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Widening cloud computing market overshadows SAP, embraces Docker

While traditional enterprise software providers feel the pinch of cloud services in the market, other companies are capitalizing on the technology.

Recent sales reports suggest that cloud computing is growing in popularity, displacing popular on-premises offerings. Even SAP, one of the largest software companies among enterprises, is showing downgrades in sales due to the pinch from more software as a service (SaaS) offerings in the cloud computing market. David Linthicum and his guest, Charles Radi, vice president and principle cloud architect of Boston-based Cloud Technology Partners Inc., discuss the future of enterprise software providers in the evolving IT market.

While SAP may be struggling in the new IT landscape, Docker, an open source application packaging service, is thriving. Docker seems to be the name on every IT pro's lips, but what does that mean for the company? In this podcast, topic details include:

1. SAP reported first quarter sales showing that cloud, particularly SaaS providers, are whittling away at its customer base. IBM and Oracle, which have a traditional software business as well, are also finally feeling the pinch of cloud services. Where are the largest enterprise software players going? Do they have to embrace the SaaS model, like Salesforce? Does SAP have a future in SaaS, or will that move just cannibalize its own business?

2. Docker is feeling the rush of cloud excitement, and many cloud providers, even cloud giant Amazon Web Services (AWS) aren't immune to the trend. A new version of AWS Elastic Beanstalk will now support containerization and let users launch Docker-packaged applications. Is Amazon making the right move? Will it get a lot of traction? What does this say about Amazon's promise to allow all influential new technologies on its own system?

3. As big data analytics continues to meet company business intelligence needs, Amazon Web Services has increased the number of queries data warehouse RedShift can handle -- from 15 to 50 simultaneously. Linthicum and Radi agree that AWS has stepped up to the plate on this decision, is looking around at its competitor and its users to see what they want.


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SAP has always been a bit behind. It was windows when the world went web, now it is web when the world is going cloud and mobile. That's okay. Companies that use it tend to be a little conservative anyway. Having SAP go hosted, or SaaS, makes a lot of sense to me, and it might the right time.