Search Results for: wikis

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Dream Job for a Software Marketing VP @ Atlassian

Atlassian, a fast-growing, successful enterprise software company is looking for a VP of Marketing. I don’t normally broadcast job searches here, but am breaking that rule now for I believe this is a truly exceptional opportunity with a truly exceptional company. (Disclaimer: I have no business affiliation with Atlassian, but admit to being positively biased, as the company exemplifies a lot that I stand for.)

They are best known for two products: Jira, the issue tracking & software project management application was their first hit, putting the company on the fast growth track and establishing a loyal fan-base in the IT community.  Their existing reputation in the IT community certainly helped the second product, Confluence, the enterprise wiki gain traction: it is now equally popular in the IT and business community.  Wikis in general  have become more commonly known in the past two years; once a tiny market niche, today a growing field where new entrants pop up left and right, claiming to be best in this and that….  But numbers talk, and the verdict is clear: Confluence is the undisputed enterprise wiki market leader. 
Atlassian is not sitting on their laurels: in the past year they diversified, acquiring several companies and launching new products on their own.  Frankly, I lost track, but I believe  their portfolio currently includes 8 products, all part of an “IT toolkit”, with the exception of Confluence, which is seeing fast adoption amongst business users, too.  

The customer list is impressive: IBM, HP, SAP, Citigroup, Boeing, BMW, Shell, McDonalds, Pfizer … just about all the Fortune 1000, as well as non-profits, Universities, Government Agencies, totaling over 9000 customers worldwide. (The chart is a bit misleading: Atlassian’s fiscal year starts in June, and the FY08 bar shows the current figure only, excluding projections.)

How did they achieve this?  They must have an excellent sales force.  Wrong! Atlassian has no sales force at all.  They don’t sell: customers simply buy their products on their own.   I often talk about  the pull-model that’s replacing the traditional, expensive enterprise sales process (6-9 months, high touch, flights, meetings, wine-and-dining, entertaining, in the end often nuked by politicssmile_baringteeth) – but that’s typically in the context of Software as a Service, and in the SMB (small business) market.  Atlassian’s products are mostly on-premise (although they now have a hosted version of Confluence) and their primary market is the large Enterprise.  Yet they pulled off what amounts to a small miracle:  essentially took the download.com, tucows style model we all know as consumers, and ported it to the enterprise space. 

Of course having customers try-and-buy through the Internet is not as simple as firing your Sales team ( or not hiring one).  It’s not a matter of a decision: it’ s a consistently applied philosophy, that you have to implement in every aspect of your business.  The key components are:

  • lightweight software
    • well-defined function set, meets specific user need, small user groups can get started
    • ease of use (both easy to learn and easy to use)
    • well documented, well supported
  • transparency
    • features (what you’re getting, no surprises)
    • issues (Atlassian’s bug tracker is open to the public)
    • pricing (simple, upfront pricing, no fill-out-contact-form-wait-for-sales-to-call-back BS)
  • low price (“expensable, not approvable” – to quote a former competitor)

The “pull-model” means customers will need to find you- which is why Marketing is a critical function.  With Sales gone, Marketing becomes sales (actually, Atlassian’s CEO proudly says everyone is in Sales, especially Support).  So if you are a marketing superstar,  or know one, want to be part of a successful team, work for celebrities , you owe it to yourself to apply.

Atlassian is not only about business – it’s about people.  I know, old cliche.. but here it works.  The unique culture this team maintained throughout their super-growth even now that they have 130 people is a large part of their success.

So what is this culture like?  Tough. When he doesn’t make his numbers, Atlassian President Jeffrey Walker is forced to make up for it as ticket-scalper on the street. smile_omg OK, joke apart, this photo was shot last August, when the entire San Francisco office went to see a Giants game together. (Incidentally, just a day before Jeffrey became cancer dude). This wasn’t a rare occasion, either: both the San Francisco and the Sydney teams have a lot of fun together:  Cutlassian, Mission: Atlassian, theme-filled staff events, abound throughout the year.   Their new office  building in Sydney is right next to a pub (hint: when will you guys realize you’d be better off buying the entire pub?beer)  I wonder when the San Francisco office will move into a winery…  Perhaps you get the picture by now: Working for Atlassian isn’t just a job  – it’s a lifestyle.  But don’t for a minute think it’s a bunch of rowdy kids having fun only:  they bring in $30 million a year.  And if you don’t perform, this is what awaits you.

So that’s the magic formula: combine business success with a fun, team-focused culture and you’ve got the makings of the ultimate job.  (Are you still reading, or have you alerted your Marketing superstar friend yet?)

Now, if this is the ultimate job, there’s one question unanswered: How come it hasn’t been filled yet?  I wanted to hear the answer straight from the horse’s mouse so to speak, so I asked Atlassian President Jeffrey Walker, who responded below:

We were inundated with resumes, and found a few excellent capable candidates. Unfortunately, one of the growing pains of companies like ours is we were not quite ready for the right candidate. Incorporating someone of the caliber we need takes preparation. Our search began prematurely. Lesson learned. After the founders and I took another few ‘long walks’, we came out aligned and ready. This time I fully expect to complete the search. Just need the right remarkable individual.

Well, I did not walk with Jeffrey and the Founders, but I certainly hope they will not change a lot:smile_wink.  I have a lot to say on the subject of hiring, but it’s not specific to Atlassian, so I’ll break it out to a separate post.  In the meantime, if you are that “remarkable individual”, what are you waiting for?

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25 Tips for a Better Wiki Deployment + 1 Tip on How to NOT Use Presentations

Thanks to Stewart Mader I found this presentation on 25 Tips for a Better Wiki Deployment. As someone deeply interested in wikis and their use in business, I attempted to read through, but grew increasingly frustrated. Not because of the content, which is good, but the format. Why on earth have they (who?) delivered this in a presentation format?

All slides in this deck are divided in two half, one textual, the other graphical. Consequently they all show signs of the two cardinal sins of “committing” presentations.

1. – There’s way too much text. If you want me to read a story, you might as well type it up, use paragraphs, title fonts, bullet-points…etc, but don’t pretend it’s a presentation.

2. – Visuals are supposed to illustrate your point, capture my attention, shocking me, entertain me – whatever, just do something! This slide deck uses identical (rather boring, but that’s beyond the point) graphics on all 25 slides, which is just as good as no graphics at all.

In summary, the textual half of each slide is way too busy, the graphical half is a missed opportunity: this is NOT a presentation.

What’s a good presentation like? Enjoy the winners of the World’s Best Presentation Contest on Slideshare (hat tip: Guy Kawasaki)

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Email is Still Not Dead

Yet-another-email-is-dead-article, this time on Slate. It’s the same old argument: teenagers using IM, or increasingly SMS, and most recently Facebook instead of email which they find cumbersome, slow and unreliable – hence email usage will decline.

I beg to disagree. Sure, I also get frustrated by the occasional rapid-fire exchange of one-line emails when by the 15th round we both realize the conversation should have started on IM. Most of teenagers’ interaction is social, immediate, and SMS works perfectly well in those situations. However, we all enter business, get a job..etc sooner or later, like it or not…smile_wink Our communication style changes along with that – often requiring a build-up of logical structure, sequence, or simply a written record of facts, and email is vital for this type of communication.

Email in business is being “attacked” from another direction though: for project teams, planning activity, collaboratively designing a document, staging an event… etc email is a real wasteful medium. Or should I say, it’s the perfect place for information to get buried. This type of communication is most effective using a wiki. No, email is not dead, and it won’t be any time soon. But we all have to learn to use the right tool in the right situation. As usual, Rod Boothby says it better in a single chart:

(The above post is an almost verbatim reprint of an older one from July 2006. I rarely re-post old stuff, but in this case I felt it was still a valid point. And it still will be, next year when someone declares email dead again. smile_tongue)

Related posts: mathewingram.com/work, Techdirt, Fractals of Change, Don Dodge, WebProNews, Thomas Hawk’s Digital …, Andrew Hyde and This is going to be BIG., Rev2.org, CrunchGear, A VC , Good Morning Silicon Valley, Socialtext Enterprise … , Between the Lines, Publishing 2.0, Jonathan Nolen

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Zoho Suite Gaining Muscle

If you follow the online productivity / collaboration market, you’ve probably noticed that Zoho, the company that earned their fame releasing new products at breakneck speed is slowing down. But are they, really?

I think they are just going through adolescence – you know, the stage when you can grow muscles fast. smile_wink They’ve been silently updating several of their products in the past months. Today’s Writer update includes support for pagination, headers, footers and spell checking in 43 (!) languages. Incidentally, some of these are the very features the Burton group listed as missing from Google Apps in their recent report titled “Google Apps in the Enterprise: A Promotion-Enhancing or Career-Limiting Move for Enterprise Architects?” The original report is 55 pages long, but here’s the InfoWorld summary:

Microsoft Office has a huge lead in features over Google Apps, the Burton Group says, giving these examples:

— Documents: “Google Docs does not support a table of contents, headers, footers, automatic creation of footnotes or end notes.” …

Although the Burton report focused specifically on GAPE (Google Apps Premier Edition), it could be construed as criticism of the the web office market in general. Well, with today’s updates Zoho Writer meets all the Burton Group “requirements”. In fact, Zoho delivers most of what the Burton study considered missing features outside Documents, in the areas of spreadsheet(Sheet), presentation (Show), custom business applications (Zoho DB & Creator) , web conferencing (Zoho Meeting), and wikis (Zoho Wiki).

Several of the above services received updates in the past month – sometimes announced, other times silently appearing, without further ado. In fact that’s an obvious benefit of using web applications: the enhancements are simply available, without the need to apply annoying patches (I could go on listing failed client-side updates from Microsoft, Macromedia, Adobe.. you name it). Zoho CEO Sridhar Vembu explained his views on updates vs. new products recently. He is obsessed about eventually delivering the “perfect” web applications that fully stand up to Microsoft Office, and recognizes the limitations these services have today.

Frankly, I think he is a perfectionistsmile_wink and perhaps would not even need to go all the way…after all, the point in web applications isn’t simply to replicate the offline experience. Moving applications to the web opens new dimensions, namely mobility and easy, native collaboration. Today’s Writer updates are important, because in our legacy world the challenger is measured against the standards of the incumbent. But Microsoft Office was created at a time when the purpose of document creation was to eventually print it. In the 90’s we thought we’d reach the dream of “paperless office” only to see paper-consumption grow dramatically. (Secretary prints email, faxes it to boss, who makes hand notations, faxes it back for secretary to type again…smile_angry). Today, in the age of better online collaboration (that you can NOT manage on paper) and ergonomic large screens, who prints anymore?

So while I recognize the importance of layout-oriented features (user acceptance), the real value to me is in real-time collaboration (co-editing), version control and restore, embedded chat, web-conferencing, linking, linking and linking – the things that make web documents live. On a side-note, this is why I am surprised that the latest Web Word Processor entrant, Buzzword, beautiful as it is, does not support entering URL’s and real-time co-editing: those omissions defeat the purpose of being on the web.

By the same logic I find Box.net’s Openbox a significant move: it allows to store one’s files online, while making it really easy to use a range of services, initially including Autodesk, Echosign, eFax, Myxer, Picnik, Scribd, Snipshot, Thinkfree, Twitter, Zazzle and Zoho on those files. There will be users who prefer the All-in-one concept, and they will likely settle on Google (bigger brand) or Zoho (more and better apps), but others will prefer picking their individual services, and for those Openbox is a good platform. Choice is good.

Related posts: Wired, CenterNetworks, Mashable, web 2.0 weblog, Zoho Blogs.

Update (10/17):  Google Docs added footnote support.

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Beating Social Media’s 90:9:1 Rule in the Enterprise

The 80/20 rule is out (so last century), 90:9:1 is in: the rule of participation in public communities, social networks, wikis:

  • 90% of users are lurkers (i.e., read or observe, but don’t contribute).
  • 9% of users contribute from time to time, but other priorities dominate their time.
  • 1% of users participate a lot and account for most contributions: it can seem as if they don’t have lives because they often post just minutes after whatever event they’re commenting on occurs.

90:9:1 is a pretty good fit for most public wikis, starting with Wikipedia. Ben Gardner observed very different numbers: 50:25:x (he does not specify “x”). The interesting number here is 25, or it’s relationship to 50, meaning:

When the same question was asked about our corporate wiki ~50% of those present had used it but about ~50% of those had edited it.

Active participation in a corporate environment is much higher than in the public domain – this is not really a surprise, since the corporate wiki is used by people of real identities and reputations, and most importantly, shared objectives. This is also why Prof. Andrew McAfee hasn’t seen vandalism – a plague of public wikis – in the corporate world at all.

I suspect that 25% can go a lot higher, depending on the purpose of the wiki. When after the initial “grassroots movement” management fully embraces the wiki not as an optional, after-the-fact knowledge-sharing tool, but the primary facility to conduct work, it becomes the fabric of everyday business, where people create, collaborate, and in the process capture information. When the wiki is the primary work / collaboration platform, participation is no longer optional. Not when the answer to almost any question is “it’s on the wiki.” smile_wink

My earlier posts on this subject:

(hat tip: Stewart Mader)

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Enterprise Bloggers, Openness and a Thriving Ecosystem

I started this post a week ago, than canned it, not wanting to be part of the “storm in a teacup“, created by Oracle’s announcement that they would open up their annual OpenWorld conference to bloggers for the first time. The software giant also actively reached out to 30 or so bloggers, including several of my fellow Enterprise Irregulars.

It appears that most EI’s will not attend, partly since Oracle does not pay for expenses, partly because there is no word about access to Executives. More important than the expense issue was the reasoning:

“We’re not picking up travel costs or expenses, sorry. This will keep you impartial. If you see me, I’ll give you a pat on the back, how’s that instead?

Ahhh…the enterprise bloggers must be a bunch of prima donnas, used to getting their full expenses paid at SAP’s annual conference and other events.. SAP “bought them” and they are biased, right? Wrong.

The reality is that unlike the press and analysts, the group bloggers are often lumped into, may of us are independents or are in small businesses, don’t have corporate expense accounts to lean on, and simply can’t afford to travel to conferences on our own. Even on a fully reimbursed trip, taking 3-4 days off business is a significant sacrifice. Of course that’s the bloggers’ side, why should Oracle care? Whose loss is it anyway?

What does SAP get for the not-so-negligible travel budget they spend on enterprise bloggers? The one thing they don’t get is bias, “loyal”, positive reviews.
Fellow irregular and ex-Gartner Vinnie Mirchandani can hardly get more critical, regularly beating up SAP on issues like pricing, maintenance, innovation (or lack of) – yet he is invited back to all SAP events. Fund Manager, former SAP investor and blogger Jason Wood is also a regular at SAP events, which certainly does not prevent him from expressing his doubts / concerns. Dennis Howlett is no exception, and the list could go on.
SAP’s recent announcement of their new hosted SMB solution, Business ByDesign is another good example. While most of the media reprinted SAP’s press release, you won’t find it anywhere in the “enterprisey” blogs: what you will find instead is independent thinking, analysis (right or wrong) and dialogue. The bloggers’ verdict was generally positive, mostly about the feature set/ technology, but several of us expressed doubt regarding execution: SAP’s market segmentation, potential self-cannibalization, ability to create mobilize a new, agile ecosystem capable to profitably execute in the new high volume/low price model, and help SAP reach their market goals.

Not exactly paid-off, loyal PR if you ask me… could it be that SAP knows something about the value of dialogue, in fact outright debate? They go the extra mile to provide bloggers with information, engage them actively. Round-table discussions with Hasso Plattner, Henning Kagermann, Leo Apotheker, Peter Zencke (did it all start with Niel’s chance encounter with SAP’s CEO?) and several other executives are highly appreciated, and believe me, it’s not one way PR-style briefing either. James ‘Redmonk” Governor says it best:

“As I have said before, you can buy my thinking, but you can’t buy my opinion.””

At SAP’s Teched 07 Conference James publicly disagreed with Peter Zencke about market segmentation, and the world did not come to an end; in fact the SAP Board Member happily continued the debate at the bloggers chat afterwards. Two weeks after the “incident” James moderated several sessions at Teched Europe, on SAP’s invitation. Don’t we all know companies where such behavior is the sure way to lose access and get yourself uninvited forever?

Bloggers are critical, opinionated, sometimes right, sometimes wrong, but never dull. But there’s a bigger picture here, other than external communication. I believe it’s not coincidental that the company that understands the power of dialogue has the most thriving online community I’ve seen in enterprise software.

Two years ago, when the external “Bloggers Corner” program started the SAP Developer Network (SDN) counted close to 600K members – today it’s 900K. It’s younger sibling, the Business Process Expert (BPX) network counts 200 thousand members. Between the two, discounting overlaps, it’s fair to say 1 million members participate in SAP’s online communities. This includes blogs, forums, wikis, videos..etc. SDN+BPX is a thriving support system: over 5,500 issues are posted daily, and the average response time is 20 minutes.

I think SAP has discovered something unique: they don’t have to give the code away yet they enjoy the benefits of “Open Source-like community“. The highest rated contributors don’t have to look for projects any more, they are in high demand. SAP Ecosystem Becomes a Booming Economy – declares research firm IDC.

The Ecosystem has become an organic part of how SAP conducts business, and there is no turning back. SAP Executives are quite aware that competitors comb through the SDN / BPX entries daily, and they certainly lose some competitive edge – but there is no other way to “run” the ecosystem. The Genie is out of the bottle, and they don’t want to send him back.

The role of the ecosystem will become even more important now that SAP is more aggressively pushing into the mid-market. This is a high-volume, low-margin market, sales, deployment, support all different from what SAP traditionally knows. Successful partnering will make or break it, and apparently SAP understands it.

I’ve come a long way from the original issue of blogger participation at Oracle’s OpenWorld, and not without reason. This issue has sparked a debate, stirred up some emotions, and I don’t want people to think it’s all about greedy (or hungry) bloggers whining about not getting their expenses paid. Nor is it a SAP Good Guy, Oracle Bad Guy issue. Both companies have their own culture and will continue conducting business their own ways.

I believe Oracle’s first approach to bloggers (late or mistaken as it is) is a welcome move, and it’s good to see they are open to learn and improve:

“This is new territory for a lot of us, and personally, I’d like to hear a lot more opinions and suggestions before I support one path or another.”

Some people in Oracle had to fight for this and they should not be given a (verysmile_wink) hard time. I certainly hope the initiative will not get shut down due to the initial negative feedback. I also hope Oracle management will realize how one step leads to another and that openness actually improves business in the long run. I used SAP as the positive example, because that’s the best showcase I know, and they are pioneering in this field – but if you know any other examples for actively embracing community, please share it in comments below.

Oh, and if you happen to be in the San Francisco Bay Area, by all means, check out Lunch 2.0 @ Oracle tomorrow.

Update (10/24): …and not a happy update, for that matter. Just as I praised SAP for “getting” social media, here’s this disturbing post from Steve Mann, VP at SAP’s Global Marketing. Apparently SAP HR wants him to remove the link to his personal blog from his corporate signature. I guess I should correct my statement: SAP gets social media … just not everyone, all the time smile_sad

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Zoho DB for Data Manipulation & Reporting

Impeccable timing: just days after Computerworld named Zoho Creator one of five web apps they can’t live without, Zoho DB is released today. While Creator is an application generator, DB is primarily for data manipulation, analysis and reporting. You can create a new database or import your dataset from an existing spreadsheet, be it Zoho’s own Sheet or MS Excel. The UI is instantly familiar, as it reminds us of a spreadsheet, but one with drag-and-drop goodness, allowing the user to easily analyse data, create charts, reports, which, as typical with Zoho apps you can embed in your web page or blog, and of course other Zoho Apps.

Fur deeper analysis you can create Pivot Tables with simple drag & drop. Zoho DB Supports Query Tables – tables created based on a select query from a different table. It understands queries in many SQL dialects: Oracle, SQL Server, DB2, Sybase, MySQL, PostgreSQL, Informix and ANSI SQL. This sets Zoho DB apart from the rest of the industry, and it’s made possible by leveraging another Adventnet (Zoho’s parent) product: SwisSQL. In the near future it will also allow users to import and export database schemas.

The best way to get a feel for the capabilities is to watch the video introduction, then get your hands “dirty” by diving into Zoho DB yourself.

Some of Zoho DB’s features will soon be available in Zoho’s spreadsheet application giving users a choice where they analyze their data – and of course you will be able to access the same data via applications built with Zoho Creator.

Attendees at the recent Wiki: Beauty & Beast event heard Zoho’s Raju Vegesna talk about how eventually Word processors like Zoho Writer and Wikis should morph into each other. This may sound off-topic, but it’s another hint to Zoho’s philosophy of allowing users access their data via their application of choice, no matter which other application they used to create it. It’s all about the (work) flow, not data formats.:-)

See also: TechCrunch, Read/WriteWeb, CenterNetworks, Zoho Blogs , Mashable!, Between the Lines,

Update: Ouch, Rod reveals Zoho’s most secret plans: Today – Zoho DB – Tomorrow – Zoho Beer

Update (9/6): Ask Zoho: What’s the difference between Zoho DB, Creator & Sheet?

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Wiki: the Beauty & the Beast. Usability & Functionality (Event)

Silicon Valley Web Builder will host a wiki-focused event tomorrow, Wednesday. While their first wiki event almost a year ago with JotSpot, Socialtext , Atlassian and WetPaint was more introductory, this time the focus will be on – surprise! – the contrast or harmony of Beauty- i.e. attractive UI, vs. the Beast – functional robustness.

The Moderator for tomorrow is Luke Wroblewski, Yahoo’s design guru who has authored a book on Web interface design principles titled “Site-Seeing: A Visual Approach to Web Usability” and is working on thee next one: “Web Form Design Best Practices”.

The Panelists are:

It’s definitely an interesting mix. Playing a bit with the metaphor, I’d say market leader Atlassian is known as the “beast”: whatever enterprise wiki functionality you can think of, their Confluence will likely have it.

Wetpaint got popular for the “beauty” – that’s why I called it the wiki-less wiki. It’s a most user-friendly self-publishing tool that allows anyone to create a site and transform it into an online community. Incidentally, the SV Web Builder site is built on Wetpaint.

Brainkeeper, a user-friendly enterprise wiki startup took me by surprise when they launched in January. Totally out of left field, they aim to be the beast like Confluence and the beauty like Wetpaint, with twists not seen in wikis, like workflow. I’m really looking forward to seeing how far they’ve got since launch.

MindTouch is transforming the Wiki from the Web’s best collaborative authoring tool into an open source service platform with a Wiki heart. Their Deki Wiki Hayes release is perhaps the most extendable Wiki tool available today.” I had to steal that line from Read/WriteWeb, I couldn’t have said it any bettr – oh, and congrat’s on reaching the 100,000 user mark!

Zoho is not a pure-play wiki player. Their wiki is just a part of a productivity/collaboration suite, and it shows. Beauty? The UI needs improvement, but this is the only wiki with not just simple a WYSIWYG editor, but a full word processor that writes true html, not wiki syntax. Beast? I think the emphasis here will not be on the standalone product, but how well it integrates with other Zoho offerings, supporting a flow-oriented world that matches how we think.

It will no doubt be an interesting event, so please check out the site details, and remember, admission is free if you register online, but $10 at the door. See you tomorrow.

Related posts: Laughing Squid, Lunch 2.0, Functioning Form, Mindtouch, Brainkeeper, Wetpaint, Zoho blogs, Centernetworks.

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The World of Enterprise Software Will Change Tomorrow

I really would have liked to be at TechCrunch40, temporary HQ of all-things-Web. Instead, I’m in New York, where the world of Enterprise Software will change tomorrow. That’s when SAP will unveil A1S, the new generation SaaS solution for the SMB market. Incidentally, this may be the last time we hear A1S, as SAP is expected to reveal a new name.

I suspect after Wednesday there will be a lot of talk about the new system’s features, but for now, very few people have actually seen it, and they are all under rock-solid NDA. So for now, just a few preliminary thoughts.

SaaS and Enterprise Software

I am a big fan of Software as a Service, have repeatedly written about it, but mostly in the context of the small business or consumers space. My own passion comes from the time when I switched from “sell side” in the SAP business to actually being a customer in a small business (Sales VP, NOT IT type!) and was shocked at the sorry state of infrastructure and systems (more lack of) available to most SMB’s. I became convinced that for small businesses that don’t have IT staff at all, On-Demand solutions are the only way to go.

Does this mean SaaS is for small businesses only? Not at all. While it’s easy to declare that for small businesses without their own IT resources there is no better option than SaaS, there is no clear “winner” for large corporations. There shouldn’t be. SaaS is not a religion; adopting it should be a business decisions that these organizations have to make individually.

SAP and SaaS

On-demand “purists” (the religious types;)) have long criticized SAP for being laggards, taking a half-hearted hybrid approach to SaaS – but why would they do anything else? After all, SaaS is still only 10% of all enterprise software sold, although growing fast. Even if we believe “the future is SaaS” (which is of course unproven, but I happen to believe in it), there is a lot of mileage left in the “old” Enterprise model, and market leaders like SAP have certainly no reason to turn their backs to their huge and profitable customer base. Protection of the legacy market is largely the reason behind the segmentation, i.e. A1S being strictly a small- and midmarket solution – but I don’t believe this segmentation is cast in stone.

Anyone who saw one of Hasso Plattner’s numerous “new idea” presentations will have to realize he is talking about a lot more than just a new SMB product. Plattner “gets it” and if he does, so will SAP. Clearly, for now the product is slated for the SMB market – new product, new markets – but it also allows SAP to get their feet wet in SaaS, before fully plunging in.

This also explains what may appear as inconsistency at the low-end of the market (less than 50 employees) where SAP continues to offer Business One, their on-site solution. I fully agree with Dennis , for all the above reasons it’s exactly these businesses that would be better off with SaaS, so perhaps Busiess One should be replaced by A1S. But if SAP considers A1S as a test-bed, eyeing the Enterprise Market, they need a certain minimum organization size, and level of complexity. Complexity, after all, originates in the organization, not the software – but this brings us to the next point.

So why is it such a Big Deal?

Believers of the “SaaS Religion” should be happy when a behemoth like SAP throws in it’s weight – and the $400M it expects to spend on marketing A1S. But let’s dispel with a huge misunderstanding here. I literally go nuts when analists (even my fellow Enterprise Irregulars) mention SaaS players like Salesforce.com, Netsuite, Succesfactors, Constant Contact on the same page, as one category. For the purpose of a specific analysis, like Charles did, it makes sense, but please, please, let’s remember, the so-called SaaS market is an artificial aggregation that eventually will make very little sense.

Companies do not buy software just for the sake of having it: they buy it to solve problems. They need inventory management, order and billing systems.. etc – not simply SaaS, just like in the past they could not care less if their software was delivered on tape, CD or DVD. Yes, I know I am simplifying to a great degree, but remember, It’s all about the functionality, not the delivery method.

So labeling Salesforce.com the “market leader” is misleading – yes, they are the the largest pure-play SaaS player, but a relative point solution with a fraction of the functionality enterprises need – and the Appexcange / Force.com attempt to become a platform has not changed this picture.

There is no market leader in On-Demand, complete integrated solutions, because so far no company has offered anything comparable to SAP’s functionality. Granted, I have not seen the system yet, but when SAP puts three tousand developers to work for 3 years, you know you are getting something significant. (In comparison Salesforce.com has less than 200 engineers.)

It’s all about Execution

The SaaS model allows for largely simplified business execution: marketing, awareness, “pull model”: instead off direct sales, the customer comes to the vendor, buying solutions on the Net. Consulting, Support all happens online. The reality of this pull-model is still debated, but I think waht’s often forgotten in the debate is that the “pull-efect” really works is the “S” part of SMB, (in fact, VSB), which are typically green-field businesses, often first-timers to transactional business software, without their own processes carved in stone, so they can test, configure and use software “out-of-the-box”. As we discussed, with size comes complexity, and since SAP targets the high-end of SMB, they will face such complexity, and that requires a “hybrid” model.

So far their Go-to-market strategy appears to be largely based on telesales and leaving support to a network of partners. Where these partners come from: existing All-in-One or Business One partners, or new ones – and if the first, how they will not cannibalize their existing business is a huge question.

A1S is a big bet for SAP,” said Gartner analyst Dan Sholler. “This has to succeed or they will have a whole host of business challenges ahead of them. No one has ever proven they can sell this type of business technology this way. SAP is betting the profitability of the company that it will be able to do it.

My bet is on SAP: they may stumble a number of times, which will effect their quarterly numbers – but in the end, I believe they will succeed. They will become the dominant SaaS player in the mid-market, forcing smaller players like NetSuite down-market. In the next 2-3 years while SAP flexes their On-demand muscles, we’ll see just how pervasive SaaS proves in the large corporate market, and that will determine whether A1S remains a midmarket solution or becomes the foundation of SAP’s forey into that market – their natural home base.

SAP understands New Media

Last but not least, a word on how SAP “gets it”. Part of Hasso Plattner’s “new idea” sounds like a Web 2.0 pitch: he embraces social networking, wikis, videos. How much, if any of these have made it into the first incarnation of A1S remains to be seen.

But SAP as a company themselves actively embrace new media. They have the best bloggers’ program, originally started by Jeff Nolan and now enjoying continued support by Michael Prosceno. I’m heading to the Big Show on Wednesday, but first tonight I’ll be in a group of 8 bloggers to meet SAP CEO Henning Kagerman. Two weeks later I will attend SAP TechEd, which, for the first time includes a full Community Day – an event certainly to be popular by bloggers. Oh, and who is the first keynote speaker? Mr. Web 2.0 Tim O’Reilly himself.

Not exactly dinosaur-like behavor, if you ask me.;-)

Off now, time to play tourist in Manhattan. And, in the meantime, I’ll be kept more then up-to-date on TechCrunch40 thanks to fellow bloggers on the scene.:-)

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JotSpot…Gspot … Google Wiki

So they figured Gspot would be too risky a name for Google’s JotSpotTongue out, it’s now (almost) official: the new name will be Google Wiki.

JotSpot was (I assume still is) a good, user-friendly wiki, and if it comes back now, it took Google almost an entire year to release it after the acquisition. I hope that means they rethought everything and integrated JotSpot well into a number of offerings.

  • It could provide for much better document management than the current Docs &­ Spreadsheets UI.
  • It overlaps with Page Creator, also with the simplified version found in Google Groups – in fact Groups which is no longer just email lists but a rudimentary collaboration platform and JotSpot could very well be merged / integrated.
  • Finally JotSpot tried to provide primitive applications (spreadsheet, calendar..etc) all of which have a better Google counterpart, so one would hope they will be replaced, too.

In fact there are so many opportunities to waive the wiki into Google’s current offerings, I can’t even imagine what it would look like… or, perhaps, are we going to see a standalone wiki? Thinking

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