where is the cloud going next? a look back at saas 10 years ago and the shift to industry cloud

CLOUD

REVOLUTION

I N D U S T R Y C L O U D R I S I N G

E m e r g e n c e C a p i t a l P a r t n e r s

I N D U S T R Y C L O U D F O R U M 2 0 1 4

INDUSTRY CLOUD

RISING

G O R D O N R I T T E R

E M E R G E N C E C A P I T A L P A R T N E R S

@ G O R D O N R I T T E R

@ E M E R G E N C E C A P

# I N D U S T R Y C L O U D

Enterprise

software

moves…

…to the

cloud

Emergence Capital Thesis in 2003

~40 Investments

Series A & B

$40B Market Cap

Leading early stage

Business Cloud VC

2014

T H E F I R S T 1 0 Y E A R S .

HORIZONTAL MARKETS

CRM

ACCOUNTING

HR

TODAYNew opportunities

emerging

Vertical

Solutions

Ind

ustry C

lou

d

Next 1

0 Years

Life

Sciences

Insurance

Energy

THIS

HAPPENED

BEFORE

Mainframes

1970s

Client Server

1990s

Cloud Software

TODAY

WHAT IS

DIFFERENT

THIS TIME?

In the past, vertical software has been a kludgy extention of the horizontal code.

Customization was usually done by systems integrators like Accenture whose business models

were based on one-off projects for their largest customers.

Every year, a new set of consultants would build custom code extensions.

We all know what happens when you use spaghetti code with bad fittings, everything leaks.

Customizations were expensive to maintain and prevented the true value of vertical software to

accrue to customers. One set of custom code couldn’t talk to another custom project.

The promise of aligning the software and data insights in a particular industry was never realized.

,

The Industry Cloud is different.

It is powerful and coordinated.

INT

EG

RA

TE

D

TR

UE

SO

FT

WA

RE

INS

IGH

TS

Industry Cloud allows for True, Multi-Tenant

Software…across multiple platforms…with little

customization required.

5 HALLMARKSO F A N I N D U S T R Y C L O U D C O M P A N Y

TALENT

TRIFECTA

BUSINESS

LEADERSHIP

TECHNICAL

EXPERTISE

DOMAIN

EXPERTISE

DEEP

DATA

REFERRAL REVENUES

REFERRAL

REVENUES

LAYER CAKE

PRODUCT STRATEGY

MASSIVE

MARKET SHARE

Horizontal Cloud majors in

sales people and minors in

product lines.

Industry Cloud majors in

product lines and minors in

sales people.

OTHER

E M E R G E N C E C A P I T A L

INDUSTRY CLOUD INVESTMENTS TO DATE

HEALTHCARE / LIFE SCIENCE

EDUCATION

INDUSTRY CLOUDLANDSCAPE

ENERGYHEALTHCARE EDUCATION REAL ESTATE LEGAL

GOVERNMENT

FOOD & BEV

PUBLIC

PUBLIC

FINTECH

PUBLIC

MANUFACTURING

NON-PROFIT

PUBLIC

OTHERS

PUBLIC

TRANSPORTATION

PUBLIC

RETAIL

PUBLICPUBLIC

PUBLIC

V2.0 / Q2 2014

HOW WILL YOU LEAD THE

REVOLUTION?

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I N D U S T R Y C L O U D R I S I N G