private-cloud-white-paper

WhitePaper
Empoweringthebusinessforthehybrid
cloudfuture
September 2013
Taking the business
benefits of private cloud to
new heights

Avanade® WhitePaper
Taking the business benefits of private clouds to new heights
©2013 Avanade Inc. All rights
reserved.
Table of Contents
01 Scope of research/methodology
02 Summary of key findings
04 The importance of cloud computing environments and its impact on businesses
08 Private cloud growth and the trend towards hybrid
12 Wanted: a business focused, cloud management portal
15 Looking to partners to help with private cloud strategy
17 Conclusion
18 Recommendations

reserved.
1
Scope of research & methodology
Research methodology
Avanade commissioned independent technology market
research specialist Vanson Bourne to undertake the research
upon which this report is based. Avanade was created in
2000 to provide business technology solutions and managed
services based on the Microsoft platform.
750 interviews were carried out during April-May 2013 with
senior decision-makers in the IT department of enterprises
with more than 1000 employees (split equally between
enterprises with up to 3000 employees and enterprises with
more than 3000 employees). Interviews were performed in
nine countries:
 USA - 200 interviews
 United Kingdom - 100 interviews
 China - 100 interviews
 Germany - 100 interviews
 France - 70 interviews
 Sweden - 30 interviews
 Brazil - 50 interviews
 Japan - 50 interviews
 Australia - 50 interviews
Respondents to this research came from a range of industry
sectors, which only excluded public sector. Interviews were
conducted online using a rigorous multi-level screening
process to ensure that only suitable candidates were given
the opportunity to participate.
Unless otherwise indicated, results discussed in the main
narrative are based on the entire global sample. Where
variances in response by region or sector are notable, they
are clearly indicated as such.
Aims of the research
This study explores the current trends in the adoption of
private cloud computing as well as the impact public cloud
adoption is having on how IT is expected to deliver the private
cloud experience to their business users. This is done by
examining how enterprises are looking to adapt and evolve
their private cloud environments in the future. The study also
looks to understand the concerns and struggles that
enterprises currently have with cloud, and how they are
looking to tackle these difficulties.
The study investigates the purchase behavior for cloud
services within enterprises and any related consequences of
these behaviors - Are business owners bypassing their own
IT departments and engaging public cloud services? If so,
why are they doing so? What are the implications to an
enterprise when IT is not involved?
With the proliferation of public cloud services is there still a
role for private cloud services? Can IT find a solution whereby
business owners within their enterprise are able to interact
with their own cloud environment as they see fit, yet with IT
retaining ultimate control? Is IT struggling to establish a
robust, business focused, private cloud strategy and are they
looking to find a partner who can help them establish a robust
private cloud strategy? If so, are there particular areas where
they believe a partner can provide the greatest value?
The study addresses these questions in four distinct sections,
first establishing the importance and impact of cloud, then the
prevalence of private cloud and the evolution of hybrid. The
report then addresses the ever growing need for a holistic
cloud service management tool. Are enterprises looking for
more comprehensive, user friendly tools than are currently
available off-the-shelf? Finally, this paper looks at the desire
to establish a relationship with a partner who can help
enterprises create a robust cloud strategy.

reserved.
2
Summary of key findings
The majority of IT decision-makers (referred to in this
paper as ITDMs) understand the business benefits
arising from their use of cloud
 Improved efficiency (65%), improved agility (63%), and
reduced costs (55%) are the three benefits most likely to
arise from implementation of this technology.
 ITDMs see the potential of cloud computing as a key to
success. Almost half (48%) of all respondents that use
cloud completely agree with this sentiment
Private cloud is becoming the new norm in IT
environments
 89% of these enterprises use private cloud and 64% use
public cloud. Almost half (48%) of all enterprises use both
public and private cloud in tandem
But, employees are still signing up for cloud services
independently of their IT department – potentially
introducing risk into the enterprise
 Two thirds of ITDMs believe their employees are signing
up for cloud services outside of their IT department – and
as a result, two thirds of IT decision-makers also believe
that employees are introducing risk into the company
Widespread, unchecked use of external clouds is
resulting in inefficiencies for the business
 61% of respondents agree that sprawl is causing
inefficiencies in their business, and half of ITDMs say that
cloud sprawl is making their working life more difficult
Business is demanding a better private cloud experience
from their IT departments
 70% of respondents say that the business demands a
similar transparency of the internal IT department’s cost
and running of cloud computing environments to those
which are produced by external cloud providers (figure
A). In short, IT needs to be easier to do business with
Figure A: “To what extent would you agree that, having dealt with
public cloud providers, business demands a similar transparency of
the internal IT department's costing and running of cloud computing
environments?” Asked to all cloud users (683)
Private cloud environments are preferred where security
and compliance are concerns
 Security concerns (77%) and data compliance/regulatory
demands (60%) are the top two reasons why ITDMs
choose to deploy certain applications on a private cloud
rather than a public cloud
Enterprises realize many benefits from private cloud
 The majority are seeing improved utilization/greater cost
efficiencies, greater agility/speed of task completions,
simplification of IT requests and management process,
improved application performance, and improved
collaboration between business and IT
32%
38%
19%
8%
2%
1 – completely agree
2
3
4
5 – do not agree at all

reserved.
3
75% of those with private cloud are looking to increase
their investment in this technology…
 …and more than half (60%) of those without private cloud
are looking to do the same (figure B). 71% of ITDMs also
plan to have a least a portion of their private clouds
installed on-premises in the next 12 months. Therefore it
will be important for IT service providers to address how
they can offer private cloud services in a manner which
meets business departments’ expectations
Figure B: Analysis of those who plan to expand their use of private
cloud over the next twelve months. Asked of all respondents (750)
And over half of ITDMs see the business benefits of
extending their private clouds to other clouds and plan to
invest in a hybrid cloud future
 Of those that are looking to invest in hybrid cloud, the
extension of private cloud into the public cloud, the
average ratio of private to public is predicted to be
57%:43% in 24 months’ time
The majority of ITDMs agree that simplification of cloud
management is a key element of business success
 It is predicted that simplification of environments will see
an average fall of a third in the cost (32%) and time (33%)
spent managing cloud
But, over half believe that off-the-shelf cloud
management platforms cannot meet the requirements of
business goals while allowing IT to retain the necessary
control
 56% believe the majority of cloud management platforms
are too technical for business owners, 53% agree the
platforms do not use a language business can
understand and 55% also agree that cloud management
platforms are too limiting in the number of cloud platforms
they support
Three quarters of ITDMs want to empower business
owners with a self-service, business oriented private
cloud management portal
 73% of ITDMs agree that a self-service private cloud tool
which they can provide to business owners would be
useful, predicting they would roll-out this tool to an
average of five different business units across the
corporation
ITDMs are struggling to keep up with cloud technologies,
69% looking for a partner to help establish a robust cloud
strategy
 More than half (57%) of ITDMs openly admit they are
struggling to keep up with the complexity of cloud
technologies
 As a result, 69% of respondents are looking to partners
to help them establish a robust cloud strategy, mainly for
their technical expertise in designing/implementing cloud
infrastructures (figure C)
Figure C: Are you looking to partner organizations to help establish a
robust cloud strategy? Asked to all respondents (750)
When it comes to choosing a partner, technical expertise
with private cloud (72%) and robust private cloud
management tools (61%) are qualities seen as key to
maximizing cloud environments
 ITDMs are turning to partners with technical expertise in
designing and building private cloud infrastructures and
who have experience with robust private cloud
management tools that can help them maximize the
potential of their cloud environments
75%
18%
6%
34%
26%
41%
Yes, we are looking to invest
in private cloud the next 12
months
in private cloud, but beyond
12 months
No, we are not looking to
invest in private cloud
Private cloud users Non-private cloud users
69%
31%
Yes No

reserved.
4
The importance of cloud computing
environments and their impact on
businesses
The prevalence of cloud computing
The study reveals that the vast majority (91%) of respondents
have implemented cloud to some extent; private cloud is the
most popular implementation (89%), while 64% use a public
cloud implementation.
More specifically, just under half (48%) of respondents use
the two environment types in tandem, though a third (33%)
use only private cloud and one in ten (10%) use only public
(figure 1). It is worth highlighting that these mixed
environments, while being used in the same company, are
likely separate from each other; only 19% of respondents
overtly state that they have a hybrid environment (that is, a
linking of public and private cloud together). Hybrid cloud is
explored later in the study.
Figure 1: “Which of the following cloud computing environments are
currently being used by your organization?” Asked to all respondents
(750 respondents)
Why are cloud environments so popular?
The research shows that cloud environments are so popular
amongst respondents because they provide a multitude of
business benefits. On average, ITDMs highlight five different
business benefits resulting from their use of cloud computing
environments, the top three being improved efficiency,
improved agility, and reduced costs (figure 2).
Figure 2: “Which of the following do you perceive as business
benefits resulting from cloud computing environments?” Asked to all
respondents (750 respondents)
10%
48%
33%
9%
Public only
Both public and private
Private only
Currently not using cloud computing
31%
35%
41%
42%
44%
46%
47%
55%
63%
65%
Better return-on-investment
(ROI) for projects
Expansion to new markets
Efficient version upgrades
More stable
Better growth
Greater innovation
Improved disaster recovery
Reduced costs
Improved agility
Improved efficiency

reserved.
5
Cloud is key to business success
The multitude of benefits resulting from cloud implementation
is having a fundamentally positive impact on enterprises
surveyed. The vast majority (98%) of those who have
implemented a cloud solution agree to some extent that the
technology has been key in shaping their business to be more
successful (figure 3). More tellingly, almost half (48%) of
ITDMs completely agree with this sentiment, emphatically
highlighting the essential role that this technology is playing in
the success of large businesses.
Figure 3: “To what extent do you agree cloud computing
technologies have been key in helping transform your business to be
more successful?” Asked to all cloud users (683 respondents)
Those ITDMs using both public and private cloud solutions
are even more likely to completely agree with this sentiment
than those using just public or private cloud; 59% of those
with both types completely agree, compared to 40% of those
using solely public solutions and 35% of those using a private
implementation (figure 4).
Figure 4: To what extent do you agree cloud computing technologies
have been key in helping transform your business to be more
successful?” Responded “agree” by cloud usage. Asked to all cloud
users (683 respondents)
Employees bypassing IT
Two thirds (66%) of IT managers believe employees are
signing up for cloud services other than those provided by the
IT department (figure 5). ITDMs believe employees are most
frequently signing up for Software as a Service (SaaS) (77%),
followed by Platform as a Service (PaaS) (62%) and
Infrastructure as a Service (IaaS) (59%).
Figure 5: “Do you believe your organization's employees are signing
up for cloud services outside those provided by the IT department?”
Asked to all respondents (683 respondents)
Two thirds (66%) of ITDMs who suspect employees are
provisioning their own cloud services worry that additional risk
is being introduced into the IT infrastructure. This is placing
another level of pressure on the IT department (figure 6).
Despite this positivity towards cloud, there’s clearly a
difference in opinion in how best to use the technology.
Figure 6: “As a result of employees signing up for public cloud
services outside of those provided by IT, do you feel additional risk is
being introduced into IT systems?” Asked of respondents who believe
that employees are signing up for cloud services outside those
provided by the IT department (494)
48%
31%
13%
6%
2%
2
3
4
40%
35%
59%
Public cloud only Private cloud only Both public and
private cloud
66%
34%
Yes No
33%
33%
20%
13%
1%
2
3
4

reserved.
6
Cloud sprawl
Cloud sprawl is the concept that too many cloud
environments are spread too widely or thinly across a
business instead of having a coordinated approach to cloud
service acquisition and management. Given the already
widespread adoption of these services, is cloud sprawl
already affecting businesses?
The majority (61%) of respondents agrees that cloud sprawl is
causing inefficiencies in their business, rising to almost three-
quarters (71%) amongst those using both public and private
cloud solutions (figure 7).
Figure 7: Those who agree that cloud sprawl is causing inefficiencies
to be introduced into the integration and management with their back-
office business systems and applications analyzed by type of cloud
deployment. Asked of cloud users (683)
ITDMs themselves are seeing secondary effects from cloud
sprawl and half agree cloud sprawl is making their working life
more difficult (figure 8). Not only has investing in numerous
environments caused business problems, it is affecting those
that have to manage these environments.
Figure 8: “To what extent do you agree that cloud computing sprawl,
is making your working life difficult?” Asked of cloud users (683)
ITDMs in enterprises with a mix of public and private cloud
environments are more likely to feel that their day-to-day
activities are made more difficult due to cloud sprawl.
The effect of public cloud on IT departments
The research highlights that the majority of senior ITDMs
agree that the IT department has to compete against the
business models of public cloud service providers (figure 9).
Figure 9: “To what extent would you agree that the IT department
has to compete against the business models of public cloud service
providers?” Asked to all cloud users (683)
36%
54%
71%
Public cloud only Private cloud only Both public and
private cloud
22%
29%25%
17%
8%
2
3
4
29%
33%
23%
11%
4%
2
3
4

reserved.
7
Additionally, the majority of ITDMs also agree that the
business, having dealt with public cloud providers, demands a
similar transparency of the internal IT department's costing
and running of cloud computing environments (figure 10).
Figure 10: “To what extent would you agree that, having dealt with
public cloud providers, business demands a similar transparency of
the internal IT department's costing and running of cloud computing
environments?” Asked to all cloud users (683): Also labeled as
‘Figure A’ in the ‘Summary of key findings’
Those using a mix of public and private environments are
much more likely to agree (72%) that IT is in competition with
both the business models and the transparency levels of
public cloud providers.
Further analysis
Sector
Based on this study the ITDMs in the retail and private
healthcare sectors surveyed lead the adoption of cloud
technology, having the greatest level of cloud adoption at
present (98% and 95% adopting to some extent respectively).
Additionally, both of these sectors are very likely to have a
mixed environment of private and public solutions, with
around 74% using a mixed solution.
At the other end of the spectrum, the financial services sector
respondents to the survey are the least likely to have cloud
technology in place, as 20% of respondents in this sector are
not using cloud.
Around two-thirds of retail and healthcare respondents (63%
and 60% respectively) completely agree that cloud has been
key in shaping their business into a success. Financial service
respondents are at the other end of the spectrum, as only
38% completely agree that cloud is key to their success. In
addition, retail and healthcare respondents on average see
more benefits.
Country
Almost all (99%) respondents in the USA have implemented
cloud computing environments to some extent. On the other
side of the Pacific, 97% of Chinese surveyed ITDMs have
adopted cloud computing to some extent. In addition, both
China and the US respondents have the highest use of mixed
cloud environments (85% and 68% respectively).
32%
38%
19%
8%
2%
2
3
4

reserved.
8
Private cloud growth and the trend
towards hybrid
The research has already highlighted that cloud technology is
integral to the large majority of enterprises surveyed, bringing
a multitude of benefits and being key to their success as a
business. Deploying a mixture of private and public
environments has a particularly positive effect on these
enterprises, as on average those with mixed environments
experience more benefits. What of those deploying private
cloud implementations? How is private cloud faring in the
business world, and how is it affecting IT departments and
enterprises as a whole?
Private cloud deployment
As mentioned previously, the vast majority (89%) of
respondents have private cloud within their company to some
extent, this being the most popular form of cloud environment.
Currently, using a mixture of in-house and external service
providers is the most popular method of private cloud
deployment; 42% of private cloud users use a mixture of the
two (figure 11).
Figure 11: “Is your private cloud computing environment deployed in-
house or with a cloud service provider?” and “In 12 months' time, do
you see your private cloud computing environment being deployed in-
house or with a cloud service provider?” Asked of private cloud users
(607)
This is not set to change drastically over the next 12 months,
though there is a hint that those outsourcing their private
cloud deployment are moving towards a combination
approach.
Essential elements of private cloud
On average ITDMs demand four essential elements from their
deployments, with the majority needing virtualization (82%),
dynamic allocation (61%), rapid provisioning (60%), resource
pooling (57%) and service catalogues (55%) (figure 12).
Figure 12: “Which of the following do you believe to be essential
elements of private cloud?” Asked of private cloud users (607)
25%
33%
42%
25%
29%
46%
In-house
Cloud service provider
A combination of the two
Current 12 month's time
34%
46%
55%
57%
60%
61%
82%
Transparency
Self-service
Service catalogues
(Storage, Networking,
Compute, etc.)
Resourcing pooling
Rapid provisioning
Dynamic allocation
Virtualisation

reserved.
9
Private cloud investment
The vast majority (93%) of respondents currently
implementing private cloud are looking to make further
investments in this technology, with three quarters (75%)
looking to do so in the next 12 months (figure 13). The
significant desire for further investment in private cloud
suggests that the technology is hugely beneficial to those
enterprises that are currently using it. Additionally, the
majority (60%) of those currently without private cloud are
looking to invest in this environment type, furthering the idea
that the market is extremely positive towards this solution.
Figure 13: Analysis of those who plan to expand their use of private
cloud over the next twelve months. Asked of all respondents (750)
Also labeled as ‘Figure B’ in ‘Summary of key findings’
Benefits of private cloud
The vast majority (96%) of ITDMs surveyed expect benefits to
arise as a result of using private cloud. Moreover, this majority
report an average of three expected benefits from installing
private cloud, with an improved utilization of IT
resources/greater cost efficiencies (71%) and greater
agility/speed of task completion (61%) particularly highly
expected (figure 14).
Figure 14: “Of the following, which would you expect as a result of
using a private cloud solution?”
Asked of all respondents (750)
Respondents with a mix of public and private cloud have
more positive expectations of private cloud, selecting an
average of four benefits as opposed to the average of three
selected by those using a singular cloud type.
75%
18%
6%
34%
26%
41%
in private cloud the next 12
months
in private cloud, but beyond 12
months
No, we are not looking to
invest in private cloud
Private cloud users Non-private cloud users
37%
51%
55%
58%
61%
71%
Modernised/improved computing
tools/technologies
Improved collaboration between
business and IT
Improved application
performance
Simplification of IT requests and
management processes
Greater agility/speed of task
completion
Improved utilisation of IT
resources/greater cost
efficiencies

reserved.
10
Hybrid cloud
Hybrid cloud – defined by the US National Institute of
Standards and Technology (NIST) as a cloud infrastructure
composed of two or more distinct cloud infrastructures that
remain unique but bound together to enable data and
application portability, is wanted by the majority of ITDMs
surveyed; 57% are looking to integrate hybrid cloud into their
cloud strategy, and almost one in five (19%) are already
implementing it (figure 15). Only a minority (24%) are not
looking to hybrid as part of their strategy.
Figure 15: “Is hybrid cloud, a combination of private and public
clouds, part of your overall cloud strategy?” Asked of cloud users
(683)
These figures confirm that hybrid cloud environments are the
preferred use of the technology.
If looking to adopt a hybrid solution, respondents expect a
greater reliance on private cloud, with an expected 57%:43%
split between private and public solutions on average (figure
16). Though a mixed methodology is in high demand, this
shows that private cloud will remain the most popular form of
the technology for the foreseeable future, and again confirms
its importance for the majority of ITDMs surveyed.
Figure 16: “In 24 months' time, what percentage of your cloud
computing resources do you see being on private clouds vs. public
clouds?” average Asked of cloud users whose organization plans to
or is integrating hybrid solutions into their cloud strategy (679)
The reason for private cloud being preferred over public cloud
is predominantly security based. Almost eight in ten (77%) IT
managers surveyed agree that security concerns would be
the reason to deploy certain applications in a private cloud
rather than a public cloud (figure 17).
Figure 17: “Why would you prefer to deploy certain
applications in a private cloud vs. public cloud?” Asked of all
respondents (750)
While security is the most common motive for using private
environments in favor of public solutions, it is not the only
reason. With an average of three reasons being cited, private
cloud clearly offers users more reason to be comfortable with
their deployment.
57%
19%
24%
Yes, we intend to integrate
hybrid solutions into our
cloud strategy
Yes, we are already
integrating hybrid cloud into
our cloud strategy
No, hybrid cloud is not part
of our cloud strategy
57%
43%
Private Public
36%
40%
46%
60%
77%
Change control
Economic uncertainty of public
cloud
Proximity to
users/performance concerns
Data compliance/regulatory
demands
Security concerns

reserved.
11
Further analysis
Sector
The surveyed ITDMs in the retail sector are making the
greatest demand on their private cloud deployments,
expecting an average of five essential components compared
to the average of four. In short, the respondents in this sector
that previously reported experiencing the greatest number of
benefits from cloud (as seen earlier) are demanding more
features from private environments.

reserved.
12
Wanted: a business focused, cloud
management portal
We have already seen the impacts of public cloud offerings
and how business owners are expecting similar transparency
from their IT department’s offerings. ITDMs have also agreed
that simplification of cloud management is a key element to
the overall success of the enterprise. Furthermore, the
majority of respondents have stated that a hybrid of private
and public cloud environments is the strategy best suited for
their enterprise in the future.
The impact of simplification
To combat the threat of cloud sprawl, many of the surveyed
ITDMs are looking to simplify their cloud environments,
predicting numerous savings to be made from taking such
action.
Figure 18: “Taking into consideration all your cloud computing
environments, are they on-average more complex than your
traditional on-premise systems?”
Asked of cloud users (683)
Based on the study, if cloud environments were simplified, it
is predicted that the time spent managing the environments
would fall by an average of 33%. Similarly, the cost of
managing cloud environments would fall by an expected
average of 32% through simplification, meaning the current
average spend of $47,172 per month would drop to around
$32,000 (figure 19).
Figure 19: Analysis of cost each month managing cloud computing
environments versus how much money could be saved having
simplified Asked of cloud users who know how much is spent on
cloud management (608)
22%
37%
41%
More complex They are of the same complexity Less complex
$47
$32
Current cost ($K) per month managing cloud computing
environments
Estimated cost ($K) per month managing cloud computing
environments following predicted fall
32%
Predicted % reduction in cost if management of cloud
computing environments were simplified

reserved.
13
The market demand for self-service portals
There is a significant market demand for a self-service portal,
with almost three quarters (73%) of respondents agreeing that
this would be a useful tool for their business (figure 20).
Those with a mixture of both public and private cloud
environments are particularly in favor of a self-service tool, as
88% agree that it would be useful. As seen earlier, those with
a mixed solution are also those who are most troubled by
cloud sprawl.
Figure 20: “If IT professionals were able to provide business decision
makers with a self-serve tool that would let them set up and manage
their own environments within a private cloud, would the organization
consider this to be a useful practice?” Asked of all respondents (750)
Despite this positivity for self-service portals, the majority
(56%) of ITDMs surveyed believe that off-the-shelf
management portals are too technical for business users.
This shows that most off-the-shelf portals are not able to
satisfy market demand; ITDMs are looking for a holistic portal
which will meet the requirements of all user types. In this
regard, what factors do ITDMs take into account when looking
to purchase one? The main concern centers on ease of use.
The majority (62%) of respondents is looking for a portal built
for all types of users, not just technically able staff (figure 21).
Figure 21: “Which of the following would you take into account
if/when looking for a cloud self-service portal?” Asked of all
respondents (750)
A similar percentage (61%) also report that they look for a
portal being built in a language that the business
understands. The fact that the majority of ITDMs surveyed
also say that a portal needs to be built around business
context and that they need to be easy to resize and configure
further highlights how complete the portal needs to be.
32%
41%
16%
6%
4%
1 – extremely useful
2
3
4
5 – not at all useful 51%
55%
61%
62%
A portal built with the ability to more
easily resize, configure and order
virtual machines in mind
A portal built around business
context to handle both private and
public clouds
A portal built in a language that
business understands
A portal built for all types of users,
not just technically-able staff, in mind

reserved.
14
Business units intending to use a self-service portal
Which departments are expected to be using these self-
service portals? Respondents anticipate rolling out a self-
service tool to four business units on average, confirming
cloud computing environments that are simple to use will be
accessed by numerous functions within the company. The
two business units most likely to want a self-service cloud tool
are development and engineering (figure 22). Note that just
under half expect cloud to be deployed in non-technical
departments – finance, supply/procurement, marketing, HR,
and sales. The research indicates that cloud solutions are not
just expected to be used amongst tech-savvy departments,
but throughout the business.
Figure 22: “For which business units within your organization do you
envision using a self-service tool?”
Asked of respondents who would find a self-serve tool useful that
would allow business decision makers to set up and manage their
own environments (717)
Further analysis
Sector
There’s a difference in the perceived impact of simplification
across sectors surveyed. For respondents in financial
services, they predict a savings of 27% in monthly cloud
management spend compared to the average of 31% after
simplification.
Conversely, those surveyed in retail predict the greatest
positive changes following a simplification of their cloud
computing environment. They predict that the time spent
managing cloud would fall by 37%, greater than the average
of 33%.
Additionally, the surveyed retail sector respondents are the
most positive about the idea of a self-service tool. Not only do
78% of respondents in this sector feel that it would be an
important tool, on average they are looking to roll out this sort
of technology to the most business units; five units compared
to the average of four.
37%
42%
43%
44%
45%
47%
53%
53%
Customer service
Sales
Human resources
Marketing
Supply chain/procurement
Finance
Engineering
Development

reserved.
15
Looking to partners to help with
private cloud strategy
As surveyed ITDMs look to deploy cloud solutions across the
business that are easy to use while not falling into the pitfall of
cloud sprawl, many are looking for a partner to help establish
a robust cloud strategy and deploy the most appropriate cloud
solution. The reason for this need for external help is due to
the complexity of cloud, with the majority (57%) of
respondents claiming to be struggling with this complexity
(figure 23).
Figure 23: “Is your organization struggling to keep up with the
complexity of ever changing cloud technology?” Asked of all
respondents (750)
Coupled with the recognition that simplification will drastically
reduce the time and money spent managing these
environments, this has led to over two-thirds (69%) openly
admitting that they are looking to partner companies to help
them establish a robust cloud strategy (figure 24).
Figure 24: “Are you looking to partner organizations to help establish
a robust cloud strategy?” Asked to all respondents (750) Also labeled
as ‘Figure C’ in ‘Summary of key findings’
A number of factors influence the choice of a partner
company. The requirement cited by most is the need for a
level of technical expertise in designing/implementing private
cloud (72%), though half or more selected each one of the
potential attributes (figure 25).
Figure 25: “Which of the following attributes do you look for in a
business partner in this regard?” Asked of all respondents (750)
These figures show that a partner has to demonstrate
numerous skills, abilities, and expertise before an ITDM will
consider them as a viable cloud partner.
57%
43%
Yes No
69%
31%
Yes No
50%
54%
61%
72%
Level of business/industry expertise
The ability to accelerate ROI
Use of robust private cloud
management tools
Level of technical expertise in
designing/implementing private
cloud infrastructure

reserved.
16
Further analysis
Sector
The retail, private healthcare, and manufacturing sector
respondents are the most likely to look to partner companies
for help, with just over eight in ten in each (82%, 83%, and
83% respectively) looking for help from an external vendor.
Financial services respondents are the least likely to look to a
partner company; 52% reporting they will do so. This shows
that those respondents who have already adopted cloud are
also more likely to look to partners for help with the
technology. Note that more than half of the respondents from
sectors least likely to be adopting cloud, are also looking for
help from outside the business.
Country
Of the ITDMs surveyed, the respondents from China are most
likely to be looking to partner companies for help with cloud,
where 92% intend to work with an external partner. These
respondents have been an early adopter of cloud and it is
interesting to see that these same respondents in China are
also most willing to look for external help. A significant
number of respondents in other markets also favor this
external partner approach, with 86% in Brazil looking to
partner companies for help with a robust cloud strategy, 84%
in the USA, 62% in Japan, 61% in France and 60% in
Australia (figure 26). This shows how the want of respondents
to team with partner companies is relevant across the
geographies.
Figure 26: “Are you looking to partner organizations to help establish
a robust cloud strategy?” ‘Yes’ by country Asked to all respondents
(750)
84%
86%
49%
50%
61%
53%
62%
92%
60%
USA
Brazil
UK
Germany
France
Sweden
Japan
China
Australia

reserved.
17
Conclusion
A robust strategy and business focused user experience
are keys to the success of private cloud
The study reveals that cloud computing environments have
been implemented to some extent in the majority of
enterprises and are seen by IT decision makers (ITDMs) as
key in helping transform businesses to be more successful.
ITDMs see a multitude of business benefits arising from the
use of public and private cloud computing environments
including improved efficiency, improved agility and reduced
costs, but most also agree there are challenges with cloud.
For all of the benefits of cloud, there is clearly an issue of
complexity resulting from cloud sprawl that is having an
adverse effect on enterprises. The fact that many employees
are bypassing the IT department and subscribing to cloud
services on their own has resulted in inefficiencies for the
integration and management with back-office business
systems and applications. Business owners may believe they
are achieving the quick and easy solution they want when
they bypass their IT department. But the reality experienced is
that issues begin to surface when this off-radar use of cloud
services must be integrated with the backend systems of the
business. Not only is this leading to inefficiencies but there is
also the concern of additional risk being introduced into the
ecosystem of the business with the use of unsanctioned cloud
services.
Seven in ten of the ITDMs surveyed believe that business
owners are looking to IT to provide an experience more akin
to that of public cloud providers. IT needs to win back their
internal business customers and help stem the tide of
employees signing up for outside services without IT’s input.
Businesses are demanding that their IT department have the
same transparency as public cloud providers and that they
also provide the same level of “ease of use” and “on demand”
services with internal private cloud environments. In essence,
they want IT to be easier to do business with.
The study reveals there is a strong continued investment
trend in private cloud technologies with 75% of respondents
intending to invest in private cloud environments in the future.
Private cloud is important to these ITDMs today and will
continue to be strategic for these enterprises for some time.
Private cloud provides many business benefits as well as a
desired environment to host certain applications where
security and compliance are concerns. In fact the research
shows that of those looking to invest in private cloud in the
future, an impressive 71% are planning in-house deployments
for at least some of their environments.
Both public and private clouds have their advantages and the
research reveals that over half have adopted, to some extent,
both within their enterprises. But, today the vast majority of
public and private cloud installations are separate
deployments. In many cases, separate stand-alone,
individually managed environments are operated, potentially
by many different groups within the company. ITDMs
understand that integrated cloud environments can provide
business benefits in many cases and are preparing to extend
and integrate their private clouds to create hybrid cloud
environments. They are looking to take advantage of hybrid
clouds and build it as part of their strategy. Why is this? One
reason may be a hybrid cloud environment permits them to
use the cloud technologies that are best suited to a given
purpose while IT still maintains control.
Even with the foreseen growth in private cloud and the trend
toward an integrated hybrid cloud future, the question still
remains: how can IT offer what their internal business
customers are looking for? When it comes to the self-service
management aspect, business owners expect a self-service
tool where ’simplicity is key’. How does IT become more like a
public cloud provider to their internal business customers?
Even if they want to, they struggle as the tools just don’t
provide what is needed for business owners. IT wants to
provide self-service, easy to use tools and sees value in it. IT
can also become an internal service provider to the business
and cross charge for IT services in the process. In the end, IT
will be perceived as easier to do business with by
empowering business owners to interact with private clouds
just as they do with public clouds.
IT can take private cloud to new heights by delivering what
the business needs. The lessons learned in the way business
users interact with public cloud can actually make IT more
responsive and effective in the private cloud world thus
resulting in added value to the business.
The net of it all is, IT cannot be an impediment to business -
IT must be more business friendly and effective with the
private cloud services they provide to their internal customers.
The issue is that most ITDMs are struggling to do this and
over two-thirds (69%) openly admit that they are looking to
partner with technology providers to help them establish a
robust cloud strategy to get it done right. They also want help
implementing the best private cloud solutions and tools for
their enterprise, customized for their unique needs and
specific business priorities. Collaborating with a skilled and
knowledgeable partner can help avoid the issues of sprawl
and the pressures of employees using unauthorized
environments. A private cloud strategy must have a focus on
the alignment between business and IT. This approach will
benefit not only the IT department and business owner but
also the business as a whole.

reserved.
18
Recommendations
Align private cloud and business strategy
Taking the business benefits of private cloud to new heights
requires a team approach between IT and business owners.
Enterprises are looking for business oriented solutions which
demands strong collaboration and understanding between
business owners and IT. The solution must be one that can
be tailored to needs of the business owners while still
providing the governance and control required by the
enterprise. In order to make private cloud more impactful for
the business:
 Learn from business owners. IT needs to involve
business owners and determine what they really
desire. Work as a team to define which specific
scenarios will most benefit the business by adopting
private cloud. A common example would be building
private cloud capability in support of application
development and test projects to gain better agility
and faster internal service capabilities.
 Offer a business service, not technology
infrastructure. Do not take a technical,
infrastructure view to private cloud. IT should be
offering a cloud service to address business
scenarios to internal business customers. Adopt a
private cloud solution that is understood by and
meaningful to the business. Cloud and virtualization
technology and capabilities are pervasive, but not
very valuable unless they can be easily understood
and leveraged to grow the business.
 Keep an eye on the future. With many different
private cloud platforms and vendors to choose from,
IT should choose one that is extensible and will grow
with the needs of the business. For example, it will
be important to maintain a consistent and familiar
self-service capability for business owners
regardless of whether resources are being requested
and deployed in private, public or hybrid cloud
environments.
 Look for a partner. A skilled and experienced
partner can help empower the business with the right
cloud strategy, solutions and tools to enable
enterprises to take full advantage of cloud and gain
maximum business value. Choose a partner who not
only has deep technical expertise in cloud but one
that also has the business and industry
understanding, tools and methodologies to ensure
long term success.
To learn how Avanade’s experts can deliver a private
cloud solution to help empower your enterprise to rapidly
respond to the ever changing demands of business while
reducing costs and optimizing operations visit our private
solution site or contact us.

Private cloud
About Avanade
Avanade provides business technology solutions
and managed services that connect insight,
innovation and expertise in Microsoft®
technologies to help customers realize results.
Our people have helped thousands of
organizations in all industries improve business
agility, employee productivity and customer
loyalty. Additional information can be found at
www.avanade.com.
©2013 Avanade Inc. All rights reserved. The
Avanade name and logo are registered
trademarks in the US and other countries.
North America
Seattle
Phone +1 206 239 5600
America@avanade.com
South America
Sao Paulo
Phone +55 (11) 5188 3000
latinamerica@avanade.com
Africa
Pretoria
Phone +27 12 622 4400
SouthAfrica@avanade.com
Asia- Paciﬁc
Singapore
Phone +65 6592 2133
AsiaPac@avanade.com
Europe
London
Phone +44 0 20 7025
1000
Europe@avanade.com
About Vanson Bourne:
Vanson Bourne is an independent specialist in market research for
the technology sector. Our reputation for robust and credible
research-based analysis, is founded upon rigorous research
principles and our ability to seek the opinions of senior decision
makers across technical and business functions, in all business
sectors and all major markets. For more information, please visit
www.vansonbourne.com

private-cloud-white-paper

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (14)

En vedette

En vedette (12)

Similaire à private-cloud-white-paper

Similaire à private-cloud-white-paper (20)

private-cloud-white-paper