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OpenStack SeminarDisruption, Consolidation and Growth
Woodside Capital Partners
December 2, 2014
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Building an OpenStack Business
VII. Predictions
AGENDA
1
Evolution of Enterprise Computing
2
Mainframe
Person
al
Compu
ting
Client /
Server
Web
/
Internet
Back office Efficiency
Personal Productivity
Front Office Intelligence
Ubiquitous Information Access
PresentPast
No Real Time Availability
Isolation of Information
Network Complexity/Cost
Data Management and Security
Usage / Utility Pricing
Per Seat
Per Seat (Client)Per Server (Data
Center)
Subscription and Subsidized (Ad
Driven)
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
3
Source: Rightscale Customer Survey
Cloud Adoption Today
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
Top 10 CIO Priorities
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Where are the OpenStack Opportunities
VII. Predictions
AGENDA
5
6
Source: IDC
Worldwide SaaS and Cloud Software
Cloud Software Market
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Building an OpenStack Business
VII. Predictions
AGENDA
7
8
Cloud Deployment
9
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking
User M
anages
Delivered
as a
Service
Infrastructure as a Service Platform as a Service Software as a Service
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking
User M
anages
Delivered
as a
Service
Applications
Data
Runtime
Middleware
Operating System
Virtualization
Servers
Storage
Networking
Delivered
as a
Service
Cloud Delivery
10Source: Gartner (May 2014)
IaaS Magic Quadrant
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
Amazon AWS
$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 mission̶ Azure for Infrastructure̶ Office 365 for Productivity̶ Dynamics for Business Process
Life Cycle Services (LCS) for DevOps
Windows 10, Big Data coming
12
Microsoft Azure
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
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Google Compute
IBM
Hewlett Packard
RedHat
Oracle
Verizon
VMware
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Other Key Players
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Building an OpenStack Business
VII. Predictions
AGENDA
15
16
“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.”
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The market for OpenStack solutions is set to quadruple to $3.3 billion by 2018
Source: 451Research
OpenStack Market Opportunity
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OpenStack IaaS Simplified
Evangelize Find Use Case Customize and Deploy
Develop internal champions
Work with service providers to understand strengths
Web 2.0 inspired Link OpenStack to the apps via the API
Deploy in the cloud on premise with a services component
OpenStack Sales Cycle Success Model
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Building an OpenStack Business
VII. Predictions
AGENDA
20
No vendor lock‐in
100s of thousands of contributors
Accelerated release cycles
Pay only for value add
Pace of adoption
Proven model with Linux
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Open Source is THE Advantage
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Red Hat Revenue ($M) and Key Milestones
Linux Growth Case Study
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Distributions and Appliances Public Clouds Private Cloud as a
Service Integrators Connectors/Drivers
Broadest Ecosystem
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
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Focus on Applications
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Building an OpenStack Business
VII. Predictions
AGENDA
25
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 maintenance26
Critical Gap in Dev Ops
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One click provisioning
Elasticity
Multi‐tenancy
UNDER THE HOOD
Big Data Applications
I. Evolution of Enterprise IT
II. Cloud Market Opportunity
III. Cloud Market Landscape
IV. OpenStack Today
V. How OpenStack Wins
VI. Where are the OpenStack Opportunities
VII. Predictions
AGENDA
28
29
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%
OpenStack will Transform Vendors
30
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
The New World Order
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, Open̶ Speed to new features̶ No new vendor lock‐ins̶ 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
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Why OpenStack Wins the Battle
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Selected Cloud Transactions
Source: CapitalIQ, 451Research and Woodside Capital Partners estimates as of December 1, 2014
33
WCP Contact Info
WCP Research
WCP BankingTricia Salinero
Partner and Managing Director+1 650 421 6547
Sam SkinnerCOO and Managing Director
+1 415 845 [email protected]
Marshall SenkSoftware Analyst and Managing Director
+1 949 284 0599 [email protected]
Monica MarianiVice President+1 650 513 2773
34
WCP Office Info – Silicon Valley and UK Presence
Silicon Valley Offices1530 Page Mill Road, Suite 200Palo Alto, California 94304Tel: +1 650 513 2775
UK OfficesRiverbank House2 Swan LaneLondon EC4R 3TT, UKTel: +44 (0) 207 861 6735
35
Q&A
Q&A
Thank You
www.woodsidecap.com
