Taking On the Cloud
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Taking On the Cloud

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by Steve Schmidt, VP Product Management, Flexera Software Presented at SoftSummit 2010

by Steve Schmidt, VP Product Management, Flexera Software Presented at SoftSummit 2010

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Taking On the Cloud Taking On the Cloud Presentation Transcript

  • Taking on the Cloud!T ki th Cl d!Steve SchmidtVP Product ManagementFlexera Software
  • Agenda The Cloud: Organizing and Seeing Patterns SaaS Strategies and Solutions Virtual Appliance St t i and S l ti Vi t l A li Strategies d Solutions What’s Next?
  • Cloud Computing Market Segments Cloud Applications Software as a Service (SaaS) ERP, CRM, Email, Collaborative Apps Cloud Platform Platform as a Service (PaaS) App Development Development, Web Infrastructure, Data Warehousing Cloud Infrastructure Infrastructure as a Service (IaaS) Servers, OS, Networking, N t ki StorageSources: Flexera Software analysis, based on IDC and Gartner
  • Cloud Computing Market Segments Cloud Applications Software as a Service (SaaS) Packaged Software High-Tech ERP, CRM, Virtual Appliances Manufacturers Pure-play SaaS Software + Services Email, for Packaged SW Virtual Appliances Collaborative Apps Cloud Platform Platform as a Service (PaaS) App Development APIs App Development Development, Web Infrastructure, Data Warehousing Cloud Infrastructure Infrastructure as a Service (IaaS) Servers, OS, Networking, N t ki StorageSources: Flexera Software analysis, based on IDC and GartnerNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Cloud Market Size Forecasts IncreasingWorldwide SaaS Revenue, 2005–2014: Comparison ofDecember 2008 and June 2010 Forecasts Worldwide SaaS Revenue Growth, 2006–2014: Comparison of December 2008 and June 2010 ForecastsSource: IDC, May 2010 Source: IDC, May 2010 5
  • SaaS Application Segment the Largest 2014 Share WW SaaS will grow from 5.7% of 52% apps revenue in 2009 to 14.5% in 2014 evenue ($M) SaaS spending (CAGR= 25.4%) will grow nearly 5x faster than “all software software” spending 20%Re 2009-2014 28% 2009-2014 CAGR: 25.4% Applications Source: IDC, Worldwide SaaS Forecast, May 2010 Application Develop/Deploy System Infrastructure
  • Cloud Computing Expected to Drive Revenue Growth and Lower CostsSource: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010
  • Multiple Monetization Strategies Exist for Softwarein the Cloud 1 2 3 4 Business as usual Bursts of Use Pay by Hour Pay to AccelerateSource: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010
  • Packaged Applications Are Being Deployed in Highly Mobile Virtual ServersSource: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010 More software producers think virtualization usage grew…very few are in doubt anymore p g g y y
  • Virtualization Now Expected to Grow RevenueSource: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010More software producers think virtualization offers up to 50% revenue growth…veryfew think it is more of a revenue risk
  • Virtual Appliance Market Growing Rapidly forSoftware Vendors and High Tech ManufacturersA virtual appliance is a software stack packaged as a virtual machineimage. The software stack can replace a physical device. • ~ 1400 VMware appliances, of which ~ 500 are telco/networking devices • Device categories in VMware marketplace: • Networking • Security • St Storage • Representative companiesNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Over 60% of High-Tech Manufacturers ConsiderVirtual Appliances a Priority Which of the following are high priority business problems for your COMPANY?Source: Flexera Software High-Tech Market Survey, 2010
  • SaaS Strategies andSolutions 13
  • SaaS Business Challenges and Strategies CHALLENGES STRATEGIESMany pure-play SaaS companies have Package and price offerings to match“one-size fits all” packaging resulting in what customers want to buy WITHOUTmissed revenues. SaaS business models involving e g ee g o g engineeringneed to change on a dime to address anevolving market.Example: NetSuite has only two options:NetSuite and NetSuite CRM+SaaS providers are losing 40-60% of Protect service against revenue leakagepotential revenues to credential sharing t ti l t d ti l h i to t credential sharing d ti l h iabuseSaaS providers have a “one size fits all” License (e.g., annual, concurrent use,approach to li h licensing, leaving potential i l i i l trials, etc.) service according to h i l ) i di howcustomers and revenues out customers want to pay for access Example: ESRI offers a day-pass p yp for some productsNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Flexera Software Solutions for SaaS Providers STRATEGIES SOLUTIONSPackage and price FlexNet Operationsofferings to match what • Define service bundles based on featurescustomers want to buy • Create entitlements for service bundlesWITHOUT involving i l i • PProvision S S users b i i SaaS based on entitlements d titl tengineering • Automate subscription management, upsells and cross-sells • Customer insights on products and versions
  • Strategy 1: Package Offerings to Match WhatComponents Customers Want to Buy“One Size Fits All” Packaging = Missed “Best Fit” Packaging = Unlockcustomers and revenues customers and revenues Lite… Standard… St d d Premium…
  • Flexera Software Solutions for SaaS Providers STRATEGIES SOLUTIONSPackage and price FlexNet Operationsofferings to match what • Define service bundles based on featurescustomers want to buy • Create entitlements for service bundlesWITHOUT involving i l i • PProvision S S users b i i SaaS based on entitlements d titl tengineering • Automate subscription management, upsells and cross-sells • Customer insights on products and versionsProtect service against FlexNet Operationsrevenue leakage to • Create entitlements for service bundlescredential sharing • Define license usage policies (e.g., 1 user on 5 machines) • Track and report usage against entitlements FlexNet Publisher • Augment user credentials with machine identities to formulate license usage policies
  • Strategy 2: Prevent Revenue Leakage Due to Credential Sharing AbuseiTunes like model where mycredentials work on 1, 2, 5, etc.machines, but I have to talk to theISV if I exceed the SaaSbusiness rules in place Services Machine Identity + Credentials Sue Jan Tom
  • Flexera Software Solutions for SaaS Providers STRATEGIES SOLUTIONSPackage and price FlexNet Operationsofferings to match what • Define service bundles based on featurescustomers want to buy • Create entitlements for service bundlesWITHOUT involving i l i • PProvision S S users b i i SaaS based on entitlements d titl tengineering • Automate subscription management, upsells and cross-sells • Customer insights on products and versionsProtect service against FlexNet Operationsrevenue leakage to • Create entitlements for service bundlescredential sharing • Define license usage policies (e.g., 1 user on 5 machines) • Track and report usage against entitlements FlexNet Publisher • Augment user credentials with machine identities to formulate license usage policiesLicense (e g annual (e.g., annual, FlexNet Operationsconcurrent use, trials, etc.) • Define license models (e.g., concurrent, annual/expiring, trials)service according to how • Create entitlements based on license modelscustomers want to pay for • Enforce license modelsaccess • Automate trial-to-paid conversion and subscription management p p g FlexNet Publisher – optional • Enforce license models such as concurrent use models
  • Strategy 3: License Offerings to Match How Customers Want to Pay“One Size Fits All” Licensing = “Best Fit” Licensing = UnlockMissed customers and revenues customers and revenues Standard… Free with paid conversion Day Pass Annual subscription Concurrent use se
  • Solution for Strategies 1 and 3: Flexible Packagingand Licensing Login g • User ID/Password FlexNet User Operations 1 SaaS SaaS Application Provider 2 3 Check user’s entitlement • Service bundle • Login allowed/denied • Entitlement valid dates based on validity of entitlement • Application configured to service bundle purchased
  • Solution for Strategy 2: Preventing CredentialSharing Abuse Login • UUser ID/P ID/Passwordd • Machine identity FlexNet User Operations 1 SaaS SaaS Application Provider 2 FlexNet 3 Check user’s entitlement Publisher • Login allowed/denied • Service bundle • Entitlement valid dates based on policies • License policy (e.g., login • Application configured to within allowed number of service bundle purchased machines)
  • Virtual ApplianceStrategies andSolutions 23
  • Value Proposition 1: Allow Service Providers to GrowCapacity On-demand without Deploying Hardware “Easy Procurement and Elastic Response - Instead of overpaying for capacity they don’t need, NetScaler customers can now buy 90-day Burst Pack licenses and apply them when sudden traffic surges threaten application performance and availability. Compelling Economics and Better Capacity Planning - Burst Pack licenses make it economical to instantly increase datacenter capacity, giving datacenter managers much needed time to p g plan for permanent capacity upgrades. Broad NetScaler Support - Burst Pack licenses can be applied to both NetScaler VPX virtual appliances and NetScaler MPX hardwareNetScaler virtual appliances (VPX 10, appliances.”200, 1000) – grow capacity from 10Mbps to 1000 Mbps with a license p pupgrade vs device upgradeNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Value Proposition 2: Consolidate Hardware Functions toReduce Space, Energy and Admin Costs SpaceValue Proposition 3: Upsell/cross-sell Capabilities Over p p pTime without Deploying Hardware Multi function Multi-function device: Riverbed Steelhead • R l Replace up to 5 physical servers with h i l ih virtual machines on RSP • Runs on most Steelhead appliance models • Run almost any VMware virtual machineNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • High-Tech Mfr Business Challenges and Strategies CHALLENGES STRATEGIESDevice manufacturers face eroding Push hardware costs to end customersmargins on hardware products by making device capabilities available as pure software Enable up- and cross-sell revenues by delivering capabilities as software add-ons g p or on a trial basisService providers need to provision capacity Allow service providers to dial up/dialto meet peak demand which leads to down capacity on-demand withoutunused capacity during off-peak periods deploying hardware, eliminating unused hardwareService providers and branch office Consolidate many capabilities into onelocations need to reduce power deviceconsumption, space and administrativecosts
  • Flexera Software Solution for Virtual Appliances STRATEGIES SOLUTIONPush hardware costs to end FlexNet Embeddedcustomers by making device capabilities • IP protection of virtual appliances p ppavailable as pure software • Automate capacity and capability provisioning and de-provisioningEnable upsell/cross-sell revenues by • Enable field-upgrade of capacity anddelivering capabilities as software add- add capabilities f virtual appliances biliti for i t l lions or on a trial basis • Report deployment of virtual appliancesAllow service providers to dial up/dial provisioned in the Cloud to FlexNet Operations pdown capacity on-demand without on demand FlexNet Operationsdeploying hardware, eliminating unusedhardware • Automate capacity and capability provisioning and de-provisioning • Automate cross-sells and upsells ofConsolidate many capabilities into one capabilitiesdevice • Compare capacity and capabilities owned versus deployed at customer
  • Use Cases and Deployment Models Public Cloud (Online) Private Cloud (Offline) 1) Service provider / 2) Service provider / customer upgrades capacity customer provisions a pool Capacity p y to handle a temporary of capacity to be shared by demand spike in a public many virtual appliances into cloud a private, offline cloudCapabilities 3) Customer in a branch office location adds additional C t i b h ffi l ti dd dditi l virtual appliances into an existing machine to enhance its functionality
  • Solution: Service Provider Provisioning a Pool of Capacity in a Public Cloud Manufacturer1 Order FlexNet 10,000 Mbps of load balancing capacity Operations Synchronize License Server records Activate capacity • Appliance 1: 2,000 =10,000 Mbps activations of • Appliance 2: 3,000 devices in the • Unused Capacity: 5,000 3 6 cloud Provision 2 License Server 1: Active License Server Capacity = 10,000 Mbps appliances VM VM Service Provider / Customer Virtualization Technology Activate /deactivate 5 VM 5 capacity for APP VM VM appliances OS APP APP Provision Virtual FlexNet 4 Appliances OS OS Embedded Virtual Appliance 1: Virtual Appliance 2: Capacity = 2,000 Mbps Capacity = 3,000 Mbps
  • Solution: Service Provider Provisioning a Pool of Capacity in a Private Offline Cloud Private, Manufacturer1 Order FlexNet 10,000 Mbps of load balancing capacity Operations License Server records Activate capacity • Appliance 1: 2,000 =10,000 Mbps • Appliance 2: 3,000 • Unused Capacity: 5,000 3 Provision 2 License Server 1: Active License Server Capacity = 10,000 Mbps appliances VM VM Service Provider / Customer Virtualization Technology Activate /deactivate 5 VM 5 capacity for APP VM VM appliances OS APP APP Provision Virtual FlexNet 4 Appliances OS OS Embedded Virtual Appliance 1: Virtual Appliance 2: Capacity = 2,000 Mbps Capacity = 3,000 Mbps
  • Solution: Augmenting Capabilities by Provisioning a Virtual Appliance into an Existing Machine Appliance Manufacturer Order FlexNet 1 Appliance Operations 3 Activate Appliance VM VM APP APP VM APP FlexNet End OS Embedded OS OS Customer Virtualization Technology Provision Branch Office Physical Device y 2 Add-On Add O ApplianceNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Cloud Computing – What’s Next Cloud Applications Software as a Service (SaaS) Packaged Software High-Tech ERP, CRM, Virtual Appliances Manufacturers Pure-play SaaS Software + Services Email, for Packaged SW Virtual Appliances Collaborative Apps Cloud Platform Platform as a Service (PaaS) App Development APIs App Development Development, Web Infrastructure, Data Warehousing Cloud Infrastructure Infrastructure as a Service (IaaS) Servers, OS, Networking, N t ki StorageSources: Flexera Software analysis, based on IDC and GartnerNote: The companies mentioned illustrate the trend but may not be Flexera Software customers
  • Learn more:See the roadmap presentationsTuesday afternoon on:• Fl N t O FlexNet Operations ti• FlexNet Embedded• Fle Net P blisher FlexNet Publisher