Category Archives: Software as a service

Enterprise IT, Financial Results, News & Analysis, Oracle, Platform as a service, Software as a service

Oracle cloud sales boom but at what price?

Oracle plane However Oracle’s co-chief executive Safra Catz warned fiscal 2016 will be “a trough year for profitability as we move to the cloud.”

Oracle’s total revenues were down by 6% to $9.0 billion with the sales of ‘cloud plus on-premise software’ down 4% to $7.0 billion. Meanwhile, total cloud revenue has gone up in the last quarter by 26% (in US dollars) and Oracle made $649 million on pure cloud software. The two most successful categories of cloud software for Oracle have been SaaS and PaaS which accounted for $484 million, a rise of 34%. Cloud infrastructure as a service (IaaS) revenue was $165 million, a rise of 7%.

Expect the SaaS and PaaS revenue to grow by 50% in Q3 and 60% in Q4, said Catz. According to Oracle it won 100 Fusion Human Capital Management system contracts and over 300 Fusion Enterprise resource planning deals in the last quarter. Oracle said it is on target to sell and book more than $1.5 billion of new SaaS and PaaS business this fiscal year.

“We now have more than 1,500 ERP customers in the cloud, that’s at least ten times more ERP customers than Workday,” said Oracle’s other joint CEO, Mark Hurd. “It was a very strong growth quarter for our cloud business, with SaaS and PaaS bookings up 75% in constant currency and billings up 68% in U.S. dollars.”

Not everyone in Wall Street is convinced however. “While the company is showing some signs of cloud success, the meat and potatoes legacy database and app business is under major secular pressure,” FBR Capital Markets analyst Daniel Ives told MarketWatch.

Oracle’s Board of Directors declared a quarterly cash dividend of $0.15 per share of outstanding common stock.

Box, Enterprise IT, News & Analysis, Salesforce, Software as a service, Storage as a Service

Box and Salesforce unite for integrated in-app file management

mergerSalesforce and Box have worked together to integrate their respective cloud offerings so you can use files stored in Box without having to exit Salesforce. To this end they have jointly created a new Salesforce Files Connect for Box service, along with a Box software development kit (SDK) for Salesforce.

The Salesforce Files Connect for Box means that users of the former’s customer relationship management system can search, browse, access and share Box files from any device without coming out of their Salesforce app or jeopardising the existing access and security granted in Box.

The two firms claim the integration will make users of each service more productive, as content managed on Box can easily be connected directly to records, users and groups within Salesforce. The newly created cohesion between the two apps means that two Salesforce users can now collaborate together on material that is stored in the Box system.

The Box SDK for Salesforce aims to give developers license to use Box’s content management within any app built on Salesforce App Cloud. It also allows developers to embed Box’s content management functions within the Salesforce system. The upshot is that it gives Salesforce users mope options on the type of content they can use, even from specialised industries like financial services, healthcare and government.

Salesforce Files Connect for Box is currently being tested out by select customers and is expected on general release in Summer 2016. Box SDK for Salesforce is currently available for free on Github for developers.

Integrations like this help make it easier for enterprises to move to the cloud, said Box CEO Aaron Levie.

“As companies get more mobile, social and connected, it’s critical that anyone can instantly access the information they need, no matter where it is stored,” said Nasi Jazayeri, executive VP of Community Cloud at Salesforce.

Adobe, Content & Applications, Creative Cloud, Financial Results, News & Analysis, Software as a service

Adobe posts 22% Q4 revenue growth, driven by Creative Cloud

AdobeAdobe Systems has claimed it is only just starting to gain from cloud adoption, after reporting record earnings.

Strong growth in subscriptions to Adobe Systems’ Creative Cloud has contributed to the ninth consecutive quarter in which the software vendor topped market expectations, as it reported revenue of $1.31b in Q4 of the fiscal year ending in November 2015. Of this, revenue from its digital media business, including Creative Cloud, rose by 35% to $875.3 million.

The vendor added 833,000 new subscribers to the Creative Cloud in the three months ending in November, some 150,000 more than market analysts expected. Meanwhile, Adobe Marketing Cloud brought in $352 million in revenue thanks to an unexpectedly strong adoption of its software as a service (SaaS) offerings.

Adobe’s strong growth from Creative Cloud has come as enterprises and professionals have adopted the new model of purchasing apps like graphic design tool Photoshop, web design software Dreamweaver and web video building application Flash. According to Adobe 52% of its customers subscribe to the full Creative Cloud bundle, with the remaining 48% subscribing to individual products within the portfolio.

Adobe Systems’ Photoshop Lightroom is now the fastest growing app in its Creative Cloud, CFO Mark Garrett told Reuters. “It’s growing the most because it’s attracting hobbyists and consumers,” he said. Since these were people that would never buy Adobe’s products before, the Creative Cloud and the switch from traditional licensing to web based subscription has expanded its market, Garrett said. “Our financials show that the benefits of our move to the cloud are just beginning.”

Adobe’s digital marketing business, which makes software that analyses customer interactions and manages social media content, grew by just 2.3% in comparison, to $382.7 million.

The company’s shares jumped 4.7% to $93.10 following the release of its latest trading figures.

Cloud28+, Europe, HPE, Infrastructure as a Service, News & Analysis, Platform as a service, Software as a service

Cloud28+ promises to clear up the cloudy issues of compliance

Hewlett Packard Enterprise (HPE) claims its new Cloud28+ cloud service catalogue will simplify the search for compliant cloud services for European enterprises.

Cloud 28+ is a community of commercial and public sector organisations aimed at expanding cloud service adoption across Europe. The Cloud28+ catalogue, on the other hand, is a centralized enterprise app store which now lists 680 cloud services from 150 members across the range of Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) offerings. To date 1000 end user organisations have pre-registered to use the catalogue.

The matchmaking Cloud28+ service online catalogue, now on general availability, promises a broad range of benefits for European customers. It allows customers to specify data centre locations and providers, in accordance with local laws and business requirements. It will helps users to find cloud-native independent software vendors with whom they can partner and it will help companies market themselves more expansively by letting them publishing their own services in the catalogue. This could allow end user organisations to turn their IT teams into ‘revenue-generating engines’, claims HPE.

The main benefit of the Cloud28+ service catalogue, HPE claims, is that it gives open access to huge numbers of enterprise cloud services. This will help cloud buyers to compare the cloud market, on functional and non-functional criteria, including price, service level agreements and certification levels.

One of the main selling points of the system is that is makes it easier to comply with increasingly strict data protections laws in the EU, according to James Kinsella, founder of Zettabox a cloud storage and team sharing system and the latest addition to the Cloud28+ catalogue. “It’s a logical community for Zettabox to join, as its mission is to build a cohesive and collaborative cloud environment, for Europeans by Europeans,” said Kinsella.

The Cloud28+ technology framework is based on HPE Helion OpenStack. This will give it the portability of cloud services and eliminate vendor lock-in, said Xavier Poisson, Hybrid IT VP at HPE. “This is an important milestone on the journey to a European Digital Single Market,” said Poisson.

The overturning of the Safe Harbour agreement in European courts had tremendous implications for cloud service providers, according to one analyst. “It certainly makes services that comply with European data privacy requirements more attractive,” said William Fellows, analyst at 451 Research.

Adobe, Flash, HTML, News & Analysis, Software as a service

Is Adobe axing Flash under cover of Creative Cloud?

Adobe Animate screenAs an official Adobe blog hailed a ‘new era’ for Flash Professional, the software company seems to be sidelining its creation.

Apple boss Steve Jobs once famously dismissed Flash as proprietary software from the PC age. Now Adobe appears to be admitting it doesn’t have a role in the age of the cloud. While updating readers on developments in its Creative Cloud, Adobe reveals that Flash Professional CC is to be re-branded as Adobe Animate CC in order to “more accurately reflect the content-formats produced by this tool.”

Flash has long been heavily criticised because its proprietary nature made it unsuitable for the web. Jobs said Apple would never consider Flash for any of its phones tablets because “we know from painful experience that letting a third party layer of software come between the platform and the developer ultimately results in sub-standard apps.”

Latterly, the high power needed by devices running Adobe would make it unsuitable for the cloud, while the lack of openness would, in Jobs’ words, “hinder the progress of the platform.”

Adobe explains, in its blog, that “open web standards and HTML5 have become the dominant standard” and that “Flash Professional CC product team has embraced this movement by rewriting the tool from the ground up”. Adding native support for HTML5 Canvas and WebGL, in addition to supporting output to any format was such a ‘hug hit’ with Adobe customers that, in a short space of time, a third of all content produced in Flash Professional CC is HTML5-based, reaching over 1 billion devices worldwide.

The name change reflects the downgrading of Flash’s role in Creative Cloud. However, in another official blog post the vendor explains that Adobe Animate CC will continue to support Flash (SWF) and AIR formats ‘as first-class citizens’, as well as other formats like broadcast-quality video. “We will continue improving Animate CC’s HTML5 capabilities over time, while optimizing its core animation and authoring feature set,” said Rich Lee, senior product marketing manager for Creative Cloud web products.

In the cloud, it was the lack of stability and security that dissuaded Apple from using Flash.

Flash was highlighted by Symantec for having one of the worst security records in 2009. Steve Jobs once said he knew first hand Flash is the top reason for Apple device crashes. “We don’t want to reduce the reliability and security of our iPhones, iPods and iPads by adding Flash,” Jobs once said. Now, it seems, Adobe has accepted that Flash isn’t right for the cloud.

developers, Microsoft, News & Analysis, powerapps, Software as a service

Microsoft launches PowerApps for programming in the cloud

Microsoft powerappsMicrosoft has unveiled a new DIY programming system called PowerApps and new features for Office 365 and Dynamics CRM 2016 at its annual Convergence EMEA conference in Barcelona.

The new features in Microsoft Office 365, include meetings and voice services in Skype for Business while there’s a new customer engagement option in Microsoft Dynamics CRM 2016. Meanwhile Microsoft PowerApps is a new enterprise service that helps employees to create apps and share them with co-workers.

Office 365 now has options for a Skype Meeting Broadcast, Public Switch Telephone Network (PSTN) Conferencing, PSTN Calling and Cloud Private Branch Exchange. In addition Office 365 customers now have one platform for calling, conferencing, video and sharing, Microsoft claims.

There are new analytics and data visualization tools in the cloud package too. Delve Analytics promises interactive dashboards that tell users who they are spending their time with and how. This, says Microsoft, will help employees to prioritise better. The cloud package will have greater levels of security and compliance, it claims, through a new Customer Lockbox feature which allows each user to set access control limits. A new eDiscovery option makes it easier to manage large quantities of data and find information.

These new features, along with new Power BI (business intelligence) and Advanced Threat Protection are available in a new premium enterprise suite, Office 365 E5.

Meanwhile the new Dynamics CRM 2016, Microsoft promises, will be a more intelligent, mobile and productive system, thanks to new data and intelligence components. Among the features is a new ‘intelligent product recommendations’ mode for sales reps to personalize up-selling.

Dynamics CRM 2016 can also simplify everyday jobs, like meeting follow-ups.

On that same theme PowerApps is a system for creating apps for everything from a simple survey to something more ambitious and mission critical, according to Microsoft. These can connect to line-of-business systems and cloud services and run on any device. They can be used by everyone from employees through IT staff to Professional developers.

Dynamics AX, ERP, Microsoft, News & Analysis, Saas, Software as a service

Microsoft moves Dynamics AX into the cloud

MicrosoftMicrosoft says the latest incarnation of Dynamics AX will mark its transformation from a packaged application to a cloud service.

On Thursday the vendor announced the latest release of its flagship enterprise resource planning (ERP) system will be generally available in the first quarter of 2016. The main difference, it said, is that the ERP is now a service designed for the cloud.

A public preview of the new solution for customers and partners will be available in early December. The new name of the release, Microsoft Dynamics AX, reflects a departure from branding that reflected the year or the version of the product, a characteristic of software packages, it said. From now on the branding will underscore that Dynamics AX is a cloud-based service that will be regularly updated, it said.

Microsoft said it will also implement a new, simple and more transparent subscription pricing model to make it easier for companies to buy the system as they need it. Dynamics AX will offer a new user experience that looks and works like Microsoft Office and shares information between Dynamics AX, Dynamics CRM and Office 365, according to the vendor. It will also combine near-real-time analytics powered by Azure Machine Learning with the ability to visualise data through Power BI embedded in the application, in order to give users more predictive powers.

In response to usability analysis, Dynamics AX will have a browser-based HTML5 client and a new touch-enabled, modern user interface. Now that it’s a cloud system it will adopt the principles of highly visual applications more akin to consumer applications, according to Microsoft.

The classic rigidity of ERP systems has been replaced, according to Scott Guthrie, Microsoft Cloud and Enterprise’s executive VP. “Our ambition to build the intelligent cloud comes to life with apps optimised for modern business. When you combine the hyperscale, enterprise-grade and hybrid-cloud capabilities of Microsoft Azure with the real-time insights and intuitive user experience of Dynamics AX, organisations and individuals are empowered to transform their business operations,” said Guthrie.

Gemalto, News & Analysis, Research, software, Software as a service

Software market frustrating for enterprise users says Gemalto research

Software licensing is still causing enterprises grief, according to new research by security firm Gemalto. The biggest pain points and causes of frustration are the inflexibility of licensing arrangements and the unhelpful delivery options.

According to the State of Software Monetization report, software vendors must change if they’re to satisfy enterprise user demand. This means delivering software as a service and making it accessible across multiple devices, it concludes.

The disparity between customer demand and vendor supply has been created by the shift in tastes from enterprise software customers. This is a function of the ‘bring your own device’ (BYOD) phenomenon, which has been partly created by intelligent device manufacturers and mobile phone makers. However, despite creating the demand for more flexibility they have not been able to follow suit and provide a matchingly flexible and adaptable licensing and packaging technique for software, the report says.

The most frequently voiced complaint, from 87% of the survey sample, was about the cost of renewing and managing licenses. Almost as many (83%) complained about the time needlessly wasted on unfriendly processes for renewing and managing licenses (83%) and the time and costs that were lost to non-product-related development (82%). Most of the survey sample (68%) said they had little idea over how the products they buy are being used in the enterprise.

Four out of five respondents believe that software needs to be future-proofed to be successful.

The report was compiled from feedback from 600 enterprise software users and 180 independent software vendors (ISVs), in relation to headaches related to software licensing and packaging.

Software consumption is changing and customers only want to pay for what they use, according to Shlomo Weiss, Senior VP for Software Monetization at Gemalto. “Delivering software, in ways that customers want to consume it, is critical for creating a user experience that sells,” said Weiss.

Akamai, cloud applications. VPN, News & Analysis, Orange Business Services, Software as a service

Orange Business Services and Akamai offer 10x faster cloud access

Cloud computingOrange Business Services (OBS) and content delivery specialist Akamai claim they have worked out a way to give enterprise clients up to 10 times faster access to business critical cloud applications.

The new Business VPN Internet Accelerate service, available from OBS, was created using Akamai’s Cloud Networking technology. It optimizes software as a service (SaaS) access so that users don’t have to wait for cloud-based applications, dashboards and documents to open and save.

This, says OBS, will make their customer relationship management, enterprise resource planning and business intelligence activities more potent and productive. The performance improvement is made by tweaking the transport mechanism across the OBS virtual private networks that extend, via an IPSec tunnel, to branch offices in enterprises.

OBS said it improves the cloud user experience through five customer support centres and eight CyberSecurity Operations Centres where it analyses network traffic, constantly configures service levels and monitors security. The Orange business-grade Internet service relies on the global Akamai Intelligent Platform, a content delivery accelerator which has 200,000 servers in 110 countries to localize material. It uses Orange’s global private network of mobile, satellite and wireline access links.

Orange is currently running pilots of Business VPN Internet Accelerate with a number of enterprises. The service is scheduled to be globally available in early 2016.

Getting networks fit for a cloud future with business grade connectivity is vital, said Pierre-Louis Biaggi, OBS’s VP of Connectivity Solutions. “Business VPN Internet Accelerate allows enterprises to embrace global hybrid networks and the Internet,” said Biaggi.

The claim for ten times faster access speeds was based on the results of an Orange Proof-of-Concept between Paris and Singapore. The vendor did not disclose what system was used as a benchmark on which the ten-fold improvement was made.

Big Data, Content & Applications, Devcon Construction, Egnyte, News & Analysis, Software as a service

New Egnyte service promises to impose strict version in the cloud

AppsCloud file service provider Egnyte has launched a Smart Reporting and Auditing service which promises to impose order on the way content is created, edited, viewed and shared.

The service is currently exclusive to Egnyte customers who want visibility and control over their organisation’s entire content life-cycle, whether files are in-house or in the cloud. The rationale is to help companies stop wasting money on the multiplication of effort involved when multiple versions of the same file exist across the diaspora of in-house systems, private and public clouds.

The promised returns on investment in these cloud services, the company says, are lower costs, less risk and higher productivity through visibility. Cost savings are promised on reducing bandwidth consumption, minimised support issues and less wasted employee time. Risk will be minimised, according to Egnyte, as fewer files will be leaked out of the organisation and suspicious activities – both internally and externally – can be highlighted. Visibility improvements will boost productivity by speeding the progress of projects and the prevention of unchecked document replication and mutation, which leads to multiple teams working on multiple different versions of the same project.

Companies and vendors have still not cracked version control yet, said one analyst, and the cloud will only make the task more complicated.

“Content is at the core of just about every business process today, but users are accessing files across multiple devices, anywhere, any time,” said Terri McClure, senior analyst at the Enterprise Strategy Group. “It is entirely too costly and there is simply too much data.”

Solving the big data analytics problem will be increasingly important, said McClure.

Devcon Construction, the largest general contractor in Silicon Valley, has used the service on trial to track confidential design plans and blueprints. “It gives complete visibility on how the files are shared and accessed, so we can effectively manage desktop and tablet device workflows out in the field,” said Joe Tan, director of IT at Devcon Construction.

The cloud service now makes detailed file analytics and insights possible, claimed Isabelle Guis, chief strategy officer at Egnyte. “It’s critical for businesses to optimise file infrastructure and protect against potential threats,” she said.