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 or a gazelle. When the sun comes up, you better start running.
Cloud Market Evolution Complexity More Demanding Customers Phase Transition Demand Intelligence, Investments, Product Introductions and New Deals Point to an Increase in: Spending and Adoption Driven by Enterprise and Mid-Market • “Enterprise” Demand • Private Cloud Activity (External and Internal • Business Critical Applications / Workloads Migrating to IT Exerts More Control Spending and Adoption Driven Cloud Based Infrastructure by Developers / SMB A Broad Range of Apps are Being Built and Migrated to Cloud Based Shadow IT Infrastructure Net New Applications Web 2.0 Private Clouds Gain Traction Workloads “Enterprise Class Services” and Project Based, Test Dev. Digital Infrastructure Public Clouds Dominate “Good Enough Services” Service Providers Increasingly become “Enterprise Class” Hoster’s / On -Line Providers On-Line / Hosters Continue to Dominate Disrupt 2012 2014 – 2015/16 3 Source:451 Research
Follow the Money On Premises Infrastructure Deployment Off-Premises Deployment Hosted Deployment 100% 100% 100% 90% 24% 25% 26% 28% 29% 32% 80% 80% 80% 70% IaaS 28% 60% 31% 60% 60% 32% 25% 35% Private 30% Public 50% Cloud SaaS 40% 40% Cloud 40% 14% 12% 30% Virtuali PaaS 43% 20% 48% 37% 21% 42% 20% 20% zed 17% 10% 10% 0% 9% 0% 0% Today 2 Years Today 2 Years Today 2 Years
Hosted Private Cloud is Perceived as “Business Ready” 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: Hosted Private Cloud is 8.0 8.0 8.0 Perceived as “Business Ready” Seen as more suitable across the 7.5 7.5 7.5 board than traditional dedicated, except for : NEEDS TO CONNECT TO OTHER DATA WITH APIS OR WEB SERVICES 7.0 7.0 • 7.0 ACCESSED BY SIGNIFICANT NUMBERS OF MOBILE DEVICE USERS Secure network connection HAS LOW ORGANIZATIONAL RISK IN EVENT OF LOSS OR OUTAGE • Adherence to Data Sovereignty ADHERENCE TO DATA SOVEREIGNTY LAWS /REGULATORY • Low risk for outage 6.5 6.5 6.5 HAS UNPREDICTABLE OR SEASONAL USER DEMAND • Dependencies with on-prem apps IS AN EXISTING, WELL TESTED APPLICATION … HAS DEPENDENCIES WITH ON-PREMISE APPLS REQUIRES A SECURE NETWORK CONNECTION • REQUIRES LOW TOTAL COST OF OWNERSHIP Tuning &customization EASILY SCALE LARGE NUMBERS OF USERS 6.0 6.0 REQUIRES TUNING OR CUSTOMIZATION 6.0 REQUIRES MULTI-SITE REDUNDANCY REQUIRES LOW NETWORK LATENCY REQUIRES MULTIPLE LEVELS OF IAM Performs better than Public IS A NEW, UNTESTED WORKLOAD REQUIRES LOW UPFRONT COSTS Cloud for : 5.5 5.5 5.5 • Secure network connection • Identity and Access Management 5.0 5.0 5.0 4.5 4.5 4.5
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 ” 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. Badger-Fluff Fanny Freddie
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
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Debate Session IV Four Five One – thinks the cloud has just begun Angus Robertson, VP Product Marketing Mark Showalter, Senior Director, Corporate Marketing Sebastien Jobert, Director of engineering Ev Kontsevoy, Directore of Product
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