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America Square London EC3 12th May, 2014
Rackpace Unlocked
What are businesses looking
for from the cloud?
What we are told
• No one wants hardware
• Everything is/will move to the cloud
• SaaS is replacing traditional software
• Cloud is cheap
• Open source is cheaper
• Microsoft, big vendors dead/dying
• SIs also dead
• Private cloud is so 2008
• CIOs must do x y and z
I spoke to over 40 IT directors and …….
………(p.s. buyers are liars)
‘My CEO drives me
mad telling me cloud
is cheap and we
have to move
everything there’
5
A reality check
2013 2014 2015 CAGR
Cloud £180mn £240mn £570mn 35%
Hosting £1.6bn £1.8bn £2.3bn 12%
Co-lo £0.9bn £1.0bn £1.1bn 19%
2013 2014 2015 CAGR
Shared £434mn £474mn £571mn 9%
Dedicated £171mn £189mn £207mn 9%
Virtual £91mn £102mn £110mn 15%
Managed £1.0bn £1.2bn £1.5bn 22%
‘It’s good to have this conversation, I hardly ever
think about the infrastructure my applications sit
on, it’s such a tiny part of my budget’
13
What they like/care about
• Right platform for the right application
• Commodity IT vs critical
• ‘Just needs to work’, ‘good enough’
• SLAs
• Network
• Sweating assets
• Help me win the PCWorld argument
• Tell us what you do well
• Availability
• Integrated technology stacks
‘Please don’t sell me a virtual server and then
tell me it takes four weeks to deliver it’
13
What they don’t care about
• Shared
• High performance
• Low expectations in shared
• Data transformation means hosting
• Security, compliance
• Senior management putting IT in a box
• TCO tools, free POCs
• Migration
• Finger pointing when it goes wrong
• Sweat the asset
• Managing multiple vendors
‘Sales gives away our technology for free and
it’s the highest margin part of the business’
Some myths
… and now some trends
9
Some trends in enterprise
• Enterprise equals private cloud
• VMWare sales, OpenStack, Citrix sales tell a story
• Business analytics
• Moving towards agile IT, means uncoupling
• Data transformation integration
• Latency an issue, need that fibre X connect
• SaaS disappointment
• £50k integration charge
• Vendor lock-in: try moving after 2 years
• Open source
• Vendors can behave in a old fashioned ways
• In storage, Lego can be cheaper than the cloud
• Big vendors outsourcing disruption/innovation
‘Public cloud? That’s for LAMP stack, right?
9
Some questions to ask
• How many products did you release in the last year?
• Can you give us your three year availability history?
• Can you gives us your sales headcount for the last 3
years?
• If your cloud node goes down before Xmas how much
will you pay me?
• Will the sales rep I am talking to answer the phone
when I have signed?
• Can you guarantee performance? How?
• Can you walk me through what happens if I decide to
leave
• Can you guarantee none of my data will remain on your
platform once I am gone
Thank You!
Any questions?
41
How can we help?
www.structureresearch.net
Twitter: @beazerd
Twitter: @structureres
+44 774 890 7086
Daniel Beazer,
EUROPEAN ANALYST

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Daniel Beazer - what to look for from your cloud service provider / Unlocked: the Hybrid Cloud 12 May 2014

  • 1. 1 America Square London EC3 12th May, 2014 Rackpace Unlocked What are businesses looking for from the cloud?
  • 2. What we are told • No one wants hardware • Everything is/will move to the cloud • SaaS is replacing traditional software • Cloud is cheap • Open source is cheaper • Microsoft, big vendors dead/dying • SIs also dead • Private cloud is so 2008 • CIOs must do x y and z I spoke to over 40 IT directors and ……. ………(p.s. buyers are liars) ‘My CEO drives me mad telling me cloud is cheap and we have to move everything there’
  • 3. 5 A reality check 2013 2014 2015 CAGR Cloud £180mn £240mn £570mn 35% Hosting £1.6bn £1.8bn £2.3bn 12% Co-lo £0.9bn £1.0bn £1.1bn 19% 2013 2014 2015 CAGR Shared £434mn £474mn £571mn 9% Dedicated £171mn £189mn £207mn 9% Virtual £91mn £102mn £110mn 15% Managed £1.0bn £1.2bn £1.5bn 22% ‘It’s good to have this conversation, I hardly ever think about the infrastructure my applications sit on, it’s such a tiny part of my budget’
  • 4. 13 What they like/care about • Right platform for the right application • Commodity IT vs critical • ‘Just needs to work’, ‘good enough’ • SLAs • Network • Sweating assets • Help me win the PCWorld argument • Tell us what you do well • Availability • Integrated technology stacks ‘Please don’t sell me a virtual server and then tell me it takes four weeks to deliver it’
  • 5. 13 What they don’t care about • Shared • High performance • Low expectations in shared • Data transformation means hosting • Security, compliance • Senior management putting IT in a box • TCO tools, free POCs • Migration • Finger pointing when it goes wrong • Sweat the asset • Managing multiple vendors ‘Sales gives away our technology for free and it’s the highest margin part of the business’
  • 6. Some myths … and now some trends
  • 7. 9 Some trends in enterprise • Enterprise equals private cloud • VMWare sales, OpenStack, Citrix sales tell a story • Business analytics • Moving towards agile IT, means uncoupling • Data transformation integration • Latency an issue, need that fibre X connect • SaaS disappointment • £50k integration charge • Vendor lock-in: try moving after 2 years • Open source • Vendors can behave in a old fashioned ways • In storage, Lego can be cheaper than the cloud • Big vendors outsourcing disruption/innovation ‘Public cloud? That’s for LAMP stack, right?
  • 8. 9 Some questions to ask • How many products did you release in the last year? • Can you give us your three year availability history? • Can you gives us your sales headcount for the last 3 years? • If your cloud node goes down before Xmas how much will you pay me? • Will the sales rep I am talking to answer the phone when I have signed? • Can you guarantee performance? How? • Can you walk me through what happens if I decide to leave • Can you guarantee none of my data will remain on your platform once I am gone
  • 10. 41 How can we help? www.structureresearch.net Twitter: @beazerd Twitter: @structureres +44 774 890 7086 Daniel Beazer, EUROPEAN ANALYST