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April 23, 2013 Have Business Buyers Driven us to the Cloud Adoption Tipping Point? Enterprise Cloud Adoption Survey 2013 Live Tweeting #ccevent

Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

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The 2013 Enterprise Cloud Adoption Survey revealed a series of surprising findings: A majority of enterprises plan migration to public or private cloud for nearly every workload type, including ERP, cloud buying power is concentrating in lines of business (LOB), not the CIO’s office, enterprises increasingly are leaning toward private cloud models, potentially driven by internal “IT marketing”, enterprises are more aware of and more likely to purchase public cloud IaaS from Microsoft compared to other legacy IT service providers, and the “low hanging fruit” of SaaS may already have been picked in the enterprise as LOBs are now moving on, focusing on development of custom apps by function or vertical. This deck is the presentation used during the webinar.

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Page 1: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

April 23, 2013

Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

Enterprise Cloud Adoption Survey 2013

Live Tweeting #ccevent

Page 2: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

2 Proprietary & Confidential. © 2013, Everest Global, Inc.

Introductions

Scott Bils Partner & Next Generation IT Practice Leader [email protected]

Steve Wylie General Manager [email protected]

Chirajeet Sengupta Practice Director [email protected]

Page 3: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

3 Proprietary & Confidential. © 2013, Everest Global, Inc.

Context setting

Sources for today’s webinar

Focus of this webinar Adoption trends by application workload

Stakeholder involvement in cloud investments

Deployment model preferences (private/public) by application workload

Cloud provider mindshare

First of its kind enterprise cloud adoption tracking survey

Fact-based research focused on enterprise cloud market and all layers of the cloud stack

2013 Enterprise Cloud Adoption Survey

+

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Peel back the onion on adoption patterns

Identify cloud market trends and disconnects

H1 2013 focus: private vs. public clouds

Why do another cloud survey? Our goal is to better understand enterprise cloud adoption trends and dynamics through gaining a 360°view of the market

Survey respondents

Enterprise/Cloud Service Buyers

Cloud Service Providers Consultants/

Advisors

37%

33%

30%

100% = 302

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5 Proprietary & Confidential. © 2013, Everest Global, Inc.

Key findings from the survey

Future cloud adoption is likely to move closer towards mission critical workloads

However, private clouds are strongly preferred to public cloud models across stakeholders

Cloud adoption is reaching a critical scale across all workload types

AWS remains the public cloud leader; however, Google, MSFT, Rackspace are fast catching up

Adoption is increasingly powered by business groups instead of corporate IT

While VMware leads today, many are leaning towards open source

1

2

3

4

5

6

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6 Proprietary & Confidential. © 2013, Everest Global, Inc.

Do you envision public cloud models becoming mainstream for enterprise workloads in the near future?

63%

37%

Yes

No

Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013

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1. Has the cloud reached a tipping point? A majority of enterprises plan migration to public or private cloud for nearly every workload type, including ERP

82% 73%

63%

18% 27%

37%

Migration None

planned

Migration Occurred Happening Planned

Web apps/ websites

E-mail/collaboration CRM/marketing

automation

Development/test environment

Custom apps ERP (F&A, HCM,

SCM)

E-commerce/ online tools

BI/analytics Collaboration/CMS

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

Mission criticality “Core” “Edge”

50%

Enterprise cloud migration plans by workload 2013; Percentage of buyer responses

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68% 56% 52%

31% 40% 45%

1% 4% 3%

2. Power continues shifting away from corporate IT to LOB owners Cloud buying power is concentrating in lines of business, not the CIO’s office. This holds true for a majority of enterprise workloads

Business users/ Embedded business IT

Corporate IT

Development/test environment

E-mail/collaboration Disaster recovery/

storage

Web apps/websites E-commerce/

online tools BI/analytics Collaboration/CMS CRM/marketing

automation

Custom apps ERP (F&A, HCM,

SCM)

Procurement

Primary decision makers for enterprise workloads 2013; Percentage of buyer responses

CIO suite Functional/BU suite CMO suite

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

Declining CIO

influence

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2. The two enterprise cloud buying centers Growth in adoption of cloud services is creating two distinct, but overlapping, buying groups in the enterprise

Preferred cloud models

Dedicated/ private cloud models – On prem – Hosted – Managed

Shared/public cloud models – SaaS – PaaS – IaaS

Control Security Performance Scalability Integration

New capabilities (often vertical or function-specific)

Time-to-market Flexibility Ease of use

Key buying considerations

Business Buyers

Corporate IT

Buying group Description

Business and functional stakeholders

Embedded line-of business (LOB) developers and IT staff

CIOs and centralized corporate IT staff – Applications – Infrastructure

Page 10: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

10 Proprietary & Confidential. © 2013, Everest Global, Inc.

3. Enterprises have already leveraged SaaS and are moving on The “low hanging fruit” of SaaS may already have been picked in the enterprise. LOBs are now moving on, focusing on custom apps by function or vertical

49%

38%

36%

Custom business applications

ERP – finance & accounting

BI/analytics 43%

42%

40%

Custom business applications

ERP – finance & accounting

BI/analytics

39%

37%

37%

33%

31%

31%

Custom business applications

BI/analytics

E-commerce and online tools

Custom vertical business apps

Custom functional business apps

ERP – finance & accounting

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

Banking, financial services, and insurance

Manufacturing, distribution, and retail

Healthcare & life sciences

Technology, telecom, & electronics

Likely future cloud option by workloads 2013; Percentage of buyer responses

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4. Private clouds still the preferred choice Enterprises still show a preference for private cloud models for most workload types. Is the trend being driven by internal "IT marketing”?

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

60% 58% 52%

24% 23% 27%

16% 19% 21%

Public

Private

Development/test environment

E-mail/collaboration Disaster recovery/

storage

Web apps/websites E-commerce/

on-line tools BI/analytics Collaboration/CMS CRM/marketing

automation

Custom apps ERP (F&A, HCM,

SCM)

Indifferent

CIO suite Functional/BU suite CMO suite

Marginal decline in private cloud

bias

Buyer preferences – cloud deployment model 2013; Percentage of buyer responses

Page 12: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

12 Proprietary & Confidential. © 2013, Everest Global, Inc.

Preference for virtualization technology Buyer responses (cloud infrastructure implemented/planned)

47%

19%

18%

9% 6%

VMware

No preference

Microsoft Hyper-V

Xen

KVM

Preference for cloud platform Buyer responses (cloud infrastructure implemented/planned)

VMware

No preference

OpenStack

IBM SmartCloud

CloudStack VCE

34%

25%

14%

12%

9% 4% 3%

Eucalyptus

5. The cloud infrastructure wars are heating up While VMware is the current leader, a significant proportion of the market professes to be platform agnostic, or prefer open source platforms

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey

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13 Proprietary & Confidential. © 2013, Everest Global, Inc.

6. AWS enjoys leading market share followed by Google and MSFT However, competition is likely to heat up across several providers

Using

Aware/considering

Not aware/not considering

27% 19% 17%

7% 7% 5% 5% 4% 4% 2%

19% 37% 38%

36% 27%

20% 35% 33%

12% 9%

54% 44% 45%

58% 66%

75% 60% 63%

84% 89%

Leaders

AWS Google MSFT

Contenders

Rackspace AT&T Verizon-Terremark

IBM HP

Emerging Players

Savvis- century link

CSC

Mindshare of public cloud providers 2013; Percentage of buyer responses

Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

Page 14: Webinar Deck: Have Business Buyers Driven us to the Cloud Adoption Tipping Point?

14 Proprietary & Confidential. © 2013, Everest Global, Inc.

Do you think the security concerns around public cloud models are exaggerated?

63%

38%

Yes

No

Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013

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15 Proprietary & Confidential. © 2013, Everest Global, Inc.

Download 2013 enterprise cloud adoption survey

Complimentary 23-page survey summary report More details in addition to today’s webinar

presentation Visit www.everestgrp.com/ccevent to download Learn more about Cloud Vista

Cloud Connect Chicago | October 21-24 | McCormick Place

Call for submission now open Join the mailing list to be informed when registration

opens Visit http://www.cloudconnectevent.com/chicago/

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Q&A

To ask a question during the Q&A session Click the question mark (Q&A) button located on right side of your screen. This opens Q&A

Be sure to keep the default set to “send to All Panelists”

Type your question in the box at the bottom of the Q&A box and click the send button

Attendees will receive an email with instructions for downloading today’s presentation

To contact the presenters: – Scott Bils, [email protected], @sbils – Steve Wylie, [email protected], @swylie650 – Chirajeet Sengupta [email protected]

Websites www.everestgrp.com research.everestgrp.com

Twitter @EverestGroup @Everest_Cloud

Blogs www.sherpasinblueshirts.com www.gainingaltitudeinthecloud.com

Stay connected

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17 Proprietary & Confidential. © 2013, Everest Global, Inc.

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