Back in 2003, Emergence Capital theorized that enterprise software would move to the cloud. The first ten years were flush with companies in the horizontal market: Salesforce, Workday and Intacct all changed the way organizations do business. Now, ten years after Emergence started, we are seeing an even bigger opportunity: vertical cloud solutions. With Veeva, Guidewire and Opower, we are in the midst of an industry cloud revolution. Don't believe us? Take a look here at how industry cloud is both similar and different than prior technology shifts, and check out our take on the hallmarks of an industry cloud company as well as the current industry cloud landscape.

1. CLOUD
REVOLUTION
I N D U S T R Y C L O U D R I S I N G
E m e r g e n c e C a p i t a l P a r t n e r s

2. I N D U S T R Y C L O U D F O R U M 2 0 1 4
INDUSTRY CLOUD
RISING
G O R D O N R I T T E R
E M E R G E N C E C A P I T A L P A R T N E R S
@ G O R D O N R I T T E R
@ E M E R G E N C E C A P
# I N D U S T RY C L O U D

3. Enterprise
software
moves…
…to the
cloud
Emergence Capital Thesis in 2003

4. ~40 Investments
Series A & B
$40B Market Cap

5. Leading early stage
Business Cloud VC
2014

6. T H E F I R S T 1 0 Y E A R S .
HORIZONTAL MARKETS

7. CRM

8. ACCOUNTING

9. HR

10. TODAYNew opportunities
emerging

11. Vertical
Solutions
IndustryCloud
Next10Years

12. Life
Sciences

13. Insurance

14. Energy

15. THIS
HAPPENED
BEFORE

16. Mainframes
1970s

17. Client Server
1990s

18. Cloud Software
TODAY

19. WHAT IS
DIFFERENT
THIS TIME?

20. In the past, vertical software has been a kludgy extention of the horizontal code.
Customization was usually done by systems integrators like Accenture whose business models
were based on one-off projects for their largest customers.
Every year, a new set of consultants would build custom code extensions.

21. We all know what happens when you use spaghetti code with bad fittings, everything leaks.
Customizations were expensive to maintain and prevented the true value of vertical software to
accrue to customers. One set of custom code couldn’t talk to another custom project.
The promise of aligning the software and data insights in a particular industry was never realized.
,

22. The Industry Cloud is different.
It is powerful and coordinated.

23. INTEGRATED
TRUESOFTWARE
INSIGHTS
Industry Cloud allows for True, Multi-Tenant
Software…across multiple platforms…with little
customization required.

24. 5 HALLMARKSO F A N I N D U S T R Y C L O U D C O M P A N Y

25. TALENT
TRIFECTA
BUSINESS
LEADERSHIP
TECHNICAL
EXPERTISE
DOMAIN
EXPERTISE

26. DEEP
DATA

27. REFERRAL REVENUES
REFERRAL
REVENUES

28. LAYER CAKE
PRODUCT STRATEGY

29. MASSIVE
MARKET SHARE

30. Horizontal Cloud majors in
sales people and minors in
product lines.

31. Industry Cloud majors in
product lines and minors in
sales people.

32. OTHER
E M E R G E N C E C A P I T A L
INDUSTRY CLOUD INVESTMENTS TO DATE
HEALTHCARE / LIFE SCIENCE
EDUCATION

33. INDUSTRY CLOUD
LANDSCAPE
ENERGYHEALTHCARE EDUCATION REAL ESTATE LEGAL
GOVERNMENT
FOOD & BEV
PUBLIC
PUBLIC
FINTECH
PUBLIC
MANUFACTURING
NON-PROFIT
PUBLIC
OTHERS
PUBLIC
TRANSPORTATION
PUBLIC
RETAIL
PUBLIC
PUBLIC
PUBLIC
V2.0 / Q2 2014

34. HOW WILL YOU LEAD THE
REVOLUTION?
=
I N D U S T R Y C L O U D R I S I N G