2011 North Bridge Future of Cloud Computing Study

Gigaom Structure : June 22, 2011

FUTURE OF CLOUD LEADERSHIP PANEL

www.NorthBridge.com

Michael Skok

General Partner

Leadership Panel

2

Dries Buytaert

CTO & FounderPresident

Lew Moorman

John Dillon

CEO

Marten Mickos

CEO

@Dries @LewMoorman

@JohnDillon @EntreCapitalist @MartenMickos

www.NorthBridge.com 3

Agenda

www.NorthBridge.com

Enterprise Cloud Computing Definitions

4

SaaS[application]

PaaS[platform]

IaaS[infrastructure]

Storage Compute Network

Dev Tools Frameworks Management

CRM

Web / Mobile

ApplicationsSales Force

Automation

Blogs

Email

Content

Management

Marketing Payroll

Office

Productivity

SURVEY BACKGROUND

6

www.FutureCloudComputing.net

www.NorthBridge.com

Survey Partners & Collaborators

7

www.NorthBridge.com

Who took the survey?

8

46%

vendors

54%

non-vendors

417Total Responses

www.NorthBridge.com

Who took the survey?

9

www.NorthBridge.com

Survey Respondents

10

Firms

9k

100k

6M

>1000

Enterprise

100-1000 employees

Mid-Market

<100 employees

Small

Source: 2007 US Census Bureau; IDC, Salesforce.com

Survey

Respondents

14%

18%

68%

OnPremise

Stronghold

OnDemand

Stronghold

= Cloud Market

www.NorthBridge.com 11

What would you like to

hear about cloud

computing?

Usage… today

Drivers,

Inhibitors

… for the future

www.NorthBridge.com

How do Customers Characterize their Approach to

Using Cloud Computing Today?

12

Experimenting

Waiting to mature

Complete confidence for

mission critical applications

Using for usage spikes

Will never use, too risky10%

26%

40%

11%

13%

www.NorthBridge.com

LIVE Vote!

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13

How would you characterize your approach

to utilizing cloud infrastructure today for

mission critical business applications and

processes?

“toorisky”Never, cloud too risky……….

Waiting for cloud to mature…“waiting”

Experimenting…..……………“experiment”

For usage spikes…………….“spikes”

Complete confidence………..“complete”

www.NorthBridge.com

Months Using Cloud

14

0%

5%

10%

15%

20%

25%

30%

35%

40%

3 10 12 18 24 36 48 60

Months

Responses

Average

Months

Using Cloud20

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LIVE Vote!

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What are the most important drivers

to adopting Cloud Computing?

“cost”Cost………………….

Agility……………….. “agility”

Mobility…..…………. “gomobile”

CapEx to OpEx….… “capex”

Scalability…………...“scale”

Pace of Innovation…“pace”

15

www.NorthBridge.com

Agility Scalability Cost Efficiency Innovation Capex toOpex

Competitive Mobility Other CustomerDemand

Cloud APIs

Drivers For Cloud Adoption

16

47%

263%100%

113%

64%

Now vs. 5 years

www.NorthBridge.com

Inhibitors to Adoption… What is Top-of-Mind?

18

2%

3%

6%

10%

11%

11%

12%

12%

13%

20% Security

Compliance

Vendor Lock-in

Interoperability

Reliability

Complexity

Privacy

Pricing

Expense

Other

www.NorthBridge.com

What is the Strategy of Cloud Customers Today?

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Hybrid39%

Public37%

Private24%

… in the Future?

21%

12%

27%

42%

www.NorthBridge.com 20

Cloud Computing TCO is…

29%

www.NorthBridge.com 21

Cloud Computing TCO is…

57%

29%

14%

www.NorthBridge.com

Impact of Cloud Computing on IT Manageability?

22

More ComplexLess Complex No Impact

39% 39%22%

www.NorthBridge.com

What is the Impact of Cloud Computing on Hiring?

23

No Impact42%

Increased10%

Expected increase

22%

Decreased17%

Expected decrease

9%

26%Decrease

32%Increased

42%None

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Top Up and Coming Cloud Companies?

24

PU

BLIC

PR

IVA

TE

www.NorthBridge.com

Cloud Investments

26

2009

2010

2011

64deals

93deals

$482M

$713M

??

Source: Dow Jones Company

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What Services do Vendors feel they need to provide for

use in the Future?

32

www.NorthBridge.com 33

Most Likely sectors disrupted by

Cloud Computing over the next 5 years

www.NorthBridge.com

Cloud Revenue Projections ($m)

35

$6,891

$8,814

$11,296

$14,104

$17,538

$21,057

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2009 2010 2011 2012 2013 2014

Iaas, Paas & SaaS Revenue

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LIVE Vote!

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36

In 5 years, what percentage of your

computing will be in the Cloud?

“25perc”0-25%…………….…

26-50%…………….. “50perc”

51-75%…..……..….. “75perc”

76-100%….…………“100perc”

“nothing”None..…………….…

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What % of Your Computing is in the Cloud Today?

37

None

25%

50%

100%23%

34%

26%

14%

3%

17%

22%

14%

38%

10%

75%

today

+5 yrs

…in +5 Years?

75% predict

2/3rds of computing

will be in the Cloud!

www.NorthBridge.com 38

You asked for it – we covered it…

Cloud usage… today

Drivers

Inhibitors … for the future

Full details of the

survey, plus thought

leadership…

http://www.northbridge.com/cloud-computing

@futureofcloud

www.NorthBridge.com

Cloud Storm is Brewing!

39

• Private and Public Clouds are gathering

• Hybrid, Interoperability are going to cause a storm

• Security, Compliance & Vendor lock-in are going to rain on

the parade

• As Mobility surges

• Lightning may strike twice – Agility, Innovation – for

Competitive Advantage

• Impact on IT manageability, Staffing is still unclear, but

TCO should be reduced

www.NorthBridge.com

A big thank you from North Bridge to…

40

Dries Buytaert

CTO & Founder President

Lew MoormanJohn Dillon

CEO

Marten Mickos

CEO