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Posts Tagged ‘IBM

The new portals are online, social, and big enterprise is buying in, again

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Is activity in online marketing slowing down? Not for Salesforce.com.

Salesforce decided to put their foot to the pedal with the $2.5 blahobillion acquisition of ExactTarget Inc. ExactTarget is the latest, but high-profile deals have been happening for awhile.

Big marketing

Big enterprise software companies are jumping into online marketing.

ExactTarget provides email marketing services to clients. Eloqua was swallowed by Oracle last summer. Eloqua’s involved in managing and measuring the effectiveness of organizations’ marketing efforts.

Salesforce, Oracle, Microsoft and IBM are managing change becoming more  social and more collaborative.

This deal does put the other large software vendors in the hunt for marketing assets …   When the proxy on this deal comes out, I think we’ll see they were all in the bidding …

— analyst Pat Walravens of JMP Securities

The competition for assets amongst the big software vendors is alive and well. At a 52 per cent premium, and the largest for Salesforce, will the acquisition pan out as profitable?

Salesforce is paying 5.5 times forecast 2014 revenue, less than the 6.1 times forward revenue Eloqua cost Oracle, according to Walravens.

Change is disruption is change

Online shopping is driving change. Change is leading  marketers to look at data in a big way. Consumers are empowered. The buying process and shopping, affected by the winds of technological change, is forcing change on business.

Data has fuelled providers like Radian6 and Buddy Media. With shoppers going social, companies want to listen. Providing for the needs of consumers is also about providing for the wants. The empowerment of the consumer has reinforced listening as a profound tool for marketing.

Reputation and perception factor into the equation. Consumer perception of reputation and brand have burst into the organizational atmosphere like an asteroid.

Power are the people

Consumers have opinions. Their opinions spread digitally. Listening provides valuable insights gained from focusing on customers.

If 80 per cent of online content is user generated (infographic below), then shrinking away from listening to consumers is the kind of arrogance that leads to crushing falls in stock valuations, mistakes in product development and customer service debacles.

Stories focus on how marketing and IT will work more closely together. Trends are toward collaboration and trust.

The hidden vampire

Silos can form even within marketing departments as analytics and more traditional roles butt heads. The problem is the effect on the bottom line. Silos are vampires and suck the life blood away from the overall health of a business or organization.

Companies need to sustain their organizational lifeblood by moving from a  conquest-based departmental viewpoint to a collaborative one. The players that play for the team rather than for the individual stars become an irresistible force.

How will marketers work with new technology? The technology’s built, but are we letting the operators come? Are we investing in training people? If we aren’t, what does that say about our future efforts to get talent?

While there has been significant criticism of companies like Apple hoarding cash, Salesforce Chief Executive Marc Benioff said:

We can’t just keep making these small acquisitions … That strategy was just taking honestly too long. We needed to do something of consequence and we needed to do something strategic and we needed to do something now.

Now. Sounds like a call-to-action.

Judging by the media attention Salesforce has generated, not every company has been blind to the reputational effects of putting cash to work.

Companies continue to share or invest cash by finding investments that fulfill their vision of new data-driven and social tools. As tools continue to open up portals in space, companies will look to how they can build their businesses in a way that allows them to go through those portals, find new worlds and make their businesses thrive.

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This work and all work on this blog is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.

 

2013-04-03-The_Future_of_Marketing_Infographic_March_20131

Written by johnrondina

June 6, 2013 at 7:00 pm

Amidst all the hoopla: Dell, IBM vs. Apple — Surprise, surprise

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Dell and IBM continue to beat Apple over six months

Reality check:

Amidst all the hoopla over Apple earnings, what many have missed is that, if you look at a six month chart of Apple in comparison to Dell and IBM, Dell and IBM have outperformed. In fact, Dell is the standout at an almost 30 per cent return, nearly double Apple’s return.

With the Apple marketing machine and great earnings, Apple’s still not outperforming Dell and IBM. Hmmmm …

Of course, it will now take $40 billion dollars of new investment to show a 10 per cent return on Apple.

Will Apple’s size slow it down? Will Dell and IBM continue to outperform?

One thing’s for sure, it’s tough to stay on top and over the last six months investors have seen more reward in Dell and IBM.

Stay tuned.

Written by johnrondina

July 20, 2011 at 4:36 pm

How’s Apple stock been doing over the last six months?

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Not great.

It’s down about 12 per cent from its recent high. That’s over $3o billion.

While it may not be facing RIM’s challenges, Apple’s practically turned into a proxy for the Nasdaq over the last six months delivering about the same return. Of course, holding just one stock limits your diversification. Considering how huge Apple’s market capitalization has become, moving upwards now requires a tremendous investment in Apple.

Has it become a victim of its own success?

Consider: Apple’s market cap is now $300 billion. In order for it to increase even 10 per cent, Apple needs a $30 billion cash injection.

Not exactly pocket change.

Over the same period of time, Dell and IBM have outperformed returning over 10 and 15 per cent. The Dow has done better and so has the S&P TSX 60 with a lot more diversification.

Apple’s weighting in the Nasdaq has been lowered so fund managers don’t need to buy as much of Apple to keep pace with the Nasdaq.

Is bigger always better? Maybe not.

Update: The Android cometh – the latest chart on smartphone subscriber share

Apple stock’s been thinking different

Written by johnrondina

June 21, 2011 at 2:47 pm

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