Frank Gens' Keynote @ Innovation Forum 2009, Milan

1. Clouds and Beyond Positioning for the Next 20 Years of Enterprise IT Frank Gens SVP & Chief Analyst IDC

5. Part of a “Greater Cloud” Environment “ IT as Cloud Services” “ IT supporting Cloud Services delivery” Cloud Applications Cloud Platforms Cloud Collaboration Cloud Storage Cloud Servers/ Processing Cloud IT Management Cloud Health Services Cloud Government Services Cloud Entertainment Cloud Retailing Cloud Financial Services Cloud Supply Chain Services Cloud Product Dev Services Cloud IT Servers Databases Storage Network Equipment IT/Network Management Software Network Services IT Services App Development/ Deployment Software DISRUPTIVE

7. Why IT Cloud Services? Q: Rate the benefits commonly ascribed to the 'cloud'/on-demand model (1=not important, 5=very important) Source: IDC Enterprise Panel, August 2008 n=244 67.2% 73.3% 77.0% 77.5% 77.9% 81.5% 83.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Sharing systems/information simpler Encourages more standard IT Offers the latest functionality Less in-house IT staff, costs Low monthly payments Pay only for what you use Easy/fast to deploy % responding 3, 4 or 5

8. Why Not Cloud Services? Q: Rate the challenges/issues of the 'cloud'/on-demand model (1=not significant, 5=very significant) Not enough major suppliers yet Bringing back in-house may be difficult Worried cloud will cost more Not enough ability to customize Hard to integrate with in-house IT Availability Performance Security 74.6% 80.3% 81.1% 83.3% 84.5% 84.8% 88.1% 88.5% 65% 70% 75% 80% 85% 90% % responding 3, 4 or 5

10. Organizations Shifting Fast In Cloud Use Q: Current and future level use of cloud services in your organization? (1=none, 5=widespread) Source: IDC Enterprise Panel, August 2008 n=244 Storage Capacity Server Capacity App Development/Deployment Business Apps Personal Apps Collaborative Apps IT Management Apps 31.5% 28.7% 25.9% 34.0% 36.1% 46.3% 39.3% 15.5% 15.6% 16.8% 23.4% 25.0% 25.4% 26.2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % responding 4 or 5 Current In 3 years

11. IT Cloud Services: “Crossing the Chasm” We Are HERE

12. Cloud Supplier Attributes Users Want 30.4% 40.6% 46.3% 54.1% 55.4% 58.2% 61.9% 67.2% 68.0% 81.1% 83.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Have done business with my organization Are a large, established company Have local presence Have a large network of partners Can support many of my IT needs Are future-oriented , an innovator Can provide a complete solution Can move cloud offerings back on-premise Understand my business and industry Offer performance-level assurances /SLAs Offer competitive pricing % responding 4 or 5 Q: Importance of IT cloud services supplier attributes (1=not significant, 5=very significant) Source: IDC Enterprise Panel, August 2008 n=244

13. Key Vendors Are Building “Beachheads” WebEx Decho Smart Business Platform Blue Cloud Apps/Engine Business by Design AWS on EC2 Force.com Synaptic IaaS / Cloud Practice Open Cloud Solaris/EC2

15. How Can IT Cloud Services Support CIOs’ Ongoing Journey? Integration, Event & Deployment Interface & Access Consolidate: Reduce Costs & Improve Quality Virtualize: Simplify Access, Improve End-to-End Mgmt & Maximize Use Automate: Add Speed, Predictability & Reduce Labor “ Service-Oriented IT Delivery” Business Processes Collaboration/Messaging Service/Resource Mgmt & Security Virtualized Applications Virtualized Information Virtualized Storage Virtualized Processing Virtualized Infrastructure

16. Cloud = External (SOA) Sourcing Options Business Processes Integration, Event & Deployment Interface & Access Virtualized Information Virtualized Applications Collaboration/Messaging Service/Resource Mgmt & Security Virtualized Storage Virtualized Processing Virtualized Infrastructure Cloud Applications

17. Cloud = External (SOA) Sourcing Options Integration, Event & Deployment Business Processes Collaboration/Messaging Interface & Access Virtualized Information Integration, Event & Deployment Virtualized Applications Service/Resource Mgmt & Security Virtualized Storage Virtualized Processing Virtualized Infrastructure Cloud Platforms (“Platform-as-a-Service”)

18. Cloud = External (SOA) Sourcing Options Collaboration/Messaging Business Processes Interface & Access Virtualized Applications Virtualized Information Integration, Event & Deployment Service/Resource Mgmt & Security Virtualized Storage Virtualized Processing Virtualized Infrastructure Cloud Collaboration

19. Cloud = External (SOA) Sourcing Options Business Processes Collaboration/Messaging Service/Resource Mgmt & Security Integration, Event & Deployment Interface & Access Virtualized Applications Virtualized Information Virtualized Storage Virtualized Processing Virtualized Infrastructure Cloud Storage Cloud Servers/ Processing

20. Cloud = External (SOA) Sourcing Options Service/Resource Mgmt & Security Collaboration/Messaging Business Processes Interface & Access Virtualized Applications Virtualized Information Virtualized Infrastructure Virtualized Processing Virtualized Storage Integration, Event & Deployment Virtualized Information Service/Resource Mgmt & Security Cloud IT Management Ser v

21. “ Cloud” Includes Next-Gen On-Premise Service/Resource Mgmt & Security Collaboration/Messaging Business Processes Interface & Access Virtualized Applications Virtualized Information Virtualized Infrastructure Virtualized Processing Virtualized Storage Integration, Event & Deployment Virtualized Information Cloud-Enabled On-Premise (e.g., Appliances) Service/Resource Mgmt & Security Ser v

22. For Some Small or Medium Businesses Interface & Access Collaboration/Messaging Business Processes Virtualized Applications Virtualized Information Virtualized Infrastructure Virtualized Processing Virtualized Storage Integration, Event & Deployment Virtualized Information Service/Resource Mgmt & Security Virtualized Information Info Management & Security IT Complexity Disappears

24. IT Cloud Spending: Looks Modest … Worldwide IT Spending* by Consumption Model 2008, 2012 * Includes enterprise IT spending on Business Applications, Systems Infrastructure Software, Application Development & Deployment Software, Servers and Storage Source: IDC, October 2008 IT Cloud Services On-Premise IT 4% 9% CAGR 27% 5% 367 451 42 16 0 100 200 300 400 500 600 2008 2012 Worldwide IT Spending ($ billion)

25. … But a Big Growth Impact Sources of Incremental IT Spending* Growth in 2012 Cloud vs. On-Premise Source: IDC, October 2008 * Includes enterprise IT spending on Business Applications, Systems Infrastructure Software, Application Development & Deployment Software, Servers and Storage 479.9 449.0 430 435 440 445 450 455 460 465 470 475 480 485 2011 2012 Worldwide IT Spending ($ billion) Net new IT growth* = $30.8 billion IT Cloud IT Cloud Services growth On-Premise IT growth 25% 75%

26. How Will the Crisis Impact Cloud Adoption? +$8.4B 10 12 14 16 18 20 22 2009 2010 2011 2012 Pre-Crisis Forecast (Jul 2008) Spending ($B) Worldwide SaaS Revenue, 2009-2012 Revised Forecast (Nov 2008)