A Nemertes Research Conference The New Technology Game Changers: Big Data, Cloud, and SDN

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2 A Nemertes Research Conference The New Technology Game Changers: Big Data, Cloud, and SDN John Burke Principal Research Analyst & CIO Nemertes Research July 29, 2014

3 About Nemertes ± US-based research and consulting firm specializing in evaluating the business impact of emerging technologies Unified Communications and Collaboration Mobile and Network Services Big Data, Analytics, and Virtualization Security and Compliance Contact Center and Customer Engagement Enterprise Trusted Advisor and PilotHouse program ET Innovation, Transformation Cost Models and Total Cost of Ownership Cloud Delivery ± The only research firm that consistently benchmarks 200+ IT organizations ± Staffed by former IT and business practitioners with 20+ years experience ± Organized to deliver customized research findings to clients in real-time ± Independent and objective: We serve only our clients. No investment from, no stock in, no board positions on companies we cover ± Founded in 2002; consistently profitable ± Registered Women-Owned Business 1-

4 The Big Data Ideal Still Spreading Nearing two-thirds! (projected)

5 Big Data Adoption Curve Ubiquitous Rare Evaluate and Monitor Strategize and Execute Operate and Refresh Big Data Budget Hadoop Big Data Team Big Data Initiative Quick Prototyping Big Data Innovation Lab Supported Open Source Data Integration Tools Conservative IT Culture Bleeding Edge

6 Conservative, Aggressive Focus: Understanding Selves Do better Sell more Get Cheaper

7 Big Value in Security, Risk Management, Better Performance Other includes being able to take on new work faster; better protecting privacy; and broadening use of analytics output making the organization more data-powered. Greatest successes

8 More Skills Success Factors, More Big Data Success Thirty percent want more. Only 8% confident they can find more data scientists when they want them. So, they train. Skills success factors include ± training sys admins and programmers (not BI staff) ± on-premises, outsourced training ± commercially supported management tools over free software ± analytical tools with methodological guidance.

9 Mix of Big Data team seeking out and Lines of Business Big Data Success Factors bringing forward new projects + Having a Big Data Innovation Lab + Quick prototyping for Big Data projects + Increasing number of data scientists relative to number of staff on Big Data team + Focus measures of value on outward-facing subjects like markets to enter or exit + Focus on fast and precise data Adding staff to the Big Data team Bridge the skills gap by training non-bi staff using onsite but outsourced training; layering commercially supported tools over freeware; getting analytical tools that assist in analysis; and avoiding cloud solutions (unless an SMB or a single LoB) +

10 More Big Data Success Factors Focus initial efforts on insight into current operations and their effectiveness, efficiency + Using Hadoop, supported or not Using broad set of non-hadoop tools Using visualization tools Using data integration tools

11 Public Cloud Adoption Ubiquitous Rare Evaluate and Monitor Strategize and Execute Operate and Refresh SaaS-to-SaaS Integration Public IaaS Paas SaaS Using Internal SSO Cloud SDS SaaS-to-Internal Integration Cloud VDI Cloud Big Data And, of course, SaaS is ubiquitous! Ninety-seven percent use SaaS. Conservative IT Culture Bleeding Edge

12 The New Normal: Infrastructure as a Service, With Platform as a Service Close Behind PaaS Azure, AWS, and SalesForce get confidence, buy in! (Projected)

13 Midsize Organizations Use Least SaaS

14 More Than One In Four Integrate SaaS to SaaS to CRM is a common SaaS-to- SaaS integration, as is calendar to project management.

15 Half Extend In-house SSO To SaaS SSO for SaaS is a win based on security and ease of use for staff, and overall a success factor. 12% use SSO as a Service.

16 Public Cloud Success Correlations Take around six weeks to pick technologies, 13 to pick vendors + Use SSO or SSOaaS for SaaS + Use ESB to integrate SaaS apps with each other or internal apps + Create sourcing strategy + Have sourcing decision instrument to help with sourcing decisions Create dedicated cloud services team Focus on cost reduction via SaaS

17 Public Cloud Success Correlations Have Line of Business initiate relationship, hand off to IT IT selects or consents to SaaS vendors, pays for all, provides support + Have procurement and legal departments involved in cloud provider negotiations Have formal security review process and sign-off on cloud workload placement + Encrypt data in public cloud at rest and in motion +

18 Private Cloud and Data-Center Adoption Ubiquitous Rare Evaluate and Monitor Strategize and Execute Operate and Refresh Private IaaS Granular Accounting: Storage Private Cloud Granular Accounting: Network Cloud Management Stack Granular Accounting: Compute Granular Accounting: Admin Converged DC Infrastructure Engineered Solutions Conservative IT Culture Bleeding Edge

19 Private Clouds Pulling In Workloads: Most Have More Than 40% In Private Cloud 54.5% have, plan a private cloud this year.

20 Cloud Management Stacks Coming Back Slowly Early enthusiasm for OpenStack, vcloud Director was tempered by experience and a decision to put them down and try again when they are more mature. (Projected)

21 Most Have, Plan IT Self-Service In Private Cloud Only 21% have self-service outside IT this year, though another 32% plan it this year or next.

22 More Than A Quarter Using, Planning Some Converged Infrastructure These are mostly large and 2-to-1 more aggressive organizations.

23 Having Private Cloud Using Converged Infrastructure What is the state of deployment of private cloud in your data center(s)? Currently Using Planning for 2014 Planning for 2015 Evaluating No Plans But, private cloud is the most common single use case, and all CI users do have private cloud in place.

24 VDI: Sharp Rise From 2013 But Leveling Off 6% using, planning Desktops as a Service (2013 projection) (projected) Many organizations added VDI as they finally saw cost and performance data that met their needs, or made the Windows 7/8 migration, or expanded support for mobile and remote users.

25 Most Microsoft Users Had Planned On Something Else Microsoft users found other platforms were too costly for them, or sought deeper Microsoft integration.

26 IT Plans VDI Surge: Pushing to More Users (projected) VDI tools are mature enough, IT is able to engineer for acceptable performance more reliably, and solutions are economical enough to make VDI more attractive. Organizations are evolving new user and application profiles that are more VDI friendly, too.

27 Tablets, Smartphones: Beneficiaries, Drivers

28 Software Defined Networking: Still Next Big Thing SDN: Separate the Data Plane from the Control Plane Traditional Network Network Devices Control Plane Data Plane Network Applications (e.g. firewall, load balancer, optimizer) Northbound APIs SDN Controller(s) Controllers tell data plane how to do it Applications tell controller what they need the network to do Data Plane Devices (switches) SDN

29 Network Function Virtualization (NFV) NFV: network services delivered via private cloud for virtual appliances. Firewall Remote Access Load Balancer etc Virtualized Network Functions (VNFs) Virtual Compute NFV Infrastructure Virtual Storage Virtualization Layer Virtual Network Management and Orchestration Compute Storage Network Commodity Hardware Resources

30 SDN, NFV: Most Not Ready Yet Most use, plan SDN in the data center, only a third among data centers or branches. Flexibility is the main driver.

31 The Plan For 2014, 15 Research SDN and NFV Pilot SDN and NFV Do Big Data for Security Converged Infrastructure VDI IaaS Desktops as a Service SSO for SaaS SaaS Integration Big Data as a Service Cloud Management

32 A Nemertes Research Conference Thank You! Questions?

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