The document summarizes the key findings from the 2018 State of the Cloud Report by RightScale. It shows that multi-cloud strategies are predominant, with 81% of enterprises wanting a multi-cloud approach. Public cloud adoption continues to grow rapidly, with Azure seeing faster growth than AWS. Security and managing cloud costs are the top challenges faced by organizations. While waste in the cloud is rampant, few organizations have automated policies to optimize costs. Use of containers and Docker is up significantly across all organizations.

1. 2018 CLOUD TRENDS:
RIGHTSCALE
STATE OF THE CLOUD REPORT
WEBINAR

2. • Michael Crandell
• CEO, RightScale
• Kim Weins
• VP Marketing, RightScale
Panelists

3. • Survey Methodology
• Cloud Adoption
• Central IT Role in Cloud Adoption
• Cloud Challenges
• DevOps: Containers and Configuration
• Comparing Cloud Providers
Agenda

4. • 66,783 people from the RightScale database were emailed
the survey
• 997 responses
• 525 (53%) are 1,000+ employees (Enterprises)
• 3.08% margin of error at 95% confidence
• Respondents are not just RightScale users
• 19% are RightScale users
Methodology

5. 53%
23%
24%
Respondents by Company Size
997 respondents
Company Size
1001+
employees
101-1000
employees
1-100
employees
Source: RightScale 2018 State of the Cloud Report

6. 27%
23%
20%
8%
6%
5%
4%
4%
3%
Respondents by Industry
997 respondents
Industry
Software
Tech Services
Financial Services
Other
Media & Publishing
Education
Business Services
Source: RightScale 2018 State of the Cloud Report
Telecom
Healthcare

7. 54%
22%
16%
8%
Respondents by Region
997 respondents
Region
North America
Source: RightScale 2018 State of the Cloud Report
Europe
APAC
Rest of World

8. 41%
10%
18%
31%
Role of Respondents
997 respondents
Role of Respondents
Dev
Business
IT/Ops
28%
28%
13%
12%
6%
5%
8%
Level of Respondents
997 respondents
Architect
Dir/MgrExec
IT/Ops
Dev/QA
Other
Source: RightScale 2018 State of the Cloud Report Source: RightScale 2018 State of the Cloud Report
Cloud Architect
DevOps

9. Cloud Maturity
8% 10% 19% 32% 31%
Cloud Maturity of Respondents
Watcher Beginner Intermediate AdvancedNo
Plans Planning First projects Apps running Heavy use
Source: RightScale 2018 State of the Cloud Report

10. Finding:
Multi-Cloud Is Pre-Dominant Strategy

11. 81% of Enterprises Want Multi-Cloud
No plans
5%
Single private
4%
Single public
9%
Multiple private
10%
Multiple public
21%
Hybrid cloud
51%
Enterprise Cloud Strategy
1000+ employees
Multi-Cloud
81%
Source: RightScale 2018 State of the Cloud Report

12. 96% of Respondents Are Using Cloud
96% of Respondents Are Using Cloud
Public Cloud
Only
Private Cloud
Only71% 4%21%
Hybrid
Source: RightScale 2018 State of the Cloud Report
Private = 75%Public = 92%

13. 39%
27%
23%
10%
50%
29%
9% 10%
45%
38%
8% 9%
Leverage hybrid
cloud
Use public cloud Build private
cloud
Use hosted
private cloud
Top Priority for Enterprise Central IT
2016
2017
2018
Enterprises Increase Focus on Public Cloud
Source: RightScale 2018 State of the Cloud Report

14. Public + Private
Clouds Used
Average Median
Running applications 3.1 3.0
Experimenting 1.7 1.0
Total 4.8 4.0
Respondents Average More than Four Clouds
Source: RightScale 2018 State of the Cloud Report

15. Finding:
Majority of Workloads Are in Cloud,
Public Cloud Will Grow Faster

16. 33%
24%
13%
17%
13%
Monthly Public Cloud Spend
All respondents
Monthly Public Cloud Spend – All Respondents
Source: RightScale 2018 State of the Cloud Report
< $10K
$10K to $50K$50K to $100K
$100K to $500K
> $500K

17. 50%
12%
27%
20%
10%
16%
10%
26%
3%
26%
SMB
Enterprise
Monthly Public Cloud Spend by Company Size
<$10K $10K t0 $50K $50K to $100K $100K to $500K > $500K
Enterprises Spend More in Public Cloud
Source: RightScale 2018 State of the Cloud Report

18. 18%
17%
31%
16%
18%
Growth in Public Cloud Spend
All respondents
Public Cloud Spend Growth – All Respondents
Source: RightScale 2018 State of the Cloud Report
Up 100% or more
Up 50% to 100%
Up 20% to 50%
Up less than 20%
No change
or decrease

19. 7%
13%
21%18%
41%
Growth in Private Cloud Usage
All respondents
Private Cloud Growth– All Respondents
Source: RightScale 2018 State of the Cloud Report
Up 100% or more
Up 50% to 100%
Up 20% to 50%
Up less than 20%
No change
or decrease

20. Finding:
Central Cloud Teams Focus on
Governance and Brokering

21. 56%
61%
35%
31%
9%
8%
2017
2018
Architect Roles
Cloud Architect IT Architect Dev Architect
Cloud Architect Role Grows
Source: RightScale 2018 State of the Cloud Report

22. 31%
57%
24%
24%
45%
19%
SMB
Enterprise
Central Cloud Team by Company Size
Have a central cloud team Planning central cloud team No plans
Most Enterprises Have Central Cloud Team
Source: RightScale 2018 State of the Cloud Report

23. Central IT Shifts to Governance/Broker Cloud
59%
54%
63%
65%
54%
58%
55%
63%
36%
45%
46%
56%
60%
60%
64%
69%
Build private cloud
Manage all cloud deployments
Select private clouds
Select public clouds
Broker cloud services
Set policies for cloud use
Manage/optimize costs of cloud
Decide/advise on which apps go to cloud
2018
2017
Enterprise Central IT View of Role
Source: RightScale 2018 State of the Cloud Report

24. Finding:
Security and Spend
Are Top Challenges

25. 20%
14%
22%
21%
25%
27%
21%
29%
33%
41%
41%
47%
46%
46%
55%
48%
Building a private cloud
Performance
Managing multiple clouds
Compliance
Governance/control
Lack of resources/expertise
Managing cloud spend
Security
Cloud Challenges
Significant challenge
Somewhat of a challenge
Security and Spend are Top Challenges
Source: RightScale 2018 State of the Cloud Report

26. Place Beginner Intermediate Advanced
#1 Security (85%) Managing costs (80%) Managing costs (77%)
#2 Lack of resources/expertise
(82%)
Security (78%) Security (77%)
#3 Managing costs (80%) Lack of resources/expertise
(78%)
Compliance (73%)
#4 Governance/Control (75%) Governance/Control (76%) Governance/Control (70%)
#5 Compliance (74%) Compliance (69%) Lack of resources/expertise
(67%)
Spend and Security Are Top Challenges
Top 5 Challenges Change with Cloud Maturity
Source: RightScale 2018 State of the Cloud Report

27. Finding:
Waste Is Rampant,
Yet Few Automate Policies

28. 30%
5%
% of Cloud Spend Wasted
Cloud Users Underestimate Wasted Spend
Source: RightScale 2018 State of the Cloud Report
Self-Estimated
Wasted Spend
Additional
Wasted Spend Measured
by RightScale

29. 12%
13%
19%
19%
21%
28%
28%
31%
37%
44%
44%
45%
50%
51%
41%
49%
38%
34%
Use lowest cost regions
Use lowest cost cloud
Track underutilized discounts (RI/CUD)
Specify allowed instance types/sizes
Eliminate inactive storage
Specify expiration dates for workloads
Monitor utilization/rightsize instances
Require specific tags
Shut down workloads after hours
How Companies are Optimizing Cloud Cost
Automated policies
Manual policies
Few Organizations Have Automated Policies
Source: RightScale 2018 State of the Cloud Report

30. 32%
34%
34%
38%
39%
42%
44%
51%
58%
Enabling IT to broker multiple cloud services
Expanding public clouds we use
Implementing CI/CD in the cloud
Expanding use of containers
Implementing a cloud first strategy
Automated policies for governance
Better financial reporting
Moving more workloads to cloud
Optimizing existing cloud use (cost savings)
Cloud Initiatives in 2018
Optimizing Cloud Costs Is Top 2018 Initiative
Source: RightScale 2018 State of the Cloud Report

31. Place Beginner Intermediate Advanced
#1 Move more workloads to
cloud (49%)
Optimizing existing cloud
use/cost savings (65%)
Optimizing existing cloud
use/cost savings (69%)
#2 Optimizing existing cloud
use/cost savings (46%)
Move more workloads to
cloud (61%)
Implement automated
policies (53%)
#3 Implement a cloud first
strategy (39%)
Better financial reporting
(49%)
Better financial reporting
(52%)
#4 Better financial reporting
(38%)
Implement automated
policies (47%)
Move more workloads to
cloud (51%)
#5 Implement automated
policies (34%)
Implement a cloud first
strategy (45%)
Expand use of containers
(50%)
2018 Initiatives Depend on Cloud Maturity
Top 2018 Initiatives by Cloud Maturity
Source: RightScale 2018 State of the Cloud Report

32. Finding:
Use of Docker and Container Tools
Up Across the Board

33. 5%
6%
7%
12%
14%
20%
27%
44%
49%
12%
12%
21%
25%
25%
34%
36%
29%
29%
Rancher
Mesosphere
Docker Datacenter
Docker Swarm
Google Container Engine
Azure Container Service
Kubernetes
Amazon ECS/EKS
Docker
Respondents Using Container Tools
Use today
Plan to use
Container Tools – All Respondents
Source: RightScale 2018 State of the Cloud Report

34. 3%
5%
7%
8%
11%
14%
35%
35%
5%
6%
7%
12%
14%
20%
27%
44%
49%
Rancher
Mesosphere
Docker Datacenter
Docker Swarm
Google Container Engine
Azure Container Service
Kubernetes
Amazon ECS/EKS
Docker
YoY Respondents Using Container Tools
2018
2017
Container Tools YoY – All Respondents
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017

35. Finding:
Ansible Sees Largest Growth

36. 13%
20%
34%
36%
36%
16%
17%
17%
17%
21%
Salt
Terraform
Puppet
Chef
Ansible
Respondents Using Configuration Tools
Use today
Plan to use
Configuration Tools – All Respondents
Source: RightScale 2018 State of the Cloud Report

37. 9%
28%
28%
21%
13%
20%
34%
36%
36%
Salt
Terraform
Puppet
Chef
Ansible
Respondents Using Configuration Tools
2018 2017
Configuration Tools YoY– All Respondents
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017

38. 19%
22%
42%
47%
48%
19%
22%
23%
16%
17%
Salt
Terraform
Ansible
Puppet
Chef
Enterprise Respondents Using Configuration Tools
Use today
Plan to use
Configuration Tools – Enterprises
Source: RightScale 2018 State of the Cloud Report

39. 7%
17%
19%
23%
29%
13%
13%
17%
17%
19%
Salt
Terraform
Puppet
Chef
Ansible
SMB Respondents Using Configuration Tools
Use today
Plan to use
Configuration Tools – SMBs
Source: RightScale 2018 State of the Cloud Report

40. Finding:
Azure Growing Adoption and Footprint
Faster Than AWS

41. 2%
6%
8%
10%
18%
45%
64%
3%
10%
14%
11%
23%
22%
16%
4%
9%
14%
9%
15%
9%
8%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – All Respondents
Source: RightScale 2018 State of the Cloud Report

42. 3%
8%
15%
34%
57%
2%
6%
8%
10%
18%
45%
64%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
Public Cloud Adoption 2018 vs. 2017
% of Respondents Running Applications
2018
2017
Public Cloud Adoption YoY – All Respondents
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017
Not asked in 2017

43. 2%
10%
12%
15%
19%
58%
68%
3%
12%
16%
13%
26%
22%
15%
5%
11%
16%
10%
15%
8%
7%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
Enterprise Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – Enterprises
Source: RightScale 2018 State of the Cloud Report

44. 5%
10%
15%
43%
59%
2%
10%
12%
15%
19%
58%
68%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
Enterprise Public Cloud Adoption 2018 vs. 2017
% of Respondents Running Applications
2018
2017
Public Cloud Adoption YoY – Enterprise
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017
Not asked in 2017

45. 2%
2%
4%
4%
18%
32%
60%
3%
7%
12%
8%
21%
22%
17%
4%
7%
11%
6%
14%
10%
9%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
SMB Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – SMB
Source: RightScale 2018 State of the Cloud Report

46. 2%
6%
15%
25%
55%
2%
2%
4%
4%
18%
32%
60%
Alibaba Cloud
Oracle Cloud
VMware Cloud on AWS
IBM Cloud
Google Cloud
Azure
AWS
SMB Public Cloud Adoption 2018 vs. 2017
% of Respondents Running Applications
2018
2017
Public Cloud Adoption YoY – SMB
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017
Not asked in 2017

47. 40%
71%
81%
36%
53%
49%
13%
16%
21%
9%
13%
9%
0%
20%
40%
60%
80%
100%
Beginner Intermediate Advanced
Clouds Used by Cloud Maturity
% of Respondents
AWS
Azure
Google
IBM
Azure Close to AWS for Cloud Beginners
Source: RightScale 2018 State of the Cloud Report

48. 47%
74%
80%
49%
63% 64%
18%
13%
22%
14% 16%
13%
0%
20%
40%
60%
80%
100%
Beginner Intermediate Advanced
Clouds Used by Cloud Maturity - Enterprises
% of Respondents
AWS
Azure
Google
IBM
Azure Leads AWS for Enterprise Beginners
Source: RightScale 2018 State of the Cloud Report

49. 33%
67%
81%
22%
40%
34%
7%
19% 20%
3%
8%
4%
0%
20%
40%
60%
80%
100%
Beginner Intermediate Advanced
Clouds Used by Cloud Maturity - SMB
% of Respondents
AWS
Azure
Google
IBM
AWS Leads Across Board for SMB
Source: RightScale 2018 State of the Cloud Report

50. 6%
12%
14%
14%
17%
19%
19%
21%
24%
25%
27%
28%
29%
31%
36%
44%
18%
23%
13%
17%
12%
13%
26%
21%
16%
12%
14%
17%
13%
11%
11%
14%
18%
23%
12%
11%
15%
13%
19%
17%
14%
11%
14%
12%
10%
12%
13%
10%
IoT Services
Machine Learning
Stream Processing
Hadoop
DRaaS
Batch
Container-as-a-Service
Serverless
Data Warehouse
Search
Mobile Services
No SQL DBaaS
Queuing
Caching
Push Notifications
Relational DBaaS
Public Cloud Services Used
% of Respondents
Use today
Experimenting
Plan to use
Public Cloud Services Used – All Respondents
Source: RightScale 2018 State of the Cloud Report

51. Place Service Growth Rate 2017 Use 2018 Use
#1 Serverless 75% 12% 21%
#2 Container-as-a-service 36% 14% 19%
#3 DBaaS SQL 26% 35% 44%
#4 DBaaS NoSQL 22% 23% 28%
#5 DRaaS 21% 14% 17%
Top Growing Cloud Services
Top Growing Cloud Services
Source: RightScale 2018 State of the Cloud Report

52. Finding:
Private Cloud Adoption Grows

53. 13%
17%
22%
23%
24%
24%
50%
10%
21%
11%
11%
11%
16%
8%
5%
12%
7%
7%
7%
7%
5%
CloudStack
Microsoft Azure Stack
Bare-Metal Cloud
Microsoft System Center
VMware vCloud Director
OpenStack
VMware vSphere/vCenter
Private Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Adoption – All Respondents
Source: RightScale 2018 State of the Cloud Report

54. 8%
14%
15%
16%
20%
42%
13%
17%
22%
23%
24%
24%
50%
CloudStack
Microsoft Azure Stack
Bare-Metal Cloud
Microsoft System Center
VMware vCloud Director
OpenStack
VMware vSphere/vCenter
Private Cloud Adoption 2018 vs. 2017
% of Respondents Running Applications
2018
2017
Private Cloud Adoption YoY – All Respondents
Source: RightScale 2018 State of the Cloud Report
Not asked in 2017

55. Finding:
VMware and AWS Have More VMs,
Azure and Others Closing Ground

56. 2%
3%
4%
5%
10%
15%
2%
3%
5%
7%
7%
2%
3%
4%
4%
7%
14%
9%
2%
3%
5%
4%
12%
15%
7%
7%
10%
24%
16%
34%
33%
13%
CloudStack
IBM Cloud
Google Cloud
OpenStack
Azure
AWS
VMware vSphere
Number of VMs in Cloud
% of Respondents
1000+ 501-1000 101-500 51-100 1-50
# of VMs in Cloud – All Respondents
Source: RightScale 2018 State of the Cloud Report

57. 5%
7%
9%
15%
21%
38%
42%
7%
9%
12%
16%
29%
37%
47%
CloudStack
IBM Cloud
Google Cloud
OpenStack
Azure
VMware vSphere
AWS
Respondents with 50+ VMs in a Cloud
% of Respondents
2018
2017
Respondents with 50+ VMs in a Cloud
Source: RightScale 2018 State of the Cloud Report

58. Area AWS Azure Google IBM
% Adoption 68% 58% 19% 15%
YoY Growth in Adoption 15% 35% 26% 50%
% Adoption in Beginners 47% 49% 18% 14%
% with Footprint >50 VMs 58% 44% 17% 14%
YoY Growth in Footprint> 50 VMs 14% 38% 42% 56%
AWS Lead in Enterprise Shrinks
AWS vs. Azure vs. Google vs. IBM Enterprise Scorecard
Source: RightScale 2018 State of the Cloud Report
Other vendors lead AWS
AWS leads

59. • For an executive summary of key 2018 cloud trends plus in-
depth data, charts, and analysis, download the report at
www.rightscale.com/lp/state-of-the-cloud
RightScale 2018 State of the Cloud Report