cloud computing in germany results of a cloud computing...
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Cloud Computing in GermanyResults of a cloud computing user survey amongst German companies
Deloitte Consulting GmbH
March 2011
Cloud Computing represents a major change in information technology sourcing and
services delivery
Service Source
Public Cloud (External)
Hybrid Cloud
Community Cloud
Business Model
Cloud Service Subscriber
Cloud Service Broker
Cloud Service Provider
Cloud Service Enabler
Service Type
Business-as-a-Service
Software-as-a-Service
Platform-as-a-Service
Infrastructure-as-a-Service
Cloud Computing is changing in how business purchase and deploy IT services, based on
the emergence of internet standards and virtualization.
“Location independent resource
pooling”
“Rapid elasticity”
“Pay per use”
“Ubiquitous network access”
“On-demand self-service”
Internet technologies,
virtualization &
standardization
Private Cloud
Cloud Computing definitions used for this survey
Cloud Computing in Germany1
Cloud Computing is an architectural which has evolved from traditional vertically
integrated systems to multi-tenant model
Each stage brings higher capacity utilization, scalability, and flexibility
Traditional
Architectures
Large Scale
Hypervisors
Virtualized O/S
Multi-Tennant
Cloud Computing
Cloud computing use a highly virtualized shared computing environment
Stages of Computing Architectures
App
OS
Hardware
App
OS
Hardware
Virtualization
Hardware
Virtualization
Hardware
Cust A App
Cust A App
Cust A App
Cust A App
Cust B App
Cust B App
Cust B App
Cust B App
Cust C App
Cust C App
Cust C App
Cust C App
Customer
“A”
App
OS
Hardware
App
OS
Hardware
App
OS
Virtualization
App
OS
App
OS
Hardware
App
OS
Virtualization
App
OS
App
OS
Hardware
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
App
OS
Hardware
App
OS
Hardware
App
OS
Virtualization
App
OS
App
OS
Hardware
App
OS
Virtualization
App
OS
App
OS
Hardware
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
Customer
“B”
Customer
“C”
App
OS
App
OS
App
OS
App
OS
App
OS
App
OS
1
2
3
4
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
VM
Cloud Computing in Germany2
Possible usage models vary for cloud computing architectures in enterprise settings,
as shown below:
External Clouds
Data Centre
Private CloudIaaS Cloud Other
Clients
Vendor Data Centre
Other
Clients
Data Centre Core Systems
Data Centre
Hybrid Cloud PaaS
CloudOther
Clients
Vendor Data Center
Vendor Data Center
Enterprise Data Center
Private
CloudOther
Clients
Vendor Data Center
SaaS
Cloud
Enterprise Users
Cloud Computing in Germany3
© 2011 Deloitte Consulting GmbH
Cloud computing is based on a virtual global delivery model. However, local
legislation needs to be obeyed for a ―world service‖
AustraliaFederal Privacy Amendment BillState Privacy Bills in Victoria, New South Wales and Queensland, new email spam and privacy regulations
Numerous State LawsBreach Notification39 States from CA to NY
European UnionEU Data Protection Directive and Member States Data Protection Laws
South AfricaElectronic Communications and Transactions Act
U.S. Federal
GLBA, HIPAA, COPPA, Do Not Call, Safe Harbor, Red Flags
Hong KongPersonal Data Privacy Ordinance
Canada Federal/ProvincialPIPEDA, FOIPPA, PIPA
ChileLaw for the Protection of Private Life
South KoreaAct on Promotion of Information and Communications Network Utilization and Data Protection
New ZealandPrivacy Act
ArgentinaPersonal Data Protection Law, Confidentiality of Information Law
PhilippinesData Privacy Law proposed by ITECC
TaiwanComputer-Processed Personal Data Protection Law
JapanPersonal Information Protection Act
IndiaLaw pending currently under discussion
Impact on Cloud Computing — N. America
• The data owner must take reasonable
steps to ensure that the service provider is
capable of maintaining appropriate
safeguards to protect customer
information.
• Companies subject to the Massachusetts
regulations should determine whether the
cloud provider maintains appropriate
security measures to protect the data to
be stored.
• A process must be determined for data
owner to be notified by the cloud provider
that its data had been subject to
unauthorized access or acquisition.
Impact on Cloud Computing — EU
• Data Controller must undertake
assessment of its responsibility for the
personal data processed by the cloud
provider and enter into a data processing
agreement requiring the cloud provider to
act only according to the company's
instructions.
• Legal mechanisms for data transfer are
challenging to implement in a cloud
context and may require the approval of
an EU data protection authority.
• Due to the increased level of public
access to the cloud, the cloud provider
should be required by contract to inform
data controllers of any data breach
incidents.
• Requests for access, blocking,
rectification, or deletion of data are
effectively and properly managed.
4 Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
Due to lack in governance and a lack of trust in cloud providers limits the adoptation
of cloud based solutions within German corporations
No54%
Yes 46%
0 10 20 30 40 50 60
Unclear licensing
No financial advantage
Risk of vendor lock-in
Doubt with regards to the service
duration and availability
Conliance and legal
unclarity
Unsuffcient data protection
Limited control and
weak governance
5
The majority of German businesses is currently not using cloud services and is not planning to do so in the near
future
Main reasons against the usage of cloud serices are lack of control, compliance and limited trust in the
capabilities of the cloud providers
Prozent
1
2
1
2
Question: Are you currently using cloud services or do you intend to adopt cloud
based solution in your productions within the next 12 months?
Question: What are the reasosn for you not to embrace cloud services?
(Multiple answers possible)
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
Our analysis revelas a siloed approach for current cloud implementations
– IT is not recognized as a true business partner
6
Percentage 0 5 10 15 20 25 30 35
Other
Production
Logistics
Controlling
Finance
HR
Marketing
Service
Sales
IT
1
2
Percentage
0 25 50 75 100
Business
Business &
IT
IT 92%
8%
0%
0 25 50 75 100
Business
Business &
IT
IT 33%
50%
17%
Percentage
Question: Which departments are currently using Computing services?
(Multiple answers possible)
Question: Whio is driving cloud services in your comapny?
(Multiple answers possible)
• The current statistic reveal that cloud initiatives are mainly driven by the IT department
• Initiatives to drive the business by cloud services are driven by the business itself in in 50% of all cases
1
2
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
Amongst all cloud based solutions, companies take a more conservative approach
7
0
10
20
30
40
50
60
PaaSBPaaSIaaSSaaS
0
10
20
30
40
50
60
PublicHybridPrivate
• Software-as-a-Service is the most commonly used
cloud service
• Corporations have been less active in BPaaS und
PaaS based cloud implementations
Service-Typ
• Companies are currently embracing Private Cloud-
delivery models
• As a main driver the respondents argued with a
better manageability and end-to-end governance
Cloud-Typ
Percentage Percentage
Question: Please specify the cloud service type, which you have been using Question: Please specify the cloud type
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
Iaas and PaaS service types are currently evaluated in a private cloud model
8
• Many cloud initiatives are still in an
initial state
• IaaS and PaaS models are currently
evaluated
Private Clouds are mainly used in
the context of IaaS or SaaS delivery
models.
Participants commonly reported
unexpected cost increase when public
cloud based solutions were taken into
production
This might foster the adaptation of
private based Iaas and SaaS solutions,
as increase cost for fault operation and
security can be better contained
1
2
2
3
Cloud solutions in day-2-day operation
Initial Cloud implementations
2
Implemetation
status
3
1
Question: Please specify the state of readiness
of your cloud implementation
0 10 20 30
Esablis
hed
Produc
tion
Implementation
Pilot
Evaluation
0
2
4
6
8
10
12
14
0
5
10
15
20
25
30
PaaSBPaaSIaaSSaaS
PublicPrivate Hybrid
Cloud Computing in Germany
PaaSBPaaSIaaSSaaS
© 2011 Deloitte Consulting GmbH
Cloud computing is only for a minority of respondents on the strategic agenda. The
current focus is pilot testing
9
• Cloud computing initiatives mainly carried out to
proof economical and technical benefits
Respondents have named functional benfits and the
instnat availability as additional benefits
• 74% of all participants have claimed that cloud
computing is currently not on their strategic agenda
Qurestion: Name you main motivation to use cloud services
(Multiple answers possible)
Question: Is Cloud Computing part of you business or IT strategy?
Prozent
21
2
1
3
3
Not known
22%
Yes
(Clear approach and
defined roadmaps)
26%
No52%
0 10 20
Other
Compelling
reason to act
Clear cloud
mandante
Technical
pilot
Proof of economical
Benefits
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
• Flexibility due to increased scalability, cost reduction and the avoidance of larger investments are most frequentlyy
named benefits, which drive the cloud adaptation
• More than half of the respondents had to confrm that those benefits have not been realized yet
More than half of the respondents claim to not have achieved their expectations on
flexibility, cost reduction and avoidance of larger IT investments
10
Question: Have you been able to realize the benefits?
1
2
1
2
Percentage
Question: Which business and IT benefits are you addressing with cloud based solutions?
(Multiple answers possible)
0 10 20 30 40
Decrease dependence on
internal IT
Avoidance of
investments
Cost reduction
Increased Flexibbility
Other
Increased functionality
Quick distribution
Yes 45%
No55%
Benefit not achievedBenefit achieved
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
• The majority of participants want to expand the footprint of cloud computing. Many of them have been able to
achieve the expected benefits
• About a quarter of all participants is planning to maintain the existing cloud computing approach just to observe
how th emarket in general and the cloud providers in particular are changing
• In most case companies want to proceed with coud computing the most frequently mentioned activity will nbe a
furhter integration of cloud services into the existing IT landscape. However, business critical processes and
systems remain out of scope
Corporations are willing to extend the adoptation of Cloud computing, if they manage
to achieve the expected benefits
11
1
2
1 3
0 10 20 30 40
Other
Revert
Maintain
Increase
0 10 20 30 40
Business critical
processe and
systems
Further migration into
the cloud
Further integration
Prozent Prozent
2
3
Question: What are your next steps with regards to cloud computiung?
(Multiple answers possible))
Question: What are you short term (next 12 months) activites in the cloud?
(Multiple ansers possible)
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
• The common criteria to vet the trustworthiness of an IT provider such as certification level, references and
recognition do also apply forcloud providers
• Interestingly enough, the location and local presence of a cloud provider play an important role
Cloud Computing provider can increase trust in their offerings by certificates and
good overall reputation
12
Q: What makes a cloud provider trustworthy? (multiple answers allowed)
Percentage
1
2
1
2
0 10 20 30 40 50
Independence
Established
Player
References
Auditiert/
Zertifiziert
Location
Brand
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbH
The adaptation of Cloud Computing is significantly higher in the US compared to
Germany. However security and governance are equally important
13
Germany USA
Adoptation
Level
German enterprises are leveraging cloud computing less.
Only 46% currently apply cloud services and the majority
is not planning to apply large scale cloud services in live
production
With 55%, US companies proof a higher cloud adaptaion
level with 90% forecasting cloud deployments within the next
three years
Provider
aspects
German and American companies apply similar selection criteria when choosing a cloud provider, such as security .
However, US firms seem to have more confidence in the mostly US based cloud providers
Confidence buiding aspects:
Certification, References, Track Record
Selecion criteria:
Security, Pricing, Scalability
Top Cloud
Computing
Provider
The same group of cloud provider is dominationg the market in the US as well as in Germany
1. Google
2. Microsoft
2. Amazon
3. IBM
4. Salesforce
1. Microsoft
2. Salesforce
3. IBM
4. Google
5. Amazon
Cloud Type Private cloud computing is seen as an entry model for larger corporations in both economies, US and Germany. In any
case a trade off between cost adavantages and trust issues for public clouds determines the actul deployment model
German coporations generally are in exploarion mode
when it comes to cloud cloud computing
US companies are very confident to leverage the cost
benefits of private clouds and are increasingly willling to
expand to public cloud models
Cloud Computing in Germany
© 2011 Deloitte Consulting GmbHInnovation Funding in the Cloud
R&D budget Market position Revenue
Innovation fundingFoster R&D activities: cash effect, strategic instrument andleverage effect
Public funding leads to significant benefits for all of the companies’ fields of
interest
14
• Funding is primarily granted in
form of non-repayable cash
grants cash effect
• Influence future funding topics
through own funding demand
• Stimulates investments in novel
technologies platform for future
product generations
• Strengthens networks
• Grants access to knowledge ahead
the state of the art
• Increases possibilities of new
market access
• Provides powerful
marketing channels
and tools
• Internationalization of
company
• Increase of ROI
© 2011 Deloitte Consulting GmbH
Funding opportunities
EU level: ICT Work Programme 2011/2012
Innovation Funding in the Cloud15
What is funded (extract)?
• Management of cloud resources
• Technologies for infrastructure
virtualization
• Interoperability amongst different clouds
• Seamless support of mobile, context-
aware applications
• Energy efficiency and sustainability for
software and services on the cloud
• Integration of computing and networking
environments
• Open Source implementations of a
software stack for clouds
Where to apply?
• European Commission, DG Research
• Application for specific Calls published by
the EC
Modes of Funding?
• Non-repayable cash grants
• Funding quota: up to 50 % – 100 % of
eligible costs
funding quota depends on the
status of the funded entity (large
company, SME, university,
research istitutions, etc.)
Who is funded?
Consortia consisting of at least three
partners of different nationality from
• Companies conducting R&D in Europe
• Universities
• Research institutions
• Selected public bodies
EUR 1.9
billion*
* Planed funding budget for ICT innovation projects in 2011/2012 (FP 7)
© 2011 Deloitte Consulting GmbH
Funding opportunities
Federal level: IKT 2020 Strategy
Innovation Funding in the Cloud16
What is funded (extract)?
• Trusted Cloud Initiative: IaaS-, PaaS-,
and SaaS applications for private and
public sector Community Clouds
• Horizontal applications eg. costumer
relationship management, HR,
accounting
• Regional clouds
• Applications serving the needs for
enhanced security of public bodies
• Other applications with innovative cloud
approaches
Where to apply?
• Ferderal Government of Germany:
Federal Ministry of Economics and
Technology
Federal Ministry of Education and
Research
Modes of Funding?
• Non-repayable cash grants
• Funding quota: up to 50% - 100%
funding quota depends on the
status of the funded entity (large
company, SME, university,
research institutions etc.)
Who is funded?
• Companies conducting R&D in Germany
• Universities
• Research institutions
• Public bodies
EUR 1.5
billion*
* Federal funding granted within the IKT 2020 Strategy since 2007
© 2011 Deloitte Consulting GmbH
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Robert HorndaschPartner
Technology, Media and
Telecommunications
17 Cloud Computing in Deutschland
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