Tech Titan SAP buys SuccessFactors for $3.4 Billion

Announced on a Saturday, this deal signifies that the Tech Titans may be loosening their purse strings to make acquisitions that help them with long term growth (see a related Aragon Research First Cut on SuccessFactors). For SAP, this signifies that a growth via acquisition strategy may be a long term play for them. Note that for others, such as the IBM Software Group, this strategy has worked successfully for years.

Aragon Research will be doing a full First Cut with analysis of this announcement, which was announced today, December 3rd, 2011. It is clear now that there is a trend that has Talent and HCM Suites appear to be coming together (see Aragon Research First Cuts: Talent and HCM Part I and Part II).

One thing that we will be looking at long term is how well does Enterprise Learning fit inside a Talent Suite. In Enterprise Content Management (ECM) for example, Web Content Management never really got absorbed as part of that Suite (note, Aragon Research covers Learning as part of its Knowledge topic).

In the short term, this will put some pressure on remaining providers of Talent Management Software (Cornerstone OnDemand, Saba Software, Silkroad, Sumtotal Systems, Taleo, Ultimate Software, Workday) on what they do:

1. Remain standalone;
2. Combine forces with another Talent or HCM provider;
3. Get bought by a bigger tech titan (ADP, IBM Oracle, SAP).

Regardless, this may signify that with the better unemployment numbers that just got issued in the US, that it is a good time for large enterprises to loosen their purse strings and make some acquisitions.

Stay tuned for our Aragon Research First Cut early next week.

Big Brother is Monitoring your Cell Phone

Depending on your device, your cellular carrier (or others) may be monitoring all of your activity on your cell phone. In a story that was broken by Trevor Eckhart and reported by Wired and others, it appears that a Mountain View, California based firm, Carrier IQ has an app that is installed on millions of phones. It tracks everything, the numbers you dial and the text messages you get. Watch the video below and see for yourself.

It appears that Carrier IQ's tool is used by Carriers to test their network etc. The big problem is that it is an app that cannot be turned off or opted out of by users. This is Big Brother at its worst. We don't know who else has access to this data.


Wireless Carriers like Verizon are distancing themselves from this and there has been no mention yet from phone manufacturers. This story is going to get bigger. Stay tuned....

A New Cisco

I've covered Cisco for years and this week attended their Collaboration Analyst and Partner Summit in Miami. While Aragon Research will be publishing a First Cut with our Analysis of their new product announcements, this blog post is about the changes I see occurring at Cisco.

Cisco really only started to make the true shift to Collaboration Software after it bought WebEx and it took a while to get the integration done. Cisco pioneered HD Video with its Telepresence offering and now it is poised to take that to the masses. Cisco has also innovated too. It's Enterprise Social Networking offering, Cisco Quad, was developed internally and is now deployed globally at Cisco.

CEO John Chambers has been the lead evangelist for Collaboration at Cisco, but that is changing. This week, Cisco SVP Barry O'Sullivan's General Managers were focused and on-message. The messages were integrated and so were the products.

Sometimes it takes a crisis to motivate a workforce and today I see a very motivated Cisco team that is ready to deliver their Collaboration vision to their customers. Since there were customers at the event this week, it was nice to see them start to tell the execution story.

What I see emerging is a new Cisco, leaner and more focused. In fact, I spent time with one of Cisco's  Account Managers, Matt Coleman, who brought one of Cisco's flagship customers to the event. Matt has the passion for Cisco Collaboration and it is clear that his customer does too.

Finally, what should have been the opening video at Cisco's event was shown at the end. It takes a lot of guts to show Executives doing a Rap Video (see below). You need to watch it several times, but the messages are as compelling as the video is entertaining.




What I see is an inkling of a new Cisco that is beginning to emerge. It isn't all about hardware anymore.

Social is the new KM

People are getting Social Media, Social Networking, Learning and Knowledge Management (KM) mixed up thanks to a few misleading blog posts by two of my former colleagues at Gartner. Or are they? If you read the responses at HBR, you will see that people are calling them on it. To be fair, Jeff Mann does get it and his blog is also counter what was being said (see his blog).

First, on taxonomy, here is how I explain social terminology to clients. 

Social Media is generally viewed as the public consumer grade sites, microblogs, forums etc. where discussions or chats take place (e.g. Twitter, Facebook, Linked-in, Youtube, Second Life). Using Social Media to market your products and support your customers is a good use of these mediums. 

Using Social Media to talk about your work is a bad idea, mainly because so many people are listening, including bad people that want to steal the intellectual property of the firm you work for. In fact, one of the research notes my firm recently published is titled, "Facebook is not a friend of your Enterprise". 

Social Networks, particularly Enterprise Social Networks are private communities, which when implemented properly with identity and access control, are safe places for people to share information, connect with people and accelerate the pace of knowledge dissemination at a company. Many enterprises are still formulating their social networking plans. They have deployed customer communities to build brand loyalty but often the internal social network is still a few steps behind.

On Knowledge Management, when Social Networking (an internal or external community) is done right, with certified profiles of people (what they are trained or certified on), and with the ability to collaborate with others informally, lots of great things start to happen. First, people in remote geographies connect with others, they solve problems and influence each other by the content and comments they share. Often there is an acceleration factor that kicks in, because the pace of interaction is faster and wider.

From a learning perspective, tying formal learning to informal activities, related content and discussions, is now referred to as Social Learning. It is real and it does work. There usually is an ecosystem manager that facilitates the correlation of formal training with some of the informal content, but at the end of the day, the Social Network, as it gets used more and more, becomes the Knowledge Network. People can search it and find what they need.

Since I've actually overseen the development of Social Networking platforms and also deployed Social Networks, I recently conducted a short poll of some Sales Execs who had been using one of the Communities for over a year. My simple question to them was this: "what do you use to find the information you need to do your job now?" Their answer was "we just search the network (community) and we find what we need". 

So, in reality, as an Enterprise Social Network gets used more, it will evolve into a Knowledge Network. People find what they need to do their jobs or they can ask someone in the community who can point them in the right direction. It is self-curated and self-sustaining, with a little help from the community manager and IT.

Hopefully, this has helped to clarify things. Social Networking and Social Learning are the new KM. We are covering Knowledge as one of our key topics in our Workplace Service at Aragon Research.

(Note: Jim Lundy is the Founder and CEO of Aragon Research.  He founded and led the Social Software and Collaboration team at Gartner and oversaw the Corporate Learning coverage for ten years).

The War for PeopleSoft is over: Someone forgot to tell Workday

In the year before PeopleSoft was bought by Oracle in a hostile takeover in 2005, there was a huge amount of drama in the marketplace (about whether the deal would go through due to anti-trust laws) and even Gartner was in the mix.

Oracle did succeed in buying PeopleSoft and most of the Senior Executives at PeopleSoft ended up leaving the company. Today, PeopleSoft is a successful part of Oracle and at Oracle OpenWorld last month, CEO Larry Ellison did a nice job of telling the Fusion story (the integration of a number of legacy products into a common platform). Oracle Fusion looks good and because of that and Oracle execution in general, Customers feel a lot better about Oracle than they did back in the day. The battle for PeopleSoft is over, Oracle won.

However, when you hear from an upstart called Workday, which features former PeopleSoft executives Dave Duffield and Aneel Bhusri, it sounds like the battle is not over. Workday is doing some great marketing (particularly with press and analyst influence), but as always with marketing and spin, you have to separate the facts from the fiction.

Today, Workday is still a pre-IPO start-up. Oracle is a Titan. Besides PeopleSoft, over the last few years Oracle has gobbled up Siebel Systems and most recently Sun Microsystems (this week they announced a $1.5 Billion deal to buy RightNow).

It used to be easy to bash Oracle, but times have changed and Oracle is bringing its A game. They make a compelling argument to the Enterprise CFO to consolidate and go with an all Oracle Suite. On top of that, Oracle also is launching their own Public Cloud.

Ripping out core HR is easier said than done, particularly when Oracle now has  Oracle Social Network, a full Social platform that integrates with its HR Suite. So, let the war of words continue and we'll see how both providers fare in the land of execution.

Gartner, Forrester and now Aragon Research

Since this is the week of Gartner Symposium, an annual ritual I attended for 12 straight years, I thought it would be good to put things in perspective.

Many colleagues I worked with (who ended up being real friends), joined Gartner when it had revenues in the $30M to $60M range. I joined when revenues were around $300M and left just after they hit the $ 1 Billion mark.

During my time at Gartner, we grew tired of the ex-Gartner-ites at Meta Group (nearly all were from Gartner), so Gartner CEO Gene Hall bought them. Then the Meta and Gartner internal turf wars started and things got interesting.

Forrester is the one large analyst firm left that still has relevance, particularly outside of IT. They have their strengths and weaknesses just like Gartner. While I was at Saba, I was a customer of both firms. More on that later. Will Gartner buy Forrester? Only time will tell.

One resounding theme I've heard from end users and vendors alike is that there isn't that much choice anymore when dealing with analyst firms.  Offering choice and going back to real, hard hitting research and analysis is why we founded Aragon Research. There are lots of good bloggers out there, but there are not many analyst firms publishing research notes with real analysis and advice every month.

We offer a choice to enterprises and to technology providers and we have the track record that can help ensure you make the right technology related decisions to grow your business. Check out our website or our launch video and have fun at Gartner Symposium!

PS Make sure you wear comfortable shoes while in Orlando!

Collaboration and Content in the Cloud

First came ECM, then came Microsoft SharePoint, then Google took content to the Cloud. Now everyone wants to jump on the bandwagon, as sharing content gets even easier in the cloud. Lots of start-ups and existing providers are jumping in (Box, Dropbox, Citrix, IBM, Google, Microsoft, Mindjet) and many others. It is all about making access to content fast, easy and mobile.

At Gartner, I helped coin the term Basic Content Services (BCS) as a way to describe what, at the time were emerging capabilities in products like SharePoint, which was not full Enterprise Content Management (ECM). Microsoft didn't like the term BCS and started to proclaim themselves as full ECM.

Jump ahead to 2011 and files are larger, people (like sales execs) are using tablets for work, and email systems block the transport of large files. Some are calling this new capability Cloud Content Management and for vendors it is a hot market. There is a large amount of investment, mainly at Box, which is gaining significant attention in this space. As a result, there is also new M&A activity occurring (e.g. Citrix announced it is buying ShareFile). Expect to see a lot more in the coming months.

In 2011, it is about more than just putting content in the Cloud. People want to be able to collaborate too, and for those that remember, collaboration has always been part of the content management story. People need access to the content, but often they need to collaborate with others on it. Google established the collaborative content approach with Google Docs and now others are working hard to capitalize on that trend.

As a recent example of collaborative content, Mindjet now offers their mind mapping tool as a Cloud service, Mindjet Connect. You can create information maps, edit and collaborate on them, as well as manage content with this new cloud service. Additionally, Cisco recently acquired Versly, which allows users to collaborate within a Microsoft Office document.

Aragon Research is publishing a syndicated research note this month that reviews this shift towards Collaborative Content in much deeper detail. There are lots of choices that will emerge and it is clear that business leaders are not waiting for the old way of doing things with ECM.