April 23, 2013 Have Business Buyers Driven us to the Cloud Adoption Tipping Point? Enterprise Cloud Adoption Survey 2013 Live Tweeting #ccevent
Jan 23, 2015
April 23, 2013
Have Business Buyers Driven us to the Cloud Adoption Tipping Point?
Enterprise Cloud Adoption Survey 2013
Live Tweeting #ccevent
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Introductions
Scott Bils Partner & Next Generation IT Practice Leader [email protected]
Steve Wylie General Manager [email protected]
Chirajeet Sengupta Practice Director [email protected]
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Context setting
Sources for today’s webinar
Focus of this webinar Adoption trends by application workload
Stakeholder involvement in cloud investments
Deployment model preferences (private/public) by application workload
Cloud provider mindshare
First of its kind enterprise cloud adoption tracking survey
Fact-based research focused on enterprise cloud market and all layers of the cloud stack
2013 Enterprise Cloud Adoption Survey
+
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Peel back the onion on adoption patterns
Identify cloud market trends and disconnects
H1 2013 focus: private vs. public clouds
Why do another cloud survey? Our goal is to better understand enterprise cloud adoption trends and dynamics through gaining a 360°view of the market
Survey respondents
Enterprise/Cloud Service Buyers
Cloud Service Providers Consultants/
Advisors
37%
33%
30%
100% = 302
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Key findings from the survey
Future cloud adoption is likely to move closer towards mission critical workloads
However, private clouds are strongly preferred to public cloud models across stakeholders
Cloud adoption is reaching a critical scale across all workload types
AWS remains the public cloud leader; however, Google, MSFT, Rackspace are fast catching up
Adoption is increasingly powered by business groups instead of corporate IT
While VMware leads today, many are leaning towards open source
1
2
3
4
5
6
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Do you envision public cloud models becoming mainstream for enterprise workloads in the near future?
63%
37%
Yes
No
Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013
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1. Has the cloud reached a tipping point? A majority of enterprises plan migration to public or private cloud for nearly every workload type, including ERP
82% 73%
63%
18% 27%
37%
Migration None
planned
Migration Occurred Happening Planned
Web apps/ websites
E-mail/collaboration CRM/marketing
automation
Development/test environment
Custom apps ERP (F&A, HCM,
SCM)
E-commerce/ online tools
BI/analytics Collaboration/CMS
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Mission criticality “Core” “Edge”
50%
Enterprise cloud migration plans by workload 2013; Percentage of buyer responses
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68% 56% 52%
31% 40% 45%
1% 4% 3%
2. Power continues shifting away from corporate IT to LOB owners Cloud buying power is concentrating in lines of business, not the CIO’s office. This holds true for a majority of enterprise workloads
Business users/ Embedded business IT
Corporate IT
Development/test environment
E-mail/collaboration Disaster recovery/
storage
Web apps/websites E-commerce/
online tools BI/analytics Collaboration/CMS CRM/marketing
automation
Custom apps ERP (F&A, HCM,
SCM)
Procurement
Primary decision makers for enterprise workloads 2013; Percentage of buyer responses
CIO suite Functional/BU suite CMO suite
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Declining CIO
influence
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2. The two enterprise cloud buying centers Growth in adoption of cloud services is creating two distinct, but overlapping, buying groups in the enterprise
Preferred cloud models
Dedicated/ private cloud models – On prem – Hosted – Managed
Shared/public cloud models – SaaS – PaaS – IaaS
Control Security Performance Scalability Integration
New capabilities (often vertical or function-specific)
Time-to-market Flexibility Ease of use
Key buying considerations
Business Buyers
Corporate IT
Buying group Description
Business and functional stakeholders
Embedded line-of business (LOB) developers and IT staff
CIOs and centralized corporate IT staff – Applications – Infrastructure
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3. Enterprises have already leveraged SaaS and are moving on The “low hanging fruit” of SaaS may already have been picked in the enterprise. LOBs are now moving on, focusing on custom apps by function or vertical
49%
38%
36%
Custom business applications
ERP – finance & accounting
BI/analytics 43%
42%
40%
Custom business applications
ERP – finance & accounting
BI/analytics
39%
37%
37%
33%
31%
31%
Custom business applications
BI/analytics
E-commerce and online tools
Custom vertical business apps
Custom functional business apps
ERP – finance & accounting
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Banking, financial services, and insurance
Manufacturing, distribution, and retail
Healthcare & life sciences
Technology, telecom, & electronics
Likely future cloud option by workloads 2013; Percentage of buyer responses
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4. Private clouds still the preferred choice Enterprises still show a preference for private cloud models for most workload types. Is the trend being driven by internal "IT marketing”?
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
60% 58% 52%
24% 23% 27%
16% 19% 21%
Public
Private
Development/test environment
E-mail/collaboration Disaster recovery/
storage
Web apps/websites E-commerce/
on-line tools BI/analytics Collaboration/CMS CRM/marketing
automation
Custom apps ERP (F&A, HCM,
SCM)
Indifferent
CIO suite Functional/BU suite CMO suite
Marginal decline in private cloud
bias
Buyer preferences – cloud deployment model 2013; Percentage of buyer responses
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Preference for virtualization technology Buyer responses (cloud infrastructure implemented/planned)
47%
19%
18%
9% 6%
VMware
No preference
Microsoft Hyper-V
Xen
KVM
Preference for cloud platform Buyer responses (cloud infrastructure implemented/planned)
VMware
No preference
OpenStack
IBM SmartCloud
CloudStack VCE
34%
25%
14%
12%
9% 4% 3%
Eucalyptus
5. The cloud infrastructure wars are heating up While VMware is the current leader, a significant proportion of the market professes to be platform agnostic, or prefer open source platforms
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey
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6. AWS enjoys leading market share followed by Google and MSFT However, competition is likely to heat up across several providers
Using
Aware/considering
Not aware/not considering
27% 19% 17%
7% 7% 5% 5% 4% 4% 2%
19% 37% 38%
36% 27%
20% 35% 33%
12% 9%
54% 44% 45%
58% 66%
75% 60% 63%
84% 89%
Leaders
AWS Google MSFT
Contenders
Rackspace AT&T Verizon-Terremark
IBM HP
Emerging Players
Savvis- century link
CSC
Mindshare of public cloud providers 2013; Percentage of buyer responses
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
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Do you think the security concerns around public cloud models are exaggerated?
63%
38%
Yes
No
Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013
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Download 2013 enterprise cloud adoption survey
Complimentary 23-page survey summary report More details in addition to today’s webinar
presentation Visit www.everestgrp.com/ccevent to download Learn more about Cloud Vista
Cloud Connect Chicago | October 21-24 | McCormick Place
Call for submission now open Join the mailing list to be informed when registration
opens Visit http://www.cloudconnectevent.com/chicago/
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Q&A
To ask a question during the Q&A session Click the question mark (Q&A) button located on right side of your screen. This opens Q&A
Be sure to keep the default set to “send to All Panelists”
Type your question in the box at the bottom of the Q&A box and click the send button
Attendees will receive an email with instructions for downloading today’s presentation
To contact the presenters: – Scott Bils, [email protected], @sbils – Steve Wylie, [email protected], @swylie650 – Chirajeet Sengupta [email protected]
Websites www.everestgrp.com research.everestgrp.com
Twitter @EverestGroup @Everest_Cloud
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