In this presentation CompTIA explores 5 key trends surrounding the transition from the POW era (PC-centric, On-premise, Web 1.0) to the SMAC era (Social, Mobile, Analytics, Cloud). The dual perspective of end users and IT channel firms provides a nuanced view of where things stand today and where they may be headed.

1. Trends in Cloud
Computing
Tim Herbert
VP, Research & Market Intelligence
therbert@comptia.org
twitter.com/timjherbert

3. PC centric
On-premise
Web 1.0
Social
Mobile
Analytics
Cloud
POW SMAC

4. Time Flies When…
Era Dates
(est.)
Computers
(est.)
Applications
(est.)
Users
(est.)
Mainframe 1950 - 1965 ~100,000 Thousands Millions
Mini-Computing 1965 - 1980 ~10M Thousands Tens of millions
PC & Client/Server 1980 - 1995 ~100M Tens of thousands Hundreds of mil.
Internet (Web 1.0) 1995 - 2010 ~1B Hundreds of thou. Billions
SMAC 2010 - ? Tens of billions Millions Billions
Source: Nicholas D. Evans, ComputerWorld using data from Cognizant, IDC, Unisys and others

5. Trends to Think About

6. Trend #1
Users begin taking cloud
computing for granted

7. Company IT Systems
Increasingly Cloud-based
10%
44%
29%
16%
10%
31%
38%
22%
0%
cloud-based
1%-30% 31%-60% 60%-100%
cloud-based
2012
2013
Includes all types of cloud systems: SaaS, PaaS and IaaS
Source: CompTIA

8. Customers Progress Through
Cloud Adoption Stages
Experiment-
ation
Non-Critical
Use
Full
Production
Optimization
Currently Using IaaS/PaaS
36%
57%
53%
Small
firms
Medium
firms
Large
firms
Currently Using Cloud Solution For:
59% Storage/back-up
53% E-mail
49% Web presence
48% Disaster recovery/business continuity
46% Business productivity
44% Collaboration
41% CRM
41% Mobile application backend
41% Analytics or business intelligence
40% Communications (webinar, videoconferencing, IM, etc.)
38% Financial management
34% HR management
Source: CompTIA

9. Trend #2
Cloud maturity leads
to wider benefits

10. Cloud Maturity Leads to Wider
Benefits
29%
30%
46%
39%
46%
56%
Ability to Cut
Costs
Simply a Better
Option
Early Adopters Mid Adopters Late Adopters
 New capabilities or features
 Allow business units to operate more freely
 Reduce capital expenditures (move to OpEx)
 Reduce operational complexity
 Free up IT headcount
 Simple/fast implementation
Other Key Benefits Reported by Users
Source: CompTIA

11. Business Objectives = IT
Objectives (and Vice Versa)
8 in 10 executives agree (NET) to the statement:
"If we could harness all of our data, we'd be a much stronger business”
Unstructured or
Semi-structured Data
10%Structured Data
Silos Reduce Data Utility for Many Businesses
16%
56%
28%
High Degree
of Data Silos
Little or No
Data Silos
Moderate Degree
of Data Silos
Source: CompTIA

12. The Future of Work?
Used Regularly in Workplace
Age of Worker
20-29
Years
30-39
Years
40-49
Years
50-59
Years
60+
Years
Microsoft Word 86% 86% 88% 88% 88%
Microsoft Excel 71% 74% 72% 65% 59%
Microsoft PowerPoint 52% 63% 57% 46% 40%
Online version of applications for word processing
or spreadsheets (e.g. Google Docs)
33% 37% 21% 16% 10%
Mobile app specific to job 27% 28% 17% 10% 12%
Source: CompTIA

13. Trend #3
Businesses re-think
policies and procedures

14. Changes Driven by Cloud
19%
31%
37%
39%
39%
45%
53%
Reduced number of IT staff
New monitoring/management tools
Restructured IT department
New policies for IT decision making
Adapted monitoring/management tools
Changed existing policies/procedures
Built new policies/procedures
Source: CompTIA

15. Helping Customers Connect
the Dots
 Security
 Proper storage of company data
 Use of mobile devices
 Support for cloud services
 Approved vendors
Areas Addressed by Cloud Policy Level of Enforcement
14%
67%
18%
High
level
Low
level
Medium
level
Source: CompTIA

16. The Changing Dynamics of the
IT Dept-LOB Relationship
When the Pros Are
Called Back In
 Cloud solution not working
as expected
 Cloud solution required
integration with other
business systems
 Security issue associated
with cloud solution
IDC: by 2016, LOB
executives will be directly
involved in 80% of new IT
investments.
Gartner: 40% of IT budgets
are shifting from the IT
department to LOBs.
CompTIA: 55% of
businesses* have allowed
cloud services to be
procured through LOBs.
“Bring Your Own Cloud”
Source: CompTIA

17. Trend #4
On the move: cloud to
cloud migration on the rise

18. Migration Patterns Among
Cloud Customers
Public Cloud
Provider #1
Public Cloud
Provider #2
Private or
Hybrid
Cloud
On-premise
System
ACME Corp
24%
25%
29%
(Apps)
27% (Infrastructure)
Source: CompTIA

19. Reasons for Switching Public
Cloud Providers
20%
26%
29%
38%
41%
42%
45%
Dissatisfied with customer service
Dissatisfied with terms of service
Outages with original provider
Move to more open standards
Better offerings/features
Costs too high with original provider
Security concerns with original provider
Source: CompTIA

20. Trend #5
Channel partners continue on the
path of business transformation

21. Cloud Business Models
Framework for the Channel
Build
Provide /
Provision
Enable /
Integrate
Manage /
Support
IaaS | PaaS | SaaS
Public | Private | Hybrid Clouds
Cloud Aggregation | Brokerage Services
Procure HW +
SW; add
expertise to
build cloud
Resell /
Referral
White-label
Hosting / Direct
to customer
Deployment
Consulting | Advising | IT Solutions
Integration
Break/Fix
Managed
Services
Customization /
Development
Architecture /
Design
Source: CompTIA

22. Cloud Business Model
Activity/Importance
48% 49% 51%
61%
32% 34% 35%
27%
Cloud Business Model Involvement
among Channel Partners
Currently
provide
Plan to
provide
Build Provide/
Provision
Manage
/
Support
Enable/In
tegrate
Value of Business Model
Activities to Channel Firms
Strategic
Opport-
unistic
Build 46% 37%
Provide/Provision 49% 38%
Enable/Integrate 53% 33%
Manage/Support 58% 32%
Source: CompTIA

23. Partners See Strong Demand from
Customers for Cloud Solutions
37%
41%
22%
Customer Demand for Cloud Solutions
Very High
Demand
High Demand
63% NET
High
Demand
Somewhat High
or Low Demand
Rating of Demand from
Channel Partner
Perspective
Channel partners with
a cloud build practice
or a provide/provision
practice are most
bullish on customer
demand for cloud
solutions.
 Customer desire to reduce complexity
 Customer desire to increase mobile/remote
access to company data
 Customer eyeing cost reductions or they are
price sensitive
 Ability to on-ramp and scale new
features/services faster
Situations Where Partners Recommending
Cloud over On-premise Solutions
Source: CompTIA

24. Key Hurdles Partners Face When
Building Out a Cloud Practice
 Developing cloud tech/sales expertise
 Optimizing cloud marketing/sales messaging
 Deciding which vendors to work with
 Cash flow/financial considerations
 Determining business model
 Balancing needs of legacy business
% of partners
reporting an
INCREASE in
channel conflict
over past 2 years
60% In response to channel
conflict, 37% of partners
report intensifying efforts to
improve their
services/solutions
capabilities
The Channel Conflict Conundrum
Source: CompTIA

25. In Closing: IF…THEN…ELSE
On the POW-SMAC transition continuum, where do your customers
sit? Where does your company sit? Where do you want to sit?
IF entering SMAC
space, THEN…
IF SMAC veteran,
THEN…

26. Thank you
Tim Herbert
VP, Research & Market Intelligence
therbert@comptia.org
twitter.com/timjherbert