Webinar CIOs Take On Platform-As-A-Service

1. WebinarCIOs Take On Platform-As-A-Service Stefan Ried, Ph.D., Principal Analyst June 25, 2012. Call in at 10:55 a.m. Eastern time Please tweet us your questions: @StefanRied

2. Agenda • What is PaaS ? • PaaS until now • PaaS today and tomorrow • The PaaS market segments • CIO’s governance approach for PaaS

3. PaaS is far away from the enterprise — until now.

4. Forrester’s PaaS reference architecture PAAS DEFINITION It is a complete application platform for multitenant cloud environments that includes development tools, runtime, and administration and management tools and services. PaaS combines an application platform with managed cloud infrastructure services. Source: July 13, 2009, “Platform-As-A-Service Market Sizing” Forrester report

5. Forrester Wave™: PaaS For App Dev And Delivery Professionals, Q2 2011 PaaS for business experts Source: May 19, 2011, “The Forrester Wave™: Platform-As-A-Service For App Dev And Delivery Professionals” Forrester report PaaS for “coders”

6. PaaS adoption in enterprise 2010 INITIAL PAAS ADOPTION HAD LIMITED IMPACT TO ENTERPRISES Corporate application developer or systems integrators extended SaaS applications Smaller ISVs developed SaaS add-ons Very little mission-critical enterprise applications on PaaS

7. PaaS walks into your door without asking.

8. Collaboration is emerging as a key business benefit INNOVATION AND COLLABORATION WILL FRAME THE FUTURE CLOUD AGENDA Developers can build collaborative B2B applications much easier on PaaS Source: April 24, 2012, “The Changing Cloud Agenda” Forrester report

9. Cloud computing is the new best-of-breed “Using your best estimate, how many different software-as-a-service (SaaS) applications did you use/are you planning to use?” The average number of SaaSapps will double in 2012. Mean number of SaaS applications 12 months ago Today 12 months from now Two years from now Base: 910 software decision-makers at firms with 20+ employees; Source: Forrsights Software Survey, Q4 2011

10. Cloud adoption accelerates in 2012 “What are your firm’s plans to adopt the following software technologies?”(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,” “planning to implement in the next 12 months,” or “planning to implement in a year or more”) By the end of 2013, 32% of all companieswill be using PaaS. SaaS IaaS PaaS BPaaS Base: 1,900 to 2,438 software decision-makers; Source: Forrsights Software Survey, Q4 2009, 2010, 2011

11. PaaS in enterprise crossed the chasm Still more than 50% do not use PaaS, but the adoption speed is accelerating across all custom enterprise apps

12. PaaS is already a crowded market . . . . . . AND THERE WILL BE MORE VENDORS WHO WILL JOIN EVERY QUARTER IaaS cloud services grew up to PaaS platforms. Amazon services: Database services (DynamoDB, RDS, ElasticCache) Messaging (SNS, SQS, SES) Parallel processing (Elastic MapReduce) Libraries for multiple languages (Java, PHP, Python, Ruby, .NET) Identity management and federation services (AWS IAM) Simple workflow service (AWS SWF)

13. PaaS is already a crowded market (cont.) . . . AND THERE WILL BE MORE VENDORS WHO WILL JOIN EVERY QUARTER New foundational PaaS platforms came up with a new developer generation. Heroku Google App Engine Middleware vendors became more serious about the cloud. Mulesoft Tibco Silver Oracle Cloud Ongoing SaaS adoption stimulated more PaaS usage. SAP’s platform capabilities of Business By Design

14. PaaS capability segments Many PaaS services support more than one capability segment Source: Upcoming “Industry PaaS Solutions” Forrester report

15. 1. Foundational PaaS New applications targeting a highly fluctuating number of users Characteristics: Highly scalable runtime container or specific tools for developers coding new applications Basic platform services like database or storage services are usually provided, while modeled business logic on a higher level such as business processes or rules or BI/analytics are not built-in capabilities of a foundational PaaS. Example: New web applications linked into Facebook or other web apps addressing a large number of consumers on a PaaS platform like Heroku or Google App Engine The scalability and pricing of the foundational PaaS is a benefit.

16. 2. Application PaaS Custom or packaged applications extending major SaaS applications or an ecosystem of business apps on the same platform Characteristics: Platform around a major SaaS application Additional business logic extends the packaged logic and shares the usage of high-level components such as data objects,business processes and rules, and collaboration capabilities such as social-newsfeed-based user interface. Example: The extension of salesforce.com’s CRM SaaS application or Netsuite’s ERP SaaS application by independent software vendors or corporate application developer leveraging force.com or SuiteCloud, respectively

17. 3. Process PaaS Business process centric applications Characteristics: Platform provides an extended set of business process modeling, execution, and simulation capabilities extended by a basic programming container. Example: Some enterprises migrate from a Lotus-based, on-premises collaboration to a simpler cloud-based collaboration suite such as Google Applications. While Lotus was capable of sophisticated workflow management, most new cloud collaboration suites are not. A process PaaS such as Appian or Cordys can be a good complement to re-implement the process parts of the legacy collaboration platform in the cloud.

18. 4. Integration PaaS Cloud/legacy- and cloud/cloud- integration centric applications Characteristics: Platform around a comprehensive set of integration components,such as an enterprise service bus, enterprise application integration,B2B gateway, master data management, message broker, and legacy integration The platform needs to provide a programming container to build applications based on integration scenarios. Example: Creating Mashupapplications such as a call-center application working with a data from various sources such as a SaaS CRM application, a remote on-premises service management and a local phone system; Vendors like Cordys and Tibco offer the capability to create these kind of supplicated integration-driven Mashup apps.

19. 5. Legacy PaaS Legacy applications migrated from mainframes or traditional C/C#/Java runtime platforms Characteristics: Target platform of legacy and custom-made business applications migrated from traditional on-premises environment to this PaaS environment The legacy PaaS needs to support wide-code portability to keep the migration effort limited. Example: The migration of Cobol code off an mainframe to Fujitsu’s Azure appliance Beyond Microsoft’s Azure offering, Fujitsu extended their Azure instance with Cobol runtime and legacy connectivity capabilities to provide a migration with a limited manual effort.

20. 6. Content PaaS Content management and document collaboration centric applications Characteristics: Platform provides an extended set of content management and collaboration capabilities extended by an basic programing container. Example: Industries such as the automotive industry need to collect product certificates from their suppliers and own manufacturing divisions. However, meeting the legal compliance of import regulations for some countries like China can require additional application logic that assembles and presents the right content assets for an individual vehicle to the customs administration. Fabasoft’s content PaaS, called Foliocloud, enabled a major car manufacturer to offer a content-focused cloud application in a few weeks.

21. PaaS spending is mapped to traditional categories Consider mainly for new project — existing maintenance will not shift Foundational PaaS Traditional applications server and database software and physical hardware or the first generation of virtualized private data centers Application PaaS Traditional components of a comprehensive integration stacks such as business process and rules management software Integration PaaS Traditional components enterprise service bus (ESB) and business-to-business (B2B) integration software and services

22. PaaS spending is mapped to traditional categories (cont.) Consider mainly for new project — existing maintenance will not shift Legacy PaaS Traditional runtime platforms such as mainframe hardware or traditional Unix cluster hardware and database software Process PaaS Traditional business process management software Content PaaS Traditional enterprise content management systems and document sharing environments like Microsoft’s SharePoint

23. PaaS vendors focus on totally different capability sets Source: Upcoming “Shaping Platform as a Service” Forrester report

24. Capability segments DISCLAIMER Use vendor positioning with caution: The visualization of PaaS capability by vendor is onlyshowing our assessment where these PaaS offerings focus and where we see usage in the market. It does not compare quality and depth of each capability! PaaS platforms, especially foundational PaaS, might be very attractive with a narrow focus. PaaS vendors with “all” capabilities might not be deep enough on those capabilities you need. Forrester deploys detailed product comparison exclusively based on the Forrester Wave™ methodology. And we will update our existing PaaS Wave shortly.

25. How many PaaS providers do I need? NOT ALL VENDORS COMPETE TO EACH OTHER! Only PaaS vendors with similar sets of capabilities compete with each other. Enterprise architects can map your typical applications scenarios to camps of PaaS providers. Example: One app scenario to extend your SaaS apps Another app scenario to deliver a B2C eCommerce application Pick a preferred PaaS solution for app scenario type from the camp of vendors with similar capability sets. Example: If you have picked Appian or Cordys for business processes in the cloud, try to use the same for in-house process management.

26. CIOs are slowly getting back in the driver seat “Today, which of the following describes your firm’s strategy/approach around the use of software-, infrastructure-, or business-process-as-a-service offerings?”“By the end of 2012, which of the following will describe your firm’s strategy/approach around the use of public software-, infrastructure-, or business-process-as-a-service offerings?” “We have no formal [cloud] strategy/approach” “We are executing on a formal [cloud] migration plan” “We see unsanctioned [cloud] buying by business outside IT” ∆45% ∆47% ∆75% Base: 1,031 IT services decision-makers; Forrsights Software Survey, Q3 2011

27. Next steps for CIOs • The PaaS market is not a homogeneous market. Explore it! • Hybrid PaaS usage makes sense. • Forrester’s six different PaaS capability segments map to different application scenarios; set priorities. • Pick preferred PaaS solution for each of your priority segment. • The PaaS capabilities can be mapped to traditional spending categories.

28. Stefan Ried, Ph.D. +49 69.9592.9856 +1 650.581.3844 sried@forrester.com Twitter: @StefanRied blogs.forrester.com/stefan_ried