Hosting and Cloud Study 2015 Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud Service Providers Survey Results
Hosting and Cloud Study 2015Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud Service Providers Survey Results
N=1,316
S2a. Which of the following categories best describes your organization's expected annual revenue for 2015? ($US)
Demographics
S1. Which department do you work in at your organization?
Application Development,
17%
IT Ops & Admin, 76%
Marketing, 7%
Respondents by Department
N=1,736
78%
77%
69%
65%
53%
50%
0% 20% 40% 60% 80% 100%
I make IT purchasing recommendations
I am influential in IT decisions and strategy
I manage relationships with 3rd party IT
providers
I have significant decision making authority
regarding IT
I build or maintain IT systems
I develop or maintain IT software
% of Respondents
Respondents by Role
Page 2
USA 53%
UK 8%
Germany 9%
India 7%
Brazil 6%
Page 3
Worldwide Sample Size n=1,73610 Countries Represented
Netherlands 2%
Turkey 3%
Japan 4%
Singapore 3%
Australia 5%
BUDGET BY HOSTING SERVICES TYPE
©2014 451 Research LLC. All rights reserved. Page 4
©2014 451 Research LLC. All rights reserved.
S7a. Which –if any – of the following IT services does your organiza<on currently buy from service providers today? [Must select 2-‐Hos<ng Services, else terminate]
60%
45%
44%
28%
62%
46%
45%
32%
62%
37%
46%
19%
55%
49%
41%
25%
55%
53%
44%
24%
44%
44%
42%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
HosRng Services/IaaS
SoTware-‐as-‐a-‐Service
Outsourcing Services
PlaXorm-‐as-‐a-‐Service
ColocaRon Services
% of Respondents
Total (n=1736)
North America (n=926)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
Page 5
IT Services Currently Acquired
©2014 451 Research LLC. All rights reserved.
S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%]
Page 6
43%
40%
33%
35%
12%
13%
11%
11%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Current
In 2 Years
% of IT Budget
On-‐Premises Infrastructure & Staff HosRng Services SaaS Other Off Premises services
n=1617
Current versus Future Budget Allocation
©2014 451 Research LLC. All rights reserved.
S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%]
Page 7
43%
43%
44%
43%
40%
40%
33%
32%
34%
35%
36%
40%
12%
14%
11%
11%
10%
9%
11%
11%
11%
12%
14%
11%
0% 20% 40% 60% 80% 100%
Total (n=1617)
North America (n=807)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
% of IT Budget
Current IT Budget AllocaBon On-‐Premises Infrastructure & Staff
HosRng Services SaaS Other Off Premises services
40%
41%
41%
41%
37%
40%
35%
33%
37%
37%
39%
41%
13%
15%
12%
11%
11%
9%
11%
11%
11%
11%
13%
11%
0% 20% 40% 60% 80% 100% % of IT Budget
Future IT Budget AllocaBon On-‐Premises Infrastructure & Staff HosRng Services SaaS Other Off Premises services
Current versus Future Budget by Region
©2014 451 Research LLC. All rights reserved.
S10. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%]
Page 8
38%
34%
34%
36%
27%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Current
In 2 Years
% of On-‐Premise Infrastructure Spending
Standalone non-‐virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated)
n=1576
Infrastructure Spending On-‐Premise
©2014 451 Research LLC. All rights reserved.
S10. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%]
Page 9
38%
38%
39%
39%
34%
41%
34%
34%
34%
35%
37%
35%
27%
28%
27%
26%
29%
24%
0% 20% 40% 60% 80% 100%
Total (n=1576)
North America (n=791)
Europe (n=325)
Asia (n=312)
South America (n=101)
MEA (n=47)
% of On-‐Premise Infrastructure Spending
Current On-‐Premise Infrastructure Spending Standalone non-‐virtualized infrastructure
Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated)
34%
33%
34%
36%
33%
38%
36%
36%
36%
37%
37%
32%
30%
31%
30%
27%
31%
30%
0% 20% 40% 60% 80% 100% % of On-‐Premise Infrastructure Spending
Future On-‐Premise Infrastructure Spending
Standalone non-‐virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated)
Current versus Future On-‐Premise Spending by Region
©2014 451 Research LLC. All rights reserved.
I1. Approximately, what percent of your current off premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your off premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%]
Page 10
35%
33%
25%
29%
17%
18%
22%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Current (n=1604)
In Two Years (n=1569)
% of Off-‐Premise Infrastructure Spending
Dedicated Servers Hosted Private Cloud
Public Cloud Basic Website HosRng
n=1576
Infrastructure Spending Off-‐Premise
©2014 451 Research LLC. All rights reserved.
I1. Approximately, what percent of your current off premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your off premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%]
Page 11
35%
37%
36%
35%
31%
28%
25%
26%
24%
25%
31%
24%
17%
17%
17%
18%
14%
22%
22%
20%
23%
23%
24%
26%
0% 20% 40% 60% 80% 100%
Total (n=1604)
North America (n=797)
Europe (n=331)
Asia (n=323)
South America (n=103)
MEA (n=50)
% of Off-‐Premise Infrastructure Spending
Current Off-‐Premise Infrastructure Spending
Dedicated Servers Hosted Private Cloud Public Cloud Basic Website HosRng
33%
34%
32%
33%
30%
27%
29%
29%
30%
27%
33%
27%
18%
18%
18%
19%
15%
23%
19%
18%
20%
20%
22%
23%
0% 20% 40% 60% 80% 100% % of Off-‐Premise Infrastructure Spending
Future Off-‐Premise Infrastructure Spending
Dedicated Servers Hosted Private Cloud
Current versus Future Off-‐Premise Spending by Region
©2014 451 Research LLC. All rights reserved.
H2. Approximately what percent of your HOSTING & CLOUD SERVICES budget in 2015 is allocated to the following services? [Sum to 100] H3. Now thinking out two years, approximately what percent of your HOSTING & CLOUD SERVICES budget will be allocated to the following services? [Sum to 100%]
Page 12
31%
27%
21%
21%
Current % HosBng/Cloud Services Budget AllocaBon
Infrastructure HosRng
ApplicaRon HosRng
Managed Services
Security Services
31%
27%
21%
21%
Future % HosBng/Cloud Services Budget AllocaBon
n=1600 n=1593
Hosting Budget by Services Type: Today and in Two Years
MANAGED SERVICES
©2014 451 Research LLC. All rights reserved. Page 13
©2014 451 Research LLC. All rights reserved.
M1. Which of the following managed services –if any -‐-‐ will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years?
68%
54%
47%
47%
45%
44%
42%
37%
23%
5%
0% 10% 20% 30% 40% 50% 60% 70%
Backup and Recovery
Disaster Recovery/Site Recovery
ApplicaRon development tools & plaXorms
Mobile Services
Premium 24 x 7 support services
Archiving
End to End ApplicaRon management including monitoring and configuraRon
Capacity Planning
CDN/Media Streaming
None
% of Respondents
Page 14
n=1619
Managed Services: Spending Over Next Two Years
©2014 451 Research LLC. All rights reserved.
M1. Which of the following managed services –if any -‐-‐ will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Backup and Recovery
Disaster Recovery/Site Recovery
ApplicaRon development tools & plaXorms
Mobile Services
Premium 24 x 7 support services
Archiving
End to End ApplicaRon management including monitoring and configuraRon
Capacity Planning
CDN/Media Streaming
None
% of Respondents
North America (n=809)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
Page 15
Managed Services: Spending by Region Over Next Two Years
©2014 451 Research LLC. All rights reserved.
M1. Which of the following managed services –if any -‐-‐ will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Backup and Recovery
Disaster Recovery/Site Recovery
ApplicaRon development tools & plaXorms
Mobile Services
Premium 24 x 7 support services
Archiving
End to End ApplicaRon management including monitoring and configuraRon
Capacity Planning
CDN/Media Streaming
None
% of Respondents
Discovery and EvaluaRon (n=214)
Running Trials/Pilot Projects (n=289)
ApplicaRon Test and Development (n=514)
IniRal ImplementaRon (n=357)
Broad ImplementaRon (n=239)
Page 16
Managed Services: Spending by Maturity Over Next Two Years
APPLICATION HOSTING
©2014 451 Research LLC. All rights reserved. Page 17
©2014 451 Research LLC. All rights reserved.
A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years?
57%
54%
49%
45%
43%
41%
39%
38%
36%
30%
4%
0% 10% 20% 30% 40% 50% 60%
Database
Business applicaRons: includes ERP, CRM, industry-‐specific applicaRons
Virtual Desktop HosRng/ VDI
Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon
AnalyRcs: Includes Business Intelligence, Data mining, Big Data
Ecommerce Website HosRng and advanced funcRonality
Unified CommunicaRons (Voice, Chat, Video Conferencing)
CollaboraRve applicaRons such as workgroup, IM
Media Streaming
None
% of Respondents
Page 18
n=1619
Application Hosting: Spending Over Next Two Years
©2014 451 Research LLC. All rights reserved.
A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Database
Business applicaRons: includes ERP, CRM, industry-‐specific applicaRons
Virtual Desktop HosRng/ VDI
Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon
AnalyRcs: Includes Business Intelligence, Data mining, Big Data
Ecommerce Website HosRng and advanced funcRonality
Unified CommunicaRons (Voice, Chat, Video Conferencing)
CollaboraRve applicaRons such as workgroup, IM
Media Streaming
None
% of Respondents
North America (n=809)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
Page 19
Application Hosting: Spending by Region Over Next Two Years
©2014 451 Research LLC. All rights reserved.
A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Database
Business applicaRons: includes ERP, CRM, industry-‐specific applicaRons
Virtual Desktop HosRng/ VDI
Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon
AnalyRcs: Includes Business Intelligence, Data mining, Big Data
Ecommerce Website HosRng and advanced funcRonality
Unified CommunicaRons (Voice, Chat, Video Conferencing)
CollaboraRve applicaRons such as workgroup, IM
Media Streaming
None
% of Respondents
Discovery and EvaluaRon (n=214)
Running Trials/Pilot Projects (n=289)
ApplicaRon Test and Development (n=514)
IniRal ImplementaRon (n=357)
Broad ImplementaRon (n=239)
Page 20
Application Hosting: Spending by Maturity Over Next Two Years
SECURITY SERVICES
©2014 451 Research LLC. All rights reserved. Page 21
©2014 451 Research LLC. All rights reserved.
E1. Which of the following security services – if any -‐-‐ will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years?
46%
45%
43%
42%
36%
35%
35%
33%
33%
31%
29%
29%
29%
26%
25%
4%
0% 10% 20% 30% 40% 50% 60% 70%
Endpoint Security
EncrypRon of ConfidenRal Data Stored in the Cloud
Web ApplicaRon Firewall (WAF)
Advanced AnR-‐malware/AnR-‐APT
Security InformaRon & Event Management (SIEM) and Logging/Event Management
IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management
Vulnerability Assessment
Data Sovereignty/Data Residency
Endpoint or Network Data Leakage PrevenRon (DLP)
Computer/Network Forensics Support/Breach Response
IT GRC -‐ Governance, Risk, Compliance
AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service
Auditability capabiliRes -‐ environment can be audited by security teams
Liability Guarantees/Insurance in event of a breach or loss
None
% of Respondents
Page 22
n=1619
Security Services: Spending Over Next Two Years
©2014 451 Research LLC. All rights reserved.
E1. Which of the following security services – if any -‐-‐ will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70%
Endpoint Security
EncrypRon of ConfidenRal Data Stored in the Cloud
Web ApplicaRon Firewall (WAF)
Advanced AnR-‐malware/AnR-‐APT
Security InformaRon & Event Management (SIEM) and Logging/Event Management
IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management
Vulnerability Assessment
Data Sovereignty/Data Residency
Endpoint or Network Data Leakage PrevenRon (DLP)
Computer/Network Forensics Support/Breach Response
IT GRC -‐ Governance, Risk, Compliance
AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service
Auditability capabiliRes -‐ environment can be audited by security teams
Liability Guarantees/Insurance in event of a breach or loss
None
% of Respondents
North America (n=809)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
Page 23
Security Services: Spending by Region Over Next Two Years
©2014 451 Research LLC. All rights reserved.
E1. Which of the following security services – if any -‐-‐ will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years?
0% 10% 20% 30% 40% 50% 60% 70%
Endpoint Security
EncrypRon of ConfidenRal Data Stored in the Cloud
Web ApplicaRon Firewall (WAF)
Advanced AnR-‐malware/AnR-‐APT
Security InformaRon & Event Management (SIEM) and Logging/Event Management
IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management
Vulnerability Assessment
Data Sovereignty/Data Residency
Endpoint or Network Data Leakage PrevenRon (DLP)
Computer/Network Forensics Support/Breach Response
IT GRC -‐ Governance, Risk, Compliance
AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service
Auditability capabiliRes -‐ environment can be audited by security teams
Liability Guarantees/Insurance in event of a breach or loss
None
% of Respondents
Discovery and EvaluaRon (n=289)
Running Trials/Pilot Projects (n=514)
ApplicaRon Test and Development (n=357)
IniRal ImplementaRon (n=239)
Broad ImplementaRon (n=50)
Page 24
Security Services: Spending by Maturity Over Next Two Years
HYBRID CLOUD
©2014 451 Research LLC. All rights reserved. Page 25
©2014 451 Research LLC. All rights reserved.
I6. Has your organiza<on configured any of the following clouds for interoperability for the seamless delivery of a business func<ons? Check all that apply
63%
45%
32%
75%
40%
26%
64%
45%
26%
59%
51%
32%
62%
41%
34%
63%
41%
38%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
On premises PRIVATE cloud with a HOSTED PRIVATE cloud
On premises PRIVATE cloud with a PUBLIC cloud
HOSTED PRIVATE cloud with a PUBLIC cloud
% of Respondents
Total (n=1419)
Discovery and EvaluaRon (n=166)
Running Trials/Pilot Projects (n=244)
ApplicaRon Test and Development (n=466)
IniRal ImplementaRon (n=326)
Broad ImplementaRon (n=214)
Page 26
Hybrid Cloud: Interoperability by Maturity
©2014 451 Research LLC. All rights reserved.
I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year?
Page 27
32%
50%
18%
0.4%
Current Public to Private Cloud MigraBon
No
Yes, to a HOSTED PRIVATE cloud environment Yes, to an ON-‐PREMISE cloud environment
Don't know
29%
52%
19%
1%
Future Public to Private Cloud MigraBon
n=1419
Hybrid Cloud Migration by Type
©2014 451 Research LLC. All rights reserved.
I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year?
Page 28
31% 39%
29% 29% 26%
49% 46%
53% 58% 51%
19% 15% 18% 13% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
North America (n=712)
Europe (n=295)
Asia (n=278)
South America (n=91)
MEA (n=43)
% of R
espo
nden
ts
Current Public to Private Cloud MigraBon by Region
Don't know
Yes, to an ON-‐PREMISE cloud environment
Yes, to a HOSTED PRIVATE cloud environment
No
29% 35% 28%
18% 19%
50% 48% 55%
64% 58%
20% 17% 16% 19% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
North America (n=712)
Europe (n=295)
Asia (n=278)
South America (n=91)
MEA (n=43)
% of R
espo
nden
ts
Future Public to Private Cloud MigraBon by Region
Hybrid Cloud Migration by Type and Region
©2014 451 Research LLC. All rights reserved.
I9. What is the primary driver for migra<ng workloads from a PUBLIC to PRIVATE environment? (Select One)
Page 29
35%
14% 19%
17%
8%
7%
0.2%
Security
Lower Cost
Bemer Control by our IT teams
Performance
Customer service
Part of a Shadow IT centralizaRon
Other n=1089
Hybrid Cloud Migration Drivers
VENDOR SELECTION
©2014 451 Research LLC. All rights reserved. Page 30
©2014 451 Research LLC. All rights reserved.
D2. What [will be/was] your most significant project or investment in hosBng [be in the next year/recently?] [Check all that apply]
Page 31
22% 26% 20% 21%
33% 30%
32% 38%
17% 19%
15%
19%
26% 21% 31%
19%
2% 3% 2% 2%
Total (n=349) Dedicated Servers (n=99) Hosted Private Cloud (n=198) Public Cloud (n=52) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Other
Security Services
Managed Services
ApplicaRon HosRng
Infrastructure HosRng
Significant Hosting Project by Deployment Model
©2014 451 Research LLC. All rights reserved.
D4. How many service providers [do you expect to/did your organiza<on] evaluate as part of the decision making process?
Page 32
35% 31% 35%
22%
38%
33% 40% 28% 47%
29%
10% 12%
7%
10% 10%
9% 6%
14% 5% 9%
7% 5% 7% 9%
11% 5% 4% 7% 7% 3%
Total (n=1736) Infrastructure HosRng (n=77)
ApplicaRon HosRng (n=114)
Managed Services (n=58)
Security Services (n=92) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Other
Value Added Reseller
TelecommunicaRons Provider
Independent SoTware Vendor
Systems Integrator
HosRng Provider
Cloud Provider
Significant Hosting Project by Vendor Type
©2014 451 Research LLC. All rights reserved.
D5. Which type of vendor [is most likely to win/won] the business? (Choose one)
Page 33
8% 10% 6% 5% 10%
28% 31%
32% 29% 16%
39%
43% 40%
33% 38%
15%
11% 15%
19% 16%
11% 5% 8%
14% 19%
Total (n=851) <100 (n=145) 100-‐999 (n=336) 1,000-‐4,999 (n=187) 5,000+ (n=183) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Five or more
Four
Three
Two
One
Number of Vendors Considered by Company Size
©2014 451 Research LLC. All rights reserved.
D6a. Which [Independent Sogware Vendor] [is most likely to win/won] the business: (open response)
13%
13%
6%
6%
6%
4%
3%
0% 10% 20%
MicrosoT
IBM
HP
HCL
Amazon
Dell
% of Respondents
Page 34
n=112
Significant Hosting Project: Top Mentioned ISVs
©2014 451 Research LLC. All rights reserved.
D6a. Which [Value Added Reseller] [is most likely to win/won] the business: (open response)
18%
11%
8%
7%
0% 10% 20% 30%
IBM
MicrosoT
Amazon
Dell
% of Respondents
Page 35
n=161
Significant Hosting Project: Top Mentioned VARs
©2014 451 Research LLC. All rights reserved.
D6a. Which [System Integrator] [is most likely to win/won] the business: (open response)
25%
13%
3%
3%
3%
3%
0% 10% 20% 30%
IBM
MicrosoT
Rockwell AutomaRon
Oracle
Cisco
% of Respondents
Page 36
n=115
Significant Hosting Project: Top Mentioned SIs
©2014 451 Research LLC. All rights reserved.
D6a. Which [Hos<ng Provider] [is most likely to win/won] the business: (open response)
50%
27%
9%
0% 10% 20% 30% 40% 50% 60% 70%
IBM/SoTlayer
Rackspace
CenturyLink/Savvis
% of Respondents
Page 37
n=571
Significant Hosting Project: Top Mentioned Hosting Providers
©2014 451 Research LLC. All rights reserved.
D6a. Which [Cloud Provider] [is most likely to win/won] the business: (open response)
32%
23%
21%
17%
0% 10% 20% 30% 40% 50%
MicrosoT
IBM (including SoTlayer)
Amazon
% of Respondents
Page 38
n=613
Significant Hosting Project: Top Mentioned Cloud Providers
©2014 451 Research LLC. All rights reserved.
D6a. Which [Telecommunica<ons Provider] [is most likely to win/won] the business: (open response)
15%
10%
5%
4%
4%
4%
4%
4%
0% 10% 20%
Verizon
AT&T
IBM
Vodafone
Telstra
Singapore TelecommunicaRons
Deutsche Telekom
% of Respondents
Page 39
n=101
Significant Hosting Project: Top Mentioned Telecommunication Providers
©2014 451 Research LLC. All rights reserved.
D8. What are the top two reasons your company [will most likely not use/did not use] one of the larger market share leaders? (Choose up to two)
42%
39%
38%
33%
20%
1%
0% 10% 20% 30% 40% 50% 60% 70%
My provider is the lowest cost opRon
My provider offers the products & services that I want
My organizaRon has a pre-‐exisRng relaRonship with our provider
My provider offers bemer customer support than the larger providers
My provider partners with one of the larger providers
Other
% of Respondents
Page 40
n=107
Significant Hosting Project: Drivers for Not Using Market Leading Vendor
BUYING PROCESS
©2014 451 Research LLC. All rights reserved. Page 41
©2014 451 Research LLC. All rights reserved.
D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments.
Page 42
33% 31%
44% 36%
19%
52% 55% 55%
37% 42%
44% 52% 28%
21%
11%
38% 29% 22%
18%
23%
23% 17%
29%
42%
70%
10% 15%
23%
45% 36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Not Involved
Primary Decision Maker
Influencer
n=1736
Stakeholder Decision Making Authority
©2014 451 Research LLC. All rights reserved.
D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments.
0% 10% 20% 30% 40% 50% 60% 70%
CEO
CIO/CTO
CFO
CMO
Line of Business Department Managers
IT Infrastructure Managers
IT Architects
SoTware Developers
MarkeRng Managers
3rd Party Service Providers/SIs/VARS
% of Respondents
North America (n=926)
Europe (n=334)
Asia (n=323)
South America (n=103)
MEA (n=50)
Page 43
Stakeholder Decision Making Authority by Region
©2014 451 Research LLC. All rights reserved.
D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments.
0% 10% 20% 30% 40% 50% 60% 70%
CEO
CIO/CTO
CFO
CMO
Line of Business Department Managers
IT Infrastructure Managers
IT Architects
SoTware Developers
MarkeRng Managers
3rd Party Service Providers/SIs/VARS
% of Respondents
<100 (n=317)
100-‐999 (n=666)
1,000-‐4,999 (n=361)
5,000+ (n=392)
Page 44
Stakeholder Decision Making Authority by Company Size
©2014 451 Research LLC. All rights reserved.
D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments.
0% 10% 20% 30% 40% 50% 60% 70%
CEO
CIO/CTO
CFO
CMO
Line of Business Department Managers
IT Infrastructure Managers
IT Architects
SoTware Developers
MarkeRng Managers
3rd Party Service Providers/SIs/VARS
% of Respondents
IT OperaRons/ AdministraRon (n=1316)
ApplicaRon Development (n=303)
MarkeRng (n=117)
Page 45
Stakeholder Decision Making Authority by Department
©2014 451 Research LLC. All rights reserved.
B1. Of the buying process stages outlined below, which [will/did] your company go through? (Pick mul<ple)
72%
63%
48%
47%
43%
73%
61%
50%
47%
44%
70%
65%
42%
44%
43%
65%
75%
37%
50%
37%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Technical assessment
Business assessment
Technical integraRon
Contract NegoRaRon
Comparison to on-‐premises capabiliRes
% of Respondents
Total (n=851)
IT OperaRons/ AdministraRon (n=651)
ApplicaRon Development (n=148)
MarkeRng (n=52)
Page 46
Buying Process by Department
©2014 451 Research LLC. All rights reserved.
B2. From ini<al assessment to technical integra<on, [how long do you expect the deployment of your most important hos<ng or cloud services project for next year to take/how long did the deployment of your most recent important hos<ng or cloud services project take?”] (Pick one)
Page 47
9% 19%
8% 7% 6%
32%
45%
30% 35%
23%
35%
24%
38% 32%
39%
15%
8%
16% 17% 18%
8% 3% 7% 9%
11%
Total (n=851) <100 (n=145) 100-‐999 (n=336) 1,000-‐4,999 (n=187) 5,000+ (n=183) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Greater than 2 years
1 -‐ <2 years
9 -‐ <12 months
6 -‐ <9 months
3 -‐ <6 months
0 -‐ <3 months
Buying Process Length by Company Size
©2014 451 Research LLC. All rights reserved.
B3. Please allocate your company’s buying process <me across the following stages: (Sum to 100)
Page 48
14%
14%
15%
14%
30%
30%
30%
24%
24%
23%
25%
35%
13%
14%
13%
14%
18%
19%
17%
13%
0%
0%
0%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Current (n=851)
IT OperaRons/ AdministraRon (n=651)
ApplicaRon Development (n=148)
MarkeRng (n=52)
% of Time
Compare with on premises capabiliRes Technical assessment Business assessment Contract NegoRaRon Technical integraRon Other
Buying Process Length by Department
CLOUD COMPUTING EXPECTATIONS
©2014 451 Research LLC. All rights reserved. Page 49
©2014 451 Research LLC. All rights reserved.
A4a. What is your organiza<on’s highest expecta<on for moving to hosted services or cloud compu<ng?
Page 50
22%
18%
13%
13%
10%
9%
8%
7% Improve technology quality
Help grow our business
Improve Availability
Bemer business service
Add capabiliRes we cannot build internally
Scale to demand
Inexpensive
Speed Rme to market n=1089
Highest Expectation Moving to Cloud
©2014 451 Research LLC. All rights reserved.
A4a. What is your organiza<on’s highest expecta<on for moving to hosted services or cloud compu<ng? (select one)
23%
17%
13%
12%
11%
9%
8%
6%
20%
15%
16%
17%
7%
8%
9%
9%
15%
27%
12%
15%
13%
8%
4%
5%
0% 10% 20% 30% 40%
Improve technology quality
Help grow our business
Improve Availability
Bemer business service
Add capabiliRes we cannot build internally
Scale to demand
Inexpensive
Speed Rme to market
% of Respondents
IT OperaRons/ AdministraRon (n=1316)
ApplicaRon Development (n=303)
MarkeRng (n=117)
Page 51
Highest Expectation Moving to Cloud by Department
IMPACT OF CLOUD COMPUTING DOWNTIME
©2014 451 Research LLC. All rights reserved. Page 52
©2014 451 Research LLC. All rights reserved.
A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1-‐hour?
Page 53
32% 30%
41% 35%
26% 26%
23%
24%
23% 23%
18% 26%
13% 13% 12%
13%
7% 7% 5% 3%
Total (n=1736) IT OperaRons/ AdministraRon (n=1316)
ApplicaRon Development (n=303)
MarkeRng (n=117) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Limle to no impact
Loss of revenue
Some impact to operaRons, but nothing detrimental
Loss of credibility externally with our customers or partners
An important or large part of our employees base would be unproducRve
Impact of One Hour Downtime by Department
©2014 451 Research LLC. All rights reserved.
A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1-‐hour?
Page 54
32% 34% 37% 34% 32% 21%
26% 20%
27% 32%
21%
25%
23% 22%
22% 20%
26%
25%
13% 17%
10% 10% 14%
17%
7% 7% 3% 5% 7% 12%
Total (n=1736) Discovery and EvaluaRon (n=235)
Running Trials/Pilot Projects (n=318)
ApplicaRon Test and Development
(n=551)
IniRal ImplementaRon
(n=375)
Broad ImplementaRon
(n=250)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Limle to no impact
Loss of revenue
Some impact to operaRons, but nothing detrimental
Loss of credibility externally with our customers or partners
An important or large part of our employees base would be unproducRve
Impact of One Hour Downtime by Maturity
APPLICATIONS IN CLOUD COMPUTING ENVIRONMENT
©2014 451 Research LLC. All rights reserved. Page 55
©2014 451 Research LLC. All rights reserved.
A2. What is your organiza<on's most common type of applica<on deployment for cloud compu<ng?
47%
36%
17%
48%
36%
16%
43%
39%
19%
41%
27%
26%
0% 10% 20% 30% 40% 50% 60% 70%
Modernizing exisRng applicaRons by moving to hosted soTware or Saas
MigraRng exisRng applicaRons to cloud infrastructure
Deploying new applicaRons that we didn't have before cloud
% of Respondents
Total (n=1736)
IT OperaRons/ AdministraRon (n=1316)
ApplicaRon Development (n=303)
MarkeRng (n=117)
Page 56
Common Cloud Application Deployment by Department
©2014 451 Research LLC. All rights reserved.
A6. What is your organizaBons goal for the proporBon of applicaBons or resources that will be part of a cloud compuBng environment in two years? ____%
Page 57
6% 6% 5% 1%
18% 17% 24%
9%
26% 26%
31%
14%
16% 17%
13%
19%
17% 17% 14%
22%
17% 17% 14%
35%
Total (n=1712) IT OperaRons/ AdministraRon (n=1316)
ApplicaRon Development (n=303) MarkeRng (n=93) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
75%+
60-‐74%
45-‐59%
30-‐44%
15-‐29%
<15%
Future Percent of Applications in Cloud by Department
©2014 451 Research LLC. All rights reserved.
A6. What is your organizaBons goal for the proporBon of applicaBons or resources that will be part of a cloud compuBng environment in two years? ____%
Page 58
6% 11%
5% 5% 5% 5%
18%
21%
19% 19% 18% 11%
26%
27% 31%
24% 30%
19%
16%
13% 14%
18% 16%
19%
17% 14% 17%
16% 18%
17%
17% 15% 14% 19%
13%
29%
Total (n=1712) Discovery and EvaluaRon (n=228)
Running Trials/Pilot Projects (n=311)
ApplicaRon Test and Development (n=547)
IniRal ImplementaRon (n=370)
Broad ImplementaRon (n=250)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
75%+
60-‐74%
45-‐59%
30-‐44%
15-‐29%
<15%
Future Percent of Applications in Cloud by Maturity
WINDOWS 2003 MIGRATION
©2014 451 Research LLC. All rights reserved. Page 59
©2014 451 Research LLC. All rights reserved.
A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003?
Page 60
40% 40% 37% 40% 50%
42%
56% 56% 59% 57%
50%
50%
4% 4% 5% 3% 0% 8%
Total (n=1736) North America (n=926) Europe (n=334) Asia (n=323) South America (n=103) MEA (n=50) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Don't know
No
Yes
Formal Migration Plans for Windows Server 2003 by Region
©2014 451 Research LLC. All rights reserved.
A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003?
Page 61
40% 32%
39% 44% 44%
56% 63%
58% 53% 50%
4% 5% 3% 3% 5%
Total (n=1736) <100 (n=317) 100-‐999 (n=666) 1,000-‐4,999 (n=361) 5,000+ (n=392) 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of R
espo
nden
ts
Don't know
No
Yes
Formal Migration Plans for Windows Server 2003 by Company Size
©2014 451 Research LLC. All rights reserved.
A10. [IF YES] Which of the following best describes your organiza<on’s transi<on plan for current Windows Server 2003 workloads?
Page 62
25%
18%
11%
13%
9%
10%
14% ...a newer version of Windows Server using on-‐premises hardware
...a newer version of Windows Server using a hosRng provider
...virtualized servers through a public cloud provider
...a hybrid approach using on-‐premises hardware and a hosRng provider
...a hybrid approach using on-‐premises hardware and public cloud
...a hybrid approach using a hosRng provider and public cloud
...a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public...
Move to….
n=504
Windows Server 2003 Migration Plan
©2014 451 Research LLC. All rights reserved.
A10. [IF YES] Which of the following best describes your organiza<on’s transi<on plan for current Windows Server 2003 workloads?
Page 63
0% 10% 20% 30% 40%
Move to a newer version of Windows Server using on-‐premises hardware
Move to a newer version of Windows Server using a hosRng provider
Move to virtualized servers through a public cloud provider
Move to a hybrid approach using on-‐premises hardware and a hosRng provider
Move to a hybrid approach using on-‐premises hardware and public cloud
Move to a hybrid approach using a hosRng provider and public cloud
Move to a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public...
% of Respondents
By Region North America (n=288)
Europe (n=77)
Asia (n=92)
South America (n=35)
MEA (n=12)
0% 10% 20% 30% 40%
Move to a newer version of Windows Server using on-‐premises hardware
Move to a newer version of Windows Server using a hosRng provider
Move to virtualized servers through a public cloud provider
Move to a hybrid approach using on-‐premises hardware and a hosRng provider
Move to a hybrid approach using on-‐premises hardware and public cloud
Move to a hybrid approach using a hosRng provider and public cloud
Move to a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public...
% of Respondents
By Company Size
<100 (n=288)
100-‐999 (n=77)
1,000-‐4,999 (n=92)
5,000+ (n=35)
Windows Server 2003 Migration Plan
©2014 451 Research LLC. All rights reserved.
A12. How will migra<ng Windows Server 2003 affect your use of hosted service providers?
Page 64
51%
40%
6% 3%
Increase
Stay the same
Decrease
Don't know
n=692
Windows Server 2003 Migration Impact on Hosted Services
©2014 451 Research LLC. All rights reserved.
A15. Will your organiza<on enlist a service provider in your transi<on from Windows Server 2003?
Page 65
63%
31%
6%
Yes
No
Don't know
n=692
Windows Server 2003 Migration Plan Enlist Service Provider