7 INSIGHTS FROM OUR 2014 CLOUD ADOPTION SURVEY

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1 1 7 INSIGHTS FROM OUR 2014 CLOUD ADOPTION SURVEY

2 THE NEW INDUSTRY PULSE ON CLOUD MIGRATION We asked nearly 200 IT professionals in industries ranging from healthcare and government to finance and media/ entertainment about their relationship and experience with cloud adoption. We wanted to know about what level of adoption they were at, as well as what their specific use cases, platform, feature criteria and migration concerns were. What we found helped us paint a picture of the current cloud computing landscape and shed some light on the trends of this rapidly developing technology. A high percentage of organizations are choosing hybrid cloud solutions, and major security and control concerns were a couple of the interesting trends our survey uncovered. You might find that a lot of this rings true for your enterprise. The results and our analysis may provide your organization with some insights on which to help guide future decisions. 2

3 1 AT WHAT STAGE OF CLOUD ADOPTION FOR EXTERNAL/ PUBLIC APPLICATIONS IS YOUR ORGANIZATION (such as web sites, content delivery, mobile apps, etc.)? In 2010, a Gartner Magic Quadrant Report predicted that 25 percent of the hosting market would soon be happening inside the cloud. 1 Four years later, the Level 3 State of the Cloud Survey indicates things have changed. Not only did 34.1 percent respond that they are currently running and managing their applications in the cloud, another 48.3 percent are on their way, between investigating and planning/implementing. That means 82.4 percent are already engaged in cloud adoption at some level % 27.8% 34.1% 27.8% 20.5% 17.1% 20.5% NOT CONSIDERING INVESTIGATING PLANNING/ IMPLEMENTING INVESTIGATING PLANNING/ IMPLEMENTING RUNNING/ MANAGING The cloud has become the industry standard and you don t want to be left behind. Consider how your IT department could benefit from migrating your applications to the cloud. When you re ready to make the call, begin developing a migration plan and exploring cloud network and cloud connection options. 3

4 2 AT WHAT STAGE OF CLOUD ADOPTION FOR INTERNAL/ PRIVATE BUSINESS APPLICATIONS IS YOUR ORGANIZATION (such as storage and compute, ERP application hosting, business continuity and disaster recovery, etc.)? Currently, 31.1 percent of companies are running internal/private and missioncritical applications in the cloud, and 66.4 percent are between investigating and planning/implementing. Such applications include testing and development, business continuity and disaster recovery (BCDR), business application hosting ( , ERP, HRM, CRM, etc.), big data analytics and media workflow. Today, most of these applications are run from private data centers, though there are trends suggesting more back-office apps are also moving to cloud services/ environments. As cloud adoption continues to rise, especially for mission-critical applications, performance and security remain key concerns (see Question 7). We expect to see a 2greater emphasis on network connection options regardless of the type of cloud environment private, public or hybrid. 39% 27.4% 30.1% 3.7% OTHER INVESTIGATING PLANNING/ IMPLEMENTING RUNNING MANAGING There are benefits to moving internal business and IT applications to the cloud. Organizations are developing private, public and hybrid strategies for a variety of reasons. But the one thing that seems inalienable is the importance of a reliable network connection. Level 3 Cloud Connect Solutions guarantee a secure and reliable connection no matter how your cloud strategy is structured. 4

5 3 WHAT ARE THE REASONS YOUR ORGANIZATION IS MOVING TO, OR CURRENTLY LEVERAGING, THE CLOUD? 3 There are numerous advantages of moving to the cloud. Our survey turned up the top reasons from IT professionals who have made, or are in the process of making, this move. Over 50 percent named flexibility, with BCDR a close second at 46.6 percent. Faster time-to-market ranked third highest, at 26.7 percent. The high cost of constructing an on-premises data center is driving many IT leaders to pursue alternatives. The cloud can do this at a fraction of the cost, making it a common reason for IT departments to migrate. The high percentage of flexibility and faster time-to-market speaks to the developments in network connectivity options, including Level 3 Cloud Connect Solutions, that make cloud computing such a valuable solution for enterprise organizations. 56.2% 46.6% 20.6% 26.7% 24.7% 14.4% 16.4% MOVE CAPEX TO OPEX FIND OPEX SAVINGS OUTSOURCING NON/CORE NON-STRATIGIC ACTIVITIES FASTER TIME TO MARKET MOBILITY FLEXIBILITY BCDR (BUSINESS CONTINUITY, DISASTER RECOVERY) IT professionals like you require that their cloud services enable rapid provisioning and elasticity, and that they continuously bring to market new features that help their organizations innovate. Level 3 Cloud Connect Solutions, for example, offer private network services and pre-established connectivity to make it fast and easy to connect to your cloud environment. The right connection is essential in making it quick and easy to turn up and scale your cloud environment. 5

6 4 WHAT ARE THE MOST IMPORTANT CRITERIA YOU WOULD/DID CONSIDER BEFORE CHOOSING YOUR CLOUD CONNECTIVITY PROVIDER? 4 Not surprisingly, service reliability and security were the top criteria in the survey results, with 28.1 percent and 27.4 percent, respectively. This is indicative of IT professionals top priority of having an agile, innovative service that is able to keep data both safe and reliably accessible. Here again, the type of network connection and provider is key to your success. Moving applications and data from on-premises data centers into the cloud introduces distance and exposure to the outside world. SERVICE AVAILABILITY/ GEOGRAPHIC REACH FLEXIBILITY PERFORMANCE/SLAs BANDWIDTH GUARANTEES 8.2% 8.9% 4.1% 1.4% 8.2% ESTABLISHED RELEATIONSHIP WITH KEY CLOUD SERVICES VALUE 13.7% 28.1% SERVICE RELIABILITY 27.4% SECURITY More than likely, you have a similar interest in ensuring that your data is safe and that IT has complete access. Your cloud strategy is only as strong as its weakest link. Be sure to not overlook the importance of choosing a reliable network connection to guarantee your applications are available, responsive and secure. 6

7 5 WHICH CLOUD SERVICE PROVIDER ARE YOU CONNECTING TO OR THINKING OF CONNECTING TO IN THE NEXT 12 MONTHS? Amazon Web Services (AWS) and Microsoft Azure TM ranked first among cloud providers, with 38.3 percent and 26.4 percent, respectively. Gartner named both AWS and Azure leaders in their 2014 Magic Quadrant for Cloud Infrastructure. 2 Recognized for its mature range of flexible IT resources, available globally, AWS has been leading in business agility and cost across virtually every industry. Organizations can use AWS Direct Connect to privately connect to AWS cloud services. Microsoft Azure has unmatched experience running data centers and cloud services at a global scale. Security is tight, as Azure ExpressRoute provides an alternative to the public Internet for connecting to your cloud services. Reliability, speed and lower latencies are additional strengths of Azure ExpressRoute. It is also important to note that a total of 39.4 percent of participants said they are developing their own private cloud in a third-party/private data center. This is a further indication of the high demands that enterprise organizations are placing on privacy, security and control of their applications in the cloud. 38.4% 39.4% 21.9% 26.7% 21.9% 20.6% 17.8% 12.3% 7.5% 9.6% 4.8% 17.5% 1.4% 0.7% AMAZON MICROSOFT WEB SERVICES AZURE RACKSPACE EMC SOFTLAYER IBM SMART CLOUD GOOGLE CLOUD STORAGE HP INTERNAP DEVELOPING PRIVATE CLOUD IN A THIRD- PARTY DATA CENTER DEVELOPING PRIVATE CLOUD IN PRIVATE DATA CENTER DEVELOPING PRIVATE CLOUD IN THIRD-PARTY OR PRIVATE DATA CENTER AWS and Azure are highly regarded cloud service providers driving rapid adoption. However, there are a growing number of providers to choose from, for example Rackspace, HP and IBM Smart Cloud. The most important part is talking to a network provider that can support connectivity to them. 7

8 6 WHAT CONNECTIVITY SOLUTIONS ARE YOU USING OR CONSIDERING USING? Many enterprises are using a hybrid cloud network connection (54.1 percent). This is likely because many IT departments understand that public and private network connections have different strengths and are ideally suited to different applications and data. Where the public Internet works great for web/mobile applications which are widely accessible, private networks are better for backoffice, internal applications where a higher level of security and performance is required. After hybrid, 29.5 percent are using private connections and 16.6 percent are using public Internet. 54.1% 16.4% 29.5% HYBRID (COMBINATION OF USING BOTH PUBLIC AND PRIVATE CLOUD) PUBLIC INTERNET PRIVATE NETWORK Security is a priority for everyone. But choosing a 100 percent private cloud solution is not always the best choice. Employing a flexible hybrid cloud environment is ideal for most IT departments: Leave the privacy to the cloud connection. 8

9 7 WHAT ARE THE BIGGEST BARRIERS/CONCERNS OF MOVING TO THE CLOUD? As the risk of a data breach increases with moving to the cloud, it s not surprising that the number-one barrier of moving to the cloud is Security. In our survey, 65.1 percent of IT professionals checked this as their primary concern. Loss of control and application performance were also marked as significant barriers. Loss of control goes along with security: Enterprises want to ensure that there is no chance of their internal applications or data being compromised. As many applications are designed for on-premises data centers, moving them to the cloud can increase latency and I/O throughput. This is why application performance is so important and with the right network connection, it can be addressed and optimized. 65.1% 26% 31.5% 26.7% 28.1% 23.3% 11.6% 11.6% SECURITY LACK OF IN-HOUSE EXPERIENCE LOSS OF CONTROL VENDOR SELECTION TOO MANY APPLICATION OTHER PERFORMANCE PRIORITIES APPLICATION RELIABILITY OTHER As an IT professional, you are fully aware that a security breach is something your enterprise cannot afford. There are risks with any cloud deployment, but the proper network connection can reduce such hazards. A private network that is completely separate from the public Internet and directly connected to cloud providers, is one of the most secure solutions out there. 9

10 WHAT WE (AND HOPEFULLY YOU) LEARNED Cloud computing has changed dramatically in the last few years, and IT professionals everywhere continue to find effective, secure methods to utilize the cloud. But they re not doing it alone. The network connection is a vital component, and securely connecting requires a competent partner. Level 3 Cloud Connect Solutions offer lowlatency guarantees, flexible connectivity and proven security. It s everything you need for a successful cloud migration. Learn About Level 3 Cloud Connect Solutions [1] Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting. Lydia Leong and Ted Chamberlain Page 1. [2] The Gartner 2014 Cloud IaaS Magic Quadrant. Lydia Leong Page 1. leong/2014/05/30/the-2014-cloud-iaas-magic-quadrant/

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