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Enterprise Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption Cloud SentimentCloud Sentiment September 12, 2012

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Keynote presentation from Cloud Connect Chicago 2012 summarizing results from a joint Everest Group - Cloud Connect survey on enterprise cloud adoption

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Page 1: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Enterprise Stakeholders Speak:Adoption Patterns, Barriers & Post-Adoption “Cloud Sentiment”Cloud Sentiment

September 12, 2012

Page 2: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Why Do Another Cloud Survey?

•• ‘Peel back the ‘Peel back the onion’ on adoption onion’ on adoption patternspatterns Survey Respondents

100% = 346

•• Assess postAssess post--adoption reality vs adoption reality vs

Cloud Service Providers

Consultants / Advisors

buyer expectationsbuyer expectations

•• Identify cloudIdentify cloud37%

31%

Identify cloud Identify cloud market market ‘disconnects’‘disconnects’

E t i / Cl d

32%

Proprietary & Confidential. © 2012, Everest Global, Inc. 2

Enterprise / Cloud Service Buyers

Page 3: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

What Did We Look At?

Overall Enterprise Adoption PatternsOverall Enterprise Adoption Patterns• Use case •• PlatformPlatformUse case• Stack layer

Underlying Adoption DriversUnderlying Adoption Drivers

PlatformPlatform•• VerticalizationVerticalization

y g py g p• Business • Technology

DecisionDecision--Making ProcessMaking Process•• Functional involvementFunctional involvement•• Executive roleExecutive role

Adoption ResultsAdoption Results and Satisfactionand Satisfaction•• ITIT

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•• BusinessBusiness

Page 4: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Business Factors are Primary Drivers of Adoption

TOP ENTERPRISECLOUD ADOPTION DRIVERS

TOP ENTERPRISECLOUD ADOPTION DRIVERS

S d1) 1) Reduced time for application / Reduced time for application /

infrastructure provisioninginfrastructure provisioning1) 1) Reduced time for application / Reduced time for application /

infrastructure provisioninginfrastructure provisioning

CLOUD ADOPTION DRIVERSCLOUD ADOPTION DRIVERS

• Speed

• Flexibility

infrastructure provisioninginfrastructure provisioninginfrastructure provisioninginfrastructure provisioning

2)2) FlexibleFlexible capacitycapacity2)2) FlexibleFlexible capacitycapacity

3) 3) LackLack of internal of internal 3) 3) LackLack of internal of internal Flexibility

• Scale

))technical resourcestechnical resources

))technical resourcestechnical resources

4) Desire to “variabilize” cost4) Desire to “variabilize” cost

5) Reduction in TCO(Total Cost of Ownership)

5) Reduction in TCO(Total Cost of Ownership)

6) Industry-specific factors6) Industry-specific factors

Proprietary & Confidential. © 2012, Everest Global, Inc. 4

6) Industry-specific factors6) Industry-specific factors

Page 5: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

While SaaS has Driven Most Adoption to Date, IaaS is Set to Accelerate

Already adopted Adopt in distant future

Enterprise Cloud Adoption by Cloud Layer Enterprise IAAS Adoption Plans

Adopt in near future No plans to adopt

57%28%

10%5%

Software as a Service (SaaS)

No plans for cloud infrastructure

38%

31%

25%

26%

27%10%

Platform as a Service (PaaS)

48%

18%

30%

26%

36%

26%

23%

18%

11%

Public cloud (IaaS)

Private cloud (IaaS)

34%

Plan toAlready have28%

17%

27%22%

11%

23%

Business Process as a Service (BPaaS)

Plan to implement cloud

infrastructure

Already have cloud

infrastructure

Proprietary & Confidential. © 2012, Everest Global, Inc. 5

27%36%

20%Hybrid cloud (IaaS)

Page 6: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Future Adoption Plans Are Primarily Focused on Enabling Business Capabilities

Enterprise Cloud Adoption by Use Case

29% Future migration planned29%

28%

25%

17%

28%

31%

19%

24%

Application development/test environment

Custom business applicationsAlready migrated

Currently migrating

Future migration planned

No migration planned

25%

25%

16%

20%

46%

24%

13%Collaboration / email

Disaster recovery/storage/data

22%

20%

25%

42%

32%

14%

22%

Disaster recovery/storage/data archiving

E-commerce and on-line tools

19%

18%

16%

19%

39%26%

Business intelligence/analytics

ERP

Proprietary & Confidential. © 2012, Everest Global, Inc. 6

%25%

37%ERP

Page 7: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Enterprise Cloud Buyers are Satisfied

82%of cloud buyers met their

flexible infrastructure

bj ti71% of cloud buyers met their

time to marketobjectives objectives

64% were satisfied with

the current results from 88%Expect to achieve greater

benefits from cloud 64% the current results from

their cloud initiatives88%benefits from cloud

solutions in the future

Proprietary & Confidential. © 2012, Everest Global, Inc. 7

Page 8: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Cloud Vendors Think It’s About Cost. It’s Not.

TOP ADOPTION DRIVERS ACCORDING TO:

1) Reduced time for application /1) Reduced time for application /1) Reduced time for application /1) Reduced time for application /

BUYERS:BUYERS: CLOUD VENDORS:CLOUD VENDORS:

1) Reduction in TCO1) Reduction in TCO1) Reduced time for application / 1) Reduced time for application / infrastructure provisioninginfrastructure provisioning

1) Reduced time for application / 1) Reduced time for application / infrastructure provisioninginfrastructure provisioning

2) Flexible2) Flexible capacitycapacity2) Flexible2) Flexible capacitycapacity

3) L k3) L k f i t lf i t l3) L k3) L k f i t lf i t l

1) Reduction in TCO(Total Cost of Ownership)

1) Reduction in TCO(Total Cost of Ownership)

2) Flexible2) Flexible capacitycapacity2) Flexible2) Flexible capacitycapacity

3) R d d ti f li ti /3) R d d ti f li ti /3) R d d ti f li ti /3) R d d ti f li ti /3) Lack3) Lack of internal of internal technical resourcestechnical resources3) Lack3) Lack of internal of internal technical resourcestechnical resources

4) Desire to “variabilize” cost4) Desire to “variabilize” cost

3) Reduced time for application / 3) Reduced time for application / infrastructure provisioninginfrastructure provisioning

3) Reduced time for application / 3) Reduced time for application / infrastructure provisioninginfrastructure provisioning

4) Desire to “variabilize” cost4) Desire to “variabilize” cost

5) Reduction in TCO(Total Cost of Ownership)

5) Reduction in TCO(Total Cost of Ownership)

6) Industry-specific factors6) Industry-specific factors

5) Lack5) Lack of internal of internal technical resourcestechnical resources5) Lack5) Lack of internal of internal technical resourcestechnical resources

6) Industry-specific factors6) Industry-specific factors

Proprietary & Confidential. © 2012, Everest Global, Inc. 8

Page 9: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Vendors Think Management Buy-In is a Problem. Are They Talking to the Right People?

TOP ADOPTION BARRIERS ACCORDING TO:TOP ADOPTION BARRIERS ACCORDING TO:

1) Security concerns1) Security concerns1) Security concerns1) Security concerns

BUYERS:BUYERS: CLOUD VENDORS:CLOUD VENDORS:

1) Security concerns1) Security concerns1) Security concerns1) Security concerns1) Security concerns1) Security concerns1) Security concerns1) Security concerns

2) 2) Cloud service iCloud service integrationntegration2) 2) Cloud service iCloud service integrationntegration

3) Lack3) Lack of budget for of budget for nnew ew iinitiativesnitiatives3) Lack3) Lack of budget for of budget for nnew ew iinitiativesnitiatives

1) Security concerns1) Security concerns1) Security concerns1) Security concerns

2) 2) Cloud service iCloud service integrationntegration2) 2) Cloud service iCloud service integrationntegration

3) Lack of management buy-in3) Lack of management buy-in

4) Lack of suitable cloud solutions4) Lack of suitable cloud solutions

5) Lack of internal cloud expertise5) Lack of internal cloud expertise

) g y) g y

44) Lack) Lack of budget for of budget for nnew ew iinitiativesnitiatives44) Lack) Lack of budget for of budget for nnew ew iinitiativesnitiatives

5) Lack of internal cloud expertise5) Lack of internal cloud expertise

7) Lack of management buy-in7) Lack of management buy-in

5) Lack of internal cloud expertise5) Lack of internal cloud expertise

6) Fear of vendor lock-in6) Fear of vendor lock-in

5) Lack of internal cloud expertise5) Lack of internal cloud expertise

7) Fear of vendor lock-in7) Fear of vendor lock-in

6) Lack of suitable cloud solutions6) Lack of suitable cloud solutions

Proprietary & Confidential. © 2012, Everest Global, Inc. 9

7) Lack of management buy-in7) Lack of management buy-in 7) Fear of vendor lock-in7) Fear of vendor lock-in

Page 10: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

Many Cloud Vendors are Misaligned with the Market

How the Enterprise How the Enterprise is is BuyingBuying…

sine

ss

‘Innovators’ ‘Transformers’

Leveraging cloud and next generation IT to create new, disruptive business

Deploying SaaS and PaaS solutions to rapidly provide new business capabilities,

Bus

Driv

er

‘‘Opportunists’Opportunists’ ‘Modernizers’

, pmodels and strategic business advantage

new business capabilities, and extend reach, with little or no IT involvement

IT

D OpportunistsOpportunists Modernizers

Selectively deploying PaaS and IaaS (public and private) solutions to drive improvements in agility and

Driving wide-scale IT modernization and transformation efforts through public private and

How Vendors How Vendors areare SellingSelling……

TransformationalIncremental

improvements in agility and cost

through public, private and hybrid cloud platforms

Proprietary & Confidential. © 2012, Everest Global, Inc. 10

Adoption Approach

Page 11: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

What Did We Learn?

11 B i ( t IT) i th P iB i ( t IT) i th P i1.1. Business (not IT) is the Primary Business (not IT) is the Primary Driver of Enterprise Cloud AdoptionDriver of Enterprise Cloud Adoption

2.2. Enterprise Buyers are Pretty Happy Enterprise Buyers are Pretty Happy -- So Far….So Far….So Far….So Far….

3.3. Service Providers Need to Adapt to Service Providers Need to Adapt to the ‘Next Generation Buying Center’the ‘Next Generation Buying Center’

Proprietary & Confidential. © 2012, Everest Global, Inc. 11

Page 12: Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption 'Cloud Sentiment

How To Get a Copy of the Full Survey

http://www1.everestgrp.com/ccevent.htmlDownload at:1

2 Request a copy:[email protected]@everestgrp.com512-550-0207 (m)214-451-3043 (o)

Proprietary & Confidential. © 2012, Everest Global, Inc. 12