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Sampleofcloudcomputingmarketworldwide 101022024214 Phpapp02 Sampleofcloudcomputingmarketworldwide 101022024214 Phpapp02 Document Transcript

  • Publisher: Renub ResearchPublished: September, 2010
  • Report DetailsThis report “Cloud Computing – SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A,Investments, and Future Forecast, Worldwide” falls into ten categories.The First Category is Executive Summary. The Second Category describes the basic conceptsof Cloud Computing and Cloud benefits. The Third Category analyzes the Political,Economical, Social, Technological, Environmental and Legal (PESTEL) aspects of WorldwideCloud Computing. The Fourth and Fifth Category emphasise on the worldwide market sizeand forecasted size of Cloud Computing, and its part SaaS, PaaS and IaaS. It also explains themarket size and forecast market size of all Cloud applications, which comes under the SaaS,PaaS and IaaS (see fifth category in table of contents for further details). The Sixth Categorytalks about the Cloud Computing drivers (Investment in Cloud Computing, Mergers &Acquisitions in Cloud Computing, Venture Capital funding in Cloud Computing, and role ofSocial media in Cloud Computing). The Seventh Category of this report explains all thechallenges of the Cloud Computing. The Eighth Category deals in Cloud Computing throughmobile phones, its driving factors and restraining factors. The Ninth Category deals in theinitiatives taken by the different country government in Cloud Computing world over. The lastTenth Category explains the key players of Cloud Computing, which is explained on the basisof Cloud application providers.Market OverviewA major shift in the way companies obtain software and computing capacity is under way asmore companies tap into Web-based applications. Cloud Computing refers to both theapplications delivered as services over the Internet and the hardware and systems software inthe data centers that provide those services. In other words Cloud Computing is accessingcomputer resources provided through networks rather than running software or storing dataon a local computer. A host of providers including Amazon (AMZN), Salesforce.com (CRM), IBM(IBM), Oracle (ORCL), and Microsoft are helping corporate clients use the Internet to tap intoeverything from extra server space to software that helps manage customer relationships.Worldwide Cloud Computing market is continuing to grow at a rapid rate and it is expected tocross US$ 25 Billion by the end of 2013. The different segments of the Cloud Computing
  • market (SaaS, PaaS, IaaS) show different maturities and adoption levels. The varioussegments within the SaaS market will grow at a different rate. The fastest growing segmentsin SasS are Content, Communications and Collaboration (CCC), Customer RelationshipManagement (CRM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).PaaS generates market revenue of approximately 1.5% of the total application developmentmarket in the year 2008. IaaS is increasingly becoming popular with computing resourcesintegrating as web service. The IaaS service providers can support a large number ofcustomers with a single infrastructure.Research Highlights Worldwide Cloud Computing market is growing at a rapid rate and it is expected to cross US$ 25 Billion by the end of 2013 The Software as a Service market is growing at 17.04% and crossed US$ 9 Billion by the end of year 2009 Enterprise Resource Planning (ERP) and Content, Communications and Collaboration (CCC) segment together contributed 58% to the SaaS market in 2009 Customer Relationship Management (CRM) market crossed US$ 2 Billion in 2009 SaaS based Enterprise Resource Planning (ERP) sales has crossed US$ 1 Billion by the end of year 2009 Supply Chain Management (SCM) market in SaaS has crossed US$ 850 Million by 2009 Office Suites market size is expected to increase at a CAGR value of 55.02% for the period spanning 2010 - 2013 It is expected that Platform as a Service (PaaS) market size will reach US$ 400 Million by the year 2013 It is expected that the Infrastructure as a Service (IaaS) market will increase at a CAGR value of 52.53% for the period spanning 2010 - 2013 Types of Investments, Mergers & Acquisitions & Venture Capital Funding in Cloud Computing Sector IBM strives to become a market leader in the Cloud Computing; has invested more than US$ 800 Million in the different segments of the Cloud Computing. Security, Performance and Availability are major challenges in the Cloud Computing© Renub Research Page 3 of 32
  •  It is expected that the Mobile Cloud Computing subscribers will increase at a CAGR value of 69.02% for the period spanning 2010 - 2014 US Federal IT budget devoted to Cloud Computing Spending will reach nearly US$ 1 Billion by 2014 Cloud Computing efforts by governments in United Kingdom (U.K), European Union (EU), Japan, China etc The number of data centre serves growing on average 9% each year during 2002 and is expected to continue till 2020Key Players AnalyzedThis section covers the key facts about the major players currently operating in the GlobalInternet industry.Customer Relationship Management (CRM): Salesfores.com, Oracle.com and RightNowEnterprise Resource Planning (ERP): SAP, NetSuite and WorkdaySupply Chain Management (SCM): Descartes, Ariba and KeteraContent, Communication and Collaboration (CCC): Cisco WebEx, SumTotal and IBMLotusLiveDigital Content Creation (DCC): YouTube and AdobeIntegration as a Service: Pervasive, Cast Iron Systems and BoomiPlatform as a Service: Force.com, Google App Engine and AzureBackup and Storage Service: Amazon Web Service (S3) and RightScaleCompute Services: Amazon Web Services (EC2), GoGrid and SkyTapData SourcesInformation and data in this report has been collected from various printable and non-printable sources like Trade Journals, White papers, Online paid databases, News websites,Government Agencies, Magazines, Newspapers and Trade associations.© Renub Research Page 4 of 32
  • Published By Renub Research A–116B, Sector–27 Noida – 201301 Phone: +91-120-4219-822, 4249-780 (India) +1-678-3020-700 (US) Email: info@renub.com www.renub.com © Cloud Computing – SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A, Investments, and Future Forecast, Worldwide Renub Research, 2010 Edition 1.0 All rights reserved. This publication is protected by copyright. No part of it may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic mechanical, photocopying, recording or otherwise without the prior written permission of the publishers© Renub Research Page 5 of 32
  • Table of Contents1. Executive Summary2. Cloud Computing Overview 2.1 The History of Cloud Computing 2.2 What is Cloud Computing? 2.3 Cloud Service Model 2.3.1 Cloud Software as a Service (SaaS) 2.3.2 Cloud Platform as a Service (PaaS) 2.3.3 Cloud Infrastructure as a Service (IaaS) 2.4 Benefits of the Cloud Computing3. PESTEL – Framework Analysis of Cloud Computing 3.1 Political Analysis of Cloud Computing 3.2 Economical Analysis of Cloud Computing 3.3 Social Analysis of Cloud Computing 3.4 Technological Analysis of Cloud Computing 3.5 Environment Analysis of Cloud Computing 3.6 Legal Issues of Cloud Computing4. Worldwide – Cloud Computing 4.1 Cloud Computing Market 4.2 Cloud Computing Market Forecast5. Cloud Computing Market Segmentation 5.1 Worldwide Software as a Service (SaaS) Market & Future Forecast 5.2 Software as Service Segment 5.2.1 Content, Communications and Collaboration (CCC) & Future Forecast 5.2.2 Customer Relationship Management (CRM) Market & Future Forecast 5.2.3 Enterprise Resource Planning (ERP) Market & Future Forecast 5.2.4 Supply Chain Management (SCM) Market & Future Forecast 5.2.5 Digital Content Creation (DCC) Market & Future Forecast 5.2.6 Office Suites Market & Future Forecast© Renub Research Page 6 of 32
  • 5.3 Worldwide Platform as a Service (PaaS) Market & Future Forecast 5.4 Worldwide Infrastructure as a Service (IaaS) Market & Future Forecast 5.5 Infrastructure as a Service Segments 5.5.1 Online Backup and Storage Market & Future Forecast6. Cloud Computing Drivers 6.1 Global Initiative in Cloud Computing 6.2 Investment in Cloud Computing 6.2.1 IBM Investment in Cloud Computing 6.3 Mergers & Acquisitions in Cloud Computing 6.3.1 IBM Acquisitions 6.3.2 Oracle Acquisitions 6.3.3 Other Mergers & Acquisitions 6.4 Venture Capital Funding in Cloud Computing 6.5 Social Media & Cloud Computing7. Roadblocks in Cloud Computing 7.1 Cloud Security 7.1.1 Abuse & Nefarious use of Cloud Computing & its Impact 7.1.2 Insure Interfaces and its impact on APIs Cloud Computing 7.1.3 Malicious Insider & its Impact on Cloud Computing 7.1.4 Shared Technology Issues & its Impact on Cloud Computing 7.1.5 Data Loss & Leakage & its Impact on Cloud Computing 7.1.6 Account or Service Hijacking & its Impact on Cloud Computing 7.1.7 Unknown Risk Profile & its Impact on Cloud Computing 7.2 Performance of the Cloud Computing 7.3 Availability and Reliability of the Cloud Computing 7.4 Lack of Transparency & Standardization across Large Players 7.4.1 Approach to Overcome the Problem8. Mobile Cloud Computing 8.1 Mobile Cloud Computing Subscribers & Future Forecast 8.2 Mobile Cloud Computing Market Forecast 8.3 Mobile Cloud Computing Application© Renub Research Page 7 of 32
  • 8.3.1 Device Manufacturers & Mobile Cloud Computing 8.3.2 Mobile Application Developers & Cloud Computing 8.4 Drivers of Mobile Cloud Computing 8.4.1 Initiative in Mobile Cloud Computing by Operators 8.4.2 HTML5 & Mobile Cloud Computing 8.4.3 OMA Smartcard Web Server 8.4.4 TokTok Technology 8.5 Challenges of Mobile Cloud Computing 8.5.1 Challenge of Multiple Operating Systems 8.5.2 When will Mobile Cloud Computing Really Take off?9. Cloud Computing in Government 9.1 Cloud Computing and E-Governance 9.1.1 Cloud Computing in U.S. Government 9.2 Cloud Computing in European Governments 9.2.1 Cloud Computing in Asia10. Key Players of Cloud Computing 10.1 Customer Relationship Management (CRM) – (SaaS) 10.1.1 Salesforce.com 10.1.2 Oracle.com 10.1.3 RightNow 10.2 Enterprise Resource Planning (ERP) – (SaaS) 10.2.1 SAP 10.2.2 NetSuite 10.2.3 Workday 10.3 Supply Chain Management (SCM) – (SaaS) 10.3.1 Descartes 10.3.2 Ariba 10.3.3 Ketera 10.4 Content, Communication & Collaboration (CCC) – (SaaS) 10.4.1 Cisco WebEx 10.4.2 SumTotal 10.4.3 IBM LotusLive 10.5 Digital, Content Creation (DCC) – (SaaS) 10.5.1 You Tube Inc.© Renub Research Page 8 of 32
  • 10.5.2 Adobe 10.6 Integration as a Service – (IaaS) 10.6.1 Pervasive 10.6.2 Cast Iron Systems 10.6.3 Boomi 10.7 Platform as a Service – (PaaS) 10.7.1 Force.com 10.7.2 Google App Engine 10.7.3 Azure 10.8 Backup & Storage Service – (IaaS) 10.8.1 Amazon Web Service (S3) 10.8.2 RightScale 10.9 Computer Service – (IaaS) 10.9.1 Amazon Web Services (EC2) 10.9.2 Go Grid 10.9.3 Sky Trap© Renub Research Page 9 of 32
  • List of Figures:Figure 3-1: Worldwide – PEST Framework Analysis of Cloud ComputingFigure 3-2: Worldwide – (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (CO2), 2007Figure 3-3: Worldwide – Market Share of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (Percent), 2007Figure 3-4: Worldwide – Forecast of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide (CO2) Equivalent, 2020Figure 3-5: Worldwide – Forecast of Market Share of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (Percent), 2020Figure 3-6: Worldwide – Electricity Consumption (Billion KWh), 2007Figure 3-7: Worldwide – Electricity Consumption (Billion KWh), 2020Figure 3-8: Worldwide – Emissions in Metric Tonne Carbon Dioxide Equivalent, 2007Figure 3-9: Worldwide – Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage Share (%), 2007Figure 3-10: Worldwide – Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent, 2020Figure 3-11: Worldwide – Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage Share (%), 2020Figure 4-1: Worldwide – Cloud Computing Market (Billion US$) 2008 – 2009Figure 4-2: Worldwide – Forecast for Cloud Computing Market (Billion US$) 2010 – 2013Figure 5-1: Worldwide – Software as a Service (SaaS) Market (Billion US$), 2008 – 2009Figure 5-2: Worldwide – Forecast for Software as a Service (SaaS) Market 2010 – 2013Figure 5-3: Worldwide – Software as a Service (SaaS) Segments (Percent), 2009Figure 5-4: Worldwide – Content, Communications and Collaboration (CCC) Market (Million US$), 2008 – 2009Figure 5-5: Worldwide – Forecast for Content, Communications and Collaboration (CCC) Market (Million US$), 2010 – 2013Figure 5-6: Worldwide – Customer Relationship Management (CRM) Market (Million US$), 2008 – 2009Figure 5-7: Worldwide – Forecast of Customer Relationship Management (CRM) Market (Billion US$), 2010 – 2013Figure 5-8: Worldwide – CRM Vendors Market Share (Percent), 2008Figure 5-9: Worldwide – Enterprise Resource Planning (ERP) Market, Million US$), 2008 – 2009 .... Error! Bookmark not defined.Figure 5-10: Worldwide – Forecast for Enterprise Resource Planning (ERP) Market (Billion US$), 2010 – 2013© Renub Research Page 10 of 32
  • Figure 5-11: Worldwide – Supply Chain Management (SCM) Market (Million US$), 2008 – 2009Figure 5-12: Worldwide – Supply Chain Management (SCM) Market Size Forecast (Billion US$), 2010 – 2013Figure 5-13: Worldwide – Digital Content Creation (DCC) Market (Million US$), 2008 – 2009Figure 5-14: Worldwide – Forecast of Digital Content Creation (DCC) Market, (Million US$), 2010 – 2013Figure 5-15: Worldwide – Office Suites Market (Million US$), 2008 – 2009Figure 5-16: Worldwide – Forecast of Office Suites Market (Million US$), 2010 – 2013Figure 5-17: Worldwide – Platform as a Service (PaaS) Market (Million US$), 2008 – 2009Figure 5-18: World Wide – Forecast for Platform as a Service (PaaS) Market (Million US$), 2010 – 2014Figure 5-19: Worldwide – Infrastructure as a Service (IaaS) Market (Million US$) 2008 - 2009Figure 5-20: Worldwide – Infrastructure as a Service (IaaS) Market Forecast 2010 – 2013Figure 5-21: Worldwide – Backup and Storage Market (Million US$) 2009 – 2010Figure 5-22: Worldwide – Forecast for Backup and Storage Market (Billion US$), 2011 – 2014Figure 6-1: Worldwide – Hype Cycle of Emerging Technologies, 2009Figure 6-2: Worldwide – Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM) Investment in Cloud Computing (Million US$), 2007 - May 2010Figure 6-3: Worldwide – IBM Investment in Cloud Computing (US$ Million): 2006 – Jan 2010Figure 6-4: IBM – Acquisitions (SPSS, FileNet, Cognos) Value (Billion US$), 2006 - 2009Figure 6-5: Oracle – Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems, BEA Systems, People Soft) Value (Billion US$), 2004 - 2008Figure 7-1: Worldwide – Rate the Challenges / Issues in Cloud ComputingFigure 8-1: Worldwide – Mobile Cloud Computing Subscribers (Million) 2008 – 2009Figure 8-2: Worldwide – Mobile Cloud Computing Subscribers Forecast (Million) 2010 – 2014Figure 9-1: USA – Federal IT Spending & Future Forecast (Billion US$), 2007, 2009 & 2014Figure 9-2: Worldwide – Federal Cloud Computing Spending (Million US$), 2008 – 2009Figure 9-3: Worldwide – Forecast for Federal Cloud Computing Spending (Million US$), 2010 – 2014Figure 9-4: Japan – Japanese Government’s Kasumigaseki Cloud© Renub Research Page 11 of 32
  • List of Tables:Table 3-1: Worldwide – Comparatively Analysis of Assets and Expenses in Internal IT, Managed Service & Cloud Services (Number US$), 2009Table 5-1: Worldwide – Total CRM Software Vendor Revenue Estimates (Million US$, Percent Growth), 2007 - 2008Table 6-1: Global – Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com, Heroku, RightScale) (US$ Million), 2007 & 2008Table 6-2: IBM – Acquisitions 2006 – 2009Table 6-3: Oracle – Major Acquisitions 2004 – 2008Table 6-4: Worldwide – Mergers & Acquisitions in Cloud Computing (Million US$), 2002 - 2009Table 6-5: Worldwide – Younger Startup Companies Funding in Cloud Computing (Million US$), 2007 - 2009Table 6-6: Worldwide – 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009Table 8-1: Worldwide – Mobile Cloud Computing Market Forecast (Billion US$), 2015Table 10-1: SalesForce.com – Key HighlightsTable 10-2: SalesForce.com – Revenue & Year on Year Growth (Million US$; Percent), 2008Table 10-3: Oracle – Key HighlightTable 10-4: Oracle – Revenue & Year on Year Growth (Million US$, Percent), 2008Table 10-5: RightNow – Key HighlightTable 10-6: RightNow – Revenue & Year on Year Growth (Million US$, Percent), 2008Table 10-7: SAP – Key HighlightTable 10-8: SAP – Revenue (Million US$), 2008Table 10-9: NetSuite – Key HighlightTable 10-10: NetSuite – Revenue & Year on Year Growth (Million US$), 2008Table 10-11: Workday – Key HighlightTable 10-12: Workday – Revenue & Year on Year Growth (Million US$), 2008Table 10-13: Descartes – Key HighlightTable 10-14: Descartes – Revenue & Year on Year Growth (Million US$), 2008Table 10-15: Ariba – Key HighlightTable 10-16: Ariba – Revenue & Year on Year Growth (Million US$), 2008Table 10-17: Ketera – Key HighlightTable 10-18: Ketera – Revenue (Million US$), 2008Table 10-19: Cisco WebEx – Key HighlightTable 10-20: Cisco WebEx – Revenue (Million US$), 2008Table 10-21: SumTotal – Key HighlightsTable 10-22: SumTotal – Revenue & Year on Year Growth (Million US$), 2008© Renub Research Page 12 of 32
  • Table 10-23: IBM LotusLive – Key HighlightsTable 10-24: YouTube – Key HighlightsTable 10-25: YouTube – Revenue & Year on Year Growth (Million US$), 2008Table 10-26: Adobe – key HighlightTable 10-27: Pervasive – Key HighlightTable 10-28: Pervasive – Revenue & Year on Year Growth (Million US$), 2008Table 10-29: Cast Iron – Key HighlightTable 10-30: Cast Iron – Revenue & Year on Year Growth (Million US$), 2008Table 10-31: Boomi – Key HighlightTable 10-32: Boomi – Revenue & Year on Year Growth (Million US$), 2008Table 10-33: Force.com – Key HighlightTable 10-34: Force.com – Revenue & Year on Year Growth (Million US$), 2008Table 10-35: Google Apps Engine – Key HighlightTable 10-36: Amazon S3 – Key HighlightsTable 10-37: RightScale – Key HighlightTable 10-38: Amazon EC2 – Key HighlightTable 10-39: GoGrid – Key HighlightTable 10-40: SkyTap – Key Highlight© Renub Research Page 13 of 32
  • 3. PESTEL – Framework Analysis of Cloud Computing3.1 Political Analysis of Cloud ComputingThe Cloud becomes subject to complex geopolitical issues, and providers are pressed tosatisfy myriad regulatory environments in order to deliver service to a global market. Thisdates back to the early days of the Internet, when libertarian thinkers felt that “cyberspacewas a distinct place calling for laws and legal institutions of its own”. In order for CloudComputing to continue to evolve into the borderless, unbiased global tool that it could be, itneeds to be separated from politics. Currently, countries like China and the United States aremaking laws that are having a negative ripple effect on the development of the global cloud,and thus a negative effect on the enrichment of the global economy.Take, for example, the United States. Its Patriot Act is having far reaching consequences tocompanies operating under its umbrella. Canada has recently asked that its government willnot use computers in the global network that are operating within United States borders,because the Canadian data stored on those computers could conceivably be negativelyimpacted by the repercussions of the Patriot Act.Despite efforts (such as US-EU Safe Harbor) to harmonize the legal environment, as of 2009,providers such as Amazon Web Services cater to major markets (typically the United Statesand the European Union) by deploying local infrastructure and allowing customers to select“availability zones.” Nonetheless, concerns persist about security and privacy from individualthrough governmental levels e.g., the USA PATRIOT Act, the use of national security letters,and the Electronic Communications Privacy Act’s Stored Communications Act. Politics areaffecting the scalability of the internet, the availability of internet access, the free flow ofinformation and the cloud based global economy on a daily basis.© Renub Research Page 14 of 32
  • 4. Worldwide – Cloud Computing4.1 Cloud Computing MarketWorldwide Cloud Computing services revenue is continuing to grow at a rapid rate; with itexpected to top US$ 11.28 Billion in 2009.The market of Cloud Computing in the previous yearwas worth US$ 9.10 Billion. The lion’s share of the market will be made up of cloud-basedadvertising for the next few years. The different segments of the Cloud Computing market(SaaS, PaaS, IaaS) show different maturities and adoption levels. While SaaS definitelyrepresents the largest portion of the Cloud Computing market (89%), PaaS and IaaS havehigher growth potential. Figure 4-1: Worldwide – Cloud Computing Market (Billion US$) 2008 – 2009 12 11.28 10 9.10 8 Billion US$ 6 4 2 0 2008 2009ESource: Gartner, Renub Research Estimates© Renub Research Page 15 of 32
  • 5. Cloud Computing Market SegmentationCloud Computing market segmentation is based on the Cloud Computing Models in which eachmodule have well growth rate and adoption rate by the companies.5.1 Worldwide Software as a Service (SaaS) Market & Future ForecastThe SaaS market has reached approximately US$ 9.48 Billion at the end of 2009. Previous year(2008) worldwide SaaS market size was US$ 8.1 Billion. The adoption of SaaS continues togrow and evolve within the enterprise application markets as tighter capital budgets in thecurrent economic environment demand leaner alternatives, popularity increases, and interestfor platform as a service and Cloud Computing grows. Figure 5-1: Worldwide – Software as a Service (SaaS) Market (Billion US$), 2008 – 2009 10.00 9.48 9.50 9.00 Billion US$ 8.50 8.10 8.00 7.50 7.00 2008 2009ESource: Gartner May 7, 2009Worldwide Software as a Service (SaaS) Market ForecastThe Worldwide Software as a Service (SaaS) market will show consistent growth through 2013.Worldwide SaaS revenue will total US$ 17.80 Billion for the enterprise application markets. In© Renub Research Page 16 of 32
  • the year 2008 it was only US$ 8.1 Billion this represents the CAGR of 17.05 % for the periodspanning 2010- 2013.The composition of the worldwide SaaS landscape is evolving as vendors continue to extendregionally, increase penetration within existing accounts, Greenfield opportunities, and offermore vertical-specific solutions as part of their service portfolio or through partners. Thepush in conjunction with partners has apparently been a key factor in driving growth. Figure 5-2: Worldwide – Forecast for Software as a Service (SaaS) Market 2010 – 2013 20 17.80 18 16 15.20 14 12.99 Billion US$ 12 11.10 10 8 6 4 2 0 2010 2011 2012 2013Source: Gartner5.2 Software as Service SegmentThe various segments within the SaaS market will grow at a different rate. The fastestgrowing among these are Content, Communications and Collaboration (CCC), CustomerRelationship Management (CRM), Enterprise Resource Planning (ERP) and Supply ChainManagement (SCM).© Renub Research Page 17 of 32
  • Figure 5-3: Worldwide – Software as a Service (SaaS) Segments (Percent), 2009 Content, Communications and Collaboration (CCC) 6% Office Suites 11% 31% Digital Content Creation (DCC Customer Relationship 17% Management (CRM) Enterprise Resource Planning (ERP 6% Supply Chain Management (SCM) 27% 2% Other Application SoftwareSource: Gartner May 7, May 20095.2.1 Content, Communications and Collaboration (CCC) & Future ForecastThe content, communications and collaboration (CCC) market continues to show the widestdisparity of SaaS revenue across market segments, generating US$ 2.5 billion in 2009, up fromUS$ 2.15 billion in 2008.The strongest segments in CCC are Web-Conferencing and E-Learningand to lesser extent e-mail and team collaboration.© Renub Research Page 18 of 32
  • Figure 5-4: Worldwide – Content, Communications and Collaboration (CCC) Market (Million US$), 2008 – 2009 2600 2,505 2500 2400 Million US$ 2300 2200 2,155 2100 2000 1900 2008 2009Source: Gartner May 7, 2009Content, Communications and Collaboration (CCC) Market Future ForecastThe content, communications and collaboration (CCC) markets remains the largestcontributors to the overall SaaS enterprise application markets with revenue exceeding US$2.5 billion in 2009, and it is expected to amount to US$ 5.1 billion by 2013.This represents theCAGR of 19.35% for the period of 2010 to 2013.© Renub Research Page 19 of 32
  • Figure 5-5: Worldwide – Forecast for Content, Communications and Collaboration (CCC) Market (Million US$), 2010 – 2013 6 5.1 5 4.2 4 3.6 Billion USD 3.0 3 2 1 0 2010 2011 2012 2013Source: Gartner© Renub Research Page 20 of 32
  • 6. Cloud Computing Drivers6.2 Investment in Cloud ComputingInvestment in Cloud Computing is one of the key drivers of the Cloud Computing. It shows thefuture of the Cloud Computing is excellent and investors are ready to take the benefits ofthese growing sectors. IBM wants to become a market leader in the Cloud Computing. Forthis, IBM has invested US$ 830 Million in different segments of the Cloud Computing. Fujitsuand Microsoft also plan to invest in the Cloud Computing. Their estimated budget for CloudComputing is US$ 537 Million and US$ 500 Million respectively.For investors in particular, the Cloud Computing phenomenon is an excellent opportunity topump some money in and get some quick money out. The role of the investor is to make surethat the data centers such as the ones powered by Google continue to increase in storagecapacity exponentially over the next few years. As the storage capacity increases, the sameamount of processing power can be used to power the Cloud Computing of several differentclient companies all renting under the same utilities standard. Figure 6-2: Worldwide – Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM) Investment in Cloud Computing (Million US$), 2007 - May 2010 Amazon 12 IBM And Google 30 Intel 200 HP And Microsoft 250 Microsoft 500 Fujitsu 537 IBM 830 0 100 200 300 400 500 600 700 800 900 Million US$© Renub Research Page 21 of 32
  • Source: Cloudcomputingcertification.com, IBM, ChannelWeb.com and Thefreelibrary.com, Fujitsu,Microsoft and Intel Companies Website, New York Times, arstechnica.com and Seattlepi.comThe table no.6-1 summarises some of the Cloud Computing companies and their majorinvestors in the company with total invested value and technologies in which they areinvested. Table 6-1: Global – Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com, Heroku, RightScale) (US$ Million), 2007 & 2008 Company Total Invested Name Major Investors (US$ Million) Technology Sponsors an open-source database that 10gen.com Union Square Ventures 1.5 makes cloud applications easier to build Makes it possible to move business Stuart Mill Venture functions to a cloud while keeping Appistry.com Partners 23 existing system Amazon, Bay Partners, Hummer Winblad Helps businesses use public clouds in Elastra.com Venture Partners 14.6 concert with their internal IT setups. Allows rapid deployment of systems Redpoint Ventures, Y based on Ruby on Rails, a popular way of Heroku Combinator 3 building Web applications Provides essential hand-holding for Benchmark Capital, companies wanting to run applications on RightScale Index Ventures 22.2 a variety of public and private cloudsSource: www.technologyreview.in6.3 Mergers & Acquisitions in Cloud Computing6.3.1 Oracle AcquisitionsOracle introduced several new products and bragged about acquiring dozens of companies inless than four years. Oracle has acquired 41 companies in the past 45 months and considersacquisitions the primary way enterprise software companies can remain competitive andinnovative. Some of the Oracle acquisition is given below.© Renub Research Page 22 of 32
  • Table 6-3: Oracle – Major Acquisitions 2004 – 2008 Company Name Functional Area Acquisitions YearPeopleSoft ERP December-04Siebel Systems CRM September-05Stellent Content management November-06Hyperion Solutions Business intelligence March-07Agile Software Product lifecycle management May-07BEA Systems Middleware January-08Source: The 451 M&A KnowledgeBase Figure 6-5: Oracle – Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems, BEA Systems, People Soft) Value (Billion US$), 2004 - 2008 12 10.46 10 8.5 8 Billion US$ 5.85 6 4 3.3 2 0.44 0.495 0 Stellent Agile Hyperion Siebel BEA Systems PeopleSoft Software Solutions SystemsSource: The 451 M&A KnowledgeBase6.4 Venture Capital Funding in Cloud ComputingSome of the selected venture capital funding has conducted during the past years aresummarized in the table below.© Renub Research Page 23 of 32
  • Table 6-6: Worldwide – 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009 Last Round Total Raised Company Date (Million US$) Round Type (Million US$) Hyperic, Inc. June 05, 2007 6.1 B 9.9 Layered Technologies March 11, 2008 11.0 A 11.0 New Relic, Inc. May 01, 2008 3.5 A 3.5 Nordic Edge June 04, 2007 NA NA NA Nirvanix, Inc. April 10, 2009 5.0 C 23.0 OpSource, Inc. August 17, 2009 4.0 F 60.5 ParaScale June 18, 2008 11.4 A 22.6 PerspecSys December 04, 2007 NA NA NA Ping Identity January 09, 2009 8.0 D 28.5 Rackspace Hosting October 13, 2005 10.0 A 10.0 rPath June 24, 2008 10.0 C 25.5 ServerVault October 30, 2000 9.0 A 9.0 Skytap, Inc. July 30, 2007 6.0 A 6.0 SnapLogic May 22, 2007 2.5 A 2.5 Soasta, Inc. September 08, 2008 6.4 C 10.7 Sonoa Systems October 15, 2008 10.0 C NA Stratavia July 25, 2007 6.3 B 9.5 Symplified, Inc. June 09, 2008 6.0 A 6.0 Terremark (VMware 5% invested ownership) May 29, 2009 20.0 PIPE NA TriCipher, Inc. January 27, 2009 12.0 C 35.1 Vertica February 12, 2007 16.5 B 23.5 Virtual Iron January 28, 2008 20.0 E 64.5 Xeround July 09, 2008 16.0 B 29.5 Zimory March 03, 2008 NA A NA Zetta September 12, 2008 10.7 A 10.7 Zmanda May 22, 2007 8.0 B 13.0Source: Mooreland partners© Renub Research Page 24 of 32
  • 8. Mobile Cloud ComputingMobile Cloud Computing could be defined as the availability of Cloud Computing services in amobile ecosystem. This incorporates many elements including consumer, enterprise,femtocells, transcoding, end to end security, home gateways and mobile broadband enabledservices.8.1 Mobile Cloud Computing Subscribers & Future ForecastThe number of mobile Cloud Computing subscribers worldwide will grow rapidly. In the year2008, Mobile Cloud Computing subscribers were 42.8 Million, which is approximately 1.1% ofall mobile subscribers all over world. It is estimated that by the year 2009, it will reach 72.34Million. Figure 8-1: Worldwide – Mobile Cloud Computing Subscribers (Million) 2008 – 2009 80 72.34 70 60 50 42.80 Million 40 30 20 10 0 2008 2009ESource: ABI Research, Renub Research Estimates© Renub Research Page 25 of 32
  • 10. Key Players of Cloud ComputingA Cloud Computing service provider owns and operates Cloud Computing system to deliverservices (Software, Platform or Infrastructure) to consumers. Currently, we see mix large andsmall players in the market and there is still space for outsiders. Today, while customers arestarting to adopt the technology, regulators are not directly active and the main integratorsinvolved are the same as the traditional software and hardware market. While their currentinfluence is relatively restricted, as the market grows, it will be crucial to follow thedevelopment of these actors in the game. As the main innovations and evolutions of themarket are currently driven by the providers. We will focus on these players and will presentwhat we believe is subset of the most representative players in the Cloud Computing market.Cloud providers can be classified into three different families: SaaS, PaaS and IaaS , with eachfamily divided into sub segments. For each sub segment, we have selected a set ofrepresentative players based on their offers, individual maturity, and the role they playwithin their sub segment. The current land scope is a mix of recent and new niche playerscompeting with more established software and hardware vendors. We compose theseproviders based on the following criteria.  Domain of Activity.  Date of First Cloud Release.  Year on Year growth (2007 - 2008).  Key Differentiators.  A Sample of Key Client.  A Sample of Key Partnership.10.1 Customer Relationship Management (CRM) – (SaaS)A growing proportion of SaaS providers are designing their solutions to address the uniquebusiness requirements of specific industries. The SaaS market landscape is divided intodifferent sub segments.© Renub Research Page 26 of 32
  • The “On Demand” CRM market is one of the most mature segments in the SaaS market. Whilethe market is categorized of multitude of niche players focusing on sub segments of CRM(Marketing, BI, Sales, Servicing), it is largely dominated by salesforce.com, which combinesthe complete CRM suite functionalities is one offering.10.1.1 Salesforce.comSalesforce.com offers customer relationship management (CRM) application services in theSoftware as a Service (SaaS) Industry. In particular, Salesforce.com is involved in offeringCloud Computing services to industries and businesses of all sizes. The company uses CloudComputing to give its customers access to online software, with minor implementation and noon-premise installation or maintenance of software or physical servers.Salesforce.com makes money through subscription and support fees associated with itscustomers using Salesforces applications. These applications give Salesforce.com customersaccess to systems which can systematically record, store, and act upon business data. Theseapplications are used to optimize different aspects of a companys business including sales,marketing, partnerships and customer service. The company’s CRM services primarily focus onsales-force automation, marketing automation, customer service and support automation. Inaddition, it provides training, consulting and implementation services. In 2008, the companywas geographically based in the Americas (72% of its revenue), followed by the Europe (17% ofrevenue).Salesforce.com is heavily invested in Cloud Computing application services and derived 91.4%of its 2008 revenue from subscription and support fees associated with cloud services. CloudComputing has grown rapidly since 2007 and is set to capture 25% of all InformationTechnology growth spending by 2012. However, there is significant uncertainty as companiesand users are often reluctant in using largely undefined cloud services with no centraldatabase.© Renub Research Page 27 of 32
  • Key DifferentiatorsThe company is market leaders in sales functionalities and moving aggressively into newareas. Salesforce.com is a pioneer in all areas of CRM on demand and was the first on themarket. They are currently contributing substantial to growth of this market by constantlydeveloping application that leverages 2.0 technologies. Table 0-1: SalesForce.com – Key Highlights Domain of Activity Date of First Cloud Release Sample of Key Client Sample of Key Partners Marketing Allianz Amazon Web Services Sales Dell CastIorn Customer Service 1999 Kone GoogleSource: Deliottie Table 0-2: SalesForce.com – Revenue & Year on Year Growth (Million US$; Percent), 2008 2008 Revenue (Million US$) Year on Year Growth, Percent 1,077 43.8%Source: Deliottie© Renub Research Page 28 of 32
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