The WaveLength team releases the first of its three-volume series, The Continuing Enterprise Cloud Market Evolution. Our series aims to help IT, telecom, and cloud marketers better understand medium and large enterprise cloud prospects and customers. Its finally here.. catch the first presentation of our three-volume series where we look at the state of the market for cloud solutions and how its changed over the last 18 months.
1. The Continuing Enterprise Cloud Computing Evolution A Market Overview based on Primary Research Benchmarking, November 2012 1Copyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
2. Agenda Key Findings Goals and key questions What is the cloud market from a vendor or provider perspective? What is the studys big picture of the enterprise cloud? What are the enterprise cloud market segments ? What is the near-term future of enterprise cloud? Summing Up Appendix: Goals and methodsCopyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
3. Five key study findings on enterprise cloud computing migration among 97 medium to large enterprise IT buyers Nearly 90% of responding enterprises use of plan to use some type of Cloud computing adoption cloud computing solution; the market is comprise d of 19% Cloud Pros among medium to large who have multiple clouds, 59% Pioneers who use or test a cloud, 12% enterprises is now widespread Planners who intend to deploy and 10% Stragglers who have no plans. Cloud Pros and Pioneers tend to be very large enterprises in Cloud segments have banking/finance, manufacturing, higher education, or business demographic trends services; while Planners and Stragglers are smaller and in government, healthcare and heavy industries. Pros use every type of cloud, with most common being public cloud Cloud model preferences and (91%) & least common is hybrid (45%); Pioneers use internal private vendors vary by segment cloud (56%) & PaaS (46%); 83% of Pros use AWS data center, contrasted with 28% of Pioneers, who mostly use traditional IBM & Verizon. Cloud Pros implement network-related projects to prepare for Cloud Project priorities vary by and Pioneers improve storage and security. About or greater than 70% segment of Pros add LAN bandwidth, WAN bandwidth and WAN optimization, while about 70% of Pioneers add SANs, NAS and encryption. Percentage of IT in the cloud estimates are slightly higher in 2012 than Enterprises will rapidly deploy in 2011. Pros expect to increase cloud as a percentage of IT from more cloud solution in coming about 28% to 38% in the next 3 years, while Pioneers hope to more year than doubles its percent of IT in the cloud from nearly 15% to 33%.Copyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
4. Goal and key questions How has the market changed Whats the current in the last 18 What are market market for cloud months? segments and solutions? who are they? Help IT and telecom marketers better understand medium and large enterprise cloud prospects and customers How does How do future enterprise IT vary How do cloud cloud plans vary by by segment? solutions vary by segment? segment?Copyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
5. Hows the cloud market from a vendor orprovider perspective? In a challengingmacroeconomic environment, cloud has aprofound impact.
6. Enabling technologies prosperVirtualize Niciras network virtualization has high-profile user in eBay, and a buyer in VMwareeverythingcontinues VMwares Monster VMs grow from 32 to 64 virtual CPUs Zertos cloud-based disaster recovery services for enterprises and service providers include virtual replicationObject storage Cloudian launched free, object-based storage platform, storing up to 100TBtakes root Scality grew 120% year-over-year and signed agreements supporting over 50 million users Cleversafe launched Object-based Dispersed Storage System for Big Data, promising to reduce required storage and network bottlenecks supporting exabyte and beyond storageWAN Aryaka, a cloud-based WAN optimization and app acceleration service provider partners with AWSoptimization andcontent deliveryimportance Akamai buys FastSoft to improve website and web application performance across the first andrenews last miles, as well as through the cloud, without requiring client software or browser plug-ins Sources: Company Press Releases
7. Many tech segments benefit Telco & CDN providers renew grow Pure-play cloud vendors grow unabated Revenue was up 34% over last year, for the 6th consecutiveEnterprise customer segment is finally seeing revenue increases quarter of year-over-year revenue growth in the mid-30% range.even without any lift from the economy its firstin more than Theres no other enterprise software company of our scalefour years. The growth was small, but still a positive trend. AT&T, growing at this rate. Salesforce.com, July 24, 2012July 24, 2012 Overall, the Data Center & Cloud business had a strong first half ofLegacy Savvisyear-over-year increases of 11.5% in managed 2012, up 25% through midyear. Within our SaaS business, revenuehosting and cloud services revenues and a modest increase in was up 18% from last year. Our collaboration and data sharingnetwork services revenues. CenturyLink, Aug. 10, 2012 products, which account for over half of the total SaaS revenue, increased 33%. Citrix, July 25, 2012Cloud infrastructure solutions growth, accelerated to 22% year-over-year, made up 58% of our total revenue. And in terms of Dedicated cloud revenue increasedrepresenting 4.1% sequentialbrand-new customers to Akamai, over 75% purchased a cloud growth & 21% growth on a year-over-year basis. Public revenueinfrastructure solution. Akamai, July 25, 2012 cloud12.1% sequential growth & 69% growth on a year-over-year basis.. Rackspace, August 7, 2012 Large integrators & outsourcers see gains Cloud platforms find market acceptance With more than 100 large enterprise customers, Cloudstack wasWe doubled last years revenue, with contribution from all areas, contributed to the Apache software foundation which runsprivate cloud, public cloud and our industry-based solutions. IBM, some of most successful open-source cloud projects.July 18, 2012 eBay announced they use OpenStack to manage a high-volumeDemand continues to grow for cloud solutions, for application re- dev, test and experimentation environment where apps areplatforming and also for new software-as-a-service solutions from created for eBay marketplaces.both the established technology players, as well as from newerSaaS providers. Accenture, June 28, 2012 Neustar ported its UltraDNS to AWS. Sources: Company earnings calls, press releases
8. Hardware landscape changing, but datacenter and storage provide bright spots Overall switching revenues flat this quarter with fixed switching up 3% and modular switching down 7%...Routing growing revenues 4% year-over-year while many of our peers are experiencing negative growth... Data center business had strong growth with revenues up 87%. Cisco, August 15th, 2012 HP, August 15th, 2012 On a less positive note, the mainstream server market continues to show weakness. Turning to Enterprise Servers, Storage and Networking. Revenue of $5.1 billion was down 4% year-over-year. Storage, the continued strong performance of 3PAR, with more than 60% growth, and StoreOnce, with double-digit growth, did not offset the decline in EVA and Tape revenue. Sources: Company Earnings Calls
9. What about enterprises? How do theybenefit?
10. Cloud brings increased agility, cost savings, new functionality and competitive advantage Cloud computing growthCopyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
11. Turning to the study, whats the big pictureof enterprise cloud? Understanding cloudservices first requires looking through awider lens of where the journey to thecloud begins-- virtualization andoutsourcing.
12. Among all respondents, disaster recovery is outsourced the most Biggest growth for outsourcing is Storage storage-related where levels are twice last years Perimeter levels. Security is Security also up about 80% and network Disaster management Recovery stayed neutral. Network Management Data backups Q. Yes or no, do you outsource any of the following functions ? (n=97) 12Copyright 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
13. Nearly half of all servers are virtualized, alongwith about a third of storage and workloadsQ. Regarding storage/servers/Tier 1 workloads/Tier 2 workloads, what percentage is virtualized? (n=96)