The New PaaS: Applications Drive the Business
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1 The New PaaS: Applications Drive the Business Larry Carvalho Research Manager Worldwide PaaS Practice June 9, 2015 microsite:
2 What are we talking about Path to Cloud and Apps PaaS Evolution & Example Moving Forward With PaaS IDC Visit us at IDC.com and follow us on 2
3 IT Organizations Need a Game Changer Business demand drivers: Business Demand for IT Services IT Budget Cost Structure Search for New Revenue Demand for shorter cycle times New Normal Big Data Business looks outside of IT structure for answers Private Cloud Public Cloud Social Mobility Business Demand for IT Services Opportunity for Transformation IT Budget IT Service Supply Unsustainable Gap Complexity Slows Productivity IT Service Supply IDC Visit us at IDC.com and follow us on 3
4 1 Key Forces Driving Cloud Choices in 2015 Desire for Best Technology Run by Specialists 6 A Chasm Opens in the LOB -> IT Service Delivery Model 2 Desire to match IT Expenditure with Business Performance IT s mission to Build or Source based on best available technology Strategic acknowledgement from IT organizations that they do not need to specialize in run-the-business apps Keeping up with demand is impossible - IT service requests change in type and velocity Disconnect between buyer, operator, and user of technology Traditional ownership model Inadequate for Agility (cost, speed, complexity) 4 Scale & Speed Converged appliances and modularization of IT Converged, Hyperscale, Densityoptimized, Software Defined 3 Clouds Data is the Driver Business entanglement drives cross industry data sharing; platforms create gravity; app design changes 5 Variable Costing XaaS, subscription, leasing, spot markets, reserved instances: lower risk, better utilization, matches spend with capability Everything aas IDC Visit us at IDC.com and follow us on 4
5 Path From the Internet to Application Age Internet From 1995 Website Security E-commerce From 1999 Mobile/Social Adopted 2008 Applications Since 2014 Online Selling Fulfilment Device support FB/Twitter integration Analytics API enablement IoT integration Cognitive Computing/AI Automation IDC Visit us at IDC.com and follow us on 5
6 IT Market Value Shifting to 3rd Platform: Key Themes for 2015 Escalation. Partnerships and investments to reach global scale and instantiate key cloud property (eg, AWS and CSC, Cisco InterCloud and DD, Verizon and SAP) Consolidation. Around a small number of big "winners" in mobile platforms, cloud infrastructure and cloud solution platforms/marketplaces Cannibalization. 3rd Platform will cannibalize 2nd Platform: 40-50% of 3 rd Platform growth in 2014 will come at the expense of 2 nd Platform 3rd Platform disruption in all industries. By 2018, 1/3 of share leaders in virtually all industries will be "Amazoned" by new and incumbent 3rd Platform players. Democratized IT Decentralized IT Centralized IT 0.7% growth 29% of 2014 IT spend 89% of 2014 ICT growth driven by 3 rd platform IDC Visit us at IDC.com and follow us on 6
7 Development Practices are Evolving 2 nd Platform 3rd Platform On-premise, client-server Developer Multi-Service Cloud Developer Front-end SAP Concur Oracle Eloqua App logic DB Facebook IBM Kenexa Infrastructure Salesforce ExactTarget AWS Simple Service IDC Visit us at IDC.com and follow us on 7
8 What are we talking about Path to Cloud and Apps PaaS Evolution & Example Moving Forward With PaaS IDC Visit us at IDC.com and follow us on 8
9 Where does PaaS Fit in the Ecosystem Software Extend Capabilities Platform Developers Will they morph together? Infrastructure Build Efficiencies IDC Visit us at IDC.com and follow us on 9
10 PaaS Evolution: The Full-Stack PaaS Tier SaaS Sources of Functionality & Content Decomposed SaaS Apps API-Fronted Web Services Proprietary and Public Content Company/ Industry Data IoT Data Roles LOB User/ Developer SaaS Extensions & API Services PaaS Analytics & cognitive Tools to Develop &Deliver Foundation Services App security Runtime/ Container/ AMI/VM Management Social Configuration, scaling, automation Mobile/IoT Infra security Billing/Payment Application/ user monitoring Integration & Messaging Back-End services Code & delivery pipeline Infrastructure monitoring Dev Ops IT Developer Environment to Host and Deploy IaaS Network Compute Storage IT Operations IDC Visit us at IDC.com and follow us on 10
11 PaaS Evolution: Marketplaces Marketplaces Create Supply & Demand Ability to sell globally more quickly, localize content Gives turnkey ecomm ability so that SIs, VARs, ISVs, can give choice to customers More efficient ecosystem: aggregation of developer, composition and runtime hosting environment (IaaS) distributor, technology ISV partners Less expensive to develop and distribute than packaged apps Easier to build channel networks for new SaaS ISVs Fundamentally changing IT procurement Write On, Write To, and Run-On In 2014, about 21% of new business software purchases less than $200 were made through a marketplace built and run by an ISV or a 3rd party marketplace operator. By 2018 it will be 44% IDC IDC Visit us at IDC.com and follow us on 11
12 PaaS Evolution: Containers Changing Application Delivery Why? Born on the Web envy Benefits Faster Deployment Ease of Migration Low Overhead Growing Ecosystem Challenges Maturity Skills IDC Visit us at IDC.com and follow us on 12
13 PaaS Evolution: Mobile Building mobile apps and extensions is the biggest PaaS use case Developers Mobile access growth MobileFirst strategies Mobile needs Pureplay MBaaS PaaS + MBaaS Q: Most important factor you use to evaluate whether to adopt a mobile enterprise application? (Top 4) Infrastructure Security Ease of use Performance Interoperability Source: IDC Mobility Study 2015 responses (n=475) IDC Visit us at IDC.com and follow us on 13
14 OPAL Process Overview N Branch Store 1 POS POS POS Bake-Off Bake-Off Unit Bake-Off Unit Unit Meat packaging and labeling Machine Mobile Applications for shelf management OPAL System intraday shelf management Branch Inventory External Data ERP / Inventory Control System daily replenishment Machine to Machine communication Distribution Center Region 1 DC Region 2 DC Region n Man to Machine communication IDC Visit us at IDC.com and follow us on 14
15 What are we talking about Path to Cloud and Apps PaaS Evolution & Example Moving Forward With PaaS IDC Visit us at IDC.com and follow us on 15
16 Who Are PaaS buyers? Now % 15% 15% 25% 15% 35% 30% 25% Enterprise Digital IT Buyer Innovator Entrepreneur Project: Extend Application Audience: B2E Primary need: Compatibility with existing apps & authentication Goal: Satisfy business requirements Project: Experiment with innovative new service for customers Audience: B2C Primary need: Required features & low initial spend Goal: Fail fast or succeed quickly, then scale Project: Start up a new consumer digital service Audience: Consumer Primary need: API support, other features rich enough to support initiative Goal: Attract audience and scale Tech Vendor Project: Build a cloud app Audience: Depends Primary need: Palette of supporting services, eg, lifecycle capabilities, operations support, APIs, authentication Goal: Improve opportunity for growth or low cost fast startup IDC Visit us at IDC.com and follow us on 16
17 What do PaaS buyers need? Q: Which factors are accelerating your organization's adoption of integrated PaaS services? Developers top 5 responses in order Self-service environment no requisitioning resources Faster to build code, test, iterate Quick access to the best tools with no overhead Full data portability - no code changes or ownership issues Consistent platform attributes throughout the entire app lifecycle Business Users top 5 responses in order Built-in integration with my SaaS apps Simplifies/improves Dev/Ops process Abstracts the complexity Faster time to iterate and get services running No waiting for backlog in IT development Source: IDC CloudView Survey, 2H 2014 (WW responses n=3,463) IDC Visit us at IDC.com and follow us on 17
18 Essential Guidance Use PaaS to automate the entire development lifecycle Change culture by encouraging experimentation & measured risks Pick the right tool and build appropriate skills Enable PaaS to fundamentally transform your business IDC Visit us at IDC.com and follow us on 18
19 Questions? Larry Carvalho Cloud Platform as a Service IDC Visit us at IDC.com and follow us on 19
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