2011 north bridge future of cloud computing study
TRANSCRIPT
Gigaom Structure : June 22, 2011
FUTURE OF CLOUD LEADERSHIP PANEL
www.NorthBridge.com
Michael Skok
General Partner
Leadership Panel
2
Dries Buytaert
CTO & FounderPresident
Lew Moorman
John Dillon
CEO
Marten Mickos
CEO
@Dries @LewMoorman
@JohnDillon @EntreCapitalist @MartenMickos
www.NorthBridge.com 3
Agenda
www.NorthBridge.com
Enterprise Cloud Computing Definitions
4
SaaS[application]
PaaS[platform]
IaaS[infrastructure]
Storage Compute Network
Dev Tools Frameworks Management
CRM
Web / Mobile
ApplicationsSales Force
Automation
Blogs
Content
Management
Marketing Payroll
Office
Productivity
SURVEY BACKGROUND
6
www.FutureCloudComputing.net
www.NorthBridge.com
Survey Partners & Collaborators
7
www.NorthBridge.com
Who took the survey?
8
46%
vendors
54%
non-vendors
417Total Responses
www.NorthBridge.com
Who took the survey?
9
www.NorthBridge.com
Survey Respondents
10
Firms
9k
100k
6M
>1000
Enterprise
100-1000 employees
Mid-Market
<100 employees
Small
Source: 2007 US Census Bureau; IDC, Salesforce.com
Survey
Respondents
14%
18%
68%
OnPremise
Stronghold
OnDemand
Stronghold
= Cloud Market
www.NorthBridge.com 11
What would you like to
hear about cloud
computing?
Usage… today
Drivers,
Inhibitors
… for the future
www.NorthBridge.com
How do Customers Characterize their Approach to
Using Cloud Computing Today?
12
Experimenting
Waiting to mature
Complete confidence for
mission critical applications
Using for usage spikes
Will never use, too risky10%
26%
40%
11%
13%
www.NorthBridge.com
LIVE Vote!
Txt Your Vote to 22333
13
How would you characterize your approach
to utilizing cloud infrastructure today for
mission critical business applications and
processes?
“toorisky”Never, cloud too risky……….
Waiting for cloud to mature…“waiting”
Experimenting…..……………“experiment”
For usage spikes…………….“spikes”
Complete confidence………..“complete”
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Months Using Cloud
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0%
5%
10%
15%
20%
25%
30%
35%
40%
3 10 12 18 24 36 48 60
Months
Responses
Average
Months
Using Cloud20
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LIVE Vote!
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What are the most important drivers
to adopting Cloud Computing?
“cost”Cost………………….
Agility……………….. “agility”
Mobility…..…………. “gomobile”
CapEx to OpEx….… “capex”
Scalability…………...“scale”
Pace of Innovation…“pace”
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Agility Scalability Cost Efficiency Innovation Capex toOpex
Competitive Mobility Other CustomerDemand
Cloud APIs
Drivers For Cloud Adoption
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47%
263%100%
113%
64%
Now vs. 5 years
www.NorthBridge.com
Inhibitors to Adoption… What is Top-of-Mind?
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2%
3%
6%
10%
11%
11%
12%
12%
13%
20% Security
Compliance
Vendor Lock-in
Interoperability
Reliability
Complexity
Privacy
Pricing
Expense
Other
www.NorthBridge.com
What is the Strategy of Cloud Customers Today?
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Hybrid39%
Public37%
Private24%
… in the Future?
21%
12%
27%
42%
www.NorthBridge.com 20
Cloud Computing TCO is…
29%
www.NorthBridge.com 21
Cloud Computing TCO is…
57%
29%
14%
www.NorthBridge.com
Impact of Cloud Computing on IT Manageability?
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More ComplexLess Complex No Impact
39% 39%22%
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What is the Impact of Cloud Computing on Hiring?
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No Impact42%
Increased10%
Expected increase
22%
Decreased17%
Expected decrease
9%
26%Decrease
32%Increased
42%None
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Top Up and Coming Cloud Companies?
24
PU
BLIC
PR
IVA
TE
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Cloud Investments
26
2009
2010
2011
64deals
93deals
$482M
$713M
??
Source: Dow Jones Company
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What Services do Vendors feel they need to provide for
use in the Future?
32
www.NorthBridge.com 33
Most Likely sectors disrupted by
Cloud Computing over the next 5 years
www.NorthBridge.com
Cloud Revenue Projections ($m)
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$6,891
$8,814
$11,296
$14,104
$17,538
$21,057
$-
$5,000
$10,000
$15,000
$20,000
$25,000
2009 2010 2011 2012 2013 2014
Iaas, Paas & SaaS Revenue
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LIVE Vote!
Txt Your Vote to 22333
36
In 5 years, what percentage of your
computing will be in the Cloud?
“25perc”0-25%…………….…
26-50%…………….. “50perc”
51-75%…..……..….. “75perc”
76-100%….…………“100perc”
“nothing”None..…………….…
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What % of Your Computing is in the Cloud Today?
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None
25%
50%
100%23%
34%
26%
14%
3%
17%
22%
14%
38%
10%
75%
today
+5 yrs
…in +5 Years?
75% predict
2/3rds of computing
will be in the Cloud!
www.NorthBridge.com 38
You asked for it – we covered it…
Cloud usage… today
Drivers
Inhibitors … for the future
Full details of the
survey, plus thought
leadership…
http://www.northbridge.com/cloud-computing
@futureofcloud
www.NorthBridge.com
Cloud Storm is Brewing!
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• 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.NorthBridge.com
A big thank you from North Bridge to…
40
Dries Buytaert
CTO & Founder President
Lew MoormanJohn Dillon
CEO
Marten Mickos
CEO