Tag Archives: SaaS
Back in 2004, we saw the rapid growth of SaaS providers such as Salesforce.com. However, there was typically no consistent data integration strategy to go along with the use of SaaS. In many instances, SaaS-delivered applications became the new data silos in the enterprise, silos that lacked a sound integration plan and integration technology.
10 years later, we’ve gotten to a point where we have the ability to solve problems using SaaS and data integration problems around the use of SaaS. However, we typically lack the knowledge and understanding of how to effectively use data integration technology within an enterprise to integrate SaaS problem domains.
Lawson looks at both sides of the SaaS integration argument. “Surveys certainly show that integration is less of a concern for SaaS than in the early days, when nearly 88 percent of SaaS companies said integration concerns would slow down adoption and more than 88 percent said it’s an important or extremely important factor in winning new customers.”
Again, while we’ve certainly gotten better at integration, we’re nowhere near being out of the woods. “A Dimensional Research survey of 350 IT executives showed that 67 percent cited data integration problems as a challenge with SaaS business applications. And as with traditional systems, integration can add hidden costs to your project if you ignore it.”
As I’ve stated many times in this blog, integration requires a bit of planning and the use of solid technology. While this does require some extra effort and money, the return on the value of this work is huge.
SaaS integration requires that you take a bit of a different approach than traditional enterprise integration. SaaS systems typically place your data behind well-defined APIs that can be accessed directly or through a data integration technology. While the information can be consumed by anything that can invoke an API, enterprises still have to deal with structure and content differences, and that’s typically best handled using the right data integration technology.
Other things to consider, things that are again often overlooked, is the need for both data governance and data security around your SaaS integration solution. There should be a centralized control mechanism to support the proper management and security of the data, as well as a mechanism to deal with data quality issues that often emerge when consuming data from any cloud computing services.
The reality is that SaaS is here to stay. Even enterprise software players that put off the move to SaaS-delivered systems, are not standing up SaaS offerings. The economics around the use of SaaS are just way to compelling. However, as SaaS-delivered systems become more common place, so will the emergence of new silos. This will not be an issue, if you leverage the right SaaS integration approach and technology. What will your approach be?
The Informatica Cloud team has been busy updating connectivity to Hadoop using the Cloud Connector SDK. Updated connectors are available now for Cloudera and Hortonworks and new connectivity has been added for MapR, Pivotal HD and Amazon EMR (Elastic Map Reduce).
Informatica Cloud’s Hadoop connectivity brings a new level of ease of use to Hadoop data loading and integration. Informatica Cloud provides a quick way to load data from popular on premise data sources and apps such as SAP and Oracle E-Business, as well as SaaS apps, such as Salesforce.com, NetSuite, and Workday, into Hadoop clusters for pilots and POCs. Less technical users are empowered to contribute to enterprise data lakes through the easy-to-use Informatica Cloud web user interface.
Informatica Cloud’s rich connectivity to a multitude of SaaS apps can now be leveraged with Hadoop. Data from SaaS apps for CRM, ERP and other lines of business are becoming increasingly important to enterprises. Bringing this data into Hadoop for analytics is now easier than ever.
Users of Amazon Web Services (AWS) can leverage Informatica Cloud to load data from SaaS apps and on premise sources into EMR directly. Combined with connectivity to Amazon Redshift, Informatica Cloud can be used to move data into EMR for processing and then onto Redshift for analytics.
Self service data loading and basic integration can be done by less technical users through Informatica Cloud’s drag and drop web-based user interface. This enables more of the team to contribute to and collaborate on data lakes without having to learn Hadoop.
Bringing the cloud and Big Data together to put the potential of data to work – that’s the power of Informatica in action.
Free trials of the Informatica Cloud Connector for Hadoop are available here: http://www.informaticacloud.com/connectivity/hadoop-connector.html
Now in its third year (2012, 2013), The State of Salesforce Annual Review continues to be the most comprehensive report on the Salesforce ecosystem. Based on the data from over 1,000 global Salesforce users, this report highlights how companies are using the Salesforce platform, where resources are being allocated, and where industry hype meets reality. Over the past three years, the report has evolved much like the technology, shifting and transforming to address recent advancements, and well as tracking longitudinal trends in the space.
We’ve found that key integration partners like Informatica Cloud continue to grow in importance within the Salesforce ecosystem. Beyond the core platform offerings from Salesforce, third-party apps and integration technologies have received considerable attention as companies look to extend the value of their initial investments and unite systems. The need to sync multiple platforms and applications is an emerging need in the Salesforce ecosystem—which will be highlighted in the 2014 report.
As Salesforce usage expands, so does our approach to survey execution. In line with this evolution, here’s what we’ve learned over the last three years from data collection:
Functions, Departments Make a Difference
Sales, Marketing, IT, and Service all have their own needs and pain points. As Salesforce moves quickly across the enterprise, we want to recognize the values, priorities, and investments by each department. Not only are the primary clouds for each function at different stages of maturity, but the ways in which each department uses their cloud are unique. We anticipate discovery of how enterprises are collaborating across functions and clouds.
Focus on Region
As our international data set continues to grow we are investing in regionalized reports for the US, UK, France, and Australia. While we saw indications of differences between each region in last year’s survey, they were not statistically significant.
Customer Engagement is a Top Priority
Everyone agrees that customer engagement is important, but what are companies actually doing about it? A section on predictive analytics and questions about engagement specific to departments has been included in this year’s survey. We suspect that the recent trend of companies empowering employees with a combination of data and mobile will be validated in the survey results.
Variation Across Industries
As an added bonus, we will build a report targeting specific insights from the Financial Services industry.
We Need Your Help
Our dataset depends on input from Salesforce users spanning all functions, roles, industries, and regions. Every response matters. Please take 15 minutes to share your Salesforce experiences, and you will receive a personalized report, comparing your responses to the aggregate survey results.
SOA was born out of purposeful intent, to solve a specific problem in a particularly novel way: standards-based and interoperable service-based integration driven by the WS-* standardization efforts. It foreshadowed the fragmentation of the monolithic on-premise software providers and pre-dated the rise of a new cloud-centric world – and it arguably arrived too fast for many organizations to take advantage of it on-premise. The constant churn of WS-* specifications didn’t help the cause either.
Some IT shops got bogged down in religious arguments over WS-* vs. REST while others pushed on, bolting on service interfaces to existing application stacks and protocols and building new service infrastructure as an investment for the future. The result, as we all know, was a lot of hype and dashed expectations for some.
Fast forward five years, and the future foreshadowed by SOA is almost a reality. And while SOA (the acronym) may be dead, the need for a service-oriented architecture is very much alive.
We now live in a hybrid world, populated by cloud, social and on-premise applications, and the move to the cloud for business is a fait accompli — or at the least, inevitable. Cloud initiatives are fueling a new type of service-oriented integration – one where, unlike in the past, the approach is no longer strictly defined by protocols but rather by application services and event-based integration.
In this new world, IT no longer controls the architecture of the apps its business users use (or where they execute), and so consumers and providers – cloud apps, on-premise apps and systems – need to interact in loosely-coupled service-oriented ways. This evolution forces new integration realities that had for many been hidden from sight and kept within the domain of application owners.
Eight or nine years ago, when SOA fever was at its height, everyone was running around trying to transform their internal systems and build new and complex infrastructure to meet an incomplete technological imperative.
Today, the landscape has completely changed. The need for ESBs and tightly coupled integrations that expose the innards of your infrastructure no longer apply. Eventually, as applications move to the Cloud, there will no longer be much infrastructure left to expose. Instead, the integrations are and will increasingly be occurring in the cloud, over an open framework, through high-level service-centric APIs.
At Informatica, we’ve taken the lessons and imperatives of SOA – simplicity, data consistency and accessibility and security – and incorporated it into a platform that makes the promise of service-oriented, hybrid, event-driven integration a reality.
We’ve innovated, and now deliver tooling that both enables technically savvy application owners to implement integrations themselves and IT to assist. And we’ve also made it possible for application owners to consume data and business services and processes in an intuitive user interface that abstracts the underlying details of our hybrid integration platform.
The result is an integration platform that empowers application owners. This is what makes what we’re currently doing at Informatica Cloud so particularly exciting, and potentially disruptive.
SaaS companies are growing rapidly and becoming the top priority for most CIOs. With such high growth expectations, many SaaS vendors are investing in sales and marketing to acquire new customers even if it means having a negative net profit margin as a result. Moreover, with the pressure to grow rapidly, there is an increased urgency to ensure that the Average Sales Price (ASP) of every transaction increases in order to meet revenue targets.
The nature of the cloud allows these SaaS companies to release new features every few months, which sales reps can then promote to new customers. When new functionalities are not used nor understood, customers often feel that they have overpaid for a SaaS product. In such cases, customers usually downgrade to a lower-priced edition or worse, leave the vendor entirely. To make up for this loss, the sales representatives must work harder to acquire new leads, which results in less attention for existing customers. Preventing customer churn is very important. The Cost to Acquire a Customer (CAC) for upsells is 19% of the CAC to acquire new customer dollars. In comparison, the CAC to renew existing customers is only 15% of the CAC to acquire new customer dollars.
Accurate customer usage data helps determine which features customers use and which are under utilized. Gathering this data can help pinpoint high-value features that are not used, especially for customers that have recently upgraded to a higher edition. The process of collecting this data involves several touch points – from recording clicks within the app to analyzing the open rate of entire modules. This is where embedded cloud integration comes into play.
Embedding integration within a SaaS application allows vendors to gain operational insights into each aspect of how their app is being used. With this data, vendors are able to provide feedback to product management in regards to further improvements. Additionally, embedding integration can alert the customer success management team of potential churn, thereby allowing them to implement preventative measures.
To learn more about how a specialized analytics environment can be set up for SaaS apps, join Informatica and Gainsight on April 9th at 10am PDT for an informational webinar Powering Customer Analytics with Embedded Cloud Integration.
According to analysts, users spend the majority of the application development lifecycle in development and testing and the least amount of time in quality management and documentation. This is probably not very shocking to anyone in QA or on a testing team. But how much time is actually spent on test data management? In a recent webinar, more than half of the listeners polled say they spend between 30-40% of their effort on ‘data related tasks.’ (more…)
After having lived in China since May 2012, I’ve been fortunate to have met with the leaders of most multinational software companies, leaders of local firms as well as industry analysts. My inspiration for this blog is based on a conversation I had with a senior leader at a leading “cloud” provider. (more…)
The findings of the Cloud Market Maturity study, a survey conducted jointly by Cloud Security Alliance (CSA) and ISACA, show that government regulations, international data privacy, and integration with internal systems dominate the top 10 areas where trust in the cloud is at its lowest.
The Cloud Market Maturity study examines the maturity of cloud computing and helps identify market changes. In addition, the report provides detailed information on the adoption of cloud services at all levels within global companies, including senior executives. (more…)
Salesforce.com – a company that has become synonymous with the cloud – acquired over 100,000 customers and one million users within a span of just 10 years. Compare that to a traditional company like General Electric, the only company to be on the Dow Jones Index for over 100 years – it took them over five-times that many years to acquire the same number of customers. This goes to say that customers have been enamored by the cloud and its benefits – no software maintenance, rapid time-to-value, and subscription pricing – to name a few. No wonder, there are thousands of cloud applications and millions of users out there now. I’ve seen projections that the cloud computing market will grow to $241 billion by 2020. This might be a conservative estimate.