Insights for IT Negotiations

In July of 2018, Oracle released a new subscription-based pricing model for Java SE (Standard Edition) and announced certain changes that went into effect in January of 2019. These licensing changes sparked confusion and widespread concern among customers. In this podcast, Erwann Couesbot touches some of the changes Oracle made, who in particular will be affected, and how organizations will be affected. For more information on Oracle’s updated Java licensing, read our recent blog: Using Java? Here’s How Oracle’s New 2019 Java Licensing Affects You. Host: Erwann Couesbot: https://bit.ly/2WIKJdX Oracle Commercial Advisory Services: https://bit.ly/3C8PnSR

Still running SAP ECC? You’re not alone but with support ending in 2025, you’ll need to make a decision about where you’ll move to soon. Unfortunately, SAP hasn’t shared customer success and failure data pertaining to the S/4hana platform. So how do you know if S/4HANA is your best choice? In this podcast, Ted Rogers discusses what you should keep in mind when seriously considering a migration to S/4HANA. For more, read his recent blog: Migrating SAP S/4HANA Could Get You Fired. Not Deciding on S/4HANA Will Probably Get You Fired. Host: Ted Rogers: https://bit.ly/2V7h1z3 Project Execution Advisory Services: https://bit.ly/3xlw9px

ServiceNow had their strongest Q4 ever with $665M in subscription revenue, representing 33% growth. They closed 51 transactions in the quarter with over $1M in annual contract value (ACV). They now have 678 customers with over $1M in ACV, which represents 33% growth. ServiceNow is not only successfully selling their core IT products (ITSM, ITOM, ITBM, ITAM) but they are also having success with their emerging products (CSM, HR, Security Ops, Intelligent Apps). 31% of net new ACV was tied to emerging products, up from 25% last year. Expect ServiceNow to continue to focus on their current customer relationships to drive growth moving forward. They know that there is a large opportunity to continue to drive revenue through expansion of their products, adding new products, and increasing the use of what is already landed. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt

Microsoft Q2 FY19 revenue reached $32.5B which once again represented double-digit revenue growth. Commercial Cloud revenue was $9B and grew an impressive 48%. Office 365, which is part of the Commercial Cloud revenue, grew 34%. This growth was primarily driven by a 27% growth in the number of seats as well as an increase in the revenue per Office 365 user. Revenue per Office 365 user increased as more enterprises migrated to higher value (and costly) E3 and E5 plans. Azure revenue is not reported but it grew 76%, which in a vacuum is impressive but sequentially this represents flat growth when it grew 98% back in Q2 FY18. Based on these results, you should fully expect Microsoft to continue to push enterprises to more robust Office 365 plans and promote the need to use Azure and the cloud bundle Microsoft 365, especially for Firstline Workers. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

Google has announced that starting April 2, 2019, the pricing associated with Google's G Suite Basic and Business plans will increase by 20%. G Suite Enterprise pricing will not be affected by the planned increases. This is the first significant announcement made by Google Cloud since Thomas Kurian took over this year. Even though these increases will directly impact small to mid-size businesses they also have possible (and likely) ramifications for larger businesses that utilize or are considering adopting Google's G Suite Enterprise plan.

NRF, the world’s largest retail conference, is coming up January 13-15. We fully expect Salesforce to spend a significant amount of time at the conference discussing new products and solutions. While it is good to gain an understanding of what is new and what is coming, it is also important to use this time to ask the right questions of Salesforce. Doing so can help set up your renewal negotiations and ultimately lead to getting more value from your Salesforce relationship. Host: Adam Mansfield: https://bit.ly/3rPGp8r SalesForce Commercial Advisory Services: https://bit.ly/37hFkMV

While Microsoft may want to overwhelm you with new products and solutions at NRF’s Big Show, don’t forget to leave with insight that is valuable to you. Definitely understand what is new and what is coming, but also prepare to ask the right questions of Microsoft. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

Salesforce had another stellar quarter, beating analysts’ expectations in its third-quarter earnings last night. Revenue is up 26% y-o-y and the Remaining Performance Obligation (RPO) is now at $21.2B, up 34%. The company raised FY 2019 guidance and expects 2020 revenue to reach $16B, expecting continued growth in cloud computing sales. Marc Benioff has even higher expectations for Q4, putting some pressure on co-CEO Keith Block. The strategic acquisition of Mulesoft, which was finalized in May, is already showing success with its ability to unlock data from legacy systems and accelerate digital transformation – a current focus for C-suite executives. Mulesoft helps power Customer 360, Salesforce’s multiconnected cloud product which combines Sales, Service, Einstein AI, and analytics into a single platform. This offering a competitive advantage for Salesforce which they will continue to push in order to increase product adoption. In this podcast, our Salesforce Practice Leader, Adam Mansfield covers what these Q3 results mean for customers and how they should approach their Salesforce relationship moving forward.

In September, Thomas Kurian took a leave of absence from Oracle after 22 years at the company. Just two months later, he joined Google as the head of cloud computing, heightening underlying tensions between the two companies that have been in an ongoing legal battle for the past 8 years. At Oracle, Kurian led cloud transition efforts but he and Larry Ellison reportedly had differences with respect to Oracle's Cloud vision. Ellison believed in a closed system while Kurian wanted to open up their cloud solutions and allow them to run on AWS, Google, etc. UpperEdge’s Oracle Practice Leader, Jeff Lazarto, discusses his first impressions and what he’ll be paying attention as this plays out.

Many organizations are enticed to move to Microsoft Office 365 or even Microsoft 365 by the belief that their cost profile would decrease and that their pricing would come with special one-time discounting. Too often, organizations later discover after closer examination that the discounting not only wasn’t special but it didn’t come with the proper downstream price protections. This is one reason too many Microsoft customers are faced with significant and unexpected price increases come renewal time. Before moving to one of Microsoft’s cloud products, it is critical you assess the true competitiveness of your discounting and ensure you have the proper price protections in place.