2014 future of cloud computing study

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THE FUTURE OF 4 TH ANNUAL SURVEY 2014 NORTH BRIDGE FUTURE OF CLOUD COMPUTING SURVEY IN PARTNERSHIP WITH GIGAOM RESEARCH @North_Bridge @futureofcloud #futureofcloud CLOUD COMPUTING

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THE FUTURE OF

4TH ANNUAL SURVEY 2014

NORTH BRIDGE FUTURE OF CLOUD COMPUTING SURVEY IN PARTNERSHIP WITH GIGAOM RESEARCH

@North_Bridge

@futureofcloud

#futureofcloud

CLOUD COMPUTING

2

PROGRAM GOALS

user vendor

industry-wide

conversation vendor

agnostic

@futureofcloud

#futureofcloud

3

WHO WE

HEARD FROM

user vendor

Good balance of user and vendors

LARGEST CLOUD SURVEY EVER

2x as many respondents this

year compared to the

first survey in 2011

72 Largest number

collaborators

= 1,358 respondents

@futureofcloud

#futureofcloud

4

THE COLLABORATORS 2014 +

5

AGENDA

cloud

landscape inhibitor

trends investments business

challenges phase 2

benchmark driver

@futureofcloud

#futureofcloud

6

Mike Schutz, General Manager, Cloud Platform Marketing

“What comes across to me loud and clear from this

survey is that even more businesses are no longer

thinking 'why cloud?' but will focus the next 12-24

months figuring out 'how do I execute a long-term

cloud strategy?”

@engineyard @AZURE

CLOUD IS STRATEGIC & POWERING INNOVATION

7

@futureofcloud

#futureofcloud

CLOUD FUELS NEW BUSINESS

49% using the cloud for

revenue generating

or product development

activities

user vendor

it’s strategic to both vendors + users

8

@futureofcloud

#futureofcloud

CLOUD IS STRATEGIC

35% cited Innovation or

Competitive Advantage as drivers

9

@futureofcloud

#futureofcloud

CLOUD IS

INTEGRAL

45% want to or already run their company in the cloud

10

@futureofcloud

#futureofcloud

11

Mike Riegel, Vice President, Cloud Marketing

@MIKERIEGEL @CISCOCLOUD

“The customers who are enjoying the greatest success with

cloud are taking a hybrid approach to IT. Instead of building

internally or sourcing externally, these customers view cloud as

a continuous set of interconnected and interdependent options.

Cisco’s Intercloud strategy is built on connecting the world of

many clouds to create new revenue streams, optimize business

processes, and simplify operations.”

APPLICATIONS

ARE BLOWING THE CLOUD

12

@futureofcloud

#futureofcloud

13%

2011

72% 2014

13

SaaS has leapt ahead

@futureofcloud

#futureofcloud

TRANSITIONING

14

THE FIRST CLOUD FRONT:

@futureofcloud

#futureofcloud

TRANSITIONING

15

LEGACY APPLICATIONS:

ecommerce ERP CRM

@futureofcloud

#futureofcloud

@SALESFORCE @WORKDAY @DEMANDWARE

Across all Business Apps,

(except manufacturing)

65-70%

of respondents will move some or

significant processing to the

Cloud in the next 12-24 mos.

business functions

TRANSITIONING TO THE CLOUD

16

@futureofcloud

#futureofcloud

sales & marketing

customer service

business analytics

52%

44%

44%

BUSINESS FUNCTIONS -

FRONT OFFICE IS IN THE LEAD…

17

@futureofcloud

#futureofcloud

CONCERNS over expense of

TRANSITIONING to the cloud have grown three-fold:

to 18% today

from 6% in 2011

18

@futureofcloud

#futureofcloud

IT is

grappling…

80% of IT budget is used to maintain current systems

Source 19

@futureofcloud

#futureofcloud

of respondents will move some or significant

processing to the Cloud in the next 12-24

mos.

For IT, across all functions tested

in the survey

But IT is no longer fighting…

information technology

20

60-85%

@futureofcloud

#futureofcloud

disaster recovery

web presence

communications

The IT functions that have already won their cloud

battle are:

63% 54% 47%

21

@futureofcloud

#futureofcloud

22

David Card, VP Gigaom Research

"This next wave of cloud computing that's revenue

and new business driven is good news for long-

suffering IT execs. If they can offload tedious but

necessary cost-center functions, and refocus

resources on cloud-driven new business, they might

be able to re-take their seat at the C-table."

@DAVIDCARD @GIGAOMRESEARCH

The Laggards:

BACK OFFICE

IT apps

19% 17%

34% 31% MOVING

transaction processing

data center consolidation

NOT MOVING

23

@futureofcloud

#futureofcloud

In overall CIO priorities, Software-as-a-Service 

also continues to move up the priority stack as the 

model proves itself in a broader set of use cases…

SaaS has climbed steadily* from 5th to 4th and now

3rd

*Source

3rd

24

1st Business

Intelligence 2nd

Security Software

/Appliances

@futureofcloud

#futureofcloud

DRIVERS

25

@futureofcloud

#futureofcloud

DRIVERS - TRENDS

Shifting CapEx to

OpEx is more

important for

companies with

over 5000

employees

cost

scalability

agility

CAPEX-

OPEX

cost

scalability

agility

CAPEX-

OPEX

mobility

26

@futureofcloud

#futureofcloud

FOR LARGE BUSINESSES

Shifting Capex to Opex is

an important Driver

For respondents moving workloads

to the cloud today,

27% said they are motivated to do so

because they believe using a cloud

platform service will help them

lower their capital expenditures.

27

@futureofcloud

#futureofcloud

DRIVERS ARE ON

CRUISE CONTROL

cost scalability

agility

28

@futureofcloud

#futureofcloud

LOOK OUT AHEAD.

THE SECOND CLOUD FRONT IS COMING

29

cost scalability agility

@futureofcloud

#futureofcloud

THE SECOND CLOUD FRONT

30

@futureofcloud

#futureofcloud

GROWTH IN WEB APIs

SINCE 2005

1 186 299 438 593

865 1263

1546 2026

2418

3422

5018

7182

9011

10302

Jun-05 Mar-06 Oct-06 May-07 Dec-07 Jul-08 Feb-09 Sep-09 Apr-10 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 Jun-14

11,493

Source Programmable

Web

@futureofcloud

#futureofcloud

REIMAGINING

APPLICATIONS

IN THE CLOUD

32

@futureofcloud

#futureofcloud

CLOUD FORMATIONS HAVE

CHANGED SOFTWARE

media &

entertainment

sensor cloud

e-commerce &

payments

mobile

social,

collaboration

big data &

analytics

33

APIs

APIs

APIs

APIs

APIs

APIs

@futureofcloud

#futureofcloud

UBER

THE SECOND CLOUD FRONT:

MANY CLOUD SERVICES =>

RE-IMAGINED APP

34

@futureofcloud

#futureofcloud

AMAZING BECAUSE CLOUD

35

From:

@futureofcloud

#futureofcloud

IMPOSSIBLE WITHOUT CLOUD

36

To:

@futureofcloud

#futureofcloud

37

CAD is the basis for all modern products, yet…

DESIGNED IN ISOLATION

• 100% on premise

• Limited by the power of the

compute device it runs on

• Global collaboration is

challenging

@futureofcloud

#futureofcloud

38

CAD in the cloud –

changes everything

@futureofcloud

#futureofcloud

HR as a Service

39

Recruiting &

ATS

Payroll

Benefits

Evaluation

& Reviews

Learning

management

… and many more HR is very rarely a core competency

= ripe for “Outservicing”

@ZENEFITS

@TRIBEHR

@CORNERSTONEINC

@BAMBOOHR

@LINKEDIN

@THERESUMATOR

@BULLHORN

@futureofcloud

#futureofcloud

SERVICES, APPS &

PROCESSES ON DEMAND:

40

@futureofcloud

#futureofcloud

CASE STUDIES FOR:

cost scalability agility

41

@futureofcloud

#futureofcloud

42

COMPANY

PROBLEM SOLVED

CUSTOMER

scalability

Online traffic had reached a saturation

point on the legacy on-premise platform,

which was negatively impacting uptime

Europe’s largest golf retailer with

101 stores in the UK and Republic of

Ireland

@DEMANDWARE

With Demandware:

Quick time-to-market, scalability & reliability

8 web & mobile sites; 4 languages; 20,000 skus

16% increase in average order value

45% of traffic comes from smartphones & tablets

15% of total sales now online

437% increase in traffic on Christmas day

43

Online traffic had reached a saturation

point on the legacy on-premise platform,

which was negatively impacting uptime

Europe’s largest golf retailer with

101 stores in the UK and Republic of

Ireland

COMPANY

PROBLEM SOLVED

CUSTOMER

scalability

@DEMANDWARE

VENDOR

PROBLEM SOLVED

CUSTOMER

! ! ! !

44

There was a massive bottleneck in getting a product to

market. With thousands of products and hundreds of

retailers, a product can take months to reach the market.

Global manufacturers of durable medical

equipment with thousands of products

distributed through hundreds of channels.

@SALSIFY

900 new products added to

Walmart in one day…

During Christmas.

45

PROBLEM SOLVED

SETH DIAMOND

VP ECOMMERCE, DRIVE MEDICAL

There was a massive bottleneck in getting a product to

market. With thousands of products and hundreds of

retailers, a product can take months to reach the market.

Global manufacturers of durable medical

equipment with thousands of products

distributed through hundreds of channels.

VENDOR CUSTOMER

@SALSIFY

46

PROBLEM SOLVED

CUSTOMER

cost agility

PRIVATE IaaS CLOUD to rapidly build and

deliver games and media applications

Provides interactive entertainment across

all digital media platforms with popular

titles including Club Penguin, Disney Infinity

COMPANY

@CITRIX

Increased

time-to-market, agility, lower TCO

47

PRIVATE IaaS CLOUD to rapidly build and

deliver games and media applications PROBLEM SOLVED

Provides interactive entertainment across

all digital media platforms with popular

titles including Club Penguin, Disney Infinity

COMPANY CUSTOMER

@CITRIX

48

COMPANY

PROBLEM SOLVED

CUSTOMER

cost agility

A leading medical research institute wanted to move away from

a traditional, distributed, computational workstation model to

an advanced private cloud-based model. Their goal was to

centralize and accelerate lab-based computational research by

deploying a flexible, dynamic, and easy-to-manage

infrastructure that was both cost effective and quick to deploy.

Piston Cloud Computing, Inc. is the

enterprise OpenStack® company. Piston

makes intelligent software for global-

scale private clouds built on OpenStack.

@PISTON

Moving to Piston OpenStack™ helped the

ORGANIZATION reach their goal by delivering a

faster, more agile IT environment.

“We thought we were doing a pilot, but our researchers decided

we were in production, and started doing real science on our

Piston OpenStack cloud.”

49

A leading medical research institute wanted to move away from

a traditional, distributed, computational workstation model to

an advanced private cloud-based model. Their goal was to

centralize and accelerate lab-based computational research by

deploying a flexible, dynamic, and easy-to-manage

infrastructure that was both cost effective and quick to deploy.

PROBLEM SOLVED

COMPANY CUSTOMER Piston Cloud Computing, Inc. is the

enterprise OpenStack® company. Piston

makes intelligent software for global-

scale private clouds built on OpenStack.

@PISTON

50

COMPANY

PROBLEM SOLVED

CUSTOMER

scalability

Excellent performance & reliability of The

People’s Voice AWARD Voting application,

while handling large, repeated traffic

spikes.

The leading international award

honoring excellence on the Internet. @ENGINEYARD

1.5 million votes and 1.3 million

unique site visitors in a two week

period

51

Excellent performance & reliability of The

People’s Voice AWARD Voting application,

while handling large, repeated traffic

spikes.

PROBLEM SOLVED

The leading international award

honoring excellence on the Internet.

COMPANY CUSTOMER

@ENGINEYARD

52

INHIBITORS - PROCEED WITH CAUTION -

inhibitors

@futureofcloud

#futureofcloud

53

compliance privacy security

Top

inhibitors

3

@futureofcloud

#futureofcloud

#1 INHIBITOR Security, remains the biggest concern,

despite declining slightly last year, it

rose again as an issue in 2014 and was

cited by 49% of respondents. 54

@futureofcloud

#futureofcloud

55

Greg Buchholz, Founder & CEO

“Most businesses consider contracts, partner agreements, sales

presentations and other similar content as intellectual property

to be protected at all costs. But every day employees

unwittingly put that content at risk by storing it in consumer

cloud storage services. In fact, a recent report unveiled at

the RSA Conference showed that 54% of organizationscite

security concerns as their biggest barrier to adopting cloud

services.”

@GBUCHHOLZ @SPRINGCM

56

PRIVACY IS OF

GROWING IMPORTANCE As an inhibitor, Privacy grew from 25% in 2011 to

31%

@futureofcloud

#futureofcloud

THE PRIVACY

TENSION…

TRUST?

Personalization Anonymity

57

privacy

@futureofcloud

#futureofcloud

USER PROFILE

TRUST IS

FRAGILE

58

@futureofcloud

#futureofcloud

59

THE RESISTANCE

Over 1/3 see Regulatory /

Compliance as an

inhibitor to moving

to the cloud

compliance

@futureofcloud

#futureofcloud

FURTHER INHIBITORS

60

lock-in interoperability

@futureofcloud

#futureofcloud

61

Interoperability concerns

dropped by 45%, relatively,

over the past two years.

But 29% are still concerned about lock in lock-in

interoperability

@futureofcloud

#futureofcloud

62

Jim Morrisroe, CEO

“Agility, reduction in capital expenditures, and reduced operating

expenditures -- in almost 100% of situations—have been the

primary drivers of cloud adoption.

We also expect to see cloud adoption increase as a result of the

recent explosion in big data analytics, mobile, and next-gen web

applications development and by line of business innovation.”

@JMORRISROE @PISTON

63

NEARLY ¼ PEOPLE STILL THINK NETWORK BANDWIDTH IS AN INHIBITOR

@futureofcloud

#futureofcloud

@D_D_PHILLIPS, @CLOUDHEALTHTECH

64

Dan Phillips, CEO and Co-Founder

"Cost, scalability and agility have made cloud computing

strategic to business success. But cloud adoption also

significantly increases business management complexity. To

embrace the full strategic potential of the cloud, executive

teams must find new ways to assert the necessary business

controls to address reliability, provisioning, security, and

regulatory and compliance needs."

66

COMPANY

PROBLEM SOLVED

CUSTOMER

UNC - Chapel Hill needed to get clear visibility into it

infrastructure usage and cost efficiency to make

informed decisions when acquiring and allocating

private or public cloud resources.

The University of North Carolina –

Chapel Hill is a top-tier public

university system.

cost agility

@6FUSION

UNC-Chapel Hill was able to establish the basis for

economic interchangeability and transparency for

their IT infrastructure usage (public or private) by

using a standardized measure for infrastructure

consumption - the 6fusion WAC.

67

UNC - Chapel Hill needed to get clear visibility into it

infrastructure usage and cost efficiency to make

informed decisions when acquiring and allocating

private or public cloud resources.

PROBLEM SOLVED

The University of North Carolina –

Chapel Hill is a top-tier public

university system.

COMPANY CUSTOMER

@6FUSION

68

DATA WANTS TO BE IN THE CLOUD

@futureofcloud

#futureofcloud

69

VOLUME - expanding

VELOCITY - accelerating

VARIETY - multiplying

@futureofcloud

#futureofcloud

Amazon S3 holds trillions of

objects and regularly peaks at

1.5 million requests per second.

VOLUME drives Big Data

70 Source

@futureofcloud

#futureofcloud

71 71 Source

Jul

13

Jan

14

Jun

14

700

600

500

400

300

200

100

VELOCITY drives Big Data IN

STAN

CE H

OU

RS

@futureofcloud

#futureofcloud

90% of the world’s data was created

in the past two years

80% of it is unstructured

VARIETY drives Big Data

72 Source

@futureofcloud

#futureofcloud

73

66% of data is in the

cloud today

Approximately

@futureofcloud

#futureofcloud

74

73% in two years

Expected to grow to

Though resistance comes from:

- privacy

- security

- control

- regulation

- compliance

- sovereignty

@futureofcloud

#futureofcloud

75

Ash Ashutosh, Actifio Founder & CEO

“We’ve helped our users migrate a greater share of their

mission critical application data to the cloud for

resiliency purposes for years – ensuring their ability to

meet their SLAs and improving their confidence in

disaster recovery. Actifio’s customers can also re-use this

data in the cloud for more than just an insurance policy

including application development, continuity planning,

testing, archiving, analytics – the possibilities are

virtually endless.”

@ASHASHUTOSH @ACTIFIO

76

DATA PROLIFERATION IN THE CLOUD Is both an enterprise phenomenon…

and consumer driven…

50% of enterprise customers will

purchase as much storage in 2014

as they have accumulated in their

ENTIRE history

Source

@futureofcloud

#futureofcloud

0

5

10

15

20

25

2012 2013 2014 2015 2016 2017

PERSONAL CLOUD TRAFFIC:

FROM 1.7 EXABYTES IN 2012 TO

20 EXABYTES IN 2017

63% CAGR

5 EXABYTES are equal to all the words spoken by human beings

77 Source

@futureofcloud

#futureofcloud

CLOUD NATIVE data is BIG

& proliferating

VOLUME - expanding

VELOCITY - accelerating

VARIETY - multiplying

78

@futureofcloud

#futureofcloud

BURST TO THE CLOUD DRIVES ARCHITECTURE

79

@futureofcloud

#futureofcloud

What types of cloud computing

technologies is your organization

using?

11% 2011 7%

2011

13% 2011

35% 2012

27% 2012

55% 2012

63% 2013

33% 2013

45% 2013

56% 2014

41% 2014

72% 2014

80

IaaS “compute” PaaS “develop” SaaS “software”

@futureofcloud

#futureofcloud

81

Lou Guercia, CEO

“The rise of SaaS, aside from its numerous advantages, has taught

companies about the dangers of unintegrated technology siloes.

Leading PaaS providers must address this obstacle by offering

baked-in integration capabilities.

This will enable businesses not only benefits from best-in-class

cloud solutions, but also from the flexibility and agility to connect

with existing SaaS and on-premise solutions.”

@LOUGUERCIA @SCRIBESOFT

82

Rob Walters, CTO

“Business managers commonly circumvent lengthy procurement

processes and use the cloud to deploy new apps or launch time-

sensitive campaigns faster. This can cause headaches for IT

departments that have to maintain security and regulatory

compliance. The most successful companies are finding ways to

reap the benefits of the cloud – agility, efficiency and cost

savings – while integrating security and governance best

practices to ensure they’re driving business growth without

undue risk.” @engineyard @ENGINEYARD

APPLICATION

DEVELOPMENT –

GROWING 50% If you’re going to deploy in

the cloud, why wouldn’t

you develop in the cloud?

DevOps => Continuous:

Innovation

Test

Deployment

Integration

Automation &

Programmability

83

@futureofcloud

#futureofcloud

PaaS APPROACHING THE

TIPPING POINT

7% 2011

41% 2014

50%

84

@futureofcloud

#futureofcloud

DATABASE

AS A SERVICE

ONLY POSSIBLE BECAUSE OF CLOUD…

Expected to nearly

double, from 23%

to 44% among users

user

23% 44%

85

@futureofcloud

#futureofcloud

BY 2017,

NEARLY TWO-THIRDS

OF ALL WORKLOADS

WILL BE PROCESSED IN

CLOUD DATA CENTERS

86 Source

Growth of workloads in cloud data centers is expected to be five times the growth in traditional workloads between 2012 and 2017

@futureofcloud

#futureofcloud

SDN GROWTH

SDN usage will grow among

business users almost three-

fold, from 11% to 30%

11% 87

@futureofcloud

#futureofcloud

SDN GROWTH

SDN usage will grow among

business users almost three-

fold, from 11% to 30%

30%

88

@futureofcloud

#futureofcloud

89

PROBLEM SOLVED

CUSTOMER

Deployed Cisco UCS running OpenStack to scale with an

aggressive growth strategy. established a flexible cloud

infrastructure to streamline operations, reducing data

center size and complexity.

With more than 13 billion hosted photos and

videos from 100 million registered users,

Photobucket is one of the world’s largest image

and video hosting services.

COMPANY

@CISCO

Saved over $120,000 in data center costs

annually by migrating resources to cloud,

reducing its footprint by 98 percent and

accelerating server provisioning time from

days to minutes.

90

Deployed Cisco UCS running OpenStack to scale with an

aggressive growth strategy. established a flexible cloud

infrastructure to streamline operations, reducing data

center size and complexity.

PROBLEM SOLVED

With more than 13 billion hosted photos and

videos from 100 million registered users,

Photobucket is one of the world’s largest image

and video hosting services.

COMPANY CUSTOMER

@CISCO

hybrid cloud

HYBRID CLOUD…

WAS A “HEDGE”

CAN IT BE “BEST OF”? 91

@futureofcloud

#futureofcloud

hybrid cloud

HYBRID CLOUD

USAGE NOW…

42% use Hybrid Cloud

92

@futureofcloud

#futureofcloud

hybrid cloud

HYBRID CLOUD

AND GROWING…

Growing to

55% in 2 years

93

@futureofcloud

#futureofcloud

hybrid cloud

94

HYBRID CLOUD

… AT EXPENSE OF PRIVATE CLOUD

Taking a chunk out of Private Clouds…

which will decline by almost half from 24% to 13%

Growing to

55% in 2 years

@futureofcloud

#futureofcloud

95

Pete Manca, Chairman, President & CEO

“With the growing number of cloud services available today

through multitudes of vendors, we’ve now reached the multi-

cloud era where organizations are managing their physical

network, private cloud, and a wide range of public and

specialized cloud services.

As cloud services and users’ consumption models continue to

evolve, so too must technologies for effectively managing these

environments.”

@PETEMANCA @EGENERA

user vendor

+23% +44%

user vendor

96

AMONG BOTH VENDORS AND BUSINESS USERS,

HYBRID CLOUD ARCHITECTURE IS THE MOST

COMMON TODAY AND IS EXPECTED TO GROW

THE MOST OVER THE NEXT FIVE YEARS.

@futureofcloud

#futureofcloud

Private Hybrid Public

SaaS

PaaS

IaaS

CLOUDS BLOWING IN THE

WINDS OF CHANGE

97

@futureofcloud

#futureofcloud

Private Hybrid Public

SaaS

PaaS

IaaS

CLOUDS BLOWING IN THE

WINDS OF CHANGE

98

@futureofcloud

#futureofcloud

Private Hybrid Public

SaaS

PaaS

IaaS

CLOUDS BLOWING IN THE

WINDS OF CHANGE

99

“PaaS squeeze?”

APaaS

IPaaS

@futureofcloud

#futureofcloud

INVESTMENTS IN CLOUD

100

@futureofcloud

#futureofcloud

101

CLOUD & SaaS M&A and IPOs

Year M&A (B) IPO (MM) SaaS & Cloud as

% of Tech IPOS

2011 $7.5B $925 MM 20%

2012 $12.9 B $1,534 MM 77%*

2013 $9.7 B $1,674 MM 45%

2014 $3.0 B $901 MM 29%

*Excluding Facebook’s 2012 IPO **The numbers are based on the Top 10 M&A deals and Top 10 IPOs in the Cloud and SaaS space. *** It’s 2014YTD.

$38.1B in Cloud & SaaS value creation in last 4 years

CAP IQ Source

@futureofcloud

#futureofcloud

102

DEAL TRENDS – U.S.

$1.9B 203 deals

$9.2M/deal

2010

$3.2B 323 deals

$9.9M/deal

2011

$4.2B 386 deals

$10.8M/deal

2012

$4.8B 417 deals

$8.4M/deal

2013

$8.3B 324 deals

$25.8M/deal

2014*

*Note: (As of 12/14/2014) larger deal

size due to 24 $100M+ amounts

raised this year from companies like

Actifio, Box, Cloudera, Dropbox,

Hortonworks, Inside Sales, New Relic

and Pure Storage

2014 YTD

@futureofcloud

#futureofcloud

$0

$5

$10

$15

$20

$25

2005 2006 2007 2008 2009 2010 2011 2012

Cumulative Capital Investment (‘000,000s)

Google Amazon Microsoft Rackspace

@AHESS247

RE/CODE, ARIK HESSELDAHL

HP bets $1 billion

to build new cloud

services brand

IBM to invest $1.2

billion to boost

SoftLayer Cloud

Services

@ALEXBARINKA

BLOOMBERG, ALEX BARINKA

@AHESS247

RE/CODE, ARIK HESSELDAHL

Cisco goes after

cloud services with

$1 billion

investment

$20.9 B

$1.4 B

Source: The Register, as seen in

$1 BILLION COST OF ENTRY… @futureofcloud

#futureofcloud

Economies of

still matter 104

@futureofcloud

#futureofcloud

*V ( $$$ + D ) = A

INVESTMENT DIVAs

($$$ high levels of cash on balance sheets + cloud Disruption) *

Innovation * Venture investment = Attractive Acquisitions

* I

105

@AUTHOR

BUSINESS INSIDER, JULIE BORT

@futureofcloud

#futureofcloud

NB INVESTMENTS IN CLOUD

$7.9B VALUE QUADRUPLED OVER 2013 7 NEW INVESTMENTS

106

@futureofcloud

#futureofcloud

107

FUTURE & CONCLUSIONS

@futureofcloud

#futureofcloud

108

WE ARE IN THE MIDDLE OF A

SEISMIC SHIFT IN TECHNOLOGY

Transitioning Living in the cloud Transforming

@futureofcloud

#futureofcloud

CLOUD IS STILL EARLY, AND IN A PHASE OF DISCOVERY

For many customers, we are still really early, and they are uncovering new areas of opportunity

109

@futureofcloud

#futureofcloud

CLOUD ‘AS A SERVICE’ MARKET

HIGHLIGHTS

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2012 2013 2014 2015 2016 2017 2018

Global Cloud Computing Revenue ($M)

IaaS

PaaS

Infrastructure SaaS

29% CAGR

110 Source

@futureofcloud

#futureofcloud

111

Jay Lyman, Senior Analyst

"It seems we're seeing further confirmation that more of what

enterprises do with IT and technology is moving to the cloud,

regardless of their industry or vertical,' said 451 Research

Senior Analyst Jay Lyman. 'The growth of hybrid cloud in

particular indicates more organizations are seeking to formalize

and standardize early, public cloud use that has not fully

addressed security, compliance and regulatory, integration and

other concerns of these enterprise organizations.”

@engineyard @RIPCITYLYMAN @451RESEARCH

THE CLOUD WINDOW IS

STILL OPEN

• Migration underway

• Re-imagined applications ahead

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@futureofcloud

#futureofcloud

CLOUD SERVICES ARE CHANGING SOFTWARE

media &

entertainment

sensor cloud

e-commerce &

payments

mobile

social,

collaboration

big data &

analytics

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APIs

APIs

APIs

APIs

APIs

APIs

“the programmable cloud”

@futureofcloud

#futureofcloud

AMAZING BECAUSE CLOUD

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From:

@futureofcloud

#futureofcloud

IMPOSSIBLE WITHOUT CLOUD

115

To:

@futureofcloud

#futureofcloud

THIS SECOND CLOUD FRONT WILL

BE AN ORDER OF MAGNITUDE

BIGGER THAN THE FIRST CLOUD FRONT

116

@futureofcloud

#futureofcloud

EVERYTHING AS A SERVICE:

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@futureofcloud

#futureofcloud

James Goldstein North Bridge, General Partner

Boards: Actifio, Compass EOS, Layer3 TV, O3B

Networks, Plexxi, QD Vision

www.linkedin.com/in/jamiegoldstein1\

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@futureofcloud

#futureofcloud

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THANK YOU +

@futureofcloud

#futureofcloud

ADDITIONAL CASE STUDIES

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@futureofcloud

#futureofcloud

By integrating cloud-based software, Top Notch could quickly

deploy new communications services into its core offering. In

less than one month, Top Notch had its first customer signed

and using these new services. Top Notch Networking’s hosted

solutions have enabled existing customers to be more

profitable, and helped its customers to realize the benefits of

the cloud.

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Top Notch Networking wanted to offer hosted VoIP and

new communications services to its customers. With

CoreDial’s cloud-based platform, Top Notch was able

to quickly add the new services, and generate new

revenue in less than one month.

CoreDial is a leading cloud

communications software and services

provider.

COREDIAL

PROBLEM SOLVED

TOP NOTCH NETWORKING

@COREDIAL

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CUSTOMER COMPANY Biagi Bros. is a family-owned and operated supply chain management enterprise. The company credits its success to valuable customers, dedicated managers and a team of expert professionals.

Bringing on-premise to the cloud age: Connecting legacy warehousing with modern ERP

PROBLEM SOLVED

@SCRIBESOFT

Results: Real-time Business Analytics, Improved Sales & Customer Communications

Enables corporate accounting, freight and warehouse systems to share information through two-way data exchange

Provided key personnel with immediate visibility into customer account and order records

Accelerated Process for transforming freight orders into sales orders

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Bringing on-premise to the cloud age: Connecting legacy warehousing with modern ERP

PROBLEM SOLVED

COMPANY CUSTOMER Biagi Bros. is a family-owned and operated supply chain management enterprise. The company credits its success to valuable customers, dedicated managers and a team of expert professionals.

@SCRIBESOFT