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May 13, 2009 1:22 PM PDT

With Valeo deal, Google Apps gains business cred

by Dave Rosenberg
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Gmail may not yet have the same footprint as Microsoft Exchange, but megadeals such as a recently announced 30,000-seat installation at Valeo prove that large enterprises are comfortable running applications in the cloud.

Valeo, an "independent industrial group fully focused on the design, production, and sale of components, integrated systems, and modules for cars and trucks," is deploying Google Apps, supported by Capgemini, in a phased approach throughout 2009 ultimately serving the 193 Valeo entities in 27 countries. The adoption of Google Apps among those units is part of a program to reduce administrative expenses.

As a first step, users are being given access to Google sites, online documents, video management, and instant messaging, including voice and video chat, in order to improve teamwork. The new system will then offer applications to further enhance the company's efficiency, such as an enterprise directory and work flow tools to automate administrative processes.

In the final stage, users will benefit from Google mail, calendar, search, and online-translation solutions to reinforce personal efficiency. They will be able to access the applications from a desktop, laptop, or other mobile device.

It's not totally clear what role a systems integrator plays in this scenario--my guess is that Cap Gemini will do the initial work to build out processes and work flow, and then manage the e-mail migration as the company starts the deployment of Gmail to its staff worldwide. After that, the ongoing support would seem to be rather minimal.

Somewhere down the line, the necessity of SIs in relation to cloud solutions will become more obvious. There are a few companies, such as Appirio that specialize in the development and customization of on-demand applications, but so far, no single SI has figured out how to create a sustained revenue flow.

Of course, they probably shouldn't--a big part of why companies are choosing on-demand or cloud-based infrastructures is to remove the expense of the SI middleman, in addition to removing the overhead of maintaining the systems and software on their own.

(Note: I wrote extensively about moving entirely to the cloud in a December 2008 piece titled "Cloud computing to the max.")

Via Seeking Alpha

Follow me on Twitter @daveofdoom.

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.
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by t8 May 13, 2009 2:30 PM PDT
This is a trend that I believe will become increasingly popular. Just as industries use to produce their own power and then moved to the grid as it became more economically viable and trustworthy, so it will happen again, this time with computing power.
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by MMC Racing May 13, 2009 6:04 PM PDT
I would like to know how many "big" Google Apps deals have fallen apart after the companies ran a pilot? I've heard of several.
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by samjohnston May 14, 2009 4:04 AM PDT
I'm stoked to see the details finally public as it's been a long time in coming... I headed to France a few years ago to design, deliver and demonstrate the proof of concept before handing over to CapGemini for implementation and have been able to say little about one of (if not the) single largest cloud computing strategic deployments so far.

Your comments about SIs being eradicated by cloud computing are on target but that doesn't mean there's not plenty of work for us to do during the "big switch".

Congratulations to everyone at CapGemini, Google and Valeo for seeing this through.

Sam
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by Richard_Payling May 15, 2009 11:44 AM PDT
As a Capgemini lead on the Google Apps implementation for Valeo, I wanted to clarify Capgemini?s role in this project. Dating back to September 2007, Capgemini is the first service provider to support the adoption of Google Apps Premier Edition for large-scale enterprises. In this role, Capgemini delivers the methodology, processes and integration expertise behind the SaaS solution. To break it down, ?Level 1? support is currently being handled by Valeo?s internal IT team, which includes technical inquiries from end-users and ?Level 2? support is provided by Capgemini, which includes functional expertise, requests qualification, diagnostics and follow up. In my opinion, having a strategic partner like Capgemini involved in SaaS implementations is critical to ensuring flawless execution and faster speed to value. I think we will continue to see the role of service providers in enterprise SaaS implementations grow and evolve in the future.?
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by carolwhit June 4, 2009 9:46 AM PDT
I'm glad to see that a company like Valeo has "taken the plunge" with moving to the cloud. Even in my own small business, having these collaborative tools available makes such a huge difference for our team. Where we really see the difference is when we work with other groups who are still on "old school" platforms that don't allow for the same level of collaboration. Going forward, as more companies realize the value to their business of this level of collaboration, I would hope that more companies see the value of these types of tools.
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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