Monetizing the Cloud Hemant Khandelwal

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About Me

Heads engineering for

eBooks – DRM hosted solution

ColdFusion suite – server, builder, mobile & cloud

Author of CFWACK

Driving SoMe strategy @Adobe

Started CrunchyFriday to build & encourage innovation

Blogs @ www.crunchyfriday.com

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What is Cloud?

Started in 1950s

With CPU time-sharing during mainframe days

Compute services

Storage services

Application & management tools

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Cloud Models

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Cloud Models

Public

Successful & available

Private

Gaining momentum

Over the next 12 months, 50% + enterprises will prioritize building internal private clouds

Hybrid

Limited to migrating workloads to AWS

2-3 yrs horizon for advanced hybrids & cloud-bursting capabilities

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Source - Forrester

Cloud Benefits (conventional wisdom)

Scalability & Elasticity

Flexibility & Agility

Manage complexity

Various cost model

Capital expenditure versus operating expenditure

Pay as you go

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What is actually happening!

Cost

Reaching a point of diminishing returns

Needs business transformation to increase returns

Instance utilization

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Source: Cloudyn

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How can Cloud provide strategic advantage?

Business Innovation

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Business Innovation

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Cloud services as Enabler

Combining the power of Mobile engagement

A healthcare company case

Post-acute care services in US

Mobile + cloud driving changes in business process & marketing process

Deliver business apps to enterprises

Steel fabrication company

Challenges managing customer relationship, supply-chain & documents

Cloud services are streamlining processes

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Mobile + Cloud Opportunities

Gaming & in-app purchase for consumers

Mobile advertising is $3 billion + market in US, 100% increase

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Business Agility

Leverage first mover advantage with cloud with accelerated time to market

Reduce time & cost

Quick experimentation & testing via cloud

Higher margins during early stages can lead to higher NPV

Competitive advantage

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Leverage BYOD/BYOS

Bring-Your-Own-Device/Service (BYOD/BYOS)

BYOD accepted in 50% + companies

Increasing trend towards BYOS

Consumerization of IT services

77% online adults use one personal online service like DropBox

Advantages

Improved employee satisfaction & performance

Penetrate enterprises where you do not exist

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Source: http://www.crunchyfriday.com/from-byod-to-byos-a-new-service-model-for-enterprise/

Superior Customer Experience

Personal fitness

Time, distance, pace, calories

Social

Analytics

18 m users

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Easier workflows

Lower entry cost, Latest

Customer insights

Purchase influencers, most used, highest satisfaction, segmentation, price elasticity

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Revenue Models

Cloud

Subscription

Flat fee

Pay per use

Per-click

Per-cycle

API usage

Resource Usage

Pre-paid, Post Paid

Cloud + Mobile

App store sales

Mobile advertising

In-app purchase

Freemium

Mobile commerce

Coupons/loyalty

Success Metrics

Average revenue per user (ARPU)

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Conclusion

Cloud must be used for strategic advantage

Future is trending towards cloud services delivered via mobile

Sustainable monetization models are possible

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Questions?

hemant@crunchyfriday.com

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