THE FUTURE OF
4TH ANNUAL SURVEY 2014
NORTH BRIDGE FUTURE OF CLOUD COMPUTING SURVEY IN PARTNERSHIP WITH GIGAOM RESEARCH
@No...
2
PROGRAM
GOALS
user vendor
industry-wide
conversation
vendor
agnostic
@futureofcloud
#futureofcloud
3
WHO WE
HEARD FROM
user vendor
Good balance of user and vendors
LARGEST
CLOUD SURVEY EVER
2xas many respondents this
year...
4
THE COLLABORATORS 2014+
5
phase 2
Calling Emerging SaaS Vendors.
Join our SaaS survey program by
applying here:
mjskok.com/SaaS
@futureofcloud
#fu...
6
AGENDA
cloud
landscape
inhibitor
trends investmentsbusiness
challenges
phase 2
benchmark driver
@futureofcloud
#futureof...
7
Mike Schutz, General Manager, Cloud Platform Marketing
“What comes across to me loud and clear from this
survey is that ...
CLOUD IS STRATEGIC
& POWERING INNOVATION
8
@futureofcloud
#futureofcloud
CLOUD FUELS NEW
BUSINESS
49%
using the cloud for
revenue generating
or product development
activities
user vendor
it’s str...
CLOUD IS STRATEGIC
35%cited Innovation or
Competitive Advantage as drivers
10
@futureofcloud
#futureofcloud
CLOUD IS
INTEGRAL
45%
want to or already run
their company in the cloud
11
@futureofcloud
#futureofcloud
12
Mike Riegel, Vice President, Cloud Marketing
@MIKERIEGEL @CISCOCLOUD
“The customers who are enjoying the greatest succe...
APPLICATIONS
ARE BLOWING THE CLOUD
13
@futureofcloud
#futureofcloud
13%
2011
72%
2014
14
SaaS has leapt ahead
@futureofcloud
#futureofcloud
TRANSITIONING
15
THE FIRST CLOUD FRONT:
@futureofcloud
#futureofcloud
TRANSITIONING
16
LEGACY APPLICATIONS:
ecommerce
ERPCRM
@futureofcloud
#futureofcloud
@SALESFORCE @WORKDAY @DEMANDWARE
Across all Business Apps,
(except manufacturing)
65-70%
of respondents will move some or
significant processing to the
Clo...
sales &
marketing
customer
service
business
analytics
52%
44%
44%
BUSINESS FUNCTIONS -
FRONT OFFICE IS IN THE LEAD…
18
@fu...
CONCERNS over expense of
TRANSITIONING to the cloud have grown three-fold:
to 18% today
from 6% in 2011
19
@futureofcloud
...
IT is
grappling…
80% of IT budget
is used to maintain current systems
Source20
@futureofcloud
#futureofcloud
of respondents will move some or significant
processing to the Cloud in the next 12-24
mos.
For IT, across all functions t...
disaster
recovery
web
presence
communications
The IT functions
that have already won their cloud
battle are:
63% 54% 47%
2...
23
David Card, VP Gigaom Research
"This next wave of cloud computing that's revenue
and new business driven is good news f...
The Laggards:
BACK OFFICE
IT apps
19% 17%
34% 31%MOVING
transaction
processing
data center
consolidation
NOT
MOVING
24
@fu...
In overall CIO priorities, Software-as-a-Service
also continues to move up the priority stack as the
model proves itself i...
DRIVERS
26
@futureofcloud
#futureofcloud
DRIVERS - TRENDS
Shifting CapEx to
OpEx is more
important for
companies with
over 5000
employees
cost
scalability
agility
...
FOR LARGE BUSINESSES
Shifting Capex to Opex is
an important Driver
For respondents moving workloads
to the cloud today,
27...
DRIVERS ARE ON
CRUISE CONTROL
cost scalability
agility
29
@futureofcloud
#futureofcloud
LOOK OUT AHEAD.
THE SECOND CLOUD
FRONT IS COMING
30
cost scalability agility
@futureofcloud
#futureofcloud
THE SECOND
CLOUD FRONT
31
@futureofcloud
#futureofcloud
GROWTH IN WEB APIs
SINCE 2005
1
186 299 438 593
865
1263
1546
2026
2418
3422
5018
7182
9011
10302
Jun-05 Mar-06 Oct-06 May...
REIMAGINING
APPLICATIONS
IN THE CLOUD
33
@futureofcloud
#futureofcloud
CLOUD FORMATIONS HAVE
CHANGED SOFTWARE
media &
entertainment
sensor cloud
e-commerce &
payments
mobile
social,
collaborati...
UBER
THE SECOND CLOUD FRONT:
MANY CLOUD SERVICES =>
RE-IMAGINED APP
35
@futureofcloud
#futureofcloud
AMAZING BECAUSE CLOUD
36
From:
@futureofcloud
#futureofcloud
IMPOSSIBLE WITHOUT CLOUD
37
To:
@futureofcloud
#futureofcloud
38
CAD is the basis
for all modern
products, yet…
DESIGNED IN ISOLATION
• 100% on premise
• Limited by the power of the
co...
39
CAD in the cloud –
changes everything
@futureofcloud
#futureofcloud
HR as a Service
40
 Recruiting &
ATS
 Payroll
 Benefits
 Evaluation
& Reviews
 Learning
management
… and many more HR...
SERVICES, APPS &
PROCESSES ON DEMAND:
41
@futureofcloud
#futureofcloud
CASE STUDIES FOR:
cost scalability
agility
42
@futureofcloud
#futureofcloud
43
COMPANY
PROBLEM
SOLVED
CUSTOMER
scalability
Online traffic had reached a saturation
point on the legacy on-premise plat...
With Demandware:
 Quick time-to-market, scalability & reliability
 8 web & mobile sites; 4 languages; 20,000 skus
 16% ...
VENDOR
PROBLEM
SOLVED
CUSTOMER
! ! ! !
45
There was a massive bottleneck in getting a product to
market. With thousands of...
900 new products added to
Walmart in one day…
During Christmas.
46
PROBLEM
SOLVED
SETH DIAMOND
VP ECOMMERCE, DRIVE MEDICAL...
47
PROBLEM
SOLVED
CUSTOMER
cost agility
PRIVATE IaaS CLOUD to rapidly build and
deliver games and media applications
Provi...
Increased
time-to-market, agility, lower TCO
48
PRIVATE IaaS CLOUD to rapidly build and
deliver games and media applicatio...
49
COMPANY
PROBLEM
SOLVED
CUSTOMER
cost agility
A leading medical research institute wanted to move away from
a traditiona...
Moving to Piston OpenStack™ helped the
ORGANIZATION reach their goal by delivering a
faster, more agile IT environment.
“W...
51
COMPANY
PROBLEM
SOLVED
CUSTOMER
scalability
Excellent performance & reliability of The
People’s Voice AWARD Voting appl...
1.5 million votes and 1.3 million
unique site visitors in a two week
period
52
Excellent performance & reliability of The
...
53
INHIBITORS
- PROCEED WITH CAUTION -
inhibitors
@futureofcloud
#futureofcloud
54
complianceprivacysecurity
Top
inhibitors
3
@futureofcloud
#futureofcloud
#1 INHIBITOR
Security, remains the biggest concern,
despite declining slightly last year, it
rose again as an issue in 201...
56
Greg Buchholz, Founder & CEO
“Most businesses consider contracts, partner agreements, sales
presentations and other sim...
57
PRIVACY IS OF
GROWING IMPORTANCE
As an inhibitor, Privacy grew from 25% in 2011 to
31%
@futureofcloud
#futureofcloud
THE PRIVACY
TENSION…
TRUST?
PersonalizationAnonymity
58
privacy
@futureofcloud
#futureofcloud
USER
PROFILE
TRUST IS
FRAGILE
59
@futureofcloud
#futureofcloud
60
THE
RESISTANCE
Over 1/3
see Regulatory /
Compliance as an
inhibitor to moving
to the cloud
compliance
@futureofcloud
#f...
FURTHER INHIBITORS
61
lock-ininteroperability
For an in depth review of these inhibitors see:
http://mjskok.com/resource/b...
62
Interoperability concerns
dropped by 45%, relatively,
over the past two years.
But 29% are still concerned about lock i...
63
Jim Morrisroe, CEO
“Agility, reduction in capital expenditures, and reduced operating
expenditures -- in almost 100% of...
64
NEARLY ¼ PEOPLE
STILL THINK NETWORK
BANDWIDTH IS AN
INHIBITOR
@futureofcloud
#futureofcloud
@D_D_PHILLIPS, @CLOUDHEALTHTECH
65
Dan Phillips, CEO and Co-Founder
"Cost, scalability and agility have made cloud computi...
66
RELIABILTY CONCERNS
DROPPED BY HALF SINCE 2011
reliability
2014:
RELIABILITY
concerns dropped from
30% to 16%
over last...
67
COMPANY
PROBLEM
SOLVED
CUSTOMER
UNC - Chapel Hill needed to get clear visibility into it
infrastructure usage and cost ...
UNC-Chapel Hill was able to establish the basis for
economic interchangeability and transparency for
their IT infrastructu...
69
DATA WANTS
TO BE IN THE CLOUD
@futureofcloud
#futureofcloud
70
VOLUME - expanding
VELOCITY - accelerating
VARIETY - multiplying
@futureofcloud
#futureofcloud
Amazon S3 holds trillions of
objects and regularly peaks at
1.5 million
requests per
second.
VOLUME drives Big Data
71 Sou...
7272 Source
Jul
13
Jan
14
Jun
14
700
600
500
400
300
200
100
VELOCITY drives Big Data
@futureofcloud
#futureofcloud
INSTAN...
90%of the world’s data was created
in the past two years
80%
of it is unstructured
VARIETY drives Big Data
73 Source
@futu...
74
66%
of data is in the
cloud today
Approximately
@futureofcloud
#futureofcloud
75
73%
in two years
Expected to grow to
@futureofcloud
#futureofcloud
Though resistance comes from:
- privacy
- security
-...
76
Ash Ashutosh, Actifio Founder & CEO
“We’ve helped our users migrate a greater share of their
mission critical applicati...
77
DATA PROLIFERATION IN THE CLOUD
Is both an enterprise phenomenon…
and consumer driven…
50% of enterprise customers will...
0
5
10
15
20
25
2012 2013 2014 2015 2016 2017
PERSONAL CLOUD TRAFFIC:
FROM 1.7 EXABYTES IN 2012 TO
20 EXABYTES IN 2017
63%...
CLOUD NATIVE data is BIG
& proliferating
VOLUME - expanding
VELOCITY - accelerating
VARIETY - multiplying
79
@futureofclou...
BURST TO THE CLOUD
DRIVES ARCHITECTURE
80
@futureofcloud
#futureofcloud
What types of cloud computing
technologies is your organization
using?
11%
2011 7%
2011
13%
2011
35%
2012
27%
2012
55%
201...
82
Lou Guercia, CEO
“The rise of SaaS, aside from its numerous advantages, has taught
companies about the dangers of unint...
83
Rob Walters, CTO
“Business managers commonly circumvent lengthy procurement
processes and use the cloud to deploy new a...
APPLICATION
DEVELOPMENT –
GROWING 50% If you’re going to deploy in
the cloud, why wouldn’t
you develop in the cloud?
DevOp...
PaaS APPROACHING THE
TIPPING POINT
7%
2011
41%
2014
50%
85
@futureofcloud
#futureofcloud
DATABASE
AS A SERVICE
ONLY POSSIBLE BECAUSE OF CLOUD…
Expected to nearly
double, from 23%
to 44% among users
user
23%
44%
...
BY 2017,
NEARLY TWO-THIRDS
OF ALL WORKLOADS
WILL BE PROCESSED IN
CLOUD DATA CENTERS
87 Source
@futureofcloud
#futureofclou...
SDN GROWTH
SDN usage will grow among
business users almost three-
fold, from 11% to 30%
11%
88
@futureofcloud
#futureofclo...
SDN GROWTH
SDN usage will grow among
business users almost three-
fold, from 11% to 30%
30%
89
@futureofcloud
#futureofclo...
90
PROBLEM
SOLVED
CUSTOMER
Deployed Cisco UCS running OpenStack to scale with an
aggressive growth strategy. established a...
Saved over $120,000 in data center costs
annually by migrating resources to cloud,
reducing its footprint by 98 percent an...
hybrid cloud
HYBRID CLOUD…
WAS A “HEDGE”
CAN IT BE “BEST OF”?
92
@futureofcloud
#futureofcloud
hybrid cloud
HYBRID CLOUD
USAGE NOW…
42%
use Hybrid Cloud
93
@futureofcloud
#futureofcloud
hybrid cloud
HYBRID CLOUD
AND GROWING…
Growing to
55%
in 2 years
94
@futureofcloud
#futureofcloud
hybrid cloud
95
HYBRID CLOUD
… AT EXPENSE OF PRIVATE CLOUD
Taking a chunk out of Private Clouds…
which will decline by alm...
96
Pete Manca, Chairman, President & CEO
“With the growing number of cloud services available today
through multitudes of ...
user vendor
+23%+44%
user vendor
97
AMONG BOTH VENDORS AND BUSINESS USERS,
HYBRID CLOUD ARCHITECTURE IS THE MOST
COMMON TO...
Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
98
@futureofcloud
#futureofcloud
Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
99
@futureofcloud
#futureofcloud
Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
100
“PaaS squeeze?”
APaaS
IPaaS
@futureofcloud
...
INVESTMENTS
IN CLOUD
101
@futureofcloud
#futureofcloud
102
CLOUD & SaaS M&A and IPOs
Year M&A (B) IPO (MM) SaaS & Cloud as
% of Tech IPOS
2011 $7.5B $925 MM 20%
2012 $12.9 B $1,...
103
DEAL TRENDS
$1.9B
203 deals
$9.2M/deal
2010
$3.2B
323 deals
$9.9M/deal
2011
$4.2B
386 deals
$10.8M/deal
2012
$4.8B
417...
$0
$5
$10
$15
$20
$25
2005 2006 2007 2008 2009 2010 2011 2012
Cumulative Capital Investment (‘000,000s)
Google Amazon Micr...
Economies of
still matter
105
@futureofcloud
#futureofcloud
*V( $$$ + D ) = A
INVESTMENT DIVAs
($$$ high levels of cash on balance sheets + cloud Disruption) *
Innovation * Venture i...
NORTH BRIDGE
INVESTMENTS IN THE CLOUD
$7.9B
VALUE
QUADRUPLED
OVER 2013
7 NEW INVESTMENTS
107
@futureofcloud
#futureofcloud
108
FUTURE & CONCLUSIONS
@futureofcloud
#futureofcloud
109
WE ARE IN THE MIDDLE OF A
SEISMIC SHIFT IN TECHNOLOGY
Transitioning Living in the cloudTransforming
@futureofcloud
#fu...
CLOUD IS STILL EARLY,
AND IN A PHASE OF DISCOVERY
For many customers, we are still really
early, and they are uncovering n...
CLOUD ‘AS A SERVICE’ MARKET
HIGHLIGHTS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2012 2013 2014 2015 2016 ...
112
Jay Lyman, Senior Analyst
"It seems we're seeing further confirmation that more of what
enterprises do with IT and tec...
THE CLOUD
WINDOW IS
STILL OPEN
• Migration underway
• Re-imagined applications ahead
113
@futureofcloud
#futureofcloud
CLOUD SERVICES ARE
CHANGING SOFTWARE
media &
entertainment
sensor cloud
e-commerce &
payments
mobile
social,
collaboration...
AMAZING BECAUSE CLOUD
115
From:
@futureofcloud
#futureofcloud
IMPOSSIBLE WITHOUT CLOUD
116
To:
@futureofcloud
#futureofcloud
THIS SECOND CLOUD FRONT WILL
BE AN ORDER OF MAGNITUDE
BIGGER THAN THE FIRST CLOUD FRONT
117
@futureofcloud
#futureofcloud
EVERYTHING
AS A SERVICE:
118
@futureofcloud
#futureofcloud
phase 2
Calling Emerging SaaS Vendors.
Join our SaaS survey program by
applying here:
mjskok.com/SaaS
119
@futureofcloud
#...
120
THANK YOU+
@futureofcloud
#futureofcloud
ADDITIONAL
CASE STUDIES
121
@futureofcloud
#futureofcloud
By integrating cloud-based software, Top Notch could quickly
deploy new communications services into its core offering. In...
123
CUSTOMER COMPANYBiagi Bros. is a family-owned and operated supply
chain management enterprise. The company
credits its...
Results: Real-time Business Analytics,
Improved Sales & Customer Communications
 Enables corporate accounting, freight an...
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2014 Future of Cloud Computing - 4th Annual Survey Results

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The 2014 Future of Cloud Computing Survey was conducted in partnership with 72 Collaborators. The survey is the most widely endorsed survey of its kind in the industry. To tweet individual slides, please note the banner on the upper right hand corner of each page. Visit the Blog on http://mjskok.com/resource/2014-future-cloud-computing-4th-annual-survey-results and follow us @futureofcloud #futureofcloud to join the conversation.

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2014 Future of Cloud Computing - 4th Annual Survey Results

  1. 1. THE FUTURE OF 4TH ANNUAL SURVEY 2014 NORTH BRIDGE FUTURE OF CLOUD COMPUTING SURVEY IN PARTNERSHIP WITH GIGAOM RESEARCH @North_Bridge @mjskok @futureofcloud #futureofcloud CLOUD COMPUTING http://bit.ly/2014FutureCloud
  2. 2. 2 PROGRAM GOALS user vendor industry-wide conversation vendor agnostic @futureofcloud #futureofcloud
  3. 3. 3 WHO WE HEARD FROM user vendor Good balance of user and vendors LARGEST CLOUD SURVEY EVER 2xas many respondents this year compared to the first survey in 2011 72Largest number collaborators = 1,358 respondents @futureofcloud #futureofcloud
  4. 4. 4 THE COLLABORATORS 2014+
  5. 5. 5 phase 2 Calling Emerging SaaS Vendors. Join our SaaS survey program by applying here: mjskok.com/SaaS @futureofcloud #futureofcloud
  6. 6. 6 AGENDA cloud landscape inhibitor trends investmentsbusiness challenges phase 2 benchmark driver @futureofcloud #futureofcloud
  7. 7. 7 Mike Schutz, General Manager, Cloud Platform Marketing “What comes across to me loud and clear from this survey is that even more businesses are no longer thinking 'why cloud?' but will focus the next 12-24 months figuring out 'how do I execute a long-term cloud strategy?” @engineyard@AZURE
  8. 8. CLOUD IS STRATEGIC & POWERING INNOVATION 8 @futureofcloud #futureofcloud
  9. 9. CLOUD FUELS NEW BUSINESS 49% using the cloud for revenue generating or product development activities user vendor it’s strategic to both vendors + users 9 @futureofcloud #futureofcloud
  10. 10. CLOUD IS STRATEGIC 35%cited Innovation or Competitive Advantage as drivers 10 @futureofcloud #futureofcloud
  11. 11. CLOUD IS INTEGRAL 45% want to or already run their company in the cloud 11 @futureofcloud #futureofcloud
  12. 12. 12 Mike Riegel, Vice President, Cloud Marketing @MIKERIEGEL @CISCOCLOUD “The customers who are enjoying the greatest success with cloud are taking a hybrid approach to IT. Instead of building internally or sourcing externally, these customers view cloud as a continuous set of interconnected and interdependent options. Cisco’s Intercloud strategy is built on connecting the world of many clouds to create new revenue streams, optimize business processes, and simplify operations.”
  13. 13. APPLICATIONS ARE BLOWING THE CLOUD 13 @futureofcloud #futureofcloud
  14. 14. 13% 2011 72% 2014 14 SaaS has leapt ahead @futureofcloud #futureofcloud
  15. 15. TRANSITIONING 15 THE FIRST CLOUD FRONT: @futureofcloud #futureofcloud
  16. 16. TRANSITIONING 16 LEGACY APPLICATIONS: ecommerce ERPCRM @futureofcloud #futureofcloud @SALESFORCE @WORKDAY @DEMANDWARE
  17. 17. Across all Business Apps, (except manufacturing) 65-70% of respondents will move some or significant processing to the Cloud in the next 12-24 mos. business functions TRANSITIONING TO THE CLOUD 17 @futureofcloud #futureofcloud
  18. 18. sales & marketing customer service business analytics 52% 44% 44% BUSINESS FUNCTIONS - FRONT OFFICE IS IN THE LEAD… 18 @futureofcloud #futureofcloud
  19. 19. CONCERNS over expense of TRANSITIONING to the cloud have grown three-fold: to 18% today from 6% in 2011 19 @futureofcloud #futureofcloud
  20. 20. IT is grappling… 80% of IT budget is used to maintain current systems Source20 @futureofcloud #futureofcloud
  21. 21. of respondents will move some or significant processing to the Cloud in the next 12-24 mos. For IT, across all functions tested in the survey But IT is no longer fighting… information technology 21 60-85% @futureofcloud #futureofcloud
  22. 22. disaster recovery web presence communications The IT functions that have already won their cloud battle are: 63% 54% 47% 22 @futureofcloud #futureofcloud
  23. 23. 23 David Card, VP Gigaom Research "This next wave of cloud computing that's revenue and new business driven is good news for long- suffering IT execs. If they can offload tedious but necessary cost-center functions, and refocus resources on cloud-driven new business, they might be able to re-take their seat at the C-table." @DAVIDCARD @GIGAOMRESEARCH
  24. 24. The Laggards: BACK OFFICE IT apps 19% 17% 34% 31%MOVING transaction processing data center consolidation NOT MOVING 24 @futureofcloud #futureofcloud
  25. 25. In overall CIO priorities, Software-as-a-Service also continues to move up the priority stack as the model proves itself in a broader set of use cases… SaaS has climbed steadily* from 5th to 4th and now 3rd *Source 3rd 25 1st Business Intelligence 2nd Security Software /Appliances @futureofcloud #futureofcloud
  26. 26. DRIVERS 26 @futureofcloud #futureofcloud
  27. 27. DRIVERS - TRENDS Shifting CapEx to OpEx is more important for companies with over 5000 employees cost scalability agility CAPEX- OPEX cost scalability agility CAPEX- OPEX mobility 27 @futureofcloud #futureofcloud
  28. 28. FOR LARGE BUSINESSES Shifting Capex to Opex is an important Driver For respondents moving workloads to the cloud today, 27% said they are motivated to do so because they believe using a cloud platform service will help them lower their capital expenditures. 28 @futureofcloud #futureofcloud
  29. 29. DRIVERS ARE ON CRUISE CONTROL cost scalability agility 29 @futureofcloud #futureofcloud
  30. 30. LOOK OUT AHEAD. THE SECOND CLOUD FRONT IS COMING 30 cost scalability agility @futureofcloud #futureofcloud
  31. 31. THE SECOND CLOUD FRONT 31 @futureofcloud #futureofcloud
  32. 32. GROWTH IN WEB APIs SINCE 2005 1 186 299 438 593 865 1263 1546 2026 2418 3422 5018 7182 9011 10302 Jun-05 Mar-06 Oct-06 May-07 Dec-07 Jul-08 Feb-09 Sep-09 Apr-10 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 Jun-14 11,493 Source Programmable Web @futureofcloud #futureofcloud
  33. 33. REIMAGINING APPLICATIONS IN THE CLOUD 33 @futureofcloud #futureofcloud
  34. 34. CLOUD FORMATIONS HAVE CHANGED SOFTWARE media & entertainment sensor cloud e-commerce & payments mobile social, collaboration big data & analytics 34 APIs APIs APIs APIs APIs APIs @futureofcloud #futureofcloud
  35. 35. UBER THE SECOND CLOUD FRONT: MANY CLOUD SERVICES => RE-IMAGINED APP 35 @futureofcloud #futureofcloud
  36. 36. AMAZING BECAUSE CLOUD 36 From: @futureofcloud #futureofcloud
  37. 37. IMPOSSIBLE WITHOUT CLOUD 37 To: @futureofcloud #futureofcloud
  38. 38. 38 CAD is the basis for all modern products, yet… DESIGNED IN ISOLATION • 100% on premise • Limited by the power of the compute device it runs on • Global collaboration is challenging @futureofcloud #futureofcloud
  39. 39. 39 CAD in the cloud – changes everything @futureofcloud #futureofcloud
  40. 40. HR as a Service 40  Recruiting & ATS  Payroll  Benefits  Evaluation & Reviews  Learning management … and many more HR is very rarely a core competency = ripe for “Outservicing” @futureofcloud #futureofcloud @ZENEFITS @TRIBEHR @CORNERSTONEINC @BAMBOOHR @LINKEDIN @THERESUMATOR @BULLHORN
  41. 41. SERVICES, APPS & PROCESSES ON DEMAND: 41 @futureofcloud #futureofcloud
  42. 42. CASE STUDIES FOR: cost scalability agility 42 @futureofcloud #futureofcloud
  43. 43. 43 COMPANY PROBLEM SOLVED CUSTOMER scalability Online traffic had reached a saturation point on the legacy on-premise platform, which was negatively impacting uptime Europe’s largest golf retailer with 101 stores in the UK and Republic of Ireland @DEMANDWARE
  44. 44. With Demandware:  Quick time-to-market, scalability & reliability  8 web & mobile sites; 4 languages; 20,000 skus  16% increase in average order value  45% of traffic comes from smartphones & tablets  15% of total sales now online  437% increase in traffic on Christmas day 44 Online traffic had reached a saturation point on the legacy on-premise platform, which was negatively impacting uptime Europe’s largest golf retailer with 101 stores in the UK and Republic of Ireland COMPANY PROBLEM SOLVED CUSTOMER scalability @DEMANDWARE
  45. 45. VENDOR PROBLEM SOLVED CUSTOMER ! ! ! ! 45 There was a massive bottleneck in getting a product to market. With thousands of products and hundreds of retailers, a product can take months to reach the market. Global manufacturers of durable medical equipment with thousands of products distributed through hundreds of channels. @SALSIFY
  46. 46. 900 new products added to Walmart in one day… During Christmas. 46 PROBLEM SOLVED SETH DIAMOND VP ECOMMERCE, DRIVE MEDICAL There was a massive bottleneck in getting a product to market. With thousands of products and hundreds of retailers, a product can take months to reach the market. Global manufacturers of durable medical equipment with thousands of products distributed through hundreds of channels. VENDORCUSTOMER @SALSIFY
  47. 47. 47 PROBLEM SOLVED CUSTOMER cost agility PRIVATE IaaS CLOUD to rapidly build and deliver games and media applications Provides interactive entertainment across all digital media platforms with popular titles including Club Penguin, Disney Infinity COMPANY @CITRIX
  48. 48. Increased time-to-market, agility, lower TCO 48 PRIVATE IaaS CLOUD to rapidly build and deliver games and media applications PROBLEM SOLVED Provides interactive entertainment across all digital media platforms with popular titles including Club Penguin, Disney Infinity COMPANYCUSTOMER @CITRIX
  49. 49. 49 COMPANY PROBLEM SOLVED CUSTOMER cost agility A leading medical research institute wanted to move away from a traditional, distributed, computational workstation model to an advanced private cloud-based model. Their goal was to centralize and accelerate lab-based computational research by deploying a flexible, dynamic, and easy-to-manage infrastructure that was both cost effective and quick to deploy. Piston Cloud Computing, Inc. is the enterprise OpenStack® company. Piston makes intelligent software for global- scale private clouds built on OpenStack. @PISTON
  50. 50. Moving to Piston OpenStack™ helped the ORGANIZATION reach their goal by delivering a faster, more agile IT environment. “We thought we were doing a pilot, but our researchers decided we were in production, and started doing real science on our Piston OpenStack cloud.” 50 A leading medical research institute wanted to move away from a traditional, distributed, computational workstation model to an advanced private cloud-based model. Their goal was to centralize and accelerate lab-based computational research by deploying a flexible, dynamic, and easy-to-manage infrastructure that was both cost effective and quick to deploy. PROBLEM SOLVED COMPANYCUSTOMER Piston Cloud Computing, Inc. is the enterprise OpenStack® company. Piston makes intelligent software for global- scale private clouds built on OpenStack. @PISTON
  51. 51. 51 COMPANY PROBLEM SOLVED CUSTOMER scalability Excellent performance & reliability of The People’s Voice AWARD Voting application, while handling large, repeated traffic spikes. The leading international award honoring excellence on the Internet. @ENGINEYARD
  52. 52. 1.5 million votes and 1.3 million unique site visitors in a two week period 52 Excellent performance & reliability of The People’s Voice AWARD Voting application, while handling large, repeated traffic spikes. PROBLEM SOLVED The leading international award honoring excellence on the Internet. COMPANYCUSTOMER @ENGINEYARD
  53. 53. 53 INHIBITORS - PROCEED WITH CAUTION - inhibitors @futureofcloud #futureofcloud
  54. 54. 54 complianceprivacysecurity Top inhibitors 3 @futureofcloud #futureofcloud
  55. 55. #1 INHIBITOR Security, remains the biggest concern, despite declining slightly last year, it rose again as an issue in 2014 and was cited by 49% of respondents.55 @futureofcloud #futureofcloud
  56. 56. 56 Greg Buchholz, Founder & CEO “Most businesses consider contracts, partner agreements, sales presentations and other similar content as intellectual property to be protected at all costs. But every day employees unwittingly put that content at risk by storing it in consumer cloud storage services. In fact, a recent report unveiled at the RSA Conference showed that 54% of organizationscite security concerns as their biggest barrier to adopting cloud services.” @GBUCHHOLZ @SPRINGCM
  57. 57. 57 PRIVACY IS OF GROWING IMPORTANCE As an inhibitor, Privacy grew from 25% in 2011 to 31% @futureofcloud #futureofcloud
  58. 58. THE PRIVACY TENSION… TRUST? PersonalizationAnonymity 58 privacy @futureofcloud #futureofcloud
  59. 59. USER PROFILE TRUST IS FRAGILE 59 @futureofcloud #futureofcloud
  60. 60. 60 THE RESISTANCE Over 1/3 see Regulatory / Compliance as an inhibitor to moving to the cloud compliance @futureofcloud #futureofcloud
  61. 61. FURTHER INHIBITORS 61 lock-ininteroperability For an in depth review of these inhibitors see: http://mjskok.com/resource/breaking-down- barriers-to-cloud-adoption @futureofcloud #futureofcloud
  62. 62. 62 Interoperability concerns dropped by 45%, relatively, over the past two years. But 29% are still concerned about lock in lock-in interoperability @futureofcloud #futureofcloud
  63. 63. 63 Jim Morrisroe, CEO “Agility, reduction in capital expenditures, and reduced operating expenditures -- in almost 100% of situations—have been the primary drivers of cloud adoption. We also expect to see cloud adoption increase as a result of the recent explosion in big data analytics, mobile, and next-gen web applications development and by line of business innovation.” @JMORRISROE @PISTON
  64. 64. 64 NEARLY ¼ PEOPLE STILL THINK NETWORK BANDWIDTH IS AN INHIBITOR @futureofcloud #futureofcloud
  65. 65. @D_D_PHILLIPS, @CLOUDHEALTHTECH 65 Dan Phillips, CEO and Co-Founder "Cost, scalability and agility have made cloud computing strategic to business success. But cloud adoption also significantly increases business management complexity. To embrace the full strategic potential of the cloud, executive teams must find new ways to assert the necessary business controls to address reliability, provisioning, security, and regulatory and compliance needs."
  66. 66. 66 RELIABILTY CONCERNS DROPPED BY HALF SINCE 2011 reliability 2014: RELIABILITY concerns dropped from 30% to 16% over last 4 years @futureofcloud #futureofcloud
  67. 67. 67 COMPANY PROBLEM SOLVED CUSTOMER UNC - Chapel Hill needed to get clear visibility into it infrastructure usage and cost efficiency to make informed decisions when acquiring and allocating private or public cloud resources. The University of North Carolina – Chapel Hill is a top-tier public university system. cost agility @6FUSION
  68. 68. UNC-Chapel Hill was able to establish the basis for economic interchangeability and transparency for their IT infrastructure usage (public or private) by using a standardized measure for infrastructure consumption - the 6fusion WAC. 68 UNC - Chapel Hill needed to get clear visibility into it infrastructure usage and cost efficiency to make informed decisions when acquiring and allocating private or public cloud resources. PROBLEM SOLVED The University of North Carolina – Chapel Hill is a top-tier public university system. COMPANYCUSTOMER @6FUSION
  69. 69. 69 DATA WANTS TO BE IN THE CLOUD @futureofcloud #futureofcloud
  70. 70. 70 VOLUME - expanding VELOCITY - accelerating VARIETY - multiplying @futureofcloud #futureofcloud
  71. 71. Amazon S3 holds trillions of objects and regularly peaks at 1.5 million requests per second. VOLUME drives Big Data 71 Source @futureofcloud #futureofcloud
  72. 72. 7272 Source Jul 13 Jan 14 Jun 14 700 600 500 400 300 200 100 VELOCITY drives Big Data @futureofcloud #futureofcloud INSTANCEHOURS
  73. 73. 90%of the world’s data was created in the past two years 80% of it is unstructured VARIETY drives Big Data 73 Source @futureofcloud #futureofcloud
  74. 74. 74 66% of data is in the cloud today Approximately @futureofcloud #futureofcloud
  75. 75. 75 73% in two years Expected to grow to @futureofcloud #futureofcloud Though resistance comes from: - privacy - security - control - regulation - compliance - sovereignty
  76. 76. 76 Ash Ashutosh, Actifio Founder & CEO “We’ve helped our users migrate a greater share of their mission critical application data to the cloud for resiliency purposes for years – ensuring their ability to meet their SLAs and improving their confidence in disaster recovery. Actifio’s customers can also re-use this data in the cloud for more than just an insurance policy including application development, continuity planning, testing, archiving, analytics – the possibilities are virtually endless.”@ashashutosh @actifio
  77. 77. 77 DATA PROLIFERATION IN THE CLOUD Is both an enterprise phenomenon… and consumer driven… 50% of enterprise customers will purchase as much storage in 2014 as they have accumulated in their ENTIRE history Source @futureofcloud #futureofcloud
  78. 78. 0 5 10 15 20 25 2012 2013 2014 2015 2016 2017 PERSONAL CLOUD TRAFFIC: FROM 1.7 EXABYTES IN 2012 TO 20 EXABYTES IN 2017 63% CAGR 5 EXABYTES are equal to all the words spoken by human beings 78 Source @futureofcloud #futureofcloud
  79. 79. CLOUD NATIVE data is BIG & proliferating VOLUME - expanding VELOCITY - accelerating VARIETY - multiplying 79 @futureofcloud #futureofcloud
  80. 80. BURST TO THE CLOUD DRIVES ARCHITECTURE 80 @futureofcloud #futureofcloud
  81. 81. What types of cloud computing technologies is your organization using? 11% 2011 7% 2011 13% 2011 35% 2012 27% 2012 55% 2012 63% 2013 33% 2013 45% 2013 56% 2014 41% 2014 72% 2014 81 IaaS “compute” PaaS “develop” SaaS “software” @futureofcloud #futureofcloud
  82. 82. 82 Lou Guercia, CEO “The rise of SaaS, aside from its numerous advantages, has taught companies about the dangers of unintegrated technology siloes. Leading PaaS providers must address this obstacle by offering baked-in integration capabilities. This will enable businesses not only benefits from best-in-class cloud solutions, but also from the flexibility and agility to connect with existing SaaS and on-premise solutions.” @LOUGUERCIA @SCRIBESOFT
  83. 83. 83 Rob Walters, CTO “Business managers commonly circumvent lengthy procurement processes and use the cloud to deploy new apps or launch time- sensitive campaigns faster. This can cause headaches for IT departments that have to maintain security and regulatory compliance. The most successful companies are finding ways to reap the benefits of the cloud – agility, efficiency and cost savings – while integrating security and governance best practices to ensure they’re driving business growth without undue risk.” @engineyard@ENGINEYARD
  84. 84. APPLICATION DEVELOPMENT – GROWING 50% If you’re going to deploy in the cloud, why wouldn’t you develop in the cloud? DevOps => Continuous:  Innovation  Test  Deployment  Integration Automation & Programmability 84 @futureofcloud #futureofcloud
  85. 85. PaaS APPROACHING THE TIPPING POINT 7% 2011 41% 2014 50% 85 @futureofcloud #futureofcloud
  86. 86. DATABASE AS A SERVICE ONLY POSSIBLE BECAUSE OF CLOUD… Expected to nearly double, from 23% to 44% among users user 23% 44% 86 @futureofcloud #futureofcloud
  87. 87. BY 2017, NEARLY TWO-THIRDS OF ALL WORKLOADS WILL BE PROCESSED IN CLOUD DATA CENTERS 87 Source @futureofcloud #futureofcloud Growth of workloads in cloud data centers is expected to be five times the growth in traditional workloads between 2012 and 2017
  88. 88. SDN GROWTH SDN usage will grow among business users almost three- fold, from 11% to 30% 11% 88 @futureofcloud #futureofcloud
  89. 89. SDN GROWTH SDN usage will grow among business users almost three- fold, from 11% to 30% 30% 89 @futureofcloud #futureofcloud
  90. 90. 90 PROBLEM SOLVED CUSTOMER Deployed Cisco UCS running OpenStack to scale with an aggressive growth strategy. established a flexible cloud infrastructure to streamline operations, reducing data center size and complexity. With more than 13 billion hosted photos and videos from 100 million registered users, Photobucket is one of the world’s largest image and video hosting services. COMPANY @CISCO
  91. 91. Saved over $120,000 in data center costs annually by migrating resources to cloud, reducing its footprint by 98 percent and accelerating server provisioning time from days to minutes. 91 Deployed Cisco UCS running OpenStack to scale with an aggressive growth strategy. established a flexible cloud infrastructure to streamline operations, reducing data center size and complexity. PROBLEM SOLVED With more than 13 billion hosted photos and videos from 100 million registered users, Photobucket is one of the world’s largest image and video hosting services. COMPANYCUSTOMER @CISCO
  92. 92. hybrid cloud HYBRID CLOUD… WAS A “HEDGE” CAN IT BE “BEST OF”? 92 @futureofcloud #futureofcloud
  93. 93. hybrid cloud HYBRID CLOUD USAGE NOW… 42% use Hybrid Cloud 93 @futureofcloud #futureofcloud
  94. 94. hybrid cloud HYBRID CLOUD AND GROWING… Growing to 55% in 2 years 94 @futureofcloud #futureofcloud
  95. 95. hybrid cloud 95 HYBRID CLOUD … AT EXPENSE OF PRIVATE CLOUD Taking a chunk out of Private Clouds… which will decline by almost half from 24% to 13% Growing to 55% in 2 years @futureofcloud #futureofcloud
  96. 96. 96 Pete Manca, Chairman, President & CEO “With the growing number of cloud services available today through multitudes of vendors, we’ve now reached the multi- cloud era where organizations are managing their physical network, private cloud, and a wide range of public and specialized cloud services. As cloud services and users’ consumption models continue to evolve, so too must technologies for effectively managing these environments.” @PETEMANCA @EGENERA
  97. 97. user vendor +23%+44% user vendor 97 AMONG BOTH VENDORS AND BUSINESS USERS, HYBRID CLOUD ARCHITECTURE IS THE MOST COMMON TODAY AND IS EXPECTED TO GROW THE MOST OVER THE NEXT FIVE YEARS. @futureofcloud #futureofcloud
  98. 98. Private Hybrid Public SaaS PaaS IaaS CLOUDS BLOWING IN THE WINDS OF CHANGE 98 @futureofcloud #futureofcloud
  99. 99. Private Hybrid Public SaaS PaaS IaaS CLOUDS BLOWING IN THE WINDS OF CHANGE 99 @futureofcloud #futureofcloud
  100. 100. Private Hybrid Public SaaS PaaS IaaS CLOUDS BLOWING IN THE WINDS OF CHANGE 100 “PaaS squeeze?” APaaS IPaaS @futureofcloud #futureofcloud
  101. 101. INVESTMENTS IN CLOUD 101 @futureofcloud #futureofcloud
  102. 102. 102 CLOUD & SaaS M&A and IPOs Year M&A (B) IPO (MM) SaaS & Cloud as % of Tech IPOS 2011 $7.5B $925 MM 20% 2012 $12.9 B $1,534 MM 77%* 2013 $9.7 B $1,674 MM 45% 2014 $3.0 B $901 MM 29% *Excluding Facebook’s 2012 IPO **The numbers are based on the Top 10 M&A deals and Top 10 IPOs in the Cloud and SaaS space. *** It’s 2014YTD. $38.1B in Cloud & SaaS value creation in last 4 years CAP IQSource @futureofcloud #futureofcloud
  103. 103. 103 DEAL TRENDS $1.9B 203 deals $9.2M/deal 2010 $3.2B 323 deals $9.9M/deal 2011 $4.2B 386 deals $10.8M/deal 2012 $4.8B 417 deals $8.4M/deal 2013 $3.1B 174 deals $18M/deal 2014* *Note: (As of 6/16/2014) larger deal size due to seven $100M+ amounts raised this year from Actifio, Anaplan, Domo, Dropbox, Inside Sales, New Relic, Pure Storage 2014 so far… @futureofcloud #futureofcloud
  104. 104. $0 $5 $10 $15 $20 $25 2005 2006 2007 2008 2009 2010 2011 2012 Cumulative Capital Investment (‘000,000s) Google Amazon Microsoft Rackspace @AHESS247 RE/CODE, ARIK HESSELDAHL HP bets $1 billion to build new cloud services brand IBM to invest $1.2 billion to boost SoftLayer Cloud Services @ALEXBARINKA BLOOMBERG, ALEX BARINKA @AHESS247 RE/CODE, ARIK HESSELDAHL Cisco goes after cloud services with $1 billion investment $20.9 B $1.4 B Source: The Register, as seen in $1 BILLION COST OF ENTRY… @futureofcloud #futureofcloud
  105. 105. Economies of still matter 105 @futureofcloud #futureofcloud
  106. 106. *V( $$$ + D ) = A INVESTMENT DIVAs ($$$ high levels of cash on balance sheets + cloud Disruption) * Innovation * Venture investment = Attractive Acquisitions * I 106 @futureofcloud #futureofcloud
  107. 107. NORTH BRIDGE INVESTMENTS IN THE CLOUD $7.9B VALUE QUADRUPLED OVER 2013 7 NEW INVESTMENTS 107 @futureofcloud #futureofcloud
  108. 108. 108 FUTURE & CONCLUSIONS @futureofcloud #futureofcloud
  109. 109. 109 WE ARE IN THE MIDDLE OF A SEISMIC SHIFT IN TECHNOLOGY Transitioning Living in the cloudTransforming @futureofcloud #futureofcloud
  110. 110. CLOUD IS STILL EARLY, AND IN A PHASE OF DISCOVERY For many customers, we are still really early, and they are uncovering new areas of opportunity 110 @futureofcloud #futureofcloud
  111. 111. CLOUD ‘AS A SERVICE’ MARKET HIGHLIGHTS $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2012 2013 2014 2015 2016 2017 2018 Global Cloud Computing Revenue ($M) IaaS PaaS Infrastructure SaaS 29% CAGR 111 Source @futureofcloud #futureofcloud
  112. 112. 112 Jay Lyman, Senior Analyst "It seems we're seeing further confirmation that more of what enterprises do with IT and technology is moving to the cloud, regardless of their industry or vertical,' said 451 Research Senior Analyst Jay Lyman. 'The growth of hybrid cloud in particular indicates more organizations are seeking to formalize and standardize early, public cloud use that has not fully addressed security, compliance and regulatory, integration and other concerns of these enterprise organizations.” @engineyard@RIPCITYLYMAN @451RESEARCH
  113. 113. THE CLOUD WINDOW IS STILL OPEN • Migration underway • Re-imagined applications ahead 113 @futureofcloud #futureofcloud
  114. 114. CLOUD SERVICES ARE CHANGING SOFTWARE media & entertainment sensor cloud e-commerce & payments mobile social, collaboration big data & analytics 114 APIs APIs APIs APIs APIs APIs @futureofcloud #futureofcloud @mjskok: “the programmable cloud”
  115. 115. AMAZING BECAUSE CLOUD 115 From: @futureofcloud #futureofcloud
  116. 116. IMPOSSIBLE WITHOUT CLOUD 116 To: @futureofcloud #futureofcloud
  117. 117. THIS SECOND CLOUD FRONT WILL BE AN ORDER OF MAGNITUDE BIGGER THAN THE FIRST CLOUD FRONT 117 @futureofcloud #futureofcloud
  118. 118. EVERYTHING AS A SERVICE: 118 @futureofcloud #futureofcloud
  119. 119. phase 2 Calling Emerging SaaS Vendors. Join our SaaS survey program by applying here: mjskok.com/SaaS 119 @futureofcloud #futureofcloud
  120. 120. 120 THANK YOU+ @futureofcloud #futureofcloud
  121. 121. ADDITIONAL CASE STUDIES 121 @futureofcloud #futureofcloud
  122. 122. By integrating cloud-based software, Top Notch could quickly deploy new communications services into its core offering. In less than one month, Top Notch had its first customer signed and using these new services. Top Notch Networking’s hosted solutions have enabled existing customers to be more profitable, and helped its customers to realize the benefits of the cloud. 122 Top Notch Networking wanted to offer hosted VoIP and new communications services to its customers. With CoreDial’s cloud-based platform, Top Notch was able to quickly add the new services, and generate new revenue in less than one month. CoreDial is a leading cloud communications software and services provider. COREDIAL PROBLEM SOLVED TOP NOTCH NETWORKING @COREDIAL
  123. 123. 123 CUSTOMER COMPANYBiagi Bros. is a family-owned and operated supply chain management enterprise. The company credits its success to valuable customers, dedicated managers and a team of expert professionals. Bringing on-premise to the cloud age: Connecting legacy warehousing with modern ERP PROBLEM SOLVED @SCRIBESOFT
  124. 124. Results: Real-time Business Analytics, Improved Sales & Customer Communications  Enables corporate accounting, freight and warehouse systems to share information through two-way data exchange  Provided key personnel with immediate visibility into customer account and order records  Accelerated Process for transforming freight orders into sales orders 124 Bringing on-premise to the cloud age: Connecting legacy warehousing with modern ERP PROBLEM SOLVED COMPANYCUSTOMER Biagi Bros. is a family-owned and operated supply chain management enterprise. The company credits its success to valuable customers, dedicated managers and a team of expert professionals. @SCRIBESOFT

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