The Cloud Value Chain Exposed

(1)

The Cloud Value

Chain Exposed

Swiss View on Cloud Market

[email protected]

(2)

Transformational

Early Adoption Dynamics open the

door to Enterprise Cloud Computing

Early Adoption

Dynamics – Led by…

Development

Agile Infrastructure

Requirements

Next Gen Workplace

Desktop, UC&C,

Office Apps

Web Presence

Launch, Campaign, Market

IT Efficiency

Manage Workloads & Regain

Control over IT

Big Data & Simulations

Improve Data Analysis

Simple Business

Process

Application Bottlenecks

(3)

Industry Value Chain

Complex Variety of Cloud Delivery Models

Facility infrastructure Systems

software Application development / deployment Application Presentation / Access IT infrastructure ODM / SC OEM Cloud enablers (BMC, Red Hat, Joyent, Vmware) IDE (JBoss), databases, web, app servers Applications (Microsoft, SAP, Oracle, others)

End user

(Enterprise) IaaS Colo IaaS SaaS PaaS Hosted AM SaaS SaaS PaaS

(4)

Industry Value Chain

Cloud will Disrupt on Six Battlefields

Facility infrastructure Systems

software Application development / deployment Application Presentation / Access IT infrastructure ODM / SC OEM Cloud enablers (BMC, Red Hat, Joyent, Vmware) IDE (JBoss), databases, web, app servers Applications (Microsoft, SAP, Oracle, others)

End user

(Enterprise) IaaS Colo IaaS SaaS PaaS Hosted AM SaaS SaaS PaaS

Synaptic Hosting Dynamic Computing

1. SaaS will Further Disrupt the ISV Landscape

Mobile Access Accelerates SaaS Adoption

2. Development Platforms at the Core of the Cloud

PaaS is Winning Hearts of Web Developers

3. IaaS: Web Grade vs. Enterprise Grade

Battle Rages across Hosted & Internal IaaS

4. Facility & Infra Trends: Often Forgotten Fundamentals

Mega Exchanges & On-Net Clouds

5. Commercial Services

Everybody wants to be a Cloud Broker

(5)

SaaS will Further Disrupt ISV Landscape

Mobile Access Accelerates SaaS Adoption

Source: Cisco IBSG 2011;

Facility infrastructure Systems software Application development / deployment Application Presentation / Access IT infrastructure ODM / SC OEM

Tablets Will Accelerate Adoption

“Mobile will become the new platform for business intelligence.” Howard Dresner, Dresner Advisory Services

mobile

limitations

Tablets change

the rules



Notebook

complexities



Small screens



Previous tablet

offerings failed



Ease of use



Visually

appealing



Comprehensive

development

platform

Source: OCO Business Analytics – OCO and Mobile BI

“When we assess new SaaS applications, our first and most important filter is mobility. My end

users demand application access from mobile devices.”

CTO of IT, Large Car Manufacturer

1 SaaS Disruptive in 25% of S/W Markets

(6)

IaaS: Web Grade vs. Enterprise Grade

Battle Rages across Hosted & Internal IaaS

Public IaaS

Internal

commodity

cloud

Hosted

(Owned & managed

by third-party)

Internal

(Owned & managed

in house)

IaaS-type /

architecture

IaaS model /

ownership

Web-grade

Enterprise-grade

Contract VMware Commercial ITSM SAN / NAS Credit card Xen / KVM Open Source DAS

Enterprise-grade IaaS

(Virtual) private cloud

Internal Enterprise-grade cloud

3

(7)

Public IaaS Internal

commodity cloud

Enterprise-grade IaaS

(Virtual) private cloud

Internal Enterprise-grade cloud

IaaS: Web Grade vs. Enterprise Grade

Enterprise Grade in Pursuit of Web Grade IaaS

 Standardization of IaaS Platforms will

enable Hybrid Cloud Computing

3 Enterprise Grade Cloud will attract increasingly

critical workloads

2 Maturing IaaS Enablement Platforms accelerate

cloud entry of 30k+ Web Hosting companies

1

Open source

has momentum

Deploy workloads across internal and public cloud

Acquisitions

drive standards

3

Note: *Forrester definitions do not map 1-to-1 to our Public and Internal Cloud definition – Private Cloud only includes Infrastructure Virtualization Software Source: Cisco IBSG 2011; Morgan Stanley 2011 – Cloud Computing Takes Off; IDC 2010; Forrester 2011 – Sizing the Cloud

1 2 3 3 Investments: raising funds $21M $26M $85M Facility infrastructure Systems

software Application development / deployment Application Presentation / Access IT infrastructure ODM / SC OEM

(8)

Professional Services

Will Move to Services with Higher Value-Add

6

Consult / Plan Architect / Plan Implement / _Integrate Run / Manage

IT strategy

consulting App testing services App hosting App

development App integration management App

Enterprise architecture design

/ transformation integration Systems Standard BPO Business process

management Business process design /

transformation services Ops. process consulting Ris k / co m plia nc e Se cu rit y se rvi ce s Business services IT services

Positive Short-term positive, _{long-term negative} Negative

Professional IT services will move

toward higher value-add services

Neutral

Professional Services

“It takes a lot of expertise to be successful with vertical workloads. We aim to become the cloud provider of choice for

energy companies, because we know the industry and we know Smart Grid.”

(9)

Main Takeaways / Discussion

Network Service Providers have different ways of attacking the Cloud Market

NSP GTM Approach Main Takeaways from The Cloud Value Chain Exposed

Telco-Centric SaaS

incl. Comms, Collaboration, Security, VDI

 Mobile access accelerates SaaS Adoption

 Focus on quality to differentiate against “over-the-top” plays

Cloud Aggregation & Brokerage

linked to Telco-centric Managed Svcs

 Use commercial brokerage platforms to launch quickly

 Use unique NSP assets (QoS, channels, Telco, Billing)

Commodity Infrastructure Services

with Platform-as-a-Service Support

 Standardization will drive Hybrid Cloud: don’t be niche

 Build PaaS partnerships to attract developers

Enterprise Grade Infra Services

with Developer Enablement

 Build or acquire IT Services & Sales capabilities

 Provide tools to enable developers

 Differentiate through end-to-end WAN-IT: “On-Net Cloud”

Vertical Business Process Svcs

with platform ready for BPaaS

 Consider partnerships with SI’s

 Embedding communications can add value: “CEBP”

Network as a Service

Enrich network to better serve cloud

 Unclear monetization models, the market opportunity is hard to size

 Focus on standards across geographies

(10)