Partly Cloudy The ETRM* Migration Gets Underway
Building your own software? Well done and good luck, sir! I’m sure it will end well. There’s no need for you to read any further.
…is he gone yet? By Larry Hickey, FRM
OK, CONGRATULATIONS ON successfully navigating the ‘build vs. buy’ thicket. As you accurately deduced, software providers enjoy a comparative advantage in the provision of software. You’re on a roll. Now, let’s take a hard look at those servers and the applications running on them. Having
already decided that you’re not in the systems
development business, what about the systems support business? Is that your core competency? Do you babysit servers better than the next guy or manage the application better than the vendor can? If not, it may be time to look to the cloud.
What’s The Cloud? The ‘cloud’ – short for cloud computing – is the use of computing
resources to deliver services over the web. It is an alternative to the use of local resources. Mike Gallagher, CTO at industry leading ETRM vendor OpenLink, explains it this way: “There are three main flavours of ‘cloud’. Software as a Service (SaaS) delivers the application on demand over the web or Citrix. So you use our software. Infrastructure as a Service (IaaS) delivers computing capacity over the web. So you use our servers. Finally, Platform as a Service (PaaS) is where you build your application using our tools. Examples include Microsoft’s Office365, Oracle or Amazon. In the ETRM space, the ‘cloud’ usually means SaaS – delivering a hosted solution to the end user.” The cloud is hot. In terms of the Gartner hype cycle, we’ve already
moved past the ‘peak of inflated expectations.’ Google’s Insights service has interest currently sitting at 57% of its peak, which was reached in June 2011. It’s only after the hype bubble bursts, which Gartner calls the “trough of disillusionment”, that we are set to move onto widespread adoption. Prospects appear rosy. There is no shortage of projections and a ~20% annual growth rate is a recurring theme. Specifically; Gartner says ...
...the market for public cloud services will grow from $76.9 bn in
2010 to $210 bn in 2016, a compound growth rate (CAGR) of 17.7%.
...SaaS specifically will grow from $13.4 billion in 2011 to $32.2 billion in 2016, a five-year CAGR of 19.1%. IDC says … ...enterprise cloud application revenues reached $22.9 bn in 2011
and are projected reach $67.3 bn by 2016, attaining a CAGR of 24%.
..by 2106, $1 of every $5 will be spent on cloud-based software and infrastructure.
*Variously called ETRM, CTRM and even the unwieldy E/CTRM. For simplicity, we go with ETRM here.
70 March 2013
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84