2. ABSTRACT: THE IMPACT OF SMART
DEVICES ON THE CLOUD
If mobile devices were merely used to browse web pages, then they would
not be very disruptive. But mobile is all about apps, and mobile apps have
veered away from legacy browser technology. As a result a paradigm shift
is emerging in the host platforms that support mobile.
This presentation looks at the impact of mobile on the cloud, from a
technology and business model perspective.
5. SMART DEVICES DRIVE CHANGE IN WEB
ARCHITECTURE
Macro computing trends…
rapid move of s/w applications to the cloud
proliferation of devices (phones, tablets, sensors, wearables) connecting to
the web
apps usurping browsing as the primary web activity
…drive
requirements for a smart client architecture
legacy web technology is inadequate
6. LEGACY WEB TECHNOLOGY
first generation of the web was primarily dumb clients (underutilized PC’s)
connected to the web by browsers
The
Browsers communicate with servers via page generation, where the server
does all computation and then ships an HTML page to be rendered on the PC’s
browser. When your input something new in the browser, a new page is
generated on the server and shipped back.
In the modern web a client is increasingly a smart device- tablet, phone, meter,
wrist band, glasses…. These devices have unique local “sensory” services (e.g.
GPS location, Capture,Voice) that modern apps leverage
Legacy HTML Page generation approaches are unaware of client capabilities,
each is treated as one uniform dumb browser client
New service based approaches emerge to fully exploit client capabilities
7. PARADIGM SHIFT: CLOUD API’S
Smart devices are causing a similar disruption to the cloud as PC’s did
to mainframe computing
Mobile is to browsers as PC’s were to VT100’s, driving a paradigm shift
Client-Server computing evolves to Client-Service
The new paradigm is n-tier and web service based
Applications blend services from servers and clients
A new category of cloud middleware emerges to support mobile
Backend As A Service or (mobile) mBaaS
REST APIs enable client-service architecture for smart device applications
Supporting rich client app delivery: HTML5, native IOS (Apple), native Android
(Google) and Windows 8 (Microsoft)
8. THE MODERN CLOUD: CBE
Cloud Back-ends (BaaS, mBaaS) are the newest generation of cloud
middleware. CBE is purpose built for the modern web where smart
devices need to connect to the cloud
CBE offers a set of APIs that enable rich clients to have cloud back ends
for storage, collaboration, app administration, tracking stats, and a host
of other capabilities
CBE developers use a service based programming model, based on
REST APIs, versus page generation approach.
Examples of CBE vendors include DreamFactory, Kinvey, and FaceBook
Parse
9. SMART DEVICES DRIVE SHIFT TO SERVICES
Smart Devices
(m)BaaS, CBE
PaaS
PC’s
IaaS
SaaS
Sites
HTML
Page
Generation
7/10/13
REST Web
Services
9
10. PARADIGM SHIFTS FOSTER DISRUPTIVE
INNOVATION
Legacy vendors architected for browsers have to re-architect for this
new paradigm
At the same time they have to preserve their investment in page
generation architecture, often creating conflicting incentives
White space opportunities unfold for a new generation of disruptive
innovators
Setting the stage for disruptive innovators to blindside competitors in
core adjacent markets in the future
E.g. Google dominates search and then core adjacent markets like email
11. The power of App Stores
BUSINESS MODEL DISRUPTION
12. PARADIGM SHIFTS & BUSINESS MODELS
Web services
Mobile apps
Web apps
Client Server
Sell H/W &
S/W
Oracle/Sun
Sell
Subscriptions
or Ads
Google,
Salesforce.com
Micropurchases
App Stores
Apple, Google
Sell services
& Usage
Amazon
13. APP STORES
App stores are a disruptive business model
They dramatically lower customer acquisition costs while dramatically
increasing exposure
Populating the market with far more competition than would otherwise be possible
Apple’s App Store has over 1M apps.
Combined with BYOD (bring your own device) App Stores are changing
the way business adopt applications
Grass roots, direct access to the pro-sumer (professional/consumer)
Roll up to enterprise deals
Versus mandated top down purchases through IT
14. APP STORES + BAAS= ENTERPRISE
Most applications are local to the device
BaaS cloud-enables mobile apps
BaaS enables powerful features critical to the enterprise
Group collaboration
Shared database
Adminstration & tracking
Provisioning (and de-provisioning)
Fosters a land and expand strategy
Individual contributors expand to departmental teams expand to enterprise roll-outs
15. SELLING API’S VS SOFTWARE
There is also a shift on server side business models
In the last paradigm shift Software and H/W systems started moving
from capital expenditures to operational expense
From outright purchases to subscriptions
The newest generation of cloud products are being sold on usage
e.g. Amazon Web Services are pay as you go
This has a dramatic impact on bookings and is a major disruptor
Subscriptions amortize revenue over 12-24 months, so at best they are worth 1/12
of a purchased booking. How would it look to your shareholders if you were to
recommend cutting your bookings by a magnitude?
Usage is even worse, as there is no committed booking
16. RISK FACTORS TO LEGACY WEB
Web ISVs don’t fully exploit mobile
e.g. local services, in-app purchases, actionable data, land and expand
Enabling new mobile apps to grab beach-heads
Web ISVs lose touch with the end customer
Who are spending more of their cycles on mobile devices
Initial risk is the “long tail”, SMB customers
Web ISVs miss the boat on enterprise app stores and BYOD
App stores empower individual consumers, and expand to groups though ad hoc collaboration.
DropBox and Evernote are great examples of individual productivity tools that have gone viral by
making sharing simple
Monolithic and policy driven clouds (most enterprise s/w) can’t exploit app stores as a new
business channel as the don’t offer the one-two punch of individual productivity that easily
expands to group productivity
Strangely, the compounding effect of BYOD and App Stores provide a channel advantage to
start-ups
17. ENTERPRISE DISRUPTION: WHAT KEEPS CIO’S
AWAKE AT NIGHT?
Fueled by mobile, BYOD requirements are elevated to C level.
CEO’s like BYOD’s employee satisfaction and immersion qualities
CIOs must contend with:
Architectural issues. e.g How do we redesign all of our browser based apps?
Security issues of non-issue devices. e.g. How do we protect the company jewels?
Management issues of non-issue devices. e.g How do we disable devices for terminated
employees?
These issues must be dealt with in primary application areas:
Business to employee systems (B2E)
Business to consumers systems (B2C)
Business to business systems (B2B)
This creates an enormous white space for partners to help “mobilize” their
infrastructure
