RightScale 2016 State of the Cloud Report

•  Significant growth in hybrid cloud adoption •  Companies use six clouds on average – 3 public, 3 private •  More enterprise workloads shift to cloud; faster growth in private cloud •  Enterprises gain alignment on role of central IT in cloud •  Security is no longer top cloud challenge •  Cloud cost management challenge grows, but optimization efforts lag •  Docker spreads like wildfire, especially in the enterprise •  Public cloud reaches 89% overall penetration

•  AWS increases penetration in enterprise, but flat overall •  Azure increases both IaaS & PaaS adoption, especially in SMB

•  Private cloud adoption goes up across all providers •  VMware sees largest gains in enterprise •  OpenStack and CloudStack gain most among SMBs

Key Highlights

•  69,023 people from the RightScale database were emailed the survey •  1060 responses •  433 (42%) are 1000+ employees (Enterprises)

•  3.07% margin of error •  Respondents are not just RightScale users •  17% are RightScale users

Methodology

42%

25%

33%

Respondents by Company Size 1060 respondents

Company Size

1001+ employees

101-1000 employees

1-100 employees

Source: RightScale 2016 State of the Cloud Report

25%

24%

27%

7%

6% 4% 4%

3%

Respondents by Industry 1060 respondents

Industry

Software!

Tech!Services!

Financial Services!

Other!

Media & Publishing!

Education!

Business Services!


Hardware!

61% 19%

13% 7%

Respondents by Region 1060 respondents

Region

North America!


Europe!

Asia!

Rest of World!

55%

11%

34%

Role of Respondents 1060 respondents

Role of Respondents

Dev!

Business!

IT/Ops!

26%

24% 13%

16%

10%

11%

Level of Respondents 1060 respondents

Architect!

Dir/Mgr!

Exec!

IT/Ops!

Dev/QA!

Other!

Source: RightScale 2016 State of the Cloud Report Source: RightScale 2016 State of the Cloud Report

44%

40%

16%

Role of Cloud Architect Emerges

Role of Cloud Architect Emerges

IT Architect!


Cloud Architect!

Development!Architect!

Cloud Maturity

9% 11% 26% 25% 29%

Cloud Maturity of Respondents

Cloud!Watchers!

Cloud!Beginners!

Cloud!Explorers!

Cloud!Focused!

No!Plans!

Planning First project Apps running Heavy use


A Quarter of Enterprises and A Third of SMBs are “Cloud Focused”

11%

6%

13%

9%

26%

26%

19%

34%

32%

25%

SMB

Enterprises

Cloud Maturity by Company Size

No plans Cloud Watchers Cloud Beginners Cloud Explorers Cloud Focused

1000+ employees

<1000 employees


Enterprises Increase Cloud Maturity in 2016

3%

6%

14%

9%

27%

26%

38%

34%

18%

25%

2015

2016

Enterprise Cloud Maturity 2016 vs. 2015

No plans Cloud Watchers Cloud Beginners Cloud Explorers Cloud Focused


Finding:""

Hybrid Cloud Continues to be "Strategy of Choice"

82% of Enterprises Still Want Multi-Cloud

Single private!6%!

Single public!9%!

No plans!3%!

Multiple private!11%!

Multiple public!16%!

Hybrid cloud!55%!

Enterprise Cloud Strategy 1000+ employees

Multi-Cloud 82%


Multi-Cloud Strategy 2016 vs. 2015

3%

3%

5%

6%

10%

9%

13%

16%

14%

11%

55%

55%

2015

2016

Enterprise Multi-Cloud Strategy 2016 vs. 2015

No plans Single private Single public Multiple public Multiple private Hybrid cloud


Finding:""

Hybrid Cloud Use Soars"as Public Cloud Users Add Private Cloud

95% of Respondents Are Using Cloud (Running Apps or Experimenting)

Public Cloud!Only!

Private Cloud!Only!

95% of Respondents Are Using Cloud

71%! 6%!18%!Hybrid!


Private = 77%!Public = 89%!

88%

63% 58%

93% 89% 77%

71%

95%

Public Cloud! Private Cloud! Hybrid Cloud! Any Cloud!

Respondents Adopting Cloud 2016 vs. 2015

2015 2016

Private/Hybrid Adoption up YoY


# of Clouds Used Public Clouds All respondents

Private Clouds All respondents

Running applications 1.5 1.7

Experimenting 1.5 1.3

Total 3.0 3.0

Average # of Clouds Used

29%

27% 23%

10%

10%

Top Priority for Enterprise Central IT

Top Priority for Enterprise Central IT is Hybrid


Leveraging !hybrid cloud!

Building a !private cloud!

Using a hosted private cloud!

Using !public cloud!

Public and private are equal priority!

Finding:""

More Enterprise Workloads "Shift to Cloud"

Public Workloads Grow, but Private Workloads Grow Faster

4%

14%

13%

11%

16%

28%

11%

13%

14%

26%

26%

28%

48%

31%

17%

Virtualized Environments

Private Clouds

Public Clouds

Number of VMs Enterprises Are Running in Cloud

None 1-50 VMs 51-100 VMs 100-1000 VMs 1000+ VMs

VMs Running in Cloud for Enterprises


12%

13%

32%

28%

16%

14%

27%

28%

13%

17%

2015

2016

Number of VMs Enterprises are Running in Public Cloud


Growth in VMs Running in Public Cloud –Enterprises


18%

14%

18%

16%

11%

13%

31%

26%

22%

31%

2015

2016

Number of VMs Enterprises are Running in Private Cloud


Growth in VMs Running in Private Cloud –Enterprises


7%

4%

13%

11%

10%

11%

28%

26%

42%

48%

2015

2016

Number of VMs Enterprises are Running in Virtualized Environments


Growth in VMs Running in Virtualized –Enterprises


13%

22% 17%

31%

Public Cloud! Private Cloud!

Enterprise Respondents with 1000+ VMs in Cloud

2015 2016

Enterprises with 1000+ VMs in Cloud YoY


Finding:""

SMBs Running More Workloads in Public, Enterprises Running More in

Private Cloud

13%

22%

11%

12%

17%

24%

16%

39%

12%

11%

11%

10%

0% public, 100% private






Cloud Workloads by Cloud Type

Enterprise

SMB

Enterprise More Private, SMB More Public


Finding:""

Central IT is Establishing"Their Role in Cloud

BUs and Central IT Get Aligned

24%

29%

42%

44%

44%

42%

42%

47%

30%

48%

49%

49%

51%

52%

55%

55%

Pay for cloud services

Manage all cloud deployments

Broker cloud services

Set policies for cloud use

Select private clouds

Build private cloud

Select public clouds

Decide/advise on which apps go to cloud

Works in Central IT

Works in Business Unit

Enterprise Views of Role of IT in Cloud


BUs Give Central IT Larger Role

25%

39%

34%

40%

47%

31%

35%

44%

24%

29%

42%

42%

42%

44%

44%

47%

Pay for cloud services

Manage all cloud deployments

Select public clouds

Broker cloud services

Build private cloud

Set policies for cloud use

Select private clouds

Decide/advise on which apps go to cloud

2016 2015

Enterprise BU Views of Role of Central IT


30%

34%

35%

37%

43%

46%

52%

58%

38%

38%

39%

43%

45%

48%

56%

63%

Approval policies for cloud

Cost policies for cloud

Availability or disaster recovery policies for cloud

Portfolio of clouds that can be used

Which applications should go to cloud

Timeline for implementing a cloud strategy

Security policies for cloud

Benefit or value the company wants to achieve

Enterprises with Key Areas of Cloud Governance Defined

2016 2015

Progress on Cloud Governance YoY


Finding:""

More Cloud Users Gain Speed"from Cloud Adoption

39%

41%

38%

40%

40%

40%

48%

51%

57%

57%

37%

38%

39%

39%

39%

41%

52%

52%

58%

62%

Cost savings IT staff efficiency

Move CapEx to OpEx Geographic reach

Higher performance Business continuity

Faster time-to-market Higher availability Greater scalability

Faster access to infrastructure

Cloud Benefits 2016 vs. 2015 % of Respondents Reporting These Benefits

2016 2015

Cloud Benefits in 2016


46% 52% 48%

57% 52%

62%

Faster speed-to-market Faster access to infrastructure

Respondents that Gain Speed Benefits from Cloud

2014 2015 2016

Cloud Increasingly Means Speed


0%

20%

40%

60%

80%

100%

Cloud Beginners Cloud Explorers Cloud Focused

Benefits Grow with Cloud Maturity % of Respondents Reporting These Benefits

Cost savings

Geographic reach

Higher performance

Business continuity

IT staff efficiency

CapEx to OpEx

Higher availability

Faster time-to-market

Greater scalability


Benefits Grow with Cloud Maturity


22%

24%

20%

20%

23%

17%

25%

26%

30%

32%

21%

22%

24%

25%

25%

27%

27%

31%

36%

37%

Move CapEx to OpEx IT staff efficiency

Higher performance Geographic reach

Cost savings Business continuity

Faster time-to-market Higher availability Greater scalability


Cloud Benefits for Cloud Beginners 2016 vs. 2015

2016

2015

Cloud Beginners See More Benefits in 2016


Finding:""

Security No Longer the #1 Challenge,"Lack of Resources/Expertise Is

17%

23%

26%

24%

25%

25%

28%

27%

15%

23%

24%

26%

26%

26%

29%

32%

Performance

Governance/control

Complexity of building a private cloud

Managing costs

Managing multiple cloud services

Compliance

Security

Lack of resources/expertise

Cloud Challenges 2016 vs. 2015

2016 2015

Lack of Resources/Expertise is Now #1 Challenge, Not Security


47%

2014

Central IT Concerns About Security Decline

41%

2015

Enterprise Central IT Rating Cloud Security as Significant Challenge


37%

2016

0%

20%

40%

60%

Cloud Beginners Cloud Explorers Cloud Focused

Challenges Decrease with Cloud Maturity % of Respondents Reporting These As Significant Challenges

Lack of resources/expertise

Security

Compliance

Managing multiple cloud services

Governance/control

Building a private cloud

Managing costs

Performance

Challenges Decrease with Cloud Maturity


Place Cloud Beginners Cloud Explorers Cloud Focused

#1 Lack of resources/expertise (38%)

Lack of resources/expertise (34%) é 3

Lack of resources/expertise (26%) é 5

#2 Security (35%) Compliance (32%) Building a private cloud (19%)

#3 Compliance (34%) Managing costs (30%) Managing costs (18%)

#4 Managing multiple cloud services (30%)

Security (28%) ê 2

Managing multiple cloud services (18%)

#5 Governance/Control (29%) Managing multiple cloud services (26%)

Security (17%) ê 4

Top 5 Challenges Change with Maturity

Top 5 Challenges Change with Cloud Maturity!


•  Enterprises - Security is #2 •  SMB – Security is #3 •  Central IT – Security is #2 •  Business Units – Security is #4 •  Security Pros- Security is #2 •  Cloud Focused - Security is #5 •  Cloud Explorers - Security is #4 •  Cloud Beginners - Security is #2 •  Cloud Watchers (in planning stages) - Security is #1

Security is #1 Issue Only If Cloud Experience Is Low

Finding:""

More Cloud Cost Optimization is a Big Opportunity

18% 21%

24% 26%

2013! 2014! 2015! 2016!

Respondents that Say Managing Cloud Costs is a Significant Challenge

Challenge of Managing Costs is Growing


3%

18%

17%

18%

21%

36%

29%

28%

28%

45%

4%

14%

22%

24%

25%

28%

31%

33%

34%

45%

Use Google Preemptible VMs

Use AWS Spot Instances

Move workloads to cheaper cloud/region

Select cloud or region based on cost

Track AWS Ris to make sure they are used

Purchasing AWS Ris

Look for storage volumes not in active use

Shutdown workloads during certain hours

Automate shutdown of temporary workloads

Monitor utilization and rightsize instances

How Companies are Optimizing Cloud Costs

Enterprise SMB

Few Companies are Optimizing Cloud Costs


3%

17%

21%

22%

25%

33%

32%

33%

33%

49%

5%

15%

18%

20%

24%

36%

29%

29%

28%

42%

Use Google Preemptible VMs

Use AWS Spot Instances

Move workloads to cheaper cloud/region

Select cloud or region based on cost

Track AWS Ris to make sure they are used

Purchasing AWS Ris

Look for storage volumes not in active use

Shutdown workloads during certain hours

Automate shutdown of temporary workloads

Monitor utilization and rightsize instances

How Companies are Optimizing Cloud Costs

Cost is challenge

Cost not a challenge

People that See Cost as Challenge are Optimizing LESS


Finding:""

2016 Initiatives:"Cloud Beginners want to do more in cloud,

while Cloud Focused need to optimize

17%

29%

30%

29%

34%

38%

43%

35%

33%

39%

40%

44%

44%

46%

47%

57%

Enabling IT to broker multiple cloud services

Expanding private clouds we use

Expanding use of containers

Implementing a cloud first strategy

Implementing CI/CD in the cloud

Expanding public clouds we use

Optimizing existing cloud use (cost savings)

Moving more workloads to cloud

Cloud Initiatives in 2016

Enterprise SMB

2016 Cloud Initiatives


Place Cloud Beginners Cloud Explorers Cloud Focused

#1 Move more workloads to cloud (43%)

Move more workloads to cloud (63%)

Optimizing existing cloud use/cost savings (62%)

#2 Implement a cloud first strategy (40%)

Optimizing existing cloud use/cost savings (53%)

CI/CD in the cloud (52%)

#3 Expand public clouds we use (37%)

Expand public clouds we use (51%)

Expand public clouds we use (50%)

#4 Expand private clouds we use (36%)

CI/CD in the cloud (46%)

Expand use of containers (48%)

#5 Optimizing existing cloud use/cost savings (34%)

Expand use of containers (41%)

Move more workloads to cloud (44%)

2016 Initiatives Depend on Cloud Maturity

Top 2016 Initiatives Depend on Cloud Maturity!


Finding:"DevOps Growing"

Docker Spreading Like Wildfire

Strong Growth in DevOps Adoption in 2016

66%

74%

19%

16%

15%

10%

2015

2016

DevOps Adoption Up in 2016

Adopting DevOps Not adopting Don't Know


Enterprises Adopt DevOps at Even Higher Rate

70%

81%

19%

12%

11%

7%

SMB

Enterprise

Enterprise vs. SMB DevOps Adoption

Adopting DevOps Not adopting Don't Know


21%

31% 29%

12% 7%

Enterprise Adoption of DevOps

Enterprise Adoption of DevOps is Widespread


Adopting DevOps company-wide!

Adopting DevOps for projects or teams!

Not adopting DevOps!

Adopting DevOps!for BUs or divisions!

Don’t know!

2%

3%

3%

4%

6%

7%

9%

20%

27%

32%

32%

8%

10%

12%

11%

16%

18%

12%

14%

35%

18%

19%

Rancher Rocket

Docker Tutum Mesosphere

Docker Swarm Kubernetes

Salt Ansible Docker Puppet

Chef

Respondents Using DevOps Tools

Use today Plan to use

2016 DevOps Tools – All Respondents


3%

6%

10%

13%

28%

24%

3%

9%

20%

27%

32%

32%

Rocket

Salt

Ansible

Docker

Chef

Puppet

Respondents Using DevOps Tools

2016 2015

DevOps Tools YoY – All Respondents


2%

3%

4%

5%

8%

10%

13%

23%

29%

37%

42%

8%

12%

12%

13%

16%

19%

13%

15%

38%

20%

19%

Rancher Rocket

Docker Tutum Mesosphere


Salt Ansible Docker

Chef Puppet

Enterprise Respondents Using DevOps Tools


Puppet Leads in the Enterprise


3%

8%

8%

14%

32%

36%

3%

13%

23%

29%

37%

42%

Rocket

Salt

Ansible

Docker

Chef

Puppet

Enterprises Using DevOps Tools

2016 2015

DevOps Tools YoY – Enterprise


2%

3%

3%

4%

4%

5%

7%

17%

25%

26%

28%

9%

12%

9%

10%

16%

18%

11%

13%

18%

33%

18%

Rocket (rkt) Docker Tutum

Rancher Mesosphere


Salt Ansible Puppet Docker

Chef

SMB Respondents Using DevOps Tools


Chef/Docker Lead in the SMB


3%

5%

11%

19%

13%

26%

2%

7%

17%

25%

26%

28%

Rocket

Salt

Ansible

Puppet

Docker

Chef

SMBs Using DevOps Tools

2016 2015

DevOps Tools YoY – SMB


Finding:""

AWS Increases Adoption in Enterprise, But Flat Overall"

Azure Gaining Adoption, Especially in SMBs

4%

5%

6%

7%

7%

7%

13%

17%

57%

10%

8%

15%

10%

13%

13%

20%

25%

17%

6%

5%

10%

8%

9%

8%

12%

11%

8%

Oracle Cloud (IaaS)

DigitalOcean

Google IaaS

IBM SoftLayer

Google App Engine (PaaS)

VMware vCloud Air

Azure PaaS

Azure IaaS

AWS

Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – All Respondents


4%

5%

7%

7%

10%

20%

57%

10%

8%

10%

13%

18%

29%

17%

6%

5%

8%

8%

13%

15%

8%

Oracle Cloud (IaaS)

DigitalOcean

IBM SoftLayer

VMware vCloud Air

Google (IaaS+PaaS)

Azure (IaaS+PaaS)

AWS

Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – All Respondents Google and Azure IaaS + PaaS Combined


5%

5%

8%

5%

9%

12%

57%

4%

5%

6%

7%

7%

7%

13%

17%

57%

Oracle Cloud (IaaS)

DigitalOcean

Google IaaS

IBM SoftLayer


VMware vCloud Air

Azure PaaS

Azure IaaS

AWS

Public Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Public Cloud Adoption YoY – All Respondents


Not asked in 2015

Not asked in 2015

2%

6%

6%

6%

7%

11%

17%

23%

56%

5%

16%

10%

12%

13%

14%

24%

28%

16%

3%

9%

6%

7%

9%

9%

13%

13%

8%

DigitalOcean

Google IaaS

Oracle Cloud (IaaS)


IBM SoftLayer

VMware vCloud Air

Azure PaaS

Azure IaaS

AWS

Enterprise Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – Enterprises


2%

6%

7%

9%

11%

26%

56%

5%

10%

13%

18%

14%

33%

16%

3%

6%

9%

11%

9%

17%

8%

DigitalOcean

Oracle Cloud (IaaS)

IBM SoftLayer

Google (IaaS+PaaS)

VMware vCloud Air

Azure (IaaS+PaaS)

AWS

Enterprise Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – EnterprisesGoogle and Azure IaaS + PaaS Combined


7%

9%

6%

10%

15%

19%

50%

2%

6%

6%

6%

7%

11%

17%

23%

56%

DigitalOcean

Google IaaS

Oracle Cloud (IaaS)


IBM SoftLayer

VMware vCloud Air

Azure PaaS

Azure IaaS

AWS

Enterprise Public Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Public Cloud Adoption YoY – Enterprises


Not asked in 2015

Not asked in 2015

3%

5%

6%

6%

7%

7%

10%

13%

58%

9%

12%

15%

8%

9%

13%

17%

22%

17%

6%

8%

10%

7%

5%

10%

11%

10%

9%

Oracle Cloud (IaaS)

VMware vCloud Air

Google IaaS

IBM SoftLayer

DigitalOcean

Google App Engine

Azure PaaS

Azure IaaS

AWS

SMB Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – SMB


3%

5%

6%

7%

11%

15%

58%

9%

12%

8%

9%

19%

25%

17%

6%

8%

7%

5%

14%

14%

9%

Oracle Cloud (IaaS)

VMware vCloud Air

IBM SoftLayer

DigitalOcean

Google (IaaS+PaaS)

Azure (IaaS+PaaS)

AWS

SMB Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – SMBGoogle and Azure IaaS + PaaS Combined


3%

5%

4%

8%

6%

9%

61%

3%

5%

6%

6%

7%

7%

10%

13%

58%

Oracle Cloud

VMware vCloud Air

Google IaaS

IBM SoftLayer

DigitalOcean

Google App Engine

Azure PaaS

Azure IaaS

AWS

SMB Public Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Public Cloud Adoption YoY – SMB


Not asked in 2015

Not asked in 2015

Place Enterprise (1000+ employees) SMB (Under 1000 employees)

#1 AWS AWS

#2 Azure IaaS Azure IaaS é 1

#3 Azure PaaS Azure PaaS é 2

#4 VMware vCloud Air é 1 Google App Engine

#5 IBM SoftLayer é 3 DigitalOcean

#6 Google App Engine (PaaS) IBM SoftLayer é 1

#7 Oracle Cloud (IaaS) Google IaaS ê 1

#8 Google IaaS ê 1 VMware vCloud Air

#9 DigitalOcean Oracle Cloud (IaaS)

Top Public Clouds – Enterprise vs. SMB

Top Public Clouds Used!


Finding:""

Private Cloud Surges "Across All Vendors

9%

13%

13%

15%

19%

19%

44%

18%

10%

14%

12%

13%

19%

10%

9%

6%

7%

6%

8%

10%

5%

Microsoft Azure Pack

CloudStack

Microsoft System Center

Bare-Metal Cloud

VMware vCloud Suite

OpenStack

VMware vSphere/vCenter

Private Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Private Cloud Adoption – All Respondents


7%

8%

10%

13%

13%

33%

9%

13%

13%

15%

19%

19%

44%


CloudStack


Bare-Metal Cloud

VMware vCloud Suite

OpenStack


Private Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Private Cloud Adoption YoY – All Respondents


Not asked in 2015

13%

14%

18%

21%

22%

29%

60%

11%

20%

11%

22%

15%

14%

9%

5%

10%

7%

12%

7%

9%

4%

CloudStack


Bare-Metal Cloud

OpenStack


VMware vCloud Suite


Enterprise Private Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Private Cloud Adoption – Enterprises


14%

11%

18%

19%

26%

53%

13%

14%

18%

21%

22%

29%

60%

CloudStack


Bare-Metal Cloud

OpenStack


VMware vCloud Suite


Enterprise Private Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Private Cloud Adoption YoY – Enterprise


Not asked in 2015

6%

7%

12%

13%

13%

17%

32%

16%

13%

12%

10%

12%

17%

11%

9%

7%

6%

7%

6%

9%

5%



VMware vCloud Suite

CloudStack

Bare-Metal Cloud

OpenStack


SMB Private Cloud Usage % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Private Cloud Usage – SMB


4%

6%

6%

6%

10%

23%

6%

7%

12%

13%

13%

17%

32%



VMware vCloud Suite

CloudStack

Bare-Metal Cloud

OpenStack


SMB Private Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications

2016 2015

Private Cloud Adoption YoY – SMB


Not asked in 2015

Place Enterprise (1000+ employees) SMB (Under 1000 employees)

#1 VMware vSphere/vCenter VMware vSphere/vCenter #2 VMware vCloud Suite OpenStack #3 Microsoft System Center Bare-Metal Cloud #4 OpenStack CloudStack é 1

#5 Bare-Metal Cloud VMware vCloud Suite ê 1 #6 Microsoft Azure Pack Microsoft System Center ê 3 #7 CloudStack ê 2 Microsoft Azure Pack ê 1

Top Private Clouds – Enterprise vs. SMB

Top Private Clouds Used!


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