As commoditized cloud technologies are now more than ten years old, many « as a Service » businesses have reshaped our reality, and most companies are now taking advantage of these technologies — if only as a new flexible resource. As such, most winners and losers of this first wave of cloud and SaaS are expecting to face calmer years, with tools that are now both robust and at a plateau. This is probably far from the truth. A second wave of cloud technologies is rapidly shaping up, in some cases as an even more deeply integrated and ubiquitous layer bringing APIs to any form of business… and in other cases as a full-stack vertical that can essentially replace an entire value chain on its own. These new perspectives can be challenging to grasp when your company just came to term with the first wave of cloud opportunities and threats, and say, you don’t think that self-driving cars concern you because you’re not in the automotive industry. You probably should be a tad more concerned and start to future-proof your business model!

1. PAGE - CONFIDENTIAL – CHANEL Payment White Paper 2017
THE SECOND
COMING OF
CLOUD
How the second-wave of cloud technologies will
further reshape business models within the next
three years.

2. What we do is that we work with
those who change the market.
Whether modestly or in a very
radical way, they disturb, make
waves and do what others tried
without success. They walk off-
the-beaten-track, and if they
succeed, they alter the status quo.
Innovation is not measured by the
number of patents, but by the
impact of its change.
We believe that a restaurant
chain can be more innovative
than a pharmaceutical lab. And
although we do love technology
and recognize its transformative
power, we do not see it as the get-
go answer, simply a tool amongst
many.
LUXURY FINTECH
INNOVATION COPILOTS
Philippe MÉDA

3. Invention means the
conception of a novelty.
Instead innovation is defined
by the introduction of the
invention in the social
environment. The market is a
specific form of social
organization.
/ Joseph SCHUMPETER
THE SECOND COMING OF CLOUD
UNDERSTANDING INNOVATION

4. There is a theory which states
that if ever anyone discovers
exactly what the Universe is for
and why it is here, it will
instantly disappear and be
replaced by something even more
bizarre and inexplicable. There is
another theory which states that
this has already happened.
/ Douglas ADAMS
FUTURISTS VS. BILLIONAIRES
THE SECOND COMING OF CLOUD

5. The cloud is an important object for
innovators. It took time, but we finally
understand it in and out: how it changed
businesses by giving them elastic
computational scalability, reducing fixed and
sunked costs of IT to nothing much.
This is the story we have in mind for now...
THE SECOND COMING OF CLOUD
UNDERSTANDING INNOVATION

6. THE SECOND COMING OF CLOUD
CARS AND SECOND ORDERS
OF CONSEQUENCES

7. « Cumulative Tesla
autopilot miles now
at 222 million. »
/ Elon MUSK, Oct. 16, 2016
THE SECOND COMING OF CLOUD
CARS AND SECOND ORDERS
OF CONSEQUENCES

8. Google’s machine learning
and AI capabilities mean
that when photos are
captured by a Street View
car, algorithms can detect
and note relevant street
names and numbers,
automatically adding
them to Google’s database.
The software can also
identify business names
and logos. Google is
working to better the
software, taking its
capabilities further so one
day it can recognize
different types of stores
based on what they look
like, and reading smaller
signage that show details
like opening hours. THE SECOND COMING OF CLOUD
CARS AND SECOND ORDERS OF
CONSEQUENCES

9. « Finally, remember the
cameras. Pretty much every
vision of automatic cars
involves them using HD, 360
degree computer vision. That
means that every AV will be
watching everything that goes
on around it - even the things
that are not related to driving.
An autonomous car is a
moving panopticon. They
might not be saving and
uploading every part of that
data. But they could be. »
/ Benedict EVANS a16z
THE SECOND COMING OF CLOUD
CARS AND SECOND ORDERS
OF CONSEQUENCES

10. CARS AND SECOND ORDERS
OF CONSEQUENCES
THE SECOND COMING OF CLOUD

11. CARS AND SECOND ORDERS
OF CONSEQUENCES
THE SECOND COMING OF CLOUD

12. CARS AND SECOND ORDERS
OF CONSEQUENCES
THE SECOND COMING OF CLOUD

13. CARS AND SECOND ORDERS
OF CONSEQUENCES
THE SECOND COMING OF CLOUD
HOW MUCH WILL BMW
HAVE PAY TO ACCESS
THIS CATALOGUE?

14. THE SECOND COMING OF CLOUD
3 BROAD SCENARIOS
SCENARIO 1. NVIDIA IS THE NEW AMAZON
SCENARIO 2. ONLY THE GAFAs...
SCENARIO 3. THE TREACHERY OF IMAGES

15. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.

16. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON
2006 2017
$13.73 / Sep. 9, 2012
$170.91 / Sep. 9, 2017

17. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON

18. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON

19. THE SECOND COMING OF CLOUD
Michelangelo
NVIDIA IS THE NEW AMAZON

20. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON

21. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON

22. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON
We wanted flying cars...

23. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON

24. THE SECOND COMING OF CLOUD
From V2V to V2X...
NVIDIA IS THE NEW AMAZON

25. THE SECOND COMING OF CLOUD
A whole new
playbook
for cloud
technology...
NVIDIA IS THE NEW AMAZON

26. THE SECOND COMING OF CLOUD
YOU ARE HERE
Energy, Police, Media, Building and Parking
Operators, Taxes, Insurances, Road Assistance,
Banks, Traffic Control, ...
NVIDIA IS THE NEW AMAZON

27. THE SECOND COMING OF CLOUD
TECHNOLOGY IS HARD,
THEN IT’S A COMMODITY...
GPS

28. THE SECOND COMING OF CLOUD
NVIDIA IS THE NEW AMAZON
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.

29. THE SECOND COMING OF CLOUD
ONLY THE GAFAs...
SCENARIO 2. ONLY THE GAFAs...
THE GAFAs COMMODITIZE CLOUD INFRASTRUCTURE
AND MORPH IN FULL-STACK ECOSYSTEMS.
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.

30. A typical business value chain.
The value chain for any given consumer market is divided
into three parts: suppliers, distributors, and customers.
A. B. C.
THE SECOND COMING OF CLOUD
ONLY THE GAFAs...

31. INTEGRATION
A+B.
C.
Competitive advantage in the 80-90s
Control distribution and integrate backward, build economy
of scale, leverage cost advantage.
THE SECOND COMING OF CLOUD
ONLY THE GAFAs...

32. AGGREGATION
A. C.
Competitive advantage in the 2000s...
Aggregate distribution, lower transaction costs, and force
producers in an oligopolistic platform.
THE SECOND COMING OF CLOUD
ONLY THE GAFAs...

33. 2006-2007
THE SECOND COMING OF CLOUD
ONLY THE GAFAs...

34. THE SECOND COMING OF CLOUD
Google Information OS
Apple Everyday Life OS
Facebook Society OS
Amazon Retail OS
Tesla Energy OS
Uber Mobility OS
IBM Decision OS
The full-stack
strategy of the 80s
is not dead....
{
ONLY THE GAFAs...

35. THE SECOND COMING OF CLOUD
ONLY THE GAFAs...
SCENARIO 2. ONLY THE GAFAs...
THE GAFAs COMMODITIZE CLOUD INFRASTRUCTURE
AND MORPH IN FULL-STACK ECOSYSTEMS.
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.

36. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

37. SCENARIO 2. ONLY THE GAFAs...
THE GAFAs COMMODITIZE CLOUD INFRASTRUCTURE
AND MORPH IN FULL-STACK ECOSYSTEMS.
THE SECOND COMING OF CLOUD
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.
THE TREACHERY OF IMAGES
SCENARIO 3. THE TREACHERY OF IMAGES
THE OLD ECONOMY BECOMES THE KEY TARGET OF A
CLOUDIFICATION OF EVEYRTHING.

38. THE SECOND COMING OF CLOUD
Futurists vs. Billionaires...
THE TREACHERY OF IMAGES

39. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

40. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES
Mobility as a Service?

41. THE SECOND COMING OF CLOUD
As Hurricane Irma bears
down on Florida, Tesla
issued an over-the-air
update to drivers in the
state that unlocks the full
battery capacity of its 60
and 70 kW/h Model S and X
vehicles. The update
provides those trying to
escape the path of the storm
with an additional 30 to 40
miles above the typical range
of the vehicle.
Mobility as a Service?
THE TREACHERY OF IMAGES

42. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES
Energy as a Service?

43. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

44. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

45. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

46. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

47. THE SECOND COMING OF CLOUD
« We are moving from cloud vendors
who were providing infrastructure
solutions to cloud vendors who are
software and solutions enablers. For
customers, the focus is now on how to
put all of these services together to
build software solutions. Did you see it?
All of sudden, everything is abstracted
from the infrastructure (...) It makes
sense for you because building
machine learning services is not your
business but your data is already there
(you are pushing data to the cloud from
your software every day). Adding a new
set of functionalities to your software is
now a matter of deciding which API you
should call. »
/ Stefano BELLASIO, cloudacademy.com
THE TREACHERY OF IMAGES

48. THE SECOND COMING OF CLOUD
Pass the Keys, an Airbnb management
startup, announced a new round of funding
this week led by Talis Capital but no figures
have been disclosed.
The UK-based company is a management
service that manages listings and rentals
for Airbnb hosts. It plans to use the new
funds to expand into more cities around the
country (it currently operates in eight) and
eventually go international. “By the end of
2017, we aim to offer our service in all
major cities in the UK and start our global
expansion from 2018,” said Alexander
Lyakhotskiy, CEO of Pass the Keys.
/ Techcrunch EU
THE TREACHERY OF IMAGES

49. THE SECOND COMING OF CLOUD
Number of Americans working in the gig economy
The gig economy workforce
will double in four years
It’s an Uber world.
BY RANI MOLLA@RANIMOLLA MAY 25, 2017, 12:27PM EDT
Slack is raising another $500 million
— and has attracted interest from a
range of big buyers like Amazon
The business communications company has gotten acquisition offers in
the past from Microsoft and others.
BY KARA SWISHER@KARASWISHER JUN 15, 2017, 1:18PM EDT
The industrial robotics market will
nearly triple in less than 10 years
Collaborative robots are expected to account for a third of that market.
BY APRIL GLASER@APRILASER JUN 22, 2017, 12:06PM EDT
Slack, the popular business communications company, is in the midst of raising $500
million at a $5 billion post-money valuation, an effort that has attracted several potential
buyers interested in taking out the company ahead of the funding.
Those include Amazon, Microsoft, Google and Salesforce, several of which have
previously shown interest in acquiring Slack. Bloomberg reported the interest by Amazon
yesterday, with a $9 billion sales price.
THE TREACHERY OF IMAGES
PESTEL Changes

50. THE SECOND COMING OF CLOUD
You don’t get points
for using servers.
You get points for
serving users.
/ Jeff LAWSON
THE TREACHERY OF IMAGES

51. THE SECOND COMING OF CLOUD
THE TREACHERY OF IMAGES

52. THE SECOND COMING OF CLOUD
Accountants
Advertising/Public Relations
Aerospace, Defense Contractors
Agribusiness
Agricultural Services & Products
Agriculture
Air Transport
Airlines
Alcoholic Beverages
Alternative Energy Production &
Services
Architectural Services
Attorneys/Law Firms
Auto Dealers
Auto Manufacturers
Automotive
Banking, Mortgage
Banks, Commercial
Banks, Savings & Loans
Bars & Restaurants
Beer, Wine & Liquor
Books, Magazines & Newspapers
Broadcasters, Radio/TV
Builders/General Contractors
Builders/Residential
Building Materials & Equipment
Building Trade Unions
Business Associations
Business Services
Cable & Satellite TV Production &
Distribution
Car Dealers
Car Dealers, Imports
Car Manufacturers
Casinos / Gambling
Cattle Ranchers/Livestock
Chemical & Related Manufacturing
Chiropractors
Civil Servants/Public Officials
Clergy & Religious Organizations
Clothing Manufacturing
Coal Mining
Colleges, Universities & Schools
Commercial Banks
Commercial TV & Radio Stations
Communications/Electronics
Computer Software
Conservative/Republican
Construction
Construction Services
Construction Unions
Credit Unions
Crop Production & Basic
Processing
Cruise Lines
Cruise Ships & Lines
Dairy
Defense
Defense Aerospace
Defense Electronics
Defense/Foreign Policy Advocates
Democratic Candidate Committees
Democratic Leadership PACs
Democratic/Liberal
Dentists
Doctors & Other Health
Professionals
Drug Manufacturers
Education
Electric Utilities
Electronics Manufacturing &
Equipment
Electronics, Defense Contractors
Energy & Natural Resources
Entertainment Industry
Environment
Farm Bureaus
Farming
Finance / Credit Companies
Finance, Insurance & Real Estate
Food & Beverage
Food Processing & Sales
Food Products Manufacturing
Food Stores
For-profit Education
For-profit Prisons
Foreign & Defense Policy
Forestry & Forest Products
Foundations, Philanthropists & Non-
Profits
Funeral Services
Gambling & Casinos
Gambling, Indian Casinos
Garbage Collection/Waste
Management
Gas & Oil
General Contractors
Government Employee Unions
Government Employees
Health
Health Professionals
Health Services/HMOs
Hedge Funds
HMOs & Health Care Services
Home Builders
Hospitals & Nursing Homes
Hotels, Motels & Tourism
Insurance
Internet
Labor
Lawyers & Lobbyists
Lawyers / Law Firms
Liquor, Wine & Beer
Livestock
Lobbyists
Lodging / Tourism
Logging, Timber & Paper Mills
Manufacturing, Misc
Marine Transport
Meat processing & products
Medical Supplies
Mining
Misc Business
Misc Finance
Misc Manufacturing & Distributing
Misc Unions
Miscellaneous Defense
Miscellaneous Services
Mortgage Bankers & Brokers
Motion Picture Production &
Distribution
Music Production
Natural Gas Pipelines
Newspaper, Magazine & Book
Publishing
Non-profits, Foundations &
Philanthropists
Nurses
Nursing Homes/Hospitals
Nutritional & Dietary Supplements
Oil & Gas
Payday Lenders
Pharmaceutical Manufacturing
Pharmaceuticals / Health Products
Phone Companies
Physicians & Other Health
Professionals
Postal Unions
Poultry & Eggs
Power Utilities
Printing & Publishing
Private Equity & Investment Firms
Professional Sports, Sports Arenas
& Related Equipment & Services
Public Employees
Public Sector Unions
Publishing & Printing
Radio/TV Stations
Railroads
Real Estate
Record Companies/Singers
Recorded Music & Music
Production
Recreation / Live Entertainment
Religious Organizations/Clergy
Residential Construction
Restaurants & Drinking
Establishments
RETAIL SALES
Retired
Savings & Loans
Schools/Education
Sea Transport
Securities & Investment
Special Trade Contractors
Sports, Professional
Steel Production
Stock Brokers/Investment Industry
Student Loan Companies
Sugar Cane & Sugar Beets
Teachers Unions
Teachers/Education
Telecom Services & Equipment
Telephone Utilities
Textiles
Timber, Logging & Paper Mills
Tobacco
Transportation
Transportation Unions
Trash Collection/Waste
Management
Trucking
TV / Movies / Music
TV Production
Unions
Unions, Misc
Unions, Public Sector
Unions, Teacher
Unions, Transportation
Universities, Colleges & Schools
Vegetables & Fruits
Venture Capital
Waste Management
Wine, Beer & Liquor
INFRASTRUCTURE
SOLUTIONSTHE TREACHERY OF IMAGES

53. THE SECOND COMING OF CLOUD
INFRASTRUCTURE
PERFORMANCE
EVERYTHING aaS
DATA
THE TREACHERY OF IMAGES

54. THE SECOND COMING OF CLOUD
Any sufficiently advanced technology
is indistinguishable from magic.
/ Arthur C. CLARKE
API -EVERYTHING

55. SCENARIO 2. ONLY THE GAFAs...
THE GAFAs COMMODITIZE CLOUD INFRASTRUCTURE
AND MORPH IN FULL-STACK ECOSYSTEMS.
THE SECOND COMING OF CLOUD
SCENARIO 1. NVIDIA IS THE NEW AMAZON
TECH PLAYERS RECREATE VALUE WITH
BREAKTHROUGH NEW ‘aaS’ CAPABILITIES.
SCENARIO 3. THE TREACHERY OF IMAGES
THE OLD ECONOMY BECOMES THE KEY TARGET OF A
CLOUDIFICATION OF EVEYRTHING.
NOW
2-3
Years
Next
10
Years
3 COMPETING SCENARIOS!

56. At first, the cloud
has been a direct
answer to a first
order problem:
scaling up
exponential data
and computational
needs.
The second coming
of cloud will
probably be about
building up fractal
answers to
exponentially
complex second
order problems.
A SECOND COMING...
www.icopilots.com
@icopilotsTHE SECOND COMING OF CLOUD