IT buyer market research

Study analyzes TCO metrics for cloud vs. on-premise solutions

I’ve heard anecdotally that the biggest difference between the cloud computing craze and other hype cycles that came before it is that in the case of cloud technologies, real customers are asking real questions. Not so for other emerging technology areas, when solution providers had to foist their ideas upon prospects.

This is not to say that cloud computing will be an easy sell.

For one thing, it probably will be mainly appropriate in cases where an organization doesn’t already have the infrastructure in place for an on-premise alternatives. Which means it is more likely that small and midsize businesses will lead the way with adoption.

Given all this, the folks at NetSuite have been pushing hard to position their suite of cloud-based business application services as a better total cost of ownership proposition than the on-premise alternatives. The latest illustration of this is a research study from analyst firm Hurwitz Associates called “The Compelling TCO Case for Cloud Computing in SMB and Mid-Market Enterprises.”

In the report, Hurwitz outlines the different costs associated with deploying a cloud solution versus an on-premise one. One of the most impressive numbers from this report is that in a 100-user scenario using NetSuite as an example, a cloud solution will cost $730,745 less than the on-premise option, based on infrastructure costs, training, implementation, and support. The report concludes with recommendations on how organizations can do their own cost comparisons.

Which leads me to ask all those IT solution providers out there. Where does this leave you? Actually, in not such a bad position. The Hurwitz data suggests there is still a serious role for VARs or service provider resources that have skills in solution design, implementation and integration. In the Hurwitz cost analysis, the researchers estimate that approximately 30 percent of the costs for a cloud solution will be related to VARs or consultants, compared with 58 percent to 60 percent in an on-premise model.

A much smaller percentage, maybe, but the focus will be on design, process consulting and application integration, which typically lead to higher profit margins than straight infrastructure deployment.

Here’s a link to the complete Cloud Computing study by Hurwitz Associates.

IT professionals seek job security from security certs

Want a job? Get a security certification.

A new study of more than 1,500 IT workers by CompTIA finds that approximately 37 percent are planning to earn some sort of security technology certification over the next five years. About 18 percent of them will go in for an “ethical hacking” certification (I didn’t even know they had official certs for that!) while about 13 percent will focus on security forensics.

Other certification areas in which IT professionals intend to invest include green IT, healthcare IT, mobile technology and software as a service (SaaS) best practices.

The key driver for interest in new certifications is the promise of a career boost: 88 percent of the certification holders included in the CompTIA study said they took them to improve their resume. About the same number cited personal growth as the reason.

You can more information about the study on the CompTIA site.

CDW reports improving optimism among IT decision makers

Are things looking brighter for your customers? And, in turn, for you? It would seem so, as reported by the latest CDW IT Monitor.

Continued »

CDW survey: Midsize businesses more optimistic about IT spending, but smaller companies back off

Reseller CDW has released its latest CDW IT Monitor, tracking IT spending intentions across all major commercial segments as well as government accounts. The good news is that midsize businesses were growing more confident during the survey period in May. The bad news is that smaller companies grew more skittish during the month. Continued »

Dell’s New Year’s Eve surprise

Dell Inc. launched a major reorg on December 31. The move “globalizes” operations around three major customer segments — large enterprise, public sector, and small and medium businesses (SMBs). The press release posted quietly on Wednesday morning, making the Dell just the latest tech vendor to attempt to bury major news that could be construed as negative, before a holiday. Or so it seems. (The consumer segment was already handled globally.)

Continued »

Who, exactly, is feeling the IT spending slowdown?

Either every solution provider I know is brilliant or lying, or every IT decision maker is fudging their answers when they take IT spending polls. That’s because even though all the data suggests that companies aren’t buying tech or won’t buy tech or are too scared to buy tech, at least some of the solution providers I speak with anecdotally tell me they had a bang-up fourth quarter.

Continued »

Looking for a silver lining in IT spending predictions

Just wanted to officially add my name to the list of journalists and industry analysts seeking positive news, especially when it comes to economic growth. Tell me good things, I want to hear them! But I am obliged to update readers on two pieces of data that I came across in the past week that should be considered as you’re adjusting your plans for next year.

Continued »

Will the year end with a bang or a whimper?

The big whack that consumer confidence took over the last couple of months (as measured by the Conference Board) continues to be echoed in the IT buyer community, according to the latest stats from the ongoing, bimonthly CDW IT Monitor. Now, though, the anemia is spreading out of the commercial buying minds and into the government sector.

The monitor includes two components: The IT Value Monitor, which looks at the value that IT organizations place on technology, and the IT Growth Monitor, which measures future expectations for technology. In September, the overall readings for all three government areas (local, state and federal) slipped by four points to 70 (the lowest point since the CDW data collection started last year. The overall Monitor rating across all sectors declined by one point to stand at 72.

Continued »

Bad economy good for VMware? And Microsoft?

VMware posted strong financial results yesterday, despite the weak economy and increased competition from Microsoft.

The virtualization market leader took in $472 million in its third quarter — a 32% increase over last year and more than Wall Street expected. Ashlee Vance of The New York Times says VMware has a leg up when the economy is down, because virtualization helps customers cut their hardware and energy costs. But could that also be good news for Microsoft and its competing hypervisor, Hyper-V?

Continued »

An SMB CEO’s view on where innovation equals technology

Historically speaking, IBM understands better than almost any other high-tech company I’ve come across how corporate innovation can be facilitated by (or hampered by) technology investments. It certainly has plenty of research to illustrate this, including its most recent “Enterprise of the Future” study, which includes results from the company’s Global CEO survey of more than 1,100 chief executives.

Since I know many of you are mainly focused on SMB prospects, I wanted to share a few findings focused on midmarket companies as well as some thoughts from one of the midmarket CEOs I spoke with when the study was released a few weeks back. (IBM defines midmarket companies as those with between 100 and 1,000 employees.)

  Continued »