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 Hosting – Network – Real-estate - Power Hardware – CPU Cycles – Storage - Virtualization Development – Framework – Database - Provisioning Eco-System – Access – Billing – Analytics – Integration - Monitoring Data Marketplace Applications Services

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 SaaS Market Perpetual license Market 17.7% 3.6% (Gartner)

9. The Sky is Not the Limit – Cloud in Numbers 2010 $68 B SaaS Market Perpetual license 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. "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) If you can’t fight them, join them.... The Big Guys Come To Play

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

14. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

15. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

16. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

17. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

18. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

19. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

20. Cloud Acquisitions – A Partial List D CenterVirtual.PaaSSaaSDaaSEcoSys CA Cassatt4Base3TerraOblicoreNimsoft Cisco LineSider, Tidal Webex, Skype ScanSafe Citrix PagloVMLogixSpringSourcePostPath Dell Ocarina3PARBoomi EMC FastScale, Integrien, Greenplum VMwareTriCipher HP IBRIX, Opsware, Lefthand PolyServeFortifyMelodeo IBM StorwizeLombardi, Unica, Coremetrics CastIron, Netezza Oracle SunVirtual IronPasslogix RackSpace JungleDiskSlicehostWebmail.us Salesforce HerokuDimDim, ActivaJigsawInstranet, Groupswim

21. OSBrowserPaaSSaaSSearchDaaSMobile Windows IEAzure Hotmail, MS Office 365 BingBing Maps, Zune, Azure DataMarket Windows Phone 7 Chrome Google App Gmail, Google Docs GoogleGoogle maps, YouTube, Google Squared Android 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&DQualityOpsSupportSalesMarketingFinancePSLegal

25. Engineering 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 R&DQualityOpsSupportSalesMarketingFinancePSLegal

26. Customer Support 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 R&DQualityOpsSupportSalesMarketingFinancePSLegal

27. Sales 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 R&DQualityOpsSupportSalesMarketingFinancePSLegal

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