generating demand: a summary on enterprise it buying in the early cloud era
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Generating Demand: A Summary on Enterprise IT Buying in the Early Cloud Era February 2011
© All Rights Reserved
© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Goals and Methods • To inform demand generation programs by
understanding penetration, concerns and motivators, apps and IT strategies, buying habits and partner involvement, and future plans
• Large and medium-sized enterprises to understand key differences among 3 segments: ▫ Pioneers: Using or testing a cloud
solution ▫ Planners: Planning for a cloud solution ▫ Stragglers: Not planning a cloud
solution at this time • Study characteristics • IT decision-makers – IT VPs, Directors • Sample size = 126 • Data collected Summer 2010 • Developed in partnership between Winn
Technology Group & WaveLength Market Analytics
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Executive Summary • Goals & Methods: To inform demand generation programs by
understanding penetration, concerns and motivators, apps and IT strategies, buying habits and partner involvement, and future plans
• Many Technology Segments Competing for the Customer • Cloud Market Adoption & Penetration ▫ 41% are Pioneering with their Cloud Apps, and another 17% are actively planning
meaning, 58% are doing “something” in the Cloud while the rest are Stragglers ▫ Pioneers already outsource more than Planners and far more than Stragglers ▫ Most common models: private Clouds and PaaS ▫ Cloud apps not yet mission critical ▫ Pioneers mostly migrate legacy apps
• Moving the Market: Motivators & Barriers ▫ Top motivators: cost cutting & speedy application deployment ▫ Reduced control is top security concern for Pioneers ▫ Experience with Cloud has shown more to worry about over network
performance than security, as…Pioneers find network delays a bigger concern than security
▫ Network is underlying infrastructure getting most Evaluation… from all market segments
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Executive Summary • Going to Market ▫ In selecting partner for Cloud services, professional services is most critical for
both Pioneers and Planners ▫ Buying behaviors typical of shifting market: high involvement of top
management & trusted 3rd parties ▫ Planners involve more tech segments than Pioneers in Cloud implementation ▫ … But, overwhelmingly system integrators most important partner for Pioneers
while its software for Planners ▫ Brand, ability to manage, application features/functions, monitored service
levels will become key service differentiators ▫ Generating demand will require fewer, but more substantive partners
• Enter the Early Cloud Era… ▫ Many say ROI & deployment speed expectations not met…yet still Pioneers are
largely satisfied with their Cloud solution ▫ No turning back…Pioneers and Planners both estimate that around 30% of their
IT will be in Cloud By 2015 ▫ For every enterprise, no longer a question of If… only when, what, and how? ▫ Simple tips for generating demand during the early Cloud era: target the right
audience with the right message
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Many Technology Segments Competing for the Customer
Software Vendors
Hardware Vendors
Telecom Service
Providers
Managed Services/IT Outsourcing
Providers
Systems Integrators
IT as a Service
Cloud Services-enabling Products & Services Consulting & Professional Services for Cloud
Communications as a Service
= Business model re-alignment and sales channel challenges for entire industry
Software as a Service
Pure Cloud Vendors
© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Shift to Cloud Architectures Well-Underway En
terp
rise
Clo
ud
Pene
trat
ion
• Although degree of penetration into IT is unknown, more enterprises implementing or planning “something” in the cloud than those that are not
• Enterprises don’t want to be left behind
• Cloud Pioneers profile: • Large, publicly traded or private
company • Higher than average number of
remote workers or many smaller branch offices
• Higher than average number of mobile workers
Adop
tion
& P
lann
ing • Cloud apps are those that were
“born” of the Internet, such as email, collaboration, and customer relationship management
• Mission-critical enterprise cloud apps nowhere on the horizon
• Continuum of clouds will exist, as some clouds more suited to certain apps than others
• Public clouds & hybrids models are closer than they appear
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Brand, Ability to Manage, Application Features & Functions, Monitored Service Levels Will Become Key Service Differentiators Ch
anne
ls
• Imperative to own the customer had never been stronger • Hardware & network companies will be increasingly under pressure as the primary
decision-maker changes from the enterprise to the enterprise’s data center partner, but brand can become an important component of the apps or data center’s service sale
• Telcos need to avoid the temptation of rapidly entering the market with large systems integrator/IT outsourcing partners that will ultimately compete with them
• All vendors interests would be well-served by educating their best channel sales partners
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Generating Demand Will Require Fewer, but More Substantive Partners
Tech
nolo
gy
Part
ners
hips
• Cloud is mostly about application delivery, so the strong role of software vendors is not surprising
• Storage and app vendor partnerships will be increasingly important • Server and network vendors would be well-served by developing
closer relationships with application vendors • Network hardware vendors can best support their telco customers
in service delivery by avoiding direct competition with them • Integrators, consultants, and other distribution partners needs to
development cloud services management capabilities
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
For Every Enterprise, No Longer a Question of If… Only When, What, and How?
• For Pioneers, adopting cloud to stretch IT dollars…. • Even as cloud solution falls short of
ROI & speedy deployment expectations • And Still satisfied
• For Planners who plan more advanced cloud models bringing new & legacy apps to the cloud • For Stragglers with NO cloud plans, but
expect 11% of IT to be in the cloud in a few years
• Welcome to the vida loca in the Early Cloud Era
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© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
Simple Tips for Generating Demand During the Early Cloud Era
Target the Right Audience
Don’t bother with organizations with fewer than 1000 employees at this
point in the market
Enterprises with high levels of outsourcing, & key technologies like SANs, server & storage virtualization
Educate & partner with your best solution partners
Don’t ignore enterprise’s top business management
Use the Right Message
Position your message as to how your solution addresses and helps remote
and mobile workers
Make sure you highlight your professional services capabilities and
strengths
Address motivators as speed of deployment and cost reduction
Address concerns of security risks, reduced control, & network
performance
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WaveLength Market Analytics LLC www.wlanalytics.com 415.579.7030 © All Rights Reserved
Thank you
Winn Technology Group www.winntech.net
727-789-0006