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Foreword
I am honored to share our first release of Botmetric Public Cloud Usage Report 2017 with amazing insights encapsulating the public cloud adoption and usage trends in SMB, Midmarket and Enterprise customer segments across the world. In our short journey as a company, Botmetric has grown significantly to track public cloud consumption of over $1 billion on an annual basis among our customers. As a company, we believe our journey has barely began in the multi cloud world with customers clearly indicating that the public cloud is a mature offering of importance for their business.
We have worked hard and spent a great effort to curate, analyze, simplify and verify the broad insights contained in this report to give a glimpse of the future ahead for cloud computing in general and overall consumption trends across worldwide businesses.
We hope you enjoy reading the report as we did while working on this report.
Vijay RayapatiCEO, Botmetric
Botmetric Cloud View
We are in an interesting era of technology disruption not just in IT but every business is fundamentally changing itself to become digital, connected and intelligent. The future of cloud is very exciting, we are delighted to play our role as a multi-cloud management company.
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Key Cloud Trends
Digital Workloads Domination – The applications deployment on public cloud is heavily dominated by digital workloads primarily consisting web, mobile and analytics irrespective of customer segment. We expect serverless, containers, IoT and AI to fuel the next set of intelligent applications landscape.
Multi Cloud Adoption – There is an increasing trend of more than one cloud usage among enterprises including private & public clouds. This is driven by the need to manage enterprise IT complexity, applications locality, data sovereignty, geographic distribution and de-risking the vendor lock-in.
IaaS Is The King – In our analysis of AWS & AZURE usage for over $1B, we noticed that IaaS offering still contribute to over 85% of the customers cloud spend. The compute, storage, network and databases dominate in the IaaS category and primary adoption among customers.
PaaS Is The Trend – It’s great to see many platform service offerings beyond IaaS are consumed by customers primarily around messaging, notifications, API management, containers, deployment & security etc, the PaaS offerings from cloud providers are gaining increasing momentum.
Use of Cloud Native Technologies – Many customers are experimenting, evaluating or have started using forms of native technologies like Containers, Serverless, Analytics, IoT and ML/AI as part of their overall IT. We expect 2018 to drive more adoption in cloud native technologies among enterprises.
01 BeginnerMonthly cloud spend - Less than $20K. Basic level usage of services like VMs, EC2, Databases, RDS, Network, Object Storage and Block Storage etc
02 CompetentMonthly cloud spend - between $20K to $50K. Has decent grasp of cloud architecture and uses PaaS services for deployment and cloud native data services from AWS & AZURE along with core IaaS services.
03 ProficientMonthly cloud spend - between $50K to $100K. The technical gap reduces here. The user is familiar with cloud and is able to leverage advanced services for enterprise needs and heavy use of IaaS with mix of PaaS services.
04 ExpertMonthly cloud spend - above 100K. Extremely advanced skillsets to use and leverage broader set of services like Serverless, API Gateways, Data Streaming, Enterprise Network Connects, Analytics, IoT and AI/ML offerings.
User Classification
SMBRevenue: Less than
$50M/year
Mid-sizeRevenue: $50M to
$1B/year
EnterpriseRevenue: More than
$1B/year
Cloud – Pursued by many but mastered by some.
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
21%
62%
50%
12%
8%
13%
20%
11%
47%
19%
37%
Beginner Competent Proficient Expert
Cloud Maturity Index
Mid-size companies are the masters of public cloud. They use cloud with agility and leverage tools and processes like enterprise to manage their business better.
Startups find public cloud easier to start but harder to manage with governance for cost controls.
Most enterprise are either beginners or experts, with evolving cloud management complexities.
Once on cloud, companies push for expertise but only midsize and enterprise manage to master cloud use due to better focus, tools and processes.
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zz Mid-size pursue multi-cloud
72%
z
83% of enterprise customers on public cloud are actively exploring hybrid cloud
70% of Mid-size customers are planning to pursue multi-cloud. The Azure and Google cloud influence was very evident in 2017 from the adoption.
72% of SMB cloud customers want to stay loyal to their current cloud providers as they are focussing on expertise and scaling their business.
Mid-size companies utilize a multi-cloud strategy to achieve specific functional workloads that enables faster delivery on projects, handle software licensing and manage business needs.
Enterprises bullish on hybrid cloud
83%
Want to focus on one cloud
70%Cloud – Pursued by many but mastered by some.
Cloud Adoption Patterns
13%
25%
62%
One Public CloudMultiple Public Clouds
Hybrid Cloud - Public + Private
Botmetric Public Cloud Usage Report 2017
Cloud – Pursued by many but mastered by some.
Cloud Priorities
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
17%
33%
27%
47%
29%
41%
36%
38%
32%
Cloud Security Cost Management DevOps
Starting up, Security is the number 1 priority followed by
governance processes
With maturity focus shifts to cost management and
cloud optimization.
Enterprise finance teams are being trained on cloud spend
and budget management
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Mid-size use cloud for R&D
63% SMBs have nearly 80% of their workloads in production.
As they progress on the cloud maturity scale, companies seem to increase workloads for non-production use cases.
Mid-size and enterprise use cloud extensively for R&D environments and that increases the non-production workloads.
Pursual of active DR and ‘global reach’ by enterprise is also driving the increase in production workload which would have otherwise resulted in a 50-50 split.
SMB production workloads in cloud
78%
Non-production use is like waistline - tends to increase with age
Cloud Workload Distribution
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
22%
42%
60%
78%
58%
40%
Production Non-production
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Web applications stand out to be the most popular workload; machine learning still in early adoption stage
Cloud’s Popular Workloads
No surprise! Web and digital applications inhabit the most of cloud.
Database usage by enterprise is not as high due to hybrid data usage. In future this may change with cloud databases as they are proving to be more cost effective.
Mid-size is embracing machine learning with more focus in specific use cases. Enterprise customers are leveraging hybrid cloud for analytics, BI and ML needs.
SMB and Mid-size customers again are the flag-bearers of advanced cloud services like containerization and serverless, exhibiting required agility and skill sets.
Serverless Applications
Machine Learning & Advanced Analytics
Containerization
Microservices
Data Analytics & BI
Database Workloads
Digital Applications (Web, Mobile & API)
0% 25% 50% 75% 100%
Enterprise Mid-size SMB
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Most popular services across AWS and Microsoft Azure
Cloud’s Popular Services
EC2 is the most popular AWS serviceEC2 and RDS are most utilized AWS
services. There is sharp rise in S3 usage
with big data push.
A
87% of Azure Users leverage VMs59% enterprise customers feel hybrid
cloud is easier with Azure.
M
Popular AWS Services
Popular Azure Services
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Highly specialized services used by select few in the cloud
Specialized Services Usage
IoTOnly 6% of enterprise
companies are running IOT related dev/test or R&D
workloads on public cloud
AIAI is still not mainstream, SMB &
Mid-size contribute to 90% of overall AI use cases or
workloads
ML AnalyticsBoth Mid-size and enterprise are
adopting ML for BI analytics actively. Growth rate has
increased in Q3-17
11% 4% 18%
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Most customers use M family instances more than any other instance families in AWS
AWS EC2 Instance Usage
n
r Big data runs on C or R families
72% 83% of the non production workloads run on T family due to cheaper cost.
M4 is the most popular for production instances.
C & R family instances are popular for Databases and big data processing, and seeing a healthy growth.
EC2 usage is M family
46%
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Most popular softwares used across AWS and Microsoft Azure
Cloud’s Popular Software
Ubuntu is big but CentOS is catching upCentOS derived Amazon Linux grew
significantly in 2017 thanks to ease of
configuring it for EBS, ECS & EMR etc
W
43% of Oracle Users are exploring PostgreSQLOpen Source PostgreSQL is gaining
popularity as an alternative to Oracle
S
Popular OS on Cloud
Popular Database on Cloud
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Businesses realize that managing cloud needs smart tools
Cloud Management Platform
SMBAn average SMB actively
considers using a CMP only after they reach a cloud spend of $7500 per month. Most SBM
users experience significant cost leaks due to misconfigurations
Mid-sizeMid-size adopt CMP faster due to planned cloud strategy, need for agility and shortage of skills.
Most companies understand importance of using smart
tools in dynamic cloud environments
EnterpriseEnterprise takes time in
evaluation of tools and have internal teams to manage cloud. Most internal optimizations are
not scalable and turn to CMP for effectiveness
96% of the customers acknowledge that cloud is better managed using a Cloud Management Platform.
9 months 5 months 15 months
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For DevOps, the enterprise is fast becoming the master user, thanks to evolved IT management processes.
Many mid-size companies have better DevOps processes than an average enterprise user.
In SMB, except startups in technology space, others are struggling with DevOps adoption.
Production workloads for SMB
78%
DevOps is changing the way cloud and IT is operated by engineers.
DevOps Maturity
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
35%
60%
80%
55%
35%
15%
10%
5%
5%
No Plans Exploration Actively Persuing
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B Customers plan to move more workloads to cloud
68% SMB has the highest revenue to cloud spend ratio.
Mid-size public cloud spend has the fastest growth rate even with better optimization than other segments.
Average enterprise cloud expenses growth rate has doubled in comparison to 2016.
Enterprises are spending close $200K in Cloud on an average and we expect it to touch $500K in 2018.
Average growth in cloud spend during 2017
76%
Cloud spend often defies segment classifications
Cloud Spend Analytics
Enterprise
Mid-size
SMB
0 50,000 1,00,000 1,50,000 2,00,000
52000
150000
190000
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What services are companies consuming in cloud?
Cloud Consumption Patterns
Start-ups and Enterprise companies find database cost optimization tough.
Mid-size companies have optimized database costs better which gives them significant cost savings.
Mid-size companies leveraging advanced analytics and Bigdata applications use storage services extensively.
Only 3 out of 10 cloud customers are using cloud native analytics services provided by vendors like AWS & AZURE.
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
10%
6%
3%
7%
9%
9%
19%
22%
20%
32%
22%
28%
32%
41%
40%
Compute Database Storage Network Others
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The most performed cost saving actions by customers with Botmetric
Top Cost Saving Actions
n
r Average saving in Azure cloud by rightsizing
39%
Removed unused resources
85%
Setting budget alert
Rightsizing of running resources
Removal of unused resources
Start/ stop of non- production workloads
Reserved instances planning
0% 25% 50% 75% 100%
100%
70%
85%
75%
80%
Delete aged snapshots
Rightsizing of resources
Upgrade to latest generation
Delete unnecessary resources
Start/ stop of non-production VM
0% 25% 50% 75% 100%
100%
80%
70%
85%
60%
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Popular AWS Services
Popular Azure Services
5
B Growth in data security incidents
328%SQL injection is the most popular attack on webapps and most cloud load balancers are not protected.
Exposed keys in the code has been reported as a major reason for identity theft in 2017 while using cloud services.
Security events for DB’s and object stores like S3 have almost tripled in 2017.
40% of mid-size companies lack proper IAM controls and rotation policies.
SMBs use un-encrypted endpoints
78%
People don't react to reality; they react to their perceptions of reality.
Top Cloud Security Concerns
Web application attacks
Lack of data protection controls
Identity theft
Insecure network interfaces
Unauthorised access
0% 18% 35% 53% 70%
58%
64%
46%
38%
32%
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Frequent cloud security alerts by categories.
Top Security Alerts
Not following AWS recommended VPC network design is the major cause of network alerts.
Misconfiguration of network access controls is the highest contributor to data security alerts.
44% of overall data security alerts related to object storage and databases.
Customers need centralized view for their data access policies and QRT to mitigate data theft risks.
Enterprise
Mid-size
SMB
0% 25% 50% 75% 100%
12%
9%
11%
1%
1%
3%
11%
8%
9%
14%
10%
10%
3%
12%
6%
30%
24%
38%
29%
36%
23%
Network security Data security Server security Access & IAM security Infrastructure securityDR recovery Other
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B Mid-Size want unified compliance controls
63%PCI-DSS continues to be the most requested security control.
29% of users create custom security audits.
Most EU customers are struggling with GDPR adoption.
Growth in SOC compliance
32%
People don't react to reality; they react to their perceptions of reality.
Top Cloud Security Concerns
1
0% 25% 50% 75% 100%
32%18%12%15%23%
PCI-DSS CIS HIPAA SOC1/SOC-2 Others
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B Customers lost data due to lack of termination protection
18%36% Enterprises lock publicly open ports which is believed to be the first attack surface.
Only 17% enterprise rotate IAM keys on cloud.
55% Mid-Size has unused firewall rules and fail to protect their application and network endpoints.
Reduced attacks by blocking open public ports
42%
Top security recommendations enabled by customers after compliance audits in Botmetric
Top Security Actions
Others
Remove unused API key pairs and access keys
Remove unused security & network firewall rules
Rotating IAM keys
Termination protection for critical resources
Block undesirable publicly opened ports
0% 10% 20% 30% 40%
36%
17%
12%
10%
3%
22%
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Thank You
Multi-cloud is Priority
With an increase in the maturity
of public cloud users, public cloud
market will continue to evolve
with high demands for a multi-
cloud environment.
Cloud need to be Managed
The challenge to seamlessly
manage the cloud, is still a half-
won battle for most of the cloud
adopters.
Intelligence is the Key
Cloud management challenges
can be effectively addressed by
intelligent software to speed up
the process of digital IT
transformation.
Interested in detailed analysis behind this report? Contact – [email protected]
