Keynote presentation from Cloud Connect Chicago 2012 summarizing results from a joint Everest Group - Cloud Connect survey on enterprise cloud adoption

1. Enterprise Stakeholders Speak:
Adoption Patterns, Barriers & Post-Adoption
“Cloud Sentiment
Cloud Sentiment”
September 12, 2012

2. Why Do Another Cloud Survey?
• ‘Peel back the
onion’ on adoption
Survey Respondents
patterns 100% = 346
Cloud Service Consultants /
• Assess post-
post- Providers Advisors
adoption reality vs
buyer expectations 31%
37%
• Identify cloud
market 32%
‘disconnects’
Enterprise / Cl d
E t i Cloud
Service Buyers
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3. What Did We Look At?
Overall Enterprise Adoption Patterns
• Use case • Platform
• Stack layer • Verticalization
Underlying Adoption Drivers
y g p
• Business
• Technology
Decision-
Decision-Making Process
• Functional involvement
• Executive role
Adoption Results and Satisfaction
• IT
• Business
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4. Business Factors are Primary Drivers of Adoption
TOP ENTERPRISE
CLOUD ADOPTION DRIVERS
1) Reduced time for application /
infrastructure provisioning
•S
Speed
d
2) Flexible capacity
3) Lack of internal
)
technical resources
• Flexibility
4) Desire to “variabilize” cost • Scale
5) Reduction in TCO
(Total Cost of Ownership)
6) Industry-specific factors
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5. While SaaS has Driven Most Adoption to Date, IaaS is
Set to Accelerate
Enterprise Cloud Adoption by Cloud Layer Enterprise IAAS Adoption Plans
Already adopted Adopt in distant future
Adopt in near future No plans to adopt
No plans for cloud
57% infrastructure
Software as a Service 28%
(SaaS) 10%
5%
38%
Platform as a Service 25% 18%
(PaaS) 27%
10%
31% 48%
Public cloud (IaaS) 26%
18%
26% 34%
30%
Private cloud (IaaS) 36%
23%
11% Already have Plan to
28% cloud implement cloud
Business Process as a 27%
Service (BPaaS) 22% infrastructure infrastructure
23%
17%
Hybrid cloud (IaaS) 27%
36%
20%
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6. Future Adoption Plans Are Primarily Focused on
Enabling Business Capabilities
Enterprise Cloud Adoption by Use Case
29% Future migration planned
Application development/test 25%
environment 28% No migration planned
19%
28% Already migrated
Custom business applications 17% Currently migrating
31%
24%
25%
Collaboration / email 16%
46%
13%
25%
Disaster recovery/storage/data 20%
archiving 42%
14%
22%
E-commerce and on-line tools 25%
32%
22%
19%
Business intelligence/analytics 16%
39%
26%
18%
ERP %
19%
25%
37%
Proprietary & Confidential. © 2012, Everest Global, Inc. 6

7. Enterprise Cloud Buyers are Satisfied
of cloud buyers met their of cloud buyers met their
82% flexible infrastructure
objectives
bj ti
71% time to market
objectives
were satisfied with Expect to achieve greater
64% the current results from
their cloud initiatives
88% benefits from cloud
solutions in the future
Proprietary & Confidential. © 2012, Everest Global, Inc. 7

8. Cloud Vendors Think It’s About Cost.
It’s Not.
TOP ADOPTION DRIVERS ACCORDING TO:
BUYERS: CLOUD VENDORS:
1) Reduced time for application / 1) Reduction in TCO
infrastructure provisioning (Total Cost of Ownership)
2) Flexible capacity 2) Flexible capacity
3) L k of i t
Lack f internall 3) R d
Reduced ti
d time f application /
for li ti
technical resources infrastructure provisioning
4) Desire to “variabilize” cost 4) Desire to “variabilize” cost
5) Reduction in TCO 5) Lack of internal
(Total Cost of Ownership) technical resources
6) Industry-specific factors 6) Industry-specific factors
Proprietary & Confidential. © 2012, Everest Global, Inc. 8

9. Vendors Think Management Buy-In is a Problem.
Are They Talking to the Right People?
TOP ADOPTION BARRIERS ACCORDING TO:
BUYERS: CLOUD VENDORS:
1) Security concerns 1) Security concerns
2) Cloud service integration
integration 2) Cloud service integration
integration
3) Lack of budget for new initiatives 3) Lack of management buy-in
) g y
4) Lack of suitable cloud solutions 4) Lack of budget for new initiatives
5) Lack of internal cloud expertise 5) Lack of internal cloud expertise
6) Fear of vendor lock-in 6) Lack of suitable cloud solutions
7) Lack of management buy-in 7) Fear of vendor lock-in
Proprietary & Confidential. © 2012, Everest Global, Inc. 9

10. Many Cloud Vendors are Misaligned with the Market
How the Enterprise
is Buying…
Buying
‘Innovators’ ‘Transformers’
siness
Deploying SaaS and PaaS Leveraging cloud and next
solutions to rapidly provide generation IT to create
new business capabilities, new, disruptive business
, p
Bus
and extend reach, with little models and strategic
or no IT involvement business advantage
Driver
‘Opportunists’
Opportunists ‘Modernizers’
Modernizers
D
Selectively deploying PaaS Driving wide-scale IT
and IaaS (public and modernization and How Vendors
IT
private) solutions to drive transformation efforts are Selling…
Selling…
improvements in agility and through public, private and
public
cost hybrid cloud platforms
Incremental Transformational
Adoption Approach
Proprietary & Confidential. © 2012, Everest Global, Inc. 10

11. What Did We Learn?
1. Business ( t IT) is the Primary
1 B i (not i th P i
Driver of Enterprise Cloud Adoption
2. Enterprise Buyers are Pretty Happy
- So Far….
3. Service Providers Need to Adapt to
the ‘Next Generation Buying Center’
Proprietary & Confidential. © 2012, Everest Global, Inc. 11

12. How To Get a Copy of the Full Survey
1 Download at:
http://www1.everestgrp.com/ccevent.html
2 Request a copy:
scott.bils@everestgrp.com
512-550-0207 (m)
214-451-3043 (o)
Proprietary & Confidential. © 2012, Everest Global, Inc. 12