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Back in 2003, Emergence Capital theorized that enterprise software would move to the cloud. The first ten years were flush with companies in the horizontal market: Salesforce, Workday and Intacct all changed the way organizations do business. Now, ten years after Emergence started, we are seeing an even bigger opportunity: vertical cloud solutions. With Veeva, Guidewire and Opower, we are in the midst of an industry cloud revolution. Don't believe us? Take a look here at how industry cloud is both similar and different than prior technology shifts, and check out our take on the hallmarks of an industry cloud company as well as the current industry cloud landscape.
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CLOUD
REVOLUTION
I N D U S T R Y C L O U D R I S I N G
E m e r g e n c e C a p i t a l P a r t n e r s
I N D U S T R Y C L O U D F O R U M 2 0 1 4
INDUSTRY CLOUD
RISING
G O R D O N R I T T E R
E M E R G E N C E C A P I T A L P A R T N E R S
@ G O R D O N R I T T E R
@ E M E R G E N C E C A P
# I N D U S T R Y C L O U D
Enterprise
software
moves…
…to the
cloud
Emergence Capital Thesis in 2003
~40 Investments
Series A & B
$40B Market Cap
Leading early stage
Business Cloud VC
2014
T H E F I R S T 1 0 Y E A R S .
HORIZONTAL MARKETS
CRM
ACCOUNTING
HR
TODAYNew opportunities
emerging
Vertical
Solutions
Ind
ustry C
lou
d
Next 1
0 Years
Life
Sciences
Insurance
Energy
THIS
HAPPENED
BEFORE
Mainframes
1970s
Client Server
1990s
Cloud Software
TODAY
WHAT IS
DIFFERENT
THIS TIME?
In the past, vertical software has been a kludgy extention of the horizontal code.
Customization was usually done by systems integrators like Accenture whose business models
were based on one-off projects for their largest customers.
Every year, a new set of consultants would build custom code extensions.
We all know what happens when you use spaghetti code with bad fittings, everything leaks.
Customizations were expensive to maintain and prevented the true value of vertical software to
accrue to customers. One set of custom code couldn’t talk to another custom project.
The promise of aligning the software and data insights in a particular industry was never realized.
,
The Industry Cloud is different.
It is powerful and coordinated.
INT
EG
RA
TE
D
TR
UE
SO
FT
WA
RE
INS
IGH
TS
Industry Cloud allows for True, Multi-Tenant
Software…across multiple platforms…with little
customization required.
5 HALLMARKSO F A N I N D U S T R Y C L O U D C O M P A N Y
TALENT
TRIFECTA
BUSINESS
LEADERSHIP
TECHNICAL
EXPERTISE
DOMAIN
EXPERTISE
DEEP
DATA
REFERRAL REVENUES
REFERRAL
REVENUES
LAYER CAKE
PRODUCT STRATEGY
MASSIVE
MARKET SHARE
Horizontal Cloud majors in
sales people and minors in
product lines.
Industry Cloud majors in
product lines and minors in
sales people.
OTHER
E M E R G E N C E C A P I T A L
INDUSTRY CLOUD INVESTMENTS TO DATE
HEALTHCARE / LIFE SCIENCE
EDUCATION
INDUSTRY CLOUDLANDSCAPE
ENERGYHEALTHCARE EDUCATION REAL ESTATE LEGAL
GOVERNMENT
FOOD & BEV
PUBLIC
PUBLIC
FINTECH
PUBLIC
MANUFACTURING
NON-PROFIT
PUBLIC
OTHERS
PUBLIC
TRANSPORTATION
PUBLIC
RETAIL
PUBLICPUBLIC
PUBLIC
V2.0 / Q2 2014
HOW WILL YOU LEAD THE
REVOLUTION?
=
I N D U S T R Y C L O U D R I S I N G