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SaaS Metrics 2.0 – A Guide to Measuring and Improving What Matters
SaaS/subscription businesses are more complex than traditional businesses

“If you cannot measure it, you cannot improve it” – Lord Kelvin

This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite of an older post.  For this version, I have co-opted two real experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of Strategy, HubSpot), to add expertise, color and commentary from the viewpoint of a public and private SaaS company. My sincere thanks to both of them for their time and input.

SaaS/subscription businesses are more complex than traditional businesses. Traditional business metrics totally fail to capture the key factors that drive SaaS performance. In the SaaS world, there are a few key variables that make a big difference to future results. This post is aimed at helping SaaS executives understand which variables really matter, and how to measure them and act on the results.

The goal of the article is to help you answer the following questions:

  • Is my business financially viable?
  • What is working well, and what needs to be improved?
  • What levers should management focus on to drive the business?
  • Should the CEO hit the accelerator, or the brakes?
  • What is the impact on cash and profit/loss of hitting the accelerator?

(Note: although I focus on SaaS specifically, the article is applicable to any subscription business.)

What's so different about SaaS?
SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime). If a customer is happy with the service, they will stick around for a long time, and the profit that can be made from that customer will increase considerably. On the other hand if a customer is unhappy, they will churn quickly, and the business will likely lose money on the investment that they made to acquire that customer. This creates a fundamentally different dynamic to a traditional software business: there are now two sales that have to be accomplished:

  1. Acquiring the customer
  2. Keeping the customer (to maximize the lifetime value).

Because of the importance of customer retention, we will see a lot of focus on metrics that help us understand retention and churn. But first let's look at metrics that help you understand if your SaaS business is financially viable.

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The SaaS P&L / Cash Flow Trough

SaaS businesses face significant losses in the early years (and often an associated cash flow problem). This is because they have to invest heavily upfront to acquire the customer, but recover the profits from that investment over a long period of time. The faster the business decides to grow, the worse the losses become. Many investors/board members have a problem understanding this, and want to hit the brakes at precisely the moment when they should be hitting the accelerator.

In many SaaS businesses, this also translates into a cash flow problem, as they may only be able to get the customer to pay them month by month. To illustrate the problem, we built a simple Excel model which can be found here.  In that model, we are spending $6,000 to acquire the customer, and billing them at the rate of $500 per month. Take a look at these two graphs from that model:

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If we experience a cash flow trough for one customer, then what will happen if we start to do really well and acquire many customers at the same time? The model shows that the P&L/cash flow trough gets deeper if we increase the growth rate for the bookings.

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But there is light at the end of the tunnel, as eventually there is enough profit/cash from the installed base to cover the investment needed for new customers. At that point the business would turn profitable/cash flow positive - assuming you don't decide to increase spending on sales and marketing. And, as expected, the faster the growth in customer acquisition, the better the curve looks when it becomes positive.

Ron Gill, NetSuite:

If plans go well, you may decide it is time to hit the accelerator (increasing spending on lead generation, hiring additional sales reps, adding data center capacity, etc.) in order to pick-up the pace of customer acquisition. The thing that surprises many investors and boards of directors about the SaaS model is that, even with perfect execution, an acceleration of growth will often be accompanied by a squeeze on profitability and cash flow.

As soon as the product starts to see some significant uptake, investors expect that the losses / cash drain should narrow, right? Instead, this is the perfect time to increase investment in the business. which will cause losses to deepen again. The graph below illustrates the problem:

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Notice in the example graph that the five customer per month model ultimately yields a much steeper rate of growth, but you have to go through another deep trough to get there. It is the concept of needing to re-enter that type of trough after just having gotten the curve to turn positive that many managers and investors struggle with.

Of course this a special challenge early-on as you need to explain to investors why you'll require additional cash to fund that next round of acceleration. But it isn't just a startup problem. At NetSuite, even as a public company our revenue growth rate has accelerated in each of the last three years. That means that each annual plan involves a stepping-up of investment in lead generation and sales capacity that will increase spending and cash flow out for some time before it starts yielding incremental revenue and cash flow in. As long as you're accelerating the rate of revenue growth, managing and messaging around this phenomenon is a permanent part of the landscape for any SaaS company.

Why is growth important?
We have suggested that as soon as the business has shown that it can succeed, it should invest aggressively to increase the growth rate. You might ask question: Why?

SaaS is usually a "winner-takes-all" game, and it is therefore important to grab market share as fast as possible to make sure you are the winner in your space. Provided you can tell a story that shows that eventually that growth will lead to profitability, Wall Street, acquiring companies, and venture investors all reward higher growth with higher valuations. There's also a premium for the market leader in a particular space.

However not all investments make sense. In the next section we will look at a tool to help you ensure that your growth initiatives/investments will pay back:  Unit Economics.

A Powerful Tool: Unit Economics
Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable. We need some tools to help us figure this out.

A great way to understand any business model is to answer the following simple question:

Can I make more profit from my customers than it costs me to acquire them?

This is effectively a study of the unit economics of each customer. To answer the question, we need two metrics:

  • LTV - the Lifetime Value of a typical customer
  • CAC - the Cost to Acquire a  typical Customer

(For more on how to calculate LTV and CAC, click here.)

Entrepreneurs are usually overoptimistic about how much it costs to acquire a customer. This probably comes from a belief that customers will be so excited about what they have built, that they will beat a path to their doors to buy the product. The reality is often very different! (I have written more on this topic here: Startup Killer: The Cost of Customer Acquisition, and here: How Sales Complexity impacts CAC.)

Is your SaaS business viable?
In the first version of this article, I introduced two guidelines that could be used to judge quickly whether your SaaS business is viable. The first is a good way to figure out if you will be profitable in the long run, and the second is about measuring the time to profitability (which also greatly impacts capital efficiency).

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Over the last two years, I have had the chance to validate these guidelines with many SaaS businesses, and it turns out that these early guesses have held up well. The best SaaS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8. And many of the best SaaS businesses are able to recover their CAC in 5-7 months. However many healthy SaaS businesses don't meet the guidelines in the early days, but can see how they can improve the business over time to get there.

The second guideline (Months to Recover CAC)  is all about time to profitability and cash flow. Larger businesses, such as wireless carriers and credit card companies, can afford to have a longer time to recover CAC, as they have access to tons of cheap capital. Startups, on the other hand, typically find that capital is expensive in the early days.  However even if capital is cheap, it turns out that Months to recover CAC is a very good predictor of how well a SaaS business will perform. Take a look at the graph below, which comes from the same model used earlier. It shows how the profitability is anemic if the time to recover CAC extends beyond 12 months.

I should stress that these are only guidelines, there are always situations where it makes sense to break them.

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Three uses for the SaaS Guidelines

  1. One of the key jobs of the CEO is to decide when to hit the accelerator pedal. The value of these two guidelines is that they help you understand when you have a SaaS business that is in good shape, where it makes sense to hit the accelerator pedal. Alternatively if your business doesn't meet the guidelines, it is a good indicator that there is more tweaking needed to fix the business before you should expand.
  2. Another way to use the two guidelines is for evaluating different lead sources. Different lead sources (e.g. Google AdWords, TV, Radio, etc.) have different costs associated with them. The guidelines help you understand if some of the more expensive lead generation options make financial sense. If they meet these guidelines, it makes sense to hit the accelerator on those sources (assuming you have the cash).Using the second guideline, and working backwards, we can tell that if we are getting paid $500 per month, we can afford to spend up to 12x that amount (i.e. $6,000) on acquiring the customer. If we're spending less than that, you can afford to be more aggressive and spend more in marketing or sales.
  3. There is another important way to use this type of guideline: segmentation. Early-stage companies are often testing their offering with several different uses/types of customers / pricing models / industry verticals. It is very useful to examine which segments show the quickest return or highest LTV to CAC in order to understand which will be the most profitable to pursue.

Unit Economics in Action: HubSpot Example
HubSpot's unit economics were recently published in an article in Forbes:

You can see from the second row in this table how they have dramatically improved their unit economics (LTV:CAC ratio) over the five quarters shown. The big driver for this was lowering the MRR Churn rate from 3.5% to 1.5%. This drove up the lifetime value of the customer considerably.  They were also able to drive up their AVG MRR per customer.

Brad Coffey, HubSpot:

In 2011 and early 2012 we used this chart to guide many of our business decisions at HubSpot. By breaking LTV:CAC down into its components we could examine each metric and understand what levers we could pull to drive overall improvement.

It turned out that the levers we could pull varied by segment. In the SMB market for instance we had the right sales process in place - but had an opportunity to improve LTV by improving the product to lower churn and increasing our average price in the segment. In the VSB (Very Small Business) segment, by contrast, there wasn't as much upside left on the LTV (VSB customers have less money and naturally higher churn) so we focused on lowering CAC by removing friction from our sales process and moving more of our sales to the channel.

Two kinds of SaaS business:

There are two kinds of SaaS business:

  • Those with primarily monthly contracts, with some longer term contracts. In this business, the primary focus will be on MRR (Monthly Recurring Revenue)
  • Those with primarily annual contracts, with some contracts for multiple years. Here the primary focus is on ARR (Annual Recurring Revenue), and ACV (Annual Contract Value).

Most of the time in this article, I will refer to MRR/ACV. This means use MRR if you are the first kind of business, or ACV if you are the second kind of business. The dashboard shown below assumes monthly contracts (MRR). However in the downloadable spreadsheet, there is a tab that shows the same dashboard for the second kind, focusing on ACV instead of MRR.

SaaS Bookings: Three Contributing Elements
Every month in a SaaS business, there are three elements that contribute to how much MRR will change relative to the previous month:

What happened with new customers added in the month:

  • New MRR (or ACV)

What happened in the installed base of customers:

  • Churned MRR (or ACV) (from existing customers that cancelled their subscription. This will be a negative number.)
  • Expansion MRR (or ACV) (from existing customers who expanded their subscription)

The sum all three of these makes up your Net MRR or ACV Bookings:

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I recommend that you track these using a chart similar to the one below:

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This chart shows the three components of MRR (or ACV) Bookings, and the Net New MRR (or ACV) Bookings. By breaking out each component, you can track the key elements that are driving your business. The one variation we would recommend making to this chart is to show a dotted line for the plan, so you can track how you are doing against plan for each of the four lines. This is one of the most important charts to help you understand and run your business.

Ron Gill, NetSuite:

This chart is really good. I also like to look at this data in tabular form because I want to know y-o-y growth rates. E.g. "Net new MRR is up 25% over June of last year". The Y-o-Y % is a metric easily compared with increased spending, sales capacity, etc.

The Importance of Customer Retention (Churn)

In the early days of a SaaS business, churn really doesn't matter that much. Let's say that you lose 3% of your customers every month. When you only have a hundred customers, losing 3 of them is not that terrible. You can easily go and find another 3 to replace them. However as your business grows in size, the problem becomes different. Imagine that you have become really big, and now have a million customers. 3% churn means that you are losing 30,000 customers every month! That turns out to be a much harder number to replace. Companies like Constant Contact have run into this problem, and it has made it very hard for them to keep up their growth rate.

Ron Gill, NetSuite:

One oft-overlooked aspect of churn is that the churn rate, combined with the rate of new ARR adds, not only defines how fast you can grow the business, it also defines the maximum size the business can reach (see graph below).

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It is an enlightening exercise to build a simple model like this for your business and plot where your current revenue run rate sits on the blue line defined by your present rate of ARR adds and churn. Are you near the left-hand side, where the growth is still steep and the ceiling is still far above? Or, are you further to the right where revenue growth will level off and there is limited room left to grow? How much benefit will you get from small improvements in churn or the pace of new business sign-up?

At NetSuite, we've had great success shifting the line in the last few years by both dramatically decreasing churn and by increasing average deal size and volume, thus increasing ARR adds. The result was both to steadily move the limit upward and to steepen the growth curve at the current ARR run rate, creating room for increasingly rapid expansion.

The Power of Negative Churn
The ultimate solution to the churn problem is to get to Negative Churn.

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There are two ways to get this expansion revenue:

  1. Use a pricing scheme that has a variable axis, such as the number of seats used, the number of leads tracked, etc. That way, as your customers expand their usage of your product, they pay you more.
  2. Upsell/Cross-sell them to more powerful versions of your product, or additional modules.

To help illustrate the power of negative churn, take a look at the following two graphs that show how cohorts behave with 3% churn, and then with 3% negative churn. (Since this is the first time I have used the word Cohort, let me explain what it means. A cohort is simply a fancy word for a group of customers. In the SaaS world, it is used typically to describe the group that joined in a particular month. So there would be the January cohort, February cohort, etc.  In our graphs below, a different color is used for each month's cohort, so we can see how they decline or grow, based on the churn rate.)

In the top graph, we are losing 3% of our revenue every month, and you can see that with a constant bookings rate of $6k per month, the revenue reaches $140k after 40 months, and growth is flattening out. In the bottom graph, we may be losing some customers, but the remaining customers are more than making up for that with increased revenue. With a negative churn rate of 3%, we reach $450k in revenue (more then 3x greater), and the growth in revenues is increasing, not flattening.

imageimage

For more on this topic, you may wish to refer to these two blog posts of mine:

Read the original blog entry...

About David Skok
David Skok joined Matrix Partners as a General Partner in May 2001. He has a wealth of experience running companies. He started his first company in 1977 at age 22. Since then he has founded a total of four separate companies and performed one turn-around. Three of these companies went public.

Skok joined Matrix from SilverStream Software, which he founded in June 1996. Prior to its July 2002 acquisition by Novell, SilverStream was a public company that had reached a revenue run rate in excess of $100M, with approximately 800 employees and offices in more than 20 countries around the world. His work as a value added investor is best known for helping JBoss take its Open Source business to a successful exit with its sale to Red Hat, and for helping AppIQ, Tabblo and Diligent Technologies, which have all had successful exits, from their inceptions to their acquisitions by HP and IBM.

He serves on the boards of Digium (makers of the very popular Asterisk Open Source PBX/telephony software), CloudSwitch, Enservio, OpenSpan, Solidworks, VideoIQ, and HubSpot. In addition to his broad focus on enterprise software, he is specifically focused on the areas of cloud computing, Open Source, Software as a Service (SaaS), marketing automation, virtualization, storage, and data center automation.

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Cloud Expo - Cloud Looms Large on SYS-CON.TV


Cloud Expo 2013 East Opening Keynote by IBM
In this Cloud Expo Keynote, Danny Sabbah, CTO & General Manager, Next Generation Platform, will detail the critical architectural considerations and success factors organizations must internalize to successfully implement, optimize and innovate using next generation architectures.
Lisa Larson, Vice President of Enterprise Cloud Solutions of Rackspace Hosting Live From New York City
In the old world of IT, if you didn't have hardware capacity or the budget to buy more, your project was dead in the water. Budget constraints can leave some of the best, most creative and most ingenious innovations on the cutting room floor. It's a true dilemma for developers and innovators – why spend the time creating, when a project could be abandoned in a blink? That was the old world. In the new world of IT, developers rule. They have access to resources they can spin up instantly. A hybrid cloud ignites innovation and empowers developers to focus on what they need. A hybrid cloud blends the best of all worlds, public cloud, private cloud and dedicated servers to fit the needs of developers and offer the ideal environment for each app and workload without the constraints of a one-size-fits-all cloud.

Keynote: Driving Cloud Innovation: SSDs Change Cloud Storage Paradigm
Cloud is a transformational shift in computing that can have a powerful effect on enterprise IT when designed correctly and used to its full potential. Join Citrix in a discussion that centers on building, connecting and empowering users with cloud services and hear examples of how enterprises are solving real-world business challenges with an architecture and solution purpose-built for the cloud.

Go Beyond IaaS to Deliver "Anything As a Service"
Many organizations want to expand upon the IaaS foundation to deliver cloud services in all forms—software, mobility, infrastructure and IT. Understanding the strategy, planning process and tools for this transformation will help catalyze changes in the way the business operates and deliver real value. Join us to learn about the new ITaaS model and how to begin the transformation.


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While unprecedented technological advances have been made in healthcare in areas such as genomics, digital imaging and Health Information Systems, access to this information has been not been easy for both the healthcare provider and the patient themselves. Regulatory compliance and controls, information lock-in in proprietary Electronic Health Record systems and security concerns have made it difficult to share data across health care providers.
Cloud Expo, Inc. has announced today that Vanessa Alvarez has been named conference chair of Cloud Expo® 2014. 14th International Cloud Expo will take place on June 10-12, 2014, at the Javits Center in New York City, New York, and 15th International Cloud Expo® will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
12th International Cloud Expo, held on June 10–13, 2013 at the Javits Center in New York City, featured four content-packed days with a rich array of sessions about the business and technical value of cloud computing led by exceptional speakers from every sector of the cloud computing ecosystem. The Cloud Expo series is the fastest-growing Enterprise IT event in the past 10 years, devoted to every aspect of delivering massively scalable enterprise IT as a service.
Ulitzer.com announced "the World's 30 most influential Cloud bloggers," who collectively generated more than 24 million Ulitzer page views. Ulitzer's annual "most influential Cloud bloggers" list was announced at Cloud Expo, which drew more delegates than all other Cloud-related events put together worldwide. "The world's 50 most influential Cloud bloggers 2010" list will be announced at the Cloud Expo 2010 East, which will take place April 19-21, 2010, at the Jacob Javitz Convention Center, in New York City, with more than 5,000 expected to attend.
It's a simple fact that the better sales reps understand their prospects' intentions, preferences and pain points during calls, the more business they'll close. Each day, as your prospects interact with websites and social media platforms, their behavioral data profile is expanding. It's now possible to gain unprecedented insight into prospects' content preferences, product needs and budget. We hear a lot about how valuable Big Data is to sales and marketing teams. But data itself is only valuable when it's part of a bigger story, made visible in the right context.
Cloud Expo, Inc. has announced today that Larry Carvalho has been named Tech Chair of Cloud Expo® 2014. 14th International Cloud Expo will take place on June 10-12, 2014, at the Javits Center in New York City, New York, and 15th International Cloud Expo® will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone talks about a cloud-first or mobile-first strategy. It's the trend du jour, and for good reason as these innovative technologies have revolutionized an industry and made savvy companies a lot of money. But consider for a minute what's emerging with the Age of Context and the Internet of Things. Devices, interfaces, everyday objects are becoming endowed with computing smarts. This is creating an unprecedented focus on the Application Programming Interface (API) as developers seek to connect these devices and interfaces to create new supporting services and hybrids. I call this trend the move toward an API-first business model and strategy.
We live in a world that requires us to compete on our differential use of time and information, yet only a fraction of information workers today have access to the analytical capabilities they need to make better decisions. Now, with the advent of a new generation of embedded business intelligence (BI) platforms, cloud developers are disrupting the world of analytics. They are using these new BI platforms to inject more intelligence into the applications business people use every day. As a result, data-driven decision-making is finally on track to become the rule, not the exception.
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New York City Expo Floor Plan Revealed
Cloud Expo New York
[June 11-14, 2012]

Floor Plan Revealed


Introducing Big Data Expo
Introducing
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Get a jump on that rapidly evolving trend at Big Data Expo, which we are introducing in June at
Cloud Expo New York.

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Testimonials
Cloud Expo was a fantastic event for CSS Corp - we easily exceeded our objectives for engaging with clients and prospects."
AHMAR ABBAS
SVP, Global Infrastructure Management, CSS Corp.
 
With our launch at Cloud Expo, we successfully transformed the company from a relatively unknown European player into the dominant player in the market. Our competitors were taken by surprise and just blown away. We got a huge number of really high quality leads..."
PETE MALCOLM
CEO, Abiquo
 
We were extremely pleased with Cloud Expo this year - I’d say it exceeded expectations all around. This is the same info we got from partners who attended as well. Nice job!"
MARY BASS
Director of Marketing, UnivaUD
 
Cloud Expo helps focus the debate on the critical issues at hand in effect connecting main street with the next frontier."

GREG O’CONNOR
President & CEO, Appzero


Who Should Attend?
Senior Technologists including CIOs, CTOs, VPs of technology, IT directors and managers, network and storage managers, network engineers, enterprise architects, communications and networking specialists, directors of infrastructure Business Executives including CEOs, CMOs, CIOs, presidents, VPs, directors, business development; product and purchasing managers.


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@CloudExpo Blogs
It’s conference season and, as you might expect, Jason and I have been on the road covering a bunch of them. It’s always great to see what the disruptive players in the market are doing — and this year did not disappoint. But there is one thing that repeatedly happens that just gets under my skin: transformation-washing. As Jason explained in a Forbes article over a year ago, ‘washing’ is when a vendor (or pundit) applies a buzzword loosely in an overt attempt to attach themselves to its buzz. And transformation-washing is rampant.
Networks have become large, complex entities that are increasingly difficult to manage and control. Security, audit, risk and compliance professionals know that their organizations rely on them for effective risk management, control and governance processes that are essential to the safety of their network environment. Yet compliance and security are more challenging than ever before as additional layers are added to this environment. One of the challenges lies in the fact that there is an ongoing, huge access gap in network security and compliance – and it has been residing within the enviro...
Some journey to cloud on a mission, others, a deadline. Change management is useful when migrating to public, private or hybrid cloud environments in either case. For most, stakeholder engagement peaks during the planning and post migration phases of a project. Legacy engagements are fairly direct: projects follow a linear progression of activities (the “waterfall” approach) – change managers and application coders work from the same functional and technical requirements. Enablement and development mirror one another, progressing from proof-of-concept planning to final product delivery. Exce...
While Artificial Intelligence (AI) may not be a new concept, its contribution to automation may just change the face of business. AI's conception dates as far back as 1950, when Alan Turing proposed the Turing test in order to evaluate a machine's ability to exhibit intelligent behavior. Fast-forward a couple of decades and research led to the creation of well-known theoretical tools such as Fuzzy Logic, Bayesian Networks, Markov Models and Neural Networks. Concurrently, new types of programming languages such as Prolog, LISP and Smalltalk set the scene for most of the modern interpreted langu...
Fingerspitzengefühl: A German word used to describe the ability to maintain attention to detail in an ever-changing operational and tactical environment by maintaining real-time situational awareness. The term is synonymous with the English expression of "keeping one's finger on the pulse". The problem with fingerspitzengefühl traditionally, in addition to pronouncing it, has been it is hard for an individual to scale up. Today that is changing. In a world of sensors, AI and mobile devices, having real-time situational awareness is far easier than ever before. In fact, today the challenge i...
The “Internet of Things” is an exciting area of tech, one in which industry experts estimate there will be more than 30 billion connected IoT devices by 2020. IoT is the inter-networking and instrumentation of physical devices – everything from streets, cars, factories, power grids, ice caps, satellites, and clothing to phones, microwaves, milk containers, planets, human bodies, etc. IoT creates an opportunity to measure, collect and analyze an ever-increasing variety of behavioral statistics. That being said, data, and more importantly insight into the data, is key for enhanced business val...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Gaining visibility in today’s sprawling cloud infrastructure is complex and laborious, involving drilling down into tools offered by various cloud services providers. Enterprise IT organizations need smarter and effective tools at their disposal in order to address this pertinent problem. Gaining a 360 - degree view of the cloud costs requires collection and analysis of the cost data across all cloud infrastructures used inside an enterprise.
Our work, both with clients and with tools, has lead us to wonder how it is that organizations are handling compliance issues in the cloud. The big cloud vendors offer compliance for their infrastructure, but the shared responsibility model requires that you take certain steps to meet compliance requirements. Which lead us to start poking around a little more. We wanted to get a picture of what was available, and how it was being used. There is a lot of fluidity in this space, as in all things cloud. The fact that DevOps Security plays into the cloud compliance model – particularly in dynamic ...
Making informed network investment decisions about emerging technologies such as network function virtualization (NFV) and software-defined networking (SDN) can help evolve the network to keep pace with the innovations of the devices and people it’s connecting. As you work with business leaders to make decisions about upgrading your infrastructure with these networking developments, it’s important to understand the similarities, differences, and benefits of dual NFV and SDN implementation. With their ability to offer a new way to design, deploy, and manage the network and its services, NFV a...
Most of us understand that artificial intelligence (AI) offers opportunities for productivity improvements in the form of speed, automation, standardized actions and responses, plus the opportunity for continuous improvements via machine learning. These opportunities are enabled by data inputs that are analyzed and processed through AI algorithms that execute a desired decision and action. For all of the great capabilities and benefits that AI can provide, there is also a potential dark side. AI solutions can easily codify our prejudices, bias, gender stereotypes and promote injustices intenti...
Gone are the days when application development was the daunting task of the highly skilled developers backed with strong IT skills, low code application development has democratized app development and empowered a new generation of citizen developers. There was a time when app development was in the domain of people with complex coding and technical skills. We called these people by various names like programmers, coders, techies, and they usually worked in a world oblivious of the everyday priorities of the business world. However, with the passage of time, this scenario is much more democr...
In an attempt to put the patient first in healthcare, Congress and President Obama in 2015 approved a bipartisan bill for United States healthcare reform. The bill is known as “Medicare Access and CHIP Reauthorization Act of 2015,” or MACRA. Among the major provisions of MACRA is the Quality Payment Program. Under the Quality Payment Program, physicians and nurses receive positive, neutral or negative Medicare payment adjustments based upon a “Patient Satisfaction Score,” that is, patient satisfaction scores have a direct impact on how physicians, physician assistants, nurses, and hospital’s g...
The notion of improving operational efficiency is conspicuously absent from the healthcare debate - neither Obamacare nor the newly proposed GOP plan discusses the impact that a step-function improvement in efficiency could have on access to healthcare (through more capacity), quality of healthcare services (through reduced wait times for patients) or cost (through better utilization of scarce, expensive assets).
The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Microservices being modular these are faster to change and enables an evolutionary architecture where systems can change, as the business needs change. Microservices can scale elastically and by being service oriented can enable APIs natively. Microservices also reduce implementation and release cycle time and enables continuous delivery. This paper provides a logical overview of the Microservices Reference Architecture that highlights various sub systems needed to support Microservic...
The high barrier to entry prevents many companies from tapping into the full potential of machine learning. But what if you could make it more accessible? We’re in the midst of a data explosion, with today’s enterprises amassing goldmines of information (25 quintillion bytes of data every day, according to some reports). But what exactly are they doing with this data? Considering the volume of data being collected is quickly becoming unmanageable, now is a good time to shift from manual machine learning to a cognitive approach. This enables businesses to better capitalize on their data and fa...
Blockchain offers impeccable security with its cryptography-based decentralized system as well as the plethora of possible uses retailers could exploit in the near future. In a world of increasing cyberattacks, internet fraud and online hacking, blockchain comes as a breath of fresh air. With its encrypted data and decentralized network system, it's a thorn in every hacker's side. Generally being associated with the finance sector, blockchain is now taking retail by storm. It's on a course that will change the retail industry as we know it. But how exactly is it going to achieve such a feat?
For DevOps teams, the concepts behind service-oriented architecture (SOA) are nothing new. A style of software design initially made popular in the 1990s, SOA was an alternative to a monolithic application; essentially a collection of coarse-grained components that communicated with each other. Communication would involve either simple data passing or two or more services coordinating some activity. SOA served as a valid approach to solving many architectural problems faced by businesses, as applications could be developed by more teams working in parallel and more productively by reusing orig...
Many IT organizations have come to learn that leveraging cloud infrastructure is not just unavoidable, it’s one of the most effective paths for IT organizations to become more responsive to business needs. Yet with the cloud comes new challenges, including minimizing downtime, decreasing the cost of operations, and preventing employee burnout to name a few. As companies migrate their processes and procedures to their new reality of a cloud-based infrastructure, an incident management solution can and should be adopted to help overcome these challenges. This is particularly true when larger ...
We’re seeing an emerging trend in the cloud computing world. I’ve been referring to it as cloud fatigue, but it’s more commonly known as repatriation, or moving workloads from the cloud back to on-prem locations. According to a recent 451 Research report, over 21 percent of organizations have plans to pull back from the cloud and return to an on-prem infrastructure in 2017. Considering the vast growth of cloud adoption over the last several years, what’s behind this trend?
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Past SYS-CON Events
    Cloud Expo West
cloudcomputingexpo
2011west.sys-con.com

 
    Cloud Expo East
cloudcexpo
2011east.sys-con.com

 
    Cloud Expo West
cloudcomputingexpo
2010west.sys-con.com

 
    Virtualization Expo West
virtualization
2010west.sys-con.com
    Cloud Expo Europe
cloudexpoeurope2010.
sys-con.com

 
    Cloud Expo East
cloudcomputingexpo
2010east.sys-con.com

 
    Virtualization Expo East
virtualizationconference
2010east.sys-con.com
    Cloud Expo West
cloudcomputingexpo
2009west.sys-con.com

 
    Virtualization Expo West
virtualizationconference
2009west.sys-con.com
    GovIT Expo
govitexpo.com
 
    Cloud Expo Europe
cloudexpoeurope2009.sys-con.com
 

Cloud Expo 2011 Allstar Conference Faculty

S.F.S.
Dell

Singer
NRO

Pereyra
Oracle

Ryan
OpSource

Butte
PwC

Leone
Oracle

Riley
AWS

Varia
AWS

Lye
Oracle

O'Connor
AppZero

Crandell
RightScale

Nucci
Dell Boomi

Hillier
CiRBA

Morrison
Layer 7 Tech

Robbins
NYT

Schwarz
Oracle

What The Enterprise IT World Says About Cloud Expo
 
"We had extremely positive feedback from both customers and prospects that attended the show and saw live demos of NaviSite's enterprise cloud based services."
  –William Toll
Sr. Director, Marketing & Strategic Alliances
Navisite
 


 
"More and better leads than ever expected! I have 4-6 follow ups personally."
  –Richard Wellner
Chief Scientist
Univa UD
 


 
"Good crowd, good questions. The event looked very successful."
  –Simon Crosby
CTO
Citrix Systems
 


 
"It's the largest cloud computing conference I've ever seen."
  –David Linthicum
CTO
Brick Group