What Makes A Good Hosting

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1 What Makes A Good Hosting Provider? Tiny Haynes Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."

2 Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day. 1

3 Key Issues 1. What does the current hosting market place look like? 2. What are the likely challenges over the next 3 years? 3. What are hosting companies doing to stay relevant? 2

4 What does the current hosting marketplace look like? 3

5 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Rest of Spain Sweden Switzerland United Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Rest of Spain Sweden Switzerland United Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Rest of Spain Sweden Switzerland United European Market Forecasts ($M) Hosting YR YR YR YR YR 2016 YR 2017 YR Co-location 2011 YR 2012 YR 2013 YR 2014 YR 2015 YR 2016 YR 2017 YR IaaS 2011 YR 2012 YR 2013 YR 2014 YR 2015 YR 2016 YR YR

6 Magic Quadrant for European Managed Hosting

7 Ability to Execute Criteria Product/Service Overall Viability (Business Unit, Financial, Strategy, Organization) Sales Execution/Pricing Market Responsiveness and Track Record Marketing Execution Customer Experience Operations Weight High Standard High Standard Low High Standard 6

8 Completeness of Vision Criteria Market Understanding Marketing Strategy Sales Strategy Offering (Product) Strategy Business Model Vertical/Industry Strategy Innovation Geographic Strategy Weight High Standard Standard High Low High Standard Standard 7

9 What are the likely challenges over the next 3 years? 8

10 Hype Cycle for Cloud Computing 2013 expectations Big Data Integration PaaS (ipaas) Community Cloud Cloudbursting Cloud Services Brokerage Cloud Application Development Services Open-Source Cloud Management Platforms BPaaS Private PaaS Cloud API Management Hybrid IT DevOps Cloud Security Frameworks Software-Defined Anything Cloud MDM Hub Services Cloud IMDG Services Business Analytics PaaS (bapaas) Cloud Business Cloud Management Platforms Hybrid Cloud Computing Platform as a Service (PaaS) Cloud BPM Personal Cloud IaaS+ Application PaaS (apaas) Private Cloud Computing Elastic Multitenancy Browser Client OS Cloud Office Systems Database Platform as a Service (dbpaas) Enterprise Cloud Private IaaS Cloud-Based Security Services Real-Time Infrastructure Public Cloud Storage Cloud Computing Infrastructure as a Service (IaaS) Cloud/Web Platforms Cloud Advertising Sales Force Automation SaaS Virtualization Software as a Service (SaaS) Innovation Trigger Peak of Inflated Expectations Plateau will be reached in: Trough of Disillusionment time Slope of Enlightenment less than 2 years 2 to 5 years 5 to 10 years more than 10 years As of July 2013 Plateau of Productivity obsolete before plateau

11 Magic Quadrant for Cloud Infrastructure as a Service August

12 Public Cloud Is Being Deployed to Support Agility Have made significant cloud investments Main Reason Other 12% Quality 10% Innovation 13% Cost 14% Agility 50% Payback "Potential benefits of cloud include cost savings and other capabilities, such as agility, innovation and time to market. It is often the latter that is the real impetus. These benefits are often less quantifiable, but are more and 11 more commonly cited as the true drivers and value of cloud."

13 The Convergence of Suppliers IaaS MH DCO 12

14 Security Breaches Are Expensive The Cost of Recovery 1.5 million credit card records stolen (April 2012) PlayStation Network data breach (April 2011) $171M 6 million passwords stolen (June 2012) 780,000 Medicaid records stolen (March 2012) 1.9 million Social Security numbers stolen (Oct. 2012) SecurID intellectual property breach (March 2011) $66M $94M $0.5-$1.0M $3.4M $14M LinkedIn State of Utah State of South Carolina RSA Global Payments Sony

15 Gbps DDoS Attacks Grow in Size/Frequency Source: Arbor Networks 2012 Infrastructure Security Report

16 What are hosting companies doing to stay relevant? 15

17 Sourcing: Time for Change 70% 57% Price/ Price Structure 55% Service Quality will change their technology and sourcing relationships in the next 2 to 3 years for a variety of reasons: 52% Flexibility 46% Ability to Partner 16 45% Innovation 28% Scale 46% need to work with new categories of partners, e.g.: Mobility Cloud Digital Agency Big Data Analytics Social "IT sourcing strategies must be structured to enhance IT agility and address the needs of digital businesses. Organizations that don't adapt their strategies, and the competencies required to execute them effectively, will fail to achieve the value opportunities presented by a highly digitalized future." Ian Marriott, Gartner Research VP 21

18 Moving up the Value Chain IaaS PaaS SaaS InfaaS BPaaS Process Client p Client Client Client Client p p p p Information Application i i i i i A A A A A Platform P P P P P Infrastructure I I I I I Service Consumer Responsibility Service Provider Responsibility 17

19 Move to Managed GTLD and other domain names Security Platform Application VDI Collaboration 18

20 Industry Adoption Shows Clear Trends Industry Financial Services Telecommunications Government Education High Tech Energy & Utilities Healthcare Retail Adopting Private cloud PaaS and IaaS Community cloud and Service Providers Community cloud and SaaS and collaboration Panicky migration from vendor to provider Not much happening Public records, medical processes Brokerage & Messaging Integration Advanced Heavy Moderate Measured Lagging 19

21 Enter Hybrid The 3 Buckets Test/Dev Web Application Collaboration ERP Data Compliance Legacy Non x86 Public Cloud Private Cloud On Premise/Colocation 20

22 Definition: Cloud Services Brokerage Definition: CSB is a role in which a company or other entity adds value to one or more (generally public or hybrid, but possibly private) cloud services on behalf of one or more consumers of those services. VAR, IT Distributor * Aggregation Brokerage 50% 75% 100% Customization Brokerage ISV, System Integrator, PS * Cloud services brokerage has three primary roles * = Alignment with traditional terminology These things are part of the ecosystem EDI VAN, B2B/EC of cloud services the atmosphere! 25% Integration Brokerage Provider, SI * Other roles, like arbitrage and governance brokerage exist as well

23 In Summary Service Stack Cloud Vertical 22

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