emc apac state of hybrid cloud

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in association with Survey conducted by IDG Connect on behalf of EMC STATE OF HYBRID CLOUD

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Page 1: EMC APAC State of Hybrid Cloud

PUBLICCLOUD

in association with

Survey conducted by IDG Connect on behalf of EMC

STATE OF HYBRID CLOUD

PRIVATECLOUD

Page 2: EMC APAC State of Hybrid Cloud

2

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

INTRODUCTION

...the more recent emergence of the hybrid cloud now looks set to attract more attention from enterprise IT departments.

“ “Global business spending on infrastructure and services related to the cloud is forecast to hit $235.1bn by 2017 according to IHS Technology, up from $174.2bn in 2014 and $145.2bn in 2013. Countries within the Asia Pacific (APAC) region will account for a significant portion of that spend, with a Gartner survey of chief information officers (CIOs) in 2014 identifying cloud computing as their top spending priority fuelled by an average budgetary increase of 0.9% year on year.

A growing portion of that expenditure is likely to be spent on hybrid cloud platforms specifically. Gartner predicted in October 2013 that many existing private cloud deployments will gradually give way to hybrid clouds, and that nearly half of all enterprises will have hybrid clouds by 2018. IDC too has predicted greater adoption of hybrid cloud models in the longer term which would contribute to an increase in both public and private cloud service consumption.

Early cloud service delivery models centred on off-premise platforms that store data and applications on shared, multi-tenanted server architecture have proved popular amongst businesses of all sizes. But many organisations, particularly larger corporates, remain wary about committing mission critical applications, and sensitive information governed by data privacy regulation, to third party hosting facilities, one reason why many have preferred on-premise, private clouds for certain applications.

The more recent emergence of hybrid cloud – designed to combine the speed of provisioning and flexibility advantages that have driven so many organisations to lease on-demand, public cloud services and the enhanced security, reliability and performance associated with on-premise applications and services – now looks set to attract more attention from enterprise IT departments.

Whether those analyst predictions prove accurate or not, the reality is that the broader cloud market is on the cusp of significant diversification, with all forms of cloud delivery – including various flavours of public, private and hybrid - likely to attract a greater portion of enterprise IT budgets. Most organisations will continue to use a mixture of different cloud services models for different applications

and workloads according to the specific security, performance and reliability requirements of each, and enterprise spending on each is set to increase.

IDG Connect surveyed 600 organisations based in Australia, China, Malaysia, New Zealand, Thailand, Singapore and Indonesia, all of which employed 500 people or more with 62% having headcounts in excess of 1,000 staff and 9% 10,000 or more. The majority of those polled (57%) worked in front facing, hands-on IT roles with the remainder made up of C-level executives. The insurance industry represented the single largest vertical (12%), followed by finance (11%), education (8%) and electronics (7%).

The results provide a snapshot of current usage of, and attitudes to, on- and off-premise public, private and hybrid cloud service provision in specific territories within the Asia Pacific (APAC) region, and highlight perceived benefits, barriers to adoption and future investment plans.

Page 3: EMC APAC State of Hybrid Cloud

3

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

RESEARCH HIGHLIGHTS

Important Barriers to Hybrid Cloud Implementation

Important Objectives for Cloud Migration Barriers to Public Cloud Computing Adoption

Security and/or Governance

Speed or Provisioning to Support Innovation/Rapid Service Delivery

Flexibility and Scalability to Match Business

Requirements

Cost Transparency and Predictability

Access to Applications and Services from Multiple Platforms

Self-Service Portal for Provisioning

Security, Data Protection and Availability

Lack of Control Over Data and Services Stored in the Cloud

Threat of Vendor Lock-In/Data Application Portability

On-Premise System Integration Complexity

Maintaining Control of the Workload Placement

Ability to Negotiate Customised SLAs

Compliance and Governance Uncertainty

Unknown Hidden Costs

Lack of In-Country Data/Support Centres

75%

65%

57%

57%

50%

49%

43%

35%

23%

81% 81% 69%

62% 61% 32%

Lack of Interoperability Between Cloud

Platforms

Costs of Integrating Legacy

On-Premise Systems

Greater Service/Application

Management Overheads

Complexity Associated with

Multiple SLAs and Providers

Culture Change/Staff Training

Issues

Trust and Security

Concerns

Organisation Does Not Have a

Private Cloud

65% 64%57% 55% 54% 52%

34%

Page 4: EMC APAC State of Hybrid Cloud

4

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

How Would You Describe Your Organisation’s Current Use of Cloud Computing?

62%

56%

40%

25%

Off-Premise, Public Cloud Services with the Approval

of the IT Department

On-Premise, Private Cloud

Solutions Managed by the IT

Department

Off-Premise, Hosted Single

Tenanted Private Cloud

Solutions

Off-Premise, Public Cloud

Services Without the

Approval of the IT Department

CURRENT CLOUD USAGE Off Premise Public and On-Premise Private Clouds Proliferate

Public cloud services which include any off-premise Infrastructure as a Service (IaaS), Software as a Service (SaaS), Platform as a Service (PaaS) or Communications as a Service (CaaS) propositions accessed via the Internet, remain the most widely used variant of cloud services in use by 62% of respondents, though on-premise cloud platforms provisioned and managed internally were also in majority evidence (56%).

Off-premise, single tenanted private cloud solutions that host workloads on dedicated rather than shared servers located in third party provider data centres are being used by 40% of organisations. This type of cloud platform offers security advantages over public, multi-tenanted equivalents and are often backed by better service level agreements (SLAs) offering more guarantees around performance and reliability whilst maintaining a degree of cost competitiveness compared to on-premise hosting for some workloads. A quarter (25%) of respondents said that either they, or others within their organisation, use off-premise public cloud services beneath the radar of their own IT departments. Given the high percentage of the survey base who occupy hands-on IT manager or IT director roles (57%), this figure may be understated given that they may not be fully aware of the full extent of unauthorised public cloud use within their organisations.

The finding illustrates the extent to which the broader end user community likes the flexibility, agility and self-service provisioning that many cloud service providers (CSPs) are able to offer to meet demand for IT resources which can be delivered instantly with the minimum of delay to process specific, on demand workloads. It also suggests that many employees and/or business divisions are prepared to forego the IT department’s ability to negotiate favourable tariffs and SLAs based on volume leasing in order to secure sufficient on demand resource capacity to serve their needs more quickly, often denying the business a holistic picture of costs and demand for IT services across the organisation.

Clearly, the situation is causing some alarm amongst IT managers and C-level executives, with a large percentage indicating that they wish to minimise or stop unauthorised public cloud usage if they can. Provisioning of cloud services using self-service portals which are protected by user authentication details may alleviate the problem, simultaneously providing greater control and visibility into demand and usage costs.

Page 5: EMC APAC State of Hybrid Cloud

5

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

Which of the following objectives are important for your organisation when implementing cloud computing solutions?

Security and/or Governance

Speed, Provisioning to Support Innovation/

Rapid Service Delivery

Flexibility and Scalability to Match Business

Requirements

Cost Transparency and Predictability

Access to Applications and Services from Multiple Platforms

Self-Service Portal for

Provisioning

42%

21%

17%

11%

7% 2%

OBJECTIVESSecurity, Governance and Flexibility Are Top Priorities

Security and governance top the list of priorities when it comes to cloud implementations, reflecting the concerns that respondents may feel in trusting data privacy and compliance management to off-premise, third party hosting providers – 42% identified this as the most important objective and it was listed as important by 81%.

Speed of provisioning to support rapid product and service innovation and delivery was cited as most important by 21%. This may essentially equate to PaaS as companies look to hone their competitive edge by bringing new applications and services to market faster than their rivals. Additionally rated as an important, if not the most important, objective by 69% of the survey.

That 81% rated the ability to scale IT resources up and down to match business requirements is to be expected given that on-demand, pay as you go provisioning billed by the hour or the day is a central pillar of the broader cloud services proposition, although it ranked below both security and speed of provisioning in terms of priority.

Around a third - 32% - rated a self-service portal as important, which may point to a lack of awareness around well-executed hybrid cloud models that can potentially simplify on demand capacity provisioning. A benefit of a centralised portal for provisioning is that it allows many forms of cloud services and applications to be accessed from a broad range of devices, including smartphones and tablet computers (cited as important by 62% but not seen as a particular priority).

Given previously stated security and governance concerns, respondents may be mindful of the security challenges involved in ensuring data privacy and compliance on mobile devices. Many will need reassurances that the integrity of information being hosted on, and transmitted between, mobile devices will be properly protected using appropriate virtual private network (VPN), identity access management (IAM), private storage, backup and encryption technology for example.

Organisations may prefer to work with specialist cloud service providers more familiar with, and better able to address, specific enterprise security and governance requirements which often vary from one vertical industry sector to another.

Similarly, price transparency and more predictable capex, opex and labour costs involved in IT provision were also seen as important objectives for any cloud implementation by the majority (61%), but came relatively low on the priority list (11% saw this as the single most important objective).

Page 6: EMC APAC State of Hybrid Cloud

6

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

Major Barriers and Concerns for Organisations Adopting or Expanding Public Cloud Usage

Security, Data Protection and Availability

Lack of Control Over Data and Services Stored in the Cloud

Threat of Vendor Lock-In/Data Application Portability

On-Premise System Integration Complexity

Maintaining Control of the Workload Placement

Ability to Negotiate Customised SLAs

Compliance and Governance Uncertainty

Unknown Hidden Costs

Lack of In-Country Data/Support Centres

42%

13%

13%

12%

7%

6%

4%

2%

1%

0 50Percentage

Perhaps surprisingly given the continued complexity of pricing associated with public cloud services which have historically made monthly usage bills difficult to predict, only a third (35%) saw unknown hidden costs as a barrier with 2% seeing them as the most critical obstacle to adoption. This appears to suggest that most companies are either unaware of any hidden costs, or do not have sufficient visibility into pay as you go, on demand tariffs which are a pre-requisite to accurately assess total expenditure over the course of long term leasing agreements spanning multiple months or years. It is also possible that some do not see the lack of price transparency associated with public cloud services as an issue due to the perceived extent of on-premise capex and opex savings elsewhere. This is a metric which will vary considerably from one organisation to the next depending on the size and nature of the on-premise IT estate and its associated upgrade plans and ongoing management costs.

Yet as in other regions in the world, security, data protection and availability/performance of cloud services dominates end user concerns, cited as the biggest barrier to adoption/expansion by 42% of respondents, and a major barrier by 75%. Lack of control over data and services stored is the next most prominent barrier (13%). Nevertheless this is a significant cause for worry in just under half of all organisations, reflecting IT departments’ fear of being unable to access, retrieve or delete information or workloads stored in public cloud services as needed. Both of these findings suggest that a move to hybrid cloud services that store certain mission critical or sensitive data and applications on-premise, and others in off-premise environments may partially overcome this entrenched trepidation.

Those hybrid clouds depend heavily on smooth and efficient integration with legacy on premise virtualisation and virtualisation management platforms, another aspect of cloud service provisions rated as a significant barrier by 57% and the greatest potential impediment by 12%.

That many organisations are actively looking to source externally hosted IT provision from more than one public cloud provider at any one time, or switch workloads between different CSPs to obtain preferential pricing or contract agreements, is indicated by how many

rate the threat of vendor lock in and the ability to migrate virtualised workloads, data and applications between platforms (rated as an important barrier by 57% and the biggest hurdle by 13%). The ability to negotiate customised service level agreements (SLAs) tailored to individual business requirements was cited as an important barrier by half of respondents, and considered the most critical by 6%.

Only 1% tagged a lack of in country data centres or support centres as the most critical barrier, whilst just under a quarter (23%) saw this as any barrier at all. This suggests most organisations are happy to trust their data and applications to global cloud service providers which may host workloads and support resources in countries other than their own, providing sufficient reassurances on compliance with any regional legislation on data sovereignty can be given (cited as the most important barrier by 4% and an important barrier by 43%).

BARRIERS TO PUBLIC CLOUDSecurity Concerns Dominate

Page 7: EMC APAC State of Hybrid Cloud

7

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

Top 5 Types of Virtualised Workloads Hosted in the Cloud

45%Ecommerce and Online Tools

62%

Websites and Website Applications

68%Email

49%Collaboration and Content Management

48%Business Analytics

WORKLOADSMessaging and Web Applications Most Common

The survey mirrors other cloud applications’ research in identifying email as the most widely used cloud application, which in the case of public cloud services would typically include (68%) Microsoft Outlook as well as Google Mail as part of the company’s broader calendar, storage and document sharing platform i.e. Google Apps, rather than more specialised, corporate grade cloud-based messaging. The exact make-up of websites and website application workloads (62%) are more difficult to pin down, but typically include both web hosting and design propositions, and broader SaaS offerings.

A relative surprise is the prominence of business analytics (used by 48%), reflecting both the recent shift of on-premise business intelligence (BI) applications to SaaS based models, and the emergence of ‘analytics as a service’, ‘database as service’ and ‘big data as a service’ propositions in response to more significant processing requirements that big data analytics places on in-house compute resources, which may drive more organisations to IaaS platforms which can better scale to handle CPU, storage and performance requirements.

Application testing and development (PaaS) is a staple amongst 43% of organisations, as are SaaS based enterprise resource planning (ERP) and customer relationship management (CRM) tools. This finding tallies with recent IDC research which concludes SaaS spending in 2013 was dominated by enterprise resource management (ERM) and CRM applications, closely followed by collaborative applications.

Despite fears of trusting transactional processes to the cloud, a large percentage of organisations also use SaaS based ERP finance and accounting tools hosted in public and hybrid clouds which suggests that providers may either provision pay as you go software instances that store data on local servers or host specific mission critical elements of the application on-premise.

Page 8: EMC APAC State of Hybrid Cloud

8

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

How Does Your Internal IT Department Charge Back Individual Business Divisions for IT Services?

IT Staff Costs (Man Hours)

CPU/RAM/Storage Capacity

Utilisation

Service/Application

Development Projects

Fixed Allocation

Scheme

Desktop/Laptop

Software Licenses

66% 64% 64% 62% 55%

COST STRATEGIESServer Capability Utilisation Billing Almost as Popular as Manhour Billing

What stands out is that almost two thirds of the organisations surveyed appear to be calculating the cost of IT provision to individual business entities based on parameters typically associated with on demand cloud services – 64% said their IT department charged back based on server capacity and/or CPU/RAM/storage resource utilisation which are the primary features of public IaaS proposition for example.

That 64%, which also highlighted charges for IT provision based on individual application or service development projects, also offers encouragement for PaaS usage, particularly for service propositions which are able to factor in labour costs alongside capacity and resource utilisation fees. This finding offers a strong indication of the extent to which the on demand, pay as you go pricing model has entered the consciousness of many business IT environments even where little or no migration to externally hosted cloud services has taken place.

Only slightly more (66%) indicated they were billed according to the more traditional metric of internal IT staff man hours, and just over half (55%) according to the volume and/or value of operating system and application software licenses purchased for desktop PCs and laptops.

Originally touted as a way of improving expense management by encouraging end users to pay closer attention to their IT expenditure, early internal charge back schemes were criticised for being overly complex, potentially divisive and too broadly applied to address the provision of shared services across departmental entities, one reason for low rates of adoption within the enterprise.

But the tighter correlation to individual, virtualised IT assets that cloud-based resource provision allows, combined with detailed reporting tools, can provide a much more accurate picture of exactly how much processing power, memory and storage capacity, and software licenses, are being used at any one time, and has sufficiently improved charge back capabilities to deserve re-evaluation in many cases.

Page 9: EMC APAC State of Hybrid Cloud

9

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

What Barriers Exist in the Implementation of Hybrid Cloud Infrastructure?

Lack of Interoperability Between Cloud

Platforms

Costs of Integrating Legacy

On-Premise Systems

Greater Service/Application Management

Overheads

Complexity Associated with Multiple SLAs and

Providers

Culture Change/Staff Training Issues

Trust and Security

Concerns

Organisation Does Not Have a

Private Cloud

65%

64%

57%

55%

54%

52%

34%

BARRIERS TO HYBRID CLOUDInteroperability and Integration Between On and Off Premise Systems Top Concerns

The single biggest barrier to any potential hybrid cloud migration is the prohibitive costs associated with integrating legacy on-premise systems with externally hosted cloud applications and services, cited as the most critical impediment by 25% of the survey base and rated as a significant barrier by 64%. Inevitably, trust and security concerns also rate highly, with a fifth of respondents remaining seemingly unconvinced by arguments that hybrid clouds can deliver improved data privacy and compliance protection.

Lack of interoperability between different cloud platforms that limits workload migration capabilities is rated as a barrier by the largest contingent of respondents (65%), although the same option was rated in fifth place in terms of priority (12%). This may suggest that from a purely practical perspective, few organisations may want to integrate off-premise public cloud platforms with their legacy systems because they are not confident that virtual workloads can be automatically moved efficiently between the two.

It may also suggest that multi-vendor and service provider supported cloud interoperability, certification and validation initiatives have so far failed to successfully address the majority of end users’ concerns around portability, not only during on- to off-premise migration but also when moving applications and services from one CSP to another, and particularly when it comes to making sure that virtual workloads can be successfully retrieved at the end of the contract and mission critical information deleted for compliance purposes.

That so many (55%) are deterred by the complexities of dealing with multiple CSPs and SLAs also suggests a majority might prefer to engage a cloud brokerage model that provisions, configures and manages multiple IaaS/PaaS/SaaS contracts from many different sources on their behalf under a single service agreement from one third party provider. Considered collectively all of these concerns, allied with the finding that 54% see staff training issues and internal culture change as a barrier to hybrid cloud adoption, show that many

companies are unfamiliar with hybrid cloud planning, deployment and delivery demands and may welcome the integration and management expertise provided by professional services and consultancy companies.

Page 10: EMC APAC State of Hybrid Cloud

10

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

What Are the Business Requirements that Drive the Need for Temporary Provisioning Within Your Organisation?

Analytical And

Modelling Projects

27%

Short Term Projects

34%

32%

34%36%

44%

44%

56%

Marketing And Sales Initiatives

Monthly/Quarterly/Annual Processing

Peaks

New Application Development Or Enhancements

Cost Reduction/Efficiency

Drives

Seasonal Capacity

Schedule Backup/Disaster

Recovery Operations

ON DEMAND PROVISIONINGMixed and Diverse Picture of Business Requirements

The drivers which prompt individual organisations to draft in temporary on-demand IT resources within Australia, China and New Zealand specifically are varied, with sales and marketing initiatives cited by 56% of respondents and occurring with a high degree of frequency – 15 times on average over the course of the year and probably a reflection of the fact that 23% of respondents come from the insurance and finance industries where new customer offers are regularly conceived and distributed.

Application development and alteration projects, which may use PaaS as the underlying provisioning platform within either public or private cloud environments, are also undertaken 15 times a year on average, but were selected by fewer respondents (44%) suggesting that a smaller number of companies are far more active in this respect. A smaller group of respondents (36%) indicated that IT resources are utilised on a temporary basis to support cost reduction and efficiency initiatives, though again those that do engage in this activity do it regularly - 16 times per year on average.

There is a strong indication that more routine tasks such as scheduled backup and disaster recovery operations take place on a monthly basis (12 times a year on average, cited by just over a third of respondents).

This figure is almost identical for bouts of temporary resource provisioning which may be undertaken to support seasonal capacity requirements, such as Christmas sales and marketing initiatives, and end of period processing peaks that typically involve accounting and auditing processes.

In keeping with earlier findings, analytical and modelling projects that often require large scale processing and storage requirements appear to be a far more common application than may have otherwise been supposed. Whilst only just over a quarter (27%) provision IT capacity in support of these workloads, they occur 15 times a year on average.

Page 11: EMC APAC State of Hybrid Cloud

11

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

Over the Next 12 Months Which of the Following Cloud Computing Models is Your Organisation Planning to Utilise?

Off-Premise, Public Cloud Services with the Approval

of the IT Department

On-Premise, Private Cloud Solutions Managed by the IT

Department

Off-Premise, Hosted Single Tenanted Private Cloud

Solutions

Off-Premise, Public Cloud Services Without the Approval of

the IT Department

46%

33%

12%

9%

FUTURE CLOUD PLANSOff-Premise and On-Premise Clouds Managed By Internal IT Departments Likely to Dominate

The type of cloud favoured for future investment by the most organisations in Australia, China and New Zealand is off-premise, public cloud services approved by the IT department (cited by 46%). In this respect, the APAC countries surveyed resemble their counterparts in other regions of the world. IDC estimated that global spending on public cloud services in 2013 totalled $45.7bn, and forecast that this specific market will grow at a compound annual growth rate (CAGR) of 23% until 2018. Gartner too predicts that enterprises will spend $921bn globally on public cloud services between 2014 and 2019 as companies of all sizes demonstrate a continued preference for hosting certain types of applications and services in third party hosted, multi-tenanted cloud architecture.

However, a third of those polled (33%) also expect their organisations to use on-premise private cloud services managed by the IT department, again suggesting that they will continue to operate mission critical workloads, data sets and applications within their own, locally hosted data centres or server/storage infrastructure simultaneously – a direct reflection of previously highlighted concerns around security, governance, control and performance associated with public clouds.

As previously noted, analyst firms, including both IDC and Gartner, predict that a significant proportion of spending on those off-premise public, and on-premise private, cloud platforms is likely to be absorbed into hybrid cloud implementations that combine those two models into service propositions which match enterprise requirements around security, performance and availability for specific applications and workloads more closely.

Spending on off-premise, single tenanted or dedicated private cloud solutions appears to be less of a priority, selected as the cloud service which organisations were most likely to use over the course of the following year by only 12% of respondents. Off premise cloud services without the approval of the IT department represent both the type of cloud platform being least utilised currently and the configuration that the fewest number of organisations have prioritised for investment in

the future. This clearly indicates that this particular model is not judged to meet business requirements in the vast majority of cases, with most organisations in Australia, China and New Zealand evidently committed to reducing, or eliminating, current usage levels.

Page 12: EMC APAC State of Hybrid Cloud

12

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

CONCLUSION

The survey shows that organisations within Australia, China, Malaysia, New Zealand, Singapore, Indonesia and Thailand have very definite expectations around security, speed of provisioning, flexibility, cost efficiencies and device access when it comes to implementing cloud solutions, objectives which determine the cloud platforms they use currently, and those they are most likely to deploy in the future.

That off-premise public and on-premise private are the two cloud service delivery models prioritised for 2014/2015 by 79% of the survey base appears to open up a clear opportunity for hybrid cloud providers providing they offer a cost effective way to seamlessly integrate them into a secure, managed service package and/or meld multiple public cloud propositions into a single contract under a form of cloud brokerage model.

Gaining customer trust in, and familiarity with, the hybrid model appears to be the ultimate key to any success. Respondents worry that the cost and complexity of integrating off-premise public cloud services with on-premise server, storage and network architecture to support efficient migration, management and monitoring of virtual workloads between two environments that lack certified interoperability will limit hybrid cloud adoption within their organisation. Many also fear losing control of infrastructure, applications and data stored beyond the borders of their own data centres and remain unconvinced that third party hosting facilities can provide sufficient security, governance and reliability guarantees to facilitate efficient delivery of mission critical workloads.

Convincing IT departments of the merits of on-demand billing should be less problematic, though CSPs must be careful to outline all service charges up front and give stakeholders clear visibility into future provisioning costs. Many organisations within APAC countries already appear to calculate the cost of IT service provision based on granular usage of individual hardware and software elements. Cloud orientated internal charging schemes that see individual business departments

being billed for services according to their utilisation of processing, memory and storage capacity appear well embedded within most organisations, as are PaaS/SaaS related tariffing for application development and software delivery, in most cases favoured marginally above fixed allocation and software licensing schemes.

SaaS-based email and web hosting are the two applications trusted to public or hybrid clouds by the majority of organisations, whilst temporary, on demand IT resources are most likely to be provisioned in support of sales and marketing initiatives, end of period processing peaks, and the development or enhancement of new applications or services. This indicates that cloud service usage is tied closely to both regular capacity requirements at set times of the year and short term projects commissioned on an ad-hoc basis often in support of customer facing and/or revenue generating activity.

In each case, those CSPs which take the time to familiarise themselves with the usage and application requirements of individual businesses and tailor their cloud propositions to match are those most likely to win business within the target territories.

Page 13: EMC APAC State of Hybrid Cloud

13

in association with

IDG Connect is the demand generation division of International Data Group (IDG),

the world’s largest technology media company. Established in 2005, it utilises access to 38 million business decision

makers’ details to unite technology marketers with relevant targets from

any country in the world. Committed to engaging a disparate global IT audience

with truly localised messaging, IDG Connect also publishes market specific thought leadership papers on behalf of

its clients, and produces research for B2B marketers worldwide.

www.idgconnect.com

ABOUT EMC

EMC is a global leader in enabling businesses and service providers to transform their operations and deliver information technology as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyse their most valuable asset — information — in a more agile, trusted and cost-efficient way.

Built on 40,000 hours of engineering in EMC’s lab, EMC’s Enterprise Hybrid Cloud unites the strengths of private and public cloud in a single, fully interoperable solution in as few as 28 days. The solution delivers infrastructure-as-a-service, fully automated with a self-service portal for application developers and system administrators to consume IT services, through private and public clouds. It also includes operational monitoring and financial transparency enabling bill-back or show-back to the business of IT services consumption.

The EMC Enterprise Hybrid Cloud is an engineered solution with three critical elements:

1) End-to-end integration and testing2) Pre-defined infrastructure services3) Workflows to automate provisioning via self-service portal

With an open choice of Hybrid Cloud Solutions that support software suites from VMware, Microsoft and Openstack solutions, the EMC Enterprise Hybrid Cloud allows organisations to:

• Put applications in the right cloud with the right cost, security, reliability and performance, allowing movement between clouds as business needs evolve, while addressing varying SLA and security requirements.

• Respond to your business immediately by offering standardised infrastructure and application services delivery in hours rather than months.

• Enable business agility. End users can quickly test or adopt new applications, unaided and directly from an automated, self service portal. Making IT operational actions, such as scaling applications, just a click away.

• Clearly show IT’s value through financial transparency of the true costs of IT services to demonstrate value while charging business units only for what they use.

• Make your resources elastic. Automated provisioning and decommissioning allows users and administrators to add or reduce storage, compute resources, security and data protection on the fly without manual intervention. • Support today’s and tomorrow’s applications. By connecting private and public cloud resources, IT can manage traditional and next generation applications in a consistent and seamless way, enabling users to access those apps on a device of their choice.

To accelerate deployment of the EMC Hybrid Cloud, EMC offers expert workshops, consulting services and training to help customers no matter where they are in their cloud planning and deployment.

Providing performance, security, control, choice, agility and efficiency, EMC’s Enterprise Hybrid Cloud gives companies all they need to balance the workloads of today and prepare for the mobile, social and analytics applications of tomorrow.

For more information: Website: www.australia.emc.com/cloudPhone: 1800 653 565Email: [email protected]