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Slide 1: Actionable Data for Emerging Markets White Paper: An analysis of the Laurel Group Survey of Cloud Computing Executives, January 2009 www.techaisle.com
Slide 2: Table of Contents • • Background and Sources Areas of Consensus – – – – – Definition and Benefits Data Security, Governance and Compliance Vendor Roles and Industry Consolidation Rapid Market Growth and Adoption Summary • Appendix – Survey Analysis – Representative Quotes – Techaisle Information Services Overview
Slide 3: Background and Sources Background: When the first Laurel Group Survey came out in October of 2008, we saw it as an important document to understand the collective opinions of Thought Leaders in the market. As the second in the series was being produced we offered to support it with some background research and do a more in-depth analysis on what the Industry leaders were saying, resulting in this document which combines what we heard from the Laurel Survey and provides additional information. Sources #1 Sample = 15 Qualitative x 3 Questions, 10/2008 #2 Sample = 15 Qualitative x 5 Questions, 1/2009 Laurel Group Surveys Sample = 1,250 Countries = 5 US Market N=375, 10/2008 US Enterprise Spending Sample = 6,389 Countries = 9 US Market N=765, 1/2009 US SB Economic Impact US SMB Managed Services Sample = 10,275 Countries = 6 US Market N=1737, 8/2008
Slide 4: Four Areas of Consensus Emerged We had a good consensus from the group on several important industry trends. This is not really surprising because all of the respondents are supply-side experts who are all pulling, albeit from slightly different perspectives, in the same general direction.
Slide 5: Definition and Benefits Survey Analysis Consensus seems to be evolving, at least among the suppliers, that Cloud Computing comprises the following characteristics: “Cloud Computing is a multi-tier architecture with the “standard IT stack” components re-arranged into three basic categories of Core Infrastructure (mostly hardware and network), followed by Platform, which includes foundational SW and tools to build and run applications in a standard environment, and SaaS, which is the end-user facing SW as a Service application layer that is most commonly understood and recognized by the end-user community. Also inherent is the ability to dynamically provision these services, and scale them in a very elastic manner, while charging only for the services that are actually used by the customer.” The economic benefits of Cloud Computing were covered very well in the first Laurel Survey, and there seems to be a more concise definition emerging here as well, which involves more cash flow (which can be re-directed to differentiated activities rather than commodity infrastructure), more focus on core activities, faster time to value, and others.
Slide 6: Why the benefits are important now… •Of 765 SMBs surveyed in the US market, 72% of the respondents cited a negative impact on their business and a further 12% were not yet sure of the impact. In this uncertain environment, a natural result of belt-tightening included a serious look at all expenses, including IT budgets. The research shows the following in terms of budget impacts: m 44% of SMB respondents reported decreasing their IT budgets nOf those, 38% have decreased their budget by 20% or greater, with almost 20% slashing budgets by greater than 50% 5The average drop in IT budget for those who reported a decrease as 20.8%. US SMB Change in IT Budget : As a result of the tremendous pressure on SMBs, as much as 22% are scaling back operations or even exiting the market, and 11% already started laying off their employees. Source: Techaisle Global SB Economic Impact Study, 1/2009, US Market N=765
Slide 7: Small Business IT Budget Priorities GEO IT Budget Areas Impacted due to Economic Downturn D Upgrading LOB SW Ð Purchasing new Desktops/upgrading n Investigating Unified Communications %Upgrading Networking equipment ü Upgrading LOB SW ü Upgrading Networking equipment k Purchasing new Servers e Investigating Netbooks/Nettops ü Purchasing new notebooks o Upgrading Networking equipment k Purchasing new Servers e Investigating Unified Communications Investment when Economy Improves Upgrading business productivity SW Purchasing new servers Upgrading networking equipment Upgrading existing servers Current Investment for SBs with Budget Increase Purchasing new servers/upgrading Investing in Managed Services Upgrading networking equipment Upgrading LOB SW US N=765 Germany N=715 Upgrading networking equipment Upgrading existing servers Purchasing new servers Purchasing netbooks/nettops Purchasing new servers Purchasing new desktops Investing in Unified Communications Upgrading networking equipment Upgrading networking equipment Investigating netbooks Purchasing new desktops/upgrading Purchasing servers/upgrading Investigating Unified Communcations Upgrading Security SW Purchasing new servers/upgrading Upgrading networking equipment UK N=702 Source: Techaisle Global SB Economic Impact Study, 1/2009 •The slowdown is global and has impacted current spending in both mature and emerging market economies, but while this represents a major slowdown for the status quo, we believe it will actually increase the penetration of Cloud Computing, led by SaaS applications as companies forego CAPEX investments and seek the benefits of usage-based OPEX spending. •It can be reasonably argued that all of the areas listed for investment when the economy improves - or for current investment among those who are investing – will benefit Cloud Computing adoption, again led by SaaS and potentially leveraging PaaS and IaaS and the model becomes more familiar and mature.
Slide 8: Cloud Benefits: Small and Medium Business Key Reasons for US SMBs Adopting Managed Services Short Term • Keep Costs Under Control: Using a service provider’s lowers cost structure due to greater economy of scale Lack of IT Staff: Combined with lowering stress for internal staff, using managed services is a viable alternative to building the staff strength capabilities from scratch • Long Term • Focus on Core Business: Allows SBs to focus on business issues while external experts assume IT related operational issues Reduce Risks: Since providers make IT investments on behalf of their many clients, SBs tend to be on cutting edge without investing on untried technology • • • • • Better Response Time & Proactive Management: External management allows for proactive “breakfix” and, in case of true break-fix events, external staff with relevant expertise are able to provide quicker solutions • Competitive Pressures: Allows SBs to redirect their resources to tasks that have greater customer-service return thereby remaining competitive in the market place The key benefits were well articulated in the Thought Leaders survey and typically involve financial benefits, especially the freeing up of cash flow through elimination of Capital Expenses and the need for additional staff to manage IT assets. Our research shows that many of the factors that drive SMBs towards Managed Services are very similar to those benefits they will seek when choosing a SaaS or PaaS offer; they include: – Cost Control – Reduced Complexity – Focus on the Core Business – Reduced Operational Pressures The combined benefits are increased agility and lower business risk, which translate into a more competitive posture and less stress for the SMB owner. Source: Techaisle Global Managed Services Study, 8/2008, N=10,275, US Market N=1,737
Slide 9: Cloud Benefits: Enterprise Customers User Group/Layer/ Key Benefits Enterprise IT Managers Ability to access scalable, practically infinite computing resources without capital budget, and reduce the need to manage individual HW assets, SW licenses, maintenance, upgrades, and other labor intensive practices. Reduced SW management cost and complexity, reduced need for deep specialization in complex technology areas such as middleware and integration. Standardized development and deployment environment. Reduced client , server hardware and SW license/management cost and complexity, reduced cost in training and deployment. Enterprise LOB Managers Infrastructure Layer Access to world class computing and collaborative environments on OPEX budgets, with isolated risk, reduced bureaucracy and increased speed. Platform Layer Application Layer Access to applications and business process automation that have failed to take root in a license-based Client/Server environment. More flexibility, agility and less bureaucracy, OPEX-based access to higher levels of Service. •While we are still early in the adoption phase for most Large Enterprise accounts, we believe the benefits – or at least the promises – are different depending on the role within the organization: •Enterprise IT will benefit especially at the Infrastructure and Platform layers - through lower costs in CAPEX and staffing requirements, and a fundamentally less complex set of operational management tasks. •LOB managers will benefit from less internal bureaucracy, increased speed and flexibility and less of an all-ornothing approach to departmental automation. Key Promise Significant simplification for management of the IT function with lower costs, staff and risks. Source: Techaisle Analysis
Slide 10: Security and Governance Survey Analysis There was general agreement that to reduce risk, a clear separation between mission critical systems and/or sensitive data was recommended, with a thoughtful, prioritized approach to migrating these to the (public) cloud, if at all. There were different approaches to achieving this common goal, ranging from private cloud architecture for all core systems, to a separation based on internal/public facing applications, or growing adoption in a controlled manner from existing hosted hardware/platform systems. For most, Private Cloud architecture was the short to medium term answer for handling most security concerns. Also interesting was that while essentially all responded that the Service Provider should be responsible for security, it is equally important for the customer to understand the risks and limitations of the architecture and truly investigate implications of SLAs in order to make informed decisions regarding the risks and trade-offs. Several respondents mentioned the fact that the whole ecosystem by its’ nature, is very interdependent, making agreements between suppliers a very important part of the equation as well. Not surprisingly, none of the respondents felt these barriers would be too difficult to overcome and that as the industry and technologies mature, there would be increasing and steady adoption across a growing base of customers.
Slide 11: Industry Roles and Consolidation Survey Analysis As with previous waves in the IT industry, both large and small players will help shape the industry by contributing mutually beneficial ingredients. Most respondents felt the industry needs the large players to make the big infrastructure investments that their size and scale allow, drive a foundation on which to build and to bring the most demanding and important customers into the market. The small companies on the other hand will be innovating from a technology standpoint, exploring new frontiers and filling vertical and technical gaps and becoming acquisition targets for larger players who will look to round out technology portfolios, product lines, customer bases and talent pools. In the meantime, as with all markets, competition and natural selection will play their parts in the process of determining the winners and losers. Most also agreed that it is very early and there is room for large and small players to benefit, especially the small, because the barriers to entry are very low, and the need for innovation and agility is high. We believe there are also interesting market dynamics at work that help keep a healthy tension in the market that benefits end users. The small companies are laser-focused on delivering low cost services and moving the model to low-or-no-touch where possible. The dilemma is that while SMBs are willing to accept this in exchange for rock-bottom pricing, Enterprise customers tend to be more demanding, especially LOB end users. The large suppliers need to figure out the appropriate balance of how to service customers relative to their brand promise, while keeping costs and prices in line with the market. In addition to the substantial operational and service delivery challenges, there are fundamental differences in Sales, Marketing and Customer Service that any large vendor making the transition to the Cloud will have to understand if they want to be successful.
Slide 12: Rapid Growth and Adoption Survey Analysis There was general consensus that Cloud Computing is here to stay and that it will become the dominant area of focus for the industry moving forward. While this may seem a little self serving, it is important to note that the history of the IT industry is largely one of vendor push rather than customer pull. This has occurred in successive waves of industry giants and de-facto alliances vying for dominance and changing the overall structure of the industry - from vertical to horizontal integration and proprietary to standard components - repeatedly with new applications of technology. Preliminary results from our latest survey shows a high rate of adoption of SaaS, and a willingness to investigate Cloud Services more readily than before, as most companies are squeezed from all angles on costs. Combined with data from previous surveys, all signs point to rapid adoption of SaaS not only among SMBs, but increasingly by Enterprise accounts who will use SaaS as the Cloud Computing wedge into the Enterprise. The following slides include responses to some Cloud-related questions from our latest Economic Impact Survey as well as data from our SB Managed Services Study, which covers areas that are enabled by Cloud characteristics with many of the same benefits for user organizations, making it an interesting proxy in some ways to the SaaS market. And unlike most other IT segments, both MSPs and SaaS are likely to show rapid growth in a down economy.
Slide 13: SB Cloud Computing Consideration Are you familiar with or using emerging technologies such as SW as a Service, Storage as a Service and other subscription-based IT Services? Will you consider these types of services in your next budget cycle? • Based on our research, we believe that the penetration of SaaS currently varies between 30% and 60% depending on application, industry and company size and that will move rapidly to the 70% level in 2009 for certain applications. In your next budget cycle, please select the emerging technology areas you will consider adding to the IT budget (select all that apply): • When questioned on which services they were most likely to consider, the chart at left shows the responses: • Collaborative Software and Remote Managed Services (HW) were high on the list for consideration. • Storage as a Service was the least popular, followed by Remote Services for SW and NW Operations. Source: Techaisle Global SB Economic Impact Study, 1/2009, N=765
Slide 14: Managed Services Characteristics 1 Current Usage Characteristics Sub-segment Characteristics Many of the marketing, sales, delivery and customer satisfaction issues are similar for Managed Services, especially Remote Services, as they are for Cloud Services at all three layers and especially for SaaS. The transition from product-oriented to service oriented has implications for all customer facing process in the vendor’s organization, especially marketing. As a result, our upcoming 2009 SaaS Market Review will include similar in-depth analysis with a focus on sizing and segmentation. Market Opportunity by Segment Target Marketing Approach Source: Techaisle Global Managed Services Study, 8/2008, N=10,275, US Market N=1,737
Slide 15: Managed Services Characteristics 2 Use of Formal Agreements Details of Agreements Revenue Distribution by Segment Penetration by Service and Customer Segment Source: Techaisle Global Managed Services Study, 8/2008, N=10,275, US Market N=1,737
Slide 16: Rapid Growth and Adoption Survey Analysis & Techaisle Summary In addition to the historical context discussed earlier and the much-needed benefits for user organizations, there are other factors that point to Cloud Computing continuing to pick up momentum as the catalyst for the industry, several of which were very evident in the Internet boom of the late 90’s, these include: Enabling technologies are in place and widespread; virtualization, SOA, bandwidth and standardization of low cost storage and computing resources all play an important enabling role, Customers have spent hundreds of billions on single-purpose infrastructure and applications that can be optimized for huge advantage using Cloud technologies, There is capital in the market for this expansion from three key sources; large companies are making huge investments in infrastructure and trying to understand the implications of the model, Start-ups have access to capital for solutions that address Cloud Computing challenges, and Customers will spend their budgets on optimization of infrastructure, As evidence by the responses in the Laurel Group Survey, there is a broad mix of highly committed companies who are driving the industry at a rapid pace in the direction of Cloud Computing addressing all of the layers of the “Cloud Stack”.
Slide 17: Actionable Data for Emerging Markets Survey Question Observations www.techaisle.com
Slide 18: Survey Analysis Q1 to Q3 Question One: What is the meaning of "Cloud Services" from your perch, and what are the most important benefits emerging from Cloud Services that will transform the economics of IT? Question Two: How will concerns around data governance, availability and security impact the adoption of "Cloud Services"? Question Three: How are "Cloud Services" testing traditional thinking around "control of data" and "guarantees of safety"; to include ownership, access and rights that supersede failure of the provider? Ultimately, who should be accountable; vendor or service provider?
Slide 19: Q1 – Cloud Computing Definition Survey Summary Starting with the definition of Cloud Computing, consensus seems to be evolving, at least among the thought leaders interviewed: Cloud Computing is a multi-tier architecture with the “standard IT stack” components re-arranged into three basic categories of basic infrastructure (mostly hardware and network), followed by Platform, which includes foundational SW and tools to build applications in a standard environment, and SaaS, which is the end-user facing SW as a Service that is most commonly understood and recognized by the end-user community; the application layer. Also important is the ability to dynamically provision these services, and scale them in a very elastic manner, while charging only for the services that are actually used by the customer. Representative Quotes “I generally define “cloud services” as virtual development, application, computational and storage services available over the Internet that can be automatically and instantaneously provisioned and released as application requirements dictate.” – Bruce Cleveland, Partner, Interwest Partners “It supports a paradigm which has more communication, more data, more connections, more media, more insight, more people and more things than server software can ever have. “ – David Bernstein, VP/GM, Office of the CTO, Cloud Computing Project, Cisco ““Cloud Services” relate to a broad range of computing services delivered simplified way, providing massive scalability and differentiated quality of service to foster rapid innovation and decision making.“ - Alan Ganek, CTO Software Group, IBM
Slide 20: Q1 – Cloud Computing Benefits Survey Observations In the first Laurel Thought piece, the benefits of Cloud Computing tended to be very focused on the economic advantages of CAPEX vs. OPEX, which are probably most important from a financial perspective. In this version, we saw a lot more references to business benefits, including speed, agility, focus, flexibility, innovation and others that are particularly important in the current economic environment. More for Less, the economist’s dream. Representative Quotes “Enabling businesses to host new applications in realtime, scaling as they need, and paying for only what they consume. The net result is a lowering of both CAPEX and OPEX for the business, while affording them increased agility.” – Brian Stevens, CTO Redhat “The economies enabled by cloud services are fantastically compelling. As much a 95% of a typical “dedicated” infrastructure sits unused. This means that a 20X improvement can be had in the cost/value computing equation. “ – John Keagy, CEO GoGrid /Servepath, LLC While there is no doubt that there is a lot of hype around the benefits of cloud computing, in this case, you can believe the hype. Why? Because the technology delivers what every IT department needs -increased capacity and capabilities, without investing in new infrastructure, personnel, or software. - Ken Comée, CEO, Cast Iron Systems “Typically these “cloud services” are sold in an ondemand model which provides the chief benefit for the economics of IT: not cost, but flexibility and therefore the incentive to innovate without longterm contracts increase risk.” – David Young, CEO Joyent
Slide 21: Q2 – Data Security and Governance Survey Observations There was a little less consensus on this question than the previous one; however most participants agreed that it is very important for the end customer to have a clear understanding of what the limitations of their chosen options are. Almost all agreed that sensitive data should be at the back of the line in terms of putting it into the cloud, especially the Public Cloud. Other opinions came from the position and perspective of the provider, among them : Compartmentalizing mission critical/sensitive data within a private cloud, not only for data but other security-related concerns which are also discussed in Question Three. The market is still immature and needs Enterprise-class answers to this problem, which will come based on competition and maturity. This is a new paradigm that involves a radical new way of looking at the architecture, which will create many opportunities based on a new programming model. Technical issues have largely been addressed and it is more an issue of choosing the appropriate solution components that will provide an adequate level of security. Representative Quotes “From object level access control to firewalls, using these tools enables customers to build applications that can meet various certifications important in a given industry. For example, TC3 Health is a company that has used AWS to build a HIPPA compliant application.” - Werner Vogel, CTO Amazon “We’ve seen a dramatic shift to organizations building private clouds. While the big broad vision of cloud computing is for everything to be delivered via utility-like services, the fact is enterprises have real constraints around things like privacy and security.” – Kevin Haar, CEO Appistry “Governance, availability, and security combine to determine whether a service should be in the cloud or not. Requirements differ for each organization and for each type of data, and will impact adoption until the requisite technologies and solutions are mature enough to push into the cloud.“ - Ken Comée, CEO, Cast Iron Systems
Slide 22: Q3 – Control and Data Safety Survey Observations There was a good level of agreement on this question at the fundamental level: The Service Provider should be ultimately responsible BUT it is also the customer’s duty to really understand what level of risk they can afford to take and what their vendor partners are truly providing in the form of detailed SLAs. After general agreement on those points respondents began to diverge on approach. Most revolved around a hybrid solution approach that varied based on the vendor perspective, including: •As in Q2, Relying on Private Clouds for all mission critical applications and data until the market has matured to a point that mitigates the risk better than today’s capabilities. •Categorizing applications based on sensitivity and see if there are some whole categories that can be migrated immediately with low risk in order to begin an internal training process and realize economic benefits while the technology matures. •Using specific subsystems (i.e. storefront) that can benefit from dynamic elasticity as a proving ground and internal training opportunity. •Starting with a relatively mature base of hosted hardware and platform bundle and build your way out appropriately. •Acting as the trusted advisor to help the customer understand the risks and trade-offs and help them to mitigate them appropriately. Representative Quotes “It is always a vendor’s responsibility to make sure data remains under control and stays safe from those who should have no access to it. In that sense, the Cloud’s existence does not change much for customers, vendors and service providers.“ - Serguei Beloussou, CEO Parallels “These issues will continue to be solved over time, by both vendors and service providers. Our best advice is to ensure that, in addition to having the proper legal pieces in place, customers seek solutions that are open and provide mechanisms to preserve their freedom to avoid lockin.” – Michael Crandell, CEO RightScale
Slide 23: Survey Analysis Q4 & Q5 Question Four: What are the SME benefits that would work well in a departmental setting? What are the key adoption barriers? Question Five: Is consolidation among a few industry giants a good thing for "Cloud Computing" (Amazon, Cisco, Google, Salesforce, Microsoft, IBM, HP)? What are the implications for the rest?(i.e. What will the role of the innovators (start-ups) be - and what will the incumbents need to do to maintain their leadership). NB: Thanks to WORDLE.NET for their free (and excellent) cloud tagging tool that we used to generate these images
Slide 24: Question Four – Departmental Adoption Survey Observations As with Question One, there is a general consensus that many of the key benefits from the model revolve around improved cash flow and alternative use of cash, the ability to focus on the core business rather than managing complex IT resources and assets and others. Most agreed that Enterprise customers would benefit from these same characteristics, as well as additional improvements from less bureaucracy, better access to IT resources, speed with flexibility and the ability to better automate departmental processes. Having said that, most also agreed that there are inhibitors based on a relatively immature level of technology. Among the important ones: •Data Security and Privacy are most important and will continue to inhibit adoption for Core Infrastructure until Enterprise-class solutions are made available. •A complex programming environment and lack of Cloud expertise in the market will constrain as customers do not have inhouse experience to confidently adopt new technologies. •Lack of Standards was mentioned by several as a barrier which could also result in customers getting locked in non-portable solutions, which will be a source of FUD in the market. Representative Quotes “Large businesses have participated in and benefited disproportionately from each generation up to the Cloud generation. The Cloud will allow businesses of every size to realize the benefits of automation delivered as a software service at costs once only the largest most well capitalized companies could afford.” – John Conners – Ignition Partners “A key segment of “cloud” provider in this category will be the Managed Service Provider (MSP) who today offers trusted IT consultancy /support/ resale services to SME. These folks will make clouds ultimately viable by offering hosted enterprise IT as a service “just around the corner, and run by I guy I trust”. - Simon Crosby, CTO Virtualization, Citrix
Slide 25: Q5 – Large and Small Providers Survey Observations There was general consensus on this question as well; most respondents felt there is a natural role for both small and large companies to play. Big companies through investment in large scale infrastructure necessary to lay a strong foundation, and to bring credibility for Enterprise customers, while the role of the start-ups would be to innovate and explore the boundaries of the new technologies, creating deep pockets or opportunity in technology, segment specific and niche application areas. Representative Quotes “We’ll see many providers offering compute platforms that enable users to migrate business applications to any cloud that offer the greatest alignment with the needs of IT or the user, such as cost, location, availability, or even the use of green power. Achieving this world requires a lot of work around standards, but it is the same model that has worked well for electricity generation” - Steve Herrod, CTO VMWare “Only the largest well capitalized and sophisticated players in IT can deliver the infrastructure services at scale. IBM, Goog, Amazon, Cisco, EMC and Mister Softie will lead this infrastructure business. Startups will have enormous opportunity delivering the applications and information services as well as pieces of the enabling infrastructure technology.” - John Conners, Partner, Ignition Partners “We think that the most successful cloud computing startups will form partnerships with the large IT vendors in an effort to improve distribution and marketing and many will ultimately be acquired by their large IT vendor partners.” - Evangelos Simoudis, Managing Director, Trident Capital “They (small companies) force the fine tuning and focus of the marketplace and often define which business models make the most sense.” - Alan Ganek, CTO Software Group, IBM 25
Slide 26: Actionable Data for Emerging Markets Because it is rare to get this many quotes together from such a distinguished group, we decided to capture some additional insight from the panel members and present it as a small section of the white paper. Representative Quotes www.techaisle.com
Slide 27: Representative Quotes “AWS is extremely flexible because users can requisition the services on a moment’s notice without prior reservations. Finally, there is no up-front investment required to gain access. We are finding that this is allowing new products and business to be created with far less financial risk than previously possible.” - Werner Vogels, CTO Amazon "Platform cloud services abstract the underlying infrastructure and allow organizations to focus on the applications they want to deploy to the cloud, which is, in the end, where the true business value comes from." - Kevin Haar, CEO Appistry “Consolidation is essential for cloud services to become truly mainstream. This happens in every new market. Innovators invent, develop and prove that there’s a market — that there’s money to be made — and then the industry giants complete it by building on the groundwork of the innovators.” - Ken Comée, CEO, Cast Iron Systems "(The) Cloud Computer runs a different kind of software. It supports a paradigm which has more communication, more data, more connections, more media, more insight, more people and more things than server software can ever have. This software does not run on a server." - David Bernstein, VP/GM, Office of the CTO, Cloud Computing Project, Cisco
Slide 28: Representative Quotes “Clouds will remain appropriate for non mission-critical workloads and workloads that are not subject to security or regulatory oversight. The Web/App server tier, but not the mission critical data." - Simon Crosby – CTO Virtualization, Citrix "As much a 95% of a typical “dedicated” infrastructure sits unused. This means that a 20X improvement can be had in the cost/value computing equation.“ – John Keagy, CEO GoGrid /Servepath, LLC “In a world where almost anyone and anything can connect to the internet, the exponential increase in the volume of information and connected devices creates a dilemma: IT complexity increases as does the demand for simplicity.” - Alan Ganek, CTO Software Group, IBM “Imagine all of the client server/DOS, vertical applications of the world moving to SaaS. Imagine SaaS BI. Then imagine SaaS supply chain and ERP . There will be tremendous innovation and opportunity.” – John Conners, Partner, Ignition Partners
Slide 29: Representative Quotes “The key adoption barriers are consequently no longer tied to the size of a company. Instead, adoption barriers will primarily be tied to ease of use and business benefit placing the onus upon application developers to develop and deliver simple to use yet sophisticated application software.” – Bruce Cleveland, Partner, Interwest Partners “Imagine if the power grid was something that one could hook up to, supply it with power and easily start generating revenue by doing that. This would mean that anyone who had the ability, expertise and will could develop a new, more efficient way of generating power and make a business of it. The Internet is the power grid for cloud computing and it is VERY easy to hook up to. .” – David Young, CEO Joyent “Even the most sensitive data, such as medical histories, could be safely processed in the cloud if done properly. As people use cloud services more and more over time and become more comfortable with them, public trust will continue to build, resulting in greater adoption.” - Serguei Beloussou, CEO Parallels “Cloud services are evolving, and with the advent of virtualization, ushering in perhaps the most meaningful cloud service yet: IT as a service. Enabling businesses to host new applications in realtime, scaling as they need, and paying for only what they consume.” – Brian Stevens, CTO Redhat
Slide 30: Representative Quotes “These API driven services, based on virtualization and commoditization of both hardware and software components, are driving new levels of cost efficiency and flexibility in the way IT resources are delivered and consumed.” – Michael Crandell, CEO RightScale “It is one thing if a program compiles slowly because the compilation is performed in the cloud but entirely different if a purchase transaction is slow to complete and a sale is lost because the transaction engine is running in the cloud.” - Evangelos Simoudis, Managing Director, Trident Capital "We believe the industry will be best served by focusing on cloud platforms that allow any application to be provided in cloud service form, and on the standards needed for cloud interoperability.“ - Steve Herrod, CTO VMWare
Slide 31: Applied Intelligence for Emerging Markets & Technologies Techaisle Overview www.techaisle.com
Slide 32: Techaisle Introduction • Techaisle is the next generation market research organization for the IT Industry, focused on emerging markets and technology adoption. We provide services in four major areas: – – – – Global IT Market Sizing and Segmentation, leveraging one of the most comprehensive opportunity sizing databases in the industry, Survey Research for End Users through our database of over 60,000 businesses in 15 countries, Survey Research for Distribution Channels, using our database of over 17,000 channel partners worldwide, Custom Market Research, which combines one or more of these with strong analytical capabilities to uncover opportunity for clients. • • And we in the final stages of development of our IT Market Data-as-aService offer: – – – Access to our integrated database across all IT product and service categories, by country, vertical market, and customer segment with integrated demographic information. Available for purchase by row of data, user-filtered across all required dimensions. Just the data you need, when you need it and how you need it – from regional market opportunity to individual channel partner contact details in Beijing or Mumbai.
Slide 33: Survey Research Capabilities North America: 2 Countries 11,000 Businesses 4,500 Channels Asia Pacific 8 Countries 46,000 Businesses 12,500 Channels Latin America: 2 Countries 6,800 Businesses 2,000 Channels WE & EMEA 6 Countries 9,000 Businesses 3,000 Channels Survey Methods: •Phone •Internet •Face to Face Our Survey Respondent Database is Your Window to Local Market Demand Technology End Users •Wants and Needs •Vendor Satisfaction •Purchase Intentions •Brand Awareness and Preference Channel Partners •Wants and Needs •Partner Satisfaction •MDF Management (Own Partners) •Lead Management (Own Partners) •Sell Through (Own Partners) Detailed and Current Database Coverage: 15 Countries, 60K+ businesses and 17K+ Channel Partners
Slide 34: Channel Research Coverage: Channel Profiling: 21 Countries, Emerging and Mature • Types of Channel Partners: • Reseller/Dealer • SIs • Service Providers • System Builders • VARs Profiles include: • Business Related • Total number of partners (Breakout by type of channel partners) • Number of corporate resellers • Number of employees, Age of Business • Average Annual revenue and growth • Revenue from different businesses (SBs, MBs, LBs, Consumers, etc) • Average number of locations and branches • Verticals Served Products and Services Related • Types of products/services • Vendor partnerships • Average number of products and services offered • Computing hardware, software, networking, security, storage, services Business Model Related • % of revenue from the above product categories • Gross Margins from the different product categories • Revenue from local vs. non-local customers Channel Universe Sizing: • Current • Forecast • By Type of Channel • By Spend • • Deliverable Formats in PowerPoint • Report • format Excel • •
Slide 35: Market Data-as-a-Service (DaaS) • Techaisle is poised to become the IT industry’s first Market Data-as-aService (DaaS) provider. •The service will allow browser-based access to one of the most sophisticated databases in the industry, covering all of the usual categories and metrics and will provide users with increasingly relevant data points for the emerging Cloud Computing Era such as penetration rates and number of potential customers and channel partners. Growth rates CAGRs PC Penetration Server Penetration Other Calculations…… Download We bring a fundamentally lower cost structure for data collection, analytics and delivery of information, which translates to lower prices, higher flexibility and access to the specific information required to complete standard planning tasks in the marketing and market research departments.
Slide 36: Market Data-as-a-Service (DaaS) IT Category CAGRs Channel Mix Product Mix Other Calculations…… Download Data Delivered Through Download to Excel Channel Data available for: 15 countries Major IT Categories 11 different channel types Consumers/Home SBs (1-4, 5-9, 10-19, 20-49, 50-99) MBs (100-249, 250-499, 500-999) 1000+
Slide 37: Applied Intelligence for Emerging Markets & Technologies Thank you for reading our White Paper; we hope you found it interesting. For additional information about Techaisle, please contact Anurag Agrawal at anurag@techaisle.com . About the Author Davis Blair is an independent marketing consultant to Techaisle and a Principal at Alliancesphere, a strategic alliances consultancy focused on revenue generation for IT alliances, where he developed an Alliance CRM/BI SaaS solution. An IT industry veteran of over 20 years, he has held senior management positions including founding CMO at Neoris, the second largest IT Services firm in Latin America, SVP GM High Tech Practice at iXL, a web Integration firm, Group Vice President at Gartner Group and VP, GM of Asia Pacific for International Data Corporation, where he opened offices in Korea, Taiwan, Hong Kong, Singapore, and several other countries. www.techaisle.com