Cloud Computing Models: Private, Public and Hybrid

I used this slide deck for the Microsoft "Road to the Cloud" event on 12th February 2015 at Microsoft Vienna. Parts of it are the standardized "Road to the Cloud" slide deck. However, I added a few of my own slides, too.

Transcript

2. Challenges Opportunities • Expanding Market Opportunity: Reach new customers in broader markets • Sell directly to business decision makers • More predictable revenue • Lower infrastructure support costs • Requires business model adjustments - new pricing approaches , selling, and more • Revenue increases slowly, harder to invest back in business • Legal and regulatory concerns with storing data outside the customer’s datacenter • Limited opportunities for customization • Low margins and price sensitive customers cause churn On-Premises SaaS Apps Hybrid
3. Channels Building Blocks of a Business Model Business Model Which customers do you serve? What is the value that you deliver to your customers? Which communication, distribution, and sales channels do you use? How do you establish and maintain the relationship with your customer? How does your value proposition result in revenue? What is a business model? Value Proposition CRM Customer Segments Revenue Stream
4. Channels Building Blocks of a Business Model Business Model What are the key resources that you need? What are the key activities you have to perform? Which activities do you acquire from outside? How does your cost structure look like? What is a business model? Partners Resources Activities Cost Structure Value Proposition CRM Customer Segments Revenue Stream
5. Channels Innovation Innovation Customers might tell us about areas where they need innovation New capabilities might enable new value propositions Different revenue or cost structures might open new markets How can SaaS and Cloud Computing influence your business model? Where does innovation come from? Partners Resources Activities Cost Structure Value Proposition CRM Customer Segments Revenue Stream
6. Balancing SaaS delivery with core software and solving customer problems. Software+ Customer workflows Core Competencies Essential value for ISVs to build As-a-Service (Platform & Infrastructure Management) Non-core, but Necessities Limited value for ISVs to build
7. ISVs are experiencing more challenges and burdens managing their own infrastructure
8. Choosing the right cloud platform is critical when expanding your business to the cloud and SaaS Software+ Customer workflows Core Competencies Essential value for ISVs to build Choosing the Right Cloud Platform Non-core, but Necessities Limited value for ISVs to build
9. Application Architecture Complexity & Customization Complexity of solutions – data layer/app layer Core vs. new/extended solutions APIs Solution integration: 3rd party solution integration, APIs support Customization – enabling partners Tenancy Single tenant vs. Multi-tenant Operations Customer Needs & SLA Reliability/Availability Performance Security/Compliance Scalability Support Easy on-boarding Service management: Provisioning, usage metering, billing DevOps ALM DevOps collaboration Versioning Business Model & Strategy Pricing /Cost Structure Pricing model – monthly, annually Funding model: CAPEX vs. OPEX Cost to scale (COGS) Target Market Target market and geo presence, expansion Macro environment – data sovereignty, regulatory compliance Business Goals Cloud First or Cloud Both strategy Grow – organic or through acquisition Funding – get sold, get invested
10. Deployment Models Classical Model Customer owns infrastructure Control over code and data Deployment is hard Different options for implementing SaaS
11. Deployment Models Outsourcing Software consumed as a service Customer still owns infrastructure Private Cloud Different options for implementing SaaS
12. Deployment Models Enriched Model Software is enriched by (optional) cloud services Public services Backup Message Bus Different options for implementing SaaS
13. Deployment Models SaaS Single Tenancy Infrastructure as a Service Server virtualization Escrow Service Code Data Different options for implementing SaaS
14. Deployment Models SaaS Multi Tenancy Dynamically scaling infrastructure PaaS Economy of scale Different options for implementing SaaS
15. Hybrid Cloud: Across On-Premises, Managed Hosting, and Public Cloud 80%of SaaS ISVs are self-hosted today Key Drivers < 2% Cloud-based infrastructure (Public Cloud)  Fast time to solutions, rapid deployment for new services  Global reach with broad geo coverage 18% Enhanced Managed Services and Hosted Managed Services  Delegate operations and infra management to capable managed hosting partners 39% Co-location  Specific geo coverage or local presence while maintaining operational control to meet customer’s expectations and SLA  Infra HW operational efficiency 41% ISV On-premises  Complex solution architecture and customization  Full operational control to meet customer expectations and SLA  Cost to scale. CAPEX funding model Source: IDC Direction 2014, Transformation Everywhere How SaaS Gets Built, March 2014
16. Complete Hybrid Cloud Platform ONEConsistent Cloud Platform to Support ISVs’ Business Needs < 2% Cloud-based infrastructure (Public Cloud) 18% Enhanced Managed Services and Hosted Managed Services 39% Co-location 41% ISV On-premises Source: IDC Direction 2014, Transformation Everywhere How SaaS Gets Built, March 2014 Microsoft Cloud OS Customer Service Provider Microsoft Consistent Platform ONE Allows ISVs to expand SaaS business seamlessly with a consistent hybrid platform
17. The Platform for Your SaaS Business Common Identity Integrated Virtualization Data platform Multi-Tenant Flexible Deployment Microsoft On-Premises Service Provider One Consistent Platform Deliver a consistent platform to run your applications across on-premises, Microsoft public cloud, and service provider’s cloud Unified Management
18. .NET Hyper-V Visual Studio System Center Active Directory Programming languages + tools .NET, Visual Studio, TFS + Git, Java, NodeJS, PHP , Python, Ruby, C++ Microsoft cloud infrastructure Web Mobile Gaming Cloud services Data Analytics Media Identity IaaS Windows VMs Linux VMs Storage Networking PaaS
19. 24 x 7 x 365 1 billion 20 million 76 280 years ₩ ¥ € руб $ $ £ $ Rp TL chf kr kr $ R $ $
20. June 2013 250,000 50% of the Fortune 500 companies
21. Dynamics CRM serves over 3.5 million users Nearly 50 million Office Online users
22. Regulatory compliance is a feature set of O365, Azure and CRM Online. Microsoft continues to adapt and evolve in building regulatory compliance features into our services No other cloud provider offers the breadth of regulatory- related and other trust features across cloud platforms Routinely collaborate and seek input from regulators to validate our approach Microsoft’s services are engineered to help customers to meet their regulatory compliance needs Microsoft is a thought leader and innovator in the cloud on regulatory compliance
23. Channels Summary Summary With SaaS you might reach new customer segments Value proposition = Products + Service SaaS helps you to establish new sales channels Your customers become subscribers Prepare for changes in your revenue stream What did we cover? Value Proposition CRM Customer Segments Revenue Stream
24. Channels Summary Summary Development tools stay the same but your architecture will be different You have to develop new skills regarding operating your SaaS solution Build on a PaaS infrastructure whenever possible Optimization is sexy again! What did we cover? Partners Resources Activities Cost Structure Value Proposition CRM Customer Segments Revenue Stream