the true state of cloud adoption

The True State of Cloud AdoptionJames Staten, VP and Principal AnalystCharlie Dai, Principal Analyst

The True State of Cloud – Q4 20131. Most cloud adoption is Public and driven by the business, not IT

• Empowered developers, business units driving public cloud use• Heaviest investments are in SaaS• Majority of cloud platform apps are “systems of engagement,” SaaS integrations

2. Private clouds remain a work in progress• 32% of APAC enterprise IT shops prioritized it in 2013

• But their efforts are slow and mostly cloud-washed virtualization• Higher adoption of Virtual Private Clouds than internal clouds

3. Hybrid cloud is now, not future• Hybrid cloud = a cloud service connected to anything• Not just public cloud + private cloud• Key question: Is your strategy starting from this reality?

2010 (Actual) 2011 (Actual) 2012 (Actual) 2013* 2014+ **0%

10%

20%

30%

40%

50%

60%

70%

IaaSPaaSSaaS

“What are your firm’s plans to adopt the following as-a-service technologies?”(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”

“planning to implement in the next 12 months,” or “planning to implement in a year or more”)

APAC is approx. 12 months behind in

adoption

Base: 2,200 to 2,444 IT software decision-makers US & EuropeSource: Forrsights Software Survey, Q4 2012

Cloud adoption is accelerating

*Planning to implement in the next 12 months**Planning to implement in a year or more

© 2013 Forrester Research, Inc. Reproduction Prohibited 4

“What are your firm’s plans to adopt the following as-a-service technologies?”

Enterprises are adopting cloud faster

By the end of 2013, about 40% of all companieswill be using IaaS (50% by 2014!)

Base: 2,200 to 2,444 IT software decision-makersSource: Forrsights Software Survey, Q4 2012

SaaSIaaSPaaS

China will be a key engine of this growth

Source: Forrester Research Inc., December 2011

$ millions Virtual private cloud services evolved from a traditional managed model and will also gain market momentum in China moving forward.

Public cloud services will reach $40.8 billion globally and $3.83 billion in China by 2020.

Public cloud services will reach $40.8 billion globally and $3.83 billion in China by 2020.

The Chinese government’s cloud strategy› 14 provinces have announced cloud data center projects.

• Investments range from $794 million to $3.2 billion• Initial data center sizes are mostly above 10,000 to 50,000 m2

› 5 pilot cities: Beijing, Shanghai, Shenzhen, Hangzhou and Wuxi; transportation, eGovernment, and healthcare are top categories.

• Beijing: IaaS/PaaS (serving large enterprises to SMEs)• Shanghai: IaaS, healthcare• Wuxi: IaaS/SaaS/testing cloud

› Government/enterprise collaboration model:• Local cloud service companies• District government direct investment• Telecom operators• Revenue-sharing model

› Local government incentives: focus on public cloud projects, get:• Benefits on land, tax, and energy

Provinces with announced cloud projects

Ability to substitute upfront costs with regular monthly payments

Iterative deployment model suports a higher level of innovation within the business

Gaining a feature or functionality that is not available in a traditional, licensed software package

To support a large number of mobile and remote users

Support business innovation with new capabilities

Improved business agility

Speed of implementation and deployment

42%42%

45%48%49%49%

53%56%

63%65%

69%69%

72%Agility and

speed

Why enterprises are leveraging cloud services: Speed“How important were the following benefits in your firm’s decision to use cloud services?”

(Respondents who reported “Important factor” or “Very important factor”)

Source: Forrsights Software Survey, Q4 2012Base: 1,429 software decision-makers at firms who are using or planning to use SaaS

Cost is secondary


Base: 124 North American and European enterprise software developers using cloud; Source: Forrsights Developer Survey, Q1 2013

Integrations, mobile, and intranet apps are most common

“Which of the following types of applications are you currently developing using cloud environments or have you delivered in a cloud environment in the past 12 months?” (Select all that apply)

eCommerce site

Marketing site

Batch jobs

Social computing/collaboration

A new business service

High-performance computing

Application testing and QA

Corporate intranet

Internal web business applications

Mobile sites/applications

Application integration

22%

22%

23%

25%

25%

26%

31%

35%

36%

38%

40%


Base: North American and European enterprise software developers; Source: Forrsights Developer Survey, Q1 2013

Cloud developers favor open source technologies“Which of the following classes of open source software tools/frameworks have you used for development or deployment in the past

12 months?” (Select all that apply)

Other (please specify)Have not used open source software

Management and monitoring (e.g., Nagios, Cacti, Shinken)Release/deployment management tools (e.g., Chef, Cf Engine, Puppet)

NoSQL DBMSes (e.g., Apache Hadoop, MongoDB, Riak, Couchbase)Business applications (Sugar CRM, Bravo)

Portals or mashup servers (e.g., Liferay, JBoss Portal, eXo)Business intelligence tools (e.g., BIRT, Jasper Reports, Spago)

SCM tools (e.g., Git, Subversion, Mercurial)Content management systems (e.g., Alfresco, Drupal)

Application frameworks (e.g., Spring, Rails, Zend)Build and release management tools (e.g., Hudson/Jenkins, Maven, Ant)

Application server (e.g., JBoss, Tomcat)Development IDEs (e.g., Eclipse, NetBeans)

Relational DBMSes (e.g., MySQL, PostgreSQL, SQLite)Web servers (e.g., Apache, nginx)

Operating systems (e.g., Red Hat Linux, Suse, Android)

4%

31%3%4%5%

3%3%

6%16%

6%10%

16%22%

35%32%32%

33%

2%3%

20%20%21%21%

22%24%

26%30%

31%35%

45%54%

57%58%

66%

Using cloud computing/elastic applications (N = 125)

Not using cloud computing/elastic applications (N = 572)


OpenStack trending in China› Awareness of OpenStack is strong in China

thanks to COSUG (China OpenStack User Group)

• OpenStack users: Sina, Baidu, NetEase, Game Wave, JD (360Buy), AutoNavi and PubYun

• Solution builders: Aliyun, Tencent, UnitedStack

• Service providers: Sina working to consolidate OpenStack with SAE (highest contribution to OpenStack project in China, supporting Sina Weibo)

• China Telecom and China Unicom doing research in their internal R&D and strategy teams. China Telecom officially started evaluating OpenStack since 2011

Traffic on docs.openstack.org

Source: COSUG, as of 2012

http://www.163.com/

http://www.gamewave.net/

http://www.autonavi.com/

http://www.pubyun.com/


Wide expectations for OpenStack in China

24%

22%

17%

12%

10%

7%

6%

2%

If you are considering using OpenStack, why?

OpenStack is open source

Meeting the needs of server virtualization to hopefully replace other commercial solutions like Vmware

Providing complete IaaS solutions

Can be applied to private cloud solutions

The OpenStack community support is excellent

Can be applied to public cloud solutions

Meeting the demand for cloud storage

Other

Source: COSUG, 150 cloud/virtualization practitioners in China 2012

Data protection

IPBCDR

PIIQoS

Privacy

5% 10% 15% 20% 25% 30% 35% 40%0%

10%

20%

30%

40%

We are confused about the vendor offering and what is really being delivered

as-a-service

We cannot manage secu-rity to our strict standards

We cannot manage compliance and risk to

our strict standards

Our legacy applications cannot be moved to a pub-

lic cloud infrastructure

We cannot find SaaS applications that meet

our needs

We cannot figure out how to set up a contract that

fully protects us

We are not comfortable with volatile per-use pric-

ing models

We do feel the technol-ogy/model is not fully

mature

We do not want to use small startup vendors

We have not fully depre-ciated our current hard-

ware/software

We do not have the vendor management expertise to

effectively govern the suppliers

It's not clear whether pub-lic as-a-service offerings can be used as a substi-tute or replacement for traditional IT services/

outsourcing

Business concerns

IT concerns

Source: Forrsights Business Decision-Makers Survey, Q4 2012, Base: 2,192 enterprise business decision-makers Source: Forrsights Services Survey, Q3 2013, Base: 1,050 enterprise IT services decision-makers

And the business often doesn’t know (or care) about the risks

“What is preventing your firm from using/using more public as-a-service offerings?”


“We have no formal [cloud] strategy/approach”

“We are executing on a formal [cloud] migration plan”

Base: : 1,058 enterprise IT services decision-makers ;*1,050 enterprise IT services decision-makers

“How would you describe your approach to using [cloud] services, today and in 12 months?”

Source: Forrsights Services Survey, Q3 2012 & Q3 2013*

IT Ops is beginning to take control of the cloud strategy

2012 2013 2014

38%

21%

12%

2012 2013 2014

10%

24%

28%

IT priority in the next 12 months: Create a comprehensive strategy and implementation plan

for public cloud and other as-a-service offerings

High 34%; Critical 21%

The cloud evolutionary paths are independent of each other


Business service over cloud is most popular scenario

33%

28%

26%

12%

1%

If you and your company is considering using OpenStack program, in which aspects do you want it to serve you?

Considering using OpenStack to make private cloud / public cloud solution, in order to provide my clients with business OpenStack services.

No plan, being learning the OpenStack architecture and technology

Considering using OpenStack to build the internal vir-tualized or private cloud system in our company

Considering using OpenStack to build public IaaS cloud platform in our company, so as to provide IaaS service for the public.

Other



Nearly half of OpenStack projects in China are making substantial progress

51%

26%

16%

7%

How is your OpenStack project progressing, or how is it progressing in your team or company?

At the beginning of understanding; make little progress

Having begun internal testing

Already very familiar with OpenStack, under active development

Having begun online operations

Source: COSUG, around 105 (150*69%) cloud/virtualization practitioners in China using OpenStack 2012


CloudStack, not a distribution of itPiston Cloud

EgeneraHuawei

ASGOpenStack, not a distribution of it

EucalyptusMorphlabsCanonicalEmbotics

NebulaVCE

RackspaceSUSEBMC

CATibco

Custom/in-house solutionRedHat

DellCitrix

HPIBM

CiscoMicrosoftVMware

1%1%

2%2%

3%3%

4%4%

5%5%

6%6%

7%7%

8%9%9%9%

10%13%

23%25%

32%33%

34%40%

Source: Forrsights Hardware Survey, Q3 2013 Base: 244 North American and European IT decision makers at enterprise firms with 1,000 or more employees that are using/planning to use internal private cloud

Which internal private cloud vendor do you use?

VMware-based

Unique platform

OpenStack

CloudStack

Eucalyptus

Custom

Collectively, Open Stack is the most popular choice


OpenStack trends in ChinaVisionary local technology vendors are using OpenStack

• Companies in non-Internet industries is gaining knowledge and experience

› End users in traditional industries are tracking global trends in IaaS to enable their IT infrastructure for business transformation

LocalCompanies

ChineseName Briefing

华为 Telecom equipment manufacturer and service provider

海辉 IT outsourcing service provider (merged as Pactera)

中标软件 Operation system and OA software ISV

广联达 IT service provider in construction industry

http://www.huawei.com/

http://www.hisoft.com/

http://www.cs2c.com.cn/

http://www.glodon.com/


Lack of professional training and poor ease of use are major concerns of end users to adopt OpenStack

18%

4%

27%31%

19%

1%

Which of the following factors would be your concerns to adopt OpenStack?

Difficult to recruit OpenStack talents

OpenStack technology or architecture is not good enough

OpenStack is not friendly to end users

Lack of professional training of OpenStack results in the slow progress

Lack of professional OpenStack service support

Other


Recommendations› Engage your empowered leaders

• Understand the business reasons for their actions

• Identify the next steps that will help them be more successful

› Determine how IT can help• Don’t go it alone • Work with companies with more cloud

experience, who can accelerate your success

• Give the business what it is looking for

› The cloud is not a threat to IT• It’s part of your portfolio

Get cloud right

Traditional Outsourcing

The hybrid end game

VirtualInternal cloud

Decision treeWorkload management

GRC

Public cloud

Virtualhosting

CapEx

CommonCustom

OpEx Flexible OpEx

TransientFixed

MeteredOwned

Physical

Common

Transient

Metered

Custom

Fixed

Owned

Thank youJames [email protected]@staten7

Charlie [email protected]@CharlieKunDai

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