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Posts tagged ‘Amazon Web Services’

The Best Cloud Computing Companies And CEOs To Work For In 2014

Job Growth2014 continues to be a year marked by the accelerating hiring cycles across nearly all cloud computing companies.

Signing bonuses of $3K to $5K for senior engineers and system design specialists are becoming common, and the cycles from screening to interviews to offers is shortening.  The job market in the cloud computing industry is leaning in favor of applicants who have a strong IT background in systems integration, legacy IT expertise, business analysis and in many positions, programming as well.

One of the most common questions and requests I receive from readers is who the best companies are to work for.  I’ve put together the following analysis based on the latest Computer Reseller News list The 100 Coolest Cloud Computing Vendors Of 2014.  

Using the CRN list as a baseline to compare the Glassdoor.com scores of the (%) of employees who would recommend this company to a friend and (%) of employees who approve of the CEO, the following analysis was completed.  You can find the original data here .  There are many companies listed on the CRN list that don’t have than many or any entries on Glassdoor and they were excluded from the rankings below.  You can find companies excluded here. If the image below is not visible in your browser, you can view the rankings here.

results

The highest rated CEOs on Glassdoor as of February 23rd include the following:

  • Jeremy Roche of FinancialForce.com (100%)
  • Robert Reid, Intacct (100%)
  • Randy Bias, Cloudscaling (100%)
  • Sridhar Vembu, Zoho (98%)
  • James M. Whitehurst, Red Hat (96%)
  • Larry Page, Google (95%)
  • Christian Chabot, Tableau Software (95%)
  • Aneel Bhusri, Workday (94%)
  • Bill McDermott & Jim Hagemann Snabe, SAP (93%)
  • Marc Benioff, Salesforce (93%)
  • David Friend, Carbonite (93%)

Roundup Of Cloud Computing And Enterprise Software Predictions For 2014

cloud computing predictions 2014 Alan Kay’s saying that the best way to predict the future is to create it resonates through the best cloud computing and enterprise software predictions for 2014. Constraints that held start-ups back from delivering sophisticated new apps and services are disappearing fast.  The dynamics of one of my favorite books, The Innovator’s Dilemma by Clayton Christensen, are in full force across the cloud and enterprise landscape.

There are many predictions being generated right now and instead of writing yet another set,  I’m providing a listing of those that are the most interesting and thought-provoking. They are listed below:

  • 10 Cloud Computing Predictions for 2014 – In-depth analysis of ten predictions including how more companies will realize they are really in the software business, private cloud computing having a moment of truth and continued adoption of cloud brokerages.  This set of predictions is an interesting read and provides useful insight.  I’d just add that as application developers go, so goes an industry, a point Bernard Golden refers to in this post.
  • Analytics Eats the World in 2014 – George Mathew of Alteryx is one of the most driven people I’ve ever met about analytics programming and development.  He’s very focused on breaking down constraints that hold analysts back from getting more value from their data. His predictions provide insight into how business analysts’ roles are changing based on rapid advances in analytics app development, model development and use.
  • Changing Cloud Scapes in 2014 – Jeff Kaplan, Managing Director of THINKstrategies provides ten insightful predictions regarding the continued adoption of cloud computing platforms in the enterprise.  His fourth prediction, “Although horizontal cloud solutions will continue to experience significant growth, vertical market solutions aimed at specific industries will grow even more rapidly” is starting to emerge today.  The recent success of Veeva Systems supports his prediction and points to next year seeing more vertical market solutions being successfully launched.
  • Cloud computing experts forecast the market climate in 2014 – Excellent summary of seven cloud computer experts’ predictions for 2014 including Mark Eisenberg, Roger Jennings, Paul Korzeniowski, David S. Linthicum, Tom Nolle, Dan Sullivan and Mark Szynaka.  Highlights include IDC analysts predicting the “Over the 2013 to 2017 forecast period, public IT cloud services will have a compound annual growth rate [CAGR] of 23.5%, five times that of the IT industry as a whole,” and PaaS will lead IaaS and SaaS with a CAGR of 29.7%. What’s useful about these set of predictions is the breadth of expertise reflected in market statistics, market and technology projections and insights shared.
  • Cloud Computing Predictions for 2014: Cloud Joins The Formal IT Portfolio – James Staten of Forrester Research has compiled an excellent series of predictions for the year with emphasis on security and SaaS becoming the de facto choice for new applications.  While he hasn’t quoted adoption figures of SaaS relative to on-premise, he does point out that Forrester believes HCM, CRM and collaboration will be the leading categories of SaaS apps in 2014.
  • My One Big Fat Cloud Computing Prediction for 2014 – I have been following the industry analysis, writing and research of Joe McKendrick for years based on the excellent insight he provides.  Joe predicts that cloud computing is set to become mainstream computing, period.  He cites Cisco’s research showing the majority of data center will be cloud-based and shares his perspective of the market.  Joe has an innate sense of how enterprises adopt and use technology and this post reflects that expertise.
  • SaaS predictions for 2014 – Chris Kanaracus is predicting that multitenancy will fade away as a major concern in SaaS, geographic depth of coverage will accelerate with cloud vendors announcing new data center openings around the world, and more vertical market adoption of SaaS.  He also prefaces his predictions with the Gartner forecast for SaaS (software as a service) quoting their figures of the total market will toping $22 billion through 2015, up from more than $14 billion in 2012.
  • Top Predictions about Software Companies in 2014 – In-depth analysis and predictions of which companies are going to be the most interesting to watch in 2014 and predictions regarding the enterprise software landscape.  This post provides a great overview of how industry veterans see enterprise software changing as a result of cloud computing as well.
  • Troubling, Challenging 2014 ERP Predictions – Brian Sommer’s predictions are the most thought-provoking and honest of any written so far this year. He writes “for an ERP vendor to sell CX (customer experience) software and then mistreat their own customers so badly is more than ironic (or moronic). It’s a death wish.  Yet, it happens.”  If there is only one set of predictions you read from this list, be sure to read this set.
  • What Should CMOs Do In 2014? IDC’s Top Ten Predictions – Gil Press provides in-depth analysis of IDC’s predictions of how the role of CMO will change in 2014.  He’s summarized the key points of the recent webinar including market forecasts from IDC, providing his insight and expertise in this post.  IDC is predicting that digital marketing investment will exceed 50% of total program budget by 2016, up from 39% in 2013 and that by the end of 2014, 60% of CMOs will have a formal recruiting process for marketers with data skills.

Top Ten Cloud Computing Skills Recruiters Search For

cloud-computing-jobsI recently had the opportunity to speak with Jennifer Bewley and Rachel Ceccarelli of Dice.com regarding the trends they are seeing in cloud computing recruiters’ searched-for terms on their sites.  They’re seeing exponential growth in cloud computing-related job listings today and provided an analysis of the top ten cloud computing skills recruiters are searching for.

From just 13 cloud computing-related jobs listed in May, 2008, their site has over 5,000 today.  The following graphic shows the growth in cloud computing job listings on their site over time.

 

The following are the top ten cloud computing skills searched for on Dice.com as of today:

  • Linux operating system
  • Chef – The open-source systems management and cloud infrastructure automation framework
  • Puppet - IT automation software that helps system administrators manage infrastructure throughout its lifecycle, from provisioning and configuration to orchestration and reporting
  • Cloud, Legacy System and IT Consulting
  • SaaS Programming – Java is the number one search term on the Dice.com site and is a common programming language cited in these searches.
  • Python
  • Perl
  • DevOps
  • Shell scripting
  • Ruby on Rails

Getting A 360-Degree View Of Potential Candidates

They also demonstrated Open Web, a unique new web application in beta right now that has the ability to aggregate all social networks, keywords, and published experience of technical professionals.  The accuracy and speed of Open Web is impressive; it’s been in beta since January and responds like a production-ready app.  Jennifer and Rachel mentioned that recruiters using Open Web today are seeing 30% response rates to their queries to in-demand technical professionals.

What’s unique about Open Web is that it provides a 360-degree view of potential candidates, including all social media they participate in, in addition to discussion boards and favorited or liked sites on Facebook. The following is what Open Web looks like today:

Bottom line:  Recruiting analytics and tools online are accelerating quickly, making it possible for companies searching for cloud computing talent to find it quicker than ever before.  For those searching for a job in the field, making every aspect of your online presence reflect cloud computing expertise can make you stand out in recruiter’s searches.

Note: Dice.com isn’t now and has never been a client. I chose to write this post to serve readers who frequently ask me to research hiring trends in cloud computing.

Top 12 Sites For Free Cloud Computing & Enterprise Software Research

campusOne of the most common questions I get from students is where they can find free cloud computing and enterprise software research.

Few if any of my students work for companies who have subscriptions with the top analyst firms however.  A small group of students are working on a start-up on the side and want to absorb as much market data as they can.

Many of my former students are also in IT management roles, and when they become interested in a specific cloud computing or enterprise topic over time, they write me and ask if I have any data on their subject of interest.  I keep the following list updated from them too.   To serve all these students I’ve been adding to the list shown below for a number of years. None of these companies are current or past clients and I hold no equity positions in any of them.

The requests are so prevalent in global competitive strategy courses I distribute this list at the beginning of the semester with the following disclaimers.

  • Many of the cloud computing and enterprise software companies pay to have white papers written and research done.  Writing white papers and doing research for an enterprise software vendor client is a very lucrative business for many industry analyst firms.  Ethical industry analysts will often insist that a disclaimer be included in the white paper and on the website stating that they and their firms were hired to write the paper or do the research and publish the report.
  • The reports are intellectual property of the firms publishing them.  Enterprise software vendors often pay tens of thousands of dollars at a minimum for reprint rights and the right to provide them on their websites.  I advise my students to seek out the copyright and quote policies of the research firm of interest if they plan on re-using the graphics in any published materials or in their blog posts.  One for example, the Gartner Copyright and Quote Policy is shown here.
  • Pay attention to the methodologies used in each report and realize they change over time.  This is especially the case with the  Gartner Magic Quadrant and MarketScopes. Gartner has been very active this year in refining the Magic Quadrant methodology for example.

The following are the list of cloud computing and enterprise software vendor sites that offer free downloads of cloud computing and enterprise software research:

  • Amazon Web Services – Amazon has purchased re-print rights to the Gartner Magic Quadrant for Cloud Infrastructure as a Service written by Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes published on August, 19, 2013 in addition to the latest reports from Forrester on enterprise public cloud platforms and enterprise cloud databases. Link:    https://aws.amazon.com/resources/analyst-reports/
  • BMC Software – Many free reports from Gartner, Forrester, The 451 Group and other research firms covering advanced performance analytics (APA), cloud computing, IT Service Management and long-term technology trends. Link: http://www.bmc.com/industry-analysts/reports/
  • Computer Associates – An extensive collection of cloud computing and enterprise software research organized into the following categories: cloud; data management; energy and sustainability management; IT automation; IT security; IT service management; mainframe; project and portfolio management; service assurance and virtual organizations.  CA requires opt-in on the latest research as they use this site as part of their lead generation strategy.  Link: http://www.ca.com/us/collateral/industry-analyst-reports.aspx
  • Cisco Systems -  Data Center and Virtualization; includes the latest Current Analysis, Forrester, Gartner, IDC, Lippis and Yankee Group research reports covering Big Data, blade servers, cloud computing, Hadoop, unified data centers and many other topics.  Be sure to click across the Computing, Network, Orchestration/Automation,  and Network Services tabs to find additional research:   Link: http://www.cisco.com/en/US/solutions/ns340/ns857/ns156/ns1094/analyst_reports.html
  • Hewlett-Packard – HP has invested primarily in networking-related analyst research including the latest studies and market frameworks from Forrester, Gartner, IDC and Infonetics Research.  Link: http://h17007.www1.hp.com/us/en/networking/ar/index.aspx#.Uhp-ERufg-J
  • Intel – Organized around the topic of designing a data center for the cloud, Intel is providing a series of research studies, reports, white papers and videos that provide insights into virtualization, networking, mobility and Intel-based servers running cloud architectures.  Link:  http://www.intel.com/content/www/us/en/cloud-computing/cloud-computing-analyst-reports.html
  • Microsoft – Balancing the need to support their enterprise applications today and create demand for cloud-based initiatives now and in the future, Microsoft’s series of analyst reports reflect their evolving business model.  Microsoft has licensed the latest research from Enterprise Strategy Group (ESDG), Forrester, Gartner, IDC, Ovum, Yankee Group and others listed on this site. Link: https://www.microsoft.com/en-us/news/itanalyst/
  • Oracle - The most comprehensive collection of industry analyst research online for any enterprise software vendor, Oracle has hundreds of research reports available for viewing under their reprint licenses for free, and also for download.  The reports are organized into corporate, infrastructure, systems, services, solutions, industries, enterprise applications and regions.     Link: http://www.oracle.com/us/corporate/analystreports/index.html
  • Progress Software – Extensive collection of research from Bloor, Forrester, Gartner, IDC, Tabb Group, Ovum and other research firms are available for download from this site. Link:  http://www.progress.com/en/inthenews/analyst-reports.html
  • SAS – The most extensive and well-organized online collection of analyst research on analytics and business intelligence (BI) available, SAS makes research available from fifteen analyst firms across six industries on this area of their website.  You can find the SAS Analyst Viewpoints section of their website here: http://www.sas.com/news/analysts/
  • Symantec – Provides downloadable analyst reports in the areas of risk and compliance, endpoint security and management, information and identity protection, messaging security, backup and archiving, storage and availability management, services and emerging trends.  ESG, Info-Tech Research Group, Forrester, Gartner and IDC reports are on this page for download. Link: http://www.symantec.com/about/industryanalysts/analystreports.jsp
  • Teradata – Extensive collection of industry analysis and research organized into the sections of Active Data Warehousing, Active Enterprise Intelligence, Enterprise Data Warehousing, Teradata Analytical Ecosystem and Teradata Integration Analytics.  The latest market frameworks from Gartner, Forrester, IDC and other research firms are available for download.  Link:   http://www.teradata.com/analyst-reports/

North Bridge Venture Partners Future Of Cloud Computing Survey: SaaS Still The Dominant Cloud Platform

6-19-2013-4-19-15-AM-300x223North Bridge Venture Partners and GigaOM Research released the results of their third annual Future Of Cloud Computing Survey today, providing a glimpse into cloud computing adoption trends, inhibitors and drivers of long-term growth.

This year’s survey included 855 respondents selected across business users, IT decision makers and cloud platform and application vendors.  North Bridge and GigaOM Research report that a third of respondents are C-level executives in their organizations.

You can view a copy of the report results here from SlideShare.

The following are key take-aways from the report:

  • Cloud adoption continued to rise in 2013, with 75%  of those surveyed reporting the use of some sort of cloud platform – up from 67% last year. That growth is consistent with forecasts from GigaOM Research, which expects the total worldwide addressable market for cloud computing to reach $158.8B by 2014, an increase of 126.5% from 2011.  The survey also shows significant growth is yet to come in SaaS adoption for business systems and IT management.

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  • 63% of those surveyed report Software-as-a-Service (SaaS) is in use in their companies, growing 15% over 2012.  45% are using Infrastructure-as-a-Service (IaaS) today, attaining a growth of 29% from last year.  Platform-as-a-Service (PaaS) is expected to grow the fastest over the next five years, with 72% of respondents saying they expect to use PaaS in their organizations.
  • The survey results also included cloud segments and overall growth analysis forecasts from 451 Research Market Monitor Report.  The graphic showing CAGRs by IaaS, PaaS and SaaS is shown below, with comparisons of 2012 results and 2016 market forecasts.

  • 52% of organizations are using cloud-based applications to advance business priorities, compared with 36% that use applications that advance IT initiatives.
  • CRM, marketing (including marketing automation) social business & collaboration and file sharing cloud-based applications are in use by more than 50% of all organizations in the sample.
  • North Bridge Venture Partners reports that cloud investments by venture capitalists totaled $1.6B in 2010, increasing to $2.4B in 2011.  Investments in 2012 dropped to $1.8B and through May, 2013, venture-based investments in cloud computing application and services providers totaled $281M.  Subscription fee-based business models dominate with 77% of cloud vendors relying on this strategy.
  • Gaining greater business agility (54.5%), scalability (54.3%) and cost (48%) are the three main drivers of cloud adoption today according to the survey results.  Mobility was mentioned by 25% of respondents as a major driver for adopting cloud applications and platforms, behind cost.
  • Security concerns (46%), vendor lock-in (35%), interoperability (27%), concerns over reliability (22.3%) and complexity (21%) are the top inhibitors to cloud adoption.  Regulatory compliance (30%) and privacy (26%) are he next most frequently mentioned inhibitors to cloud computing adoption according to the survey.
  • 39% expect to increase training, and 17% expect to hire outside resources as a result of increased cloud adoption.
  • Amazon (14.3%), Microsoft (10.96%) and Google (7.88%) are the three most used cloud platforms by the organizations who responded to the survey.

Amazon Web Services Leading Cloud Infrastructure as a Service App Development

IaaS Magic QuadrantEvangelizing development on any cloud computing or enterprise platform is challenging, costly and takes a unique skill set that can educate, persuade, sell and serve developers at the same time.

The companies who excel at this exude technical prowess and as a result earn and keep trust.  For Cloud Infrastructure as a Service (IaaS) platform providers, getting developers, both at partner companies and at enterprise customers to build applications, is a critical catalyst for future growth.

Assessing Cloud Infrastructure as a Service Providers with Inquiry Analytics  

Using the Magic Quadrant for Cloud Infrastructure as a Service, 2012 published October 18, 2012 as the baseline and shown above from Rueven Cohen’s excellent post last year, the five leaders were compared using the Inquiry Analytics Statistics: Topic and Vendor Mind Share for Software, 4Q12 published March 13th of this year.  Analyzing the five leaders in the Magic Quadrant using Inquiry Analytics shows that Amazon Web Services (AWS) was 57.1% of inquiry share worldwide for application development  during the 4th quarter of 2012.

From 4th quarter 2011 to 4th quarter 2012, Amazon Web Services showed just over 10% inquiry gain against the other vendors listed as leaders in the quadrant.  Only five vendors can be compared at once using the Gartner Inquiry Analytics tool so the leaders were included in the comparison first.

cloud IaaS

A second pass through the Inquiry Analytics was done comparing Amazon Web Services to the other vendors in the quadrant.  AWS had 63.6% of inquiries in the application development category during the 4th quarter of 2012 compared to non-leader vendors in the quadrant who were listed in the Inquiry Analytics database.  It was surprising to find that a few of the vendors listed in the Cloud IaaS Magic Quadrant don’t have data available in the Inquiry Analytics Statistics: Topic and Vendor Mind Share for Software, 4Q12 indicating inquiries.  During this pass, Rackspace share of inquiries between the 4th quarter of 2011 to the 4th quarter of 2012 declined just over 5% and Dell declines approximately 2%.

Bottom line: The land grab for developers is accelerating on IaaS and will be a major factor in who establishes a long-term cloud platform for years to come.

Making Cloud Computing Pay

Relying on cloud computing strategies to free up dollars and time that can quickly be re-invested in product and service innovation emerged as the highest priority for respondents in a recent Rackspace survey.

While cost reductions were significant, the greatest contributions were seen in investments in innovation (48%), new product & service development (45%), and boosting sale efforts (38%).

Rackspace recently commissioned a study with market research firm Vanson Bourne, who surveyed 1,300 organizations in the UK and the U.S., including 1,000 Small & Medium Enterprises (SME) and 300 enterprises with 1,000 employees or more.  The methodology included coverage of Financial Services, Retail, IT/Technology, Manufacturing, Business and Professional Services, Media, Logistics, and Mobile Telecommunications sectors, with a further small representative group from other sectors.   Rackspace also partners often with the Manchester Business School to complete qualitative research, which they also did on this project.  You can find an executive summary of the study here, Cloud Computing Research.   In February, Joe McKendrick’s post titled Cloud Computing Boosts Next Generation of Startups, Survey Shows covered the findings from this survey from a start-up standpoint.

Key take-aways from the research include the following:

  • In March, Rackspace made a subset of the results available in Microsoft Excel format, titled the Vanson Bourne Cloud Barometer Data – IT Skills.   Thank you Rachel Romoff  and the Rackspace team for responding so quickly to my request for links to the data set and insights into how the study was completed.
  • 62% of respondents state that cloud computing is enabling their organizations to invest more money back into their businesses.  Cloud computing improved profits by an average increase of 22% according to the study.  Marketing benefits most 
    significantly from cloud computing investment, as is shown in the table below. I’ve asked for clarification from Vanson Bourne with regard to sales being rolled up into the marketing figure and will update this post when I get a response.
  • Average cost reduction is 23% due to cloud computing savings on infrastructure, based on the combined results of UK and US-based respondent analysis.
  • 62% of firms have invested funds saved due to cloud computing efficiencies back into their businesses, increasing total investment by an average of 23%.  The following table from the study shows the prioritization of investments being made based on funds saved from cloud computing:
  • 56% of organizations are using open source technology as part of their cloud strategies and 86% say that using open source cloud technology boosts their business’ ability to innovate.
  • 68% say their organizations are increasing their use of open source cloud computing technology due to the lower cost of ownership (58%) and the greater stability and robustness of it as a platform (45%).
  • Manufacturers are saving $774,000 (£506K) per using cloud providers according to the study.  Presented below is a table from the Vanson Bourne study comparing industries.

Bottom line:  Using the cost and time savings from cloud computing to free up up resources for product innovation is giving these companies a long-term competitive advantage in the market.

How Cloud Computing Is Redefining the M&A Landscape

Cloud Computing M&AIn 2013, expect to see the pace of mergers and acquisitions for cloud computing, mobile and analytics technologies accelerate as software vendors look to fill gaps in their product and service strategies. This and other key insights of how cloud computing is reshaping the merger and acquisition landscape can be found in the latest Price Waterhouse Coopers (PwC) report published today.

The US Technology M&A insights: Analysis and Trends in US Technology M&A Activity 2013 provides an excellent overview of merger, acquisitions, private equity, divestures, cross-border transactions across the five key industry sectors.  The report, free for download, covers the Internet, IT Services, hardware and networking, software, and semiconductor sectors.

Enterprise Software Players: In Search of Sticky Revenue and Higher Margins

The major catalysts driving cloud deals forward in 2013 are enterprise software companies’ need to redefine their business models and find sources of sticky revenue that can replace for many of them, dwindling maintenance revenue streams.  Knowing that the annuity model of cloud computing works best with multiyear payments required at the beginning of a customer engagement, enterprise software companies are looking to strengthen this area of their product portfolios.  Third, the faster cloud acquisitions can be integrated into their legacy systems, the more upsell can be achieved with their large installed bases of customers.  The greatest challenge many of them face however is selling entirely new cloud applications to entirely new customers they’ve never sold to before.  The potential of these entirely new markets however is going to be a valuation multiplier in 2013 and beyond.

Here are the key take-aways from PwC’s report:

  • Software and Internet deals represented 57% of transactions closed in 2012, a figure that PwC has seen steadily grow over the last two years. Cumulative value for software and Internet deals represented 53% of total 2012 deal value, an increase from 51% in 2011. Software deals represented over a third of 2012 technology deals, generating 35% of deal volume and 36% of deal value for the year   A comparison of both years and technology sectors are shown in the following graphic:

Figure 1 PWC Report

  • PwC takes a cautionary, conservative tone in this report showing how overall IT spending growth finished the year at an anemic 1.2% while technology deal volumes and values dropped by just under 20% from the prior year.
  • The report cites Gartner and Forrester’s optimistic IT spending forecasts for IT growth predicting a recovery in 2013 followed by accelerating growth in 2014 according to Forrester.
  • PwC is seeing SaaS, mobile devices, analytics and Big Data as the drivers of current and future M&A growth and a fundamental shift in deal volumes to software and Internet deals based on these technologies.  The report says the most promising areas of M&A activity in 2013 are mobile application development start-ups who have the intellectual property it would take years for enterprise software companies to create on their own.
  • Analytics will move from being a differentiator to the cost of doing business, a key point made in the PwC analysis.  PwC claims that analytics M&A will accelerate across all enterprise software vendors as they seek to fill gaps in their product and service strategies, and position themselves for growth in specific areas of the emerging industries using Big Data.
  • PwC reports that monthly deal volumes for software remained relatively even throughout 2012, hovering at 8-9 transactions per month and averaging just over 20 per quarter. The average deal value of $433M for 2012 was slightly lower than 2011 levels of $438M but an increase in the number of deals in excess of $500M helped to keep average deal values high. The report also shows how 2012 saw 18 deals (21% of volume) in excess of $500M closed, the majority of which closed in the latter half of the year. Fourteen deals greater than $1B closed in 2012, an increase of 8 deals (133%) over 2011.  The following is a graphic comparing software sector deals by volume and value:
Figure 2 PWC Report

 Bottom line: The land grab is on for intellectual property in the fields of mobile application development, analytics and cloud computing as enterprise software vendors look to fill gaps in their product and service strategies.

The Best Cloud Companies and CEOs to Work For in 2013

???????????????Hiring great people and creating a culture of achievement that is fun, focused and able to get challenging tasks done is not an easy task.

Keeping that culture strong and focused on the customer takes a unique leader that consistently earns trust and respect.  Those are the qualities I think of whenever I’m asked to recommend the best cloud computing companies to work for.  Using the scores from Glassdoor.com I’ve put together the table below comparing cloud computing companies and when available, the percentage of employees who approve of their CEO.

If you’re not familiar with Glassdoor, it’s a website that gives employees the chance to rate their companies and CEOs anonymously, along with reporting salaries.  Friends in the Human Resources community tell me it’s an effective recruitment site as well.

Cloud computing companies are sorted based on the percentage of employees would recommend their company to a friend.  I added in CEO scores to get a sense of which companies have a significant gap between morale and the perception of the CEO.  As of today according to employee rankings, Microsoft has the largest gap between percentage of employees who would recommend the company to a friend (77%) and  CEO rating (48%).

Glassdoor rankings for cloud computing

The highest rated CEOs you’d want to work for based on their Glassdoor ratings are as follows, with their ratings shown as of today:

Jyoti Bansal of AppDynamics (100%)

Drew Houston, Dropbox (100%)

Aneel Bhursi, Workday (100%)

Scott Scherr, Ultimate Software (97%)

Jim Whitehurst, Red Hat (97%)

Larry Page, Google (95%)

Aaron Levie, Box (94%)

Marc Benioff, Salesforce (93%)

Tom Georgens, NetApp (92%)

Mark Templeton, Citrix Systems (91%)

Bill McDermott & Jim Hagemann Snabe, SAP (90%)

Cloud Computing and Enterprise Software Forecast Update, 2012

The latest round of cloud computing and enterprise software forecasts reflect the growing influence of analytics, legacy systems integration, mobility and security on IT buyer’s decisions.

Bain & Company and Gartner have moved beyond aggregate forecasts, and are beginning to forecast by cloud and SaaS adoption stage.  SAP is using the Bain adoption model in their vertical market presentations today.

Despite the predictions of the demise of enterprise software, forecasts and sales cycles I’ve been involved with indicate market growth.  Mobility and cloud computing are the catalysts of rejuvenation in many enterprise application areas, and are accelerating sales cycles.  Presented in this roundup are market sizes, forecasts and compound annual growth rates (CAGRS) for ten enterprise software segments.

Key take-aways from the latest cloud computing and enterprise software forecasts are provided below:

  • Public and private cloud computing will be strong catalysts of server growth through 2015.  IDC reports that $5.2B in worldwide server revenue was generated in 2011 or 885,000 units sold.  IDC is forecasting a $9.4B global market by 2015, resulting in 1.8 million servers sold. Source:  IDC Worldwide Enterprise Server Cloud Computing 2011–2015 http://www.idc.com/getdoc.jsp?containerId=228916 
  • IDC reports that enterprise cloud application revenues reached $22.9B in 2011 and is projected reach $67.3B by 2016, attaining a CAGR of 24%.  IDC also predicts that by 2106, $1 of every $5 will be spent on cloud-based software and infrastructure. Report, Worldwide SaaS and Cloud Software 2012–2016 Forecast and 2011 Vendor Shares, Link: http://www.idc.com/getdoc.jsp?containerId=236184
  • 11% of companies are transformational, early adopters of cloud computing, attaining 44% adoption (as defined by % of MIPS) in 2010, growing to 49% in 2013.  This same segment will reduce their reliance on traditional, on-premise software from 34% to 30% in the same period according to Bain & Company’s cloud computing survey results shown below.  SAP is using this adopter-based model in their vertical market presentations, an example of which is shown here.

  • The global Platform-as-a-Service (PaaS) market is growing from $900M in 2011 to $2.9B in 2016, achieving a 26.6% CAGR.  At this projected rate, PaaS will generate an average of $360M a year in revenue between 2011 and 2016.  Gartner projects that the largest segments will be Application Platform Services (aPaaS) which generated 35% of total PaaS spending in 2011, followed by cloud application lifecycle services (12.5).    Source: Market Trends: Platform as a Service, Worldwide, 2012-2016, 2H12 Update Published: 5 October 2012 ID:G00239236.

  • The three most popular net-new SaaS solutions deployed are CRM (49%), Enterprise Content Management (ECM) (37%) and Digital Content Creation (35%).  The three most-replaced on-premise applications are Supply Chain Management (SCM) (35%), Web Conferencing, teaming platforms and social software suites (34%) and Project & Portfolio Management (PPM (33%). The following graphic shows the full distribution of responses. Source: User Survey Analysis: Using Cloud Services for Mission-Critical Applications Published: 28 September 2012

  •  In 2011, the worldwide enterprise application software market generated $115.1B in revenue, and is projected to grow to $157.6B by 2016, attaining a 6.5% CAGR in the forecast period. Gartner reports that 38% of worldwide enterprise software revenue is from maintenance and technical support; 17% from subscription payments; and 56% from ongoing revenue including new purchases.  An analysis of the ten enterprise software markets and their relative size and growth are shown in the figure below along with a table showing relative rates of growth from 2011 to 2016. Source: Forecast: Enterprise Software Markets, Worldwide, 2011-2016, 3Q12 Update Published: 12 September 2012 ID:G00234766

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