2011 North Bridge Future of Cloud Computing Study|Results of industry-wide survey conducted in partnership with Gigaom, 451 Research + 30 collaborators.
www.NorthBridge.com
How do Customers Characterize their Approach to
Using Cloud Computing Today?
12
Experimenting
Waiting to mature
Complete confidence for
mission critical applications
Using for usage spikes
Will never use, too risky10%
26%
40%
11%
13%
www.NorthBridge.com
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13
How would you characterize your approach
to utilizing cloud infrastructure today for
mission critical business applications and
processes?
“toorisky”Never, cloud too risky……….
Waiting for cloud to mature…“waiting”
Experimenting…..……………“experiment”
For usage spikes…………….“spikes”
Complete confidence………..“complete”
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What are the most important drivers
to adopting Cloud Computing?
“cost”Cost………………….
Agility……………….. “agility”
Mobility…..…………. “gomobile”
CapEx to OpEx….… “capex”
Scalability…………...“scale”
Pace of Innovation…“pace”
15
www.NorthBridge.com
Agility Scalability Cost Efficiency Innovation Capex to
Opex
Competitive Mobility Other Customer
Demand
Cloud APIs
Drivers For Cloud Adoption
16
47%
263%100%
113%
64%
Now vs. 5 years
www.NorthBridge.com
Inhibitors to Adoption… What is Top-of-Mind?
18
2%
3%
6%
10%
11%
11%
12%
12%
13%
20% Security
Compliance
Vendor Lock-in
Interoperability
Reliability
Complexity
Privacy
Pricing
Expense
Other
www.NorthBridge.com
What is the Strategy of Cloud Customers Today?
19
Hybrid
39%
Public
37%
Private
24%
… in the Future?
21%
12%
27%
42%
www.NorthBridge.com
What is the Impact of Cloud Computing on Hiring?
23
No Impact
42%
Increased
10%
Expected
increase
22%
Decreased
17%
Expected
decrease
9%
26%
Decrease
32%
Increased
42%
None
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LIVE Vote!
Txt Your Vote to 22333
36
In 5 years, what percentage of your
computing will be in the Cloud?
“25perc”0-25%…………….…
26-50%…………….. “50perc”
51-75%…..……..….. “75perc”
76-100%….…………“100perc”
“nothing”None..…………….…
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What % of Your Computing is in the Cloud Today?
37
None
25%
50%
100%
23%
34%
26%
14%
3%
17%
22%
14%
38%
10%
75%
today
+5 yrs
…in +5 Years?
75% predict
2/3rds of computing
will be in the Cloud!
www.NorthBridge.com 38
You asked for it – we covered it…
Cloud usage… today
Drivers
Inhibitors … for the future
Full details of the
survey, plus thought
leadership…
http://www.northbridge.com/cloud-computing
@futureofcloud
www.NorthBridge.com
Cloud Storm is Brewing!
39
• Private and Public Clouds are gathering
• Hybrid, Interoperability are going to cause a storm
• Security, Compliance & Vendor lock-in are going to rain on
the parade
• As Mobility surges
• Lightning may strike twice – Agility, Innovation – for
Competitive Advantage
• Impact on IT manageability, Staffing is still unclear, but
TCO should be reduced
www.NorthBridge.com
A big thank you from North Bridge to…
40
Dries Buytaert
CTO & Founder President
Lew MoormanJohn Dillon
CEO
Marten Mickos
CEO
Notes de l'éditeur
Industry
Survey background
How Customers are using cloud
How Vendors are responding
Futures
Mention that the members of the panel are primarily in the PaaS and IaaS layers of the cloud
SaaS-Essentially a hosted application accessed through a Web browser. SaaS is the ongoing support of applications whose core value to the customer pertains to alleviating the maintenance and daily technical operation and support of business and consumer software. This definition does not include hosted application management, which differs from SaaS in that hosted AM is designed for the management of traditionally licensed, packaged applications and SaaS is a newer model of Web-delivered software offered with a subscription instead of traditional license.
IaaS-Virtual or physical hardware resources (e.g. compute, storage, network) offered as a service with heavy reliance on server virtualization. IaaS is a shared IT infrastructure (compute and storage) architecture provided through on-demand services. IaaS vendors provide raw physical capacity for cloud computing with services that may include any combination of hosting and storage.
PaaS-An in-cloud platform for the development and deployment of cloud application software that is analogous to an on-premises application server with added multi-tenant elasticity and other cloud-enabling features. PaaS offerings are designed to support the entire application development lifecycle, and we include various elements in our platform management segmentation (development, testing, deployment, runtime, hosting and delivery). PaaS includes vendors that provide the entire stack of PaaS functionality and those that partner with third parties (i.e. hoster) for the infrastructure component.
SaaS-Essentially a hosted application accessed through a Web browser. SaaS is the ongoing support of applications whose core value to the customer pertains to alleviating the maintenance and daily technical operation and support of business and consumer software. This definition does not include hosted application management, which differs from SaaS in that hosted AM is designed for the management of traditionally licensed, packaged applications and SaaS is a newer model of Web-delivered software offered with a subscription instead of traditional license.
IaaS-Virtual or physical hardware resources (e.g. compute, storage, network) offered as a service with heavy reliance on server virtualization. IaaS is a shared IT infrastructure (compute and storage) architecture provided through on-demand services. IaaS vendors provide raw physical capacity for cloud computing with services that may include any combination of hosting and storage.
PaaS-An in-cloud platform for the development and deployment of cloud application software that is analogous to an on-premises application server with added multi-tenant elasticity and other cloud-enabling features. PaaS offerings are designed to support the entire application development lifecycle, and we include various elements in our platform management segmentation (development, testing, deployment, runtime, hosting and delivery). PaaS includes vendors that provide the entire stack of PaaS functionality and those that partner with third parties (i.e. hoster) for the infrastructure component.
Which best describes your primary role with regard to Cloud Computing? (user vs. vendor)
24. Which survey questions would you like to see highlighted at the North Bridge Future of Cloud Computing Leadership Panel on June 22nd at Structure 2011?
1. Cloud Technologies in Use Today
2. Drivers for Cloud Computing
3. Inhibitors to Cloud Computing
Sectors that will be disrupted
Manageability of Applications
Personnel Needs
Future Cloud Services
10. How would you characterize your approach to utilizing cloud infrastructure today for mission critical business applications and processes?
Never - too risky
Not yet - technology needs to mature
For some, I am willing to experiment
I am interested in usage spikes (e.g. Cloud Bursting)
I have been utilizing the Cloud for ___months/years.
I have complete confidence in utilizing cloud computing for any mission critical business application or process
What types of Mission Critical applications are you using in the cloud?
MJS: Anything from 451 to validate? Continue to see other responses grow as we watch it…
Tie expectations of “cost savings” with experimenting? High expectations of cost savings for cloud; as with time and efficiencies. Growing willingness to use for apps & services. (How early are we- 15% into mainstream)
Consider moving this slide up in the deck! Followed by inhibitors….
Current Drivers (in blue)
Martin indicated that agility is #1 for his customers, Lew agreed.
Examples from Lew: Oprah
Examples from Martin: Short message service
Future Drivers (in orange)
Innovation: Lew interprets "Innovation" as an enterprise's inability to keep up internally with all the innovation that is occurring externally. Move to the cloud to keep up (which is also about agility). Example of neighbor who works at USAA using Rackspace cloud server to bring up a Facebook app quickly.
Mobility: Martin points out that mobile is much more than a mobile phone. It is medical devices, vehicles, factories, etc. whose devices are mobile and contributing data to the cloud
NOTES from ComputerWorld article :
In the survey, 20% of those responding said they had actually gone around their IT department to provision cloud services.
Of that subset, 61% said it was easier to provision the services themselves, and 50% said it takes too long to go through IT. And while 60% reported that they have corporate policies in place that prohibit such actions, those policies aren't real deterrents.
13. What are the most important drivers for the adoption of Cloud Computing software/hardware/services today? Please select up to 3:
Cost
Agility
Mobility
Capex to Opex
Scalability
Pace of Innovation/New Product Development
Time & Efficiency
Competitive Advantage
Customer Demand
Cloud API’s
Open Source Projects
Other
14. What drivers are likely to emerge as most critical over the next 5 years? Please select up to 3
Cost
Agility
Mobility
Capex to Opex
Scalability
Pace of Innovation/New Product Development
Time & Efficiency
Competitive Advantage
Customer Demand
Cloud API’s
Other
451 – Vendor lock-in was “fading” but has been revived with Cloud Computing. No one wants to be stuck on the wrong path.
Innovation increases as time goes on; cloud API’s – shows a bit of a wisdom in the market that this comes down to the API’s
Ask panel for examples:
Butterball turkey
Al Jazers
Current Drivers (in blue)
Martin indicated that agility is #1 for his customers, Lew agreed.
Examples from Lew: Oprah
Examples from Martin: Short message service
Future Drivers (in orange)
Innovation: Lew interprets "Innovation" as an enterprise's inability to keep up internally with all the innovation that is occurring externally. Move to the cloud to keep up (which is also about agility). Example of neighbor who works at USAA using Rackspace cloud server to bring up a Facebook app quickly.
Mobility: Martin points out that mobile is much more than a mobile phone. It is medical devices, vehicles, factories, etc. whose devices are mobile and contributing data to the cloud
NOTES from ComputerWorld article :
In the survey, 20% of those responding said they had actually gone around their IT department to provision cloud services.
Of that subset, 61% said it was easier to provision the services themselves, and 50% said it takes too long to go through IT. And while 60% reported that they have corporate policies in place that prohibit such actions, those policies aren't real deterrents.
13. What are the most important drivers for the adoption of Cloud Computing software/hardware/services today? Please select up to 3:
Cost
Agility
Mobility
Capex to Opex
Scalability
Pace of Innovation/New Product Development
Time & Efficiency
Competitive Advantage
Customer Demand
Cloud API’s
Open Source Projects
Other
14. What drivers are likely to emerge as most critical over the next 5 years? Please select up to 3
Cost
Agility
Mobility
Capex to Opex
Scalability
Pace of Innovation/New Product Development
Time & Efficiency
Competitive Advantage
Customer Demand
Cloud API’s
Other
451 – Vendor lock-in was “fading” but has been revived with Cloud Computing. No one wants to be stuck on the wrong path.
Innovation increases as time goes on; cloud API’s – shows a bit of a wisdom in the market that this comes down to the API’s
Ask panel for examples:
Butterball turkey
Al Jazers
- Martin: cloud is security-neutral, neither more nor less secure
- Martin: Interoperability and Vendor Lock-in are spot-on
Lew: surprised "flexibility" is not listed as an inhibitor. Less ability to customize an application on the cloud.
15. What are the most important inhibitors to the adoption of Cloud Computing software/hardware/services?
Interoperability
Lock-in
Complexity
Pricing (network bandwidth)
Privacy
Reliability
Security
Expense
Regulatory/Compliance
Other
451 Surprised to see compliance come up strong inhibitors; this is a legitimate hurdle
Rest speak to open-ness, interoperability – demand for and delivery of open, interoperable cloud computing platforms
Good question for Martin
Some apps will never move to the cloud. Ex. EU, apps that are turned down for compliance issues
One that’s missing is “politics” and change… (from Dries)
NOTE: These numbers represent how people voted.
- graphic needs a little explanation, e.g. "42% of Public will go to Hybrid (private cloud)"
- Michael/Martin/Lew don't think it will turn out the way these numbers indicate (so many going to Hybrid)
- Martin: point that the % is of people voting, not $'s spent
FUTURE:: 60.5% would be hybrid
6. If you're an enterprise/cloud consumer, what is the emphasis of your cloud strategy?
Public cloud
Private cloud
Hybrid cloud
7. If you’re an enterprise/cloud consumer, how do you expect your cloud usage to change in the future:
Private to public
Public to private
Private to hybrid
Public to hybrid
Jay: This also coincides with Open source results –
Even though there is a heavy reliance on OS software – don’t always see a contribution back – e.g. Mobile computing uses OS, but end result is “proprietary” and not “open” at all
Rackspace “Open Stack” is one example of “giving back”
Connections between public cloud and IAAS and private cloud and Platform-as-a-service
IAAS – is far along, growing fast and gaining vendors; PAAS is earlier on - more announcements, but less $$
Slides 20/21/22 (TCO/Impact on IT Manageability/Impact on Hiring)
Determined it is best to go through these slides as a group as they are related
Explanation for why IT hiring/costs would go up:
Lew:
something that is cheaper you use more of
something you use more of needs management
company will run on 500 apps instead of 5 - explosion of IT is the result
Martin:
computing is constantly increasing (BI, etc.)
IT is growing because requirements on business unit is increasing
Michael:
low TCO is how companies will justify going to cloud
while experimenting (slide 21) may actually increase
16.What is your perception today of cloud computing from a total cost of ownership perspective (this would factor in all costs - direct and indirect - such as management, services, support, switching costs, etc.)? Total cost to my company is still
Higher (than utilizing traditional hosting and infrastructure)
About the same (than utilizing traditional hosting and infrastructure)
Lower (than utilizing traditional hosting and infrastructure)
Slides 20/21/22 (TCO/Impact on IT Manageability/Impact on Hiring)
Determined it is best to go through these slides as a group as they are related
Explanation for why IT hiring/costs would go up:
Lew:
something that is cheaper you use more of
something you use more of needs management
company will run on 500 apps instead of 5 - explosion of IT is the result
Martin:
computing is constantly increasing (BI, etc.)
IT is growing because requirements on business unit is increasing
Michael:
low TCO is how companies will justify going to cloud
while experimenting (slide 21) may actually increase
16.What is your perception today of cloud computing from a total cost of ownership perspective (this would factor in all costs - direct and indirect - such as management, services, support, switching costs, etc.)? Total cost to my company is still
Higher (than utilizing traditional hosting and infrastructure)
About the same (than utilizing traditional hosting and infrastructure)
Lower (than utilizing traditional hosting and infrastructure)
17. How is the growing use of Cloud Computing components impacting the manageability of IT?
More complex
Less complex
Neither, no impact on application complexity
451: Another indicator that we are early on; limited investigation on Cloud computing; how to pitch to CIO?
Also reflection of the wide spectrum of users from large enterprises (e.g. insurance, leading edge verticals) – for them, cloud is less complex; a smaller division might have less resources and how much they can invest in investigating
20. How has/will your IT hiring will being impacted by your company’s cloud computing efforts?
I’ve seen no impact on my IT hiring even as we’ve implemented some cloud computing technologies
I’ve reduced headcount as a result of our cloud computing effortsI’ve had to increase headcount due to our company’s cloud computing efforts
I expect to increase headcount in the next 1-3 years
I expect to decrease headcount in the next 1-3 years
451: Expectation of automation (efficiencies we get in virtualization ) – but lesson is “don’t get rid of IT guy”
Lesson is keep IT staff and have different duties. Talk about automating apps for the developer. People are smarter and you need them to oversee. (VMWare’s & rPath)- need to manage this across more complex virtualization structure.
Dries has story about reducing costs in a “major music” company
21. Which are the top three up and coming Cloud Computing companies? (please type their names below)
amazon 26 google 17 rackspace 12 vmware 10 microsoft 10 cloudera 7 eucalyptus 6 acquia 6 nasuni 5 assistly 5
21. Which are the top three up and coming Cloud Computing companies? (please type their names below)
amazon 26 google 17 rackspace 12 vmware 10 microsoft 10 cloudera 7 eucalyptus 6 acquia 6 nasuni 5 assistly 5
2011 - $402M, 45 deals as of June
Is this a bubble and will the clouds burst?
8. What types of cloud computing technologies is your organization using today?
IaaS – “compute”
amazon 31 google 20 gmail 16 salesforce.com 13 rackspace 9 azure 4 dropbox 3 vmware 3 eucalyptus 3
PaaS
google 15 dropbox 10 gmail 7 amazon 4 salesforce.com 2 rackspace 2
SaaS “software” (e.g. Gmail, Salesforce.com, Basecamp, etc.)
googledocs 3 dropbox 3 amazon 2 moxy 1
OTHERS that WERE NOT LISTED
SAP ByDesign
Intuit
Adobe
Oracle
McAfee
Symantec
8. What types of cloud computing technologies is your organization using today?
IaaS – “compute”
amazon 31 google 20 gmail 16 salesforce.com 13 rackspace 9 azure 4 dropbox 3 vmware 3 eucalyptus 3
PaaS
google 15 dropbox 10 gmail 7 amazon 4 salesforce.com 2 rackspace 2
SaaS “software” (e.g. Gmail, Salesforce.com, Basecamp, etc.)
googledocs 3 dropbox 3 amazon 2 moxy 1
OTHERS that WERE NOT LISTED
SAP ByDesign
Intuit
Adobe
Oracle
McAfee
Symantec
2. If your organization develops and/or sells Cloud based services (infrastructure, platform and/or software), does your organization:
Own the facilities, network and servers on which your service runs
Own your servers, but host them at a public co-location facility
Host your services on a public infrastructure cloud (such as AWS)
None of the above
MJS: Market is at an early stage, followed by hybrid…not so much co-lo
Jay: typically separate out Amazon vs. internal – hybrid is in the middle; action & $$ in the public cloud; moving from public or private to hybrid – interoperability that is demanded and delivered; multiple hypervisors, language and frameworks; interoperability between vendors – MS & Red Hat – forced to work together
Hybrid is all about interoperability – move applications and workflows among the clouds (see this later in drivers); vendor lock in- feeds into this
Organizations have figured out the best apps & workflows that are suited to the cloud; there is IT envy and desire to replicate internally (inhibitor of regulatory & compliance & security) – organizations having to deal with integrity
Can’t emphasize how early on we really are for private cloud – public is rolling out and gaining use
See “production” use from the results 25% say “production” vs. testing and research & dev
Hybrid is stepping stone to private cloud…
Experimenting & learning in public cloud
3.If your organization develops and/or sells Cloud based services (infrastructure, platform and/or software), do they employ cloud resources such as database, search, storage, etc.? If yes, please select multiple below or add to this list.
Database
Search
Storage
App Server
Other – please note below
WEB ONLY SLIDE
4. If you develop and/or sell Cloud Computing software/hardware, do your revenues primarily come from (select up to 2):
SaaS Subscription Fees
Hosting Fees
Appliance sales/leasing
Custom software/hardware for individual clients Services (other than custom software/hardware development)
Consulting
Services (other than custom software/hardware development)
Support
Training
Other (please specify) [this was an open ended question. Answers below]
Software
not applicable
Application managment
security
Analytics
Uptime Assurance for infrastructure
Mangement Software to build and manage Clouds
Enterprise + OEM Server licensing
paas per hour fees
5. If you’re a cloud vendor, what Cloud services do you feel you need to provide in the future to meet users needs? (Open ended question – look for trends)
e.g. Analytics, Automation Tools, Backup & Archiving, Business Continuity & DR, Compute, Content Mgt,Devt & Test Environments, File Sharing, Monitoring Tools, Multimedia,Select Industry Apps (e.g. CRM, ERP, eCommerce, etc.), Storage
12. If you’re a user, what services do you NOT have that you would like to have from your cloud services provider?
MS –3 things to point out… Analytics, management/monitoring, backup/archiving… ( + automation)
MS – there are a lot of services still to be delivered to meet users needs
Q for panelists… “What kind of analytics are customers asking for?”
18. Which sector of the software/hardware industry is MOST susceptible to disruption by Cloud Computing software/hardware within the next five years (select up to 3)
Application Development Tools
Business Intelligence
Connectivity Applications (e.g., Networking, IP Telephony/VoIP)
Database
Desktop virtualization
eCommerce
ERP/CRM
Human Resources
Mobile applications
Office Productivity
Operating Systems
Security tools
Server Virtualization
Systems Management Tools
WCM/CMS/Social Software/hardware
Other, please specify
19. Which sector of the software/hardware industry is LEAST susceptible to disruption by Cloud Computing software/hardware within the next five years (select up to 3)
Application Development Tools
Business Intelligence
Connectivity Applications (e.g., Networking, IP Telephony/VoIP)
Mobile
Database
Desktop virtualization
ERP/CRM
Human Resources
Office Productivity
Operating Systems
Security tools
Systems Management Tools
Virtualization
WCM/CMS/Social Software/hardware
Other, please specify
451: Expectation of automation (efficiencies we get in virtualization ) – but lesson is “don’t get rid of IT guy”
18. Which sector of the software/hardware industry is MOST susceptible to disruption by Cloud Computing software/hardware within the next five years (select up to 3)
Application Development Tools
Business Intelligence
Connectivity Applications (e.g., Networking, IP Telephony/VoIP)
Database
Desktop virtualization
eCommerce
ERP/CRM
Human Resources
Mobile applications
Office Productivity
Operating Systems
Security tools
Server Virtualization
Systems Management Tools
WCM/CMS/Social Software/hardware
Other, please specify
19. Which sector of the software/hardware industry is LEAST susceptible to disruption by Cloud Computing software/hardware within the next five years (select up to 3)
Application Development Tools
Business Intelligence
Connectivity Applications (e.g., Networking, IP Telephony/VoIP)
Mobile
Database
Desktop virtualization
ERP/CRM
Human Resources
Office Productivity
Operating Systems
Security tools
Systems Management Tools
Virtualization
WCM/CMS/Social Software/hardware
Other, please specify
451: Expectation of automation (efficiencies we get in virtualization ) – but lesson is “don’t get rid of IT guy”
451 Group Notes: Cloud including SaaS: This forecast includes all components of our more broadly defined cloud marketplace, which includes SaaS. We believe the revenue generated by vendors fitting this more inclusive cloud definition will total $8.7B in 2010 and will grow at a CAGR of 24% to reach %15.7B in 2013.
22. Can you estimate what percentage of your computing is internally hosted, co-located, or in the cloud? (This question would be good to have 3 columns - one for each, with rows of percentages)0%1-10%11-25%26-50%51-75%76-100%
23. Looking ahead 5 years, what percentage of your computing will be internally hosted, co-located, or in the cloud? (same as above)
0%1-10%11-25%26-50%51-75%76-100%
24. Which survey questions would you like to see highlighted at the North Bridge Future of Cloud Computing Leadership Panel on June 22nd at Structure 2011?
1. Cloud Technologies in Use Today
2. Drivers for Cloud Computing
3. Inhibitors to Cloud Computing
Sectors that will be disrupted
Manageability of Applications
Personnel Needs
Future Cloud Services
The Clouds private and public are gathering – a lot is at stake
Hybrid is predicted but interoperability will create a Storm
Agility is the new usage catalyst, while scalability and cost remain key
Driven by need for Innovation for competitive advantage
Security, compliance & vendor lock-in are top concerns
Impact on IT manageability, staffing is still unclear, but TCO should be reduced
Mobility will be the lightning strike