We surveyed over 1000 IT executives, technology professionals, and business leaders to bring you the market survey that Forbes, GigaOm, and FierceCIO are all talking about. In this webinar we take a deep dive into the latest trends in cloud adoption. Benchmark your progress against other organizations and gain insights into the challenges and benefits they are experiencing at their respective stages of adoption. This webinar includes hard data and key findings that can help you: 1. Define or refine your cloud strategy 2. Develop your cloud business case 3. Understand what to expect at your stages of cloud adoption 4. Benchmark your progress against other companies

1. BENCHMARK YOUR CLOUD
ADOPTION: RIGHTSCALE 2014
STATE OF THE CLOUD REPORT

2. • Kim Weins
• VP Marketing, RightScale
Q&A:
• Keith Vidal
• Services Product Manager, RightScale
Please use the “Questions” window to ask questions at any time
Your Speakers Today

3. • Introduction
• Survey Methodology
• Key Findings
• Cloud Adoption
• Cloud Maturity
• Next-Generation IT
• Cloud Providers
• Q&A
Agenda
22

4. .
Cloud Adoption Reaches Ubiquity
Public Cloud Adoption Nears 90%
on Road to Hybrid Cloud

5. • 74,500 people emailed
• 1068 responses
• 254 (24%) are large enterprises
• 3.2% margin of error
• Not just RightScale users
• 303 (28%) are RightScale users
Methodology

6. 24%
26%
50%
Respondents by Company Size
Company Size
1001+
employees
101- 1000
employees
1-100
employees
Source: RightScale 2014 State of the Cloud Report

7. Cloud Management
Finding:
Cloud Adoption Reaches Ubiquity
Enterprises Progress on Journey to
Hybrid Cloud

8. 94% of Respondents Are Using Cloud
7
Public Cloud
Only
Private Cloud
Only
94% of Respondents are Using Cloud
58% 7%29%
Public
and Private
Source: RightScale 2014 State of the Cloud Report

9. 24%
29%
31%
31%
32%
36%
42%
48%
53%
57%
Which private clouds can or can't be used
Cost policies for cloud
Approval policies for cloud
Which public clouds can or can't be used
Availability or disaster recovery policies for cloud
When to choose public or private clouds
Which applications should or should not go to cloud
A timeline for implementing a cloud strategy
Security policies for cloud
The benefit or value the company wants to achieve
Enterprises with Key Elements of Cloud Strategy Defined
Cloud Strategy & Policies Lags Adoption
8
Source: RightScale 2014 State of the Cloud Report

10. Enterprises Want Multi-Cloud
9
Single private
9%
Single public
13%
No plans
4% Multiple private
11%
Multiple public
15%
Hybrid cloud
48%
74%
Enterprise Cloud Strategy
1000+ employees
Multi-Cloud
74%
Source: RightScale 2014 State of the Cloud Report

11. 73%
But Progress More Quickly on Public Cloud
10
Current Cloud Usage by Companies with Hybrid Strategy
64%
51%
Using
Public Cloud
Using
Private Cloud
Using
Hybrid Cloud
vs. 61% in 2013 vs. 38% in 2013 vs. 29% in 2013
Source: RightScale 2014 State of the Cloud Report

12. Cloud Management
Finding:
Cloud Benefits Grow in 2014
Challenges Decrease with Maturity

13. Cloud Maturity
12
6% 18% 29% 25% 22%
Cloud Maturity Model
Cloud
Watchers
Cloud
Beginners
Cloud
Explorers
Cloud
Focused
No
Plans
Planning First project Apps running Heavy use
Source: RightScale 2014 State of the Cloud Report

14. 0%
20%
40%
60%
80%
100%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Benefits Grow with Cloud Maturity
% of Respondents Reporting these Benefits
CapEx to OpEx
Business continuity
IT staff efficiency
Geographic reach
Higher performance
Cost savings
Faster time-to-market
Higher availability
Faster access to infrastructure
Greater scalability
Benefits Grow with Cloud Maturity
13
Source: RightScale 2014 State of the Cloud Report

15. 0%
20%
40%
60%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Challenges Decrease with Cloud Maturity
% of Respondents Reporting these as Significant Challenges
Security
Compliance
Managing multiple cloud services
Integration to internal systems
Governance/Control
Performance
Lack of resources/Expertise
Cost
Integration to private cloud
Lack of support from IT
Challenges Decrease with Cloud Maturity
14
Source: RightScale 2014 State of the Cloud Report

16. Place Cloud Beginners Cloud Focused
#1 Security (31%) Compliance (18%)
#2 Compliance (30%) Cost (17%)
#3 Managing multiple cloud
services (28%)
Performance (15%)
#4 Integration to internal
systems (28%)
Managing multiple cloud
services (13%)
#5 Governance/Control (26%) Security (13%)
Top 5 Challenges Change with Maturity
15
Top 5 Challenges Change with Cloud Maturity
Source: RightScale 2014 State of the Cloud Report

17. Cloud Management
Finding:
Next Generation IT Shapes Up:
Cloud + Dev Ops + Self-Service

18. 54%
62%
22%
22%
24%
16%
2013
2014
DevOps Adoption Up in 2014
Adopting DevOps Not adopting Don't Know
DevOps Adoption Up from 2013
Source: RightScale 2014 State of the Cloud Report

19. DevOps Adoption Grows with Cloud Maturity
18
76%
61%
63%
57%
16%
21%
20%
26%
8%
18%
17%
17%
Cloud Focused
Cloud Explorers
Cloud Beginners
Cloud Watchers
DevOps Adoption Grows with Cloud Maturity
Adopting DevOps Not adopting Don't Know
Source: RightScale 2014 State of the Cloud Report

20. Enterprise Self-Service Expands and Improves
with Cloud Maturity
19
68%
39%
32%
21%
Cloud Focused
Cloud Explorers
Cloud Beginners
Cloud Watchers
71%
40%
35%
18%
Have Self-Service Portal Provision to cloud in < 1 hour
Enterprise Self-Service Capabilities Increase with Cloud Maturity
Source: RightScale 2014 State of the Cloud Report

21. Finding:
AWS Leads in Public Cloud;
Interest Builds in Azure and Google

22. 4%
4%
4%
6%
7%
8%
9%
12%
54%
8%
9%
17%
20%
14%
13%
18%
14%
23%
8%
7%
13%
8%
8%
12%
11%
12%
9%
0% 20% 40% 60% 80% 100%
HP Cloud
Softlayer/IBM
Google IaaS
Azure IaaS
Azure PaaS
VMware vCHS
Google App Engine
Rackspace Public Cloud
AWS
Public Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Usage – All Respondents
Source: RightScale 2014 State of the Cloud Report

23. 4%
4%
5%
8%
9%
11%
12%
18%
49%
8%
17%
10%
17%
14%
25%
19%
15%
25%
10%
12%
8%
10%
11%
10%
10%
14%
9%
0% 20% 40% 60% 80% 100%
HP Cloud
Google IaaS
Softlayer/IBM
Google App Engine
Rackspace Public Cloud
Azure IaaS
Azure PaaS
VMware vCHS
AWS
Enterprise Public Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Usage – Enterprise Respondents
(1000+ emps) –
Source: RightScale 2014 State of the Cloud Report

24. 4%
4%
4%
4%
5%
6%
10%
13%
56%
8%
9%
18%
17%
13%
12%
19%
14%
22%
7%
7%
8%
13%
8%
11%
11%
12%
9%
0% 20% 40% 60% 80% 100%
HP Cloud
Softlayer/IBM
Azure IaaS
Google IaaS
Azure PaaS
VMware vCHS
Google App Engine
Rackspace Public Cloud
AWS
SMB Public Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Usage – Non-Enterprise
Respondents
Source: RightScale 2014 State of the Cloud Report

25. Place Enterprise (1000+ employees) SMB (Under 1000 employees)
#1 AWS AWS
#2 VMware vCHS Rackspace Public Cloud
#3 Azure PaaS Google App Engine
#4 Azure IaaS VMware vCHS
#5 Rackspace Public Cloud Azure PaaS
#6 Google App Engine Google IaaS
#7 SoftLayer/IBM Azure IaaS
#8 Google IaaS SoftLayer/IBM
#9 HP Cloud HP Cloud
Compare Top Public Clouds: Respondents
Currently Running Apps
Top Public Clouds Used
Source: RightScale 2014 State of the Cloud Report

26. Finding:
VMware and OpenStack
Battle for Lead in Private Cloud

27. 3%
6%
11%
12%
12%
31%
12%
12%
13%
14%
23%
11%
6%
6%
7%
9%
13%
8%
0% 20% 40% 60% 80%
Eucalyptus
Citrix CloudStack
Microsoft System Center
VMware vCloud Director
OpenStack
VMware vSphere/vCenter
Private Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Usage – All Respondents
Source: RightScale 2014 State of the Cloud Report

28. 6%
13%
15%
21%
26%
52%
9%
12%
25%
15%
17%
10%
3%
6%
12%
7%
10%
6%
0% 20% 40% 60% 80%
Eucalyptus
Citrix CloudStack
OpenStack
Microsoft System Center
VMware vCloud Director
VMware vSphere/vCenter
Enterprise Private Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Usage – Enterprise Respondents
(1000+ emps)
Source: RightScale 2014 State of the Cloud Report

29. 2%
4%
7%
8%
11%
24%
13%
11%
3%
13%
22%
1%
7%
7%
9%
7%
14%
8%
0% 20% 40% 60% 80%
Eucalyptus
Citrix CloudStack
VMware vCloud Director
Microsoft System Center
OpenStack
VMware vSphere/vCenter
SMB Private Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Usage – Emerging (SMB)
Respondents (<1000 emps)
Source: RightScale 2014 State of the Cloud Report

30. Place Enterprise (1000+ employees) SMB (Under 1000 employees)
#1 VMware vSphere/vCenter VMware vSphere/vCenter
#2 VMware vCloud Director OpenStack
#3 Microsoft System Center Microsoft System Center
#4 OpenStack VMware vCloud Director
#5 Citrix CloudStack Citrix CloudStack
#6 Eucalyptus Eucalyptus
Compare Private Clouds: Respondents
Currently Running Apps
Top Private Clouds Used
Source: RightScale 2014 State of the Cloud Report

31. • Cloud Adoption Reaches Ubiquity
• Hybrid Cloud is the Strategy of Choice
• Cloud Benefits Grow in 2014
• Cloud Security Concerns Abate while Compliance, Cost,
Performance Demand Attention
• Next-Generation IT Shapes Up: Cloud + DevOps + Self-
Service
• AWS Leads in Public Cloud, Interest Builds in Azure and
Google
• VMware and OpenStack Battle for Lead in Private Cloud
2014 Findings
30

32. 31
Thank You and Q&A
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www.rightscale.com/2014-cloud-report
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