Understanding Current Cloud Market Drivers and Responses
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1 Understanding Current Cloud Market Drivers and Responses Thomas Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
2 The Change That Demands a Response The pervasive continuity of the personal and business computing, emergence of Citizen IT Explosion of digital social activities and collaborations Internet of Things brings OT close to IT, devices close to software systems The death of the 9 to 5 work day (always-on decision making) Imperative of rapid innovation and change Contextual, personal, cloud-backed, mobile applications, apps Technological advances allow real-time analytics and realtime complex event processing NoSQL, Hadoop and the gradual isolation of the relational model Web scale and ubiquity of cloud services and resources
3 PaaS at the Peak of Inflated Expectations expectations Integration PaaS (ipaas) bpmpaas Private PaaS Portal PaaS Cloud-Enabled Application Platform (CEAP) Cloud Managed File Transfer Services Cloud API Management ADLM PaaS Platform as a Service in China Cloud Mobile Back-End Services Cloud-Enabled Integration Platforms (CEIPs) Platform as a Service (PaaS) IaaS+ Application PaaS (apaas) Elastic Multitenancy Database Platform as a Service (dbpaas) Software as a Service (SaaS) Cloud Event Processing Services Cloud MDM Hub Services Cloud IMDG Services Business Analytics PaaS (bapaas) Infrastructure as a Service (IaaS) Innovation Trigger Peak of Inflated Expectations Plateau will be reached in: Trough of Disillusionment time Slope of Enlightenment less than 2 years 2 to 5 years 5 to 10 years more than 10 years As of July 2013 Plateau of Productivity obsolete before plateau From "Hype Cycle for Platform as a Service (PaaS), 2013," 31 July 2013, G
4 Your Current Architecture May Be Woefully Obsolete Applications created in 2013 using traditional architecture models will be an IT-constraining legacy by 2016 The leading business applications of 2016 are currently designed using nexus-ready application architecture principles
5 The Next Application Architecture Must Serve the Next Business Outcomes Nexus Ready Context Aware Data Modeling Process Modeling Decision Modeling Real Time Person Centric Observe Orient Events Act Decide
6 Consumers Now Drive IT PC Client/Server Web Nexus The Computer Gets Personal Data Without Programmers Instant WW Information The Consumer Takes Control 80s 90s 00s 10s and Consumers Now Define Quality
7 Employees Don't Stop Being Consumers No Longer "Users" Consumers at "Work" Information Rich IT-averse Team Motivations Self-directed
8 Cloud Computing Lets You Focus IaaS Compute Power Available in Cloud as a Utility like Electricity Generation Your applications run like always PaaS Cloud Platforms that support building new Software and Simplifying Collaboration and Deployment Think Telephony Services SaaS Software Built and Optimized for Cloud that you Consume Anywhere, As You Need We Don t Generate Our Own Electricity or Run Our Own Telephone Network 7
9 Improving The Business/IT Conversation New Ideas Better Ideas Business Leader Common Ideas Apps/IT Leader One Size Fits All
10 How Do Other "Systems" in Industry Deal With Varying Rates of Change? Pace Layering/Shearing Layers Structure: Skin: Space Plan: Services: Years 20 Years 3 30 Years 7 15 Years Stuff: 1 Day to 1 Month Site: Eternal Note: For more on pace layers and shearing layers in building architecture see How Buildings Learn (1994) by Stewart Brand
11 A Pace Layered View of Systems New Ideas Better Ideas Systems of Innovation Systems of Differentiation Systems of Record Common Ideas
12 Think Nexus-ready Architecture: The Future Is Closer Than It Appears Think Mobile: Consider user in context Consumer-grade user experience Loosely coupled (service oriented) Frequently changed Fast attrition Intermittent access Reduced chattiness Minimal message sizes Think Cloud: Service oriented Loosely coupled Stateless and "hoardless" Multitenant ready Event driven Continuously versionable Parallel and in-memory ready Instrumented for governance Low chattiness Frugal use of resources Industrially packaged Platform independent Composed and composable Public access ready
13 Public Cloud Services Market Is a Fraction of the Overall IT Spending 5,000 4,500 4,000 3,500 Public cloud services market grows from 3% to 5% of overall IT spending Billions of Dollars Billions of Dollars CAGR 4% CAGR 17% 3, ,500 2, ,500 1, Overall IT Spending Public Cloud Services Public Cloud Services Source: Forecast: Public Cloud Services, Worldwide, , 1Q13 Update, Mar 2013 (G )
14 and yet Everybody Wants in: Enterprise Cloud Computing Bazaar Consumer markets vendors Middleware vendors Hosting and outsourcing vendors Hardware vendors Telco. vendors Platform vendors Enterprise Cloud Application vendors IaaS vendors System integrators
15 Public PaaS Market Is a Fraction of the SaaS and IaaS Markets Billions of Dollars 40.0 Five-year CAGR ( ) SaaS PaaS IaaS 18.5% 23.5% 37.8% Cloud Application Infrastructure Services (PaaS) Total Cloud Application Services (SaaS) Total Cloud System Infrastructure Services (IaaS) Total Source: Forecast: Public Cloud Services, Worldwide, , 1Q13 Update, Mar 2013 (G )
16 and yet Everybody Wants in: The Diverse Public PaaS Marketplace IBM WebSphere Cast Iron Live Application PaaS ADLM PaaS Messaging Services Portal/UX PaaS Covicint Portal Integration PaaS apaas ipaas Business Analytics PaaS BPM PaaS bpmpaas IMDG Services Cache ElastiCache SQL Database Database PaaS API/Service Governance Mobile Back-end Services Event Streaming Services Source: "Platform as a Service: Definition, Taxonomy and Vendor Landscape, 201
17 The Old Architecture Does Not Measure Up Monolithic design Over-provisioning and hoarding of resources Stateful No support of parallel or in-memory computing Not open for programmatic access Tightly coupled Not modular Assumes predictable connectivity Not designed for 24/7 use Discontinuous versioning Not horizontally scalable Not instrumented for introspection Single-channel front-end Complex Expensive Locked into proprietary frameworks, platforms, and vendors
18 Cloud vs. Enterprise: Vendors Must Master Both to Lead Cloud natives: apaas Enterprise natives: apinso appeleon AppPoint AppsOnAzure Caspio Bridge CloudBees cloudcontrol dotcloud Engine Yard Cloud Fhoster Platform Google App Engine Indra Gnubila OrangeScape Cloud salesforce.com (Heroku)* and Force.com TrackVia Application Platform Wolf OnDemand Public Cloud WSO2 StratosLive Zoho Creator IBM SmartCloud Application Services IS Tools Hosted Platform Mendix App Platform Microsoft Windows Azure Cloud Services MioSoft MioEdge OpenText (Cordys Cloud)* Oracle Java Cloud Service (limited access) Pramati (WaveMaker)*: CloudJee Progress Software Rollbase Hosted Cloud (Rollbase)* Red Hat (OpenShift Online) SAP HANA Cloud Platform AppServices ServiceNow PaaS Software AG AgileApps Live (LongJump)* *acquisition
19 Design for Continuous Delivery Cloud Providers IT Operations IT Developers Continuous Development Integration Operations OT Engineers Citizen Developers Business Partners
20 The Bottom Line 1: Mind Your Architecture Nexus-ready Architecture Principles 1. Build on SOA Plan for modular, distributable, discoverable, shareable, and replaceable services 2. Cloud first, mobile first Avoid instant-legacy applications, plan "future-first" 3. Separation of concerns Separate services by role, cadence, semantics, and scope 4. Business-out design Establish core business services before designing clients and sources 5. Hybrid Business Solutions Design into a network local, multi-site, and global 6. Event-driven architecture Implement event processing for real-time operations 7. Context-aware computing Seek context for situation-aware intelligent operations 8. Managed service ecosystem Control your ecosystem of resources 9. Global class Be ready to consume and provide global services 10. Continuous delivery Manage the life cycle of continuous change
21 The Bottom Line 2: People First Cultural Change Fight the Not-invented-here Syndrome Socialize, Listen, and Be Transparent Avoid Stovepipe Projects and Applications Be Systematically Opportunistic Avoid Rigid Policies: Plan, Act, Learn, and Change Think Integrated Business (All Business Is IT Business)
22 Recommended Gartner Research The Nexus Effect and How the Nexus of Forces Alters Established Architecture Models Yefim V. Natis (G ) Ten Ways to Avoid SaaS Delivery Problems and Protect Your Organization Toolkit: SaaS Security Decision Framework Don't Believe the Hype: SaaS Only Reduces Part of the Effort Needed to Implement and Operate Business Applications Risks and Opportunities of PaaS at the Peak of Inflated Expectations Calculating and Comparing Public Cloud IaaS Costs For more information, stop by Gartner Research Zone.
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