2011 Cloud Trends Report

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<ul><li> 1. 2 011CLOUD TRENDS</li></ul><p> 2. Executive Summary Overview RESPONDENTSOVER 500The 2011 Cloud Computing Trends and Best Practices Report was designed toidentify both best practices and trends in cloud computing and hosting services and compare those with a similar report published in 2009. The cloud computingmarketplace continues to evolve rapidly and this study provides one of the mostcomprehensive analysis of the market 500+ respondents with significant IT plan-ning responsibilities participated.Three of the most significant trends that came out of this years report are: Cloud Computing is Exploding 44% indicated it is an Executive Priority Business Continuity and Disaster Recovery Are Driving Cloud Growth 5xAdditional Growth in Next 18 Months Hybrid Solutions Will Be Critical to Migration 80% of Respondents Likely toConsider Cloud Servers to Replace Physical ServersCloud Computing is a disruptive force that has and will continue to rapidly evolvethe way organizations utilize, consume and leverage compute resources. This re-port reveals that now more than ever companies are looking for solutions thatprovide more cost-effective, scalable and reliable solutions than the traditionalinfrastructure models previously delivered. The next 12 months, according to ourrespondents, will represent a fundamental and measurable shift in how companiesview and utilize cloud-based solutions. This report details the specific use cases,best-practices, obstacles and expectations of cloud computing from the viewpointof IT and business decision-makers.2 2011 Hosting.com Cloud Trends Report 3. 1. Explosive Growth Cloud computing is exploding - the increase in organizations indicating that cloud computing was a priority was dramatic. 44% of respondents indicated that it was a priority contrasted with3 TRENDS FOR 20113.Hybrid Cloud Solu-2.tions are a Sustain- only 24% in 2009.Business Continuity able On-Ramp for There will be a significant change in the num- ber of production applications and systems that&amp; Disaster Recovery Cloud Adoptionare Driving Cloud companies put into a cloud environment - respon- dents indicated that they have plans to increaseGrowthOrganizations do not want to waste infrastructure implementation of database services, disasterinvestments previously made and will go out of recovery and application hosting within the cloudBusiness Continuity and Disaster Recovery their way to find cloud solutions that augment by 3x 5x.(BCDR) services are driving significant growthand connect with their existing infrastructure. This growth could represent a disruptive threatin cloud hosting services - BCDR services were aOver 30% of all respondents (40% with greater to Value Added Resellers (VAR) and hardwaretop reason for investment in the cloud: Multiplethan 250 employees) indicated that their cloud vendors. 80% of the respondents indicated that datacenters and failover capabilities were an es- services providers must provide integration with they would use or evaluate cloud services as ansential requirement for evaluating hosting provid-their existing services. 78% preferred to imple- alternative to physical servers for their next hard- ers; Cloud recovery was listed as a top project for ment either a private cloud or private/public ware refresh.accelerating cloud adoption.combination.3 2011 Hosting.com Cloud Trends Report 4. Survey InfoHosting.com proactively engages with clients and prospects to effectively Q:understand their business goals to build solutions that are both client rel-evant and applicable. A core component of Hosting.coms client engagementstrategy is the use of surveying tools. The survey polled existing Hosting.comclients, strategic partners, prospects and was promoted via various socialmedia outlets. What is your involvementResponses from the Cloud Computing Trends Survey were collected from in IT decisions?October 25, 2010 and November 22, 2010.In sharing the results, Hosting.com will provide general demographic informa-tion about respondents and the companies they represent. Hosting.com will 70% Involved in IT strategy 58%not reveal the specific identity of any respondent or company. Recommend technology and vendorsDemographics 583 people responded to the Cloud Computing Trends Survey 53% Direct purchasing decisions 48% Organizations of all sizes were invited to participate. Many respondentswere from fast-growth startups and highly-organized online companies. Budget responsibility20% of respondents were from companies with more than 250 employees Respondents were decision makers - 53% of respondents were CxOs,Presidents, Owners or VPs 11% No direct involvement in IT decisions The vast majority of respondents were involved in IT decisions (89%were involved in some way with strategy, purchasing, budgeting andrecommending technology) All major industries represented including Financial Services, Retail, SocialNetworking, Healthcare, Manufacturing, IT Service Providers,4 2011 Hosting.com Cloud Trends Report 5. The CurrentCost and BCDR Preparedness Drive Cloud ComputingState of Cloud Similar to 2009, cost is still the primary driver for cloud computingComputing adoption. New in 2011, Business Continuity and Disaster Recovery (BCDR) options and capabilities greatly influence an organizations decision to invest in cloud computing. Small and large companies alike ranked BCDR solutions as a top reason for implementing a cloud strategy.What are the Three MostThe GrowingImportant Factors DrivingImportance of Cloud BasedInvestment in Cloud Computing? BCDR ServicesRankedRanked#1 Reason in Top 3 Reasons The cloud makes BCDR services accessible to more companies than30% Cost62% Costever primarily due to the high availability inherent to the cloud All Respondents20% BCDR53% BCDRand the ability to extend infrastructure across multiple service13% Flexibility 44% Flexibility provider datacenters. More than 50% of all respondents indicated that BCDR was one of28% Cost63% Costtheir top reasons for investing in cloud computing.Large Companies 20% BCDR50% BCDR16% Scalability 51% Scalability This places a significant emphasis on cloud services companiesto architect, plan and validate their ability to withstand outages,attacks and performance spikes. They must also develop cloudsolutions that stretch across multiple datacenters and seamlesslyintegrate with a clients own datacenter.5 2011 Hosting.com Cloud Trends Report 6. Obstacles to Cloud ComputingTop Ranked Obstacle Top 3 Ranked ObstacleSecurity / Shared EnvironmentsInability to Integrate With Existing InfrastructurePerformancePoor Management ToolsConsumption Based PricingRegulatory ConcernsControl Vendor / Lock-in 40%30% 20% 10% 0% 18% 35%53%70%Security Still Large ObstacleIntegration Looms as Most Difficult to AddressSecurity concerns remain a large obstacle and are discussed in detail on the next page, but integration withexisting infrastructure is the obstacle that requires the most analysis and response from cloud providers.55% of respondents identified this as an obstacle. The most successful cloud providers will develop strategiesto help companies leverage their existing investments in a secure and easy-to-manage solution.6 2011 Hosting.com Cloud Trends Report 7. Ranked #1 CharacteristicBiggest 26% Preventing data loss or leakageAll Respondents18% Keeping security up to date 13% Protecting against Denial of Service 21% Meeting regulatory requirements Large Companies 19% Preventing data loss or leakage 18% Keeping security up to date Ranked in Top 3 Characteristicssecurity 57% Preventing data loss or leakageAll Respondents45% Preventing outages 43% Keeping security up to dateconcerns for 55% Preventing data loss or leakage Large Companies 45% Meeting regulatory requirements 42% Preventing outagescloud Preventing data loss or leakage was the largest security concernwith 26% rating it as the #1 concern and 57% including it in their topcomputing3 concerns. Large companies were particularly concerned with meetingregulatory requirements. 21% ranked it as their top security concernand 45% included it in their top 3 it was not in the Top 4 forsmaller companies. This is indicative of the larger amount of datastored and protected by larger companies. Their risk from exposurestands to be much higher with regards to penalties and finesassociated with not meeting regulatory demands. Keeping security updated continues to be a concern. Advances inLarge companies were particularly virtualization help address this concern; however, cloud providersmust clearly present their practices for maintaining a secure cloudconcerned with meeting regulatory to help reduce security concerns. This was the #2 ranked overallrequirementsconcern and 43% of respondents rated it as a top 3 securityconcern.7 2011 Hosting.com Cloud Trends Report 8. 86% of large companiesThe Importanceindicated that theywould prefer a privateOf Hybrid cloud over a puremulti-tenant solution.Previous Investments in Trust in Multi-TennantInfrastructure MaximizedClouds Not High 31% of all companies and 40% of large companies indicatedWhen asked what type of cloud solution they wouldthat they would decide which cloud provider to select based likely deploy, an overwhelming 78% of all and 86%on the providers ability to integrate cloud with their existingof large companies indicated that they would preferinfrastructure. either a private, single tenant solution or a combinedprivate single tenant/public multi-tenant cloud over a Respondents ranked integration with their existing infrastructure aspure multi-tenant solution.the #2 obstacle to utilizing cloud services. Cloud providers are quickly working to develop portals andmanagement tools to allow companies to manage theirinfrastructure and external cloud resources through a single panof glass to address this concern. The ability for cloud adoption togrow exponentially is squarely hinged on providing this capabilityto companies.8 2011 Hosting.com Cloud Trends Report 9. 50% Respondents With Less Than 250 EmployeesBest Solutions38%for CloudComputing25%13%What 2 applications or Back Office ApplicationsTesting Developmentservices are best suited for Application ServerWeb ApplicationsFile/Print ServerTraditional ITDatabasecloud environments?Other0%The responses in 2009 and 2011 yielded nearly the exact same resultsfor smaller companies - web applications, application servers and13%database servers were the three solutions best suited for a cloudenvironment.For large companies there was a large difference in their use of thecloud for testing and development - 20% identified this as a top solu-25%tion as opposed to only 5% for small companies.Analysis: These results are consistent with existing data in the mar-ketplace and with Hosting.coms experience in providing cloud38%solutions to clients. However, throughout 2010 Hosting.com saw adramatic increase in the number of clients utilizing cloud solutions tosupport their mission-critical and back-office applications. Data laterin the study reflects the expected changes in usage.50% Respondents With More Than 250 Employees9 2011 Hosting.com Cloud Trends Report 10. CurrentWhat percent of your Virtualization existing infrastructureis virtualized? Environment30%23%20%replied less than 25%replied 0%replied 25-50% Cloud computing is not possible without a virtualization layer. Sub- 13% replied 50-75% sequently, understanding general virtualization trends also help us14% replied more than 75% better understand cloud trends. 53% of respondents replied they had either no or less than 25% ofHave you deployed aprivate cloud in your their infrastructure virtualized. Significant opportunity still exists for virtualization companies. There is equal opportunity for cloud pro- viders to introduce virtualization through their cloud services. Cloud virtualized environment? providers should view themselves as a pathway or onramp for com-All / Companies with 250+ Employees panies not only to experience cloud but also virtualization. Only 25% (35% for large companies) of the respondents we surveyed25%/35% Yes have deployed a private cloud in their virtualized environment. De-33%/43% No, but planning on it spite that a full 78% of large companies have either deployed or are42%/22% No, and no plans for it planning to deploy a private cloud. The disparity between large and small companies could be due in large part to smaller companies willingness to put their entire solutions within a cloud environment reducing the need to build private clouds.10 2011 Hosting.com Cloud Trends Report 11. How satisfied are you withthe results of your currentcloud services?All / Companies with 250+ Employees Cloud Services27% / 20% Very satisfied 60% / 65% Satisfied 8% / 13% Unsatisfied Usage &amp;.5% / 0% Very unsatisfied 4% / 2% Not using any SatisfactionCloud Service Usage: 53% (57% of large companies) of respondentsare currently using some form of cloud services.Cloud Satisfaction Good News: More than 85% of our respondentsindicated that they were either satisfied or very satisfied with theircloud services provider. Additionally, less than .5% indicated theywere very unsatisfied.Cloud Satisfaction Bad News: Only 27% or our respondents indi- Only 27% or our respondentscated they were very satisfied with their cloud services. This seems indicated they were very satisfied to indicate a significant opportunity to excel and exceed customer with their cloud services. expectations.Analysis: While the very satisfied number should be much higher,the huge value is that more than half of respondents are using cloudservices in some capacity and 85%+ are satisfied with it this will besignificant to the continued growth and success of cloud offeringsand providers. As companies race to robust and intuitive customerportals for cloud services management the very satisfied numbershould also grow.11 2011 Hosting.com Cloud Trends Report 12. Reasons For Moving to Cloud ServicesWhy did you choose to move to a cloud computing environment? All / Companies Under 250 Employees / Companies with 250+ Employees 50% / 48% / 57% To provide on-demand computing resources Analysis: Analysis: On-demand computingThe third highest response for why companies resources was the most important reason. How-adopted cloud shows that 38% of companies43% / 41% / 49% ever, the 2nd, 3rd and 4th reasons give the most deployed cloud to replace existing infrastructureTo gain access to more robust disaster insight into the current and potential future useand also reveals that smaller companies are more recovery and backup services cases for cloud. willing to make this change. 38% / 41% / 26% DR and backup was second This is not surprising; Finally, that 43% of large companies are using To replace existing infrastructure new buzzwords such as recovery as a service, cloud to extend their existing infrastructure fur- cloud recovery, cloud-based disaster recoveryther validates the need for rapid movem...</p>