Click here to close now.




















Welcome!

SDN Journal Authors: Wai Lam, Pat Romanski, Cloud Best Practices Network, Elizabeth White, Liz McMillan

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, Agile Computing, SDN Journal

@CloudExpo: Blog Post

Cloud Wars – Can the Force Disrupt the Battlefield?

The cloud market is not going away. Gartner predicts that cloud spending from 2013 to 2016 will be $677 billion worldwide

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.

More Stories By Ed Featherston

Ed Featherston is a senior enterprise architect and director at Collaborative Consulting. He brings more than 34 years of information technology experience of designing, building, and implementing large complex solutions. He has significant expertise in systems integration, Internet/intranet, client/server, middleware, and cloud technologies, Ed has designed and delivered projects for a variety of industries, including financial services, pharmacy, government and retail.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...