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Cloud Computing and Startups


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What does cloud computing mean for startups and small businesses?

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Cloud Computing and Startups

  1. 1. What’s the big deal about cloud computing? © Dan Reynolds Vishy Venugopalan · Longworth Venture Partners · @midtownninja
  2. 2. About me Analyst at Longworth Venture Partners Prior Lives • Infrastructure software analyst at The 451 Group • Software engineer, Morgan Stanley
  3. 3. Everything old is new again…
  4. 4. … or is it?
  5. 5. Cloud computing buzz 4500% in 18 Job postings mentioning “EC2” months vs AWS network bandwidth over time
  6. 6. So what is cloud computing?
  7. 7. And why the buzz? Source: UC Davis networking documentation from 1998 Photo credit Gerard Casey, Rob Graham, Paul Loebig credit:
  8. 8. Cloud computing on- is a model for enabling convenient, demand shared pool network access to a of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. -- NIST Cloud Computing Project
  9. 9. A (very) brief taxonomy • Software as a Service – $21bn by 2012 (20% CAGR) • Platform as a Service – $9bn by 2012 (160% CAGR) • Infrastructure as a Service – $4bn by 2012 (60% CAGR) Sources: Sources AMR, Gartner, IDC, William Blair & Co.
  10. 10. © But is the market real?
  11. 11. The market is real and spectacular Strong on-ramp for New kinds of existing applications applications 70 Projected cloud computing 60 spend 50 40 $bn 30 20 10 Credit: UC Paleontology Museum + Nat’l Center for Science Education 0 2008 2009 2010 2011 2012 Smaller Enterprises Larger Enterprises Cloud = IT’s Cambrian Explosion --Irving Wladawsky Berger Source: Source IBM, Enterprise Cloud Summit 2009
  12. 12. This is how startups see the cloud Copyright holder unknown © Disney This is how large enterprises see the cloud
  13. 13. Killer apps for the cloud (so far…) • Web applications • Batch jobs – Scientific computing – Rich media processing • Test+dev and one-off projects • Getting out of the business of IT Credit: Geek and Poke
  14. 14. So why should startups be excited?
  15. 15. Cloud as new business enabler • Low user friction • Internet standard abstractions • Easy client access • Potential cost savings (?)
  16. 16. What’s so cool this time? Economies of scale + Low user friction + Ease of integration Opening up the SMB IT opportunity?
  17. 17. What’s so cool this time? Openness & network effects Giant market opportunity No single winner
  18. 18. Summary • Cloud computing is a tectonic shift and it’s real • There are many issues yet to be worked out • The cloud enables new apps and new business models • The cloud’s inherent openness encourages innovation • The cloud’s unique characteristics might open up the SMB market
  19. 19. Resources • NIST Cloud Computing Project • McKinsey and Berkeley reports on cloud computing • Intuit Partner Platform • Everyone who’s here!
  20. 20. Thank you! Vishy Venugopalan @midtownninja