Mobile disrupts the cloud


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If mobile devices were merely used to browse web pages, then they would not be very disruptive. But mobile is all about apps, and mobile apps have veered away from legacy browser technology. As a result a paradigm shift is emerging in the host platforms that support mobile.

This presentation looks at the impact of mobile on the cloud, from a technology and business model perspective.

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Mobile disrupts the cloud

  1. 1. MOBILE DISRUPTS THE CLOUD Cloud Computing Primer Eric Rubin Founder, DreamFactory Software
  2. 2. ABSTRACT: THE IMPACT OF SMART DEVICES ON THE CLOUD If mobile devices were merely used to browse web pages, then they would not be very disruptive. But mobile is all about apps, and mobile apps have veered away from legacy browser technology. As a result a paradigm shift is emerging in the host platforms that support mobile. This presentation looks at the impact of mobile on the cloud, from a technology and business model perspective.
  3. 3. Paradigm Shift TECHNOLOGY
  4. 4. CLIENTS PROPEL PLATFORM SHIFTS Smart Devices Browsers Web APIs PC’s Web Servers (e.g IBM,BEA) Client-Server Mainframe (e.g. Oracle/SUN) (e.g Amazon)
  5. 5. SMART DEVICES DRIVE CHANGE IN WEB ARCHITECTURE  Macro computing trends…  rapid move of s/w applications to the cloud  proliferation of devices (phones, tablets, sensors, wearables) connecting to the web  apps usurping browsing as the primary web activity  …drive requirements for a smart client architecture  legacy web technology is inadequate
  6. 6. LEGACY WEB TECHNOLOGY first generation of the web was primarily dumb clients (underutilized PC’s) connected to the web by browsers  The  Browsers communicate with servers via page generation, where the server does all computation and then ships an HTML page to be rendered on the PC’s browser. When your input something new in the browser, a new page is generated on the server and shipped back.  In the modern web a client is increasingly a smart device- tablet, phone, meter, sensor, wrist band, glasses…. These devices have unique local services (e.g. GPS location, Capture, Voice) that modern apps require  Legacy HTML Page generation approaches are unaware of client capabilities, each is treated as one uniform dumb browser client  New service based approaches emerge to fully exploit client capabilities
  7. 7. PARADIGM SHIFT: CLOUD API’S  Smart devices are causing a similar disruption to the cloud as PC’s did to mainframe computing  Mobile is to browsers as PC’s were to VT100’s, driving a paradigm shift  Client-Server computing evolves to Client-Service  The new paradigm is n-tier and web service based  Applications blend services from servers and clients  A new category of cloud middleware emerges to support mobile  Backend As A Service or (mobile) mBaaS  REST APIs enable client-service architecture for smart device applications  Supporting rich client app delivery: HTML5, native IOS (Apple), native Android (Google) and Windows 8 (Microsoft)
  8. 8. THE MODERN CLOUD: CBE  Cloud Back-ends (BaaS, mBaaS) are the newest generation of cloud middleware. CBE is purpose built for the modern web where smart devices need to connect to the cloud  CBE offers a set of APIs that enable rich clients to have cloud back ends for storage, collaboration, app administration, tracking stats, and a host of other capabilities  CBE developers use a service based programming model, based on REST APIs, versus page generation approach.  Examples of CBE vendors include DreamFactory, Kinvey, and FaceBook Parse
  9. 9. SMART DEVICES DRIVE SHIFT TO SERVICES Smart Devices (m)BaaS, CBE PaaS PC’s IaaS SaaS Sites HTML Page Generation 7/10/13 REST Web Services 9
  10. 10. PARADIGM SHIFTS FOSTER DISRUPTIVE INNOVATION  Legacy vendors architected for browsers have to re-architect for this new paradigm  At the same time they have to preserve their investment in page generation architecture, often creating conflicting incentives  White space opportunities unfold for a new generation of disruptive innovators  Setting the stage for disruptive innovators to blindside competitors in core adjacent markets in the future  E.g. Google dominates search and then core adjacent markets like email
  11. 11. The power of App Stores BUSINESS MODEL DISRUPTION
  12. 12. PARADIGM SHIFTS & BUSINESS MODELS Web services Mobile apps Web apps Client Server Sell H/W & S/W Oracle/Sun Sell Subscriptions or Ads Google, Sell services & Usage Micropurchases App Stores Apple, Google Amazon
  13. 13. APP STORES  App stores are a disruptive business model  They dramatically lower customer acquisition costs while dramatically increasing exposure  Populating the market with far more competition than would otherwise be possible  Apple’s App Store has over 1M apps.  Combined with BYOD (bring your own device) App Stores are changing the way business adopt applications  Grass roots, direct access to the pro-sumer (professional/consumer)  Roll up to enterprise deals  Versus mandated top down purchases through IT
  14. 14. APP STORES + BAAS= ENTERPRISE  Most applications are local to the device  BaaS cloud-enables mobile apps  BaaS enables powerful features critical to the enterprise  Group collaboration  Shared database  Adminstration & tracking  Provisioning (and de-provisioning)  Fosters a land and expand strategy  Individual contributors expand to departmental teams expand to enterprise roll-outs
  15. 15. SELLING API’S VS SOFTWARE  There is also a shift on server side business models  In the last paradigm shift Software and H/W systems started moving from capital expenditures to operational expense  From outright purchases to subscriptions  The newest generation of cloud products are being sold on usage  e.g. Amazon Web Services are pay as you go  This has a dramatic impact on bookings and is a major disruptor  Subscriptions amortize revenue over 12-24 months, so at best they are worth 1/12 of a purchased booking. How would it look to your shareholders if you were to recommend cutting your bookings by a magnitude?  Usage is even worse, as there is no committed booking
  16. 16. RISK FACTORS TO LEGACY WEB  Web ISVs don’t fully exploit mobile  e.g. local services, in-app purchases, actionable data, land and expand  Enabling new mobile apps to grab beach-heads  Web ISVs lose touch with the end customer  Who are spending more of their cycles on mobile devices  Initial risk is the “long tail”, SMB customers  Web ISVs miss the boat on enterprise app stores and BYOD  App stores empower individual consumers, and expand to groups though ad hoc collaboration. DropBox and Evernote are great examples of individual productivity tools that have gone viral by making sharing simple  Monolithic and policy driven clouds (most enterprise s/w) can’t exploit app stores as a new business channel as the don’t offer the one-two punch of individual productivity that easily expands to group productivity  Strangely, the compounding effect of BYOD and App Stores provide a channel advantage to start-ups
  17. 17. ENTERPRISE DISRUPTION: WHAT KEEPS CIO’S AWAKE AT NIGHT?  Fueled by mobile, BYOD requirements are elevated to C level.  CEO’s like BYOD’s employee satisfaction and immersion qualities  CIOs must contend with:  Architectural issues. e.g How do we redesign all of our browser based apps?  Security issues of non-issue devices. e.g. How do we protect the company jewels?  Management issues of non-issue devices. e.g How do we disable devices for terminated employees?  These issues must be dealt with in primary application areas:  Business to employee systems (B2E)  Business to consumers systems (B2C)  Business to business systems (B2B)  This creates an enormous white space for partners to help “mobilize” their infrastructure