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January 2014 $99

Report ID: R7591213

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2014 Private CloudSurveyRespondents are on a roll: 53% brought their private clouds from

concept to production in less than one year, and 60% extend

their clouds across multiple data centers. But expertise is scarce, with

51% saying acquiring skilled employees is a roadblock.

By Art Wittmann

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4 Author’s Bio

5 Executive Summary

6 Research Synopsis

7 (Nearly) Zero To Private Cloud In Two Years

9 Resistance Is Futile?

11 No Fear, No Loathing

14 Private Cloud: The Last Nail In APM’s Coffin?

16 Not All Smooth Sailing

18 Vendor Blanket Bingo

22 Appendix

68 Related Reports

Figures

7 Figure 1: Private Cloud Strategy

8 Figure 2: Approach to New Technology Adoption

9 Figure 3: Reasons for Not Adopting a Private Cloud

10 Figure 4: Reasons to Consider a Private Cloud

11 Figure 5: Perceived Private Cloud Issues

12 Figure 6: Success of Private Cloud

13 Figure 7: Private Cloud Timeline

14 Figure 8: Success in Meeting IT Goals

15 Figure 9: Success in Meeting Business and Process

Goals

16 Figure 10: Challenges Encountered When

Launching a Private Cloud

17 Figure 11: Private Cloud Issues

18 Figure 12: Tech Updates Needed to Build

a Private Cloud

19 Figure 13: Importance of Private Cloud

Features

20 Figure 14: Use of Chargeback

22 Figure 15: Types of Private Clouds Offered

23 Figure 16: Private Cloud Across Multiple

Data Centers

24 Figure 17: Movement Among Data

Center Locations

25 Figure 18: Private Cloud Requirement for

New Applications

26 Figure 19: Required App-Level Features

and Functions

27 Figure 20: Dealing With Legacy

Applications

28 Figure 21: Approach Taken to Build a

Private Cloud

29 Figure 22: Acquiring Knowledgeable Staff

30 Figure 23: Build vs. Bundle

31 Figure 24: Private Cloud Vendors Used

32 Figure 25: Budget to Build a Private Cloud

33 Figure 26: Budget to Maintain a Private

Cloud

34 Figure 27: Impact of Industry Standards

on Product Selection

35 Figure 28: Use of Public Cloud Services

36 Figure 29: Use of Hybrid Cloud Model

37 Figure 30: Reasons for Not Using a Public

Cloud

38 Figure 31: Stage of Private Cloud

Deployment

39 Figure 32: Steps Taken to Build a Private

Cloud

40 Figure 33: Expected Private Cloud

Timeline

41 Figure 34: Expected Success of IT Goals

42 Figure 35: Expected Success of Business

and Process Goals

43 Figure 36: Expected Challenges of

Launching a Private Cloud

44 Figure 37: Potential Private Cloud

Problems

45 Figure 38: Necessary Tech Updates to

Build a Private Cloud

46 Figure 39: Importance of Private Cloud

Features

47 Figure 40: Plans for Chargeback UseCONT

ENTS

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TABLE OF

January 2014 2

2 0 1 4 P r i v a t e C l o u d S u r v e y



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reports

48 Figure 41: Planned Private Cloud Offerings

49 Figure 42: Planned Private Cloud Scope

50 Figure 43: Planned Movement Among Data

Center Locations

51 Figure 44: Planned Private Cloud

Requirement for New Apps

52 Figure 45: App-Level Feature and Function

Requirements

53 Figure 46: Plan for Handling Legacy

Applications

54 Figure 47: Planned Approach for Building a

Private Cloud

55 Figure 48: Strategy for Acquiring

Knowledgeable Staff

56 Figure 49: Planned Approach for Private

Cloud Purchase

57 Figure 50: Planned Private Cloud Vendor Use

58 Figure 51: Estimated Budget to Build a Private

Cloud

59 Figure 52: Estimated Budget to Maintain a

Private Cloud

60 Figure 53: Impact of Industry Standards on

Product Selection

61 Figure 54: Public Cloud Use

62 Figure 55: Hybrid Cloud Use

63 Figure 56: Reasons for Not Using or Phasing

Out Public Cloud

64 Figure 57: Job Title

65 Figure 58: Company Revenue

66 Figure 59: Industry

67 Figure 60: Company Size

CONT

ENTS


TABLE OF

January 2014 3

2 0 1 4 P r i v a t e C l o u d S u r v e y



January 2014 4

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© 2014 InformationWeek, Reproduction Prohibited

reports


2 0 1 4 P r i v a t e C l o u d S u r v e y Table of Contents

Art Wittmann is an independent IT analyst and writer with 30 years of experience in IT and IT journalism. Formerly, he was VP of InformationWeek Reports, and has served as editor of InformationWeek and editor in chief of Net-work Computing and IT Architect magazines. Prior to his time in business tech-nology journalism, he worked as an IT director for a major university.

Art WittmannInformationWeek Reports

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The results of our InformationWeek 2014 Private Cloud Survey are eye-opening. All 242 respondents hail from organizations with 50 or more employees and screened into the survey by indicating involvement with managing, purchasing, advising on, or implementing datacenter technologies, and we were able to trend from our April 2012 poll.

So what’s so surprising? The percentage reporting that they have functional private clouds more than doubled,from 21% to 47%. And we saw very little falloff of those who told us in 2012 that they were on the private cloud path.Other stats:

>> 36% of private cloud users rate their projects as somewhat successful versus 64% saying they’ve achieved com-plete (17%) or very good (47%) success. There were zero failures in the bunch.

>> 33% of cloud adopters used internal expertise to build their systems, and 76% have invested in training employees in private cloud technologies.

>> 26% of those not using private clouds blame applications that won’t work in the model, yet 61% of nonadopters say a private cloud could yield significant operational cost savings.

>> 19% purchased a preconfigured bundle, like Vblocks, while 55% built their clouds from individual products andsuites.

Our advice: Get a private cloud plan in place, and vet all technology purchases, from storage to public cloud servicesto networked applications, based on how well they support your plan.

In this report we:>> Examine the business and technology trends pushing the move to private cloud>> Provide recommendations on building, and more effectively using, a private cloud that can adapt to explosive

growth, changing infrastructure technology, and a dynamic mix of public and private servicesRespondent breakdown: 31% have 5,000 or more employees; 24% are over 10,000. Financial services, government,

education, and healthcare/medical are well-represented, and 47% are IT director/manager or IT executive management(C-level/VP) level.

EXECUTIVE


reports

SUM

MAR

Y




January 2014 6reports.informationweek.com

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RESEARCH

Survey Name InformationWeek 2014 Private Cloud Survey

Survey Date November 2013

Region North America

Number of Respondents 242 at organizations with 50 or more employees

Purpose To examine private cloud adoption and strategies in the enterprise

Methodology InformationWeek surveyed business technology decision-makers atNorth American companies with 50 or more employees. The survey was conducted online, and respondents were recruited via an email invitation containing an embeddedlink to the survey. The email invitation was sent to qualified InformationWeek subscribers.

reports

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PSIS


ABOUT US

InformationWeek Reports’

analysts arm business technology

decision-makers with real-world

perspective based on qualitative

and quantitative research, busi-

ness and technology assessment

and planning tools, and adoption

best practices gleaned from

experience.

OUR STAFFLorna Garey, content

director; [email protected]

Heather Vallis, managing

editor, research;

[email protected]

Elizabeth Chodak, copy

chief; elizabeth.chodak@

ubm.com

Tara DeFilippo, associate art

director; [email protected]

Find all of our reports at

reports.informationweek.com.




January 2014 7

It’s been 20 months since our last Informa-tionWeek Private Cloud Survey, and boy, havethings changed. Now, 20 months happens tobe just shy of the gestation period for anAfrican elephant. In less time than it takes tomake an elephant, the percentage of enter-prises reporting functional private cloudsmore than doubled, from 21% to 47%. That’spretty phenomenal.

What’s equally amazing is that, in April 2012,30% of respondents were starting cloud proj-ects. A 26-percentage-point increase in shopswith functional clouds means that most ofthose schemes, on the drawing board twoyears ago, made it into production. We almostnever see that happen.

The top-level message: Private clouds areachievable, are being done in the real world,and are highly popular. Elephants should haveit so good.

In fact, it would be difficult to overstate thesuccess of the private cloud vision as reportedby our respondents. By every metric in the sur-

vey, more people are building their ownclouds, and the results are almost universallybetter than anyone anticipated, us included. Ifthis tech did go through a “trough of disillu-sionment,” it was short-lived. And it’s not likewe didn’t catch private cloud at the start of

what should have been its hype cycle. TheOpenStack foundation wasn’t incorporateduntil six months after our 2012 survey, and arguably a fully functional version of vSpherehad been on the scene for only about a year,since early 2011, when VMware added sup-

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Which best describes your state of private cloud adoption?

7%

13%

3%

17%

30%

30%

Private Cloud Strategy

Data: InformationWeek 2014 Private Cloud Survey of 242 business technology professionals at organizations with 50 or more employees, November 2013

R7591213/1

1Have a private cloud in production for most or all of our apps

Never considered it, no interest

Considered it and decided not to build a private cloud

Are testing various parts of a private cloud or starting a private cloud project

Built a test version and found it wasn’t worth pursuing

Have a private cloud in production for some of our apps


(Nearly) Zero To Private Cloud In Two Years

reports 2 0 1 4 P r i v a t e C l o u d S u r v e y Table of Contents

Figure 1



January 2014 8

port for Windows Server 2008, RHEL 6, SLES11, Ubuntu, and Solaris.

Essentially, the stars lined up for private cloud.To wit, vSphere 5 hit the market just after ourfirst survey and brought to bear some very use-ful capabilities, including storage virtualization,data protection, and replication. CloudStack, anopen source private cloud suite that’s beenbattling out with Eucalyptus and OpenStack,was released to the public a few months beforeOpenStack was formed; though it figures lessprominently in our data, having platformchoice makes IT comfortable.

While our survey shows some winners andlosers among vendors providing the softwareand systems for private clouds — we’ll getinto that later — what’s more interesting is anapparent swing in thinking about which tech-nologies are most important for building asuccessful cloud. The takeaway here is thatwhat was important to early adopters didn’tnecessarily stay important to mainstreamusers. This too is unusual. It indicates eitherthat unique needs drove early adopters, orthat the technology itself has evolved in

terms of how it tackles the problems of themodern datacenter, even as users were hap-pily moving from project to production.

We think both are true. Early adopters likelyrealized they were spending too much timeon the plate-spinning that typified datacenteroperations before pervasive virtualization andthe automation that comes with private

clouds. However, two years ago, the technol-ogy was far from baked. Heck, it’s still notcompletely baked if you want to pursue thedarlings of the trade press, OpenStack and itsoffshoots. VMware, meanwhile, has (fairly qui-etly) built up its private cloud arsenal; for mostprivate cloud adherents, this is the way to go.VMware’s software isn’t inexpensive, but the

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FAST FACT

23%of respondents to our

2014 Private Cloud

Survey say they’re not

pursuing private clouds.



2014 2012

Which of the following best describes your organization’s IT practices and outlook when adopting new technology?

Approach to New Technology Adoption

Bleeding edge; new features can’t come fast enough

Leading edge; we adopt faster than others in our industry

Current; we keep up with others in our industry

Old school; we don’t adopt new technology until we have to

Base: 242 respondents in November 2013 and 389 in April 2012Data: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/2

17%22%

59%56%

21%20%

3%2%

Figure 2



http://www.informationweek.com/cloud/infrastructure-as-a-service/great-open-source-cloud-debate-rages/d/d-id/1104985

January 2014 9

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only way IT gets to work on new initiatives isby automating the old stuff, and that makesthe cost worthwhile.

It’s interesting that satisfaction with privateclouds seems to come at the expense of publicand hybrid models. We saw a five-point increasein the percentage of respondents saying they’rephasing out their public cloud use — thoughsimilar to 2012, 21% say they will eventually usethe public cloud but aren’t today. Of those us-ing or planning to use the public cloud in 2012,11% said “no” to the hybrid cloud model; that’sincreased to 19% now. This is likely due to thenature of private cloud users today (the major-ity of IT shops) compared with then (earlyadopters who like to experiment).

The public cloud can be a great place fortesting and business continuity, but tools ca-pable of duplicating and deploying internalsystems into the public cloud are just nowcoming to market. VMware has its own publiccloud offering, but costs are not yet in linewith Amazon and its ilk — and likely won’t beif the Google-driven price wars keep up. We’retalking a 60% slash in block storage costs.

For most enterprises, DR can be done acrosscompany-owned or blue-chip colocation sites.That tactic lets old-guard IT pros sleep better.

Resistance Is Futile?Before we get into the whys and hows of pri-

vate cloud adoption, let’s look at why today’s

2014 State of Server Technology

Buying power and influence arerapidly shifting to serviceproviders. Where does that leaveenterprise IT? Not at the cuttingedge, that’s for sure: Only 19%are increasing both the numberand capability of servers, budgetsare level or down for 60%, andjust 12% are using new microserver technology.

DownloadDownload



What are your main reasons for not pursuing a private cloud strategy?

Reasons for Not Adopting a Private Cloud

Note: Three responses allowedBase: 56 respondents in November 2013 and 189 in April 2012 not using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/3

R

2014 2012

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Figure 3



http://www.informationweek.com/cloud/cloud-storage/google-attacks-amazon-with-cloud-storage-prices/d/d-id/1112927?

http://reports.informationweek.com/abstract/24/11635/Storage-Server/Research:-2014-State-of-Server-Technology.html?cid=iwrpdf_side_759privatecloud

January 2014 10

abstainers are holding back and how their rea-soning differs from two years ago. The first thingto note is that private cloud eschewers are inthe laggard camp. Today, 23% say they’re notpursuing the technology, andthe Rogers Innovation Adop-tion Curve pockets the last16% of adopters as laggards.

We will admit that the term“laggard” is pejorative, andthat there are good reasonsthese shops aren’t on thebandwagon. Typically, theydon’t have a need pressingenough to justify the disrup-tion of a private cloud. Re-member all those small busi-nesses that happily chuggedalong on their AS/400s in the’90s while the rest of us wherein the midst of the client-server revolution? Sometimeswhen things aren’t broke, youdon’t fix them.

And that appears to be the

most common case with this group. Back in2012, the biggest reason for not pursing a pri-vate cloud was that other projects took prior-ity; that justification was followed by applica-

tions not supporting a cloud model, lack ofbudget, no perceived need, and 20% who justhadn’t considered it. Today, the top answer isno need, followed by “investigated it and found

it not a fit.” The percentagesaying they haven’t consid-ered private cloud fell from20% to just 9%. Those respon-dents who say they did inves-tigate but found it toountested has doubled, from6% in 2012 to 12% now.

So whereas in 2012 manydismissed private clouds outof hand, today, the eschewersare classic — well, laggards.They’ll do it when and if thetechnology they’re usingruns out of steam or simplyno longer supports the busi-ness. What would persuadethem to consider movingfaster? Then, as now, signifi-cant operational and capitalexpense savings.

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What factors would compel you to consider a private cloud?

Reasons to Consider a Private Cloud

Note: Three responses allowedBase: 56 respondents in November 2013 and 189 in April 2012 not using a private cloud

R7591213/4

R

2014 2012

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Figure 4



http://en.wikipedia.org/wiki/Diffusion_of_innovations

January 2014 11

No Fear, No LoathingWe offered non-cloud-user respondents a

list of 13 complications that could sink a pri-

vate cloud, from orphaned applications to aninability to hire and keep staff with the neces-sary skills. In 2012, most of the fears on this list

garnered between 15% and 25% of re-sponses, meaning worries ranged across theboard. The only exception was increased cost— that was cited by 38% in 2012 and stillleads the list with 43% today. Other fears ex-ceeding the 25% mark in this year’s survey,besides cost: increased troubleshooting is-sues, inability to find qualified staff, and in-creased capital costs. Interestingly, vendorlock-in, which was picked by 25% in 2012, isdown to just 11% now; see Figure 5.

Our take is that nonadopters simply don’twrestle with the management challengesmost enterprises face today — much as theAS/400 crowd simply brought their systemsup and let them run, sometimes for years,without much intervention.

On the flip side, those who have privateclouds in production seem delighted with theresults. On our five-point scale, where 1 is“completely unsuccessful” and 5 is “com-pletely successful,” any rating that exceeds 4.0implies a very happy user community. Re-sponses in the 3.0 to 4.0 range are typical formainstream technology. In 2012, early

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What are the main problems you would envision with a private cloud?

Perceived Private Cloud Issues

Note: Three responses allowedBase: 56 respondents in November 2013 and 189 in April 2012 not using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/5

R

2014 2012

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Figure 5



January 2014 12

adopters loved their clouds; when askedabout success in meeting IT goals, no re-sponse drew lower than a 3.6 in 2012, andfour of the 10 goals were rated between 4.0and 4.2. The top responses — more efficientuse of hardware and better scalability — wereno surprise. Those were prime private cloudselling points from the get go.

Somewhat more surprising: Reliability andbetter use of IT’s time also rated 4.0. And it’sthis better use of time that you should bestriving for. You aren’t going to get much inthe way of new staffing, so if you can free uphalf or more of your operations team to doother things, you’ve made a huge win.

Now that the early majority has joined earlyadopters, you might expect the exuberancelevel to moderate. You’d be wrong. Again, allIT goals were rated 3.6 or higher, but this year,six were rated 4.0 and above, and top re-sponses were up a tenth of a point, to 4.3. It’sremarkable — even the “business-user self-service portal” aspect of private cloud gets a3.6 rating. We expected this to be at the bot-tom of the list because, frankly, the idea

sounds better in vendor PowerPoints than itworks in practice.

Moreover, some recent adopters aren’t nec-essarily what you’d call classic technologyleaders. One IT manager at a natural gas dis-tribution company says his organization de-

cided to outsource its entire datacenter to anIBM private cloud. His reasoning? IBM coulddo a better job than his team, and privatecloud technology made it a cost-effective op-tion. The project started two years ago and isnow in full production. He expects to see

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2014 2012

How would you describe the overall success of your private cloud?

Success of Private Cloud

A complete success

Very successful

Somewhat successful

Somewhat unsuccessful

A complete failure

Base: 113 respondents in November 2013 and 83 in April 2012 using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/6

17%14%

47%57%

36%28%

0%1%

0%0%



Figure 6

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January 2014 13

some cost savings in the next one to twoyears — and by any measure, he’s delightedwith the results.

This is in marked contrast to those who arein the planning phase. For that group, just asin 2012, most IT goals were rated in the mid-to high threes on our scale, which we charac-terize as cautious optimism. These people areessentially late adopters, always a wary, evenskeptical group, so those findings aren’t sur-prising. It’s likely that they’ll be fairly delightedwith the results — if they acquire or developthe expertise they need to succeed in what’sbecoming a fairly competitive market for pri-vate cloud skills. That’s a big “if.”

As is usually the case with a new technol-ogy, even when IT loves it, translating successfrom the datacenter to the business is tricky.When we asked those using private cloudsabout success in meeting business goals, in2012, the responses that got the best marks(3.9 or 3.8) had to do with budgetary savings.While CXOs love to see IT costs held in check,at the time we thought, “Hopefully there areother business successes to celebrate be-

yond just saving a buck.”And so it is this year. Every single metric we

offered but one got a score of 3.9. Joining thethree cost-saving criteria were meeting ser -vice-level agreements, better alignment with

business needs, and improved quality control. The only metric that didn’t get a 3.9 was the

same one at the bottom of the pile in 2012:the ability to charge back or track expenses tobusiness units. Let’s face it — CIOs will do al-

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2014 2012

How long did it take to bring your private cloud from concept to production?

Private Cloud Timeline

Less than six months

More than six months but less than one year

12 to 18 months

More than 18 months

Don’t know


R7591213/7

19%26%

34%29%

26%27%

11%13%

10%5%



Figure 7

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January 2014 14

most anything to avoid being a chargebackcost. It’s a recipe for unpopularity. No matterhow good a job IT does, business managers

will perceive their technology line items asbig, fat costs they can’t control. It’s ingrainedin the American psyche to abhor such costs

(think taxes). We almost never see achargeback plan, IT or otherwise,that’s popular with the business, so itmakes sense for CIOs to resist.

If you’re in this rut, don’t panic. Busi-ness benefit will by necessity lag ITbenefit. If your private cloud hasfreed up staff time, that’s half a win.The other half is to be smart aboutgetting those freed-up people work-ing on things that directly, and visibly,benefit the business.

Private Cloud: The Last Nail InAPM’s Coffin?

One IT discipline that was com-pletely broken by the private cloud isclassic application performance man-agement. Virtualization made life hardfor APM tools, which typically rely onfully understanding the static applica-tion deployment model and then re-

porting on the performance of various pieces.Still, we were surprised when our 2013 APMSurvey showed the use of these tools in seri-ous retreat, even as a new breed of APM ven-dor tried to fill the void with predictive sys-tems. The problem? Filling the void wasn’twhat IT needed. After all, we’ve complainedfor years about an inability to align operationswith the needs of the business, and APMalone wasn’t doing the job. Static tools mighttell you about impending problems, but with-out the mobility and control inherent in a pri-vate cloud, there just wasn’t a lot IT could doabout them — at least not quickly.

Products seeking to replace old-guard APMtools have evolved in two directions. Eitherthey attempt to maintain maps of what wasrunning where by observing and then track-ing an application’s dependencies, or they’reoutcome-based and use synthetic transac-tions to show what users are experiencing.The idea: Understand what components ofyour apps aren’t running well, and then usesynthetic transactions to tell you what thatmeans to users. Together the two can help IT

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How successful is your private cloud in meeting the following IT goals? Please use a scale of 1 to 5, where 1 is “completely unsuccessful” and 5 is “extremely successful.”

Success in Meeting IT Goals

Note: Mean average ratingsBase: 113 respondents in November 2013 and 83 in April 2012 using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/8

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2014 2012

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Figure 8



http://reports.informationweek.com/abstract/1/9375/Application-Performance-Optimization/Research:-The-Next-Wave-In-APM.html

tune the system to meet needs in near realtime. Will it be inexpensive? No, but it may beworthwhile. We discuss APM in much moredepth in our report.

The upshot: Whether by using new APMproducts or, more likely, the APM capabilitiesbuilt into private cloud software itself alongwith some ad hoc, internally built monitoringtools, IT has become significantly more re-sponsive because of the private cloud, andthat alone is a reason for celebration.

But that doesn’t mean there aren’t still chal-lenges. The biggest is one that’s been top ofmind from the advent of cloud computing: in-tegration. IT pros read about startups that livein the cloud and hear line-of-business man-agers who’ve purchased their own software-as-a-service apps brag about the efficiencyand cost effectiveness of these one-off uses,and they start to get that sick-in-the-pit-of-the-stomach feeling about the integrationmess that will soon land in their laps.

In that light, it’s not surprising that the threechallenges that top the list for new privateclouds are integrating existing IT products,

Previous Next

2014 2012

How successful is your private cloud in meeting the following business and process goals? Please use a scale of 1 to 5, where 1 is "completely unsuccessful" and 5 is "extremely successful."

Success in Meeting Business and Process Goals

Ability to meet service-level agreements

Lower capital costs over time

Improved alignment between IT costs and business needs

Lower total cost of ownership

Improved quality control

Lower operational costs over time

Ability to charge back to track expenses to business units


R7591213/9

3.93.6

3.93.9

3.93.6

3.93.8

3.93.7

3.93.8

3.43.3

1 Completely unsuccessful Extremely successful 5

FAST FACT

65%of respondents are using

VMware products as part

of their private clouds.



Figure 9

January 2014 15



http://reports.informationweek.com/abstract/1/9375/Application-Performance-Optimization/Research:-The-Next-Wave-In-APM.html?cid=iwrpdf_body_759privatecloud

January 2014 16

bringing IT staff skills up to snuff, and updat-ing the infrastructure (see Figure 10).

As the early majority of IT shops move into

the private cloud, issues like making the busi-ness case for the technology become morepronounced. So does managing automation,

as these are organiza-tions that likely hadfound ways to be happywith old-school APM sys-tems that could reporton problems, even if ITdid need days to weeksto do anything about theissues uncovered.

Not All Smooth SailingEven the most success-

ful private clouds aren’twithout operationalproblems. Overall, thesesystems still use imma-ture technology that re-quires admins with skilland determination. In2012, respondents wor-ried about software li-censing, a lack of stan-

dards, virtual machine sprawl, and trou-bleshooting. This year, top issues are in-creased operational costs, VM sprawl, keepingskilled staff, and, again, software licensing.Vendors should take heed: These concernspoint to where private cloud technologyneeds to go.

Take licensing. Even just two years ago,some vendors were hesitant to let their soft-ware run in virtual machines. That problemhas mostly been addressed; now at issue isthe number of instances and how to bill forsoftware that runs in a private cloud. This be-comes even touchier as more shops use theirprivate clouds for disaster recovery, which cancome with big new software licensing bills(see Figure 11).

One big change is the type of services of-fered from private clouds. In 2012, SaaS and in-frastructure-as-a-service were the most popu-lar services delivered; that’s changed to Saasand platform-as-a-service this year, with IaaSfalling behind by 14 points. This, too, makes alot of sense. Early adopters were likely to becompanies that could immediately benefit

Previous Next

What were the main hurdles you overcame to launch your private cloud?

Challenges Encountered When Launching a Private Cloud

Note: Three responses allowedBase: 113 respondents in November 2013 and 83 in April 2012 using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/10

R

2014 2012

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Figure 10



January 2014 17

from cloud technology, even if it wasn’t fullybaked, because they were more likely to beproviding infrastructure services to lines of

business compared with typical enterprises. Ifanything, we’re surprised that PaaS managedeven such a close second to SaaS, which we ex-

pect will be the dominant service for IT shops. Other unexpected moves? A decrease in the

percentage of organizations that upgradedtheir apps to run in a private cloudand an increase in the number ofshops building their own cloudsrather than bringing in consultantsor vendor professional services.That’s in contrast to those now inthe planning stages. Forty-one per-cent of late adopters expect to up-grade their enterprise apps —never a simple, politically popular,or inexpensive process, as we sawin our 2014 Application Consolida-tion Survey. This alone is likely aleading reason why late adoptersare late.

Again, it may be that as lateadopters get their private cloudsgoing, they’ll be happily surprisedabout their ability to keep the appsthey have. In some cases, the up-grades will just be to current ver-sions of the same application —

Previous Next

What are the main problems you've encountered with your private cloud?

Private Cloud Issues

Note: Three responses allowedBase: 113 respondents in November 2013 and 83 in April 2012 using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/11

R

2014 2012

Incr

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Figure 11



http://reports.informationweek.com/abstract/5/11775/Cloud-Computing/Research:-2014-Application-Consolidation-Survey.html?cid=iwrpdf_body_759privatecloud

January 2014 18

sooner or later, software vendors will stopsupporting that decade-old version of yoursoftware, even if it suits your needs just fine.

Vendor Blanket BingoWe saw some interesting movement in the

list of vendors respondents use to implement

private clouds. It’s fair to say that the glowingresults revealed by this survey are largely at-tributable to one vendor: VMware. Now al-

most 20 points ahead ofMicrosoft and Cisco,VMware dominates the listof vendors used in deploy-ments. We offered 19 op-tions, and 65% of respon-dents are using VMwareproducts as part of theirprivate clouds, and thateven with open source op-tions in consideration.

While VMware was thebig winner, Citrix and Net -App gained some ground,up four and five points, re-spectively. Dell and EMCwere big losers, with seven-and eight-point drops.Cisco and Microsoft weresmall losers, each with athree-point drop. That maynot mean that Cisco gear

Previous Next

Which technologies needed to be updated or replaced to build your organization's private cloud?

Tech Updates Needed to Build a Private Cloud

Note: Multiple responses allowedBase: 113 respondents in November 2013 and 83 in April 2012 using a private cloudData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/12

R

2014 2012

Serv

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Figure 12



January 2014 19

in particular is being used less as part of a pri-vate cloud; it’s fair to say that its engagementsseem to be with large businesses, while

VMware’s is across the board. Particularly forthose in the planning stages, VMware is domi-nant. A large airline now in the design phase

cites a good number of blue-chip players ascritical to its private cloud plan, includingCisco, EMC, Microsoft, NetApp, and of courseVMware. In contrast, a major player in the hos-pitality industry has partnered with BMC, EMC,IBM, Oracle, Red Hat — and VMware.

Overall we see a focus on upgrading serversand reworking storage systems rather thanvirtualizing networks. We think it’s likely thatthe software-defined networking movement,which is new since late 2011, has most ITshops taking a wait-and-see approach. In themeantime, they’re busily implementing pri-vate clouds as envisioned by VMware in itsvSphere product line.

The same is true for those in the planningstages. VMware will be used by 69% of theserespondents, with Microsoft named by 57%— both saw seven-point bumps over 2012.Oracle is a surprise winner here too: 30% sayit will be part of the plan, up 10 points for a50% increase over 2012. That likely meansadoption of Fusion middleware, finally.

But the biggest gain of all was for OpenStack.In 2012, just 4% thought they’d use it. Now

Previous Next

Please rate the importance of the following features when selecting private cloud technology, using a scale of 1 to 5, where 1 is “not important” and 5 is “very important.”

Importance of Private Cloud Features


R7591213/13

R

2014 2012

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Figure 13



http://www.informationweek.com/software/information-management/oracle-on-the-ground-customers-speak/d/d-id/1111704?

January 2014 20

19% have OpenStack in their plans. We suspectthat there are two groups in this late-adopterset. The larger, we believe, comprises smaller,single-datacenter shops for whom business isnot strictly dependent on a leading-edge IT in-frastructure. The other is highly complex envi-ronments and probably governmental entities.These shops, we believe, are more likely to findthe OpenStack offering appealing than prod-ucts from VMware, Microsoft, or others. CA andBMC did well in our vendor list, too, whichtends to confirm our belief that these lateadopters are not strictly small companies.

One vendor that ceded significant groundamong planners is Hewlett-Packard, whichlost more than half of its support with a 15-point drop. This is very bad news for a com-pany that’s put a lot of emphasis on its publicand private cloud capabilities.

We didn’t ask about white-box vendors fornetworking, servers, or storage — but we wishwe had. What seems to be clear is that the pri-vate cloud is shaping up to be a software play,with the software largely coming from estab-lished players, and from OpenStack and its

constituents. Specialty players like Eucalyptus,RightScale, VCE, Nimbula, and Piston Cloud re-main within the margin of error for our survey,among both private cloud users and planners;none was cited by more than 3% in our survey(see Figure 50).

Private cloud builders aren’t completelyturning on vendors of higher-priced gear, but

it does appear that VMware has convinced ITthat the choice of underlying hardware is notas important as it once was. The result: a slowmovement away from the usual hardwarevendors as the providers of infrastructural di-rection. We saw some of that in our 2014 Stateof Servers poll.

If you’re worried about the efficacy of pri-

Previous Next

2014 2012

Does your organization use chargeback within your private cloud?

Use of Chargeback

Yes, we charge departments and projects for resources

Yes, but for monitoring and cost awareness only

No

Don’t know


R7591213/14

22%22%

24%18%

49%51%

5%9%



Figure 14



http://reports.informationweek.com/abstract/24/11635/Storage-Server/Research:-2014-State-of-Server-Technology.html?cid=iwrpdf_body_759privatecloud

January 2014 21

vate cloud technology, you should feel as-sured that it’s worth the commitment. Oncein place, unless you’ve done it wrong, you willsee lower operational costs and be able to re-claim some of your existing staff’s valuabletime. It’s easy to take away from the typicaltrade press the message that you really needto wait and see how software-defined net-working turns out, or whether open sourceproducts like CloudStack and OpenStack aresolid enough for the mainstream.

Don’t listen, and don’t stay on the sidelinestoo long or you’ll never get the expertise youneed. Get your technology where you feelcomfortable, whether from VMware or a long-term strategic partner like IBM or Oracle. Allthe big vendors have plays. The bottom line isthat private cloud technology is a boon formost IT shops. If you’re not sure whether youshould worry about SDN, or private cloud, theanswer is that you probably don’t need to.Those who do know exactly who they are andcan believe our survey respondents — privatecloud is no passing hype.

Previous Next





January 2014 22

Previous Next


reports 2 0 1 4 P r i v a t e C l o u d S u r v e y

APPE

NDIX

Table of Contents

2014 2012

Which types of private clouds do you offer your organization?

Types of Private Clouds Offered

SaaS

PaaS

IaaS

All of the above


R7591213/15

40%39%

38%31%

23%37%

26%24%

R

Figure 15



January 2014 23

Previous Next



2014 2012

Does your private cloud extend across multiple data centers?

Private Cloud Across Multiple Data Centers

Yes

No

Don’t know


R7591213/16

60%59%

35%36%

5%5%

Figure 16



January 2014 24

Previous Next



2014 2012

Does IT move VMs, applications, and data among data center locations?

Movement Among Data Center Locations

Yes

No

Don’t know

Base: 68 respondents in November 2013 and 49 respondents at organizations with a private cloud extending across multiple data centersData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/17

71%70%

26%26%

3%4%

Figure 17



January 2014 25

Previous Next



2014 2012

Does your organization require that all new applications be able to take advantage of your private cloud?

Private Cloud Requirement for New Applications

Yes; no exceptions

Yes, with some exceptions

Only for server applications destined for our private cloud

No

Don't know


R7591213/18

6%3%

42%34%

32%29%

2%6%

18%28%

Figure 18



January 2014 26

Previous Next



2014 2012

What features and functions are required at the application level?

Required App-Level Features and Functions

Application performance management

Dynamic scaling of services

Lossless session failover

Note: Multiple responses allowedBase: 75 respondents in November 2013 and 50 in April 2012 with private cloud requirements for new applicationsData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/19

70%78%

68%72%

55%48%

Figure 19



January 2014 27

Previous Next



2014 2012

How did your organization handle legacy applications?

Dealing With Legacy Applications

Replaced them with newer applications

Upgraded to cloud-ready applications

Rewrote them to support our private cloud

Other

No change


R7591213/20

35%36%

28%43%

21%19%

4%5%

35%29%

Figure 20



January 2014 28

Previous Next



2014 2012

Which of the following best describes your approach to building your private cloud?

Approach Taken to Build a Private Cloud

Used internal expertise

Used consultants

Used vendor professional services

Mix of internal expertise and consultants

Mix of internal expertise and vendor professional services

Other


R7591213/21

33%24%

10%15%

8%11%

28%26%

19%22%

2%2%

Figure 21



January 2014 29

Previous Next



2014 2012

How did your organization acquire staff knowledgeable in private cloud technologies?

Acquiring Knowledgeable Staff

Trained existing staff

Augmented existing staff with consultants

Hired new staff

Outsourced the management

Other


R7591213/22

76%89%

41%32%

28%16%

5%5%

2%1%

Figure 22



January 2014 30

Previous Next



2014 2012

Did your organization buy a private cloud via a preconfigured bundle, like Vblocks, or build from individual products and product suites?

Build vs. Bundle

Individual products

Open source and commercial management software

Bundle

Other


R7591213/23

55%69%

21%6%

19%17%

5%8%

Figure 23



January 2014 31

Previous Next



Which vendors did you use for your private cloud?

Private Cloud Vendors Used


R7591213/24

R

2014 2012

VMw

are

Micr

osof

t

Cisc

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Dell

HP Citr

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IBM

Orac

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65%

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%

31%

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7%5%

6% 6%

4%6%

3% 4%

2%4%

0% 1% 0% 1%

10%

6%

Figure 24



January 2014 32

Previous Next



2014 2012

Approximately what percentage of your overall IT budget was devoted to building your private cloud?

Budget to Build a Private Cloud

Less than 10%

11% to 20%

21% to 30%

31% to 40%

41% to 50%

More than 50%

Don’t know


R7591213/25

21%26%

18%20%

18%20%

10%7%

7%6%

9%10%

17%11%

Figure 25



January 2014 33

Previous Next



2014 2012

What percentage of your overall IT budget is devoted to maintaining your private cloud?

Budget to Maintain a Private Cloud

Less than 10%

11% to 20%

21% to 30%

31% to 40%

41% to 50%

More than 50%

Don't know


R7591213/26

31%33%

28%26%

12%16%

5%5%

2%4%

4%4%

18%12%

Figure 26



January 2014 34

Previous Next



2014 2012

To what degree did industry standards play a role in product selection?

Impact of Industry Standards on Product Selection

A lot

Some

None

Don’t know


R7591213/27

35%44%

46%43%

12%12%

7%1%

Figure 27



January 2014 35

Previous Next



2014 2012

Does your organization use public cloud services?

Use of Public Cloud Services

Yes

Yes, but we are phasing them out

Not yet, but we will

No, and no plans


R7591213/28

39%45%

13%8%

21%22%

27%25%

Figure 28



January 2014 36

Previous Next



2014 2012

Does your organization use or plan to use a hybrid cloud model, where applications may run, in whole or in part, in both the public and private cloud?

Use of Hybrid Cloud Model

Yes; we’re using a hybrid cloud model

Yes; we plan to use a hybrid cloud model

No

Don’t know

Base: 68 respondents in November 2013 and 55 in April 2012 using a private cloud and using or planning to use public cloud servicesData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/29

35%40%

37%36%

19%11%

9%13%

Figure 29



January 2014 37

Previous Next



2014 2012

What are the main reasons your organization is phasing out, or has decided to not use, public cloud?

Reasons for Not Using a Public Cloud

Security and privacy concerns

Regulatory compliance or legal restrictions

Peak loads could wipe out cost savings

Inability to ensure SLA commitments

Inability to ensure application availability

Other

Note: Three responses allowedBase: 45 respondents in November 2013 and 28 in April 2012 phasing out or not using public cloud servicesData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/30

73%68%

33%39%

29%11%

27%21%

22%25%

9%11%

Figure 30



January 2014 38

Previous Next



2014 2012

At what stage is your organization in deploying your private cloud?

Stage of Private Cloud Deployment

Research and planning

Making the business case

Evaluating products

Running a pilot project

Moving from pilot to production

Base: 73 respondents in November 2013 and 117 in April 2012 testing or starting a private cloud projectData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/31

42%24%

18%18%

23%22%

12%24%

5%12%

Figure 31



January 2014 39

Previous Next



What steps has your organization taken to build a private cloud?

18% 49% 33%

17% 49% 34%

14% 40% 46%

8% 33% 59%

8% 44% 48%

8% 25% 67%

6% 31% 63%

5% 30% 65%

30% 70%

Completed In progress Not started

Built the underlying server, storage, and networking infrastructure

Deployed hypervisors and management framework

Built a self-service portal

Automated subsystems

Inventoried applications and workflows

Created required services like runbooks and CMDBs

Created application templates

Integrated subsystems

Orchestrated automation across multiple subsystems

Base: 73 respondents testing or starting a private cloud projectData: InformationWeek 2014 Private Cloud Survey of 242 business technology professionals at organizations with 50 or more employees, November 2013

R7591213/32

R

Steps Taken to Build a Private Cloud

Figure 32



January 2014 40

Previous Next



2014 2012

How long do you expect it will take to bring your private cloud from concept to production?

Expected Private Cloud Timeline

Less than six months

More than six months but less than one year

12 to 18 months

More than 18 months

Don’t know


R7591213/33

3%9%

30%33%

27%30%

27%17%

13%11%

Figure 33



January 2014 41

Previous Next



How successful do you predict your private cloud will be in meeting the following IT goals? Please use a scale of 1 to 5, where 1 is “completely unsuccessful” and 5 is “extremely successful.”

Expected Success of IT Goals

Note: Mean average ratingsBase: 73 respondents in November 2013 and 117 in April 2012 testing or starting a private cloud projectData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/34

R

2014 2012M

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Bett

er a

vera

ge a

pplic

atio

n pe

rfor

man

ce

4.0 4.

1

3.9 4.

1

3.8 3.

9

3.8 3.

9

3.8 3.

9

3.8

3.7 3.

84.

0

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3.5

3.4

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3.8

3.7

1 Co

mpl

etel

y un

succ

essf

ulEx

trem

ely

succ

essf

ul 5

Figure 34



January 2014 42

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2014 2012

How successful do you predict your private cloud will be in meeting the following business and process goals? Please use a scale of 1 to 5, where 1 is “completely unsuccessful” and 5 is “extremely successful.”

Expected Success of Business and Process Goals

Lower total cost of ownership

Lower operational costs over time

Improved quality control

Lower capital costs over time

Improved alignment between IT costs and business needs

Ability to meet service-level agreements

Ability to charge back to track expenses to business units


R7591213/35

3.73.8

3.73.8

3.73.8

3.73.8

3.73.7

3.63.8

3.13.5

1 Completely unsuccessful Extremely successful 5

Figure 35



January 2014 43

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What are the main hurdles you believe you will need to overcome to launch your private cloud?

Expected Challenges of Launching a Private Cloud

Note: Three responses allowedBase: 73 respondents in November 2013 and 117 in April 2012 testing or starting a private cloud projectData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/36

R

2014 2012In

tegr

atin

g ex

istin

g IT

pro

duct

s

Upda

ting

our i

nfra

stru

ctur

e

Acqu

iring

em

ploy

ee sk

ill se

ts

Empl

oyee

resis

tanc

e

Man

agin

g au

tom

atio

n

Mak

ing

the

busin

ess c

ase

for p

rivat

e clo

ud

Acqu

iring

clou

d so

ftw

are

and

hard

war

e

Crea

ting

runb

ooks

Inve

ntor

ying

exi

stin

g ap

plica

tions

and

serv

ices

Othe

r

55% 58

%

44%

33%

41%

41%

36%

24% 29

%29

%

27%

23%

19%

34%

15%

15%17

% 22%

4% 4%

Figure 36



January 2014 44

Previous Next



What are the main problems you foresee with your private cloud?

Potential Private Cloud Problems

Note: Three responses allowedBase: 73 respondents in November 2013 and 117 in April 2012 testing or starting a private cloud projectData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/37

R

2014 2012Co

ntro

lling

VM

spra

wl

Incr

ease

d op

erat

iona

l cos

t and

com

plex

ity

Vend

or lo

ck-in

to a

priv

ate

cloud

pro

duct

set o

r par

tner

pro

gram

Inab

ility

to h

ire a

nd m

aint

ain

staf

f with

the

nece

ssar

y ski

lls

Incr

ease

d tr

oubl

esho

otin

g di

fficu

lty

Lack

of s

tand

ards

Incr

ease

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pita

l cos

ts

Inte

grat

ing

new

har

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e an

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are

Mai

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ning

priv

ate

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war

e

Orph

aned

app

licat

ions

Man

agin

g so

ftw

are

and

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S lice

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g

Orch

estr

atin

g ne

w a

pplic

atio

n an

d VM

dep

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ents

Runa

way

aut

omat

ed p

roce

sses

Othe

r

45%

30% 33

%24

%

29%

22%

23%

21% 22

% 24%

18%

23%

16% 17

%

12% 16

%

6%10

%

4% 3%

22%

30%

21%

27%

19%

19%

27%

17%

Figure 37



January 2014 45

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Which technologies will you need to update or replace to build your private cloud?

Necessary Tech Updates to Build a Private Cloud

Note: Multiple responses allowedBase: 73 respondents in November 2013 and 117 in April 2012 testing or starting a private cloud projectData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/38

R

2014 2012En

terp

rise

appl

icatio

ns

Conf

igur

atio

n an

d se

rvice

pro

visio

ning

soft

war

e

Stor

age

desig

n

Secu

rity p

rodu

cts

Netw

ork

desig

n

Syst

ems m

anag

emen

t

Virt

ualiz

atio

n te

chno

logy

Iden

tity m

anag

emen

t

Netw

orki

ng e

quip

men

t

Perf

orm

ance

man

agem

ent

Serv

er h

ardw

are

Appl

icatio

n m

odel

ing

Stor

age

equi

pmen

t

Oper

atin

g sy

stem

s

Prog

ram

min

g la

ngua

ges a

nd e

nviro

nmen

ts

49%

27%

48%

35%

45%

30%

43%

38%

38%

43%

32%

27% 29

%39

%

27%

25% 27

% 30%

23%

21%

6%15

%

37%

33% 34

% 35%

33%

33%

31%

31%

Figure 38



January 2014 46

Previous Next



Please rate the importance of the following features when selecting private cloud technology, using a scale of 1 to 5, where 1 is “not important” and 5 is “very important.”

Importance of Private Cloud Features


R7591213/39

2014 2012Ap

plica

tion

perf

orm

ance

man

agem

ent

VM m

obili

ty

Capa

city r

ight

s man

agem

ent,

i.e.,

perm

issio

n to

not

onl

y spi

n up

a V

M, b

ut h

ow m

any,

how

muc

h st

orag

e, e

tc.

Appl

icatio

n m

obili

ty

Audi

t log

s

Self-

serv

ice p

orta

l

Dem

and-

base

d au

to-s

calin

g

Appl

icatio

n de

ploy

men

t tem

plat

es

Supp

ort h

ybrid

mod

e (p

ublic

and

priv

ate

cloud

)

Dele

gate

d ad

min

istra

tion

Serv

ice ca

talo

gue

Bare

-met

al p

rovi

sioni

ng

Runb

ook

auto

mat

ion

Char

geba

ck b

illin

g or

trac

king

3.7 3.

8

3.7

3.7

3.6 3.

7

3.6

3.6

3.6

3.6

3.1 3.

2

3.0

3.3

2.8 3.

0

3.5

3.5

3.4

3.6

3.4

3.6

3.3

3.3

3.33.

4 3.4

3.4

1 No

t im

port

nat

Very

impo

rtan

t 5

Figure 39



January 2014 47

Previous Next



2014 2012

Will your organization use chargeback within your private cloud?

Plans for Chargeback Use

Yes, we will charge departments and projects for resources

Yes, but for monitoring and cost awareness only

No

Don’t know


R7591213/40

14%20%

27%38%

32%27%

27%15%

Figure 40



January 2014 48

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2014 2012

Which types of private clouds will IT offer your organization?

Planned Private Cloud Offerings

SaaS

PaaS

IaaS

All of the above


R7591213/41

30%22%

36%25%

36%43%

27%34%

Figure 41



January 2014 49

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2014 2012

Will your private cloud extend across multiple data centers?

Planned Private Cloud Scope

Yes

No

Don’t know


R7591213/42

42%58%

29%32%

29%10%

Figure 42



January 2014 50

Previous Next



2014 2012

Will IT move VMs, applications, and data among data center locations?

Planned Movement Among Data Center Locations

Yes

No

Don’t know

Base: 31 respondents in November 2013 and 68 in April 2012 at organizations with plans to extend a private cloud across multiple data centersData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/43

87%84%

3%4%

10%12%

Figure 43



January 2014 51

Previous Next



2014 2012

Will your organization require that all new applications be able to take advantage of your private cloud?

Planned Private Cloud Requirement for New Apps

Yes; no exceptions

Yes, with some exceptions

Only for server applications destined for our private cloud

No

Don’t know


R7591213/44

1%2%

36%29%

36%41%

15%14%

12%14%

Figure 44



January 2014 52

Previous Next



2014 2012

What features or functions will be required at the application level?

App-Level Feature and Function Requirements

Dynamic scaling of services

Application performance management

Lossless session failover

Note: Multiple responses allowedBase: 53 respondents in November 2013 and 85 in April 2012 at organizations planning to have private cloud requirements for new applicationsData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/45

50%60%

67%67%

73%70%

Figure 45



January 2014 53

Previous Next



2014 2012

How do you plan to handle legacy applications?

Plan for Handling Legacy Applications

Upgrade to cloud-ready applications

Replace them with newer applications

Rewrite to support our private cloud

Other

No change


R7591213/46

21%28%

3%4%

27%20%

36%51%

41%44%

R

Figure 46



January 2014 54

Previous Next



2014 2012

Which of the following best describes your planned approach for building a private cloud?

Planned Approach for Building a Private Cloud

Will use internal expertise

Will use consultants

Will use vendor professional services

Mix of internal expertise and consultants

Mix of internal expertise and vendor professional services


R7591213/47

6%9%

34%27%

30%30%

11%15%

19%19%

Figure 47



January 2014 55

Previous Next



2014 2012

How will your organization acquire staff knowledgeable in private cloud technologies?

Strategy for Acquiring Knowledgeable Staff

Train existing staff

Augment existing staff with consultants

Hire new staff

Outsource the management


R7591213/48

16%22%

8%9%

43%50%

88%81%

Figure 48



January 2014 56

Previous Next



2014 2012

Will your organization buy a private cloud via a preconfigured bundle, like Vblocks, or build from individual products and product suites?

Planned Approach for Private Cloud Purchase

Individual products

Bundle

Open source and commercial management software

Don’t know yet


R7591213/49

16%15%

32%31%

16%16%

36%38%

R

Figure 49



January 2014 57

Previous Next



Which vendors do you plan to use for your private cloud?

Planned Private Cloud Vendor Use


R7591213/50

R

2014 2012

VMw

are

Micr

osof

t

Cisc

o

Citr

ix

Orac

le

Dell

IBM

HP Red

Hat

EMC

Open

Stac

k

NetA

pp

BMC

CA Clou

dSta

ck

Euca

lypt

us

Righ

tSca

le

VCE

Nim

bula

Pist

on C

loud

Othe

r

69%

62%

57%

50%

44%

51%

34% 38

%

30%

20%

19%

26%

19%

4%

14%

12%

7%4%

7%1%

7%4% 3% 3% 3% 4% 3% 4%

1%0%

1% 1%

10%

5%

29%

29%

29%

34%

24%

24%

39%

20%

Figure 50



January 2014 58

Previous Next



2014 2012

Approximately what percentage of your overall IT budget do you expect to devote to building your private cloud?

Estimated Budget to Build a Private Cloud

Less than 10%

11% to 20%

21% to 30%

31% to 40%

41% to 50%

More than 50%

Don’t know


R7591213/51

14%25%

8%9%

1%3%

1%2%

28%22%

25%24%

23%15%

Figure 51



January 2014 59

Previous Next



2014 2012

What percentage of your overall IT budget do you expect to devote to maintaining your private cloud?

Estimated Budget to Maintain a Private Cloud

Less than 10%

11% to 20%

21% to 30%

31% to 40%

41% to 50%

More than 50%

Don’t know


R7591213/52

8%16%

1%6%

1%2%

1%1%

25%23%

28%23%

36%29%

Figure 52



January 2014 60

Previous Next



2014 2012

To what degree will industry standards play a role in product selection?

Impact of Industry Standards on Product Selection

A lot

Some

None

Don’t know


R7591213/53

3%1%

9%3%

47%54%

41%42%

R

Figure 53



January 2014 61

Previous Next



2014 2012

Does your organization use public cloud services?

Public Cloud Use

Yes

Yes, but we are phasing them out

Not yet, but we will

No, and no plans


R7591213/54

22%28%

10%14%

41%30%

27%28%

R

Figure 54



January 2014 62

Previous Next



2014 2012

Does your organization use or plan to use a hybrid cloud model, where applications may run, in whole or in part, in both the public and private cloud?

Hybrid Cloud Use

Yes; we’re using a hybrid cloud model

Yes; we plan to use a hybrid cloud model

No

Don’t know

Base: 50 respondents in November 2013 and 68 in April 2012 testing or starting a private cloud project and using or planning to use public cloud servicesData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/55

24%20%

56%61%

14%13%

6%6%

Figure 55



January 2014 63

Previous Next



2014 2012

What are the main reasons your organization is phasing out, or has decided to not use, public cloud?

Reasons for Not Using or Phasing Out Public Cloud

Security and privacy concerns

Regulatory compliance or legal restrictions

Inability to ensure SLA commitments

Inability to ensure application availability

Peak loads could wipe out cost savings

Other

Note: Three responses allowedBase: 23 respondents in November 2013 and 49 in April 2012 testing or starting a private cloud project and phasing out or not using public cloud servicesData: InformationWeek Private Cloud Survey of business technology professionals at organizations with 50 or more employees

R7591213/56

26%31%

17%18%

13%4%

57%45%

39%27%

78%82%

Figure 56



January 2014 64

Previous Next



Which of the following best describes your job title?

5% 3%

14%

2% 19%

29%

28%

Job Title


R7591213/57

1IT executive management (C-level/VP)

OtherConsultant

Line-of-business management

IT/IS staff

Non-IT executive management (C-level/VP)

IT director/manager

Figure 57



January 2014 65

Previous Next



Which of the following dollar ranges includes the annual revenue of your entire organization?

11%

17%

10%

10%

11%

14%

9%

12%6%

Company Revenue


R7591213/58

1Less than $6 million

$6 million to $49.9 million

Don’t know/decline to say

Government/nonprofit


$1 billion to $4.9 billion

$5 billion or more



Figure 58



January 2014 66

Previous Next



What is your organization’s primary industry?

Industry

Cons

truc

tion/

engi

neer

ing

Cons

ultin

g an

d bu

sines

s ser

vice

s

Cons

umer

goo

ds

Educ

atio

n

Elec

tron

ics

Ener

gy

Fina

ncia

l ser

vice

s

Gove

rnm

ent

Heal

thca

re/m

edica

l

Insu

ranc

e/HM

Os

IT ve

ndor

s

Logi

stics

/tra

nspo

rtat

ion

Man

ufac

turin

g/in

dust

rial, n

onco

mpu

ter

Med

ia/e

nter

tain

men

t

Nonp

rofit

Reta

il/e-

com

mer

ce

Tele

com

mun

icatio

ns/IS

Ps

Utili

ties

Othe

r

Data: InformationWeek 2014 Private Cloud Survey of 242 business technology professionals at organizations with 50 or more employees, November 2013 R7591213/59

4%

6%

2%

10%

2% 2%

13%

12%

10%

3%

5%

2%

6%

2%

3%

2%

4%

3%

9%

Figure 59



January 2014 67

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Approximately how many employees are in your organization?

24%

21%7%

16%

10%22%

Company Size


R7591213/60

150-99

100-499

10,000 or more

1,000-4,999

5,000-9,999

500-999

Figure 60



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http://reports.informationweek.com/abstract/20/8860/Network-Systems-Management/Informed-CIO:-Private-Cloud-Automation.html?cid=iwrpdf_rltd_759privatecloud

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research 2014-private-cloud-survey

Technology

private cloud34 figure

success of private cloud

com48 figure

private cloud requirement

private cloud strategy

private cloud timeline

private cloud scope

private cloud purchase