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Adoption Trends for SaaS- Cloud Computing World Forum 2012

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Here is the official blurb for the conference: …

Here is the official blurb for the conference:

• Help your company adjust more readily to new forces and changing situations

• Serve your customers more efficiently and open up communication with them

• Lessen your need for specialized and/or dedicated in-house IT support staff

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  • Hi My name’s Justin PirieI’m the Cloud Strategist here at Mimecast but I’m best known as an Analyst Blogger in the SaaS and Cloud space.
  • Archive
  • Security
  • Continutity
  • And soon Productivity and IB
  • Hi My name’s Justin PirieI’m the Cloud Strategist here at Mimecast but I’m best known as an Analyst Blogger in the SaaS and Cloud space.
  • From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • 2010 Gartner Hype Cycle for emerging technologies
  • http://www.forrester.com/Sizing+The+Cloud/fulltext/-/E-RES58161?objectid=RES58161
  • http://online.wsj.com/article/SB10001424053111903480904576512250915629460.htmlWhy is this happening now?
  • Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.
  • Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.
  • Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.
  • Six decades into the computer revolution, four decades since the invention of the microprocessor, and two decades into the rise of the modern Internet, all of the technology required to transform industries through software finally works and can be widely delivered at global scale.http://2.bp.blogspot.com/-FgIDrspXYKE/Tdx-nNQzX8I/AAAAAAAAAI0/TMz08yfmboM/s1600/google-data-center.jpg
  • Over two billion people now use the broadband Internet, up from perhaps 50 million a decade ago, when I was at Netscape, the company I co-founded. In the next 10 years, I expect at least five billion people worldwide to own smartphones, giving every individual with such a phone instant access to the full power of the Internet, every moment of every day.
  • http://www.businessinsider.com/the-future-of-mobile-deck-2012-3?utm_source=twbutton&utm_medium=social&utm_campaign=sai#-5
  • On the back end, software programming tools and Internet-based services make it easy to launch new global software-powered start-ups in many industries—without the need to invest in new infrastructure and train new employees. In 2000, when my partner Ben Horowitz was CEO of the first cloud computing company, Loudcloud, the cost of a customer running a basic Internet application was approximately $150,000 a month. Running that same application today in Amazon's cloud costs about $1,500 a month.
  • Remember Borders?
  • They Paid amazon to run their ecommerce store in 2001
  • Bankrupt in 2011
  • Blockbuster
  • Netflix
  • Who takes pictures with Film
  • Today's largest direct marketing platform is a software company—Google. Now it's been joined by Groupon, Living Social, Foursquare and others, which are using software to eat the retail marketing industry. Groupon generated over $700 million in revenue in 2010, after being in business for only two years.
  • Today's fastest growing telecom company is Skype, a software company that was just bought by Microsoft for $8.5 billion. CenturyLink, the third largest telecom company in the U.S., with a $20 billion market cap, had 15 million access lines at the end of June 30—declining at an annual rate of about 7%. Excluding the revenue from its Qwest acquisition, CenturyLink's revenue from these legacy services declined by more than 11%. Meanwhile, the two biggest telecom companies, AT&T and Verizon, have survived by transforming themselves into software companies, partnering with Apple and other smartphone makers.
  • LinkedIn is today's fastest growing recruiting company. For the first time ever, on LinkedIn, employees can maintain their own resumes for recruiters to search in real time—giving LinkedIn the opportunity to eat the lucrative $400 billion recruiting industry.
  • Companies in every industry need to assume that a software revolution is coming. This includes even industries that are software-based today. Great incumbent software companies like Oracle and Microsoft are increasingly threatened with irrelevance by new software offerings like Salesforce.com and Android (especially in a world where Google owns a major handset maker).
  • In some industries, particularly those with a heavy real-world component such as oil and gas, the software revolution is primarily an opportunity for incumbents. But in many industries, new software ideas will result in the rise of new Silicon Valley-style start-ups that invade existing industries with impunity. Over the next 10 years, the battles between incumbents and software-powered insurgents will be epic. Joseph Schumpeter, the economist who coined the term "creative destruction," would be proud.
  • http://blog.softwareinsider.org/wp-content/uploads/2011/12/Screen-shot-2011-12-25-at-12.23.41-AM1.png
  • http://online.wsj.com/article/SB10001424053111903480904576512250915629460.htmlWhy is this happening now?
  • But it’s a question I didn’t ask myself seriously enough until recently- sounds academic though doesn’t it?
  • IT’s production value number 1 is Speed.
  • Turning organisational strategy into execution
  • As Fast as possible- to deliver results to the business
  • And to do that IT has to be as responsive as possible
  • Because without speed IT is a bottleneck to operational performance.
  • Take operations
  • increase their capacity and reduce their average cost to again deliver operational performance.
  • IT should equal agility. Yet when we’re purchasing systems, rarely does agility factor heavily enough.
  • Reality?
  • 80% of firms use Cloud- Forrester
  • Yet only 48% of firms allow Cloud
  • 32%: Shadow IT
  • From the Mimecast Cloud Adoption Survey http://www.mimecast.com/events-press/press-releases/article/view/cloud-computing-delivering-on-its-promise-but-doubts-still-hold-back-adoption/462/
  • http://blog.softwareinsider.org/2011/12/26/mondays-musings-10-mega-business-trends-to-watch-for-in-2012/
  • Simon Wardley talks about Jevons Paradox- where technological efficiency causes more, not less of the resource to be used. IT need not fear losing their jobs- they’ll just be used differently.
  • How do we enable productivity while minimising risk of loss
  • Evolve to the Cloud data security paradigm- secure the data, not the device
  • IT’s role is emerging as the data custodian
  • To protect and empower the enterprise
  • If we want the benefits of BYOD we need to move away from control over the device to liberating the data
  • Making data work for you and your people
  • Don’t let your data go to die in an archiveWe used to make email easy, Starting this year, we’ll be making email more useful, productive
  • Add value to the business- don’t be looking over your shoulder
  • http://blog.permabit.com/index.php/2011/02/data-affordability-gap/
  • The key question is what stage of lifecycle is that technology is and what competitive differentiation does it give to the business. That defines what the choices are.
  • This is the Technology lifecycle- as defined by Simon Wardley. Competitive advantage is had where ubiquity and certainty in outcome is least- i.e. on the bottom left. The further up and right you go the less differentiation you get as the services become more commoditised.
  • Take the CRM market for example- the early systems are on the bottom left and move up through Siebel to Salesforce in the top right
  • Because the issues are well known and understood.So there are three types of risks we’re dealing with. Firstly the disruption of existing relationships. That software vendor you’ve worked with for years. How you’ve always done things.Then the transitional risks relating to the shift from a product to a utility service model.Thirdly the risks with outsourcing that activity to a third party. Let’s look at them
  • Because the issues are well known and understood.So there are three types of risks we’re dealing with. Firstly the disruption of existing relationships. That software vendor you’ve worked with for years. How you’ve always done things.Then the transitional risks relating to the shift from a product to a utility service model.Thirdly the risks with outsourcing that activity to a third party. Let’s look at them
  • http://yfrog.com/nt7ixp
  • They turn orders into invoices.What does finance do?
  • But the problem is that the perimeter is gone. You can’t trust your own network anymore.PP – This is true for a lot of organisations. The converse is also true, where everything is very locked down. A lot of companies are now looking at deploying VDI as a way of securing the desktop further
  • Force Can’t Solve All Problems- "The more you tighten your grip… the more star systems will slip through your fingers.” -- Princess Leia
  • We need to enable them to use corporate systems, not because they have to, but because they prefer to.
  • IT’s production value number 1 is Speed.
  • All good security decisions are done with GRC. Evaluate the risk posed by the data.
  • How do I secure access to corporate email and reduce the risk of data loss
  • But remembering Risk is a business decision
  • What do Real customers say?
  • Innovation
  • The cultural shift in that’s happening in IT is palpable- BYOD is driving- visible manifestation and Cloud
  • It’s about losing the shackles
  • Moving from managing infrastructure to manging data and the glue
  • PP – Business processes need to be looked at in conjunction with IT services. There is often a lot of duplication of work, often because of legacy processes and/or systems, and these systems are often not integrated with the business IT service catalogue. Efficiencies, and ultimately cost savings can be made here.
  • Deliberate strategy- not an all or nothing approach. Do so on a project by project approachPP – Certain IT systems are prime candidates for ‘outsourcing’, such as email management, archiving and backups. There is widespread agreement that these are the ‘low hanging fruit’ for IT departments.
  • But with an eye for the spaghetti- you don’t want to end up with an unmanageable messPP – Do we actually know what we have ?
  • http://blog.permabit.com/index.php/2011/02/data-affordability-gap/
  • Move away from a fear of problems arisingFocus on adding business value
  • Increasing productivity
  • We can’t pretend its an easy decision- leap of trustTrusting so many of these things to a cloud vendorSo you can concentrate on the important things
  • A leap of faith?
  • It’s encumbant on us- CSA- ISO27001 leap of faithNon trivial decision
  • Hi My name’s Justin PirieI’m the Cloud Strategist here at Mimecast but I’m best known as an Analyst Blogger in the SaaS and Cloud space.
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