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September 2014 capioIT Newsletter
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It's Our 4th Birthday!
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Millennials, Baby Boomers and the Cloud, salesforce.com services and  Happy 4th Birthday to capioIT

The past month has been one in which the impact of cloud has been reinforced more than ever before. As early adopters of cloud mature, it is clear that success in the cloud will not occur with a static and singular  strategy or approach by either buyers or sellers. An increasingly visible example of this relates to age of the target buyer of cloud services.  

Research by capioIT highlights an increasingly significant disconnect between the approach of Millennials and Baby Boomers to the cloud. The pivotal age has an over/under of approximately 50 years old. Our research has shown that a significant number of Baby Boomers (who also often tend to be cheque signers) have not yet fully crossed the chasm to widespread cloud adoption. Millennials on the other hand have not only leapt the chasm they are typically at the front end of innovation across PaaS, SaaS and IaaS and want more.

Of course these are generalisations and some of the most aggressive cloud adopters are Baby Boomers but it does highlight that a one size fits all approach no longer works for the cloud. The way an enterprise or agency sells cloud to its internal stakeholders has to take the age of stakeholders into account. Likewise a vendor must consider age when framing a selling and marketing approach to enterprise and agency customers in addition to the consumer market. For example, don’t bother selling the “Why Cloud?” to a millennial born in the cloud audience. They have moved well past needing to know why.

salesforce.com has been the most successful and important cloud and SaaS vendor to date. It has paved the way for considerable innovation and helped create new markets and was almost singularly responsible for the shift towards business dominating spending on technology and actively attempting to bypass the IT department.

It did not surprise that the services market for salesforce.com took a while to mature. Various vendors have struggled to create the most appropriate structures to drive sustained growth. As a result of this it is still an emerging market.

Not surprisingly with capioIT’s emerging market focus we have released our first ever Global Capture Share report on the salesforce.com SI and Services marketplace. Clearly there are results of interest across the analysis, but the key outcomes for capioIT were the following:

·         Successful legacy services firms in the salesforce.com Services and SI market have created a structure that aligns salesforce.com with growth and resources. Accenture leads in this respect followed by Deloitte and Cap Gemini

·         The SaaS services providers, notably Blue Wolf, Cloud Sherpas and Appirio have been particularly successful in this space. They collectively live in the cloud and are creating an ecosystem. Customers align to this cloud based culture.

·         Overall the laggards include many of the Indian based IT services vendors (HCL, Infosys) and legacy IT vendors such as Fujitsu and IBM who have not been able to, or not chosen to,  make the shift towards the SaaS services opportunity.

Whilst there is a lot of visibility and excitement for this report, if you have any questions please let us know.
For the first time in our short history capioIT has chosen to sponsor an event and support the Analyst Relations Forum in London this month.  This event is helping to showcase analyst firms who like capioIT, are looking to disrupt the analyst environment step by step and to remove some of the Stockholm Syndrome features that legacy vendors have inflicted on both the vendor and buy side.

PRIZE GIVE-A-WAY

Be the first of three to correctly answer the quiz questions below and a birthday prize will be on your way!!

GOOD LUCK
 
Quiz 1
capioIT's 4th birthday is on September 23rd. Which male musical celebrity do we share our birthday with?

Send Answer
Quiz 2
In your body you have over 400 joints. There are only two parts which can move without them. What are these?

Send Answer
Quiz 3
The new iPhone 6 will be launched September 9. To date, approximately how many iPhones has Apple sold. 

Send Answer
This month CEO Phil Hassey participated in the Sydney Colour Run. This five kilometer event raised money for many charities within Australia.

September is a very exciting month for us at capioIT. It marks the birthday of capioIT. On September 23rd, we officially turn four. We want to take the time to thank you for your support throughout our first four years. Everyone takes a risk when starting a business, clearly we did, but also our clients, supporters and stakeholders all had to believe that we could see our vision become real.
After four years that vision is real but importantly will always continue to evolve. The shifting market, client requirements and what we are passionate about has meant that we could not have guessed how capioIT would evolve, but we are very proud of what we have achieved and will continue to achieve. We look forward to working with you towards our fifth birthday and beyond. The support is genuinely appreciated. 
Capture Snapshots....

Short insights from July
  • Clearly IBM is gambling their future on softlayer cloud. Sydney launch was at the casino. Will they beat the house? The Indian launch was perhaps less prophetic but still successful  
  • Nike, Starbucks and Fitbit are all examples of firms that are truly disrupting multiple industries. Nike is now as much an analytics firm as a lifestyle experience.
  • Data3 announced a profit margin of just  1% on A$833M in sales. It is failing to shift to a higher level of client engagement. This is not unique for Australian based IT firms.   
  • In speaking with millennial households their consumption of content transformation is still evolving. Forget no landlines, they have no TV as they just download or stream on devices.
  • Always frustrated when online engagement is optimised for a browser with a 20% market share. This is not a digital centric experience and users simply  switch off.
  • Key challenge for technology departments and vendors is to identify and retain leaders who can drive customer satisfaction.
  • A New York State hotel threatened to charge guests $500 'bad review fee' was suitably hammered and Yelp was perhaps the biggest loser. Winning in social media is hard, and not helped by greed or stupidity
  • Idea from a popular post last year -> In the Customer Centric Organisation, Should the CFO Report to the CMO?
  • Tech vendors cannot be relying on Russia for growth. capioIT forecast that the technology growth will be negative through 2015, beyond that, no-one can make a genuine call. 
Our Latest and Greatest....

Certified salesforce.com Professionals for Global System Integrators – Accenture leads the way
The salesforce.com System Integration and Solution Services market is accelerating more than any other major enterprise technology platform. The salesforce.com market is innovative and transforming the way enterprises and agencies engage with their customers, stakeholders and overall ecosystem. As a result of this capioIT is increasing focus on this market.
One of the key attributes of the salesforce.com services market is the number of certified salesforce.com professionals that major services providers have within their ranks. The table below Read More...

Vendor Trust – Where has it gone?
In the course of wide ranging CIO discussion in the last few weeks around the region, and across topics from Information Management to Infrastructure Management, one thing that is appearing to be an increasingly significant problem is a decrease in trust that enterprises have towards their vendor.
Quite simply, the CIO is struggling to consistently trust their vendor/s. Clearly it would be incorrect to assert that all relationships between vendors and enterprises were lacking in trust but it is an increasing trend. It is an equally disturbing issue for both parties. The ultimate outcome of the lack of trust is too much time is spent with lawyers and contract and potential of an end to the relationship. Not enough time is spent on mutual innovation and development of suitable outcomes by vendors for all. Read More....

Solution based sales teams – Is there a Holy Grail or just Knights banging coconuts.
Having watched Month Python and the Holy Grail again recently, it made me consider the Holy Grail for many hardware and services companies. Simply, a sales team that can communicate and sell business outcome based solutions for their firms products. This then gets the next Holy Grail of a services delivery team. However, sales first.

Hardware and software firms and their partners have great box selling skills. However due to a large number of well discussed factors they are willingly making a push towards more solution and business outcome sales approaches. This is creating significant problems for sales teams. The skills required to sell a product is very different to those skills required for a solution. Skill transfer takes time and really is only possible in a very small majority of product based resources. However, this has not stopped every major vendor I talk with (basically all of them) having as a centre piece of their strategy the Holy Grail – solution enabled sales teams. This is not just a challenge for their direct teams. The indirect or channel teams also have this requirement. Read More....


capioIT would like to say

'Thank You'
For more information about our services or to discuss your research needs, please contact:

Phil Hassey CEO

+61 (0) 422 231 793
e: info@capioIT.com
t:  PHassey
s. phil.hassey

about.me/phassey

www.capioIT.com
Copyright © 2014 capioIT, All rights reserved.

NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice from capioIT. capioIT makes no representation nor gives any warranty as to the accuracy of future forecasts. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded.

 
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