Welcome!

Containers Expo Blog Authors: Liz McMillan, Pat Romanski, Yeshim Deniz, Elizabeth White, Zakia Bouachraoui

Related Topics: Silverlight, Java IoT, @CloudExpo

Silverlight: Article

Ten Cloud Computing Predictions for 2009 - From Appirio

Predicts strong growth for cloud computing, Azure disappointment, SaaS 1.0 failure and increased cloud connections

As the year draws to a close, many companies are left wondering what next year will bring for this year's hottest technology trend - cloud computing. To answer these questions, Appirio today released its top 10 predictions for how cloud computing will evolve in 2009 and the impact those trends will have on IT and business.

Appirio's predictions reveal that in spite of our current economy, cloud computing will continue to see strong growth and investment over the next year - a prediction that industry analysts agree with as well. As more and more companies like Flextronics, Genentech and Harrah's publicly discuss their experience with cloud computing, it will pave the way for even more adoption over the coming year.

"This year cloud computing made the leap from an interesting proposition to a viable option for even the largest of enterprises. In 2009 it becomes mandatory," said Appirio co-founder, Narinder Singh. "Today's economic climate will force enterprises to pick technology winners and losers for their environment in order to cut costs, be more efficient and deliver business-relevant innovation. Cloud computing makes this seemingly impossible task a possibility - much more so than with traditional software. This is why we believe cloud computing will be counter cyclical, with SaaS and Platform as a Service (PaaS) investment accelerating, and traditional software spending declining."

Appirio's 2009 predictions include:

1. The "cloud of clouds" expands but sees traction revolve around open platforms. Expect to see Microsoft and other traditional software players invest even more in new but closed cloud platforms. At the same time, proponents of a more open approach, like Amazon, Facebook, Google and Salesforce, will push more and deeper "cloud connections" like they did this year. This will create a more heated debate between the value of closed versus federated platforms.

2. At best, Microsoft Azure will be a better platform for Exchange. Microsoft will continue to shower attention on Azure but will see relatively limited adoption from ISVs and customers. While it will likely disappoint users and remain well behind established cloud players for the first few years, it will become a viable platform by 2010 - primarily as a better foundation for Microsoft Exchange and existing on-premise .NET applications.

3. Google doubles down on the enterprise; enterprises return the favor by racing to Google Apps. Google has already shown they're serious about winning over enterprises with acquisitions like Postini and investments in Google Apps. They'll continue to expand their support for enterprise-class security, transparency, and development languages. In return enterprise customers, faced with economics that overcome preconceptions, will substantially increase their pace of adoption. We expect to see at least 3X the number of enterprises evaluating and moving to Google Apps, at the direct expense of Microsoft Exchange, Office and Lotus Notes (the Asbestos of Software).

4. A major SaaS 1.0 company will fail. Although SaaS and cloud investments will increase next year, a number of SaaS 1.0 companies - stand-alone companies who built their SaaS products from scratch on their own - will either falter due to the demands of creating infrastructure, or chose to re-platform. The progress of enterprise-ready platforms like Force.com makes it much easier for SaaS 2.0 companies to build advanced products that can leap ahead of the competition at a much lower cost.

5. A rise in serverless companies with 1000+ employees. In 2009, the market will start to hear about more and more companies going completely server-less. While this is already happening at smaller companies, larger and larger companies will optimize their business processes and cut IT expenses by outsourcing to cloud providers.

6. The rise and fall of the private cloud. While private clouds will continue to generate a significant amount of hype, customers in most cases will realize they are little more than a better data center implementation. They will be valuable for customers who have significant transaction volumes and stringent regulatory or security requirements, but will have little ROI for the average IT organization. In the end, private clouds will create more value for service providers than for customers.

7. Business Intelligence (BI) becomes the next functional area to SaaSify. Just as CRM and HRM applications became poster children for the shift to SaaS these last few years, we'll see the same thing happening with on-demand BI. We'll also see a bifurcation in this space, with one set of applications built from the ground up to leverage the inherent benefits of cloud computing and one set a repackaging of traditional BI features just delivered over the Internet.

8. SAP or Oracle gets into the PaaS game. While these companies may have hedged their bets in 2008 (or even berated the SaaS model), we believe one of these companies will see the writing on the wall and start at least talking about a new cloud platform they're building over the next few years. In fact, they will attempt to switch the conversation and convince the market they have been working on this for years but called it something different.

9. Enterprises will figure out how to use social networks in the right way. Companies - especially their HR and marketing organizations - will finally figure out how to utilize social networks in day-to-day operations. More and more business (employees, leads, market intelligence) will come directly through business applications that tap into Facebook, Twitter, LinkedIn and other social networks that are already being used by employees and customers outside the workplace.

10. There will be at least one $100M software product built on Force.com. The myth that it is impossible to build a big business on an on-demand platform will finally be debunked by the emergence of a PaaS-enabled application in 2009 that has the potential for a $100M run rate.

These predictions are loosely based on what Appirio is hearing and seeing first hand from industry insiders around the globe - from a base of over 2,000 customers, partnerships with leaders in this space, and conversations with industry influencers.

More Stories By Cloud News Desk

Cloud Computing News Desk brings the latest industry news related to the Cloud paradigm of massively scalable IT resources and capabilities delivered as a service using Internet technologies. For up to date news on the International Cloud Computing Conference & Expo series, the easiest way is to follow it on Twitter.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...