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Copyright © 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
The Continuing Enterprise Cloud Computing
Evolution
•
Key Findings
•
Goals and key questions
•
What is the cloud market from a vendor or provider
perspective?
•
What is the study’s 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 methods
Cloud computing adoption
among medium to large
enterprises is now widespread
Cloud segments have
demographic trends
Cloud model preferences and
vendors vary by segment
Project priorities vary by
segment
Enterprises will rapidly deploy
more cloud solution in coming
year
Pros use every type of cloud, with most common being public cloud
(91%) & least common is hybrid (45%); Pioneers use internal private
cloud (56%) & PaaS (46%); 83% of Pros use AWS data center, contrasted
with 28% of Pioneers, who mostly use traditional IBM & Verizon.
Nearly 90% of responding enterprises use of plan to use some type of
cloud computing solution; the market is comprise d of 19% Cloud Pros
who have multiple clouds, 59% Pioneers who use or test a cloud, 12%
Planners who intend to deploy and 10% Stragglers who have no plans.
Cloud Pros and Pioneers tend to be very large enterprises in
banking/finance, manufacturing, higher education, or business
services; while Planners and Stragglers are smaller and in government,
healthcare and heavy industries.
Cloud Pros implement network-related projects to prepare for Cloud
and Pioneers improve storage and security. About or greater than 70%
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
in 2011. Pros expect to increase cloud as a percentage of IT from
about 28% to 38% in the next 3 years, while Pioneers hope to more
than doubles its percent of IT in the cloud from nearly 15% to 33%.
Five key study findings on enterprise cloud computing
migration among 97 medium to large enterprise IT buyers
Goal and key questions
How has the
market changed
in the last 18
months?
Help IT and telecom marketers
better understand medium and
large enterprise cloud
prospects and customers
How does
enterprise IT vary
by segment?
What are market
segments and
who are they?
How do future
cloud plans vary by
segment?
How do cloud
solutions vary by
segment?
What’s the current
market for cloud
solutions?
How’s the cloud market from a vendor or
provider perspective? In a challenging
macroeconomic environment, cloud has a
profound impact….
Enabling technologies prosper
“Virtualize
everything”
continues
Nicira’s network virtualization has high-profile user in eBay, and a buyer in VMware
VMware’s Monster VMs grow from 32 to 64 virtual CPUs
Zerto’s cloud-based disaster recovery services for enterprises and service providers include virtual
replication
Object storage
takes root
Cloudian launched free, object-based storage platform, storing up to 100TB
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” storage
WAN
optimization and
content delivery
importance
renews
Aryaka, a cloud-based WAN optimization and app acceleration service provider partners with AWS
Akamai buys FastSoft to improve website and web application performance across the first and
last miles, as well as through the cloud, without requiring client software or browser plug-ins
Telco & CDN providers renew grow
Large integrators & outsourcers see gains
Pure-play cloud vendors grow unabated
Cloud platforms find market acceptance
“Enterprise customer segment is finally seeing revenue increases
even without any lift from the economy– its first…in more than
four years. The growth was small, but still a positive trend.”
AT&T,
July 24, 2012
“Legacy Savvis…year-over-year increases of 11.5% in managed
hosting and cloud services revenues and a modest increase in
network services revenues.”
CenturyLink, Aug. 10, 2012
“Cloud infrastructure solutions growth, accelerated to 22%
year-over-year, made up 58% of our total revenue. And in terms of
brand-new customers to Akamai, over 75% purchased a cloud
infrastructure solution.”
Akamai, July 25, 2012
Many tech segments benefit
“Revenue was up 34% over last year, for the 6th consecutive
quarter of year-over-year revenue growth in the mid-30% range.
There's no other enterprise software company of our scale
growing at this rate.”
Salesforce.com, July 24, 2012
“Overall, the Data Center & Cloud business had a strong first half of
2012, up 25% through midyear. Within our SaaS business, revenue
was up 18% from last year. Our collaboration and data sharing
products, which account for over half of the total SaaS revenue,
increased 33%.”
Citrix, July 25, 2012
“Dedicated cloud revenue increased…representing 4.1% sequential
growth & 21% growth on a year-over-year basis. Public revenue
cloud…12.1% sequential growth & 69% growth on a year-over-year
basis..”
Rackspace, August 7, 2012
“We doubled last year’s revenue, with contribution from all areas,
private cloud, public cloud and our industry-based solutions.”
IBM,
July 18, 2012
“Demand continues to grow for cloud solutions, for application
re-platforming and also for new software-as-a-service solutions from
both the established technology players, as well as from newer
SaaS providers.”
Accenture, June 28, 2012
With more than 100 large enterprise customers, Cloudstack was
contributed to the Apache software foundation which runs
some of most successful open-source cloud projects.
eBay announced they use OpenStack to manage a high-volume
dev, test and experimentation environment where apps are
created for eBay marketplaces.
Neustar ported its UltraDNS to AWS.
Hardware landscape changing, but data
center 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 15
th
, 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. ”
HP, August 15
th
, 2012
What about enterprises? How do they
benefit?
Cloud brings increased agility, cost savings,
new functionality and competitive advantage
Cloud computing
growth
Turning to the study, what’s the big picture
of enterprise cloud? Understanding cloud
services first requires looking through a
wider lens of where the journey to the
cloud begins-- virtualization and
Among all respondents, disaster recovery
is outsourced the most
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Q. Yes or no, do you outsource any of the following functions… ? (n=97)
Storage
Data backups
Perimeter
Security
Network
Management
Disaster
Recovery
Biggest growth for
outsourcing is
storage-related
where levels are
twice last year’s
levels. Security is
also up about 80%
and network
management
stayed neutral.
Nearly half of all servers are virtualized, along
with about a third of storage and workloads
Respondents most use IBM and Verizon
data centers
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In addition to any
internal data center,
most respondents
avoid single vendor
dependencies by using
an average of 2.1 data
center companies
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The minimum was 1 and
the maximum was 9
vendors
Cloud use hits nearly 80% of respondents, and like
last year, most common deployment models are
still PaaS and private clouds
Q: For each of the following types of cloud deployment, we’d like to know if it’s currently in production, in trial, planned in 24 months? N=97
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Up from 58% of medium to
large organizations in just 18
months, most now test or
use some type of cloud
solution. Penetration of
PaaS and hosted private
clouds are about the same as
last year, while public clouds
more than doubled. Internal
private clouds and IaaS grew
about 60%.
With nearly half of all respondents using an HR
cloud app, it surpasses CRM as the top
enterprise app in the cloud
Q. Again for apps, is a cloud computing architecture in production, in trial, planned, or not planned? N=78
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Human Resources
Customer Relationship
Management
Desktop Apps
Accounting/Finance
Business Intelligence
Supply Chain/Enterprise
Resource Management
48.2%
34.6%
25.6%
18%
17.9%
9.4%
No surprise that accounting is most often a
private cloud and CRM is most likely public
Q. Again for apps, is a cloud computing architecture in production, in trial, planned, or not planned? N=42
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Customer Relationship
Management
Human Resources
64%
24%
47%
44%
Desktop Apps
62%
31%
Private
Public
Accounting/Finance
68%
11%
Supply Chain/Enterprise
Resource Management
64%
25%
Business Intelligence
67%
27%
Hybrid
21%
12%
9%
10%
7%
12%
Email and backup/data recovery remain top
infrastructure-related app in the cloud
Q. Again for apps, is a cloud computing architecture in production, in trial, planned, or not planned? N=78
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*Not Included in 2011
Remote desktop
management
Backup storage/
disaster recovery
Tier 1 storage
Collaboration
Communications
Portals
39%
38.1%
30%
26.2%
Most infrastructure-related apps use private
clouds, but remote desktop & collaboration
have more even split
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Q. Again for apps, is a cloud computing architecture in production, in trial, planned, or not planned? N=42
Backup storage/
disaster recovery
Collaboration
Portals
Communications
70%
14%
74%
26%
Private
Public
71%
21%
Tier 1 storage
77%
11%
67%
28%
Remote desktop
management
73%
17%
58%
31%
Hybrid
11%
10%
9%
16%
5%
11%
16%
What are the enterprise cloud market
segments?
The medium to large enterprise market
evolved into four broad segments
S: For each type of cloud deployment, we’d like to know if it’s currently in production, in trial, is planned in 24 months? N=96
Cloud Pioneers:
Using cloud computing
Cloud Planners:
Planning for cloud
Cloud Stragglers:
No plans
In 2012, multi-cloud users
emerged as a segment
called the Cloud Pros.
Accounting for about 19%
of the sample, Cloud Pros
truly lead the way by
using four or more cloud
solutions.
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Cloud Pros:
Using multiple clouds
Pros and Pioneers tend to be larger
organizations, while Planners and Stragglers
are smaller
Emerging segment Cloud
Pros, like Pioneers, are
mostly very large
organizations. Planners
tend to be medium-sized
and Stragglers are all
medium; all suggesting
that cloud is no longer
new technology.
Cloud Stragglers
Cloud Pros
Cloud Pioneers
Cloud Planners
Cloud Pros
Cloud Pioneers
Financial services/banking, business services
and manufacturing
Each segment contains the range of verticals, but
some industries more prevalent than others
Cloud Planners
Cloud Stragglers
Business services, manufacturing and higher
education
Financial services/banking, media, healthcare
and government
Utilities, construction, mining and education
Copyright © 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.Pros virtualize more than Pioneers and
Pioneers virtualize more than Planners
Enterprises that use
virtualization
continue to increase.
Last year, 73% of
Pioneers used server
virtualization,
compared to this
year’s 95%.
Each segment outsources different
functions
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Q. Yes or no, do you outsource any of the following functions… ? (n=96)
Storage
Data Backups
Perimeter
Security
Network
Management
Disaster
Recovery
Across all IT
functions,
Stragglers
outsource more,
while Pioneers
outsource storage
and security
significantly more
than last year.
Stragglers manage their own data centers,
while other segments outsource more
Q: Which best describes your data center operations… ? (n=96)
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Cloud Stragglers
Cloud Pros
Cloud Pioneers
Cloud Planners
Data center trends
mirror overall
outsourcing trends.
Last year, 68% of
Pioneers internally
hosted and
managed their own
data centers,
compared to 47%
now.
Turning to cloud, nearly all Cloud Pros use a public
cloud while half of Cloud Pioneers use an internal
private cloud
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Q: For each of the following types of cloud deployment, we’d like to know if it’s currently in production, in trial, is planned in 24 months? N=78
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Copyright © 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.Changes from last
year are 1) Use of
public clouds has
doubled, and 2) use
of internal private
clouds surpassed
hosted private
clouds.
Pros and Pioneers use multiple data centers
with AWS serving nearly all, while Pioneers use
IBM, Verizon, and Rackspace
Q: Which of the following data centers does your organization use? (n=90)
The open
standards
divide?
AWS lags among
Cloud Pioneers
suggesting
increased
competition from
other proprietary
solutions as well as
open standards.
Pros expand existing data centers, while most
Pioneers finished their data center consolidation &
expansion
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Q: For each of the following we’d like to know if it’s currently in production, in trial, being planned in the next 24 months, no plans? N=76
Pros
Pioneers
Planners
Planned within 24 months
Completed /In Process
Most already finished or don’t expect to add 10G
switching for increased capacity or new
management tools
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Q: For each of the following we’d like to know if it’s currently in production, in trial, being planned in the next 24 months, no plans? N=76
Pros
Pioneers
Planners
Experience is a powerful teacher: network is top
project priority for Pros while security, storage &
virtualization for Pioneers
Q: For each of the following were they necessary before cloud computing, during initial deployment, follow-on, future plans, or no plans? N=78
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Last year, security
projects got top
priority in pre-cloud
prep work while
network-related
projects were in the
bottom half of the
list. This year’s
results show cloud’s
strains on the
network.
Expect even more outsourcing in coming
years
Q: On a 1 to 10 scale, how much do you agree with the following statements… ? N=96
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Cloud Stragglers
Cloud Pros
Cloud Pioneers
Cloud Planners
Percentage that strongly agree that they will
increase outsourcing in the next 24 months:
Copyright © 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
Expectations for IT
outsourcing increases
are even stronger this
year than last year;
nearly 46% of
Pioneers this year
compared to 32% of
them last year expect
to outsource more.
Pioneers aim for hybrids, private clouds and
increased use of IaaS - while Pros look to add more
PaaS-based apps and hybrid clouds
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The 24-Month Plan
Q: For each of the following types of cloud deployment, we’d like to know if it’s currently in production, in trial, is
planned in 24 months? N=96
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Results for Pioneers
rank similarly to last
year’s results. Given
the increased
experience,
knowledge and
sophistication of
newly-emerged Pros,
rankings are about
what we’d expect to
see.
Close to last year’s levels, by 2015 Pros expect
38% and Pioneers expect 33% of IT to be in cloud
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Q. What percentage of your IT is currently cloud-based? (n=74)
Q: What percentage of your IT will be outsourced to a cloud provider by 2012? 2015? N=96
Copyright © 2012 WaveLength Market Analytics LLC & Winn Technology Group, Inc. All Rights Reserved.
