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SaaS Authors: Pat Romanski, Elizabeth White, Ed Witkovic, Gaurav Pal, AppNeta Blog

Related Topics: Cloud Computing, SaaS Journal, DevOps Journal

Article

CIO Outlook: Rethinking #SaaS and #DevOps | @CloudExpo #AI #Microservices

The rapid growth of hyperscale IaaS platforms is changing how enterprises can get better Cloud ROI

The rapid growth of hyperscale IaaS platforms that provide serverless and Software management automation services is changing how enterprises can get better Cloud ROI. Heightened security concerns and enabling developer productivity are strategic issues for 2017.

Executive Summary
The emergence of hyper-scale Infrastructure as-a-Service (IaaS) platforms such as Amazon Web Services (AWS) that offer serverless computing, DevOps automation and large-scale data management capabilities is changing the economics of software consumption. As SaaS vendors as well as SaaS customers start to operate on the same IaaS platform, why have the enterprise data sit in someone else' virtual cloud environment? Why pay for the data twice?

As DevOps is catching the imagination of mainstream IT and many organizations are gearing up to implement DevOps - does it really deliver the promised Developer Productivity gains? In truth, DevOps is hard to implement and maintain. Only extremely mature and deeply talented IT shops are truly able to implement Continuous Integration/Continuous Deployment pipelines with containers and deal with all of the complexity. Why bother if DevOps is going die with the arrival of serverless computing? Is there really any need for "Ops" at all?

CIO Outlook 1: Rethinking SaaS and Security in 2017
SaaS solutions were born in 2000 with the promise of web-based delivery of hosted software delivered over the internet. SaaS solutions helped reduce the pain and cost associated with upgrades and maintenance headaches of "shrink-wrapped" software. The SaaS business over the last 15 years has disrupted major software platforms and in many ways helped set the stage for wider enterprise adoption of cloud services.

The early success of SaaS helped change customer behavior. Customers became comfortable with data and software running outside of their firewalls. The concept of management by SLAs was in many ways driven by the initial success of SaaS. In the past few years the trend toward SaaS creation and adoption has exploded with the adoption of hyperscale IaaS platforms by SaaS vendors.

This is the great paradox.

The emergence of public cloud IaaS platforms on the one hand is fueling the explosive growth of SaaS, but on the other hand it will kill (or dramatically disrupt) SaaS as it destroys the fundamental value proposition!

Your Cloud or My Cloud?
The trend is unmistakable - public IaaS has won. Major SaaS providers as well as large SaaS buyer enterprises are both migrating and embracing the IaaS cloud by going "all-in." The figure below shows the implications of this migration and shift to hyperscale IaaS platforms. Initially, SaaS providers had their own "vertical" stacks with customer data stored within their data centers. However, corporate anxiety about data assets strewn in multiple SaaS data centers coupled with the realization that data is a corporate asset and a recipe for competitive advantage is driving changes.

Additionally, as both SaaS providers and enterprise SaaS consumers start to operate on the same platform, the SaaS "value-stack" is significantly diminished. Artificial data silos are created for the enterprise when their "SaaS" data is resident right next to their enterprise data, just separated by a contractual boundary.

SaaS buyers in many ways "pay" twice for their data. Once for storing it in the SaaS platform and a second time for backing it up into their "cloud environment" for security or analytical purposes. Many enterprises often overlook the hidden costs associated with SaaS. These include hard network and storage costs associated with copying data back and forth for backup/retention or analytics purposes.

Instead of moving enterprise data to the SaaS platform, why not move the "SaaS" code?
A key tenet of SaaS in 2000 was to help reduce the cost and pain associated with upgrading and maintaining "shrink-wrapped" software. In 2016 and beyond, upgrading and managing software and systems is not as hard as it used to be. Continuous Integration/Continuous Delivery (CI/CD), microservices, serverless computing, and Managed Cloud-Native Services are making it relatively easy to upgrade and deliver software.

If both the SaaS provider and the consumer have access to the same set of tools on the same cloud platform, then what is the real value-add from the SaaS service? Just the software, right?

Upended revenue mode
Over the years most SaaS services have been delivered on a "per user" based annual subscription model. If a SaaS license for one user is $100 per year, and the enterprise bought licenses for 100 users, the enterprise would pay $10,000 per year. In the pre-IaaS days, this might have been great economics for both parties - the SaaS vendor and the SaaS buyer. Not anymore.

Let's assume those 100 users consume 100 GB of space and five cloud servers. The customer adds another 50 users but, because of limited true usage, the storage and compute requirements did not really change much. Why should the customer pay an additional $5,000 for those additional 50 users, if the underlying incremental costs did not change that much?

SaaS buyers are starting to think real hard when deciding between a "per-user" SaaS annual subscription model versus a "cloud-hosted" pay-per-call model that is enabled with Serverless computing.

Security and Compliance
Most newer entrants to the SaaS market underestimate the cost and complexity associated with the "Ops" part of the business. Many SaaS providers struggle with issues around vulnerability management, security scanning, compliance reporting, backup and recovery and service uptime. There are many factors for this. One of them is the changed cybersecurity environment. Buyers are demanding evidence of security best practices. Industry-recognized certifications, such as HIPAA, FFIEC, FedRAMP, or ISO 27001, are increasingly required by customers from SaaS providers. These come at a heavy price.

Experts in platform-as-a-service and cloud computing are seeing some of these pains within the enterprise.

"Pricing, governance and security are key for enterprises consuming multiple SaaS services. It becomes challenging to understand the security footprint of the system as a whole as the number of SaaS services consumed increases," said Derek Collison, CEO and Founder, Apcera.

CIO Outlook 2: Rethinking DevOps in 2017
Every CIO is racing toward DevOps and trying to emulate the trailblazing path laid down by the likes of Netflix and many others. The reality however is that DevOps is hard. The choices are bewildering - Docker, Elastic Container Service (ECS), CloudFoundry or OpenShift? The ability to design, deploy and maintain a DevOps pipeline is a non-trivial task that requires senior (and expensive) talent. There is a better way. Cut out "Ops" entirely. Hyperscale cloud providers such as AWS have been steadily launching "serverless" services that began with AWS Lambda for executing "functions" and paying on a per-call basis. No servers to patch, upgrade, shut down or scale. The figure below shows the customer versus IaaS provider layers of responsibility.

The sophistication and list of available services have grown exponentially. AWS Athena for SQL processing, DynamoDB for NoSQL stores and the list goes on. Getting rid of virtual machine instances and containers and instead adopting a serverless computing model can provide enterprises with the ability to leapfrog the DevOps wave and just focus on Dev. A key benefit is the potential reduction in Total Cost of Ownership (TCO) for serverless applications when considering the operations, maintenance and security overhead.

Making the right strategic decisions is critical for both cloud services buyers and providers to ensure their ability to sustain and thrive in the cloud era. The emergence of serverless computing, alternative software distribution models through cloud marketplaces and pay-per-call transaction pricing offer CIOs a rich canvas to deliver innovation, agility and better security in 2017.

Call-to Action
CIOs looking to make sense of the disruption caused by Cloud, DevOps, and serverless computing should consider adopting best practices for driving transformation from players such as CapitalOne and Walmart. Creating a Tiger team, enabling an Innovation Workbench, and delivering minimum viable projects (MVP) in 4-6 weeks are great ways to start learning about these new technologies.

@DevOpsSummit at Cloud Expo taking place June 6-8, 2017, at Javits Center, New York City, and is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

DevOps at Cloud Expo / @ThingsExpo 2017 New York 
(June 6-8, 2017, Javits Center, Manhattan)

DevOps at Cloud Expo / @ThingsExpo 2017 Silicon Valley
(October 31 - November 2, 2017, Santa Clara Convention Center, CA)

Download Show Prospectus ▸ Here

The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.

@DevOpsSummit will expand the DevOps community, enable a wide sharing of knowledge, and educate delegates and technology providers alike. Recent research has shown that DevOps dramatically reduces development time, the amount of enterprise IT professionals put out fires, and support time generally. Time spent on infrastructure development is significantly increased, and DevOps practitioners report more software releases and higher quality. Sponsors of @DevOpsSummit will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on DevOps Journal
  • Tweetup to over 75,000 plus followers
  • Press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo / @ThingsExpo 2017 New York 
(June 6-8, 2017, Javits Center, Manhattan)

@CloudExpo / @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Track 1. FinTech
Track 2. Enterprise Cloud | Digital Transformation
Track 3. DevOps, Containers & Microservices 
Track 4. Big Data | Analytics
Track 5. Industrial IoT
Track 6. IoT Dev & Deploy | Mobility
Track 7. APIs | Cloud Security
Track 8. AI | ML | DL | Cognitive Computing

Delegates to Cloud Expo @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 20th Cloud Expo @ThingsExpo June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 20th International Cloud Expo June 6-8, 2017 in New York City and October 31 - November 2, 2017 in Silicon Valley.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 20th International @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

Our Top 100 Sponsors and the Leading "Digital Transformation" Companies

(ISC)2, 24Notion (Bronze Sponsor), 910Telecom, Accelertite (Gold Sponsor), Addteq, Adobe (Bronze Sponsor), Aeroybyte, Alert Logic, Anexia, AppNeta, Avere Systems, BMC Software (Silver Sponsor), Bsquare Corporation (Silver Sponsor), BZ Media (Media Sponsor), Catchpoint Systems (Silver Sponsor), CDS Global Cloud, Cemware, Chetu Inc., China Unicom, Cloud Raxak, CloudBerry (Media Sponsor), Cloudbric, Coalfire Systems, CollabNet, Inc. (Silver Sponsor), Column Technologies, Commvault (Bronze Sponsor), Connect2.me, ContentMX (Bronze Sponsor), CrowdReviews (Media Sponsor) CyberTrend (Media Sponsor), DataCenterDynamics (Media Sponsor), Delaplex, DICE (Bronze Sponsor), EastBanc Technologies, eCube Systems, Embotics, Enzu Inc., Ericsson (Gold Sponsor), FalconStor, Formation Data Systems, Fusion, Hanu Software, HGST, Inc. (Bronze Sponsor), Hitrons Solutions, IBM BlueBox, IBM Bluemix, IBM Cloud (Platinum Sponsor), IBM Cloud Data Services/Cloudant (Platinum Sponsor), IBM DevOps (Platinum Sponsor), iDevices, Industrial Internet of Things Consortium (Association Sponsor), Impinger Technologies, Interface Masters, Intel (Keynote Sponsor), Interoute (Bronze Sponsor), IQP Corporation, Isomorphic Software, Japan IoT Consortium, Kintone Corporation (Bronze Sponsor), LeaseWeb USA, LinearHub, MangoApps, MathFreeOn, Men & Mice, MobiDev, New Relic, Inc. (Bronze Sponsor), New York Times, Niagara Networks, Numerex, NVIDIA Corporation (AI Session Sponsor), Object Management Group (Association Sponsor), On The Avenue Marketing, Oracle MySQL, Peak10, Inc., Penta Security, Plasma Corporation, Pulzze Systems, Pythian (Bronze Sponsor), Cosmos, RackN, ReadyTalk (Silver Sponsor), Roma Software, Roundee.io, Secure Channels Inc., SD Times (Media Sponsor), SoftLayer (Platinum Sponsor), SoftNet Solutions, Solinea Inc., SpeedyCloud, SSLGURU LLC, StarNet, Stratoscale, Streamliner, SuperAdmins, TechTarget (Media Sponsor), TelecomReseller (Media Sponsor), Tintri (Welcome Reception Sponsor), TMCnet (Media Sponsor), Transparent Cloud Computing Consortium, Veeam, Venafi, Violin Memory, VAI Software, Zerto

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By Gaurav Pal

Gaurav “GP” Pal is CEO and Founder of is stackArmor. He is an award-winning Senior Business Leader with a successful track record of growing and managing a secure cloud solutions practice with over $30 million in annual revenues focused on US Federal, Department of Defense, non-profit and financial services clients. Successfully led and delivered multi-million-dollar Amazon Web Services (AWS) cloud migration and broker programs for US Government customers including the Department of the Treasury, and Recovery Accountability & Transparency Board (RATB) since 2009.

GP is the Industry Chair at the University of Maryland’s Center for Digital Innovation, Technology and Strategy (DIGITS). He has strong relationship-based consultative selling experience with C-level executives providing DevOps, Managed Services, IaaS, Managed IaaS, PaaS and SaaS in compliance with US FedRAMP, FISMA, HIPAA and NIST Security Frameworks. He has a successful track record of delivering multiple cloud solutions with leading providers including Amazon Web Services (AWS), Microsoft, Google and among others.

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