state of the public cloud market webinar

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR’s Public Cloud Business QuarterlySM Research Highlights and Outlook

Technology Business Research Quarterly Webinar Series

April 14, 2014

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2 TBR Quarterly Webinar Series | 4.15.14 | www.tbri.com | ©2014 Technology Business Research Inc.

Cloud Business Quarterly Research Highlights and Outlook: Webinar Presenters

Jillian Mirandi Senior Analyst, Cloud Practice [email protected] @JillianNotes

Allan Krans Practice Manager, Cloud [email protected] @AllanKrans

mailto:[email protected]


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Cloud Market Overview

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

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Year

-to

-Yea

r G

row

th

0%

50%

GDP Software

3% 2.x%

1%

Devices Datacenter

0.6%

Services

3%

Telecom

-10%

TIS

3%

Public Cloud

26%

Managed Private Cloud

45%

Cloud PS

41%

Cloud Components

180%

Vendors from across the IT landscape are focused on cloud to achieve growth in the current, stagnant traditional IT environment

CLBQ 4Q13 Research Highlights

IT Market

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2. Deliver value around “as a service” cloud services

1. Deliver “as a services” cloud services

3. Enable partners and customers to deliver “as a service” cloud services

Public Cloud Managed

Private Cloud

Cloud PS

Cloud Components

Massive Opportunity

Ways to Monetize “Cloud”

There are different opportunities to monetize on cloud migration trends, and picking the right niche proves challenging


IT Market

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Public Cloud Market

Public cloud is the oldest and most mature cloud segment and will be leveraged by many companies as a means to hybrid cloud and C&SI

Public Cloud


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The Pendulum of the Cloud Market

Cloud is shifting from a technology to an outcome-driven environment, changing the market landscape for Amazon Web Services and others

Public Cloud Adoption Shadow IT purchasing Fragmented management Private Cloud Adoption

IT-driven purchasing Traditional management

Early Hybrid Adoption IT & LOB purchasing Modern management

Technology-focused Adoption

Outcome-based Adoption


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Public Cloud Market Segments

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Public Cloud Market

The public cloud market will grow steadily, with high volumes of revenue driven by born-on-the-cloud applications and increasing cloud use cases


Public Cloud IaaS

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Public Cloud % Revenue Growth vs. Public Cloud $ Revenue Growth

As the market matures, the leaders more clearly separate from the laggards in terms size, growth, GTM evolution and portfolio expansion


Leaders

Laggards

Contenders

Note: Vendors included on graphs and leaderboards from slides 8 to 11 realized an estimated $150 million in trailing 12-month public cloud revenues (from 1Q13 through 4Q13).

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SaaS: Go-to-Market Strategy Expansion

PaaS: ISV Partner & Developer Attraction

IaaS: New Use case and C&SI Investments

Public Cloud Market Summary

Cloud leaders will simplify development and enlist partners to sustain their positions and drive horizontal clouds into vertical markets

1.

2.

3.


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Public Cloud SaaS Revenue Growth vs. Corporate Revenue Growth

Traditional application vendors look to established channels to cross-sell and sell through SaaS to ward off disruptive threats


Leaders

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Customer engagement and renewals are vital to survivable and viewed as an ongoing process as opposed to separate steps Public Cloud SaaS: Go-to-Market Strategy

Account Expansion

Attract

Cultural Fit

Establish Require-

ments

Purchase

Onboard

Expand

Sales Action

Delivery Action

Land and Expand

New Account Penetration, Up-selling, cross-selling and renewals all hold equal importance and will eventually drive profitability

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IaaS: New Use case and C&SI Investments



1.

2.

3.


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Platform vendors invest in user experience and capability improvements to attract and retain developers Public Cloud PaaS % Revenue Growth vs. Public Cloud PaaS $ Revenue Growth

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IBM will lock in its developer base by moving legacy platforms to the cloud and supporting multiple open-source frameworks and languages Public Cloud PaaS: IBM BlueMix

Image from IBM

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1.

2.

3.


IaaS: New C&SI Investments


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AWS’ IaaS leadership built on basic IaaS is forcing competitors to invest in more sophisticated portfolios to differentiate


Public Cloud IaaS % Revenue Growth vs. Public Cloud IaaS $ Revenue Growth

AWS

IBM

Google

25 other vendors

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Google has the scale, ISV ecosystem, and talent to catch AWS, but 2014 will tell if Google can support the enterprise through C&SI partnerships


Public Cloud IaaS Vendors’ C&SI Ecosystems

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Questions?

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Cloud Business Quarterly Research Highlights and Outlook: Webinar Contact Information

Jillian Mirandi

Senior Analyst, Cloud Practice

Email: [email protected]

Twitter: @JillianNotes

Allan Krans

Practice Manager, Cloud

Email: [email protected]

Twitter: @Allanktbr

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel





https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

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TBR Cloud Research Overview

The TBR Cloud Program consists of specific vendor, comparative vendor, and customer analysis supported by modeling and primary research

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Continuous portfolio expansion elevates TBR’s and our clients’ knowledge about what “cloud” really means to vendors and customers

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The combination of report lenses provide our customers with a comprehensive overview of the cloud market from various angles

Vendor Reports

Benchmarks

Customer Tracks

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Syndicated Research Coverage Cloud Vendor Reports (Cloud Business Quarterly)

Benchmarks (Benchmark XLS data is also available)

• Accenture Cloud* • Amazon Web Services* • Atos Cloud* • Capgemini Cloud* • Cognizant Cloud* • CSC Cloud* • Dell Cloud* • Deloitte Cloud* • Fujitsu Cloud* • Google Cloud* • HP Cloud* • IBM Cloud* • Infosys Cloud* • Microsoft Cloud* • Oracle Cloud* • Rackspace* • Salesforce.com • SAP Cloud* • ServiceNow* • TCS Cloud* • Verizon Cloud* • Wipro Cloud* • Workday

Public Cloud Benchmark The public cloud program compares and analyzes the strategies, results and drivers of 50 key vendors in the public cloud segment across Software as a Service, Platform as a Service and Infrastructure as a Service. Managed Private & Professional Services Cloud Benchmark* The managed private cloud and professional services program compares and analyzes the strategies, results and drivers of 29 key vendors in the managed private cloud and professional services market across Business Process as a Service, Software as a Service, Platform as a Service, Infrastructure as a Service, cloud consulting, cloud SI and cloud ADM. Cloud Components Benchmark* The cloud components program compares and analyzes the strategies, results and drivers of 12 key vendors that sell the building blocks of software and hardware used to construct public and private clouds. Note: There are also three semiannual cloud adoption studies and cloud topic reports (Cloud Security is available now and Cloud Orchestration is upcoming).

TBR Cloud Practice Syndicated Coverage

*Semiannual Report

About Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators.

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