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GLG News by this Author

Cloud Computing: A Useful New Service Or An Overhyped Idea?

May 28, 2009

Analysis of:McKinsey Cloud Computing Report Conclusions Don't Add Up | www.cio.com

The technology components of cloud computing have been around for a while, but now they are packaged up so that IT businesses can buy a ‘cloud in a box’. Outsourcing cloud computing may or may not be cheaper than running it in-house, but the important thing is that IT businesses can get started more easily now in using cloud services to support their business processes.  For on-demand software vendors and providers of other web services, emerging cloud service providers provide the administrative support that many have been lacking, to complement the more exciting bit: their web-based products.

Electronic Health Records: Piecemeal and Decentralised Adoption

May 27, 2009

Analysis of:Electronic health records are wrong prescription for automation | www.ajc.com

The healthcare industry overspends on administration, relative to other industries. Automation through IT systems is clearly one of the solutions, but a centralised or uniform health records platform is increasingly not looking like the answer.  The healthcare system is so complex that Electronic Health Records (EHR) adoption will be department by department, region by region, and practice by practice. Healthcare specialists rather than generalist systems integrators are best placed to design such solutions. The challenge for implementers would then be integration with existing systems and it is here than the maligned centralist integrators such as BT, sponsored by decentralised healthcare providers, have a role to play in future.  

Metered Internet Billing Could Slow The Progress Of The ‘On Demand’ Software Industry

April 22, 2009

Analysis of:ISPs need to rally around metered billing | blog.telephonyonline.com

Time Warner and AT & T trials of consumption-based internet service charging Customer resistance to trials by AT & T and Time Warner of consumption-based charging for internet access, and suggestions that internet service providers should come together to promote a culture of scaled charging, have substantial implications for providers of business software based on continuous web services.   1.Web-based ‘On Demand’ software is becoming popular largely because of the welcome simplicity it brings to charging (especially in a recession).   2. Adding hidden costs of using ‘always on’ functionality could slow or reverse adoption.    3. Software vendors that have made multi-year investments in On Demand offerings will want to be involved in any industry-wide move to shift the basis on which internet access is sold.  

Oracle, SAP And Sage Results Show Software Services Is Where Pricing Power Remains - But For How Long?

March 31, 2009

Analysis of:Oracle results beat forecasts, plans dividend | www.reuters.com

Software service revenues growing whilst software licences are not. Software support is where software publishers' pricing power remains, but there are signs this may be weakening. Customers are starting to question service and support fees; resellers and implementers are getting squeezed as publishers protect their share of the customers' fees.  

Sage Q109 Results Show SMB IT Market Is Flat But Not Declining

February 6, 2009

Analysis of:Sage First-Quarter Trading Meets Management Targets (Update1) | www.bloomberg.com

Conditions in Sage's key UK, Mainland European and North American markets remain challenging but do not appear to have worsened in the quarter to December 2008. Strong cash generation based on recurring support contracts has enabled debt to be paid off, but currency effects have actually increased the reported level of debt in sterling compared with the start of the quarter. In previous cycles, SMB vendors have shown lower but less volatile revenue growth than those targetting larger businesses. This is again proving to be the case, with Sage's competitors generally performing better at the lower end of the market.    

How do open source software vendors get to profitability before their cash runs out ?

July 13, 2007

Analysis of:Open source’s benefits to business spelled out | computerworld.co.nz

Open source benefits are now well-understood and adoption is rising The challenge for vendors is now how to get to profitability before running out of cash  Red Hat shows the way by becoming the first open source vendor into profit

Microsoft low-price approach risks a low-profit customer base, while Salesforce.com continues to outgrow the market

July 13, 2007

Analysis of:Microsoft Prepares for Salesforce.com Skirmish | www.thestreet.com

Microsoft sends a signal about its low-price, high volume on-demand software strategy. This risks creating a low-revenue, high support customer base. Salesforce.com retains the leading market proposition and is growing faster than the market. It has not yet decided to slow its spending on expanding its customer base, suggesting competitors have not yet affected the returns to that investment strategy.  

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