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ChangeWave Research: Corporate Cloud Computing Trends

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information. It may not be copied or distributed without permission. ©2014 451 Research, LLC. All rights reserved.

Corporate Cloud Computing Trends Uptick in Private Cloud Demand; Public and Hybrid Remain Steady Jean Crumrine and Sayon Deb Overview: ChangeWave’s latest survey on corporate cloud computing shows private cloud deployments registering an uptick, while demand for public and hybrid cloud is holding steady.

A total of 1,112 respondents involved in their company’s IT buying decisions participated in the October 8-28 survey, including 449 whose company currently use public cloud. ChangeWave Research is a service of 451 Research.

Corporate Public Cloud

Current Usage. Two-in-five corporate respondents (40%) report their company currently uses public cloud – virtually unchanged over the past year. We note that larger companies (45%) are more likely to be using public cloud than smaller companies (39%). Spending Plans – Public Cloud Users. In terms of spending plans among companies currently using public cloud, 36% say they plan to increase their cloud spending over the next 6 months – up 1-pt since the previous survey in July.

Only 9% say they’re decreasing spending or have no plans to use cloud at all, also a 1-pt improvement from previously.

Cost Savings. Among current public cloud users, better than half (52%) say their companies are experiencing cost savings by using public cloud (14% Significant Savings and 38% Slight). While still a very strong finding, this is 6-pts lower than a year ago.

November 2014



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Which of the following statements best describes the cost savings - if any - your company is experiencing by using public cloud computing services instead of other available solutions (e.g., dedicated servers, private cloud)?

Current Survey Oct ‘14

Previous Survey Oct ‘13

We Experience Significant Cost Savings By Using Public Cloud Services

14% 16%

We Experience Slight Cost Savings By Using Public Cloud Services

38% 42%

Impact on IT Budgets. We also asked respondents in companies currently using public cloud about its impact on the budget for other areas of IT.

One-in-five (20%) say public cloud spending is decreasing their budget for other IT products and services vs. 16% increasing. While corporate cloud spending continues to negatively impact budgets for other IT products and services, the impact is less than a year ago when 30% said it was decreasing their budget and 15% increasing.

That said, a recent survey by 451 Research’s Global Digital Infrastructure Alliance found cloud spending represents a significant portion of the overall IT budget. Better than a quarter (26%) of respondents report Greater Than 20% of their IT budget is spent on cloud and another two-in-five (38%) say their company spends 10-20% of their IT budget on cloud.

Corporate Sentiment Towards Cloud Services

The ChangeWave survey asked all respondents (both cloud users and non-users) to rate the reliability and security of cloud computing services, where 1 is Very Unreliable/ Unsecure and 10 is Very Reliable/ Secure.

Cloud Reliability Ratings. The mean reliability rating among all corporate respondents is 6.9, down 0.1-pt from July. As ChangeWave surveys have consistently shown, perceived reliability is stronger among companies currently using the cloud (7.8) vs. non-users (6.2).

Cloud Security Ratings. When it comes to the security of cloud computing services, the mean rating (5.9) has ticked down 0.2-pt from July – the first decline in more than a year.



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Again, major differences exist between companies who currently use public cloud (7.0) and those who do not (5.1). We note that perceived security has worsened for non-cloud users, while it remains unchanged among current users.

Reasons Companies Do Not Use Cloud. We asked respondents whose companies do not currently use cloud computing to tell us the most important reason why, and half (49%) cited Security Concerns.

Complexity of Integrating with Existing IT Infrastructure (11%) is a distant second, followed by General Resistance to Change (9%).

Additional Findings on Public Cloud

The survey also looked at the three key types of implementations for corporate public cloud services.

Software as a Service (SaaS; 69%; unchanged) continues to be most popular. Infrastructure as a Service (IaaS; 37%) and Platform as a Service (PaaS; 33%) are second and third, but both have registered a 4-pt uptick since July. Looking ahead at spending plans for the next six months, SaaS registers the highest spending growth increase – with 28% saying their company will increase spending vs. just 3% decrease. At the same time, IaaS (20% Increase vs. 1% Decrease) and PaaS (13% Increase vs. 2% Decrease) are also seeing growth.



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Leading Vendors. Respondents were asked which vendors their company plans to increase cloud-related spending on over the next 6 months.

Microsoft (27%) leads Platform Providers, followed by Salesforce.com (20%) and Google (16%).

Among hosting companies, Amazon (25%) remains well ahead of Rackspace (7%) and GoDaddy (5%) in terms of increased cloud spending. We note that Amazon has rebounded (up 4-pts) after declining in the past survey, and is just 2-pts below their all-time high in January 2013.

Corporate Private Cloud

Current Usage. The survey also looked at private cloud deployments, and for the second consecutive survey we’re seeing a 1-pt uptick — with 32% of respondents now reporting their company uses a private cloud.



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Three-in-five (57%) companies that deploy private cloud say they host and manage it in Company-Owned Datacenters. Another 26% use Third-Party Providers and 11% Virtual Private Clouds.

Spending Plans – Private Cloud Users. Better than a third (34%) of companies currently using private cloud say they’ll increase their private cloud spending over the next 6 months. While this is 4-pts lower than our previous survey, we saw a similar drop in private cloud spending during the same period a year ago.

Companies Currently Using Private Cloud


Previous Survey Jul ‘14



Increase Overall Spending 34% 38% 37% 43%

Remain the Same 57% 53% 51% 49%

Decrease Overall Spending 3% 3% 5% 4%

No Plans to Use Private Cloud Computing in Next 6 Months

7% 6% 7% 4%

Just one-in-ten companies (10%) report their private cloud spending will decrease (or there will be no spending at all).

Corporate Hybrid Cloud

We also looked at corporate hybrid cloud deployments – combinations of two or more clouds (e.g., public/private) interacting to form a unified but flexible infrastructure.

Current Usage. A total of 10% of companies report using hybrid cloud deployments – unchanged from July.

Looking at hybrid cloud models, On-Premise (53%) accounts for more than half of hybrid clouds being deployed, but is down 2-pts from previously. Another 38% say Off-Premise, up 3-pts.

Future Usage. Looking ahead, 13% of all companies say they’ll be deploying a hybrid cloud six months from now.

Mobile File Sharing and Synchronization Services

Demand for anywhere, anytime access to company files and data is driving corporate use of file sharing and synchronization services.



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We asked respondents about their company’s use of services in this key cloud area, and found 18% saying their company uses paid mobile file sharing and synchronization services – up 3-pts since the previous survey in April and 5-pts higher than a year ago.

Does your company currently use paid mobile file sharing and synchronization services, or do you plan to begin using them in the future?


Previous Survey Apr ‘14


Currently Use Paid Mobile File Sharing and Synchronization Services

18% 15% 13%

Plan to Begin Using Within the Next 6 Months 4% 3% 4%

Plan to Begin Using More Than 6 Months From Now 2% 3% 3%

Another 4% say their company plans to begin using Within the Next 6 Months.

Off-Premise vs. On-Premise. Among companies currently using (or planning to use) paid mobile file sharing and sync services, 34% describe their platform as Private – 19% Off-Premise and 15% On-Premise – double the level three months ago.

While one-in-four (25%) still say their file sharing and sync platform is being deployed as Off-Premise Public Cloud, that’s plummeted 22-pts since April.

Security issues and more frequent data breaches are likely to blame here, as the findings clearly show companies are becoming less likely to put sensitive corporate information at risk.

Dropbox (44%) remains the leading vendor for paid mobile file sharing and synchronization services. Microsoft OneDrive (27%) comes in second, closely followed by Google Drive (24%).



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Bottom Line: The latest survey results show continued strong demand for public cloud computing along with increased spending going forward, despite a leveling off in adoption rates.

Cost saving remains an important aspect of cloud usage, but the findings point to it having less of an impact. As cloud budgets – and their place within the overall IT budget – have matured over the past year, 451’s Global Digital Infrastructure Alliance (GDIA) surveys have identified a shift in the focus of cloud budgets from price and cost-saving to feature-rich services.

In fact, the GDIA’s latest survey found Lower Cost (13%) ranks fourth behind Agility/Speed (35%), Scalability (17%) and Reduced Management Overhead (14%) in terms of the primary benefits for organizations using cloud.

The ChangeWave survey also shows private cloud usage has ticked higher and spending looks set to increase over the next six months.

At the same time, mobile file sharing and sync services are a fast growing area of corporate cloud use. The survey shows a 3-pt increase in the use of these services over the past six



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months. Within mobile file sharing and sync services, private cloud deployments are showing the most momentum.

Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

Reliability and Security Ratings for Public Cloud

Mean Reliability Rating:

6.9 out of a possible 10 –down 0.1-pts from July

Among companies already using cloud it’s 7.8; for non-cloud users it’s 6.2

Mean Security Rating:

5.9 out of a possible 10 – down 0.1-pts from previously

Among companies already using cloud it’s 7.0; for non-cloud users it’s 5.1

Leading Vendors

Platform Providers Microsoft (27%)

Salesforce (20%)

Google (16%)

Hosting Companies

Amazon (25%)

Rackspace (7%)

Uptick in Private Cloud Adoption 32% report their company

currently uses Private Cloud – up 1-pt

34% plan to increase private cloud spending over next 6 months

Hybrid Cloud Demand 10% of companies currently

use hybrid cloud – unchanged from previously

Future usage projected to be 13% – next 6 months

Use of File Share and Sync Services on the Rise

18% say their company uses paid mobile file share and synchronization services – up 3-pts from April

Another 4% plan to use within the next 6 months, up 1-pt

Corporate Demand for Public Cloud Remains Steady 40% report their company

currently uses Public Cloud – virtually unchanged over the past year

36% of current users plan to Increase their cloud spending over next 6 months – up 1-pt

Public Cloud Usage

Software as a Service (SaaS) – 69%

Infrastructure as a Service (IaaS) – 37%

Platform as a Service (PaaS) – 33%

Continued Cost Savings 52% of companies are

experiencing cost savings by using public cloud – still a strong finding, but 6-pts lower than a year ago



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Table of Contents Summary of Key Findings ............................................................................................ 8 The Findings ................................................................................................................ 10

Corporate Public Cloud ............................................................................................ 10

Corporate Sentiment Towards Cloud Services ................................................... 13 Additional Findings on Public Cloud .................................................................... 16

Corporate Private Cloud ........................................................................................... 20

Corporate Hybrid Cloud ........................................................................................... 22 Mobile File Sharing and Synchronization Services .................................................. 24

ChangeWave Research Methodology ........................................................................ 27 About ChangeWave Research .................................................................................... 27 About 451 Research .................................................................................................... 27



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The Findings

Introduction: ChangeWave’s latest survey on corporate cloud computing shows private cloud deployments registering an uptick, while demand for public and hybrid cloud is holding steady.

A total of 1,112 respondents involved in their company’s IT buying decisions participated in the October 8-28 survey, including 449 whose company currently use public cloud. ChangeWave Research is a service of 451 Research.

Corporate Public Cloud

Current Usage. Two-in-five corporate respondents (40%) report their company currently uses public cloud – virtually unchanged over the past year.

Does your company or organization currently use any applications that run on public cloud computing services (i.e., "renting" or provisioning the remotely hosted computing resources of a service provider) or have you used public cloud computing services over the past 12 months?




Previous Survey Jan ‘14


Yes 40% 41% 41% 41% 40%

No 59% 58% 59% 58% 59%

Don't Know 1% 2% 1% 1% 1%

We note that larger companies (45%) are more likely to be using public cloud than smaller companies (39%).

Current Public Cloud Usage: Breakout By Company Size

Total Respondents

Under 1,000 Employees

Over 1,000 Employees

Yes 40% 39% 45%

No 59% 61% 54%

Don't Know 1% 1% 1%



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Spending Plans – Public Cloud Users. In terms of spending plans among companies currently using public cloud, 36% say they plan to increase their cloud spending over the next 6 months – up 1-pt since the previous survey in July.

Only 9% say they’re decreasing spending or have no plans to use cloud at all, also a 1-pt improvement from previously.

And over the next 6 months, does your company plan to increase its overall spending on public cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently Using Public Cloud






Increase Overall Spending 36% 35% 37% 38% 37%

Decrease Overall Spending 3% 2% 2% 2% 3%

Remain the Same 55% 55% 55% 50% 52%

No Plans to Use Cloud Computing in Next 6 Months

6% 8% 6% 10% 8%

Cost Savings. Among current public cloud users, better than half (52%) say their companies are experiencing cost savings by using public cloud (14% Significant Savings and 38% Slight). While still a very strong finding, we note this is 6-pts lower than a year ago.

Which of the following statements best describes the cost savings - if any - your company is experiencing by using public cloud computing services instead of other available solutions (e.g., dedicated servers, private cloud)?



We Experience Significant Cost Savings By Using Public Cloud Services

14% 16%

We Experience Slight Cost Savings By Using Public Cloud Services

38% 42%

We Do Not Experience Cost Savings By Using Public Cloud Services

22% 23%

We Pay More for Public Cloud Services Compared to Other Available Solutions

4% 5%

Don’t Know/NA 23% 15%



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Impact on IT Budgets. We also asked respondents in companies currently using public cloud about its impact on the budgets for other areas of IT.

One-in-five (20%) say public cloud spending is decreasing their budget for other IT products and services vs. 16% increasing. While corporate cloud spending continues to negatively impact budgets for other IT products and services, the impact is less than a year ago when 30% said it was decreasing their budget and 15% increasing.

What effect - if any - does your company's spending on cloud computing have on your budget for other IT products and services? Would you say that spending on cloud computing is having no effect on your company's budget for other IT products/ services, is it increasing your budget for other IT products/services, or is it decreasing your budget for other IT products/services?


Cloud Spending is Decreasing Company’s Budget for Other IT Products and Services

20%

Cloud Spending is Increasing Company Budget for Other IT Products and Services

16%

Cloud Spending is Having No Effect on Company Budget for Other IT Products and Services

49%

Don’t Know/NA 14%

That said, a recent survey by 451 Research’s Global Digital Infrastructure Alliance found cloud spending represents a significant portion of the overall IT budget. Better than a quarter (26%) of respondents report Greater Than 20% of their IT budget is spent on cloud and another two-in-five (38%) say their company spends 10-20% of their IT budget on cloud.



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Corporate Sentiment Towards Cloud Services The ChangeWave survey asked all respondents (both cloud users and non-users) to rate the reliability and security of cloud computing services, where 1 is Very Unreliable/ Unsecure and 10 is Very Reliable/ Secure.

Cloud Reliability Ratings. The mean reliability rating among all corporate respondents is 6.9, down 0.1-pt from July.

Thinking about cloud computing overall, how would you rate the reliability of the cloud computing services available today - where 1 is Very Unreliable and 10 is Very Reliable?

Mean (SD)

Very Unreliable

1 2 3 4 5 6 7 8 9

Very Reliable

10

6.9 (2.0)

2% 1% 4% 4% 11% 10% 21% 25% 14% 6%

As ChangeWave surveys have consistently shown, perceived reliability is stronger among companies currently using the cloud (7.8) vs. non-users (6.2).



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Cloud Security Ratings. When it comes to the security of cloud computing services, the mean rating (5.9) has ticked down 0.2-pts from July – the first decline in more than a year.

On the issue of security, how secure do you think data is when using the cloud computing services available today - where 1 is Very Unsecure and 10 is Very Secure?

Mean (SD)

Very Unsecure

1 2 3 4 5 6 7 8 9

Very Secure

10

5.9 (2.3)

5% 5% 8% 7% 15% 14% 21% 15% 7% 3%

Again, major differences exist between companies who currently use public cloud (7.0) and those who do not (5.1). We note that perceived security has worsened for non-cloud users, while it remains unchanged among current users.

In another critical finding on perceptions of cloud security, 77% of all respondents believe it’s Very Important that cloud providers offer a “security guarantee,” and 18% say Somewhat Important.



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How important is it that cloud service providers offer a “Security Guarantee” to their customers?



Very Important 77% 74%

Somewhat Important 18% 22%

Not Very Important 3% 3%

Not At All Important 2% 1%

Companies not using cloud place a greater importance on security guarantees than current users – with four-in-five reporting it is Very Important (80%) to receive a security guarantee and another 15% Somewhat.

Breakout by Current Cloud Users vs. Non-Users


Current Cloud Users

Non- Cloud Users

Very Important 77% 73% 80%

Somewhat Important 18% 23% 15%

Not Very Important 3% 3% 3%

Not At All Important 2% 2% 2%

With security guarantees holding a strong appeal for non-cloud users, this offers cloud service providers a valuable opportunity to attract new customers. Reasons Companies Do Not Use Cloud. We asked respondents whose companies do not currently use cloud computing to tell us the most important reason why, and half (49%) cited Security Concerns.

Complexity of Integrating with Existing IT Infrastructure (11%) is a distant second, followed by General Resistance to Change (9%).



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For those companies who DO NOT currently use cloud computing, what is the most important reason why not?

Current Survey Oct ’14

Previous Survey Apr ’14



Security Concerns 49% 46% 41% 41%

Complexity of Integrating Cloud with Existing IT Infrastructure

11% 11% 11% 15%

General Resistance to Change 9% 9% 11% 7%

Cost is Too High 5% 8% 5% 7%

Technology is Too New 5% 5% 9% 7%

Latency Issues/Too Slow 4% 3% 4% 4%

Too Unreliable 3% 2% 3% 3%

Don’t Like the User Agreements (SLAs)

1% 2% 2% 3%

Other 6% 9% 6% 9%

Among non-cloud users, large-sized companies (over 1,000 employees) are much more likely to cite Security Concerns as the most important reason why they’re not using cloud compared to small-to-medium sized companies (under 1,000 employees).

On the other hand, small-to-medium sized companies are more likely than larger companies to cite Cost and General Resistance to Change.

Additional Findings on Public Cloud

The survey also looked at the three key types of implementations for corporate public cloud services. Software as a Service (SaaS; 69%; unchanged) continues to be most popular. Infrastructure as a Service (IaaS; 37%) and Platform as a Service (PaaS; 33%) are second and third, but both have registered a 4-pt uptick since July.



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With regard to public cloud computing, in which of the following ways does your company use cloud computing services? (Check All That Apply)






Software as a Service (SaaS) - (e.g., Salesforce.com)

69% 69% 72% 71% 72%

Platform as a Service (PaaS) - (e.g., Google App Engine),

33% 29% 31% 32% 31%

Infrastructure as a Service (IaaS) - (e.g., Amazon EC2).

37% 33% 36% 40% 37%

Don't Know 4% 5% 4% 4% 3%

Other 4% 4% 4% 4% 4%

Looking ahead at spending plans for the next six months, SaaS registers the highest spending growth increase – with 28% saying their company will increase spending vs. just 3% decrease. At the same time, IaaS (20% Increase vs. 1% Decrease) and PaaS (13% Increase vs. 2% Decrease) are also seeing growth.



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For each of the following uses of cloud computing, do you expect your company to increase its spending on cloud-related services, decrease its spending, or will spending on cloud-related services remain the same over the next 6 months?

Increase Spending

Remain the

Same

Decrease Spending

No Spending in Next 6

Months, BUT Considering

for Future

No Spending in Next 6

Months, and NOT

Considering for Future

Software as a Service (SaaS) - (e.g., Salesforce.com)

28% 45% 3% 5% 10%

Infrastructure as a Service (IaaS) - (e.g., Amazon EC2)

20% 28% 1% 13% 27%

Platform as a Service (PaaS) - (e.g., Google App Engine)

13% 30% 2% 17% 27%

Leading Vendors. Respondents were asked which vendors their company plans to increase cloud-related spending on over the next 6 months.

Microsoft (27%) leads Platform Providers, followed by Salesforce.com (20%) and Google (16%).

Among hosting companies, Amazon (25%) remains well ahead of Rackspace (7%) and GoDaddy (5%) in terms of increased cloud spending.



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We note that Amazon has rebounded (up 4-pts) after declining in the past survey, and is just 2-pts below their all-time high in January 2013.

For which of the following public cloud computing vendors - if any - does your company plan on increasing its spending on cloud-related products and services over the next 6 months? (Check All That Apply)






Platform Providers

Microsoft 27% 24% 27% 23% 23%

Salesforce.com/Force.com 20% 16% 17% 18% 18%

Google 16% 19% 19% 17% 17%

VMware/Cloud Foundry 7% 7% 8% 11% 12%

Oracle 7% 4% 5% 5% 6%

Intuit 3% 3% 3% 2% 4%

SuccessFactors/SAP 3% 1% 3% 4% 6%

Netsuite 2% 2% 2% 2% 1%

RedHat/Open Shift 2% 2% 2% 1% 3%

Other Platform Providers 1% 2% 2% 3% 3%

Hosting Companies

Amazon 25% 21% 24% 24% 24%

Rackspace 7% 8% 10% 11% 9%

GoDaddy 5% 4% 6% 8% 8%

SoftLayer 3% 2% 2% 1% 1%

Telecom Providers

AT&T 7% 8% 11% 14% 12%

Verizon/Terremark 7% 7% 13% 7% 11%

Other Telecom Providers 3% 3% 5% 5% 6%

Other IT Service Providers

IBM 5% 4% 5% 5% 6%

Dell 4% 5% 2% 5% 5%

EMC/Mozy 3% 3% 2% 4% 3%

Hewlett-Packard 3% 2% 3% 3% 6%

Other 11% 12% 10% 12% 15%

Don't Know 11% 11% 9% 13% 8%



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Corporate Private Cloud

Current Usage. The survey also looked at private cloud deployments, and for the second consecutive survey we’re seeing a 1-pt uptick — with 32% of respondents now reporting their company uses a private cloud.

Private cloud computing uses hardware dedicated to a single organization and is not shared by others. Private clouds can be built and run in your own data center or hosted by a third-party provider. Does your company or organization currently operate a private cloud, or do you currently use any private cloud computing services?

Looking at company size, larger companies (over 1,000 employees) are far more likely to use private cloud than smaller companies (50% vs. 23%, respectively).

Current Private Cloud Usage: Breakout By Company Size

Total Respondents



Yes 32% 23% 50%

No 68% 77% 50%

Three-in-five (57%) companies that deploy private cloud say they host and manage it in Company-Owned Datacenters. Another 26% use Third-Party Providers and 11% Virtual Private Clouds.

*Don’t Know/NA/Other = 6%



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Moreover, the trend toward hosting and managing private cloud in company-owned datacenters is strongest among large companies (69% vs. 45% for smaller companies). Where Private Cloud is Hosted: Breakout By Company Size

Total Respondents



Company Managed in Company-Owned Datacenters

57% 45% 69%

Managed and Hosted By a Third-Party Provider

26% 32% 19%

Virtual Private Cloud 11% 19% 4%

Other/Don’t Know/NA 6% 4% 7%

Spending Plans – Private Cloud Users. Better than a third (34%) of companies currently using private cloud say they’ll increase their private cloud spending over the next 6 months. While this is 4-pts lower than our previous survey, we saw a similar drop in private cloud spending during the same period a year ago. Over the next 6 months, does your company plan to increase its overall spending on private cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently Using Private Cloud





Increase Overall Spending 34% 38% 37% 43%

Remain the Same 57% 53% 51% 49%

Decrease Overall Spending 3% 3% 5% 4%

No Plans to Use Private Cloud Computing in Next 6 Months

7% 6% 7% 4%

Just one-in-ten companies (10%) report their private cloud spending will decrease (or there will be no spending at all).



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Corporate Hybrid Cloud

We also looked at corporate hybrid cloud deployments – combinations of two or more clouds (e.g., public/private) interacting to form a unified but flexible infrastructure. Current Usage. A total of 10% of companies report using hybrid cloud deployments – unchanged from July.

The term Hybrid cloud describes combinations of two or more clouds (e.g., public and private) that interact to create a unified but flexible infrastructure. Examples of corporate hybrid cloud deployments include using a vendor's Public cloud-based SaaS on a Private cloud, or taking a Private cloud's non-sensitive workloads during peak demand and shifting to a Public cloud.

Does your company or organization currently make use of any hybrid cloud deployments?






Yes 10% 10% 10% 9% 9%

No 90% 90% 90% 91% 91%

Note that large companies (19%) are deploying hybrid cloud at nearly three times the rate of smaller companies (7%).

Current Hybrid Cloud Deployments: Breakout By Company Size

Total Respondents



Yes 10% 7% 19%

No 90% 93% 81%

Looking at hybrid cloud models, On-Premise (53%) accounts for more than half of hybrid clouds being deployed, but is down 2-pts from previously. Another 38% say Off-Premise, up 3-pts.



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Which of the following best describes the hybrid cloud model your company currently uses?



Off-Premise Private Cloud + Public Cloud

38% 35%

On-Premise Private Cloud + Public Cloud

53% 55%

Don’t Know/NA 7% 8%

Other 1% 2%

Once again there are clear differences based on company size, with larger companies (63%) more likely to report using On-Premise hybrid cloud than smaller companies (43%). Breakout By Company Size

Current Survey Jul ‘14



Off-Premise Private Cloud + Public Cloud

38% 50% 26%

On-Premise Private Cloud + Public Cloud

53% 43% 63%

Don’t Know/NA 7% 7% 9%

Other 1% 0% 2%

Future Usage. Looking ahead, 13% of all companies say they’ll be deploying a hybrid cloud six months from now.

Above and beyond cloud deployments, we also asked respondents about their company’s use of paid mobile file sharing and synchronization services.



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Mobile File Sharing and Synchronization Services

Demand for anywhere, anytime access to company files and data is driving corporate use of file sharing and synchronization services. We asked respondents about their company’s use of services in this key cloud area, and found 18% saying their company uses paid mobile file sharing and synchronization services – up 3-pts since the previous survey in April and 5-pts higher than a year ago. Mobile file sharing and synchronization services (e.g., Dropbox) allow users to share specific files and folders with others (co-workers, clients, etc.) and to synchronize files across multiple devices (e.g., smart phones, tablets and laptops) so they're always up-to-date. Does your company currently use paid mobile file sharing and synchronization services, or do you plan to begin using them in the future?




Currently Use Paid Mobile File Sharing and Synchronization Services

18% 15% 13%

Plan to Begin Using Within the Next 6 Months 4% 3% 4%

Plan to Begin Using More Than 6 Months From Now 2% 3% 3%

No Plans to Use Paid Mobile File Sharing and Synchronization Services

61% 65% 65%

Don’t Know 15% 14% 16%

Another 4% say their company plans to begin using Within the Next 6 Months. Off-Premise vs. On-Premise. Among companies currently using (or planning to use) paid mobile file sharing and sync services, 34% describe their platform as Private – 19% Off-Premise and 15% On-Premise – double the level three months ago.



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How is your company's file sharing and synchronization platform currently deployed - or how will it most likely be deployed?

Respondents Currently Using or Planning to Begin Using Within

the Next 6 Months



Off-Premise Public Cloud Only 25% 25%

Off-Premise Private Cloud Only 19% 19%

On-Premise Private Cloud Only 15% 15%

Hybrid (mix of On-Premise and Off-Premise Cloud)

24% 24%

Other 0% 0%

Don't Know/NA 17% 17%

While one-in-four (25%) still say their file sharing and sync platform is being deployed as Off-Premise Public Cloud, that’s plummeted 22-pts since April.

Security issues and more frequent data breaches are likely to blame here, as the findings clearly show companies are becoming less likely to put sensitive corporate information at risk.

Dropbox (44%) remains the leading vendor for paid mobile file sharing and synchronization services. Microsoft OneDrive (27%) comes in second, closely followed by Google Drive (24%).



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Which of the following file sharing and synchronization platforms does your company currently use or plan on using? (Check All That Apply)

Respondents Currently Using or Planning to Begin Using Within

the Next 6 Months

Current Survey Oct’ 14

Dropbox 44%

Microsoft OneDrive 27%

Google Drive 24%

Box 14%

Citrix ShareFile 9%

Amazon 7%

Salesforce Files 7%

Hightail 4%

IBM Connections 4%

Egnyte 3%

SAP Docs 3%

Accellion 2%

EMC Syncplicity 2%

Oracle Documents 2%

VMware Horizon 2%

OpenText Tempo 1%

Don't Know 6%

Other 8%



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ChangeWave Research Methodology

This report presents the findings from a recent ChangeWave Research survey on corporate Cloud Computing. The survey was conducted October 8-28, 2014 and a total of 1,112 respondents involved in or knowledgeable about their company’s use of cloud computing participated. ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network. The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave Research

ChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends. The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com. 451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research

451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

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