2014 North Bridge Future of Cloud Computing Study | Results of industry-wide survey conducted in partnership with Gigaom + 72 collaborators.

1. 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. 2
PROGRAM
GOALS
user vendor
industry-wide
conversation
vendor
agnostic
@futureofcloud
#futureofcloud

3. 3
WHO WE
HEARD FROM
user vendor
Good balance of user and vendors
LARGEST
CLOUD SURVEY EVER
2xas many respondents this
year compared to the
first survey in 2011
72Largest number
collaborators
= 1,358 respondents
@futureofcloud
#futureofcloud

4. 4
THE COLLABORATORS 2014+

5. 5
AGENDA
cloud
landscape
inhibitor
trends investmentsbusiness
challenges
phase 2
benchmark driver
@futureofcloud
#futureofcloud

6. 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

7. CLOUD IS STRATEGIC
& POWERING INNOVATION
7
@futureofcloud
#futureofcloud

8. 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

9. CLOUD IS STRATEGIC
35%cited Innovation or
Competitive Advantage as drivers
9
@futureofcloud
#futureofcloud

10. CLOUD IS
INTEGRAL
45%
want to or already run
their company in the cloud
10
@futureofcloud
#futureofcloud

11. 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.”

12. APPLICATIONS
ARE BLOWING THE CLOUD
12
@futureofcloud
#futureofcloud

13. 13%
2011
72%
2014
13
SaaS has leapt ahead
@futureofcloud
#futureofcloud

14. TRANSITIONING
14
THE FIRST CLOUD FRONT:
@futureofcloud
#futureofcloud

15. TRANSITIONING
15
LEGACY APPLICATIONS:
ecommerce
ERPCRM
@futureofcloud
#futureofcloud
@SALESFORCE @WORKDAY @DEMANDWARE

16. 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

17. sales &
marketing
customer
service
business
analytics
52%
44%
44%
BUSINESS FUNCTIONS -
FRONT OFFICE IS IN THE LEAD…
17
@futureofcloud
#futureofcloud

18. CONCERNS over expense of
TRANSITIONING to the cloud have grown three-fold:
to 18% today
from 6% in 2011
18
@futureofcloud
#futureofcloud

19. IT is
grappling…
80% of IT budget
is used to maintain current systems
Source19
@futureofcloud
#futureofcloud

20. 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

21. disaster
recovery
web
presence
communications
The IT functions
that have already won their cloud
battle are:
63% 54% 47%
21
@futureofcloud
#futureofcloud

22. 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

23. The Laggards:
BACK OFFICE
IT apps
19% 17%
34% 31%MOVING
transaction
processing
data center
consolidation
NOT
MOVING
23
@futureofcloud
#futureofcloud

24. 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

25. DRIVERS
25
@futureofcloud
#futureofcloud

26. 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

27. 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

28. DRIVERS ARE ON
CRUISE CONTROL
cost scalability
agility
28
@futureofcloud
#futureofcloud

29. LOOK OUT AHEAD.
THE SECOND CLOUD
FRONT IS COMING
29
cost scalability agility
@futureofcloud
#futureofcloud

30. THE SECOND
CLOUD FRONT
30
@futureofcloud
#futureofcloud

31. 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

32. REIMAGINING
APPLICATIONS
IN THE CLOUD
32
@futureofcloud
#futureofcloud

33. 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

34. UBER
THE SECOND CLOUD FRONT:
MANY CLOUD SERVICES =>
RE-IMAGINED APP
34
@futureofcloud
#futureofcloud

35. AMAZING BECAUSE CLOUD
35
From:
@futureofcloud
#futureofcloud

36. IMPOSSIBLE WITHOUT CLOUD
36
To:
@futureofcloud
#futureofcloud

37. 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. 38
CAD in the cloud –
changes everything
@futureofcloud
#futureofcloud

39. 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

40. SERVICES, APPS &
PROCESSES ON DEMAND:
40
@futureofcloud
#futureofcloud

41. CASE STUDIES FOR:
cost scalability
agility
41
@futureofcloud
#futureofcloud

42. 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

43. 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

44. 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

45. 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.
VENDORCUSTOMER
@SALSIFY

46. 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

47. 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
COMPANYCUSTOMER
@CITRIX

48. 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

49. 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
COMPANYCUSTOMER Piston Cloud Computing, Inc. is the
enterprise OpenStack® company. Piston
makes intelligent software for global-
scale private clouds built on OpenStack.
@PISTON

50. 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

51. 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.
COMPANYCUSTOMER
@ENGINEYARD

52. 52
INHIBITORS
- PROCEED WITH CAUTION -
inhibitors
@futureofcloud
#futureofcloud

53. 53
complianceprivacysecurity
Top
inhibitors
3
@futureofcloud
#futureofcloud

54. #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. 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. 56
PRIVACY IS OF
GROWING IMPORTANCE
As an inhibitor, Privacy grew from 25% in 2011 to
31%
@futureofcloud
#futureofcloud

57. THE PRIVACY
TENSION…
TRUST?
PersonalizationAnonymity
57
privacy
@futureofcloud
#futureofcloud

58. USER
PROFILE
TRUST IS
FRAGILE
58
@futureofcloud
#futureofcloud

59. 59
THE
RESISTANCE
Over 1/3
see Regulatory /
Compliance as an
inhibitor to moving
to the cloud
compliance
@futureofcloud
#futureofcloud

60. FURTHER INHIBITORS
60
lock-ininteroperability
@futureofcloud
#futureofcloud

61. 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. 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. 63
NEARLY ¼ PEOPLE
STILL THINK NETWORK
BANDWIDTH IS AN
INHIBITOR
@futureofcloud
#futureofcloud

64. @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."

65. 65
RELIABILTY CONCERNS
DROPPED BY HALF SINCE 2011
reliability
2014:
RELIABILITY
concerns dropped from
30% to 16%
over last 4 years
@futureofcloud
#futureofcloud

66. 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

67. 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.
COMPANYCUSTOMER
@6FUSION

68. 68
DATA WANTS
TO BE IN THE CLOUD
@futureofcloud
#futureofcloud

69. 69
VOLUME - expanding
VELOCITY - accelerating
VARIETY - multiplying
@futureofcloud
#futureofcloud

70. 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. 7171 Source
Jul
13
Jan
14
Jun
14
700
600
500
400
300
200
100
VELOCITY drives Big Data
INSTANCEHOURS
@futureofcloud
#futureofcloud

72. 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. 73
66%
of data is in the
cloud today
Approximately
@futureofcloud
#futureofcloud

74. 74
73%
in two years
Expected to grow to
Though resistance comes from:
- privacy
- security
- control
- regulation
- compliance
- sovereignty
@futureofcloud
#futureofcloud

75. 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. 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

77. 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

78. CLOUD NATIVE data is BIG
& proliferating
VOLUME - expanding
VELOCITY - accelerating
VARIETY - multiplying
78
@futureofcloud
#futureofcloud

79. BURST TO THE CLOUD
DRIVES ARCHITECTURE
79
@futureofcloud
#futureofcloud

80. 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. 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. 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

83. 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

84. PaaS APPROACHING THE
TIPPING POINT
7%
2011
41%
2014
50%
84
@futureofcloud
#futureofcloud

85. 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

86. 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

87. SDN GROWTH
SDN usage will grow among
business users almost three-
fold, from 11% to 30%
11%
87
@futureofcloud
#futureofcloud

88. SDN GROWTH
SDN usage will grow among
business users almost three-
fold, from 11% to 30%
30%
88
@futureofcloud
#futureofcloud

89. 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

90. 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.
COMPANYCUSTOMER
@CISCO

91. hybrid cloud
HYBRID CLOUD…
WAS A “HEDGE”
CAN IT BE “BEST OF”?
91
@futureofcloud
#futureofcloud

92. hybrid cloud
HYBRID CLOUD
USAGE NOW…
42%
use Hybrid Cloud
92
@futureofcloud
#futureofcloud

93. hybrid cloud
HYBRID CLOUD
AND GROWING…
Growing to
55%
in 2 years
93
@futureofcloud
#futureofcloud

94. 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. 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

96. 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

97. Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
97
@futureofcloud
#futureofcloud

98. Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
98
@futureofcloud
#futureofcloud

99. Private Hybrid Public
SaaS
PaaS
IaaS
CLOUDS BLOWING IN THE
WINDS OF CHANGE
99
“PaaS squeeze?”
APaaS
IPaaS
@futureofcloud
#futureofcloud

100. INVESTMENTS
IN CLOUD
100
@futureofcloud
#futureofcloud

101. 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 IQSource
@futureofcloud
#futureofcloud

102. 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

103. $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

104. Economies of
still matter
104
@futureofcloud
#futureofcloud

105. *V( $$$ + D ) = A
INVESTMENT DIVAs
($$$ high levels of cash on balance sheets + cloud Disruption) *
Innovation * Venture investment = Attractive Acquisitions
* I
105
@futureofcloud
#futureofcloud

106. NB INVESTMENTS IN CLOUD
$7.9B
VALUE
QUADRUPLE
D OVER 2013
7 NEW INVESTMENTS
106
@futureofcloud
#futureofcloud

107. 107
FUTURE & CONCLUSIONS
@futureofcloud
#futureofcloud

108. 108
WE ARE IN THE MIDDLE OF A
SEISMIC SHIFT IN TECHNOLOGY
Transitioning Living in the cloudTransforming
@futureofcloud
#futureofcloud

109. 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

110. 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. 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

112. THE CLOUD
WINDOW IS
STILL OPEN
• Migration underway
• Re-imagined applications ahead
112
@futureofcloud
#futureofcloud

113. CLOUD SERVICES ARE
CHANGING SOFTWARE
media &
entertainment
sensor cloud
e-commerce &
payments
mobile
social,
collaboration
big data &
analytics
113
APIs
APIs
APIs
APIs
APIs
APIs
“the programmable cloud”
@futureofcloud
#futureofcloud

114. AMAZING BECAUSE CLOUD
114
From:
@futureofcloud
#futureofcloud

115. IMPOSSIBLE WITHOUT CLOUD
115
To:
@futureofcloud
#futureofcloud

116. THIS SECOND CLOUD FRONT WILL
BE AN ORDER OF MAGNITUDE
BIGGER THAN THE FIRST CLOUD FRONT
116
@futureofcloud
#futureofcloud

117. EVERYTHING
AS A SERVICE:
117
@futureofcloud
#futureofcloud

118. James Goldstein
North Bridge, General Partner
Boards: Actifio, Compass EOS, Layer3 TV, O3B
Networks, Plexxi, QD Vision
www.linkedin.com/in/jamiegoldstein1
118
@futureofcloud
#futureofcloud

119. 119
THANK YOU+
@futureofcloud
#futureofcloud

120. ADDITIONAL
CASE STUDIES
120
@futureofcloud
#futureofcloud

121. 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.
121
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

122. 122
CUSTOMER COMPANYBiagi 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

123. 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
123
Bringing on-premise to the cloud age:
Connecting legacy warehousing with modern ERP
PROBLEM
SOLVED
COMPANYCUSTOMER 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