Profiting from SaaS Applications. Agatha Poon, Research Manager, Global Cloud Computing Tier 1 Research
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1 Profiting from SaaS Applications Agatha Poon, Research Manager, Global Cloud Computing Tier 1 Research
2 The 451 Group is a leading technology-industry analyst and data company focused on the business of enterprise IT innovation. Through its five owned and operated divisions, The 451 Group provides critical and timely insight into the market and competitive dynamics of innovation in emerging technology segments. Clients of the company at vendor, investor, service-provider and end-user organizations rely on The 451 Group s insight and data to support both strategic and tactical decision-making. Founded in 2000, the 451 Group is headquartered in New York, with offices in key locations, including San Francisco, Washington, DC, London, Boston, Seattle and Denver.
3 The 451 Group 451 Research is focused on the business of enterprise IT innovation. The company s analysts provide critical and timely insight into the competitive dynamics of innovation in emerging technology segments. Tier1 Research is a single-source research and advisory firm covering the multi-tenant datacenter, hosting, IT and cloudcomputing sectors, blending the best of industry and financial research. The Uptime Institute is The Global Data Center Authority and a pioneer in the creation and facilitation of end-user knowledge communities to improve reliability and uninterruptible availability in datacenter facilities. TheInfoPro is a leading IT advisory and research firm that provides real-world perspectives on the customer and market dynamics of the enterprise information technology landscape, harnessing the collective knowledge and insight of leading IT organizations worldwide. ChangeWave Research is a research firm that identifies and quantifies change in consumer spending behavior, corporate purchasing, and industry, company and technology trends.
4 What s up in the hosting market? Significant consolidation across the industry 51 managed hosting deals in 2010; Savvis-Fusepoint and Layered Tech-GSI Hosting A deliberated movement into value-added arena for new growth opportunities Managed services (Webvisions, Pacnet); automation (SoftLayer) Entering phase two of cloud computing Moving beyond the early adopter phase; users are eager to garner cloud benefits Cloud continues to disrupt the traditional channel (SIs and VARs) Greater attention from vendors in the cloud ecosystem Cloud.com, Joyent, Parallels, Microsoft, Zoho, Asigra, NetApp, RightScale, enstratus Application marketplaces come to fruition Google and Rackspace already launched application marketplace; Intuit is working on its own version Parallels has been working hard to get hosting partners selling SaaS applications from its marketplace Online SaaS Catalogs
5 Is Cloud Computing a Buzzword? Nearly one-in-five respondents report their company is now using cloud services ( Sample size: 1,632) 25% 20% Current Public Cloud Computing Usage 17% 17% 19% A huge 8-pt jump from a year ago 15% 11% 14% 10% 5% 2010 July 2010 Oct 2011 Jan 2011 April 2011 July Source: ChangeWave Research, a division of the 451 Group
6 Business sentiment towards the cloud Only 3% of respondents who use AWS cloud reported an actual service disruption 27% of respondents are now less likely to use cloud in the future Impact was greatest among companies not yet using cloud computing Significantly more likely Effect of AWS Outage on Future Likelihood of Using Cloud Significantly less likely Somewhat less likely No effect Somewhat more likely 1% 0% 7% 20% 50% Don't know 22% 0% 10% 20% 30% 40% 50% 60% Source: ChangeWave Research, a division of the 451 Group
7 By default, SaaS may prevail SaaS remains the most popular usage Up 7-pts since April 2011 Top 5 applications in the cloud include: Systems CRM Document & Enterprises Content Management Collaboration Tools Business Intelligence/Reportin g and Analytics 70% 60% 50% 40% 30% 20% 10% 0% 59% In which of the following ways does your company use cloud computing services? 66% 17% 28% 25% 26% April 11 survey July 11 survey 8% SaaS IaaS PaaS Other 8% Source: ChangeWave Research, a division of the 451 Group
8 Where is the cloud increase occurring? Projected Cloud Computing Spending in the next 6 months PaaS IaaS SaaS Increase Spending 26% Remain the same 33% Decrease Spending 2% 0% 10% 20% 30% 40% Source: ChangeWave Research, a division of the 451 Group
9 Winning in a time of change Telcos SIs Hosters ISVs What is the right business model? How to deliver cloud-based services? What about service customization/localization? How to enable billing, automated provisioning, SLA, integration? Who should I partner with? MSPs VARs Cloud enablers Aggregators
10 Partner with SAAS ISVs to become a Full Service Provider TM Agatha Poon Rafael Laguna Sandeep Ramchandani Tier 1 Research Research Manager - Global Cloud Computing Moderator Open-Xchange Chief Executive Officer Business Class and Collaboration for SaaS LogicBoxes Director Registry and Registrar Solutions Phil Meyer Microsoft Corporation Technology Specialist Roland Sars BackupAgent Director Cloud backup software for service providers Ruslan Fazlyev Ecwid Chief Executive Officer E-commerce widgets
11 February 14-16, 2012 Orlando, Florida
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