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What technologies is marketing spending on?

Spencer Ante reports in today’s Wall Street Journal that As Economy Cools, IBM Furthers Focus on Marketers. The title and the short article are focused on IBM’s well-known emphasis on marketers, but the article is of more general interest in driving home the extent of one trend in corporate technology spending – the growth of marketing spending on technology – and provoking a number of questions about what it means. At only 600 or so words the article may be useful for some of you to forward to others in your organization that would benefit by thinking more about the effects of this trend.

The article quotes some recent Gartner research that marketing budgets are roughly 3 times IT budgets as a percentage of revenue, and grew between 2011 and 2012 while IT budgets shrank. Current marketing and IT budgets are both expected to increase, but with marketing budgets increasing at twice the rate of IT budgets – 9.0% vs 4.7%. Gartner has also predicted CMOs will have more control over technology spending than CIOs by 2017. Also, “In total, Gartner says companies spent up to $25 billion worldwide on marketing software last year, up from about $20 billion the previous year. Overall corporate software expenditures totaled $115 billion…”. These are impressive numbers, and our own experience based on discussions with our conference attendees, consulting clients, and other analysts and investors, suggests a broad consensus with the trend. Certainly IBM is big believer.

But the next level of detail is even more important for technology vendors and all CMOs who want to benchmark their competitors spending and strategies – for example, what are CMOs spending money on? what should they be spending on” and how do they organize their infrastructure to learn about, purchase, and manage new marketing technologies, and work with IT?

A vocal segment of the technology press suggest that the future of marketing is all about “social”. A favorite prediction of analysts is that the “Web is dead” and the future is all about mobile. Savvy marketers are beyond such oversimplifications. As important as social and mobile are, I think it is safe to say they are still a small percentage of the $25 billion Gartner number. I would love to be enlightened by anyone who has more details on what the percentage is, and what technology categories others think will benefit most from the increase in marketing spending.

Why is this?

Part of the reason are expensive legacy systems and infrastructures. But a bigger reason is that everyone (not just marketing) is learning. Most of the new technologies have some learning curve, but are not rocket science. The really steep curve is learning how to integrate and utilize new technologies, and especially data they provide, effectively – and that is something we all: technologists, marketers, analysts, will be learning about for awhile.

Learn more at Gilbane Boston.

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IBM to Acquire FileNet

More when I’m not on vacation, but obviously this is big news.

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IBM Announces Release of Viper – DB2 9

As we reported yesterday, IBM announced the release of DB2 9, which is the official release name for Viper, their effort to incorporate XML content into a relational database. Microsoft and Oracle have their own strategies for doing this, and once all their work settles down and starts to get seriously deployed, building enterprise applications will never be the same. It has been 20 years since the early demand for databases that could handle marked-up content (SGML back then), and there have been many products developed to manage SGML/XML repositories since then – Astoria, Berkley DB XML, Ipedo, Ixiasoft, Mark Logic, Software AG, Vasont, X-Hive, and XyEnterprise are some currrent examples.
There has been lots of debate over the years about the best approach to managing marked-up content, and it is safe to say that there is not a single answer. This means that you need to understand what the differences are between them – and it won’t be easy for those of you new to the unstructured data world – this is much trickier than the relational data world. In spite of the huge benefits of the major DB players providing serious XML support, the wide variety of content application requirements will ensure a long-term need for quite a few specialty vendors, whether they are targeting vertical applications or horizontal components. The good news is that even with many different XML application schemas, it continues to get easier to integrate all kinds of XML data.
Bill points to an article in eWeek here. Also see Dave Kellog’s comments and links to other articles.

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IBM & Vignette Develop Strategic Alliance

IBM and Vignette Corp. announced a global strategic alliance to meet growing e-marketplace demands in retail, financial and NetGen (dotcom) sectors. The alliance integrates Vignette’s V/5 E-business applications with IBM’s WebSphere e-business platform. Together, the two companies will supply customers with e-business solutions that grow market share, reduce deployment times and provide the infrastructure for each stage of e-business development. The integration will enhance the family of WebSphere products, including WebSphere Commerce Suite and WebSphere Application Server, which currently provide a fully integrated middleware solution. The multi-year agreement includes joint marketing, services and helping Vignette to integrate on WebSphere Application Server. IBM and Vignette’s initial focus will be in the retail, financial and “Netgen” (dot.com) industries, and both plan to expand to other industries in the coming months. The two organizations will jointly market Vignette V/5 E-business applications and the IBM WebSphere Application Server Platform, WebSphere Commerce Suite, IBM’s DB2 Universal Database and are optimized for IBM’s RS/6000 and Netfinity servers. Dedicated engineering, product marketing and quality assurance teams will manage the integration and optimization of the entire integrated e-business solution. The Vignette V/5 E-business applications will fully support the IBM Application Framework for e-business – a roadmap for integrating Internet technologies with traditional information technologies. In addition, IBM Global Services will grow its worldwide services practice focusing on Vignette V/5’s support of eCRM and e-commerce from 100 IBM services professionals to in excess of 500. Prospective customers will be able to visit IBM’s Business Innovation Centers that will feature Vignette V/5 E-business applications. IBM experts in Vignette products will help customers identify, build, integrate, and deploy solutions that meet their specific business needs. The IBM ‘ Vignette alliance is part of a developer initiative through PartnerWorld for Developers in which IBM forms strategic relationships with application developers. Under the initiative, developers gain access to new customers and revenue opportunities through IBM’s extensive marketing, sales, and solutions resources. At the same time, developers lead with IBM’s middleware, server platforms and services. www.ibm.com, www.vignette.com

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Documentum Introduces Architecture, Partners with IBM

Documentum, Inc. introduced its Open Content Architecture (OCA). The OCA framework is a fundamental part of the extensible Documentum 4i platform and allows customers to power any enterprise or e-commerce application with live, trusted content. Addressing the speed, flexibility and rich feature requirements demanded by eBusiness initiatives, Documentum 4i’s open architecture enables companies to leverage existing technology investments and implement new technology. Documentum’s Open Content Architecture integrates with eBusiness technologies through a series of Live Content Adapters. There are several Live Content Adapters already available for enterprise and desktop applications including Lotus Notes, Microsoft Exchange, SAP R/3 and PeopleSoft. The next Live Content Adapters that Documentum will make available will integrate key e-commerce platforms and Web application servers, such as IBM’s WebSphere, BEA Systems’ WebLogic, the Broadvision One-to-One family of eBusiness Applications and ATG Dynamo. In addition, Documentum is developing Live Content Adapters for popular Web authoring tools, such as Microsoft FrontPage and Macromedia Dreamweaver. Documentum also announced that as part of the IBM PartnerWorld for Developers Program, Documentum will integrate IBM WebSphere with its Documentum 4i solution and will receive co-marketing support for the solution from IBM. www.documentum.com

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