Trends in Cloud
Computing
Tim Herbert
VP, Research & Market Intelligence
twitter.com/timjherbert
PC centric
On-premise
Web 1.0
Social
Mobile
Analytics
Cloud
POW SMAC
Time Flies When…
Era Dates (est.)
Computers (est.)
Applications (est.)
Users (est.)
Mainframe 1950 - 1965 ~100,000 Thousands Millions
Mini-Computing 1965 - 1980 ~10M Thousands Tens of millions
PC & Client/Server 1980 - 1995 ~100M Tens of thousands Hundreds of mil.
Internet (Web 1.0) 1995 - 2010 ~1B Hundreds of thou. Billions
SMAC 2010 - ? Tens of billions Millions Billions
Source: Nicholas D. Evans, ComputerWorld using data from Cognizant, IDC, Unisys and others
Trends to Think About
Trend #1
Users begin taking cloud computing for granted
Company IT Systems
Increasingly Cloud-based
10%
44%
29%
16%
10%
31%
38%
22%
0% cloud-based
1%-30% 31%-60% 60%-100%cloud-based
2012
2013
Includes all types of cloud systems: SaaS, PaaS and IaaS
Source: CompTIA
Customers Progress Through
Cloud Adoption Stages
Experiment-ation
Non-Critical Use
Full Production
Optimization
Currently Using IaaS/PaaS
36%
57% 53%
Small firms
Medium firms
Large firms
Currently Using Cloud Solution For:
59% Storage/back-up
53% E-mail
49% Web presence
48% Disaster recovery/business continuity
46% Business productivity
44% Collaboration
41% CRM
41% Mobile application backend
41% Analytics or business intelligence
40% Communications (webinar, videoconferencing, IM, etc.)
38% Financial management
34% HR management Source: CompTIA
Trend #2
Cloud maturity leads to wider benefits
Cloud Maturity Leads to Wider
Benefits
29%
30%
46%
39%
46%
56%
Ability to CutCosts
Simply a BetterOption
Early Adopters Mid Adopters Late Adopters
New capabilities or features
Allow business units to operate more freely
Reduce capital expenditures (move to OpEx)
Reduce operational complexity
Free up IT headcount
Simple/fast implementation
Other Key Benefits Reported by Users
Source: CompTIA
Business Objectives = IT
Objectives (and Vice Versa)
8 in 10 executives agree (NET) to the statement:
"If we could harness all of our data, we'd be a much stronger business”
Unstructured or
Semi-structured Data
10% Structured Data
Silos Reduce Data Utility for Many Businesses
16%
56%
28%
High Degree
of Data Silos Little or No
Data Silos
Moderate Degree
of Data Silos
Source: CompTIA
The Future of Work?
Used Regularly in Workplace
Age of Worker
20-29
Years
30-39
Years
40-49
Years
50-59
Years
60+
Years
Microsoft Word 86% 86% 88% 88% 88%
Microsoft Excel 71% 74% 72% 65% 59%
Microsoft PowerPoint 52% 63% 57% 46% 40%
Online version of applications for word processing
or spreadsheets (e.g. Google Docs) 33% 37% 21% 16% 10%
Mobile app specific to job 27% 28% 17% 10% 12%
Source: CompTIA
Trend #3
Businesses re-think policies and procedures
Changes Driven by Cloud
19%
31%
37%
39%
39%
45%
53%
Reduced number of IT staff
New monitoring/management tools
Restructured IT department
New policies for IT decision making
Adapted monitoring/management tools
Changed existing policies/procedures
Built new policies/procedures
Source: CompTIA
Helping Customers Connect
the Dots
Security
Proper storage of company data
Use of mobile devices
Support for cloud services
Approved vendors
Areas Addressed by Cloud Policy Level of Enforcement
14%
67%
18%
High
level
Low
level
Medium
level
Source: CompTIA
The Changing Dynamics of the
IT Dept-LOB Relationship
When the Pros Are
Called Back In
Cloud solution not working
as expected
Cloud solution required
integration with other
business systems
Security issue associated
with cloud solution
IDC: by 2016, LOB
executives will be directly
involved in 80% of new IT
investments.
Gartner: 40% of IT budgets
are shifting from the IT
department to LOBs.
CompTIA: 55% of
businesses* have allowed
cloud services to be
procured through LOBs.
“Bring Your Own Cloud”
Source: CompTIA
Trend #4
On the move: cloud to cloud migration on the rise
Migration Patterns Among
Cloud Customers
Public Cloud
Provider #1 Public Cloud
Provider #2
Private or
Hybrid
Cloud
On-premise
System
ACME Corp
24%
25%
29%
(Apps)
27% (Infrastructure)
Source: CompTIA
Reasons for Switching Public
Cloud Providers
20%
26%
29%
38%
41%
42%
45%
Dissatisfied with customer service
Dissatisfied with terms of service
Outages with original provider
Move to more open standards
Better offerings/features
Costs too high with original provider
Security concerns with original provider
Source: CompTIA
Trend #5
Channel partners continue on the path of business transformation
Cloud Business Models
Framework for the Channel
Build Provide /
Provision
Enable /
Integrate
Manage /
Support
IaaS | PaaS | SaaS
Public | Private | Hybrid Clouds
Cloud Aggregation | Brokerage Services
Procure HW +
SW; add
expertise to
build cloud
Resell /
Referral
White-label
Hosting / Direct
to customer
Deployment
Consulting | Advising | IT Solutions
Integration
Break/Fix
Managed
Services
Customization /
Development
Architecture /
Design
Source: CompTIA
Cloud Business Model
Activity/Importance
48% 49% 51% 61%
32% 34% 35%
27%
Cloud Business Model Involvement
among Channel Partners
Currently
provide
Plan to
provide
Build Provide/
Provision
Manage
/
Support
Enable/In
tegrate
Value of Business Model
Activities to Channel Firms
Strategic Opport-
unistic
Build 46% 37%
Provide/Provision 49% 38%
Enable/Integrate 53% 33%
Manage/Support 58% 32%
Source: CompTIA
Partners See Strong Demand from
Customers for Cloud Solutions
37%
41%
22%
Customer Demand for Cloud Solutions
Very High
Demand
High Demand
63% NET High Demand
Somewhat High
or Low Demand
Rating of Demand from
Channel Partner
Perspective
Channel partners with
a cloud build practice
or a provide/provision
practice are most
bullish on customer
demand for cloud
solutions.
Customer desire to reduce complexity
Customer desire to increase mobile/remote
access to company data
Customer eyeing cost reductions or they are
price sensitive
Ability to on-ramp and scale new
features/services faster
Situations Where Partners Recommending
Cloud over On-premise Solutions
Source: CompTIA
Key Hurdles Partners Face When
Building Out a Cloud Practice
Developing cloud tech/sales expertise
Optimizing cloud marketing/sales messaging
Deciding which vendors to work with
Cash flow/financial considerations
Determining business model
Balancing needs of legacy business
% of partners
reporting an
INCREASE in
channel conflict
over past 2 years
60% In response to channel
conflict, 37% of partners
report intensifying efforts to
improve their
services/solutions
capabilities
The Channel Conflict Conundrum
Source: CompTIA
In Closing: IF…THEN…ELSE
On the POW-SMAC transition continuum, where do your customers
sit? Where does your company sit? Where do you want to sit?
IF entering SMAC
space, THEN… IF SMAC veteran,
THEN…
Recommended
