Ali Ghaemi

Rivalry, Dominance, Catching Up, Keeping Up And… Cat Fights!

Apr 022014

Today Microsoft did what it was forced to do. It made Windows for mobile devices, with screen sizes of less than nine inches diagonally, free of charge. Microsoft acted both shrewdly and desperately by joining Google’s Android operating system in conferring its operating system for mobiles free to licensees.

Microsoft made the announcement at its Build developers’ conference in San Francisco in tandem with the announcement of the Beta version of Windows Phone 8.1. Microsoft is offering a newer, and presumably better, product at no cost.

Microsoft first launched the current iteration of its operating system for mobile telephones in October of 2010. According to IDC, Windows Phone finished 2013 with a 3.2% market share for smart phones. The numbers would be even lower were all mobile telephones taken into account. In other words, Microsoft is all but invisible in the mobile world. Google’s Android holds a 76% market share. Apple’s iOS holds a 14% market share. Microsoft is neck and neck – or rather ankle to ankle – with Blackberry. Matters are worse considering how Microsoft paid $7.2 billion (US) for Nokia just over six months ago.

Microsoft had to do something to change the facts on the ground. The reality is that not only Microsoft is not registering on the mobile platforms, but also with the advent and growth of mobile devices its domination of operating systems overall is very much threatened. By some accounts Google is now the number one operating system provider in the world.

Microsoft has joined Google in providing its operating system freely to licensees in order to
Compete with Google and Android
Penetrate the consumer market, which Windows Phone has all along been aimed at

Nullify the anti-competitive effect of its purchase of a hardware maker (Nokia) on the very licensees it aims to (re)attract, namely Samsung, HTC, LG and Sony.

It is worth remembering that this would fundamentally be a risky move and negative precedent were this any other category of software. Unlike Google, Microsoft is actually a software company and relies on its endless lines of code for revenue. Having said that, Windows Phone is a mere footnote in Microsoft’s annual earnings’ statements. Additionally, and contextually, in 1995 Microsoft entered and dominated the web browser market in the same way. While the dominant Netscape was for sale Microsoft entered the browser market by offering its variety for free. The difference is that this time Microsoft is not competing against a for-profit organization, but is competing against a free operating system. As a side-note, Google’s Chrome is also the market share leader in browsers. In a bout of pragmatism, Microsoft’s Nokia unit is also offering an Android telephone.

Elsewhere, in Microsoft mobile announcements 8.1 also includes the beginning of a catfight with Cortana, a rival to Apple’ Siri, Android’s Google Now Skyvi/Iris, Blackberry’s Vlingo and the many other independent applications out there. The catch/trump card for Cortana is that it is powered by Bing, Microsoft’s search engine. Windows 8.1 will also come with an Action Center akin to Blackberry Hub.

The software, like 8.1, is now in Beta and due for release later this spring.

http://blogs.windows.com/windows_phone/b/windowsphone/archive/2014/04/02/cortana-yes-and-many-many-other-great-features-coming-in-windows-phone-8-1.aspx

http://www.microsoft.com/en-us/news/press/2014/apr14/04-02build2014pr.aspx

http://www.nokia.com/global/products/phone/nokia-x/

https://en.wikipedia.org/wiki/Usage_share_of_operating_systems

(Did You Know?) Adobe Sells Cloud Marketing Software

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Mar 262014

Let me take it upon myself. The ignorance is mine, I suppose. Did you know Adobe owns and markets cloud-based marketing software?

There is sarcasm in the preceding sentence of course, but the lack of awareness might be as much a weakness as strength. After all, Adobe’s publishing software and web content being so strong and de facto standard that anything else the company does is supressed in comparison. Ironically, Adobe’s marketing has always been strong given its ubiquitous presence and leadership in its space.

This post, however, is about the announcement that SAP and Adobe have come together and SAP will re-sell the Adobe suite.

First, Marketing Software is especially hot and SAP is trying to keep up. Oracle has scooped up Eloqua and Responsys.

Salesforce.com has been punching above its weight and picked up Buddy Media and ExactTarget.

SAP too picked up Swiss e-commerce and marketing firm Hybris last year. Adobe’s commerce platform is to be re-sold by SAP and probably be adapted to the in-memory HANA technology. It all sounds good, but is this a change of pace for SAP – to re-sell instead of develop or acquire – or even anything substantive? After all, Bell Canada resells Cisco and Microsoft’s cloud products? I doubt whether these agreements register on any of these company’s earnings statements. Does anyone remember how Salesforce.com and Intuit partnered two years ago to offer each other’s customers applications for CRM and financials respectively? Imagine the potential for the leaders in front-end and back-end solutions for SMB to come together and compare said possibility to the whimper.

Time will tell if this is another press release-only statement or something more substantive. In the meantime, Adobe sells marketing software.

http://global.sap.com/news-reader/index.epx?category=ALL&articleID=22584&searchmode=C&page=1&pageSize=10

http://www.adobe.com/solutions/digital-marketing.html

http://blogs.wsj.com/digits/2011/03/31/intuit-salesforce-com-team-up-to-target-small-businesses/

The Ten Bullet Points Of Sales Coaching (As Part Of Sales Management)

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Mar 202014

Whether your organization is sophisticated enough to have systematic sales training and learning for its salespeople or budget for occasional education inevitably, routinely and necessarily the sales manager has a role in coaching the sales team.

Sales managers are tasked with running the department and ensuring sales success. There is a core numbers and revenue aspect to the role. However, earnest and forward looking managers give attention to the team’s sales coaching.

This is easier said than done. Time is always an issue. There is not ever enough time in the day. There are multiple priorities. The numbers need attention, reports need to be created, understood and presented. Someone else could do it. It can wait, so on and so forth. And it is all true.

Nevertheless, sales managers need to make time for training. Here are ten bullet points on coaching in sales:

1- Allocating time to sales coaching is not neglecting the numbers. Coaching salespeople is elevating the numbers.

2- Coaching is not conducted in one way. It includes listening, asking questions, listening to answers and explanations, offering praise and understanding.

3- Coaching is better when conducted in progressive steps. If it is new or has been omitted for a while it is best that the ‘first’ time is dedicated purely to listening and open-minded learning. Only on second and third appointments the sales manager/coach may venture into offering feedback and actual training. The velocity and progression depends on the salesperson.

4- Attach coaching points to numbers and objective goals.

5- Create a schedule and stick to it. This is a matter of discipline and necessity. More importantly, it creates a non-confrontational atmosphere where coaching is part of the process and the job and not tied to any potential or recent missteps or weak achievements.

6- Allocate time for an exchange right after the side-by-side, conference call, meeting or customer visit. The points are fresh and one is not relying merely on notes and memory. Feedback and coaching happens here. Be as detailed as possible.

7- Different salespersons have different perspectives, strengths and weaknesses. Acknowledge them by stating them and working with them.

9- What is the plan now? There has to be actionable items between now and the next scheduled session. Have it in writing and share with the salesperson. A review of this should also be the starting point of the next scheduled coaching opportunity.

10- Commit to coaching and do not shortchange the time or process.

Do not miss:

Sales training is also motivational: http://www.alighaemi.com/wp/?p=459

One size does not fit all: http://www.alighaemi.com/wp/?p=266

Privacy On The Internet

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Mar 032014

One of the ironies of the Internet age and the subscription of the connected masses to Social Networking sites has been that surveys show that people want more privacy and increasingly understand the value of their information, while at the same time signing on to more social sites and sharing even more information in different formats like updates, audio, video, etc.

The reason is in plain sight. People like the features of Social Networking sites and what they offer, but simultaneously want their data to be private, protected and to retain control.

Here is an article and a video that are worth reading or viewing.

1- Ray Kurzweil, the director of engineering at Google, believes that his employer will soon know you even better than your spouse. By improving contextual understanding and interpreting the meanings behind what people are saying and doing on the Internet Google believes it will soon know you better than your life partner.

http://www.theguardian.com/technology/2014/feb/22/robots-google-ray-kurzweil-terminator-singularity-artificial-intelligence

2- On a more light-hearted note, but certainly more immediate and no less sinister, here is a YouTube video that is food for thought.

Spooky Privacy Experiment

And yes, Google will know, and remember, you watched it (perhaps it is better to skip it then).

Lenovo Buys IBM x86 Server Business For $2.3 Billion

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Jan 242014

After purchasing IBM’s PC business for $1.75 billion in 2005 IBM and Lenovo have struck a new deal with the Chinese company picking up the American company’s low-end x86 server business for $2.3 billion. The deal was officially announced on Thursday 24th of January, but was leaked the day before. The deal for the x86 involves $4.6 billion in annual revenue transfer and the movement of 7,500 employees to Lenovo.

Several thoughts on this:

This deal further solidifies China’s reputation as a ‘hardware’ country. X86 is the name for a range of microprocessors, which are based on an early Intel design and lead these days by Intel and AMD. While other countries have become known as centres for software development China’s concentration of manufacturers and large ‘iron’ companies has given it a reputation as a hardware centre of gravity. Ironically, Lenovo will now utilize the new line to go after the mobile market where software and applications have been drivers.
IBM is again evolving by weaning itself of its lower end offerings. From low-end applications to desktops and notebooks and now servers IBM keeps moving up. Servers are now considered the low-end of the market.
In contrast, Lenovo is moving upmarket. The PC company is now also a server company. Lenovo is also a competitor in smart phones worldwide. It holds second place in the Chinese market. In 2013, the Chinese company tried unsuccessfully to purchase Canada’s Blackberry. The move was blocked by the Canadian government, but given how Lenovo and IBM reportedly went back to the table in late 2013 for another round of talks one could speculate regarding the cash outlay’s source.
Lenovo’s move into the server business worldwide represents a growing danger to Dell, HP, Acer and Sony. Note that Lenovo is already the leader in PC shipments worldwide, but this move will take away some of the sales leverage its competitors have had trying their ‘complete solution’ sales pitch on customers. Lenovo has had its owns server business, but just like with IBM’s ThinkPad line, offering “IBM” server technology and design takes the Chinese firm to a new level of credibility.

Addendum: A week later Lenovo took Motorola’s hardware handset business off Google’s hands. This reinforces further the notion that Chinese companies, including Lenovo, are focused on hardware. Presumably, Motorola’s phones will continue to be run by Google’s Android software. Moreover, it proves the folly of a company rich with cash (Google) reacting to the developments around it (Microsoft and Nokia), patent purchases by competitors and Apple’s dominance – as opposed to executing its own agenda. Google is hanging on to Motorola’s patents, but they are not worth $10 billion (the difference in amount between what Google paid and what Google received including $2 billion in losses since and a $2 billion hardware sale in the interim) indemnification or not as they are mostly older patents.

What cannot be good for Microsoft: It was announced that Google is purchasing a 5%+ stake in Lenovo. Could Lenovo now load Chrome unto PCs? Moreover, Sony quickly exited the laptop and desktop market. It is selling its computer business to a new entity, which will only compete in Japan.

The Inevitable Success Of Advertising

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Jan 062014

The title is an exaggeration, but the effectiveness of advertising is not hyperbole.

Why advertising works is a good discussion. We know the message is biased, partial, not challenged and conveyed and narrated by self-interested parties, but the medium is successful.

The tragedy of the below is not a laughing matter, but it is nonetheless instructive to go back and look at past marketing conveyed through advertising. I want my readers to take a moment to filter the below $182 (US) billion discrepancy through the inner ethical lens.

AIG, the largest underwriter of insurance in the United States Of America, underwent severe turbulence in the recent 2008-2009 financial meltdown. It was only saved through governmental intervention.

Print advertisement from the ’90s: “financial strength,” “strongest insurance,” “AIG’s strength’s and stability,”… $17 billion in…. adjustment reserves,” “highest ratings,” et cetra.

Reality ten years later: according to Propublica journalism project, “On four separate occasions, the government offered aid to AIG to keep it from collapsing, rising from an initial $85 billion credit line from the Federal Reserve to a possible commitment of about $182 billion between the Treasury ($69.84 billion) and Fed ($112.5 billion).” These numbers help the company remain solvent, while nationalizing it.

Things That Need To Go Away: people believing advertisements, advertisers pitching make-believe and other illusions and delusions masquerading as fact.

India – Forecasting Biggest Increase In Technology Spending

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Jan 032014

India is expected to lead the world in the realm of technology spending growth between 2012 and 2016.

According to BCG (Boston Consulting Group), Holding the #1 global ranking for growth requires spending overall to jump from $30 billion (US) in 2012 to $150 billion (US). The same report from BCG predicts that India will also see the total dollar amount of online purchases increase from $8 billion (US) in 2012 to $50 billion (US) in 2016.

It is clear where the market action going to be and, consequently, where companies looking for growth should set up shop. Conventional wisdom would tell any growth-seeking company to go where the market is expanding.

Free registration required to access the report:

BCG Report

Applications, Cloud And Software Roundup

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Dec 312013

I thought I would share several stimulating and thought-provoking, as well as a couple of factual pieces on the marketplace. Each is a good and succinct read.

Here San Francisco’s Sandhill Group has compiled status updates and predictions of several industry figures regarding where we are at and what 2014 will bring enterprise software:

http://sandhill.com/article/top-predictions-about-software-companies-in-2014/

In the following link two particular lines resonate painfully. First is, “For an ERP vendor to sell CX (customer experience) software and then mistreat their own customers so badly is more than ironic (or moronic).” The second is, ” If your ERP solution predominately tracks internal transactions, facilitates reporting of same and helps your firm achieve a modicum of efficiency, congratulations – you are, at best, mediocre.” Here is the article on Zdnet:

http://www.zdnet.com/troubling-challenging-2014-erp-predictions-7000024439/

Over at Forbes contributor Louis Columbus advocates manufacturers drop their entreprise-grade ERPs for something newer and cloudier (except he never says such a thing):

http://www.forbes.com/sites/louiscolumbus/2013/12/27/the-days-of-brute-force-erp-are-over/

He does, however, explicitly expose top and bottom performers of the stock market:

http://www.forbes.com/sites/louiscolumbus/2013/12/22/best-and-worst-performing-cloud-computing-stocks-dec-16-to-dec-20-and-year-to-date/

and addresses Mobile Strategy:

http://www.forbes.com/sites/louiscolumbus/2013/12/02/roundup-of-enterprise-smartphone-and-tablet-market-forecasts-2013/

Do not forget Analytics:

http://www.wired.com/insights/2013/12/analytics-eats-world-2014/

Looking for an ERP marketshare list? It downright surprises me that after ten sustained years of acquisitions Oracle is still where it was back before Charles Phillips’ strategy began.

http://dartongroup.com/worldwide-erp-market-share/

Finally, Gartner is forecasting an even bigger uptick for enterprise software than it did previously, namely $22 billion by 2015.

http://www.gartner.com/newsroom/id/1963815

(Channel) Trends For 2014

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Dec 302013

Miller Heiman has a short article on Channel Trends for 2014.

For someone who is on both sides of the aisle – direct sales and channel management – the article seems correct yet overly simplified.

The trends, according to the article, are:

Channel sales will continue to increase
New types of channels will emerge
The wall between direct and channel sales will continue to crumble

The tendency to foster and nurture an indirect sales route is congruent with the nature of the modern market. The world is tilting towards selling many with less margin. It is a volume play. Yes, exceptions always apply. One example is Tesla, which is selling cars directly. The company has been subject of lawsuits from car dealers trying to stop its direct sales route.

http://www.thecarconnection.com/news/1087492_gm-follows-teslas-lead-plans-to-sell-directly-to-online-shoppers

The article’s title is a misnomer however. While the tendency is there the trend does not belong to 2014. It has been ongoing for a good many years.

Additionally, the case for Cloud – which is addressed – is not as clear-cut given the costs, direct (i.e. margins, recruitment, education and marketing) and indirect (resolving conflicts, manpower and expertise), any company would incur.

The old ‘capital expense versus operations expense’ argument also applies. Cloud is less expensive to start, but from a purely dollar figure perspective it soon adds up to more. A better argument is made with factors such as upfront costs, management and ancillary expenses.

Here it is: http://www.millerheiman.com/blog/Miller-Heiman-Blog/September-2013/Channel-Trends-to-Watch-for-in-2014/

Hunter Or Farmer – which Am I To choose?

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Jul 262013

The existence of hunter-type and farmer-type salespersons is an old understanding in sales circles. Hunters are after market share and winning new prizes (deals or customers). Farmers are maintaining existing accounts, maximizing profits, cross-selling (adding products to what the customer has already purchased) and ensuring a consistent and predictable stream of revenue.

Famously, most salespersons are not able to juggle both dispositions. Perhaps it is the duality of the roles or perhaps it is the difference in skillsets. Most companies do not have the recruiting capability or the talent pool to bring onboard both types of salespeople.

What is more, most companies should not try. Unless a company has the size and payroll capability of a Blackberry, Apotex or Sony organizations need to articulate either a growth and market share or maximizing profit and retention strategy. Again, most sales managers and business owners reading this will immediately balk at the choice opting (in other words hoping) for both, but with the wish being unrealistic a choice needs to be made.

So be it if your shareholders and investors are making the choice for you. Otherwise, articulate a strategy and hire for the part.

Is your business needing to grow fast and garner market share (perhaps additional cross-sell opportunities are in the product pipeline a year or two down the road) or is your business in the mood to maintain the customer base by providing a higher level of service than a poaching competitor could offer) and ensure the profitability of the business is not in jeopardy? Then hire accordingly.

*Things That Need To Go Away: hiring generically for a ‘sales’ position.

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