Hosting and Cloud Study 2015 Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud
Service Providers
Survey Results
Demographics Respondents by Department
Respondents by Role
I make IT purchasing
recommendations
78%
I am influential in IT
decisions and strategy
77%
I manage relationships
with 3rd party IT
providers
Marketing, 7%
Application
Development,
17%
69%
I have significant decision
making authority
regarding IT
65%
I build or maintain IT
systems
53%
I develop or maintain IT
software
IT Ops &
Admin, 76%
50%
0%
20%
40%
60%
80%
100%
% of Respondents
N=1,316
S2a. Which of the following categories best describes your organization's
expected annual revenue for 2015? ($US)
N=1,736
S1. Which department do you work in at your organization? Page 2
Worldwide Sample Size n=1,736 10 Countries Represented Netherlands 2% UK 8% USA 53% Germany 9% Japan 4% Turkey 3% India 7% Brazil 6% Singapore 3% Australia 5% Page 3
BUDGET BY HOSTING SERVICES TYPE ©2014 451 Research LLC. All rights reserved. Page 4 IT Services Currently Acquired
HosRng Services/IaaS SoTware-‐as-‐a-‐Service 55% 55% 44% 37% Outsourcing Services 60% 62% 62% Total (n=1736) North America (n=926) 45% 46% 49% 44% Europe (n=334) 53% 44% 45% 46% 41% 44% 42% PlaXorm-‐as-‐a-‐Service 28% 19% ColocaRon Services 0% 10% 20% 25% 24% Asia (n=323) South America (n=103) 32% MEA (n=50) 30% 30% 40% 50% 60% % of Respondents 70% 80% 90% 100% S7a. Which –if any – of the following IT services does your organiza<on currently buy from service providers today? [Must select 2-‐Hos<ng Services, else terminate] ©2014 451 Research LLC. All rights reserved.
Page 5 Current versus Future Budget Allocation
On-‐Premises Infrastructure & Staﬀ 43% Current 0% 10% 20% SaaS Other Oﬀ Premises services 33% 40% In 2 Years n=1617 HosRng Services 35% 30% 40% 50% % of IT Budget 60% 70% 12% 11% 13% 11% 80% 90% 100% S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 6 Current versus Future Budget by Region
Future IT Budget AllocaBon Current IT Budget AllocaBon On-‐Premises Infrastructure & Staﬀ On-‐Premises Infrastructure & Staﬀ HosRng Services SaaS Other Oﬀ Premises services HosRng Services SaaS Other Oﬀ Premises services Total (n=1617) 43% 33% 12% 11% 40% 35% 13% 11% North America (n=807) 43% 32% 14% 11% 41% 33% 15% 11% Europe (n=334) 44% 34% 11% 11% 41% 37% 12% 11% Asia (n=323) 43% 35% 11% 12% 41% 37% 11% 11% South America (n=103) 40% MEA (n=50) 40% 40% 20% 40% 60% % of IT Budget 0% 36% 37% 10% 14% 9% 11% 80% 100% 0% 39% 40% 41% 20% 40% 60% % of IT Budget 11% 13% 9% 11% 80% 100% S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 7 Infrastructure Spending On-‐Premise
Standalone non-‐virtualized infrastructure 38% Current n=1576 0% 10% 20% PRIVATE CLOUD (automated and orchestrated) 34% 34% In 2 Years Virtualized infrastructure 27% 36% 30% 40% 50% 60% 70% % of On-‐Premise Infrastructure Spending 30% 80% 90% 100% S10. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 8 Current versus Future On-‐Premise Spending by Region
Future On-‐Premise Infrastructure Spending Current On-‐Premise Infrastructure Spending Standalone non-‐virtualized infrastructure Standalone non-‐virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated) Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated) Total (n=1576) 38% 34% 27% 34% 36% 30% North America (n=791) 38% 34% 28% 33% 36% 31% Europe (n=325) 39% 34% 27% 34% 36% 30% Asia (n=312) 39% 35% 26% 36% South America (n=101) MEA (n=47) 0% 34% 41% 37% 35% 29% 33% 24% 20% 40% 60% 80% % of On-‐Premise Infrastructure Spending 38% 100% 0% 37% 37% 32% 27% 31% 30% 20% 40% 60% 80% % of On-‐Premise Infrastructure Spending 100% S10. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on-‐premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 9 Infrastructure Spending Off-‐Premise
Current (n=1604) 0% Hosted Private Cloud Public Cloud Basic Website HosRng 35% In Two Years (n=1569) n=1576 Dedicated Servers 25% 33% 10% 20% 17% 29% 30% 22% 18% 40% 50% 60% 70% % of Oﬀ-‐Premise Infrastructure Spending 19% 80% 90% 100% I1. Approximately, what percent of your current oﬀ premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your oﬀ premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 10 Current versus Future Off-‐Premise Spending by Region
Future Oﬀ-‐Premise Infrastructure Spending Current Oﬀ-‐Premise Infrastructure Spending Dedicated Servers Hosted Private Cloud Public Cloud Dedicated Servers Basic Website HosRng Hosted Private Cloud Total (n=1604) 35% 25% 17% 22% 33% 29% North America (n=797) 37% 26% 17% 20% 34% 29% Europe (n=331) 36% 24% 17% 23% 32% 30% 18% 20% Asia (n=323) 35% 25% 18% 23% 33% 27% 19% 20% 31% 14% 24% 33% 15% 22% South America (n=103) MEA (n=50) 0% 31% 28% 24% 22% 30% 26% 20% 40% 60% 80% % of Oﬀ-‐Premise Infrastructure Spending 27% 100% 0% 27% 18% 18% 23% 20% 40% 60% 80% % of Oﬀ-‐Premise Infrastructure Spending 19% 18% 23% 100% I1. Approximately, what percent of your current oﬀ premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your oﬀ premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 11 Hosting Budget by Services Type: Today and in Two Years
Current % HosBng/Cloud Services Budget AllocaBon Future % HosBng/Cloud Services Budget AllocaBon 21% 21% 31% Infrastructure HosRng 31% ApplicaRon HosRng Managed Services 21% 27% n=1600 21% Security Services 27% n=1593 H2. Approximately what percent of your HOSTING & CLOUD SERVICES budget in 2015 is allocated to the following services? [Sum to 100] H3. Now thinking out two years, approximately what percent of your HOSTING & CLOUD SERVICES budget will be allocated to the following services? [Sum to 100%] ©2014 451 Research LLC. All rights reserved.
Page 12 MANAGED SERVICES ©2014 451 Research LLC. All rights reserved. Page 13 Managed Services: Spending Over Next Two Years
68% Backup and Recovery Disaster Recovery/Site Recovery 54% ApplicaRon development tools & plaXorms 47% 47% Mobile Services Premium 24 x 7 support services 45% Archiving 44% End to End ApplicaRon management including monitoring and conﬁguraRon 42% Capacity Planning 37% CDN/Media Streaming 23% None n=1619 5% 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% M1. Which of the following managed services –if any -‐-‐ will comprise a signiﬁcant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 14 Managed Services: Spending by Region Over Next Two Years
Backup and Recovery Disaster Recovery/Site Recovery North America (n=809) ApplicaRon development tools & plaXorms Mobile Services Europe (n=334) Premium 24 x 7 support services Asia (n=323) Archiving End to End ApplicaRon management including monitoring and conﬁguraRon South America (n=103) Capacity Planning MEA (n=50) CDN/Media Streaming None 0% 10% 20% 30% 40% 50% % of Respondents 60% 70% 80% M1. Which of the following managed services –if any -‐-‐ will comprise a signiﬁcant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 15 Managed Services: Spending by Maturity Over Next Two Years
Backup and Recovery Disaster Recovery/Site Recovery Discovery and EvaluaRon (n=214) ApplicaRon development tools & plaXorms Mobile Services Running Trials/Pilot Projects (n=289) Premium 24 x 7 support services ApplicaRon Test and Development (n=514) Archiving End to End ApplicaRon management including monitoring and conﬁguraRon IniRal ImplementaRon (n=357) Capacity Planning Broad ImplementaRon (n=239) CDN/Media Streaming None 0% 10% 20% 30% 40% 50% % of Respondents 60% 70% 80% M1. Which of the following managed services –if any -‐-‐ will comprise a signiﬁcant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 16 APPLICATION HOSTING ©2014 451 Research LLC. All rights reserved. Page 17 Application Hosting: Spending Over Next Two Years
Database 57% Email 54% Business applicaRons: includes ERP, CRM, industry-‐speciﬁc applicaRons 49% Virtual Desktop HosRng/ VDI 45% Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon 43% AnalyRcs: Includes Business Intelligence, Data mining, Big Data 41% Ecommerce Website HosRng and advanced funcRonality 39% Uniﬁed CommunicaRons (Voice, Chat, Video Conferencing) 38% CollaboraRve applicaRons such as workgroup, IM 36% Media Streaming 30% None n=1619 4% 0% 10% 20% 30% % of Respondents 40% 50% 60% A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a signiﬁcant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 18 Application Hosting: Spending by Region Over Next Two Years
Database Email Business applicaRons: includes ERP, CRM, industry-‐speciﬁc applicaRons North America (n=809) Virtual Desktop HosRng/ VDI Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon Europe (n=334) AnalyRcs: Includes Business Intelligence, Data mining, Big Data Asia (n=323) Ecommerce Website HosRng and advanced funcRonality Uniﬁed CommunicaRons (Voice, Chat, Video Conferencing) South America (n=103) CollaboraRve applicaRons such as workgroup, IM MEA (n=50) Media Streaming None 0% 10% 20% 30% 40% 50% % of Respondents 60% 70% 80% A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a signiﬁcant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 19 Application Hosting: Spending by Maturity Over Next Two Years
Database Email Business applicaRons: includes ERP, CRM, industry-‐speciﬁc applicaRons Discovery and EvaluaRon (n=214) Virtual Desktop HosRng/ VDI Running Trials/
Pilot Projects (n=289) Personal ProducRvity -‐ Docs, Spreadsheet, PresentaRon AnalyRcs: Includes Business Intelligence, Data mining, Big Data ApplicaRon Test and Development (n=514) Ecommerce Website HosRng and advanced funcRonality Uniﬁed CommunicaRons (Voice, Chat, Video Conferencing) IniRal ImplementaRon (n=357) CollaboraRve applicaRons such as workgroup, IM Media Streaming Broad ImplementaRon (n=239) None 0% 10% 20% 30% 40% 50% % of Respondents 60% 70% 80% A1. Which of the following hosted applica<ons – if any -‐-‐ will comprise a signiﬁcant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 20 SECURITY SERVICES ©2014 451 Research LLC. All rights reserved. Page 21 Security Services: Spending Over Next Two Years
Endpoint Security 46% EncrypRon of ConﬁdenRal Data Stored in the Cloud 45% Web ApplicaRon Firewall (WAF) 43% Advanced AnR-‐malware/AnR-‐APT 42% Security InformaRon & Event Management (SIEM) and Logging/
Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon 36% 35% Secure ConﬁguraRon Management 35% Vulnerability Assessment 33% Data Sovereignty/Data Residency 33% Endpoint or Network Data Leakage PrevenRon (DLP) 31% Computer/Network Forensics Support/Breach Response 29% IT GRC -‐ Governance, Risk, Compliance 29% AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service 29% Auditability capabiliRes -‐ environment can be audited by security teams 26% Liability Guarantees/Insurance in event of a breach or loss 25% None n=1619 4% 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% E1. Which of the following security services – if any -‐-‐ will comprise a signiﬁcant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 22 Security Services: Spending by Region Over Next Two Years
Endpoint Security EncrypRon of ConﬁdenRal Data Stored in the Cloud Web ApplicaRon Firewall (WAF) Advanced AnR-‐malware/AnR-‐APT North America (n=809) Security InformaRon & Event Management (SIEM) and Logging/Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Europe (n=334) Secure ConﬁguraRon Management Vulnerability Assessment Data Sovereignty/Data Residency Asia (n=323) Endpoint or Network Data Leakage PrevenRon (DLP) Computer/Network Forensics Support/Breach Response South America (n=103) IT GRC -‐ Governance, Risk, Compliance AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service Auditability capabiliRes -‐ environment can be audited by security teams MEA (n=50) Liability Guarantees/Insurance in event of a breach or loss None 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% E1. Which of the following security services – if any -‐-‐ will comprise a signiﬁcant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 23 Security Services: Spending by Maturity Over Next Two Years
Endpoint Security EncrypRon of ConﬁdenRal Data Stored in the Cloud Web ApplicaRon Firewall (WAF) Advanced AnR-‐malware/AnR-‐APT Discovery and EvaluaRon (n=289) Security InformaRon & Event Management (SIEM) and Logging/Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Running Trials/Pilot Projects (n=514) Secure ConﬁguraRon Management Vulnerability Assessment Data Sovereignty/Data Residency ApplicaRon Test and Development (n=357) Endpoint or Network Data Leakage PrevenRon (DLP) Computer/Network Forensics Support/Breach Response IniRal ImplementaRon (n=239) IT GRC -‐ Governance, Risk, Compliance AnR -‐ DDoS -‐ AnR-‐Distributed Denial of Service Auditability capabiliRes -‐ environment can be audited by security teams Broad ImplementaRon (n=50) Liability Guarantees/Insurance in event of a breach or loss None 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% E1. Which of the following security services – if any -‐-‐ will comprise a signiﬁcant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? ©2014 451 Research LLC. All rights reserved.
Page 24 HYBRID CLOUD ©2014 451 Research LLC. All rights reserved. Page 25 Hybrid Cloud: Interoperability by Maturity
63% 75% 64% 59% 62% 63% On premises PRIVATE cloud with a HOSTED PRIVATE cloud Total (n=1419) Discovery and EvaluaRon (n=166) 45% 40% 45% 51% 41% 41% On premises PRIVATE cloud with a PUBLIC cloud Running Trials/Pilot Projects (n=244) ApplicaRon Test and Development (n=466) 32% 26% 26% 32% 34% 38% HOSTED PRIVATE cloud with a PUBLIC cloud 0% 10% 20% 30% 40% 50% 60% % of Respondents IniRal ImplementaRon (n=326) Broad ImplementaRon (n=214) 70% 80% 90% 100% I6. Has your organiza<on conﬁgured any of the following clouds for interoperability for the seamless delivery of a business func<ons? Check all that apply ©2014 451 Research LLC. All rights reserved.
Page 26 Hybrid Cloud Migration by Type
Current Public to Private Cloud MigraBon Future Public to Private Cloud MigraBon 1% 0.4% 18% 19% No 29% 32% Yes, to a HOSTED PRIVATE cloud environment Yes, to an ON-‐
PREMISE cloud environment Don't know 50% 52% n=1419 I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year? ©2014 451 Research LLC. All rights reserved.
Page 27 Hybrid Cloud Migration by Type and Region
Current Public to Private Cloud MigraBon by Region 100% 18% 13% 23% Don't know 90% 20% 17% 16% 19% 23% 70% 49% 46% 53% 60% 58% 51% 50% 40% 30% 31% 39% North Europe America (n=295) (n=712) 29% 29% Asia South (n=278) America (n=91) 20% 26% MEA (n=43) 10% 0% 80% % of Respondents 80% 90% Yes, to an ON-‐
PREMISE cloud environment 70% 50% 48% 60% 55% 64% 58% 50% 40% Yes, to a HOSTED PRIVATE cloud environment % of Respondents 19% 15% Future Public to Private Cloud MigraBon by Region 100% 30% 29% 35% No North Europe America (n=295) (n=712) 28% 20% 18% Asia South (n=278) America (n=91) 19% MEA (n=43) 10% 0% I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year? ©2014 451 Research LLC. All rights reserved.
Page 28 Hybrid Cloud Migration Drivers
0.2% 7% Security 8% Lower Cost 35% Bemer Control by our IT teams 17% Performance Customer service Part of a Shadow IT centralizaRon n=1089 19% 14% Other I9. What is the primary driver for migra<ng workloads from a PUBLIC to PRIVATE environment? (Select One) ©2014 451 Research LLC. All rights reserved.
Page 29 VENDOR SELECTION ©2014 451 Research LLC. All rights reserved. Page 30 Significant Hosting Project by Deployment Model
100% 2% 90% 26% 2% 3% 19% 21% % of Respondents 60% 17% Other 31% 80% 70% 2% 19% 19% 15% 50% 40% 33% Security Services 30% 32% 38% Managed Services ApplicaRon HosRng 30% 20% 10% 0% 22% Total (n=349) 26% Dedicated Servers (n=99) 20% 21% Hosted Private Cloud (n=198) Public Cloud (n=52) Infrastructure HosRng D2. What [will be/was] your most signiﬁcant project or investment in hosBng [be in the next year/recently?] [Check all that apply] ©2014 451 Research LLC. All rights reserved.
Page 31 Significant Hosting Project by Vendor Type
100% 90% 80% % of Respondents 70% 5% 7% 9% 10% 4% 5% 7% 6% 7% 3% 7% 11% 9% 5% 12% 14% 9% 10% 10% Value Added Reseller 7% 60% 50% Other 33% 40% 28% 29% 47% 40% TelecommunicaRons Provider Independent SoTware Vendor Systems Integrator 30% 20% HosRng Provider 35% Cloud Provider 22% 10% 0% 38% 35% 31% Total (n=1736) Infrastructure HosRng (n=77) ApplicaRon HosRng (n=114) Managed Services (n=58) Security Services (n=92) D4. How many service providers [do you expect to/did your organiza<on] evaluate as part of the decision making process? ©2014 451 Research LLC. All rights reserved.
Page 32 Number of Vendors Considered by Company Size
100% 11% 90% 80% 5% 8% 11% 14% 15% 15% Five or more 19% 70% % of Respondents 19% 16% Four 43% 60% 40% 39% Three 33% 50% 38% Two 40% 30% 20% 28% One 31% 32% 29% 16% 10% 0% 8% 10% Total (n=851) <100 (n=145) 6% 5% 100-‐999 (n=336) 1,000-‐4,999 (n=187) 10% 5,000+ (n=183) D5. Which type of vendor [is most likely to win/won] the business? (Choose one) ©2014 451 Research LLC. All rights reserved.
Page 33 Significant Hosting Project: Top Mentioned ISVs
MicrosoT 13% 13% IBM HP 6% HCL 6% Google 6% Amazon Dell 0% n=112 4% 3% 10% % of Respondents 20% D6a. Which [Independent Sogware Vendor] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 34 Significant Hosting Project: Top Mentioned VARs
18% IBM MicrosoT 11% Amazon 8% Dell n=161 7% 0% 10% 20% 30% % of Respondents D6a. Which [Value Added Reseller] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 35 Significant Hosting Project: Top Mentioned SIs
IBM 25% MicrosoT 13% Rockwell AutomaRon 3% Oracle 3% Google 3% Cisco 3% n=115 0% 10% 20% 30% % of Respondents D6a. Which [System Integrator] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 36 Significant Hosting Project: Top Mentioned Hosting Providers
IBM/SoTlayer 50% Rackspace 27% CenturyLink/Savvis n=571 9% 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% D6a. Which [Hos<ng Provider] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 37 Significant Hosting Project: Top Mentioned Cloud Providers
MicrosoT 32% IBM (including SoTlayer) 23% Google 21% Amazon n=613 17% 0% 10% 20% 30% 40% 50% % of Respondents D6a. Which [Cloud Provider] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 38 Significant Hosting Project: Top Mentioned Telecommunication Providers
Verizon 15% AT&T 10% IBM 5% Vodafone 4% Telstra 4% Singapore TelecommunicaRons 4% Google 4% Deutsche Telekom 4% n=101 0% 10% % of Respondents 20% D6a. Which [Telecommunica<ons Provider] [is most likely to win/won] the business: (open response) ©2014 451 Research LLC. All rights reserved.
Page 39 Significant Hosting Project: Drivers for Not Using Market Leading Vendor
42% My provider is the lowest cost opRon My provider oﬀers the products & services that I want 39% 38% My organizaRon has a pre-‐exisRng relaRonship with our provider My provider oﬀers bemer customer support than the larger providers 33% 20% My provider partners with one of the larger providers Other n=107 1% 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% D8. What are the top two reasons your company [will most likely not use/did not use] one of the larger market share leaders? (Choose up to two) ©2014 451 Research LLC. All rights reserved.
Page 40 BUYING PROCESS ©2014 451 Research LLC. All rights reserved. Page 41 Stakeholder Decision Making Authority
100% 90% 23% 10% 17% 29% 80% 36% 45% 38% 29% 70% 60% 23% 42% 70% % of Respondents 15% 44% 52% Not Involved 22% 28% 23% 50% 21% 18% Primary Decision Maker 40% 30% 20% 10% 44% 33% 31% 11% 52% 55% 55% 37% 36% 42% Inﬂuencer 19% 0% n=1736 D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most signiﬁcant projects or investments. ©2014 451 Research LLC. All rights reserved.
Page 42 Stakeholder Decision Making Authority by Region
CEO CIO/CTO North America (n=926) CFO CMO Europe (n=334) Line of Business Department Managers Asia (n=323) IT Infrastructure Managers IT Architects South America (n=103) SoTware Developers MEA (n=50) MarkeRng Managers 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most signiﬁcant projects or investments. ©2014 451 Research LLC. All rights reserved.
Page 43 Stakeholder Decision Making Authority by Company Size
CEO CIO/CTO <100 (n=317) CFO CMO 100-‐999 (n=666) Line of Business Department Managers IT Infrastructure Managers 1,000-‐4,999 (n=361) IT Architects SoTware Developers 5,000+ (n=392) MarkeRng Managers 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most signiﬁcant projects or investments. ©2014 451 Research LLC. All rights reserved.
Page 44 Stakeholder Decision Making Authority by Department
CEO CIO/CTO CFO IT OperaRons/ AdministraRon (n=1316) CMO Line of Business Department Managers ApplicaRon Development (n=303) IT Infrastructure Managers IT Architects SoTware Developers MarkeRng (n=117) MarkeRng Managers 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most signiﬁcant projects or investments. ©2014 451 Research LLC. All rights reserved.
Page 45 Buying Process by Department
72% 73% 70% 65% Technical assessment Total (n=851) 63% 61% 65% Business assessment 75% IT OperaRons/ AdministraRon (n=651) 48% 50% Technical integraRon 42% 37% ApplicaRon Development (n=148) 47% 47% 44% 50% Contract NegoRaRon MarkeRng (n=52) 43% 44% 43% Comparison to on-‐premises capabiliRes 37% 0% 10% 20% 30% 40% 50% 60% % of Respondents 70% 80% 90% 100% B1. Of the buying process stages outlined below, which [will/did] your company go through? (Pick mul<ple) ©2014 451 Research LLC. All rights reserved.
Page 46 Buying Process Length by Company Size
100% 8% 90% 80% 3% 7% 8% 16% 15% 9% 11% Greater than 2 years 17% 18% 24% 1 -‐ <2 years % of Respondents 70% 60% 35% 38% 9 -‐ <12 months 32% 50% 39% 45% 40% 3 -‐ <6 months 30% 32% 30% 20% 0 -‐ <3 months 35% 23% 10% 19% 9% 0% 6 -‐ <9 months Total (n=851) <100 (n=145) 8% 7% 6% 100-‐999 (n=336) 1,000-‐4,999 (n=187) 5,000+ (n=183) B2. From ini<al assessment to technical integra<on, [how long do you expect the deployment of your most important hos<ng or cloud services project for next year to take/
how long did the deployment of your most recent important hos<ng or cloud services project take?”] (Pick one) ©2014 451 Research LLC. All rights reserved.
Page 47 Buying Process Length by Department
Compare with on premises capabiliRes Business assessment Technical integraRon Technical assessment Contract NegoRaRon Other Current (n=851) 14% 30% 24% IT OperaRons/ AdministraRon (n=651) 14% 30% 23% ApplicaRon Development (n=148) MarkeRng (n=52) 0% 15% 30% 14% 10% 30% 14% 25% 24% 20% 13% 13% 35% 40% 50% % of Time 60% 14% 70% 80% 18% 0% 19% 0% 17% 13% 90% 0% 0% 100% B3. Please allocate your company’s buying process <me across the following stages: (Sum to 100) ©2014 451 Research LLC. All rights reserved.
Page 48 CLOUD COMPUTING EXPECTATIONS ©2014 451 Research LLC. All rights reserved. Page 49 Highest Expectation Moving to Cloud
7% Improve technology quality 8% 22% Help grow our business Improve Availability 9% Bemer business service Add capabiliRes we cannot build internally 10% 18% Scale to demand Inexpensive 13% n=1089 13% Speed Rme to market A4a. What is your organiza<on’s highest expecta<on for moving to hosted services or cloud compu<ng? ©2014 451 Research LLC. All rights reserved.
Page 50 Highest Expectation Moving to Cloud by Department
Improve technology quality 15% 15% Help grow our business 13% Improve Availability 12% 12% Bemer business service 23% 17% 27% 16% IT OperaRons/ AdministraRon (n=1316) 17% 15% 11% 7% Add capabiliRes we cannot build internally 20% ApplicaRon Development (n=303) 13% 9% 8% 8% Scale to demand Inexpensive 8% 9% 4% 6% Speed Rme to market 5% 0% MarkeRng (n=117) 9% 10% 20% % of Respondents 30% 40% A4a. What is your organiza<on’s highest expecta<on for moving to hosted services or cloud compu<ng? (select one) ©2014 451 Research LLC. All rights reserved.
Page 51 IMPACT OF CLOUD COMPUTING DOWNTIME ©2014 451 Research LLC. All rights reserved. Page 52 Impact of One Hour Downtime by Department
100% 90% 7% 13% 5% 7% 12% 13% 3% 13% Limle to no impact 80% % of Respondents 70% 18% 23% 23% 26% Loss of revenue 60% 23% 50% 26% 40% 24% 26% Loss of credibility externally with our customers or partners 30% 20% 41% 32% 30% Total (n=1736) IT OperaRons/ AdministraRon (n=1316) 35% 10% 0% ApplicaRon Development (n=303) Some impact to operaRons, but nothing detrimental An important or large part of our employees base would be unproducRve MarkeRng (n=117) A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1-‐hour? ©2014 451 Research LLC. All rights reserved.
Page 53 Impact of One Hour Downtime by Maturity
100% 90% 7% 13% 80% 7% 3% 5% 10% 10% 17% 22% % of Respondents 70% 23% 7% 14% 20% Loss of revenue 26% 22% 25% 27% 50% 26% 40% 32% 20% Some impact to operaRons, but nothing detrimental 21% 25% 30% 32% 34% 37% 34% 32% 21% 10% 0% Limle to no impact 17% 60% 20% 12% Total (n=1736) Discovery and Running Trials/Pilot ApplicaRon Test and IniRal EvaluaRon (n=235) Projects (n=318) Development ImplementaRon (n=551) (n=375) Loss of credibility externally with our customers or partners An important or large part of our employees base would be unproducRve Broad ImplementaRon (n=250) A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1-‐hour? ©2014 451 Research LLC. All rights reserved.
Page 54 APPLICATIONS IN CLOUD COMPUTING ENVIRONMENT ©2014 451 Research LLC. All rights reserved. Page 55 Common Cloud Application Deployment by Department
47% 48% Modernizing exisRng applicaRons by moving to hosted soTware or Saas 43% Total (n=1736) 41% 36% IT OperaRons/ AdministraRon (n=1316) 36% MigraRng exisRng applicaRons to cloud infrastructure 39% 27% ApplicaRon Development (n=303) 17% 16% Deploying new applicaRons that we didn't have before cloud MarkeRng (n=117) 19% 26% 0% 10% 20% 30% 40% % of Respondents 50% 60% 70% A2. What is your organiza<on's most common type of applica<on deployment for cloud compu<ng? ©2014 451 Research LLC. All rights reserved.
Page 56 Future Percent of Applications in Cloud by Department
100% 90% 17% 17% 80% % of Respondents 70% 60% 17% 17% 14% 14% 75%+ 60-‐74% 13% 16% 45-‐59% 17% 22% 50% 40% 35% 30-‐44% 31% 26% 15-‐29% 26% 19% 30% <15% 20% 18% 17% 6% 6% 24% 14% 5% 9% 1% 10% 0% Total (n=1712) IT OperaRons/ AdministraRon ApplicaRon Development (n=303) (n=1316) MarkeRng (n=93) A6. What is your organizaBons goal for the proporBon of applicaBons or resources that will be part of a cloud compuBng environment in two years? ____% ©2014 451 Research LLC. All rights reserved.
Page 57 Future Percent of Applications in Cloud by Maturity
100% 90% 17% 17% 14% 17% % of Respondents 13% 60% 19% 13% 29% 80% 70% 14% 15% 16% 14% 16% 18% 75%+ 18% 60-‐74% 16% 17% 50% 27% 40% 19% 31% 26% 24% 30% 19% 21% 18% 10% 0% 6% Total (n=1712) 11% Discovery and EvaluaRon (n=228) 19% 19% 18% 5% 5% 5% 30-‐44% 15-‐29% 30% 20% 45-‐59% <15% 11% 5% Running Trials/Pilot ApplicaRon Test and IniRal ImplementaRon Broad ImplementaRon Projects (n=311) Development (n=547) (n=370) (n=250) A6. What is your organizaBons goal for the proporBon of applicaBons or resources that will be part of a cloud compuBng environment in two years? ____% ©2014 451 Research LLC. All rights reserved.
Page 58 WINDOWS 2003 MIGRATION ©2014 451 Research LLC. All rights reserved. Page 59 Formal Migration Plans for Windows Server 2003 by Region
100% 4% 4% 5% 0% 3% 8% 90% 80% Don't know 50% % of Respondents 70% 56% 56% 59% 57% 50% 60% No 50% 40% Yes 30% 50% 20% 40% 40% Total (n=1736) North America (n=926) 37% 40% 42% 10% 0% Europe (n=334) Asia (n=323) South America (n=103) MEA (n=50) A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003? ©2014 451 Research LLC. All rights reserved.
Page 60 Formal Migration Plans for Windows Server 2003 by Company Size
100% 4% 5% 3% 3% 5% 90% 80% % of Respondents 70% Don't know 56% 58% 53% 50% 63% 60% No 50% 40% Yes 30% 20% 40% 32% 39% 44% 44% 1,000-‐4,999 (n=361) 5,000+ (n=392) 10% 0% Total (n=1736) <100 (n=317) 100-‐999 (n=666) A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003? ©2014 451 Research LLC. All rights reserved.
Page 61 Windows Server 2003 Migration Plan
Move to…. ...a newer version of Windows Server using on-‐
premises hardware 14% 25% ...a newer version of Windows Server using a hosRng provider 10% ...virtualized servers through a public cloud provider ...a hybrid approach using on-‐premises hardware and a hosRng provider 9% 18% ...a hybrid approach using a hosRng provider and public cloud 13% n=504 ...a hybrid approach using on-‐premises hardware and public cloud 11% ...a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public... A10. [IF YES] Which of the following best describes your organiza<on’s transi<on plan for current Windows Server 2003 workloads? ©2014 451 Research LLC. All rights reserved.
Page 62 Windows Server 2003 Migration Plan
By Company Size Move to a newer version of Windows Server using on-‐premises hardware <100 (n=288) Move to a newer version of Windows Server using a hosRng provider Move to virtualized servers through a public cloud provider 100-‐999 (n=77) Move to a hybrid approach using on-‐premises hardware and a hosRng provider Move to a hybrid approach using on-‐premises hardware and public cloud 1,000-‐4,999 (n=92) Move to a hybrid approach using a hosRng provider and public cloud 5,000+ (n=35) Move to a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public... 0% 10% 20% % of Respondents 30% 40% By Region North America (n=288) Move to a newer version of Windows Server using on-‐premises hardware Europe (n=77) Move to a newer version of Windows Server using a hosRng provider Move to virtualized servers through a public cloud provider Asia (n=92) Move to a hybrid approach using on-‐premises hardware and a hosRng provider Move to a hybrid approach using on-‐premises hardware and public cloud South America (n=35) Move to a hybrid approach using a hosRng provider and public cloud Move to a hybrid approach using some combinaRon of on premises hardware, a hosRng provider and public... MEA (n=12) 0% 10% A10. [IF YES] Which of the following best describes your organiza<on’s transi<on plan for current Windows Server 2003 workloads? 20% % of Respondents ©2014 451 Research LLC. All rights reserved.
30% 40% Page 63 Windows Server 2003 Migration Impact on Hosted Services
6% 3% Increase Stay the same 51% 40% Decrease Don't know n=692 A12. How will migra<ng Windows Server 2003 aﬀect your use of hosted service providers? ©2014 451 Research LLC. All rights reserved.
Page 64 Windows Server 2003 Migration Plan Enlist Service Provider
6% Yes 31% No 63% Don't know n=692 A15. Will your organiza<on enlist a service provider in your transi<on from Windows Server 2003? ©2014 451 Research LLC. All rights reserved.
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