Publisher: Renub Research Published: September, 2010

Report Details
This report Cloud Computing SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A, Investments, and Future Forecast, Worldwide falls into ten categories. The First Category is Executive Summary. The Second Category describes the basic concepts of Cloud Computing and Cloud benefits. The Third Category analyzes the Political, Economical, Social, Technological, Environmental and Legal (PESTEL) aspects of Worldwide Cloud Computing. The Fourth and Fifth Category emphasise on the worldwide market size and forecasted size of Cloud Computing, and its part SaaS, PaaS and IaaS. It also explains the market size and forecast market size of all Cloud applications, which comes under the SaaS, PaaS and IaaS (see fifth category in table of contents for further details). The Sixth Category talks about the Cloud Computing drivers (Investment in Cloud Computing, Mergers & Acquisitions in Cloud Computing, Venture Capital funding in Cloud Computing, and role of Social media in Cloud Computing). The Seventh Category of this report explains all the challenges of the Cloud Computing. The Eighth Category deals in Cloud Computing through mobile phones, its driving factors and restraining factors. The Ninth Category deals in the initiatives taken by the different country government in Cloud Computing world over. The last Tenth Category explains the key players of Cloud Computing, which is explained on the basis of Cloud application providers. Market Overview A major shift in the way companies obtain software and computing capacity is under way as more companies tap into Web-based applications. Cloud Computing refers to both the applications delivered as services over the Internet and the hardware and systems software in the data centers that provide those services. In other words Cloud Computing is accessing computer resources provided through networks rather than running software or storing data on a local computer. A host of providers including Amazon (AMZN), Salesforce.com (CRM), IBM (IBM), Oracle (ORCL), and Microsoft are helping corporate clients use the Internet to tap into everything from extra server space to software that helps manage customer relationships. Worldwide Cloud Computing market is continuing to grow at a rapid rate and it is expected to cross US$ 25 Billion by the end of 2013. The different segments of the Cloud Computing

market (SaaS, PaaS, IaaS) show different maturities and adoption levels. The various segments within the SaaS market will grow at a different rate. The fastest growing segments in SasS are Content, Communications and Collaboration (CCC), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM). PaaS generates market revenue of approximately 1.5% of the total application development market in the year 2008. IaaS is increasingly becoming popular with computing resources integrating as web service. The IaaS service providers can support a large number of customers with a single infrastructure. Research Highlights

Worldwide Cloud Computing market is growing at a rapid rate and it is expected to cross US$ 25 Billion by the end of 2013 The Software as a Service market is growing at 17.04% and crossed US$ 9 Billion by the end of year 2009 Enterprise Resource Planning (ERP) and Content, Communications and Collaboration (CCC) segment together contributed 58% to the SaaS market in 2009 Customer Relationship Management (CRM) market crossed US$ 2 Billion in 2009 SaaS based Enterprise Resource Planning (ERP) sales has crossed US$ 1 Billion by the end of year 2009 Supply Chain Management (SCM) market in SaaS has crossed US$ 850 Million by 2009 Office Suites market size is expected to increase at a CAGR value of 55.02% for the period spanning 2010 - 2013 It is expected that Platform as a Service (PaaS) market size will reach US$ 400 Million by the year 2013 It is expected that the Infrastructure as a Service (IaaS) market will increase at a CAGR value of 52.53% for the period spanning 2010 - 2013 Types of Investments, Mergers & Acquisitions & Venture Capital Funding in Cloud Computing Sector IBM strives to become a market leader in the Cloud Computing; has invested more than US$ 800 Million in the different segments of the Cloud Computing. Security, Performance and Availability are major challenges in the Cloud Computing

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It is expected that the Mobile Cloud Computing subscribers will increase at a CAGR value of 69.02% for the period spanning 2010 - 2014 US Federal IT budget devoted to Cloud Computing Spending will reach nearly US$ 1 Billion by 2014 Cloud Computing efforts by governments in United Kingdom (U.K), European Union (EU), Japan, China etc The number of data centre serves growing on average 9% each year during 2002 and is expected to continue till 2020

Key Players Analyzed This section covers the key facts about the major players currently operating in the Global Internet industry. Customer Relationship Management (CRM): Salesfores.com, Oracle.com and RightNow Enterprise Resource Planning (ERP): SAP, NetSuite and Workday Supply Chain Management (SCM): Descartes, Ariba and Ketera Content, Communication and Collaboration (CCC): Cisco WebEx, SumTotal and IBM LotusLive Digital Content Creation (DCC): YouTube and Adobe Integration as a Service: Pervasive, Cast Iron Systems and Boomi Platform as a Service: Force.com, Google App Engine and Azure Backup and Storage Service: Amazon Web Service (S3) and RightScale Compute Services: Amazon Web Services (EC2), GoGrid and SkyTap Data Sources Information and data in this report has been collected from various printable and nonprintable sources like Trade Journals, White papers, Online paid databases, News websites, Government Agencies, Magazines, Newspapers and Trade associations.

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Published By

Renub Research
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Cloud Computing SaaS, PaaS, IaaS Market, Mobile Cloud Computing, M&A, Investments, and Future Forecast, Worldwide Renub Research, 2010 Edition 1.0 All rights reserved. This publication is protected by copyright. No part of it may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic mechanical, photocopying, recording or otherwise without the prior written permission of the publishers

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Table of Contents
1. 2. Executive Summary Cloud Computing Overview 2.1 2.2 2.3 The History of Cloud Computing What is Cloud Computing? Cloud Service Model Cloud Software as a Service (SaaS) Cloud Platform as a Service (PaaS) Cloud Infrastructure as a Service (IaaS)

2.3.1 2.3.2 2.3.3 2.4 3.

Benefits of the Cloud Computing

PESTEL Framework Analysis of Cloud Computing 3.1 3.2 3.3 3.4 3.5 3.6 Political Analysis of Cloud Computing Economical Analysis of Cloud Computing Social Analysis of Cloud Computing Technological Analysis of Cloud Computing Environment Analysis of Cloud Computing Legal Issues of Cloud Computing

4.

Worldwide Cloud Computing 4.1 4.2 Cloud Computing Market Cloud Computing Market Forecast

5.

Cloud Computing Market Segmentation 5.1 5.2 Worldwide Software as a Service (SaaS) Market & Future Forecast Software as Service Segment Content, Communications and Collaboration (CCC) & Future Forecast Customer Relationship Management (CRM) Market & Future Forecast Enterprise Resource Planning (ERP) Market & Future Forecast Supply Chain Management (SCM) Market & Future Forecast Digital Content Creation (DCC) Market & Future Forecast Office Suites Market & Future Forecast

5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6

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5.3 5.4 5.5

Worldwide Platform as a Service (PaaS) Market & Future Forecast Worldwide Infrastructure as a Service (IaaS) Market & Future Forecast Infrastructure as a Service Segments Online Backup and Storage Market & Future Forecast

5.5.1 6.

Cloud Computing Drivers 6.1 6.2 Global Initiative in Cloud Computing Investment in Cloud Computing IBM Investment in Cloud Computing

6.2.1 6.3

Mergers & Acquisitions in Cloud Computing IBM Acquisitions Oracle Acquisitions Other Mergers & Acquisitions

6.3.1 6.3.2 6.3.3 6.4 6.5 7.

Venture Capital Funding in Cloud Computing Social Media & Cloud Computing

Roadblocks in Cloud Computing 7.1 Cloud Security Abuse & Nefarious use of Cloud Computing & its Impact Insure Interfaces and its impact on APIs Cloud Computing Malicious Insider & its Impact on Cloud Computing Shared Technology Issues & its Impact on Cloud Computing Data Loss & Leakage & its Impact on Cloud Computing Account or Service Hijacking & its Impact on Cloud Computing Unknown Risk Profile & its Impact on Cloud Computing

7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.2 7.3 7.4

Performance of the Cloud Computing Availability and Reliability of the Cloud Computing Lack of Transparency & Standardization across Large Players Approach to Overcome the Problem

7.4.1 8.

Mobile Cloud Computing 8.1 8.2 8.3 Mobile Cloud Computing Subscribers & Future Forecast Mobile Cloud Computing Market Forecast Mobile Cloud Computing Application

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8.3.1 8.3.2 8.4

Device Manufacturers & Mobile Cloud Computing Mobile Application Developers & Cloud Computing

Drivers of Mobile Cloud Computing Initiative in Mobile Cloud Computing by Operators HTML5 & Mobile Cloud Computing OMA Smartcard Web Server TokTok Technology

8.4.1 8.4.2 8.4.3 8.4.4 8.5

Challenges of Mobile Cloud Computing Challenge of Multiple Operating Systems When will Mobile Cloud Computing Really Take off?

8.5.1 8.5.2 9.

Cloud Computing in Government 9.1 Cloud Computing and E-Governance Cloud Computing in U.S. Government

9.1.1 9.2

Cloud Computing in European Governments Cloud Computing in Asia

9.2.1 10. 10.1

Key Players of Cloud Computing Customer Relationship Management (CRM) (SaaS) Salesforce.com Oracle.com RightNow

10.1.1 10.1.2 10.1.3 10.2

Enterprise Resource Planning (ERP) (SaaS) SAP NetSuite Workday

10.2.1 10.2.2 10.2.3 10.3

Supply Chain Management (SCM) (SaaS) Descartes Ariba Ketera

10.3.1 10.3.2 10.3.3 10.4

Content, Communication & Collaboration (CCC) (SaaS) Cisco WebEx SumTotal IBM LotusLive

10.4.1 10.4.2 10.4.3 10.5

Digital, Content Creation (DCC) (SaaS) You Tube Inc. Page 8 of 32

10.5.1

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10.5.2 10.6

Adobe

Integration as a Service (IaaS) Pervasive Cast Iron Systems Boomi

10.6.1 10.6.2 10.6.3 10.7

Platform as a Service (PaaS) Force.com Google App Engine Azure

10.7.1 10.7.2 10.7.3 10.8

Backup & Storage Service (IaaS) Amazon Web Service (S3) RightScale

10.8.1 10.8.2 10.9

Computer Service (IaaS) Amazon Web Services (EC2) Go Grid Sky Trap

10.9.1 10.9.2 10.9.3

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List of Figures:
Figure 3-1: Worldwide PEST Framework Analysis of Cloud Computing Figure 3-2: Worldwide (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (CO2), 2007 Figure 3-3: Worldwide Market Share of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (Percent), 2007 Figure 3-4: Worldwide Forecast of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide (CO2) Equivalent, 2020 Figure 3-5: Worldwide Forecast of Market Share of (Server Farms/Data Centers, Telecoms Infrastructure and Devices, PCs & Peripherals) Emissions in Metric Tonne Carbon Dioxide Equivalent (Percent), 2020 Figure 3-6: Worldwide Electricity Consumption (Billion KWh), 2007 Figure 3-7: Worldwide Electricity Consumption (Billion KWh), 2020 Figure 3-8: Worldwide Emissions in Metric Tonne Carbon Dioxide Equivalent, 2007 Figure 3-9: Worldwide Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage Share (%), 2007 Figure 3-10: Worldwide Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent, 2020 Figure 3-11: Worldwide Forecast for Emissions in Metric Tonne Carbon Dioxide Equivalent Percentage Share (%), 2020 Figure 4-1: Worldwide Cloud Computing Market (Billion US$) 2008 2009 Figure 4-2: Worldwide Forecast for Cloud Computing Market (Billion US$) 2010 2013 Figure 5-1: Worldwide Software as a Service (SaaS) Market (Billion US$), 2008 2009 Figure 5-2: Worldwide Forecast for Software as a Service (SaaS) Market 2010 2013 Figure 5-3: Worldwide Software as a Service (SaaS) Segments (Percent), 2009 Figure 5-4: Worldwide Content, Communications and Collaboration (CCC) Market (Million US$), 2008 2009 Figure 5-5: Worldwide Forecast for Content, Communications and Collaboration (CCC) Market (Million US$), 2010 2013 Figure 5-6: Worldwide Customer Relationship Management (CRM) Market (Million US$), 2008 2009 Figure 5-7: Worldwide Forecast of Customer Relationship Management (CRM) Market (Billion US$), 2010 2013 Figure 5-8: Worldwide CRM Vendors Market Share (Percent), 2008 Figure 5-9: Worldwide Enterprise Resource Planning (ERP) Market, Million US$), 2008 2009 .... Error! Bookmark not defined. Figure 5-10: Worldwide Forecast for Enterprise Resource Planning (ERP) Market (Billion US$), 2010 2013

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Figure 5-11: Worldwide Supply Chain Management (SCM) Market (Million US$), 2008 2009 Figure 5-12: Worldwide Supply Chain Management (SCM) Market Size Forecast (Billion US$), 2010 2013 Figure 5-13: Worldwide Digital Content Creation (DCC) Market (Million US$), 2008 2009 Figure 5-14: Worldwide Forecast of Digital Content Creation (DCC) Market, (Million US$), 2010 2013 Figure 5-15: Worldwide Office Suites Market (Million US$), 2008 2009 Figure 5-16: Worldwide Forecast of Office Suites Market (Million US$), 2010 2013 Figure 5-17: Worldwide Platform as a Service (PaaS) Market (Million US$), 2008 2009 Figure 5-18: World Wide Forecast for Platform as a Service (PaaS) Market (Million US$), 2010 2014 Figure 5-19: Worldwide Infrastructure as a Service (IaaS) Market (Million US$) 2008 - 2009 Figure 5-20: Worldwide Infrastructure as a Service (IaaS) Market Forecast 2010 2013 Figure 5-21: Worldwide Backup and Storage Market (Million US$) 2009 2010 Figure 5-22: Worldwide Forecast for Backup and Storage Market (Billion US$), 2011 2014 Figure 6-1: Worldwide Hype Cycle of Emerging Technologies, 2009 Figure 6-2: Worldwide Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM) Investment in Cloud Computing (Million US$), 2007 - May 2010 Figure 6-3: Worldwide IBM Investment in Cloud Computing (US$ Million): 2006 Jan 2010 Figure 6-4: IBM Acquisitions (SPSS, FileNet, Cognos) Value (Billion US$), 2006 - 2009 Figure 6-5: Oracle Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems, BEA Systems, People Soft) Value (Billion US$), 2004 - 2008 Figure 7-1: Worldwide Rate the Challenges / Issues in Cloud Computing Figure 8-1: Worldwide Mobile Cloud Computing Subscribers (Million) 2008 2009 Figure 8-2: Worldwide Mobile Cloud Computing Subscribers Forecast (Million) 2010 2014 Figure 9-1: USA Federal IT Spending & Future Forecast (Billion US$), 2007, 2009 & 2014 Figure 9-2: Worldwide Federal Cloud Computing Spending (Million US$), 2008 2009 Figure 9-3: Worldwide Forecast for Federal Cloud Computing Spending (Million US$), 2010 2014 Figure 9-4: Japan Japanese Governments Kasumigaseki Cloud

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List of Tables:
Table 3-1: Worldwide Comparatively Analysis of Assets and Expenses in Internal IT, Managed Service & Cloud Services (Number US$), 2009 Table 5-1: Worldwide Total CRM Software Vendor Revenue Estimates (Million US$, Percent Growth), 2007 - 2008 Table 6-1: Global Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com, Heroku, RightScale) (US$ Million), 2007 & 2008 Table 6-2: IBM Acquisitions 2006 2009 Table 6-3: Oracle Major Acquisitions 2004 2008 Table 6-4: Worldwide Mergers & Acquisitions in Cloud Computing (Million US$), 2002 - 2009 Table 6-5: Worldwide Younger Startup Companies Funding in Cloud Computing (Million US$), 2007 2009 Table 6-6: Worldwide 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009 Table 8-1: Worldwide Mobile Cloud Computing Market Forecast (Billion US$), 2015 Table 10-1: SalesForce.com Key Highlights Table 10-2: SalesForce.com Revenue & Year on Year Growth (Million US$; Percent), 2008 Table 10-3: Oracle Key Highlight Table 10-4: Oracle Revenue & Year on Year Growth (Million US$, Percent), 2008 Table 10-5: RightNow Key Highlight Table 10-6: RightNow Revenue & Year on Year Growth (Million US$, Percent), 2008 Table 10-7: SAP Key Highlight Table 10-8: SAP Revenue (Million US$), 2008 Table 10-9: NetSuite Key Highlight Table 10-10: NetSuite Revenue & Year on Year Growth (Million US$), 2008 Table 10-11: Workday Key Highlight Table 10-12: Workday Revenue & Year on Year Growth (Million US$), 2008 Table 10-13: Descartes Key Highlight Table 10-14: Descartes Revenue & Year on Year Growth (Million US$), 2008 Table 10-15: Ariba Key Highlight Table 10-16: Ariba Revenue & Year on Year Growth (Million US$), 2008 Table 10-17: Ketera Key Highlight Table 10-18: Ketera Revenue (Million US$), 2008 Table 10-19: Cisco WebEx Key Highlight Table 10-20: Cisco WebEx Revenue (Million US$), 2008 Table 10-21: SumTotal Key Highlights Table 10-22: SumTotal Revenue & Year on Year Growth (Million US$), 2008

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Table 10-23: IBM LotusLive Key Highlights Table 10-24: YouTube Key Highlights Table 10-25: YouTube Revenue & Year on Year Growth (Million US$), 2008 Table 10-26: Adobe key Highlight Table 10-27: Pervasive Key Highlight Table 10-28: Pervasive Revenue & Year on Year Growth (Million US$), 2008 Table 10-29: Cast Iron Key Highlight Table 10-30: Cast Iron Revenue & Year on Year Growth (Million US$), 2008 Table 10-31: Boomi Key Highlight Table 10-32: Boomi Revenue & Year on Year Growth (Million US$), 2008 Table 10-33: Force.com Key Highlight Table 10-34: Force.com Revenue & Year on Year Growth (Million US$), 2008 Table 10-35: Google Apps Engine Key Highlight Table 10-36: Amazon S3 Key Highlights Table 10-37: RightScale Key Highlight Table 10-38: Amazon EC2 Key Highlight Table 10-39: GoGrid Key Highlight Table 10-40: SkyTap Key Highlight

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3. PESTEL Framework Analysis of Cloud Computing

3.1 Political Analysis of Cloud Computing
The Cloud becomes subject to complex geopolitical issues, and providers are pressed to satisfy myriad regulatory environments in order to deliver service to a global market. This dates back to the early days of the Internet, when libertarian thinkers felt that cyberspace was a distinct place calling for laws and legal institutions of its own. In order for Cloud Computing to continue to evolve into the borderless, unbiased global tool that it could be, it needs to be separated from politics. Currently, countries like China and the United States are making laws that are having a negative ripple effect on the development of the global cloud, and thus a negative effect on the enrichment of the global economy. Take, for example, the United States. Its Patriot Act is having far reaching consequences to companies operating under its umbrella. Canada has recently asked that its government will not use computers in the global network that are operating within United States borders, because the Canadian data stored on those computers could conceivably be negatively impacted by the repercussions of the Patriot Act. Despite efforts (such as US-EU Safe Harbor) to harmonize the legal environment, as of 2009, providers such as Amazon Web Services cater to major markets (typically the United States and the European Union) by deploying local infrastructure and allowing customers to select availability zones. Nonetheless, concerns persist about security and privacy from individual through governmental levels e.g., the USA PATRIOT Act, the use of national security letters, and the Electronic Communications Privacy Acts Stored Communications Act. Politics are affecting the scalability of the internet, the availability of internet access, the free flow of information and the cloud based global economy on a daily basis.

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4. Worldwide Cloud Computing

4.1 Cloud Computing Market
Worldwide Cloud Computing services revenue is continuing to grow at a rapid rate; with it expected to top US$ 11.28 Billion in 2009.The market of Cloud Computing in the previous year was worth US$ 9.10 Billion. The lions share of the market will be made up of cloud-based advertising for the next few years. The different segments of the Cloud Computing market (SaaS, PaaS, IaaS) show different maturities and adoption levels. While SaaS definitely represents the largest portion of the Cloud Computing market (89%), PaaS and IaaS have higher growth potential.
Figure 4-1: Worldwide Cloud Computing Market (Billion US$) 2008 2009 12 10 Billion US$ 8 6 4 2 0 2008 2009E 9.10 11.28

Source: Gartner, Renub Research Estimates

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5. Cloud Computing Market Segmentation

Cloud Computing market segmentation is based on the Cloud Computing Models in which each module have well growth rate and adoption rate by the companies.

5.1 Worldwide Software as a Service (SaaS) Market & Future Forecast

The SaaS market has reached approximately US$ 9.48 Billion at the end of 2009. Previous year (2008) worldwide SaaS market size was US$ 8.1 Billion. The adoption of SaaS continues to grow and evolve within the enterprise application markets as tighter capital budgets in the current economic environment demand leaner alternatives, popularity increases, and interest for platform as a service and Cloud Computing grows.
Figure 5-1: Worldwide Software as a Service (SaaS) Market (Billion US$), 2008 2009 10.00 9.50 Billion US$ 9.00 8.50 8.10 8.00 7.50 7.00 2008 2009E 9.48

Source: Gartner May 7, 2009

Worldwide Software as a Service (SaaS) Market Forecast The Worldwide Software as a Service (SaaS) market will show consistent growth through 2013. Worldwide SaaS revenue will total US$ 17.80 Billion for the enterprise application markets. In

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the year 2008 it was only US$ 8.1 Billion this represents the CAGR of 17.05 % for the period spanning 2010- 2013. The composition of the worldwide SaaS landscape is evolving as vendors continue to extend regionally, increase penetration within existing accounts, 'Greenfield' opportunities, and offer more vertical-specific solutions as part of their service portfolio or through partners. The push in conjunction with partners has apparently been a key factor in driving growth.
Figure 5-2: Worldwide Forecast for Software as a Service (SaaS) Market 2010 2013 20 18 16 14 Billion US$ 12 10 8 6 4 2 0 2010 2011 2012 2013 11.10 12.99 15.20

17.80

Source: Gartner

5.2 Software as Service Segment

The various segments within the SaaS market will grow at a different rate. The fastest growing among these are Content, Communications and Collaboration (CCC), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).

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Figure 5-3: Worldwide Software as a Service (SaaS) Segments (Percent), 2009

Content, Communications and Collaboration (CCC) 6% 11% 31% Digital Content Creation (DCC Customer Relationship Management (CRM) Enterprise Resource Planning (ERP Supply Chain Management (SCM) 2% Other Application Software Office Suites

17%

6% 27%

Source: Gartner May 7, May 2009

5.2.1

Content, Communications and Collaboration (CCC) & Future Forecast

The content, communications and collaboration (CCC) market continues to show the widest disparity of SaaS revenue across market segments, generating US$ 2.5 billion in 2009, up from US$ 2.15 billion in 2008.The strongest segments in CCC are Web-Conferencing and E-Learning and to lesser extent e-mail and team collaboration.

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Figure 5-4: Worldwide Content, Communications and Collaboration (CCC) Market (Million US$), 2008 2009 2600 2,505 2500 2400 Million US$ 2300 2200 2100 2000 1900 2008 2009 2,155

Source: Gartner May 7, 2009

Content, Communications and Collaboration (CCC) Market Future Forecast The content, communications and collaboration (CCC) markets remains the largest contributors to the overall SaaS enterprise application markets with revenue exceeding US$ 2.5 billion in 2009, and it is expected to amount to US$ 5.1 billion by 2013.This represents the CAGR of 19.35% for the period of 2010 to 2013.

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Figure 5-5: Worldwide Forecast for Content, Communications and Collaboration (CCC) Market (Million US$), 2010 2013 6 5.1 5 4.2 Billion USD 4 3.0 3 2 1 0 2010 2011 2012 2013 3.6

Source: Gartner

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6. Cloud Computing Drivers

6.2 Investment in Cloud Computing
Investment in Cloud Computing is one of the key drivers of the Cloud Computing. It shows the future of the Cloud Computing is excellent and investors are ready to take the benefits of these growing sectors. IBM wants to become a market leader in the Cloud Computing. For this, IBM has invested US$ 830 Million in different segments of the Cloud Computing. Fujitsu and Microsoft also plan to invest in the Cloud Computing. Their estimated budget for Cloud Computing is US$ 537 Million and US$ 500 Million respectively. For investors in particular, the Cloud Computing phenomenon is an excellent opportunity to pump some money in and get some quick money out. The role of the investor is to make sure that the data centers such as the ones powered by Google continue to increase in storage capacity exponentially over the next few years. As the storage capacity increases, the same amount of processing power can be used to power the Cloud Computing of several different client companies all renting under the same utilities standard.
Figure 6-2: Worldwide Key Players (Amazon, IBM & Google, Intel, HP & Microsoft, Fujitsu, IBM) Investment in Cloud Computing (Million US$), 2007 - May 2010

Amazon IBM And Google Intel HP And Microsoft Microsoft Fujitsu IBM 0

12 30 200 250 500 537 830 100 200 300 400 500 600 700 800 900

Million US$

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Source: Cloudcomputingcertification.com, IBM, ChannelWeb.com and Thefreelibrary.com, Fujitsu, Microsoft and Intel Companies Website, New York Times, arstechnica.com and Seattlepi.com

The table no.6-1 summarises some of the Cloud Computing companies and their major investors in the company with total invested value and technologies in which they are invested.
Table 6-1: Global Cloud Computing Investment in Companies (10gen.com, Appistry.com, Elastra.com, Heroku, RightScale) (US$ Million), 2007 & 2008 Company Name 10gen.com Appistry.com Elastra.com Heroku RightScale Major Investors Union Square Ventures Stuart Mill Venture Partners Amazon, Bay Partners, Hummer Winblad Venture Partners Redpoint Ventures, Y Combinator Benchmark Capital, Index Ventures Total Invested (US$ Million) 1.5 23 14.6 3 22.2 Technology Sponsors an open-source database that makes cloud applications easier to build Makes it possible to move business functions to a cloud while keeping existing system Helps businesses use public clouds in concert with their internal IT setups. Allows rapid deployment of systems based on Ruby on Rails, a popular way of building Web applications Provides essential hand-holding for companies wanting to run applications on a variety of public and private clouds

Source: www.technologyreview.in

6.3 Mergers & Acquisitions in Cloud Computing

6.3.1 Oracle Acquisitions

Oracle introduced several new products and bragged about acquiring dozens of companies in less than four years. Oracle has acquired 41 companies in the past 45 months and considers acquisitions the primary way enterprise software companies can remain competitive and innovative. Some of the Oracle acquisition is given below.

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Table 6-3: Oracle Major Acquisitions 2004 2008 Company Name PeopleSoft Siebel Systems Stellent Hyperion Solutions Agile Software BEA Systems ERP CRM Content management Business intelligence Product lifecycle management Middleware Functional Area Acquisitions Year December-04 September-05 November-06 March-07 May-07 January-08

Source: The 451 M&A KnowledgeBase

Figure 6-5: Oracle Major Acquisitions (Stellent, Agile Software, Hyperion Solutions, Siebel Systems, BEA Systems, People Soft) Value (Billion US$), 2004 - 2008 12 10.46 10 8.5 Billion US$ 8 6 4 2 0.44 0 Stellent Agile Software Hyperion Solutions Siebel Systems BEA Systems PeopleSoft 0.495 3.3 5.85

Source: The 451 M&A KnowledgeBase

6.4 Venture Capital Funding in Cloud Computing

Some of the selected venture capital funding has conducted during the past years are summarized in the table below.

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Table 6-6: Worldwide 26 Companies with Venture Capital Funding (Million US$), 2005 - 2009 Company Hyperic, Inc. Layered Technologies New Relic, Inc. Nordic Edge Nirvanix, Inc. OpSource, Inc. ParaScale PerspecSys Ping Identity Rackspace Hosting rPath ServerVault Skytap, Inc. SnapLogic Soasta, Inc. Sonoa Systems Stratavia Symplified, Inc. Terremark (VMware 5% invested ownership) TriCipher, Inc. Vertica Virtual Iron Xeround Zimory Zetta Zmanda Source: Mooreland partners Date June 05, 2007 March 11, 2008 May 01, 2008 June 04, 2007 April 10, 2009 August 17, 2009 June 18, 2008 December 04, 2007 January 09, 2009 October 13, 2005 June 24, 2008 October 30, 2000 July 30, 2007 May 22, 2007 September 08, 2008 October 15, 2008 July 25, 2007 June 09, 2008 May 29, 2009 January 27, 2009 February 12, 2007 January 28, 2008 July 09, 2008 March 03, 2008 September 12, 2008 May 22, 2007 Last Round (Million US$) 6.1 11.0 3.5 NA 5.0 4.0 11.4 NA 8.0 10.0 10.0 9.0 6.0 2.5 6.4 10.0 6.3 6.0 20.0 12.0 16.5 20.0 16.0 NA 10.7 8.0 Round Type B A A NA C F A NA D A C A A A C C B A PIPE C B E B A A B Total Raised (Million US$) 9.9 11.0 3.5 NA 23.0 60.5 22.6 NA 28.5 10.0 25.5 9.0 6.0 2.5 10.7 NA 9.5 6.0 NA 35.1 23.5 64.5 29.5 NA 10.7 13.0

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8. Mobile Cloud Computing

Mobile Cloud Computing could be defined as the availability of Cloud Computing services in a mobile ecosystem. This incorporates many elements including consumer, enterprise, femtocells, transcoding, end to end security, home gateways and mobile broadband enabled services.

8.1 Mobile Cloud Computing Subscribers & Future Forecast

The number of mobile Cloud Computing subscribers worldwide will grow rapidly. In the year 2008, Mobile Cloud Computing subscribers were 42.8 Million, which is approximately 1.1% of all mobile subscribers all over world. It is estimated that by the year 2009, it will reach 72.34 Million.
Figure 8-1: Worldwide Mobile Cloud Computing Subscribers (Million) 2008 2009 80 70 60 50 Million 40 30 20 10 0 2008 2009E 42.80

72.34

Source: ABI Research, Renub Research Estimates

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10. Key Players of Cloud Computing

A Cloud Computing service provider owns and operates Cloud Computing system to deliver services (Software, Platform or Infrastructure) to consumers. Currently, we see mix large and small players in the market and there is still space for outsiders. Today, while customers are starting to adopt the technology, regulators are not directly active and the main integrators involved are the same as the traditional software and hardware market. While their current influence is relatively restricted, as the market grows, it will be crucial to follow the development of these actors in the game. As the main innovations and evolutions of the market are currently driven by the providers. We will focus on these players and will present what we believe is subset of the most representative players in the Cloud Computing market. Cloud providers can be classified into three different families: SaaS, PaaS and IaaS , with each family divided into sub segments. For each sub segment, we have selected a set of representative players based on their offers, individual maturity, and the role they play within their sub segment. The current land scope is a mix of recent and new niche players competing with more established software and hardware vendors. We compose these providers based on the following criteria. Domain of Activity. Date of First Cloud Release. Year on Year growth (2007 - 2008). Key Differentiators. A Sample of Key Client. A Sample of Key Partnership.

10.1 Customer Relationship Management (CRM) (SaaS)

A growing proportion of SaaS providers are designing their solutions to address the unique business requirements of specific industries. The SaaS market landscape is divided into different sub segments.

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The On Demand CRM market is one of the most mature segments in the SaaS market. While the market is categorized of multitude of niche players focusing on sub segments of CRM (Marketing, BI, Sales, Servicing), it is largely dominated by salesforce.com, which combines the complete CRM suite functionalities is one offering.

10.1.1

Salesforce.com

Salesforce.com offers customer relationship management (CRM) application services in the Software as a Service (SaaS) Industry. In particular, Salesforce.com is involved in offering Cloud Computing services to industries and businesses of all sizes. The company uses Cloud Computing to give its customers access to online software, with minor implementation and no on-premise installation or maintenance of software or physical servers. Salesforce.com makes money through subscription and support fees associated with its customers using Salesforce's applications. These applications give Salesforce.com customers access to systems which can systematically record, store, and act upon business data. These applications are used to optimize different aspects of a company's business including sales, marketing, partnerships and customer service. The companys CRM services primarily focus on sales-force automation, marketing automation, customer service and support automation. In addition, it provides training, consulting and implementation services. In 2008, the company was geographically based in the Americas (72% of its revenue), followed by the Europe (17% of revenue). Salesforce.com is heavily invested in Cloud Computing application services and derived 91.4% of its 2008 revenue from subscription and support fees associated with cloud services. Cloud Computing has grown rapidly since 2007 and is set to capture 25% of all Information Technology growth spending by 2012. However, there is significant uncertainty as companies and users are often reluctant in using largely undefined cloud services with no central database.

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Key Differentiators The company is market leaders in sales functionalities and moving aggressively into new areas. Salesforce.com is a pioneer in all areas of CRM on demand and was the first on the market. They are currently contributing substantial to growth of this market by constantly developing application that leverages 2.0 technologies.
Table 0-1: SalesForce.com Key Highlights Domain of Activity Marketing Sales Customer Service Source: Deliottie Table 0-2: SalesForce.com Revenue & Year on Year Growth (Million US$; Percent), 2008 2008 Revenue (Million US$) 1,077 Source: Deliottie Year on Year Growth, Percent 43.8% Date of First Cloud Release 1999 Sample of Key Client Allianz Dell Kone Sample of Key Partners Amazon Web Services CastIorn Google

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