Welcome!

Agile Computing Authors: Yeshim Deniz, Liz McMillan, Zakia Bouachraoui, Elizabeth White, Pat Romanski

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 Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get tailored market studies; and more.
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
AI and machine learning disruption for Enterprises started happening in the areas such as IT operations management (ITOPs) and Cloud management and SaaS apps. In 2019 CIOs will see disruptive solutions for Cloud & Devops, AI/ML driven IT Ops and Cloud Ops. Customers want AI-driven multi-cloud operations for monitoring, detection, prevention of disruptions. Disruptions cause revenue loss, unhappy users, impacts brand reputation etc.
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility.
Today's workforce is trading their cubicles and corporate desktops in favor of an any-location, any-device work style. And as digital natives make up more and more of the modern workforce, the appetite for user-friendly, cloud-based services grows. The center of work is shifting to the user and to the cloud. But managing a proliferation of SaaS, web, and mobile apps running on any number of clouds and devices is unwieldy and increases security risks. Steve Wilson, Citrix Vice President of Cloud,...
When Enterprises started adopting Hadoop-based Big Data environments over the last ten years, they were mainly on-premise deployments. Organizations would spin up and manage large Hadoop clusters, where they would funnel exabytes or petabytes of unstructured data.However, over the last few years the economics of maintaining this enormous infrastructure compared with the elastic scalability of viable cloud options has changed this equation. The growth of cloud storage, cloud-managed big data e...
Artificial intelligence, machine learning, neural networks. We're in the midst of a wave of excitement around AI such as hasn't been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. This time is (mostly) different. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Pattern recognition can equal or exceed the ability of human experts in some domains. It's devel...