mobile disrupts the cloud
Post on 09-May-2015
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DESCRIPTIONIf mobile devices were merely used to browse web pages, then they would not be very disruptive. But mobile is all about apps, and mobile apps have veered away from legacy browser technology. As a result a paradigm shift is emerging in the host platforms that support mobile. This presentation looks at the impact of mobile on the cloud, from a technology and business model perspective.
- 1.MOBILE DISRUPTS THE CLOUD Cloud Computing Primer Eric Rubin Founder, DreamFactory Software www.dreamfactory.com
2. ABSTRACT: THE IMPACT OF SMART DEVICES ON THE CLOUD If mobile devices were merely used to browse web pages, then they would not be very disruptive. But mobile is all about apps, and mobile apps have veered away from legacy browser technology. As a result a paradigm shift is emerging in the host platforms that support mobile. This presentation looks at the impact of mobile on the cloud, from a technology and business model perspective. 3. Paradigm ShiftTECHNOLOGY 4. CLIENTS PROPEL PLATFORM SHIFTS Smart Devices Browsers Web APIsPCs Web Servers (e.g IBM,BEA)Client-Server Mainframe(e.g. Oracle/SUN)(e.g Amazon) 5. SMART DEVICES DRIVE CHANGE IN WEB ARCHITECTURE Macro computing trends rapid move of s/w applications to the cloud proliferation of devices (phones, tablets, sensors, wearables)connecting to the web apps usurping browsing as the primary web activity driverequirements for a smart client architecture legacy web technology is inadequate 6. LEGACY WEB TECHNOLOGY first generation of the web was primarily dumb clients (underutilized PCs) connected to the web by browsers The Browsers communicate with servers via page generation, where theserver does all computation and then ships an HTML page to be rendered on the PCs browser. When your input something new in the browser, a new page is generated on the server and shipped back. In the modern web a client is increasingly a smart device- tablet, phone,meter, sensor, wrist band, glasses. These devices have unique local services (e.g. GPS location, Capture, Voice) that modern apps require Legacy HTML Page generation approaches are unaware of clientcapabilities, each is treated as one uniform dumb browser client New service based approaches emerge to fully exploit client capabilities 7. PARADIGM SHIFT: CLOUD APIS Smart devices are causing a similar disruption to the cloud asPCs did to mainframe computing Mobile is to browsers as PCs were to VT100s, driving a paradigm shift Client-Server computing evolves to Client-Service The new paradigm is n-tier and web service based Applications blend services from servers and clients A new category of cloud middleware emerges to support mobile Backend As A Service or (mobile) mBaaS REST APIs enable client-service architecture for smart device applications Supporting rich client app delivery: HTML5, native IOS (Apple), nativeAndroid (Google) and Windows 8 (Microsoft) 8. THE MODERN CLOUD: CBE Cloud Back-ends (BaaS, mBaaS) are the newest generation ofcloud middleware. CBE is purpose built for the modern web where smart devices need to connect to the cloud CBE offers a set of APIs that enable rich clients to have cloudback ends for storage, collaboration, app administration, tracking stats, and a host of other capabilities CBE developers use a service based programming model, basedon REST APIs, versus page generation approach. Examples of CBE vendors include DreamFactory, Kinvey, andFaceBook Parse 9. SMART DEVICES DRIVE SHIFT TO SERVICES Smart Devices(m)BaaS, CBEPaaSPCsIaaS SaaS Sites HTML Page Generation7/10/13REST Web Services9 10. PARADIGM SHIFTS FOSTER DISRUPTIVE INNOVATION Legacy vendors architected for browsers have to re-architect forthis new paradigm At the same time they have to preserve their investment in pagegeneration architecture, often creating conflicting incentives White space opportunities unfold for a new generation ofdisruptive innovators Setting the stage for disruptive innovators to blindside competitorsin core adjacent markets in the future E.g. Google dominates search and then core adjacent markets like email 11. The power of App StoresBUSINESS MODEL DISRUPTION 12. PARADIGM SHIFTS & BUSINESS MODELS Web servicesMobile apps Web apps Client ServerSell H/W & S/W Oracle/SunSell Subscriptions or Ads Google, Salesforce.comSell services & UsageMicropurchases App StoresApple, GoogleAmazon 13. APP STORES App stores are a disruptive business model They dramatically lower customer acquisition costs whiledramatically increasing exposure Populating the market with far more competition than would otherwise bepossible Apples App Store has over 1M apps. Combined with BYOD (bring your own device) App Stores arechanging the way business adopt applications Grass roots, direct access to the pro-sumer (professional/consumer) Roll up to enterprise deals Versus mandated top down purchases through IT 14. APP STORES + BAAS= ENTERPRISE Most applications are local to the device BaaS cloud-enables mobile apps BaaS enables powerful features critical to the enterprise Group collaboration Shared database Adminstration & tracking Provisioning (and de-provisioning) Fosters a land and expand strategy Individual contributors expand to departmental teams expand to enterpriseroll-outs 15. SELLING APIS VS SOFTWARE There is also a shift on server side business models In the last paradigm shift Software and H/W systems startedmoving from capital expenditures to operational expense From outright purchases to subscriptions The newest generation of cloud products are being sold on usage e.g. Amazon Web Services are pay as you go This has a dramatic impact on bookings and is a major disruptor Subscriptions amortize revenue over 12-24 months, so at best they are worth1/12 of a purchased booking. How would it look to your shareholders if you were to recommend cutting your bookings by a magnitude? Usage is even worse, as there is no committed booking 16. RISK FACTORS TO LEGACY WEB Web ISVs dont fully exploit mobile e.g. local services, in-app purchases, actionable data, land and expand Enabling new mobile apps to grab beach-heads Web ISVs lose touch with the end customer Who are spending more of their cycles on mobile devices Initial risk is the long tail, SMB customers Web ISVs miss the boat on enterprise app stores and BYOD App stores empower individual consumers, and expand to groups though ad hoc collaboration. DropBox and Evernote are great examples of individual productivity tools that have gone viral by making sharing simple Monolithic and policy driven clouds (most enterprise s/w) cant exploit app stores as a new business channel as the dont offer the one-two punch of individual productivity that easily expands to group productivity Strangely, the compounding effect of BYOD and App Stores provide a channel advantage to start-ups 17. ENTERPRISE DISRUPTION: WHAT KEEPS CIOS AWAKE AT NIGHT? Fueled by mobile, BYOD requirements are elevated to C level. CEOs like BYODs employee satisfaction and immersion qualities CIOs must contend with: Architectural issues. e.g How do we redesign all of our browser based apps? Security issues of non-issue devices. e.g. How do we protect the company jewels? Management issues of non-issue devices. e.g How do we disable devices for terminatedemployees? These issues must be dealt with in primary application areas: Business to employee systems (B2E) Business to consumers systems (B2C) Business to business systems (B2B) This creates an enormous white space for partners to help mobilizetheir infrastructure