More Related Content Similar to TBR Public Cloud Adoption Study (20) TBR Public Cloud Adoption Study2. TBR
Today’s Presenter
Stuart Williams
Director, Software Practice
Technology Business Research, Inc. (TBR)
Email: stuart.williams@tbri.com
Twitter: @s2_williams
2 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
3. TBR
Three of four IT buyers want public cloud services ...
Are you ready to sell them what they want?
74%
Adoption remains on the upswing.
• Market opportunity is growing
of businesses either use or plan • Buyers are considering multiple vendors
to purchase a public cloud • Dominant vendors have not emerged
service within 12 months.
65% Applications lead adoption.
• Buyers are looking for solutions
of non‐adopters plan to
• Software and Infrastructure as a Service lead
purchase a SaaS application
within 12 months. • Vendors must get past security issues
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496
3 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
4. Part One: Adoption of Public Cloud Services TBR
To capitalize on the vast public cloud opportunity, vendors must
first understand the drivers of adoption
Nearly three in four businesses are either using
or planning to purchase public cloud
Drivers and Barriers are varied – but cost
reduction and security remain on top
Customers want to shift more sophisticated
workloads to the cloud
4 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
5. Part One: Adoption of Public Cloud Services TBR
Cloud adoption is near 40% – with equal public and private cloud
adoption – and 54% intend to add public cloud
Overall Cloud Adoption Rates
FIGURE 1.0
Overall
N = 1,496
IT Decision Cloud
makers and adoption
Line of rate = 39%
Business
Managers Public
in U.S. Cloud
adoption
rate = 20%
Of the 1,496 respondents who participated in the study, 39% have adopted cloud
computing.
54% of respondents intend to add public cloud services within 12 months.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496
5 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
6. Part One: Adoption of Public Cloud Services TBR
Not only is overall adoption increasing, but cross‐cloud adoption is
increasing for applications, platforms and infrastructure
Adoption Rates for Public Cloud
Public Cloud Adoption Public Cloud Segments Additional Adoption of Private Cloud
FIGURE 1.1
Adopted
Public Cloud SaaS FIGURE 1.2
20% 69%
Not
Considering
Public Cloud
IaaS
26% 53%
Considering
Public Cloud
54%
PaaS
50% N=302 for public cloud adopters
N=1,496 N=302 for public cloud adopters
20% of respondents have adopted public cloud and 54% are considering
adoption of public cloud.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
6 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
7. Part One: Adoption of Public Cloud Services TBR
The overall Public Cloud revenue opportunity is growing in line
with adoption …
TBR Estimated Public Cloud Revenue
Aggregated TBR Public Cloud Landscape Revenue and Growth
$45
$43.00 Total
Estimated Public Cloud Revenue (in $ Billions)
Public
$40 TBR’s 3Q11 Public Cloud Market Landscape Cloud
$35
includes a top‐down cloud market estimate and $33.00 Market
a bottom‐up tracker of over 35 vendors.
$30
$23.00
$25
$20 $18.10
42% year‐to‐year quarterly growth Public
$15 $12.86 Cloud
$9.24 $10.31 $9.88 Market
$10 $7.92 $8.58
$6.44 $7.26 Revenue
$5.98 in TBR’s
$5 $3.07 $3.17 $3.19 $3.81 $4.14
$2.41 $2.68 covered
vendors
$‐
3Q10 4Q10 1Q11 2Q11 3Q11 Fst 4Q11 Est 1Q12 2010 Est. 2011 Est. 2012
Calendar Quarter Calendar Quarter Calendar Year
TBR Public Cloud Market Covered in the Cloud Market Landscape Report TBR Public Cloud Market Estimate
SOURCE: COMPANY DATA; TBR ESTIMATES
7 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
8. Part One: Adoption of Public Cloud Services TBR
… however, monetization is greater for SaaS than PaaS and IaaS
TBR estimates a revenue spike across
segments in 4Q11 due to seasonality.
Although SaaS accounts for the majority of TBR’s
SaaS YtY Growth: 38% public cloud market revenue, PaaS and IaaS are
PaaS YtY Growth: 43% experiencing rapid growth, and once
IaaS YtY Growth: 50% implemented, are more sticky than SaaS and
closer to customers’ core business processes.
70%
8%
22%
% CML
Revenue
SOURCE: COMPANY DATA; TBR ESTIMATES
8 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
9. Part One: Adoption of Public Cloud Services TBR
SaaS has the highest adoption rate, spurred by complete business
suites, project management, desktop and messaging
Public Software as a Service
Key Findings What you need to know
SaaS will continue to gain momentum across all
•
Adoption SaaS saw the highest adoption rate market segments from SMBs to enterprises.
Rates & among public cloud adopters, at 69%, • SaaS offerings continue to scale and vendors
Drivers with cost savings the major driver. continue to build offerings by considering buyer
infrastructure limitations and integration needs.
Microsoft is winning with public cloud
Vendor Google and Microsoft are clear deployments of its widely used Office suite.
Selection leaders in the SaaS‐based desktop Google Apps is in direct competition with
and messaging markets. Microsoft Office 365, and is positioning itself as a
more cost‐effective complete business suite.
Both public cloud purchasers and SaaS spending will continue to grow across
non‐purchasers are considering multiple business applications; however,
Key purchasing SaaS‐based project complete business suites, project management,
Offerings management, desktop and messaging desktop solutions and messaging drive will
solutions in the near future. continue to drive adoption in the SaaS market.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N =302 FOR PUBLIC CLOUD ADOPTERS, N FOR SaaS ADOPTERS = 209
9 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
10. Part One: Adoption of Public Cloud Services TBR
Though there are few established leaders and mature offerings,
rapid growth will transform the PaaS market
Public Platform as a Service
Key Findings What you need to know
50% of cloud adopters surveyed have • PaaS is increasingly important as customers
Adoption adopted PaaS offerings, with cost and migrate application development to the cloud.
increased functionality the key
Rates & • The market will see increased adoption as
drivers to purchase from both
Drivers traditional and pure‐play cloud customers customize and develop new
vendors. applications.
• Emerging solutions will have the opportunity to
Besides IBM leading the market share
gain significant share in the rapidly growing
of testing for development, there are
Vendor space.
no clear winners, indicating its
Selection • Increased adoption of SaaS solutions is leading
nascent state and the opportunity for
to integration issues, and will create a portfolio
vendor penetration and growth.
of opportunities for PaaS vendors.
Though Storage for development has • The PaaS market is still evolving.
higher adoption rates, all PaaS • All PaaS segments will experience fast‐paced
Key offerings will see relatively equal growth in coming quarters as customers
Offerings traction in the market in the next six develop custom applications for internal use
months. and as product add‐ons.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR PaaS ADOPTERS=152
10 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
11. Part One: Adoption of Public Cloud Services TBR
Demand for storage due to increased data volume drives IaaS
Public Infrastructure as a Service
Key Findings What you need to know
• Based on the survey results, 53% of
• As customers gain trust in public cloud
Adoption cloud adopters have purchased IaaS
solutions, IaaS adoption is increasing and
Rates & offerings.
becoming a core part of the IT system.
Drivers • Drivers include cost savings,
• However, basic storage and computing IaaS will
scalability and increased data
quickly become a commodity.
volume.
• No clear winner emerged – a mix of
traditional and pure‐play vendors
• Security – from the hardware level to the
such as Amazon, Rackspace, IBM
Vendor application to user control and compliance –
and HP.
remains a fundamental barrier to adoption.
Selection • Vendors offering public and private
• Vendors that can certify their cloud offerings –
cloud have better opportunity
and ecosystem – will have an advantage.
based on the overall cloud adoption
trend.
• More than 65% of customers • Storage offerings will continue to drive the sales
reported purchasing storage of IaaS offerings among both cloud adopters
Key solutions. and non‐adopters.
Offerings • Nearly 50% of non‐adopters plan to • Vendors can also expect cloud‐based systems
purchase storage in the next six management to see increased growth from
months. cloud adopters.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR IaaS ADOPTERS =161
11 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
12. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
Making the jump to public cloud services is a leap of faith for many
Nearly three in four businesses are either using
or planning to purchase public cloud
Drivers and Barriers are varied – but cost
reduction and security remain on top
Customers want to shift more sophisticated
workloads to the cloud
12 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
13. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
Customers want to leverage cloud to extend scalability, improve
performance, and reduce costs
Leading Purchase Influencers and Drivers
Customers face… Customers seek to… Why cloud? Evaluation
criteria driving
Offloading low‐risk, high‐ purchases from
Improve their
Data growth is demand workloads to the cloud providers:
spend‐to‐
driving up costs cloud reduces management
performance ratio
burden and related costs. • Cloud Provider:
Buyers want to give their end‐ o Expertise
Rising demands users the best possible speed o Pricing
Improve speed and
on traditional IT and improved IT performance, o Support
performance
infrastructure and consider cloud the means • Cloud
to do so. Infrastructure:
o Data Security
Cloud deployments let
New business customers keep costs o Network
demands require Improve scalability relatively low while still Availability
IT to be agile accessing innovative, new o Compliance
technology offerings.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
13 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
14. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
Cloud vendors that overcome security concerns and prove the ROI
for shifting specific workloads will win customers
Purchase Barriers and Drivers
Barriers to Adoption Drivers to Greenlighting Cloud Purchases
Data security and data confidentiality concerns are Cost savings, improved data security from cloud‐
top barriers to adoption of public cloud computing based security services, keeping pace with
services. technology advancements and scalability are the
• Customers reported data privacy concerns as key drivers of cloud adoption.
the biggest business risk in adopting cloud • More than 50% of respondents indicated cost
computing services, as they want to retain savings as the primary driver for purchasing
physical control of critical data. public cloud computing services.
• Data security was cited as the biggest IT concern • Respondents also valued other key mentions
in adoption of cloud services. such as scalability to add capacity, adoption of
• Other adoption barriers include legacy advanced technology standards and the need
infrastructure, complexity of integration of for improved data security as reasons to buy.
cloud offerings with existing applications and
infrastructure, and unclear ROI benefits from
cloud investments.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR ADOPTERS
14 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
15. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
SaaS offerings are the durable driver of cloud computing adoption,
and will continue to be for the near future
Key Findings and Conclusions
Key Findings What you need to know
Key Driver • Unlike the earlier days of adoption,
• SaaS offerings are continuing to
for growth
grow across multiple business SaaS offerings have gained traction
in cloud across SMBs as well as large
computing applications.
enterprises.
• 69% of cloud adopters surveyed
• Increased demand for complete
have deployed SaaS solutions.
business suites, desktop
• 65% of non‐cloud adopters plan
productivity and project
to purchase SaaS solutions in management will drive the growth
the next six months. for SaaS.
• Over 50% of respondents
• Lack of complete business suites is
indicated cost savings as their creating an opportunity for
primary purchase driver. vendors.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
15 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
16. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
Platform follows Software as a Service as customers look to extend
and integrate their public and private cloud investments
Key Findings and Conclusions
Key Findings What you need to know
• Increased adoption of SaaS applications
Other is creating a need for integration of
Growth • 79% of SaaS users are either
SaaS solutions with on‐premise
using or plan to purchase
solutions.
PaaS offerings.
• Larger and established SaaS vendors
• There is opportuntity for
can leverage this opportunity to extend
SaaS vendors to build a PaaS
their SaaS offerings with PaaS
ecosystem.
capabilities to gain leadership in both
SaaS and PaaS segments.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
16 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
17. Part Two: Drivers and Barriers to Public Cloud Adoption TBR
While security remains at the top of the barriers, worries about
cloud‐to‐cloud integration complexity are on the horizon
Key Findings and Conclusions
Key Findings What you need to know
Barriers • Security and data privacy remain
the biggest inhibitors. • Vendors should clearly indicate
to cost benefits across various cloud
Adoption • Other barriers include:
offerings to their customers and
o Legacy infrastructure
map workloads to deployment
o Complexity of integration
options while alleviating
o Unclear ROI
customers’ security‐related
• More than 60% of public cloud concerns to create a trustworthy
customers are considering private cloud.
cloud, and over 70% have plans to • The support and emergence of
invest in hybrid cloud. strong certifications and open
• Nearly 25% of both adopters and standards across the layers of
non‐adopters of public cloud are cloud abstraction will alleviate
concerned about cloud‐to‐cloud customer concerns.
integration.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
17 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
18. Part Three: Shifting to the Cloud TBR
As confidence in public cloud offerings builds, customers are
looking to shift more workloads to a cloud model
Nearly three in four businesses are either using
or planning to purchase public cloud
Drivers and Barriers are varied – but cost
reduction and security remain on top
Customers want to shift more sophisticated
workloads to the cloud
18 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
19. Part Three: Shifting to the Cloud TBR
CRM and project management lead the core functions most suited
for public cloud …
Business Functions Best Suited for Cloud Computing
FIGURE 1.13
Nearly 45% of the respondents indicated CRM to be the best‐suited application for cloud computing.
Project management, sales, marketing and communications also ranked high among business
functions that customers want to shift to cloud.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
19 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
20. Part Three: Shifting to the Cloud TBR
… while customers prefer business functions, such as accounting
and finance, on private cloud for security and confidentiality
Business Functions Best Suited for Private Cloud
FIGURE 1.14
Customers remain concerned about security, confidentiality and regulatory compliance, and prefer
business functions such as Accounting and Finance with critical information on private cloud while
creating a hybrid cloud, as it allows customers to retain physical control of their data.
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
20 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
21. Part Three: Completing the Journey to the Cloud TBR
IT efficiency will drive business effectiveness by creating services
that better address line of business needs
Server
Unconsolidated Virtualization Cloud Services
Consolidation
… while business functions want to
IT continues to focus on
shift applications to public and
infrastructure …
private clouds.
Top three drivers for cloud adoption Business functions best suited for cloud
by cloud adopters
1. Cost savings Public Cloud Private Cloud
2. Improved data security 1. CRM 1. Accounting and
3. Move to more advanced 2. Project finance
technology Management 2. HR management
3. Marketing and 3. Research &
TBR Cloud Adoption Study: January 2012
communications technology
21 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
22. Part Three: Completing the Journey to the Cloud TBR
Integrated solutions improve IT’s ability to respond and provide
services to lines of business to improve internal effectiveness
Technical Journey
Server
Unconsolidated Virtualization Cloud Services
Consolidation
Business Journey
Overall Roadmap from Server Consolidation to Virtualization to Cloud Services
Cloud Services: Cloud Services:
IT Benefits Business Benefits
• Cost savings • Self service and billing
• Improved data security • Scaling services to meet
• Rapid scalability
increased requirements
• IT supports lines of business
• Rapid rollout
in a new way
• Flexibility
• Outward‐facing benefits to
• Reduced labor
customers
22 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
23. TBR
Q&A Session
Stuart Williams
Director, Software Practice
Technology Business Research, Inc. (TBR)
Email: stuart.williams@tbri.com
Twitter: @s2_williams
23 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
24. TBR
TBR Cloud Resources:
TBR Topic Research:
• Winter 2012 U.S. Public Cloud Services Adoption Report
• Winter 2012 Cloud Professional Services Adoption Report
• Summer 2012 Private/Hybrid Cloud Purchasing Report
TBR Cloud Business Quarterly Reports:
• Public Cloud Market Landscape Report
Cloud Vendor Reports:
• Salesforce.com
• Amazon AWS Cloud
• Google Apps Cloud
• Microsoft Cloud
• IBM Cloud
• Rackspace
• Verizon/Terremark Cloud
• Oracle Cloud
24 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
25. TBR
Appendix
25 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
26. Appendix TBR
Winter 2012 Public Cloud Adoption Study Methodology
Methodology
TBR conducted 1,496 online Complete 100 ‐ Small business (10‐99)
surveys with IT decision‐ Quota: 101 ‐ Midmarket (100‐999)
makers working at firms 101 ‐ Large business (1,000+)
based in the United States
who are responsible for or
who influence public cloud
services purchasing. Survey Dates: Dec. 2, 2011 – Jan. 2, 2012
302 respondents indicated
they had adopted public
cloud.
Respondents: Total Respondents – 1,496
Public Cloud adopters – 302
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
26 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
27. Appendix: Demographics TBR
Respondent Industry
Respondent Industry, by Cloud Adopters
FIGURE 6.0
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
27 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
28. Appendix: Demographics TBR
Total Adopters, Viewed by Company Revenue Size
Company Revenue Size
FIGURE 6.1
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
28 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
29. Appendix: Demographics TBR
Private cloud adoption across business segments
Adoption Rate for Private Cloud
FIGURE 6.7
SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=448 FOR PRIVATE CLOUD ADOPTERS
29 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
30. About TBR Contact Us
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