And I think clients will ask and answer three questions which on the surface look like a technology choice, underneath it is absolutely a business model choice they are making.
The first one sounds technology, so what kind of cloud architecture? The answer – you will end up building hybrid clouds. Now why do I say that? Every company on one hand you’re going to build your own –people talk about private clouds, many of you participate in the buildout of those. They will also then go us public clouds. No problem, everyone – we’ve got public clouds, others have public clouds. You’ll do it for speed typically in what people call systems of engagement.
But what’s happening now is you will integrate those two worlds. You will see what happened in the 1990s happen again now as it did with the Internet. Think about this. In the internet days, what did people do first? Put things up and they browse. But then over time series transactions and they connect it to pricing fulfillment, marketing all that other information people already had to get more value out of it.
And the analysts say 50% of all companies will be hybrid in just 2017. So point 1.
Point 2, the last question how do I manage data? And the answer is going to be you will manage it is if it’s on premise. Visibility, audit ability, control security are going to be the most important issues ever answered. Data management will be the most critical thing people decide with a cloud and as many – we’re sitting here in Europe, there are 100 countries that have data protection, whether or not you agree is a different story but 100 countries with data protection laws that’ll have an influence, cost to move data, security for data, this is why some of you saw we invested in another 1.2 billion in January to take 25 cloud data centers to 40 around the world.
And then the third thing people will say is can I use this to reinvent and drive innovation? Aye sir cloud, absolutely. In fact, we’ll not only do that, many of you will participate out — participate in the build-out of something called an API economy. Everything exposed as a service, anything you offer today you’re going to expose it in pieces as a service that could be pulled together, not program scripted together. And this is why you see 75% of companies already either planning or using some form of Software as a Service but it’s going to move forward from there. This is why we ourselves invested $7 billion in cloud so far to remake enterprise IT for the era of cloud, in last year a business over 4 billion already.
Now I said there’s a third shift. So keep in mind, data, cloud, the third line is that word engagement. And when I think of engagement, those of you in the mobile conference near and dear to your heart, changing how an individual understood but I’d ask you to think about a new culture that’s emerging, that is not defined by age. It is people empowered by knowledge, enriched by a network and they expect value in return for the information that you give them. I find it very interesting 50% of all purchases, they’re influenced by digital research. More interesting in just the last year, the number of people willing to give up their GPS location where they’re at has doubled in just one year.
So what I see the enterprise focused on is 3 things. One is speed. I mean any of you that ever contact via social networking, contact the company, you expect a response. Survey says in five minutes if not immediately.
Personalization, next thing, 80% will trade personal information, if you give them something of value in return, but something I hope David and I hope can talk more about it, is security and trust. They’re focused on it, a trillion of online retail, additional online retail hangs in the balance based on this point if people can become comfortable with how companies control their personal information. And this is why another area, so many of you but we are focused on social mobile underpinned by security, in the enterprise-level, this is going to – and I’m going to come back and talk about this.
So three big trends: data, cloud, engagement. Now if you pull them together, I said it’s disruptive. Now take a mobile lens on it and let me wrap up by talking about when you take mobile and put it this way I’m going to be bold to say I think 3 column implications, conclusions, predictions whatever you’d like about the mobile world from an enterprise point of view.
First one, mobile will hang in the balance of being secure, or say differently, mobile will be about secure transactions. Security will be a gating factor there. And when I use the word transaction, I think about healthcare transaction, a purchase transaction, a supply chain transaction. I think of human to machine, machine to machine, all different combinations that are out there. And those things will all integrate with data and systems across the world and hence they will have to be enterprise-class.
And everybody you interface with in a mobile first-world, as you guys well now their expectations change. And in fact, mobile is an extension of a person. In fact, I use the word people curate their life that way. It means you and I have quite a responsibility, trusted, available, secure. I was thinking of this before I came out, I was reviewing some work we just did for the Ministry of Rail in China and redoing their mobile systems for ticketing. And you know we just finished Chinese New Year. It is the largest human migration that happens in a short period of time, 200 million people moving, about 10 million a day secure, very sophisticated transactions done. That’s because it’s an extension of life. That’s what happens.