The Fall of Giants

©2013 CloudBees, Inc. All Rights Reserved

The Cloud and The Fall of Giants

{FUTURE}STACK13 @SachaLabourey


“Industrialization” – Electrification

• d

End of the 19th century

~50 years


IT – Building your Business

• Build your own “Electricity generator”

• Massive investment

Man

agem

ent

Mon

itorin

g

DC Infrastructure

Networking

ServersFirewalls

OSClustering/LB/HA

MiddlewareFrameworks

Applications

Server Market: > $40B


IT – Building the Iceberg

• But…– Little differentiation– Expertise required is very

different from core business– Critical-mass matters

Man

agem

ent

Mon

itorin

g

DC Infrastructure

Networking

ServersFirewalls

OSClustering/LB/HA


Applications


Natural Push Towards “Industrialization”• Constant push towards – specialization– simplification

• FOCUS FOCUS FOCUSvs.


Deconstructing the Iceberg

• “Outsourcing” of non-core tasks• Focus on

MARKET DIFFERENTIATION– Also known as

“You won’t win because you can install Linux faster than your competitors”

Man

agem

ent

Mon

itorin

g

DC Infrastructure

Networking

ServersFirewalls

OSClustering/LB/HA


Applications

IaaS

PaaS


Deconstructing the Iceberg

• Non-core IT tasks are consumed as a SERVICE

• You are NOT… [buying | installing | configuring | patching]

…Software

• Software is an “implementation detail”

Applications

IaaS

++ Time to Market

++ Competitive Advantage

-- CAPEX+OPEX


The GiantsM

anag

emen

t

Mon

itorin

g

Applications

OSClustering/LB/HA


An economy based on private data-center CORES


The Giants

• Standardization is not just impacting the data-center

• The client devices gets standardized as well– HTML = the new “plug”


The New Giants

88% CAGR(2009-2012)

(FY13)


The Giants Under Attack

Mobile

Social

Search

Cloud

(Big)Data

Client


Software vs. Services (i.e. 0101 != 0101)• Can’t Software companies just become

“as-a-Service” Companies?– Hard!– Different [ Engineering | Sales | DNA ]– Just think about it:

Does Google still need to support “Gmail 1.0”?– How do you compensate sales for a $50/month customer?


What does it mean for you?

• Let’s move everything to the cloud! Now!


Core IT & Fast ITWHERE ENTERPRISES ARE

Enterprise CoreData and Services

Accelerated Innovation and Discovery

WHERE THEY NEED TO GONew forms of User EngagementSaaS

SaaSSaaS

FAST ITCORE IT

Same tools, same knowledge

&

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=_28R8EkocSTXkM&tbnid=GLWUaw8VlZMXWM:&ved=0CAUQjRw&url=http://www.scoop.it/t/integrated-business-planning/p/3989422570/quipu-applications-quipu-business-plan-software-business-plan-cloud-applications&ei=_U-BUfvzFq_M0gHOn4CwAg&psig=AFQjCNF0jPqzYrRrXhSq4WSURJfn7CXReg&ust=1367515418427607






Core IT & Fast IT

• This is NOT about DC vs Public Cloud• This is NOT about Public vs. Private Cloud• This IS about – EXTENDING & LEVERAGING your existing assets– Increasing your time-to-market & reducing costs

• YOU define what is CORE vs. FAST IT


Conclusion

• The Industrialization of IT is inevitable– This will create a new generation of “Sybases”– New Giants will emerge

• As a user of technology, what’s your plan?– Ignore? Embrace?– The future of IT is now or ?

The Fall of Giants

Technology

Transcript of The Fall of Giants