SlideShare a Scribd company logo
1 of 30
Download to read offline
Three of Four Purchasers Agree:
Insight from TBR’s Public Cloud Adoption Study

TBR Webinar Series
Winter 2012



Original Webinar Date: Feb. 15, 2012
Presenter: 
Stuart Williams, Software Practice 
Director (stuart.williams@tbri.com)               TBR
                                       T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
TBR
Today’s Presenter


                                Stuart Williams
                                Director, Software Practice 
                                Technology Business Research, Inc. (TBR)

                                Email: stuart.williams@tbri.com
                                Twitter: @s2_williams




2   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
TBR
Three of four IT buyers want public cloud services ...
Are you ready to sell them what they want?



            74%
                                                     Adoption remains on the upswing.
                                                     • Market opportunity is growing

    of businesses either use or plan                 • Buyers are considering multiple vendors
    to purchase a public cloud                       • Dominant vendors have not emerged
    service within 12 months.




            65%                                      Applications lead adoption.
                                                     • Buyers are looking for solutions
    of non‐adopters plan to 
                                                     • Software and Infrastructure as a Service lead
    purchase a SaaS application 
    within 12 months.                                • Vendors must get past security issues




    SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496

3      Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                        TBR
To capitalize on the vast public cloud opportunity, vendors must 
first understand the drivers of adoption 


                                Nearly three in four businesses are either using 
                                or planning to purchase public cloud 


                                Drivers and Barriers are varied – but cost 
                                reduction and security remain on top

                                 Customers want to shift more sophisticated 
                                 workloads to the cloud



 4   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                          TBR
Cloud adoption is near 40% – with equal public and private cloud 
adoption – and 54% intend to add public cloud
Overall Cloud Adoption Rates

                                FIGURE 1.0


                                                                                                 Overall 
      N = 1,496 
     IT Decision                                                                                  Cloud 
     makers and                                                                                 adoption 
       Line of                                                                                 rate = 39%
      Business 
      Managers                                                                                   Public 
        in U.S.                                                                                   Cloud 
                                                                                                adoption 
                                                                                               rate = 20%



                 Of the 1,496 respondents who participated in the study, 39% have adopted cloud 
                 computing.
                 54% of respondents intend to add public cloud services within 12 months.
     SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496
 5     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                       TBR
Not only is overall adoption increasing, but cross‐cloud adoption is 
increasing for applications, platforms and infrastructure
Adoption Rates for Public Cloud
                   Public Cloud Adoption                 Public Cloud Segments             Additional Adoption of Private Cloud

     FIGURE 1.1
                          Adopted 
                         Public Cloud                           SaaS                   FIGURE 1.2

                            20%                                 69%
                             Not 
                         Considering 
                         Public Cloud
                                                                 IaaS
                            26%                                  53%
                         Considering 
                         Public Cloud


                             54%
                                                                PaaS
                                                                50%                           N=302 for public cloud adopters


                           N=1,496                   N=302 for public cloud adopters

                  20% of respondents have adopted public cloud and 54% are considering 
                  adoption of public cloud.
      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
 6       Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study         ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                                                                          TBR
The overall Public Cloud revenue opportunity is growing in line 
with adoption …
 TBR                                                                                         Estimated  Public  Cloud Revenue
                                                                                Aggregated TBR Public Cloud Landscape  Revenue and Growth
                                                    $45
                                                                                                                                                                    $43.00           Total 
 Estimated Public  Cloud Revenue (in $ Billions)




                                                                                                                                                                                     Public 
                                                    $40       TBR’s 3Q11 Public Cloud Market Landscape                                                                               Cloud 
                                                    $35
                                                              includes a top‐down cloud market estimate and                                               $33.00                     Market
                                                              a bottom‐up tracker of over 35 vendors.
                                                    $30
                                                                                                                                               $23.00
                                                    $25

                                                    $20                                                                                                                     $18.10
                                                                      42% year‐to‐year quarterly growth                                                                              Public 
                                                    $15                                                                                                      $12.86                  Cloud 
                                                                                                                             $9.24    $10.31     $9.88                               Market 
                                                    $10                                            $7.92        $8.58
                                                                            $6.44        $7.26                                                                                       Revenue 
                                                              $5.98                                                                                                                  in TBR’s 
                                                     $5                                  $3.07     $3.17        $3.19        $3.81    $4.14
                                                              $2.41         $2.68                                                                                                    covered 
                                                                                                                                                                                     vendors
                                                     $‐
                                                               3Q10         4Q10         1Q11       2Q11         3Q11      Fst 4Q11 Est 1Q12      2010      Est. 2011 Est. 2012
                                                                           Calendar Quarter                  Calendar Quarter                        Calendar Year
                                                               TBR Public Cloud Market Covered in the Cloud Market Landscape Report      TBR Public Cloud Market Estimate


                                                   SOURCE: COMPANY DATA; TBR ESTIMATES

 7                                                  Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study              ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                      TBR
… however, monetization is greater for SaaS than PaaS and IaaS


                                                                                                        TBR estimates a revenue spike across 
                                                                                                        segments in 4Q11 due to seasonality.
                                                    Although SaaS accounts for the majority of TBR’s 
                             SaaS YtY Growth: 38%   public cloud market revenue, PaaS and IaaS are 
                             PaaS YtY Growth: 43%   experiencing rapid growth, and once 
                             IaaS YtY Growth: 50%   implemented, are more sticky than SaaS and 
                                                    closer to customers’ core business processes.




                                                                                                                  70%




                                                                                                                  8%

                                                                                                                  22%


                                                                                                                % CML
                                                                                                                Revenue


     SOURCE: COMPANY DATA; TBR ESTIMATES


 8         Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study        ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                 TBR
SaaS has the highest adoption rate, spurred by complete business 
suites, project management, desktop and messaging
Public Software as a Service
                               Key Findings                                    What you need to know

                                                                       SaaS will continue to gain momentum across all 
                                                                               •
        Adoption               SaaS saw the highest adoption rate      market segments from SMBs to enterprises.
         Rates &               among public cloud adopters, at 69%,  • SaaS offerings continue to scale and vendors 
         Drivers               with cost savings the major driver.     continue to build offerings by considering buyer 
                                                                       infrastructure limitations and integration needs.


                                                                               Microsoft is winning with public cloud 
         Vendor                Google and Microsoft are clear                  deployments of its widely used Office suite. 
        Selection              leaders in the SaaS‐based desktop               Google Apps is in direct competition with 
                               and messaging markets.                          Microsoft Office 365, and is positioning itself as a 
                                                                               more cost‐effective complete business suite.


                               Both public cloud purchasers and                SaaS spending will continue to grow across 
                               non‐purchasers are considering                  multiple business applications; however, 
           Key                 purchasing SaaS‐based project                   complete business suites, project management, 
        Offerings              management, desktop and messaging               desktop solutions and messaging drive will 
                               solutions in the near future.                   continue to drive adoption in the SaaS market. 

     SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N =302 FOR PUBLIC CLOUD ADOPTERS, N FOR SaaS ADOPTERS = 209
 9     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study          ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                 TBR
Though there are few established leaders and mature offerings, 
rapid growth will transform the PaaS market
Public Platform as a Service
                                Key Findings                                   What you need to know

                                50% of cloud adopters surveyed have  • PaaS is increasingly important as customers 
         Adoption               adopted PaaS offerings, with cost and    migrate application development to the cloud.
                                increased functionality the key 
          Rates &                                                      • The market will see increased adoption as 
                                drivers to purchase from both 
          Drivers               traditional and pure‐play cloud          customers customize and develop new 
                                vendors.                                 applications.

                                                                       • Emerging solutions will have the opportunity to 
                                Besides IBM leading the market share 
                                                                         gain significant share in the rapidly growing 
                                of testing for development, there are 
          Vendor                                                         space.
                                no clear winners, indicating its 
         Selection                                                     • Increased adoption of SaaS solutions is leading 
                                nascent state and the opportunity for 
                                                                         to integration issues, and will create a portfolio 
                                vendor penetration and growth.
                                                                         of opportunities for PaaS vendors.

                                Though Storage for development has             • The PaaS market is still evolving.
                                higher adoption rates, all PaaS                • All PaaS segments will experience fast‐paced 
            Key                 offerings will see relatively equal              growth in coming quarters as customers 
         Offerings              traction in the market in the next six           develop custom applications for internal use 
                                months.                                          and as product add‐ons.


      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR PaaS ADOPTERS=152
 10     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study         ©2012 Technology Business Research Inc.
Part One: Adoption of Public Cloud Services                                                                                  TBR
Demand for storage due to increased data volume drives IaaS
Public Infrastructure as a Service
                                Key Findings                                    What you need to know

                                • Based on the survey results, 53% of
                                                                                • As customers gain trust in public cloud 
         Adoption                 cloud adopters have purchased IaaS 
                                                                                  solutions, IaaS adoption is increasing and 
          Rates &                 offerings.
                                                                                  becoming a core part of the IT system. 
          Drivers               • Drivers include cost savings, 
                                                                                • However, basic storage and computing IaaS will 
                                  scalability and increased data 
                                                                                  quickly become a commodity.
                                  volume.
                                • No clear winner emerged – a mix of 
                                  traditional and pure‐play vendors 
                                                                       • Security – from the hardware level to the 
                                  such as Amazon, Rackspace, IBM 
          Vendor                                                         application to user control and compliance –
                                  and HP.
                                                                         remains a fundamental barrier to adoption.
         Selection              • Vendors offering public and private 
                                                                       • Vendors that can certify their cloud offerings –
                                  cloud have better opportunity 
                                                                         and ecosystem – will have an advantage.
                                  based on the overall cloud adoption 
                                  trend.
                                • More than 65% of customers                    • Storage offerings will continue to drive the sales 
                                  reported purchasing storage                     of IaaS offerings among both cloud adopters 
            Key                   solutions.                                      and non‐adopters.
         Offerings              • Nearly 50% of non‐adopters plan to            • Vendors can also expect cloud‐based systems 
                                  purchase storage in the next six                management to see increased growth from 
                                  months.                                         cloud adopters. 
      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR IaaS ADOPTERS =161
 11     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study          ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                             TBR
Making the jump to public cloud services is a leap of faith for many




                                 Nearly three in four businesses are either using 
                                 or planning to purchase public cloud 


                                 Drivers and Barriers are varied – but cost 
                                 reduction and security remain on top

                                  Customers want to shift more sophisticated 
                                  workloads to the cloud



 12   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                                    TBR
Customers want to leverage cloud to extend scalability, improve 
performance, and reduce costs
Leading Purchase Influencers and Drivers

      Customers face… Customers seek to…                    Why cloud?                                            Evaluation 
                                                                                                                criteria driving 
                                                            Offloading low‐risk, high‐                         purchases from 
                              Improve their 
      Data growth is                                        demand workloads to the                            cloud providers:
                              spend‐to‐
      driving up costs                                      cloud reduces management 
                              performance ratio
                                                            burden and related costs.                      •   Cloud Provider:
                                                            Buyers want to give their end‐                      o Expertise
      Rising demands                                        users the best possible speed                       o Pricing
                              Improve speed and 
      on traditional IT                                     and improved IT performance,                        o Support
                              performance
      infrastructure                                        and consider cloud the means                   •   Cloud 
                                                            to do so.                                          Infrastructure:
                                                                                                                o Data Security
                                                            Cloud deployments let 
      New business                                          customers keep costs                                o Network 
      demands require  Improve scalability                  relatively low while still                            Availability
      IT to be agile                                        accessing innovative, new                           o Compliance
                                                            technology offerings.


SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS

 13      Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study       ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                                 TBR
Cloud vendors that overcome security concerns and prove the ROI 
for shifting specific workloads will win customers
Purchase Barriers and Drivers

                Barriers to Adoption                                     Drivers to Greenlighting Cloud Purchases




   Data security and data confidentiality concerns are                    Cost savings, improved data security from cloud‐
   top barriers to adoption of public cloud computing                     based security services, keeping pace with 
   services.                                                              technology advancements and scalability are the 
     • Customers reported data privacy concerns as                        key drivers of cloud adoption.
       the biggest business risk in adopting cloud                          • More than 50% of respondents indicated cost 
       computing services, as they want to retain                             savings as the primary driver for purchasing 
       physical control of critical data.                                     public cloud computing services.
     • Data security was cited as the biggest IT concern                    • Respondents also valued other key mentions 
       in adoption of cloud services.                                         such as scalability to add capacity, adoption of 
     • Other adoption barriers include legacy                                 advanced technology standards and the need 
       infrastructure, complexity of integration of                           for improved data security as reasons to buy.
       cloud offerings with existing applications and 
       infrastructure, and unclear ROI benefits from 
       cloud investments.
      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR ADOPTERS
 14     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study     ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                                     TBR
SaaS offerings are the durable driver of cloud computing adoption, 
and will continue to be for the near future
Key Findings and Conclusions

                          Key Findings                        What you need to know
      Key Driver                                              • Unlike the earlier days of adoption, 
                          • SaaS offerings are continuing to 
      for growth 
                            grow across multiple business       SaaS offerings have gained traction 
       in cloud                                                 across SMBs as well as large 
      computing             applications.
                                                                enterprises. 
                          • 69% of cloud adopters surveyed 
                                                              • Increased demand for complete 
                            have deployed SaaS solutions.
                                                                business suites, desktop 
                          • 65% of non‐cloud adopters plan 
                                                                productivity and project 
                            to purchase SaaS solutions in       management will drive the growth 
                            the next six months.                for SaaS.
                          • Over 50% of respondents 
                                                              • Lack of complete business suites is 
                            indicated cost savings as their     creating an opportunity for 
                            primary purchase driver.            vendors.




      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
 15     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study         ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                                     TBR
Platform follows Software as a Service as customers look to extend 
and integrate their public and private cloud investments
Key Findings and Conclusions

                          Key Findings                    What you need to know
                                                          • Increased adoption of SaaS applications 
       Other                                                is creating a need for integration of 
      Growth              • 79% of SaaS users are either 
                                                            SaaS solutions with on‐premise 
                            using or plan to purchase 
                                                            solutions.
                            PaaS offerings.
                                                          • Larger and established SaaS vendors 
                          • There is opportuntity for 
                                                            can leverage this opportunity to extend 
                            SaaS vendors to build a PaaS 
                                                            their SaaS offerings with PaaS 
                            ecosystem.
                                                            capabilities to gain leadership in both 
                                                            SaaS and PaaS segments.




      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
 16     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study         ©2012 Technology Business Research Inc.
Part Two: Drivers and Barriers to Public Cloud Adoption                                                                     TBR
While security remains at the top of the barriers, worries about 
cloud‐to‐cloud integration complexity are on the horizon 
Key Findings and Conclusions

                          Key Findings                                             What you need to know
       Barriers           • Security and data privacy remain 
                            the biggest inhibitors.                                • Vendors should clearly indicate 
         to                                                      cost benefits across various cloud 
      Adoption            • Other barriers include:
                                                                 offerings to their customers and 
                                o Legacy infrastructure
                                                                 map workloads to deployment 
                                o Complexity of integration 
                                                                 options while alleviating 
                                o Unclear ROI 
                                                                 customers’ security‐related 
                          • More than 60% of public cloud        concerns to create a trustworthy 
                            customers are considering private  cloud.
                            cloud, and over 70% have plans to  • The support and emergence of 
                            invest in hybrid cloud.              strong certifications and open 
                          • Nearly 25% of both adopters and      standards across the layers of 
                            non‐adopters of public cloud are     cloud abstraction will alleviate 
                            concerned about cloud‐to‐cloud       customer concerns.
                            integration.


      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS
 17     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study         ©2012 Technology Business Research Inc.
Part Three: Shifting to the Cloud                                                                                   TBR
As confidence in public cloud offerings builds, customers are 
looking to shift more workloads to a cloud model


                                 Nearly three in four businesses are either using 
                                 or planning to purchase public cloud 


                                 Drivers and Barriers are varied – but cost 
                                 reduction and security remain on top

                                  Customers want to shift more sophisticated 
                                  workloads to the cloud



 18   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Part Three: Shifting to the Cloud                                                                                              TBR
CRM and project management lead the core functions most suited 
for public cloud …
Business Functions Best Suited for Cloud Computing




                                                                                                                 FIGURE 1.13

                  Nearly 45% of the respondents indicated CRM to be the best‐suited application for cloud computing. 
                  Project management, sales, marketing and communications also ranked high among business 
                  functions that customers want to shift to cloud.
      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
 19     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study           ©2012 Technology Business Research Inc.
Part Three: Shifting to the Cloud                                                                                              TBR
… while customers prefer business functions, such as accounting 
and finance, on private cloud for security and confidentiality
Business Functions Best Suited for Private Cloud




                                                                                                                 FIGURE 1.14

                  Customers remain concerned about security, confidentiality and regulatory compliance, and prefer 
                  business functions such as Accounting and Finance with critical information on private cloud while 
                  creating a hybrid cloud, as it allows customers to retain physical control of their data.
      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
 20     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study           ©2012 Technology Business Research Inc.
Part Three: Completing the Journey to the Cloud                                                                         TBR
IT efficiency will drive business effectiveness by creating services 
that better address line of business needs

                                                 Server 
           Unconsolidated                                                 Virtualization            Cloud Services
                                              Consolidation




                                                                            … while business functions want to 
         IT continues to focus on 
                                                                            shift applications to public and 
         infrastructure …
                                                                            private clouds.

      Top three drivers for cloud adoption                             Business functions best suited for cloud
      by cloud adopters
       1. Cost savings                                                     Public Cloud                 Private Cloud
       2. Improved data security                                     1. CRM                        1. Accounting and 
       3. Move to more advanced                                      2. Project                       finance
           technology                                                   Management                 2. HR management
                                                                     3. Marketing and              3. Research & 
                           TBR Cloud Adoption Study: January 2012
                                                                        communications                technology
 21     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study     ©2012 Technology Business Research Inc.
Part Three: Completing the Journey to the Cloud                                                                      TBR
Integrated solutions improve IT’s ability to respond and provide 
services to lines of business to improve internal effectiveness
                                             Technical Journey

                                            Server 
         Unconsolidated                                                Virtualization            Cloud Services
                                         Consolidation


                                             Business Journey
  Overall Roadmap from Server Consolidation to Virtualization to Cloud Services

 Cloud Services:                                                        Cloud Services:
 IT Benefits                                                            Business Benefits
    • Cost savings                                                        • Self service and billing
    • Improved data security                                              • Scaling services to meet 
    • Rapid scalability
                                                                            increased requirements
                                                                          • IT supports lines of business 
    • Rapid rollout 
                                                                            in a new way
    • Flexibility
                                                                          • Outward‐facing benefits to 
    • Reduced labor
                                                                            customers

 22   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study    ©2012 Technology Business Research Inc.
TBR
Q&A Session


                                 Stuart Williams
                                 Director, Software Practice 
                                 Technology Business Research, Inc. (TBR)

                                 Email: stuart.williams@tbri.com
                                 Twitter: @s2_williams




23   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
TBR
TBR Cloud Resources:
      TBR Topic Research:
        • Winter 2012 U.S. Public Cloud Services Adoption Report
        • Winter 2012 Cloud Professional Services Adoption Report
        • Summer 2012 Private/Hybrid Cloud Purchasing Report


      TBR Cloud Business Quarterly Reports:
        • Public Cloud Market Landscape Report


      Cloud Vendor Reports:
        • Salesforce.com
        • Amazon AWS Cloud
        • Google Apps Cloud
        • Microsoft Cloud
        • IBM Cloud
        • Rackspace
        • Verizon/Terremark Cloud
        • Oracle Cloud



24   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
TBR




                                                      Appendix 




25   Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study   ©2012 Technology Business Research Inc.
Appendix                                                                                                                   TBR
Winter 2012 Public Cloud Adoption Study Methodology

Methodology

TBR conducted 1,496 online                           Complete                    100 ‐ Small business (10‐99)
surveys with IT decision‐                            Quota:                      101 ‐ Midmarket (100‐999)
makers working at firms                                                          101 ‐ Large business (1,000+)
based in the United States 
who are responsible for or 
who influence public cloud 
services purchasing.                                 Survey Dates:               Dec. 2, 2011 – Jan. 2, 2012

302 respondents indicated 
they had adopted public 
cloud. 
                                                     Respondents:                Total Respondents – 1,496
                                                                                 Public Cloud adopters – 302




SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS

26    Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study          ©2012 Technology Business Research Inc.
Appendix: Demographics                                                                                                        TBR
Respondent Industry
Respondent Industry, by Cloud Adopters
 FIGURE 6.0




      SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
 27     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study           ©2012 Technology Business Research Inc.
Appendix: Demographics                                                                                                       TBR
Total Adopters, Viewed by Company Revenue Size
Company Revenue Size
FIGURE 6.1




     SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS
28     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study           ©2012 Technology Business Research Inc.
Appendix: Demographics                                                                                                    TBR
Private cloud adoption across business segments
Adoption Rate for Private Cloud
FIGURE 6.7




     SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=448 FOR PRIVATE CLOUD ADOPTERS
29     Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study        ©2012 Technology Business Research Inc.
About TBR                                                                                                                                 Contact Us
Technology Business Research (TBR) is a leading independent                                                                               1.603.929.1166
technology market research and consulting firm specializing in the                                                                        info@tbri.com
business and financial analyses of hardware, software, networking 
equipment, wireless, portal and professional services vendors.
                                                                                                                                          www.tbri.com
                                                                                                                                          11 Merrill Drive
Serving a global clientele, TBR provides timely and accurate market                                                                       Hampton, NH 03842
research and business intelligence in formats that are tailored to                                                                        USA
clients’ needs. Our analysts are available to further address client‐
specific issues or information needs on an inquiry or proprietary 
consulting basis. 

TBR has been empowering corporate decision makers since 1996. 

To learn how our analysts can address your unique business needs, 
please visit our website or contact us today.




                                                                                                                                    TBR
                        All reports are available in PowerPoint and PDF.
                  If you are viewing a PDF and require access to data, tables, 
                 etc. for use in internal documents, please visit www.tbri.com
                             and download the PowerPoint version.
                                                                                                                        T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .


This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology 
Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not 
and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report 
is copyright‐protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.

More Related Content

What's hot

Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...
Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...
Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...Happiest Minds Technologies
 
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasLa tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasMundo Contact
 
Cloud Security CISO club -April 2011 v2
Cloud Security CISO club -April 2011 v2Cloud Security CISO club -April 2011 v2
Cloud Security CISO club -April 2011 v2Shahar Geiger Maor
 
How big is the cloud in Australia?
How big is the cloud in Australia?How big is the cloud in Australia?
How big is the cloud in Australia?Oscar Trimboli
 
Cloud Computing for Banking - Accenture
Cloud Computing for Banking - AccentureCloud Computing for Banking - Accenture
Cloud Computing for Banking - AccentureKim Jensen
 
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBMClub Cloud des Partenaires
 
To Cloud, or Not to Cloud?
To Cloud, or Not to Cloud?To Cloud, or Not to Cloud?
To Cloud, or Not to Cloud?Sentilla
 
Transcending IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...
Transcending  IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...Transcending  IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...
Transcending IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...HCL Infosystems
 
Are your insurance processes cloud compatible?
Are your insurance processes cloud compatible?Are your insurance processes cloud compatible?
Are your insurance processes cloud compatible?Cognizant
 
Getting an open systems cloud strategy right the first time linthicm
Getting an open systems cloud strategy right the first time linthicmGetting an open systems cloud strategy right the first time linthicm
Getting an open systems cloud strategy right the first time linthicmDavid Linthicum
 
The cloud promises
The cloud promisesThe cloud promises
The cloud promisesGrand Crue
 
Managing Security and Delivering Performance in the Cloud
Managing Security and Delivering Performance in the Cloud Managing Security and Delivering Performance in the Cloud
Managing Security and Delivering Performance in the Cloud Software Park Thailand
 
Moving your Infrastructure to the Cloud
Moving your Infrastructure to the CloudMoving your Infrastructure to the Cloud
Moving your Infrastructure to the CloudRackspace
 
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...RapidValue
 
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud Migration
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud MigrationHybrid Cloud Architecture: How to Streamline Hybrid Cloud Migration
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud MigrationJulia Smith
 
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...Dion Hinchcliffe
 
CloudAsia 2012 Highlights
CloudAsia 2012 HighlightsCloudAsia 2012 Highlights
CloudAsia 2012 HighlightsAlan Quayle
 
3rd Annual Cloud Computing Summit 2011
3rd Annual Cloud Computing Summit 20113rd Annual Cloud Computing Summit 2011
3rd Annual Cloud Computing Summit 2011Firoze Hussain
 

What's hot (20)

Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...
Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...
Whitepaper: Six Steps to Private Cloud Adoption | Key Considerations, Insight...
 
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasLa tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
 
Cloud Security CISO club -April 2011 v2
Cloud Security CISO club -April 2011 v2Cloud Security CISO club -April 2011 v2
Cloud Security CISO club -April 2011 v2
 
How big is the cloud in Australia?
How big is the cloud in Australia?How big is the cloud in Australia?
How big is the cloud in Australia?
 
Cloud Computing for Banking - Accenture
Cloud Computing for Banking - AccentureCloud Computing for Banking - Accenture
Cloud Computing for Banking - Accenture
 
Cloud
CloudCloud
Cloud
 
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM
2012.06.07 - Marché et tendances du Cloud vus par des analystes et par IBM
 
To Cloud, or Not to Cloud?
To Cloud, or Not to Cloud?To Cloud, or Not to Cloud?
To Cloud, or Not to Cloud?
 
Transcending IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...
Transcending  IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...Transcending  IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...
Transcending IT Planetary Boundaries: Future of cloud, By Pradeep Gupta, Cha...
 
Are your insurance processes cloud compatible?
Are your insurance processes cloud compatible?Are your insurance processes cloud compatible?
Are your insurance processes cloud compatible?
 
Cloud ibm per pmi - Roberto Menghini
Cloud ibm per pmi - Roberto MenghiniCloud ibm per pmi - Roberto Menghini
Cloud ibm per pmi - Roberto Menghini
 
Getting an open systems cloud strategy right the first time linthicm
Getting an open systems cloud strategy right the first time linthicmGetting an open systems cloud strategy right the first time linthicm
Getting an open systems cloud strategy right the first time linthicm
 
The cloud promises
The cloud promisesThe cloud promises
The cloud promises
 
Managing Security and Delivering Performance in the Cloud
Managing Security and Delivering Performance in the Cloud Managing Security and Delivering Performance in the Cloud
Managing Security and Delivering Performance in the Cloud
 
Moving your Infrastructure to the Cloud
Moving your Infrastructure to the CloudMoving your Infrastructure to the Cloud
Moving your Infrastructure to the Cloud
 
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...
The Adoption of Cloud Technology by Enterprises - A Whitepaper by RapidValue ...
 
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud Migration
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud MigrationHybrid Cloud Architecture: How to Streamline Hybrid Cloud Migration
Hybrid Cloud Architecture: How to Streamline Hybrid Cloud Migration
 
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...
Enterprise 2.0 Summit 2012 Closing Keynote - Next-Generation Ecosystems And i...
 
CloudAsia 2012 Highlights
CloudAsia 2012 HighlightsCloudAsia 2012 Highlights
CloudAsia 2012 Highlights
 
3rd Annual Cloud Computing Summit 2011
3rd Annual Cloud Computing Summit 20113rd Annual Cloud Computing Summit 2011
3rd Annual Cloud Computing Summit 2011
 

Similar to TBR Public Cloud Adoption Study

Enterprise Cloud Adoption Survey Results
Enterprise Cloud Adoption Survey ResultsEnterprise Cloud Adoption Survey Results
Enterprise Cloud Adoption Survey ResultsEverest Group
 
2011 Cloud Trends Report
2011 Cloud Trends Report2011 Cloud Trends Report
2011 Cloud Trends Reportahollobaugh
 
Buying Into The Cloud
Buying Into The CloudBuying Into The Cloud
Buying Into The Cloudmyhosting
 
2019 Enterprise Cloud Index Report
2019 Enterprise Cloud Index Report2019 Enterprise Cloud Index Report
2019 Enterprise Cloud Index ReportAndrew James
 
IBM & CIF - Cloud Channel Research 2013
IBM & CIF - Cloud Channel Research 2013IBM & CIF - Cloud Channel Research 2013
IBM & CIF - Cloud Channel Research 2013IBM
 
Cloud adaption
Cloud adaptionCloud adaption
Cloud adaptionAccenture
 
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | Webinar
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | WebinarWhat’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | Webinar
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | WebinarEverest Group
 
Webinar Deck: What's Driving Enterprise Cloud Adoption? The Buyers Speak Out
Webinar Deck: What's Driving Enterprise Cloud Adoption?The Buyers Speak OutWebinar Deck: What's Driving Enterprise Cloud Adoption?The Buyers Speak Out
Webinar Deck: What's Driving Enterprise Cloud Adoption? The Buyers Speak OutEverest Group
 
Cloud computing-insights-from-110-implementation-projects
Cloud computing-insights-from-110-implementation-projectsCloud computing-insights-from-110-implementation-projects
Cloud computing-insights-from-110-implementation-projectsAccenture
 
Cloud Insights from 110 Projects
Cloud Insights from 110 ProjectsCloud Insights from 110 Projects
Cloud Insights from 110 ProjectsNone
 
Dispelling the vapor around cloud computing - Drivers, barriers and considera...
Dispelling the vapor around cloud computing - Drivers, barriers and considera...Dispelling the vapor around cloud computing - Drivers, barriers and considera...
Dispelling the vapor around cloud computing - Drivers, barriers and considera...IBM India Smarter Computing
 
Dispelling The Vapor Around Cloud Computing –Network Management
Dispelling The Vapor Around Cloud Computing –Network ManagementDispelling The Vapor Around Cloud Computing –Network Management
Dispelling The Vapor Around Cloud Computing –Network ManagementIBM India Smarter Computing
 
Dispelling the Vapour around Cloud for Financial services
Dispelling the Vapour around Cloud for Financial servicesDispelling the Vapour around Cloud for Financial services
Dispelling the Vapour around Cloud for Financial servicesIBM India Smarter Computing
 
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...Scott Bils
 

Similar to TBR Public Cloud Adoption Study (20)

Enterprise Cloud Adoption Survey Results
Enterprise Cloud Adoption Survey ResultsEnterprise Cloud Adoption Survey Results
Enterprise Cloud Adoption Survey Results
 
2011 Cloud Trends Report
2011 Cloud Trends Report2011 Cloud Trends Report
2011 Cloud Trends Report
 
Buying Into The Cloud
Buying Into The CloudBuying Into The Cloud
Buying Into The Cloud
 
2019 Enterprise Cloud Index Report
2019 Enterprise Cloud Index Report2019 Enterprise Cloud Index Report
2019 Enterprise Cloud Index Report
 
IBM & CIF - Cloud Channel Research 2013
IBM & CIF - Cloud Channel Research 2013IBM & CIF - Cloud Channel Research 2013
IBM & CIF - Cloud Channel Research 2013
 
Cloud adaption
Cloud adaptionCloud adaption
Cloud adaption
 
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | Webinar
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | WebinarWhat’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | Webinar
What’s Driving Enterprise Cloud Adoption? The Buyers Speak Out | Webinar
 
Webinar Deck: What's Driving Enterprise Cloud Adoption? The Buyers Speak Out
Webinar Deck: What's Driving Enterprise Cloud Adoption?The Buyers Speak OutWebinar Deck: What's Driving Enterprise Cloud Adoption?The Buyers Speak Out
Webinar Deck: What's Driving Enterprise Cloud Adoption? The Buyers Speak Out
 
Cloud computing-insights-from-110-implementation-projects
Cloud computing-insights-from-110-implementation-projectsCloud computing-insights-from-110-implementation-projects
Cloud computing-insights-from-110-implementation-projects
 
Cloud Insights from 110 Projects
Cloud Insights from 110 ProjectsCloud Insights from 110 Projects
Cloud Insights from 110 Projects
 
Dispelling the Vapour around Cloud
Dispelling the Vapour around Cloud Dispelling the Vapour around Cloud
Dispelling the Vapour around Cloud
 
Dispelling the vapor around cloud computing - Drivers, barriers and considera...
Dispelling the vapor around cloud computing - Drivers, barriers and considera...Dispelling the vapor around cloud computing - Drivers, barriers and considera...
Dispelling the vapor around cloud computing - Drivers, barriers and considera...
 
Dispelling The Vapor Around Cloud Computing –Network Management
Dispelling The Vapor Around Cloud Computing –Network ManagementDispelling The Vapor Around Cloud Computing –Network Management
Dispelling The Vapor Around Cloud Computing –Network Management
 
Dispelling The Vapor Around Cloud Computing
Dispelling The Vapor Around Cloud ComputingDispelling The Vapor Around Cloud Computing
Dispelling The Vapor Around Cloud Computing
 
Dispelling the vapor around cloud computing
Dispelling the vapor around cloud computingDispelling the vapor around cloud computing
Dispelling the vapor around cloud computing
 
Dispelling the Vapour around Cloud for Financial services
Dispelling the Vapour around Cloud for Financial servicesDispelling the Vapour around Cloud for Financial services
Dispelling the Vapour around Cloud for Financial services
 
The power of cloud
The power of cloudThe power of cloud
The power of cloud
 
The cloud
The cloudThe cloud
The cloud
 
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...
Enterprise Cloud Stakeholders Speak: Adoption Patterns, Barriers & Post-Adopt...
 
4aa5-6541enw
4aa5-6541enw4aa5-6541enw
4aa5-6541enw
 

TBR Public Cloud Adoption Study

  • 2. TBR Today’s Presenter Stuart Williams Director, Software Practice  Technology Business Research, Inc. (TBR) Email: stuart.williams@tbri.com Twitter: @s2_williams 2 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 3. TBR Three of four IT buyers want public cloud services ... Are you ready to sell them what they want? 74% Adoption remains on the upswing. • Market opportunity is growing of businesses either use or plan  • Buyers are considering multiple vendors to purchase a public cloud  • Dominant vendors have not emerged service within 12 months. 65% Applications lead adoption. • Buyers are looking for solutions of non‐adopters plan to  • Software and Infrastructure as a Service lead purchase a SaaS application  within 12 months. • Vendors must get past security issues SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496 3 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 4. Part One: Adoption of Public Cloud Services TBR To capitalize on the vast public cloud opportunity, vendors must  first understand the drivers of adoption  Nearly three in four businesses are either using  or planning to purchase public cloud  Drivers and Barriers are varied – but cost  reduction and security remain on top Customers want to shift more sophisticated  workloads to the cloud 4 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 5. Part One: Adoption of Public Cloud Services TBR Cloud adoption is near 40% – with equal public and private cloud  adoption – and 54% intend to add public cloud Overall Cloud Adoption Rates FIGURE 1.0 Overall  N = 1,496  IT Decision  Cloud  makers and  adoption  Line of  rate = 39% Business  Managers  Public  in U.S. Cloud  adoption  rate = 20% Of the 1,496 respondents who participated in the study, 39% have adopted cloud  computing. 54% of respondents intend to add public cloud services within 12 months. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496 5 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 6. Part One: Adoption of Public Cloud Services TBR Not only is overall adoption increasing, but cross‐cloud adoption is  increasing for applications, platforms and infrastructure Adoption Rates for Public Cloud Public Cloud Adoption Public Cloud Segments Additional Adoption of Private Cloud FIGURE 1.1 Adopted  Public Cloud SaaS FIGURE 1.2 20% 69% Not  Considering  Public Cloud IaaS 26% 53% Considering  Public Cloud 54% PaaS 50% N=302 for public cloud adopters N=1,496 N=302 for public cloud adopters 20% of respondents have adopted public cloud and 54% are considering  adoption of public cloud. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 6 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 7. Part One: Adoption of Public Cloud Services TBR The overall Public Cloud revenue opportunity is growing in line  with adoption … TBR Estimated  Public  Cloud Revenue Aggregated TBR Public Cloud Landscape  Revenue and Growth  $45 $43.00 Total  Estimated Public  Cloud Revenue (in $ Billions) Public   $40 TBR’s 3Q11 Public Cloud Market Landscape  Cloud   $35 includes a top‐down cloud market estimate and  $33.00 Market a bottom‐up tracker of over 35 vendors.  $30 $23.00  $25  $20 $18.10 42% year‐to‐year quarterly growth Public   $15 $12.86 Cloud  $9.24 $10.31 $9.88 Market   $10 $7.92 $8.58 $6.44 $7.26 Revenue  $5.98 in TBR’s   $5 $3.07 $3.17 $3.19 $3.81 $4.14 $2.41 $2.68 covered  vendors  $‐ 3Q10 4Q10 1Q11 2Q11  3Q11 Fst 4Q11 Est 1Q12 2010 Est. 2011 Est. 2012 Calendar Quarter Calendar Quarter Calendar Year TBR Public Cloud Market Covered in the Cloud Market Landscape Report TBR Public Cloud Market Estimate SOURCE: COMPANY DATA; TBR ESTIMATES 7 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 8. Part One: Adoption of Public Cloud Services TBR … however, monetization is greater for SaaS than PaaS and IaaS TBR estimates a revenue spike across  segments in 4Q11 due to seasonality. Although SaaS accounts for the majority of TBR’s  SaaS YtY Growth: 38% public cloud market revenue, PaaS and IaaS are  PaaS YtY Growth: 43% experiencing rapid growth, and once  IaaS YtY Growth: 50% implemented, are more sticky than SaaS and  closer to customers’ core business processes. 70% 8% 22% % CML Revenue SOURCE: COMPANY DATA; TBR ESTIMATES 8 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 9. Part One: Adoption of Public Cloud Services TBR SaaS has the highest adoption rate, spurred by complete business  suites, project management, desktop and messaging Public Software as a Service Key Findings What you need to know SaaS will continue to gain momentum across all  • Adoption  SaaS saw the highest adoption rate  market segments from SMBs to enterprises. Rates &  among public cloud adopters, at 69%,  • SaaS offerings continue to scale and vendors  Drivers with cost savings the major driver. continue to build offerings by considering buyer  infrastructure limitations and integration needs. Microsoft is winning with public cloud  Vendor  Google and Microsoft are clear  deployments of its widely used Office suite.  Selection leaders in the SaaS‐based desktop  Google Apps is in direct competition with  and messaging markets. Microsoft Office 365, and is positioning itself as a  more cost‐effective complete business suite. Both public cloud purchasers and  SaaS spending will continue to grow across  non‐purchasers are considering  multiple business applications; however,  Key  purchasing SaaS‐based project  complete business suites, project management,  Offerings management, desktop and messaging  desktop solutions and messaging drive will  solutions in the near future.  continue to drive adoption in the SaaS market.  SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N =302 FOR PUBLIC CLOUD ADOPTERS, N FOR SaaS ADOPTERS = 209 9 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 10. Part One: Adoption of Public Cloud Services TBR Though there are few established leaders and mature offerings,  rapid growth will transform the PaaS market Public Platform as a Service Key Findings What you need to know 50% of cloud adopters surveyed have  • PaaS is increasingly important as customers  Adoption  adopted PaaS offerings, with cost and  migrate application development to the cloud. increased functionality the key  Rates &  • The market will see increased adoption as  drivers to purchase from both  Drivers traditional and pure‐play cloud  customers customize and develop new  vendors. applications. • Emerging solutions will have the opportunity to  Besides IBM leading the market share  gain significant share in the rapidly growing  of testing for development, there are  Vendor  space. no clear winners, indicating its  Selection • Increased adoption of SaaS solutions is leading  nascent state and the opportunity for  to integration issues, and will create a portfolio  vendor penetration and growth. of opportunities for PaaS vendors. Though Storage for development has  • The PaaS market is still evolving. higher adoption rates, all PaaS  • All PaaS segments will experience fast‐paced  Key  offerings will see relatively equal  growth in coming quarters as customers  Offerings traction in the market in the next six  develop custom applications for internal use  months. and as product add‐ons. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR PaaS ADOPTERS=152 10 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 11. Part One: Adoption of Public Cloud Services TBR Demand for storage due to increased data volume drives IaaS Public Infrastructure as a Service Key Findings What you need to know • Based on the survey results, 53% of • As customers gain trust in public cloud  Adoption  cloud adopters have purchased IaaS  solutions, IaaS adoption is increasing and  Rates &  offerings. becoming a core part of the IT system.  Drivers • Drivers include cost savings,  • However, basic storage and computing IaaS will  scalability and increased data  quickly become a commodity. volume. • No clear winner emerged – a mix of  traditional and pure‐play vendors  • Security – from the hardware level to the  such as Amazon, Rackspace, IBM  Vendor  application to user control and compliance – and HP. remains a fundamental barrier to adoption. Selection • Vendors offering public and private  • Vendors that can certify their cloud offerings – cloud have better opportunity  and ecosystem – will have an advantage. based on the overall cloud adoption  trend. • More than 65% of customers  • Storage offerings will continue to drive the sales  reported purchasing storage  of IaaS offerings among both cloud adopters  Key  solutions. and non‐adopters. Offerings • Nearly 50% of non‐adopters plan to  • Vendors can also expect cloud‐based systems  purchase storage in the next six  management to see increased growth from  months.  cloud adopters.  SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS, N FOR IaaS ADOPTERS =161 11 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 12. Part Two: Drivers and Barriers to Public Cloud Adoption TBR Making the jump to public cloud services is a leap of faith for many Nearly three in four businesses are either using  or planning to purchase public cloud  Drivers and Barriers are varied – but cost  reduction and security remain on top Customers want to shift more sophisticated  workloads to the cloud 12 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 13. Part Two: Drivers and Barriers to Public Cloud Adoption TBR Customers want to leverage cloud to extend scalability, improve  performance, and reduce costs Leading Purchase Influencers and Drivers Customers face… Customers seek to… Why cloud? Evaluation  criteria driving  Offloading low‐risk, high‐ purchases from  Improve their  Data growth is  demand workloads to the  cloud providers: spend‐to‐ driving up costs cloud reduces management  performance ratio burden and related costs. • Cloud Provider: Buyers want to give their end‐ o Expertise Rising demands  users the best possible speed  o Pricing Improve speed and  on traditional IT  and improved IT performance, o Support performance infrastructure  and consider cloud the means  • Cloud  to do so. Infrastructure: o Data Security Cloud deployments let  New business  customers keep costs  o Network  demands require  Improve scalability relatively low while still  Availability IT to be agile accessing innovative, new  o Compliance technology offerings. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 13 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 14. Part Two: Drivers and Barriers to Public Cloud Adoption TBR Cloud vendors that overcome security concerns and prove the ROI  for shifting specific workloads will win customers Purchase Barriers and Drivers Barriers to Adoption Drivers to Greenlighting Cloud Purchases Data security and data confidentiality concerns are  Cost savings, improved data security from cloud‐ top barriers to adoption of public cloud computing  based security services, keeping pace with  services. technology advancements and scalability are the  • Customers reported data privacy concerns as  key drivers of cloud adoption. the biggest business risk in adopting cloud  • More than 50% of respondents indicated cost  computing services, as they want to retain  savings as the primary driver for purchasing  physical control of critical data. public cloud computing services. • Data security was cited as the biggest IT concern  • Respondents also valued other key mentions  in adoption of cloud services. such as scalability to add capacity, adoption of  • Other adoption barriers include legacy  advanced technology standards and the need  infrastructure, complexity of integration of  for improved data security as reasons to buy. cloud offerings with existing applications and  infrastructure, and unclear ROI benefits from  cloud investments. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR ADOPTERS 14 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 15. Part Two: Drivers and Barriers to Public Cloud Adoption TBR SaaS offerings are the durable driver of cloud computing adoption,  and will continue to be for the near future Key Findings and Conclusions Key Findings What you need to know Key Driver  • Unlike the earlier days of adoption,  • SaaS offerings are continuing to  for growth  grow across multiple business  SaaS offerings have gained traction  in cloud  across SMBs as well as large  computing applications. enterprises.  • 69% of cloud adopters surveyed  • Increased demand for complete  have deployed SaaS solutions. business suites, desktop  • 65% of non‐cloud adopters plan  productivity and project  to purchase SaaS solutions in  management will drive the growth  the next six months. for SaaS. • Over 50% of respondents  • Lack of complete business suites is  indicated cost savings as their  creating an opportunity for  primary purchase driver. vendors. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 15 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 16. Part Two: Drivers and Barriers to Public Cloud Adoption TBR Platform follows Software as a Service as customers look to extend  and integrate their public and private cloud investments Key Findings and Conclusions Key Findings What you need to know • Increased adoption of SaaS applications  Other  is creating a need for integration of  Growth • 79% of SaaS users are either  SaaS solutions with on‐premise  using or plan to purchase  solutions. PaaS offerings. • Larger and established SaaS vendors  • There is opportuntity for  can leverage this opportunity to extend  SaaS vendors to build a PaaS  their SaaS offerings with PaaS  ecosystem. capabilities to gain leadership in both  SaaS and PaaS segments. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 16 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 17. Part Two: Drivers and Barriers to Public Cloud Adoption TBR While security remains at the top of the barriers, worries about  cloud‐to‐cloud integration complexity are on the horizon  Key Findings and Conclusions Key Findings What you need to know Barriers  • Security and data privacy remain  the biggest inhibitors. • Vendors should clearly indicate  to  cost benefits across various cloud  Adoption • Other barriers include: offerings to their customers and  o Legacy infrastructure map workloads to deployment  o Complexity of integration  options while alleviating  o Unclear ROI  customers’ security‐related  • More than 60% of public cloud  concerns to create a trustworthy  customers are considering private  cloud. cloud, and over 70% have plans to  • The support and emergence of  invest in hybrid cloud. strong certifications and open  • Nearly 25% of both adopters and  standards across the layers of  non‐adopters of public cloud are  cloud abstraction will alleviate  concerned about cloud‐to‐cloud  customer concerns. integration. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 17 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 18. Part Three: Shifting to the Cloud TBR As confidence in public cloud offerings builds, customers are  looking to shift more workloads to a cloud model Nearly three in four businesses are either using  or planning to purchase public cloud  Drivers and Barriers are varied – but cost  reduction and security remain on top Customers want to shift more sophisticated  workloads to the cloud 18 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 19. Part Three: Shifting to the Cloud TBR CRM and project management lead the core functions most suited  for public cloud … Business Functions Best Suited for Cloud Computing FIGURE 1.13 Nearly 45% of the respondents indicated CRM to be the best‐suited application for cloud computing.  Project management, sales, marketing and communications also ranked high among business  functions that customers want to shift to cloud. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS 19 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 20. Part Three: Shifting to the Cloud TBR … while customers prefer business functions, such as accounting  and finance, on private cloud for security and confidentiality Business Functions Best Suited for Private Cloud FIGURE 1.14 Customers remain concerned about security, confidentiality and regulatory compliance, and prefer  business functions such as Accounting and Finance with critical information on private cloud while  creating a hybrid cloud, as it allows customers to retain physical control of their data. SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS 20 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 21. Part Three: Completing the Journey to the Cloud TBR IT efficiency will drive business effectiveness by creating services  that better address line of business needs Server  Unconsolidated Virtualization Cloud Services Consolidation … while business functions want to  IT continues to focus on  shift applications to public and  infrastructure … private clouds. Top three drivers for cloud adoption  Business functions best suited for cloud by cloud adopters 1. Cost savings Public Cloud Private Cloud 2. Improved data security 1. CRM 1. Accounting and  3. Move to more advanced  2. Project  finance technology Management 2. HR management 3. Marketing and  3. Research &  TBR Cloud Adoption Study: January 2012 communications technology 21 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 22. Part Three: Completing the Journey to the Cloud TBR Integrated solutions improve IT’s ability to respond and provide  services to lines of business to improve internal effectiveness Technical Journey Server  Unconsolidated Virtualization Cloud Services Consolidation Business Journey Overall Roadmap from Server Consolidation to Virtualization to Cloud Services Cloud Services: Cloud Services: IT Benefits Business Benefits • Cost savings • Self service and billing • Improved data security • Scaling services to meet  • Rapid scalability increased requirements • IT supports lines of business  • Rapid rollout  in a new way • Flexibility • Outward‐facing benefits to  • Reduced labor customers 22 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 23. TBR Q&A Session Stuart Williams Director, Software Practice  Technology Business Research, Inc. (TBR) Email: stuart.williams@tbri.com Twitter: @s2_williams 23 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 24. TBR TBR Cloud Resources: TBR Topic Research: • Winter 2012 U.S. Public Cloud Services Adoption Report • Winter 2012 Cloud Professional Services Adoption Report • Summer 2012 Private/Hybrid Cloud Purchasing Report TBR Cloud Business Quarterly Reports: • Public Cloud Market Landscape Report Cloud Vendor Reports: • Salesforce.com • Amazon AWS Cloud • Google Apps Cloud • Microsoft Cloud • IBM Cloud • Rackspace • Verizon/Terremark Cloud • Oracle Cloud 24 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 25. TBR Appendix  25 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 26. Appendix TBR Winter 2012 Public Cloud Adoption Study Methodology Methodology TBR conducted 1,496 online  Complete  100 ‐ Small business (10‐99) surveys with IT decision‐ Quota: 101 ‐ Midmarket (100‐999) makers working at firms  101 ‐ Large business (1,000+) based in the United States  who are responsible for or  who influence public cloud  services purchasing.  Survey Dates: Dec. 2, 2011 – Jan. 2, 2012 302 respondents indicated  they had adopted public  cloud.  Respondents: Total Respondents – 1,496 Public Cloud adopters – 302 SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; TOTAL N= 1,496, N=302 FOR PUBLIC CLOUD ADOPTERS 26 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 27. Appendix: Demographics TBR Respondent Industry Respondent Industry, by Cloud Adopters FIGURE 6.0 SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS 27 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 28. Appendix: Demographics TBR Total Adopters, Viewed by Company Revenue Size Company Revenue Size FIGURE 6.1 SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=302 FOR PUBLIC CLOUD ADOPTERS 28 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 29. Appendix: Demographics TBR Private cloud adoption across business segments Adoption Rate for Private Cloud FIGURE 6.7 SOURCE: TBR WINTER 2011, CLOUD COMPUTING ADOPTION STUDY; N=448 FOR PRIVATE CLOUD ADOPTERS 29 Three of Four Purchasers Agree: Insight from TBR’s Public Cloud Adoption Study ©2012 Technology Business Research Inc.
  • 30. About TBR Contact Us Technology Business Research (TBR) is a leading independent  1.603.929.1166 technology market research and consulting firm specializing in the  info@tbri.com business and financial analyses of hardware, software, networking  equipment, wireless, portal and professional services vendors. www.tbri.com 11 Merrill Drive Serving a global clientele, TBR provides timely and accurate market  Hampton, NH 03842 research and business intelligence in formats that are tailored to  USA clients’ needs. Our analysts are available to further address client‐ specific issues or information needs on an inquiry or proprietary  consulting basis.  TBR has been empowering corporate decision makers since 1996.  To learn how our analysts can address your unique business needs,  please visit our website or contact us today. TBR All reports are available in PowerPoint and PDF. If you are viewing a PDF and require access to data, tables,  etc. for use in internal documents, please visit www.tbri.com and download the PowerPoint version. T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C . This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology  Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not  and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report  is copyright‐protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.