14. Thank you.
Additional Resources
IBSG Whitepaper: The Cloud Value Chain Exposed
http://csc0.ly/clpdf
IBSG SP Cisco Web Page with Whitepaper and Cloud Insights
http://csc0.ly/ibsgsp
Cisco Cloud Pages
http://csc0.ly/clo
Editor's Notes
Adoption DynamicsSimple Bus Process: Managed (App) Hosting => SaaS applications (HR, Fin, …) to reduce unit cost and improve mobilityDevelopment:SOA => Public & Private I/PaaS to improve speed, cost of developmentWeb:Web Hosting (incl. e-comm)=> Use Public IaaS / PaaS to drive elastic web presenceNext Gen Workplace: Desktop Mgmt & Comms => Use VDI, UC&C, SaaS Desktop Appsto improve functionality, security & costBig Data & Sim:Enterprise Grid => Public IaaS Platformsto dynamically deploy algorithmsIT Efficiency – CIO: IT Mgmt & Automation => Private Cloud + Classify applications into cloud migration pathFinancial – CFO: IT Outsourcing => Impose on-demand sales paradigms on IT vendors – while retaining control over IT
Approach of Value Chain Not only looking at cloud computing through the lens of the IPS stack (IaaS, PaaS, SaaS)Analyze the wide range of roles cloud providers play in the end-to-end cloud value chain.Activities from left to right: Infrastructure – Facility – Systems Infra SW (OS, Virtualizationà – Apps Dev & Deploy (App Servers) – Application – Presentation / AccessExamples: PaaS Providers: Deliver services to end-users and SaaS providers alike. Can either be customers of IaaS providers or run their own IT infrastructures. IaaS player Offering SaaS enablement, for example, has a different value proposition from a IaaS player that serves enterprises directly. Can use own facility and network or take advantage of colocation centersAdvantages of approach of taking into account this complexity Generate more insights about the role of cloud computing in the IT value chain Allows participants to better understand their unique position when drafting GTM strategies
Approach of Value Chain Not only looking at cloud computing through the lens of the IPS stack (IaaS, PaaS, SaaS)Analyze the wide range of roles cloud providers play in the end-to-end cloud value chain.Activities from left to right: Infrastructure – Facility – Systems Infra SW (OS, Virtualizationà – Apps Dev & Deploy (App Servers) – Application – Presentation / AccessExamples: PaaS Providers: Deliver services to end-users and SaaS providers alike. Can either be customers of IaaS providers or run their own IT infrastructures. IaaS player Offering SaaS enablement, for example, has a different value proposition from a IaaS player that serves enterprises directly. Can use own facility and network or take advantage of colocation centersAdvantages of approach of taking into account this complexity Generate more insights about the role of cloud computing in the IT value chain Allows participants to better understand their unique position when drafting GTM strategies
Incumbents being disrupted by new playersIncumbents: slowed by cannibalization Newcomers: BTE is reduced (cost down through IaaS / PaaS, new channels through brokers)Today SaaS is Disruptive in ~25% of the Software MarketUsual suspects: CRM, HR, Fin Mgmt, CollaborationMobile Access will Accelerate SaaS Adoption in new Application Segments Second Wave of Consumerization: Mobile Apps in Personal Life => Mobile Apps at work Previously, mobile access to applications was limited, mainly by small screens Mobile application access accelerated through introduction of Tablets Key Challenge for CIO: Delivering Apps to any device Adapt SW to mobile platforms (RIM, iOS, Android) and form factors is difficult / time consuming => often done poorly in-house SaaS eases the adaptation of Apps for Mobile: many SaaS apps come with mobile SaaS is being accelerated by the need for mobile access Graph Right: Correlation between % Mobile workers & No SaaS ImplementationsQuote – Mobility key factor in SaaS choiceImportant for NSP: SaaS players / ISV’s are big users of I/PaaS Enabling Mobility (incl. QoS) is key for SaaS providers and users Obviously, one of the next battlefields will be UC&C
Idea of on-demand development and runtime environments not new Developers key decision makers from the beginning. Advantages obvious: automation of activities like scaling, resource allocation, data management, and failover Until now, PaaS has been the “little brother” in the IPS stack Lock-In generally mentioned as main inhibitor Over the past year, a lot of activity to reduce the lock-in concern: Update Azure SDK to simplify Internet information services (IIS) application migration.Leading PaaS platforms can be run across multiple hosted and internal DC’s Fujitsu offers Microsoft Azure across public and private cloudsCloud Foundry which is an open source solution that can run in any DC.Open-PaaS paradigm of RightScale automates development, but transparent to usersOver the past year, trend of more PaaS importance clear: Fast growth of the main PaaS platforms—Windows Azure, Google App Engine, and Force.com. Significant investment activity in PaaS startups. In 2011 aloneCloudBees $10.MStanding Cloud $3MDotCloud $10MAppFog $8MImportant for NSP: Understand developer requirements Look for PaaS partnerships
Battle Rages across Hosted & Internal IaaSSomewhat arbitrary Split: Vertical Axis Web Grade (Credit Card, Opensource Hypervisor / Automation, DAS, Commodity) Enterprise Grade (Contract, vmware, Commercial ITSM, SAN / NAS, High-EndBoth these approaches get implemented across Internal and Hosted IaaS (Horizontal Axis)Examples: Public IaaS: Amazon / GoGrid (automated web hosting functions) Enterprise Grade IaaS: Savvis, Terremark (Virtual) Private Cloud – beyond web hosting Internal Enterprise Grade: Mosanto (built internal cloud on BMC software stack) Internal Commodity Cloud: Bechtel (SaaS paradigm, in own DC)Early Adoption (current state) Hosted: Web Grade (Public IaaS) has taken an early start (at least 4 x bigger) Internal: generally stick to Enterprise Grade
Our expectation is that Infrastructure Services are on a fast growth trajectory. A couple of key dynamics will underpin this growth.Take the Graph back, and look at a couple of dynamics that will shape the market1. Cloud Enable 30+ Web Hosting Companies (Current Analysis) Web Hosting market very fragmented (10k’s no cloud) Increasing maturity of cloud enablers: makes it easy to implement Open Source (openstack) Investments (nimbula, eucalyptus in 2011) Acquisitions (Citrix Cloud.com, DidataOpsource)2. Enterprise Grade Cloud attract increasingly critical workloads Double dynamic: (a) increasingly critical workloads; (b) increasingly quality Public Cloud => Will enterprises pay premium for enterprise grade ? IDC vs. Forrester: very different conclusions IBSG expects enterprise grade to continue strong growth: SLA’s top of CIO mind Technology Investments (Cisco acquired Tidal, Newscale, Linesider = CloudVerse) Telco Acquisitions (VzB Terremark, Centurylink Savvis, DidataOpsource)3. Standardization of IaaS Platforms enables Hybrid Cloud Leading Platforms becoming de-facto standards (AWS, Cloud.Com, Joyent, CIAC, Eucalyptus) Making it easier to manage workloads across internal and hosted Commodity Example: Zynga Cloud (online gaming platform) built on AWS, Cloud. Com, Rightscale Enterprise Grade: driven by on-site managed services (F4B)Important for NSP: Web-Grade & Enterprise Grade are different GTM strategies / segments Both will be important – e.g. Savvis CTO: “Don’t go play with Amazon” Be ready to drive hybrid cloud: manage workloads across internal and public DC’s
With extensive CloudBuild-Out: the role of MTDCs (“colocation”) & WANs is changing. (people look to reduce facility cost and improve application delivery)In this environment, two cloud facility implementation strategies are emerging: (1) the mega exchanges, which provides network choice (2) on-net cloud, with end-to-end value propositionThese approaches often compete for the same business .Mega Exchanges Network exchanges (e.g., Equinix) double as multi-tenant DCs (MTDCs) Obvious benefit of sharing the cost of DC facilities Choice: interconnect cloud providers with any private network providerBring cloud DCs and enterprise DCs (that use these facilities) closer together. According to Equinix / TelX: network effect - bring together eco-systems (e.g., finance, media) Probably: larger enterprises, play cross-border and cross-NSP, will benefit: pricing power On-Net Cloud Bundles and integrates cloud services with Ethernet and IP-VPN networks(Many SPs and enterprises are very receptive, see previous research papers) Guarantees on performance, availability and security with “one-throat-to-choke.”APM and Layer 2 domains across WANs and DCs, easing resource mgmt across DC / Cloud resources across hosted and internal DCs. Probably: network-centric workloads (e.g., UC), and for SMBs / Mid-Market Enterprises that appreciate ease Important for NSP’s: “On-Net Cloud” is a valuable strategy But users will look for real value add vs. network choice
COMMERCIAL ACTIVITIES AND PROFESSIONAL SERVICESEverybody wants to be a brokerShift from classic resale to cloud brokerage Cloud Brokerage is creating Market place: bring buyer + seller of cloud services together together A lot of software enablers coming on the market: listed a couple Generally focus on SaaS Brokerage – with Catalogue, Self Service, Billing, Reporting - But increasingly value add Lowering Barriers to Entry for potential Cloud Brokers => A lot of candidates: “Everybody wants to be a cloud broker” Just this week: Deutsche Telecom launched their platform I also need to add governments (UK has launched an AppStore) Expected to get fast adoption – Scale is key to attract customers and providers. But not sure who has the best position to attract the needed scale.Important for NSP: Store is important, to pull the cloud value proposition together Expect a low margin business (IT distribution typically is)Use commercial brokerage platforms to launch quicklyNeed to differentiate through unique NSP assets: QoS, channels, Telco, Billing
Notes on Slide Creation:This needs a review – the right graph does not contribute to the end-to-end story---------------------Professional Services: An important hurdle to private cloud computingCreating hurdles for Private CloudLarge part of TCO for Private CloudIncreases the cost difference of Private vs. PublicPS TransformationFocus on interconnection of pre-defined modules (no creation of modules)Less invasive interactions/