1. 1 © 2010 Forrester Research, Inc. Reproduction Prohibited

2. "Hybrid Customer Insight”
Data Collection and Analysis On-premise And In the Cloud
Holger Kisker, Ph.D.
Principal Analyst
Forrester Research
2 © 2010 Forrester Research, Inc. Reproduction Prohibited
2009

3. Agenda
1. Cloud Introduction
2. Why should you care
about the cloud?
3. The cloud challenge of
customer insights
4. Cloud changes
business processes –
based on customer
insights
3 © 2010 Forrester Research, Inc. Reproduction Prohibited

4. What is cloud computing?
Cloud computing is:
A standardized IT capability
(services, software, or infrastructure)
delivered via Internet technologies
in a pay-per-use, self-service way.
Source: Wipro Technologies (www.wipro.com)
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5. Business value
Source: July 2010, “The Evolution Of Cloud Computing Markets” report
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6. Level of sharing
Source: July 2010, “The Evolution Of Cloud Computing Markets” report
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7. Cloud computing business model taxonomy
Source: July 6, 2010, “The Evolution Of Cloud Computing Markets” Forrester report
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8. Agenda
1. Cloud Introduction
2. Why should you care
about the cloud?
3. The cloud challenge of
customer insights
4. Cloud changes
business processes –
based on customer
insights
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9. Forrester‟s global cloud market sizing (US$ millions)
250,000
BP Virtualization Tools
Application Virtualization
Tools
200,000
Middleware Virtualization
Tools
SaaS: $78b Infrastructure Virtualization
Tools
150,000 Dynamic BPO Services
Dynamic Applications
Services
Cloud-based-Integration
100,000 (CBI)
SaaS: $33b
Dynamic Infrastructure
Services
BPaaS
50,000
SaaS
PaaS
0
IaaS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: April 21, 2011, “Sizing The Cloud” Forrester report
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10. Cloud adoption accelerates in 2012
“What are your firm’s plans to adopt the following software technologies?”
(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”
“planning to implement in the next 12 months,” or “planning to implement in a year or more”)
SaaS
By the end of 2012, 45% of all companies
will be using SaaS (60% in 2013!).
IaaS
PaaS
BPaaS
Base: 1,900 to 2,438 software decision-makers
Source: Forrsights Software Survey, Q4 2009, 2010, 2011
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11. SaaS touches all business application segments
“What are your firm’s plans to use software-as-a-service (SaaS) to
complement or replace the following applications?”
(Select one for each row)
25% to 50% Complement with SaaS within 2 years Replace with SaaS within 2 years
17% to 35+%
Shooting star PLM: 11% to 34%
30% 33% 29% 25%
26%
27% 21% 23% 22% 21%
25% 24% 24% 21% 18%
22%
19%
14% 12%
11% 11% 11% 9% 9%
SaaS first wave SaaS second wave SaaS third wave
(Current adoption: 20% to 30%) (Current adoption: 15% to 19%) (Current adoption: 14% or less)
Base: North American and European packaged software decision-makers at firms with 20+ employees
who currently use or are planning to use each application
Source: Forrsights Software Survey, Q4 2011
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12. Cloud computing delivers many different benefits
“How important were the following benefits in your firm’s decision to use SaaS?”
(Respondents who reported “Important factor” or “Very important factor”)
Agility
and
speed
Cost
Base: 920 software decision-makers at firms who are using or planning to use SaaS
Source: Forrsights Software Survey, Q4 2011
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13. Perceived benefits of cloud computing are shifting
from cost and speed to business performance
“How important were the following benefits in your firm’s decision to use SaaS?”
(Percent of respondents that selected 4 „important factor‟ or 5 „very important factor) (Select one for each row)
“Lower overall cost” “Improve business agility”
Base: North American and European software decision-makers who
are using or planing to use SaaS
Source: Forrsights Software Survey, Q4 2009, 2010, 2011
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14. Very large enterprises are using more cloud services
than SMBs
“What are your firm’s plans to adopt the following software technologies?”
(Respondents who selected “Implementing, not expanding” or “Expanding/upgrading implementation”)
SaaS
IaaS
PaaS
BPaaS
Base: Software decision-makers with 20+ employees
Source: Forrsights Software Survey, Q4 2011
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15. More flexible subscription deals cannibalize traditional
software licensing
“In [insert next year], what percentage of your software license spending will
go to the following types?”
Base: Software decision-makers
Note: Each survey predicts spending for the upcoming year.
Source: Forrsights Software Survey, Q3 2007; Q4 2008, 2009, 2010, 2011
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16. Customers are demanding more licensing agility
“How valuable does, or would, your firm find the following features in software license agreements?”
(Respondents who selected “Valuable” or “Very valuable”)
Base: 2,198 software decision-makers with 20+ employees
Source: Forrsights Software Survey, Q4 2011
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17. Customer preference will change future licensing
Cloud users
Cloud demand more
flexible
licensing
subscription
models
Subscription will
continue to
On-premise
cannibalize
licensing perpetual
licensing
Base: 2,198 software decision-makers with 20+ employees who use the
software categories indicated above
Source: Forrsights Software Survey, Q4 2011
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18. Agenda
1. Cloud Introduction
2. Why should you care
about the cloud?
3. The cloud challenge of
customer insights
4. Cloud changes
business processes –
based on customer
insights
18 © 2012 Forrester Research, Inc. Reproduction Prohibited

19. Customer Insights Via Channel
Software
Company
Customer Customer
Insights
• Implementation
Service Provider
• Account Manager
• Help / Service Desk Who is using the SW? Enforcement
What is used? Licensing
• Auditing
How is it used? Enhancements
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20. Cloud Blocks Customer Insights
Data Security
Software Compliance
Company Governance
CLOUD
Customer Customer
Insights?
In Cloud Computing Customer Insightsthe SW? Be
Who is using Need To Enforcement
What is used?
Collected Directly From The Customer Licensing
How is it used? Enhancements
20 © 2010 Forrester Research, Inc. Reproduction Prohibited

21. Cloud changes channel dynamics
Telecom
Vendor
Solution Technology
Partner Partner
PaaS SaaS
Software Vendor Vendor
company
Customer Insights
Value added
Reseller IaaS Service
Vendor Vendor
Implementer
Customer
Insights
Customer Customer
Traditional Cloud style
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22. Agenda
1. Cloud Introduction
2. Why should you care
about the cloud?
3. The cloud challenge of
customer insights
4. Cloud changes
business processes –
based on customer
insights
22 © 2010 Forrester Research, Inc. Reproduction Prohibited

23. Traditional SW Business Is Linear
Development (e.g. 1x per year)
Planning Development Testing Shipment Traditional Software
Business:
Pricing & Licensing (e.g. 1x per 5 years)
• Linear Business
Licensing Mainteance
Processes
Sales • One Process Starts
RFI RFP Offer Signature Over The Next
Process
Service & Support
Support
• Discontinuity Favours
Implement Fixes Upgrade
Packs
Business Growth
Risk & Operations Mgmt
Risk
Bus Plan Invest Tracking
Assessment
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24. Every Department Feels Some New Pressures From
SaaS Adoption
Source: October 12, 2010, “Tech Vendors Are Only Now Realizing The Full Implications Of SaaS” Forrester report
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25. SaaS Requires Continuous Business Processes
Invent
SaaS Software Business:
• Consinuous Business
Support Develop Processes
Cloud • All Processes Run In
Parallel
• There Is No ‚Escape„
Deploy License
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26. SaaS Requires Continuous Customer Insights
Continous Portfolio
Planning
Invent
Continous Continous Risk
When
Support Support Who Develop
Management
Customer
Insight
How What
Where
Deploy License
Continuous Continuous
Sales Pricing Models
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27. Transform your Develop a new cloud
product/business product/business
Two options
for each portfolio
element
Existing NONcloud
products and service
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28. Forrester‟s SaaS readiness assessment for software
vendors
Tier 1 Tier 2 Tier 3
Simply
change
Transform deployment.
your
product.
Develop a new
product on a
cloud platform.
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29. If you remember nothing else . . .
1 SaaS Is The Biggest Cloud Opportunity
2 Customer Insights Are A Cloud Challenge
3 SaaS Changes The SW Business Dynamics
4 SaaS Requires Continuous Customer Insights
29 © 2010 Forrester Research, Inc. Reproduction Prohibited

30. Thank you
Holger Kisker, Ph.D.
+49 (0)69.9592.9862
hkisker@forrester.com
www.forrester.com
www.twitter.com/hkisker
30 © 2010 Forrester Research, Inc. Reproduction Prohibited