10 Cloud Predictions For 2012

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Holger Kisker

2012 Is The Year The Cloud Becomes Mature

Based on the very high interest in this blog and its cloud predictions we are planning to host a Forrester Teleconference entiteled "2012 — The Year The Cloud Matures: A Deeper Dive Into 10 Cloud Predictions For The Upcoming Year" on February 28th, 1-2pm EST/6-7pm UK time, where we will highlight and go through the 10 below predictions one by one. For more details and registration please follow the link to the: teleconference web page.

1. Multicloud becomes the norm

As companies quickly adopt a variety of cloud resources, they’ll increasingly have to address working with several different cloud solutions, often from different providers. By the end of 2012, cloud customers will already be using more than 10 different cloud apps on average. Cloud orchestration will become a big topic and an opportunity for service providers.

2. The Wild West of cloud procurement is over

While 2011 still witnessed different stakeholders within a company brokering (sometimes unsanctioned by IT) a lot of cloud deals, most companies will have established their formal cloud strategy by the end 2012, including the business models between IT and lines of business for their own, private cloud resources.

3. Cloud commoditization is creeping up the stack

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SAP Acquires SuccessFactors – A Look At The Deal

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Holger Kisker

Some Reflections On The Deal For Competitors, Partners, and Customers

 The Deal

On December 3, SAP announced the acquisition of SuccessFactors, a leading vendor for human capital management (HCM) cloud solutions. SAP will pay $3.5 billion (a 52% premium over the Dec 2 closing price) out of its full battle chest and take a $1 billion loan. SuccessFactors brings about 1,500 employees, more than 3,500 customers, and about 15 million users to the table. In 2010, the company reported revenues of $206 million and a net loss of $12.5 million. A price of $3.5 billion is certainly a big premium, but the acquisition catapults SAP into the ranks of leading software-as-a-service (SaaS) solution providers — a business that will grow from $21.3 billion in 2011 to $78.4 billion by 2015 (for more information, check out our report “Sizing The Cloud”). The deal will certainly help SAP to achieve its 2015 target of $20 billion revenue and 1 billion users as it mainly targets the 500,000 employees that SAP’s already existing customers have. The deal is expected to close in Q1 next year. However, because most of the stocks are widely spread, stakeholders might hold back for now, waiting for possible counter bids from competition.

 The Organization

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Forrester's Call: Platform-As-A-Service Cloud Development Is Poised For Breakout

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Mike Gilpin

My colleague John Rymer expects platform-as-a-service (PaaS) technology to “cross the chasm” into mainstream status over the next three years (2012-2014). Today, PaaS solutions, which provide application development and deployment tools abstracted from the underlying cloud infrastructure on which they run your apps, fall into four types: 1) Pure cloud integrated development environments (IDEs); 2) Traditional IDEs that offer the option of cloud deployment; 3) IDE-neutral cloud runtimes that can run apps built by multiple types of IDEs; and 4) PaaS solutions designed for use by business developers. John sees all four of these categories aiming to cross the chasm in this timeframe but doesn’t expect all four segments to succeed in making that transition.

Why does this matter? PaaS is one of the easiest and most productive ways to take advantage of cloud economics, and the elasticity of the cloud, by providing an easily consumable elastic app platform. Today, most apps for the cloud either lack the ability to automatically scale up or down in their use of cloud resources, based on demand, or else gain that ability through complex programming to low-level APIs and frameworks. PaaS provides access to the cloud without all the drama. Only through taking full advantage of these attributes of the cloud can your business realize the full benefits the cloud theoretically provides.

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PaaS Is Entering The Next Business Maturity Phase With AT&T

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Stefan Ried

Forrester has done quite a number of reports in the last two years around platform-as-a-service (PaaS) from the long-term strategy perspective from me and from the application developer perspective from my friend John R. Rymer. During this time, we saw many different business cases around PaaS. We have predicted and quantified that the major buying power of PaaS will come out of three camps:

  1. ISVs are buying PaaS technology. This is a model that we saw with many ISVs on major platforms that managed to create a viable marketplace such as salesforce.com's AppExchange and Google's marketplace.
  2. Corporate application developers are using PaaS to deploy custom apps and add-ons around SaaS applications. They are doing this significantly faster and at a lower TCO than before.
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The Agile Commerce Platform: Commerce as a Service will transform commerce technology

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Brian Walker

We are in a highly disruptive time in the world of commerce technology. Consumers are interacting in increasingly unique ways empowered with ubiquitous Internet connectivity with fun and easy to use interfaces and tools. Their expectations are impacting how companies market, manage their supply chains, organize, and measure the business. The needs of “the platform” seem to evolve from one week to the next. What we used to call eCommerce Platforms are now not only powering webistes, but also mobile sites, mobile apps, call centers, and in-store or in-branch interfaces that both customers and staff are using – sometimes together.

But there is an even more fundamental change about to occur – the agile commerce platform. The agile commerce platform will expose commerce as a service (CaaS) to support all touchpoints with customers. A services enabled platform which will enable eBusiness & Channel Strategy leaders to drive differentiation, respond to changing customer expectations, and enable creative business relationships to support business adaptation and facilitate growth*. Commerce solution providers from across the map are building CaaS solutions.

This is the topic of my latest report.

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Oracle Finally Gets Serious About Cloud, But It's IaaS, Not PaaS

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James Staten

 

After three days of cloudwashing, cloud-in-a-box and erector set private cloud musings at Oracle OpenWorld in San Francisco this week, CEO Larry Ellison chose day four to take the wraps off a legitimate move into cloud computing. 

Oracle Public Cloud is the unification of the company's long-struggling software-as-a-service (SaaS) portfolio with its Fusion applications transformation, all atop Oracle VM and Sun hardware. While Ellison spent much of his keynote taking pot shots at his former sales executive and now SaaS nemesis, Salesforce CEO Mark Benioff, the actual solution being delivered is more of a direct competitor to Amazon Web Services than Force.com. The strongest evidence is in Oracle's stance on multitenancy. Ellison adamantly shunned a tenancy model built on shared data stores and application models, which are key to the profitability of Salesforce.com (and most true SaaS and PaaS solutions), stating that security comes only through application and database isolation and tenancy through the hypervisor. Oracle will no doubt use its own Xen-based hypervisor, OracleVM rather than the enterprise standard VMware vSphere, but converting images between these platforms is quickly proving trivial.

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The Empire Strikes Back — But Who’s The Target?

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Stefan Ried

Source: Philips http://news6.designinterviews.com/tumblr_kzdg88og1l1qzel9oo1_500.jpg

It was only about a year ago when Larry Ellison was confusing the OpenWorld audience with the “cloud in a box” approach, and only a very few CIOs managed to turn a large Oracle landscape into a real private cloud based on an opex model to their business units. But a lot has changed since last year.

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May Force.com Not Be With You

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Mike Gualtieri

Lack Of Infrastructure Portability Is A Showstopper For Me

Salesforce.com bills Force.com as "The leading cloud platform for business apps." It is definitely not for me, though. The showstopper: infrastructure portability. If I develop an application using the Apex programming language, I can only run in the Force.com "cloud" infrastructure.

Don't Lock Me In

Q: What is worse than being locked-in to a particular operating system?

A: Being locked-in to hardware!

In The Era Of Cloud Computing, Infrastructure Portability (IP) Is A Key Requirement For Application Developers

Unless there is a compelling reason to justify hardware lock-in, make sure you choose a cloud development platform that offers infrastructure portability; otherwise, your app will be like a one-cable-television-company town.

Bottom line: Your intellectual property (IP) should have infrastructure portability (IP).

Cloud Bursting Stimulates New Cloud Business Models

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Stefan Ried

An important prerequisite for a full cloud broker model is the technical capability of cloud bursting:

Cloud bursting is the dynamic relocation of workloads from private environments to cloud providers and vice versa. A workload can represent IT infrastructure or end-to-end business processes.

The initial meaning of cloud bursting was relatively simple. Consider this scenario: An enterprise with traditional, non-cloud infrastructure is running out of infrastructure and temporarily gets additional compute power from a cloud service provider. Many enterprises have now established private clouds, and cloud bursting fits even better here, with dynamic workload relocation between private clouds, public clouds, and the more private provider models in the middle; Forrester calls these virtual private clouds. The private cloud is literally bursting into the next cloud level at peak times.

An essential step before leveraging cloud bursting is properly classifying workloads. This involves describing the most public cloud level possible, based on technical restrictions and data privacy needs (including compliance concerns). A conservative enterprise could structure their workloads into three classes of cloud:

  • Productive workloads of back-office data and processes, such as financial applications or customer-related transactions:These need to remain on-premises. An example is the trading system of an investment bank.
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Nebula Is A Quantum Leap In Cloud Computing Industrialization (2/2)

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Stefan Ried

The Nebula appliance announced today jumps right into this space and provides a standardized hardware configuration for OpenStack implementations. It offers scaled-out compute power based on commoditized x86 CPUs and standardizes a configuration of switches and other components to glue a large number of these CPUs together. The new VC-backed startup will thus compete head to head with EMC’s Vblock and Microsoft’s Azure appliance; neither of these are based on open source, and the latter isn’t really on the market yet.

But Nebula is more than just a hardware deliverable. Its mission is to transparently standardize the cloud hardware stack. Basically, it’s nothing more than the complex specification Microsoft worked out with its hardware partners (Dell, Fujitsu, and HP) to deliver the Azure appliance to local cloud providers and large-scale private clouds. However, Nebula’s openness is the differentiator; it reminds me a bit of IBM’s approach around the original personal computer back in the 1970s. Sure, it enabled hardware competitors to produce compatible PCs — but it also brought mass adoption of the PC, outperforming Apple over four decades.

 

If Nebula delivers a compelling price point, it has an appealing approach that could gain significant share in the growing cloud hardware market. If the new company aims to spur a revolution similar to that of the PC, its founders need to tweak their strategy soon:

 

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