Amy Konary Program Vice President SaaS, Business Models and Mobile Enterprise Apps IDC

Transcription

1 Amy Konary Program Vice President SaaS, Business Models and Mobile Enterprise Apps IDC 1

2 Digital Business Model Innovation and Monetization Amy Konary Program Vice President SaaS/Cloud/Software Business Models

3 Agenda Market Orientation Vendor Impact Guidance IDC Visit us at IDC.com and follow us on 3

4 Buyer Perspective IDC Visit us at IDC.com and follow us on 4

5 Transformation Drivers Include Improve worker productivity Improve resource utilization Reduce total IT budget Simplify/standardize IT Improve time to market Expand into new markets IDC Visit us at IDC.com and follow us on 5

6 Cloud Provides the Opportunity to Drive New Business Value Business demand drivers: Business Demand for IT Services IT Budget Cost Structure Search for New Revenue Demand for shorter cycle times New Normal Big Data Business looks outside of IT structure for answers Private Cloud Public Cloud Social Mobility Business Demand for IT Services Opportunity for Transformation IT Service Supply Unsustainable Gap IT Budget Complexity Slows Productivit y IT Service Supply 6

7 IT Budget Distribution Provider Site: 43.4% Large shift in IT spend to provider site clouds over next 2 years Traditional outsourced 21.4% Today External Cloud: 22.0% Public Cloud Ondemand HPC 5.5% 10.5% Dedicated HPC 6.1% Traditional outsourced 16.3% In 24 Months External Cloud: 32.1% (45.8% growth) Public Cloud 13.6% On-demand HPC 8.9% Dedicated HPC 9.6% Provider Site: 48.4% (11.4% growth) Public cloud, including on-demand hosted private cloud IDC CloudView Private cloud, including enterprise private cloud and dedicated hosted private cloud Enterprise Private Cloud: 7.8 % Enterprise Private Cloud: 10.9% Traditional, noncloud IT spending Customer Site: 56.6% Traditional in-house deployment 48.8% Traditional in-house deployment 40.7% Customer Site: 51.6% s at IDC.com Noncloud: 70.2% Cloud: 29.8% (Public + Private) Noncloud: 57.0% Cloud: 43.0% (44.2% growth) Source: IDC CloudView, January, 2016, n=11350 worldwide respondents; weighted by GDP and company size 7

8 Worldwide Cloud Market SaaS Adoption Heat Map (WW, FY2015) Secondary Market Functional Markets Leading Vendors by Revenue Collaborative 19% File Sync and 59% Share Enterprise Social Networks Conferencing Team Collaborative 1. Microsoft 2. Google 3. Cisco Content 4% 5% Content Management Authoring & Publishing Cognitive, Analytics and Discovery Enterprise Portals ediscovery 1. Microsoft 2. Google 3. Adobe CRM 31% 46% Sales Marketing Customer Service Contact Center 1. Salesforce.com 2. Oracle 3. Adobe xx% xx% % of Total Cloud % Penetration of Cloud into Secondary Market Engineering 1% CAD/CAE/CAM 2% Collaborative Product Data Management 1. Dassault 2. PTC 3. Autodesk At least 50% moved to Cloud ERM 38% 31% Financial Project & Portfolio Management Financial Performance Human Capital Management Payroll Enterprise Asset Management Procurement Order Management 1. Intuit 2. SAP 3. ADP 4. Workday 5. Oracle 6. Ultimate Software At least 25% moved to Cloud Likely to reach 25% within 2 years Slower to Move O&M 6% Services Operations 6% Management Manufacturing Other Back- Office 1. athenahealth 2. Medidata 3. Cerner SCM 1% 6% Logistics Production Planning Inventory Management 1. NetSuite 2. itradenetwork 3. SupplyOn

9 Today s LOB Executives are Tech Savvy & Empowered by the Cloud Top 3 Reasons the LOB Customers are Increasing Technology Spending My functional area is becoming more tech savvy and we feel comfortable driving our own IT projects The link between technology and business results is increasing and my functional area feels a sense of urgency to implement new technology initiatives We are able to access technology more easily because of public cloud services Source: IDC CloudView, January, 2016, LOB respondents only n=3850 worldwide respondents; weighted by GDP and company size 9

10 IoT Megatrends Billion Connected things $1.46 Trillion Revenue Opportunity 100% of enterprises Will purchase external data Source: IDC IDC Visit us at IDC.com and follow us on 10

11 Vendor Impacts IDC Visit us at IDC.com and follow us on 11

12 Worldwide Software Revenue ($M) 260, , , ,000 License 180, , , , ,

13 Opportunity Disappearing for Vendors Not Positioned in Cloud USD (billions) CAGR % Cloud SW Revenue (from 22.8 vendors with >90% cloud) Cloud SW Revenue (from all vendors) 17.7 IDC CloudShare Software Growth by Delivery Model Packaged SW Revenue (from all vendors) Packaged SW Revenue (from vendors with <1% cloud) Note: Excludes top12 software ISVs by 1H 2015 revenue Source: IDC CloudShare 2015 IDC Visit us at IDC.com and follow us on 10

14 IOT Opportunity 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% $212B $395B Apps, XaaS HW, connectivity, sensors, servers, security SW/HW, IT Services, IoT platforms Source: Worldwide Internet of Things Forecast, , IDC #256397

15 The transition is not easy, but pays off SAP's Second- Quarter Results Show Company Still in Transition to Cloud - The Street, 6/16 Autodesk to cut jobs by 10 percent as it transitions to cloud - Reuters 2/16 Oracle Cloud Growth Shows Promise as Company Tops Estimates - Bloomberg 5/16 Microsoft Gets Lift From Cloud Gains WSJ, 7/16 Intuit Inc. Can't Get Everyone to Switch to QuickBooks Online Motley Fool 5/16 Huawei rallies businesses on cloud tech adoption - Today.ng, 5/16 PTC Stock Jumps After Q3 Revenue Beats Expectations - The Street 7/16 Adobe s Record Revenue Proves Successful Business Transformation Is Possible - Techcrunch 12/16 15

16 Guidance IDC Visit us at IDC.com and follow us on 16

17 Thank you Amy Konary IDC Visit us at IDC.com and follow us on 18