What will it take to “Cross the Chasm”?THE CONSUMER CLOUD STORAGE INDUSTRY &THE ADOPTION OF EXCLUSIVE CLOUD STORAGE

Agenda• Overview

• Industry: Then and Now

• Frameworks

• Consumer X Profile

• Recommended Action Items

OverviewIndustry: Consumer Cloud Storage

Big Question – What will it take for consumers to transition completely to the cloud

– i.e. what will it take for consumer cloud storage crossing the chasm

Frameworks– Crossing the Chasm– Competitive Position Compass

Fundamentally, the concept of cloud computing today is the same as it was when first created – rapid access to digital data stored in an on or off premise server, accessed via network cables or in today’s age of technology, via the internet.

What is Cloud Computing?

1950 1960 1970 1980 1990 1995 2000 2005 2008 2010 2012

Invention of first hard

drive 1953 by IBM

Only 5 MB

First hard drive to

break 1GB capacity

First 250 MB hard disk in 1979

Average hard drive

capacity 40 MB

http://royal.pingdom.com/2010/02/18/amazing-facts-and-figures-about-the-evolution-of-hard-disk-drives/http://www.statista.com/statistics/200551/global-sales-figures-of-hard-disk-drives-from-4th-quarter-2010/

2007 First 1 Terabyte

hard drive introduced

2008 First 2 Terabyte hard drive introduced

2011 First 4 Terabyte hard drive introduced

157 million global

shipments of hard drives(down from previous 2

years)

In 2002 Amazon

introduced Amazon Web

Services

Salesforce.com launched first SaaS in 1999 on the cloud

Facebook launched in 2004, introducing social use of the cloud

Google Apps launched in 2009,

introducing content creation

on the cloud

Amazon launched Elastic Cloud

Computing (EC2) and Simple Storage Services (S3)

TheInternetArrives!

Industry: Then & Now

Cloud computing coined in 1961

by John McCarthy

Cloud computing coined in 1961

by John McCarthy

Cloud computing coined in 1961

by John McCarthy

FrameworksTechnology Adoption Lifecycle

Innovators EarlyAdopters

Pragmatists Conservatives Laggards

2%

15%

34% 34%

15%

FrameworksCompetitive Position Compass

Value BasedTraditional

Product Oriented vs. Market Oriented

Consumer X Occupation: Doctor

Age: 28

Lifestyle: Active, on-the-go, average understanding of technology

Cloud devices: Laptop, iPad, iPhone, Nook Color, Google drive and an External Hard Drive

Current Digital Storage Needs: 761 GB

Stored On Premise: ~600 GB

Stored on Cloud: ~150 GB

Household Digital Storage Needs: 2231 GB

Average Household Capacity: 464 GB

Concerns with the Cloud: Accessibility, Recovery and Privacy

“I would totally move to the cloud if they could guarantee that my content was recoverable if something were to happen to the cloud. What if it goes down and I lose all my stuff?

Actionable Items3 Steps Cloud Service Providers Should TakeStep 1: Provide Evidence

• Provide each segment of the Technology Adoption Life Cycle evidence in support of cloud storage and convince consumers why they should move exclusively to the cloud – Meet segment demands

– Use values from Competitive Position Compass to identify appealing forms of support

Step 2: Establish Competitive Position• Identify direct competitor in the market – Differentiate from them

– This feeds directly to the Pragmatist appetite for market oriented thinking and competition

Step 3: Package a “Whole Product”• Consider demands for supplemental and complimentary products and services

around consumer cloud storage That is what the early majority users want– Identify complimentary products or services to further integrate consumer cloud storage into

business and personal day to day activities

• Ex. Google Drive used to share documents across physical devices

QUESTIONS?