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FUTURE OF CLOUD LEADERSHIP PANEL
Led by Michael J Skok

@mjskok
Leadership Panel



              Dries Buytaert                     Lew Moorman
              CTO & Founder
                                                   President


                @Dries                           @LewMoorman




John Dillon                    Michael Skok                       Marten Mickos

   CEO                         General Partner                         CEO


@JohnDillon                    @mjskok                            @MartenMickos




                                                      www.FutureCloudComputing.net   2
Enterprise Cloud Computing Definitions
                 Blogs                                              Office
                                                       Payroll   Productivity
                          Marketing
  SaaS           Email                                             CRM
[application]           Content         Web / Mobile     Sales Force
                      Management        Applications     Automation



    PaaS
    [platform]
                         Dev Tools      Frameworks     Management



       IaaS
   [infrastructure]
                              Storage    Compute       Network



                                                        www.FutureCloudComputing.net   3
Enterprise Cloud Computing Definitions
SaaS [application] a hosted application accessed through a Web browser.
SaaS is the ongoing support of applications whose core value to the customer pertains
to alleviating the maintenance and daily technical operation and support of business
and consumer software. SaaS is a newer model of Web-delivered software offered with
a subscription instead of traditional license.

PaaS [platform] an in-cloud platform for the development and deployment of
cloud application software that is analogous to an on-premises application server with
added multi-tenant elasticity and other cloud-enabling features. PaaS offerings are
designed to support the entire application development lifecycle. PaaS includes vendors
that provide the entire stack of PaaS functionality and those that partner with third
parties (i.e. hoster) for the infrastructure component.

IaaS [infrastructure] virtual or physical hardware resources (e.g. compute,
storage, network) offered as a service with heavy reliance on server virtualization. IaaS
is a shared IT infrastructure (compute and storage) architecture provided through on-
demand services.




                                                              www.FutureCloudComputing.net   4
www.FutureCloudComputing.net




SURVEY BACKGROUND




                                                   5
Survey Partners & Collaborators




                                  www.FutureCloudComputing.net   6
Who took the survey?




     vendors
               417
                Total Responses
                                      non-vendors




   46%                             54%
                                  www.FutureCloudComputing.net   7
Who took the survey?




                       www.FutureCloudComputing.net   8
Survey Respondents = Cloud Market
                                                                            Survey
OnPremise    Firms                                                        Respondents
Stronghold

              9k                          >1000                                 14%
                                      Enterprise


                                100-1000 employees
             100k                                                               18%
                                      Mid-Market



              6M                   <100 employees                               68%
OnDemand                                  Small
Stronghold
                Source: 2007 US Census Bureau; IDC, Salesforce.com




                                                                     www.FutureCloudComputing.net   9
What would you like to
hear about cloud
computing?

   Usage… today
   Drivers,
   Inhibitors
    … for the future




         www.FutureCloudComputing.net 10
How do Customers Characterize their Approach to
Using Cloud Computing Today?

                    10%   Will never use, too risky

                    26%                Waiting to mature

                    40%                               Experimenting

                    11%   Using for usage spikes

                            Complete confidence for
                    13%
                            mission critical applications




                                           www.FutureCloudComputing.net 11
Months Using Cloud
            40%
            35%
                                                20
                                                            Average
                                                            Months
            30%                                             Using Cloud


            25%
Responses




            20%
            15%
            10%
            5%
            0%
                  3   10   12     18     24   36       48          60

                                Months



                                              www.FutureCloudComputing.net 12
Drivers For Cloud Adoption

                                                                         Now vs. 5 years
    47%



                                                64%

                                                                      113%
                                                                                  100%                          263%




Agility   Scalability   Cost   Efficiency   Innovation   Capex to Competitive   Mobility   Other   Customer Cloud APIs
                                                          Opex                                     Demand




                                                                                      www.FutureCloudComputing.net 13
Drivers For Cloud Adoption

                                                                         Now vs. 5 years
    47%



                                                64%

                                                                      113%
                                                                                  100%                          263%




Agility   Scalability   Cost   Efficiency   Innovation   Capex to Competitive   Mobility   Other   Customer Cloud APIs
                                                          Opex                                     Demand




                                                                                      www.FutureCloudComputing.net 14
Inhibitors to Adoption… What is Top-of-Mind?
20%                                                          Security
13%                                   Interoperability
12%                              Vendor Lock-in

12%                              Compliance

11%                           Reliability

11%                            Complexity

10%                         Privacy

6%                Pricing

3%      Expense

2%    Other



                                                         www.FutureCloudComputing.net 15
What is the Strategy of Cloud Customers Today?
                         27%   … in the Future?


               Private
                24%
   21%                         Hybrid
         12%                    39%




                 Public
                  37%
                                 42%


                                   www.FutureCloudComputing.net 16
Cloud Computing TCO is…


                29   %




                          www.FutureCloudComputing.net 17
Cloud Computing TCO is…
                                     14         %

                29   %

  57   %




                          www.FutureCloudComputing.net 18
Impact of Cloud Computing on IT Manageability?




 Less Complex       No Impact       More Complex


   39      %       22       %        39         %



                                 www.FutureCloudComputing.net 19
What is the Impact of Cloud Computing on Hiring?

      26%              Expected

      Decrease
                       decrease
                         9%
                                                42%
           Decreased                               None
             17%


                                  No Impact
                                    42%

      32%
      Increased
               Expected
               increase
                 22%              Increased
                                     10%




                                      www.FutureCloudComputing.net 20
Top Up and Coming Cloud Companies?
PUBLIC
PRIVATE




                              www.FutureCloudComputing.net 21
Top Up and Coming Cloud Companies?
PUBLIC
PRIVATE




                              www.FutureCloudComputing.net 22
Cloud Investments                           ??

                       $713M
  $482M                  93
                            deals
    64
    deals



2009
                    2010
Source: Dow Jones Company
                                    2011
                                       www.FutureCloudComputing.net 23
Cloud Technologies/Vendors in Use Today?
                 SaaS
             (applications)                        •   Microsoft        •   Successfactors
                             •   Awareness         •   Moxy             •   Teleo
                             •   Basecamp          •   OpenTable        •   Kenexa
                             •   BrightCove        •   Salesforce.com   •   Concur
                             •   Codebase          •   SurveyMonkey     •   SAP ByDesign                      IaaS
                             •   FreeAgent         •   TripIt           •   Intuit
                             •   Google gmail/docs •   Tungle           •   Adobe                       (infrastructure)
                             •   HubSpot           •   Wordpress        •   Oracle
                             •   Jenkins           •   Workday          •   McAfee           •   Amazon
                                                   •   ZenDesk          •   Symantec         •   Eucalyptus
  PaaS                                                                                       •   GoGrid
                   •   CloudBees                                                             •   Google
(platform)         •   Heroku                                                                •   Microsoft
                   •   Google AppEngine                                                      •   Rackspace
                   •   MS Azure                                                              •   Rightscale
                   •   VMWare                                                                •   Sound Cloud
                   •   Voltage                                                               •   Terremark
                                                                                             •   Virtacore
                                                                                             •   Yaws


     ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp, IBM, Infomatica, Equinix, RedHat




                                                                                     www.FutureCloudComputing.net 24
Cloud Technologies/Vendors Planned to Use?
                 SaaS
             (applications)
                                              •   Asigra
                                              •   Facebook
                                              •   Geckoboard
                                              •   Kaazing                                                  IaaS
                                              •   Seesmic
                                              •   Pentaho
                                                                                                     (infrastructure)


  PaaS            •   Acquia
(platform)        •   Cumulogic
                                                                                  (Intentionally blank – no
                  •   Egnyte
                                                                                    one new mentioned)
                  •   Mnesia
                  •   MongoDB
                  •   Openstack
                  •   Yahoo Pipes




     ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp, IBM, Infomatica, Equinix, RedHat




                                                                                www.FutureCloudComputing.net 25
Cloud Vendor’s Infrastructure is…

Public Cloud
     Hosted
                                                  49%



Co-located                27%



  Privately
   Owned               24%


                                     www.FutureCloudComputing.net 26
How Vendors Use Cloud Services

     Other 2%   CMS, CRM, Web Mail, VOIP

   Search             12%



App Server                              27%


 Database                                 28%


   Storage                                    30%




                                    www.FutureCloudComputing.net 27
Vendor’s Primary Revenue Sources

      28%




                       16%


                                     11%          11%
                                                                10%         10%

                                                                                       6%
                                                                                                  5%
                                                                                                            4%

      SaaS             Other     Hosting Fees     Support      Consulting   Custom   Appliance   Training   Other
   Subscription       Services 1                                            SW/HW      Sales
      Fees


1Services   (other than custom software/hardware development



                                                                                     www.FutureCloudComputing.net 28
What Services do Vendors feel they need to provide for
use in the Future?




                                       www.FutureCloudComputing.net 29
Most Likely sectors disrupted by
Cloud Computing over the next 5 years




                                www.FutureCloudComputing.net 30
Least Likely sectors disrupted by
Cloud Computing over the next 5 years




                                www.FutureCloudComputing.net 31
Cloud Revenue Projections ($m)

                Iaas, Paas & SaaS Revenue
   $25,000
                                                             $21,057

   $20,000
                                                   $17,538


   $15,000                               $14,104

                               $11,296

   $10,000            $8,814
             $6,891

    $5,000


       $-
             2009     2010     2011      2012      2013      2014



                                                      www.FutureCloudComputing.net 32
What % of Your Computing is in the Cloud Today?
                                      …in +5 Years?
        today         10%
 None
        +5 yrs   3%

                                                                    38%
 25%
                            14%

                            14%
 50%
                                              26%

                                        22%
 75%
                                                            34%

                                  17%             75% predict
100%                                         2/3rds of computing
                                         23%
                                             will be in the Cloud!




                                              www.FutureCloudComputing.net 33
You asked for it – we covered it…
   Cloud usage… today
   Drivers
   Inhibitors … for the future


  www.futurecloudcomputing.net

             Full details of the
             survey, plus thought
             leadership…
                @futureofcloud


                  www.FutureCloudComputing.net 34
Cloud Storm is Brewing!

• Private and Public Clouds are gathering
• Hybrid, Interoperability are going to cause a storm
• Security, Compliance & Vendor lock-in are going to rain on
  the parade
• As Mobility surges
• Lightning may strike twice – Agility, Innovation – for
  Competitive Advantage
• Impact on IT manageability, Staffing is still unclear, but
  TCO should be reduced


                                            www.FutureCloudComputing.net 35
A big thank you from North Bridge to…




 John Dillon   Dries Buytaert   Lew Moorman              Marten Mickos

    CEO        CTO & Founder      President                   CEO




                                              www.FutureCloudComputing.net 36

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Future of cloud computing 2011

  • 1. FUTURE OF CLOUD LEADERSHIP PANEL Led by Michael J Skok @mjskok
  • 2. Leadership Panel Dries Buytaert Lew Moorman CTO & Founder President @Dries @LewMoorman John Dillon Michael Skok Marten Mickos CEO General Partner CEO @JohnDillon @mjskok @MartenMickos www.FutureCloudComputing.net 2
  • 3. Enterprise Cloud Computing Definitions Blogs Office Payroll Productivity Marketing SaaS Email CRM [application] Content Web / Mobile Sales Force Management Applications Automation PaaS [platform] Dev Tools Frameworks Management IaaS [infrastructure] Storage Compute Network www.FutureCloudComputing.net 3
  • 4. Enterprise Cloud Computing Definitions SaaS [application] a hosted application accessed through a Web browser. SaaS is the ongoing support of applications whose core value to the customer pertains to alleviating the maintenance and daily technical operation and support of business and consumer software. SaaS is a newer model of Web-delivered software offered with a subscription instead of traditional license. PaaS [platform] an in-cloud platform for the development and deployment of cloud application software that is analogous to an on-premises application server with added multi-tenant elasticity and other cloud-enabling features. PaaS offerings are designed to support the entire application development lifecycle. PaaS includes vendors that provide the entire stack of PaaS functionality and those that partner with third parties (i.e. hoster) for the infrastructure component. IaaS [infrastructure] virtual or physical hardware resources (e.g. compute, storage, network) offered as a service with heavy reliance on server virtualization. IaaS is a shared IT infrastructure (compute and storage) architecture provided through on- demand services. www.FutureCloudComputing.net 4
  • 6. Survey Partners & Collaborators www.FutureCloudComputing.net 6
  • 7. Who took the survey? vendors 417 Total Responses non-vendors 46% 54% www.FutureCloudComputing.net 7
  • 8. Who took the survey? www.FutureCloudComputing.net 8
  • 9. Survey Respondents = Cloud Market Survey OnPremise Firms Respondents Stronghold 9k >1000 14% Enterprise 100-1000 employees 100k 18% Mid-Market 6M <100 employees 68% OnDemand Small Stronghold Source: 2007 US Census Bureau; IDC, Salesforce.com www.FutureCloudComputing.net 9
  • 10. What would you like to hear about cloud computing?  Usage… today  Drivers,  Inhibitors … for the future www.FutureCloudComputing.net 10
  • 11. How do Customers Characterize their Approach to Using Cloud Computing Today? 10% Will never use, too risky 26% Waiting to mature 40% Experimenting 11% Using for usage spikes Complete confidence for 13% mission critical applications www.FutureCloudComputing.net 11
  • 12. Months Using Cloud 40% 35% 20 Average Months 30% Using Cloud 25% Responses 20% 15% 10% 5% 0% 3 10 12 18 24 36 48 60 Months www.FutureCloudComputing.net 12
  • 13. Drivers For Cloud Adoption Now vs. 5 years 47% 64% 113% 100% 263% Agility Scalability Cost Efficiency Innovation Capex to Competitive Mobility Other Customer Cloud APIs Opex Demand www.FutureCloudComputing.net 13
  • 14. Drivers For Cloud Adoption Now vs. 5 years 47% 64% 113% 100% 263% Agility Scalability Cost Efficiency Innovation Capex to Competitive Mobility Other Customer Cloud APIs Opex Demand www.FutureCloudComputing.net 14
  • 15. Inhibitors to Adoption… What is Top-of-Mind? 20% Security 13% Interoperability 12% Vendor Lock-in 12% Compliance 11% Reliability 11% Complexity 10% Privacy 6% Pricing 3% Expense 2% Other www.FutureCloudComputing.net 15
  • 16. What is the Strategy of Cloud Customers Today? 27% … in the Future? Private 24% 21% Hybrid 12% 39% Public 37% 42% www.FutureCloudComputing.net 16
  • 17. Cloud Computing TCO is… 29 % www.FutureCloudComputing.net 17
  • 18. Cloud Computing TCO is… 14 % 29 % 57 % www.FutureCloudComputing.net 18
  • 19. Impact of Cloud Computing on IT Manageability? Less Complex No Impact More Complex 39 % 22 % 39 % www.FutureCloudComputing.net 19
  • 20. What is the Impact of Cloud Computing on Hiring? 26% Expected Decrease decrease 9% 42% Decreased None 17% No Impact 42% 32% Increased Expected increase 22% Increased 10% www.FutureCloudComputing.net 20
  • 21. Top Up and Coming Cloud Companies? PUBLIC PRIVATE www.FutureCloudComputing.net 21
  • 22. Top Up and Coming Cloud Companies? PUBLIC PRIVATE www.FutureCloudComputing.net 22
  • 23. Cloud Investments ?? $713M $482M 93 deals 64 deals 2009 2010 Source: Dow Jones Company 2011 www.FutureCloudComputing.net 23
  • 24. Cloud Technologies/Vendors in Use Today? SaaS (applications) • Microsoft • Successfactors • Awareness • Moxy • Teleo • Basecamp • OpenTable • Kenexa • BrightCove • Salesforce.com • Concur • Codebase • SurveyMonkey • SAP ByDesign IaaS • FreeAgent • TripIt • Intuit • Google gmail/docs • Tungle • Adobe (infrastructure) • HubSpot • Wordpress • Oracle • Jenkins • Workday • McAfee • Amazon • ZenDesk • Symantec • Eucalyptus PaaS • GoGrid • CloudBees • Google (platform) • Heroku • Microsoft • Google AppEngine • Rackspace • MS Azure • Rightscale • VMWare • Sound Cloud • Voltage • Terremark • Virtacore • Yaws ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp, IBM, Infomatica, Equinix, RedHat www.FutureCloudComputing.net 24
  • 25. Cloud Technologies/Vendors Planned to Use? SaaS (applications) • Asigra • Facebook • Geckoboard • Kaazing IaaS • Seesmic • Pentaho (infrastructure) PaaS • Acquia (platform) • Cumulogic (Intentionally blank – no • Egnyte one new mentioned) • Mnesia • MongoDB • Openstack • Yahoo Pipes ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp, IBM, Infomatica, Equinix, RedHat www.FutureCloudComputing.net 25
  • 26. Cloud Vendor’s Infrastructure is… Public Cloud Hosted 49% Co-located 27% Privately Owned 24% www.FutureCloudComputing.net 26
  • 27. How Vendors Use Cloud Services Other 2% CMS, CRM, Web Mail, VOIP Search 12% App Server 27% Database 28% Storage 30% www.FutureCloudComputing.net 27
  • 28. Vendor’s Primary Revenue Sources 28% 16% 11% 11% 10% 10% 6% 5% 4% SaaS Other Hosting Fees Support Consulting Custom Appliance Training Other Subscription Services 1 SW/HW Sales Fees 1Services (other than custom software/hardware development www.FutureCloudComputing.net 28
  • 29. What Services do Vendors feel they need to provide for use in the Future? www.FutureCloudComputing.net 29
  • 30. Most Likely sectors disrupted by Cloud Computing over the next 5 years www.FutureCloudComputing.net 30
  • 31. Least Likely sectors disrupted by Cloud Computing over the next 5 years www.FutureCloudComputing.net 31
  • 32. Cloud Revenue Projections ($m) Iaas, Paas & SaaS Revenue $25,000 $21,057 $20,000 $17,538 $15,000 $14,104 $11,296 $10,000 $8,814 $6,891 $5,000 $- 2009 2010 2011 2012 2013 2014 www.FutureCloudComputing.net 32
  • 33. What % of Your Computing is in the Cloud Today? …in +5 Years? today 10% None +5 yrs 3% 38% 25% 14% 14% 50% 26% 22% 75% 34% 17% 75% predict 100% 2/3rds of computing 23% will be in the Cloud! www.FutureCloudComputing.net 33
  • 34. You asked for it – we covered it…  Cloud usage… today  Drivers  Inhibitors … for the future www.futurecloudcomputing.net Full details of the survey, plus thought leadership… @futureofcloud www.FutureCloudComputing.net 34
  • 35. Cloud Storm is Brewing! • Private and Public Clouds are gathering • Hybrid, Interoperability are going to cause a storm • Security, Compliance & Vendor lock-in are going to rain on the parade • As Mobility surges • Lightning may strike twice – Agility, Innovation – for Competitive Advantage • Impact on IT manageability, Staffing is still unclear, but TCO should be reduced www.FutureCloudComputing.net 35
  • 36. A big thank you from North Bridge to… John Dillon Dries Buytaert Lew Moorman Marten Mickos CEO CTO & Founder President CEO www.FutureCloudComputing.net 36