Mary Meeker's annual Internet Trends slidedeck is like a Harry Potter book release in Silicon Valley -- those of us in technology can't get enough of it. At Okta, we love analyzing data driven trends. Our Businesses @ Work report uses Okta's dataset of thousands of customers, applications and integrations, and millions of daily logins to understand how organizations, and the people who work for and with them, get work done. As we read through Meeker's report, we couldn't help but wonder, how do this year's trends align with our own data? Here's what we found:
1. We're Glued to Our Phones.
According to Meeker's report, US adults spend more than three hours a day surfing the web from mobile devices, up from less than one hour a day in 2011 (slide 9 in Meeker's report). And it's not just Facebook and Instagram they're looking at -- it's work related apps as well! In Businesses @ Work, we reported that more than 80 percent of Okta's customers are accessing apps from a mobile device. This figure has steadily increased over the past two years. What are Okta customers accessing on mobile? The same popular apps they access while in the office: Office 365, Salesforce, Box, Concur and G Suite are the most popular.
2. Amazon Rules the Retail World... at Home and in the Office
Meeker predicts retail store closures will reach an all-time high in 2017 (slide 72). Meanwhile, Amazon is opening its first physical store later this year. Amazon knows just what consumers want: hundreds of millions of products on one site, and quick delivery. Amazon isn't just running the table at home -- it's doing so at work too. In our last Businesses @ Work report, we looked at personal app usage, and realized that more than 50 percent of apps accessed via Okta are not provided by IT; they're for personal use. Not surprisingly, Amazon.com was the third most popular personal app in our network. And with Amazon Web Services coming in as the fourth most popular app in our network overall (and the most popular cloud platform), clearly Amazon is ruling more than just retail.
3. Healthcare is at a Digital Inflection Point
Per Meeker's report, consumers increasingly expect digital health services today. This includes using the Internet to find a physician, owning wearables to promote healthy living, and accessing healthcare apps. Lots and lots of healthcare apps. Meeker says that 88 percent of consumers are using at least one digital health tool today, and she considers one in ten consumers to be "super adopters" (slide 309). We couldn't agree more with this trend. TeleDoc, a telehealth company that provides on-demand remote medical care, was the fastest growing personal app in the Okta Identity Cloud this past year, with nearly 240 percent growth.
4. Vendor Lock-In: the Fear is Real
Meeker's report found that vendor lock-in is a growing, and pervasive, IT concern today. While only 7 percent of respondents cited vendor lock-in as a top concern with moving to the cloud in 2012, 22 percent did so in 2015 making it one of the top three reasons businesses don't adopt cloud technology (slide 183). Our Businesses @ Work report also identified vendor lock-in as problematic, albeit for a different reason. In our report, we analyzed and compared the app profile of G Suite customers and Office 365 customers. Office 365 customers can get locked into the Microsoft Stack (using apps like Dynamics CRM, Yammer, Skype, Azure, and OneDrive for Business), whereas G Suite customers autonomously select each app they use. Our data shows G Suite customers are more likely to employ a best-of-breed IT strategy to build out their cloud ecosystem. They invest in the best apps, at the right time, to meet specific needs, as opposed to investing in an entire cloud app stack up front. 42 percent of Okta's G Suite customers use Amazon Web Services, 35 percent use Slack, 26 percent use Zendesk and 24 percent use GitHub, compared to Office 365 customers where 23 percent use Amazon Web Services, 14 percent use Slack, 14 percent use Zendesk and only 7 percent use GitHub.
5. Only a Matter of Time: IT's Investment in Cloud is Approaching that of Traditional Data Center Spend
Meeker reports that 37 percent (or $36 billion) of IT infrastructure spend in 2016 was on cloud, compared to 23 percent in 2013. The number one reason people are using the cloud: to run applications (slides 181 and 182). We founded Okta on this very belief. We believed cloud computing would be one of the most massive technology transformations of our time. Today, organizations in every industry, of every size are replacing legacy systems with cloud-based alternatives. And with thousands of applications to choose from, they are now using dozens, if not hundreds of applications across multiple public and private cloud platforms to run their businesses. (According to our data, as of December 2016, the sweet spot of apps for the average enterprise is between 18 and 22.) Success depends on an organization's ability to securely connect these worlds. And identity is the only constant that can do that.