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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR’s Cloud Business QuarterlySM

Public Cloud Research Highlights and Outlook

Technology Business Research Quarterly Webinar Series Oct. 30, 2014

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2 TBR Quarterly Webinar Series | 10.30.14 | www.tbri.com | ©2014 Technology Business Research Inc.

Cloud Business Quarterly Research Highlights and Outlook: Webinar Presenters

Jillian Mirandi

Senior Analyst, Cloud

Email: [email protected]

Twitter: @JillianNotes

Allan Krans

Practice Manager, Cloud


Twitter: @AllanKrans

mailto:[email protected]


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Cloud Market Overview

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Public Cloud Market

40% of the global enterprise market has adopted public cloud services; that number will continue growing, albeit at a slower pace, through 2018

CLBQ Public Cloud 2Q14 Research Highlights

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Public Cloud Market

The public cloud market will reach $113B in 2018, driven by high volumes of SaaS revenue and increasing IaaS revenue


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Public Cloud Market Segments

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NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.

Public Cloud % Revenue Growth vs. Public Cloud $ Revenue Growth

Google and IBM are reshaping the market and moving quickly into leadership positions as they monetize increased public cloud investments


Leaders

Moving into leadership positions

Note: Vendors included on graph realized an estimated $150 million in trailing 12-month public cloud revenues (from 3Q13 through 2Q14).

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Public Cloud Market Summary

The more mature SaaS cloud market focuses on industry strategies, while price wars are back at the forefront of IaaS due to hybrid IT discussions


SaaS Vertical customizations through go-to-market strategies and tailored portfolios are top of mind for SaaS vendor expansion.

PaaS Simplified application building, increasing capabilities such as analytics, and pricing and deployment options will drive PaaS vendor usage.

IaaS Driven by price competition and scale, many vendors are lessening focus on the public cloud IaaS market to focus on hybrid IT and leveraging partnerships with vendors like AWS, Microsoft and Google.

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Public Cloud SaaS Revenue Growth vs. Corporate Revenue Growth

Revenue is beginning to impact traditional software vendors SAP and Microsoft positively as they transition to subscription models


Apps vendors expanding SaaS business models

and portfolios

Public cloud pure play

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SaaS vendors target industries through tailored go-to-market strategies and portfolios to sustain growth in a maturing public cloud market Public Cloud SaaS: Vertical Focus

Horizontal, LOB-focused apps

expanding vertically:

Enterprise, IT-focused business suites with deep

vertical expertise:

Salesforce.com

Google

Box

Microsoft

Workday

SAP

Oracle

Enterprise, IT-focused niche applications and deep vertical expertise:

IBM

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Early-to-market PaaS vendors outpace the market, but we expect IBM, HP and SAP to jump from the pack in 2015 based on 2014 investments Public Cloud PaaS % Revenue Growth vs. Public Cloud PaaS $ Revenue Growth

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Development ecosystems are providing a more scalable, profitable and persistent route to market for cloud vendors Public Cloud PaaS: Attract Developers

Customer

Salesforce.com AWS IBM

• Controllable • Measurable • Transactional

What are the benefits?

Partner

Partner

Partner

Development Ecosystems

Customer

Customer

Customer

~NEW~

~NEW~

• Scalable • Profitable • Persistent • Customizable

Direct Sales

Google Microsoft

Pivotal SAP HANA

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Microsoft is catering to legacy Microsoft developers with Azure and leaving opportunities for industry apps, thus increasing enterprise appeal Public Cloud PaaS: Microsoft Azure

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TBR tracks 29 public cloud IaaS businesses; AWS dominated the market this quarter with $1B, but most companies generated under $50M


Public Cloud IaaS % Revenue Growth vs. Public Cloud IaaS $ Revenue Growth

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AWS remains the leader in public cloud IaaS, but will begin to face challenges as vendors leverage public cloud as a means to hybrid IT


Public Cloud IaaS % Revenue Growth vs. Public Cloud IaaS $ Revenue Growth

AWS, Google, Microsoft and IBM remain focused on public cloud IaaS

Vendors moving away from public cloud IaaS:

HP Dell Verizon Rackspace

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Questions?

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Cloud Business Quarterly Research Highlights and Outlook: Webinar Contact Information

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research

Jillian Mirandi

Senior Analyst, Cloud


Twitter: @JillianNotes

Telephone: 603.758.1854

Allan Krans

Practice Manager, Cloud


Twitter: @AllanKrans

Telephone: 603.758.1819


https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

https://www.linkedin.com/company/technology-business-research







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TBR Cloud Program Overview

The TBR Cloud Program consists of specific vendor, comparative vendor and customer analysis supported by modeling and primary research

Reports analyzing vendors’ cloud businesses cover all relevant segments and track performance across cloud-driven metrics including operating expenses, operating profit, headcount breakouts and geographic breakouts.

TBR’s benchmark reports provide analysis through qualitative and metric-based comparisons of key vendors in a market segment. Cloud data models are included with the benchmarks, this TBR research and analysis is built from the ground up based on 15+ years of vendor centric financial models.

TBR cloud customer reports provide primary research-based insights to purchasing behavior, vendor adoption, satisfaction and demand across multiple cloud offerings and professional services segments.

Cloud Vendor Reports

Cloud Benchmarks

Cloud Customer Research Tracks

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TBR Cloud Program Overview

Continuous portfolio expansion elevates TBR’s and clients’ knowledge about what ‘cloud’ really means to vendors and customers

Accenture Fujitsu Atos Rackspace Cognizant TCS CSC Verizon Dell

Capgemini Infosys Wipro Deloitte Microsoft Google Oracle HP SAP IBM ServiceNow

AWS Salesforce.com Workday

Public Cloud Benchmark

Managed Private & Professional Services Cloud Benchmark

Cloud Components Benchmark

Carrier Cloud Benchmark

Hybrid Cloud Customer Research

Private Cloud Customer Research

Cloud Prof. Services Customer Research

Topical Cloud Reports: 2014 reports include Orchestration, and LOB vs. IT

Cloud Vendor Reports

Cloud Benchmarks

Cloud Customer Research Tracks

Quarterly 1Q / 3Q 2Q / 4Q

Quarterly 2Q / 4Q 1Q / 3Q

Semiannually Semiannually Semiannually

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Syndicated Research Coverage Cloud Vendor Reports (Cloud Business Quarterly)

Benchmarks (Benchmark XLS data is also available)

• Accenture Cloud* • Amazon Web Services* • Atos Cloud* • Capgemini Cloud* • Cognizant Cloud* • CSC Cloud* • Dell Cloud* • Deloitte Cloud* • Fujitsu Cloud* • Google Cloud* • HP Cloud* • IBM Cloud* • Infosys Cloud* • Microsoft Cloud* • Oracle Cloud* • Rackspace* • Salesforce.com • SAP Cloud* • ServiceNow* • TCS Cloud* • Verizon Cloud* • Wipro Cloud* • Workday

Public Cloud Benchmark The public cloud program compares and analyzes the strategies, results and drivers of 50 key vendors in the public cloud segment across Software as a Service, Platform as a Service and Infrastructure as a Service. Managed Private & Professional Services Cloud Benchmark* The managed private cloud and professional services program compares and analyzes the strategies, results and drivers of 29 key vendors in the managed private cloud and professional services market across Business Process as a Service, Software as a Service, Platform as a Service, Infrastructure as a Service, cloud consulting, cloud SI and cloud ADM. Cloud Components Benchmark* The cloud components program compares and analyzes the strategies, results and drivers of 12 key vendors that sell the building blocks of software and hardware used to construct public and private clouds. Note: There are also three semiannual cloud adoption studies and cloud topic reports (Cloud Security is available now and Cloud Orchestration is upcoming).

TBR Cloud Practice Syndicated Coverage

*Semiannual Report

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