Building confidence in Cloud services
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1 Building confidence in Cloud services Alex Hilton 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 A trusted voice for industry Legal Research Standards Value Mgmt Certification
4 Cloud Computing definition Cloud Computing is a term that relates to the IT infrastructure and environment required to develop, host or run IT services and applications, on demand, with consumption based pricing, as a resilient service. It provides resource and services to store data and run applications, from many devices, anytime, anywhere, as a service over the internet. The services can in turn be scaled up and down as needed to meet a customer s variable operational needs, ensuring maximum cost efficiency
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 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 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 Cloud brings clear benefits. Breadth, variety, migration and integration requirements of customer is complex. Cloud adoption by SMBs is slower than Enterprise Requires active promotion and education of the market 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 What s being used.
10 Understanding the Objectives achieved in Cloud Migration
11 Sensitivity to data location is diminishing but still an issue
12 Practicalities still set the agenda for cloud solution selection Change is need based. Adoption rate faster in last 6 months Clear evidence and balanced ROI to instigate change
13 IT staff levels remain largely unchanged post cloud adoption
14 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
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? T R A N S P A R E N C Y C A P A B I L I T Y A C C O U N T A B I L I T Y
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 Source: Cloud Industry Forum Cloud Implementation is not all Self Service Most end users rely on third parties Key Stats on Implementation approach Satisfaction levels are high Many see room for efficiency improvement for future cloud service roll outs Roll out was perceived to be swifter than an on-premise solution
19 Summary Cloud is the right bet 69% adoption 91% satisfaction The future is hybrid IT Certification, education and confidence are essential Code of Practice Transparency, Accountability, Capability
20 Thank You! A new era in Hybrid IT: Contact: Download the research papers from Cloud Industry Forum info@cloudindustryforum.org
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