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How HubSpot is Carving out a New Niche in CRM

Sunday 21 December 2014

The company's new CRM is going after a different kind of company than Salesforce.

The CRM space has been relatively stale. Or maybe unvaried is the better word for it. Which is surprising—considering how customer relationship management has become so crucial for generating sales and retaining customers in today’s world.
Cambridge-based HubSpot was surprised, too. Though its core business is software for inbound marketing, the company has seen sales software as a new area to expand into.
And so, just weeks before its October IPO, HubSpot debuted its own CRM at its Inbound conference. The initial assumption was that HubSpot was trying to steal Salesforce’s thunder, and the company’s entrance into a market historically dominated by Salesforce was interesting for other reasons, too. HubSpot is a Salesforce customer, for one, and Salesforce had also been an investor in HubSpot.
Yes, describing HubSpot’s CRM offering as a declaration of war on Salesforce certainly can make for a juicy story, but it’s not actually the intention behind their new product, HubSpot executives say. Not only does their product offer distinct benefits, it’s also aimed at an entirely different kind of customer.

Differentiators

What sets HubSpot’s CRM apart? For one, it promises to take some of the headaches associated with the technology, like manual entries, logging emails and calls and hunting down deals as they progress in the pipeline.
The tool, which operates in sync with both the company’s marketing platform and Sidekick, connects to Gmail, Google Apps, Outlook and Apple Mail. Its all-encompassing dashboard and dynamic timeline view aim to let sales teams to easily view contacts, deals and tasks as well as identify opportunities and leads at a glance. The software also pulls in all relevant information from Web activity, social media and email, and users can also add customized fields, filter records and easily drag deals through different stages of the sales process. That translates to a hassle-free user experience and a frictionless customer experience.
CMO Mike Volpe stressed that HubSpot’s CRM is designed with sales rep efficiency in mind.
"One of the things we noticed when we were researching CRM products in the space was that reps place an inordinate amount of time logging calls and doing manual work that doesn't actually help them sell better, faster, or more effectively," he said. "To that end, we tried to take the heavy lifting out of manual tasks that don't deliver value to end customers or to the reps."
Most importantly, the product promises to be ultra-intuitive and simple to use, which is no doubt a major draw for smaller companies. But the feature that’s inarguably most attractive is the fact that it’s free. Clearly, HubSpot’s CRM has a target customer — and its not the same as Salesforce’s.
Startups itching to leverage the growth-hacking trend no longer have to shell out for costly CRM tools.
When HubSpot CRM initially launched, hundreds of the company’s customers signed up to participate in the public beta. But in the coming year, the product will be available to anyone, totally free. That means startups itching to leverage the growth-hacking trend no longer have to shell out for costly CRM tools (which, previously, were the only options). Now, they can do more with less.
“If you are an enterprise with significant and complex demands for your CRM, there are lots of great options, but the HubSpot CRM is likely not the best fit for you,” Volpe said. “However, if you are a mid-market company that really wants to grow and transform your business, the HubSpot CRM is a great fit.”
Volpe added that "the traction and feedback has been overwhelmingly good" so far.
"We are learning a lot from our customers using it, and they are seeing meaningful results by using the CRM in conjunction with our core marketing platform,” he said.
The aim for 2015, according to Volpe: Keep up with demand for its CRM from mid-market companies.
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10 most significant technology trends to look forward to in 2015

Sunday 21 December 2014
10 most significant technology trends to look forward to in 2015
22 Dec 2014 , 09:20






Alina Lewis and Shruti Dhapola
The constant evolution of technology is a reflection of the true human nature. As we aim to live more comfortable lives, innovators constantly strive to help us achieve our goals through new developments in science and technology.
In 2014, we saw the emergence of interactive apps and personal cloud services, online retail matured and almost everything including products and services started getting digitised.
As we move on to 2015, here’s a look at the top 10 emerging technology trends that are poised to take off in a big way.
1. Mobile payment systems
Apple Pay
Apple Pay
The growing popularity of Apple Pay will cause a wider acceptance of mobile payment systems – a technology segment that does away with the need for physical cash by allowing you to make payments with your smartphone.
Also called as digital wallets or e-Wallets, mobile payment systems allow you to make in-store and online payments as well as money transfers by downloading an app onto your phone and linking the service or app account to a bank account or credit/debit card.
Popular mobile payment systems, other than Apple Pay include Google Wallet, PayPal, LevelUp and Square Wallet. As of now, a majority of these are available only in the US, though we may some of them expand to other countries in the coming year.
2. Apps for on-demand services
Foodpanda's food-delivery app was launched in India this year
Foodpanda’s food-delivery app was launched in India this year
On-demand radio and TV apps are dime a dozen. But in 2014, we saw the rise of other on-demand apps that proved real life savers by giving you an urgent ride back home and meals delivered in no time.
While this year saw a flood of radio cabs and food delivery apps catering to your needs, not to mention the rich and the lazy, you can expect on-demand services to expand into other segments, too, including on-demand beauty services, hotel reservations and even emergency health services.
TheStylisted, for example, is an app that lets you schedule in-home beauty treatments by professionals in New York and Chicago. Similarly, the DogVacay app helps find a pet-sitter near you, make reservations and pay right through your phone.
3. Beacons
iBeacon
Apple iBeacon
Beacon technology uses Bluetooth to sense the location of a device and work with apps to carry out certain operations. In the coming year, we may see several applications making use of this technology.
For example, McDonald’s is currently testing beacons that will deliver coupon offers, alerts, employment opportunities and customer surveys right as customers enter its stores. Microsoft’s 3D SoundScape headset relies on Wi-Fi and Bluetooth beacons placed in strategic intervals, to help the blind travel independently on roads and public transport.
Apple announced iBeacons in 2013 that could trigger actions based on where an iOS device is positioned. If well implemented, you could walk out of one room, have your AC switched off and as you walk into the next room have a TV switched on to play your favourite show.
4. Social payments
Line Pay
Line Pay – a mobile payments system in the messaging app
Messaging app Line recently launched Line Pay to allow users to transfer money and purchase items directly from the app. The service will also let users pay for goods when offline.
Payments via social apps are quite common in China and Korea, where WeChat and Kakao Talk are dominant players.
Globally, mobile payments through social apps is an emerging trend and we’ve already seen some early adopters including Snapchat. Facebook and Twitter are also working on in-app payment services on their respective platforms.
5. WebRTC for mobile devices
WebRTC-compatible Wire app allows sharing of pictures, HD audio and other rich media
WebRTC-compatible Wire app allows sharing of pictures, HD audio and other rich media
Media streaming is picking up at an exceptional pace, but with a majority of activity being carried out on smartphones there’s a pressing need for quick load times in videos, games and other media without compromising too much on the quality.
This need can be fulfilled WebRTC, a free browser-based technology that can help in providing seamless video and audio services. In addition to videos, WebRTC allows lag-free and faster loading of games and music, without gobbling too much of the network’s bandwidth. WebRTC is currently powering Google Hangouts and Amazon’s Mayday services.
Future mobile apps will leverage WebRTC. Skype co-founder Janus Friis recently launched Wire, a chat and voice messaging app that uses WebRTC.
6. Ephemerality
Snapchat
Snapchat
Thanks to the popularity of self-destructing photo and video app, Snapchat, many have joined the ephemerality band wagon and we expect this trend to grow.
Earlier this year, Facebook offered to buy Snapchat for over $3 billion. On being turned down, the social-networking giant introduced a similar service called Slingshot. Facebook-owned Instagram launched Bolt, which is currently available in limited countries. Wickr and Frankly, on the other hand, are self-destructing messaging apps.
While security remains a primary concern, the nature of ephemeral apps has made it a popular among younger users. In the future, we may see the feature built into existing messaging services rather than just standalone apps.
7. Smartwatches
Apple Watch
Apple Watch
With the Apple Watch set to release in 2015, this is definitely going to be one of the most watched trends for the upcoming year. Sure the Apple Watch’s square design hasn’t appealed to a lot of hardcore fans and yes there are questions about whether the battery life of this smart wearable from Apple will be up to the mark, but that hasn’t stopped it from being one of the most awaited devices.
As far as smartwatches are concerned, we saw a lot of them being launched in 2014. From Sony Smartwatch 3, to Samsung Gear S (which is the only one with a dedicated SIM slot) to the LG G Watch to Pebble Steel, these wearables made their presence felt in the market.
Perhaps the toast of all these devices was the Moto 360, which managed to woo tech fans and watch enthusiasts alike.
According to a report from Canalys research firm, Q3 of 2014 saw, nearly 5 million smart and basic wearable bands shipped in Q3 2014, with total unit shipments increasing 37 percent quarter on quarter as Android Wear made its mark for the first time. Motorola Mobility’s Moto 360 was by far the most successful of the initial Android Wear devices, accounting for over 15% of the smart band, said the research firm, which expects the shipments for smartwatches and bands to exceed 43.2 million in 2015. The firm says that Apple will be the biggest driver behind wearable band shipments in 2015.
8. Cheaper 3D printing
scientist 3D printing human heart
3D printing which allows users “to print three dimensional solid objects from a digital file”, is a trend that will only bigger from 2015 onwards. Q3 of 2014 saw around 33000 such printersgetting shipped which is a 4% increase, report Canalys.
This year we saw talk of 3D printers being used to potentially create personalised makeupand how legs from a 3D printer helped one dog called Derby run for the first time. So yes the technology holds extreme consumer potential.
Currently what is holding back 3D printing is the high prices, but the report by Canalys adds that the consumer market is growing fastest, as 3D printer prices have continued to fall and the technology has rapidly improved.
According to Canalys Research Analyst Joe Kempton, “These results are extremely encouraging for the future of the 3D printing industry. The rise in cheaper, consumer-oriented products is further proof that the consumer side of the industry has serious potential, and we expect similar growth rates in the future.”
9) Connected Homes and Cars
Smart-home on Google's radar
Smart-home on Google’s radar
From Google’s I/O conference to the Apple WWDC 2014, the smart home concept was definitely the most talked about this year, and it’s likely that we will more on these two fronts from both Apple and Google.
Apple introduced HomeKit during its annual developers conference this year and essentially the app will allow users to connect their iPhone/iPad and control things like garage doors, lights, security cameras, even thermostats and switches. Users can just control these through Siri.
For example, they could say “Get ready for bed” and the house lights will dim. Of course, you’ll need to have products that are certified for the HomeKit and the company announced that it would run a certification program for HomeKit and initial partners include August, Honeywell; iHome; TI; and about a dozen more.
If Apple introduced HomeKit, Google wasn’t far behind and showcased Android Auto at its I/O conference. During the course of the year, Google also showed off driverless cars to the world in 2014 and has set out a 2017 time-frame for these to hit the streets, although that could be a bit unrealistic.
Google also showcased Android Auto and recent reports indicate that the next version of Android will be such that it can be directly built into cars.
It won’t be surprising to see more on the car and home front from these two companies in 2014.
10) Cloud Computing
Google cloud messaging
Google cloud messaging
This basically allows centralised data storage and computers can access this data. Clouds can be classified as public, private or hybrid. Essentially cloud computing allows you to store data online and access it whenever you need it.
According to IDC, “Total cloud infrastructure revenue for the quarter grew 16% year over year to $6.5 billion. Public cloud infrastructure accounted for nearly half of total cloud infrastructure revenue and is growing faster at 18% compared to one year ago.”
From Google to Microsoft (which saw its profits rise thanks to cloud computing), to HP, every major tech company is investing in this and the segment will continue to grow in the coming year.
Think we’ve missed out on something that deserves to be on this list? Tell us in your comments.
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Technology firms: Frothy.com

Sunday 21 December 2014
Oculus VR's headset Oculus rift Tokyo Game Show 2014REUTERS/Yuya ShinoA woman tries out Oculus VR's headset Oculus rift development kit 2 at its booth in Tokyo Game Show 2014.
In December 15 years ago the dotcom crash was a few weeks away. Veterans of that fiasco may notice some familiar warning signs this festive season.
Bankers and lawyers are being priced out of office space in downtown San Francisco; all of the space in eight tower blocks being built has been taken by technology firms.
In 2013 around a fifth of graduates from America's leading MBA schools joined tech firms, almost double the share that struck Faustian pacts with investment banks.
Janet Yellen, the head of the Federal Reserve, has warned that social-media firms are overvalued--and has been largely ignored, just as her predecessor Alan Greenspan was when he urged caution in 1999.
Good corporate governance is, once again, for wimps. Shares in Alibaba, a Chinese internet giant that listed in New York in September using a Byzantine legal structure, have risen by 58%. Executives at startups, such as Uber, a taxi-hailing service, exhibit a mighty hubris.
Yet judged by the financial yardsticks of the dotcom era there is as yet no bubble. The NASDAQ index of mainly technology stocks is valued at 23 times expected earnings versus over 100 times in 2000. That year Barron's, an investment magazine, published an analysis showing that 51 listed technology firms would run out of cash within a year. On December 6th Barron's repeated the exercise and found only five listed tech firms with wobbly finances.
Instead, today's financial excess is hidden partly out of sight in two areas: inside big tech firms such as Amazon and Google, which are spending epic sums on warehouses, offices, people, machinery and buying other firms; and on the booming private markets where venture capital (VC) outfits and others trade stakes in young technology firms.
googleGlassdoorGoogle employees.
Take the spending boom by the big, listed tech firms first. It is exemplified by Facebook, which said in October that its operating costs would rise in 2015 by 55-75%, far ahead of its expected sales growth. Forget lean outfits run by skinny entrepreneurs: Silicon Valley's icons are now among the world's biggest, flabbiest investors.
Together, Apple, Amazon, Facebook, Google and Twitter invested $66 billion in the past 12 months. This figure includes capital spending, research and development, fixed assets acquired with leases and cash used for acquisitions.
graph economistvia The Economist
That is eight times what they invested in 2009. It is double the amount invested by the VC industry.
If you exclude Apple, investments ate up most of the cashflow the firms generated.
Together these five tech firms now invest more than any single company in the world: more than such energy Leviathans as Gazprom, PetroChina and Exxon, which each invest about $40 billion-50 billion a year.
The five firms together own $60 billion of property and equipment, almost as much as General Electric. They employ just over 300,000 people.
Google says it is determined to keep "investing ahead of the curve".
Big firms are also making speculative bets, to add new products and insure themselves against technological change.
Amazon is investing in content and recently acquired Twitch, a video-streaming firm. Google is throwing cash at driverless cars, robots and home thermostats.
Facebook has acquired Oculus VR, a maker of virtual-reality headsets. Mark Zuckerberg, Facebook's boss, has said that it will not have an immediate payback: "It's going to take a bunch of years to get there."
mark zuckerbergAdnan Abidi/ReutersMark Zuckerberg
What are the odds of all this money being spent sensibly? Apple is still tremendously profitable. The other firms have patchier records.
Google's return on capital has halved to about 20%, after accounting for stock-option costs. Amazon has never generated much cash. The longer-term omens are not good. Few firms learn how to create a framework for spending tens of billions of dollars almost overnight.
When previous champions, such as Nokia, Yahoo and Microsoft, made big acquisitions in adjacent areas they often fared badly. There are few obvious sources of restraint at those firms still dominated by powerful leaders who control their companies: Google, Facebook and Amazon. All five of today's stars have lots of excess cash. Much of this is parked offshore and cannot be brought home without incurring tax, giving an extra incentive to spend it.
The second area of technology froth is in private markets. Their exuberance was demonstrated on December 4th when Uber closed a $1.2 billion private funding round that valued the five-year old firm at $40 billion. Baidu, China's biggest search engine, is set to buy a stake, too.
There are 48 American VC-backed firms worth $1 billion or more, compared with ten at the height of the dotcom bubble, according to VentureSource, a research outfit. In October a software firm called Slack was valued at $1.1 billion, a year after being founded. 2014 looks set to be the biggest year for VC investments since 2000.
uberTENGKU BAHAR/AFP/Getty Images
Part of what is happening is a shift away from stockmarkets. Entrepreneurs are keen to avoid the bureaucracy involved in initial public offerings. They now have alternative ways to raise cash and to award tradable shares to staff. More institutional investors are buying into private technology firms, alongside VC funds. Unlike in 2000 the firms they invest in already have scale. Uber's gross sales, of which it keeps about 20%, are expected to hit a run rate of $10 billion by late 2015.
But with many investors chasing a few firms, VC gurus are worried about frothy valuations. The best-known of these, Marc Andreessen, has said valuations are getting "a little warm", and called for discipline. A banker warns that successful funds' recent run of profitable exits is encouraging them to take "lottery ticket" bets. Among the most recent tech firms to debut on stockmarkets with huge share-price "pops" are Lending Club, a peer-to-peer lending platform, and New Relic and Hortonworks, two "big data" software firms.
The sins of big, listed tech firms and younger, private ones will be forgiven if their growth continues at a blistering pace for several years: so far there is no clear sign of deceleration. But if these firms do slow down before then, the present investment boom will look like a horrible mistake for the firms and investors that financed it.
For society, though, there is little to fret about. As in 1999-2000, startups and tech giants are creating jobs and investing in new technologies and infrastructure that boost long-term economic growth. But this time round a slump would be unlikely to lead to a broader contagion, since it would be confined to private markets and a few large firms with strong balance-sheets. Silicon Valley still does vanity, bubbles, genius and excess. But when it comes to causing crashes, it has learned to be less evil.
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Three ways enterprise software is changing

Saturday 20 December 2014

Today's IT shops must grapple with analysis, cloud computing and DevOps



Once upon a time, life in the enterprise IT shop was fairly simple, at least conceptually speaking.

IT issued computers and laptops to employees, and maintained enterprise software, databases and servers that supported the company, which were mostly run in-house.
These days, IT's basic firmament is giving way to a more breathtaking geography that the IT pro must traverse, based on pay-as-you-go cloud computing, building applications and performing deep data analysis. Perhaps more fundamentally, IT operations are moving from merely supporting the business to driving the business itself, which requires agility and making the most of resources.
Here are three of the largest forces at work that will change enterprise software in 2015, and beyond:
The Platform
The idea of cloud computing has been around for a while, so it may be hard to think of it as a new force. Yet, after a few years of testing the cloud for running development projects and tangential applications, enterprises are now moving their more critical operations to the cloud.
IDC expects that by 2017 organizations will spend 53.7 percent of their budgets on cloud computing, and the market for cloud computing software will be over $75 billion.
Concerns about security and overall cost continue to fade as businesses face the upgrade costs of replacing data centers full of servers, or stare down the large up-front costs of implementing a complex in-house enterprise software system.
Travel information provider Lonely Planet is one Web-facing company that has made the jump into cloud services, migrating all of its operations to Amazon hosted services when its data-center lease came to an end.
"With Amazon, we could treat infrastructure as code," said Darragh Kennedy, head of cloud operations for Lonely Planet. Instead of worrying about how many servers to lease, the company could concentrate on perfecting its service, with Amazon quickly and easily providing however many servers are needed for seamless service.
"Our product owners can stand up a new environment in under 10 minutes, and that really speeds up how quickly we can build new products," Kennedy said.
Amazon Web Services got a head start in the cloud services space, but Microsoft is quickly catching up with its Azure service, according to Gartner.
Other enterprise-focused IT companies quickly ramped up their cloud-computing operations this year. IBM and Hewlett-Packard, have each earmarked $1 billion to building out their cloud-computing services.
Complicating the best laid cloud migration plans has been the sudden emergence of Docker, a new, lighterweight, form of virtualization that promises greater portability and faster performance.
Launched in 2013, Docker has been downloaded over 70 million times. The major cloud service providers, including Google, IBM and Microsoft, all spun up their own, and sometimes proprietary, Docker-based services.
While those CIOs who have already started down the path of cloud computing, perhaps by virtualizing some of their operations, may feel frustration at the potential of re-gearing with Docker, it provides one key element that they will need: swiftness. It has been said Docker is the first virtualization technology ready for the DevOps age.
What is DevOps? You should know about that as well.
The Software
A decade ago, COTS (commercial-off-the-shelf) software was the way to go. Why go through the trouble of building your own software from scratch when Oracle, Microsoft and SAP could provide you with all (or at least most) of the capabilities?
If employees grumbled about such software being sometimes difficult to use, well, they were getting paid to use it, right?
These days, however, businesses are finding that enterprise software is no longer in a supporting role, but is central to businesses maintaining a competitive edge. In many cases, this means the organization must build its own software, at least for those parts of the operation that provide the crucial competitive edge for the company.
Remaining competitive is a moving target, of course, as competitors are also busy sharpening their own products and services. Nowhere is this more pronounced than with large Internet-scale services such as Yelp, Facebook, or AirBnB, who live or die on beating their competition with more helpful, and easier to use, features. The days of asking users, or employees, to put up with fussy software are coming to an end.
Such pressure has brought about a new operating paradigm called DevOps, which, in name and in spirit, combines software development and IT operations into one cohesive workflow. Tightly integrating the development cycle of an application with the subsequent operation of that application can cut the length of time required to update a customer-facing or internal application. About 60 percent of CIOs plan to use DevOps to manage their software, IDC has estimated.
Microsoft has been filling out its portfolio of development software to support devops operations. IBM has set up a special consulting practice just for helping organizations get more into a devops-style workflow.
One user of Microsoft's DevOps tools has been the business services division of French telecommunications company Orange, which develops systems and software for other organizations.
"A few years ago, it was the norm to deliver good functionality on time and on budget," said Philippe Ensarguet, CTO at Orange Business Services. "Now, we have to deliver sooner and faster and better."
One question that dogs the modern business is how to offer something unique in this global, hyper-competitive market. This is where new forms of data analysis could help.
The Data
Data analysis, once chiefly the provider of numbers for PowerPoint presentations and executive dashboards, is increasingly shaping the strategies and operations for many organizations.
Of course, data-guided business decisions are nothing new. What is new is a new depth in the kind of insights that analysis can provide, as well a greater range of data that can be put to computerized scrutiny.
IBM, among other companies, has been ambitiously pursuing the additional ways data can be parsed through cognitive computing, which harnesses techniques of machine learning, neural networks and other approaches to better mimic the ways humans intuit insight from data.
And thanks to the open-source Hadoop data-processing platform, the use of which is growing in the enterprise, additional types of data can be mined for potential knowledge.
Hadoop excels at churning through vast reams of unstructured data, data not stored in a relational database but captured in text files or log files--all the stuff IT staff used to largely ignore, then routinely delete once it filled its coffers. But e-mail, the Web surfing habits of customers or server log files can provide insight into long term trends, daily operations or heretofore undiscovered customer preferences.
One such company that found a competitive edge with such big data, as it is often called, has been enterprise security services company Solutionary, which used a MapR-based Hadoop distribution to enlarge the set of services it offers for its customers.
Solutionary uses Hadoop to store and analyze the security and events logs of its corporate customers, so they can be alerted when suspicious activity may be taking place on their systems. Hadoop allows the company to store more data, at a cost considerably less than if it were to be stored on a data warehouse.
Using this additional data allows the company to offer a longer-view analysis to its customers about what is happening on their networks. It also allows them to perform predictive modeling on the data, potentially giving its customers earlier warning about security issues.
Hadoop allowed Solutionary "to get off an architecture where you had to be careful about what to put into it, and to a model where you could store everything," said Scott Russmann, Solutionary's director of software engineering.
Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com
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