The Cloud Landscape and Transition to SaaS

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The Cloud Landscape and Transition to SaaS

• Dani Shomron
• Jan 2010

2
Agenda

• Cloud landscape
• The Cloud Stack
• Phenomenal Growth
• Drivers
• Cloud Wars
• Transition to SaaS
• Challenges
• Impact on the Organization
• A path to success

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The Cloud Stack
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The Cloud Stack The Full Monty
Services
Applications
Data Marketplace
Eco-System Access Billing Analytics
Integration - Monitoring
Development Framework Database - Provisioning
Hardware CPU Cycles Storage - Virtualization
Hosting Network Real-estate - Power
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Im 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 dont investigate SaaS first.
The Cloud is Here
Obamas CIO, Vivek Kundra (WSJ)
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Times Are Changing
2010 State Of The Market 10 Things You Need
To Know Channel Web (CRN)
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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 gt
  100M in yearly revenue are forecasted to be
  using SaaS (Saugatuck)

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The Sky is Not the Limit Cloud in Numbers
2010 68 B

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

(Gartner)
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The Sky is Not the Limit Cloud in Numbers
2010 68 B
Perpetual license Market
SaaS Market
Gartner expects enterprise SaaS to more than
double by 2012.
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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)

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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
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If you cant fight them, join them....
The Big Guys Come To Play

• "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)

13
Azure
Test Dev cloud
VMForce Heroku
CloudStart
Unified Service Delivery
Chrome Netbook
Cloud Office
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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
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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
16
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
17
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
18
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
19
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
20
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
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Clash of the Titans
  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
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ISVs in the Cloud

• SaaS

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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

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The SaaS Organization
RD
Quality
Ops
Support
Sales
Marketing
Finance
PS
Legal
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Engineering
RD
Quality
Ops
Support
Sales
Marketing
Finance
PS
Legal

• 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

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Customer Support
RD
Quality
Ops
Support
Sales
Marketing
Finance
PS
Legal

• 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

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Sales
RD
Quality
Ops
Support
Sales
Marketing
Finance
PS
Legal

• 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

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Success is Not Guaranteed

• The more successful the ISV, the more entrenched
  in the old paradigm (SAP)
• Not in companys 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
  RD, QA, Services, Sales. (MMS)
• Fear of cannibalization of existing sales

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The Secret Sauce

• Vision Leadership
• Paradigm shift need CV level commitment
• Pay attention to customers needs
• Ensure a buy-in at all levels make it a company
  goal - get Sales involved early

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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

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Q A

• Thank you
• Dani Shomron
• IsraelSaasCenter.com