BTC LOGIC RANKS: TOP 10 CLOUD COMPANIES Q1 2010
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1 BTC LOGIC RANKS: TOP 10 CLOUD COMPANIES Q Report Overview BTC Logic is an inter-disciplinary team of business, technology, and creative professionals employing proven methodologies to harness technology disruptions that enable organizations to create competitive advantage at critical inflection points. Because Cloud Computing offers a unique opportunity for our clients to reduce costs by leveraging Cloud services and generate new revenue by expanding their presence in the Cloud, BTC Logic has developed a multi-variable, trademarked ranking database of over 600 companies offering a Cloud product or service. We employ this database to help our clients select and engage with appropriate vendors, and enable our business partners to define their businesses and engage strategically in a dynamic, global Cloud Computing marketplace. The contents of this report, derived from our database and its analysis, are different from previously published lists in three important respects. 1. We take the viewpoint of an enterprise leader, decision maker, or key influencer who is plotting a course to get their enterprise more involved in the Cloud: Enterprises have significant concerns about availability, security and scalability that can differ from consumer or SMB needs Decision makers need to link emerging Cloud technologies to their companies strategies and performance 2. We are vendor neutral: Most of today s information and insight regarding the Cloud has come from vendors who have inherent biases to their own solutions BTC Logic is an independent and autonomous group of business, technology and creative professionals with no internal bias regarding the Cloud and its opportunities and services 3. We divide the Cloud marketplace into meaningful segments and sub-segment for our enterprise clients: This approach helps enterprise leaders and decision makers accelerate decision-making and consensus building Enterprise leaders can break down problems they are solving along the Contents Overview Report Contents Cloud Computing Process and Definitions Cloud Infrastructure Infrastructure Rankings Cloud Foundation Foundation Rankings Network Services Network Services Rankings Cloud Platform Cloud Platform Rankings Cloud Applications Cloud Application Rankings Summary About BTC Logic
2 lines of the major segments and sub-segments, allowing the organization to move forward more quickly to move forward more quickly. Ranking Cloud Companies for the Enterprise Enterprise leaders and decision makers must align overall business goals and goals for the Cloud before committing significant investment dollars. In this report, BTC Logic breaks down the Cloud market into five primary segments, recognizing that these are the segments where key investment decisions need to be made. Understanding these segments allows enterprises to simultaneously classify company service offerings in a meaningful way, and have a top-down view of the Cloud Computing market place. Our decision to publicize the rankings is based on several factors, most prominently being that there are now hundreds of companies promoting Cloud products and services. As an enterprise prioritizes and evaluates numerous Cloud vendors, our goal is to support fact-based decision making and separate spin from reality. This report is intended to provide a more informed starting point for all enterprises looking to move forward into the Cloud. Background on Cloud Computing Today, it is clear that Cloud Computing is evolving beyond Services Oriented Architecture (SOA) or Software-as-a-Service (SaaS), while embracing both of these technology trends. It is also clear that being in the Cloud offers enterprises a way to test and launch new services more quickly than has been possible in the past and to reduce the costs of managing data and applications. IDC has estimated that the worldwide spend on Cloud Computing will rise to over $42 billion by The bulk of this will be on business applications using wellknown Cloud names such as Salesforce, Taleo or NetSuite. IDC points out that over $20 billion will be spent on Cloud Infrastructure and Cloud Foundation tools for the enterprise. This is where decision-making often becomes more confusing and more complicated. Cloud Computing is creating new competitors for service providers to the enterprise data centers. Cloud service offerings from large companies like Amazon, Google, and Salesforce, and from newer companies like 3Leaf Systems, 3Tera and Boomi, are competing for investment dollars with traditional vendors such as IBM, HP and Microsoft. The traditional vendors are fighting back with Cloud solutions of their own. The right solution for an enterprise will be driven by the company s strategy and business goals. Additional factors that should be considered include vendor competence in meeting these business goals, previous technology decisions, and internal factors like compliance issues and regulation on how data is stored and handled. 2
3 In this report we identify the five key Cloud technology segments and rank the Top Ten players in each as we see them today. Because these segments can be further broken down into sub-segments that are more meaningful in the context of a particular enterprise challenge, we have also provided here our selection criteria within the segments. Rankings Process and Definitions The process we use to generate our rankings involves several steps, including the creation of a proprietary database of nearly all companies claiming to offer a Cloud product or service. Each of these companies is then classified into Cloud segments and sub-segments. We recognize that vendors can have multiple offerings that cross different segments and sub-segments. We break out these services into multiple offerings. An example of one enterprise that has multiple offerings is Microsoft. We recognize that certain enterprise decisions preclude working with other vendors and may or may not cause issues when trying to add Cloud capabilities to existing data centers or use Cloud capabilities to replace existing data center functions. For example, a decision to go with IBM Cloudburst, Amazon AWS, or Microsoft Azure may be justified based on prior data center decisions; however, it could prove more limiting than a decision to go with Boomi because of Boomi s greater flexibility in accommodating other elements of a cloud foundation. Decision-making within a particular enterprise needs to be strategic and built on previous decisions regarding data centers and investment in staff skills, and as a result any one of the leading vendors in the Top Ten may prove to be the right decision. Our Top Ten rankings reflect the likely order that a typical enterprise may want to engage with vendors for information and advice, and to test internal perspectives on technology choices. BTC Logic can of course help with managing the vendor evaluation process and make sure that it maps to enterprise technical and business needs and goals. BTC Logic divided the Cloud world into a framework made up of five primary segments: Cloud Infrastructure Cloud Foundation Network Services Cloud Platform Cloud Applications Our framework provides a solid point of entry for enterprises to begin evaluating vendors in a systematic way. Our segmentation of the Cloud space is essential to the value of the rankings. It would degrade the rankings to directly compare companies like Rackspace, CA s 3Tera and Citrix s Xen against each other as they offer fundamentally different services. 3
4 We recognize that the segments in our framework can be further broken down into relevant sub-segments within which additional vendors stand out. For example, within platforms, vendors can be further broken out into horizontal development, vertical development, media platforms, test environments, etc., and depending on the enterprise need other vendors beyond these Top Ten lists may complement baseline solutions. One of the greatest challenges in our ranking exercise falls within the Cloud Applications segment, where we have to choose between business activities as well as between companies. For example, Taleo makes the Top Ten Cloud Applications while Zoho does not, but Zoho falls comfortably within the top ten CRM Applications available in the Cloud. 4
5 Cloud Infrastructure The Cloud Infrastructure segment includes those vendors who can provide Cloud infrastructure as a solution in the scalable, cost effective way described above. 3Leaf Systems tops this category; it allows for the greatest agility in developing an entire Cloud ecosystem, and the ability to integrate Cloud services with other vendors so as to ultimately run platforms and applications cheaply and efficiently. IBM Cloudburst represents a well integrated set of Cloud services for an enterprise and IBM has invested considerably in delivering private and hybrid Clouds, but is ranked second because a decision to go with IBM Cloudburst forces the Platform decision and impedes an enterprise from realizing any benefits of working with other platform vendors. We define Cloud Infrastructure based on features, regardless if the solution is infrastructure as a service or delivered directly, and use publicly available information pertaining to these ranking criteria: Agility in delivery of cloud infrastructure Ability to deliver public, private and hybrid Clouds Ability to integrate the Cloud services with a diverse set vendors (vs. being locked into a proprietary platform) Ability to provide Cloud infrastructure as a turnkey solution Degree to which the Cloud infrastructure services can be integrated for an enterprise Cost effectiveness Device independence Tenancy that enables sharing of resources, permitting º º Multi tenancy º º Single tenancy º º Utilization and efficient resource allocation Attainable reliability Available scalability Security that fits an enterprise perspective Metering Maintainability Top Ten Cloud Infrastructure Companies 1. 3Leaf Systems Dynamic Data Center 2. IBM Cloudburst 3. Amazon Web Services EC2/VPC 4. Terremark Enterprise Cloud 5. Sun Microsystems Open Cloud Initiative 6. Hewlett-Packard HP Cloud Assure 7. Rackspace Hosting Cloud Files/Servers/Sites 8. Google Postini 9. AT&T Synaptic 10. SpringSource Hyperic CloudStatus 5
6 Cloud Foundation The Cloud Foundation segment includes those companies providing the tools and software that make building the Cloud infrastructure possible. It is fair to say that VMware and Red Hat are currently the clear leaders in this category, and both need to be evaluated as part of any Foundation decisions. VMware is directly associated with the virtualization of servers for most people and hence has risen to the top of the list. Red Hat is associated with open source and its Enterprise Linux product, but has developed its own virtualization software that works well. Both of these companies also have their own ecosystem of support services within and outside their respective companies. We define Cloud Foundation by following the examples set by Project Reservoir, the European joint program with IBM, ElsagDatamat, CETIC, OGF.eeig, SAP Research, Sun Microsystems, Telefonica I+D, Thales, Umea University, University College of London, DSA-Research at Universidad Complutense de Madrid, University of Lugano and University of Messina: The definition considers what technologies enable deployment and management of complex IT services acrossdissimilar administrative domains Cloud Foundation products and services needed to support the developing open standards of Cloud Computing, allowing the enterprise to build its own private, public and hybrid Clouds We examine solutions that understand Cloud Computing as a complex service, potentially containing groups of interconnected virtual machines with variable purposes that can run acrossdifferent computing environments, using complex network services, and running a diverse set of applications Consequently, we rank Cloud Foundation offeringsutilizing publicly available information pertaining to these criteria: Ability to integrate with other cloud segments, providing the groundwork of any fundamental cloud decision Analysis of foundation s performance in creating various Cloud configurations Software development and performance analysis as a foundation Strength of the foundation s ecosystem of supporting companies, willing platform and infrastructure providers Strength of relevant offerings in market place today Basic foundational support services Top Ten Cloud Foundation Companies 1. VMware vcloud, vsphere, ESXi 2. Red Hat Enterprise Virtualization, Enterprise Linux, JBoss 3. Citrix Systems XenServer, Xen Cloud Platform 4. Eucalyptus Systems Eucalyptus, EE, Services 5. rpath rpath, rbuilder 6. 3tera Cloudware, AppLogic 7. Microsoft Corporation Hyper-V 8. EMC Corporation Atmos 9. Apache Software Foundation Hadoop 10. Appistry CloudIQ Manager 6
7 Network Services The Network Services segment is the interconnection between all players and provides services on the network to satisfy the enterprise business needs. Choices about network services are largely independent from the choices about Cloud Foundation, Infrastructure, Platform and Applications. It is well worth conducting a competitive tender among several suppliers once network service needs are defined. The Cloud Network Services segment includes the companies that you would expect to see, including Cisco, IBM, HP, Verizon and AT&T, but also ranks new competitors that have invested heavily in this space, such as Amazon. We define Network Services as the communication components that combine with Cloud foundation and infrastructure to form a Cloud architecture: While we do not take a hardware point of view, we utilize various network topologies to reveal how Network Service solutions enable private, hybrid and public interconnections We examine solutions that take advantage of existing efficient network services offered on the internet We examine Network Services abstracted from the MUXs, cables, routers, switches, network management solutions and servers, and focused on solutions that make the interconnection possible, reliable, scalable and efficient We rank Network Services utilizing publicly available information pertaining to this criteria list: Architecture Benchmarked performance Existing momentum in the network services segment Failover, disaster recovery plans Performance, scalability, and reliability Planning for seasonal and holiday spikes in web traffic Quantitative analysis of services Service management platform for networks Software development analysis Specific business problems addressed Strength of investment in space and resulting breadth of offering Ability to upgrade or virtualize infrastructures over network services Top Ten Network Services Companies 1. Level 3 Communications Cloud Computing Services 2. OpenVPN Technologies OpenVPN 3. Amazon Web Services CloudFront 4. Cisco Systems Unified Computing Systems 5. IBM Network Services 6. Hewlett-Packard HP Network Services 7. Radware AppDirector 8. Aylus Networks Mediashare Platform 9. Verizon Communications Verizon Network Services 10. AT&T Network Services 7
8 Cloud Platform The Cloud Platform segment covers on-demand platforms in the Cloud, allowing for quicker development and deployment of applications. IBM Cloudburst is pushed into second place in this group behind Boomi because a decision to use Cloudburst forces a company into the IBM ecosystem and precludes working with a number of other vendors. Enterprises should look closely at the top four in this category to gain an understanding of the differences between them, as well as form an appreciation for the challenges of migrating to a different platform at a later dateand the ramifications of their choice on other aspects of Cloud decision making. Finally, we examined the platform in terms of Cloud Foundation, Infrastructure and Network services. We define Cloud Platform as the service that provides on demand computing resources: A Cloud Platform will allocate new storage space, additional bandwidth and additional CPUs, as needed We examine Cloud Platforms as computing installations to reduce administrative chores and provide more dynamic server environments than traditional solutions We examine Cloud Platform solutions as they solve the problem of planning for peak demand We examine Cloud Platform solutions in terms of their ability to manage periods of peak demand. As part of that, we review how additional computing resources might be transparently provided by the Cloud Platform solution We review Cloud Platform design based on the principle of a scalable architecture that can be used in the Cloud Computing environment Top Ten Cloud Platform Companies 1. Boomi AtomSphere 2. IBM Cloudburst 3. Amazon Web Services EC2 4. Engine Yard Engine Yard Cloud/Private Cloud 5. Sun Microsystems Direct Link 6. Google AppEngine 7. Salesforce.com Force. com 8. NetSuite SuiteCloud 9. Rackspace Hosting Cloud Services/Sites/Files 10. Microsoft Corporation Azure Services Platform We rankcloud Platform using publicly available information for this list of criteria: Ability to allow for rapid development and deployment of applications Ability to integrate the platform services with other vendors (vs. being locked into a proprietary platform) Agility of platform under different scenarios Co-exist with other platforms Failover, disaster recovery plans Fit for enterprise customers Performance measurements Quantitative analysis of platform modeling and platform as a service Review of architecture Software development analysis 8
9 Cloud Applications The Cloud Applications segment covers a wide range of possible solutions such as CRM, HR, and document management, and actual choices will depend on what an enterprise is seeking to achieve in the Cloud. Given that applications represent well over half of the predicted Cloud spend, it is necessary to break out this segment into its sub-segments and look at the competitive offerings within these sub-segments. BTC Logic can provide further detail here, but it is beyond the scope of this report. For example, Salesforce is an excellent Cloud-based CRM solution and is creating its own ecosystem of support companies such as Jitterbit, but there are several other competitors e.g. Zoho who may offer a cheaper or more appropriate choice for a particular enterprise. We define Cloud Applications delivered as a service (SaaS) or directly over the Cloud Computing architecture: We ruled out Cloud Applications that do not eliminate the need to install and run on dedicated or local computers. We looked at design decisions that allowed installation, service, and maintenance across network services, platforms, infrastructure and foundational elements. We examine Cloud Applications that: º º Utilize Network Services and other Cloud Computing elements º º Offer remote application access º º Function in a multi tenancy mode º º Are designed to take advantage of Cloud Computing architecture, infrastructure, platform, and Cloud provisioning and management benefits º º Explain how the application could be maintained, enhanced, and supported specific to the Cloud Computing environment Top Ten Cloud Applications Companies 1. Salesforce.com App-Exchange 2. Google Apps 3. SAP BusinessObjects Explorer 4. Sun Microsystems Java CAPS 5. Microsoft Corporation Live Services/BPOS 6. NetSuite OneWorld, Financial, CRM, Ecommerce 7. Taleo Corporation Talent Management Solution 8. Alfresco Software Alfresco 9. BMC Software Financial ResourceManagement 10. PayPal PayPal We rank the Cloud Application segmentbased on publicly available information for these criteria: Breadth of offered solutions Capability within application sub-segment, i.e. the relative superiority of the application Functionality in a sub-segment Customer feedback mechanisms Deploying new initiatives, such as enhanced mobility services. Failover, disaster recovery plans Flexibility in running in various cloud environments Launching and enhancing with new features Performance measures Portability Quantitative analysis of software as a service Software development analysis Strength of ecosystem of supporting companies Version control on applications and features 9
10 Two additional segments that we do not address in this report we label as Cloud Professional Services andcloud Up-and-Comers.The former group includes those companies that can help enterprises navigate the Cloud space and receive mostly independent advice. This segment includeslarge consultants such as CSC Trusted Cloud Services and IBM Strategy & Services, and also smaller, more focused firms such as BTC Logic. The Up-and-Comers segment is drawn from a database of smaller, innovative firms that might not be able to offer complete solutions, but that offer novel approaches to specific cloud problems that we believe warrant wider attention. Examples include firms like VPEP Technology or Elastra. We plan to release more information and rankings of both these segments in our upcoming report in Q2 of Summary Our Top Ten rankings reflect the likely approach that a typical enterprise may want to use to engage with vendors for information and advice, and to test internal perspectives on technology choices. As such, the key audiences for this document are organizations either wishing to adopt parts or all elements of a Cloud Computing setup, as well as organizations that wish to participate in this market place as one of the providers, both wanting to get a sense of who is playing what role where. Compared to other Cloud company lists of which there are many published already (one just needs to enter cloud computing companies into Google to be exposed to about 20M hits), we believe our effort adds more insight and is more relevant to the above targeted audiences: One additional segment that we do not address in this report, we would label as Cloud Professional Services. This group includes those companies that can help enterprises navigate the Cloud space and receive mostly independent advice. This segment would include large consultants such as CSC Trusted Cloud Services and IBM Strategy & Services, and also smaller, more focused firms such as BTC Logic. 1. We take the viewpoint of an implementing decision maker 2. We are vendor neutral and strive to provide objective advice 3. We divide the Cloud marketplace into meaningful segments and sub-segments that allow more finely tuned selection of Cloud companies and comparison to other, similar companies and offerings Also, we took a broad look at the market place, narrowing the final selection of the 5 times Top 10, i.e. Top 50, Cloud companies out of a pool of 600+ entities offering or claiming to offer Cloud solutions. Thus we believe our rankings offer a selection of leaders with some comparative authority. We realize that by virtue of their financial and marketing strength, several of the well-known major technology providers are deservedly also found on our Top 10 lists. To help smaller, often just as innovative players, with much smaller marketing budgets to also get noticed, we will also publish at a later date a Cloud Up-and-Comers list of smaller organizations that 10
11 bring novel approaches to the market. Similarly, we will publish a ranking of the various consultancies in this space that are instrumental in guiding organizations, be they offering and consuming Cloud services, into and through Cloud implementations. For those interested in following this effort, we will continue to blog about it (see btclogic.com), as well as make additional descriptions of our approach available to interested parties; e.g. a description of the rationale for the sub-categories underlying the five main categories published in this report. About BTC Logic BTC Logic is an inter-disciplinary team of business, technology, and creative professionals. We employ a unique and proven methodology to harness technology disruptions like Cloud Computing that enable an organization to scale for growth. Inspired by the flexibility and On Demand availability of Web 3.0 services, BTC Logic is pioneering Consulting as a Service by offering a virtual, highly scalable and mobile mash-up of the expert team members required to create growth. Our services are broad and include: Architecture Diagnostic, Precision Segmentation, Demand Generation, Brand Refresh, and Cloud Strategy, among others. To learn more about BTC Logic, visit us at 11
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