Cloud Bill of Rights for SaaS apps

The Enterprise Cloud Buyer's Bill of Rights provides a tool for clients and vendors to change the tenor of contract negotiations from user subservience to an equal and collaborative long-term partnership. This Constellation...

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The Enterprise Cloud Buyer’s Bill of Rights provides a tool for clients and vendors to change the tenor of contract negotiations from user subservience to an equal and collaborative long-term partnership.

This Constellation CosmosCertification for the Cloud Buyer’s Bill of Rights: SaaS Applications is intended to help buyers and prospective buyers of enterprise cloud applications identify the vendors that meet the spirit of the Cloud. The certification applies four of the six Cosmos categories and includes ownership experience, use case support, corporate vision and ecosystem feedback. Constellation rates vendors on a 0- to 5-point scale.

Constellation’s goal is to recognise vendors for honoring these rights upfront in their existing contract language and throughout the buyer and ownership experience.

Behind The Scenes On How The Cosmos Works
Constellation CosmosTM is Constellation’s flagship quantitative and qualitative product and solution comparison tool. A typical Cosmos contains 50 to 150 exception-based criteria used to help buy-side clients with product and solution selection across the galaxy of choices. The evaluation comprises of six major categories on a 0 to 5 point scale where Constellation evaluates key criteria in:

  1. Ownership experience. Criteria evaluated include assessments on vendor executive advocacy and accountability, timely and meaningful interactions, professional customer support, overall sales cycle and buying process, quality of product and service, and ongoing transparency.
  2. Solution offering. Criteria evaluated include assessments of functional requirements, technical requirements, architectural considerations, and deployment options pertinent to the category.
  3. Use case support. Criteria evaluated include assessments on the ability to support anywhere from 3 to 12 popular use cases requested by end user clients. Use cases typically align with a business process. Considerations include geographical requirements, market size requirements, and industry requirements.
  4. Market execution. Criteria evaluated include assessments of the total number of live customers, total number of customers including prospects, total number of customers over 1B in revenue, funding raised to date (if a startup), total annual revenues, total number of external trained professional service staff, total number of internal trained professional service staff, number of updates per year, and geographic penetration
  5. Corporate vision. Criteria evaluated include assessments of the strength of management team, product direction, level of innovation, market leadership, community stewardship, and investment in R&D.
  6. Ecosystem feedback. Criteria evaluated include assessments of vendor-supplied references (at least 3), direct customer feedback from inquiries and interactions, and partner feedback.

The final ratings place solutions into 5 categories

  1. Epic. Composite scores typically above 4.25
  2. Stellar. Composite scores typically between 3.25 and 4.24
  3. Emerging. Composite scores typically between 2.25 and 3.24
  4. Nascent. Composite scores typically between 1.25 and 2.24
  5. Laggard. Composite scores typically between 0 and 1.2

The Constellation CosmosTM graphic is a three-dimensional visualisation tool built from three axes:

  • Capability represents the X-axis. Capability includes the use case support and solution offering categories.
  • Strategy and execution drives the Y-axis. The score comprises of market execution and corporate vision.
  • Reputation forms the Z-axis. The scores come from the ownership experience and ecosystem feedback categories.
  • Weighted score defines the radius of the sphere. The scores are the composite from capability, strategy, and reputation.

Ray z axis.png

Constellation updates Cosmos’ periodically as client demand dictates. Some reports may be deprecated over time based on lack of market interest. Constellation reserves the right to determine when reports are updated and in what manner.

NetSuite and Actian Corp Achieve Epic Status In the First Of Many Certifications Of Cloud Companies

For the Cloud Bill of Rights: SaaS Applications, the application and the vendor contract were evaluated on 61 criteria. Constellation evaluated the vendors based on the experience of over 1500 software contract negotiations.

Netsuite provides an end-to-end cloud business application suite and was certified against the 61 criteria listed in Constellation’s Cloud Bill of Rights and the Constellation Cosmos methodology. Netsuite achieved a 4.48 weighted score and achieved the highest certification - Epic for its achievement in meeting the 61 requirements of the Cloud Buyer’s Bill of Rights category

Actian Corporation was certified against the 61 criteria listed in Constellation’s Cloud Buyer’s Bill of Rights and the Constellation Cosmos methodology. Actian Corporation’s acquired Pervasive Software on April 11, 2013. Constellation evaluated Pervasive Software prior to the merger. The cloud based integration application known as Actian DataCloud and its contract were evaluated on 61 criteria in the Cloud Buyer’s Bill of Rights: SaaS Applications.

Actian DataCloud achieved a 4.77 weighted score and achieved the highest certification - Epic for its achievement in meeting the 61 requirements of the Cloud Buyer’s Bill of Rights category.

Report Links

Download a snapshot of the reports at the Constellation Research website:
Constellation Cosmos - Cloud Bill of Rights: Saas Apps Actian Corp.
Constellation Cosmos - Cloud Buyer’s Bill of Rights: SaaS Apps - Netsuite, Inc.

Your POV.

How’s contract negotiations with your Cloud Vendors? Let us know your experiences. Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, stay tuned for the full client list on the Constellation Research website.

Posted by R "Ray" Wang

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