This document summarizes trends in cloud and container ecosystems observed by Adrian Cockcroft in November 2015. It notes rapid adoption and evolution of container technologies like Docker. Standards bodies are emerging around container orchestration. Cloud ecosystems like AWS, Azure, and GCE continue expanding globally while new players like DigitalOcean see strong growth. SaaS investment is growing fastest in areas like application performance management, ERP/accounting, and sales/marketing tools. Serverless architectures and "teraservices" using huge amounts of memory are trends to watch in 2016.

1. State of the Cloud and
Container Ecosystems
Adrian Cockcroft @adrianco
Technology Fellow - Battery Ventures
November 2015
See www.battery.com for a list of portfolio investments

2. Previous Cloud Trend Updates
GigaOM Structure May 2014
D&B Cloud Innovation July 2015
1
Trends from 2014: Noted as appropriate

3. Cloud Adoption
@adrianco’s job at the
intersection of cloud
and Enterprise IT,
looking for disruption
and opportunities.
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
2014
2009
Example: Docker
wasn’t on anyone’s
roadmap for 2014. It
was on everyone’s
roadmap for 2015.

4. 1
Container
Ecosystem
2
Cloud
Ecosystem
3
Enterprise
SaaS

5. Container Ecosystem
Rapid adoption
Rapid evolution
New Standards
Lots of Players
1

6. Adoption
Build - Deploy - Run
Low friction
Portability
Agility

7. Different Use Case for Docker
Most often,
containers live
for zero or one
minute…
Test workloads?

8. Evolution
Pluggable Networking
Pluggable Storage
Pluggable Orchestration
Security enhancements

9. Ecosystem Standards Bodies
OCP - runC subset of Docker
Portable runtime format
CNCF - superset of Kubernetes
Includes Mesos and more
CF - vendor coordination (IBM, HP)
Roadmap management
runC commitment

10. Docker’s own view of their ecosystem
Lots of startup activity in Docker management/security
More monitoring and logging tools adding Docker support

11. Docker in Production
2014 - DIY frameworks
2015 - Hardening and best practices
2016 - Mature production tooling

12. Cloud Ecosystem Matures2
Staying Power
Support
Scale
Location
Trends from 2014: Even more emphasis on location

13. In 2014 Enterprises finally embraced
public cloud and in 2015 serious
deployments are under way.
Oct 2014 Oct 2015

14. Safe Bets
Trends from 2014: AWS share vs. Azure still growing
AWS growing 80% year on year, Enterprise share growing fast
Azure providing strong Linux and Open Source support

15. The Global Land-Grab
Azure
AWS
GCE
20 Regions
11 Regions
4 Regions
http://aws.amazon.com/about-aws/global-infrastructure/
http://azure.microsoft.com/en-us/regions/
https://cloud.google.com/compute/docs/zones#available
http://www.google.com/about/datacenters/inside/locations/index.html
India, UK, Korea
coming in 2016
Trends from 2014: AWS and Azure go after big markets
Google focused on low cost sites

16. Questions we keep
hearing about cloud
Do you need $Billions
to compete in IaaS?

17. Simplicity for Developers
May 2013 10,000
May 2014 190,000
May 2015 500,000 http://trends.netcraft.com/www.digitalocean.com
Web Facing Computers
Ranked 2nd to AWS since May 2015
Trends from 2014: growth rate slowing

18. Questions we keep
hearing about cloud
Who is challenging
VMware for in-house
cloud automation?

19. Battle for the Private Cloud
Stability
Functionality
Total Cost of
Ownership

20. Vendors co-opt and
fragment OpenStack

21. SaaS3
Everything
Enterprise
Everywhere

22. Where is the fastest
growth in SaaS?
Questions we keep
hearing about cloud

23. Top SaaS Investment Areas
Many thanks to Kartik Sundar of
quid.com for pulling this data
SaaS Investments
#1 Application
Performance
and Lifecycle
Management
#2 Accounting,
BPM & ERP
#3 Sales and
Marketing

24. Top SaaS Investment Areas
Many thanks to Kartik Sundar of
quid.com for pulling this data
Analytics Platforms
“Big $ for Big Data”
was big in 2013

25. Top SaaS Investment Areas
Many thanks to Kartik Sundar of
quid.com for pulling this data
Talent Management
addressing the skills
shortage?

26. Top SaaS Investment Areas
Many thanks to Kartik Sundar of
quid.com for pulling this data
Healthcare IT
Investing in
Affordable Care?

27. What Next?

28. Some enterprise vendor
responses to cloud and container
ecosystem growth…

29. The ship is sinking, let’s re-brand as a submarine!

30. The ship is sinking, let’s merge with a submarine!

31. Look! we cut our ship in two really quickly!

32. Trends to watch for 2016:
Serverless Architectures - AWS Lambda
Teraservices - using terabytes of memory

33. Thanks!
Adrian Cockcroft @adrianco
http://slideshare.com/adriancockcroft
http://github.com/adrianco
Technology Fellow - Battery Ventures
November 2015
See www.battery.com for a list of portfolio investments

34. Security
Visit http://www.battery.com/our-companies/ for a full list of all portfolio companies in which all Battery Funds have invested.
Palo Alto Networks
Enterprise IT
Operations &
Management
Big DataCompute
Networking
Storage