Title: Adoption of Cloud in the UK

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1 Title: Adoption of Cloud in the UK Subtitle: End User and IT Supplier Opinions Jonathan Bowers Member, Cloud Industry Forum Communications Director, UKFAST

2 What is the Cloud Industry Forum CIF is a Membership led organisation for the IT industry. Champions and advocates for adoption and use of Cloud-based services by businesses and individuals. We use our resources to establish best practice, lobby and educate on all matters that will aid adoption of credible cloud services. We manage a certifiable Cloud Code of Practice that provides transparency so that consumers can choose providers through clarity and confidence.

3 An influential voice for industry CoP Outreach Members Alliances CIF PASC & Lobbying ISO SC38 Technical Standards

4 Application Delivery: Cloud vs On-Site Restating the obvious: 1. Its a customer choice you can t ignore it. 2. Its about Supply Chain and BPR more than an issue of technology 3. It is not an either/or decision its best of both worlds 4. It should be considered as part of a customers IT Strategy 5. Hype is giving way to practical and proven adoption 6. They can t all be wrong can they?

5 As a scene setter for today s event: Research for CIF by Vanson Bourne Responses from both end users and the IT channel White Papers have already been published on: 1. Cloud Adoption and Attitudes in the UK Market 2. Cloud Impact upon the Supply Chain 3. Cloud Contracts. A Guide to Best Practice Free to download from

6 Research Baseline: 450 End Users SMB to Enterprise Public & Private 200 IT Suppliers Local to International Reseller to Service Provider Note: Base changes by Q!

7 End User Adoption Snapshot Almost half participate formally in cloud services today Private sector SMB+ show fastest growth Initial adoption is due to flexibility of the Cloud Service model speed, efficiency, agility, new services etc 3 x more than cited cost savings!

8 End User Satisfaction & Plans Are you satisfied with your use of Cloud Services? 94% satisfaction level!! 85% to further invest in % driven by cost benefits now! 89% see it as a core part of IT Strategy 65% of owners of cloud Strategy were IT professionals/exec s

9 End User Concerns: Data, data & data! Security Privacy Sovereignty Pervasive Internet access Reliability Contractual lock-in Selective participation

10 Research and Sourcing Decisions 60% of participants have a preferred supplier relationship for IT Who is the primary decision maker for cloud services? Base: All respondents Total Fewer than More than 200 Head of IT 65 % 33 % 75 % 80 % CEO/MD 26 % 57 % 19 % 8 % Head of the User Dept 2 % 1 % 2 % 4 % FD/CFO 1 % 2 % 0 % 2 % *Other (please specify) 5 % 7 % 3 % 5 % Base % believe cloud was not raised by their IT provider

11 IT Channel Opinions on Cloud 63% - Claim to offer Cloud Services in some form today 73% - Believe the end user market is ready for cloud 83% - Rate cloud as good as or better than on-prem

12 Cloud Service Delivery 39% operate own DC 33% Co-locate 11% OEM 17% Resell 41% want White label

13 Service Portfolio: Sought vs Offered End User Requirement Channel Capability

14 Barriers to Cloud Service Adoption Channel maturity is impacted by: Concerns over market readiness Financial structuring and motivation of the company Concerns over customer reinvestment from Onpremise to online Staff skills New partnerships

15 ... And those not engaging in Cloud? Tendency to overplay the FUD compared to User perceptions! Not seeing active demand from End Users (interesting point compared to End User comment about seeking advice)

16 On balance... Hype is giving way to action across the board On Premise and Online must co-exist though End User results place UK at forefront of adoption Satisfaction will drive further & faster adoption in H Concerns remain on Data Security, Privacy & Sovereignty but this is easing in the mid-market to Enterprise IT Supply chain recognises the need to embrace cloud services and believes them to be sustainable, but is still evolving. Largely there is awareness of End User expectations, but there are some alignment issues on priorities. Channel is still in state of flux with changing business models, service capabilities and skills to embrace online and on-premise portfolio What we call cloud has to be embraced in some form!

17 A final remark When asked if a Code of Practice would aid the participants in selecting a CSP the responses were as follows: 83% of End Users 73% of IT Solution Providers

18

19 Thank you

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