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Over 90% of IT executives expect to use cloud based services over the next five years.

We expect over $1 trillion of market value to shift from legacy technology vendors to cloud based vendors.

Cloud computing is one of the most disruptive trends in technology in history

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Amazon CloudFront vs. Akamai, Limelight and Level 3Speed of delivery and performance are key principles behind Amazon’s CDN service, proven by customer and third-party testing, ranking Amazon CloudFront as an industry-leading top-tier CDN. Although Amazon will have a difficult time winning clients away from Akamai directly, they can do it indirectly through AWS. When companies sign up for AWS, the CloudFront product is a few clicks away. So as long as Amazon continues to grow its AWS business, it will sign up more CDN customers by default.

Open Compute Platform vs. Cisco, Juniper, Extreme, Qlogic, BrocadeFacebook has built its own networking switches, the hardware devices that shuttle information from machine to machine. Traditionally, networking hardware from companies such as Cisco and Juniper has been expensive and difficult to program. But led by Google, Facebook, and others, we’re now moving toward a world where building networks is far easier and far cheaper.

Amazon Aurora + Microsoft SQL vs. Oracle: “provides up to five times better performance than MySQL at a price point one-tenth that of a commercial database while delivering similar performance and availability.”

Amazon EC2 vs. VM WareAmazon Web Services has launched a management console that could make it easier to port VMware virtual machines into the cloud. The move could put Amazon Web Services and VMware on a collision course in the years ahead.

Amazon QuickSight vs. Tableau, Qlik, Microstrategy, Domo, IBM (Cognos) and SAP (Business Objects)Amazon announces QuickSight, a new BI and analytics data management platform. BI pros will need to pay close attention, because this new platform is inexpensive at just $9 per month (Tableau is $200/month), highly scalable, and has the potential to disrupt the BI vendor landscape.

Cloud storage vs. EMC, DELL, Netapp, Hitachi: The public vs private cloud battle is decided as enterprise storage spend shifts dramatically away from EMC, NetApp, IBM et al towards Amazon, Microsoft. The surge to the cloud will see both Amazon Web Services (AWS) and Microsoft become top five storage vendors by 2017, as spending on public cloud storage doubles to more than 17% of total enterprise storage spending by 2017.

Amazon ELB (Elastic Load Balancing) vs. F5ELB: Cheap and easy, basic functionality. Honda Accord F5: Expensive and complex, expansive functionality. Tesla RoadsterThe ELB is all most people need, so there's no reason to pay $26k for F5 licenses when you can pay ~$14/month for an ELB.

You won’t find any Cisco, Juniper, EMC, Netapp, HP, Teradata or VM Ware in an Amazon, Google or Facebook data centerEMC CEO; Joe Tucci on the Dell merger: “The waves of change we now see in our industry

are unprecedented and, to navigate this change, we must create a new company for a new era.”

Next Generation Data Centers leverage Open Source

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70% of businesses surveyed said they consider Open Source options before proprietary software alternatives

Apple has decided not to renew an expiring VMware enterprise licensing agreement and will be stepping up deployment of KVM, an open-source alternative to VMware server virtualization

Facebook: “we now encourage our engineering teams to work on open source projects in the open by default, using GitHub, Bitbucket or Apache Software Foundation projects as the source of truth.”

Tesla: “ Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”

Open source advocates Google + Facebook + Amazon will spend nearly 2x the amount on Research and Development vs. “proprietary” vendors Microsoft + IBM + Oracle in 2017; close to $40 billion

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Open source drivers Force multiplier effect leads to more robust and flexible code Modular architecture improves efficiency and lowers customization

costs Unlimited resources

100% of software engineers utilize open source technologies. Not just a hobby, +50% of open source code is created by IT engineers during work hours.

Google, Facebook and Amazon are subsidizing global software development by helping to drive open source technology initiatives There were close to 4,000 developers contributing over 20 million

lines of code and 50,000 commits in 2015 to Facebook’s source code with the majority of developers are externalSome Examples of Facebook Open Source projects which are already widely adopted:

React – a user friendly JavaScript library for building applications and user interfaces Netflix, Adobe, Pinterest

RocksDB – RocksDB powers critical services at companies such as LinkedIn and Yahoo, and a key focus for us this year was to bring the RocksDB storage engine to general-purpose databases, starting with MongoDB.

Airbnb, LinkedIN, Yahoo HipHop for PHP (HHVM) –high performance virtual machine yielding 50% faster web page load

times and 300% latency reduction Etsy, Baidu, Wikipedia, Box

Presto – SQL engine optimized for low-latency interactive analysis Airbnb, Dropbox, Teradata, Netflix, and MongoDB

https://github.com/ripienaar/free-for-dev

Open source and collaborative development has forever changed software economics

Who wins? Platform, integration and application companies Technology platform companies who can leverage open source technologies,

machine learning and take advantage of crowdsourced data will command the highest valuations

Eric Schmidt: “This model, cloud computing, crowdsourced data, machine learning will be the basis and fundamentals of every successful huge IPO win in 5 years.”

Companies who rely purely on proprietary software and point solutions or who are not within 18 - 24 months of operating cash flow break even will likely struggle Technology innovators...

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