FUTURE OF CLOUD COMPUTING
2012
Northbridge.com @North_Bridge
@FutureofCloud
2011
417
785
2012
WHATwe learned
1. Software = Cloud
2. SaaS rules. PaaS pops.
3. Time to plug in your hybrid.
4. The mission is critical.
5. IT is riding the wave.
6. We still have work to do.
7. Racing into the future.
8. Investment is rocking.
1. Software = Cloud
Cloud is Changing Software
SaaS spending growth compared to all software:
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011
Big Data
CRM
Ecommerce
Social
Business Intelligence
Mobile
Office Productivity
ERP
App Dev
WCM/CMS
Communications
Human Resources
Desktop virtualization
Points of Sale
Operating Systems
Series 1
Column1
Column2
Cloud is Changing Software
More than 50% believe most categories will be disrupted.
50%
55%
Source: JP Morgan CIO Survey March 2012
of CIO’s to increase spending on SaaS in 2012
Scalability
Business Agility
Cost
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other
57%
3Big Cloud Drivers
Scalability
Business Agility
Cost
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other
57%
3Big Cloud Drivers
Scalability
Business Agility
Cost
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other
57%
3Big Cloud Drivers
Scalability
Business Agility
Cost
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other
57%
3Big Cloud Drivers
Scalability
Business Agility
Cost
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other
57%
3Big Cloud Drivers
2. SaaS rules.
PaaS pops.
All ready?
67%
19%
14%
Already Do
No
1-12 mo.
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011
Plan on deploying
SaaS Applications?
using SaaS today
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011
percent of net new software will be SaaS.
83%
building software with PaaS by 2017
From 2012
matters
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
Internal Hybrid Public
SaaS
PaaS
IaaS
Clouds will blow with the winds of change
4. The mission is critical.
TOO RISKY
3%
 Data sovereignty
 Patriot Act
10% in 2011
NEEDS TO MATURE
12%
26% in 2011
 Security
 Compliance
EXPERIMENTING
34%
 Concept
 Trial
 Expand / Dispose
40% in 2011
13% in 2011
COMPLETE CONFIDENCE
The mission ...
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Vendors Customers
Complete Confidence
Experimenting
Needs to Mature
Too Risky
0%
100%
56%
37%
56% 37%
Vendor User
56% 37%
Vendor User
56% 37%
Vendor User
Incomplete Value
Propositions
Business benefits
Case studies
Proof
ROI
6. We have
work to do.
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other
55%
What’s inhibiting adoption?
What’s inhibiting adoption?
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other
55%
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other
55%
What’s inhibiting adoption?
Lack of Transparency
Lack of Standards
Lack of Integration
Lack of Skills
What’s inhibiting adoption?
What’s inhibiting adoption?
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other specified
Expense
Other unspecified
55%
7. Racing into the future.
predictions are tricky, especially when they involve the future
Before After
Cloud
Washed
Cloud
Formed
Before After
Media & Entertainment
Formations…
Media & Entertainment
Social,
Collaboration
Media & Entertainment
Mobile
(+ Location)
Social,
Collaboration
eCommerce
(+ Payments)
Media & Entertainment
Mobile
(+ Location)
Social,
Collaboration
Big Data
(+ Analytics)
eCommerce
(+ Payments)
Media & Entertainment
Mobile
(+ Location)
Social,
Collaboration
Big Data
(+ Analytics)
eCommerce
(+ Payments)
Media & Entertainment
Mobile
(+ Location)
Social,
Collaboration
Backup, Archiving, DR, BC
Collaboration
Analytics
rain makers
54
Users
Vendors
8. Investment is
rocking.
Japan’sKodoDrummers
Venture Cloud Financing in 2010: $1.6 Billion
Source: Venture Source April, 2012
Venture Cloud Financing in 2011: $2.4 Billion
Source: Venture Source April, 2012
$Bn +
WHATwe learned
1. Software = Cloud
2. SaaS rules. PaaS pops.
3. Time to plug in your hybrid.
4. The mission is critical.
5. IT is riding the wave.
6. We still have work to do.
7. Racing into the future.
8. Investment is rocking.
FUTURE OF CLOUD COMPUTING
2012
Northbridge.com
@North_Bridge
@FutureofCloud

2012 Future of Cloud Study

Editor's Notes

  • #5 http://www.southwestclimbers.com/wedding/Assets/images/Honeymoon/Chamonix/images/42%20Mountains%20in%20the%20clouds%20near%20Aiguille%20du%20Midi_JPG.jpg
  • #9 People like the convenience of using software in the cloud, and paying as they go
  • #10 And it’s getting a disproportionate amount of attention
  • #11  Big Data is big news – but what does it mean CRM is old news eCommerce is THE news – it’s mission critical Interesting HR is below the line – many of the original SaaS players were in HR like Taleo, Success Factors
  • #12 Because they are seeing the benefits 2/3 of these CIO’s is 10,000 or more employees – SaaS has broken into the enterprise
  • #13 Competitive advantage is 7th, surprising for an early market Only 6% have an internal mandate
  • #14 Competitive advantage is 7th, surprising for an early market Only 6% have an internal mandate
  • #15 Competitive advantage is 7th, surprising for an early market Only 6% have an internal mandate
  • #16 Competitive advantage is 7th, surprising for an early market Only 6% have an internal mandate
  • #17 Competitive advantage is 7th, surprising for an early market Only 6% have an internal mandate
  • #20 The value is in the application and solving the business problem
  • #22 PaaS Always a need for custom software Differentiation Competitive advantage Industry specific – eg Government Widely differing views:- Forrester Research estimates the PaaS market size to be $9.8B by 2015 – 86% CAGR Gartner estimates the PaaS Market opportunity to be $1.7B by 2015 – 26% CAGR From our portfolio Acquia CAGR through 2012 is 186% Drivers: reduced complexity, Need for optimization – eg certain stacks PHP – Acquia Ruby – Engine Yard Java – CloudBees
  • #23  Economies of scale Capacity for elasticity internal or need hybrid or public?
  • #26 PaaS will get squeezed Hybrid is a phase
  • #27 PaaS will get squeezed Hybrid is a phase
  • #28 PaaS will get squeezed Hybrid is a phase
  • #29 PaaS will get squeezed Hybrid is a phase Redhat reinventing itself as a cloud company…
  • #33 Develop Test
  • #49 Netflix Initially web ordering, physical delivery Then Web Then all devices, mobile, gaming, Roku, AppleTV, Because the value is the media & cloud is the delivery
  • #50 Collaboration Up and down the supply chain Tighter inventory control Social CRM, marketing, sales, service &s upport Closer customer connection Greater loyalty
  • #55 Cloud services: Consistent with early Cloud Formations are for Analytics & Big Data and Collaboration
  • #56 Image: http://gondwanasound.com/news/2010/12/07/japans-kodo-drummers-celebrate-30-years-new-album-akatsuki-and-north-american-tour
  • #58 Up 50%
  • #60 Connecting the dots Concerns around security and compliance will drive private cloud Scale will drive public cloud Private instances of Public cloud ?