day1 forrester cloud presentation
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Analyst reportTRANSCRIPT
© 2011 Forrester Research, Inc. Reproduction Prohibited 1
© 2011 Forrester Research, Inc. Reproduction Prohibited 2 © 2009 Forrester Research, Inc. Reproduction Prohibited
How Cloud Computing is Transforming Microsoft
John R. Rymer
February 1, 2011
© 2011 Forrester Research, Inc. Reproduction Prohibited 3
Cloud is the 3rd bet-the-company
transformation in Microsoft‟s history.
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1. Microsoft’s cloud computing pivot
2. How Microsoft is progressing with its cloud pivot
3. What Microsoft‟s cloud pivot means to you
4. Microsoft‟s latest attempt at mobile relevance
5. The role of CRM and other applications
6. My top 10 questions
Agenda
© 2011 Forrester Research, Inc. Reproduction Prohibited 5
Microsoft‟s goal: Make the latest industry transition
Build broad new development platform.
Transition current businesses to a common cloud-based platform.
Expand into new markets.
Raise the @#$%&! stock price.
© 2011 Forrester Research, Inc. Reproduction Prohibited 6 Source: Charleston Post and Courier, March 7, 2008
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IT Utility
Microsoft‟s goal: IT as a service
Applications
Data
Runtime
Middleware
OS
Virtualization
Servers
Storage
Networking
Annuity revenue
Pay, expand as you go
SLAs
Open
Hybrid clouds
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Let‟s take a step back: What is cloud computing?
A standardized IT capability (services, software, or infrastructure)
delivered as-a-service via Internet technologies in a self-service and pay-
per-use model.
Elastic capacity
Self-service
Pay as you go
Multitenant
Virtualized
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3 consumption models: IaaS, PaaS, and SaaS
Applications
Data
Runtime
Middleware
OS
Virtualization
Servers
Storage
Networking
Applications
Data
Runtime
Middleware
OS
Virtualization
Servers
Storage
Networking
Applications
Data
Runtime
Middleware
OS
Virtualization
Servers
Storage
Networking
IaaS PaaS SaaS
IT manages Vendor manages
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How Microsoft cloud is related to on-premise products
Server Platform Service Provider
Customer
Services Platform
Customer or
Service Provider Microsoft
Customer
Microsoft or
Service Provider
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How cloud is changing Microsoft‟s business model
PC Many devices
Windows Azure
.NET Open Web
Office + SharePoint, UC
EAs + Subscriptions, ads
Software + Services, hardware
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Core Java Core .NET
The Open Web
The strategy targets new enemies
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The .NET vs. Java battle is over
Source: Forrsight Software & Services Survey, Q3 2010
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1. Microsoft‟s cloud computing pivot
2. How Microsoft is progressing with its cloud pivot
3. What Microsoft‟s cloud pivot means to you
4. Microsoft‟s latest attempt at mobile relevance
5. The role of CRM and other applications
6. My top 10 questions
Agenda
© 2011 Forrester Research, Inc. Reproduction Prohibited 15
Microsoft‟s cloud portfolio for business is large and growing
BUSINESS APPS COLLABORATION STORAGE PLATFORM MANAGEMENT PRODUCTIVITY COMMUNICATIONS
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Microsoft‟s cloud strategy is very broad
Office
Communications
Collaboration
Business Apps
Management
Database
PaaS
IaaS
Appliances
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Awareness of Microsoft's cloud is high, but 3rd
0,4%
0,4%
0,4%
0,7%
1,1%
1,5%
1,9%
3,0%
3,7%
4,5%
8,6%
10,0%
10,4%
12,6%
12,6%
15,2%
15,6%
17,5%
19,7%
24,9%
26,0%
40,5%
Flexiant FlexiScale (formerly Xcalibre)
Layered Tech
SoftLayer Technologies
Skytap
CSC
The Planet
GoGrid
Capgemini
Savvis
Terremark
AT&T Synaptic Hosting or Compute
salesforce.com‟s VMforce
Verizon Business
Dell
Other
Rackspace/Mosso
Don‟t know
HP (including EDS)
IBM
Microsoft
Google App Engine
Amazon Web Services (AWS) Elastic Compute Cloud (EC2)
Base = 269 North American and European IT executives and technology decision-makers that currently use or plan to use
pay-per-use hosting of virtual servers
Which vendor(s) does your firm currently use/plan to use for pay-per-use hosting of virtual servers?
Source: Forrester‟s Forrsights Hardware Survey, Q3 2010
• Confusion of cloud and
hosting is rampant.
• The market is highly
fragmented.
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Developer engagement with cloud is nascent, and there‟s no clear platform winner yet
32%
24%
15%
3%
4%
1%
1%
21%
Microsoft Azure
Amazon EC2
Google AppEngine
IBM
Salesforce
Slicehost
AT&T
Other
“Which cloud-style service provider is your
primary deployment target?”
Base: 81 development professionals deploying to
the cloud – Dr. Dobbs DevTechnographics Q3 10
No (91.4%)
Yes (8.6%)
Base:1023 App dev professionals Forrester –
Dr. Dobbs Developer Technographics Q3 10
“Are you developing for the cloud?”
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There‟s more interest in IaaS than PaaS
38%
37%
43%
26%
19%
42%
17%
12%
3%
8%
14%
6%
5%
9%
4%
3%
3%
1%
4%
7%
1%
Interested but no plans Not interestedDon't know Planning to implement in a year or morePlanning to implement in the next 12 months Implemented, not expanding
(percentages may not total 100 because of rounding)
Base: 1,007 North American and European enterprise IT executives and software decision-makers
Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009
*Source: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2009
PaaS (software
buyers)
“What are your firm’s plans to implement or expand its use of PaaS/cloud computing/virtual servers?”
IaaS (software
buyers)
IaaS (hardware
buyers)*
20%
33%
12%
Total
>= planning
██ Don't know ██ Not interested ██ Interested but no plans
██ Planning to implement in a year or more ██ Planning to implement in the next 12 months ██ Implemented, not expanding ██ Expanding/upgrading implementation
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What if cloud isn‟t a product yet
Microsoft knows SKUs and EAs
Enterprises need
consultation to adopt
Partner ecosystem not
yet fully engaged
Result: High cost of sales and unnatural
motions
Pressure for more solution
“SKUs”
Adoption is slower than
needed
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Wanted: Cloud-building experts
Chief Software Architect
President of Server & Tools Division
President of Microsoft Business Division
Contact [email protected]
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Microsoft cloud SWOT
• Started early.
• Large cloud portfolio.
• Office 365.
• Hugely profitable.
• Reasonable vision.
• Geographic reach.
• Leadership in flux.
• PaaS bet not paying off.
• Broad strategy unfolding slowly.
• Azure requires rare talents.
• Marketing limited by old thinking.
• Security/compliance requirements
• Ecosystem not yet engaged.
• Beat IBM and Oracle to enterprise cloud
• Deeply penetrate telecoms
• Bridge consumerization gap
• Extend Office franchise
• Profit from the next platform
• Amazon
• Salesforce.com
• VMware
• Open Web, open source
• Apple
Strengths Weaknesses
Opportunities Threats
© 2011 Forrester Research, Inc. Reproduction Prohibited 23
1. Microsoft‟s cloud computing pivot
2. How Microsoft is progressing with its cloud pivot
3. What Microsoft’s cloud pivot means to you
4. Microsoft‟s latest attempt at mobile relevance
5. The role of CRM and other applications
6. My top 10 questions
Agenda
© 2011 Forrester Research, Inc. Reproduction Prohibited 24
What‟s in Microsoft‟s cloud for you?
Rewards
Deployment speed
Financial alignment
Outsource your hassles
Safety valve for peak loads
Easy sharing
© 2011 Forrester Research, Inc. Reproduction Prohibited 25
What risks do you have to overcome?
Rewards
Deployment speed
Financial alignment
Outsource your hassles
Safety valve for peak loads
Easy sharing
Risks
Security, compliance
Loss of control
Integration challenges
Vendor lock-in
Total cost
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How to think about private vs. public cloud
Existing Data Center
Public Cloud
Private Cloud, Hosted Cloud
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Deciding whether and how to “cloud”
Applications and
workloads
Security & Compliance
Funding, economics
Operational controls
© 2011 Forrester Research, Inc. Reproduction Prohibited 28
1. Microsoft‟s cloud computing pivot
2. How Microsoft is progressing with its cloud pivot
3. What Microsoft‟s cloud pivot means to you
4. Microsoft’s latest attempt at mobile relevance
5. The role of CRM and other applications
6. My top 10 questions
Agenda
© 2011 Forrester Research, Inc. Reproduction Prohibited 29
Microsoft targeting mobile in the enterprise, doing pretty well
August 2010 “Define Your Mobile Development Strategy”
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More than 7 In 10 shops allow some employees to choose their device
December 2010 “Mobile Development Goes Multiplatform”
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Can Microsoft miss the young SuperConnecteds?
November 2010 “Europe Mobile Technographics®: 2010”
25- To 34-year-olds that make
most intensive use of mobile
devices.
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Microsoft will also need developers, is behind
December 2010 “Mobile Development Goes Multiplatform”
© 2011 Forrester Research, Inc. Reproduction Prohibited 34
1. Microsoft‟s cloud computing pivot
2. How Microsoft is progressing with its cloud pivot
3. What Microsoft‟s cloud pivot means to you
4. Microsoft‟s latest attempt at mobile relevance
5. The role of CRM and other applications
6. My top 10 questions
Agenda
© 2011 Forrester Research, Inc. Reproduction Prohibited 35
We have a winner! Microsoft CRM
June 2010 “The Forrester Wave™: CRM Suites For Large Organizations, Q2 2010”
Forrester Wave™:
CRM Suites For Large
Organizations, Q2 '10
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And again …
June 2010 “The Forrester Wave™: CRM Suites For Midsized Organizations, Q2 2010”
Forrester Wave™:
CRM Suites For
Midsized
Organizations, Q2 '10
© 2011 Forrester Research, Inc. Reproduction Prohibited 37
But Microsoft‟s portfolio also contains duds
Forrester Wave™:
B2C eCommerce
Platforms, Q4 „10
October 2010 “The Forrester Wave™: B2C eCommerce Platforms, Q4 2010”
© 2011 Forrester Research, Inc. Reproduction Prohibited 38
My top 10 questions
1. Why the leadership changes? What‟s the plan?
2. How will Microsoft unlock the cloud development (PaaS)
opportunity?
3. Which of my OLTP apps can I easily host in Azure?
4. Will enterprise cloud adoption require more consulting services
than Microsoft has typically provided?
5. What is the plan to create more Dynamics “winners” like CRM?
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My top 10 questions
6. Will Microsoft support iPhone and Android native development
using Azure?
7. Will Microsoft create a Java strategy for Azure?
8. Is the Windows franchise different from the Azure franchise?
Explain.
9. Will Microsoft guarantee the security of my apps, the privacy of
my data, and the compliance of my processes? How?
10.Will my costs go down if I use Microsoft‟s cloud? Explain.
© 2009 Forrester Research, Inc. Reproduction Prohibited
Thank you
With contributions from:
James Staten ([email protected])
Jeffrey Hammond ([email protected])
Julie Ask ([email protected])
Bill Band ([email protected])
John R. Rymer
+1 650-581-3857
Twitter: @johnrrymer
www.forrester.com