The document discusses how industrialization led to electrification around 50 years ago, and how a similar shift is now happening in IT. Specifically, it argues that non-core IT tasks will be consumed as cloud services, allowing companies to focus on their core business. This shift will cause existing IT giants' power based on private data centers to decline, while new cloud computing giants like Amazon Web Services will emerge and grow rapidly. It also notes that both core and non-core IT tasks will continue to be important, and companies can extend their existing IT assets by leveraging public cloud services for faster innovation. The key message is that the industrialization of IT through cloud computing is inevitable and companies must have a plan to either ignore, embrace

1. The Cloud and The Fall of Giants
{FUTURE}STACK13
@SachaLabourey
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2. ©2013 CloudBees, Inc. All Rights Reserved

3. “Industrialization” –
Electrification
• d
~50 years
End of the 19th century
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4. IT – Building your Business
Monitoring
Management
Applications
Frameworks
Middleware
Clustering/LB/HA
OS
Servers
Firewalls
Networking
• Build your own
“Electricity generator”
• Massive investment
Server Market:
> $40B
DC Infrastructure
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5. IT – Building the Iceberg
Monitoring
Management
Applications
Frameworks
Middleware
Clustering/LB/HA
OS
Servers
Firewalls
Networking
• But…
– Little differentiation
– Expertise required is very
different from core business
– Critical-mass matters
DC Infrastructure
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6. Natural Push Towards “Industrialization”
• Constant push towards
– specialization
– simplification
• FOCUS FOCUS FOCUS
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vs.

7. Deconstructing the Iceberg
Monitoring
Management
Applications
Frameworks
Middleware
PaaS
Clustering/LB/HA
OS
Servers
Firewalls
IaaS
Networking
DC Infrastructure
• “Outsourcing” of non-core tasks
• Focus on
MARKET DIFFERENTIATION
– Also known as
“You won’t win because you can
install Linux faster than your
competitors”
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8. Deconstructing the Iceberg
Applications
• Non-core IT tasks are consumed as a SERVICE
• You are NOT…
++ Time to Market
++ Competitive
Advantage
IaaS
-- CAPEX+OPEX
[buying | installing | configuring | patching]
…Software
• Software is an “implementation detail”
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9. The Giants
Monitoring
Management
Applications
Frameworks
Middleware
Clustering/LB/HA
OS
An economy based on private data-center CORES
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10. The Giants
• Standardization is not just
impacting the data-center
• The client devices gets
standardized as well
– HTML = the new “plug”
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11. 10
9
8
7
6
5
4
3
2
1
0
The New Giants
Es matedEs mated AWS Revenues ($B)
Es mated AWS Revenues ($B)
AWS Revenues ($B)
10
9
8
7
6
5
4
3
2
1
0
10
9
8
7
6
5
4
3
2
1
0
88% CAGR
(2009-2012)
(FY13)
2006 2007 2008 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 2015 VMW VMW VMW
2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 RHT RHT RHT
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12. The Giants Under Attack
Cloud
Mobile
Social
(Big)Data
Search
Client
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13. Software vs. Services (i.e. 0101 != 0101)
• Can’t Software companies just become
“as-a-Service” Companies?
– Hard!
– Different [ Engineering | Sales | DNA ]
– Just think about it:
Does Google still need to support “Gmail 1.0”?
– How do you compensate sales for a $50/month customer?
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14. What does it mean for you?
• Let’s move everything to the cloud! Now!
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15. Core IT & Fast IT
SaaS
WHERE ENTERPRISES ARE
Enterprise Core
Data and Services
SaaS
SaaS
Accelerated Innovation
and Discovery
Same tools, same knowledge
CORE IT
&
FAST IT
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WHERE THEY NEED TO GO
New forms of User Engagement

16. Core IT & Fast IT
• This is NOT about DC vs Public Cloud
• This is NOT about Public vs. Private Cloud
• This IS about
– EXTENDING & LEVERAGING your existing assets
– Increasing your time-to-market & reducing costs
• YOU define what is CORE vs. FAST IT
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17. Conclusion
• The Industrialization of IT is inevitable
– This will create a new generation of “Sybases”
– New Giants will emerge
• As a user of technology, what’s your plan?
– Ignore? Embrace?
– The future of IT is now
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or
?