Insights for IT Negotiations

Now that Oracle has been officially eliminated from the Joint Enterprise Defense Infrastructure (“JEDI”) RFP process, they are pushing forward with their lawsuit against the Department of Defense (DoD). Jeff Lazarto, UpperEdge's Oracle Practice Leader discusses how Oracle, in short, is claiming to be a victim in a rigged RFP and procurement process. Host: Jeff Lazarto: https://bit.ly/37eCXdN Oracle Commercial Advisory Services: https://bit.ly/3jdtF7p

Day 1 of ServiceNow’s annual conference kicked off with a keynote focused on changing lives at work through technology and how ServiceNow is the right vendor to make that happen. ServiceNow will continue to focus on bringing new mobile features to market to increase the value of its solutions while mapping to customer needs. In this podcast, UpperEdge’s ServiceNow Advisory Practice Leader, Adam Mansfield, shares some key takeaways from the conference and what he has learned by talking with ServiceNow customers in attendance. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt

If you are becoming a new customer of Workday (or any cloud vendor), it is extremely important to get your first deal right. Not only do you have the most leverage at this time but your first deal will set the precedent going forward. In this podcast, Workday Practice Leader, Jeff Lazarto, discusses the key parts of your negotiation leverage as a new customer as well as the specific areas you should address when negotiating your first deal. For more on this subject, see our related blog post: Workday Negotiations - First Impressions Matter and Precedents Matter. Host: Jeff Lazarto: https://bit.ly/37eCXdN Workday Commercial Advisory Services: https://bit.ly/3fq96DV Related Blog: https://bit.ly/3ynjvYp

Alphabet reported that overall company revenue increased 17% to $36.3B but came up short of the expected $37.3B. Other revenues (which includes Google Cloud) reached $5.4 billion, up 25% year-over-year. Though Google Cloud Platform has strong customer momentum and remains one of the fastest growing businesses in Alphabet, Alphabet and Google still have not released Google Cloud revenue or utilization. Why and when will they?

ServiceNow beat analyst estimates and raised full year 2019 subscription revenue and billings guidance. ServiceNow posted Q1 subscription revenue of $740M which represented an impressive 40% growth y-o-y. They closed 25 deals in the quarter with ACV greater than $1M which brings total customers fitting this profile to 717. Expect ServiceNow to continue to find ways to expand ITSM adoption within existing customer base and add emerging products like CSM.

SAP made some significant announcements in its Q1’19 earnings call that will have implications for SAP customers. SAP is focusing on improving margins, Bill McDermott wants fair market value for SAP’s software, and Elliott Management takes a $1.5B stake in SAP. In this podcast, Len Riley discusses how Elliott Management will not just be focused on the operational efficiencies of SAP but more on revenue side of the equation, meaning the relationships you have with SAP Sales Executives will be less flexible and more stringent, with more decisions and approvals being made from the regional CFOs offices. Host: Len Riley: https://bit.ly/3fqLI99 SAP Commercial Advisory Services: https://bit.ly/3yjImwb

Microsoft had another stellar quarter, beating expectations and posting double digit growth, both for top and bottom line. These impressive financial results were directly tied to the continued strength of their cloud business. Commercial Cloud revenue grew 41% with Office 365 commercial revenue up 30% as a result of continued install base expansion and average revenue per user (ARPU) growth. Azure revenue also grew 73%, driven by strong growth in Microsoft’s consumption-based business. As they work to continue down this path of success, expect Microsoft to aggressively push for more Office 365 adoptions and for more workloads to be placed on Microsoft’s cloud. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

After 27 years at SAP, Robert Enslin resigned from his position as President of the Cloud Business Group. In this podcast, UpperEdge’s SAP Practice Leader, Len Riley, discusses how SAP is restructuring its leadership responsibilities, the challenges SAP will face from these changes, and how customers will be impacted. Host: Len Riley: https://bit.ly/3fqLI99 SAP Commercial Advisory Services: https://bit.ly/3yjImwb

Oracle has been struggling to meet Wallstreet’s expectations for cloud revenue. To motivate their on-premise customers to migrate to the cloud, they have offered two key cloud incentive programs: Universal Cloud Credits and Bring Your Own License (BYOL). In this podcast, Erwann Couesbot discusses what customers need to know about these programs, including the key benefits of both and potential downsides you need to keep in mind. For more on this subject, see our recent blog: Oracle’s Cloud Incentive Programs: Sweet Nothings? Host: Erwann Couesbot: https://bit.ly/2WIKJdX Oracle Commercial Advisory Services: https://bit.ly/3C8PnSR

Some things we’re seeing from Oracle coming out of their Q3 earning are similar to what we saw with IBM a few years back. Their revenue is flat or slightly declining (like IBM’s was) but their earnings per share are growing, just like IBM’s had—the main reason for this? Stock repurchasing program, like IBM had done, Oracle is doing the same now, Oracle just spent in Q3 alone $10B to buy back 206M shares, and in the past 12 months they have bought back 728M shares, resulting in an overall reduction of 16% of all outstanding shares. The similarities of their financial moves go on, listen to this podcast and read the accompanying blog for further insights. Host: Jeff Lazarto: https://bit.ly/37eCXdN Oracle Commercial Advisory Services: https://bit.ly/3jdtF7p