1 Reply Latest reply on Jan 17, 2015 7:16 PM by felix.rubio

    What's up with Facebook and LinkedIn today?

      I'm sure you have seen the news that both Facebook and LinkedIn have pre-announced new products in our category. These comments are a point of view with our thoughts on what the news is, what it means for the category, and implications for Jive.


      TL;DR:

      • Facebook announced Facebook@Work, web and mobile apps that provide the ability for companies to create their own social networks. This functionality is not yet available; no firm date has been given for GA.
      • LinkedIn also announced they will be delivering new products this year to help employees connect with one another. (This blog focuses on FB as we have more information there; updates to follow when we know more about LI)
      • Jive's reputation as a leader in the enterprise social network category and good relationships with CIO's will help differentiate us from Facebook.
      • While these are credible competitors given their brand awareness and affinity, we see the strongest potential competition with Jive Forward/Mid-market segment rather than the Enterprise.
      • Jive Daily is a significant differentiator for us in the mid-market as we are offering an elegant, mobile-first corporate communications solution for strategic alignment; a use case FB@Work doesn't address.
      • FB@Work helps expand the employee messaging category and validates our approaches with Jive Chime and Jive People
      • We won't be making a public statement; see below for more details on how to position in conversations with customers/prospects.


      What Facebook is doing

      • In short, Facebook is introducing the ability for companies to create their own social networks. This is via a "limited pilot" (read: private beta) that enables users to create a work account (with option to have this be separate from their personal account). The focus of this experience is to interact with co-workers, supported by an activity stream, messaging/chat, groups and collaboration, and events. What is shared is only be visible to those inside a company. It appears they have a limited number of customers using this. Available for iOS, Android, mobile and desktop, and targeted for companies of 100 employees or more. We expect they will have an easier time getting traction with smaller companies vs enterprises.
      • This appears to be a bottom-up approach to deepen engagement with their large installed base (think mindshare, brand loyalty, page views, and frequency of visit) and extend their brand to reinforce that Facebook is essential in both the personal and professional contexts. This fits with their continued strategy to own audiences across segments especially as millennials enter the workforce in greater numbers in coming years.
      • We provide preferred solutions for CIOs with respect to their needs for security and compliance across several delivery methods (cloud, hosted, on-prem). This is especially true in highly-regulated industries where we have some of our strongest customers - Financial Services and Healthcare.


      What Linkedin is doing

      • Not to be left out, LinkedIn appears to be developing a set of products designed to help employees connect with one another. The first delivery is planned for this quarter and will focus on enabling users to send InMail (LinkedIn’s private email-like messages) to co-workers even if they are not connected. It will also aim to deliver a corporate directory by asking users to upload their contact information. The second delivery (end of Q1) is aimed at helping companies share content directly with specific groups of employees, leveraging the content that is being developed and shared on their network.
      • This appears to also be a bottom up approach to drive engagement, including page views and frequency of visit. Lifts in engagement help support their revenue streams of recruiting, subscriptions and advertising.

       

      What does this mean for Jive?

      Both Facebook and LinkedIn are credible players and these moves are not surprising, in that large social networks who have reached critical mass need to maintain mindshare and deepen engagement.But more importantly, this does not hinder our strategy to win, but rather further validates that our priorities are SPOT ON. That is, we will simplify and focus our enterprise offering, attract audiences to Jive and expand our addressable market with high volume, mid-market solutions. In addition to fine tuning how we take Jive Internal and Jivex to market, we are developing a portfolio of purpose-built, mobile-centric, cloud-based experiences that are rooted in prospect and market needs.We should also not lose sight of the fact that players of the caliber of Facebook and LinkedIn entering our category help create broader awareness. This, along with Slack, is further evidence that the traditional stack players (Microsoft, Salesforce, IBM) are being disrupted, and with that comes tremendous opportunity.

       

      We believe that Facebook's biggest challenge with this strategy will be similar to what Yammer experienced several years ago - namely, success is predicated on everyone in the company using the tool. Without ubiquity, the value proposition cannot be realized as it's difficult to collaborate with someone who's not using the same tool you are. In order to get company-wide adoption, however, Facebook will need to broker relationships and approval from IT. We believe this will be a considerable challenge given the market perception around lack of security and privacy.

       

      We do expect Facebook to surface in sales opportunities for Jive Internal (see below Sales section). The more direct implication however, is for our Jive Forward portfolio - Jive Daily, Jive Chime and Jive People. While we expect media to reference these competitive moves in our launch activity, we are confident that our first app (Daily) provides a unique benefit the competition is missing, and we welcome more players in the Chime category, as that market is still being built. this amplifies the importance of the category and our ability to make noise across channels.


      How this reinforces our strategies and why we will win

      These moves in the market are further evidence that our approach to go with end-user friendly, high velocity, cloud and mobile oriented and purpose-built solutions is on track. We are relevant and have the leading products and solutions for the enterprise based on our 14+ years of experience.


      But it is not enough to have a strategy, we have to execute like mad. Quickly (now). And with confidence.

      We NEED TO WIN DEALS on 2015!!!


      FB@Work:

      Based on the intelligence we've gathered, we see a few areas of strength for them and a few places were Jive prevails.

      FB Strengths:

      • Reach
      • Brand Recognition/Mindshare and Affinity with certain segments

      Opportunities for Jive:

      • We are leaders in this category with the best products and solutions for the enterprise, built on our 14+ years of experience.
      • We provide preferred solutions for CIOs with respect to their needs for security and compliance across several delivery methods (cloud, hosted, on-prem). This is especially true in highly-regulated industries where we have some of our strongest customers - Financial Services and Healthcare.
      • We've anticipated the shifts in the mid-market and have built a cloud-based infrastructure with universal identity that allows us to deliver a new suite of consumer-grade apps that help us capitalize on the mid-market opportunity.


      Jive Internal POV:

      FB@Work doesn't appear to have all the pieces yet to be a formidable threat to our Enterprise business with Jive Internal. FB@Work has the potential to be a credible solution for small businesses seeking a lightweight social collaboration tool, which is not our target market. These businesses do not have the privacy and security concerns that a larger business holds dear. Nor do they have long checklists of "must have" features. Some of our customers on the Jive Community today agreed with our assessment and one from AMD added via phone: "legal/security people are going to hate it because it takes a ton of work to get approved" and that "[it will be difficult] for Facebook to get over the perception of it being a waste of time." He concluded saying, "we don't need another social island; we need one place to bring all the tools and employees together," further supporting our positioning as Jive as the Hub for Enterprise.

       

      Selling to the Enterprise requires a whole product offering that delivers sustained gains in productivity and cost advantage.

      Jive’s 14+ year history has been centered on delivering solutions aimed at solving specific business problems. Our 850+ customers and 90% renewal are an endorsement that our products do deliver on our promise to help businesses of all sizes connect, collaborate and communicate. In contrast, FB's reason for entering the Enterprise space is not so altruistic. FB is running out of ways to deepen engagement with their audience. Getting a person's attention at work is one of the biggest remaining opportunities for deepening engagement. If this in fact turns out to be their primary motivator, they are not in the business for the right reasons and customers will recognize it based on the decisions they make over time.

       

      We do have concern that the FB@Work announcement could slow down mid-market deals for our market, specifically given it will be offered for free.

      It is reasonable to expect prospects to ask, "Why shouldn't I consider FB@work since it is free?" That might sound familiar given we've been hearing that about Yammer for sometime and it hasn't stopped us from winning. Executives will want to understand why Jive is worth paying for because FB@Work will likely get picked up by end users in a bottom-up adoption model. Although this adoption model may mean FB@Work spreads quickly, it also means that they will have a ubiquity problem in the enterprise. Imagine how frustrating it will be when someone wants to collaborate with another user and they aren't on FB@Work? We've seen this issue play out to the detriment of many solutions in the marketplace including Bascamp, Dropbox, and Evernote to name a few. In contrast, Jive Internal is always ubiquitous.

       

      If you are challenged with the question of why pay for Jive, remind your prospect or customer that Jive focuses on delivering solutions that map directly to specific business processes and challenges, something that FB@Work does not do. Then go onto highlight the key benefit of our three solutions:

       

      • Social Intranet for IT Executives helps accelerate business execution by connecting people and information across applications, environments, and devices, whether you're in the midst of moving some workloads to the cloud, or have already transitioned completely to the cloud.

       

      • Employee Engagement Solution for Corporate Comms Executives delivers a new kind of intranet; one place for employees to stay informed and engaged with people across their departments, divisions and the enterprise.  Corporate Communications professionals trust Jive to ensure vital company information reaches a distributed workforce regardless of how and where employees consume information.

       

      • Employee Support Solution for IT Service Executives helps employee service executives improve overall service quality and efficiency driving faster resolution, better access to information, and better channels of communication, while reducing overall support costs.

       

      • And don't forget to close with the point that Jive is committed to supporting the success of our customers. We have both strategy and technology consulting services committed to implementing Jive in accordance with the solution you are seeking, while offering a range of options for ongoing support services.