Confidential Material 04/15/2023

1

Boxed Software Is Dead, Long Live The Cloud

Confidential Material

Yesterday

Today

With software delivery moving to the cloud, businesses are shifting from retail stores to online Cloud Service Marketplaces to find buy and manage their software needs

Confidential Material

2010 2011 2012 2013 2014 2015 2016 20172009

2013 provides a tipping point for cloud service brokerages (CSBs) as as the market matures and more and more companies transition to the cloud

“Global spending on public cloud services is expected to grow 18.6% in 2012 to $110.3B, achieving a CAGR of 17.7% from 2011 through 2016” - Gartner

Gartner predicts that the worldwide cloud market will grow to $131 billion in 2013

“The app marketplace model is set to mature greatly over the next 2-3 years in the business software segment.” – 451 Research Group

Confidential Material

Cloud Service Brokers (CSBs) are incredibly important as they provide a safe, trusted source to satisfy companies IT needs

“CSBs make it easier, safer and more productive for companies to navigate, integrate, consume, extend and maintain cloud services, particularly when they span multiple, divers cloud service providers.”

Worldwide public cloud services spending is forecast to reach

$177 billionby 2015. - Gartner

Confidential Material 04/15/2023

5

CSBs will help drive the adoption of cloud services as they provide a one stop shop for all of a businesses needs

To add title go to View ▸ Header and Footer...

1 2 3 4 5 6 7 8

0%

5%

10%

15%

20%

25%

30%

25%

23%

16%

9%8%

7%6% 6%

Number of paid apps to be used by 2014 (among SMBs paying for at least one

app)2 “50% of SMBs feel it is important to buy services from a provider with local personnel–31% feel this is critical”

“[O]ver the next years, offering a broker service will become more a question of portfolio completeness, sales channel approach, and credulity in the cloud provider space.”

“The app marketplace model is set to mature greatly over the next 2-3 years in the business software segment.”

Rapid growth in application selection SMBs demand multiple applications

SMBs prefer applications delivered in a bundle from a trusted provider.

2010 2011 2012 2013

0

2000

4000

6000

8000

10000

12000

120

700

3000

10000

1 Apps must offer tiered subscription model and functionality relevant to SMBs to meet criteria2 Source: Microsoft SMB Cloud Adoption Study, Dec. 2010 – Global Report (Dec. 2010); AppDirect Analysis

36% of SMBs to pay for 4+ apps.