Welcome!

Containers Expo Blog Authors: Derek Weeks, Pat Romanski, Kareen Kircher, Elizabeth White, Roger Strukhoff

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Linux Containers, Containers Expo Blog, @BigDataExpo

@CloudExpo: Blog Feed Post

SaaS Represents the Commoditization of Business Function

Like all things that get commoditized, differentiation or uniqueness that keeps economic value high becomes less important

North Bridge in partnership with GigaOm Research released their 2014 Future of Cloud Computing – 4th Annual Survey Results. As you examine the 124 slides, one thing is obvious that the greatest growth in cloud computing is coming from Software-as-a-Service (SaaS). Market research like this is very important because it provides tangible proof for our anecdotal hypotheses. That said, the report does not extrapolate what is the most interesting facet of SaaS hyper growth—59% in three years—the model for commoditization of business function is market validated.

Like all things that get commoditized, differentiation or uniqueness that keeps economic value high becomes less important than the common, undifferentiated features driving costs down. The interesting thing is that lower costs is a side-effect of commoditization as commoditization can only occur when businesses identify that they can achieve the same goals with the commodity item as they can with the unique one. Hence, businesses are speaking with their dollars and telling the market, we’ve figured out how we can operate our businesses equally well using this less complex, highly-configurable SaaS version as we can your expensive, monolithic, high-overhead, licensed version of this business function.

Maybe you’ve all figured this out already and I’m late to the game, but it’s definitely an “A-ha” moment for me. It’s easy, as demonstrated by the aforementioned report, to get caught up in the fact that cloud computing is having a disruptive impact on both the buy- and sell-side of the IT marketplace. However, for many, there is a belief that the costs, complexity, and delivery capabilities of internal IT have been the drivers for SaaS massive and rapid growth.

However, based on recent conversations with IT executives, I’ve come to the realization that businesses are willing to pay the high costs associated with enterprise applications if they deliver value. Thus, in order for SaaS to be growing at the pace it’s growing and seeing the increasing number of enterprise deployments, businesses have to be able to achieve an overall subset of functionality in an equivalent manner. Hence, the SaaS effect we’re seeing in the market has more to do with SaaS vendors hitting the sweet spot regarding commodity business functions and less to do with businesses’ frustrations with their own internal IT or agility alone. Moreover, this should be a clear message to startup SaaS companies, if you do not properly commoditize the right business function or enough of it, chances are your SaaS application will not see the success of those like Salesforce.com, Workday and others.

More Stories By JP Morgenthal

JP Morgenthal is a veteran IT solutions executive and Distinguished Engineer with CSC. He has been delivering IT services to business leaders for the past 30 years and is a recognized thought-leader in applying emerging technology for business growth and innovation. JP's strengths center around transformation and modernization leveraging next generation platforms and technologies. He has held technical executive roles in multiple businesses including: CTO, Chief Architect and Founder/CEO. Areas of expertise for JP include strategy, architecture, application development, infrastructure and operations, cloud computing, DevOps, and integration. JP is a published author with four trade publications with his most recent being “Cloud Computing: Assessing the Risks”. JP holds both a Masters and Bachelors of Science in Computer Science from Hofstra University.

@ThingsExpo Stories
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.