Welcome!

@BigDataExpo Authors: Gregor Petri, Christopher Harrold, John Basso, Kevin Benedict, Dana Gardner

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.


@BigDataExpo Stories
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...