P ARTNER INSIGHT Cloud Transition Series: (1) Cloud Definitions and Market Opportunities Sponsored by: Microsoft Corp. Paul Edwards Darren Bibby July 2011 CLOUD TRANSITION SER IESwww.idc.com This is the first in a series of eight Partner Insight reports created specifically for partners by IDC on behalf of Microsoft. See Figure 1 for an overview of these reports. This first Partner Insight contains IDCs definitions of cloud computing and software as a service (SaaS), as well as forecasts that show the tremendous opportunity inF.508.935.4015 these growing areas. The second report covers changes across a partners business models in the areas of sales, marketing, and business strategy as a partner takes on cloud computing, while the other reports in the series cover changes in each of the six key revenue activities any IT solution provider may undertake.P.508.872.8200 FIGURE 1 Reports in the IDC Cloud Transition SeriesGlobal Headquarters: 5 Speen Street Framingham, MA 01701 USA Cloud Definitions and Market Opportunities Sales, Marketing, and Business Strategy IT Consulting and Hosting, Outsourced, Resale Integration Services and Managed Services and Referral Business Consulting Training and Support Software Product Services Services Development Source: IDC, 2011 CLOUD DEFINITIONS AN D MARKET OPPORTUNITIES Cloud services represent an emerging model for online delivery of a host of business The cloud model goes well beyond prior offerings that will eventually have a significant impact on partners of all types, online delivery including VARs, services firms, and ISVs. The cloud model goes well beyond prior approaches to make offerings easier, online delivery approaches to make offerings easier, cheaper, and often more cheaper, and often powerful for customers to consume. For these reasons, partners need to assess how more powerful for their businesses are positioned to take advantage of the cloud opportunity today and customers to consume. to adjust strategy to maximize potential in the future.