Forum Views ()
Forum Replies ()
Read more with google mobile :
Analysis: On Cloud 2: making fans of customers on social media
|
Edition:
U.S.
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Roadside clue becomes focus of Holly Bobo search
1:09pm EDT
Iran says it has detected second cyber attack
5:55am EDT
Five women brutally murdered in Mexico beach resort
23 Apr 2011
REFILE-GLOBAL MARKETS-Silver slide boosts dollar, drags on oil
1:31pm EDT
"Water for Elephants" a lost opportunity
8:19am EDT
Discussed
134
Texas governor calls for prayers for rain
133
Obama sees no magic bullet to push down gas prices
64
U.S. sends drones to Libya as battle rages for Misrata
Watched
NATO jets bomb Gaddafi compound
6:27am EDT
Gunfire and tanks in Syria
Sun, Apr 24 2011
Chernobyl Legacy
6:24am EDT
Analysis: On Cloud 2: making fans of customers on social media
Tweet
Share this
By Siddharth Cavale
BANGALORE (Reuters) - In May 2008, a blog post caught computer maker Dell Inc by surprise: popular tech blog Gizmodo had broken news about Dell's Inspiron 910 mini-notebook -- months ahead of its launch -- after seeing CEO...
Email
Print
Related News
India's TCS eyes buys in Germany, Japan
10:16am EDT
Exclusive: Apple to beat Google on cloud music: sources
Thu, Apr 21 2011
Amazon cloud disruption hits some startups
Thu, Apr 21 2011
At Facebook headquarters, Obama seeks 2008 energy
Thu, Apr 21 2011
F5 Networks sees strong Q3; allays Japan fears
Wed, Apr 20 2011
Analysis & Opinion
Tech wrap: Apple beats Google to the music cloud
The cloud is not just about storage
Related Topics
Technology »
Media »
Stocks
By Siddharth Cavale
BANGALORE |
Mon Apr 25, 2011 2:39pm EDT
BANGALORE (Reuters) - In May 2008, a blog post caught computer maker Dell Inc by surprise: popular tech blog Gizmodo had broken news about Dell's Inspiron 910 mini-notebook -- months ahead of its launch -- after seeing CEO Michael Dell toting the notebook at an industry conference.
Instead of staying mum, Dell saw an opportunity in the frenzied online buzz to track what was being said about the notebook and gauge the level of potential users' expectations.
And it paid off.
Dell realized potential customers were planning to pass up a competitor's projects for the new Dell Mini 9; the social media chatter was extending the buying cycle and driving demand. (here)
A combination of social media and traditional customer relations management -- social CRM -- is allowing companies like Dell to track customer conversations, react swiftly to issues they raise, gain insight into their needs and interact with them.
"The (social CRM) market is over $1 billion in social business solutions this year and is growing at 30-40 percent," said Michael Fauscette, analyst at research house IDC.
Companies that provide customer relationship management services on the Internet, or 'cloud' services, are alive to the opportunity and are snapping up firms that offer social media monitoring services.
This marriage of social media, such as Facebook, Twitter, and blogs, with the 'cloud' -- a term that refers to the shift to providing software, computing power and data storage on the Internet -- has been dubbed Cloud 2.0.
Last month, Salesforce.com bought Canada-based Radian6, which counts Dell, Kodak and PepsiCo among its customers, for $326 million. Smaller rival RightNow Technologies bought HiveLive in late 2009, and SuccessFactors last year bought out CubeTree.
CRM vendors' spending on social software to support sales, marketing and customer service processes will top $1 billion worldwide within two years, IT research firm Gartner estimates.
That figure compares to a forecast of more than $12 billion for overall spending on CRM software in 2012, meaning social CRM will account for around 8 percent of total CRM spending next year, double this year's level, Gartner said.
Given how so-called cloud stocks have performed, investors appear receptive to companies making these acquisitions to accelerate growth in new areas like social media. Shares of Salesforce rose 6 percent after its Radian6 news, and Successfactors gained 8 percent after buying CubeTree.
Industry analysts say cloud computing projects tend to generate quick returns, allowing companies to quickly recoup what they spend on the projects and see tangible benefits to their businesses.
INTEREST IS THERE
"I bet a lot of Salesforce's peers are looking at this as well ... it looks like a lot of them are slow or are confused about social CRM, which they say is still in its infancy," said Lyle Fong, CEO of Lithium Technologies, which provides similar social media monitoring solutions to Radian6, and is cited by analysts as a potential acquisition target.
Lithium, which used to provide Internet traffic monitoring, bought Scout Labs last year and transformed itself into a social media monitoring service.
IDC's Fauscette sees Oracle and Salesforce -- which was founded by CEO Marc Benioff in 1999, when he left Oracle -- as potential buyers for Lithium Technologies.
"I'm not sure Salesforce's acquisition of Radian6 indicates a broader trend of consolidation in the industry," said Subha Rama, senior analyst with ABI Research. "However, it does demonstrate that companies are looking to understand the return on investment from their social media initiatives."
As this capability is better delivered from the cloud, you might see software-as-a-service (SaaS) providers buying smaller analytics firms to fill a skills gap, Rama said.
"I don't think IBM will do a buy ... they already have an in-house solution, but Oracle is definitely going to look to acquire some products in this space," she said.
Lithium Tech's Fong reckons all the social media monitoring companies will be bought out in the next year.
"All the big ones are already gone ... that space will disappear as a stand-alone space very shortly," he said.
(Reporting by Siddharth Cavale in Bangalore; Editing by Unnikrishnan Nair and Ian Geoghegan)
Technology
Media
Tweet this
Share this
Link this
Digg this
Email
Reprints
We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Social Stream (What's this?)
© Copyright 2011 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Analyst Research
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Super Lawyers Attorney Rating Service
Reuters on Facebook
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Tuesday, 26 April 2011 Residents tell grim story of assault on Syrian city
|
Mauritanian police use teargas to break up protest
|
Nintendo to launch new Wii in 2012 as profit slips
|
Yahoo buys TV check-in company IntoNow
|
Barnes & Noble improves Nook Color to take on iPad
|
BlackBerry firm seeks security balance in Russia
|
Analysis: On Cloud 2: making fans of customers on social media
|
Leaked Guantanamo files reveal detainee details: report
|
China to punish Baidu for illegal music downloads
|
Samsung, Sony JV to cut capital as Sony struggles with TV loss
|
Iran says it has detected second cyber attack
|
U.S. surpasses UK in online coverage of Will and Kate
|
Cowell wants Paula Abdul, Cheryl Cole for 'X Factor'
|
Crowe pays homage to Elton John, Leon Russell
|
Broadway expands its stage with movie theater shows
|
Prince's 17 remaining L.A. shows cloaked in mystery
|
Some 500 arrested in Syria crackdown: rights group
|
Ukraine marks Chernobyl anniversary, eyes Fukushima
|
U.S. charges Pakistanis in 2008 Mumbai attack plot
|
Strong quake hits Central Java, no tsunami: agency
|
Two bombs hit Pakistan navy buses in Karachi, 4 dead
|
U.N. chief says can't order probe into Sri Lanka war
|
Thai, Cambodia troops clash close to Preah Vihear temple
|
Sony unveils its first tablet computers to take on
|
Nintendo CEO: alliances with other firms may be needed
|
Oracle replaces CFO as Safra Catz gets the job again
|
Amazon betting on cloud computing, sacrificing some profit
|
U.S. surpasses UK in online coverage of Will and Kate
|
Lindsay Lohan to appear on Tonight Show
|
Cowell wants Paula Abdul, Cheryl Cole for 'X Factor'
|
Crowe pays homage to Elton John, Leon Russell
|
Broadway expands its stage with movie theater shows
|
Egyptian film hopes to be liberated by revolution
|
Water for Elephants a lost opportunity
|
Prince's 17 remaining L.A. shows cloaked in mystery
|
Yemen deal may be done within week: officials
|
U.S. and Britain to step up pressure on Gaddafi
|
Iran wants Shourd to return from U.S. for trial
|
Afghan justice minister says mass jail escape had inside help
|
Pakistan defends spy agency ISI, rejects criticism
|
Thai and Cambodian troops exchange fire near ancient temple
|
Rebuilding Japan's disaster-hit towns may take a decade
|
Egypt adjourns trial of former interior minister
|
Is Europe ready to put its data in the clouds?
|
China internet market should not be treated differently: Exec
|
EA's COO leaves for Zynga
|
Plagiarism hunters plague German politicians
|
Facebook, YouTube the new battlegrounds in Singapore elections
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights