Hybrid Customer Insight - Data Collection and Analysis from On-premise and in the Cloud

© 2010 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited

"Hybrid Customer Insight” Data Collection and Analysis On-premise And In the Cloud

Holger Kisker, Ph.D.

Principal Analyst

Forrester Research


1. Cloud Introduction

2. Why should you care about the cloud?

3. The cloud challenge of customer insights

4. Cloud changes business processes –based on customer insights

Agenda

© 2010 Forrester Research, Inc. Reproduction Prohibited4Source: Wipro Technologies (www.wipro.com)

What is cloud computing?

Cloud computing is:

A standardized IT capability

(services, software, or infrastructure)

delivered via Internet technologies

in a pay-per-use, self-service way.


Business value

Source: July 2010, “The Evolution Of Cloud Computing Markets” report


Level of sharing

Source: July 2010, “The Evolution Of Cloud Computing Markets” report


Cloud computing business model taxonomy

Source: July 6, 2010, “The Evolution Of Cloud Computing Markets” Forrester report






Agenda


0

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BP Virtualization Tools

Application Virtualization Tools

Middleware Virtualization Tools

Infrastructure Virtualization Tools

Dynamic BPO Services

Dynamic Applications Services

Cloud-based-Integration (CBI)

Dynamic Infrastructure Services

BPaaS

SaaS

PaaS

IaaS

Forrester‟s global cloud market sizing (US$ millions)

Source: April 21, 2011, “Sizing The Cloud” Forrester report

SaaS: $33b

SaaS: $78b


Base: 1,900 to 2,438 software decision-makers

By the end of 2012, 45% of all companieswill be using SaaS (60% in 2013!).

SaaS

IaaS

PaaS

BPaaS

Cloud adoption accelerates in 2012

Source: Forrsights Software Survey, Q4 2009, 2010, 2011

“What are your firm’s plans to adopt the following software technologies?”

(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”

“planning to implement in the next 12 months,” or “planning to implement in a year or more”)


Base: North American and European packaged software decision-makers at firms with 20+ employees

who currently use or are planning to use each application

“What are your firm’s plans to use software-as-a-service (SaaS) to

complement or replace the following applications?”

(Select one for each row)

25%22% 24% 24%

19%

11%14%

11% 11% 12%9% 9%

30% 33% 29% 25%26%

27% 21% 23% 22% 21%21% 18%

Complement with SaaS within 2 years Replace with SaaS within 2 years

SaaS first wave

(Current adoption: 20% to 30%)

SaaS second wave

(Current adoption: 15% to 19%)

SaaS third wave

(Current adoption: 14% or less)

25% to 50%

17% to 35+%Shooting star PLM: 11% to 34%

SaaS touches all business application segments

Source: Forrsights Software Survey, Q4 2011


Cloud computing delivers many different benefits

“How important were the following benefits in your firm’s decision to use SaaS?”

(Respondents who reported “Important factor” or “Very important factor”)

Agility

and

speed

Cost

Base: 920 software decision-makers at firms who are using or planning to use SaaS



Perceived benefits of cloud computing are shifting from cost and speed to business performance

Base: North American and European software decision-makers who

are using or planing to use SaaS

“How important were the following benefits in your firm’s decision to use SaaS?”

(Percent of respondents that selected 4 „important factor‟ or 5 „very important factor) (Select one for each row)

Source: Forrsights Software Survey, Q4 2009, 2010, 2011

“Lower overall cost” “Improve business agility”


“What are your firm’s plans to adopt the following software technologies?”

(Respondents who selected “Implementing, not expanding” or “Expanding/upgrading implementation”)

Base: Software decision-makers with 20+ employees

SaaS

IaaS

PaaS

BPaaS

Very large enterprises are using more cloud services than SMBs



“In [insert next year], what percentage of your software license spending will

go to the following types?”

Base: Software decision-makers

More flexible subscription deals cannibalize traditional software licensing

Note: Each survey predicts spending for the upcoming year.

Source: Forrsights Software Survey, Q3 2007; Q4 2008, 2009, 2010, 2011


“How valuable does, or would, your firm find the following features in software license agreements?”

(Respondents who selected “Valuable” or “Very valuable”)

Base: 2,198 software decision-makers with 20+ employees

Customers are demanding more licensing agility



Cloud

licensing

Cloud users

demand more

flexible

subscription

models

On-premise

licensing

Subscription will

continue to

cannibalize

perpetual

licensing

Base: 2,198 software decision-makers with 20+ employees who use the

software categories indicated above

Customer preference will change future licensing







Agenda

© 2010 Forrester Research, Inc. Reproduction Prohibited19 © 2010 Forrester Research, Inc. Reproduction Prohibited19

Customer

Who is using the SW?

What is used?

How is it used?

Enforcement

Licensing

Enhancements

• Implementation

Service Provider

• Account Manager

• Help / Service Desk

• Auditing

Customer

Insights

Customer Insights Via Channel

Software

Company

http://www.silhouettesclipart.com/wp-content/uploads/2007/06/building-clip-art.jpg

© 2010 Forrester Research, Inc. Reproduction Prohibited20 © 2010 Forrester Research, Inc. Reproduction Prohibited20

Customer

Who is using the SW?

What is used?

How is it used?

Enforcement

Licensing

Enhancements

Customer

Insights?

Data Security

Compliance

Governance

CLOUD

Cloud Blocks Customer Insights

Software

Company

In Cloud Computing Customer Insights Need To Be

Collected Directly From The Customer

http://www.silhouettesclipart.com/wp-content/uploads/2007/06/building-clip-art.jpg


Cloud changes channel dynamics

Traditional

Software

company

Solution

Partner

Technology

Partner

Value added

Reseller

Implementer

Customer

Cloud style

Service

Vendor

SaaS

Vendor

IaaS

Vendor

PaaS

Vendor

Telecom

Vendor

Customer

Cu

sto

me

r In

sig

hts

Customer

Insights






Agenda


Traditional SW Business Is Linear

Development (e.g. 1x per year)

Sales

Pricing & Licensing (e.g. 1x per 5 years)

Service & Support

Risk & Operations Mgmt

Planning Development Testing Shipment

Licensing Mainteance

RFI RFP Offer Signature

Implement FixesSupport

PacksUpgrade

Bus PlanRisk

AssessmentInvest Tracking

Traditional Software

Business:

• Linear Business

Processes

• One Process Starts

Over The Next

Process

• Discontinuity Favours

Business Growth


Every Department Feels Some New Pressures From SaaS Adoption

Source: October 12, 2010, “Tech Vendors Are Only Now Realizing The Full Implications Of SaaS” Forrester report


SaaS Requires Continuous Business Processes

Invent

Develop

LicenseDeploy

Support

Cloud

SaaS Software Business:

• Consinuous Business

Processes

• All Processes Run In

Parallel

• There Is No ‚Escape„


SaaS Requires Continuous Customer Insights

Invent

Develop

LicenseDeploy

Support

Customer

Insight

Continuous

Pricing Models

Continous Portfolio

Planning

Who

How

When

WhatWhere

Continous Risk

Management

Continous

Support

Continuous

Sales


Existing NONcloud

products and service

Transform your

product/business

Develop a new cloud

product/business

Two optionsfor each portfolio element


Forrester‟s SaaS readiness assessment for software vendors

Tier 1 Tier 2 Tier 3

Develop a new product on a cloud platform.

Transform your product.

Simply change deployment.


If you remember nothing else . . .

SaaS Changes The SW Business Dynamics3

Customer Insights Are A Cloud Challenge2

SaaS Requires Continuous Customer Insights4

SaaS Is The Biggest Cloud Opportunity1


Thank you

Holger Kisker, Ph.D.

+49 (0)69.9592.9862

[email protected]

www.forrester.com

www.twitter.com/hkisker


http://www.forrester.com/

http://www.twitter.com/hkisker

Hybrid Customer Insight - Data Collection and Analysis from On-premise and in the Cloud

Technology

Transcript of Hybrid Customer Insight - Data Collection and Analysis from On-premise and in the Cloud