SQL Database Design For Developers at php[tek] 2024
2009 Cloud Computing Trends Report
1. Irvine Louisville San Francisco
2009 CLOUD COMPUTING
TRENDS REPORT
February 2009
2. TABLE OF CONTENTS
The Survey Page 3
The Participants Page 4
Executive Summary Page 5
Familiarity with Hosting Page 6
Cloud Computing Defined Page 7
Cloud Computing Drivers Page 8, 9 and 10
Cloud Computing Obstacles Pages 11
Pricing & Timing Pages 12
IT Services in the Cloud Page 13
Solutions in the Cloud Page 14
Ways to Pay Pages 15
Further Analysis Page 16
About Hosting.com Page 17
2009 Cloud Computing Trends Report
3. THE SURVEY
Hosting.com proactively engages with clients and prospects to
effectively understand their business goals to build solutions that are
both client relevant and applicable. A core component of Hosting.com’s
client engagement strategy is the use of surveying tools.
The Cloud Computing Trends Survey was launched on December
17, 2008 and respondents had until January 23, 2009 to respond.
The survey was conducted and hosted electronically. The survey asked
approximately 11 questions and took between 6 and 10 minutes to
complete.
In sharing the results, Hosting.com will provide general demographic
information about respondents and the companies they represent;
however, Hosting.com will not reveal the specific identity of any
respondent or company.
2009 Cloud Computing Trends Report
4. THE PARTICIPANTS
644 Respondents
C-level Executives and Business Decision Makers
Over 40% were CXOs, President, Owner or Vice President
Industries
All major industries represented including Financial
Services, Retail, Social Networking, Healthcare, Manufacturing, IT
Service Providers, Marketing and Advertising, Non Profits and City
Governments.
Number of employees
69% had fewer than 100 employees
11% had greater than 1,000 employees
Annual Revenues
Ranged from less than $1M to over $100B
64% are less than $10M
13% are greater than $100M
2009 Cloud Computing Trends Report
5. EXECUTIVE SUMMARY
This Cloud Computing Trends Report introduces new data into the cloud marketplace. This survey
provided insight into the expectations small, medium and large businesses have of cloud computing, their
intended uses, reasons for adopting, and expected time-frames for implementing cloud-based solutions.
Surprisingly, this e-book reveals that there is little difference between how larger companies and small
businesses will utilize Cloud Computing . Specifically:
• The driving factors for adopting cloud services are nearly the same for all company sizes.
• Business size plays no role in how quickly cloud technologies will be adopted.
• Executive leadership in small businesses list cloud computing as a priority at the same rate as
executives with large companies.
• Small businesses are likely to receive a greater amount of IT Services from a cloud platform.
• Increased education on cloud benefits, solutions and design is needed for businesses of all sizes.
As cloud providers continue to create cloud-based solutions that provide reduced
costs, scalability, improved service level agreements, increased flexibility and overall performance they
must keep in mind a new force in cloud computing that will demand immediate, measurable results –
small businesses..
2009 is slated to be a banner year for cloud computing providers and solutions. Until now, the expected
primary source for increased revenues was large companies, specifically for test and development
environments. However, over the past several months decreased revenues and operating budgets have
driven small businesses to explore and implement production cloud environments.
` 2009 Cloud Computing Trends Report
6. FAMILIARITY WITH HOSTING
Which services does your company currently receive from a hosting provider?
Multiple selections were allowed
72%
Web Hosting
54%
Email Hosting
32%
Database Hosting
30%
Application Hosting
21%
Online Storage
This intended purpose of this question was to establish the respondents’ familiarity with hosted
services and extending IT functions to an external provider. 90% of respondents currently use a
hosting provider in some capacity.
2009 Cloud Computing Trends Report
7. CLOUD COMPUTING DEFINED
When you hear the term “cloud-computing,” what definition first comes to mind?
47% Fundamental change in how technology services are provided
19% A tool, if delivered properly, that can provide instant value to my company
9% A tool that might work for another company
13% Another buzzword – all hype
Answered Either Fundamental Change or Instant Value
12% Unsure
250+ Employees = 82% 1-49 Employees = 62%
Analysis: Two-thirds of the respondents believe Cloud Computing will have a major impact on the IT
industry. Contrastingly, 22% were familiar with the term but did not believe it would provide value to
their company.
The chart above illustrates that larger companies view the cloud more positively; primarily, due to their
familiarity with cloud computing solutions. Less than 1% of respondents from companies with 250+
employees were unsure how they would define cloud computing. Most service providers, vendors and
software manufacturers have adjusted their service offerings for the booming trend toward Cloud
Computing - they must keep the 62% of small businesses in mind when developing these solutions.
2009 Cloud Computing Trends Report
8. REDUCED COSTS DRIVING CONSUMERS
TO ENGAGE CLOUD COMPUTING
To the best of your knowledge, please select the three most important factors
that will drive companies to invest in cloud computing.
After selecting the three, please place them in order of importance.
Ranked Number 1 Ranked in Top 3
Cost Savings 34% 65%
Uptime/High Availability 17% 46%
Performance 12% 43%
Consumption-based Pricing 12% 33%
Scalability 7% 40%
Flexibility 6% 41%
Rapid Deployment 5% 24%
Continued…
2009 Cloud Computing Trends Report
9. FACTORS DRIVING CONSUMERS TO CLOUD
COMPUTING
Company-size did not alter the expectations that our respondents have of cloud-
computing solutions. The three most important factors driving consumers to invest in
Cloud Computing are nearly the same for all businesses. Likewise, the two least important
factors when stacked against the other drivers listed on page 8 were exactly the same.
Top 3 2 Least
In order of ranking In order of ranking
1. Reduced Costs 1. Rapid Deployment
2. Uptime 2. Consumption-based Pricing
250+ Employees
3. Scalability
1. Reduced Costs 1. Consumption-based Pricing
2. Uptime 2. Rapid Deployment
50-249 Employees
3. Scalability
1. Reduced Costs 1. Rapid Deployment
2. Uptime 2. Consumption-based Pricing
1-49 Employees
3. Performance
Continued…
2009 Cloud Computing Trends Report
10. MOST & LEAST IMPORTANT FACTORS
DRIVING CONSUMERS
Company-size did not alter the expectations that our respondents have of cloud-
computing solutions. The three most important factors driving consumers to invest in
Cloud Computing are nearly the same for all businesses. Likewise, the two least important
factors when stacked against the other drivers listed on page 8 were exactly the same.
250+ 50-249 1-49
Employees Employees Employees
1. Reduced Costs 1. Reduced Costs 1. Reduced Costs
Top 3
2. Uptime 2. Uptime 2. Uptime
3. Scalability 3. Scalability 3. Performance
1. Rapid Deployment 1. Consumption Pricing 1. Rapid Deployment
2 Least
2. Consumption Pricing 2. Rapid Deployment 2. Consumption Pricing
Continued…
2009 Cloud Computing Trends Report
11. CLOUD COMPUTING OBSTACLES
To your best knowledge, what are the top three obstacles Cloud Computing
providers must overcome? (Multiple selections were allowed)
64% 58%
40% 39%
30% 27%
21% 21%
Analysis: Security also top concern in other Cloud Computing Studies including recent surveys by Third
Brigade, Information Week and CIO Research.
2009 Cloud Computing Trends Report
12. ENTERPRISE-SPECIFIC OBSTACLES
Large companies expect higher levels of Security and Control.
Companies 250+ employees - 75% selected Security (selected by 58% of all others)
45% selected Control (selected by 38% of all others)
Due to their size, larger companies are more frequently the targets of malicious data attacks and have
a greater need to protect their assets due to compliancy and regulatory requirements. Types of Cloud
Computing solutions Enterprises will pursue include: R&D projects, quick promotions, online
collaboration, partner integration, social networking , new business ventures.
Analysis: Security for companies of all sizes will become less of a concern
due to advances in virtualized technologies that have produced increased
security options to meet any organizations business demands. Recent
advances, especially those made by VMWare have made shared virtual
cloud environments as secure as single-tennant environments.
2009 Cloud Computing Trends Report
13. EXECUTIVE ORDERS
Has Cloud Computing been identified as a priority by your organization’s executive leadership?
ALL RESPONDENTS:
24% - YES 61% - NO 15% - UNSURE
% Answering Yes
250+ Employees 25%
50-249 Employees 23%
1-49 Employees 24%
Analysis: As companies continue to recognize the monetary and technology benefits of Cloud
Computing, the number of executives identifying Cloud Computing as a priority will increase. Factors
such as the adoption of Software-as-a-Service (SaaS) models, Virtualization and access to broadband
and wireless networks provide mobile workforces with new approaches for delivering and receiving
business applications. Again, there is no difference between small and larger companies.
2009 Cloud Computing Trends Report
14. TIMING
How quickly do you think Cloud Computing and its benefits will evolve to have an impact
on your company?
33% - NEXT 12 MONTHS 17% - NEXT 24 MONTHS 36% - UNSURE 5%-NEVER
Next 12 Months Unsure
33% 27%
250+ Employees
31% 25%
50-249 Employees
34% 40%
1-49 Employees
Analysis: Significant market opportunity exists for cloud providers within small businesses. 34% of
respondents believe Cloud Computing will evolve to impact their business in the next 12 months. 40%
were unsure which providers can use as an opportunity to effectively engage, educate and build
solutions that provide tangible benefits for small businesses.
2009 Cloud Computing Trends Report
15. IT SERVICES IN THE CLOUD
Over the next 12 months, what percentage of your IT services do you estimate will be
delivered from a cloud platform?
More Than 75% 6% More Than 80%
With 50% + 1-49
51% - 75% 8%
26% - 50% 12%
10% - 25% 23%
1% - 9% 39% Possible “Unsure” Response
No Intention of Using 12%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Analysis: Compared to a September 2008 study by InformationWeek, the likelihood of organizations to
deliver their IT services on a Cloud platform has doubled (13% responded that greater than 25% of
their IT services would be in the Cloud) indicating that Cloud Computing is trending upward. An
appealing aspect of Cloud Computing is little knowledge is required to set up, configure and maintain
the technology and the supporting infrastructure.
2009 Cloud Computing Trends Report
16. WEB APPLICATIONS BEST-SUITED
FOR CLOUD COMPUTING
To your best knowledge, what two solutions are best-suited for a Cloud Computing
environment?
70% Web Applications 7% File/Print Server
41% Database Server 7% Traditional IT
37% Application Server 7% Other (Popular write-ins: Media, File, Raw
20% Testing/Development storage, Email)
Hosting Web Applications was the most popular solution for all companies. The two most popular
based on company size were:
2 Most Popular
250+ Employees 1. Web Applications 2. Application Server
50-249 Employees 1. Web Applications 2. Application Server
1-49 Employees 1. Web Applications 2. Database Server
2009 Cloud Computing Trends Report
17. WAYS TO PAY
Select the manner in which you would most prefer to pay for Cloud Computing services?
Month-to-Month, No
contracts, Charged on
Unsure Usage
34% 32%
Month-to-Month, No
Contracts, Base Fee
Annual
Plus Resource
Contract, Based on
Bursting
Resource Needs and
16%
Bursting, 18%
Analysis: There was a large difference between how small companies wanted to pay for cloud
computing services when compared with larger companies. 32% of companies with 250+ employees
preferred annual contracts compared to 13% of companies with 1-49 employees. For unpredictable
businesses, paying for services used is alluring; until, the first bill with multiple overages and
unexpected costs is received. Unsure responses were evenly distributed between all company sizes.
2009 Cloud Computing Trends Report
18. EDUCATION NEEDED AND WANTED
The survey data convincingly illustrates the need for additional education around cloud
computing, its uses and benefits. Examples demonstrating this need include:
• 25% Define Cloud Computing as a Buzzword or Are Unfamiliar with the Term
• 36% Are Unsure When Cloud Computing Will Impact Their Business
• 12% Have No Intention of Using Cloud Computing
• 39% Foresee 1-9% of Their IT Services Being in the Cloud in 2009
How Respondents Prefer to Learn More About Cloud Computing
49% - Read Articles and White Papers 29% - Webinars
42% - Test it Myself 21% - Discussions with Providers
Analysis: Across all industries and all company sizes there is a significant number of individuals
interested in Cloud Computing that have not been presented with compelling or relevant information
regarding Cloud Computing. The willingness of those that are familiar with Cloud Computing to adopt
it combined with the large number of companies that are still seeking information and have not
formed a conclusive opinion signals a strong market opportunity. Innovative providers that develop
client-driven solutions will continue to shape the Cloud Computing landscape.
2009 Cloud Computing Trends Report
19. FURTHER ANALYSIS
Thank you for your interest in the Cloud Computing Trends Report. To schedule a
personalized, in-depth analysis for your organization, please email Aaron Hollobaugh to
schedule an appointment.
Hosting.com and IT Business Edge will be launching a Cloud Computing White Paper at the end
of March. The White Paper will provide in-depth analysis of Cloud Computing’s practical
business benefits.
Hosting.com will be coordinating webinars to share this information with interested parties in
March & April. All individuals that download the eBook will be invited to attend.
Visit www.Hosting.com/cloud for more information about Cloud Computing Solutions provided
by Hosting.com and to participate in the CloudNine Beta (90 days of complimentary Cloud
Computing Hosting).
2009 Cloud Computing Trends Report
20. ABOUT HOSTING.COM
Hosting.com provides enterprise colocation, cloud computing, dedicated hosting, managed
hosting, disaster recovery and business continuance services to a global customer base demanding
a high level of security, reliability and responsiveness. Hosting.com monitors, manages, and
enhances the web based platforms of Web 2.0 companies, software as a service providers (SaaS),
content distribution networks (CDN), and medium to large enterprises whose web presence is
crucial and high availability mandatory.
Hosting.com currently operates SAS 70 certified data centers in Louisville, Kentucky; Irvine,
California; San Francisco, California and is currently expanding into Silicon Valley and Northern
Virginia.
For more information, please visit www.Hosting.com or call the company at 800-446-7627.
2009 Cloud Computing Trends Report
21. SOURCES
• Cloud Computing Survey: IT Leaders See Big Promise, Have Big Security Questions
(October 21, 2008). CIO Research.
• Cloud Computing Survey (September 2008). Information Week.
• Cloud Computing Security. Third Brigade.
2009 Cloud Computing Trends Report
22. Irvine Louisville San Francisco
2009 CLOUD COMPUTING
TRENDS REPORT
February 2009