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Five Years of SAS: The Good, The Bad, & The Ugly. Ephraim Feig, Ph.D CTO & CMO, Kintera, Inc. The technology is good. The technology will get better. Marketing and Biz-Dev will determine the winners. . SAS XAS. SAS: Shift the Risk. Shift the Risk-Time Distribution. XAS Examples.
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Five Years of SAS:The Good, The Bad, & The Ugly Ephraim Feig, Ph.D CTO & CMO, Kintera, Inc.
The technology is good The technology will get better Marketing and Biz-Dev will determine the winners
SAS XAS SAS: Shift the Risk Shift the Risk-Time Distribution
XAS Examples • Rolls-Royce airplane engines • Car leases
Companies(1711) Products(172) ASP Industry Directory http://linksmanager.com/aspnews/ 2003
Companies(1745) Up 33 Products(210) Up 38 ASP Industry Directory http://linksmanager.com/aspnews/ 2004
Companies(1814) Up 69 Products(233) Up 23 ASP Industry Directory http://linksmanager.com/aspnews/ 2005
Trends 1: CRM • 1999: Siebel deployment was typically a $1M ordeal • 2001: Salesforce.com hosted CRM applications • Standard edition for $65 per user per month • $7,800 a year for 10 users • Enterprise edition for $125 per user per year • $30,000 a year for 20 users 2003
CRM (Cont.) • 2002: Salesforce.com Team Edition • Slightly less functional • Only up to 5 users • $995 a year, fully hosted 2003
Salesforce.com • IPO, June 23, 2004 • Pricing unchanged • 2/10/2004: “1,000 developers are using sforce with about 10 percent of all traffic to Salesforce.com coming from API calls.” • http://www.eweek.com/print_article/0,1761,a=118827,00.asp 2004
CRM as a Service • Core is becoming a commodity • Configuration management is limited • Adds complexity to everyone • CustomForce • ROI for very large solutions may not be competitive • Shift complexity to technical experts • SForce
Demand Supply / Competition Cost / Price Disruptive Technologies Clayton Christensen The Innovator’s Dilemma ?
Disruptive Technologies • Christensen talks about tsunamis • Revolutionary • Disruptions can also be ripples and waves • Evolutionary
Disruptive Technologies • Tsunamis • Optimizing Compiler • PC • Internet • Ripples and Waves • OOP • IDEs • SOA & Web Services • Work Flow Engines • Biz Talk • Active Movie (Microsoft, 1996)
Disruptive Stimuli • External Intervention • Standards • Government regulations • Supply Chain requirements
Demand Supply / Competition Cost / Price Disruptive Technologies
Salesforce.com • Pressured to move beyond salesforce automation • Contact Center • Marketing Automation • Analytics • Sforce • Customization via configuration 2005
IBM's Growth Engine Sputters • Customers abandoning or changing deals • JP Morgan Chase • Cable & Wireless • U. Penn • Invensys • Equifax renegotiated • Customers switching service providers • Piper Jaffray Unisys • Daimler Chrysler EDS • TUIUK Wipro • Starwood Hotels & Resorts Worldwide HP • Deutsche Bank adds Accenture
Not all is bleak for SAS • Aggressive growth in SMB • And ….
“X is the new Y”is part of the modern lexicon Let’s measure this audience’s HCI (Hip Culture Index)
SOX is the new Y2K • “Pink is the new … … Red,” • Jossie and the Pussycats, 2001 • “Twelve is the new … … Eleven,” • Ocean’s Twelve, 2004 • “Random is the new … … Order,” • iPod Shuffle
Sarbanes-Oxley • “Compliance costs average large company $7.8 million, 70,000 man hours, and countless headaches.” • It will only grow before relaxing to a healthy level.
Sarbanes-Oxley • The new Y2K • $6.1 Billion (AMR Research) • Bitpipe lists 58 SOX compliance companies • HP: OpenView Compliance & SOA Managers • Computer Associates: Unicenter ServicePlus • EMC: Documentum Compliance Manager • IBM: Risk and Compliance Framework • Oracle: Compliance Architecture