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After many years of intensive market research, a popular choice for software as a service (SaaS) is being rethought. Next-generation cloud products may be far more effective, economical, and customer friendly. Let’s look at cloud services, including SaaS, and examine:
1. How cloud services are driving the SaaS business: U.S. federal agencies struggle with data warehousing and threat assessment. Time for a new approach. The current paradigm is broken and inefficient. It is time to look at cloud services as an alternative. In this quarter, Gartner predicts SaaS business will grow by 70% to $19 billion.
2. Defining the cloud services marketplace: What we’re all talking about is clouds, and who’s talking about them? We’re going to look at who’s talking about it, who is buying it, who’s using it, and who’s going to drive the market forward.
3. Outlook for the future: Why cloud services will change everything. There are three ways of looking at the future. There is the “cloud boom,” the “cloud bust,” and the “cloud dominant” scenario. By the end of 2007, we’re going to have moved away from the cloud boom. We need to consider the cloud bust.
Now let’s look at the “cloud dominant” scenario. There are two simple ways to view the cloud dominant scenario. The first and most common way to view the cloud dominant scenario is from the perspective of the cloud provider (P). The second way is from the perspective of the cloud consumer (C). Figure 2-1 illustrates the two views.
4. What’s driving the cloud services demand? There are five requirements for driving the demand for cloud services:
(a) the need for flexible computing;
(c) the need for fast performance;
(d) the need for cost-effective, powerful solutions; and
(e) the growing demand for solutions that augment human intellect.
Those five factors define the constraints on the potential market. They include:
(a) the need for flexible computing;
(b) the need for trust;
(c) the need for cost-effectiveness and the ability to pay;
(d) the need to get the most out of the technology; and
(e) the desire for software that augments human intellect.
To effectively assess the marketplace, we must identify the current
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