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The Cloud Landscape and Transition to SaaS

The Cloud Landscape and Transition to SaaS. Dani Shomron Jan 2010. Agenda. Cloud landscape The Cloud Stack Phenomenal Growth Drivers Cloud Wars Transition to SaaS Challenges Impact on the Organization A path to success. The Cloud Stack. The Cloud Stack– The Full Monty. Services.

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The Cloud Landscape and Transition to SaaS

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  1. The Cloud Landscape and Transition to SaaS Dani Shomron Jan 2010

  2. Agenda • Cloud landscape • The Cloud Stack • Phenomenal Growth • Drivers • Cloud Wars • Transition to SaaS • Challenges • Impact on the Organization • A path to success

  3. The Cloud Stack

  4. The Cloud Stack– The Full Monty Services Applications Data Marketplace Eco-System – Access – Billing – Analytics – Integration - Monitoring Development – Framework – Database - Provisioning Hardware – CPU Cycles – Storage - Virtualization Hosting – Network – Real-estate - Power

  5. “I’m all about the cloud computing notion. I look at my lifestyle, and I want access to information wherever I am.I am killing projects that don’t investigate SaaS first.” The Cloud is Here Obama’s CIO, Vivek Kundra (WSJ)

  6. Times Are Changing * 2010 State Of The Market: 10 Things You Need To Know – Channel Web (CRN)

  7. The Sky is Not the Limit – Cloud in Numbers 76% Using one or more SaaS applications (IDC) 24% Not Yet… • 86% adoption rate in SMBs (Microsoft). • 65% forecasted adoption rate in companies with > $100M in yearly revenue are forecasted to be using SaaS (Saugatuck)

  8. The Sky is Not the Limit – Cloud in Numbers • SaaS market will grow by 17.7% between 2009-2013, where as perpetual license companies are only growing at 3.6%. 2010 $68 B 17.7% 3.6% Perpetual license Market SaaS Market (Gartner)

  9. The Sky is Not the Limit – Cloud in Numbers 2010 $68 B Perpetual license Market SaaS Market Gartner expects enterprise SaaS to more than double by 2012.

  10. The Sky is Not the Limit – Cloud in Numbers • 18% increase in SaaS revenue this year, up to $7.5 billion. • Salesforce doubled its revenue in 2010 to $2 billion.  • 50% of all new software - SaaS by 2014 (Saugatuck) • By 2012, 20% of businesses will own no IT assets(Gartner)

  11. Drivers • Frustration • Costs • Time to value • Anytime Anywhere • Environmentally friendly • Commoditization of hardware • Core vs. non-differentiating business services trend From IT avoidance to IT strategy

  12. The Big Guys Come To Play If you can’t fight them, join them.... "Information technology is undergoing a seismic shift towards the cloud, a disruption we believe is as game-changing as the transition from mainframes to client/server.“ (Microsoft's Corporate Strategy Group)

  13. Azure Test & Dev cloud VMForce Heroku CloudStart Unified Service Delivery Chrome Netbook Cloud Office

  14. Cloud Acquisitions – A Partial List

  15. Cloud Acquisitions – A Partial List

  16. Cloud Acquisitions – A Partial List

  17. Cloud Acquisitions – A Partial List

  18. Cloud Acquisitions – A Partial List

  19. Cloud Acquisitions – A Partial List

  20. Cloud Acquisitions – A Partial List

  21. Clash of the Titans

  22. ISVs in the Cloud… SaaS

  23. Total Upheaval • Not another delivery mechanism • Transition to SaaS is a paradigm shift • Selling a Service not a Product • Will affect every silo in the organization • Introduce new functions and entities • Operations, 24X7 support • Service Marketing, Service testing • Technical Account Managers • SLAs, Compliance

  24. The SaaS Organization R&D Quality Ops Support Sales Marketing Finance PS Legal

  25. Engineering R&D Quality Ops Support Sales Marketing Finance PS Legal • Modify (rewrite?) architecture • Simpler development – single platform • Service readiness • Scalability & high availability • Short release cycles • Adopt agile S/W development • Interact more closely with end-users

  26. Customer Support R&D Quality Ops Support Sales Marketing Finance PS Legal • User experience, customer sat and success are paramount • Important role, higher skills, higher pay • All IT communications at your doorsteps • Switch to a 24X7 • Knowledge upgraded from installation / maintenance to app/domain knowledge • Develop problem resolution skills

  27. Sales R&D Quality Ops Support Sales Marketing Finance PS Legal • Substantial changes • From Elephant hunting to cyber sales • From selling a product to selling a service • From perpetual to subscription • From hunters to farmers • From outbound to inside sales • Compensation up-front to spread over a year or more • Sales cycles shorten dramatically • Partners, channels, resellers, SaaS aggregators play a more important role for maximum exposure

  28. Success is Not Guaranteed • The more successful the ISV, the more entrenched in the old paradigm (SAP) • Not in company’s DNA. • Switch from product to service. • Shift of focus to operations and customer service. • Change pace of dev and delivery. • Expect push back - Internal resistance to change: R&D, QA, Services, Sales. (MMS) • Fear of cannibalization of existing sales

  29. The Secret Sauce Vision & Leadership • Paradigm shift – need C&V level commitment • Pay attention to customers’ needs • Ensure a buy-in at all levels – make it a company goal - get Sales involved early

  30. Path to Success • Offer a sub-system as a POC • Acquire SaaS company with complimentary product. • Hybrid stage. Insist on phasing out. • If possible – spin out company • Integrate existing solutions. Many cloud solutions available • Get help. Work with Partner not Vendor

  31. Q & A Thank you Dani Shomron IsraelSaasCenter.com

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