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Category: SaaS

November 25th, 2009

SaaS and cloud computing: A look at the due diligence

Posted by Larry Dignan @ 2:32 am

Categories: Cloud computing, General, IT Management, SaaS, Software Infrastructure

Tags: Security, Software-as-a-service, Solution, Outsource, Outsourcing, Managed Hosting, Cloud Computing, Virtualization, It Operations, Business Operations

This is a guest post by TechRepublic’s Scott Lowe, CIO of Westminster College in Fulton, Missouri. Lowe walks us through the software as a service and cloud computing due diligence. For more posts like this see TechRepublic’s IT Leadership blog.

Cloud computing, software as a service, outsourcing… to me, these are all synonymous terms.  While “cloud computing” as a concept has gained tremendous traction and mindshare, the fact remains that this sector of computing is nothing more than today’s de jour term for outsourcing and the decisions around and challenges regarding outsourcing should remain front and center all the way through the process.

One of the first questions that comes up almost immediately after problem identification and before solution creation lies in the decision as to whether to build a solution or to acquire a product or outsource the development of a solution. There are a great many factors that go into this decision and here, I will discuss a few important points.  Over the past few months, Westminster College has had a number of opportunities to ponder this very question and our answers have been varied depending on circumstances.

Read the rest of this entry »

November 17th, 2009

Salesforce delivers solid quarter; Wall Street wanted more

Posted by Larry Dignan @ 1:21 pm

Categories: General, SaaS, Salesforce.com, Software Infrastructure

Tags: Salesforce.com Inc., Wall Street, Earnings, Sales Force Management, Sales, Larry Dignan

Salesforce.com reported strong third quarter earnings and raised its sales outlook for the fourth quarter, but investors weren’t impressed given the company merely met Wall Street expectations.

The company reported third quarter net income of $20.69 million, or 16 cents a share, on revenue of $330.5 million, up 20 percent from a year ago. Wall Street was expecting earnings of 16 cents a share on revenue of $324.4 million, according to Thomson Reuters.

Overall, Salesforce had a nice quarter to kick off its Dreamforce conference in San Francisco (statement). The rub: Many analysts were expecting Salesforce.com to beat estimates and raise its earnings outlook.

For instance, Cowen analyst Peter Goldmacher expected Salesforce to beat estimates. In a research note he said:

We continue to believe that Salesforce is well positioned to continue to beat and raise for the next two quarters given last year’s significant investments in sales and marketing, solid execution, low balled numbers and easy comps which persist into next year.

Salesforce did raise the sales outlook for the current quarter, but its earnings projections were in line with expectations. The company projected fourth quarter sales to be $340 million to $342 million. Wall Street was expecting $334.5 million. Fourth quarter earnings were projected to be between 14 cents a share to 15 cents a share. Wall Street estimate: 15 cents a share.

The reaction:

For the year, Salesforce is projecting earnings of 62 cents a share to 63 cents a share on revenue of $1.29 billion. That outlook is better than the guidance given in August, but on par with Wall Street’s outlook.

Salesforce said it expects to grow 15 percent to 16 percent for fiscal 2011.

By the numbers:

  • Salesforce had 67,900 net paying customers, up 31 percent from a year ago.
  • The company ended the quarter with $1.07 billion in cash.
  • Deferred revenue was $545 million, up 16 percent from a year ago.
  • The company had 3,814 employees as of Oct. 31.

Despite a solid quarter, some analysts expect some tough sledding ahead for Salesforce. Goldmacher said:

We continue to believe that Salesforce doesn’t have the market dominance or a broad enough product lineup to compete in an intensifying pricing war against Oracle at the high end and Microsoft at the low end. Despite the occasional big deal win against Oracle, we believe enterprise buyers are more interested in a holistic approach to CRM that mandates a broader IT investment. We believe Microsoft’s developer dominance at the low end of the market will help make a bundled Dynamics and Azure offering very appealing on price. While Salesforce has hitched its wagon to the ‘cloud’, we believe that the cloud is about far more than CRM and a proprietary development language. We believe the cloud is all about capacity utilization at scale to drive price performance. While we salute Salesforce’s marketing prowess in creating awareness of the cloud, we don’t believe it will be one of the ultimate winners.

November 17th, 2009

FusionOps launches business intelligence, process automation modules

Posted by Larry Dignan @ 2:10 am

Categories: Business Intelligence, ERP, General, Oracle, SAP, SaaS

Tags: Process Automation, SAP AG, ERP, FusionOps, Pricing, Business Intelligence, Tools & Techniques, Enterprise Software, Databases, Marketing

FusionOps, an on-demand enterprise performance management company, will launch a new business intelligence module that may compete with the very ERP vendors it partners with.

If successful, FusionOps could be on to something big, but it has some tricky waters to navigate. FusionOps’ business intelligence tool—called Insight—promises to plug into a company’s enterprise planning system and deliver a return on investment in 12 weeks. FusionOps will first connect to SAP and later Oracle.

“Our initial focus is on SAP. then Oracle,” explained Ram Mohan, CEO and president of FusionOps. “We wanted to be very ERP centric with the ability to derive metrics and get data from ERP systems. We understand SAP data models and are a software partner.”

FusionOps’ business intelligence tools, which will be self-serve, will ride shotgun with a process automation service called Streamline. According to Mohan, the business intelligence module can be integrated and running in hours. FusionOps secret sauce is that it takes read-only access to SAP data documents, uploads them to a data center (hosted by RackSpace) and then provides a dashboard with metrics, reports and key performance indicators.

The company has priced Insight at $100 per user with enterprise data hosting of $3,000 a month per company. There’s minimum of 10 users.

The company also launched an on-demand service dubbed Streamline, which automates procurement and supplier management processes. FusionOps is pitching ROI in 8 to 12 weeks. Streamline is based on functionality needed and subscriptions start at $5,000 a month.

Here’s the pitch:

It’s hard to argue with the return potential with a SaaS-based business intelligence tool, but Mohan acknowledges some potential conflicts. After all, SAP bought Business Objects for business intelligence and Oracle owns Hyperion. Are these two giants really going to let FusionOps poach customers in the long run?

“I see the conflict with BusinessObjects,” said Mohan. “BusinessObjects is a tool that derives a lot of metrics, but it’s cumbersome. Customers can use BusinessObjects, but if they want to see metrics out of the box they can use our service.”

Mohan’s bet: FusionOps’ pitch of metrics in a day will trump a 6 to 9 month implementation. “Our biggest competition is ERP vendors,” said Mohan.

November 11th, 2009

Putting SaaS revenue in perspective

Posted by Larry Dignan @ 8:36 am

Categories: General, SaaS, Software Infrastructure

Tags: Revenue, Software-as-a-service, Software-as-a-service Enterprise Revenue, Software As A Service (SaaS), Operational Accounting, Managed Hosting, Emerging Technologies, Finance, Larry Dignan

Software as a service enterprise revenue is expected to hit $7.5 billion, up 17.7 percent from 2008, according to a report this week from Gartner. That’s a pittance compared to the current enterprise software giants.

Here’s the breakdown:

Now $7.5 billion is a decent chunk of change, but here’s the reality:

  • $7.5 billion in SaaS revenue is less than the sales garnered by Microsoft’s entertainment and devices division for the year ended June 30 ($7.75 billion).
  • $7.5 billion is less than a third of Oracle’s annual revenue of $23.2 billion. And Oracle collected $11.7 billion in fiscal 2009 license updates and product support revenue.
  • For the nine months ended Sept. 30, SAP reported total revenue of 7.48 billion euro ($11.2 billion at current exchange rates).

The good news is that Gartner projects SaaS revenue to top $14 billion in 2013. That’s big news right? Well not really.

  • Microsoft pulled in $14.7 billion in client revenue for the year ending June 30.
  • Microsoft’s business division (Office) had fiscal 2009 revenue of $18.9 billion.
  • In 2008, IBM had software revenue of $22.08 billion.

November 8th, 2009

Cisco unveils collaboration, e-mail and social tools for the enterprise

Posted by Sam Diaz @ 9:01 pm

Categories: Cisco, General, Google, SaaS

Tags: Acquisition, Video, Cisco Systems Inc., Tool, Corporate Communications, E-mail, Collaboration, Groupware, Marketing, Online Communications

Cisco is placing bets on the future adoption of collaboration tools for businesses by unveiling later today a enhanced suite of offerings, including a new social networking software designed for a corporate setting and a new cloud-based e-mail hosting service, as well as video and voice integration into the collaboration platform. (Statement)

The company said that the idea behind the new collaboration platform is to be less “document-centric” and more “people-centric” by working with voice, IM and video to create business-to-business communications - and meetings - more efficient. In part, that includes the ability to bring Facebook-like tools into the mix, but secure them in a way that meets the needs of a company. The company explains its social video system, called Show and Share, like this:

Cisco Show and Share is a social video system that helps organizations create and manage highly secure video communities to share ideas and expertise, optimize global video collaboration, and personalize the connection between customers, employees, and students with user-generated content. It allows organizations to record, edit and share video with comments, ratings,. tagging and RSS feeds, ans speech-to-text transcripts can be uploaded for easy video search and viewing.

The other announcement - Cisco WebEx Mail - stems from the company’s acquisition of PostPath and offers a cloud-based system that also has Outlook interoperability. Through its acquisition of Jabber, the company also said it has integrated the XMPP standard to give it a secure but widely available presence in the collaboration tools.

In some ways, Cisco - which has been competing with companies such as IBM, HP and Dell in the data center - is now adding Microsoft, which recently dropped the price of its hosted versions of Exchange, Sharepoint, and Office Communications Server, and Google to its lineup of competitors with these new services. For some time, Google has been pushing its cloud-based apps for businesses and even scored a major deal with city of Los Angeles recently to manage its email system. And now, it’s previewing Google Wave, a Web-based, real-time collaboration tool that allows users across the Web to communicate with each other in e-mail like message thread or instant chats and share documents, videos, images, charts and more.

Under the Google Wave approach, users can open the collaboration projects, or “Waves,” to anyone over the Internet, allowing collaboration with anyone via the Web. Cisco’s new offering also breaks down the walls of the traditional network, allowing users to work with customers, vendors and others who normally might have been locked out of the collaboration process

Cisco said that, upon rollout, its mail offerings - priced “somewhere south of $8 per mailbox per month” but still being finalized - will be cloud-based only while the collaboration platform will reside on-premise. Eventually, the company will offer the ability to split data between the two worlds - on-site and in the cloud - but still sees companies being more comfortable with e-mail in the cloud than they are with collaborative documents and correspondence in the cloud.

The company has been vocal about its visions for the future, notably its belief that video will be “the center of everything” in future communications. With this push into collaboration software, the company is subscribing to the idea that e-mail is losing some of its luster as a tool for conducting business. Anyone who’s ever exchanged two dozen emails with a half-dozen people just to set up a meeting knows how ineffective e-mail can be when working with teams.

Cisco has been transforming itself during the economic downturn to be more than just a networking company by the time the economy started to recover. As part of the movement, it’s been beefing up its offerings, largely through acquisitions. In October alone, it made three acquisition announcements - $3 billion for Tandberg, a video conferencing equipment maker, $2.9 billion for Starent, a provider of mobile Internet Protocol gear, and $183 million for ScanSafe, an Internet security company.

Last week, it presented Wall Street with better-than-expected first quarter results and said - several times - that it was seeing signs of the beginning of an economic recovery.

October 29th, 2009

With Chargify, Web 2.0 and SaaS businesses can bill with ease

Posted by Andrew Nusca @ 1:41 pm

Categories: Cloud computing, General, SaaS, Software Infrastructure, Web 2.0, Web Technology

Tags: Web, Software-as-a-service, Billing, Credit Card, API, Chargify, Zuora, Web 2.0, Sales Channel, PCI

If you’re a small Web 2.0 business, you shouldn’t have to build an application from scratch to properly bill your customers.

That’s the thinking behind Chargify, a billing and subscription system by TechCrunch50 startup Grasshopper. The company’s API and hosted payment solution makes it easy to integrate the system into an existing website, allowing businesses to charge customers on a recurring basis, manage subscriptions, comply with PCI regulations and intelligence from billing.

I spoke with Grasshopper CTO and co-founder David Hauser about how his solution is different from FreshBooks, Zuora, Vindicia, MoneyBird and other competitors.

I also spoke with lead developer Michael Klett about how the system actually works.

Read the rest of this entry »

October 22nd, 2009

RightNow Technologies CIO talks datacenters, ERP and Windows 7

Posted by Larry Dignan @ 10:00 am

Categories: Datacenter, ERP, Gartner Symposium 2009, General, Hardware Infrastructure, IT Management, Infrastructure, Microsoft, SaaS, Software Infrastructure

Tags: Data Center, ERP, RightNow Technologies, Microsoft Windows 7, Data Centers, Enterprise Resource Planning (ERP), Microsoft Windows, Storage, Enterprise Software, Hardware

While attending Gartner Symposium/ITxpo 2009, I spoke with Laef Olson, CIO of RightNow Technologies, about the company’s IT plans for 2010. Olson discussed RightNow’s plans to consolidate and rework its datacenters, an upcoming ERP implementation, and the company’s migration to Windows 7.

October 22nd, 2009

How to know when to send your email to the cloud

Posted by Larry Dignan @ 3:25 am

Categories: Cloud computing, Gartner Symposium 2009, General, IBM, IT Management, Microsoft, SaaS, Web Technology

Tags: Gartner Inc., E-mail, Online Communications, Larry Dignan

Email will ultimately move to the cloud/software as a service model, but the math may not add up for larger companies. How do you know when to make the jump?

Gartner analysts Matthew Cain and James Lundy went through the cloud vs. on-premise email conundrum, but what really made the presentation was a series of charts that serve as decision grids for making a move.

I’ve talked to a bunch of IT executives at the Gartner IT Symposium in Orlando and many of them were at least pondering moving email to the cloud. Gartner reckons that 20 percent of email seats will have a SaaS or cloud model by 2012. In addition, smaller companies will lead the cloud email charge, but large enterprises will tag along. Bottom line: Cloud email costs will be 50 percent less than their on-premise counterparts in 2012.

Here’s the comparison:

Lundy and Cain said that email will move to the cloud for the following reasons:

  • Hosted models can deliver significant economies of scale. Most organizations don’t scale past tens of thousands of users, while hosts will ultimately provide services for millions of users.
  • Browser-based email will lower costs.
  • Storage will be cheaper for cloud email providers.
  • And the offline access problem will be solved. Gartner expects hosts like Microsoft and Google to offer offline email access in a browser with a 30-day cache.

Nevertheless, cloud email won’t be for everybody. Enter the second useful chart from Lundy and Cain.

The big takeaway is that you have to consider cloud-based email in long-term planning. The challenge is that there are multiple players. Gartner also expects that Cisco will enter the hosted email game to join Google, Microsoft, IBM and a bevy of others.

October 21st, 2009

SaaS: Shelfware as a service?

Posted by Larry Dignan @ 5:13 am

Categories: Gartner Symposium 2009, General, SaaS, Salesforce.com, Software Infrastructure

Tags: Software-as-a-service, Shelfware, Software As A Service (SaaS), Managed Hosting, Cloud Computing, Emerging Technologies, Larry Dignan

Software as a service is portrayed to be the future of information technology, but it isn’t quite the cure-all it’s cracked up to be. Shelfware and lock-in may not save you a lot of money.

That’s the message from Gartner analyst Rob DeSisto.

Here’s DeSisto’s talk at the Gartner IT Symposium in a nutshell:

Read the rest of this entry »

October 12th, 2009

Salesforce.com, Dell target SMBs

Posted by Larry Dignan @ 7:25 am

Categories: Dell, General, Hardware Infrastructure, SaaS, Salesforce.com, Software Infrastructure

Tags: Salesforce.com Inc., Dell Computer Corp., Small And Medium Business, Sales Force Management, Sales, Larry Dignan

Dell and Salesforce.com said Monday that they will team up to target small and mid-sized businesses.

The announcement, which coincides with Oracle’s OpenWorld, goes like this:

  • The companies will launch certified Dell-Salesforce.com customer relationship management bundles via the cloud.
  • Pricing will start at $9 per user per month.
  • Dell will essentially resell Salesforce.com to SMBs and offer integration services.
  • Dell’s Salesforce integration products include PowerEdge servers with integrated Salesforce.com CRM, a virtual integration appliance and a cloud integration service.

Dell and Salesforce.com have been tight partners. Salesforce.com’s data center is powered by Dell gear. And Dell is an integrator. Salesforce.com Marc Benioff and Dell CEO Michael Dell will present in a session at OpenWorld. Dell is also a keynoter.

October 7th, 2009

Compuware buys Gomez for $295 million; Bolsters SaaS footprint

Posted by Larry Dignan @ 6:47 am

Categories: Datacenter, General, Infrastructure, SaaS, Software Infrastructure

Tags: Software-as-a-service, Gomez Advisors Inc., Compuware Corp., Software As A Service (SaaS), Managed Hosting, Cloud Computing, Internet, Emerging Technologies, Larry Dignan

Compuware on Wednesday said it will acquire Gomez, which monitors Web applications, for $295 million in cash.

At first glance, the deal seems like an odd fit. After all, Compuware’s list of products includes IT portfolio management, mainframe and monitoring applications. Gomez is focused on Web load and performance monitoring as well as analytics. However, Gomez does work in data center consolidation, mobile Web deployment and cloud computing.
Read the rest of this entry »

October 6th, 2009

Helpstream aims to be bridge for social CRM, marketing and returns

Posted by Larry Dignan @ 5:00 am

Categories: Enterprise 2.0, General, SaaS, Social Media, Social networking, Software Infrastructure

Tags: Customer Service, Community, Monitor, CRM, Helpstream, Customer Relationship Management (CRM), Advertising & Promotion, Enterprise Software, Software, Marketing

Helpstream on Tuesday launched a new module that aims to bridge customer service, social media and tangible marketing results.

Helpstream, which is a social CRM software-as-a-service provider, acts as an add-on to what Oracle and Salesforce.com offer. What’s notable about Helpstream’s latest module is that it is trying to quantify the links between customer service, marketing and social media. The main effort: Integrate business processes with social customer service.

Read the rest of this entry »

September 24th, 2009

NetSuite launches iPhone app

Posted by Larry Dignan @ 6:00 am

Categories: Apple, Apps, General, NetSuite, SaaS, Software Infrastructure, Web Technology, iPhone

Tags: Apple iPhone, NetSuite Inc., NetSuite iPhone App, Enterprise Resource Planning (ERP), Smart Phones, Web Technology, Enterprise Software, Software, Consumer Electronics, Personal Technology

NetSuite on Thursday said it has launched its cloud ERP system via an application for the iPhone and iPod touch.

With the move, NetSuite has most of its mobile devices covered. NetSuite has apps for the iPhone as well as BlackBerry and Windows Mobile devices.

The NetSuite iPhone app has had more than 1,000 downloads in the first two weeks of availability. The NetSuite app features real-time dashboards that aggregate enterprise resource planning, customer relationship management and e-commerce data. NetSuite also provides access to calendar, lead and prospect data, customer records and productivity tools.

Read the rest of this entry »

September 15th, 2009

Feds launch Apps.gov; Cloud computing players salivate

Posted by Larry Dignan @ 11:41 am

Categories: Amazon, Cloud computing, Enterprise 2.0, General, Google, Government, SaaS, Salesforce.com, Social Media, Social networking, Software Infrastructure, VMware

Tags: Agency, Amazon.com Inc., Apps.gov, Government, Cloud Computing, Virtualization, Advertising & Promotion, Vertical Industries, Hardware, Marketing

Updated: The Federal government launched Apps.gov, a site designed to be a storefront for approved cloud computing applications. The move is designed to streamline application adoption at federal agencies.

U.S. CIO Vivek Kundra said in a briefing Tuesday that Apps.gov is designed to lower costs and push innovation into government agencies. The cloud-based software on Apps.gov are housed centrally and available via various devices. Kundra billed the effort as “a one-stop source for cloud services.” The site features business applications, cloud services, productivity apps and social media software.

Read the rest of this entry »

September 14th, 2009

It's official: Intuit buys Mint.com; Plans to keep Mint.com and Quicken Online

Posted by Larry Dignan @ 8:39 am

Categories: General, Intuit, SaaS

Tags: Intuit Inc., Quicken, Mint.com, Personal Finance, Larry Dignan

Intuit said Monday that it will acquire Mint.com in a deal valued at $170 million. Intuit will keep Mint.com and its Quicken Online site and put Aaron Patzer, Mint’s CEO, in charge of its personal finance group.

According to a statement, Mint.com will give Intuit “another fast-growing consumer brand and a highly successful Software as a Service (SaaS) offering.” TechCrunch first reported the deal, which has garnered a good bit of buzz.

Intuit CEO Brad Smith has been aiming to become a leading SaaS company so it can spread its bets across multiple platforms including the desktop and mobile.

Mint.com founder and Patzer says the big appeal for the company was combining its user interface with Intuit’s market heft. Intuit said “Mint.com’s innovative capabilities can be applied broadly to millions of Intuit consumer and small business customers.”

Smart Planet: Why Intuit’s purchase of Mint.com is so smart

The two parties appear to be a good match. Intuit can take Mint’s ‘ways to save’ feature and apply it across its network. Mint.com can benefit from Intuit’s relationships with financial institutions for better integration.

The companies said that Intuit will keep both Mint.com and Quicken Online since they serve different audiences. Here’s the breakdown:

Mint.com will become the primary online personal finance management service that is offered directly to consumers by Intuit. Quicken Online will connect Quicken customers across desktop, online and mobile to deliver easy, anytime-anywhere access.

That approach lends credence to the theory that the Mint.com purchase is about two things:

  • Taking out a pesky rival before it becomes dangerous.
  • Gaining multiple channels to move Intuit’s other products such as Quickbooks and Turbo Tax.

When the deal is done, in the fourth quarter Mint.com will be lumped into Intuit’s consumer group. Patzer will become general manager of the personal finance group reporting to Dan Maurer, senior vice president of Intuit’s consumer group.

Intuit expects the Mint.com purchase to cut its non-GAAP earnings for fiscal 2010 by 2 cents a share. GAAP earnings will be cut by 3 cents.

My take: Overall, I like the deal from a strategic perspective. Here’s why it’s smart for both sides:

  • Mint.com had a nice initial base, but would have hit headwinds from folks that remain skeptical about consolidating accounts with a startup.
  • Mint will benefit from the association with Intuit and gain more clout to forge partnerships with financial institutions.
  • Intuit absorbs a potential competitor for Quicken Online.
  • Intuit gains expertise and perhaps some user interface mojo—assuming Patzer sticks around.

September 10th, 2009

SuccessFactors: Backing into business intelligence?

Posted by Larry Dignan @ 2:30 am

Categories: Business Intelligence, General, SaaS, Software Infrastructure

Tags: SuccessFactors Inc., Business Alignment Category, Pricing, Business Intelligence, Tools & Techniques, Databases, Enterprise Software, Marketing, Software, Data Management

SuccessFactors, a human resources software as a service company, on Thursday will detail a series of moves to tackle “business execution” applications. Will the SaaS vendor ultimately play the business intelligence software game?

Here’s the theory behind the company’s repositioning to be announced Thursday: SuccessFactors launched as a public company based on its employee performance management (EPM) software. That people performance market is estimated to be about $15.9 billion by the company. With a move into business execution—sort of a lightweight business intelligence category—SuccessFactors can more than double its target market. The business alignment category is a $20 billion market.

Also see: SuccessFactors plots another course: Business execution software

It’s an interesting move. SuccessFactors is essentially saying that you can view the performance of your company through the human resources prism. In a nutshell, EPM boils down to employee reviews and evaluation. SuccessFactors has dabbled with business alignment through modules focused on employee goals and whether they are lined up with enterprise objectives.

Read the rest of this entry »

September 9th, 2009

SuccessFactors plots another course: Business execution software

Posted by Larry Dignan @ 9:01 pm

Categories: Enterprise 2.0, SaaS, Software Infrastructure, Web Technology

Tags: Software, SuccessFactors Inc., Business Alignment Category, Software As A Service (SaaS), Managed Hosting, Cloud Computing, Emerging Technologies, Larry Dignan

SuccessFactors on Thursday will detail plans to enter the “business execution” software market.

Software as a service player SuccessFactors, best known for its employee performance management (EPM) applications, is charting a course that could more than double its total addressable market. The people performance  market—SuccessFactors’ current market—is estimated to be about $15.9 billion by the company. With a move into business execution—sort of a lightweight business  intelligence category—SuccessFactors can more than double its target market. The business alignment category is a $20 billion market.

Read the rest of this entry »

September 1st, 2009

Cast Iron, Amazon partner to push migration to EC2 cloud

Posted by Sam Diaz @ 3:15 am

Categories: Amazon, General, SaaS

Tags: Amazon.com Inc., Migration, Cloud, Registration Information, Data Center Virtualization, Software As A Service (SaaS), Storage, Hardware, Data Centers, Data Management

You’ve no doubt heard all the buzz about virtual data centers and doing business in the cloud, as well as all the money that can be saved.

But when it comes time to do make the move, there are a lot of things to think about. Will all of the data move to the cloud or will some of it stay local? What about flipping the switch? How long does that take? Will the business have to go dark at any time? What happens to the business operations? moving your business - or parts of it - to the cloud and that money that can be saved.

Amazon and Cast Iron Systems, a provider of cloud integration services, will announce a partnership this week to marry Cast Iron’s Services and Amazon Web Services and offer enterprises a way to move their applications to the Amazon Elastic Computer Cloud (Amazon EC2).

Read the rest of this entry »

August 21st, 2009

Salesforce.com fires back at Oracle in SaaS war

Posted by Larry Dignan @ 5:28 am

Categories: Earnings, Economy, General, Oracle, SaaS, Salesforce.com, Software Infrastructure

Tags: Salesforce.com Inc., Software-as-a-service, Oracle Corp., Sales Force Management, Sales, Larry Dignan

In recent quarters Oracle has been taking aim at Salesforce.com, noting that its Siebel On Demand was poaching customers. On Thursday it was Salesforce’s turn to return fire.

Following Salesforce’s fiscal second quarter earnings, CEO Marc Benioff, as chatty as ever, took aim at his trash talking nemesis, Oracle chief Larry Ellison.

Benioff said on a conference call:

Read the rest of this entry »

August 20th, 2009

Salesforce delivers strong second quarter, ups outlook

Posted by Larry Dignan @ 1:35 pm

Categories: Cloud computing, General, SaaS, Salesforce.com, Software Infrastructure, Web Technology

Tags: Revenue, Salesforce.com Inc., Earnings, Sales Force Management, Operational Accounting, Sales, Finance, Larry Dignan

Salesforce.com delivered strong second quarter results and upped its financial targets for fiscal 2010.

The company on Thursday reported net income of $21.2 million, or 17 cents a share, on revenue of $316 million, up 20 percent from a year ago. Wall Street was expecting earnings of 15 cents a share on revenue of $312.7 million.

In a statement, Salesforce said that it added 3,900 net paying customers to hit a total of 63,200. Net paying customers are up 32 percent from a year ago.

In addition, Salesforce’s financial targets were in line with estimates or better than expected. To wit:

  • Salesforce is projecting third quarter earnings to be 15 cents a share to 16 cents a share on revenue of $323 million to $324 million. Wall Street was looking for earnings of 15 cents a share on revenue of $319 million.
  • For the fiscal 2010, Salesforce sees revenue between $1.27 billion to $1.28 billion. Earnings will be 60 cents a share to 61 cents a share. Wall Street is expecting earnings of 60 cents a share on revenue of $1.265 billion.

By the numbers:

  • Deferred revenue in the second quarter was $549 million, up 14 percent from a year ago.
  • The company had $1.03 billion in cash, cash equivalents and marketable securities as of July 31.
  • Salesforce ended the second quarter with 3,653 employees, up from 3,607 in the prior quarter.

Larry DignanLarry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.

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