The Cloud Landscape and Transition to SaaS

Dani ShomronJan 2010

Agenda

•Cloud landscape The Cloud Stack Phenomenal Growth Drivers Cloud Wars

•Transition to SaaS Challenges Impact on the Organization A path to success

The Cloud Stack

The Cloud Stack– The Full Monty

Hosting – Network – Real-estate - Power

Hardware – CPU Cycles – Storage - Virtualization

Development – Framework – Database - Provisioning

Eco-System – Access – Billing – Analytics – Integration - Monitoring

Data Marketplace

Applications

Services

“I’m all about the cloud computing notion.

I look at my lifestyle, and I want access to

information wherever I am.

I am killing projects that don’t investigate

SaaS first.”

The Cloud is Here

Obama’s CIO, Vivek Kundra (WSJ)

Times Are Changing

* 2010 State Of The Market: 10 Things You Need To Know – Channel Web (CRN)

The Sky is Not the Limit – Cloud in Numbers

76%Using one or more SaaS applications (IDC)

24%Not Yet…

• 86% adoption rate in SMBs (Microsoft).

• 65% forecasted adoption rate in companies with > $100M in yearly revenue are forecasted to be using SaaS (Saugatuck)

The Sky is Not the Limit – Cloud in Numbers

• SaaS market will grow by 17.7% between 2009-2013, where as perpetual license companies are only growing at 3.6%.

2010$68 B

SaaS Market Perpetual license Market

17.7%

3.6%

(Gartner)

The Sky is Not the Limit – Cloud in Numbers

2010$68 B

SaaS Market Perpetual license Market

Gartner expects enterprise SaaS to more than double by 2012.

The Sky is Not the Limit – Cloud in Numbers

• 18% increase in SaaS revenue this year, up to $7.5 billion.

• Salesforce doubled its revenue in 2010 to $2 billion. 

• 50% of all new software - SaaS by 2014 (Saugatuck)

• By 2012, 20% of businesses will own no IT assets (Gartner)

Drivers

• Frustration Costs Time to value Anytime Anywhere

• Environmentally friendly• Commoditization of hardware• Core vs. non-differentiating business

services trend

From IT avoidance to IT strategy

"Information technology is undergoing a seismic shift

towards the cloud, a disruption we believe is as game-changing

as the transition from mainframes to client/server.“

 (Microsoft's Corporate Strategy Group)

If you can’t fight them, join them....

The Big Guys Come To Play

Cloud Office

CloudStart

VMForce Heroku

Unified Service Delivery

Test & Dev cloud

Azure

Chrome Netbook

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

Cloud Acquisitions – A Partial List

D Center Virtual. PaaS SaaS DaaS EcoSys

CA Cassatt 4Base 3Terra Oblicore Nimsoft 

Cisco LineSider, Tidal

Webex, Skype  ScanSafe

Citrix Paglo VMLogix SpringSource PostPath

Dell Ocarina 3PAR Boomi

EMC FastScale, Integrien, Greenplum

VMware TriCipher

HP IBRIX, Opsware, Lefthand

PolyServe Fortify Melodeo

IBM Storwize Lombardi, Unica,Coremetrics

CastIron, Netezza

Oracle Sun Virtual Iron Passlogix

RackSpace JungleDisk Slicehost Webmail.us

Salesforce Heroku DimDim, Activa Jigsaw Instranet, Groupswim

 OS Browser PaaS SaaS Search DaaS Mobile

Windows

IE Azure

Hotmail , MS Office 365

Bing Bing Maps, Zune, Azure DataMarket

Windows Phone 7

Chrome Chrome Google App

Gmail , Google Docs

Google Google maps, YouTube,

Google Squared

Android

Clash of the Titans

ISVs in the Cloud…

SaaS

Total Upheaval

• Not another delivery mechanism

• Transition to SaaS is a paradigm shift

• Selling a Service not a Product

• Will affect every silo in the organization

• Introduce new functions and entities Operations, 24X7 support Service Marketing, Service testing Technical Account Managers SLAs, Compliance

The SaaS Organization

R&D Quality Ops Support Sales Marketing Finance PS Legal

Engineering

• Modify (rewrite?) architecture• Simpler development – single platform• Service readiness• Scalability & high availability• Short release cycles • Adopt agile S/W development • Interact more closely with end-users

R&D Quality Ops Support Sales Marketing Finance PS Legal

Customer Support

• User experience, customer sat and

success are paramount

• Important role, higher skills, higher pay

• All IT communications at your doorsteps

• Switch to a 24X7

• Knowledge upgraded from installation /

maintenance to app/domain knowledge

• Develop problem resolution skills

R&D Quality Ops Support Sales Marketing Finance PS Legal

Sales

• Substantial changes From Elephant hunting to cyber sales From selling a product to selling a service From perpetual to subscription From hunters to farmers From outbound to inside sales Compensation up-front to spread over a year or more Sales cycles shorten dramatically

• Partners, channels, resellers, SaaS aggregators play a more important role for maximum exposure

R&D Quality Ops Support Sales Marketing Finance PS Legal

Success is Not Guaranteed

• The more successful the ISV, the more entrenched in the old paradigm (SAP)

• Not in company’s DNA. Switch from product to service. Shift of focus to operations and customer

service. Change pace of dev and delivery.

• Expect push back - Internal resistance to change: R&D, QA, Services, Sales. (MMS)

• Fear of cannibalization of existing sales

The Secret Sauce

Vision & Leadership

• Paradigm shift – need C&V level commitment

• Pay attention to customers’ needs

• Ensure a buy-in at all levels – make it a company goal - get Sales involved early

Path to Success

• Offer a sub-system as a POC• Acquire SaaS company with

complimentary product.• Hybrid stage. Insist on phasing out.• If possible – spin out company• Integrate existing solutions. Many

cloud solutions available• Get help. Work with Partner not

Vendor

Q & A

Thank youDani Shomron

IsraelSaasCenter.com