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TRANSCRIPT
Publisher: Renub Research
Published: September, 2010
Report Details
This report “Cloud Computing – SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A,
Investments, and Future Forecast, Worldwide” falls into ten categories.
The First Category is Executive Summary. The Second Category describes the basic concepts
of Cloud Computing and Cloud benefits. The Third Category analyzes the Political,
Economical, Social, Technological, Environmental and Legal (PESTEL) aspects of Worldwide
Cloud Computing. The Fourth and Fifth Category emphasise on the worldwide market size
and forecasted size of Cloud Computing, and its part SaaS, PaaS and IaaS. It also explains the
market size and forecast market size of all Cloud applications, which comes under the SaaS,
PaaS and IaaS (see fifth category in table of contents for further details). The Sixth Category
talks about the Cloud Computing drivers (Investment in Cloud Computing, Mergers &
Acquisitions in Cloud Computing, Venture Capital funding in Cloud Computing, and role of
Social media in Cloud Computing). The Seventh Category of this report explains all the
challenges of the Cloud Computing. The Eighth Category deals in Cloud Computing through
mobile phones, its driving factors and restraining factors. The Ninth Category deals in the
initiatives taken by the different country government in Cloud Computing world over. The last
Tenth Category explains the key players of Cloud Computing, which is explained on the basis
of Cloud application providers.
Market Overview
A major shift in the way companies obtain software and computing capacity is under way as
more companies tap into Web-based applications. Cloud Computing refers to both the
applications delivered as services over the Internet and the hardware and systems software in
the data centers that provide those services. In other words Cloud Computing is accessing
computer resources provided through networks rather than running software or storing data
on a local computer. A host of providers including Amazon (AMZN), Salesforce.com (CRM), IBM
(IBM), Oracle (ORCL), and Microsoft are helping corporate clients use the Internet to tap into
everything from extra server space to software that helps manage customer relationships.
Worldwide Cloud Computing market is continuing to grow at a rapid rate and it is expected to
cross US$ 25 Billion by the end of 2013. The different segments of the Cloud Computing
© Renub Research Page 3 of 32
market (SaaS, PaaS, IaaS) show different maturities and adoption levels. The various
segments within the SaaS market will grow at a different rate. The fastest growing segments
in SasS are Content, Communications and Collaboration (CCC), Customer Relationship
Management (CRM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).
PaaS generates market revenue of approximately 1.5% of the total application development
market in the year 2008. IaaS is increasingly becoming popular with computing resources
integrating as web service. The IaaS service providers can support a large number of
customers with a single infrastructure.
Research Highlights
Worldwide Cloud Computing market is growing at a rapid rate and it is expected to cross
US$ 25 Billion by the end of 2013
The Software as a Service market is growing at 17.04% and crossed US$ 9 Billion by the
end of year 2009
Enterprise Resource Planning (ERP) and Content, Communications and Collaboration (CCC)
segment together contributed 58% to the SaaS market in 2009
Customer Relationship Management (CRM) market crossed US$ 2 Billion in 2009
SaaS based Enterprise Resource Planning (ERP) sales has crossed US$ 1 Billion by the end
of year 2009
Supply Chain Management (SCM) market in SaaS has crossed US$ 850 Million by 2009
Office Suites market size is expected to increase at a CAGR value of 55.02% for the period
spanning 2010 - 2013
It is expected that Platform as a Service (PaaS) market size will reach US$ 400 Million by
the year 2013
It is expected that the Infrastructure as a Service (IaaS) market will increase at a CAGR
value of 52.53% for the period spanning 2010 - 2013
Types of Investments, Mergers & Acquisitions & Venture Capital Funding in Cloud
Computing Sector
IBM strives to become a market leader in the Cloud Computing; has invested more than
US$ 800 Million in the different segments of the Cloud Computing.
Security, Performance and Availability are major challenges in the Cloud Computing
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It is expected that the Mobile Cloud Computing subscribers will increase at a CAGR value
of 69.02% for the period spanning 2010 - 2014
US Federal IT budget devoted to Cloud Computing Spending will reach nearly US$ 1 Billion
by 2014
Cloud Computing efforts by governments in United Kingdom (U.K), European Union (EU),
Japan, China etc
The number of data centre serves growing on average 9% each year during 2002 and is
expected to continue till 2020
Key Players Analyzed
This section covers the key facts about the major players currently operating in the Global
Internet industry.
Customer Relationship Management (CRM): Salesfores.com, Oracle.com and RightNow
Enterprise Resource Planning (ERP): SAP, NetSuite and Workday
Supply Chain Management (SCM): Descartes, Ariba and Ketera
Content, Communication and Collaboration (CCC): Cisco WebEx, SumTotal and IBM
LotusLive
Digital Content Creation (DCC): YouTube and Adobe
Integration as a Service: Pervasive, Cast Iron Systems and Boomi
Platform as a Service: Force.com, Google App Engine and Azure
Backup and Storage Service: Amazon Web Service (S3) and RightScale
Compute Services: Amazon Web Services (EC2), GoGrid and SkyTap
Data Sources
Information and data in this report has been collected from various printable and non-
printable sources like Trade Journals, White papers, Online paid databases, News websites,
Government Agencies, Magazines, Newspapers and Trade associations.
© Renub Research Page 5 of 32
Published By
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Email: [email protected]
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© Cloud Computing – SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A, Investments,
and Future Forecast, Worldwide
Renub Research, 2010
Edition 1.0
All rights reserved. This publication is protected
by copyright. No part of it may be reproduced, stored
in a retrieval system or transmitted, in any form or by
any means, electronic mechanical, photocopying,
recording or otherwise without the prior written
permission of the publishers
© Renub Research Page 6 of 32
Table of Contents
1. Executive Summary
2. Cloud Computing Overview
2.1 The History of Cloud Computing
2.2 What is Cloud Computing?
2.3 Cloud Service Model
2.3.1 Cloud Software as a Service (SaaS)
2.3.2 Cloud Platform as a Service (PaaS)
2.3.3 Cloud Infrastructure as a Service (IaaS)
2.4 Benefits of the Cloud Computing
3. PESTEL – Framework Analysis of Cloud Computing
3.1 Political Analysis of Cloud Computing
3.2 Economical Analysis of Cloud Computing
3.3 Social Analysis of Cloud Computing
3.4 Technological Analysis of Cloud Computing
3.5 Environment Analysis of Cloud Computing
3.6 Legal Issues of Cloud Computing
4. Worldwide – Cloud Computing
4.1 Cloud Computing Market
4.2 Cloud Computing Market Forecast
5. Cloud Computing Market Segmentation
5.1 Worldwide Software as a Service (SaaS) Market & Future Forecast
5.2 Software as Service Segment
5.2.1 Content, Communications and Collaboration (CCC) & Future Forecast
5.2.2 Customer Relationship Management (CRM) Market & Future Forecast
5.2.3 Enterprise Resource Planning (ERP) Market & Future Forecast
5.2.4 Supply Chain Management (SCM) Market & Future Forecast
5.2.5 Digital Content Creation (DCC) Market & Future Forecast
5.2.6 Office Suites Market & Future Forecast
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5.3 Worldwide Platform as a Service (PaaS) Market & Future Forecast
5.4 Worldwide Infrastructure as a Service (IaaS) Market & Future Forecast
5.5 Infrastructure as a Service Segments
5.5.1 Online Backup and Storage Market & Future Forecast
6. Cloud Computing Drivers
6.1 Global Initiative in Cloud Computing
6.2 Investment in Cloud Computing
6.2.1 IBM Investment in Cloud Computing
6.3 Mergers & Acquisitions in Cloud Computing
6.3.1 IBM Acquisitions
6.3.2 Oracle Acquisitions
6.3.3 Other Mergers & Acquisitions
6.4 Venture Capital Funding in Cloud Computing
6.5 Social Media & Cloud Computing
7. Roadblocks in Cloud Computing
7.1 Cloud Security
7.1.1 Abuse & Nefarious use of Cloud Computing & its Impact
7.1.2 Insure Interfaces and its impact on APIs Cloud Computing
7.1.3 Malicious Insider & its Impact on Cloud Computing
7.1.4 Shared Technology Issues & its Impact on Cloud Computing
7.1.5 Data Loss & Leakage & its Impact on Cloud Computing
7.1.6 Account or Service Hijacking & its Impact on Cloud Computing
7.1.7 Unknown Risk Profile & its Impact on Cloud Computing
7.2 Performance of the Cloud Computing
7.3 Availability and Reliability of the Cloud Computing
7.4 Lack of Transparency & Standardization across Large Players
7.4.1 Approach to Overcome the Problem
8. Mobile Cloud Computing
8.1 Mobile Cloud Computing Subscribers & Future Forecast
8.2 Mobile Cloud Computing Market Forecast
8.3 Mobile Cloud Computing Application
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8.3.1 Device Manufacturers & Mobile Cloud Computing
8.3.2 Mobile Application Developers & Cloud Computing
8.4 Drivers of Mobile Cloud Computing
8.4.1 Initiative in Mobile Cloud Computing by Operators
8.4.2 HTML5 & Mobile Cloud Computing
8.4.3 OMA Smartcard Web Server
8.4.4 TokTok Technology
8.5 Challenges of Mobile Cloud Computing
8.5.1 Challenge of Multiple Operating Systems
8.5.2 When will Mobile Cloud Computing Really Take off?
9. Cloud Computing in Government
9.1 Cloud Computing and E-Governance
9.1.1 Cloud Computing in U.S. Government
9.2 Cloud Computing in European Governments
9.2.1 Cloud Computing in Asia
10. Key Players of Cloud Computing
10.1 Customer Relationship Management (CRM) – (SaaS)
10.1.1 Salesforce.com
10.1.2 Oracle.com
10.1.3 RightNow
10.2 Enterprise Resource Planning (ERP) – (SaaS)
10.2.1 SAP
10.2.2 NetSuite
10.2.3 Workday
10.3 Supply Chain Management (SCM) – (SaaS)
10.3.1 Descartes
10.3.2 Ariba
10.3.3 Ketera
10.4 Content, Communication & Collaboration (CCC) – (SaaS)
10.4.1 Cisco WebEx
10.4.2 SumTotal
10.4.3 IBM LotusLive
10.5 Digital, Content Creation (DCC) – (SaaS)
10.5.1 You Tube Inc.
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10.5.2 Adobe
10.6 Integration as a Service – (IaaS)
10.6.1 Pervasive
10.6.2 Cast Iron Systems
10.6.3 Boomi
10.7 Platform as a Service – (PaaS)
10.7.1 Force.com
10.7.2 Google App Engine
10.7.3 Azure
10.8 Backup & Storage Service – (IaaS)
10.8.1 Amazon Web Service (S3)
10.8.2 RightScale
10.9 Computer Service – (IaaS)
10.9.1 Amazon Web Services (EC2)
10.9.2 Go Grid
10.9.3 Sky Trap
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List of Figures:
Figure 3-1: Worldwide – PEST Framework Analysis of Cloud Computing
Figure 3-2: Worldwide – (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs &
Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (CO2), 2007
Figure 3-3: Worldwide – Market Share of (Server Farms/Data Centers, Telecoms Infrastructure and
Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (Percent), 2007
Figure 3-4: Worldwide – Forecast of (Server Farms/Data Centers, Telecoms Infrastructure and Devices,
PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide (CO2) Equivalent, 2020
Figure 3-5: Worldwide – Forecast of Market Share of (Server Farms/Data Centers, Telecoms
Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide
Equivalent (Percent), 2020
Figure 3-6: Worldwide – Electricity Consumption (Billion KWh), 2007
Figure 3-7: Worldwide – Electricity Consumption (Billion KWh), 2020
Figure 3-8: Worldwide – Emissions in Metric Tonne Carbon Dioxide Equivalent, 2007
Figure 3-9: Worldwide – Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage Share (%),
2007
Figure 3-10: Worldwide – Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent, 2020
Figure 3-11: Worldwide – Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage
Share (%), 2020
Figure 4-1: Worldwide – Cloud Computing Market (Billion US$) 2008 – 2009
Figure 4-2: Worldwide – Forecast for Cloud Computing Market (Billion US$) 2010 – 2013
Figure 5-1: Worldwide – Software as a Service (SaaS) Market (Billion US$), 2008 – 2009
Figure 5-2: Worldwide – Forecast for Software as a Service (SaaS) Market 2010 – 2013
Figure 5-3: Worldwide – Software as a Service (SaaS) Segments (Percent), 2009
Figure 5-4: Worldwide – Content, Communications and Collaboration (CCC) Market (Million US$), 2008 –
2009
Figure 5-5: Worldwide – Forecast for Content, Communications and Collaboration (CCC) Market (Million
US$), 2010 – 2013
Figure 5-6: Worldwide – Customer Relationship Management (CRM) Market (Million US$), 2008 – 2009
Figure 5-7: Worldwide – Forecast of Customer Relationship Management (CRM) Market (Billion US$),
2010 – 2013
Figure 5-8: Worldwide – CRM Vendors Market Share (Percent), 2008
Figure 5-9: Worldwide – Enterprise Resource Planning (ERP) Market, Million US$), 2008 – 2009 .... Error!
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Figure 5-10: Worldwide – Forecast for Enterprise Resource Planning (ERP) Market (Billion US$), 2010 –
2013
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Figure 5-11: Worldwide – Supply Chain Management (SCM) Market (Million US$), 2008 – 2009
Figure 5-12: Worldwide – Supply Chain Management (SCM) Market Size Forecast (Billion US$), 2010 –
2013
Figure 5-13: Worldwide – Digital Content Creation (DCC) Market (Million US$), 2008 – 2009
Figure 5-14: Worldwide – Forecast of Digital Content Creation (DCC) Market, (Million US$), 2010 – 2013
Figure 5-15: Worldwide – Office Suites Market (Million US$), 2008 – 2009
Figure 5-16: Worldwide – Forecast of Office Suites Market (Million US$), 2010 – 2013
Figure 5-17: Worldwide – Platform as a Service (PaaS) Market (Million US$), 2008 – 2009
Figure 5-18: World Wide – Forecast for Platform as a Service (PaaS) Market (Million US$), 2010 – 2014
Figure 5-19: Worldwide – Infrastructure as a Service (IaaS) Market (Million US$) 2008 - 2009
Figure 5-20: Worldwide – Infrastructure as a Service (IaaS) Market Forecast 2010 – 2013
Figure 5-21: Worldwide – Backup and Storage Market (Million US$) 2009 – 2010
Figure 5-22: Worldwide – Forecast for Backup and Storage Market (Billion US$), 2011 – 2014
Figure 6-1: Worldwide – Hype Cycle of Emerging Technologies, 2009
Figure 6-2: Worldwide – Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM)
Investment in Cloud Computing (Million US$), 2007 - May 2010
Figure 6-3: Worldwide – IBM Investment in Cloud Computing (US$ Million): 2006 – Jan 2010
Figure 6-4: IBM – Acquisitions (SPSS, FileNet, Cognos) Value (Billion US$), 2006 - 2009
Figure 6-5: Oracle – Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems,
BEA Systems, People Soft) Value (Billion US$), 2004 - 2008
Figure 7-1: Worldwide – Rate the Challenges / Issues in Cloud Computing
Figure 8-1: Worldwide – Mobile Cloud Computing Subscribers (Million) 2008 – 2009
Figure 8-2: Worldwide – Mobile Cloud Computing Subscribers Forecast (Million) 2010 – 2014
Figure 9-1: USA – Federal IT Spending & Future Forecast (Billion US$), 2007, 2009 & 2014
Figure 9-2: Worldwide – Federal Cloud Computing Spending (Million US$), 2008 – 2009
Figure 9-3: Worldwide – Forecast for Federal Cloud Computing Spending (Million US$), 2010 – 2014
Figure 9-4: Japan – Japanese Government’s Kasumigaseki Cloud
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List of Tables:
Table 3-1: Worldwide – Comparatively Analysis of Assets and Expenses in Internal IT, Managed Service
& Cloud Services (Number US$), 2009
Table 5-1: Worldwide – Total CRM Software Vendor Revenue Estimates (Million US$, Percent Growth),
2007 - 2008
Table 6-1: Global – Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com,
Heroku, RightScale) (US$ Million), 2007 & 2008
Table 6-2: IBM – Acquisitions 2006 – 2009
Table 6-3: Oracle – Major Acquisitions 2004 – 2008
Table 6-4: Worldwide – Mergers & Acquisitions in Cloud Computing (Million US$), 2002 - 2009
Table 6-5: Worldwide – Younger Startup Companies Funding in Cloud Computing (Million US$), 2007 -
2009
Table 6-6: Worldwide – 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009
Table 8-1: Worldwide – Mobile Cloud Computing Market Forecast (Billion US$), 2015
Table 10-1: SalesForce.com – Key Highlights
Table 10-2: SalesForce.com – Revenue & Year on Year Growth (Million US$; Percent), 2008
Table 10-3: Oracle – Key Highlight
Table 10-4: Oracle – Revenue & Year on Year Growth (Million US$, Percent), 2008
Table 10-5: RightNow – Key Highlight
Table 10-6: RightNow – Revenue & Year on Year Growth (Million US$, Percent), 2008
Table 10-7: SAP – Key Highlight
Table 10-8: SAP – Revenue (Million US$), 2008
Table 10-9: NetSuite – Key Highlight
Table 10-10: NetSuite – Revenue & Year on Year Growth (Million US$), 2008
Table 10-11: Workday – Key Highlight
Table 10-12: Workday – Revenue & Year on Year Growth (Million US$), 2008
Table 10-13: Descartes – Key Highlight
Table 10-14: Descartes – Revenue & Year on Year Growth (Million US$), 2008
Table 10-15: Ariba – Key Highlight
Table 10-16: Ariba – Revenue & Year on Year Growth (Million US$), 2008
Table 10-17: Ketera – Key Highlight
Table 10-18: Ketera – Revenue (Million US$), 2008
Table 10-19: Cisco WebEx – Key Highlight
Table 10-20: Cisco WebEx – Revenue (Million US$), 2008
Table 10-21: SumTotal – Key Highlights
Table 10-22: SumTotal – Revenue & Year on Year Growth (Million US$), 2008
© Renub Research Page 13 of 32
Table 10-23: IBM LotusLive – Key Highlights
Table 10-24: YouTube – Key Highlights
Table 10-25: YouTube – Revenue & Year on Year Growth (Million US$), 2008
Table 10-26: Adobe – key Highlight
Table 10-27: Pervasive – Key Highlight
Table 10-28: Pervasive – Revenue & Year on Year Growth (Million US$), 2008
Table 10-29: Cast Iron – Key Highlight
Table 10-30: Cast Iron – Revenue & Year on Year Growth (Million US$), 2008
Table 10-31: Boomi – Key Highlight
Table 10-32: Boomi – Revenue & Year on Year Growth (Million US$), 2008
Table 10-33: Force.com – Key Highlight
Table 10-34: Force.com – Revenue & Year on Year Growth (Million US$), 2008
Table 10-35: Google Apps Engine – Key Highlight
Table 10-36: Amazon S3 – Key Highlights
Table 10-37: RightScale – Key Highlight
Table 10-38: Amazon EC2 – Key Highlight
Table 10-39: GoGrid – Key Highlight
Table 10-40: SkyTap – Key Highlight
© Renub Research Page 14 of 32
3. PESTEL – Framework Analysis of Cloud Computing
3.1 Political Analysis of Cloud Computing
The Cloud becomes subject to complex geopolitical issues, and providers are pressed to
satisfy myriad regulatory environments in order to deliver service to a global market. This
dates back to the early days of the Internet, when libertarian thinkers felt that “cyberspace
was a distinct place calling for laws and legal institutions of its own”. In order for Cloud
Computing to continue to evolve into the borderless, unbiased global tool that it could be, it
needs to be separated from politics. Currently, countries like China and the United States are
making laws that are having a negative ripple effect on the development of the global cloud,
and thus a negative effect on the enrichment of the global economy.
Take, for example, the United States. Its Patriot Act is having far reaching consequences to
companies operating under its umbrella. Canada has recently asked that its government will
not use computers in the global network that are operating within United States borders,
because the Canadian data stored on those computers could conceivably be negatively
impacted by the repercussions of the Patriot Act.
Despite efforts (such as US-EU Safe Harbor) to harmonize the legal environment, as of 2009,
providers such as Amazon Web Services cater to major markets (typically the United States
and the European Union) by deploying local infrastructure and allowing customers to select
“availability zones.” Nonetheless, concerns persist about security and privacy from individual
through governmental levels e.g., the USA PATRIOT Act, the use of national security letters,
and the Electronic Communications Privacy Act’s Stored Communications Act. Politics are
affecting the scalability of the internet, the availability of internet access, the free flow of
information and the cloud based global economy on a daily basis.
© Renub Research Page 15 of 32
4. Worldwide – Cloud Computing
4.1 Cloud Computing Market
Worldwide Cloud Computing services revenue is continuing to grow at a rapid rate; with it
expected to top US$ 11.28 Billion in 2009.The market of Cloud Computing in the previous year
was worth US$ 9.10 Billion. The lion’s share of the market will be made up of cloud-based
advertising for the next few years. The different segments of the Cloud Computing market
(SaaS, PaaS, IaaS) show different maturities and adoption levels. While SaaS definitely
represents the largest portion of the Cloud Computing market (89%), PaaS and IaaS have
higher growth potential.
Figure 4-1: Worldwide – Cloud Computing Market (Billion US$) 2008 – 2009
Source: Gartner, Renub Research Estimates
9.10
11.28
0
2
4
6
8
10
12
2008 2009E
Billio
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S$
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5. Cloud Computing Market Segmentation
Cloud Computing market segmentation is based on the Cloud Computing Models in which each
module have well growth rate and adoption rate by the companies.
5.1 Worldwide Software as a Service (SaaS) Market & Future Forecast
The SaaS market has reached approximately US$ 9.48 Billion at the end of 2009. Previous year
(2008) worldwide SaaS market size was US$ 8.1 Billion. The adoption of SaaS continues to
grow and evolve within the enterprise application markets as tighter capital budgets in the
current economic environment demand leaner alternatives, popularity increases, and interest
for platform as a service and Cloud Computing grows.
Figure 5-1: Worldwide – Software as a Service (SaaS) Market (Billion US$), 2008 – 2009
Source: Gartner May 7, 2009
Worldwide Software as a Service (SaaS) Market Forecast
The Worldwide Software as a Service (SaaS) market will show consistent growth through 2013.
Worldwide SaaS revenue will total US$ 17.80 Billion for the enterprise application markets. In
8.10
9.48
7.00
7.50
8.00
8.50
9.00
9.50
10.00
2008 2009E
Billio
n U
S$
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the year 2008 it was only US$ 8.1 Billion this represents the CAGR of 17.05 % for the period
spanning 2010- 2013.
The composition of the worldwide SaaS landscape is evolving as vendors continue to extend
regionally, increase penetration within existing accounts, 'Greenfield' opportunities, and offer
more vertical-specific solutions as part of their service portfolio or through partners. The
push in conjunction with partners has apparently been a key factor in driving growth.
Figure 5-2: Worldwide – Forecast for Software as a Service (SaaS) Market 2010 – 2013
Source: Gartner
5.2 Software as Service Segment
The various segments within the SaaS market will grow at a different rate. The fastest
growing among these are Content, Communications and Collaboration (CCC), Customer
Relationship Management (CRM), Enterprise Resource Planning (ERP) and Supply Chain
Management (SCM).
11.10
12.99
15.20
17.80
0
2
4
6
8
10
12
14
16
18
20
2010 2011 2012 2013
Billio
n U
S$
© Renub Research Page 18 of 32
Figure 5-3: Worldwide – Software as a Service (SaaS) Segments (Percent), 2009
Source: Gartner May 7, May 2009
5.2.1 Content, Communications and Collaboration (CCC) & Future Forecast
The content, communications and collaboration (CCC) market continues to show the widest
disparity of SaaS revenue across market segments, generating US$ 2.5 billion in 2009, up from
US$ 2.15 billion in 2008.The strongest segments in CCC are Web-Conferencing and E-Learning
and to lesser extent e-mail and team collaboration.
31%
6%
2%27%
17%
11%
6%
Content, Communications and Collaboration (CCC)
Office Suites
Digital Content Creation (DCC
Customer Relationship Management (CRM)
Enterprise Resource Planning (ERP
Supply Chain Management (SCM)
Other Application Software
© Renub Research Page 19 of 32
Figure 5-4: Worldwide – Content, Communications and Collaboration (CCC) Market (Million US$), 2008 – 2009
Source: Gartner May 7, 2009
Content, Communications and Collaboration (CCC) Market Future Forecast
The content, communications and collaboration (CCC) markets remains the largest
contributors to the overall SaaS enterprise application markets with revenue exceeding US$
2.5 billion in 2009, and it is expected to amount to US$ 5.1 billion by 2013.This represents the
CAGR of 19.35% for the period of 2010 to 2013.
2,155
2,505
1900
2000
2100
2200
2300
2400
2500
2600
2008 2009
Millio
n U
S$
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Figure 5-5: Worldwide – Forecast for Content, Communications and Collaboration (CCC) Market (Million US$), 2010 – 2013
Source: Gartner
3.0
3.6
4.2
5.1
0
1
2
3
4
5
6
2010 2011 2012 2013
Billio
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6. Cloud Computing Drivers
6.2 Investment in Cloud Computing
Investment in Cloud Computing is one of the key drivers of the Cloud Computing. It shows the
future of the Cloud Computing is excellent and investors are ready to take the benefits of
these growing sectors. IBM wants to become a market leader in the Cloud Computing. For
this, IBM has invested US$ 830 Million in different segments of the Cloud Computing. Fujitsu
and Microsoft also plan to invest in the Cloud Computing. Their estimated budget for Cloud
Computing is US$ 537 Million and US$ 500 Million respectively.
For investors in particular, the Cloud Computing phenomenon is an excellent opportunity to
pump some money in and get some quick money out. The role of the investor is to make sure
that the data centers such as the ones powered by Google continue to increase in storage
capacity exponentially over the next few years. As the storage capacity increases, the same
amount of processing power can be used to power the Cloud Computing of several different
client companies all renting under the same utilities standard.
Figure 6-2: Worldwide – Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM) Investment in Cloud Computing (Million US$), 2007 - May 2010
830
537
500
250
200
30
12
0 100 200 300 400 500 600 700 800 900
IBM
Fujitsu
Microsoft
HP And Microsoft
Intel
IBM And Google
Amazon
Million US$
© Renub Research Page 22 of 32
Source: Cloudcomputingcertification.com, IBM, ChannelWeb.com and Thefreelibrary.com, Fujitsu, Microsoft and Intel Companies Website, New York Times, arstechnica.com and Seattlepi.com
The table no.6-1 summarises some of the Cloud Computing companies and their major
investors in the company with total invested value and technologies in which they are
invested.
Table 6-1: Global – Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com, Heroku, RightScale) (US$ Million), 2007 & 2008
Company Name Major Investors
Total Invested (US$ Million) Technology
10gen.com Union Square Ventures 1.5 Sponsors an open-source database that makes cloud applications easier to build
Appistry.com Stuart Mill Venture Partners 23
Makes it possible to move business functions to a cloud while keeping existing system
Elastra.com
Amazon, Bay Partners, Hummer Winblad Venture Partners 14.6
Helps businesses use public clouds in concert with their internal IT setups.
Heroku Redpoint Ventures, Y Combinator 3
Allows rapid deployment of systems based on Ruby on Rails, a popular way of building Web applications
RightScale Benchmark Capital, Index Ventures 22.2
Provides essential hand-holding for companies wanting to run applications on a variety of public and private clouds
Source: www.technologyreview.in
6.3 Mergers & Acquisitions in Cloud Computing
6.3.1 Oracle Acquisitions
Oracle introduced several new products and bragged about acquiring dozens of companies in
less than four years. Oracle has acquired 41 companies in the past 45 months and considers
acquisitions the primary way enterprise software companies can remain competitive and
innovative. Some of the Oracle acquisition is given below.
© Renub Research Page 23 of 32
Table 6-3: Oracle – Major Acquisitions 2004 – 2008
Company Name Functional Area Acquisitions Year
PeopleSoft ERP December-04
Siebel Systems CRM September-05
Stellent Content management November-06
Hyperion Solutions Business intelligence March-07
Agile Software Product lifecycle management May-07
BEA Systems Middleware January-08
Source: The 451 M&A KnowledgeBase
Figure 6-5: Oracle – Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems, BEA Systems, People Soft) Value (Billion US$), 2004 - 2008
Source: The 451 M&A KnowledgeBase
6.4 Venture Capital Funding in Cloud Computing
Some of the selected venture capital funding has conducted during the past years are
summarized in the table below.
0.44 0.495
3.3
5.85
8.5
10.46
0
2
4
6
8
10
12
Stellent Agile Software
Hyperion Solutions
Siebel Systems
BEA Systems PeopleSoft
Billio
n U
S$
© Renub Research Page 24 of 32
Table 6-6: Worldwide – 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009
Company Date Last Round
(Million US$) Round Type Total Raised (Million US$)
Hyperic, Inc. June 05, 2007 6.1 B 9.9
Layered Technologies March 11, 2008 11.0 A 11.0
New Relic, Inc. May 01, 2008 3.5 A 3.5
Nordic Edge June 04, 2007 NA NA NA
Nirvanix, Inc. April 10, 2009 5.0 C 23.0
OpSource, Inc. August 17, 2009 4.0 F 60.5
ParaScale June 18, 2008 11.4 A 22.6
PerspecSys December 04, 2007 NA NA NA
Ping Identity January 09, 2009 8.0 D 28.5
Rackspace Hosting October 13, 2005 10.0 A 10.0
rPath June 24, 2008 10.0 C 25.5
ServerVault October 30, 2000 9.0 A 9.0
Skytap, Inc. July 30, 2007 6.0 A 6.0
SnapLogic May 22, 2007 2.5 A 2.5
Soasta, Inc. September 08, 2008 6.4 C 10.7
Sonoa Systems October 15, 2008 10.0 C NA
Stratavia July 25, 2007 6.3 B 9.5
Symplified, Inc. June 09, 2008 6.0 A 6.0
Terremark (VMware 5% invested ownership) May 29, 2009 20.0 PIPE NA
TriCipher, Inc. January 27, 2009 12.0 C 35.1
Vertica February 12, 2007 16.5 B 23.5
Virtual Iron January 28, 2008 20.0 E 64.5
Xeround July 09, 2008 16.0 B 29.5
Zimory March 03, 2008 NA A NA
Zetta September 12, 2008 10.7 A 10.7
Zmanda May 22, 2007 8.0 B 13.0
Source: Mooreland partners
© Renub Research Page 25 of 32
8. Mobile Cloud Computing
Mobile Cloud Computing could be defined as the availability of Cloud Computing services in a
mobile ecosystem. This incorporates many elements including consumer, enterprise,
femtocells, transcoding, end to end security, home gateways and mobile broadband enabled
services.
8.1 Mobile Cloud Computing Subscribers & Future Forecast
The number of mobile Cloud Computing subscribers worldwide will grow rapidly. In the year
2008, Mobile Cloud Computing subscribers were 42.8 Million, which is approximately 1.1% of
all mobile subscribers all over world. It is estimated that by the year 2009, it will reach 72.34
Million.
Figure 8-1: Worldwide – Mobile Cloud Computing Subscribers (Million) 2008 – 2009
Source: ABI Research, Renub Research Estimates
42.80
72.34
0
10
20
30
40
50
60
70
80
2008 2009E
Millio
n
© Renub Research Page 26 of 32
10. Key Players of Cloud Computing
A Cloud Computing service provider owns and operates Cloud Computing system to deliver
services (Software, Platform or Infrastructure) to consumers. Currently, we see mix large and
small players in the market and there is still space for outsiders. Today, while customers are
starting to adopt the technology, regulators are not directly active and the main integrators
involved are the same as the traditional software and hardware market. While their current
influence is relatively restricted, as the market grows, it will be crucial to follow the
development of these actors in the game. As the main innovations and evolutions of the
market are currently driven by the providers. We will focus on these players and will present
what we believe is subset of the most representative players in the Cloud Computing market.
Cloud providers can be classified into three different families: SaaS, PaaS and IaaS , with each
family divided into sub segments. For each sub segment, we have selected a set of
representative players based on their offers, individual maturity, and the role they play
within their sub segment. The current land scope is a mix of recent and new niche players
competing with more established software and hardware vendors. We compose these
providers based on the following criteria.
Domain of Activity.
Date of First Cloud Release.
Year on Year growth (2007 - 2008).
Key Differentiators.
A Sample of Key Client.
A Sample of Key Partnership.
10.1 Customer Relationship Management (CRM) – (SaaS)
A growing proportion of SaaS providers are designing their solutions to address the unique
business requirements of specific industries. The SaaS market landscape is divided into
different sub segments.
© Renub Research Page 27 of 32
The “On Demand” CRM market is one of the most mature segments in the SaaS market. While
the market is categorized of multitude of niche players focusing on sub segments of CRM
(Marketing, BI, Sales, Servicing), it is largely dominated by salesforce.com, which combines
the complete CRM suite functionalities is one offering.
10.1.1 Salesforce.com
Salesforce.com offers customer relationship management (CRM) application services in the
Software as a Service (SaaS) Industry. In particular, Salesforce.com is involved in offering
Cloud Computing services to industries and businesses of all sizes. The company uses Cloud
Computing to give its customers access to online software, with minor implementation and no
on-premise installation or maintenance of software or physical servers.
Salesforce.com makes money through subscription and support fees associated with its
customers using Salesforce's applications. These applications give Salesforce.com customers
access to systems which can systematically record, store, and act upon business data. These
applications are used to optimize different aspects of a company's business including sales,
marketing, partnerships and customer service. The company’s CRM services primarily focus on
sales-force automation, marketing automation, customer service and support automation. In
addition, it provides training, consulting and implementation services. In 2008, the company
was geographically based in the Americas (72% of its revenue), followed by the Europe (17% of
revenue).
Salesforce.com is heavily invested in Cloud Computing application services and derived 91.4%
of its 2008 revenue from subscription and support fees associated with cloud services. Cloud
Computing has grown rapidly since 2007 and is set to capture 25% of all Information
Technology growth spending by 2012. However, there is significant uncertainty as companies
and users are often reluctant in using largely undefined cloud services with no central
database.
© Renub Research Page 28 of 32
Key Differentiators
The company is market leaders in sales functionalities and moving aggressively into new
areas. Salesforce.com is a pioneer in all areas of CRM on demand and was the first on the
market. They are currently contributing substantial to growth of this market by constantly
developing application that leverages 2.0 technologies.
Table 0-1: SalesForce.com – Key Highlights
Domain of Activity Date of First Cloud Release Sample of Key Client Sample of Key Partners
Marketing Sales Customer Service 1999
Allianz Dell Kone
Amazon Web Services CastIorn Google
Source: Deliottie
Table 0-2: SalesForce.com – Revenue & Year on Year Growth (Million US$; Percent), 2008
2008 Revenue (Million US$) Year on Year Growth, Percent
1,077 43.8%
Source: Deliottie
© Renub Research Page 29 of 32
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