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A new order in systems integration is emerging

By | September 23, 2010, 12:30pm PDT

Summary: Cloud and integration technologies are changing the systems integrator landscape. A recent event by Appirio shows just how far and radical the changes are becoming.

Last week, Appirio hosted a great event at the St. Regis Hotel in San Francisco. While the core purpose of the event was to announce the release of their new software product, you might do well to understand who Appirio is and why they are relevant to cloud users and the integration services space.

Appirio is sooooo different from the usual systems integrator. Most of their work is focused around integrating three cloud solutions: Salesforce.com, Workday and Google. And, when they integrate apps like Google’s Gmail, Workday’s Financial and HR software and Salesforce’s CRM, they often do this via small form factor devices like the iPhone, iPad and other technologies designed for a more mobile and interconnected world.

Appirio, from what I heard and saw, isn’t really interested in integrating decades old on-premise ERP and desktop applications to a cloud application. Instead, they want to do cloud-to-cloud integration that can push application functionality and data to/from handheld devices. If your firm has a material field service organization, you’ll likely need someone like Appirio soon.

The new Appirio integration software is called CloudWorks. It facilitates and speeds up the integration of popular cloud-to-cloud integrations. The company also created CustomWorks to help create more one-off integrations. Appirio may even have a partner version available on this although I don’t have a lot on that capability right now.

One Appirio client that was highlighted at the event is in the remote healthcare delivery business. This firm has something like 6,000 employees in the field and approximately 300 in their headquarters. All of their field personnel use some sort of Apple portable device (e.g., iPhone, iPad or iMac). These devices provide information about their work schedule, the type of care each employee must provide and to whom, information about the patient, etc. These devices are not only pulling in information from multiple cloud sources but they’re also pushing information out and sharing information to other care
providers.

Aneel Bhusri, Co-CEO of Workday, was also on stage for a bit. He discussed how social media and mobile technologies are driving everything now. He added that future versions of the Workday software will have the user interface (UI) designed first for the handheld device world and then for the desktop.
Aneel and other executives from Google and Salesforce were asked to opine on the future of systems integration and other topical matters. Attendees heard that systems integration, as a business, must move to the cloud. Modern firms will go from integrating 1-2 cloud apps (e.g., Salesforce CRM to Google Apps) to possibly 100 cloud apps in as little as 2 years out. Systems integrators can’t expect to spend 4-5 years rolling out a large systems implementation anymore. The window is now 4-5 months. Yes, some big systems integrators will be needed to do some of the largest cloud implementations but the number of deals and companies that will need that capability may be shrinking.

My assessment of this event and with a number of vendor visits I made last week and this week is that:

- Cloud integration services are a core capability that will be in great demand; HOWEVER, almost no cloud solutions vendor I spoke with had a lot of positive feedback re: the capabilities of old school systems integrators. When I did get some positive news on these firms, Deloitte and Accenture were the two most mentioned.

- Mobile is a key strategy area that must be addressed by systems integrators, auditors and others.

- There are number of new entrants in the integration services space. Appirio was only formed in 2006 and now has over 200 clients and over 700 projects under its belt. There’s momentum and energy in this space and fast movers are killing it.

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Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Biography

Brian Sommer

Brian is in a unique position to diagnosis the winners and the losers in technology and services. He was the longest running (10 years) and most senior director of Andersen Consulting's (now Accenture's) global Software Intelligence unit - a position that required him to pick the best possible software solutions for hundreds of clients globally. He advised the firm on ERP software market forecasts and helped establish manpower planning estimates by vendor for deployment globally.

Brian continues to remain close to technology buyers and sellers. When he left Andersen Consulting, he co-created a dot-com with blogger and former arch-enemy at Price Waterhouse, Vinnie Mirchandani. That firm helped broker efficient services contracts between software buyers and systems integrators. Since then, he's created TechVentive, Inc. - a company that helps technology firms better understand their markets - and Vital Analysis - the research and publishing arm of TechVentive.

Brian still travels the world and publishes an impressive number of articles, research reports and blog posts annually to help software and services buyers make better business decisions. He can be reached at: brian @ vitalanalysis.com

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