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Bianca F. Granetto

Agenda Manager

Enterprise Application Software

SMAU 2014, Rome 20th March

Comprendere il Cloud e le altre Correnti Scatenanti la Trasformazione Digitale

RARELY does a SINGLE TREND or TECHNOLOGY change the status quo.

BUT MULTIPLE trends can

TRANSFORM

the business landscape!

You must consider their overall IMPACT, INFLUENCE and OUTCOME!

Place and Pace of Digital

Exponential Growth in just 20 years…

1993

CERN donated the WWW technology to

the world

200070 Million

Computers Connected

Google

20033 Billion Web Pages

MySpace; Second Life; LinkedIn; iTunes

200625 Billion Web Pages

Facebook; YouTube; Twitter

20132.7 Billions Internet Users

39% of World Pop.

(ITU Estimate)

19502.5 Billions

World Pop.

• Amplifying the occasions for growth

• Optimizing the costs of conducting business

• New productivity

• Accelerating the path to change

• Compete on a Global Scale

4

Digital Economy Chance or Risk?

A Different Way of Doing Something…

5

Cloud computing is a “style of computing”

Agility

Cost

Less Complexity

More Focus

Self-Service

Innovation

Security

Assurance

Lock-in

Integration

Financial

Transparency

Definition: Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a

service' to external customers using Internet technologies."

The Shades of Cloud Computing

VirtualPrivate Cloud

Hybrid

Enterprise A Enterprise A

En

terp

rise

A

En

terp

rise

B

En

terp

rise

A

En

terp

rise

B

Co

mp

any

X

Use

r Z

Closed Private Open Public

CommunityPublic Cloud

PublicCloud

Managed

Private Cloud

Enterprise A

EnterprisePrivate Cloud

Owner Enterprise Enterprise Provider Provider Provider

Operator Enterprise Provider Provider Provider Provider

Service Access

Closed (enterprise)

Closed (enterprise)

Closed (enterprise)

Closed group(community) Open

Level of Control Full High High Low None

Points of Leverage

Skills (none)Assets (none)

Skills (strong)Assets (none)

Skills (strong)Assets (medium)

Skills (strong)Assets (strong)

Skills (strong)Assets (strong)

Cloud and The NexusThe Emergence of New Cloud Segments

Cloud in the Nexus of Forces Personal Cloud

CloudCollaboration

Effects on:

Customer Experience

Business Model

Business Units

Service Delivery

New business ideation/entreprene

urship

Business Partners

IT Legacy

Cloud + Social

Cloud + Mobile

External and Internal Cloud Brokerage

Cloud + Info.

Regional Perspective: Europe

9

Multi-lingual

Multi-Cultural

Cultural Heritage

EU Digital Union

Large SMB sector

Very high mobile penetration

Population aged 60 and over

Biggest exporters and traders of goods, services & income

Wide Economic Gap & Diversity

Leading Countries in R&D

Many World’s Largest

Businesses

Tourism

Transportation

Multi-Currency

Multi-GovernmentsNEXU

S

Drivers:

• Europe 2020 and "A Digital Agenda for Europe"

• IT Innovation & Digital Agendas

• High speed internet and related services

• Digitization of Europe's rich cultural heritage

• e-Government, online health, smart home, digital skills, security

• EMEA Emerging Markets FDIs & IT Innovation Policies

• SMBs access to Enterprise Level Software

Inhibitors:

• Economic & Political uncertainty

• Credit crunch

• Loss of Competitiveness

• Temporary stall on EU initiatives

• Weak IT Innovation adoption/ cultural barriers

• Aging population

• Multiple Data and Privacy Laws

• Availability of skills

• Protectionism and Rigidities of Labor Laws

10

Regional Perspective: European Market Dynamics

Cloud Computing (SaaS, PaaS, IaaS)Virtualization (server, desktop, storage)

IT modernization Mobile Technologies

Software modernizationBig Data, Information Management

Data Center consolidationSoftware implementation or upgradeAnalytics and Business Intelligence Customer Experience Management

IT GovernanceVoIP, Unified Comms and Collaboration

Business Continuity ManagementResource efficiency management tools

Social media SOA and application architecture

Sustainability reporting applicationsVideo

Bring Your Own Device to work (BYOD)

27%26%25%

19%17%17%16%

15%15%14%13%12%

11%10%9%

7%7%7%6%

What do you consider your organization's top three IT project priorities for 2013?

Gartner IT Budget Survey; Jan 2013; n = 1,523 (Up to three responses allowed)

2013 IT Project Priorities

2011 2012 2013 2014 2015 2016 20170

50

100

150

200

250

300

Public Cloud Services

2011 2012 2013 2014 2015 2016 20170

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Overall IT SpendingPublic Cloud Services

Public Cloud Services as a Percentage of Overall IT Spending

3%

17%

Source: Gartner, IT Spending Forecast, 3Q13 Update, Public Cloud Services Forecast 3Q13 Update, September 2013

Public Cloud Services grows from 3% to 6% of overall IT SpendingBillions of DollarsBillions of Dollars

CAGR

CAGR

13

Public Cloud Services CAGR (2012-2017)By Segment

Public Cloud Services Total

Cloud Business Process Services (BPaaS)

Cloud Advertising

Cloud Application Services (SaaS)

Cloud Management and Security Services

Cloud Application Infrastructure Services (PaaS)

Cloud System Infrastructure Services (IaaS)

0% 5% 10% 15% 20% 25% 30% 35% 40%

16.9%

10.8%

14.9%

20.2%

23.5%

24.0%

37.3%

CAGR (2012-2017)

Source: Gartner, Public Cloud Services Forecast, September 2013 (G00248730)

14

Public Cloud Services SubsegmentsTotal Spending, 2013-2017 (Market Size), Excluding Cloud Advertising

Business Intelligence Platform

Print

Application Development

IT Operations Management

Business Intelligence Applications

Enterprise Content Management

Digital Content Creation

Project and Portfolio Management

Office Suites

Application Infrastructure and Middleware

Finance & Accounting

Storage Management

Supply Chain Management

Web Conferencing, Teaming Platforms, and Social Software Suites

Security

Storage

Enterprise Resource Planning

Customer Management

Industry Operations

Supply Management

Other Application Software

Cloud Payments

E-Commerce Enablement

Human Resources

Customer Relationship Management

Compute

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

0.5

1.2

2.5

2.7

3.0

3.3

3.7

3.8

6.9

9.1

9.8

12.9

14.3

15.0

15.8

16.0

18.2

19.4

20.0

21.2

27.1

39.7

41.7

71.7

72.1

78.4

Billions of Dollars

Source: Gartner, Public Cloud Services Forecast, September 2013 (G00248730)

15

Public Cloud Services, By RegionTotal Spending (2013-2017) and 5-year CAGR, Excluding Cloud Advertising

North A

meric

a

West

ern E

urope

Matu

re A

sia/P

acific

Latin A

meric

a

Gre

ater C

hina

Emerg

ing A

sia/P

acific

Eastern

Euro

pe

Mid

dle E

ast a

nd North

Afri

ca

Sub-Sahara

n Afri

ca

Eurasia

0

50

100

150

200

250

300

350

0%

5%

10%

15%

20%

25%

30%

35%318.8

127.1

32.9 27.46.7 5.9 4.0 3.4 2.6 1.7

20.4%

12.5%

16.0%

24.9%

29.0%

32.7%

21.4%19.8%

21.5% 21.4%

Total Spending (2013-2017) CAGR (2012-2017)

Bill

ion

s o

f D

olla

rs

CA

GR

Source: Gartner, Public Cloud Services Forecast, September 2013 (G00248730)

16

Public Cloud Services, By CountryTotal Spending (2013-2017) and 5-year CAGR, Excluding Cloud Advertising

Source: Gartner, Public Cloud Services Forecast, September 2013 (G00248730)

Unite

d Sta

tes

Unite

d Kin

gdom

Canad

a

Germ

any

Franc

e

Brazil

Japa

n

Austra

lia

Nethe

rland

s

Mex

ico

Spain

Italy

South

Kor

ea

China

Indi

a

Argen

tina

Russia

Polan

d

Turke

y

Indo

nesia

0

50

100

150

200

250

300

350

0%

5%

10%

15%

20%

25%

30%

35%

40%

291.4

53.6

27.418.6 15.5 13.6 12.5 12.4 7.2 6.8 6.3 5.8 4.5 4.4 3.4 2.0 1.4 1.2 0.8 0.5

20.3%

9.9%

22.0%

15.2%15.2%

24.4%

11.5%

17.7%15.6%

25.1%

8.9%9.8%

20.4%

31.4%33.6%

24.6%22.6%

20.8%21.4%

34.1%

Total Spending (2013-2017) CAGR (2012-2017)

Bill

ion

s o

f D

olla

rs

CA

GR

17

France Germany Italy Spain United Kingdom

8,336,000

13,567,000

3,709,000 2,383,000

15,519,000

63,940,000

82,100,000

61,090,000

48,180,000

63,760,000

All Software Market Size Population

+4.38% +4.89% +2.79% +2.77% +6.99%

Peer Group Comparison: Is Italy More Sensible or Falling Behind?

Gartner “Forecast: Enterprise Software Markets 2010-2017 3Q13 Update” Data in Millions of Euros

0 3,000 6,000 9,000 12,000 15,000 18,0000

50

100

150

200

250

300

350

400

450

263.96

191.78

285.96

261.50

144.28

403.84

326.71

229.89243.11

61.22

97.83

272.29

128.40

164.93

80.98

29.01

346.31

183.85

370.86

54.9259.82

Slovakia 104.43

378.30

425.55

22.11

361.08

Total Software Spending (Bn$)

To

tal S

oft

wa

re S

pe

nd

ing

pe

r E

mp

loy

ee

($

)

18

Peer Group Comparison: Is Italy More Sensible or Falling Behind?

USA (100bn$)

GDP

+0.69GDP

-0.41

GDP

+0.71

GDP

-0.187

GDP

-0.186

Source: Gartner and IHS (Global Insight’s Comparative World View, 15 April 2013 update)

GDP

+1.39

Management Is About the Right Answers; Leadership Is About the Right Questions

The Wrong Questions1. Cost: Why is IT so expensive?

2. Cost: How can we reduce IT costs?

3. Problems: Why did the ERP project overrun?

4. Problems: Why didn't you get the 10% uplift in customer retention from the CRM investment?

5. Technologies: I've read about utility computing — shouldn't we have that?

The Right Questions1. Strategy: How is IT helping us win?

2. Value: How much business value has IT generated in the last quarter?

3. Performance: How is IT performing, relativeto SLAs?

4. Cost: Are we investing the right amountin IT, based on our business goals?

5. Risk: What are our biggest IT-related risks, and how are we mitigating them?

6. Agility: Is IT ready for our growthand change goals?

7. Capability: Is the IT organization developing fast enough to meet our future needs?

8. Role: How can we support and use the CIO and IT organization better?

9. Technologies: Are there any new technologies that could help us win?

Seize The Opportunity, Manage The Risks

• Be pioneers of the Nexus or risk lose competitiveness

• Where is this opportunity in your Organization?- Marketing & Communication (take advantage of consumerization,

localization, branding, communication…)

- Sales (ubiquity, mobility, communities, learning…)

- Operational Efficiency & Transparency (analytics, process digitization, documents streamlining, quality mgnt…)

- Supply chains; B2Bssourcing; crowd funding; free-for-all; transparency; convenience services

- New business concepts (crowd …)

- Products design and redesign & Delivery (social responsibility, sustainability, extreme personalization…)

20

GRAZIE