Building confidence in Cloud services, understanding the drivers of hybrid Cloud.
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1 Building confidence in Cloud services, understanding the drivers of hybrid Cloud. Alex Hilton 2013 MARKET RESEARCH
2 About the Cloud Industry Forum The Cloud Industry Forum (CIF) is a membership led industry body that champions and advocates the adoption and use of Cloud-based services by business. 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 Service Provider (CSP) Code of Practice that provides transparency of Cloud services to enable users to assure clarity and confidence in their choice of provider
3 Expert Special Interest Groups Legal Conor Ward Hogan Lovells Chair, CIF Legal Forum Andy Burton CIF Research Programme Research Standards Ian Osborne Intellect Chair Industry Standards Martin Prendergast Concorde Software Chair Software Value Mgmt Value Mgmt Certification Frank Jennings DMH Stallard Chair CIF Governance Board
4 A trusted voice for industry Legal Research Standards Value Mgmt Certification
5 State of the nation(s) EU & UK European Commission estimates that Cloud computing will boost EU GDP by 600Bn by 2020 Generate 2.5 million new jobs by 2020 UK tech industry now employs 1.5m people UK tech sector is biggest net exporter of G7 69% of UK businesses are using a Cloud service Very high satisfaction levels Perceived security risks remain biggest barrier Yet no common standards framework for service delivery exists
6 2013 CIF research Continued growth It s still new and still disruptive 69% of businesses are using a Cloud service 91% are very satisfied
7 UK Cloud Adoption & Outlook Market Status 1.66M SMBs in the UK (1 to 250 employees) UK SMB Cloud Market in 2012 = 1.2B (all cloud categories) 20% CAGR over the next 3 years ( 2B in 2015) Between now and the end of 2015, replacement of in-house servers with new solutions could add more than 400,000 new cloud servers to the market for the SMB market Source: Parallels SMB Cloud Insights for the UK Source: Cloud Industry Forum Aug 2013
8 All sounds great. So what s the problem? The opportunity is broad and the Cloud brings benefits. Breadth and variety of end customer is complex. Cloud adoption by SMBs slower than anticipated by need, perception & channel Requires active promotion and education of the market by the channel for rate of adoption to increase Traditional SMB Reseller community not aligned with cloud proposition Some parts of the Channel reluctant to stimulate demand Business model changes for resale channel partners are significant. Most solutions/messaging plays out to SP s and Enterprises not the SMB
9 Understanding the Objectives achieved in Cloud Migration
10 Sensitivity to data location is diminishing but still an issue
11 IT staff levels remain largely unchanged post cloud adoption
12 Hybrid IT CIF research Cloud-based service provision remains on an upward trend. Barriers to adoption do remain and need to be overcome. CIF research highlighted that the 86% of organisations still operate an on-premise server room or data centre Investment in on-premise IT continues together with Cloud adoption. The Hybrid environment is a direct response to some of the concerns and barriers to Cloud adoption.
13 Barriers CIF research Applications that are not yet being widely accessed as a Cloud service include: Accounting and finance (67%) Personnel and payroll (63%) 53% of companies regard perceived loss of efficiency and control as a barrier 52% raise data security concerns 41% highlight existing investments made in on-premise solutions 40% say uncertainty over data protection obligations
14 End user concerns moving to the Cloud Most significant concerns about cloud adoption are: Data security Data privacy Data sovereignty Certification can reduce the concern Source: Cloud Adoption and Trends for 2012, White Paper 3, CIF Pan European discussions agree the need for a common standard in cloud services.
15 A Short Cut: CIF Certified CSP s Code of Practice helping CSPs overcome their customer concerns
16 What is the CIF Code of Practice? TRANSPARENCY CAPABILITY ACCOUNTABILITY
17 The Three Pillars of the CIF Code of Practice Transparency Corporate identify and responsibilities Full scope of operations Compliance with Code Third-party coverage of Code Commercial terms Personnel profile Customer migration paths Service dependencies Complaints and escalation procedures Accountability Compliance with Code Behaviour with customers Capability Information security management (including data protection) Service continuity management Service level management Supplier management Software license management (including license compliance) Complaint handling Environment impact management
18 The CIF CoP in Action
19 Proven Benefit of Certified CSP s UNIT4 Certified October 2011 Time to become certified: 3 weeks Industry/Sector: Global Business Software Provider Anwen Robinson, Managing Director Put simply, the process itself enables professional cloud service providers to demonstrate with clarity their ethics, practices and processes through an independently recognised and credible third party in order to build trust by association with prospective customers.
20 Cloud Implementation is not all Self Service Most end users rely on third parties Satisfaction levels are high Many see room for efficiency improvement for future cloud service roll outs Key Stats on Implementation approach Source: Cloud Industry Forum Roll out was perceived to be swifter than an on-premise solution
21 Summary Cloud is the right bet 69% adoption 91% satisfaction The future is hybrid IT Certification and confidence are essential Code of Practice Transparency, Accountability, Capability A connected and unified approach between EU and Asia
22 Thank You! Download the research papers from A new era in Hybrid IT: Contact: Cloud Industry Forum info@cloudindustryforum.org
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