Debate Session IV Four Five One thinks the cloud has just begun - - PowerPoint PPT Presentation

Debate Session IV Four Five One – thinks the cloud has just begun

Introduced and Chaired by: Sean Hackett Managing Director

Cloud Innovation: Disrupt or Be Disrupted

Sean Hackett Vice President, 451 Research| Advisory

Disruption Can be Unkind to The Unprepared

Every morning in Africa, a gazelle wakes up, it know it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up, it knows it must outrun the slowest gazelle or it will starve to death. It does not matter whether you are a lion

• r a gazelle.

When the sun comes up, you better start running.

Cloud Market Evolution

Spending and Adoption Driven by Developers / SMB Shadow IT Net New Applications Web 2.0 Workloads Project Based, Test Dev.

Phase Transition

Demand Intelligence, Investments, Product Introductions and New Deals Point to an Increase in:

• “Enterprise” Demand
• Private Cloud Activity (External and Internal
• Business Critical Applications / Workloads Migrating to

Cloud Based Infrastructure

Public Clouds Dominate “Good Enough Services” Hoster’s / On-Line Providers Dominate Spending and Adoption Driven by Enterprise and Mid-Market IT Exerts More Control A Broad Range of Apps are Being Built and Migrated to Cloud Based Infrastructure Private Clouds Gain Traction “Enterprise Class Services” and Digital Infrastructure Service Providers Increasingly become “Enterprise Class” On-Line / Hosters Continue to Disrupt

2012 2014 – 2015/16

Source:451 Research

3

Complexity More Demanding Customers

9% 10% 17% 21% 12% 14% 30% 25% 32% 29% 0% 20% 40% 60% 80% 100%

Today 2 Years

IaaS SaaS PaaS

Off-Premises Deployment

48% 42% 28% 32% 24% 25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Today 2 Years

Public Cloud

Follow the Money

On Premises Infrastructure Deployment

43% 37% 31% 35% 26% 28% 0% 20% 40% 60% 80% 100%

Today 2 Years

Private Cloud Virtuali zed

Hosted Deployment

4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0

Hosted Private Cloud is Perceived as “Business Ready”

REQUIRES A SECURE NETWORK CONNECTION

Seen as more suitable across the board than traditional dedicated, except for :

• Secure network connection
• Adherence to Data Sovereignty
• Low risk for outage
• Dependencies with on-prem apps
• Tuning &customization

Performs better than Public Cloud for :

• Secure network connection
• Identity and Access Management

Hosted Private Cloud is Perceived as “Business Ready”

IS A NEW, UNTESTED WORKLOAD IS AN EXISTING, WELL TESTED APPLICATION … EASILY SCALE LARGE NUMBERS OF USERS HAS LOW ORGANIZATIONAL RISK IN EVENT OF LOSS OR OUTAGE REQUIRES LOW TOTAL COST OF OWNERSHIP REQUIRES LOW UPFRONT COSTS REQUIRES MULTIPLE LEVELS OF IAM ADHERENCE TO DATA SOVEREIGNTY LAWS /REGULATORY ACCESSED BY SIGNIFICANT NUMBERS OF MOBILE DEVICE USERS NEEDS TO CONNECT TO OTHER DATA WITH APIS OR WEB SERVICES HAS DEPENDENCIES WITH ON-PREMISE APPLS REQUIRES LOW NETWORK LATENCY REQUIRES TUNING OR CUSTOMIZATION REQUIRES MULTI-SITE REDUNDANCY HAS UNPREDICTABLE OR SEASONAL USER DEMAND

The following is a list of application characteristics. Using a scale where 0=Poor Suitability to 10=Very Good Suitability, please rate the suitability of applications for:

4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0

Innovation Often Takes a Detour and Incumbents Cram

Horseless Carriage Syndrome and the Cloud

• As Incumbents Co-Opt and Cram responses begin to loose

disruptive feel and fail to meet real needs (example Private Cloud)

• Private Cloud offerings are plagued by:
• Complex pricing Models
• More Predictable Pricing Models
• Minimum Monthly Commitments
• Higher Cost Over Public Models

Enterprise Readiness: Decision Cycles Lag Technology Cycles

Source: TIP Wave 6 n= 118 9

NASA Space Pen: This was supposed to be simple

Winning the Race to the Bottom?

The Race is On!

Despite headline figures in October:

• AWS: 43% off bandwidth
• Google: 47% off all services

…cost of typical application only declines by 1.32%. Just 3 cents. Open standards and APIs Full interoperability and portability Cloud exchanges Defined specification of commodity services Improved benchmarking and reporting tools Will force providers to match on cost and performance Multi-cloud management tools Portability of workloads

Standing Out in a Fishbowl of Sameness

Are We All Missing the Point? “Badger Bluff Fanny Fredie”

Badger-Fluff Fanny Freddie Dairy scientists are the Gregor Mendels of the genomics age, developing new methods for understanding the link between genes and living things, all while quadrupling the average cow's milk production since your parents were born.

Digital Renaissance: Where does it all live?

What is a Zetabyte?

(1 000 000 000 000 000 000 000 Bytes)

Panel Discussion

Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.

Disruption is messy… How will you prevent yourself from being a casualty?

Sean.Hackett@the451group.com

Advisory Services offers prescriptive advice and guidance tailored to business cycle needs from Strategic Planning through Sales Execution Key areas of expertise include strategic decision support, opportunity analysis, product strategy, marketing support and sales execution Extensive experience serving technology & service providers, corporate advisory, finance, professional services, and enterprise IT decision makers Services delivered through a Statement of Work-based engagement model, customized to the needs of each client Access to 10,000+ senior IT professionals in our research community and insight from over 52 million data points each quarter Market intelligence from 4,500+ reports published each year covering 2,000+ innovative technology & service providers Backed by 451 Research’s 210+ employees, including over 100 analysts

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What do we do?

Angus Robertson, VP Product Marketing Mark Showalter, Senior Director, Corporate Marketing Sebastien Jobert, Director of engineering Ev Kontsevoy, Directore of Product

Debate Session IV Four Five One – thinks the cloud has just begun