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The Voice of the Customer Sean Hacke5, Research Director Cloud Compu<ng
The 451 Group
451 Research is focused on the business of enterprise IT innova<on. The company’s analysts provide cri<cal and <mely insight into the compe<<ve dynamics of innova<on in emerging technology segments.
Tier1 Research is a single-‐source research and advisory firm covering the mul<-‐tenant datacenter, hos<ng, IT and cloud-‐compu<ng sectors, blending the best of industry and financial research.
The Up<me Ins<tute is ‘The Global Data Center Authority’ and a pioneer in the crea<on and facilita<on of end-‐user knowledge communi<es to improve reliability and uninterrup<ble availability in datacenter facili<es.
TheInfoPro is a leading IT advisory and research firm that provides real-‐world perspec<ves on the customer and market dynamics of the enterprise informa<on technology landscape, harnessing the collec<ve knowledge and insight of leading IT organiza<ons worldwide.
ChangeWave Research is a research firm that iden<fies and quan<fies ‘change’ in consumer spending behavior, corporate purchasing, and industry, company and technology trends.
TheInfoPro Business Overview
Fundamental, ”voice of the customer” research on key Informa<on Technology (IT) sectors.
Founded in 2002 as an unbiased alterna<ve to Gartner.
Transparency: no analyst spin or bias. Direct, factual results provided to our clients.
Source: One on one interviews with thousands of pre-‐screened IT Professionals within our proprietary network, repeated every six months.
Focus is IT Infrastructure spanning: Storage, Servers, Networking, Informa<on Security, Cloud Compu<ng
Methodology & Research Process
Structured Interview Process: § 60-‐ to 90-‐minute interviews repeated in six month “waves” § TIP Researchers, who average 20 years of IT experience, interview. § IT Decision makers – pre-‐screened for domain experience at Global 2000 companies
TIP quan<ta<ve and qualita<ve data includes: § Customer Spending: future spending plans by vendor and size of spend § Vendor Shortlists: who’s in use and who’s in plan § Vendor Performance: customer ra<ngs, who’s vulnerable to customer loss, and the vendor(s) they’re vulnerable to
§ Technology Roadmaps: What’s hot and what’s not > TIP’s patented Technology Heat Index™
§ Time Series: Unmatched historical data is captured for comparison purposes
Data is highly customizable by dimensions such as: § Industry § Revenue § Installed Technology Provider § Environment (i.e., capacity, budget, employees)
Agenda
Sec<on 1: Introduc<on – What is the Cloud?
Sec<on 2: Demand Forecasts and Supply Side Spending
Sec<on 3: Customer Percep<on, Drivers and Inhibitors
Sec<on 4: Enterprise journeys in the cloud
Many Remain a Bit Cloud Confused
TIP Narra(ves: There are so many defini(ons of cloud it is hard to really say. Large Enterprise – Financial Services
There are many defini(ons, and I have yet to see one that is all-‐encompassing, so I'm s(ll forming my own defini(on. Large Enterprise – Financial Services
A nebulous term – I would say it's a grid of storage/applica(ons/services hosted off-‐site. Europe -‐ Healthcare/Pharmaceu(cals
It depends on what cloud vendor you are talking to. Europe – Healthcare/Pharmaceu(cals • –
The451 Group’s Cloud Defini<on The 451 Group broadly defines cloud compu(ng as a set of business models and technologies that enable IT func(ons
to be delivered and consumed via a third party as a real-‐(me service. A complimentary copy of the Cloud Codex report is available on The 451 Group’s website.
IaaS Cloud Infrastructure Private Clouds Serve as the Founda(on for Public Cloud Adop(on
Private Cloud Virtualiza<on Entering a New Phase
Source: LeQ and BoSom Charts The 451 Group Market Monitor
Sizing the Cloud
Source: LeQ and Right Charts The 451 Group Market Monitor Includes: PaaS, IaaS both Forecasts Do NOT include SaaS
Billions Falling From the Public Clouds
Cost efficiencies and higher asset u<liza<on rates in cloud drive increasingly compelling economics Hybrid clouds enable organiza<ons to leverage “best execu<on venues” where steady loads and elas<c loads in environments where they are most economically feasible
11%
Corporate Sokware Spending Outlook
08/09 Recession
Source:
Q: Over the next 6 months, does your company plan to increase its overall spending on cloud compu:ng, decrease its spending, or will your company's overall cloud compu:ng spending remain the same compared to the previous 6 months?
Total Sample
Companies That Currently Use
Cloud
Increase Overall Spending 11% 34% Decrease Overall Spending 1% 4% Remain the Same 16% 60% No Plans to Use Cloud Computing in Next 6 Months
71% 2%
Corporate Public Cloud Spending
Source:
Q: For each of the following uses of cloud compu:ng, do you expect your company to increase its spending on cloud-‐related services, decrease its spending, or will spending on cloud-‐related services remain the same over the next 6 months?
Corporate Public Cloud Spending by Cloud Stack – Next 6 Months
Source:
Q: What effect -‐ if any -‐ does your company's spending on cloud compu:ng have on your budget for other soDware and IT services?
Public Cloud Spending: Effect on Other IT Spending Areas
Source:
Customer Percep<on
Top Inhibitors of PUBLIC Cloud Projects
Mean = 6.4 (SD = 2.1)
Corporate Percep<ons on Reliability – Cloud Not Reliable?
83% Gave a Ra<ng of 5 or Over
Source:
Effect of Amazon Web Services Outage
Source:
Mean = 5.6 (SD = 2.2)
Corporate Percep<ons on Security – Cloud Not Secure?
66% Gave a ra<ng over 5
Source:
The Cloud Journey
Complexity
Cloud Enters Phase X
Ver<cally integrated and cloud ecosystems – PaaS and more
Horizontally federated
‘compute markets’ – brokering
Prolifera<on of monolithic clouds, APIs – CloudTone?
All Clouds Will be Hybrid: Everyone wants to be the control point!
Value will be in driving best execu(on venues: Risk/Reward Cost/Benefit
Dedicated Hos<ng
IT Outsourcing IaaS
PaaS
BPO SaaS
It’s Not a Zero Sum Game
“Tradi<onal” IT Outsourcing BPO Offshore “Virtual”
IBM Bisys, Experian WNS, Tata IBM
HP IBM HP, Wipro HP
Accenture, CSC Convergys – Salesforce.com
Dell (Getronics, AtosOrigin) IBM Cap<ve HP
IBM Accenture HCL, Tata IBM
Ci<street Travelocity
Vanco
Where Are We in the Hybrid Journey?
Public Cloud Usage Gains Steam S<ll a Small Base
Applica<ons Most Suited for Cloud (SaaS Respondents) S(ll Not Moving the Crown Jewels
IaaS Hardware Awareness – Public Cloud
Source: TheInfoPro Final Cloud W2: LeQ Chart, n=11; Middle Chart, n=5 (100% of those respondents that said yes); Right Chart, n=9.
Importance of IaaS Func<onality for Buying Decisions – Public Cloud
This presenta<on contains confiden<al informa<on which is the property of TheInfoPro, a division of The 451 Group, and is given to the recipient pursuant to a confiden<al rela<onship between the recipient and TheInfoPro, LLC. Such informa<on shall not be copied, disclosed
to others, or used for any purpose other than that for which is given, without the wri5en permission of TheInfoPro, LLC. TheInfoPro™ and logo are registered trademarks and property of TheInfoPro, LLC, a division of The 451 Group.
© 2011 TheInfoPro, LLC. All Rights Reserved. 20 West 37th Street, 6th Floor, New York, NY 10018 P 212.672.0010 F 212.688.6598 | sales@theinfopro.com
Domino Sugar: The Good
Domino Foods, Inc. is the largest marketer of refined sugar in the United States and sells two of the na<on's most well-‐known brands, Domino Sugar and C&H Sugar. Domino Sugar’s SAP applica<on will be hosted on Virtustream’s Shared Infrastructure as a Service.
Details
Number of Users 2400
Applica<ons ERP, CRM, Invoice and Ordering Systems, business intelligence, HCM and Payroll
Expected Cost Savings 30%
Eli Lilly: The Bad & The Ugly
§ Eli Lilly began using Amazon AWS in 2009 § Needed significant amount of compu<ng power to “crunch data” § Procurement and installa<on process could take up to 3 months § According to Eli Lilly the cost of delaying a product could total $150 per second Answer: Swipe Credit Card and have 25 Servers up and running in an hour… Within two hours they were crunching numbers… When complete Amazon sent bill for $89 while at $150 per second a 3 month wait would have cost ~$1B Fast Forward: July 2010 Amazon Web Services poster child, Eli Lilly has walked away from using the cloud compu<ng service aker failing to come to terms over legal indemnifica<on issues specifically related to accountability for network outages, security breaches and other forms of risk inherent in the cloud, to Amazon Web Services.
10 Key Takeaways
1) The Shik to the cloud is inevitable
2) Cloud models are growing while tradi<onal models largely flat-‐line or decline
4) Adop<on for most will depend on percep<on
8) Public cloud is gaining steam
5) Inhibitors are ge�ng tac<cal 6) 2010 is the year of the private cloud with end goal of building a Hybrid solu<on
9) Commodi<za<on takes hold and shiks the basis of compe<<on
10) Almost without excep<on IaaS will lead to an examina<on of PaaS
3) Adop<on drivers are first centered on cost savings
7) Private cloud deployment in midst of a shik to management
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