cutting through the fog: what is private cloud and what role does it play in the broader it market?
DESCRIPTION
While some vendors found themselves unprepared for the first waves of public cloud adoption, they can now catch up with the market through the solutions and purchasing processes offered through private cloud. Private cloud offers the benefits of cloud without customers needing to shift all responsibility of delivery to an external firm. As a result, budgets for and adoption of private cloud are increasing, driving a market opportunity increasingly on par with the more mature public cloud space. TBR’s research team invites you to view a webinar that originally aired Thursday, July 31, 2014, highlights TBR’s research-based findings and focus on how private cloud will transform the market. This webinar provides high-level analysis of vendor opportunity and the customer and competitor landscapes surrounding private cloud. Cloud Practice Manager and Principal Analyst Allan Krans and Content Manager Christian Perry shared their perspectives on the trends driving private cloud adoption and provide webinar attendees with additional insight into vendors’ strategies and the future of the private cloud market. They then fielded questions from the audience related to the report. Questions for discussion will included: • How do customers perceive and purchase private cloud? • Which are the leading vendors in the third-party-managed and self-built private cloud markets? • What strategies are leaders utilizing and in what direction are they headed?TRANSCRIPT
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
Cutting through the fog: What is private cloud, and what role does it play in the broader IT market?
July 31, 2014
TBR’s Private Cloud Webinar
TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Private Cloud Webinar: Presenter
Allan KransCloud Practice Manager
Email: [email protected] Twitter: @allankrans
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TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Key Takeaways: Point 1
Private clouds, combined with increasing management and integration capabilities, will enable the next step in cloud solution delivery
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Customization is the driving force behind the growth in private cloud opportunity.
Multiple routes will exist for customers to create and consume more cloud-delivered integrated solutions.
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Skills are a barrier vendors will need to help customers overcome.
TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
• Skills to manage delivery and security• Growing public cloud
accessibility
Growth in private cloud will moderate as the broader market develops skills to build or consume IT through this new delivery methodGlobal Private Cloud Market
Drivers
2014:$41 billion
2018: $69 billion
Barriers
• Line of business (LOB) purchasing involvement• Tight data center capacity• Emerging standards
50%CAGR
14%CAGR
2010: $8 billion
Cloud Customization
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Private cloud adoption returns more of the control and consideration to the IT department
Public Cloud Adoption • Shadow IT purchasing• Fragmented management
Private Cloud Adoption• IT-driven purchasing• Traditional management
Early Hybrid Adoption• IT and LOB purchasing• Modern management
Technology-focused Adoption
Outcome-based Adoption
Pendulum of Cloud Adoption
IT is at least involved, if not
controlling, nearly 70% of private
cloud purchasing.
Security, usage monitoring and integration are
top private cloud concerns.
Cloud Customization
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Integration and
Aggregation Layer
Delivering cloud services as solutions is a largely services-based opportunity that exists above and across cloud servicesCloud Solutions Delivery Options
Public Cloud CRM
Self-built Private ERP
Traditional On-premises Accounting
Outcome
Delivered via: Systems Integration
Managed ServicesCloud Orchestration Services
Business Process as a Service (BPaaS)Cloud Brokerage
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Cloud Customization
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Key Takeaways: Point 2
Private clouds, combined with increasing management and integration capabilities, will enable the next step in cloud solution delivery
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Customization is the driving force behind the growth in private cloud opportunity.
Multiple routes will exist for customers to create and consume more cloud-delivered integrated solutions.
Skills are a barrier vendors will need to help customers overcome.
TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
With IT more involved, private cloud is highlighting the gaps between cloud services and traditional IT organizationsGaps in Private Cloud Capabilities
NIST Cloud Essential Characteristics:
1. On-demand self-service2. Broad network access3. Resource pooling4. Rapid elasticity5. Measured service
Corporate IT Typical Characteristics:
1. IT-serviced2. Dedicated networks3. Resource dedication4. Incremental elasticity5. Aggregate service
Private cloud is highlighting the gaps
Top barriers:
How can I scale efficiently?
How can the usage be metered and reported back to constituents?
How can these services be integrated and
secured?
Private Cloud Skills
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TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Gaps in the skills and requirements for application migration significantly impact the workloads that can be transitioned to private clouds2014 Expectations Versus Reality
Private cloud apps
Private infrastructure
Private cloud apps
Private infrastructure
Growth Expectations for 2014 2014 Growth Reality
Workloads migrated to private cloud
2014 has been a near total reversal of expectations for which workloads would be migrated to private cloud.
Private Cloud Skills
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TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Public cloud data center build-outs are slowing, causing cloud components demand and growth opportunities to shiftAs public cloud service providers satisfy their base-layer IT infrastructure requirements,incremental enterprise private cloud build-outs will lead cloud components revenue growth
Private Cloud Skills
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Rapid ODM-enableddata center build-outs
Publiccloud components
Privatecloud components
Year
-to-
year
reve
nue
grow
th
2012 2018
We are just ahead of the inflection point in growth
Accelerated migrationby early adopters
Incrementaladoption growth
SOURCE: TBR ESTIMATES
TBR
TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Cloud Components Market
With virtualized base-layer hardware in place, customers will shift focus to software-led efficiency and simplicity in 2015
$19.4B
$27.5B
$39.3B
Operations management and security software will lead 2013 to 2018 growth due to the need
to manage and secure hybrid clouds.
Infrastructure
optimization
IT efficiency and
IT operation simplification
Private Cloud Skills
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Key Takeaways: Point 3
Private clouds, combined with increasing management and integration capabilities, will enable the next step in cloud solution delivery
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Customization is the driving force behind the growth in private cloud opportunity.
Multiple routes will exist for customers to create and consume more cloud-delivered integrated solutions.
Skills are a barrier vendors will need to help customers overcome.
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Managed
Self-built
Solution Routes
Pressure to weigh opportunity cost and time to market is driving more customers to LOB-driven managed private cloud deploymentsGlobal Private Cloud Market
70% of customers adopted
30% of customers adopted“I like having all of my marbles in my hands; with the cloud, I have handed all my marbles to someone else and said, ‘Please look after them, watch out for them.’” — Large enterprise self-built cloud customer
• More LOB involvement• Less centralized purchasing
• Higher IT control• More centralized purchasing
“Say you can do [some function] through the cloud for a million dollars. And IT says, ‘Well, we can do it for $700,000.’ [The] payoff of that would be a no-brainer. But now it’ll take up to six months. What’s the opportunity cost of those five months? So, it drives a different analysis.” — IT Architecture, $10B+ Retail, U.S.
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Cloud Expenditures
The pockets of growth in private cloud are shifting from infrastructure to more mission-critical development and application workloads
Decreasing growth rates as initial infrastructure-focused spending loses momentum
Rising importance as private development of environments and application replatforming assume greater importance
The most investment-rich area that will gradually gain momentum in dollars spent; the rate of spending growth will hinge on customer success stories and winning approval for core application migrations.
Solution Routes
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Customization Method: Brokerage and Integration
The continuum of brokerage, integration and aggregation will be one of the strongest areas of cloud growth over the next 5 years
Brokerage Integration
•Aggregation (marketplaces)• Integration (of multiple cloud environments and services)• Customization (services-led)
• Platforms (cloud or software)•API management• Catalogs and frameworks
Solution Routes
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SOURCE: TBR ESTIMATES
TBR
Integration and Aggregation Layer
TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Private Cloud Webinar: Q&A
Questions?
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Private Cloud Webinar: Contact Information
James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research
Allan KransCloud Practice Manager
Email: [email protected] Twitter: @allankrans
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
TBR Cloud Research Overview
Continual portfolio expansion elevates TBR’s and clients’ knowledge of what ‘cloud’ means to vendors and customers
Accenture CSC RackspaceAWS Dell ServiceNowAtos Fujitsu TCSCognizant IBM Verizon
Capgemini Microsoft
Deloitte OracleGoogle SAPHP WiproInfosys
Salesforce.comWorkday
Hybrid CloudCustomer Report
Private CloudCustomer Report
Cloud Professional ServicesCustomer Report
Topical Cloud Reports: 2014 reports include Orchestration, and LOB vs. IT
Public CloudBenchmark
Managed Private & Professional Services Cloud Benchmark
Cloud ComponentsBenchmark
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TBR
TBR Quarterly Webinar Series | 7.31.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Cloud Vendor Reports (Cloud Business Quarterly)
Benchmarks (Benchmark XLS data is also available)
• Accenture Cloud*• Amazon Web Services*• Atos Cloud*• Capgemini Cloud*• Cognizant Cloud*• CSC Cloud*• Dell Cloud*• Deloitte Cloud*• Fujitsu Cloud*• Google Cloud*• HP Cloud*• IBM Cloud*• Infosys Cloud*• Microsoft Cloud*• Oracle Cloud*• Rackspace* • Salesforce.com • SAP Cloud*• ServiceNow* • TCS Cloud*• Verizon Cloud*• Wipro Cloud*• Workday
Public Cloud BenchmarkThe public cloud program compares and analyzes the strategies, results and drivers of 50 key vendors in the public cloud segment across Software as a Service, Platform as a Service and Infrastructure as a Service.
Managed Private & Professional Services Cloud Benchmark*The managed private cloud and professional services program compares and analyzes the strategies, results and drivers of 29 key vendors in the managed private cloud and professional services market across Business Process as a Service, Software as a Service, Platform as a Service, Infrastructure as a Service, cloud consulting, cloud SI and cloud ADM.
Cloud Components Benchmark*The cloud components program compares and analyzes the strategies, results and drivers of 12 key vendors that sell the building blocks of software and hardware used to construct public and private clouds.
Note: There are also three semiannual cloud adoption studies and cloud topic reports (Cloud Security is available now and Cloud Orchestration is upcoming).
Syndicated Research CoverageTBR Cloud Practice Syndicated Coverage
*Semiannual Report
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TECHNOLOGY BUSINESS RESEARCH, INC.
About TBR
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