SaaS Asia Initial Keynote- SaaS and Cloud Computing Market Evolution And Implications
1. Keynote:
SaaS and Cloud Computing – Market Evolution
and Implications
Michael Barnes
VP Software & AP Research
Springboard Research
2. ASIA PACIFIC OPPORTUNITIES
Growth has dipped in
2009
• But APEJ IT spending
outpaces other regions
Key Drivers:
• China & India
• Massive government
stimulus (>US$500B)
Hot Markets:
• Virtualization
• Green IT
• Collaboration & UC
• SaaS & Cloud Computing
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3. CIO CHALLENGES – 2009
Cost Savings
• IT budget cuts are a reality in the current climate
• Capital expenditures are closely scrutinized
• Subscription-based pricing is highly compelling
Process Improvements and Increased
Efficiencies
• Shift from enabling growth to increasing or at least
maintaining margins
• Successful companies are still investing
Short-term Value Delivery
• ROI must come in weeks or months – not years
• Project value must be clearly defined, targeted,
agreed-upon and measurable
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4. SAAS VERSUS CLOUD COMPUTING –
SETTING THE STAGE
A collection of IT-enabled
resources and capabilities that
can be delivered via the
internet as a service
Services Vary
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)
Certain Characteristics are required
• Web-based user access
• Multi-tenancy and shareable resources
• Massive scalability and dynamic resource allocation
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5. SAAS MARKET GROWTH
REMAINS STRONG
$2,500 90% SaaS growth is 3-4x on-
80% premise SW growth
$2,000 70%
60% “The Cloud” provides
$1,500
50%
additional boost to the
40%
SaaS model
$1,000
30%
CRM & Collaboration
20%
$500 lead, but SaaS apps are
10% blossoming
$0 0%
2008 2009 2010 2011 2012
IT Market Size SaaS Growth SW Growth
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6. SAAS USAGE IN ASIA PACIFIC
Source: Springboard Research, 07/2008 Q: What SaaS applications are you currently using?
N: 296 (SaaS adopters)
7. PRIMARY REASON FOR SAAS
ADOPTION
Source: Springboard Research, 07/2008 Q: What was your primary reason for adopting SaaS?
N: 296 (SaaS adopters)
8. WHY CLOUD COMPUTING….
Focus on the forest….
Business is interested in processes and
information
• Not technology, applications or infrastructure
IT is a means to an end, not an end in
itself
• The ‘service’ being consumed is ultimately all
that matters
• Everything else is simply part of the plumbing
From a business standpoint, IT has no
inherent value at all
• All value lies in how effectively IT is applied to
help meet business objectives
….not the trees!!!
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9. …. WHY NOW???
Virtualization
• Driving data centre improvements – lower
costs, improved service
• Focusing attention on ‘economies of scale’ –
the value of shared resources
Open Standards
• Rich Internet Applications and Web 2.0
standards – enhanced usability
• Improved interoperability and applications as
a collection of ‘services’
Internet
• Available, reliable, and affordable broadband
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10. CHALLENGES TO OVERCOME
Data Goverance
Security • Integrity, Recovery, Privacy,
• Regulatory compliance Segregation
• Unauthorized access • Sovereignty Laws and
Regulations
Integration Management
• Local/Remote Integration • Performance management and
scenarios monitoring
• Cloud to Cloud issues • Ensuring Service Level
• Dynamic resources Agreements (SLAs)
11. In Summary….
In Summary….
Prepare for the Economic Recovery Now
• If you don’t, your competitors will
Turn Challenges into Opportunities
• Resource constraints can drive better behaviour
• Budget and staffing limitations will remain
Ignore the Hype
• There are STILL no silver bullets
• Business priorities drive IT decisions
Educate Yourselves
• SaaS and Cloud Computing are not new
• This is a good thing!
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12. Why There’s Never a Better Time for Cloud
Computing
Andrew Knott, VP Marketing Asia Pacific, Salesforce.com
Andy Cocks, Director, Solutions Development Group & Alliances, Datacraft
13. SaaS – A Fork in the Road
Deepak Ramanathan
Head of Marketing Asia Pacific
Google Enterprise
14. Every Cloud has a Silver Lining
Greg Boyle
APAC Product Marketing Manager
Trend Micro
15. Web Commuting
– Creating an Office of the Future
H.R. Shiever
Managing Director Asia Pacific
Citrix Online
16. The Business Case for SaaS
– A User Perspective
Paul Sharp
Vice President, IT & Supply Chain
Adval Tech Omni
17. Adding Cloud to IT
– Preparing to Address the Paradigm Shift
Vinita Ananth
Director APJ
HP Software-as-a-Service
18. The Benefits of SaaS and Doing Business in
the Cloud – Success Stories
Max Chan
Sales Manager, Asia
Sqware Peg
19. Leveraging SaaS for Business Benefit –
Real World Examples
Jason Masciarelli
GM
Astadia
Supply and demand for an alternative to (or more likely an augmentation to) traditional on-premise have reached an inflection pointSaaS is in the ‘right place at the right time’Severe resource constraints are reality for almost all orgs but demand for process improvement, new business capabilities (app functionality) and information access remains as strong as ever
Fretting over the technical details of what is or isn’t cloud computing is anathema to the very concept itself. The whole point of cloud computing is to look past the actual technology (never more than a means to an end) to the actual services (which is what the cloud ‘consumer’ was seeking in the first place. PaaS – development and runtime platform (Force.com, Google App Engine) IaaS – storage, processing capacity, memory (Amazon EC2)
On-Demand approaches have evolved into a compelling business caseMulti-tenancy enables a leveraged approach and ensures that economies of scale are possibleVirtualization can even make single tenancy a potentially viable option (as long as the business mandates timely customer adoption of patches and software updates)ASPs and previous On-Demand approaches did not allow for economies of scale and therefore were not compelling from a business standpointIT infrastructure (software, hardware, networking) will continue to standardize and commoditize over timeInternal ‘ownership’ of this infrastructure is not a competitive imperative or even necessarily an advantage, certainly not for every scenarioThe more well-managed and efficient the infrastructure, the more invisible it should become to business ‘owners’ and users, who only notice the IT infrastructure when something goes wrongThis reality creates a ready market for ‘hosted infrastructure’ once performance and privacy concerns are overcomeCloud infrastructure with better managed and more predictable and more cost-effective SLA’s are a logical choice for SMBs but also for many large organizations, at least for a subset of their application needsGrowth will come at the expense of on-premise IT infrastructure
The approach has certainly been tried before – ASPs, On-Demand, even time-sharing and service bureaus