Capture Share Report Global salesforce.com Systems Integration and Services Providers

Transcription

1 Capture Share Report Global salesforce.com Systems Integration and Services Providers September, 2014 Phil Hassey CEO capioit

2 Capture Share Report Global salesforce.com Systems Integration and Services Providers Executive Summary 3 Methodology and Definition 8 Global salesforce.com Systems Integration and Services Provider Overview of Market Conditions and Unique Characteristics 11 Global salesforce.com Systems Integration and Services Capture Share Key Findings 15 Global salesforce.com Systems Integration and Service Vendor Breakdown 24 Final Takeaways 41 Appendix - Detailed Methodology capioit 2

3 Executive Summary The salesforce.com services ecosystem is still maturing, alongside the salesforce.com platform. This report highlights the undeniable fact that winners in the space have been those vendors who had an early recognition of the potential of the salesforce.com opportunity and as a result have built deep teams of capability and global coverage. For many this global coverage is driving salesforce.com efforts to boost global reach and influence. Accenture is the clear leader in the global salesforce.com Systems Integration and Services Partner marketplace. It was early to invest in specific salesforce.com capability and has maintained this strength capioit 3

4 Executive Summary There was a time in the early history of salesforce.com that people considered SaaS and services to be an oxymoron. Those days have receded and are not coming back. The increase depth and complexity of the salesforce and other SaaS platforms has resulted in a significant requirement for SI services and solutions. Accenture has a significantly larger number of certified salesforce.com professionals than other vendor. According to salesforce.com information, it has 250% more resources than any other provider. One of the critical keys to the Accenture success in the salesforce.com space is that it established a salesforce and cloud SaaS provider practice early. This has placed capability front and centre within the organisation capioit 4

5 Executive Summary The other leaders typically come from a SI background, but three have a distinct history. Deloitte and Capgemini are traditional SI s albeit with interesting histories and geographic imbalances. They have invested quickly in salesforce.com and are looking to expand to other platforms Bluewolf, Cloud Sherpas and Appirio are the surprise packets of the analysis. They all focus on providing in the cloud services for clients. Strengths lie in platforms such as Google, not just salesforce.com. This born in the cloud approach has removed the legacy baggage that impacts so many traditional services vendors in a new space. Success in the salesforce.com environment requires repeatable assets. Each firm has its own differentiation and focus, they compete aggressively but also can act as a unified counter to legacy vendors from a thematic perspective 2014 capioit 5

6 Executive Summary The remaining vendors in the study have not yet fully come to terms with the requirements of dealing with a salesforce.com and SaaS Systems Integration environment. This is not to say that these vendors are not investing, they typically are but they have not been able to give it the required priority internally, and at the same time convince customers of their merit. Some vendors have also taken the approach that they cannot spread themselves too thin. This cautious approach to investment will work in the short term, but as the salesforce.com and related SaaS ecosystem matures, catch up will be difficult. It is a similar situation to offshore outsourcing. Early adopters (IBM, Accenture and of course Indian based vendors) were able to transition much rapidly than laggards such as Fujitsu, CSC and NTT 2014 capioit 6

8 Top Line Methodology Capture Share reports are based on the analysis of 17 key capabilities and attributes of Services providers. These attributes are focused in two key areas, Transform and Leverage. In order to integrity of the analysis and data, the individual attributes are weighted in percentage terms on the basis of the overall influence for the Transform and Leverage capabilities. Clearly data and process integrity are a critical component of a report of this type. It is fundamental that the data be valid and untarnished. To help ensure this, all information for the measurement and assessment of these attributes comes from a range of sources to ensure a range of opinions. Sources of information include salesforce.com users, salesforce.com, vendor briefings and meetings, media sources, the IT solutions ecosystem and specific end-user feedback. A full methodology is highlighted at the end of this report capioit 8

9 Market Definitions The salesforce.com Systems Integration and Services market providers typically offer the following services Design Change Management Architectural Support Implementation Management (release/upgrade integration) Configuration and Customisation Data Integration Application Integration Data Quality and Governance 2014 capioit 9

11 Salesforce.com Certification Resources As the table highlights there is a significant variation in the number of certified professionals across the organisations included in the capture share report. Clearly Accenture dominates. Following Accenture there are a cluster of vendors including Deloitte and Cognizant. The SaaS specialists rank in the middle of the table but in relative terms they are highly centric towards salesforce. Salesforce Certified Vendor Resources Accenture 1652 Deloitte 640 Cognizant 604 TCS 594 Wipro 505 Capgemini 407 Appirio 356 Cloud Sherpas 332 Bluewolf 309 Infosys 256 IBM 247 HCL 247 NTT 242 Fujitsu capioit 11

12 Impact of SaaS and Cloud Integrators The most dramatic aspect of the salesforce.com market is the impact of the emerging SaaS focused vendors, most notably Bluewolf 1 st ever salesforce.com partner Cloud Sherpas significant acquisition, merger and integration to build scale Appirio leverage a unique crowd sourcing model to drive scale Whilst these three vendors all have differentiated models, they have together and alone disrupted legacy vendors and managed to drive into the enterprise They also have significant strength in a range of SaaS platforms such as Google. Collectively there is the opportunity for these firms to disrupt in the same manner as the Indian based offshore vendors did from capioit 12

13 Impact of SaaS and Cloud Integrators In April (less than 1000 employees) had more salesforce.com integration job openings than these firms combined Simply put 1,000 employee firm can disrupt firms with 800,000 employees A comparison is Trinidad and Tobago generating more jobs than China in manufacturing 2014 capioit 13 13

15 Transform Capture Share Report - Global salesforce.com Systems Integration and Services Partners Core Findings Market Maker Transform Focus Bluewolf Deloitte Cloud Sherpas Appirio Capgemini Accenture NTT Fujitsu Infosys Cognizant Wipro TCS HCL Leverage Focus IBM Market Developer Leverage 17/09/2014 Prepared by capioit 15

16 Critical Findings Capture Share - Market Makers There are six vendors ranked as Market Makers in the salesforce.com SI and Services Providers Capture Share. Of these, Accenture is the clear market leader in largely based upon scale and depth of capability The remaining five leaders (in order) Bluewolf Deloitte Cloud Sherpas Appirio Capgemini All of these vendors have demonstrated depth in capability for the salesforce.com marketplace and each is differentiated in key user requirements 2014 capioit 16

17 Leverage Ratings for salesforce.com SI and Services Providers This section outlines the leverage scores for selected vendors in the salesforce.com SI and Services market The average score or rating is 6.4. Accenture clearly had the highest score at 7.8. It was by followed by Cloud Sherpas, Deloitte, Appirio, Capgemini and Bluewolf who all scored between 6.98 to Fujitsu and NTT are the laggards with a rating of 5.17 and 5.13 respectively. This is a stark reminder of the binary nature of the salesforce SI and services ecosystem. Average Leverage Vendor Score Accenture 7.76 Cloud Sherpas 7.17 Deloitte 7.06 Appirio 7.05 Capgemini 6.98 Bluewolf 6.98 TCS 6.63 Wipro 6.47 Cognizant 6.43 IBM 5.75 Infosys 5.48 HCL 5.42 Fujitsu 5.17 NTT 5.13 Average capioit 17

18 Transform Ratings for salesforce.com SI and Services Providers This section outlines the leverage scores for selected vendors in the salesforce.com SI and Services market The average score or rating is 6.7. Accenture clearly had the highest score at 7.8. It was by followed by Bluewolf at 7.7, Deloitte 7.5 and Appirio at 7.3. HCL and IBM are clearly the laggards on this measure. The difference between those vendors above average, and those below highlight the divergence in the market reflecting the immaturity. Average Transform Vendor Score Accenture 7.80 Bluewolf 7.70 Deloitte 7.47 Appirio 7.27 Cloud Sherpas 7.19 Capgemini 6.90 TCS 6.55 Cognizant 6.40 Infosys 6.35 Wipro 6.15 Fujitsu 6.10 NTT 6.10 HCL 5.77 IBM 5.62 Average capioit 18

19 Leverage to Transform ratio for salesforce.com SI and Services Providers The Leverage To Transform Ratio highlights the overall strength of a Service provider. A negative delta indicates firms have a stronger transform capability. A positive delta indicates a stronger leverage capability. A high delta percentage indicates an imbalanced capability between the ability to transform a client and leverage capabilities. capioit, believe that a delta score over +/- 5% is of significant concern for a vendor in getting the balance of its business correct. Leverage to Vendor Transform Ratio NTT -15.9% Fujitsu -15.2% Infosys -13.7% Bluewolf -9.4% HCL -6.1% Deloitte -5.5% Appirio -3.0% Accenture -0.5% Cloud Sherpas -0.3% Cognizant 0.5% Capgemini 1.2% TCS 1.2% IBM 2.3% Wipro 5.2% 2014 capioit 19

21 Capture Share - Vendor Analysis and Insight The following section highlights the performance of each vendor included in the study to further understand their strengths and weaknesses. The relative capability is also highlighted. For firms that score above the overall average, this is highlighted by a + Conversely, firms that score below the average are highlighted by a Where firms scores can not be split, indication of relative strength or weakness is highlighted by the distance from the average for all firms. That is, relatively higher scores are indicated as strengths. Relatively lower scores are indicated as weaknesses capioit 21

22 Capture Share - Vendor Analysis and Insight If this provides identical results, values are then weighted by the overall importance of each attribute. For example, if a firm has identical scores for Strength of Brand and Ability to Influence the External Market, the weighting of Leverage salesforce.com R&D at 15%, vs. 12% for Strength of Brand will indicate that Ability to Influence the External Market would be listed as a strength or weakness capioit 22

23 IBM Global salesforce.com Capabilities Capability Overview IBM is ranked as a market developer. It has not made significant investments in the salesforce.com environment, in addition to the broader non IBM SaaS providers. It appears to have taken an approach of focusing services and investments outside of saleforce.com and many other SaaS platforms. Clients will expect more and IBM will suffer long term by lagging in investment as the market further matures. Top Three Strengths In Country Geographic Reach + Country Strength + Solution Portfolio Depth + Top Three Challenges Internal R&D Certified salesforce.com skills Global Solution Development Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 23

24 Accenture Global salesforce.com Capabilities Capability Overview Accenture is ranked as a market maker and is the clear market leader for global salesforce.com services. It has developed a history of investment in SaaS solutions led by salesforce.com and has driven leadership across most aspects of the salesforce.com ecosystem, in particular certification. Top Three Strengths salesforce.com solutions revenue + Certified salesforce.com professionals + Strength of Brand + Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader Top Three Challenges Country Strength + Leverage salesfore.com R&D + Salesforce.com platform implementation capioit 24

25 Bluewolf Global salesforce.com Capabilities Capability Overview Bluewolf is ranked as a market maker. Bluewolf is particularly strong in driving business transformation for clients salesforce.com investments It s history as the first integration partner of salesforce.com has been leveraged and expanded to provide both thought leadership for clients but also implementation expertise Top Three Strengths Leverage salesforce.com R&D + Solution Portfolio Depth + Salesforce.com platform implementation + Top Three Challenges In Country Geographic Reach Country Solution Development Industry Solution Development + Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 25

26 Cloud Sherpas Global salesforce.com Capabilities Capability Overview Cloud Sherpas has rapidly grown in influence and importance through a range of acquisitions in the US, Europe and Asia Pacific It is a Global Strategic Cloud Alliance Partner and has been increasing investment in industry based solutions and expanding geographic capability Top Three Strengths Country Localisation + Internal R&D + Strength of Brand + Top Three Challenges Global Solution Development Salesforce (selling team) strength Industry Solution Development + Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 26

27 Deloitte Global salesforce.com Capabilities Capability Overview Deloitte is a particularly strong provider of salesforce.com services in the US marketplace It has very successfully leveraged business relationships to drive a transformational approach to salesforce.com capabilities Top Three Strengths Global Solution Development + Salesforce.com ecosystem partnership + Global Solution Development + Top Three Challenges Delivery Partnerships Country Strength Country Solution Development Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 27

28 Appirio salesforce.com Capabilities Capability Overview Appirio is another cloud only services and solution provider that has a transformational business model It is differentiated with its approach to skills management. It uses a crowdsourcing model to provide scalability and innovation. Top Three Strengths Delivery Partnerships + Certified salesforce.com skills + Internal R&D + Top Three Challenges In-country Geographic Reach Country Strength Salesforce (selling team) strength Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 28

29 Capgemini salesforce.com Capabilities Capability Overview Capgemini has is the leading European based salesforce.com integrator and services provider. It was a relatively early investor in salesforce.com and other as a service based platform and application providers. It has demonstrated strong outcomes when integrating across various SaaS and legacy platforms Top Three Strengths Solution Portfolio Depth + salesforce (selling team) strength + salesforce.com ecosystem Note partnerships+ + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader Top Three Challenges Strength of Brand In Country Geographic Reach Country Solution Development 2014 capioit 29

30 TCS salesforce.com Capabilities Capability Overview TCS was relatively slow to the market for salesforce.com services. It is leveraging the offshore model but has made increased investments in asset based services to start to realise growth in the space Top Three Strengths Delivery Partnerships + Certified salesfoce.com skills + Internal R&D + Top Three Challenges In-country Geographic Reach Country Strength Salesforce (selling team) strength Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 30

31 Infosys salesforce.com Capabilities Capability Overview Infosys has slightly lost its way in the past couple of years. The performance in the salesforce.com space reflects this. It has industry strength in energy and utilities. Top Three Strengths Country Strength + Salesforce (selling team) strength + Country Solution Development Top Three Challenges Solution Portfolio Depth Certified salesforce.com skills Industry Solution Development Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 31

32 Wipro salesforce.com Capabilities Capability Overview Wipro has been a quiet but competent salesforce.com business. It falls below the radar in comparison with other practices within Wipro, particularly the SAP business. Top Three Strengths Certified salesforce.com skills + WW salesforce.com solutions revenue + Country Strength + Top Three Challenges Solution Portfolio Depth Internal R&D Strength of Brand Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 32

33 Cognizant salesforce.com Capabilities Capability Overview Cognizant have strength in the salesforce.com practice in United States. It is a mid-ranked provider overall In general it has not been as aggressive in the market as required and needs to leverage existing relationships more explicitly in addition to geographic expansion Top Three Strengths Global Solution Development + Certified salesforce.com skills + Worldwide salesforce.com solutions revenue + Top Three Challenges Strength of Brand Solution Portfolio Depth Country Strength Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 33

34 Fujitsu salesforce.com Capabilities Capability Overview Fujitsu made an early foray into the salesforce.com ecosystem with the acquisition of Okere in According to salesforce.com partner sites, it has the least number of certified resources of any vendor included in the capture share report. Top Three Strengths Country Strength + In Country Geographic Reach + Leverage salesforce.com R&D + Top Three Challenges Strength of Brand Certified salesforce.com skills Worldwide salesforce.com solutions revenue Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 34

35 NTT salesforce.com Capabilities Capability Overview NTT has made several steps around the salesforce ecosystem but taken a more hands off approach to integrating the businesses. It has recently declared significant ambition to grow its revenue and doing this will involve it making considerable investments in the salesforce.com and other related SaaS providers. Top Three Strengths Industry Solution Development + Solution Portfolio Depth + Leverage salesforce.com R&D Top Three Challenges Country Strength Delivery Partnerships Strength of Brand Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 35

36 HCL salesforce.com Capabilities Capability Overview HCL is the laggard of the Indian based providers in terms of salesforce.com expertise In combination with the CSC partnership launched earlier this year it is in a position to accelerate growth and leverage industry depth and capability. Top Three Strengths Country Strength + Country Solution Development Delivery Partnerships Top Three Challenges Salesforce.com Ecosystem Partnerships Certified salesforce.com skills Salesforce (selling team) strength Note + indicates a capability rated above the average - indicates a capability rated below the average Bold indicates Market Leader 2014 capioit 36

38 Final Takeaways - Capture Share Report - Global salesforce.com Systems Integration and Services Providers Just as salesforce.com has been one of the most disruptive and innovative vendors in the past 20 years, there is increasing disruption and innovation in the SI and Services provider environment. The service provider environment has matured considerably since 2012 with a combination of investments, consolidation and the realisation that salesforce.com requires investment from an integration point of view if the benefits are to be truly realised. Additionally, the ecosystem and platform that salesforce.com has created has led to increasing complexity and business integration requirements of salesforce.com customers. With the shift towards wearables, the Internet of Things, and analytics this shift is only going to increase in depth and complexity capioit 38

39 Final Takeaways - Capture Share Report - Global salesforce.com Systems Integration and Services Providers Accenture is the current leader in the marketplace. This is from both a scale and a transformation/innovation perspective. What is relevant is the number of emerging providers such as Bluewolf that have been able to build innovative businesses and customer outcomes with a absolute focus on the SaaS ecosystem. Deloitte and Capgemini are the other leading traditional firms. The Indian based vendors in general lag in the salesforce.com ecosystem. TCS and Cognizant are the strongest, but in general the lack of investment in platforms and repeatable solutions is telling The final point to consider is that it is not too late. The market is still maturing, and has considerable ways to go before it is even near mature. Expect more disruption as the market redefines itself in the next few years capioit 39

41 Top Line Methodology Capture Share reports are based on the analysis of 17 key capabilities and attributes of services providers. These attributes are focused in two key areas, Transform and Leverage. In order to undertake the appropriate level of analysis and data integrity, the individual attributes are weighted in percentage terms on the basis of the overall influence for the Transform and Leverage capabilities. Clearly data and process integrity are a critical component of a report of this type. It is fundamental that the data be valid and untarnished. To help ensure this, all information for the measurement and assessment of these attributes comes from a range of sources to ensure a range of opinions. Sources of information include salesforce.com users, vendor briefings and meetings, media sources, the IT solutions ecosystem and specific end-user feedback capioit 41

42 Methodology Transform Attributes There has been nine attributes identified by capioit that contribute to the measurement of salesforce.com SI and services provider leadership in a market. As mentioned, these attributes are all weighted to determine their overall importance. The weighting is highlighted in the accompanying table. The following section defines each Transform attribute Attribute Weighting Internal R&D 5% Leverage salesforce.com R&D 15% salesforce.com Ecosystem Partnership 15% Global Solution Development 5% Industry Solution Development 15% Country Solution Development 5% salesforce.com Platform Implementation 20% Strength of Brand 12% Ability to influence external market 8% Total 100% 2014 capioit 42

43 Methodology Transform Attributes Internal R&D The depth of investment by an enterprise in salesforce.com related Research and Development, linked with the successful development of solutions and customer outcomes from the Research and Development Leverage salesforce.com R&D The ability to leverage salesforce.com Research and Development to offer solutions for the enterprise. This requires development of solutions and customer outcomes. salesforce.com Ecosystem Partnership The ability to develop, maintain and maximise value of partnerships with other salesforce.com related entities to ensure customer outcomes Global Solution Development Development of globally relevant and differentiated service or solution offerings 2014 capioit 43

44 Methodology Transform Attributes Industry Solution Development Development of industry based relevant and differentiated service or solution offerings. Country Solution Development Development of country (or sub-region) based relevant and differentiated service or solution offerings. Salesforce.com platform Implementation Ability to provide infrastructure solutions for salesforce.com deployment based upon a vendors, or partners hardware capabilities. Strength of Brand The strength and value of the brand to determine the scope of awareness of the service provider and its offerings. Ability to influence external market The ability through thought leadership, executive engagement and depth of proven delivery capability to influence the general and specific direction of the saleforce.com solutions marketplace capioit 44

45 Methodology Leverage Attributes There are 8 attributes that contribute to the measurement of an IT solutions providers ability to leverage capabilities to provide scale and efficiency to clients. These attributes are all weighted to highlight their overall importance. The weighting is highlighted below. The following section defines each Leverage attribute Attribute Weighting Global salesforce.com solutions Revenue 10% Solution Portfolio Depth 20% Certified salesforce.com skills 25% Country Strength 12% Salesforce strength 8% Delivery Partnerships 10% In Country Geographic Reach 5% Country localisation 10% Total 100% 2014 capioit 45

46 Methodology Leverage Attributes Global salesforce.com Solutions Revenue Estimation of total revenue for global salesforce.com solutions revenue Solution Portfolio Depth The depth of salesforce.com solutions portfolio and capability. Key solution areas include Design Architectural Support Implementation Management (release/upgrade integration) Configuration and Customisation Data Integration 2014 capioit 46

47 Methodology Leverage Attributes Certified salesforce.com resources The number of certified salesforce.com resources as per data from salesforce.com and vendors Country Strength Salesforce.com capability in the various global markets. Key regions and countries include USA Canada Australia and New Zealand UK Japan Germany 2014 capioit 47

48 Methodology Leverage Attributes Salesforce Strength Depth of capability for the salesforce.com solutions sales force. This is both from a commoditised solutions point of view as well as the higher order consultative sales capabilities. Delivery Partnerships The depth and capability of salesforce.com delivery partnerships to ensure high quality of delivery capability for customers In country Geographic Reach The ability to deliver national capability across geographically dispersed markets such as Australia, USA, Canada Country Localisation The ability to provide local capabilities in country to acknowledge local capabilities and requirements from a cultural, regulatory and governance perspective capioit 48

49 Contact Information capioit is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. If you require further information, please contact Phil Hassey, CEO capioit. Phone: +61 (0) Twitter: PHassey Skype: phil.hassey 26 Aboud Ave, Kingsford, NSW 2032, Australia 2014 capioit 49