Bookseller in Top 10 IT services by 2016? 1 IBM $37,347 2 HP $34,678 3 Fujitsu $26,935 4 CSC $16,281 5 Accenture $15,555 6 Capgemini $11,255 7 Hitachi $11,050 8 Ericsson $11,031 9 AWS $10,465 10 NTT Data Corporation $10,425 Source: servicestop100.org - 2010 top 100 IT services businesses by service revenue
Capital Expense (Initial) Web-scale vs. Legacy Cloud $4,000Cost per Sellable $3,216‘VMU’ $3,000(m1.small, 1.7GB $2,000RAM, 1 vCore) $1,000 Web-scale $382 Legacy $0 Source: Cloudscaling conﬁdential ﬁnancial models for IaaS clouds
Operational Expense (Labor) Web-scale (1500:1) vs. Legacy (300:1) Servers : IT Headcount $150M $113M $75M $38M $0MYear 1 Year 2 Year 3 Year 4 Year 5 Web-scale Legacy Source: Cloudscaling estimates of VM:admin based on known IaaS deployments
Legacy 5-yr TCO is 3-5xmore than Web-scale ...
... doesn’t provide 3-5x value for greenﬁeld or mobile apps
Legacy Clouds Reduce TAM AppDevelopers Long Tail of Customers SMB In-country EnterprisesEnterprise In-country Global
Legacy Clouds Reduce TAM App Developers $ Long Tail of Customers SMB In-country Enterprises Enterprise$$$$$In-country Global