Riverside Partners Acquires Calero: TEM in Transistion

Calero Logo
Calero

On September 13th, 2017, Riverside Partners, a Boston-based private equity firm, announced the acquisition of Calero Software from Clearlake Capital. Calero manages more than $6 billion of annual telecom, mobility, and cloud spend for more than 3,000 customers in 40+ countries and provides managed mobility services for more than 400,000 devices, making it one of the largest technology expense management solutions overall behind Tangoe’s $38 billion+ in technology expense management and Flexera’s $13 billion+ in software expense management. (Cass does not break out its telecom spend, but Amalgam believes it to be similar in scale to Calero.)

This blog covers Amalgam’s perspective on:

  1. Why Clearlake sold Calero.
  2. Who is Riverside Partners, a relatively new player in the TEM space?
  3. What to expect from Calero going forward.
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Amalgam Insights Publishes SmartList on 8 Hidden Gems in Telecom Expense Management

Snapshot for AI's 8 Hidden Gems for Telecom Expense Management
SL0917A-AI Vendor SmartList – snapshot

Over the past decade, Telecom Expense Management has evolved substantially from its roots of telecom and network spend to a more holistic combination that also includes mobility, end user computing, Software as a Service, and Infrastructure as a Service. Because of this expansion of spend, TEM has evolved from Telecom Expense to Technology Expense Management which can be used to manage the majority of enterprise IT.

Amalgam finds that there are a number of high-quality TEM solutions that are hiding under the radar of enterprise buyers despite being market leaders. As an example, in May of 2017 Gartner put together a Market Guide of Telecom Expense vendors including vendors handling multiple billions of dollars in technology spend such as Calero, Cass Information Systems, Cimpl, Dimension Data, MDSL, Tangoe, and WidePoint as well as strong competitors Comview, Mobile Solutions, Network Control, Saaswedo, TNX, and VoicePlus. Although these Gartner-named vendors all provide TEM solutions that are appropriate for various market sectors and needs, Amalgam believes that a number of strong competitors were left out both in the multi-billion dollar management and the strong competitor categories that should be considered in competitive vendor selection environments.

To provide additional insight and to ensure that representative global vendors such as the largest standalone Australian TEM vendor and the largest standalone European TEM vendor were covered, Amalgam is proud to present 8 Hidden Gems for Telecom Expense Management available at no cost for the first 100 downloaders.

IT Asset Management Must Change to Cut SaaS Costs by 30%

Money Bubbles in the Clouds
You Must Change Your LIfe ~ Ranier Maria Rilke
You Must Change Your Life

A generation of IT has been trained on the practice of Software Asset Management, which has been built on the focus of audit-based license agreement compliance. As the enterprise software market has moved to SaaS, the need for regular audits has decreased because of a fundamental shift from vendor-driven contract enforcement to client-friendly policies for adding new licenses and services.

As software shifts from being a license-based capital expenditure asset to a usage-defined operational expenditure service, the foundational nature of software management must change as well. Rather than managing software as a sunk cost with the goal of squeezing the maximum utilization out of an initial license before the software becomes obsolete, companies must now treat Software as a Service as a constantly renewing and updated functionality aligned to specific business roles.

The trade-off for the ease-of-use and support for SaaS is that enterprise software contracts are harder to negotiate because a number of buyers may end up purchasing SaaS and the purchase cycle is built to support consumerized purchases through P-cards, expense accounts, and line-of-business operational budgets rather than through a formal IT process.

As a result, the traditional world of SAM compliance and top-down procurement is being replaced with the need for cost management solutions that focus on:

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Meet Up with Amalgam Insights

Amalgam Insights Logo
Amalgam Insights

Over the next couple of months, keep an eye or ear out for Amalgam Insights as we show up at an event or webinar near you. Catch up with us at the following times:

  • August 31: BrightTalk Webinar: Eight Telecom Expense Solutions Gartner Missed
  • September 12-14: AI in San Francisco attending Looker’s Join 2017
    September 26: Webinar: Machine Learning, Design Thinking, & the Role-Based Expert Enhancement Platform
    September 27-28: AI in New York City attending O’Reilly Media’s Strata/Hadoop
    October 3-4: AI in Indianapolis attending MOBI’s Untethered Summit
    October 17-19: AI in Las Vegas attending Intacct Advantage
    October 26: Webinar: Making the Leap from TEM to IT Management

What am I missing? Where else should I be? Let me know!

For more details on how to meet up with AI or to attend one of our events, look below!
Continue reading “Meet Up with Amalgam Insights”

CloudCheckr Makes It Easy to Check AWS S3 Bucket Accessibility

S3checkr AWS S3 bucket visibility Screenshot
Money Bubbles in the Clouds
Affording the Cloud

Earlier this week, I was catching up with CloudCheckr for a preliminary briefing on my upcoming Cloud Services Management research coming out in December. This market, in general, is important to Amalgam’s coverage because the largest cloud infrastructure companies are growing over 50% per year, yet the majority of these services are not being managed or tracked from either a financial or governance perspective on a regular basis.

(Sneak peek: CloudCheckr’s combination of cost management, security management, and price ends up being a key reason that CloudCheckr has quickly grown to over 120 employees.)

During our conversation, Product Marketing Manager Todd Bernhard showed Amalgam an interesting tool for checking if Amazon Web Services S3 buckets are publicly accessible.

Why S3 Accessiblity Matters

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4 Key Executive ASC 606 Lessons Microsoft Is Teaching Us

Microsoft OnPrem Annuity Revenue
Drawing of Revenue Curve
Revenue (from Pixabay)

Note: To read Part 1 of Amalgam’s coverage of Microsoft’s ASC 606 adoption, please check how Microsoft Early Adopts New ASC 606 Revenue Recognition Standard.

Recommended Audience: CFO, Chief Revenue Officers, CIOs, COOs, IT Finance, Sales Operations seeking to understand how ASC 606 revenue recognition changes will affect their responsibilities.

On August 3rd, 2017, Microsoft held an investor metrics conference call led by:

  • Chris Suh – GM, Investor Relations
  • Frank Brod, Chief Accounting Officer
  • John Seethoff, Deputy General Counsel and Corporate Secretary

This call was focused on its implementation of new accounting standards, including ASC 606 for revenue recognition and ASC 842 for lease accounting.

There have been multiple acquisitions and announcements in the revenue recognition space as IT vendors ensure that they can support the ASC 606 standard including:

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Amalgam Insights’ Technology Consumption Management Webinar Schedule for 2017

BrightTalk Logo
BrightTalk

Over the rest of 2017, Amalgam Insights will be holding monthly webinars on our BrightTalk Technology Consumption Management Channel.

1) Eight Telecom Expense Solutions Gartner Missed
2) Machine Learning, Design Thinking, & the Role-Based Expert Enhancement Platform
3) Making the Leap from TEM to IT Management
4) Key Vendors for Managing $40+ Billion in SaaS Costs
5) Cloud Service Management: Managing Cost, Resources, and Security

If you are interested in any of these topics, please sign up to attend by clicking on the webinar title link. And if you are interested in a deeper dive of any of these topics, please email Amalgam’s Director of Client Services, Lisa Lincoln.

For more information on each webinar, please look below:

Upcoming Webinars (All Times in Eastern Time Zone):

1) Eight Telecom Expense Solutions Gartner Missed
Date/Time: August 31, 2017, 1 PM

Recommended Audience: Telecom Directors and Managers, Network Directors and Managers, Mobility Directors and Managers, IT Procurement, IT Finance, IT Architects

Amalgam Insights has been covering the Telecom Expense Management (TEM) market for over a decade. In May of 2017, Gartner released “Market Guide for Telecom Expense Management Services, 2017”. In this guide, Amalgam believes that eight key vendors were overlooked that can provide enterprise-grade services and represent billions of dollars in technology spend including:

* A pioneer in Robotic Process Automation
* The largest standalone TEM in Europe
* A SaaS solution partnering with IBM, Unisys, and Verizon
* A Fortune 1000-focused vendor with 100% referenceable clients
* A fast-growing technology management platform built on ServiceNow
* A commercial and government-focused vendor with over 4 million lines under management
* The largest Australian provider with over 500,000 items under management
* One of the Bay Area’s best rated places to work with IoT, data center, & SD-WAN management offerings

2) Machine Learning, Design Thinking, & the Role-Based Expert Enhancement Platform
Date/Time: September 28, 2017 at 1 PM

Recommended Audience: Chief Data Officers, Chief Analytics Officers, Analytics & BI Managers, Analytics & BI Program Leaders, Enterprise Information Management Managers, Enterprise Architects, Enterprise Applications Managers

Amalgam Insights believes that the key to success for artificial intelligence is embedded AI aligned to role-specific and industry-specific challenges. The goal is to provide focused outputs that enhance the best judgment of subject matter experts. This leads to a core mission of Amalgam Insights: improving the consumption of enterprise technology. Based on these assumptions, Role-Based Expert Enhancement Platforms (REEPs) are the future of embedded Artificial Intelligence.

Based on interviews with dozens of enterprise application platform users, application vendors, and machine learning providers, Amalgam Insights describes how lessons from embedded BI and application analytics can be used to create the next-generation of embedded AI and embedded machine learning applications.

3) Making the Leap from TEM to IT Management
Date/Time: October 26, 2017 at 1 PM

Recommended Audience: CIO, CFO, Procurement officers, IT Finance, IT Sourcing.

Telecom Expense has traditionally been the most challenging of IT costs to manage. With the emergence of Software-as-a-Service, Cloud Computing, the Internet of Things, and software defined networks, the rest of the IT world is quickly catching up.

This webinar will provide best practices for expanding your existing telecom expense management program into a bigger IT management program to take advantage of the robust capabilities and vendor management experience already in TEM. This presentation will include anonymized end user examples and a list of IT, cloud, and telecom management vendors with experience in managing non-telecom expense categories.

4) Key Vendors for Managing $40+ Billion in SaaS Costs
Date/Time: November 16, 2017 at 1 PM

Recommended audience: CIO, CFO, Chief Procurement Officers, Finance Directors and Managers, Controllers, IT Procurement, Procurement Directors and Managers, Sales and Marketing Operations Directors and Managers

In this webinar, Amalgam introduces a new set of solutions focused on enterprise SaaS expense management, a $40 billion+ global market that is largely unmanaged at this point.

Amalgam estimates that less than 5% of SaaS spend is currently centrally managed. The other 95% is hiding in expense reports and one-off accounts that escape corporate control. No rules, no buik discounts, no disputes, no contract enforcement or negotiations.

Stop the insanity! Learn which vendors to consider to manage an expense that may now represent $5,000 or more per employee in your organization.

5) Cloud Service Management: Managing Cost, Resources, and Security
Date/Time: December 14, 2017

Recommended Audience: CIOs, CFOs, Enterprise Architects, IT Project Managers, IT Procurement, IT Service, IT Finance

Cloud Infrastructure-as-a-Service is growing rapidly as companies replace obsolete data center servers and storage with “The Cloud.” As companies use more services from multiple regions and even multiple vendors, Cloud Computing becomes yet another management headache where discounts, service levels, and IT governance can go unenforced.

This webinar provides key tips on the Cloud Service Management market, including the drivers, best practices and top vendors including, but not limited to:

Cloudcheckr
CloudHealth Technologies
HP New Stack
IBM Cost and Asset Management
Microsoft Cloudyn

Sumeru Equity Partners Acquires MDSL and Combines with Telesoft

money-graph
Title Page: SEP Acquires MDSL
SEP Acquires MDSL

Note: Updated August 2nd with coverage links from Sumeru, MDSL, Telesoft, AltAssets, AOTMP, Crunchbase, PEHub, and Pitchbook.

In case you missed the announcement, as of July 31st, Sumeru Equity Partners has acquired MDSL and is joining Telesoft with MDSL to form a single Technology Expense Management company. I had a few opinions about the new MDSL that didn’t fit into my more formal analysis because they’re observations rather than directional guidance. If you haven’t read the formal Market Milestone yet, please check it out.

First, Sumeru Equity Partners has an interesting portfolio of companies that could be accretive to the new MDSL company. Take a look at their current portfolio:

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Amalgam Insights Publishes Market Milestone on CloudHealth Technologies’ $46M D Round

CloudHealth Technologies Leads Cloud Service Management with $46 Million Series D Round
CloudHealth Technologies Leads Cloud Service Management with $46 Million Series D Round

Recommended Research for: CIOs, CFOs, IT Controllers, Finance, IT Service Managers, and Business Managers purchasing cloud services.

Amalgam Insights has just published a Market Milestone describing why CloudHealth Technologies’ $46 Million Series D round is important for executives seeking to manage their cloud environments. At a time when multi-cloud management is imminent and businesses manage over $40 billion in cloud computing spend, CloudHealth Technologies’ Series D Round provides the resources to pursue international business and larger enterprise deals.

To learn more about CloudHealth Technologies and its role in a Cloud Service Management market that Amalgam estimates will be over $900 million in 2025;

Download the report here.

Microsoft “Early Adopts” New ASC 606 Revenue Recognition Standard

The ASC 606 Apocalypse is at hand!
Apocalypse by Michael Lehenbauer on Flickr

Note: This topic is of key importance for CFOs using or considering a subscription-based business model and for CIOs tasked with aligning technology to revenue recognition. Part 2 of this topic is 4 Key Executive ASC 606 Lessons Microsoft is Teaching Us.

On July 20, 2017, Microsoft announced a very successful Q4 FY17 where they announced both successful GAAP and non-GAAP results.

· Revenue was $23.3 billion GAAP, and $24.7 billion non-GAAP
· Operating income was $5.3 billion GAAP, and $7.0 billion non-GAAP
· Net income was $6.5 billion GAAP, and $7.7 billion non-GAAP
· Diluted earnings per share was $0.83 GAAP, and $0.98 non-GAAP

But the part that got my attention was a relatively minor 2 paragraph note near the bottom of the earnings announcement on ASC 606 revenue recognition:

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