Tuesday, January 15, 2008

And How Would You Like Your Performance Management Served?

There's obviously been a lot of talk over the course of the last few quarters about the changing delivery model for performance management and business intelligence to the marketplace, and there are huge ramifications with the move from a desktop/server delivery method to a more services oriented approach.

Just a few years ago when Business Objects was releasing their first version of crystalreports.com, the interest from customers and prospects was exceedingly low--and the adoption, aside from all the "free trials" that were given away, was even lower. The common argument of not trusting the data outside the firewall, integration, and overall control comprised the litany of reasons why companies would never turn to a SaaS model for BI.

Fast forward a few years, and with the help of forward thinking SaaS companies like LucidEra, and our blogging friend Darren Cunningham, the issue is no longer whether the model is viable, but rather, how it gets integrated with other enterprise applications--which shows just how far the ball has been moved--the SaaS vendors are getting the same barriers to adoption as traditional vendors. That shows a real maturity of the technology.

Another sure sign that you've arrived--Microsoft is not only in the game, but experiencing channel conflict on who would host the SaaS services, and how that might impact partner revenue streams. Now since the folks from Redmond are highly dependent on their extensive partner community to be their eyes and ears out on the street, a channel uprising is no small matter. But more importantly, it shows that the argument has moved from whether cloud computing, or software + services, as MSFT calls it, is a viable way to deliver technology, to who is going to be the one delivering it.

With new applications like mobile computing and enterprise search making strong headway into the information worker's mindshare, the issue around performance management adoption is rapidly moving from "if" a company should adopt a performance management solution to help their top and bottom lines, to "how" they'd like their solution delivered.

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