The Cloud Landscape and Transition to SaaS

Dani ShomronDecember 2010

Agenda

•Cloud landscape The Cloud Stack Growth Public / Private / Hybrid Cloud Wars

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

The Cloud Stack

• Cloud is not only IaaS • SaaS has been around for over 10 years - Mature• Bridge the gap b/w SMB and enterprise• Mainstream – From IT avoidance to IT strategy

High-speed Growth

• 76% of US companies are using one or more SaaS applications (IDC). 86% adoption rate in SMBs (Microsoft).

• 65% of U.S. companies with > $100M in yearly revenue are forecasted to be using SaaS (Saugatuck)

• 50% of all new software - SaaS by 2014 (Saugatuck)• SaaS market will grow by 17.7% between 2009-2013, where as

perpetual license companies are only growing at 3.6% (Gartner).• Gartner expects enterprise SaaS to more than double by 2012.

18% increase in SaaS revenue this year, up to $7.5 billion.• Cloud Services Market to Surpass $68 Billion in 2010 (Gartner)• By 2012, 20 percent of businesses will own no IT assets

"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

Times Are Changing

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

“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.” Obama’s CIO, Vivek Kundra (WSJ)

Private Cloud – An Oxymoron?

• Public• Private• VPC• Hybrid

The Cloud Stack– The Full Monty

• Hosting• Hardware - Compute – Storage • Operating systems• Networking• Virtualization• Development• Eco system

Access Mgmt, Billing, Analytics, Integration, Monitoring

• Data Marketplace• Applications • Services

Cloud Office

Cloud consulting Services

VMForce Heroku

Unified Service Delivery

Test & Dev cloud

Azure

Chrome Netbook

Cloud Acquisitions – A Partial List

  PaaS DaaS SaaS DC Virt. EcoSys

CA 3Tera   Oblicore Cassatt 4Base Nimsoft 

Citrix SpringSource   Webex, PostPath Paglo VMLogix  

IBM     Lombardi, Unica,Coremetrics

    CastIron, Netezza

HP     Fortify IBIX, Opsware

PolyServe,  

Lefthand 3PAR

Rackspace       JungleDisk Slicehost  

EMC       FastScale, Integrien

VMware TriCipher

Salesforce  Heroku Jigsaw DimDim, Activa     Instranet, Groupswim

Cisco           

Dell           Boomi

Oracle Sun Virtual Iron

Clash of the Titans

• Windows vs. Chrome• IE vs. Chrome• Azure vs. Google App Engine• Hotmail vs. Gmail• MS Office 365 vs. Google Docs• Bing vs. Google• Bing Maps vs. Google Maps• Zune Vs. YouTube• Azure DataMarket vs. Google

Squared• Windows Phone 7 vs. Android

Crumbs

• Amazon VMWare wars• Apple’s venture into the

cloud• SAP, Intel

• What does it mean to me?

Software-as-a-Service

Total Upheaval

• Not another delivery mechanism • Transition to SaaS is a paradigm

shift• Selling a Service not a Product• SaaS companies don’t get it!• 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• Support ‘service readiness’• Support scalability & high availability• Release cycles reduced to weeks• Adopt agile S/W development (e.g.

SCRUM)• Engineers interact more closely with

end-users

R&D Quality Ops Support Sales Marketing Finance PS Legal

Quality Assurance

• Shorter release cycles• Support single platform (multiple

browsers)• New testing disciplines:

Performance

• Scalability Security

• Test interaction between H/W & S/W

Quality Ops Support Sales Marketing Finance PS LegalR&D

Customer Support

• User experience, customer sat and success are paramount

• Therefore support has important role, higher skills, higher pay

• All IT communications at your doorsteps• Customer services will switch to a 24X7

mode• Knowledge upgraded from installation /

maintenance to app/domain knowledge• Develop problem resolution skills

R&D Quality Ops Support Sales Marketing Finance PS Legal

OSS Considerations

• On-boarding new customers• De-provisioning• Billing - Metering • Retention Policy• Failover and Backup• Application Monitoring• Seamless Upgrade• SLA Management• End User Broadcasting• Data migration• Ops console

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.• Most companies will go thru a

hybrid stage. Insist on phasing out.

• If possible – spin out company, whether as a separate entity or conceptually.

• Integrate existing solutions. Many cloud solutions available

• Get help. Work with Partner not Vendor

Q & A

Thank youDani Shomron

dani@calia.biz http://saasperspective.blogspot.com

/ IsraelSaasCenter.com 052-464-4006