Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Article

Cloud Market Crosses the Chasm: Wins, Sign Posts, and Deals

You need to be able to move applications in and out and around all things Cloud

Nothing says fun like a hurricane party, a bottle of "Jack," and a little game theory debate as lights begin to flicker across New England. And speaking of "Jack," what can possibly explain the handlers at HP letting Leo Apotheker get off the reservation long enough to proclaim the obvious market shift brought on by the iPad?

Note to Leo: Never tell the world your business problems right before you put up the "for sale" sign. Never.

Note to Larry: Please put Leo, the board and shareholders out of their misery.  Can you imagine?

Ahhhhh.  I feel better.  Now .... turning to the chasm-crossing cloud market ...  I am fascinated by how the maturing of this market changes the competitive landscape as players reposition where they'll compete and investors ask, "Where is the smart money?"

So, with a nod to Geoffrey Moore's iconic taxonomy, here's my cut at a bare-bones outline of Cloud computing's rise from evolution to revolution.

2006/07 - Innovators:  Launch initial offering

Key milestone: Packaging server virtualization into a solution called "Cloud"

Amazon announced a limited public beta of EC2 on August 25, 2006, just six months after the launch of Twitter.  This move is a Cloud Computing equivalent of shipping the iPad. New idea has been funded, team built, 1.0 product is "good enough."  The race has begun and hardly anyone has noticed it yet.

2008 - Innovators: Get proof and "traction"

Key milestone: Amazon (AWS) does $100M in revenue

Zero to $100M in 2 years is proof enough. Early adopters -- technology enthusiasts -- flock to Amazon AWS and would-be competitors hastily plot their entry into this new market. The debate begins:  what is cloud computing and what are posers (a.k.a. "cloudwashing").  These questions consume the blogosphere and keep early twitter users off the streets.

2009 - Early adopters Part I:  Cloud breakthrough defined, validated, and gaining a foothold

Key milestone: Gartner issues their 1st cloud computing vendor list

Cloud computing is recognized as a generational epoch on par with Mainframe, Minis, PC and Web.  Amazon AWS does $250M in revenue. Traditional IT vendors stop asking "What is it?" and put on their acquisitional hats to answer, "How do I get into the game?"

2010 - Early adopters Part II: Cloud love fest in full swing

Key milestone:  Acquisitions, open source initiatives, and (drum roll) Microsoft is "all in"

The seriousness of the game is now completely clear to anyone who is paying attention. Game changing events (time will tell) add fuel to the cloud computing buzz:  CA acquires 3 companies in the space; HP and Dell duke it out for 3Para in a sky's-the-limit arms/price race.  In July 2010, Rackspace Hosting and NASA jointly launched a new open source cloud initiative known as OpenStack and, in March 2010, Steve Ballmer gives a speech declaring: "Microsoft, for the cloud, we're all in."  Apple released the first iPad in April 2010, selling 3 million of the devices in 80 days. Amazon AWS does $500M in revenue. The movement is clearly a juggernaut.

2011 - Early majority: The US government pushes hard to the cloud; enough said

Key milestone:  Acquisitions move up the stack

The year starts out with many transactions around owning a cloud ("Look ma, I'm just like Amazon too, no hands ...").  Terramark, Savvis, and Navisite all get gobbled up as PC era's transition to Cloud becomes a done deal. iPad will sell close to 50 million units this year. Amazon AWS is on track to do $1,000M in revenue.

Then there is the matter of both Cloud.com and CloudSwitch going for something like 100 - 150 times trailing twelve month revenue.  (If Apple Cloud were to get that kind of valuation it would be worth 15 trillion dollars -- enough to pay off the entire US debt.)  These 2 deals are outliers that tell us something important about what is now required to win.  They signal a new game with a higher ante.

Look at the CloudSwitch Verizon deal, in light of Verizon's recent $2B purchase of Terremark. Terremark is one of the most advanced Clouds available and Verizon just spent another $140M to protect that initial investment -- and provide a capability that other clouds cannot.

Lessons learned: It is no longer sufficient to have an advanced Cloud. You need something more in order to compete. You need to be able to move applications in and out and around all things Cloud.

2012 and beyond: We all agree that Cloud is the next generational computing epoch. So what will the market do? It has already moved from the Wild West to early settlement times. Companies are settling down for the long haul, building stonewalls to stake their claims. As the market shifts, leaders will look to add capabilities that broaden and differentiate their solutions (CloudSwitch/Verizon redux).

I expect the next 12 months to show a lot of Cloud related action in management tools, gateways/connectivity, and Platform as a Service (PaaS). And, unless the Mayan calendar turns out to be right, Cloud is likely to dominate the next decade, throwing some innovative curves along the way.

Note:  Now seems like a good time for the next installment of GregO's cloud valuation exit/acquisition score-card.

Time

Company

Valuation*

Q1 2010

3Tera /CA

$90M   @ 30  EV/R(ttm)

Q2 2010

3Para/HP

$2.4B   @ 12  EV/R(ttm)

Q1 2011

Facebook/Private IPO (GS)

$50 B   @ 25  EV/R(ttm)

Q1 2011

Terremark/Verizon

$1.9B   @ 5.4 EV/R(ttm)

Q2 2011

Navisite

$230M @ 2.1 EV/R(ttm)

Q2 2011

Savvis

$2.9B   @3.0 EV/R(ttm)

Q3 2011

Cloud.com

$218M   @100 EV/R(ttm)

Q3 2011

CloudSwitch

$140M   @125 EV/R(ttm)

*Valuation - includes debt

EV - Enterprise value or market cap + cash + debit

R(ttm) - Revenue for trailing twelve months

I am always looking for a way to communicate better and cut to the heart of any discussion. So, if you have thoughts on this subject drop me a line at GregO {@} Appzero {dot} com or tweet me at http://twitter.com/gregoryjoconnor.

Register to attend: ".Net apps scale to the cloud and back without change" A lot of applications have been built since Bill Gates first predicted .NET would have as significant an effect on the computing world as the introduction of Windows.  .NET addressed the then-growing need to provide seamless interoperability of applications in a Web-browser world.  Mission accomplished; new mission at hand - Join AppZero for a technical drill down session that shows how to move complex, multi-tiered .NET applications to and from physical and virtual servers in data center and amongst clouds without any re-engineering. Register now>>

More Stories By Greg O'Connor

Greg O'Connor is President & CEO of AppZero. Pioneering the Virtual Application Appliance approach to simplifying application-lifecycle management, he is responsible for translating Appzero's vision into strategic business objectives and financial results.

O'Connor has over 25 years of management and technical experience in the computer industry. He was founder and president of Sonic Software, acquired in 2005 by Progress Software (PRGS). There he grew the company from concept to over $40 million in revenue.

At Sonic, he evangelized and created the Enterprise Service Bus (ESB) product category, which is generally accepted today as the foundation for Service Oriented Architecture (SOA). Follow him on Twitter @gregoryjoconnor.

@ThingsExpo Stories
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...