Debuting new research data, Forrester's John Rymer discusses the rapid growth of "customer-centric" workloads in the cloud and the challenges many organizations have faced with private cloud. Learn more by visiting our Bluemix Hybrid page: http://ibm.co/1PKN23h Speaker: John Rymer (Analyst, Forrester)

2. IBM Bluemix Market Credible Study:
Executive Summary Data Review
John Rymer, Vice President and Principal Analyst
Chris Taylor, Consultant
November 2015
› For internal use only

3. © 2015 Forrester Research, Inc. Reproduction Prohibited 3
Agenda
›Project objectives and approach (includes demographics)
›Executive summary
›Key findings
›Next steps

4. © 2015 Forrester Research, Inc. Reproduction Prohibited 4
Agenda
›Project objectives and approach (includes demographics)
›Executive summary
›Key findings
›Next steps

5. Project objectives and approach
› IBM’s Bluemix overall value proposition is that it extends customer “cloud
freedom of (deployment) choice.” The product features support this
message, but IBM wants to develop materials that promote prospect and
customer confidence that the offering:
• Can be implemented quickly and without requiring expensive and scarce technical skills.
• Will actually reduce ongoing platform/infrastructure management effort for the customer,
regardless of deployment option.
• Will benefit the broad range of enterprise applications, not just systems of engagement.
› IBM asked Forrester for help in obtaining evidence that customers need
these additional benefits (beyond freedom of deployment choice) and are
hard-pressed to obtain them with current products, as well as stories about
the business results that can accrue from the benefits.
› Methodology for this study included:
• Online survey
• 200 total respondents 70 in the US; 30 each in the UK, Germany, and France,
and 40 in Latin America
• Respondents from B2B organizations with 500+ employees
• CIO, VP, Director, or manager level focusing on app dev and infrastructure

6. © 2015 Forrester Research, Inc. Reproduction Prohibited 6
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Demographics: Location and Industry
“Which of the following best describes the
industry to which your company belongs?”
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
“In which country are you located?”
10%
10%
15%
15%
15%
35%
Brazil
Mexico
France
Germany
United Kingdom
United States
1%
1%
2%
2%
2%
3%
3%
3%
3%
4%
4%
5%
5%
8%
10%
10%
14%
20%
Chemicals and metals
Media and leisure
Agriculture, food, and beverage
Energy, utilities, and waste…
Telecommunications services
Consumer product manufacturing
Construction
Government
Other
Retail
Education and nonprofits
Transportation and logistics
Healthcare
Electronics
Business or consumer services
Financial services and insurance
Manufacturing and materials
IT (Technology)

7. “Using your best estimate, how
many employees work for your
firm/organization worldwide?”
29%
36%
22%
13%
500 to 999 employees
1,000 to 4,999
employees
5,000 to 19,999
employees
20,000 or more
employees
Demographics: Company and department
“Which of the following best
describes your current
position/department?”
IT
80%
IT
operatio
ns
20%
“Which title best describes your
position at your organization?”
VP
12%
Manager
22%
Director
25%
C-level
41%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.

8. “Which of the following best
describes your role within IT?”
Business
intelligence
6%
Infrastructure
and
operations
8%
Software
development/
testing
16%
IT
management
70%
Demographics: Role and responsibility within IT
“What is your involvement / awareness regarding your
organization's decision making process for application
and infrastructure management?”
Involved in
decisions
3%
Key
Influencer
16%
Final
Decision
Maker
81%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.

9. © 2015 Forrester Research, Inc. Reproduction Prohibited 9
Agenda
›Project objectives and approach (includes demographics)
›Executive summary
›Key findings
›Next steps

10. © 2015 Forrester Research, Inc. Reproduction Prohibited 10
Executive summary
1. Respondents favor public elastic clouds and VPC today.
2. Applications for customer engagement, operations, and analytics dominate
cloud, and systems of record are already prominent.
• Important to not equate “customer” applications with SoE and SoI only; suggests other SoRs
headed to cloud.
3. Ninety percent expect to move more SoR apps in cloud; SaaS replacement is
their preferred approach.
• Why? 1) get implemented fast 2) without a lot of IT staff.
4. Top factor in selecting a cloud-service type: Application services and data
available from vendor.
• Trumps security and application control.
5. Ninety percent expect private, internal clouds to play bigger role in strategy.
Biggest barriers to adopting private/internal clouds:
• 1) Lack of expertise in *managing* private internal clouds, 2) lack of expertise in *implementing*
private internal clouds.

11. Q16. Which type of cloud services does your organization most prefer to use?
1%
6%
24%
30%
39%
External hosting environment
Private, internal cloud (locally installed in your data center) -vendor
managed
Private, internal cloud (locally installed in your data centers) - self-hosted
Virtual private cloud/dedicated cloud service hosted by a vendor
Public cloud service (elastic multitenant cloud)
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Public cloud is the top preferred cloud offering
Finding 1

12. Q3. Which of the following more specifically represent the applications your enterprise has built,
deployed, and run in the cloud?
19%
34%
35%
49%
60%
68%
32%
53%
63%
32%
38%
48%
64%
A custom application unique to our business
Compliance applications
Human capital management
Production management
Financial management
Customer management
Internal Web and/or mobile applications
Customer-facing mobile applications
Customer-facing Web applications
Predictive analytics
Classification and ranking
BI and data warehousing
Customer analytics
Systemsof
record
Systemsof
engagement
Systemsof
insight
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Applications for customer engagement, operations, and analytics
dominate cloud
Finding 2

13. Q1. For which of the 3 types of applications has your enterprise used cloud-computing services to
build, deploy, and/or run during the last two years?
66%
68%
74%
Systems of insight
Systems of engagement
Systems of record
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Over 2/3 of companies have deployed at least one application of each
system type into the cloud
Finding 2

14. Q11b. Which of the following would you expect to implement as you take your systems of record to
the cloud?
(for those using multiple systems (must select at least 2)
28%
39%
47%
49%
62%
Replacement
Cloud extend
Re-host and extend
Life and shift
SaaS replacement
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 178 Global IT decision-makers expecting to use multiple of the above options when taking systems of record to the cloud..
SaaS replacement preferred by almost 2/3rds of respondents moving
SoR to the cloud
Finding 3

15. Q10. Why would your business choose the method specified in Q9 when taking systems of record
to the cloud?
21%
24%
38%
45%
50%
57%
Minimize business disruption time
Requires less technical expertise
Maintain custom functionality of existing apps
Maintain usability for business users (preserve familiarity with
apps/interface)
Fewer requirements for IT staff
Faster implementation time
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Companies don’t want a long implementation process when shifting
applications to the cloud, and they also prefer methods which have
fewer requirements for IT staff
Finding 3

16. Q17. What are the most important factors in your enterprise's selection of a cloud service type?
8%
6%
8%
7%
15%
12%
15%
15%
16%
18%
3%
4%
6%
8%
8%
14%
14%
11%
12%
12%
6%
4%
5%
3%
12%
9%
11%
11%
6%
7%
Speed application-deployment time
Minimize business disruption
Extend existing relationship with a strategic vendor
App/service portability across cloud (on-prem and off-prem) and other
vendors
Reduce the cost of IT operations
Reduce the cost of software projects
Maintain control of application reliability and performance
Maintain control of data security and privacy
Ability to scale and manage a common pool of resources for our many
applications
Ability to use vendor application services and/or data sets to make project
better
Private, internal Virtual Private Public Cloud
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Top factor by preferred cloud type
Finding 4

17. Q17. What are the most important factors in your enterprise's selection of a cloud service type?
6%
5%
9%
16%
17%
21%
22%
6%
3%
4%
7%
16%
20%
17%
13%
5%
12%
11%
10%
14%
7%
16%
9%
8%
10%
11%
6%
Speed application-deployment time
Minimize business disruption
Extend existing relationship with a strategic vendor
App/service portability across cloud (on-prem and off-prem) and other
vendors
Reduce the cost of IT operations
Reduce the cost of software projects
Maintain control of application reliability and performance
Maintain control of data security and privacy
Ability to scale and manage a common pool of resources for our many
applications
Ability to use vendor application services and/or data sets to make project
better
Rank 1 Rank 2 Rank 3
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Companies want to utilize their cloud vendors to make their projects
better and scale across applications as needed—all while remaining
secure and reliable
Finding 4

18. Q6. Within the next two years, does your organization plan to increase the number of systems of
record applications it either builds or migrates to cloud platforms?
Q12. Within the next two years, does your organization plan to increase the number of systems of
insights applications it either builds or migrates to cloud platforms?
Q18. Do you expect private/internal clouds to play a greater role in your enterprise’s cloud strategy
during the next two years?
92%
87%
89%
Private/Internal Clouds
Systems of Insights
Systems of Record
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Nearly all companies plan to increase the role of systems of record,
systems of insight, and private/internal clouds in their cloud strategies.
Finding 5

19. Q21. What are the biggest barriers to your company's adoption of private/internal clouds?
15%
14%
13%
19%
17%
22%
11%
15%
16%
17%
22%
19%
15%
17%
17%
16%
17%
17%
Lack of governance policies
Lack of resources/budget
Lack of expertise in running data centers generally
Lack of features and resources compared to public clouds
Lack of expertise to implement private internal cloud environments
Lack of expertise to manage private internal cloud environments
Rank 1 Rank 2 Rank 3
Note: 9% of respondents answered that they had not experienced any barriers.
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Biggest barriers to adopting private/internal clouds: 1) Lack of
expertise in *managing* private internal clouds, 2) lack of expertise in
*implementing* private internal clouds
Finding 5

20. © 2015 Forrester Research, Inc. Reproduction Prohibited 20
Agenda
›Project objectives and approach (includes demographics)
›Executive summary
›Key Findings
›Next steps

21. © 2015 Forrester Research, Inc. Reproduction Prohibited 21
Current State

22. Q2. Regarding the applications you are running in the cloud, what percentage of your total cloud
applications pertains to each category?
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
SoR
34%
SoE
36%
SoI
30%
Using applications in all 3
systems (n=76)
SoE
49%
SoI
51%
Using SoE and SoI only
(n=18)
SoR
54%
SoE
46%
Using SoE and SoR only
(n=25)
SoR
53%
SoI
47%
Using SoR and SoI only
(n=21)
8%
9%
13%
SoE only
SoI only
SoR only
Applications in cloud
Companies are running a fairly balanced number of applications
within the cloud (per system type)

23. Q4. Looking across the applications your enterprise has deployed to the cloud, what benefits have
you experienced through cloud adoption?
(select all that apply)
30%
32%
36%
40%
40%
44%
44%
46%
55%
64%
Globalized our business processes
Made promised software delivery dates more predictable, reliable, and
transparent
Modernized older applications that are key to our success
Utilizing vendor application services and/or data sets made projects better
Reduced the cost of software projects
Improved the quality of the software we deliver
Reduced the cost of IT operations
Achieved faster delivery of software projects
Improved IT security
Cloud provided the large scaling capacity these applications demand
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Top 2 benefits realized: Easy/ready application scaling and improved
IT security

24. Q5. Of the cloud benefits you have experienced, please identify of the top benefit?
4%
6%
6%
7%
8%
8%
8%
9%
16%
28%
Globalized our business processes
Reduced the cost of software projects
Modernized older applications that are key to our success
Improved the quality of the software we deliver
Achieved faster delivery of software projects
Made promised software delivery dates more predictable, reliable, and
transparent
Reduced the cost of IT operations
Utilizing vendor application services and/or data sets made projects better
Improved IT security
Cloud provided the large scaling capacity these applications demand
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Of single most top benefit by far is easy/ready application scaling –
at 28% of respondents

25. Q6. Within the next two years, does your organization plan to increase the number of systems of
record applications it either builds or migrates to cloud platforms?
Q12. Within the next two years, does your organization plan to increase the number of systems of
insights applications it either builds or migrates to cloud platforms?
Q18. Do you expect private/internal clouds to play a greater role in your enterprise’s cloud strategy
during the next two years?
92%
87%
89%
Private/Internal Clouds
Systems of Insights
Systems of Record
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Nearly all companies plan to increase the role of systems of record,
systems of insight, and private/internal clouds in their cloud strategies.

26. Q7. You indicated your company is planning to increase the number of system of record/system of
insight/private & internal cloud applications it takes to the cloud. What are the key objectives
driving that decision?
18%
20%
21%
25%
24%
25%
22%
34%
24%
47%
15%
15%
23%
27%
26%
22%
25%
29%
31%
49%
17%
20%
23%
23%
25%
25%
28%
31%
34%
45%
Make promised software delivery dates more predictable, reliable, and
transparent
Utilizing vendor application services and/or data sets to make projects
better
Reduce the cost of software projects
Globalize our business processes
Achieve faster delivery of software projects
Improve the quality of the software we deliver
Modernize older applications that are key to our success
Reduce the cost of IT operations
Cloud provides the large scaling capacity these applications demand
Improve IT security
Systems of Record (N=183) Systems of Insight (N=173) Private/Internal Clouds (N=178)
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Improved IT security is the top motivator for all three groups,
followed by easy/ready scaling for SoR and SoI, and reduce cost of
IT ops for private/internal cloud

27. Q9. Regardless of your current plans for your systems of record, which method best describes
how you would approach taking systems of record to the cloud?
9%
17%
20%
20%
34%
Replacement'
Cloud extend'
Lift and shift'
Re-host and extend'
SaaS replacement'
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
SaaS replacement is the preferred method for shifting SoR
applications to the cloud
Finding 3

28. Q22. Please rate, on a scale from 1 to 5, your company's perception regarding the following
'managed cloud' services?
30%
30%
32%
34%
47%
47%
44%
38%
16%
20%
20%
22%
Vendor-provided full management and updating of apps, platforms, and
infrastructure in public and private clouds
Vendor-provided management and updating of apps in public clouds
Private, internal cloud updated remotely by vendor
Private, internal clouds managed remotely by vendor
5 - Very positive perception 4 3 2 1 - Very negative perception
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Respondents have an overall positive perception of full managed
cloud services, including both public and private clouds

29. © 2015 Forrester Research, Inc. Reproduction Prohibited 29
Challenges

30. Q7b/Q13b/Q19b. What are some of the challenges/concerns your company has as it plans to
increase the number of system of record/systems of insight/private & internal cloud applications it
takes to the cloud?
12%
22%
24%
29%
24%
20%
33%
34%
31%
9%
29%
22%
30%
20%
30%
31%
28%
40%
10%
21%
23%
25%
25%
28%
28%
34%
43%
We have no challenges/concerns
Lack of expertise/high cost to acquire needed talent
Poor match between cloud environment and architecture/language/runtime
of the application
Concerns about application performance (reads, writes, etc.)
Risk of operational disruption not worth the potential benefits
Concerns about inability to control resources
Cost to run in public clouds
Concerns regarding regulations governing data storage
Concerns about the security and privacy of data
Systems of Record (N=163) Systems of Insight (N=158) Private/Internal Clouds (N=163)
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Security is the top concern/challenge of the more SoR and more SoI
groups. Top concern with private cloud is storage compliance and
cost of public clouds

31. Q17. What are the most important factors in your enterprise's selection of a cloud service type?
6%
5%
9%
16%
17%
21%
22%
6%
3%
4%
7%
16%
20%
17%
13%
5%
12%
11%
10%
14%
7%
16%
9%
8%
10%
11%
6%
Speed application-deployment time
Minimize business disruption
Extend existing relationship with a strategic vendor
App/service portability across cloud (on-prem and off-prem) and other
vendors
Reduce the cost of IT operations
Reduce the cost of software projects
Maintain control of application reliability and performance
Maintain control of data security and privacy
Ability to scale and manage a common pool of resources for our many
applications
Ability to use vendor application services and/or data sets to make project
better
Rank 1 Rank 2 Rank 3
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Companies want to utilize their cloud vendors to make their projects
better and scale across applications as needed—all while remaining
secure and reliable

32. Q17. What are the most important factors in your enterprise's selection of a cloud service type?
8%
6%
8%
7%
15%
12%
15%
15%
16%
18%
3%
4%
6%
8%
8%
14%
14%
11%
12%
12%
6%
4%
5%
3%
12%
9%
11%
11%
6%
7%
Speed application-deployment time
Minimize business disruption
Extend existing relationship with a strategic vendor
App/service portability across cloud (on-prem and off-prem) and other
vendors
Reduce the cost of IT operations
Reduce the cost of software projects
Maintain control of application reliability and performance
Maintain control of data security and privacy
Ability to scale and manage a common pool of resources for our many
applications
Ability to use vendor application services and/or data sets to make project
better
Private, internal Virtual Private Public Cloud
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Top factor by preferred cloud type

33. Q23. How frequently can your IT and DevOps teams deliver updates to internal platforms and
infrastructure?
8%
16%
30%
20%
12%
10%
3%
Once every 12 months or longer
Once every 6 to 11 months
Once every 3 to 5 months
Once every 1 to 2 months
Once every 3 to 4 weeks
Once every 1 to 2 weeks
Multiple times per week or more often
25%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Internal IT and DevOps teams struggle to keep pace with platform
and infrastructure changes that the business demands
54%

34. © 2015 Forrester Research, Inc. Reproduction Prohibited 34
Opportunity

35. Q11a. Would you expect your enterprise to use more than one of the following approaches as it
takes its systems of record to the cloud?
Yes
89%
No
11%
Options include "Lift and shift"; "SaaS replacement"; "Re-host and extend"; "Replacement";
"Cloud extend"
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Most companies utilize multiple methods for transitioning apps to
the cloud

36. Q15. Which of the following types of cloud services has your enterprise used to build, deploy, and
run applications during the last two years?
11%
28%
44%
56%
61%
External hosting environment
Private, internal cloud (locally installed in your data center) - vendor
managed
Private, internal cloud (locally installed in your data center) - self-hosted
Virtual private cloud/dedicated cloud service hosted by a vendor
Public cloud service (elastic multitenant cloud)
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
The majority of companies are choosing to run applications on both
public and private cloud environments

37. © 2015 Forrester Research, Inc. Reproduction Prohibited 37
Agenda
›Project objectives and approach (includes demographics)
›Executive summary
›Key findings
›Next steps

38. © 2015 Forrester Research, Inc. Reproduction Prohibited 38
Next steps
› 2 or 3 qualitative interviews still to be done.
› Webinar presenting these findings scheduled on 10/28.
› Recommend a paper on these findings as well.
• We believe these findings uniquely speak to a hot topic in cloud adoption

39. Thank you
John R. Rymer
jrymer@forrester.com
Chris Taylor
ctaylor@forrester.com

40. © 2015 Forrester Research, Inc. Reproduction Prohibited 40
Appendix

41. Q6. Within the next two years, does your organization plan to increase the number of systems of
record applications it either builds or migrates to cloud platforms?
Yes
92%
No
4%
Don't know
4%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Nearly all companies are planning to move more systems of record
to cloud platforms.

42. Q7. You indicated your company is planning to increase the number of system of record
applications it takes to the cloud. What are the key objectives driving that decision?
17%
20%
23%
23%
25%
25%
28%
31%
34%
45%
Make promised software delivery dates more predictable, reliable, and
transparent
Utilizing vendor application services and/or data sets to make projects
better
Reduce the cost of software projects
Globalize our business processes
Achieve faster delivery of software projects
Improve the quality of the software we deliver
Modernize older applications that are key to our success
Reduce the cost of IT operations
Cloud provides the large scaling capacity these applications demand
Improve IT security
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 183 Global IT decision-makers planning to increase the number of system of record applications they take to the cloud.
Improved IT security is the most common motivator for increasing
SoR applications in the cloud …

43. Q7b. What are some of the challenges/concerns your company has as it plans to increase the
number of system of record applications it takes to the cloud?
10%
21%
23%
23%
25%
25%
28%
28%
34%
43%
We have no challenges/concerns
Lack of expertise/high cost to acquire needed talent
Poor match between cloud environment and architecture/language/runtime
of the application
Concerns about culture change
Concerns about application performance (reads, writes, etc.)
Risk of operational disruption not worth the potential benefits
Concerns about inability to control resources
Cost to run in public clouds
Concerns regarding regulations governing data storage
Concerns about the security and privacy of data
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 183 Global IT decision-makers planning to increase the number of system of record applications they take to the cloud.
…yet concerns about security and privacy of data are among top
concerns when moving to cloud

44. Q12. Within the next two years, will your organization plan to raise the number of systems of
insight applications it either builds or migrates to cloud platforms?
Yes
86%
No
14%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
A large number of companies intent to increase the number of
systems of insight they migrate to the cloud

45. Q13. You indicated your company is planning to increase the number of system of insight
applications it takes to the cloud. What are the key objectives driving that decision?
15%
15%
22%
23%
25%
26%
27%
29%
31%
49%
Utilizing vendor application services and/or data sets to make projects
better
Make promised software delivery dates more predictable, reliable, and
transparent
Improve the quality of the software we deliver
Reduce the cost of software projects
Modernize older applications that are key to our success
Achieve faster delivery of software projects
Globalize our business processes
Reduce the cost of IT operations
Cloud provides the large scaling capacity these applications demand
Improve IT security
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 173 Global IT decision-makers planning to increase the number of system of insight applications taken to the cloud.
Improved IT security is the most common motivator for increasing
SoI applications in the cloud …

46. Q13b. What are some of the challenges/concerns your company has as it plans to increase the
number of system of insight applications it takes to the cloud?
9%
20%
22%
28%
29%
30%
30%
31%
40%
We have no challenges/concerns
Risk of operational disruption not worth the potential benefits
Poor match between cloud environment and architecture/language/runtime
of the application
Concerns regarding regulations governing data storage
Lack of expertise/high cost to acquire needed talent
Concerns about application performance (reads, writes, etc.)
Concerns about inability to control resources
Cost to run in public clouds
Concerns about the security and privacy of data
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 173 Global IT decision-makers planning to increase the number of system of insight applications taken to the cloud.
…yet concerns about security and privacy of data are among top
concerns when moving to cloud

47. Q8/Q14/Q20.. You indicated your company is not planning to increase the number of system of
record/system of insight/private & internal cloud applications it takes to the cloud. What are the key
factors impacting that decision?
6%
19%
25%
25%
25%
31%
38%
38%
19%
22%
15%
26%
19%
26%
30%
56%
25%
12%
25%
25%
38%
12%
12%
25%
Concerns about application performance (reads, writes, etc.)
Concerns regarding regulations governing data storage
Poor match between cloud environment and architecture/language/runtime
of the application
Risk of operational disruption not worth the potential benefits
Concerns about inability to control resources
Lack of expertise/high cost to acquire needed talent
Cost to run in public clouds
Concerns about the security and privacy of data
Systems of Record (N=8) Systems of Insight (N=27) Private/Internal Clouds (N=16)
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
For companies not planning to increase their number of cloud
applications, security is also a major factor.

48. Q18. Do you expect private/internal clouds to play a greater role in your enterprise's cloud strategy
during the next 2 years?
Yes
89%
No
8%
Don't know
3%
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 200 Global IT decision-makers involved in developing and deploying applications to a cloud platform.
Private cloud usage is expected to increase

49. Q19. You indicated you anticipate private/internal clouds will play a greater role in your ongoing
cloud strategy. What are the key benefits you see through greater use of private/internal clouds?
18%
20%
21%
22%
24%
24%
25%
25%
34%
47%
Make promised software delivery dates more predictable, reliable, and
transparent
Utilizing vendor application services and/or data sets to make projects
better
Reduce the cost of software projects
Modernize older applications that are key to our success
Cloud provides the large scaling capacity these applications demand
Achieve faster delivery of software projects
Improve the quality of the software we deliver
Globalize our business processes
Reduce the cost of IT operations
Improve IT security
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 178 Global IT decision-makers who expect private/internal clouds to play a greater role in their cloud strategy..
Companies expect private clouds improve IT security and reduce IT
operations cost

50. Q19b. What are some of the challenges/concerns your company has as it plans to increase its use
of private/internal clouds?
12%
20%
22%
24%
24%
29%
31%
33%
34%
We have no challenges/concerns
Concerns about inability to control resources
Lack of expertise/high cost to acquire needed talent
Poor match between cloud environment and architecture/language/runtime
of the application
Risk of operational disruption not worth the potential benefits
Concerns about application performance (reads, writes, etc.)
Concerns about the security and privacy of data
Cost to run in private clouds
Concerns regarding regulations governing data storage
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 178 Global IT decision-makers who expect private/internal clouds to play a greater role in their cloud strategy..
Data regulations and cost are concerns when operating more in
private clouds

51. Q8. You indicated your company is not planning to increase the number of system of record
applications it takes to the cloud. What are the key factors impacting that decision?
12%
12%
12%
12%
25%
25%
25%
25%
38%
Concerns regarding regulations governing data storage
Cost to run in public clouds
Lack of expertise/high cost to acquire needed talent
Concerns about culture change
Concerns about the security and privacy of data
Concerns about application performance (reads, writes, etc.)
Poor match between cloud environment and architecture/language/runtime
of the application
Risk of operational disruption not worth the potential benefits
Concerns about inability to control resources
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 8 Global IT decision-makers NOT planning to increase the number of system of record applications they take to the cloud.
N=8

52. Q14. You indicated your company is not planning to increase the number of system of insight
applications it takes to the cloud. What are the key factors impacting that decision?
15%
19%
19%
22%
26%
26%
30%
56%
Poor match between cloud environment and architecture/language/runtime
of the application
Concerns about application performance (reads, writes, etc.)
Concerns about inability to control resources
Concerns regarding regulations governing data storage
Risk of operational disruption not worth the potential benefits
Lack of expertise/high cost to acquire needed talent
Cost to run in public clouds
Concerns about the security and privacy of data
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 27 Global IT decision-makers NOT planning to increase the number of system of insight applications taken to the cloud.
N=27

53. Q20. You indicated you do not anticipate private/internal clouds will play a greater role in your
ongoing cloud strategy. What are your key concerns that would prevent greater use of
private/internal clouds?
6%
19%
25%
25%
25%
31%
38%
38%
Concerns about application performance (reads, writes, etc.)
Concerns regarding regulations governing data storage
Poor match between cloud environment and architecture/language/runtime
of the application
Concerns about inability to control resources
Risk of operational disruption not worth the potential benefits
Lack of expertise/high cost to acquire needed talent
Concerns about the security and privacy of data
Cost to run in private clouds
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015
Base: 16 Global IT decision-makers who do NOT expect private/internal clouds to play a greater role in their cloud strategy..
N=16