What is Happening?
As Saugatuck has been reporting for some time now, there is an historic change underway, building on the foundations of the Cloud transition. 2012 was perhaps the most dramatic year in ISV-to-Cloud and pureplay-Cloud startup activity, and the catalyst for this was the growth of Mobile, Social and Analytics platforms driving the evolution of the Boundary-free EnterpriseTM.
Why is it Happening?
We have witnessed, and continue to witness, the shift from On-premises data processing to the Cloud and Hybrid-Cloud platforms that drive SaaS, PaaS and IaaS. We know Enterprise buyers have clearly indicated their preferences for deploying these Cloud and Hybrid solutions, and there appears to be a convergence of Cloud and Hybrid Cloud into a single buying and deployment preference (See Figure 1 – Cloud, Hybrid and On-premises Deployments: Note Cloud and Hybrid Convergence).
Figure 1: Cloud, Hybrid and On-Premises Deployments 2012-1016
Source: Saugatuck Technology, 2012 Cloud Survey N=228
Coincident with the decline in On-premises deployments and the rise in the Converged Cloud is a dramatic rise in the Mobile, Social and Analytics platforms that enable the Boundary-free EnterpriseTM.
Recent surveys with Enterprise buyers combined with survey and interview-based research transitioning ISVs and Cloud pure-play startups emphasize the significant investments that are being made in Mobile, Social and Analytics platform over the past year. We are in the process of deploying our Spring 2013 Cloud survey that will help us to capture even more data concerning these aspects of the Boundary-free EnterpriseTM. However, there can be no doubt that Mobile, Social and Analytics platforms – and their intersection points – offer almost limitless opportunities for innovative Cloud business solutions to ISVs, Cloud Pure Plays and Enterprises alike.
Saugatuck research has revealed that the greatest commercial opportunity at present and through year-end 2015 will be in Mobile and Analytics solutions. Social Business continues to rely on the free-advertising model for most of its revenues, and while consumer use is considerable, the monetization of Social Business platforms is still widely uncertain. While some industry segments are significantly leveraging all three of these platforms (e.g., Media / Entertainment), along with Cloud, a more common trend is a laser-like focus on Mobile and Analytic investments (e.g., Financial Services, Health Care, Pharma).
Nevertheless, these three key underpinnings of the Boundary-free Enterprise will grow explosively through the next two years, with the size of the market for these offerings doubling over the period, while proportionally remaining consistent (See Figure 2: Mobile, Social, Analytics Platforms: Two-fold Growth, Proportions Unchanged).
Figure 2: Mobile, Social, Analytics Platforms: Two-fold Growth, Proportions Unchanged
Source: Saugatuck Technology, 2013
Perhaps the greatest interest from investors and innovative startups alike is at the intersections of these three platforms, i.e., Social Analytics, Mobile Social, and Mobile Analytics. For example, Social Analytics continues to attract investment as advertising, sales and marketing inputs in real time and are a highly valuable form of information that can lead directly to revenue. Razorfish founder Jeffrey Dachis’ new startup Dachis Group has recently raised $7.5 million in series C financing, led by Austin Ventures, bringing the company’s venture funding to $58.5 million.
The Mobile Social realm is richly populated with niche offerings, and today Facebook announced Home, a new family of social apps Mark Zuckerberg announced that is “designed around people” for use on an Android device. Finally, Mobile Analytics is a very hot category that is about to explode. Mixpanel, a startup backed by Andreesen Horowitz, Sequoia Capital and Y Combinator, is an analytics platform for mobile devices and the Cloud web, analyzing over six billion actions monthly with a full range of participation options from free to enterprise.
The Boundary-free EnterpriseTM is evolving rapidly. Enterprises, ISVs and Cloud startups have accelerated their commitments to the Cloud, and we can now see a clear convergence between the pure-play Cloud and the Hybrid Cloud. By 2017 the Converged Cloud, enabled by computing platforms for Mobile, Social and Analytics, will bring forth a new wave of innovative startups and redesigned ISV solutions at the intersection points of Social Analytics, Mobile Social, and Mobile Analytics that will transform traditional business solutions. This transformation will redefine corporate boundaries, relationships between buyers and suppliers, the employer-employee relationship, the network of customer associations, and the analysis and sharing of information, globally and around the clock, and will redefine the nature of work.