Monthly Archive:: May 2014

ERP Hits the Wall

The services industry is facing a big issue. The market for ERP implementation cycle and corresponding transformation projects has matured and is coming to an end. We can see the ERP decline in the reported results from IBM and Accenture and HCL. These three providers have had very big SI practices around large-scale ERP

It Stinks to be an Incumbent Service Provider

In our tracking of industry contracts and trends, we find that, in the infrastructure space, incumbent service providers now win recompetes 85 percent of the time. However, the ACV (annual contract value) is 27 percent less scope. This means that the incumbent must be able to add new new logos. The good news is

Cloud Places Service Providers on the Horns of a Dilemma

The Promised Land of SaaS and cloud models in the services world is clearly visible, but it’s frustratingly difficult for service providers to get there. The new models are the land for service providers’ growth and profits, but providers are finding it painful and frustrating as they try to move to the new models.

Let’s Talk About Me

American country music artist Toby Keith’s hit song “I Want to talk about me” reminds me of a phenomenon in today’s services world — too many providers’ conversations with customers are unproductive. Service providers are very eager to grow their revenue in their existing accounts. As the market matures, this is clearly the fastest,

The Limits of Verticalization

Many service providers are busy organizing along vertical industries and going to market with vertical solutions. As the services industry matures, it’s very clear that customers want to do business with companies that understand their industry. However, many providers find that verticalization doesn’t give them the growth acceleration they anticipated. So there are limits