November 24th, 2009

EuroCloud UK and a lesson in SaaS marketing

Posted by Phil Wainewright @ 4:53 pm

Categories: Business models, CRM, Collaboration, Content management, Europe, Uncategorized

Tags: Email List, Software-as-a-service, Marketing, U.K., Eventbrite, MailChimp, E-mail, Software As A Service (SaaS), Managed Hosting, Cloud Computing

In the midst of a busy schedule the past couple of weeks I’ve been preparing for the launch meeting in London of EuroCloud UK, the British instance of the Europe-wide SaaS and cloud industry community network that was first unveiled last month. Any readers from UK SaaS or cloud ventures who will be in London this Wednesday are welcome to come along, by the way — there will be quite a few people there from some of the country’s key players — but please make sure you register online (using the link above) before you come to make sure your name is on the guest list.

Acting as EuroCloud UK co-ordinator, I’ve found myself in the past few weeks making some snap buying decisions about online services that I imagine are similar to the decisions many SaaS prospects in start-ups and small businesses are making every day. Trade associations, like government organisations, have to be conscious of the need to be economical in how they spend the funds entrusted to them, so I’ve been wary of incurring commitments. Furthermore, the organisation is as cash-constrained as any start-up — until we start signing up members, we’re decidedly pre-revenue. We’re time-constrained too, since none of us involved in the start-up team are getting paid for our time.

Short of time, short of cash, unwilling to make big upfront commitments: how do such customers make their buying decisions? I thought it might be instructive to share some of the thought processes I’ve gone through with readers of this blog.

The need to promote the launch and track registrations for the event created the first really crucial ‘crunch moment’ when a buying decision had to be made. Read the rest of this entry »

November 21st, 2009

Taming the Chatter cloud

Posted by Phil Wainewright @ 5:14 am

Categories: CRM, Collaboration, Microsoft, Salesforce.com, Social computing

Tags: Salesforce.com Inc., Collaboration, Social Computing, Enterprise 2.0, Marc Benioff, Chatter, Social Networking, Online Communications, Marketing, Advertising & Promotion

Not attending Dreamforce, it appears I missed a telling moment, the irony of which I would have enjoyed had I been there to witness it in person. It seems Salesforce.com has announced a new feature named after that most social of activities, Chatter, which aims to bring to the enterprise the functionality seen in social network tools such as Twitter and Facebook. But as Marc Benioff later told a gathering of press and analysts, it’s not a social network, oh no.

As I wasn’t there I can only go from what’s been reported. But it seems Benioff (no doubt guided by his marketing advisors) has decided to follow the advice promulgated at the recent Enterprise 2.0 conference in San Francisco — by no less a figure than Enterprise 2.0 guru Andrew McAfee — not to overuse the word social in front of business software buyers when talking about, erm, social computing. “I have rarely come across a word that has more negative connotations to managers in enterprise organizations,” McAfee warned his audience two weeks ago.

Benioff this week was devastatingly forthright about why social isn’t going to figure in his sales team’s lexicon when they tell customers about Chatter. According to VentureBeat’s Anthony Ha (my emphasis added):

“Salesforce was careful to position Chatter as a collaboration tool, not a ’social this or social that’ because there’s such a glut of social networking tools, he said, and customers are more willing to pay for collaboration software. ‘We really want to talk about collaboration, because that really is a budget item for our customers,’ Benioff said.”

So there we have it. Chatter’s going to be positioned as a collaboration tool, because that’s what customers are willing to pay for. I can still see problems ahead for this product, on three fronts, but let’s deal with that positioning question first, because I have quite strong views about it.

Interestingly, Microsoft seems to share no such qualms Read the rest of this entry »

November 15th, 2009

Can the Economist entirely be trusted?

Posted by Phil Wainewright @ 3:16 pm

Categories: On-demand, Utility computing

Tags: Economist, Cloud, Phil Wainewright

I think a publication with the renowned integrity and impartiality of The Economist would have the sense to put its hand on its heart and say, ‘We try our best and we’re the best there is, but no, you can’t entirely trust any source.’ But if it were put in a position of asserting its trustworthiness against alternative publications it would surely have no choice but to speak out with a resounding voice in its own favor.

Thus I ask all my readers to vote a resounding ‘no’ to the proposition in the current Economist Debate, “This house believes that the cloud can’t be entirely trusted.” I’ve written here about many of the pitfalls to be avoided in the cloud, as with any computing platform, but the alternatives to a good cloud provider are far too flaky to be worth considering.

As fellow Enterprise Irregular Vinnie Mirchandani recently posted to the debate (and to his own blog), “the incumbent, on-premise establishment … can overprice, under-deliver, cause massive overruns, suck out 80% of our IT budgets for routine work — but we need to keep trusting them.” It is no surprise that the heritage of buggy, unproven and unwarrantied software that businesses and individuals have been saddled with by the established vendors over many years has led us to instinctively mistrust any computing that forces us to rely on a third party.

Yet despite our understandable caution, it is far better to trust the cloud, where security and performance are continuously open to public scrutiny, where costs can be predictably mapped to actual value delivered and where the technology is constantly kept up-to-date for no extra cost or disruption to the customer. Provided the buyer makes proper due diligence and precautions, there is in my view no alternative form of computing that is more trustworthy.

November 5th, 2009

Microsoft cuts BPOS price to squeeze Lotus

Posted by Phil Wainewright @ 2:13 am

Categories: Business models, Collaboration, Google, Microsoft

Tags: Google Inc., Microsoft Corp., IBM Corp., Microsoft Online Services, E-mail, Pricing, Public Relations, Groupware, Collaboration, Marketing Research

While most observers portray Microsoft’s sortie into online email and collaboration services as a titanic battle to keep Google off its productivity applications turf, the real target of this week’s price reductions is IBM’s Lotus unit. In a briefing earlier this week, Ron Markezich, corporate VP, Microsoft Online Services told me that most of his team’s customer wins are at the expense of the IBM division: “Seventy-five percent of our enterprise customers are coming from a non-Microsoft platform — predominantly [Lotus] Notes.”

The half-price reduction for hosted Exchange seats (from $10 to $5 per month) and a one-third cut in the cost of the full BPOS suite (from $15 to $10) is designed to keep those deals flowing through. IBM earlier this year introduced its own hosted LotusLive iNotes service at an aggressive $36 per user per year. Microsoft’s old pricing was at a level destined to give prospects pause for thought. At $60 per year, it’s close enough to raise fewer objections. The lower pricing will surely help, too, in those cases where Google’s $50-a-year service is the competition.

Interestingly, we now have a market price established for online corporate email services in the $35 to $60 per year range (indicative of a new price range for all categories of enterprise software?). As Microsoft VP Chris Capossela told CNET’s Ina Fried, “it’s the price that customers are really excited to buy our suite at … We’re pretty excited about the price and not so much focused on free services or the price Google or others might charge.” You bet.

Microsoft execs were happy enough to focus on Google when it came to throwing brickbats this week. Every briefing seems to have included a drive-by shooting directed at Google. “It takes more than a few billboards to win enterprise accounts,” Markezich told me, in a reference to his rival’s current ‘Going Google’ ad campaign. “There’s been a lot of investment in billboards. I question how much investment there’s been in enterprise capabilities.”

There’s also been a concerted effort to question the size of Google’s paying customer base. While Gmail is hitting the volume mass market, Microsoft currently has the edge in large enterprise accounts. Google spent a lot of PR dollars to promote its recent win of a 35,000-seat account at Rentokil Initial, along with its 30,000-seat contract with City of Los Angeles. Microsoft Online Services is currently scoring much larger wins, including a 110,000-seat implementation at pharma giant GSK, a “large number” of which are already deployed, Markezich told me. He also disclosed the existence of a much larger, as yet unnamed customer, currently “in the midst of deployment” to more than 300,000 users.