IT Cloud Services PRIMER. June 2015

IT Cloud Services MARKET

PRIMER

Table of Contents

• Market Definition • Market Overview • Market Forecasts • Adoption Trends • Competitive Landscape • Market Predictions • Future Outlook • Sources

Market Segmentation

IT Cloud

Services

Applications

Software as a Service

(SaaS)

Platforms

Platform as a Service

(PaaS)

Infrastructure

Infrastructure as a

Service (IaaS)

IT Cloud Services Market Detailed Segmentation

Cloud

Applications (Software-as-a-service)

Cloud

(Application) Platforms (Platform-as-a-Service)  Collaborative Applications  Content Applications  Enterprise Resource Management Applications

 Supply Chain Management Applications

 Operations and Manufacturing Applications  Engineering Applications  Customer Relationship Management Applications

Cloud

Infrastructure (Infrastructure-as-a-Service)

 Application Development Software

 Application Server Middleware

 Data Access, Analysis, & Delivery

 Information & Data Management

 Integration & Process Automation Middleware

 Other Application Development and Deployment

 Quality & Life-Cycle Tools

 Enterprise Portals

 System & Network Management Software

 Security, Storage, and System Software  Compute  Storage  Networks  Print Source : IDC 2015

Market Definition

• Public cloud computing as a style in which scalable and elastic IT capabilities are provided as a service to external customers using Internet technologies.

• Software as a service (SaaS) is an application service where the application software is owned, delivered and managed by one or more providers. A SaaS subscriber is exposed only to the application-level functionality, configuration and other application tooling, and does not monitor, manage or control the underlying infrastructure (including network, servers, operating systems, storage, databases or application platform services).

• Infrastructure as a Service (IaaS) is a "data center in the cloud" consisting of compute, network and storage resources offered to the customer via self-service in a highly automated way, on-demand and in near real time.

Market Definition (contd.)

• Platform as a service (PaaS) is the cloud service rendition of application infrastructure (middleware), the foundation technology for business applications.

• Cloud service providers are defined as providers that sell subscriptions to cloud

services and that deliver cloud-related IT services such as consulting, implementation, customization and/or integration.

Market Overview Public Cloud Services

• Cloud computing is gaining significant investment as the result of widespread adoption success stories.

• Early interest has been in private cloud implementations, although hybrid and public strategies are now becoming more common.

• The public cloud service market is an aggregate market comprising of many diverse submarkets with each individual submarket being separate and distinct, composed of providers and offerings, and a competitive dynamic, unique to each market .

• Cloud adoption continues to accelerate across vertical industries, geographic regions, and organizations of all sizes. The year 2014 observed steady yet aggressive uptake of cloud services, with complementing legacy systems and sometimes replacing them outright.

• IaaS offerings were increasingly including PaaS capabilities, creating a market of rich cloud service offerings to support cloud applications.

Market Overview Public Cloud Services (contd.)

• Organizational agility, cost benefits and increased innovation were the key drivers which were often offset by persistent concerns about security and privacy, which continued to inhibit adoption.

• Cloud services were reported to replace and complement existing IT systems with hybrid cloud scenarios to be the preferred cloud model in the future.

• Understanding the buyer behaviors, perceptions, preferences, and biases was critical for providers to find success in the high-growth cloud markets.

• IT spending on public cloud services is expected to grow at a CAGR of 16.9% from 2013 through 2018 to reach US $277 Billion , proving to be one of the fastest growing segments of the global IT marketplace, outpacing every other major sector of spending

.

Cloud Services At the Center of Growth

Developers

90%

of new commercial apps now developed specifically for cloud.

Enterprise & Service Provider IT infrastructure spending to build/enable cloud

services are growing at

20%

per year, reaching

$65 B

in 2017.

By 2020, more than

40%

centers up from 19% in 2014 (most of expansion from cloud).

Service Providers

80%

of

US

companies are at least considering Public or Private Cloud

High Penetration

Cloud using enterprises expect to increase their

Cloud spending by

34%

over the next 24 months

Most Plan to do a Lot More

Businesses will spend

$277 B

on Public Cloud IT services in 2018

Driving Most Budget Growth

Supply + Demand - Forces Driving Cloud in 2015

New markets, new customers, new delivery choices, and new requirements for IT orgs

1

Underpenetrated and New IT Growth

Markets Emerging (BRIC+Markets, SMB,

Online Media & Entertainment, etc.) Traditional IT

Markets Maturing/

Slowing

The Search for

New Market Growth

Cloud

- IT service requests change in type

and velocity

A Chasm Opens

in the LOB -> IT Service Delivery Model

6 Traditional IT Models Inadequate for Growth Markets (costs, speed, complexity) Internet-driven Models & Technologies Coming of Age

The Need for - and Emergence of -

New Approaches

2

Desire to

Own the Distribution Platforms, Flatten the Supply Chain (Apple, YouTube, Amazon, Microsoft) 4

Disintermediation of the

Supply Chain

Disrupters (e.g., Google, Amazon, Salesforce.com)

Forcing the Pace 3

Competitive Pressure Forces Change at a Measured

Place Broker/Enabler 14% of iPhones, 4% of US iPads Corporate-liable in 2012  29%, 21% in 2015 Consumerization of IT 5 Source: IDC , 2014

Insights - Three Approaches to Cloud Deployments

Control | SLA | Specialization | Security | Agility | Price Advantage | Access | Elastici ty

D.I.Y. Resource Isolation Single enterprise/ extended enterprise (dedicated) Public

 Designed for a market, not a single enterprise

 Open to a largely unrestricted universe of

potential users

 Customers buy at specific level of

abstraction (server, application, platform)

 Single-vendor or multi-vendor

Multiple unrelated enterprises (shared)

Source: IDC , 2014 Private

 Designed for, and access restricted to, a single

enterprise (or extended enterprise)

 An internal shared resource, not a commercial

offering

 of the shared/std

service to its users

Hybrid

 service portfolio includes

both private and public cloud services

 Some specific services are delivered in a

combination of public and private models (e.g., service)

Virtual and physical (non-cloud) resources and applications

66% 14% 21% SaaS PaaS IaaS 63% 21% 6%4% 4% 3% NAm WEur APeJ LatAm Japan CEMA $122 Billion in 2018 (22% CAGR) IaaS PaaS SaaS Cloud Service Providers Storage Dev Test Dbase Analytics CRM HRM Industry SaaS Compute ITSM Office Apps

Source: Worldwide and Regional Public IT Cloud Services 2014-2018 Forecast IDC Public Cloud Tracker

Public Cloud Spending, 2018

12

Public Cloud Services Market Forecasts - Global

PaaS, $3 , 8% SaaS, $27 , 63% IaaS, $12 , 29% $130 $152 $176 $206 $240 $277 $316 0 50 100 150 200 250 300 350 2013 2014 2015 2016 2017 2018 2019

Source : Gartner Cloud Forecast Q1 2015

WW Public Services 2013-2019 (US $B) WW Public Cloud Services by Segments ( 2014) (US $B)

Public Cloud Services Market Forecasts - Global

• Public cloud services market is expected to witness a growth of 15.7% in 2015,

supported by strong growth across all segments of the public cloud market to reach US $277 billion through 2018. • IaaS segment to remain as the highest

growth segment with a predicted 5 year CAGR of 31.8% to grow to US $37 billion through 2018.

• With a predicted CAGR of 20% from 2013 through 2018, the SaaS segment is expected to reach almost US $54 billion through 2018. Large and midsize enterprises are using SaaS to replace or augment existing applications, driving a shift in IT spending from traditional, non-cloud software licenses to SaaS.

Source: Gartner Survey (January 2015)

Public Cloud Services growth Vs. IT Markets

• Although IT spending on public cloud services is growing at rates exceeding most other IT markets, spending on public cloud services still constitutes a small fraction of total IT spending.

Annual Growth Rates (Percentage) of Public Cloud Services Compared to Other IT Markets

Public Cloud Services North America

• North American market

contributes to more than 63% of the total cloud revenue and totaled to US $88 billion in 2014.

• Overall cost reduction may have been the top driver for all US based customers to adopt Public cloud services.

• Manufacturing, retail, resource industry, utility, and

transportation companies are the quickest to move to the cloud and have built the most mature cloud strategies. • The public sector healthcare, government, and

education and construction companies are slower to move, with financial and professional services companies close to the overall average.

$75 $88 $105 $122 $143 $165 $188 0 20 40 60 80 100 120 140 160 180 200 2013 2014 2015 2016 2017 2018 2019

Source : Gartner Cloud Forecast Q1 2015

North American Public Cloud Services Revenue 2013-2019 (US $B)

Market Drivers

Note: Number of respondents is 122 in the cloud planning and adoption survey. Source: Gartner (January 2015)

Market Inhibitors

• Security and privacy were the top reason across all respondents (63% of respondents)

Note: Number of respondents is 210 for top reasons for all countries. Number of respondents varies for the three specific top reasons by country. Source: Gartner (January 2015)

Investments in Cloud Services

Note: Number of cloud planning and adoption survey respondents = 175; CIO survey respondents = 2,339.

Source: Gartner (January 2015)

• SaaS led cloud service for investments

• The highest number of respondents were spending on SaaS CRM in 2014, whereas less customers were currently spending on SaaS business

intelligence, and nearly twice as many expect to spend in the future.

Global Cloud 2015 Top 10 Decision Imperatives

Cloud Deployment Varies by Cloud Service

• Opportunity for hybrid and hosted private cloud preferred over other cloud services and is expected to double over the next three years.

• Hybrid cloud usage or adoption rates will grow the fastest over the next three years because of the evolving needs of users and also as security

concerns over public cloud ease.

Note: Number of "now" respondents = 577; "in three years" respondents = 861. Source: Gartner (January 2015)

Cloud Models Shift Toward Hosted Private Cloud and Hybrid

Cloud

Source: Gartner Cloud Survey (February 2015)

Organization Roles and Involvement in Cloud Budget Setting

Note: Number of respondents = 332. The sum of influence does not include "don't know" and "no involvement" responses. Source: Gartner (January 2015)

Cloud Deployment in North America

Cloud Deployment Models North America, and Over Time

• North America predominantly prefer private cloud now and expect to prefer it in the future as well.

Market Overview - SaaS

• Organizations of all sizes are using SaaS as a means to lower costs, increase innovation and improve organizational agility.

• Worldwide revenue for the SaaS enterprise applications market was $22.6 billion in 2013.

• The SaaS enterprise applications market is currently forecast to increase to a total of US $50.8 billion by 2018, representing a compound annual growth rate (CAGR) of 17.6% for the five-year forecast period.

• In 2013, SaaS revenue represented 16.6% of the overall enterprise applications market of $135.9 billion, while in 2018 it is forecast to reach 27.8%.

• The top 5 vendors in 2013 based on worldwide SaaS enterprise applications revenue were salesforce.com, ADP, Intuit, Oracle, and SAP, together representing 35% of the total market.

SaaS Market Forecasts - North America

Source : Gartner 1 2015 0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017 2018 2019

Supply Chain Management Enterprise Resource Planning

Web Conferencing, Teaming Platforms, and Social Software Suites

Business Intelligence Applications Customer Relationship Management Project and Portfolio Management Digital Content Creation

Office Suites

SaaS Market Forecast , North America by Segments ( 2013-2019) ( %)

$14 $17 $21 $25 $29 $34 $38 0 10 20 30 40 50 2013 2014 2015 2016 2017 2018 2019

Hype Cycle for Software as a Service, 2014

Most Used Software Applications on Public Cloud

Worldwide SaaS Applications: Penetration by Secondary

Market & Cloud Adoption, 2014

W o rl d w id e C lo u d A p p lic a ti o n s M a rk e t Collaborative Applications 16% _Instant Communications Enterprise Social

Software Conferencing Team Collaborative Email 44% Content Applications 3% _Content Management Authoring & Publishing Search and

Discovery Enterprise Portals 3%

CRM Applications

29%

Sales Marketing Customer

Service Contact Center 39% Engineering Applications 1% CAD/CAE/CAM Applications Collaborative Product Data Management 2% ERM Applications 38% _Financial Accounting Human Capital

Management Payroll Procurement

Financial Performance 26% Project & Portfolio Management Enterprise Asset Management Order Management O&M Applications 11% Services Operations Management Manufacturing 8% SCM Applications 1% Logistics Production Planning Inventory Management 5%

Source: IDC Public Cloud Tracker, December 5, 2014, Semiannual Software Tracker, 2014

Market Share by Vendor SaaS

Salesforce.com, $3,220 , 21% ADP, $1,449 , 9% Intuit, $1,305 , 9% Oracle, $1,076 , 7% SAP, $910 , 6% Adobe, $620 , 4% Concur Technologies, $580 , 4% athenahealth, $562 , 4% IBM, $475 , 3% Workday Inc., $337 , 2% Ultimate Software, $334 , 2% NetSuite, $334 , 2% Others, $4,109 , 27%

Worldwide SaaS Enterprise Applications Revenue by Vendor, 2013 ($M)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018 2019

Application Infrastructure and Middleware Business Intelligence Platform

Database Management Systems Application Development E-Commerce Enablement Cloud Payments Supply Management Industry Operations Human Resources Finance & Accounting

$1.1 $1.5 $1.9 $2.3 $2.6 $3.0 $3.5 0.0 1.0 2.0 3.0 4.0 2013 2014 2015 2016 2017 2018 2019 Source : Gartner 1 2015

PaaS Market Forecast by Segments , 2013-2019 (%) PaaS Market Forecast, 2013-2019 (US $B)

Market Forecasts MSS

The Key Trends in PaaS - 2015

• "Cloud first" has become the prevailing vendor innovation strategy. Some leading-edge capabilities are available only in the cloud.

• PaaS offerings begin to challenge traditional application infrastructure offerings (and vendors)for mainstream enterprise projects.

• PaaS frameworks (like Cloud Foundry, OpenShift by Red Hat, Apprenda, Apache Stratos and Deis by Engine Yard) form the foundation for comprehensive PaaS suite offerings and help to bridge the private and public PaaS divide.

• New forms of xPaaS continue to emerge, driven by evolving use cases (e.g., business analytics, stream processing, mobile back end and the Internet of things (IoT)).

• IoT pushes stream processing, event processing, real-time analytics, IMC, and real-time, context-aware business decisions to the center of new applications and business

solutions.

• This puts pressure on platform providers, including PaaS, to adjust and expand into digital business.

Market Trends - PaaS

• Vendor innovation and user demand are driving the availability of leading-edge

capabilities in public platform as a service (PaaS) that are not available in software on-premises.

• Private PaaS technology gains momentum with the emerging PaaS framework technologies, such as Cloud Foundry, Red Hat OpenShift and Apprenda, but the required cultural and organizational changes slow down effective adoption.

• The PaaS market continues to expand as more innovators and application

infrastructure incumbents enter the market; the peak of market consolidation remains in the future for most categories of PaaS (xPaaS).

• Midsize businesses actively engage in digital business innovation, which accelerates their adoption of cloud services, including PaaS.

Magic Quadrant for Enterprise Integration Platform as a

Service, Worldwide

IaaS Market Forecasts North America

• IaaS competition will intensify and quickly narrow, as adoption of cloud IaaS will grow briskly (36%) in 2015 to reach US $10.3 Billion, reporting a continuous growth to reach US$ 27.8 billion in 2019 in North America.

$5.1 $7.3 $10.3 $14.1 $18.3 $22.8 $27.8 0 10 20 30 2013 2014 2015 2016 2017 2018 2019 0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017 2018 2019 Compute Storage Print

IaaS Market Forecast by segments , 2013-2014 (%)

Source : Gartner 1 2015

From Managed Hosting to Private/Hybrid Cloud

 Traditional managed hosting gives way to hosted private cloud  Public cloud used as a

standalone resource and increasingly, as part of hybrid cloud solutions

 Hybrid cloud penetration: 45% among cloud IaaS users

 Managed Hosting to Hosted Private Cloud transition involves:

• Self-service tools

• Dynamic resource allocation capability

• API functionality

• Standardized, packaged service offerings Source, IDC 2014 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2012 2013 2014 2015 2016 2017 2018 Traditional Managed Hosting Hosted Private Cloud Public Cloud

Market Trends: Cloud IaaS Providers Expand

Into PaaS

• The market is expanding beyond raw infrastructure resources • IaaS providers will offer cloud software infrastructure services • IaaS providers may enter the application PaaS market

The IaaS Provider Landscape

Vectors of differentiation

 Multi-tenant vs. bare-metal

 IaaS vs. IaaS/PaaS

 Defined instances vs. pool of

resources

 Private network (performance,

security) vs. public Internet access (ubiquity)

 Commits vs. pay-as-you-go

 Hyper-scale/scale-out vs.

enterprise cloud/scale-up

 DIY vs. support/managed services

 Cloud-only vs. full-service

 Standalone private cloud vs.

orchestration with private cloud/managed hosting/colocation  Single-cloud vs. instrumented multi-cloud access -Cloud aggregator/multi-cloud

-Magic Quadrant for Cloud Infrastructure as a Service,

Worldwide

Impacts and Top Recommendations for Cloud Service

Providers

Key Challenges Facing Cloud Service Providers

• Multiple patterns and models of cloud adoption across regions and countries exist, requiring service providers to develop regional strategies.

• Go-to-market messages for cloud services must cater to role-specific and geography-specific needs and perceptions.

• Service providers can capitalize on spending intentions but must know that decision makers and budget holders can be different.

• Public cloud SaaS is a multiyear shifting opportunity.

• Winning service bids will depend on meeting the selection criteria and having the right services at the right time.

2014 key findings for U.S. cloud adopters who use cloud

professional services

2 challenges (security & privacy)

Adoption rates increased across all three cloud categories:

More in production & pilots; planned investment up from 2013

2018 spending intentions biased dramatically towards

increases for all Project-based services

Adoption of non-commoditized cloud application workloads

growing faster in U.S. than commoditized (i.e. Collaboration)

compared with 2013

Evolution of the Cloud Service Provider Business

Model and Community

Number of

Providers From Many To few

Structure of

Provider

Both vertically-integrated (e.g. software and service) and specialized (e.g. just

service delivery)

Specialized (pure-play) service

providers

Brand Orientation Platform-centric Service Centric

Portfolio Discrete

Offerings

“Walmart-like” set of offerings

Competitive Landscape by Segments

46

 Application Development Software

 Application Server Middleware

 Data Access, Analysis, and Delivery

 Information & Data Management

 Integration & Process Automation Middleware

 Other Application Dev and Deployment

 Quality & Life-Cycle Tools

 Enterprise Portals

 System & Network Management Software

 Security, Storage, & System Software

 Servers  Storage  Networks  Clients  Collaborative Applications  Content Applications

 Enterprise Resource Management Applications

 Supply Chain Management Applications

 Operations & Manufacturing Applications

 Engineering Applications

 Customer Relationship Management Applications

Cloud

Infrastructure (Infrastructure-as-a-Service)

Cloud

(Application) Platforms (Platform-as-a-Service)

Cloud

Applications (Software-as-a-service)

Cloud Software Market Leaders (2013)

Sale sf or ce. com M icro so ft A DP In tui t Or acle SA P IB M A do be C isco A mazon _Citr ix C onc ur ath enaHel ath Syman tec G oo g le O pe nT ex t HP R ea lP ag e S erv iceN ow W o rkda y 4.0 3.5 3.0 2.5 2.0 1.5 1.0 .5 SaaS/PaaS Revenue (US $B) 3.9 1.6 1.4 1.3 1.1 .91 .83 .78 .72 .71 .58 .58 .56 .54 .42 .40 .37 .37 .35 .34

Source: IDC CloudShare, 2014

Top 75 76-200 201-500 501-1,000 1,000-2,900 vendors Above $100 million in 2013 Cloud Software Above $350million in 2013 Cloud Software $50 - $100 million in 2013 Cloud Software $150-$349 million in 2013 Cloud Software $25-$50 million in 2013 Cloud Software $75-$149 million in 2013 Cloud Software $5 - $25 million in 2013 Cloud Software $20-$74 million in 2013 Cloud Software $50k - $5 million in 2013 Cloud Software 2013 2020 $50k - $20 million in 2013 Cloud Software

Cloud Professional Services Vendor

Source: IDC, IDC Market Scape: Worldwide Cloud Professional Services 2014 Vendor Analysis

IT Services for Cloud Computing

• Consulting currently is the most frequently used service by these respondents, but as these

customers move past the tipping point, their demand for cloud-related consulting services will wane.

• Training is an example of a service that is currently underutilized and that customers expect to use more of in the future.

Cloud-Related IT Services Utilization, Currently and Expected in 2017

Essential Guidance - IT Suppliers Building a Winning Cloud

Strategy

• Actively morph traditional hosting services morph into hybrid IT.

– Service providers must make strategic investments in transformation (automation,

orchestration, APIs, enhanced self-service, and ecosystems) to capitalize on the hybrid IT opportunity.

• Aggressively develop partner ecosystems.

– Key areas include enterprise software, industry-focused analytics and insight, developer tools, and consulting/advisory services

•

– Hyperscale IaaS providers and private/colocation/network services providers must team to enable

multi-• Specialization

– Service providers unable or unwilling to make the long-term, multi-billion investments in hyper scale clouds should focus on specialized value propositions around managed services, cloud/network integration, industry ecosystems, multi-cloud orchestration and management while partnering for massive-scale, rich-featured public cloud

• Through 2017, fewer than 25% of large IT organizations will deploy a valid private PaaS.

• By 2018, PaaS will be the dominant platform of choice for digital business projects in midsize business organizations.

• By 2018, the iPaaS market will further fragment, with no vendor exceeding 15% of the global integration PaaS (iPaaS) customer base.

• By 2017, functional completeness of cloud-based business analytics PaaS (baPaaS) will exceed that of on-premises business analytics solutions.

• By 2018, three out of five leading application PaaS (aPaaS) vendors will support high-control and high-productivity programming models.

Cloud Predictions by Gartner (contd.)

• By 2018, the distinction between public and private cloud IaaS from service providers will be largely erased.

• By 2017, more than half of traditional service providers will manage customer workloads on top of leading IaaS provider platforms, rather than compete with these hyperscale providers.

• Through 2017, the value delivered by Docker will be centered on a new ecosystem for container-oriented management, rather than vendor-hyped portability benefits.

• Through 2017, the majority of the top 20 pure-play SaaS vendors will continue to be unprofitable.

Market Predictions by IDC

• Hybrid Cloud More than 65% of Enterprise IT Organizations Will Commit to Hybrid Cloud Technologies Before 2016, Vastly Driving the Rate and Pace of Change in IT Organizations

• Cloud Open Source Impacts IT Decision Making By 2017, 20% of Enterprises Will See Enough Value in Community-Driven Open Source Standards to Adopt Them Strategically

• Consumerization of Development By 2017, 25% of IT Organizations Will Formally Support a "Consumer Tier" to Allow Workers to Develop Their Own Personal Automation

• Industry Clouds By 2017, IT Buyers Will Actively Channel 20% of Their IT Budgets Through Industry Clouds to Enable Flexible Collaboration, Information Sharing, and Commerce

Market Predictions by IDC (contd.)

• Workload-Aware Management By 2016, More than 50% of Enterprise IT Organizations Building Hybrid Clouds Will Purchase New or Updated Workload-Aware Cloud Management Solutions

• Rise of Micro and Functional IaaS 60% of SaaS Applications Will Leverage New Function-Driven, Micropriced IaaS Capabilities by 2018, Adding Innovation to a "Commodity" Service

• Trust and Data Sovereignty By 2015, 65% of Selection Criteria for Enterprise Cloud Workloads in Global IT Markets Will Be Shaped by Compliance with Data Privacy Legislation

• Managing Risk in Sourcing IT Services 75% of IaaS Provider Offerings Will Be Redesigned, Rebranded, or Phased Out in the Next 12-24 Months

Market Predictions by IDC (contd.)

• Skills and Staffing By 2016, There Will Be an 11% Shift of IT Budget Away from Traditional In-House IT Delivery Toward Various Versions of Cloud as a New Delivery Model

• DevOps Process Maturity By 2017, 35% of New Apps Will Use Cloud-Enabled Continuous Delivery and DevOps Life Cycles for Faster Rollout of New Features and Business Innovation

Future Outlook

• As cloud-based services become more available and diverse, businesses and consumers using them require extendible data integration strategies and capabilities, to interact and integrate with cloud-based data.

• IaaS competition will intensify and quickly narrow and the "PaaS war" expected to expand; IaaS and PaaS cloud computing markets to be a highly competitive environment where prices are pushed down among the major contributors including Microsoft, Google, and IBM

• This market is also undergoing significant changes as new vendors enter the market and as cloud service offerings expand to be more comprehensive in their capabilities.. • Consolidation within market segments, and increasing overlap in features and

capabilities across the defined cloud market segments are inevitable in this growth phase.

• Gartner

– Hype Cycle for Cloud Computing, 2014

– Predicts 2015: Cloud Computing Goes Beyond IT Into Digital Business – Market Definitions and Methodology: Public Cloud Services

– Cloud Adoption Trends Highlight Buyer Preferences and Provider Opportunities – Forecast Overview: Public Cloud Services , Worldwide, 2014 Update

– Cloud Service Providers Must Understand Deployment, Adoption and Buyer Complexity to Leverage Cloud Revenue Opportunities

– Forecast Overview: Public Cloud Services , Worldwide, 2014 Update – Predicts 2015: Private, Public and Hybrid: PaaS Advances

– The Key Trends in PaaS, 2015

– Magic Quadrant for Cloud Infrastructure as a Service, Worldwide

– Magic Quadrant for Enterprise Integration Platform as a Service, Worldwide – Hype Cycle for Platform as a Service (PaaS), 2014

• IDC

– Future of Cloud (Rick Villars, VP, Datacenter & Cloud)

– 2014 IDC Services Group Survey: U.S. Professional Services Opportunities Related to Cloud Services – Market Analysis Perspective: Worldwide SaaS and Cloud Software, 2014-2019

– Worldwide SaaS Enterprise Applications 2014 2018 Forecast and 2013 Vendor Shares

Sources