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The STEEP Forces Driving
Cloud Computing
a Presentation for:
by Craig Rispin, Business Futurist
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The STEEP Forces Driving
Cloud Computing
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The STEEP Forces Driving
Cloud Computing
Social
Technological
Economic
Environmental
Political & Legal
F
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C
E
S

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What is Cloud Computing?

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“Cloud
Computing isn’t
really about
technology - it’s
really about
thinking of IT in a
whole new way.”

The
IT
Industry
is
now
in
a
huge
paradigm
shi4
where
companies
will
move
from
expensive
IT
professional
staff
and
infrastructure,
to
smaller
IT
staffs
and
ge<ng
their
services
across
the
Internet
from
large
providers
like
Microso4,
Google,
etc.
This
is
called
“cloud
compuBng.
THE PREMISE

ENERGY

ENERGY

ENERGY

HOW WILL THIS WORK?
•
Simplified
worksta1ons
•
Less
Hardware
•
Less
So5ware
•
Internet
will
host
programs
•
Can
lease
hardware
•
Less
In-­‐House
IT

COMPUTERS

COMPUTERS

NO BOTTLENECKS
“When
the
network
becomes
as
fast
as
the
processor,
the
computer
hollows
out
and
spreads
across
the
network.”
-­‐Eric
Schmidt,
1993

• Low
cost-­‐of-­‐ownership
and
cost
predictability
• Immediate
deployment
• Scale
up
or
down
as
needed,
with
no
risk
• Any1me,
anywhere
access
to
informa1on
• Business-­‐class
messaging
and
collabora1on
• Secure
and
reliable
performance
for
the
highest
produc1vity
• Keep
up
with
technology
with
no
change
in
price
• They
perform
the
backups
and
restores
• Less
energy
consump1on
PROS

• Lack
of
control
• Rely
on
others
• Rely
on
bandwidth
• Lack
of
flexibility
• Response
1me
for
issues
CONS

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The STEEP Forces Driving
Cloud Computing Adoption
Social
Technological
Economic
Environmental
Political & Legal
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Social Forces - Consumer

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The Connected Generation -
Social Forces - Consumer

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The Connected Generation -
Social Forces - Consumer
Living in the Cloud

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The Connected Generation -
Social Forces - Consumer
Living in the Cloud

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Social Forces - Consumer

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Social Forces - Consumer

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Social Forces - Consumer

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Social Forces - Business

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Social Forces - Business
Emerging Technologies Priority Matrix 2010
benefit years to mainstream adoption
less than 2 years 2 to 5 years 5 to 10 years more than 10 years
transformational Cloud Computing
Cloud/Web Platforms
Media Tablet
3D Printing
Context Delivery
Architecture
Extreme Transaction
Processing
Autonomous Vehicles
Human Augmentation
Mobile Robots
Terahertz Waves
high Mobile Application
Stores
Predictive Analytics
Activity Streams
E-Book Readers
Electronic Paper
Interactive TV
Internet Micropayment
Systems
Location-Aware
Applications
Private Cloud Computing
Social Analytics
Augmented Reality
Internet TV
Virtual Assistants
Wireless Power
Mesh Networks: Sensor
moderate Consumer-Generated
Media
Pen-Centric Tablet PCs
3D Flat-Panel TVs and
Displays
Biometric Authentication
Methods
Gesture Recognition
Idea Management
Microblogging
Speech Recognition
Video Telepresence
4G Standard
Public Virtual Worlds
Speech-to-Speech
Translation
Video Search
Computer-Brain Interface
low Tangible User Interfaces

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Social Forces - Business
Emerging Technologies Priority Matrix 2010
benefit years to mainstream adoption
less than 2 years 2 to 5 years 5 to 10 years more than 10 years
transformational Cloud Computing
Cloud/Web Platforms
Media Tablet
3D Printing
Context Delivery
Architecture
Extreme Transaction
Processing
Autonomous Vehicles
Human Augmentation
Mobile Robots
Terahertz Waves
high Mobile Application
Stores
Predictive Analytics
Activity Streams
E-Book Readers
Electronic Paper
Interactive TV
Internet Micropayment
Systems
Location-Aware
Applications
Private Cloud Computing
Social Analytics
Augmented Reality
Internet TV
Virtual Assistants
Wireless Power
Mesh Networks: Sensor
moderate Consumer-Generated
Media
Pen-Centric Tablet PCs
3D Flat-Panel TVs and
Displays
Biometric Authentication
Methods
Gesture Recognition
Idea Management
Microblogging
Speech Recognition
Video Telepresence
4G Standard
Public Virtual Worlds
Speech-to-Speech
Translation
Video Search
Computer-Brain Interface
low Tangible User Interfaces

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Social Forces - Business
Emerging Technologies Priority Matrix 2010
benefit years to mainstream adoption
less than 2 years 2 to 5 years 5 to 10 years more than 10 years
transformational Cloud Computing
Cloud/Web Platforms
Media Tablet
3D Printing
Context Delivery
Architecture
Extreme Transaction
Processing
Autonomous Vehicles
Human Augmentation
Mobile Robots
Terahertz Waves
high Mobile Application
Stores
Predictive Analytics
Activity Streams
E-Book Readers
Electronic Paper
Interactive TV
Internet Micropayment
Systems
Location-Aware
Applications
Private Cloud Computing
Social Analytics
Augmented Reality
Internet TV
Virtual Assistants
Wireless Power
Mesh Networks: Sensor
moderate Consumer-Generated
Media
Pen-Centric Tablet PCs
3D Flat-Panel TVs and
Displays
Biometric Authentication
Methods
Gesture Recognition
Idea Management
Microblogging
Speech Recognition
Video Telepresence
4G Standard
Public Virtual Worlds
Speech-to-Speech
Translation
Video Search
Computer-Brain Interface
low Tangible User Interfaces
Gartner states that Cloud computing is
"changing the way the IT industry looks
at user and vendor relationships."

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Technological Forces

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Technological Forces
Processors

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Technological Forces
Storage
Processors

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Technological Forces
Bandwidth
Storage
Processors

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Technological Forces
Bandwidth
Storage
Processors
Services/Apps

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Technological Forces

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The $110 PC

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Technological Forces - Storage

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Technological Forces
We’ve Come
Full Circle

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Technological Forces
Mainframes
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
Client/Server
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
Client/Server
Internet
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
Client/Server
Internet
Mobile Computing
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
Client/Server
Internet
Mobile Computing
Smart Phones
We’ve Come
Full Circle

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Technological Forces
Mainframes
Minicomputers
Workstations
PC’s
Client/Server
Internet
Mobile Computing
Cloud Computing
Smart Phones
We’ve Come
Full Circle

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20
40
60
80
100
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
Subscribers(MM)
iPhone + iTouch NTT docomo i-mode AOL Netscape
7
iPhone + iTouch vs. NTT docomo i-mode vs. AOL vs. Netscape Users
First 20 Quarters Since Launch
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Desktop Internet
AOL*
v 2.0 Launched 9/94
Mobile Internet
NTT docomo i-mode
Launched 6/99
Mobile Internet
iPhone + iTouch
Launched 6/07
~85MM
~31MM
~8MM
Desktop Internet
Netscape*
Launched 12/94
~18MM
Mobile Internet Ramping Faster than Desktop Internet Did –
Apple Leading Charge

Up
20
40
60
80
100
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
Subscribers(MM)
iPhone + iTouch NTT docomo i-mode AOL Netscape
7
iPhone + iTouch vs. NTT docomo i-mode vs. AOL vs. Netscape Users
First 20 Quarters Since Launch
!"#$%&'()*&+,-+./0-$/+&12#2&3"#&242052-5$&-$6"/$&789%:;<&!$#+.2=$&,+$/+&50>0#$1&#"&?@&"35AB&C"/D23&@#235$A&E$+$2/.F&$+#0>2#$+&
GHICC&3$#-""J+&F24$&+F0==$1&03&60/+#&KI&L,2/#$/+&+03.$&52,3.F&MKINIOPB&@",/.$%&7">=23A&E$="/#+&Q&C"/D23&@#235$A&E$+$2/.FB
Desktop Internet
AOL*
v 2.0 Launched 9/94
Mobile Internet
NTT docomo i-mode
Launched 6/99
Mobile Internet
iPhone + iTouch
Launched 6/07
~85MM
~31MM
~8MM
Desktop Internet
Netscape*
Launched 12/94
~18MM
Mobile Internet Ramping Faster than Desktop Internet Did –
Apple Leading Charge

Up
20
40
60
80
100
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
Subscribers(MM)
iPhone + iTouch NTT docomo i-mode AOL Netscape
7
iPhone + iTouch vs. NTT docomo i-mode vs. AOL vs. Netscape Users
First 20 Quarters Since Launch
!"#$%&'()*&+,-+./0-$/+&12#2&3"#&242052-5$&-$6"/$&789%:;<&!$#+.2=$&,+$/+&50>0#$1&#"&?@&"35AB&C"/D23&@#235$A&E$+$2/.F&$+#0>2#$+&
GHICC&3$#-""J+&F24$&+F0==$1&03&60/+#&KI&L,2/#$/+&+03.$&52,3.F&MKINIOPB&@",/.$%&7">=23A&E$="/#+&Q&C"/D23&@#235$A&E$+$2/.FB
Desktop Internet
AOL*
v 2.0 Launched 9/94
Mobile Internet
NTT docomo i-mode
Launched 6/99
Mobile Internet
iPhone + iTouch
Launched 6/07
~85MM
~31MM
~8MM
Desktop Internet
Netscape*
Launched 12/94
~18MM
Mobile Internet Ramping Faster than Desktop Internet Did –
Apple Leading Charge

Up
20
40
60
80
100
Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19
Quarters Since Launch
Subscribers(MM)
iPhone + iTouch NTT docomo i-mode AOL Netscape
7
iPhone + iTouch vs. NTT docomo i-mode vs. AOL vs. Netscape Users
First 20 Quarters Since Launch
!"#$%&'()*&+,-+./0-$/+&12#2&3"#&242052-5$&-$6"/$&789%:;<&!$#+.2=$&,+$/+&50>0#$1&#"&?@&"35AB&C"/D23&@#235$A&E$+$2/.F&$+#0>2#$+&
GHICC&3$#-""J+&F24$&+F0==$1&03&60/+#&KI&L,2/#$/+&+03.$&52,3.F&MKINIOPB&@",/.$%&7">=23A&E$="/#+&Q&C"/D23&@#235$A&E$+$2/.FB
Desktop Internet
AOL*
v 2.0 Launched 9/94
Mobile Internet
NTT docomo i-mode
Launched 6/99
Mobile Internet
iPhone + iTouch
Launched 6/07
~85MM
~31MM
~8MM
Desktop Internet
Netscape*
Launched 12/94
~18MM
Mobile Internet Ramping Faster than Desktop Internet Did –
Apple Leading Charge
380M

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Big Really Soon: Augmented Reality
Minority Report 2002
Powerful Displays
Tapping into the
Cloud

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Big Really Soon: Augmented Reality
Minority Report 2002
Powerful Displays
Tapping into the
Cloud

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Big Really Soon: Augmented Reality
Minority Report 2002
Powerful Displays
Tapping into the
Cloud

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Economic Forces - The GFC

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Economic Forces - The GFC
GFC Drove Driving Cloud Adoption

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Economic Forces - The GFC
GFC Drove Driving Cloud Adoption

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Economic Forces - The GFC
GFC Drove Driving Cloud Adoption
“They’re saying that they don’t want to
have cap-ex on their books.
You need to help me deploy a solution that
doesn’t have a large amount of cap-ex on
my books. As soon as the CFO sees it, it
isn’t going to go anywhere.”

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Environmental Forces - Power Concerns

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Environmental Forces - Power Concerns
Outdated hardware uses significantly more
power and cooling costs.

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Environmental Forces
Growing costs to the environment and the
bottom line drives Cloud Computing adoption.

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Environmental Forces
Growing costs to the environment and the
bottom line drives Cloud Computing adoption.
Forrester Research estimates IT power costs now
at 11% of total power costs for organisations.
It could quickly reach 22-25%.
“At that point CEOs will be asking big
questions if they aren’t already. Many
companies will be looking to outsource their
growing power and cooling costs - driving
many to Cloud Computing offerings.”

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Political & Legal Forces

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Political & Legal Forces
Compliance Gets More Complicated -
Which Drives Cloud Computing Adoption

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Political & Legal Forces
Compliance Gets More Complicated -
Which Drives Cloud Computing Adoption
CaaS (Compliance as a Service) is an area that is just emerging.
Telstra is providing one of the first examples of this with
Workforce Guardian.

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Political & Legal Forces
Compliance Gets More Complicated -
Which Drives Cloud Computing Adoption
CaaS (Compliance as a Service) is an area that is just emerging.
Telstra is providing one of the first examples of this with
Workforce Guardian.

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In Conclusion

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In Conclusion
STEEP forces are driving adoption of
Cloud Computing

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In Conclusion
STEEP forces are driving adoption of
Cloud Computing
We’re just at the beginning of the
market

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In Conclusion
STEEP forces are driving adoption of
Cloud Computing
We’re just at the beginning of the
market
Invest in the Cloud to compete in the
future

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The STEEP Forces Driving
Cloud Computing Adoption
Social
Technological
Economic
Environmental
Political
F
O
R
C
E
S