Notes from blog posts read today:
- Ratios of new license to maintenance revenues shift from 1:2 to 1:4 and in some cases 1:5. Enterprise software vendors now in a better position to convert perpetual business models to subscription business models. Do they have the guts and board approval?
- Indian System Integrators competiting for market share in Europe, Middle East, and Africa as they shift away from the North American market.
- Japanese CIO’s finally realizing that they need to break free from their existing ERP software vendor relationships. SaaS options now in consideration. Recent advancements by NTT to host Zoho, Siemens’ 420K employee move to Success Factors, and Flextronics 240k employee deal with Workday have shifted perception that SaaS can’t solve large enterprise requirements.
- Cloud computing - Broad acceptance that enterprises are interested - There's absolutely no question that cloud computing has moved into the mainstream of enterprise technology. Everyone from Microsoft to Accenture to HP to IBM to SAP admitted as much. With the worsening economic conditions and the maturation of cloud computing services, enterprises are actively investigating cloud computing. The main differences of opinion between the legacy vendors and companies like Salesforce and Amazon lie in how quickly and broadly companies will adopt cloud computing.
- Too much discussion of clouds at the infrastructure rather than platform layers - The entire cloud conversation at Structure was very focused on infrastructure. As Daryl Plummer of Gartner has noted, Cloud computing is not about infrastructure. It's about a new delivery and consumption model for IT services that are elastic, metered and abstract away the SW stack. The conference was mostly focused on the lowest layer of the stack and didn't really talk about how the cloud enables transformation at the business process level.
(Cross posted from cio-reinveted)