|By Ed Featherston||
|May 22, 2014 12:00 PM EDT||
The cloud wars battle rages on. Gartner predicts that one in four cloud providers will be gone by 2015, making this a very high stakes battle for all concerned. The 800lb gorillas, AWS, IBM, Google, Microsoft, et al. continue their efforts for dominance. The latest salvo has been a price war between Google, AWS and Microsoft for their services. Pricing is spiraling downward at breakneck speeds. The others are sure to follow. Into this fog of war, another player has been working on winning the hearts and minds of customers and developers. SalesForce.com, one of the first and best known Software as a Service (SaaS) vendors, has set its sights on becoming the platform of choice for cloud development and deployments.
Will they succeed? They definitely can be considered a gorilla in their own right, approaching $5B in sales, and with a reported 1.5M developers, should not be taken lightly. Their approach is having an impact in the battle, forcing the other vendors and the industry to re-think how they look at cloud services, and could ultimately change the battlefield tactics in the ongoing cloud wars. To understand how a CRM vendor rose to that level of impact, becoming a contender in the cloud wars, one must trace their roots.
This Is Not Your Father's CRM
I know I am dating myself, but there was a time I worked in the industry when customer relationship management was literally a sales person's rolodex. Then, in the early 1990s, Customer Relationship Management (CRM) came into being as a concept. We graduated to digital rolodexes and small marketing applications like ACT. CRM really started to take off in the mid-90s when large ERP vendors such as Oracle and SAP joined the game. These vendors wanted to leverage their size and installed an ERP base to fuel the growth. CRM systems like those were large in-house applications with a myriad of marketing and sales services being added along the way.
Salesforce.com took CRM in a very different direction when they were founded in 1999. They were one of the first companies to truly push the SaaS model with their ‘End of Software' marketing pitch and campaign. While we take SaaS for granted nowadays, this was a pretty radical approach at the time. To set some context, in 1999
- Approx four percent of the world's population was on the Internet
- Google had been founded just six months prior
- Amazon.com had been around for approximate five years (AWS was still seven years away)
Eleven years later, Salesforce.com rose to become the industry market leader in CRM, bypassing the ERP stalwarts SAP and Oracle, capturing 14 percent marketshare according to Gartner. In that timeframe their name became synonymous with SaaS (think, how many presentations on the cloud have you seen that give Salesforce.com as an example of SaaS?).
May the Force Be with You
In 2007, Salesforce.com again took the cloud industry by storm launching Force.com. Force.com provided a mechanism for customers and partners to build cloud-hosted applications that could easily integrate with the Salesforce.com core systems. Just as Salesforce.com had become synonymous with SaaS, Force.com led the way into the Platform as a Service (PaaS) world (some even credit Salesforce.com founder Mark Benioff as coining the term PaaS). According to Salesforce.com, within three years they had over 300,000 developers that had written over 180,000 custom applications. Recent reports have them at 1.5M developers. At their recent DreamForce 2013 conference, there were 130,000+ registered attendees from 84 countries and 350 partner companies participating.
Gartner's latest magic quadrant for Enterprise PaaS places Salesforce.com as the industry leader. Gartner views one of their key strengths as having the "...longest strategic and successful presence in the cloud application and platform markets. This gives salesforce.com the name recognition and reputation that, for many prospects, translate to a safe choice in the otherwise immature and unsettled PaaS market." The have become the ‘safe' choice, just as in decades past the ‘nobody got fired for buying IBM' concept.
This does not mean they are a perfect solution. One of my favorite phrases is "Everything is a tradeoff," and the Salesforce.com PaaS offering is no different. It is built around a proprietary cloud native relational DBMS (which is the underlying DBMS for the Salesforce.com product suite as well). Gartner cautions ‘The proprietary nature of the Force.com platform deters adoption by many independent application development projects seeking to avoid vendor lock-in and prevents application migration projects from utilizing the platform.'
The Convergence of IaaS and PaaS, Changes in the Battlefield?
A recent article in Network World, ‘Is the PaaS Market as we know it dying?', discusses changes and trends that are happening in the IaaS and PaaS space. The article raises the theory that these two major cloud models are moving towards consolidation. David Linthicum reinforces that viewpoint. He describes it as ‘PaaS isn't dying, it's becoming part of IaaS'. As the ongoing price wars between the IaaS gorillas continues, it reduces IaaS to just a commodity item. Differentiators are needed to attract customers (and developers) to use this commodity for their cloud applications and deployments. Some of those differentiators can be platform services to facilitate development and application marketplaces to provide customers with easier transition to the cloud environments. IBM recently announced such a marketplace, and added PaaS to their portfolio with the acquisition of SoftLayer last year.
These differentiators are how Salesforce.com has been marketing and selling Force.com and what has made them the industry leader in the PaaS space. They have had their own marketplace, called AppExchange, with over 2,200 partner built applications including integrations with all the key social media technologies such as LinkedIn, Facebook, and Twitter. The convergence of the IaaS and PaaS models can potentially play to SalesForce.com's sweet spot and make them a strong competitor to all the other 800lb gorillas in the ongoing cloud wars.
Will this be enough? Time will tell. The cloud market is not going away. Gartner predicts that cloud spending from 2013 to 2016 will be $677 billion worldwide. There is a lot at stake, so the cloud wars will continue for some time. SalesForce.com is more than capable of holding its own against the other 800lb gorillas in the ongoing battle for the cloud market share. Salesforce.com was born of the cloud and has not looked back nor rested on their laurels. When the predicted shakeout occurs, I think they will still be one of the ones left standing.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his general session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore...
Feb. 27, 2017 09:45 AM EST Reads: 1,832
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
Feb. 27, 2017 09:30 AM EST Reads: 5,570
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, will discuss the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even ...
Feb. 27, 2017 09:15 AM EST Reads: 1,272
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Feb. 27, 2017 09:15 AM EST Reads: 308
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Feb. 27, 2017 09:15 AM EST Reads: 3,164
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Feb. 27, 2017 09:15 AM EST Reads: 1,474
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 27, 2017 09:15 AM EST Reads: 2,380
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Feb. 27, 2017 09:15 AM EST Reads: 1,525
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
Feb. 27, 2017 09:00 AM EST Reads: 2,429
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
Feb. 27, 2017 09:00 AM EST Reads: 6,705
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 27, 2017 08:45 AM EST Reads: 252
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 27, 2017 08:45 AM EST Reads: 1,324
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Feb. 27, 2017 08:45 AM EST Reads: 6,398
Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infrastructure through automation. Ayehu solutions have been deployed by major enterprises worldwide, and currently, support thousands of IT processes across the globe. The company has offices in New York, California, and Isr...
Feb. 27, 2017 08:15 AM EST Reads: 212
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Feb. 27, 2017 07:45 AM EST Reads: 972