The document discusses a study on enterprise cloud adoption conducted in 2010. It found that 41% of enterprises were already using cloud applications ("Pioneers") and another 17% were planning cloud solutions ("Planners"). The top motivators for cloud adoption were cost cutting and faster application deployment, while security concerns centered around loss of control. Network performance was a bigger concern than security for Pioneers based on their experiences. The study concluded that over 30% of enterprise IT was expected to be in the cloud by 2015 and generating demand required targeting Pioneers and Planners while addressing their key concerns and motivators.

1. Generating Demand: A Summary on Enterprise IT
Buying in the Early Cloud Era
February 2011
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2. Goals and Methods
• To inform demand generation programs by
understanding penetration, concerns and
motivators, apps and IT strategies, buying
habits and partner involvement, and
future plans
• Large and medium-sized enterprises to
understand key differences among 3
segments:
▫ Pioneers: Using or testing a cloud
solution
▫ Planners: Planning for a cloud solution
▫ Stragglers: Not planning a cloud
solution at this time
• Study characteristics
• IT decision-makers – IT VPs, Directors
• Sample size = 126
• Data collected Summer 2010
• Developed in partnership between Winn
Technology Group & WaveLength
Market Analytics
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3. Executive Summary
• Goals & Methods: To inform demand generation programs by
understanding penetration, concerns and motivators, apps and IT
strategies, buying habits and partner involvement, and future plans
• Many Technology Segments Competing for the Customer
• Cloud Market Adoption & Penetration
▫ 41% are Pioneering with their Cloud Apps, and another 17% are actively planning
meaning, 58% are doing “something” in the Cloud while the rest are Stragglers
▫ Pioneers already outsource more than Planners and far more than Stragglers
▫ Most common models: private Clouds and PaaS
▫ Cloud apps not yet mission critical
▫ Pioneers mostly migrate legacy apps
• Moving the Market: Motivators & Barriers
▫ Top motivators: cost cutting & speedy application deployment
▫ Reduced control is top security concern for Pioneers
▫ Experience with Cloud has shown more to worry about over network
performance than security, as…Pioneers find network delays a bigger concern
than security
▫ Network is underlying infrastructure getting most Evaluation… from all market
segments
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4. Executive Summary
• Going to Market
▫ In selecting partner for Cloud services, professional services is most critical for
both Pioneers and Planners
▫ Buying behaviors typical of shifting market: high involvement of top
management & trusted 3rd parties
▫ Planners involve more tech segments than Pioneers in Cloud implementation
▫ … But, overwhelmingly system integrators most important partner for Pioneers
while its software for Planners
▫ Brand, ability to manage, application features/functions, monitored service
levels will become key service differentiators
▫ Generating demand will require fewer, but more substantive partners
• Enter the Early Cloud Era…
▫ Many say ROI & deployment speed expectations not met…yet still Pioneers are
largely satisfied with their Cloud solution
▫ No turning back…Pioneers and Planners both estimate that around 30% of their
IT will be in Cloud By 2015
▫ For every enterprise, no longer a question of If… only when, what, and how?
▫ Simple tips for generating demand during the early Cloud era: target the right
audience with the right message
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5. Many Technology Segments Competing for the
Customer
IT as a Service Software as a Service Communications
as a Service
Cloud Services-enabling Products & Services
Consulting & Professional Services for Cloud
Pure Cloud Vendors
Managed
Telecom
Software Hardware Services/IT Systems
Service
Vendors Vendors Outsourcing Integrators
Providers
Providers
= Business model re-alignment and sales channel challenges for entire industry
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6. Shift to Cloud Architectures Well-Underway
• Although degree of penetration
Enterprise Cloud
Penetration
• Cloud apps are those that were
Adoption & Planning
into IT is unknown, more “born” of the Internet, such as
enterprises implementing or email, collaboration, and
planning “something” in the cloud customer relationship
than those that are not management
• Enterprises don’t want to be left • Mission-critical enterprise cloud
behind apps nowhere on the horizon
• Cloud Pioneers profile: • Continuum of clouds will exist, as
• Large, publicly traded or private some clouds more suited to
company certain apps than others
• Higher than average number of • Public clouds & hybrids models are
remote workers or many smaller closer than they appear
branch offices
• Higher than average number of
mobile workers
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7. Brand, Ability to Manage, Application Features &
Functions, Monitored Service Levels Will Become Key
Service Differentiators
• Imperative to own the customer had never been stronger
Channels
• Hardware & network companies will be increasingly under pressure as the primary
decision-maker changes from the enterprise to the enterprise’s data center partner, but
brand can become an important component of the apps or data center’s service sale
• Telcos need to avoid the temptation of rapidly entering the market with large systems
integrator/IT outsourcing partners that will ultimately compete with them
• All vendors interests would be well-served by educating their best channel sales
partners
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8. Generating Demand Will Require Fewer, but
More Substantive Partners
Partnerships
Technology
• Cloud is mostly about application delivery, so the strong role of
software vendors is not surprising
• Storage and app vendor partnerships will be increasingly important
• Server and network vendors would be well-served by developing
closer relationships with application vendors
• Network hardware vendors can best support their telco customers
in service delivery by avoiding direct competition with them
• Integrators, consultants, and other distribution partners needs to
development cloud services management capabilities
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9. For Every Enterprise, No Longer a Question of
If… Only When, What, and How?
• For Pioneers, adopting cloud to stretch
IT dollars….
• Even as cloud solution falls short of
ROI & speedy deployment
expectations
• And Still satisfied
• For Planners who plan more advanced
cloud models bringing new & legacy
apps to the cloud
• For Stragglers with NO cloud plans, but
expect 11% of IT to be in the cloud in a
few years
• Welcome to the vida loca in
the Early Cloud Era
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10. Simple Tips for Generating Demand During the
Early Cloud Era
Target the Right
Use the Right Message
Audience
Don’t bother with organizations with Position your message as to how your
fewer than 1000 employees at this solution addresses and helps remote
point in the market and mobile workers
Enterprises with high levels of Make sure you highlight your
outsourcing, & key technologies like professional services capabilities and
SANs, server & storage virtualization strengths
Educate & partner with your best Address motivators as speed of
solution partners deployment and cost reduction
Address concerns of security risks,
Don’t ignore enterprise’s top business
reduced control, & network
management
performance
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11. Thank you
WaveLength Market Analytics LLC Winn Technology Group
www.wlanalytics.com www.winntech.net
415.579.7030 727-789-0006
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