Connection is the Goal: A View from Above the Cloud


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Keynote presentation by Peter Coffee of inc. to the Cloud Matters conference of the Canadian Cloud Council, 11 March 2013, Banff

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Connection is the Goal: A View from Above the Cloud

  1. 1. Connection Is The Goal (A View from Above the Cloud) @PeterCoffee Peter Coffee VP & Head of Platform Research inc.
  2. 2. Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-lookingstatements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions In Other Words:proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, includingany projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plansof management for future operations, statements of belief, any statements concerning new, planned, or upgraded services ortechnology developments and customer contracts or use of our services. Everything ThatThe risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering newfunctionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results andrate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers You See Hereand acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain,and motivate our employees and manage our growth, new releases of our service and successful customer deployment, ourlimited history reselling products, and utilization and selling to larger enterprise customers. Further informationon potential factors that could affect the financial results of, inc. is included in our annual report and on our Form10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor is RealInformation section of our Web site.Any unreleased services or features referenced in this or other press releases or public statements are not currently available andmay not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based uponfeatures that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements. @PeterCoffee
  3. 3. “Someday, you’ll have to tell your kids about phones that had wires…and TVs that didn’t” - Scott McNealy “Digital” Camera? “Cellular” Phone? “Cloud” Computing? @PeterCoffee
  4. 4. This Is How Novelty Ends“Digital Camera”: every December, it’s still news to someone “Cloud Computing”: as more use it, fewer ask about it @PeterCoffee
  5. 5. ‘The Cloud’…is now the medium of ‘The Connections’ (Arcs Represent Number • Distance of Facebook ‘Friend’ Links) @PeterCoffee Pop quiz: where is Beijing?
  6. 6. Your ‘Brand’ is Built On Connection... …not Control Fortune 100 Facebook Fan Growth Fortune 100 Facebook Activity “We analyzed the website Fortune 100 Web Traffic Activity Fortune 100 Web Growth traffic of Fortune 100 websites based on ‘unique visits’. The study revealed that 68% of the top 100 companies were experiencing a negative growth in unique visits over the past year... 40% exhibited higher traffic to their Facebook pageJun 2010 compared to their website.” Dec 2011Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; Google Social Media Analysis Study @PeterCoffee
  7. 7. Broken Institutions Need ‘Connection’ Revolution Medicine: sensor-equipped patients & homes reduce office & hospital visits Education: students in external settings learn by practice @PeterCoffee
  8. 8. Connection Is Not Rip/Replace Systems of EngagementMash-ups from Integration Tools Native Systems of Record Web and DesktopAppExchange Connectors AppExchange Apps Any System ERP Finance @PeterCoffee
  9. 9. Connecting Machines; Processes; People• Connecting Machines – ‘OnStar’ network daily handles 150k human requests… …and 130k machine-originated requests – Some are critical, e.g. air-bag deployments – Others may be infotainment, e.g. mileage ‘leader board’• Connecting Processes – General Electric wind-farm management: 123 turbines – Field-wide speed optimization, anti-icing behaviors – 3% output increase  US$1.2M/year added revenue• Connecting People – Asics delivers RFID-triggered messages to marathoners @PeterCoffee
  10. 10. It’s Happening Today – Not Tomorrow @PeterCoffee
  11. 11. The connection revolutionrequires a trust revolution @PeterCoffee
  12. 12. Governance Demands Challenge Legacy Models• Global cooperation: “One of the reasons legislation is necessary is to allow Canada to meet its commitments under the Council of Europe Convention on Cybercrime.”• Data-handling laws proliferate • Privacy Act (Canada – amended July 2012) • Notification of Risk to Personal Data Act • Data Accountability and Trust Act • Social Security Number Protection Act • Prevention of Fraudulent Access to Phone Records Act• Technology trends oppose the goals of governance • Processing: enemy of encryption • Connectivity: attacker opportunities and tools • Storage: ever-growing risk of larger losses @PeterCoffee
  13. 13. Governance Demands Challenge Legacy Models“While the Patriot Act continues to be invoked as a kind of shorthandto express the belief that the United States government has greaterpowers of access to personal data in the Cloud than governmentselsewhere, and that ‘local clouds’ are the solution, a recent study weconducted of the laws of Australia, Canada, Denmark, France,Germany, Ireland, Japan, Spain, United Kingdom—and the UnitedStates—shows that it is simply incorrect to assume that the UnitedStates governments access to data in the Cloud is greater than that ofthe other advanced economies.“Law enforcement and national security officials have broad access todata stored locally with Cloud service providers in the countries weinvestigated. Our research found that that it is not possible to isolatedata in the Cloud from governmental access based on the physicallocation of the Cloud service provider or its facilities, and thatGovernments ability to access data in the Cloud extends acrossborders.” - @PeterCoffee
  14. 14. Cloud Efficiencies Rise to the Challenge “When hundreds or even thousands of other businesses are using exactly the same operational infrastructure, all of them…benefit from the hardening of the infrastructure after any of them come in contact with a newly detected threat.” @PeterCoffee
  15. 15. All Assets Secured, All the Time “Despite resource sharing, multitenancy will often improve security… “Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite!” @PeterCoffee
  16. 16. ‘Connected IT’: Dep’t of Adult Supervision– Trust Dynamic threat environments; rising community awareness and expectations– Governance Global markets; narrow perspectives; ‘crown jewel’ data– Mobility Productivity improvement; BYOD challenges– Social Interaction External communities; internal collaboration; high-velocity operations– Talent Development and Technology Change Where will we get tomorrow’s programmers? How will practices change? “In 2011, there were still five unemployed people for every job available. Yet American businesses in 2011 reported more than three million job openings they have been unable to fill because of a skills shortage.” – Edward Luce, Financial Times @PeterCoffee
  17. 17. Agile, Scalable Connection Demands Cloud Platforms  On spec, on time, on budget deployment of fully tested, proven connection capability: trusted security and global availability  Modern applications, driven by user feedback for continuing improvement – with “clicks, not code” customization  “No Software”: what’s paid for is function, not code. Continuous scrutiny of operations, maintenance of facilities, world-class security and dynamic device support are literally “part of the service”  Multiple upgrades per year: no disruption, shrinking deployment times, backward compatibility to previous API releases  “The future is already here – just not evenly distributed” - William Gibson @PeterCoffee
  18. 18. Canadian Leaders Currently used by – all six national banks – five major insurance firms – all three national telco providers – high-tech leaders – aerospace manufacturers/operators – various public-sector agencies @PeterCoffee
  19. 19. Canadian Leaders Currently used by – all six national banks – five major insurance firms – all three national telco providers – high-tech leaders – aerospace manufacturers/operators – various public-sector agencies @PeterCoffee
  20. 20. Thank You petercoffee @PeterCoffee