September 2015

Explosion of Shadow IT Cloud Use

2© 2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialSource: IDC 2

30MNew devices connected every week

78%Workloadsprocessed

in Cloud DCsby 2018

5TB+of data per person

by 2020

180BMobile apps downloaded

in 2015

277XData created by IoE devices

v. end-user

Exponential Rise in Connectivity

3© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

SaaS

PaaS IaaS

New Problem Emerging for the CIO

Data Center Cloud Edge / IoT© 2015 Cisco and/or its affiliates. All rights reserved. Cisco PublicPresentation ID

4© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Cisco Cloud Consumption Services

Shadow IT Trends

Discover all public cloud services (SaaS, PaaS, IaaS)

Helps organizations govern cloud services and manage risk and costs

Discovered cloud services in large enterprise customers

January 2014 – July 2015 United States, Europe, Canada and

Australia Includes public cloud use including

SaaS, IaaS, PaaS

Bringing Visibility to Shadow IT

Cloud Consumption

5© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Exponential Growth, Diversity of Shadow IT

730

Jul-Dec2014

Jan-Jul2015

575

Cloud Use in Large Organizations

Shadow IT Growing

21%Growth

15-22X more cloud services purchased without IT

involvement51

Average IT estimates of cloud services used by their organization

730 Average cloud

services discovered

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What Makes Up Those 730 Cloud Services? SaaS Adoption Leads, IaaS Drives Traffic

SaaS58%

IaaS38%

PaaS4%

Breakdown of Cloud Use By Providers

SaaS46%IaaS

52%

PaaS2%

Breakdown of Cloud Use By Traffic

7© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Shadow IT Prevalent Across Industries

IndustryCustomer

Estimates Cloud Services Used

Discovered Cloud Services Multiple

Education 23 517 22x

Public Sector 26 390 15x

Financial 30 590 20x

Healthcare 46 803 17x

Manufacturing 38 548 15x

Retail 33 508 15x

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Shadow IT & Business RiskTop Ten Cloud Service Categories That Pose Greatest Business Risk

Cloud Drive/Storage

Backup & Recovery

Enterprise Resource Planning

Finance & Accounting

Legal Compute

Customer Relationship Management

Human Capital Management

Application Development & Testing

Services Management

9© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Redundant Cloud Services Increasing

Customer Relationship Management

Enterprise Resource Planning

E-Commerce

Cloud Drive/Storage

Collaboration

Human Capital Management

Services Management

Finance & Accounting

Marketing & Sales

Compute

23

29

35

39

44

53

60

62

157

174

Top Ten Service Categories: Average Number of Providers

(IaaS, Hosting, Compute)

10© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Hidden Costs of Public Cloud4-8X Higher Than Billed Costs

Business Risk

4-5X Higher

Network & Security

1X Higher

Operations & Integration

2X Higher

11© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Gre

ater

Bus

ines

s A

gilit

y

Lower Cost & Risk

Define Cloud Strategy

Aligned to Business

Discover & Monitor Cloud

Use

Implement Hybrid-ready Private Cloud

Evolve IT Hybrid Cloud

Service Broker

Moving From Shadow IT Hybrid ITFive Step Customer Journey

Pervasive Hybrid IT