This presentation offers a look into the current state of cloud infrastructure usage among enterprise organizations. Additionally, we explore current obstacles facing cloud adoption and ways in which these obstacles can be overcome. This presentation was originally presented at the CloudDevelop Conference in Columbus, OH on August 26th, 2016.

1. INDUSTRY INSIGHTS &
CLOUD SKEPTICS
HOW ENTERPRISES USE THE CLOUD & WHAT
SKEPTICS FEAR
ALEX MILLER
SENIOR ANALYST, CLUTCH.CO

2. ABOUT CLUTCH
▸ https://clutch.co
▸ Washington, DC based
▸ B2B Ratings, Reviews, and Research on IT Services
Providers and Software Solutions
▸ Over 5,000 reviews
▸ Research reports on IT segments such as mobile
development, marketing software, BI/Big data
platforms, cloud technologies

3. “CLOUD COMPUTING IS OFTEN FAR MORE SECURE THAN TRADITIONAL
COMPUTING, BECAUSE COMPANIES LIKE GOOGLE AND AMAZON CAN
ATTRACT AND RETAIN CYBER-SECURITY PERSONNEL OF A HIGHER
QUALITY THAN MANY GOVERNMENTAL AGENCIES.”
Vivek Kundra
FORMER FEDERAL CIO OF THE UNITED STATES

4. CONTENTS
▸ STATE OF THE CLOUD
▸ BENEFITS AND USAGE
▸ SECURITY
▸ OTHER OBSTACLES FOR CLOUD
▸ TURNING SKEPTICS INTO BELIEVERS
Disclaimer: Stats and figures in this presentation were complied from multiple sources and audiences, and should therefore not be used comparatively. Please
consider these figures independently of each other.

5. THE TERM “CLOUD
COMPUTING”
FIRST USED IN
MODERN
UNDERSTANDING
AMAZON WEB
SERVICES’ EC2
IS LAUNCHED
SALESFORCE IS
INTRODUCED
1996 1999 2006 2014 2015
CLOUD
CONTAINS 1
EXABYTE OF
DATA
GLOBAL SAAS
SPEND: $49B
GLOBAL IAAS
SPEND: $16.5B
Data Sources: Nasuni State of Cloud Storage 2015, Forbes: “Roundup Of Cloud Computing Forecasts And Market Estimates Q3 Update, 2015", MIT Technology Review: “Business in the Cloud”
~ 1000 petabytes
~1M terrabytes
~ Quintillion bytes
~500,000,000,000
iPhone pictures
STATE OF THE CLOUD
CLOUD MILESTONES

6. DC MOVES TO THE CLOUD
▸ The U.S. CIO issues the White House’s
Cloud First Policy on February 8, 2011
▸ $20 billion of the Federal $80 billion IT
budget is targeted for cloud migration
▸ 2013: AWS Receives Agency Authority to
Operate (ATO) from the Department of
Health & Human Services (HHS) -
becomes FedRAMP compliant
▸ 2014: Microsoft Office 365 becomes first
EaaS (Email-as-a-Service) to receive
FedRAMP accreditation and ATO
Data Sources: Federal Cloud Computing Strategy, AWS Blog: “AWS Achieves First FedRAMP(SM) Agency ATOs”, FederalTimes: “Microsoft 365 first cloud email to gain FedRAMP approval”
STATE OF THE CLOUD

7. CLOUD ADOPTION
▸ CLOUD ADOPTION FOR SMB REMAINS AROUND 50% ACCORDING TO REPORTS*
▸ CLOUD ADOPTION FOR ENTERPRISES HAS RISEN ABOVE 90%
▸ HYBRID CLOUD IS RAPIDLY GROWING
▸ 2015: 58% OF RESPONDENTS USE HYBRID CLOUD
▸ 2016: 71% OF RESPONDENTS USE HYBRID CLOUD
Data Sources: EvolveIP 2016 Cloud Adoption Survey, RightScale 2016 State of the Cloud Report, Clutch 2015 Small Business Storage Trends
STATE OF THE CLOUD

8. SPEND ON CLOUD SERVICES OVER 12 MONTHS
LESS THAN $50,000
$50,000 - $99,000
$100,000 - $499,999
$500,000 - $999,999
$1M - $4.9M
$5M - $10M
$10M +
0% 12.5% 25% 37.5% 50%
1%
1%
6%
6%
18%
13%
43%
11%
7%
22%
11%
21%
5%
6%
Over 1,000 Under 1,000
Company Size (employees)
Data Source: IDG 2015 Cloud Computing Survey
STATE OF THE CLOUD

9. EXPECTED 2016 SPEND ON CLOUD
COMPARED TO 2015
0%
25%
50%
75%
DECREASE 11% - 50% REMAIN MOSTLY FLAT INCREASE 11% - 50% INCREASE MORE THAN 50%
7%
56%
27%
6%
Data Source: Clutch 2016 Enterprise Cloud Computing Survey
STATE OF THE CLOUD

10. PUBLIC CLOUD VENDOR CHOICE
(IAAS & PAAS OFFERINGS)
25%
50%
75%
100%
AWS AZURE GOOGLE CLOUD
13%
15%
8%
18%
29%
17%
10%
20%
57%
Running Apps Experimenting Plan to Use
Data Source: RightScale 2016 State of the Cloud Report
STATE OF THE CLOUD

11. Data Source: Business Insider: “Amazon Web Services is becoming a nice predictable profit engine”
STATE OF THE CLOUD

12. KEY BENEFITS
▸ Top identified benefits of cloud technologies:
▸ Speed (access to infrastructure, time-to-market)
▸ Security
▸ Scalability
▸ Availability
▸ Efficiency (IT staff and resources)
▸ High performance
Data Sources:RightScale 2016 State of the Cloud Report, Clutch 2016 Enterprise Cloud Computing Survey
BENEFITS AND USAGE

13. CLOUD-FIRST SELLING POINTS
Data Sources: Federal Cloud Computing Strategy
BENEFITS AND USAGE

14. TOP TASKS COMPLETED USING CLOUD
0%
25%
50%
75%
100%
FILE STORAGE BACKUP/DR APP DEPLOYMENT
18%
20%
20%
17%
21%
22%
16%21%
28%
First Priority Second Priority Third Priority
Data Source: Clutch 2016 Enterprise Cloud Computing Survey
BENEFITS AND USAGE

15. CLOUD INITIATIVES FOR 2016
0%
25%
50%
75%
100%
MOVING MORE WORKLOADS TO THE CLOUD OPTIMIZE EXISTING CLOUD USE EXPANDING PUBLIC CLOUD USAGE
38%
43%
35%
46%47%
57%
Enterprise SMB
Data Source: RightScale 2016 State of the Cloud Report
BENEFITS AND USAGE

16. Data Source: Cloud Cruiser Public Cloud 2016 Survey
AWS SPECIFIC USAGE
DEVELOPMENT & TESTING
BIG DATA & ANALYTICS
SANDBOX ENVIRONMENTS
CUSTOMER-FACING APPLICATIONS
BACKUP/RECOVERY
0% 25% 50% 75%
19%
25%
30%
31%
59%
BENEFITS AND USAGE

17. SECURITY
IS SECURITY YOUR PRIMARY CONCERN WITH CLOUD TECHNOLOGIES?

18. “I THINK WHAT WE’RE SEEING NOW, WHEN IT COMES TO
THE CLOUD AND SECURITY, IS A BIT OF A MYTH THAT THE
CLOUD IS LESS SECURE. I’VE HEARD THIS MANY TIMES,
BUT IT DOES NOT SEEM TO BE TRUE IN REAL LIFE.”
David Linthicum
SVP of Cloud Technology Partners
SECURITY

19. THE NUMBERS DON’T LIE
Data Sources: EvolveIP 2016 Cloud Adoption Survey, Clutch 2016 Enterprise Cloud Computing Survey, Rightscale 2016 State of the Cloud Report, IDG 2015 Cloud Computing Survey
SECURITY

20. SECURITY CONTRADICTIONS
PRIMARY BENEFIT OF USING
CLOUD INFRASTRUCTURE
Physical Space
5%
Maintenance
6%
Cost
7%
Mobility
7%
Flexibility
8%
Speed
9%
Scalability
9%
Data Space
12%
Efficency
15%
Security
22%
PRIMARY PROBLEMS ENCOUNTERED WITH
CLOUD INFRASTRUCTURE
0%
50%
SECURITY TRAINING INCREASED COSTS DOWNTIME MOBILITY
21%
25%
28%28%
31%
Data Source: Clutch 2016 Enterprise Cloud Computing Survey
SECURITY

21. WHAT ABOUT COMPLIANCE REGULATIONS?
▸ Compliance with standards and
regulations remains a primary
concern for enterprises
Data Source: Clutch 2016 Enterprise Cloud Computing Survey, AWS Compliance, Microsoft Azure Compliance
SECURITY

22. “COMPANIES OFTEN USE COMPLIANCE
CONCERNS AS AN EXCUSE FOR NOT USING THE
CLOUD. … BUT THESE COMMENTS ARISE
FROM IGNORANCE. … IT’S ALL ABOUT
UNDERSTANDING THE FEATURES AND
FUNCTIONS THAT FACILITATE BEING
COMPLIANT IN THE CLOUD. A LOT OF
EDUCATION NEEDS TO OCCUR.”
David Linthicum
SVP of Cloud Technology Partners
▸ User education is a key problem
area for cloud technologies, which
can cause much of the concern
with regulation compliance
▸ Like any new product, the task for
providers is education, rather than
simple system improvements
USER EDUCATION
SECURITY

23. SECURITY ISN’T THE ONLY CONCERN
Public Cloud Private Cloud
Lower TCO 23% 21%
Enabling business continuity 16% 18%
Replacing on-prem legacy technology 15% 15%
Improving customer support or services 14% 13%
Enabling innovation 14% 12%
Speed of deployment 13% 14%
Saving on CAPEX 13% 15%
AREAS WHERE HELP IS NEEDED FROM VENDORS TO SELL PUBLIC/
PRIVATE CLOUD TO INTERNAL STAKEHOLDERS
Data Source: IDG 2015 Cloud Computing Survey
OTHER OBSTACLES FOR CLOUD

24. LACK OF AWARENESS
OTHER OBSTACLES FOR CLOUD
DOES YOUR AGENCY TAKE
ADVANTAGE OF SERVICES
IN THE CLOUD?
Not sure
25%
No
22%
Yes
53%
WHAT APPLICATIONS HAS YOUR AGENCY ALREADY
MOVED TO THE CLOUD?
0%
25%
50%
NOT SURE EMAIL/COLLABORATION PUBLIC WEBSITE
25.56%
34.44%35.56%
WHAT TYPE OF CLOUD DOES
YOUR AGENCY’S
APPLICATIONS MOSTLY
RESIDE IN?
Other
12%
Commercial Cloud service provider
17%
Governement-only commerical cloud (Hybrid)
12%
Government-run cloud
17%
Not sure
42%
I DON’T REALLY NEED TO
KNOW WHERE MY
APPLICATIONS AND
SYSTEMS RESIDE, JUST AS
LONG AS THEY WORK
Agree
69%
Disagree
31%
Data Source: Federal News Radio Executive Survey Series Cloud Survey 2016
From a study of federal agency usage of cloud technology, including:
▸ 41.5% from Civilian Agencies
▸ 16% from Department of Defense

25. LACK OF AWARENESS (CONT.)
OTHER OBSTACLES FOR CLOUD
HOW IS YOUR AGENCY TRAINING ITS WORKFORCE
ABOUT CLOUD COMPUTING SERVICES?
WE ARE NOT RECEIVING ANY TRAINING
NOT SURE
FED. AGENCY IN-PERSON TRAINING
FED. AGENCY ONLINE TRAINING
FED. AGENCY WEBINARS
0% 12.5% 25% 37.5% 50%
11.9%
13.1%
17.86%
25%
41.67%
Data Source: Federal News Radio Executive Survey Series Cloud Survey 2016

26. LACK OF AWARENESS (CONT.)
▸ It’s not just a problem in the public sector
▸ Is SMB cloud usage really at only 52%
▸ Do enterprises understand their strategy in the cloud?
▸ IT, on average, expects 68 cloud services to be used in their company
▸ The average company uses 738 cloud services - over 10x what IT
expects
OTHER OBSTACLES FOR CLOUD
Data Source: Skyhigh Network Cloud Adoption & Risk Report Q4 2015

27. TURNING SKEPTICS
INTO BELIEVERS

28. BACK TO THE BENEFITS
TURNING SKEPTICS INTO BELIEVERS
PRIMARY BENEFIT OF USING CLOUD
INFRASTRUCTURE
Physical Space
5%
Maintenance
6%
Cost
7%
Mobility
7%
Flexibility
8%
Speed
9%
Scalability
9%
Data Space
12%
Efficency
15%
Security
22%
Data Sources: Clutch 2016 Enterprise Cloud Computing Survey, Rightscale 2016 State of the Cloud Report

29. TURNING SKEPTICS INTO BELIEVERS
SOCIAL PROOF
▸ Enterprises are overwhelming shifting operations to the cloud
▸ Over half of the US Government houses applications in the cloud under The
White House’s Cloud First Policy
▸ A reported 82% of surveyed companies that utilize cloud technologies have
saved money
▸ 80% have seen operational improvements within the first 6 months of
adopting cloud services
Data Source: NSK Inc: “IT Consultants' Insight on Business Technology”

30. RETURN ON INVESTMENT
▸ Be realistic - cloud operations are not always cheaper
▸ This requires financial understanding & commitments from IT, not just upper management
▸ “Developers are currently reigning supreme as the main users of many cloud services, being largely
responsible for Amazon Web Services' 12 billion dollar revenue for this year alone. Developers aren't
very interested in money, and often, they are simply in denial or are not being frugal about costs.
Cloud services are cheaper if they're used in an optimal fashion. For example, when leaving your
house, you turn the lights off. You don’t keep them on constantly. It's not very practical and it would
lead to a high utilities bill. Leaving services running all the time and buying too much of them is a bad
practice. Generally speaking, developers don't have a financial view of the world and only care about
getting the best services. The cloud is much more efficient if it's used as it was intended.”
— Deirdre Mahon, Chief Marketing Officer at Cloud Cruiser.
Data Source: Clutch: “Interview with Cloud Cruiser”
TURNING SKEPTICS INTO BELIEVERS

31. SECURITY
▸ Many breaches come from organizational oversight rather than system
malfunction
▸ Security is no longer the universal primary concern
▸ Platforms such as AWS, Azure, Google Cloud, etc. are heavily investing in security
▸ Data center infrastructure
▸ Compliance and audit assurance programs
▸ Best practices from CSA and other organizations
TURNING SKEPTICS INTO BELIEVERS

32. SMALL STEPS TOWARDS A “CLOUDY” FUTURE
▸ It all comes back to education
▸ Educating upper management about the benefits
▸ Educating IT on cost-effective usage strategies
▸ Educating teams on security policies/correct usage
▸ Start small
▸ Follow the trend of utilizing basic cloud services, such as storage, backup, and basic development
services
▸ Document and report the benefits
▸ Slowly migrate more operations to the cloud. Help ease migration costs
TURNING SKEPTICS INTO BELIEVERS

33. KEY TAKEAWAYS
1. Cloud adoption and usage is growing significantly
2. Skeptics are often unaware of benefits/have been misinformed
3. Many organizations/agencies are unaware of their cloud usage
4. Education needs to be the primary effort of cloud services
5. The cloud is gaining more recognition as a secure infrastructure option
6. It’s best to start small and naturally migrate additional operations when fit
TURNING SKEPTICS INTO BELIEVERS

34. THANKS!ALEX MILLER
@ALEX_B_MILLER
LINKEDIN.COM/IN/AMILLER22

35. APPENDIX
RESOURCE LIST
▸ AWS Blog: “AWS Achieves First FedRAMP(SM) Agency ATOs” - https://blogs.aws.amazon.com/security/post/TxPDA8F0N24N8Y/AWS-Achieves-First-FedRAMP-SM-Agency-ATOs
▸ AWS Compliance - https://aws.amazon.com/compliance/
▸ Business Insider: “Amazon Web Services is becoming a nice predictable profit engine” - http://www.businessinsider.com/amazon-web-services-profit-vs-total-amazon-profit-2016-5
▸ Cloud Cruiser 2016 Public Cloud Survey - http://www.cloudcruiser.com/resource/survey-public-cloud-costs-go-unchecked/
▸ Clutch: “Interview with Cloud Cruiser” - https://clutch.co/cloud/expert-interview/cloud-cruiser
▸ Clutch 2015 Small Business Storage Trends - https://clutch.co/cloud/resources/small-business-cloud-storage-trends-2015 and https://clutch.co/cloud/storage#survey
▸ Clutch 2016 Enterprise Cloud Computing Survey - https://clutch.co/cloud/resources/security-trends-in-enterprise-cloud-computing and https://clutch.co/cloud#survey
▸ EvolveIP 2016 Cloud Adoption Survey - http://www.evolveip.net/2016-survey-2?src=em&srcd=mkto
▸ Federal Cloud Computing Strategy - https://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/federal-cloud-computing-strategy.pdf
▸ Federal News Radio Executive Survey Series Cloud Survey 2016 - http://marketing.federalnewsradio.com/features-2/cloud-survey
▸ FederalTimes: “Microsoft 365 first cloud email to gain FedRAMP approval” - http://www.federaltimes.com/story/government/it/management/2014/11/21/microsoft-365-first-cloud-email-to-gain-fedramp-
approval/19337833/
▸ Forbes: “Roundup Of Cloud Computing Forecasts And Market Estimates Q3 Update, 2015” - http://www.forbes.com/sites/louiscolumbus/2015/09/27/roundup-of-cloud-computing-forecasts-and-market-
estimates-q3-update-2015/#5b9e67836c7a
▸ IDG 2015 Cloud Computing Survey - https://www.scribd.com/doc/290037560/2015-IDG-Enterprise-Cloud-Computing-Survey#fullscreen&from_embed
▸ Microsoft Azure Compliance - https://www.microsoft.com/en-us/trustcenter/Compliance
▸ MIT Technology Review: “Business in the Cloud” - https://www.technologyreview.com/business-report/business-in-the-cloud/download/?state=join#/join/
▸ Nasuni State of Cloud Storage 2015 - https://www.nasuni.com/resource/the-state-of-cloud-storage-in-2015/
▸ NSK Inc: “IT Consultants' Insight on Business Technology” - http://blog.nskinc.com/topic/Cloud-computing/IT-Services-Boston/7-Statistics-You-Didn-t-Know-About-Cloud-Computing
▸ Rightscale 2016 State of the Cloud Report - https://www.rightscale.com/lp/state-of-the-cloud
▸ Skyhigh Networks Cloud Adoption and Risk Report Q4 2015 - https://www.skyhighnetworks.com/cloud-security-blog/12-must-know-statistics-on-cloud-usage-in-the-enterprise/