Original Post By Michael Skok
We don’t often see opportunities as clearly as this. Cloud computing is literally reinventing what we know as the computer industry and there’s a $220 billion TAM to be addressed by 2020. I’ve written in the past about Open Source eating the software world. Well the corollary is that Cloud is growing the software industry as Everything becomes available as a cloud Service (EaaSe). In fact, according to industry analysts, this opportunity has nearly doubled in size in the last year and we’ve seen that in our own portfolio, which has more than doubled in value to over $2bn+ as of today. And it’s clear to us that it’s still early enough and there are enough drivers and inhibitors that present real opportunity to invest, so long as you read carefully between the clouds.
So as an entrepreneur, where might you invest? To find out, we are now in the third year of running what has now become the industry’s broadest independent survey with 57 vendors, ranging from established players like Amazon, Citrix and Microsoft, to challengers like Rackspace, RedHat and CA. Not to mention important growth players like Acquia, CloudBees, Couchbase, Demandware, Eucalyptus and dozens of others listed below.
So what’s the net on this year’s findings? Three things stand out:
1 – Everyone is looking for competitive advantage from Agility & Scalability, but Business is driving Cloud, by adopting Software as a Service (SaaS) and productivity applications. They are outpacing IT, though IT is investing heavily in the rapidly blending areas of Infrastructure and Platform as a Service (IPaaS) to catch up.
2 – Hybrid cloud is spelled out as the desired future state, but there are still significant challenges (and therefore opportunities) to realizing broad adoption.
3 – As Everything becomes available as a a cloud Service (EaaSe), future value will come from Cloud Formed companies that are simply ABC – Amazing Because of Cloud.
As this is a survey about the future of cloud computing, we also have taken time to talk to dozens of vendors, analysts, bankers and most importantly CIOs and users about how to form our take on opportunities arising in business and technology such as:
- How companies will use open APIs to create new and disruptive business processes and businesses models, ushering in an era of “out-servicing” (outsourcing everything but their core competencies)
- How EaaSe will cause the era of Bring Your Own Device (BYOD) to move to BYOC (Bring Your Own Cloud Services) and we will enter an era of “boundary-less” computing
- As part of the above, we will add a new cloud to last year’s thesis on Cloud Formations and share why it rains Big Data.
If there is interest, I will cover each of these in the coming posts on LinkedIn, but if you can’t wait to read about them, the full results of the survey are immediately available here and on SlideShare – just look on the top presentations of the day today or link here. And you can read the following pre-release interview from the Wall Street Journal.
In the meantime, thank you to all 57 of our collaborators listed below and the hundreds and hundreds of survey participants who took the time to thoughtfully consider their answers to our survey. And a special thanks to the various investment banks who contributed to the data, the analysis and financial reviews, but could not be quoted due to their compliance constraints.
Michael Skok is the founder of the “Future of” series of thought leadership industry platforms. He is also the creator of Startup Secrets. Held in conjunction with Harvard innovation lab, Startup Secrets is a series of workshops, frameworks and featured case examples to help entrepreneurs think through some of the key steps that could accelerate their success in starting a business. For more information, visit www.startupsecrets.com.
Submitted by Samantha Dillin