You know, I love times like this. It's one of those rare times....When I'm finally right about something. Trust me, my wife will insist that I'm right about things very rarely. At Akamai I concentrate on extending the Enterprise infrastructure out onto the Internet and into the public cloud. It's from this perspective that I clearly see the strong catalyst for Enterprise IT change - and what convinces me I'm right about what I believe is the next consolidation cycle in the space.
Being right about something means being able to dive into the details, but also being able to "bounce out" and validate the details from a broad vantage point. When I bounce back and look at the technology market today I see some significant and clear trends. I see a real and present collision between consumer and enterprise IT functionality and productivity. And it's in the software as a service space. It's here that innovative delivery technologies combined with present day functionality (like social, mobile, video, etc) are manifesting instantly and crossing the enterprise boarders quicker then anyone imagined it could happen. These are the bright spots of technology. Those spots where you know you've hit a ground shift of real change. Something that's going to build to the new way of doing business. So, it's clear to me, in 2012 SaaS is that ground shift. With no notice..... "Cloud" went from a marketing term to a specific something enterprises spend 10% today and 25% tomorrow on investing in to deliver productivity to end-users. The CLOUD IS FULL OF SAAS. Look at any analyst report.... The major spend, quoted by some as over 90% of the actual revenue spend in "the cloud", is SaaS spend.
Why?
It's easy to consume. The HR director can buy it. The research assistant can buy it. The entire enterprise can buy it. Or just your most advanced, highest end users can buy it. It's consumable. It's abstracted. It's easy to adopt. Any device can access it. You don't need to buy any hardware, train anyone, build anything, secure anything..... It's just instant on-demand application consumption. You give a credit card over the phone and minutes later your users are accessing the app and being productive. Amazing right?
Sure is. But, so was "consolidate all your servers to a centralized datacenter with no impacts" 10 years ago. And IT teams globally are still shaken and hungover from that decade long bender.
We're smarter than that now.
Being right about something means being able to dive into the details, but also being able to "bounce out" and validate the details from a broad vantage point. When I bounce back and look at the technology market today I see some significant and clear trends. I see a real and present collision between consumer and enterprise IT functionality and productivity. And it's in the software as a service space. It's here that innovative delivery technologies combined with present day functionality (like social, mobile, video, etc) are manifesting instantly and crossing the enterprise boarders quicker then anyone imagined it could happen. These are the bright spots of technology. Those spots where you know you've hit a ground shift of real change. Something that's going to build to the new way of doing business. So, it's clear to me, in 2012 SaaS is that ground shift. With no notice..... "Cloud" went from a marketing term to a specific something enterprises spend 10% today and 25% tomorrow on investing in to deliver productivity to end-users. The CLOUD IS FULL OF SAAS. Look at any analyst report.... The major spend, quoted by some as over 90% of the actual revenue spend in "the cloud", is SaaS spend.
Why?
It's easy to consume. The HR director can buy it. The research assistant can buy it. The entire enterprise can buy it. Or just your most advanced, highest end users can buy it. It's consumable. It's abstracted. It's easy to adopt. Any device can access it. You don't need to buy any hardware, train anyone, build anything, secure anything..... It's just instant on-demand application consumption. You give a credit card over the phone and minutes later your users are accessing the app and being productive. Amazing right?
Sure is. But, so was "consolidate all your servers to a centralized datacenter with no impacts" 10 years ago. And IT teams globally are still shaken and hungover from that decade long bender.
We're smarter than that now.
Continue reading The Next Consolidation Cycle: Software as a Service.




