SaaS Asia Initial Keynote- SaaS and Cloud Computing Market Evolution And Implications


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This presentation was the initial keynote at Springboard Research's SaaS & Cloud Asia event in May 2009.

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  • 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 (, 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
  • SaaS Asia Initial Keynote- SaaS and Cloud Computing Market Evolution And Implications

    1. 1. Keynote: SaaS and Cloud Computing – Market Evolution and Implications Michael Barnes VP Software & AP Research Springboard Research
    2. 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 2
    3. 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 3
    4. 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 4
    5. 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 5
    6. 6. SAAS USAGE IN ASIA PACIFIC Source: Springboard Research, 07/2008 Q: What SaaS applications are you currently using? N: 296 (SaaS adopters)
    7. 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. 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!!! 8
    9. 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 9
    10. 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. 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! 11
    12. 12. Why There’s Never a Better Time for Cloud Computing Andrew Knott, VP Marketing Asia Pacific, Andy Cocks, Director, Solutions Development Group & Alliances, Datacraft
    13. 13. SaaS – A Fork in the Road Deepak Ramanathan Head of Marketing Asia Pacific Google Enterprise
    14. 14. Every Cloud has a Silver Lining Greg Boyle APAC Product Marketing Manager Trend Micro
    15. 15. Web Commuting – Creating an Office of the Future H.R. Shiever Managing Director Asia Pacific Citrix Online
    16. 16. The Business Case for SaaS – A User Perspective Paul Sharp Vice President, IT & Supply Chain Adval Tech Omni
    17. 17. Adding Cloud to IT – Preparing to Address the Paradigm Shift Vinita Ananth Director APJ HP Software-as-a-Service
    18. 18. The Benefits of SaaS and Doing Business in the Cloud – Success Stories Max Chan Sales Manager, Asia Sqware Peg
    19. 19. Leveraging SaaS for Business Benefit – Real World Examples Jason Masciarelli GM Astadia
    20. 20. Brass Tacks: SaaS Realities & Possibilities Dane Anderson CEO & EVP Research Springboard Research