State of the Cloud
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A cloud computing overview
Presented to CALIS on behalf of Innovative Interfaces Inc
November 9, 2012
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Today
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s Agenda
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Who is 451 Research?
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What is the cloud? (our definition)
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Growth trends & forecast
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Adoption of cloud services
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Case studies
About The 451 Group: Enterprise IT Research
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Unique combination of research,
analysis & data
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Published syndicated research on
emerging enterprise IT markets
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600-node IT taxonomy!
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Daily qualitative & quantitative insight
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Analyst advisory, support
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Global events
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Go-to-market support
600-Item Technology Taxonomy
Financial Markets: M&A KnowledgeBase
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Transactions database
Technology mergers and acquisitions database
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30,000 deals from 2002, updated daily
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600-item taxonomy
Cloud: what it is and what it isn
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t
Cloud is not managed services: Key difference is that managed services traditionally offer fixed quantity of resources under a multi-year
contract.
Cloud is not outsourcing: In an
outsourcing arrangement assets are typically transferred in their entirety as a fixed quantity.
Cloud is not virtualization:
Virtualization is a cloud-enabling technology.
CloudScape Codex: 8 Cloud Attributes
Publically Accessible
Programmatic Interfaces
Multi-tenancy
Accounting Granularity
Scalability and Elasticity
Virtualization and
Automation Web
Management Capabilities
Rapid Provisioning
Delivery Models
SaaS:
PaaS:
IaaS:
Business processes and apps as a remotely hosted and managed service, accessible through a browser.
In-cloud platform for development and deployment of cloud apps, analogous to on-premises app server, plus multi-tenant elasticity and other cloud-features.
Virtual or physical hardware resources (e.g. compute, storage, network) offered as a service.
Deployment Models
Virtual Private
Hybrid
Public
Internal Private
Hybrid services have both private and public cloud computing elements.
Shared IT service provided to customers via the public Internet.
Implemented and delivered via a third party and is accessible via the public Internet.
IT capability offered as a service by an IT organization to its business using cloud-enabling technologies.
Cloud computing is IT as a Service
What End Users See
Utility Computing
What IT/Service Providers See
Policy, Governance Metering/Chargeback/Billing
Runbook/Process Automation On-boarding, Lifecycle Management
Workload Management Configuration Management
Application Streaming Automation OS Provisioning
Virtualization GRID/HPC/clusters
Financial Markets Group: Market Monitor - Cloud market sizing
Cloud Computing:
Cloud As a Service
§ 200+ Tracked Vendor Participants
§ 15 Market Segments
Cloud Enabling
Technologies:
Virtualization and
On-Premise
§ 120+ Tracked Vendor Participants
§ 6 Market Segments & 9 Sub-Segments
§ Revenue segmented by Geography, Vertical & Customer Size
Desktop
Virtualization
Ecosystem
§ 50+ Tracked Vendor Participants
Cloud Market Overview
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Revenue ($bn)
Cloud Computing
‘
As A Service
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Estimated 2012 Revenue Breakdown, Including Enterprise Apps SaaS
Cloud Computing
‘
As A Service
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Est. 2012 Revenue Breakdown by Subsector
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Total $4.9bn (270+ vendors)
Segment Vendor Count
Cloud Computing 'As A Service' 272
IaaS 132
Compute & Storage-as-a-Service 126 Stand-Alone Cloud Storage 9
PaaS 73
PaaS from SaaS 12
Stand-Alone PaaS 33
Application Lifecycle Management as a
Service 31
Pre-Production / Testing 18
Integration as a Service 13
Infrastructure SaaS 94
Online Backup 20
Cloud Archiving 10
IT Management as a Service 68
Systems & Network Monitoring &
Management 46
Resource Utilization, Capacity Planning &
Billing 18
IT Service Management 10
Cloud Computing
‘
As A Service
’
Geographic Revenue Breakdown, (270+ vendors)
(*) Preliminary forecast
67% 63% 60% 57% 54% 20% 23% 24% 26% 28% 11% 12% 14% 15% 15% 2% 2% 3% 3% 4%
0% 20% 40% 60% 80% 100%
2011 2012 2013 2014 2015 NA EMEA APAC LATAM (*)
IaaS -
where the money is spent (130+ vendors, 2012)
North America
59%
EMEA
24%
APAC
15%
LATAM
2%
IaaS - where the money is counted (130+ vendors, 2012)
North America 88%
54 Vendors 31 VendorsEMEA 6%
LATAM 1% 9 Vendors
APAC 6% 38 Vendors
IaaS vendors in China and Hong Kong
Sector Vendor Headquarters
IaaS, PaaS Alibaba Hangzhou, China
IaaS China Telecom Beijing, China
IaaS ChinaCache Beijimg, China
IaaS CITIC Telecom CPC Hong Kong
IaaS CloudTerrrain Hong Kong
IaaS ClusterTech Hong Kong
IaaS GDS Services Beijing, China
IaaS UnGeo Beijing, China
Enabling Technologies = 2.5x value of as-a-Service market
Source: 451 Research Market Monitor (Data Cut 16 Oct, 2012)
2010 2011 2012 2013 2014 2015 CET - 27% CAGR $5.1 $7.8 $10.6 $13.5 $16.6 $19.9 Cloud "As A Service"
PUBLIC CLOUD ADOPTION: IS ANYBODY OUT THERE?
12% 12%
52%
14% 14%
11%
72% 71%
37%
0% 20% 40% 60% 80% 100% 120% Storage as a Service
Compute as a Service Software as a Service
In-Use In-Plan Not In Plan
Q: What is your status of implementation for this technology?
Drivers of Adoption
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Infrastructure as a Service
35% 37% 50% 50% 51% 53% 56% 59% 43% 37% 26% 27% 29% 28% 31% 25% 15% 19% 18% 15% 12% 13% 5% 8% 7% 7% 6% 8% 8% 6% 8% 8%Enable business units to deliver innovative services to market
Self-service provisioning through a simple web portal instead of IT
Reduce complexity Getting new products/services to market faster Reduce expenses for power, floor, space, operations, facilities, amortization, and/or
networking
Reduce maintenance costs More efficiently meet our business units' service
demands
More efficiently deal with variability (elasticity)
Extremely to Very Important Somewhat to Minimally Important Not at All Important Don't Know/No Response
Where applicable, how important are the following factors in driving your adoption of different types of cloud
computing? Please use a 1-5 scale where ‘1’ is not at all important and ‘5’ is extremely important.
n=100. Cloud Computing
2H ‘12 Cloud Computing
Drivers of Adoption
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Software as a Service
36% 39% 43% 44% 48% 48% 48% 60% 35% 38% 34% 42% 36% 30% 31% 29% 22% 17% 16% 8% 9% 16% 15% 5% 7% 6% 7% 6% 7% 6% 6% 6%Self-service provisioning through a simple web portal instead of IT Enable business units to deliver innovative
services to market
Reduce expenses for power, floor, space, operations, facilities, amortization, and/or
networking
Reduce maintenance costs More efficiently deal with variability
(elasticity)
Reduce complexity Getting new products/services to market
faster
More efficiently meet our business units' service demands
Extremely to Very Important Somewhat to Minimally Important Not at All Important Don't Know/No Response
Where applicable, how important are the following factors in driving your adoption of different types of cloud
computing? Please use a 1-5 scale where ‘1’ is not at all important and ‘5’ is extremely important.
n=100. Cloud Computing
2H ‘12 Cloud Computing
Corporate cloud computing: current cloud usage
Corporate Market: Current Public Cloud Computing Use
Percentage of Respondents Whose Companies Currently Use Applications that Run on Cloud Computing Services
11% 14% 17% 17% 19% 22% 22% 29% 32% 0% 5% 10% 15% 20% 25% 30% 35% Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Education Sector - 30% adoption
#1: SaaS #2: PaaS
Pain Points Moving to the Cloud
Internal Private Cloud Pain Points*16% 2% 2% 2% 2% 2% 3% 3% 3% 5% 5% 5% 5% 5% 6% 6% 18% 19% 42% Other None Legacy Applications Maturity Migration/Integration Network Compliance Licensing Storage Automated Provisioning Automation Lack of Internal Process Reliability/Availability Security Complexity Internal Resources/Expertise Pricing/Budget Perception and Internal Resistance Management
External Public Cloud Pain Points*
12% 2% 2% 2% 3% 7% 8% 10% 12% 12% 12% 12% 69% Other Internal Resources/Expertise Interoperability Licensing Hybrid Cloud –Lack of …
Pricing/Budget Reliability/Availability Lack of Control Compliance Management Network Perception and Internal Resistance Security
Left Chart, n=62; Right Chart, n=59. *Note that due to multiple responses per interview, total may exceed100%.
As you move to an internal private cloud infrastructure
what are the two greatest pain points? As you move out to the external public cloud, what is or what do you expect to be the two greatest pain points? Cloud Computing Industry Profile - 1H Cloud Computing‘12 Industry Profile - 1H ‘12
