Following the big announcement from our friends at Intacct, Host Analytics announced an important update of its own. On June 29, the company announced that it was designated a leader by the analyst firm Gartner in its annual rankings for Strategic and Financial Corporate Performance Management Suites. These Magic Quadrants, designated SCPM and FCPM, respectively, act as guides not only for buyers, but for other analysts, competitors, and the vendors themselves.
CPM Magic Quadrants: Host Analytics is No Stranger to Recognition
Host Analytics is no stranger to these Magic Quadrants, as demonstrated by their appearance as the first and only SaaS-based product to appear on the list in 2009, 2010, and 2011. The company has continued to innovate and move up in completeness of vision and ability to execute, transitioning from visionary in both categories last year to leader in both categories in 2017.
Note: You can see our overviews of the Magic Quadrants for CPM Suites in 2014, 2015, and 2016 by clicking the links below:
- 2014: Host Analytic Named to Gartner Magic Quadrant for CPM Suites
- 2015: Host Analytics is a Visionary in Gartner’s 2015 Magic Quadrant for CPM Suites
- 2016: Host Analytics Achieves Visionary Status for SCPM and FCPM Functionality
The 2017 Magic Quadrant for FCPM and SCPM: Taking It to the Cloud
2017 marks a change in direction for Gartner, who re-worked the Magic Quadrants in 2017 to reflect the buyer preferences. This year, the company discontinued “Magic Quadrant for Strategic Corporate Performance Management Solutions” and “Magic Quadrant for Financial Corporate Performance Management Solutions,” replacing each Magic Quadrant with a cloud version.
While we will explore each report and Host Analytics’ positioning on each in coming weeks, but would today like to look at why Gartner made the switch to focus on the cloud, provide a brief overview of both Magic Quadrants, and offer you an opportunity to get the research for free from our friends at Host Analytics.
Gartner Moves FCPM and SCPM Magic Quadrants to the Cloud
As one of the leading technology analyst firms in the world, Gartner knows how to answer the questions posed to them, both by potential buyers of research and by prospects of the vendors themselves. This is why they have made the move to include cloud-native or cloud-migrant applications—focusing exclusively on these deployments.
“The [FCPM/SCPM] market has shifted from mature on-premises offerings to cloud solutions as leaders have sought improvements in […] application flexibility and shorter time to value. In addition to providing these advantages, cloud [FCPM/SCPM] solutions are typically easier to use and manage than the previous generation of on-premises offerings.”
For this reason, Gartner has moved its focus away from traditional offerings to cloud, identifying three types of cloud service vendor that met the inclusion criteria for the Magic Quadrants:
- Cloud-only vendors with cloud solutions that have been architected wholly or largely from the outset as cloud services. These vendors have a multitenant application architecture.
- Traditional on-premises vendors with new “built for the cloud” solutions. Although these solutions have been built for the cloud, they may reuse functional code and platforms from the vendor’s preceding on-premises offering.
- Traditional on-premises vendors that have made their solutions available as a cloud service.
Additional criteria included that a vendor must have 25 applications using the public cloud service only (as opposed to 25 clients spread across public, private, and on-premises deployments). Vendors were graded based on the product itself, not the technical architecture underlying the product.
As with any other Magic Quadrant, vendors were compared based on ability to execute and completeness of vision, named:
- Leader (High Ability to Execute, High Completeness of Vision),
- Visionary (Lower Ability to Execute, High Completeness of Vision),
- Niche Player (Low Ability to Execute, Low Completeness of Vision),
- Challenger (High Ability to Execute, Low Completeness of Vision)
Cloud Strategic Corporate Performance Management Magic Quadrant (SCPM)
All vendors in this market, as defined by Gartner, must support at least two of the following components of SCPM:
- Financial Budgeting and Planning
- Integrated Financial Planning
- Strategy Management
- Financial Modeling
- Performance Reporting
Cloud Financial Corporate Performance Management Magic Quadrant (FCPM)
As defined by Gartner, the components of an FCPM solution support financial accounting processes to help achieve a corporate financial close. The FCPM market includes the following components:
- Financial Consolidation
- Financial Reporting
- Management Reporting, Costing, and Forecasting
- Reconciliation and Close Management
- Intercompany Transactions
- Disclosure Management
We will explore each of these topics in depth in the full blog on FCPM Suites.
Get Both FCPM and SCPM Magic Quadrants
You can download both reports courtesy of Host Analytics here: Host Analytics Named A Leader On Both Gartner Magic Quadrants For Cloud Financial And Strategic CPM.
Learn More: Finance’s EPM Playbook
Financial management is a monumental task itself, and when you couple all of the internal pressures combined with the ever-present forces like sourcing good talent and putting defendable corporate numbers before the board, the pressures on Finance are nearly unbearable. If Finance is going to embrace the challenges of 2017 and beyond, it will have to do it with a solid strategy and understanding about the environment, along with opportunities both inside and outside of the department.
To enable Finance to meet these challenges, and propel itself forward, a finance organization playbook is intuitively appealing. To that end, we have identified six components of a finance organization playbook, along with a solution that can manage the process—enterprise performance management (EPM). Download the entire guide to EPM here.