Click here to close now.

Welcome!

Virtualization Authors: Carmen Gonzalez, Ian Khan, Liz McMillan, Elizabeth White, Plutora Blog

Related Topics: Cloud Expo, Microservices Journal

Cloud Expo: Blog Feed Post

SaaS & Business Intelligence at Dreamforce

It's a great time to be in this business

SalesForce.com Journal on Ulitzer

I was lucky enough to be at Dreamforce 2009 last week and wanted to pen down a few thoughts while the event is still fresh in my mind. I don’t think there was any earth-shattering news there, and I got the feeling (both onsite and online) that a lot of people didn’t really grasp the value of Benioff’s announcement (or strategy) about “socializing” the platform with Chatter. 

I, for one, certainly couldn’t make sense of Colin Powell’s presence at one of the keynotes (not sure what he can possibly offer the world of SaaS but maybe I missed something).  But overall it was an enlightening conference and here are some of my impressions (and they pertain mostly to the SaaS BI realm).



First, the sheer number of bodies at the event was impressive. I understand 18,000 people took part and that is quite a large crowd given how undersold (to put it mildly) other conferences have been this year. Businesses have been reluctant to invest in conferences in 2009 as evidenced by abysmal attendance numbers and the rising popularity of “virtual conferencing”.  So if one conference was preferred over all others, it must have been Dreamforce 2009, because it seemed like everybody and his mother sent people there.

Second, I was impressed by the level of “education” the typical attendee exhibited. I didn’t really see or hear people asking basic “big picture” questions. Rather, the inquiries were very focused, deep, and to the point, revealing mature customers (buyers) who had done some serious homework. Actually, most of these folks have had meaningful experience in the cloud (some good, some bad) and knew how to hit the right vendor pressure points. From my standpoint, it is always vastly better (and more enriching) to deal with well educated buyers in a no-nonsense approach. This is exactly the user profile I experienced at Dreamforce.com manning the GoodData booth.

Third, and I realize this is subjective, but to be honest, there are a lot of small clueless companies out there having nothing to do with cloud per say who clutter these shows for the publicity of slapping “cloud” onto their marketing literature. I’m not going to name names, but let’s just say when you sell gardening shoes, mailboxes, or kitchen countertops, I’m not sure you should be spending marketing dollars on Dreamforce.

Fourth, I didn’t pick up any “religious” fervor at the show from either buyer or vendor sides. I assumed this was going to be a major rah-rah for everything cloud (with Open Source type of fervor) but I found the discussions to be much more measured and rational with most people objectively comparing both approaches (when applicable) with few pre-conceived notions. I believe this is a sign of industry maturation as people are getting better at separating the wheat from the chaff. I feel for the most part that SaaS limitations are well understood by most (not all) people and expectations are becoming more reasonable for the most part.

Fifth, I believe that SaaS beachheads have been claimed.  This is particularly true in the BI space. This has a lot to do with perception obviously but in my opinion, the winners and losers have already been tagged.  Most companies (if not all) are fairly new in the cloud space yet already, they have public reputations as in “these guys aren’t serious” or “these folks are the ones you want to talk to”.  Obviously first-to-market matters a great deal in any industry and cloud is no different.  Except with SaaS of course, you can be first to market with a virtual product (vaporware, in the on-premise world), and it takes longer for people to read the fine print but, eventually, they do.  When people have an interest in a particular SaaS domain, they go directly to the “top dogs” without stopping anywhere else.  I believe there is plenty of space for new companies in the cloud but for those having established an early lead (perceived or not, and with compelling technology), the future seems bright.

Sixth, everybody in the BI cloud space faces the exact same problems.  And no one has clear answers so this is still a very “trial and error” process.  The difference is between vendors who admit this, and those who don’t (mostly to themselves).  This is a sweeping statement but overwhelmingly, when you talk to other vendors, the same themes come out time and again.  Namely, how to scale fast enough (or onboard efficiently with minimal customer “touch”), and how to control sales and marketing costs which are turning out to be higher than anticipated.   Although adoption is growing, in my opinion, the technical hurdles are not remotely as high as the business ones.

Most of the BI cloud vendors have managed to get by on minimal engineering costs.  Offshore labor is cheap enough that you can afford competent engineering teams in India, Central Europe or China (to name a few) for literally dollars a day and minimal liability.  Some of these vendors are making ends meet with two-man engineering teams!  And only two I know of have engineering teams exceeding ten people. So clearly, the money pit is elsewhere.

And elsewhere is S&M (no, not the fun kind) namely Sales and Marketing. The original proposition for cloud was that the “service”, unlike traditional enterprise software, was going to kind of sell itself.  S&M budgets were going to be minimal. No more travelling field sales force, expensive face-to-face customer visits, pre or post-sales engineers.  It was all going to be “automatic” and on the web. But my limited experience contradicts this.

Because now, adoption and competition are growing.  For example nowadays in SaaS BI, you have dozens of vendors. You skim enough to get to the “serious” ones (see #5 above) and now you’re left with maybe four or five guys.  Next year, there will likely be ten serious contenders.  The more competition you have, the higher sales cycles and costs get.  Next thing you know, you’re back to boots on the ground and to a more traditional enterprise software sales models. This is the danger facing many SaaS players these days.  CEOs and investors are edgy about this emerging trend. It breaks the anticipated mold.

The other problem is what I call customer “touch-too-much”.  In a SaaS model, efficient on-boarding is crucial. This is not only about flipping the proverbial switch – because properly-engineered multi-tenant systems achieve this quite well – but more about the time it takes to get a user’s business problem solved.  Namely, the costly interaction spent on a given customer to handle specific needs and the amount of customization needed to achieve satisfaction (and final sign-off on the purchase order). POCs, sales cycles and marketing costs are growing.

This is a huge problem in the BI space because the requirements phase can be long and even there agility is not necessarily a Holy Grail.  The basic problem is simple: it is very difficult to remove the “human factor” when implementing BI.  Cookie cutter never satisfies a particular business problem entirely. The money’s in the customization and the subject matter expertise.  You must solve difficult business problems, not engineering ones.  The same challenges apply to software engineering, and history has seen a flurry of “blissful automation” endeavors fail in that space (remember 4GL?).  At the end of the day, you can’t remove what’s between the chair and the keyboard, and you can’t efficiently and consistently automate it in software – whether in the cloud or not.

Now, this is not so bad for a company like Salesforce.com because they’re a platform play.  So by definition, they provide efficient functionality (large offering surface), but it’s all fairly mediocre and “cookie cutter” – Users are free to (try and) customize their modules as they see fit.  In the analytics space, for example, Salesforce reporting and analysis is shallow. Consequently, users looking for customer data insight and trending statistics (say for pipeline analysis) will look for integrated solutions fitting their specific business needs.

But for the after-market players who “plug” into something like Salesforce, it’s a major hurdle. Unless they can very quickly and cheaply customize their offerings for a myriad of different business cases, and move through POCs quickly, the SaaS hosting and costing model won’t do them much good.  In my opinion, most existing BI SaaS vendors are currently struggling with this conundrum. Lucidera seems to have as well. Its demise was a shot across the bow.  The first SaaS BI player to move past this problem wins the game and keeps the investors happy.

I have a hard time thinking of a SaaS BI vendor currently striking a reasonable balance between zero S&M and massive S&M.  One on end of the scale, I see folks adamantly opposed to spending a dime on marketing and expecting serendipitous results. On the other end, I see vendors placing heavy bets on misguided or highly-targeted verticals.  I see both strategies as precarious and hope for more level-headedness in the coming months.

No matter which way this goes, we're in for a wild ride. No prisoners will be taken. It's a great time to be in this business.

Yours in BI.

Read the original blog entry...

More Stories By Jerome Pineau

Twenty years of extensive hands-on software development, application engineering, customer interaction, management and consulting experience spanning a diverse array of industries and business models.

Now a "full-service" sales engineer, solutions architect, evangelist, technical ambassador (or whatever you want to call it) in the business intelligence space, specializing in high-performance analytical database management systems (ADBMS).

@ThingsExpo Stories
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The worldwide cellular network will be the backbone of the future IoT, and the telecom industry is clamoring to get on board as more than just a data pipe. In his session at @ThingsExpo, Evan McGee, CTO of Ring Plus, Inc., discussed what service operators can offer that would benefit IoT entrepreneurs, inventors, and consumers. Evan McGee is the CTO of RingPlus, a leading innovative U.S. MVNO and wireless enabler. His focus is on combining web technologies with traditional telecom to create a new breed of unified communication that is easily accessible to the general consumer. With over a de...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
SYS-CON Media announced today that 9 out of 10 " most read" DevOps articles are published by @DevOpsSummit Blog. Launched in October 2014, @DevOpsSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce softw...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionality and provide short-term introductory projects that developers can complete between sessions.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity for developers, start-ups, and companies of all sizes to engage with SAP today.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...