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Gigaom Structure : June 22, 2011
FUTURE OF CLOUD LEADERSHIP PANEL

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Michael Skok
General Partner
Leadership Panel
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Dries Buytaert
CTO & Founder
President
Lew Moorman
John Dillon
CEO
Marten Mickos
CEO
@Dries @LewMoorman
@JohnDillon @EntreCapitalist @MartenMickos

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Agenda

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Enterprise Cloud Computing Definitions
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SaaS
[application]
PaaS
[platform]
IaaS
[infrastructure]
Storage Compute Network
Dev Tools Frameworks Management
CRM
Web / Mobile
Applications
Sales Force
Automation
Blogs
Email
Content
Management
Marketing Payroll
Office
Productivity

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SURVEY BACKGROUND
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www.FutureCloudComputing.net

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Survey Partners & Collaborators
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Who took the survey?
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46%
vendors
54%
non-vendors
417Total Responses

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Who took the survey?
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Survey Respondents
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Firms
9k
100k
6M
>1000
Enterprise
100-1000 employees
Mid-Market
<100 employees
Small
Source: 2007 US Census Bureau; IDC, Salesforce.com
Survey
Respondents
14%
18%
68%
OnPremise
Stronghold
OnDemand
Stronghold
= Cloud Market

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What would you like to
hear about cloud
computing?
 Usage… today
 Drivers,
 Inhibitors
… for the future

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How do Customers Characterize their Approach to
Using Cloud Computing Today?
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Experimenting
Waiting to mature
Complete confidence for
mission critical applications
Using for usage spikes
Will never use, too risky10%
26%
40%
11%
13%

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LIVE Vote!
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How would you characterize your approach
to utilizing cloud infrastructure today for
mission critical business applications and
processes?
“toorisky”Never, cloud too risky……….
Waiting for cloud to mature…“waiting”
Experimenting…..……………“experiment”
For usage spikes…………….“spikes”
Complete confidence………..“complete”

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Months Using Cloud
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0%
5%
10%
15%
20%
25%
30%
35%
40%
3 10 12 18 24 36 48 60
Months
Responses
Average
Months
Using Cloud20

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LIVE Vote!
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What are the most important drivers
to adopting Cloud Computing?
“cost”Cost………………….
Agility……………….. “agility”
Mobility…..…………. “gomobile”
CapEx to OpEx….… “capex”
Scalability…………...“scale”
Pace of Innovation…“pace”
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Agility Scalability Cost Efficiency Innovation Capex to
Opex
Competitive Mobility Other Customer
Demand
Cloud APIs
Drivers For Cloud Adoption
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47%
263%100%
113%
64%
Now vs. 5 years

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Inhibitors to Adoption… What is Top-of-Mind?
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2%
3%
6%
10%
11%
11%
12%
12%
13%
20% Security
Compliance
Vendor Lock-in
Interoperability
Reliability
Complexity
Privacy
Pricing
Expense
Other

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What is the Strategy of Cloud Customers Today?
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Hybrid
39%
Public
37%
Private
24%
… in the Future?
21%
12%
27%
42%

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Cloud Computing TCO is…
29%

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Cloud Computing TCO is…
57%
29%
14%

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Impact of Cloud Computing on IT Manageability?
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More ComplexLess Complex No Impact
39% 39%22%

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What is the Impact of Cloud Computing on Hiring?
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No Impact
42%
Increased
10%
Expected
increase
22%
Decreased
17%
Expected
decrease
9%
26%
Decrease
32%
Increased
42%
None

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Top Up and Coming Cloud Companies?
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PUBLICPRIVATE

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Cloud Investments
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2009
2010
2011
64
deals
93
deals
$482M
$713M
??
Source: Dow Jones Company

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What Services do Vendors feel they need to provide for
use in the Future?
32

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Most Likely sectors disrupted by
Cloud Computing over the next 5 years

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Cloud Revenue Projections ($m)
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$6,891
$8,814
$11,296
$14,104
$17,538
$21,057
$-
$5,000
$10,000
$15,000
$20,000
$25,000
2009 2010 2011 2012 2013 2014
Iaas, Paas & SaaS Revenue

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LIVE Vote!
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36
In 5 years, what percentage of your
computing will be in the Cloud?
“25perc”0-25%…………….…
26-50%…………….. “50perc”
51-75%…..……..….. “75perc”
76-100%….…………“100perc”
“nothing”None..…………….…

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What % of Your Computing is in the Cloud Today?
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None
25%
50%
100%
23%
34%
26%
14%
3%
17%
22%
14%
38%
10%
75%
today
+5 yrs
…in +5 Years?
75% predict
2/3rds of computing
will be in the Cloud!

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You asked for it – we covered it…
 Cloud usage… today
 Drivers
 Inhibitors … for the future
Full details of the
survey, plus thought
leadership…
http://www.northbridge.com/cloud-computing
@futureofcloud

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Cloud Storm is Brewing!
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• Private and Public Clouds are gathering
• Hybrid, Interoperability are going to cause a storm
• Security, Compliance & Vendor lock-in are going to rain on
the parade
• As Mobility surges
• Lightning may strike twice – Agility, Innovation – for
Competitive Advantage
• Impact on IT manageability, Staffing is still unclear, but
TCO should be reduced

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A big thank you from North Bridge to…
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Dries Buytaert
CTO & Founder President
Lew MoormanJohn Dillon
CEO
Marten Mickos
CEO