Salesforce.com IPO, 2004 Showed that Software as a Service (SaaS) works Launch of Amazon Web Services, 2006 Introduced public cloud platforms Release of Apple iPhone, 2007 The birth of mobile platforms

This isn’t the post- PC era, but it is the PC+ era Cloud platforms are the new foundation for competitive advantage On-premises packaged applications are becoming SaaS applications

Compute Run new applications Might run existing packaged and custom applications Data Store and access information Analyze information Everything else Identity, machine learning, VPNs, media services, integration, … This category keeps on growing

Platform as a Service (PaaS) VM Application Infrastructure as a Service (IaaS) VM VM Images VM Create and use virtual machines Provide applications

IaaSPaaS Support disaster recovery Yes No Yes Run on-premises packaged or custom applications No Run a standard DBMS, e.g., SQL Server Yes No YesMaybe Run existing websites Provide VMs for dev/test Yes No Support new cloud-native apps Yes Many think PaaS is much better for this

Blobs RelationalNoSQL Can also run a relational or NoSQL DBMS in IaaS VMs Also called object storage

Identity SaaS and On-Premises Applications Directory Service Directory Service Lots More... Machine Learning Machine Learning Algorithms Data Model Application

Compute IaaS PaaS Others Identity Machine Learning Data RelationalNoSQL Blobs Microsoft Azure Amazon Web Services OpenStack Google Cloud Platform Salesforce.com Force.com

What? Microsoft and Google don’t yet offer IaaS AWS is out in front

Microsoft began offering IaaS two months earlier AWS is further out in front Google doesn’t yet offer IaaS The most visible OpenStack supporters IBM is in real trouble

But it’s a two- horse race Look where the other big enterprise vendors are Google has finally entered the market AWS is still in front

Microsoft Azure Amazon Web Services OpenStack Compute Data Others Google Cloud Platform Virtual Machines Web Sites, Cloud Services Blobs SQL Database DocumentDB, Tables Azure Active Directory Azure ML IaaS PaaSRelationalNoSQL Identity Machine Learning Blobs Salesforce.com Force.com

ENTERPRISE MICROSOFT AZURE 2 2 Login IT Admin Windows Server Active Directory User 1 1 Configure link Azure Active Directory Azure Active Directory OTHER ENVIRONMENT SaaS Application 3 3 Access on-premises and SaaS applications On-Premises Application Including Google Apps, Salesforce, and lots more

Chosen Model Deploy chosen model Candidate Model Apply learning algorithm to data Prepared Data Apply pre- processing to data Raw Data Preprocessing Modules Machine Learning Algorithms Data Preprocessing Modules Applications ML Studio

Microsoft was slow in offering IaaS Although it’s recovering quickly from that delay Microsoft has strong customer relationships IT leaders commonly place a high value on these Microsoft is already in most accounts Microsoft emphasizes hybrid clouds Given Microsoft’s large on- premises installed base, this isn’t surprising

Microsoft Azure Amazon Web Services OpenStack Google Cloud Platform Elastic Compute Cloud (EC2) Virtual Machines Elastic Beanstalk Web Sites, Cloud Services Simple Storage Service (S3) Blobs Relational Database Service (RDS) SQL Database DynamoDB DocumentDB, Tables Azure Active Directory Amazon ML Azure ML IaaS PaaSRelationalNoSQL Identity Blobs Salesforce.com Force.com Compute Data Others Machine Learning

AWS is a startup that got it right immediately Their first offerings were IaaS and blobs These are still the two most widely used cloud platform technologies Amazon is viewed as a leader in this market They were the first mover in public cloud platforms AWS is focused on the public cloud Amazon has called private cloud “false cloud”

Prediction API Microsoft Azure Amazon Web Services OpenStack Google Cloud Platform Elastic Compute Cloud (EC2) Virtual Machines Compute Engine Elastic Beanstalk Web Sites, Cloud Services App Engine Simple Storage Service (S3) Blobs Cloud Storage Relational Database Service (RDS) SQL Database Cloud SQL DynamoDB Cloud Datastore Azure Active Directory Amazon ML Azure ML IaaS PaaSRelationalNoSQL Identity Blobs Salesforce.com Force.com Compute Data Others Machine Learning DocumentDB, Tables

Google began with App Engine Like Microsoft, Google initially bet that the market wanted PaaS Their IaaS offering is relatively new Google appears serious about cloud platforms (finally) They’ve announced support for Windows Server in Compute Engine Initially for Windows Server 2008 R2; now includes Windows Server 2012 R2 Expect them to be a price leader They’ve said that cloud platform prices should follow Moore’s Law They’ve innovated with pricing, e.g., reservation-like pricing once consumption hits a certain amount

Prediction API Microsoft Azure Amazon Web Services OpenStack Google Cloud Platform Elastic Compute Cloud (EC2) Virtual Machines Compute Compute Engine Elastic Beanstalk Web Sites, Cloud Services App Engine Simple Storage Service (S3) Blobs Object Storage Cloud Storage Relational Database Service (RDS) SQL Database Database Cloud SQL DynamoDB Cloud Datastore Azure Active Directory Amazon ML Azure ML IaaS PaaSRelationalNoSQL Identity Blobs Salesforce.com Force.com Compute Data Others Machine Learning DocumentDB, Tables

It’s an open source project, but not really standard Users love standards, so vendors claim to follow them But they also add proprietary extensions Some firms offer public IaaS based on OpenStack OpenStack gets more press attention than it deserves At most, one or two vendors will dominate OpenStack And it’s unclear who they’ll be -HP’s Helion public cloud hasn’t gotten much traction -Rackspace has left the pure IaaS market

Cloud Software IaaS Blobs VMs IaaS: Start VM, Stop VM, … Blobs: Get blob, put blob, … Tools and Applications

Prediction API Microsoft Azure Amazon Web Services OpenStack Google Cloud Platform Elastic Compute Cloud (EC2) Virtual Machines Compute Compute Engine Elastic Beanstalk Web Sites, Cloud Services App Engine Simple Storage Service (S3) Blobs Object Storage Cloud Storage Relational Database Service (RDS) SQL Database Database Cloud SQL DynamoDB Cloud Datastore Azure Active Directory Amazon ML Azure ML IaaS PaaSRelationalNoSQL Identity Blobs Salesforce.com Force.com Force.com App Logic Force.com Database Salesforce Identity Compute Data Others Machine Learning DocumentDB, Tables

Force.com is typically sold as an adjunct to Salesforce CRM It’s PaaS, so it’s intended for new custom apps Since your customer data is in the Salesforce cloud, why not build your apps there, too? Force.com is aimed at enterprise developers Some apps can be built solely with point-and-click tools Developers can also use Apex, a Salesforce language Customer lock-in to Force.com is total The platform, language, and tools are all proprietary There’s no lock-in like cloud lock-in Dynamics CRM includes xRM, a similar PaaS platform

But it’s a two- horse race Released before Azure, yet still a challenger In front because this MQ is focused on enterprise applications The rest of the PaaS market is a crowded mess

IBM began with various half- hearted cloud initiatives None seemed serious None got much traction with customers IBM bought SoftLayer for $2 billion in mid-2013 SoftLayer was half hoster, half cloud provider IBM highlights SoftLayer’s ability to provide both VMs and physical servers IBM announced a plan to spend $1.2 billion on cloud But it’s spread across many datacenters Microsoft spends this to build a single datacenter “I think we’ve entered cloud at a perfect time.” - Michael Rhodin, IBM Senior VP, Spring 2014 IBM’s overall revenue has been steadily declining

Initially encouraged hosters to offer IaaS with vCloud Hosters didn’t much like this Uptake was limited Currently offer vCloud Air themselves It provides IaaS based on vSphere in VMware datacenters vCloud Air isn’t a complete public cloud platform It’s mostly VMs Customers can also buy some Google Cloud Platform services through vCloud Air, e.g., blobs Formerly called vCloud Hybrid Service

So is Azure Google is a ways behind AWS is in the Leaders Quadrant The traditional enterprise vendors

IaaS PaaS Storage Microsoft

IBM VMware HP Microsoft Amazon Google Salesforce.com

SaaS Applications Custom Applications Public Cloud Platform IaaS... PaaS Blobs Relational NoSQL Identity ML Clients PCs/Laptops Tablets Phones Collaboration CRM... Productivity

Windows 8 Windows Phone 8... Virtual Machines Web Sites, Cloud Services Blobs Tables, DocumentDB Azure AD Machine Learning SQL Database Office Online Exchange Online Dynamics CRM... SharePoint Online SaaS Applications Custom Applications Microsoft Azure Clients

PCs/Laptops Kindle Fire Fire Phone... EC2 Elastic Beanstalk S3 DynamoDB Identity Machine Learning RDS Collaboration Workmail CRM... Productivity SaaS Applications Custom Applications Amazon Web Services Clients

... Compute Engine App Engine Cloud Storage Cloud Datastore Prediction API Cloud SQL Identity SaaS Applications Custom Applications Google Cloud Platform Clients Google Docs Gmail CRM... Collaboration Chrome Android

PCs/Laptops Tablets Phones PaaS NoSQL Identity ML Compute Object Storage... Database SaaS Applications Custom Applications OpenStack Clients Collaboration CRM... Productivity

App Logic Database Identity... Relational ML IaaS Blobs SaaS Applications Custom Applications Force.com Clients Collaboration CRM... Productivity PCs/Laptops Tablets Phones

... Relational Identity ML Virtual Servers Bluemix Object Storage Cloudant SaaS Applications Custom Applications SoftLayer Clients Collaboration CRM... Productivity PCs/Laptops Tablets Phones IBM is partnering with Apple here

... PaaS Blobs Relational NoSQL Identity ML IaaS SaaS Applications Custom Applications vCloud Air Clients Collaboration CRM... Productivity PCs/Laptops Tablets Phones

David Chappell is Principal of Chappell & Associates ( in San Francisco, California. Through his speaking, writing, and consulting, he helps people around the world understand, use, and make better decisions about new technology. David has been the keynote speaker for more than a hundred events and conferences on five continents, and his seminars have been attended by tens of thousands of IT leaders, architects, and developers in fifty countries. His books have been published in a dozen languages and used regularly in courses at MIT, ETH Zurich, and other universities. In his consulting practice, he has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, and educate their customers and staff.

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