OpenStack Seminar Disruption, Consolidation and Growth. Woodside Capital Partners

Transcription

1 OpenStack Seminar Disruption, Consolidation and Growth Woodside Capital Partners December 2, 2014

2 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Building an OpenStack Business VII. Predictions 1

3 Evolution of Enterprise Computing Past Present Mainframe Back office Efficiency No Real Time Availability Usage / Utility Pricing Personal Computing Personal Productivity Isolation of Information Per Seat Client / Server Front Office Intelligence Network Complexity/Cost Per Seat (Client) Per Server (Data Center) Web / Internet Ubiquitous Information Access Data Management and Security Subscription and Subsidized (Ad Driven) 2

4 Cloud Adoption Today 94% of organizations are either running at least one application on IaaS or are experimenting 74% of organizations have some sort of Hybrid Cloud strategy 61% of technology expenditures are owned by lines of business NOT IT Source: Rightscale Customer Survey 3

5 Top 10 CIO Priorities 1. Value of IT to the Business 2. IT Contribution to the Business 3. Customer Satisfaction 4. Innovative New Ideas 5. Availability 6. Projects Delivered on Time 7. IT Cost Controls 8. Productivity Improvement 9. Business Cost Controls 10. Revenue Growth 4

6 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Where are the OpenStack Opportunities VII. Predictions 5

7 Cloud Software Market Worldwide SaaS and Cloud Software Source: IDC 6

8 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Building an OpenStack Business VII. Predictions 7

9 Cloud Deployment 8

10 Cloud Delivery Infrastructure as a Service Platform as a Service Software as a Service User Manages Delivered as a Service Applications Data Runtime Middleware Operating System Virtualization Servers Storage Networking User Manages Delivered as a Service Applications Data Runtime Middleware Operating System Virtualization Servers Storage Networking Delivered as a Service Applications Data Runtime Middleware Operating System Virtualization Servers Storage Networking 9

11 IaaS Magic Quadrant Source: Gartner (May 2014) 10

12 Amazon AWS Around $8 billion in 2014 revenues growing 40% Broadest customer base and use cases 5x capacity of next 14 IaaS providers Broadest feature set critical to long term relevance Seeing early enterprise adoption Price cuts on core services, holding line on unique Competition increasing from Microsoft and Google race to the bottom on commodity services 11

13 Microsoft Azure $4.4 billion in revenue Slashing prices on IaaS to compete with Amazon and Google but Nadella has changed Azure vision to better fit Microsoft mission Azure for Infrastructure Office 365 for Productivity Dynamics for Business Process Life Cycle Services (LCS) for DevOps Windows 10, Big Data coming 12

14 Google Compute Google Compute Engine for core IaaS Google App Engine offers some PaaS capabilities Leading the market in price cuts Enterprise customers tell us they are regularly bidding GCE against AWS EC2 for smaller test and dev projects Still very early, lagging behind both Microsoft and Amazon in enterprise trust 13

15 Other Key Players IBM Hewlett Packard RedHat Oracle Verizon VMware 14

16 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Building an OpenStack Business VII. Predictions 15

17 OpenStack is a cloud operating system that controls large pools of compute, storage and networking resources throughout a datacenter, all managed through a dashboard that gives administrators control while empowering users to provision resources through a web interface. 16

18 OpenStack Market Opportunity The market for OpenStack solutions is set to quadruple to $3.3 billion by 2018 Source: 451Research 17

19 OpenStack IaaS Simplified 18

20 OpenStack Sales Cycle Success Model Evangelize Find Use Case Customize and Deploy Develop internal champions Work with service providers to understand strengths Web 2.0 inspired Link OpenStack to the apps via the API Deploy in the cloud on premise with a services component

21 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Building an OpenStack Business VII. Predictions 20

22 Open Source is THE Advantage No vendor lock in 100s of thousands of contributors Accelerated release cycles Pay only for value add Pace of adoption Proven model with Linux 21

23 Linux Growth Case Study Red Hat Revenue ($M) and Key Milestones 22

24 Broadest Ecosystem Distributions and Appliances Public Clouds Private Cloud as a Service Integrators Connectors/Drivers 23

25 Focus on Applications Tenant API ties OpenStack to the application Allows application to control resources Particularly useful in storage Shields developers from underlying hardware complexity Allows developers to manage resources 24

26 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Building an OpenStack Business VII. Predictions 25

27 Critical Gap in Dev Ops Critical to long term success of OpenStack Speeding time to market Reduce need for high cost services to build apps Building a bridge between operations and development Enterprises need to adapt application development practices to meet end user expectations Focus on continuous development, no release cycles Automation is key, open source tools are emerging Key is to automate infrastructure so developers can focus on functionality Development, test, QA, and maintenance 26

28 Big Data Applications UNDER THE HOOD One click provisioning Elasticity Multi tenancy 27

29 AGENDA I. Evolution of Enterprise IT II. III. IV. Cloud Market Opportunity Cloud Market Landscape OpenStack Today V. How OpenStack Wins VI. Where are the OpenStack Opportunities VII. Predictions 28

30 OpenStack will Transform Vendors Company Recent Growth Amazon AWS 40% Salesforce.com 36% Microsoft 25% Google 20% VMware 17% EMC 9% SAP 5% Oracle 3% Hewlett Packard 1% Cisco 0% 29

31 The New World Order Today Tomorrow Platform Hardware Software Architecture Data Center Distributed Business Model Revenue Margins Advantage Customer Lock in Broad Industry Support Source Single Vendor Open Source Reliance Dependence Independence Solution Technology Business Problem 30

32 Why OpenStack Wins the Battle OpenStack becomes the ultimate Cloud OS connecting systems across public, private and community clouds Provides transparency to users and developers as to where and how resources are allocated Open, Open, Open Speed to new features No new vendor lock ins Focus on business value not infrastructure Within a decade there will no longer be a distinction between clouds just a single pool of resources OpenStack will be the glue that ties it all together 31

33 Selected Cloud Transactions Source: CapitalIQ, 451Research and Woodside Capital Partners estimates as of December 1,

34 WCP Contact Info WCP Research Marshall Senk Software Analyst and Managing Director Sam Skinner COO and Managing Director WCP Banking Tricia Salinero Partner and Managing Director Monica Mariani Vice President

35 WCP Office Info Silicon Valley and UK Presence Silicon Valley Offices 1530 Page Mill Road, Suite 200 Palo Alto, California Tel: UK Offices Riverbank House 2 Swan Lane London EC4R 3TT, UK Tel: +44 (0)

36 Q&A Q&A Thank You 35