2011 North Bridge Future of Cloud Computing Study

2011 North Bridge Future of Cloud Computing Study|Results of industry-wide survey conducted in partnership with Gigaom, 451 Research + 30 collaborators.

1. Gigaom Structure : June 22, 2011 Future of Cloud Leadership Panel

2. Michael Skok General Partner Leadership Panel 2 Dries Buytaert CTO & Founder President Lew Moorman John Dillon CEO Marten Mickos CEO @Dries @ LewMoorman @ JohnDillon @ EntreCapitalist @ MartenMickos

3. 3 Agenda

4. Enterprise Cloud Computing Definitions 4 SaaS [application ] PaaS [platform ] IaaS [infrastructure] Storage Compute Network Dev Tools Frameworks Management CRM Web / Mobile Applications Sales Force Automation Blogs Email Content Management Marketing Payroll Office Productivity

5. Enterprise Cloud Computing Definitions 5 a hosted application accessed through a Web browser. SaaS is the ongoing support of applications whose core value to the customer pertains to alleviating the maintenance and daily technical operation and support of business and consumer software. SaaS is a newer model of Web-delivered software offered with a subscription instead of traditional license. an in-cloud platform for the development and deployment of cloud application software that is analogous to an on-premises application server with added multi-tenant elasticity and other cloud-enabling features. PaaS offerings are designed to support the entire application development lifecycle. PaaS includes vendors that provide the entire stack of PaaS functionality and those that partner with third parties (i.e. hoster ) for the infrastructure component. virtual or physical hardware resources (e.g. compute, storage, network) offered as a service with heavy reliance on server virtualization. IaaS is a shared IT infrastructure (compute and storage) architecture provided through on-demand services . SaaS [ application ] PaaS [platform ] IaaS [ infrastructure]

6. Survey Background 6 www.FutureCloudComputing.net

7. Survey Partners & Collaborators 7

8. Who took the survey? 8 46 % vendors 54 % n on-vendors 417 Total Responses

9. Who took the survey? 9

10. Survey Respondents 10 Firms 9k 100k 6M >1000 Enterprise 100-1000 employees Mid - Market <100 employees Small Source: 2007 US Census Bureau; IDC, Salesforce.com Survey Respondents 14% 18% 68% OnPremise Stronghold OnDemand Stronghold = Cloud Market

11. 11 What would you like to hear about cloud computing? Usage… t oday Drivers, Inhibitors … for the future

12. How do Customers Characterize their Approach to Using C loud Computing Today? 12 Experimenting Waiting to mature Complete confidence for mission critical applications Using for usage spikes Will never use, too risky 10% 26% 40% 11% 13%

13. LIVE Vote! Txt Your Vote to 22333 13 How would you characterize your approach to utilizing cloud infrastructure today for mission critical business applications and processes? “ toorisky ” Never, cloud too risky………. Waiting for cloud to mature… “waiting” Experimenting…..…………… “experiment” For usage spikes… …………. “spikes” Complete confidence……….. “complete”

14. Months Using Cloud 14 Months Responses Average Months Using Cloud 20

15. LIVE Vote! Txt Your Vote to 22333 What are the most important drivers to adopting Cloud Computing? “ cost ” Cost…………………. Agility……………….. “ agility ” Mobility…..…………. “ gomobile ” CapEx to OpEx ….… “ capex ” Scalability…………... “ scale ” Pace of Innovation… “ pace ” 15

16. Drivers For Cloud Adoption 16 47% 263% 100% 113% 64% Now vs. 5 years

17. Drivers For Cloud Adoption 17 47% 263% 100% 113% 64% Now vs. 5 years

18. Inhibitors to Adoption… What is Top-of-Mind? 18 Security Compliance Vendor Lock-in Interoperability Reliability Complexity Privacy Pricing Expense Other

19. What is the Strategy of Cloud Customers Today? 19 … in the Future? 21 % 12 % 27 % 42 %

20. 20 Cloud Computing TCO is… Same 29 %

21. 21 Cloud Computing TCO is… Lower Same Higher 57 % 29 % 14 %

22. Impact of Cloud Computing on IT Manageability? 22 More Complex Less Complex No Impact 39 % 39 % 22 %

23. What is the Impact of Cloud Computing on Hiring? 23 26 % Decrease 32 % Increased 42 % None

24. Top Up and Coming Cloud Companies? 24 PUBLIC PRIVATE

25. Top Up and Coming Cloud Companies? 25 PUBLIC PRIVATE

26. Cloud Investments 26 2009 2010 2011 64 deals 93 deals $482M $713M ?? Source: Dow Jones Company

27. Cloud Technologies/Vendors in Use Today ? 27 IaaS (infrastructure) SaaS (applications) Awareness Basecamp BrightCove Codebase FreeAgent Google gmail / docs HubSpot Jenkins Microsoft Moxy OpenTable Salesforce.com SurveyMonkey TripIt Tungle Wordpress Workday ZenDesk ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp , IBM, Infomatica , Equinix , RedHat CloudBees Heroku Google AppEngine MS Azure VMWare Voltage Successfactors Teleo Kenexa Concur SAP ByDesign Intuit Adobe Oracle McAfee Symantec Amazon Eucalyptus GoGrid Google Microsoft Rackspace Rightscale Sound Cloud Terremark Virtacore Yaws PaaS (platform)

28. Cloud Technologies/Vendors Planned to Use? 28 IaaS (infrastructure) SaaS (applications) ENABLERS: VMware, Cisco, Oracle, Citrix, Akamai, Dell, HP, EMC, NetApp , IBM, Infomatica , Equinix , RedHat (Intentionally blank – no one new mentioned) PaaS (platform) Acquia Cumulogic Egnyte Mnesia MongoDB Openstack Yahoo Pipes Asigra Facebook Geckoboard Kaazing Seesmic Pentaho

29. Cloud Vendor’s Infrastructure is… 29 Public Cloud Hosted Co-located Privately Owned

30. How Vendors Use Cloud Services 30 CMS, CRM, Web Mail, VOIP Storage Database App Server Search Other

31. Vendor’s Primary Revenue Sources 31 1 Services (other than custom software/hardware development 1