Category Archives: CPM

Is IBM Getting Out of Enterprise Performance Management?

I noticed that IBM last week sold off several EPM products — IBM Cognos Disclosure Management (CDM), IBM Cognos Financial Statement Reporting (FSR), and IBM Clarity 7 products — to a company called Certent.

This, combined with a pretty weak performance in Gartner’s recent financial and strategic CPM magic quadrants — where IBM landed as Visionary and one and a Challenger in the other, and  a Leader in neither — got me wondering about IBM’s commitment to EPM as a category going forward.  Could Planning or TM1 be next?

Moreover, it wasn’t just the new Gartner magic quadrants where IBM didn’t fare well.  In the Dresner Wisdom of Crowds market study, IBM was bottom-right in the Customer Experience model and was the only vendor entirely left out of (i.e., “outside the magnifying glass”) the vendor credibility model.  And IBM’s ring in the spider chart seems to gotten worse, not better, in 2017 over 2016.

Yes, we all know IBM is quite busy re-branding everything that’s not nailed down Watson, but could they be backing off EPM?

Which got me wondering, as I surfed around IBM’s website, why some products appeared to be first-class “products” while others were found under “marketplace.”  Why is DB2 under analytics products while TM1 is under marketplace?

db2 v tm1

Maybe it’s nothing, but I decided to check around a bit.  My friends in the know seem to believe that IBM remains committed to EPM, but that they view Clarity as a legacy product and were tired of getting beaten by Workiva in disclosure management.  That is, they saw it as a desire to focus more on planning and consolidation and as well things like compensation management.

Me, I’m not so sure.  When companies start pruning in an area sometimes they keep pruning.  And, in general, we don’t see them that much in the marketplace — particularly when you think of the powerhouse that Cognos was back in the day.  And, they don’t seem to be doing that well.  And, Watson is the big future focus.  So, file this under rumor and speculation, but watch this space.

The New 2017 Gartner Magic Quadrants for Cloud Strategic CPM (SCPM) and Cloud Financial CPM (FCPM) – How to Download; A Few Thoughts

For some odd reason, I always think of this scene — The New Phone Book’s Here – from an old Steve Martin comedy whenever Gartner rolls out their new Magic Quadrants (MQ) for corporate performance management (CPM). It’s probably because all of the excitement they generate.

Last year, Gartner researchers John Van Decker and Chris Iervolino kept that excitement up by making the provocative move of splitting the CPM quadrant in two — strategic CPM (SCPM) and financial CPM (FCPM). Never complacent, this year they stirred things up again by inserting the word “cloud” before the category name for each; we’ll discuss the ramifications of that in a minute.

Free Download of 2017 CPM Magic Quadrants

But first, let me provide some links where you can download the new FCPM and SCPM magic quadrants:

Significance of the New 2017 FPCM and SCPM Magic Quadrants

The biggest change this year is the insertion of the word “cloud” in the title of the magic quadrants.  This perhaps seemingly small change, like a butterfly effect, results in an entirely new world order where two of the three megavendors in the category (i.e., IBM, SAP) get displaced from market leadership due to the lack of the credibility and/or sophistication of their cloud offerings.

For example:

  • In the strategic CPM quadrant, IBM is relegated to the Visionary quadrant (bottom right) and SAP does not even make the cut.
  • In the financial CPM quadrant, IBM is relegated to the Challenger quadrant (top left) and SAP again does not even make the cut.

Well, I suppose one might then ask, well if IBM and SAP do poorly in the cloud financial and strategic CPM magic quadrants, then how do they do in the “regular” ones?

To which the answer is, there aren’t any “regular” ones; they only made cloud ones.  That’s the point.

So I view this as the mainstreaming of cloud in EPM [1].  Gartner is effectively saying a few things:

  • Who cares how much maintenance fees a vendor derives from legacy products?
  • The size of a vendor’s legacy base is independent of its position for the future.
  • The cloud is now the norm in CPM product selection, so it’s uninteresting to even produce a non-cloud MQ for CPM. The only CPM MQs are the cloud ones.

While I have plenty of beefs with Oracle as a prospective business partner — and nearly as many with their cloud EPM offerings — to their credit, they have been making an effort at cloud EPM while IBM and SAP seem to have somehow been caught off-guard, at least from an EPM perspective.

(Some of Oracle’s overall cloud revenue success is likely cloudwashing though they settled a related lawsuit with the whistleblower so we’ll never know the details.)

Unlikely Bedfellows:  Only Two Vendors are Leaders in Both FCPM and SCPM Magic Quadrants

This creates the rather odd situation where there are only two vendors in the Leaders section of both the financial and strategic CPM magic quadrants:  Host Analytics and Oracle.  That means only two vendors can provide the depth and breadth of products in the cloud to qualify for the Leaders quadrant in both the FCPM and SCPM MQ.

I know who I’d rather buy from.

In my view, Host Analytics has a more complete, mature, and proven product line – we’ve been at this a lot longer than they have — and, well, oligopolists aren’t really famous for their customer success and solutions orientation.  More infamous, in fact.  See the section of the FCPM report where it says Oracle ranks in the “bottom 25% of vendors in this MQ on ‘overall satisfaction with vendor.’”

Or how an Oracle alumni once defined “solution selling” for me:

Your problem is you are out of compliance with the license agreement and we’re going to shut down the system.  The solution is to give us money.

Nice.

For more editorial, you can read John O’Rourke’s post on the Host Analytics corporate blog.

Download the 2017 FCPM and SCPM Magic Quadrants

Or you can download the new 2017 Gartner CPM MQs here.

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Notes:

[1] Gartner refers to the category as corporate performance management (CPM).  I generally refer to it as enterprise performance management (EPM), reflecting the fact that EPM software is useful not only for corporations, but other forms of organization such as not-for-profit, partnerships, government, etc.  That difference aside, I generally view EPM and CPM as synonyms.