Riverside Partners Acquires Calero: TEM in Transition

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?
Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

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:

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

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

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

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:

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

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:

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

Infor and the 80% Solution: Coleman, Birst, GT Nexus, and CloudSuites

Better, Cheaper, Faster is a myth in a cloud-enabled world.
Coleman is Infor's Artificial Intelligence Effort
Coleman is Infor’s Artificial Intelligence Effort

When I represented Amalgam Insights at Inforum, I was wondering if I would be a fish out of water. After all, I am not an ERP analyst. I am not a retail analyst. I am not an HR technology analyst. And those are the first three things I think of when Infor comes to mind. As an analyst who focuses on technology consumption and bridging gaps between the CIO and CFO, I was wondering what would grab my attention other than Infor’s acquisition of Birst.

I was pleasantly surprised by the clarity of Infor’s vision of supporting industry-specific technology consumption. Infor ended up bringing up three key ideas that are core to the future of technology consumption and will end up being strategic considerations for the future of IT.

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

Machine Learning and the Rise of the REEP: Role-Based Expert Enhancement Platforms

Scythe - the REEPer
Don’t fear the REEPer

Based on Amalgam Insights’ discussions with over two dozen enterprise application solutions over the past six weeks, we believe that a new generation of applications is starting to emerge. Machine Learning has led to the evolution of a new generation of platforms that are transforming expert productivity by providing insights through self-guided logic that improves over time.

Amalgam Insights calls these solutions Role-Based Expert Enhancement Platforms (REEP), an emerging technology made possible by the increasing use of machine learning and artificial intelligence in the business world. We believe that, in the short-term, the emerging value of machine learning will come not from generalized platforms, but from these role-based solutions that will greatly simplify finance, compliance, and sales enablement tasks. As companies start thinking about the role of machine learning in enhancing their organizations, Amalgam recommends that they consider these four key areas of benefit:

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

CIO Recommendations for HPE Flexible Capacity & Project New Stack

HP Project New Stack Concept for Hybrid IT cost, orchestration, & usage management
Cute Girl Eating Cotton Candy
Eating the Candy Cloud via Alex Yosifov from Flickr

Amalgam Insights specializes in Technology Consumption Management with a focus on how companies can align IT purchases and subscriptions to the relevant consumption models. This can and should include options for enterprises to purchase not only on a per-server or per-core basis, but also on a duration, user, resource, usage unit, feature, or baseline capacity basis. In this light, AI was especially interested in evaluating HPE’s Flexible Capacity billing capabilities across storage, computing, and networking as well as HPE’s new launch of Project New Stack.

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

AI Analyzes Infor’s Intent to Acquire Birst, A Cloud BI Trailblazer

World Cloud Information Big Data Data Global

On April 25th, enterprise application company Infor announced that it planned to acquire Birst, one of the leaders in the standalone Cloud BI world. Birst is expected to remain as a standalone solution and Infor will become Birst’s largest ISV as Birst becomes the analytic back-end for Infor-based applications. Amalgam Insights (AI) finds this to be interesting based on our long history of analyzing Birst.

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register

AI Vendor Profile: Cloudyn, Cloud Cost Management

From Pixabay
From Pixabay
From Pixabay

Yesterday, at the Boston Cloud Services Meetup at the Cambridge IBM Innovation Center, Amalgam Insights (AI) attended a Cloudyn-based event on “Overcoming the Challenges of Multi-Cloud Financial Management.” This presentation was headed by Account Executive Marcus Benson and focused on the challenges that Fortune 500 companies and managed service providers have in managing both complex single-vendor and multi-vendor cloud infrastructure environments.

Cloudyn is a cloud business and financial management solution founded in 2011 and set up as both a multi-tenant and multi-cloud solution running on AWS, Microsoft Azure and Google Cloud. Cloudyn supports a single pane of glass view for consolidated management and a real-time and continuous support of cost optimization for multiple vendors including Amazon Web Services, Microsoft Azure, Google Cloud, OpenStack, and Docker. Cloudyn has raised over $20 million in venture capital and seed funding and currently targets large enterprises, managed service providers, and companies with over 1 million dollars in annual cloud spend.

Please register or log into your Free Amalgam Insights Community account to read more.
Log In Register