50 Years Of Datacenter Shifting To Cloud, Says Dynatrace CEO

“You have 50 years of datacenter that is shifting to the cloud in the next ten,” says Dynatrace CEO John Van Siclen. “We are early days. There’s a lot of room to go and I’m sure a lot of changes in front of us. The movement to the cloud and this whole move to software is a global phenomenon. Every enterprise around the world is moving and moving fast. It’s going to redefine how businesses work in the future. It is the new revenue streams, the new connective tissue with customers, providing a whole new environment.”

John Van Siclen, CEO of Dynatrace, discusses the impact of 50 years of datacenter that will shift to the cloud over the next ten years, in an interview on CNBC:

Software Is Now Eating the World

Software is now eating the world as a lot of folks know. It’s how we bank, how we shop, how we do just about everything. These applications have gotten much more complex over the last five years as they have moved to cloud platforms. The spend in the traditional datacenter is declining quickly and the move is over to the cloud. It’s going to redefine how businesses work in the future. It is the new revenue streams, the new connective tissue with customers, providing a whole new environment.

For example, Carribean Cruise, one of our customers, is reinventing the travel experience for Millenials. They’re doing it all through software on their ships. They provide a little wrist band that interacts with software on ship and on shore to transform the experience. What we’re seeing is really still a continued focus on growth. New revenue streams, new opportunities, and taking in existing core application environments and rebuilding it to be cloud-native. That’s the shift that we see. Still growth, still attack market, still competitive advantage for most companies that are pushing forward aggressively.

50 Years Of Datacenter Shifting To Cloud

We’ve always built the company around a direct sales approach. Our products are used by enterprises. Enterprises want to connect directly with the company that builds these products. We’ve really always gone to market that way and it has served us very well. It makes it a very predictable business and a very strategic platform for these enterprises. We run across all of the cloud platforms and then some. We target the global 15,000 enterprise companies. We expect to talk to the CIO, CTO, and sort of the executive level that are driving this shift within their organizations’ digital transformation projects. That’s our focus.

What’s happening now is that the cloud is moving from the early days where people would put applications in the cloud to where they really are taking their entire datacenter and shifting it to the cloud. That’s what’s driving these webscale multi-cloud environments that we do so well in. It’s still early days. There’s a lot of room to go in this marketplace. You have 50 years of datacenter that is shifting to the cloud in the next ten. We are early days. There’s a lot of room to go and I’m sure a lot of changes in front of us. The movement to the cloud and this whole move to software is a global phenomenon. Every enterprise around the world is moving and moving fast.

Cloud Is So Much More Efficient and Economical For Companies

This market is very large. We estimate it’s about $18 billion. Others have the estimates in the $20 billions. It’s plenty of room for a company like us to grow and actually probably multiple companies to grow in this space. We feel very secure and happy with our organic innovation. We’ve been able to reinvent the business several times now. It’s a very dynamic space, this application world. Organic innovation is our thrust going forward.

The cloud is so much more efficient and economical for companies that as there is any kind of disruption anywhere in their markets they’re going to lean toward applications. The things that really drive connective tissue with their customers and their marketplaces that create more automation and more information that they gather when they go through digital channels.