This is a lot of change to consider but there is yet another disruptive dimension as well – we mentioned the increase in mobile computing users – among humans, but we also need to recognize that in terms of overall computing and communications volume, there is a major transformation taking place related to the rise of virtualization, smart meters and embedded computing. The numbers you can see on this slide – which are estimates for 2010 are pretty staggering. (read a couple of data points)But it is the one on the bottom right hand corner you really need to consider – 7 billion communicating devices and 5 billion are not computers
We expect many organizations will end up with hybrid environments where they opt to use public services for some functions, where the public nature and global reach of the business make sense, but will rely on internal private cloud architectures for critical business activities.
Definition: Subscription to and usage of Cloud Services that are delivered over a virtual private network, where a private instance of the service is based on a common virtual infrastructure model, and wherein an integrated SLA with business relevant metrics is offered.Building blocks of the evolutionary component of the cloud + disruptive attributes
The hosting business is being transformed by cloud computing, new entrants can offer attractive new services and the market continues to evolve.Cloud impacts the economics of model of hosting in key ways:more difficult capacity management and potentially lower returns on invested capital;challenges in analyzing deal profitability and a shift in how to achieve good margins in managed hosting;uncertain software licensing costs; andincreased unpredictability of revenue.Service providers must determine how to meet the new technical and business challenges, identify the products that can be sold now, market successfully to early adopters, and create a foundation for future products and mainstream adoption.New offerings are emerging to compete with traditional hosting services, eg: utility hosting, virtual data center hosting, cloud hosting, and platform as a service (PaaS).The initial challenges of cloud evolution are centered on installation and provisioning. These are business challenges, not just technical challenges, requiring process and system integration across the service provider organization.The early adopters of cloud infrastructure services are existing hosting customers, Web 2.0 startups, research organizations and Type "A" enterprises. Mainstream adoption will require decreasing the real and perceived risks of moving operations into the cloud.RecommendationsFocus on fully automating sales quotes and provisioning, and driving down quote and installation times. Immediately offer utility hosting. Even if you are not prepared to offer a virtualized platform, you must offer flexible pricing, or you will be at a severe competitive disadvantage.If you do not have virtualization expertise, consider acquiring a small provider of cloud hosting services with strong engineering expertise and tools for managing a shared, virtualized platform.Include complementary network services that enhance remotely hosted services, such as WAN optimization or an application delivery network.
DEFINTIONSAll dollars expressed in AUD for 2010 and Cumulative Annual Growth References 2014IDC SourceWorldwide and Regional Public IT Cloud Services 2010-2014 Forecast IDC #223549 June 2010IDC Source Australia Cloud Services 2010-2014 Forecast Analysis IDC ##AU2577407S July 2010 CAGR%Exchange Rate AUD/USD 0.90IDC definition Secondary Market Segments and SaaS, PaaS, IaastaxomonyAaaS = SaaSCollaborative Applications, Content Applications, Enterprise Resource Management Applications, Supply Chain Management Applications, Operations & Manufacturing Applications, Engineering Applications, Customer Relationship Management Applications, Application Management, Hosted Application ManagementPaaSApplication Development Software, Application Server Middleware, Data Access, Analysis, and Delivery, Information & Data Management, Integration & Process Automation Middleware, Other Application Dev and Deployment, Quality & Life-Cycle Tools, Enterprise PortalsIaaSSystem and Network Management Software, Security Software, Storage Software, System Software, Servers, Storage, Networks, Clients, Hosted Infrastructure Services
Promote the upcoming cloud sessions if relevant as a call to action
Promote the upcoming cloud sessions if relevant as a call to action
HOW BIG IS THE CLOUD? PHILIP GOLDIE, Director, Server & Tools OSCAR TRIMBOLI, Director, Information Worker LINUS LAI, Associate Director, IDC #apc2010 @philgoldie @oscartr
…how big is the opportunity? …where is the opportunity? …how do I capture the opportunity?
The Cloud and You:New Delivery Models Bring New Opportunities Linus Lai IDC Australia
The “New Normal” Q. Prioritize the following business goals as they relate to your organization by allocating 100 points among them. The more points you allocate, the more important the business goal.
Business priorities are quickly returning to pre-recession status
Refocusing on “doing the right thing” again, not the least expensive
Source: IDC Server Virtualization MCS 2007, 2008, 2009; IDC Datacenter and Cloud Survey 2010
Recovery and Transformation Key Market Transformations Telecom – fiber, 3G/4G wireless, converged IP delivery, new distribution models IT – market expansion through disruptive Cloud model, driving re-architecture of vendor models, offerings, identities Ascendance of mobile devices – and apps – challenging primacy of the PC Shift of customer “design point” toward SMB/consumer, emerging markets 8
2010: Intelligent Economy Emerging 1 billion mobile Internet users; 500,000 mobile phone apps 700 million social networkers 630 million laptops; 80 million netbooks 1.2 billion mobile phones; 220 million smart phones 9 Public cloud spending $23 B 50 million servers, half virtual 20 million smart meters in US 7 billion communicating devices in place – 5 billion of these are NOT computers
What is Cloud Computing Today? The Future High Security Cloud Cloud services are consumer and business products, services and solutions delivered and consumed in real-time over the Internet They have the following key attributes
High Availability Cloud Today Multi PurposeClouds Test & Dev Cloud HPC Cloud Low Cost Cloud Comms Cloud 11
Three Basic Layers of the Cloud Workloads Platforms ERP email CRM OLTP Collaborative Decision Support Web App. Dev. Streaming Security Caching Networking File Sys Mgmt Technical Server Storage Network IT Cloud Services Cloud Applications Software as a Service (SaaS) Cloud Platform Platform as a Service (PaaS) Cloud Infrastructure Infrastructure Services (IaaS) 12
Cloud Market Will Win More of Australia ICT Spend 9.4% Proportion of total AUD million Cloud services will not replace traditional delivery models in all situations Though cloud is not a large part of the overall spend, it’s growing much faster This rapid growth is attractive & causing new entrants to emerge, and non-traditional IT vendors to pay attention The age of influence for the product vendors is waning 22.5% CAGR growth to 2014 5.5% * DC spend is categorised by server/storage hardware and software 13
In 12 months, cynicism about cloud computing has nearly disappeared
Clear that cloud computing alternatives will be considered for application upgrade and replacement
Source: IDC Cloud Computing Survey, April 2010 (N=600 in Aust, Korea, India, S’pore, PRC & HK) 14
Various Deployment Models EmergingHosted & Outsourced Outsourced Enterprise Data Center Enterprise Data Center Hosted Infrastructure & Applications SaaS, IaaS & PaaS Hosted and managed by the internal IT department Hosted and managed by an external service provider on a ‘1:many’ basis. Pricing model can be fixed. Public Cloud services delivered over the internet based on a ‘pure’ utility pricing model Hosted and managed by an external service provider on a 1:1 basis 15
Various Deployment Models EmergingThe Virtual Private Cloud Outsourced Enterprise Data Center Enterprise Data Center Virtual Private Cloud Hosted Infrastructure & Applications SaaS, IaaS & PaaS Leveraging the Public Cloud attributes within the network perimeter Hosted and managed by the internal IT department Hosted and managed by an external service provider on a ‘1:many’ basis. Pricing model can be fixed. Public Cloud services delivered over the internet based on a ‘pure’ utility pricing model Hosted and managed by an external service provider on a 1:1 basis 16
Customer Focus on Private Clouds 2011 will be a big year for "private clouds"…: Why?
Continued concerns about cloud security, availability and performance
Ongoing drive to maximize return on existing IT assets
2010 has been a big year for the announcement of "private cloud" offerings from virtually all major IT suppliers
Clouds typically package infrastructure, platforms and applications together so…
Private cloud announcements will drive many strategic partnerships, joint ventures and acquisitions/mergers.
Impact of the CloudThe Channel Viewpoint Do you view cloud computing as: The majority of channels view the cloud as an interesting emerging model – and realize that it is redefining the channel ecosystem and their business model. Importantly, 1 in 2 see it as an opportunity. Source: IDC PartnerConnect Quick Poll (April 2010) 22
The Move Towards ServicesImpact of the Cloud Do you currently/plan to offer cloud computing professional or consulting services? Cloud is a highly consultative engagement with high professional services attach and it promotes channel transition to services oriented business model. Source: IDC PartnerConnect Quick Poll (April 2010) 23
Channel Partners in Asia/Pacific IDC Partner Segmentation Model 24
Understanding if current Architecture (Infrastructure and Applications) is ready for Private/Hybrid Cloud Migrating to a Cloud Architecture Securing Converged IT Department Skill Sets Defining Provisioning Policies when Migrating to Private Cloud Defining Policies for Deploying Workloads in a Hybrid Environment Charging Line of Business for Virtual Assets Private Cloud ImplicationsWhat Activities will End-Users struggle with? 25
Cloud ImplicationsOpportunities Require a New Mix of Skill Sets 26
Potential Go-to-Market ModelBlended Consulting & Integration Services Access to Vendor/Partner Developed Knowledge Base
A number of product (h/w & s/w) vendors are building out consulting capabilities to get their brand in front of the CIO
However, the right skills are in short supply, so partners can and will play an important role
Go-to-market conflict needs to mitigated and customer demand will be critical
Vendor Service Delivery Sub-contracted Partners Full Service Enabled Partners Vendor Account Management Customer 27
Adapt or Vanish:Hosting and Managed Infrastructure Services Both hosting and managed infrastructure services remain viable business models, However, it will be essential to transition delivery models to use cloud computing The profitability of managed infrastructure offerings will rapidly erode as new players enter the market with cloud-based models 28
Channel Partners in Asia/Pacific IDC Partner Segmentation Model 29
Potential Go-to-Market ModelPartnering to Deliver Applications via the Cloud International ISVs (e.g. SAP) Cloud Datacenter Providers, Telcos, Larger SIs with Cloud Datacenter Resources Local ISVs Platform as a Service Players (e.g. Force.com and Azure) Internationally Delivered Software as a Service Locally Delivered Software as a Service
Provision of a Virtualized Infrastructure for Delivery along with Customer Billing Capabilities
Provision of a Plug and Play Cloud Infrastructure along with a Development Platform
Essential Guidance for PartnersQuestions to be Addressed Private Cloud: Have you got the right in-house skills? Are vendors providing incentives & training for partners to develop specific skill-sets for the private cloud? Are you able to leverage any productized professional services through from vendors to address private cloud type of requirements? Do you have reasonable GTM conflict sufficiently addressed from vendors as you build out your own consulting capabilities? Public Cloud: How are you drafting commercial agreements with particular focus on SLAs? How are you communicating your value proposition over going direct to the vendor to your customers? What training and education are you receiving on the public cloud? What about new consulting and integration skill-sets? Are you involved in testing new partner programs to resell public cloud services? 34
If you have additional questions, please contact me at: Linus Lai email@example.com +612 9925 2274 Questions? 35