Gartner: Rising Enterprise Software Spending Won't Lift IT - InformationWeek
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Gartner: Rising Enterprise Software Spending Won't Lift IT
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Lorna Garey
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Lorna Garey,
User Rank: Author
7/8/2014 | 3:32:25 PM
Some irrational exuberance?
Doug, do 6.9% and 7.3% spending increase forecasts for 2014 and 2015 ring true to you? 
D. Henschen
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D. Henschen,
User Rank: Author
7/9/2014 | 9:18:29 AM
Re: Some irrational exuberance?
No, these numbers don't sound high to me. On-premises software sales are flat, but just about every major enterprise apps player in the cloud is reporting double-digit gains: Salesforce.com (30%+), Oracle and SAP (20%+), Workday (70%+), NetSuite... are all in double digits.

One other point, here, is that when cloud service providers buy hardware capacity, they generally have much higher capacity utilization rates than the typical enterprise. So they're buying that much less server and storage capacity per user.
jagibbons
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jagibbons,
User Rank: Ninja
7/9/2014 | 12:34:33 PM
Re: Some irrational exuberance?
I would expect that we'll see even more optimization in the economies of scale where cloud vendors need less and less hardware to support more and more users. That will skew the market even further.
Charlie Babcock
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Charlie Babcock,
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7/9/2014 | 4:11:27 PM
On-premises deployments going away...
Gartner's Lovelock: "On-premises (software) deployments are going away or reaching an equilibrium point." Why didn't anyone dare say such a thing when Larry Ellison was racing around, denouncing cloud computing? That was not so long ago. Now everyone can see where it's all headed and future cloud operations are a part of routine analyst assessments. About time. 
Stratustician
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Stratustician,
User Rank: Ninja
7/9/2014 | 6:36:50 PM
Decoupled ERP/CRM?
I wonder if cloud computing, particularly the influx of new vendors, will start to force the decoupling of ERP/CRM.  For one, the high price tag for these solutions are great for Enterprises, but many organizations still can't afford these large solutions.  Personally, I have a feeling we will see customers pick and choose between modules from different vendors (as long as the APIs can connect between everything) so that they can get a truly customized solution versus a big box solution that may or may not meet the needs (or may be too complex) for those smaller customers.
D. Henschen
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D. Henschen,
User Rank: Author
7/9/2014 | 8:05:54 PM
Re: Decoupled ERP/CRM?
There are several ERP systems that include CRM components, but ERP and CRM are often decoupled purchases. Even in cases where the ERP and CRM apps come from the same vendor, they're often deployed in separate projects. Core ERP on its own is quite enough to get your arms around in one project.


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