- Asia/Pacific grew the fastest of all regions globally, increasing 9% 2015, closely followed by greater China with 18.4% growth.
These and many other insights into the current state of the global CRM market are from Gartner’s Market Share Analysis: Customer Relationship Management Software, Worldwide, 2015 (PDF, client access) published earlier this month. The top five CRM vendors accounted for 45% of the total market in 2015. Salesforce dominated in 2015, with a 21.1% annual growth rate and absolute growth of over $902M in CRM revenue, more than the next ten providers combined. Gartner found that Salesforce leads in revenue in the sales and customer service and support (CSS) segments of CRM, and is now third in revenue in the marketing segment. Gartner doesn’t address how analytics are fundamentally redefining CRM today, which is an area nearly every C-level and revenue team leader I’ve spoken with this year is prioritizing for investment. The following graphic and table compare 2015 worldwide CRM market shares.
Adobe, Microsoft, and Salesforce Are Growing Faster Than The Market
Adobe grew the fastest between 2014 and 2015, increasing worldwide sales 26.9%. Salesforce continues to grow well above the worldwide CRM market average, increasing sales 21.1%. Microsoft increased sales 20% in the last year. The worldwide CRM market grew 12.3% between 2014 and 2015.
Analytics, Machine Learning, and Artifical Intelligence Are The Future Of CRM
Advanced analytics, machine learning and artificial intelligence (AI) will revolutionize CRM in the next three years. Look to the five market leaders in 2015 to invest heavily in these areas with the goal of building patent portfolios and increasing the amount of intellectual property they own. Cloud-based analytics platforms offer the scale, speed of deployment, agility, and ability to rapidly prototype analytics workflows that support the next generation of CRM workflows. My recent post on SelectHub, Selecting The Best Cloud Analytics Platform: Trends To Watch In 2016, provides insights into how companies with investments in CRM systems are making decisions on cloud platforms today. Based on insights gained from discussions with senior management teams, I’ve put together an Intelligent Cloud Maturity Model that underscores why scalability of a cloud-based analytics platform is a must-have for any company.
Sources: Gartner Says Customer Relationship Management Software Market Grew 12.3 Percent
Employees would most recommend Zerto, FusionOps, Google, OutSystems, AppDirect, Sumo Logic, Cloudera, HyTrust, Tableau Software and Domo to their friends looking for a cloud computing company to work for in 2016. These and other insights are from an analysis completed today to determine the best cloud computing firms and CEOs to work for this year.
To keep the rankings and analysis completely impartial and fair, the latest Computer Reseller News list, The 100 Coolest Cloud Computing Vendors Of 2016 is the basis of the rankings. Cloud computing companies are among the most competitive there are about salaries, performance and sign-on bonuses and a myriad of perks and benefits. They are also attracting senior management teams that have strong leadership skills, many of whom are striving to create distinctive company cultures. The most popular request from Forbes readers are for recommendations of the best cloud computing companies to work for, and that’s what led to this analysis.
Using the 2016 CRN list as a baseline to compare the Glassdoor.com scores of the (%) of employees who would recommend this company to a friend and (%) of employees who approve of the CEO, the table below is provided. You can find the original data set here. There are many companies listed on the CRN list that doesn’t have than many or any entries on Glassdoor, and they are excluded from the rankings shown below but are in the original data set. If the image below is not visible in your browser, you can view the rankings here.
The highest rated CEOs on Glassdoor as of February 3rd, 2016 include the following:
- Ziv Kedem, Zerto, 100%
- Gary Meyers, FusionOps, 100%
- Christian Chabot, Tableau Software, 100%
- John Burton, Nintex, 100%
- Rob Mee, Pivotal, 100%
- Rajiv Gupta, Skyhigh Networks, 100%
- Ken Shaw Jr., Infrascale, 100%
- Beau Vrolyk, Engine Yard, 100%
- Ramin Sayar, Sumo Logic, 99%
- Sundar Pichai, Google, 98%
- Lew Cirne, New Relic, 97%
- Daniel Saks, AppDirect, 96%
- James M. Whitehurst, Red Hat, 96%
- Marc Benioff, Salesforce, 96%
- Tom Kemp, Centrify, 95%
- Jeremy Roche, FinancialForce, 95%
- 73% of midmarket companies say the complexity of their stored data requires big data analytics apps and tools to better gain insights from.
- 54% of midmarket companies’ security budgets are invested in security plans versus reacting to threats.
These and many other insights are from Dell’s second annual Global Technology Adoption Index (GTAI 2015) released last week in collaboration with TNS Research. The Global Technology Adoption Index surveyed IT and business decision makers of mid-market organizations across 11 countries, interviewing 2,900 IT and business decision makers representing businesses with 100 to 4,999 employees.
The purpose of the index is to understand how business users perceive, plan for and utilize four key technologies: cloud, mobility, security and big data. Dell released the first wave of its results this week and will be publishing several additional chapters throughout 2016. You can download Chapter 1 of the study here (PDF, no opt-in, 18 pp.).
Key take-aways from the study include the following:
- Orchestrating big data, cloud and mobility strategies leads to 53% greater growth than peers not adopting these technologies. Midmarket organizations adopting big data alone have the potential to grow 50% more than comparable organizations. Effective use of Bring Your Own Device (BYOD) mobility strategies has the potential to increase growth by 53% over laggards or late adopters..
- 73% of North American organizations believe the volume and complexity of their data requires big data analytics apps and tools. This is up from 54% in 2014, indicating midmarket organizations are concentrating on how to get more value from the massive data stores many have accumulated. This same group of organizations believe they are getting more value out of big data this year (69%) compared to last year (64%). Top outcomes of using big data include better targeting of marketing efforts (41%), optimization of ad spending (37%), and optimization of social media marketing (37%).
- 54% of an organization’s security budget is invested in security plans versus reacting to threats. Dell & TNS Research discovered that midmarket organizations both in North America and Western Europe are relying on security to enable new devices or drive competitive advantage. In North America, taking a more strategic approach to security has increased from 25% in 2014 to 35% today. In Western Europe, the percentage of companies taking a more strategic view of security has increased from 26% in 2014 to 30% this year.
- IT infrastructure costs to support big data initiatives (29%) and costs related to securing the data (28%) are the two greatest barriers to big data adoption. For cloud adoption, costs and security are the two biggest barriers in midmarket organizations as is shown in the graphic below.
- Cloud use by midmarket companies in France increased 12% in the last twelve months, leading all nations in the survey. Of the 11 countries surveyed, France had the greatest increase in cloud adoption within midmarket companies. French businesses increased their adoption of cloud applications and platforms from 70% in 2014 to 82% in 2015.
Sources: Dell Study Reveals Companies Investing in Cloud, Mobility, Security and Big Data Are Growing More Than 50 Percent Faster Than Laggards. October 13, 2015
Gartner announced their top 10 strategic technology trends for 2016 at the Gartner Symposium/ITxpo held October 4 – 8th in Orlando. David Cearley, Vice President and Gartner Fellow, presented the company’s Top Ten Strategic Technology Trends for 2016. You can find the video here.
Key take-aways from his presentation and the trends announced are provided below:
- Enterprise 3D-printing shipments will attain a 64.1% Compound Annual Growth Rate (CAGR) through 2019. David Cearley mentioned during his keynote that jet engines are being 3D printed today. He gave the example to illustrate that 3D printing will continue to gain adoption in more demanding manufacturing environments including aerospace, automotive, energy, medical devices and military-based markets and industries.
- Emergence of an entirely new class of business models based on smart machine technologies, advanced analytics and big data. Combining machine learning, continued adoption of Internet of Things (IoT) sensors and supporting data models, and advanced intelligence to interpret and act on the data, Gartner’s predictions set the stage of an entirely new class of business models. Manufacturing-as-a-Service and paying only for the production time used in a factory are within reach for more companies than before based on these predictions.
- The device mesh will expand to include IoT-based devices that scale well beyond the enterprise. Gartner is predicting that in the next three years traditional computing and communication devices, including desktop and mobile devices will increasingly be augmented by wearable devices, home electronics including appliances with sensors, transportation-based sensors and data collection devices, and environmental devices all capable of capturing data in real-time.
- A digital mesh will continue to proliferate, aligning apps and devices to individuals’ specific roles and tasks. Gartner sees this digital mesh as an expanding series of devices, services, platforms, informational networks and individuals that integrate together and provide contextual intelligence and enabling greater collaboration. The proliferation of the digital mesh will lead to more ambient, contextually intelligent and intuitive app design over time Gartner predicts.
- The next twelve months will also see the proliferation of algorithm-based businesses enabling automated background tasks including smart machines. Gartner’s technology trends for 2016 set a solid foundation for the growth of globally-based smart factories and production centers. Acumatica, Plex Systems and other Cloud ERP providers are ideally positioned for this trend, having proven their ability to provide manufacturing intelligence from the shop floor to the top floor. In addition to cloud platforms, these algorithm-based businesses will need to support unstructured data analysis including latent semantic indexing (LSI), data taxonomy and classification algorithms to ensure data fidelity and scalability, and more robust analytics and predictive modeling systems.
- Combining algorithms, analytics, data architectures and smart machines have the potential to revolutionize manufacturing quickly. General Electric’s Predix platform, IBM’s IoT Foundation and several other cloud-based IoT platforms are already making progress on transforming the vision of algorithm-based smart machine production strategies into a reality for manufacturers globally.
- Gartner sees a new IT reality taking shape. Adaptive security, advanced systems, Internet of Things (IoT), mesh app & service architectures are the catalysts of the new nature of IT that Gartner is predicting.
A graphic illustrating the top 10 strategic trends is show below:
Gartner Identifies the Top 10 Strategic Technology Trends for 2016. Press Release Announcement, October 6, 2015.
Video replay of the keynote: The Top 10 Strategic Technology Trends for 2016
- U.S. technology hubs (Silicon Valley/San Francisco, New York, Boston, Los Angeles & Chicago), Israel and Canada dominate while confidence continues to fall in Brazil and other emerging markets.
These and other insights are from Deloitte’s 2015 Global Venture Capital Confidence Survey. You can download a copy here (PDF, no opt-in, 70 pp.). Deloitte has also produced and made available infographics of the key findings here (PDF, no opt-in, 4 pp.). Deloitte & Touche LLP and the National Venture Capital Association (NVCA) collaborated on the eleventh annual survey, which was conducted in May & June of this year. The study assesses investor confidence in the global venture capital environment, market factors shaping industries and investments on specific geographies and industry sectors. Please see page 4 of the study for a description of the methodology.
Key take-aways include the following:
- Global venture capital investors are most confident in cloud computing (4.18). Investors were asked to rate their confidence level in each sector. Confidence levels were measured on a scale of 1 to 5, with 5 representing the most confidence. Basis points indicate year-over-year changes. Mobile (4.05), Internet of Things (3.95) and enterprise software (3.82) are the top four sectors venture capitalists are the most confident in today. Biopharmaceuticals are experiencing the greatest increase in venture capital confidence today. Please the the graphic below for additional details.
- The United States (4.17), Israel (3.90) and Canada (3.60) dominate venture capital investors’ confidence while emerging markets including Brazil continues to fall. U.S. technology hubs including Silicon Valley/San Francisco, New York, Boston, Los Angeles and Chicago continue to retain and reinforce global venture capital investor confidence. The following graphic illustrates global venture capital investor’s confidence by nation.
- Silicon Valley/San Francisco (4.28), New York (3.86) and Boston (3.77) are the top three U.S. metros global venture capital investors have the greatest confidence in. Los Angeles (3.43) and Chicago (3.22) are the fourth and fifth most trusted U.S. metros that venture capitalists have confidence in. $15.2B was invested by global venture capital investors in Silicon Valley/San Francisco according to the Deloitte study. The following graphic compares venture capitalist confidence levels and venture capital investment dollars received in 2015 through Q2.
- Immigration reform (61%) and patent demand reform (36%) are the top two initiatives U.S.-based venture capitalists want addressed by policy leaders. For non-U.S. venture capitalists, tax incentives/credits (50%), infrastructure and job creation (both 41%) are the top two initiatives they would like to see public policy leaders take on in their home country.
- Cloud computing continues across all sectors as the area global venture capital investors have the greatest confidence in. Confidence in biopharmaceuticals grew the fastest of any sector measured by the survey between 2014 and 2015, and this is the first year Deloitte is tracking investor confidence in the Internet of Things (IoT). A sector comparison is provided below.
- 69% of enterprises expect to make moderate-to-heavy cloud investments over the next three years as they migrate core business functions to the cloud.
- 44% of enterprises are relying on cloud computing to launch new business models today, predicting this will increase to 55% in three years.
- 32% are using cloud computing to streamline their supply chains today. Senior executives predict this figure will increase to 56% in three years, a 24% increase.
- 59% say they use cloud-based applications and platforms to better manage and analyze data today, reflecting the increasing importance of analytics and big data enterprise-wide.
These and other insights are from a recent Oxford Economics and SAP study of cloud computing adoption, The Cloud Grows Up. You can find the study here (no opt-in). In late 2014, Oxford Economics and SAP collaborated on a survey of 200 senior business and IT executives globally regarding the adoption and use of cloud technology. Oxford Economics’ analysts compared the latest survey with one completed in 2012 looking for leading indicators of cloud adoption in enterprises. They found many C- and VP-level executives are taking a more pragmatic, realistic view of what cloud technologies can contribute. Enterprises are moving beyond the hype of cloud computing, putting in the hard work of launching new business models while driving top-line revenue growth.
Oxford Economics has made two interactive infographics available from the study here. The first details cloud adoption, and the second, on how enterprises see cloud computing changing their business models over the next three years. As cloud platforms and applications become a scalable, secure and for the most part reliable, once-elusive enterprise goals and new business models become attainable.
Key take-aways from the study include the following:
- Top–line growth (58%), collaboration among employees (58%), and supply chain (56%) are the three areas enterprises expect cloud computing to impact most in three years. The greatest gains will be in the areas of supply chain (a 24% jump), collaboration among employees (20%) and increased agility and responsiveness to customers (17%). The following graphic compares where enterprises are seeing cloud computing’s impact today and a prediction of each areas’ impact in three years.
- Developing new products & services (61%), new lines of business (51%) and entering new markets (40%) are three key areas cloud computing is transforming enterprises. With a 35% increase, developing new products and services is the most dominant strategy enterprises are relying on to grow their businesses. See the comparison below for further details.
- 58% of enterprises predict their use of cloud computing will increase top-line revenue growth in three years. 67% see the cloud changing skill sets and transforming the role of HR. The following graphic illustrates the first of two interactive infographics Oxford Economics and SAP are providing with the report. You can access the infographic here.
- 74% of enterprises say innovation and R&D is somewhat or mostly cloud-based. 61% say they will have developed new products and services in three years as a result of adopting cloud technologies. The following graphic illustrates the second of two interactive infographics Oxford Economics and SAP are providing with the report. You can access the infographic here.
- Enterprise cloud security strategies are maturing rapidly. From 2012 to 2014, strategies for ensuring the security of API and interfaces increased 24%, from 20% to 44%. Additional concerns that increased include virus attacks (up 19%), and identity theft (up 16%). The following figure compares the top concerns enterprises have in the area of cloud security.
- 31% of respondents say the cloud computing has had a transformative impact on their business. 48%, nearly half, state that cloud computing has had a moderate impact on business performance. The majority believe cloud computing will have a significant impact on top-line revenue growth in three years.
- 67% of enterprises say that marketing, purchasing, and supply chain are somewhat and mostly cloud-based as of today. Cloud-based adoption has reached an inflection point in enterprises, with functional areas having the largest percentage of workloads running on cloud-based apps. Enterprise senior executives see the potential to improve innovation, R&D, and time-to-market via greater collaboration using cloud technologies.
A Goldman Sachs study published earlier this year projects that spending on cloud computing infrastructure and platforms will grow at a 30% CAGR from 2013 through 2018 compared with 5% growth for the overall enterprise IT.
Centaur Partners and other firms mentioned in this roundup are seeing more enterprise-size deals for cloud computing infrastructure and applications. While each of these consultancies and research firms have varying forecasts for the next few years, all agree that cloud computing adoption is accelerating in enterprises on a global scale.
Key take-aways from the roundup are provided below:
- By 2018, 59% of the total cloud workloads will be Software-as-a-Service (SaaS) workloads, up from 41% in 2013. Cisco is predicting that by 2018, 28% of the total cloud workloads will be Infrastructure-as-a-Service (IaaS) workloads down from 44% in 2013. 13% of the total cloud workloads will be Platform-as-a-Service (PaaS) workloads in 2018, down from 15% in 2013. The following graphic provides a comparative analysis of IaaS, PaaS and SaaS forecasts from 2013 to 2018. Source: Cisco Global Cloud Index: Forecast and Methodology, 2013–2018. (PDF, free, no opt-in).
- Centaur Partners’ analysis of SaaS & cloud-based business application services revenue forecasts the market growing from $13.5B in 2011 to $32.8B in 2016, attaining a 19.5% CAGR. Centaur provides a useful overview of current market conditions including M&A activity in their latest market overview published this month, Introduction to Centaur Partners: SaaS Market Overview, (PDF, free, no opt-in).
- Global SaaS software revenues are forecasted to reach $106B in 2016, increasing 21% over projected 2015 spending levels. Spending on integration, storage management, and database management systems are projected to experience the greatest growth in 2015. These and other key insights are from Forrester’s SaaS software subscription revenue by category show below. Source: Enterprise software spend to reach $620 billion in 2015: Forrester.
- $78.43B in SaaS revenue will be generated in 2015, increasing to $132.57 in 2020, attaining a compound annual growth rate (CAGR) of 9.14%. The following graphic and table provides an overview of Forrester’s Global Public Cloud Computing market size analysis and forecast for the years 2011 to 2020. Source: Institut Sage.
- IDC predicts that by 2016, there will be an 11% shift of IT budget away from traditional in-house IT delivery, toward various versions of cloud computing as a new delivery model. By 2017, 35% of new applications will use cloud-enabled, continuous delivery and enabled by faster DevOps life cycles to streamline rollout of new features and business innovation. Source: 2015-2017 Forecast: Cloud Computing to Skyrocket, Rule IT Delivery.
- By 2018, IDC forecasts that public cloud spending will more than double to $127.5 billion. This forecast is broken down as follows: $82.7 billion in SaaS spending, $24.6 billion for IaaS and $20.3 billion in PaaS expenditures. Source: Forecasts Call For Cloud Burst Through 2018.
- By 2016 over 80% of enterprises globally will using IaaS, with investments in private cloud computing showing the greater growth. Ovum forecasts that by 2016, 75% of EMEA-based enterprises will be using IaaS. These and other insights are from the presentation, The Role of Cloud in IT Modernisation: The DevOps Challenge (free PDF, no opt in). The graphic below provides an analysis of cloud computing adoption in EMEA and globally.
- By 2018, more than 60% of enterprises will have at least half of their infrastructure on cloud-based platforms. These and other are insights are from the keynote Cloud Business Summit presentation Digital Business, Rethinking Fundamentals by Bill McNee, Founder and CEO, Saugatuck Technology. Source: Digital Business, Rethinking Fundamentals.
Microsoft’s latest study shows enterprises’ pace of cloud computing adoption continues to accelerate. Nearly half of the respondents (45%) report they have cloud-based applications running in production environments. 58% report that they selectively target new applications and projects for cloud computing.
Microsoft commissioned 451 Research to complete one of the most comprehensive global surveys to date of hosting and cloud computing, titled Hosting and Cloud Go Mainstream releasing the results earlier this month. The 74 page slide deck of results provides a wealth of insights into the current and future state of hosting and cloud computing. 451 Research constructed the methodology to include interviews with 2,000 companies and organizations of all sizes from 11 countries, with more than a third of respondents coming from the United States. Microsoft and 451 Research provided the slides showing the result of screener questions, which provides a useful context for analyzing the survey results.
Here are the key take-aways from the study:
- 45% of enterprises globally are running production-level cloud computing applications today. North America and Asia have the greatest percentage of enterprises reporting broad implementation of production cloud-based applications (17% each). North America has the greatest percentage of enterprises in the discovery and evaluation phase of cloud computing adoption at 29%.
- 58% of global enterprises are selectively target new applications for cloud computing, with 18% heavily relying on cloud computing for new projects. The following graphic shows the distribution of organizations’’ approaches to using cloud computing for new applications or IT projects.
- SaaS (71%) and Hosted Infrastructure Services (69%) are the two most common IT services currently purchased today, with 14% growth forecasted in each by 2016. The fastest growing category is Platform-as-a-Service (PaaS), with 37% purchasing these services today projected to grow another 26% in two years.
- SaaS is most prevalent in enterprises with over 500 employees, and Hosted Infrastructure Services, in government and education. Please see the graphic below for the distribution of responses by IT service and organization type.
- Spending on hosted private clouds will increase from 28% of spending today to 32% in 2016, with traditional dedicated infrastructure services dropping from 48% to 42%.
- The majority of SaaS users are employees (45%) followed by businesses (which could be interpreted as suppliers and the broader supply chain) (22%), consumers (18%) and business partners (including distribution channels (14%).
- Telephone conversations with customer support specialists is the most valuable form of communication (just over 60%) across all support channels. It is also the most preferred channel for SaaS support.
- Business applications (17%), databases (14%) and e-mail 12%) are the top three application spending categories today in hosted and cloud applications. The following graphic breaks out spending by hosting and cloud configuration.
- Having a well-defined architecture for security (7.7 out of 8.0), understanding who the end-users are (7.6) and train users to be cautious with access & security (7.5) in addition to having a well-defined architecture for performance (7.5) are the three top best practices for cloud computing projects.
- 44% of enterprises globally have “shadow IT”, meaning business units are spending their own budget on cloud computing projects outside of the IT approval processes. The following graphic provides the breakdown by type of organization included in the survey.
- 87% of respondents globally would recommend cloud computing to a peer or colleague and 13% would not. When asked why or why not, respondents most often mentioned a good experience and better service/it works (approximately 17%), followed by improving costs/cost effective/cheaper (approximately 16%). Security issues and concerns (25%) and uncertainty/it’s too new (approximately 16%) are the reasons for not recommending cloud computing.