five things you need to know to be successful in the cloud
TRANSCRIPT
Five Things You Need to KnowFive Things You Need to Knowto be Successful in the Cloudto be Successful in the Cloud
Lynda Stadtmueller
Program Director, Cloud Computing Services
StratecastStratecast
April 5, 2012
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
More than 20 years of telecom and IT industry management expertise,
Lynda Stadtmueller
Program Director, Cloud Computing &
Business Communication Services
Stratecast
2
More than 20 years of telecom and IT industry management expertise,
which includes international and SMB marketing, channel management,
sales and operations. Particular expertise in:
• Cloud Computing
• Managed Services
• Data Center Infrastructure
• Customer e-Service Portals
• Managed Mobility
The “Cloud” Defined
Software
as a Service
The cloud is a flexible and
scalable shared environmentin which third-party suppliers
distribute computing resources
The “cloud”
is an IT
Resources
Delivery
Model
Platform
as a
Service
Infrastructure
as a Service
to customers on demand.
Usage is charged on a pay-
per-use basis.
1. Everyone’s Talking about the Cloud, but Few are Doing Anything About It
Familiar with
and Currently
Use IaaS
9%
Familiar with
and Plan to
Implement IaaS
in the Next 2
Years
13%
Never Heard of
IaaS
11%
� Only 9% of U.S. businesses currently use IaaS.
�But there’s plenty of opportunity: IaaS revenues will grow 52% through 2015.
Business Adoption of Cloud Infrastructure Services (IaaS)
Familiar with
IaaS but No
Plans to
Implement
38%
Not very
Familiar with
IaaS
29%
N=301
Source: Frost & Sullivan 2011 U.S. Enterprise Cloud Computing Survey
52% through 2015.
�Tip: Build a
conservative business
plan.
�Tip: Focus on the
33% of businesses
that are “unconvinced”
about cloud value.
2. Cloud Users are Dabblers
22%
24%
27%
27%
31%
36%
40%
22%
33%
24%
31%
33%
37%
34%
3%
4%
6%
6%
9%
4%
6%
Short-term Mktg Progs
Proprietary/ Custom Apps
HR Mgmt
Collaboration/ UC
Storage
Website Hosting � IaaS adopters use services from an average of 2.6 cloud providers.
� And they place an average of 3 apps in the cloud.
12%
15%
15%
19%
21%
27%
30%
32%
28%
32%
9%
4%
9%
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Seasonal/Bursts
ERP
CRM
Test/Dev
Desktop Virtualization
Currently Use & Plan to Maintain for Next 2 Years Plan to Implement in Next 2 Years
Currently Use & Plan to Stop Using in Next 2 Years
Source: Frost & Sullivan 2011 U.S. Enterprise Cloud Computing Survey
apps in the cloud.
�Tip: Develop
products and
programs to
increase wallet
share.
3. IT Controls only Half of SaaS Spend (as far as they know)
IT is responsible
for subscribing to
and budgeting all
SaaS subscriptions
Functional teams
are responsible
for SaaS
subscriptions but
consult with IT
18%
Functional teams
have full authority
to subscribe to
SaaS apps from
their operating
budgets
13%
SaaS Decision Process� Only18% of U.S. businesses say they use SaaS.
�IT often cedes control of SaaS decisions to Line of Business managers.
� A piecemeal SaaS subscriptions
53%
Functional teams
request IT to
research SaaS
apps but retain
budget control
16%
18%
N=301
� A piecemeal approach can limit SaaS value.
� Tip: Educate
businesses on value of
a holistic IT/cloud
strategy – IaaS, PaaS,
SaaS.
Source: Frost & Sullivan 2011 U.S. Enterprise Cloud Computing Survey
4. Cloud Adopters Are Almost as Concerned about Cloud Risks as Non-Adopters
55%
54%
69%
69%
52%
57%
Confidential/sensitive data loss or
leakage
Exposure of confidential/sensitive
information to unauthorized systems
or personnel
% Citing High Concern about Cloud Risks�Cloud providers must market as aggressively to existing customers as prospects.
�Non-adopters understate the risks in
43%
55%
55%
61%
72%
37%
46%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Disruptions in the continuous
operation of the data center (i.e.
uninterrupted availability)
Susceptibility to cyber attacks
Believers (N=67) Unconvinced (N=112) Unfamiliar (N=122)N=301
their private data centers.
� Tip: Offer risk-
assessment, managed
security, and business
continuity services.
Source: Frost & Sullivan 2011 U.S. Enterprise Cloud Computing Survey
5. Mid-Markets Represent an Undertapped Opportunity for Cloud Providers
Less than
$25,000, 35%
$301,000 -
$600,000, 12%
$601,000 - $1
million, 6% Over $1 million,
1%
Budget to Implement 2011 Cloud/
Data Center Strategy
� Resource-constrained midsized businesses are particularly well suited to cloud.
�20% of U.S. mid-markets budgeted over $300,000 for cloud/data center strategy in 2011.$25,000, 35%
$20,000 -
$100,000, 27%
$101,000 -
$300,000, 18%
N=77
Source: Frost & Sullivan 2011 U.S. Enterprise Cloud Computing Survey
center strategy in 2011.
� 30% increased their budgets from 2010 to 2011.
�Tip: Target services and
go-to-market strategy
toward mid-markets.
Cloud Opportunity
�Cloud adoption will skyrocket in next 2-5 years among businesses.
�Businesses will demand private and hybrid models that give them more control and leverage investments.
�Cloud discussions are shifting from data center infrastructure to network infrastructure and application infrastructure to network infrastructure and application delivery.
� Integrated bundles and value-added services will be in higher demand than bare-metal and do-it-yourself models.
The cloud market of the future belongs to providers that can offer secure, integrated, high-performance application delivery
to end-users at a reasonable cost.
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For Additional Information
Mireya Espinoza
Corporate Communications
Information & Communication Technologies
(210) 247-3830
Lynda StadtmuellerStratecastProgram Director,Cloud [email protected]
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Craig Hays
Sales Manager
Information & Communication Technologies
(210) 247-2460