Market Milestone: Tidelift Raises $25 Million B Round to Improve Open Source Business Models

Key Stakeholders: CIO, Enterprise Strategists, Enterprise Architects, Software Asset Managers, Software Developers, Open Source Maintainers

Why It Matters: Open Source is an increasingly important part of the enterprise software portfolio and yet the support, maintenance, and contributions to open source projects are often haphazard, risky, and poorly funded. Tidelift provides a channel to allow organizations and enterprises to effectively fund the founders and maintainers of strategically important open source projects.

Key Takeaway: With this round of funding, Tidelift is well positioned to continue supporting the mission of supporting open source developers through the Tidelift Subscription of security, maintenance, and licensing commitments, through 2019 and beyond.

On January 7, 2019, Tidelift, an Open Source subscription and maintenance company, raised a $25 million Series B round co-led by General Catalyst, Foundry Group, and former Red Hat executive Matthew Szulik. This round came only seven months after an initial $15 million A round and will be used to help Tidelift continue to support Open Source developers, creators, and maintainers seeking financial support so that they can focus on the Open Source projects and packages that they work on with a professional level of support.

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Market Milestone: ServiceNow Buys VendorHawk and SaaS Management Comes of Age

Industry: Software Asset Management

Key Stakeholders: CIO, CFO, Chief Digital Officer, Chief Technology Officer, Chief Mobility Officer, IT Asset Directors and Managers, Procurement Directors and Managers, Accounting Directors and Managers
Why It Matters: Software-as-a-Service (SaaS) is now a strategic IT component. As enterprise SaaS doubles in market size over the next three years, this complex spend category will continue to expand beyond the ability to manually manage it
Top Takeaways: With this acquisition, ServiceNow will have a cutting-edge & converged Software Asset Management solution for both SaaS and on-premises applications in 2019. Enterprise organizations managing over $25,000 a month should consider an enterprise SaaS vendor management solution to optimize licenses, de-duplicate vendor categories, and gain enterprise-grade governance.

With ServiceNow’s acquisition of VendorHawk, the era of SaaS Vendor Management is emergent.

ServiceNow Acquires VendorHawk

On April 25th, 2018, ServiceNow announced its acquisition of SaaS Vendor Management solution VendorHawk in an all-cash transaction scheduled to close in April. This acquisition highlights the increasingly strategic role of SaaS from an IT service management perspective and validates the need for Software Asset Management solutions to support SaaS. In addition, this acquisition continues a string of acquisitions that ServiceNow has made over the past year including acquisitions of:

• Qlue, an artificial intelligence framework for customer service
• Telepathy, a design firm focused on massive adoption of applications
• SkyGiraffe, a no-code mobile app development platform used to make all ServiceNow applications mobile-friendly

The VendorHawk acquisition falls in line with these acquisitions in that VendorHawk will help enterprises to support the widespread adoption of SaaS.

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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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