Sarah Friar. Managing Director, Senior Software Analyst Goldman Sachs. Agenda. Macro Backdrop and Key IT Themes. Information Security Ramifications. 3. Setting the Scene. Macro backdrop improving; emerging market growth strong CIO spending plans healthy; corporate balance sheets cash rich
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Managing Director, Senior Software Analyst
Macro Backdrop and Key IT Themes
Information Security Ramifications
Macro backdrop improving; emerging market growth strong
CIO spending plans healthy; corporate balance sheets cash rich
Technology and M&A landscape as vibrant as 2000
Cloud shift dramatic; similar to mainframe/ client-server/ Internet shifts
Mobility and Social changing the face of computing as we know it
Significant ramifications for security
What percentage of your enterprise compute workload (excluding SaaS applications) is delivered via external (outside the firewall) cloud computing providers (e.g., Amazon EC2, Rackspace Cloud, Google AppEngine, Microsoft Azure, etc.) and where do you anticipate that percentage will be three years from now?
Source: Goldman Sachs IT Spending Survey.
SaaS remains largely underpenetrated, hence we expect it to grow at 4X the rate of on-premise, as early hurdles have been mostly cleared and the downturn focused attention on the strong ROI case.
Growth in SaaS vs. on-premise enterprise applications and SaaS as a % of total
Source: IDC, Goldman Sachs Research estimates
Mobile data growth is significantly out-pacing overall IP traffic growth. .
Per Cisco’s Visual Networking Index from June 2010 mobile data traffic is expected to double every year through 2014, increasing 39 times between 2009 and 2014.
Rise of tablets and smartphones, taking the PC world by storm
Units in millions
Source: Goldman Sachs Research estimates
Social software market is nascent, but growing
Market for social applications, $ millions
Do you currently make use of social software in your enterprise? If yes which vendors ?
Source: Global Sachs IT Survey
Tech consolidators have ample cash and the software group has more potential takeout candidates than any other sector… Market capitalization of GS Technology coverage with an M&A score of 1 or 2 versus cash of tech consolidators ($ billions) as of 12/31/2010
Source: Goldman Sachs Research, FactSet. Note: Apple's cash balance includes $25 billion in long-term marketable securities.
Source: Goldman Sachs Research estimates.
Prices as of 12/31/2010.
Is your % of security spending as a % of overall IT spending increasing or decreasing or staying the same?
Please indicate how you expect your spending to change for each product area over the next 12 months, relative to current levels
Customers want “Secure Products” not “Security Products”
M&A activity has shifted the security discussion inside of larger IT giants
Oblix, Crosslogix, etc => Oracle
ArcSight => HP
Defense companies also buying. Harris => Signacert
More likely to see platforms continue to expand than new, sizeable companies created.