day1 forrester cloud presentation

© 2011 Forrester Research, Inc. Reproduction Prohibited 2 © 2009 Forrester Research, Inc. Reproduction Prohibited

How Cloud Computing is Transforming Microsoft

John R. Rymer

February 1, 2011


Cloud is the 3rd bet-the-company

transformation in Microsoft‟s history.


1. Microsoft’s cloud computing pivot

2. How Microsoft is progressing with its cloud pivot

3. What Microsoft‟s cloud pivot means to you

4. Microsoft‟s latest attempt at mobile relevance

5. The role of CRM and other applications

6. My top 10 questions

Agenda


Microsoft‟s goal: Make the latest industry transition

Build broad new development platform.

Transition current businesses to a common cloud-based platform.

Expand into new markets.

Raise the @#$%&! stock price.


IT Utility

Microsoft‟s goal: IT as a service

Applications

Data

Runtime

Middleware

OS

Virtualization

Servers

Storage

Networking

Annuity revenue

Pay, expand as you go

SLAs

Open

Hybrid clouds


Let‟s take a step back: What is cloud computing?

A standardized IT capability (services, software, or infrastructure)

delivered as-a-service via Internet technologies in a self-service and pay-

per-use model.

Elastic capacity

Self-service

Pay as you go

Multitenant

Virtualized


3 consumption models: IaaS, PaaS, and SaaS

Applications

Data

Runtime

Middleware

OS

Virtualization

Servers

Storage

Networking

Applications

Data

Runtime

Middleware

OS

Virtualization

Servers

Storage

Networking

Applications

Data

Runtime

Middleware

OS

Virtualization

Servers

Storage

Networking

IaaS PaaS SaaS

IT manages Vendor manages


How Microsoft cloud is related to on-premise products

Server Platform Service Provider

Customer

Services Platform

Customer or

Service Provider Microsoft

Customer

Microsoft or

Service Provider


How cloud is changing Microsoft‟s business model

PC Many devices

Windows Azure

.NET Open Web

Office + SharePoint, UC

EAs + Subscriptions, ads

Software + Services, hardware


Core Java Core .NET

The Open Web

The strategy targets new enemies


The .NET vs. Java battle is over

Source: Forrsight Software & Services Survey, Q3 2010


1. Microsoft‟s cloud computing pivot






Agenda


Microsoft‟s cloud portfolio for business is large and growing

BUSINESS APPS COLLABORATION STORAGE PLATFORM MANAGEMENT PRODUCTIVITY COMMUNICATIONS


Microsoft‟s cloud strategy is very broad

Office

Communications

Collaboration

Business Apps

Management

Database

PaaS

IaaS

Appliances


Awareness of Microsoft's cloud is high, but 3rd

0,4%

0,4%

0,4%

0,7%

1,1%

1,5%

1,9%

3,0%

3,7%

4,5%

8,6%

10,0%

10,4%

12,6%

12,6%

15,2%

15,6%

17,5%

19,7%

24,9%

26,0%

40,5%

Flexiant FlexiScale (formerly Xcalibre)

Layered Tech

SoftLayer Technologies

Skytap

CSC

The Planet

GoGrid

Capgemini

Savvis

Terremark

AT&T Synaptic Hosting or Compute

salesforce.com‟s VMforce

Verizon Business

Dell

Other

Rackspace/Mosso

Don‟t know

HP (including EDS)

IBM

Microsoft

Google App Engine

Amazon Web Services (AWS) Elastic Compute Cloud (EC2)

Base = 269 North American and European IT executives and technology decision-makers that currently use or plan to use

pay-per-use hosting of virtual servers

Which vendor(s) does your firm currently use/plan to use for pay-per-use hosting of virtual servers?

Source: Forrester‟s Forrsights Hardware Survey, Q3 2010

• Confusion of cloud and

hosting is rampant.

• The market is highly

fragmented.

© 2011 Forrester Research, Inc. Reproduction Prohibited 18 © 2011 Forrester Research, Inc. Reproduction Prohibited

Developer engagement with cloud is nascent, and there‟s no clear platform winner yet

32%

24%

15%

3%

4%

1%

1%

21%

Microsoft Azure

Amazon EC2

Google AppEngine

IBM

Salesforce

Slicehost

AT&T

Other

“Which cloud-style service provider is your

primary deployment target?”

Base: 81 development professionals deploying to

the cloud – Dr. Dobbs DevTechnographics Q3 10

No (91.4%)

Yes (8.6%)

Base:1023 App dev professionals Forrester –

Dr. Dobbs Developer Technographics Q3 10

“Are you developing for the cloud?”


There‟s more interest in IaaS than PaaS

38%

37%

43%

26%

19%

42%

17%

12%

3%

8%

14%

6%

5%

9%

4%

3%

3%

1%

4%

7%

1%

Interested but no plans Not interestedDon't know Planning to implement in a year or morePlanning to implement in the next 12 months Implemented, not expanding

(percentages may not total 100 because of rounding)

Base: 1,007 North American and European enterprise IT executives and software decision-makers

Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009

*Source: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2009

PaaS (software

buyers)

“What are your firm’s plans to implement or expand its use of PaaS/cloud computing/virtual servers?”

IaaS (software

buyers)

IaaS (hardware

buyers)*

20%

33%

12%

Total

>= planning

██ Don't know ██ Not interested ██ Interested but no plans

██ Planning to implement in a year or more ██ Planning to implement in the next 12 months ██ Implemented, not expanding ██ Expanding/upgrading implementation


What if cloud isn‟t a product yet

Microsoft knows SKUs and EAs

Enterprises need

consultation to adopt

Partner ecosystem not

yet fully engaged

Result: High cost of sales and unnatural

motions

Pressure for more solution

“SKUs”

Adoption is slower than

needed


Wanted: Cloud-building experts

Chief Software Architect

President of Server & Tools Division

President of Microsoft Business Division

Contact [email protected]


Microsoft cloud SWOT

• Started early.

• Large cloud portfolio.

• Office 365.

• Hugely profitable.

• Reasonable vision.

• Geographic reach.

• Leadership in flux.

• PaaS bet not paying off.

• Broad strategy unfolding slowly.

• Azure requires rare talents.

• Marketing limited by old thinking.

• Security/compliance requirements

• Ecosystem not yet engaged.

• Beat IBM and Oracle to enterprise cloud

• Deeply penetrate telecoms

• Bridge consumerization gap

• Extend Office franchise

• Profit from the next platform

• Google

• Amazon

• Salesforce.com

• VMware

• Open Web, open source

• Apple

Strengths Weaknesses

Opportunities Threats




3. What Microsoft’s cloud pivot means to you




Agenda


What‟s in Microsoft‟s cloud for you?

Rewards

Deployment speed

Financial alignment

Outsource your hassles

Safety valve for peak loads

Easy sharing


What risks do you have to overcome?

Rewards

Deployment speed

Financial alignment

Outsource your hassles

Safety valve for peak loads

Easy sharing

Risks

Security, compliance

Loss of control

Integration challenges

Vendor lock-in

Total cost


How to think about private vs. public cloud

Existing Data Center

Public Cloud

Private Cloud, Hosted Cloud


Deciding whether and how to “cloud”

Applications and

workloads

Security & Compliance

Funding, economics

Operational controls





4. Microsoft’s latest attempt at mobile relevance



Agenda


Microsoft targeting mobile in the enterprise, doing pretty well

August 2010 “Define Your Mobile Development Strategy”


More than 7 In 10 shops allow some employees to choose their device

December 2010 “Mobile Development Goes Multiplatform”


Can Microsoft miss the young SuperConnecteds?

November 2010 “Europe Mobile Technographics®: 2010”

25- To 34-year-olds that make

most intensive use of mobile

devices.


Microsoft will also need developers, is behind

December 2010 “Mobile Development Goes Multiplatform”








Agenda


We have a winner! Microsoft CRM

June 2010 “The Forrester Wave™: CRM Suites For Large Organizations, Q2 2010”

Forrester Wave™:

CRM Suites For Large

Organizations, Q2 '10


And again …

June 2010 “The Forrester Wave™: CRM Suites For Midsized Organizations, Q2 2010”

Forrester Wave™:

CRM Suites For

Midsized

Organizations, Q2 '10


But Microsoft‟s portfolio also contains duds

Forrester Wave™:

B2C eCommerce

Platforms, Q4 „10

October 2010 “The Forrester Wave™: B2C eCommerce Platforms, Q4 2010”


My top 10 questions

1. Why the leadership changes? What‟s the plan?

2. How will Microsoft unlock the cloud development (PaaS)

opportunity?

3. Which of my OLTP apps can I easily host in Azure?

4. Will enterprise cloud adoption require more consulting services

than Microsoft has typically provided?

5. What is the plan to create more Dynamics “winners” like CRM?


My top 10 questions

6. Will Microsoft support iPhone and Android native development

using Azure?

7. Will Microsoft create a Java strategy for Azure?

8. Is the Windows franchise different from the Azure franchise?

Explain.

9. Will Microsoft guarantee the security of my apps, the privacy of

my data, and the compliance of my processes? How?

10.Will my costs go down if I use Microsoft‟s cloud? Explain.

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

With contributions from:

James Staten ([email protected])

Jeffrey Hammond ([email protected])

Julie Ask ([email protected])

Bill Band ([email protected])

John R. Rymer

+1 650-581-3857

[email protected]

Twitter: @johnrrymer

www.forrester.com

day1 forrester cloud presentation

Documents