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News Briefs

  Online News published in DM Direct Newsletter
April 13, 2001 Issue
  By DM Review Editorial Staff

Why Europe Has the Jump on Wireless CRM Development

Europe has a 12- month lead over the United States when it comes to integrating mobile technologies into customer relationship management applications, reports Aberdeen Group Inc., a Boston-based IT market analysis firm. North America, however, is 18 months ahead of Europe in the overall adoption of CRM applications.

"Many European CRM suppliers have already integrated support for the Wireless Application Protocol into their products," says Ute Appenzeller, co-author of Aberdeen's "Customer Relationship Management: Europe 2001," report. "Some suppliers offer architectures specifically around mobile devices. European technology suppliers should seize this competitive advantage."

It is critical for organizations to integrate wireless sales, marketing and support applications into contact centers to optimize the customer experience and leverage all customer touch-points, notes Sandra Rathod, the report's co-author.

"The onus is on European customer contact centers to support communications via any medium the customer chooses, including telephone, e-mail and Web-based transactions," Rathod says.

U.S. CRM vendors say they're beginning to develop a market for mobile CRM applications, though they admit they're not as far along as their counterparts in Europe, where wireless technology and usage in general is far more developed.


What the Analysts Are Saying About the Marriage of Kana and Broadbase

It's only been a week since Kana Communications and Broadbase Software announced their intent to merge, but analysts are already calling the merger a deal that both companies needed to make. On April 9, Kana, a developer of enterprise management applications, and Broadbase, a provider of analytical software, announced a stock deal worth $75 million.

Together, the developers will sell customer relationship management and analytical software to a combined base of 1,300 companies, including American Express and Boeing. "We are combining analytics, knowledge, marketing and service with a scalable e-business platform," says Kana CEO Jay Wood.

As separate companies, AMR Research Inc. in Boston called each developer a likely takeover target. Now that Kana and Broadbase are merging "they have time to improve their standing and grab some market share," AMR says.


Why 2000 Was a Boom Year for Server Sales

Growth in the world server market remained strong in 2000. According to International Data Corp., factory revenue approached $16.7 billion, which is up 14 percent from the same quarter one year ago. Shipments topped 1.2 million units for the quarter and rack-optimized servers accounted for much of the market's growth. IDC reports the worldwide server market topped $60.2 billion in factory revenue on shipments of almost 4.4 million units for 2000. "Rack-optimized servers stole the spotlight in the server industry in 2000," says Vernon Turner, IDC's vice president of global enterprise server solutions.


The Changing Face of Internet Security Applications Development

The development market for Internet security applications is in for a series of changes. Here are the trends The Yankee Group in Boston reports data warehousing and business intelligence professionals should keep their eye on.

Security service switches. This category will emerge as a new class of carrier-based network equipment to deliver a range of value-added services to enterprise customers.

Market overview. The secure content delivery market will take off based on the need to control and secure digital content. This trend will create new opportunities for security and communications vendors. The Yankee Group predicts the market will surpass $200 million in 2001 and grow to over $2 billion by 2005.

Security service providers. The managed security service provider market will exceed $2.6 billion by 2005 as managed service providers combine e-commerce, Web hosting and IP VPNs into their product offerings.

Remote end-point security. A new security market will emerge for remote end-point security (REPS) as more managed service providers roll out services to protect remote worker systems.

The next boom market. Security intelligence service providers will blossom and capture a $1 billion market as a business emerges to make adaptive network security management a proactive process.

Biometrics goes mainstream. By moving out of test labs and past government installations, biometrics will become a mainstream technology for strong user authentication over IP networks, according to The Yankee Group.


Teradata Finds That Consumers Will Trade Personal Information for Better Service

More Americans are willing to share their personal information with companies if it means getting better service while shopping, according to a survey sponsored by Teradata, a division of NCR Corp. With the shopping public's growing concern over privacy, companies also need to clearly communicate the benefits of personalization to build consumer confidence, according to the survey.

The Teradata survey notes that two-thirds of the consumers surveyed "think a lot about privacy" as they surf the Internet. In addition, 79 percent of survey respondents reported that explicit guarantees that their personal information will be kept private would encourage them to purchase products or services online.

BuzzBack, an online research company, conducted the survey in March for Teradata. The survey is based on feedback from 187 men and women.


Intel's Open Storage Networking Initiative

Everybody, it seems, wants in on the act when it comes to proposing open storage networking initiatives. First it was Cisco Systems with an announcement on April 9 and now a similar initiative is forthcoming from Intel.

At the Storage Networking World Conference and Expo, Intel released software to the open source community that enables organizations to build storage systems that use common Ethernet components.

Intel also announced that it is chairing a multi-vendor group to help accelerate the deployment of next-generation standards that will extend Ethernet to include networked storage.

Intel's open source reference software will help storage device vendors develop products which comply with the Internet Small Computer Systems Interface (iSCSI) specification.

The iSCSI specification is under development by the Internet Engineering Task Force and outlines a next-generation storage protocol that carries storage traffic over existing Ethernet networks.


Hyperion Reports Some Preliminary Numbers

Hyperion, a business analysis software developer, is announcing preliminary results for its third fiscal quarter, which ended March 31. The company expects total revenues to be in the range of $122 million to $127 million.

"The slowdown in the U.S. economy is negatively impacting our business and causing some of our customers to postpone spending on information technology," says Jeff Rodek, Hyperion's chairman and chief executive officer. "Even when we were selected, many final decisions by our customers were deferred."


How EMC Fared in the First Quarter

Even though information technology directors are cutting back on equipment purchases due to slowing economic conditions, EMC Corp. still managed to turn in a better-than-average first quarter. Though the numbers are preliminary, EMC reports that total information storage revenue grew by 37 percent to $2.3 billion. Specific numbers include:

Category First Quarter Growth Rate
(Year-to- Year Growth)
First Quarter Results
(Millions of Dollars)
Information Storage Systems 23 percent $1,564
Information Storage Software 73 percent $468
Information Storage Services 99 percent $232
Total Information Storage Revenue 37 percent $2,345

"Companies continue to collect and store information at an aggressive pace," says EMC CEO Joe Tucci.


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