by 2016 more than 50% of CRM software revenue will be delivered by SaaS.  As of 2011, 35% of CRM software was delivered on the SaaS platform.  Gartner expects to see SaaS-based CRM grow at three time the rate of on-premise applications.
  • 95% of Web analytics functions are delivered via the SaaS model  whereas only 40% of sales use cloud today according to the findings of this study.
  • The highest adoption rates of SaaS-based applications include sales, customer service, social CRM and marketing automation.
  • SaaS-based ERP will continued to be a small percentage of the total market, attaining 10% cannibalization by 2012.  Forrester has consistently said this is 13%, growing to 16% by 2015.
  • Office suites and digital content creation (DCC) will attain compound annual growth rates (CAGR) of 40.7% and a 32.2% respectively from 2011 through 2016. Gartner is making the assumption consumers and small businesses will continue be the major forces for Web-based office suites through 2013.
  • The four reasons why companies don’t choose SaaS include uncertainty if it is the right deployment option (36%), satisfaction with existing on-premise applications (30%), no further requirements (33%) and locked into their current solution with expensive contractual requirements (14%).

Bottom Line: Enterprises and their need to compete with greater accuracy and speed are driving the cannibalization of on-premise applications faster than many anticipated; enterprise software vendors need to step up and get in front of this if they are going to retain their greatest sources of revenue.

Source:  Market Trends: SaaS’s Varied Levels of Cannibalization to On-Premises Applications Published: 29 October 2012 written by Chad Eschinger, Joanne M. Correia, Yanna Dharmasthira, Tom Eid, Chris Pang, Dan Sommer, Hai Hong Swinehart and Laurie F. Wurster

Data Without Limits – Insights from Werner Vogels of Amazon.com

O’Reilly Media’s Strata, Making Data Work Conference held February 1rst – 3rd, 2011 in Santa Clara, California was one of the most interesting and multifaceted events of the year.  Included were presentations on data science, real-time data processing and analytics, data acquisition and crowdsourcing, visualization, in addition to many other topics.  You can find the complete list of speaker slides and videos for the event at this link, Strata 2011 Speaker Slides & Videos.

What enriches this conference is the quality of the case studies presented.  Be sure to check out the presentation from DJ Patil of LinkedIn on Innovating Data Teams.  His discussion illustrates just how critical big data is to LinkedIn and how their approach to managing it enriches the user experience, and is transforming LinkedIn functionality at the same time.

One of the best overall presentations features Dr. Werner Vogels, CTO of Amazon.com titled Data Without Limits.  The video is provided below and provides a glimpse into how pervasive AWS is becoming as a foundation for accessing, aggregating and transforming data in real time.

Building a High Performance Cluster with Amazon Web Services

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Amazon Web Services has released the following video that provides a fascinating look at how straightforward it is to create, launch and monitor high performance cluster instances.

CPU utilization, disk I/O and network utilization are tracked as part of the metrics, and guidance on how to define hardware virtualization (HVM) is also defined.   Creating an 8-node, 64 core, ad hoc cluster is defined in the steps in this video with the intent of running a molecular dynamics simulation.

What is interesting about this video is how Amazon Web Services continues to show the practicality of its broad spectrum of server capacities on the Elastic Compute Cloud (EC2).   This is the first in a series of videos Amazon Web Services will be releasing on creating high performance clusters.  It’s worth checking out as the walk-through of steps shows how rapidly EC2 is maturing as an enterprise platform.

Implications for the Enterprise

EC2 has language-agnostic Web Services APIs that show potential for integrating legacy systems, databases, master data management (MDM), CRM and enterprise systems.  For enterprises that have data-centric operations and business models, EC2 could become the foundation of contextual search and role-based access of their legacy data.  Decades of data accessed via contextual search would provide insights that aren’t possible today using existing methods of data access, integration and analysis.

Bottom line: Creating high performance clusters in AWS EC2 shows potential to increase the accuracy and precision of business intelligence and analytics, and potentially solve the most complex data-driven challenges of social CRM.

Flickr attribution: http://www.flickr.com/photos/vitroids/2586785504/

Netflix in the Cloud – Lessons Learned Deploying AWS

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Adrian Cockcroft, Cloud Architect at Netflix recently published a summary slide deck of a presentation he will be giving on November 3rd at QConSF.  It is a fascinating look into how Netflix chose AWS and the lessons learned.  Adrian discusses the presentation on his blog here.

It is going to be very interesting to see the entire slide deck after QConSF, which is when Adrian plans to upload it per a note on his blog.

Architectural Design Patterns in Cloud Computing, Excellent Presentation by AWS

Jinesh Varia of Amazon Web Services (AWS) authored the following presentation, which is an excellent overview of the AWS Services and basic terminology used on this specific cloud platform. This presentation describes the lessons learned by AWS in terms of scalability, cloud architectural trade-offs and also provides guidance of which storage option to choose.

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