The European Cloud Journey. Gabriella Cattaneo, European Government Consulting IDC s European Cloud Research Team February 24, 2014

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1 The European Cloud Journey Gabriella Cattaneo, European Government Consulting IDC s European Cloud Research Team February 24, 2014

2 The Cloud market grows fast (Forecast 2014, WE) Market Value Bill Bill Cloud Models Public Cloud Hosted Private Cloud IT for Private Cloud Growth Year on Year 30% 53% 20% Bill. 4.3 Public Cloud 5.6% Hosted Private Cloud 2.2% % of General IT spending IT for Private Cloud 2.4%

3 Enterprises are moving forward in the cloud adoption roadmap towards business transformation Ad Hoc Experimental Understanding the Cloud Limited SaaS deployments Opportunistic Identify tactical opportunities Lower infrastructure costs Pilot Private Cloud Repeatable Consolidation Strategic use of Cloud Streamline IT delivery and support Managed Expand to hybrid cloud Deliver business transformation New business models emerge Optimized Cloud is IT SMEs (<50 empl.) SMEs ( empl.) Medium Enterprises ( empl.) Large Enterprises (>1,000 empl.) 3

4 Where the journey is leading: next applications moving to the cloud 2014 Investment Priorities... CRM Productivity apps Supply chain ERP Industry specific Dev&test... And the next steps of the migration IDC Visit us at IDC.com and follow us on 4

5 There is no silver bullet to remove cloud barriers Cloud Business Barriers Security, Regulation, SLA management Organizational inertia, uncertainty about the business case, clashes in IT teams, Legacy systems Insufficient integration and interoperability particularly for mobile applications Easy, convenient, scalable Mobility - Investment in Cloud apps to differentiate from competition Single Market if EU data protection regulation brings down frontiers for cloud services Made in Europe Meeting of cloud and Big Data in cloud-based analytics, cloudifying of existing tools. Cloud Drivers

6 Questions Gabriella Cattaneo Associate VP, European Government Consulting Carla Arend Program Director, European Software David Bradshaw Research Manager, European Public Cloud 6

7 Measuring the Cloud Gabriella Cattaneo, European Government Consulting IDC s European Cloud Research Team February 24, 2014

8 How Cloud affects IT spending Traditional IT Spending % Traditional Software spending becoming SaaS Cloud Spending % Additive hardware spending going to Service Providers % On premise hardware spending eaten by IaaS % Traditional Managed Services becoming Standardized Cloud... and more IDC Visit us at IDC.com and follow us on 8

9 Three Main Areas of Cloud Research A. Hardware Looking at... Elements necessary to build and deliver cloud services B. Software C. Services Arm Dealers By Location On Premise Cloud service delivery models By Service Type Off Premise SaaS PaaS Cloud Service Providers IaaS End user and implementation aspects Workloads Data integration IT Governance End Users Security and regulation IDC Visit us at IDC.com and follow us on 9

10 Cloud Computing Impact on e-skills ICT Vendors Public Cloud IT Business Users Private Cloud Skills needed Skills in design, building, optimization and cloud management Demand of new skills of managing external cloud services, define strategy, management of SLA High-Level complex IT skills to design clouds, skills for maintaining private clouds, skills for customization Skills less needed Maintenance skills are less required (because of cloud automation level) Demand for technical skills and resources to maintain applications and resources decreases General trends: Demand for High Level IT and e-business skills INCREASES - Demand for traditional technical infrastructure skills DECREASES SMEs: lower demand for traditional skills counterbalanced by creation of new SMEs NET JOBS BALANCE STILL UNCLEAR 10

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