Enterprise Apps Trends and Technologies in 2009

Enterprise Applications
scenarios 2009 What’s next?

Einat Shimoni
VP & Senior Analyst

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All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 7907000 www.stki.info

My Topics

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All will be covered in STKI Summit 2009

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All Rights Reserved @STKI Moshav Bnei Zion, Israel +972 9 74 444 74 www.stki.info

Presentation Agenda
Major changes in Enterprise Applications
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Technologies Maturity Model 2009
2

Technologies categorization
3

What are the most important apps areas for 2009?
4

Application “Mashups”
5

Considering alternative application models
6
4

IT Services Families
Reduce Expenses Increase Revenues

Increase
Increase
Increase Increase Increase
governance,
process
process Cut costs customer business
regulation &
Intelligence
efficiency stickiness agility
risk mng.

Regulation
Active BI
Green IT Social CRM BSC
compliance

CXO
DC Tech: virtualization Analytical
BPM management
BPM/BPA
etc. CRM
tools

Customer
Supply chain
Innovation IT
Employee Productivity Experience
intelligence
support tools Governance
Management

IT Sourcing models

IT portfolio
management

5

Changes in Enterprise Applications

• Organizations will require applications that are easy to
use, and quick to integrate
• Only projects with proven ROI will be considered
• Focus (dangerously) shifts to cost-cutting, and moves
away from innovation
• New application consumption models:
• Open source software
• Cloud and SaaS
• Subscription based pricing

6

Technologies Maturity Model
2009
Business Value
BPM
Investment Active
Collab. Web
to make money BI 2.0
CRM

Balanced Data IT+business
ERP 2
Cut costs, Increase Scorecard Governance, Project
MDM
productivity Oper.
Pure
CRM Business
Tactic
Ent.
BI Project
Search
ECM
Commodity IT ERP1

Services Size of figure =
complexity/
cost of project
Financial
Investment Non-
sector Finance
for regulations reg. sectors
reg.

Using Implementing Looking
Market Maturity 7

From non-discretionary to discretionary

Non-
Discretionary discretionary

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Technologies Categorization
2009
Business Value
Balanced
Revenues
Increase

BPM
Scorecard
Investment
to make money Active BI
Innovation
support
ERP 2 Financial
“Classic
Investment tools
Reduce

planning
Costss

BI”
to cut costs &
services Oper.
Increase
CRM
productivity Dashboards
Changes in
Core Apps

Commodity IT ERP ECM Portals
Maint
Services
Expenses

Finance
Investment
sectors
for regulations
reg.

Core & Needed Optional Value Growth Transform
Operations Enhancements Enhancements

Non-Discretionally Discretionally 9

Preparing for Post-Recession:
BPM
• To support product and service innovation, and quicker time to market

Collaborative CRM
• To promote the customer experience across all channels

Financial BI
• To help your CFO gain more control & visibility (and getting rid of all these excells)

Active BI
• To get more wisdom into processes

Balanced Scorecard
• For visibility and control

Tools that support Innovation
• To promote and support CONSTANT innovation

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Increase customer stickiness
Customer Centric Innovation
From “suggestion box” to interactive ideas sharing

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New business needs

• What will post-recession businesses look like?
• Need to mass-customize, not mass-produce
• Move from global to local businesses
• The business process will be the differentiator
• Minimize and manage real risks (rather then
comply with…)

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New Applications = Services Mashups

T6 T2
T1
T3 T8
T7
T5
T4

Gateway
T8
T7 T2
T7 T8
T6
T3
T1 T1 T5
T4 T2 T3 T4
T5 T6
Applications Infrastructure
Services Services

Puzzle Builder

All Rights Reserved 2008@STKI
Moshav Bnei Zion, Israel
+972 9 790 7000 www.stki.info
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What is Cloud Software?
Cloud services = More options for Mashups

Delivering
computing
services via
the Internet

Source: Appistry 14

SaaS: The “Long-Tail” of applications

# of Marketplace providers

Source: Gogrid

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Most common SaaS
• Applications that have a “network effect”
Travel management
Social software
• Niche/Point-solutions
• Commodity IT services
• Solutions that are easily separated from others

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And it is going quite well !

Source: Cutter 2008 SaaS survey
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SaaS Adoption Criteria

Source: Cutter
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Cloud in the Software industry: Life Cycle

ASP SaaS Cloud

• Vendor controls the data • Vendor controls the data • Platform-Centric
• Single instance “Vanilla” • No access to core components of •User controls the data
• Fully-customized software
software, no customization the solution
• … ASP wasn’t a bad idea, • Multitenant, one-to-many • Will become more
• Semi-customized software widespread in businesses,
it had BAD timing
• Will become more suitable for or for “heavy” processes
consumers, or for “lightweight”
processes
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Open Source Applications in Israel?

• From STKI Israel IT Survey 2008:
Most Israeli orgs prefer “proprietary” SW
Most aren’t using or considering Open
Source applications
Except High Tech companies that DO plan to
increase OS apps usage.

Will this change in 2009?
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Open Source Applications worldwide
• OS applications used by 65% of global enterprises

Have you deployed Open
Source Applications? 2007 2008
Yes 51% 65%
No 49% 35%

Main Reasons:
Cost cutting
Closeness to business needs – better functionality!
Source: Cutter IT Survey 2008
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Major Benefits adopting OSS
(Source: OpenIT, Actuate survey)
Which of the following does your company see as the
major benefits of adopting OSS ?

Source: Open IT, Annual Open Source Survey for 2008, September 29, 2008
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2

Open Source Software Pricing

Price of a WCM project based on open
source CAN BE 15-20% cheaper
But will not always be the best choice

Source: Water & Stone
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Subscription Pricing:

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Bottom Lines:

• The challenge: finding the right mix between
Apps that enable cost cutting
Apps that increase efficiency
Apps that grow the business
Apps that will help transform the business
• How?
Consider new models now available in enterprise apps:
SaaS for “long-tail” innovative applications
 Subscription based pricing will be much more available
 Open Source for areas with internal IT/WCM
 Create a mashup-ready environment

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More insights and on this topic:
www.einatstki.blogspot.com

Thank You!
Einat Shimoni
VP & Senior Analyst
www.einatstki.blogspot.com

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Enterprise Apps Trends and Technologies in 2009

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