TRENDS IN CLOUD COMPUTING

Transcription

1 TRENDS IN CLOUD COMPUTING FULL REPORT RESEARCH FOURTH ANNUAL AUGUST

2 4 th $Annual$Trends$in$Cloud$Computing:Section1 1 AboutthisResearch CompTIA s4 th $Annual$Trends$in$Cloud$Computing$studybuildsonpreviousCompTIAresearchinthe cloudcomputingspace,furtherexploringtrends,challenges,andopportunities.theobjectivesofthis studyinclude: B CollectinformationonendBuserpurchasedriversand/orinhibitors B AssessdepthofcloudusageandwaysinwhichitischangingITbehavior B Tracktheexperienceofchannelpartnersofferingcloudsolutions,buildingcloudpractices B GaugechannelperceptionsofendBuserpurchasedriversandorinhibitors B Measureimpactofcloudcomputingonchannelroles/vendorrelationships B Assesstheneedfortrainingand/orstandards Thisstudyconsistsofsixsections,whichcanbeviewedindependentlyortogetherassectionsofa comprehensivereport.theindividualsectionsandfullreportcanbeviewedatthecloudcomputing researchpageonthecomptiawebsite. Section1:MarketOverview Section2:ChannelBusinessModelAnalysis Section3:ChannelRelationships:Vendors,Customers,andDistributors Section4:EndUserBusinessModelAnalysis Section5:EndUserCloudMigrationIssues Section6:CloudChallengesandOpportunities Thisstudywasconductedintwoparts. PartI:quantitativeonlinesurveyof501ITandbusinessprofessionalsintheUnitedStatesinvolvedinIT decisionbmaking(akaendusers).datacollectionoccurredduringjune2013.themarginofsampling erroratthe95%confidencelevelfortheu.s.resultsis+/b4.5percentagepoints.samplingerrorislarger forsubgroupsofthedata. PartII:quantitativeonlinesurveyof400ITfirmsintheUnitedStates(akachannel).Datacollection occurredduringjune2013.themarginofsamplingerroratthe95%confidencelevelfortheu.s.results is+/b5.0percentagepoints.samplingerrorislargerforsubgroupsofthedata. Forbothsurveys,CompTIAworkedwiththeresearchfirmResearchNowtofacilitatedatacollection usinganindependentpanel.aswithanysurvey,samplingerrorisonlyonesourceofpossibleerror. WhilenonBsamplingerrorcannotbeaccuratelycalculated,precautionarystepsweretakeninallphases ofthesurveydesign,collectionandprocessingofthedatatominimizeitsinfluence. CompTIAisresponsibleforallcontentcontainedinthisseries.Anyquestionsregardingthestudyshould bedirectedtocomptiamarketresearchstaffatresearch@comptia.org. CompTIAisamemberoftheMarketingResearchAssociation(MRA)andadherestotheMRA scodeof MarketResearchStandards.

3 TRENDS IN CLOUD COMPUTING SECTION 1: MARKET OVERVIEW RESEARCH FOURTH ANNUAL AUGUST

4 KeyPoints AscloudcomponentsarebecomingmoreprevalentinITarchitectures,morecompaniesarerelying oncloudcomputingforbusinessprocessessuchasstorage(59%),businesscontinuity/disaster recovery(48%),andsecurity(44%).thisstrongusageandstrongmarketindicatorsshowthatcloud computingisbecomingadefaultpartoftheitlandscape. Althoughadoptionratesarehighandmarketnumbersarepositive,thereisstillconfusionrelatedto cloudcomputing.thisconfusionwillhinderendusersandchannelfirmsfromfullytransforming theiritpracticesandofferings.only46%ofchannelfirmswithcloudofferingsdescribedtheircloud businessascompletelymature anestablished,strategicpartofbusinessplans. Theimpactofcloudcomputingwillcontinuetodrivecompaniestoclarifyissuesaroundusageand movetowardsgreatermaturitywiththemodel.endusersstillreportawiderangeofbenefits,led bytheabilitytocutcosts.approximatelyhalfofchannelfirmsseefasterrevenuegrowthandlarger profitsfromcloudofferingsthanfromtraditionalofferings. 4 th $Annual$Trends$in$Cloud$Computing:Section1 2

5 CloudTechnologyMovingIntotheMainstream InCompTIA sit$industry$outlook$2013report,thetrendforcloudcomputingwasthatcompanieswould begintakingthetechnologyforgranted.thisprojectionmeantthatcompanieswouldbeginmoving awayfromcloudtransitionsasstandaloneprojectsandbeginviewingcloudcomponentsaspieces withintheiroverallitarchitecture. Datafromthe4 th $Annual$Trends$in$Cloud$Computingstudyseemtoconfirmthisbehavior.While80%of endusercompaniesinlastyear ssurveyclaimedtousesomeformofcloudcomputing,thatnumber climbedto90%thisyear.furthermore,companiesareestimatinglargerpercentagesoftheir infrastructureandapplicationsbeingcomprisedbycloudsystems. "#$%'()*(+',-.#,()/0.%,123'(3"4567%,.5( "$ ")$ %%#$ )*#$ )#$ '#$ #$ (#$ "#$ "#$ "#$ $+,-./01234/$ #0)"#$ )#0("#$ ("#0""#$ +,-./01234/$ +"40/.8("#$*)9:,( "# $%'()$*+,-.$/$0)1'-$0123'45( AscloudcomponentsarebecomingmoreprevalentinITarchitectures,morecompaniesarerelyingon cloudcomputingforbusinessprocessessuchasstorage(59%),businesscontinuity/disasterrecovery (48%),andsecurity(44%).Thisisbeingaccomplishedthroughuseofallthreemodelsforcloud systems SoftwareasaService(SaaS),PlatformasaService(PaaS),andInfrastructureasaService (IaaS).Yearoveryear,adoptionratesforallthreemodelshasincreased,especiallyamongmediumBsized businesses(seeappendixfordetails). 4 th $Annual$Trends$in$Cloud$Computing:Section1 3

6 WhilefutureoutlooksontheuseofIaaS/PaaSindicatethatmomentumisslowing,thisisindicativethat themarketisreachingasaturationplateau,notasignthatcloudcomputingisfallingoutoffavor.only3 outof10businessesthatarenotcurrentlyusingthosemodelsplantodosointhefuture,a10%drop fromlastyear.thedropcomesmostlyamongsmallandmediumbusinesses largebusinessinterest remainedflatat33%.thesecompanieshaveextensiveinfrastructureandgreaterrequirementsfor test/devenvironments,socontinuedinteresthereshowsthatlateadoptersclearlyseepotentialin movingtoacloudmodel. Marketsizingestimatesalsoindicatestabilityandmaturity.Thefollowingdatapointsallsuggestrobust spendingoncloudservices: Gartnerestimatesthattheglobalpubliccloudservicesmarketwillaccountfor$131billion inrevenuein2013,an18.5%increasefrom2012.thisincludesdirectspendingonthethree primarycloudmodelsaswellasindirectspendingonbusinessprocessoutsourcingthatis offeredfromacloudfoundation. AccordingtoIDC,worldwidespendingonhostedprivatecloudsolutionswillgrowata compoundannualgrowthrateofover50%during2012b2016,eventuallytotaling$24billion inrevenueby2016.thesolutionsincludebothdedicatedprivateclouds,wherephysical infrastructureisassignedtoasingleuser,andvirtualprivateclouds,whereprivateclouds forasingleuserarebuiltvirtuallywithinapubliccloudprovider. AnalysysMason aresearchconsultancyfocusedontelecom,media,andtechnology predictsthatenterprisecloudservicesrevenuewillreach$31.9billionby2017.theyinclude onlysaasandiaasinthisprojection.intheirstudyyearboverbyeargrowthslowsfrom17%in 2013tolessthan5%by2017,butemergingmarketswillexperiencegreatergrowth, accountingforslightlymorethan10%oftheoverallcloudspendby2017. Individualcloudprovidersdifferintheirapproachtoreleasingfinancialinformationasthey contendformarketposition,butcloudservicesareclearlyplayingsignificantrolesinoverall operations.amazonchoosestoplaceamazonwebservicesunder otheroperating segments ratherthanbreakoutthedetailsseparately,andmcquarriecapitalestimates thatawswillgenerate$3.8billioninrevenuein2013.incontrast,microsoftpubliclytouted theircloudservicesasa$1billionbusiness,andibmreportedthatcloudrevenuegrewover 70percentfrom1Q2012to1Q2013(withoutdisclosingtheactualrevenuenumber). Itseems,then,thatcloudcomputinghasbecomewellestablishedasanoptionforIToperations. TwentyBsevenpercentofcompanieswithcloudaspartoftheirarchitecturehavebeenusingcloud solutionsforthreeyearsormore,andtheyhavemovedpastexperimentsandtowardsaviewofcloud technologyasagivenpieceoftheiroverallinfrastructure. 4 th $Annual$Trends$in$Cloud$Computing:Section1 4

7 4 th $Annual$Trends$in$Cloud$Computing:Section1 5 CloudBusinessModelsStillElusive Theimpressivemarketnumbersandhigh adoptionratesmaynottellthewhole story,though.therearemanyfactors thatcouldstillbecontributingto confusionaboutcloudcomputing(see sidebar).companiesmaynotactuallybe usingcloudsolutionstotheextentthey believe,andtruebusiness transformationwillcertainlylagsimpler technologyadoption.companiesthat arecompletelycomfortablewithcloud computingconceptssuchasselfbservice anddynamicresourceallocationwill adoptoperationalmodelsthatdiffer greatlyfrommodelsthatrelyonmore traditionalitsystems.movingtowards thesenewmodelsismoreofachallenge thantransitioningselectedsystemsinto cloudtechnology. CompTIA sdatafromchannelfirms demonstratesthisdifficulty.of400firms whooffercloudsolutions,only46% describedtheircloudbusinessas completelymature anestablished, strategicpartofbusinessplans.the remainderdescribedtheircloudbusiness eitherasaportionofthebusiness runningalongsideotherofferingsoras pilot/evaluationinitiatives.asboth channelfirmsandenduserstruly embracecloudoperations,therewill belessdistinctionbetweencloud offeringsandnonbcloudofferings,and thefinalsolutionwillsimplybe producedregardlessofthe infrastructureused. Confusionamongenduserswilldelay theirmovetoacompletecloud businessmodel.ifacompany sit solutionsaremeetingtheirneeds,it maynotbecriticallyimportanttoknow thedifferencesbetweenhosted offeringsvs.cloudofferings.ifthe SourcesofConfusionintheCloudMarket Cloudwashing:Asproductsandservicesare increasinglylabeledwith cloud inorderto capturethegrowingmarket,thecharacteristicsof atruecloudofferingbecomelessdistinct. Downplayingthecloudtrend:ManyIT professionalsorindustrywatchersarequickto dismisscloudas nothingnew. Whilethereare aspectsofcloudthatcanbefoundincomputing modelsdatingbacktotheintroductionofthe mainframe,therearealsouniqueaspectsthatmay getoverlookedwithoutthepropereducation. Hypeandfatigue:Someendusersmaybeoverly eagertodescribetheirinfrastructureascloudb basedtohavetheappearanceofkeepingupwith thetrend.similarly,someusersmaysimplyapply thelabeltotheirsystemswithoutmuchthoughtin anefforttoavoidanyfurtherdiscussiononthe topic. "#$%'"#()*+,**#(-"%./0"+*.(1".*-(2*3'+( "#$ %"#$ "#$ '#$ %%#$ %%#$ 4"(.'5*3*#6*/7"#8+(9#",( 1'#"3(.'5*3*#6*( 1:;"3(.'5*3*#6*( '"($ '"'$ <"%36*=( "# $%'()$*+,-.$/$0)1'-$0123'45( ):*=(>??(@A<A(BC(:#.(D%'#*(*E*6%FG*(H*#.(%*3I(

8 4 th $Annual$Trends$in$Cloud$Computing:Section1 6 companydecidestopursuecloudbspecificbenefits,though,theymaybesurprisedtofindthattheir systemsarenotascloudbenabledastheymighthaveimagined. Thisconfusionisalsopresentinthegeneralecosystem,asevidencedbycloudproviderbrand awareness.morethan9in10endusersbelievethereisahighormoderatedegreeofdifferentiation amongcloudproviders,buttheperceptionoftopprovidersfavorstraditionalitcompanies(suchas Microsoft,IBM,andHP)overcompaniesthataregenerallyregardedasleaderswithinthecloudindustry (suchasamazonandrackspace).whilethetraditionalcompaniesdooffercloudsolutions(andthe awarenesslevelsmaybeagoodindicatorfortheirfutureprospects),lowerawarenessofleadingcloud providerslikelyimplieslowerawarenessofleadingbedgeinnovations. Tobetterdescribethemanynuancesofthecloudtrend,bothfromtheenduserperspectiveandtheIT solutionprovider/cloudproviderperspective(aka thechannel ),thisreportwillusethefollowing models.seesections2and4for additionaldetailsandanalysis. Experiment* Non-cri/cal* Use* Full* Produc/on* Transformed* IT* IaaS$ $PaaS$ $SaaS$ Private$ $Hybrid$Clouds$ Payment$Models$ Educa:on$ Transi:on$ Integra:on$ Workflow$Change$ Customiza:on/$ Rearchitecture$ Policies/ Procedures$ Proof$of$concept$ Cloud$Adop:on$Progression$Model$for$End$Users$ Public$Clouds$ Provider$Switching$ Security$ Build Provide/ Provision Enable/ Integrate Manage/ Support IaaS$ $PaaS$ $SaaS$ Public$ $Private$ $Hybrid$Clouds$ Cloud$Aggrega8on$ $Brokerage$Services$ Procure$HW$+$ SW;$add$ exper8se$to$ build$cloud$ Resell$ WhiteClabel$ Hos8ng$/$$Direct$ to$customer$ Deployment$ Consul8ng$ $Advising$ $IT$Solu8ons$ Integra8on$ Break/Fix$ Managed$Services$ Customiza8on$/$ Development$ Architecture$/$ Design$ Cloud$Business$Models$Framework$for$the$Channel$ ChannelPerspective EndUserPerspective

9 4 th $Annual$Trends$in$Cloud$Computing:Section1 7 ImpactofCloudComputing Ascompaniesgainmoreclarityaboutcloudsystemsandmovetowardsamainstreamviewofcloudas anitoption,theimpactsofmovingtoacloudmodelarebeingseenacrossthetechnologyandbusiness landscape.continuingatrendfrompreviousyears,manyrespondentsviewcloudasthebestoptionfor avarietyofreasons,withnosinglereasonstandingoutasthelonedriverorbenefit.also,therealized benefitsaretightlyclusteredtogether,lendingweighttotheargumentthatcloudcomputingoffers manyadvantages. Researchfromcloudmanagement companyrightscaleshowsthatcloud benefitsaremorewidelyexperienced ascompaniesgainmaturitywiththe cloudmodel,andcomptia sdata corroboratesthisfinding.lookingat thebenefitof betteroptionfor multiplereasons incomptia s survey,30%oflateadopters(less thanoneyearofcloudexperience) rankthisasabenefit.thisnumber risesto39%withmiddleadopters (between1and3yearsofcloud experience)andjumpsto56%for earlyadopters(morethan3yearsof cloudexperience).clearly,moretime spentusingcloudsystemsleadstoa widerappreciationoftheadvantages theyoffer. Fromachannelperspective,themostrelevantimpactistheeffectcloudishavingonthebottomline.As expected,thematurityofafirm scloudofferingshasadirectcorrelationtothefinancialimpacttheyare seeing.twentybninepercentoffirmsthatdescribedtheirofferingsas notmature sawfastercloud revenuegrowthcomparedto54%of mature companies.forprofitmargin,thedifferenceiseven moredrastic 21%of notmature companiesseelargercloudprofitmarginscomparedto58%of mature companies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

10 "#$%''()#*+,-.#/((#01.+23(#4(3('5(# -678#9,1-#$)15:#;<(,+'=.## "#$%'()*(+,-".(/0%12#%$3+(4 502'.30(60'07$082#9+/ =>; "#$%'()*(+,-".(/0%12#%$3+(4 DE; ::; :<; B>; :C; >.8?)+.%(:# 9.8(,# >.8?)+.%(:# %+=%(,# 415=%)I#8%(#.-(# $)15:# #%+=%(,# /15,7(B#$1-6"CD.# "# $%'()$*+,-.$/$0)1'-$0123'45# Forbothendusersandchannelfirms,oneofthelargestchallengesinmovingtowardsmorerobust cloudarchitectureisfindingorbuildingtherightskills.accordingtoajointstudybyidcandmicrosoft, 1.7millioncloudBrelatedjobsworldwidewentunfilledin2012.Hiringmanagersciteddifficultyinfinding higherblevelskillssuchasbuildingmigrationplansorassessingtheriskofacloudtransition.datafrom BurningGlassTechnologiesLaborInsightsalsoshowsdemandforcloudskillsgrowing:from2011to 2012,thenumberofpostingsreferencingcloudgrewby30%.Overthatsametimeperiod,thenumber ofcoreitjobopeningsactuallydeclined,showinghowimportantcloudcomputingisinthemodernit landscape. ITworkersareawareofthisskillsgap.DatafromCompTIA s2 nd Annual$IT$Career$Insightsstudyshows thatcloudcomputingisthethirdbhighestskillareathatitprofessionalswouldliketodevelop.thetop areasarenetworks/infrastructureandservers,bothofwhicharecertainlyinvolvedincloudsolutions.as cloudcomputingbecomesevenmoremainstream,thedemandfortheproperskillswillcontinuetorise ascompaniesseektogainthebenefitsofthispowerfulmodel. 4 th $Annual$Trends$in$Cloud$Computing:Section1 8

11 Appendix R#'*V'B8*"+W7#+'D((8$,7-*%#' ""#$%'()* +,##** -$.,/* 012$3,* -$.,/* 4.51** -$.,/* "#$%##'()*+",-.$/0' 123' 123' 143' 567$8' 293' 2:3' 1:3' ;<'()#%,' 143' 223' 1=3' 1A3' 2C3' 143' 1A3' 1:3' 113' GE'67%7H6%/' 5I(%#'67%7H6%/' C23' L*"),M'B*6(NODP#' "# $%'()$*+,-.$/$0)1'-$0123'45' 7#M'2Q9'RSLS'ON'7%+'<"#$%##'I,"-.#'T%+'"#)#U' "#$%$'(()*+(()$ "##$%'()*+,%-).//012//0) IF#/(--$J$KLM$ 2'/%)8)*+$),%)9$:);$/#) IF#/(--$J$NOM$ 675) 635) 345) <=5) <75) 335) ),(--$ $./,"$ 0#123,$ $./,"$ 4(/5#$ $./,"$ ),(--$ $./,"$ 0#123,$ $./,"$ 4(/5#$ $./,"$ )%3/6#7$8%,9:';<"$ "# $%'()$*+,-.$/$0)1'-$0123'45$ 4 th $Annual$Trends$in$Cloud$Computing:Section1 9

12 TRENDS IN CLOUD COMPUTING SECTION 2: CHANNEL BUSINESS MODEL ANALYSIS RESEARCH FOURTH ANNUAL AUGUST

13 KeyPoints Halfofchannelfirmstodaydescribetheircloudbusinessas mature, whileanother4in10claimto havereachedatleastadegreeofcloudservices maturityalongsidetheirmoreestablishedlinesof business.bycontrast,just13%saidtheircurrentcloudbusinessisnotmatureatalltoday. CompTIAhasidentifiedfourprimarycloudbusinessmodelsforthechannel:Build, Provide/Provision,Enable/IntegrateandManage/Support.Sevenin10solutionprovidersinvolvedin cloudstartedwiththebuildbusinessmodelbutarenowinvolvedwithoneormoreoftheother threeframeworks.twentycsixpercentofthemareconductingbusinessacrossallfourareas. Sixin10channelfirmsinvolvedintheManage/SupportbusinessmodelhavecreatedITdashboards thatallowcustomerstotracktheircloudutilization,costsandothermetricstounderstandtheir investments. 4 th $Annual$Trends$in$Cloud$Computing:Section2 2

14 4 th $Annual$Trends$in$Cloud$Computing:Section2 3 BusinessTransformationwithintheChannel:PathtotheCloud Forthechannel spart,thetopicofcloudbusinessmodelshasbeenoneofthemostheavilydebated amongindustryfirms.thediscussionhasmovedfromearlycdayconcernsthatshiftingittothecloud wouldthreatenthechannel sveryexistencetotoday srealizationthatcloudhasinfactspawnedawide varietyofbusinessmodelsfromwhichtogainafootholdinthisarena. Perhapsthespateofbusinessmodeloptionsishelpingtodrivecloud scontinuedaccelerationacross theitchannelbothintermsofadoptionandstrategicvalue.comptia s4 th $Annual$Trends$in$Cloud$ Computingstudyfoundthathalfofsolutionproviderfirmstodaydescribetheircloudbusinessas mature, whileanother4in10claimtohavereachedatleastadegreeofcloudservices maturity alongsidetheirmoreestablishedlinesofbusiness.bycontrast,just13%saidtheircurrentcloudbusiness isnotmatureatalltoday.smallerfirms(47%),interestingly,weremorelikelytoselfcselectashavinga cloudoperationthatismatureandestablished,comparedwiththelargestcompanies(40%).thisis likelyduetothefactthatmanyofthesmallerfirmscouldverywellbe borninthecloud versuslarger andmoretraditionalsolutionprovidersthatwillneedtimetopivottoanewmodel. Thegrowingbusinessacumenaroundcloudalsocorrelatestothe levelofimportancebusinessesareplacingonthemodelasarevenue opportunity.onaverage,alittlemorethanhalfofchannelfirmsin thecomptiastudydescribethecloudrevenuetheygeneratedinthe pastyearasstrategicandcoretotheirbusiness,asopposedto simplyopportunisticdollars.inpastyears,cloudrevenuewas typicallyofamoretacticalnature,anadjuncttomoreestablished streamsofbusinesssuchasproducttransactionsorservices engagements.considerthesituationin2010,thefirstyearthe CompTIAstudywasconducted,whenbarelyablipofchannel companiesreportedheavycloudinvolvementandinfact,themajorityreportednoneatall. Giventhemoreadvancedinvolvementincloud,the2013researchcapturesadditionalnutsandbolts informationonchannelfirmbusinessmodelchoices,cloudcbasedprofitmargins,customerandvendor relationshipsandinitialentrypointstothecloudworld.onthatlastpoint,3in10respondentsdescribe themselvesas borninthecloud, startingfromscratchascloudcbasedentities.thatrevelation suggeststhatanumberofnewchannelcompanieshavecomeintoexistenceinthelastfewyears, perhapsoffsettingthewaveofattritionamongestablishedsolutionproviderfirms,someofwhomare reachinganaturalbusinessendoflifeandothersthathavebeenforcedtoshutterduetopoorbusiness decisions,suchasfailingtodiversify. While borninthecloud companiesaremultiplying,thefactremainsthatmostchannelfirmsthathave adoptedcloudhavedonesofromtheirexistingpositionresellingitproducts,servicesandconsulting. Nearlyhalf(45%)ofthesetraditionalsolutionprovidercompaniesdescribedtheirtransitiontocloudas rapid,whileanotherfourthcharacterizedtheiradditionofcloudsolutionsashavinghappenedgradually. Nomatterthepaceofchange,allofthesefirmshavehadtomakestrategicandtacticaldecisionsabout whichcloudbusinessmodelormodelstopursue.theybasethesedirectionalchoicesonanumberof factors,includingthecompany scurrentoperatingmodel,specificcapabilitiesandstaffing,aswellas focusareasinthemarket.tocaptureinformationabouttheircloudbusiness,thecomptiastudy presentedrespondentswithfourbroadtypesofcloudoperatingmodelsandaskedwhich,ifany,they haveengagedinduringthepastyear. LowStageofCloudMaturity: WhatistheFuture? 39% Confidentontherightpath 51% Somewhatconfident 8% Notthatconfident

15 4 th $Annual$Trends$in$Cloud$Computing:Section2 4 Businessmodeldecisionsposeatrickytaskforchannelfirmsmaking orhavingmade acloud transition.primaryconsiderationsdependonwhereacompanywantstogowithcloud:resella vendor scloudsolutions?aggregateandbrokercloudservicesfromavarietyofdifferentsources? IntegrateandcustomizecloudCbasedappsandservices,orsimplyselltheinfrastructuretoanenduser andprovideconsulting?eachofthesepathsandmorearepossibilities,asarevaryingrevenuemodels availableforall.fortycfivepercentofchannelcompaniesfromcomptia s4 th $Annual$Trends$in$Cloud$ Computingsaydeterminingtheappropriatebusinessmodelaroundcloudpresentedasignificant challengeinthepastyear.thatassertionfallsjustbehindthemostdifficultchallengecitedinthe findings:developingcloudexpertiseacrossbothtechnicalandsalesarmswithinacompany,ataskthat logicallyflowsaftertheinitialbusinessmodeldecisionismade. Theabovediagramdefinesthefourbusinessmodelareas,alongwiththesubcategoriesofworkactivity thatareassociatedwiththem.thelongerbars,suchasiaas/paas/saasandconsulting/advising/it Solutionsrepresentactivitiesthatcanaccompanyanyofthefourmainbusinessmodels.Seesubsequent pagesforadditionaldetails. Itshouldbenotedthatthesefourbucketsarebynomeansreflectiveofeverypossibletypeofchannel modelapplicabletocloud;howevertheydorepresentafairlycompletepictureofthetypeofcloud workbeingdoneacrosstoday schannel. "#$% '()*#%+, '()*#-#). /.01$+, 2.3+4( , 6"77)(3 ""#$%$""#$%$#""#$ '()*+$%$,*-"./$%$01(,*2$3)4'25$ 3)4'2$677,/7"849$%$:,4;/,"7/$#/,-*+/5$,4+',/$0<$=$ #<>$"22$ /?@/,85/$.4$ ('*)2$+)4'2$ A/5/))$ <B*./C)"(/)$ $D$$E*,/+.$.4$+'5.4F/,$ E/@)41F/9.$ 3495')897$%$62-*5*97$%$G$#4)'8495$ 9./7,"849$ :,/";DH*?$ I"9"7/2$#/,-*+/5$ 3'5.4F*J"849$D$ E/-/)4@F/9.$ 6,+B*./+.',/$D$ E/5*79$ 3)4'2$:'5*9/55$I42/)5$H,"F/K4,;$L4,$.B/$3B"99/)$

16 Thechartsbelowprovideaglimpseintothelevelofactivityeachcloudbusinessmodelhasgarneredto dateinthechannel,alongwiththerelativevaluebeingplacedoneachofthefourareas.manysolution providersareinvolvedwithmorethanoneofthemodelsbelow,with26%ofthemconductingbusiness acrossallfourareas.additionally,thesecondchartindicatestheorderinwhichthosechannelfirms involvedintwoormoreofthesebusinessmodelsgotstarted.themajoritylaunchedintocloudwith offeringsandworkinthebuildcategory.?#",3' <7'2+.% <7'2+.% "#$%'$()*+((,#%+"-./0)123456#718*.+ 4#'$.)$*+,%**-'.%#>,2'#2%8%,3 "8',:45",,%#?"73,%7* <F; <9; 9?; DQ; "#$%'()$*+,%**-'.%# /012+1%*3'45",,%#6+78* 937"3%:+0 ;<<'73= $,+*10 '$)"% 9:; <=; >7#0)%+3>7#0)()#* 9?; A*8B"+34*1+C781+ D<; <<;,8*8C+3E$66#71 <F; E#$7.+G#56H4-I( "# $%'()$*+,-.$/$0)1'-$0123'45 '8(+G9JJKLEL4H.M8**+"N75(O)1M."#$%#P+7)*C( Inthefollowingpages,wewillbreakdownthefourbusinessmodelsintogreaterdetail,definingthe activitiesinvolvedandlevelofchannelinterest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th $Annual$Trends$in$Cloud$Computing:Section2 5

17 4 th $Annual$Trends$in$Cloud$Computing:Section2 6 CloudModelElement1:Build AstrongstartingpointforthecloudformanyfirmsisthecategoryofBuild,whichisdefinedinthestudy as: Typically$this$involves$firms$procuring$vendor9based$hardware$and$software$products$to$construct$private$ and/or$hybrid$clouds$for$customers.$they$may$also$offer$consulting$guidance$on$the$best$it$architecture,$ configuration$and$product$choices$for$the$project.$$ Roughlyhalf(48%)ofchannelfirmstodayreportcurrentlyofferingsomeformofBuildservices,with anotherthirdplanningtoaddthisflavorofcloudtotheirlineupinthecomingyear.buildrepresentsa bitofacloudlaunchingpad;ofthosefirmsthatarealsooperatingoneoftheotherthreecloudbusiness models,7in10startedwithawithbuildpracticebeforeaddingtheothers.thismakessenseifyouthink backthreetofiveyearsagoastheindustryandchannelbeganitscloudtransition.atthetime,many channelfirmswerelookingforthemostobviousplacetoplugin,withmanyofthemadmittedlyworried thatcloudwoulddisintermediatetheminthemarket.sowheredidtheyturninconjuringabusiness modelthatmadesense?theyleveragedtraditionalsolutionproviderstrengthsininfrastructure productssalesandimplementationwork.indoingsoinacloudcontext,thesecompaniespositioned themselvesasbuildersofprivatecloudswithinexistingcustomers oncpremiseenvironments. Additionally,anumberofvendorsincludingHP,VMware,CAandothershavebroughttomarket cloudc incacbox typeproductsthatoutfitchannelpartnerswithaturnkeywaytosellanddeployprivatecloud solutionsfortheirendcustomers.largecscaleenterpriseprivateclouddeploymentsarenotthe mainstayofmostoftoday schannel,whosebreadandbuttercustomerstypicallyresideinthesmb space.sothesecloudcincacboxsolutionsandtoolsetshaveallowedmanyofthemtoprovidebuildctype cloudserviceswithintheconfinesoftheirskillsets,customerneedsandfinances.theyalsoallowfor muchfastertimetocompletionthanamajorprivatecloudenterprisedeploymentfromscratch.$ FurtherevidencethatBuildactivitiesseemedalogicaljumpConpointforchannelfirmsmullingcloud appearswhenyoulookatwhichtypesofcompanieshaveadoptedthismodel.sixin10channelfirms thatidentifyasresellersarecurrentlyofferingbuildservicesvs.47%ofchannelcompaniesthatalign moreintheservicesbucket(break/fix,managedservices,consulting).it snotanoverwhelming difference,buttheresellers,withtheirfootholdininfrastructureproductsales,wouldfindbuilda naturalentrypointtocloud. IntermsoffocusareaswithintheBuildframework,31%ofrespondentscharacterizedwhattheydoas mostlyprocuringhardwareandsoftwaretools,thenresellingtocustomerstobuildprivateclouds. Another2in10saytheirBuildbusinessisprimarilyaboutleveraginganexistingcustomer soncpremise hardwareandlayeringsoftwareandmanagementtoolstobuildaprivateorhybridcloudsolution. What smorecommonthaneitheroftheseactivitiesinisolationisamodelinwhichchannelfirmsdo both,whichroughlyhalfofrespondentssaidtheydid. ThirtyCeightpercentofsmallfirmsparticipatedinbothtypesofBuildactivitiescomparedwith55%of mediumandlargecompaniesthatdid.

18 CloudModelElement2:Provide/Provision ThisbusinessmodelforcloudpositionsthesolutionproviderasthehubforprovisioningvariousvendorC basedandhomegrowncloudservicestotheendcustomer.halfofchannelfirmsdoingcloudtodayare participatingintheprovide/provisionmodel,withathirdofallrespondentsinthestudybelievingthat thisbusinessmodelforcloudhasthemostgrowthpotentialinthenexttwoyears regardlessof whethertheyareinvolvedinitornottoday.thatcompareswithroughlyaquarteroffirmsthatdeem eachoftheotherthreebusinessmodelsasthefastestgrowthdrivers. Aquickdefinition: Typically$these$firms$are$reselling$and$provisioning$IaaS$offerings$such$as$storage$and$compute$capacity$ from$amazon$web$services$or$saas$offerings$such$as$google$apps.$they$are$also$evaluating$and$ aggregating$various$cloud$services$for$customers.$ $ Withinthismodel,thereareseveralsubcategoriesofactivitiesthatchannelfirmspursuetoday.Many participateinanumberoftheseareas.sixin10channelfirmsinvolvedincloudreportwhitelabelinga vendor scloudofferings,ineffectleadingwiththeirownbrandonwhatistypicallyasaasdeal.another sixin10saidtheyoperatetheirowndatacenterandsellhomegrowncloudservices,whilejustmore thanhalf(54%)areresellingvendorcbasedcloudservicesthatcanincludesaasandiaasofferingsin mostcases.thinkmicrosoftoffice365orgoogleapps,asmentionedabove. Notsurprisingly,resellersaremuchmorelikelyamongchannel firmsdoingcloudtosellvendorcbasedcloudofferings.seventyc twopercentofchannelfirmsthatidentifyasresellersdidsoin thelastyear,asopposedtohalfofchannelcompaniesthatare mainlysteepedintheservicesbusiness.theprovide/provision modelhasperhapsthelowestbarriertoentryofallfourofthe cloudbusinessframeworks.it snotabigleaptoresellavendor s SaaSapplicationsifyouarealreadyresellingthatvendor sother productsandservices.however,themarginsonvendorsaas salestendtobeonthelowerside,whichrequireschannelfirms tofindwaystoaddvaluetoincreaseprofitability.someavenues topursue:industrysectorspecialization(e.g.sellingsaascbased ElectronicMedicalRecords(EMR)systemstothehealthcare industry),ordevelopingcapabilitiesinthethirdbusinessmodel area,enable/integrate(discussedbelow)toincreasemargins. Thosefirmsfarthestalongwithcloudarefarmorelikelytobe TopCloudServicesSoldby ChannelPartnersLastYear Virtualdesktop Helpdesk Storage Analytics Productivityapps Businesscontinuity(DR) FinanceCrelatedapps Collaborationtools CRM Callcenter operatingtheirowncloudandsellinghomegrownservicesdirecttocustomers.sevenin10companies thatclaimamatureandstrategiccloudbusinessorhavedrivenstakesinallofthefourcloudbusiness modelssaidtheyareoperatingtheirownclouddatacenteroperationandservices.thiscompareswith lessthanhalfofcompaniesthatareeitherlessmatureoverallwithcloudorparticipatinginfewerthan fouroftheoutlinedbusinessmodels. Whichcloudservicesaretheyselling?Theusualsuspectsofstorage, andvirtualdesktopare amongthemostpopularcloudservicesmovingthroughthechanneltoday.nearlytwocthirdsofchannel 4 th $Annual$Trends$in$Cloud$Computing:Section2 7

19 firmshavetheseservicesintheircloudportfolio.onesurprise?sixtyctwopercentalsosaidtheysold cloudcbasedbusinessintelligenceanddataanalyticsinthepastyear,amajorleapfrompreviousyears ofthisstudywhenthattechcategorylandedlowonthechannelofferingslist.infact,73%ofresellerc basedchannelfirmsareofferingbianddataanalyticsasacloudservicetocustomers.nowitshouldbe notedthatthesamplesizeforthebiresponsesissmallerthanotherareasofthecomptiastudy,but directionallyspeakingtheriseincloudcbasedanalyticsinthechannelindicatesanewlevelof sophisticationamongthesefirmsandquitelikelybeliestheinfluenceofbigdata.withcloudversionsof analyticstoolsnowavailable,solutionprovidershaveanopportunitytoselltheirpredominantlysmb customerssolutionsthatmayhavebeenbeyondfinancialreachintheoncpremisesform. $ $ CloudModelElement3:Enable/Integrate TheEnable/Integratebusinessframeworkforcloudhasbeenasweetspotforchannelfirmsoverthe pastseveralyears.itmakessense.beyondtheresellingofproducts,channelfirmshavemadetheir nameprovidingintegrationandimplementationworkthatlinkscustomers varioushardwareand softwaresolutions,aswellasofferingverticalindustryandothertypesofcustomization.cloudsolutions andmulticloudenvironmentsonlyaddmorelayersoftechnologytoconnectintothatinfrastructure. Considerthefollowingdefinitionforthemodel: Typically$they$are$providing$integration$and$implementation$services$that$may$include$tying$a$customer s$ on9premise$it$solutions$to$its$cloud9based$solutions$or$customizing$cloud9based$solutions$to$fit$a$ particular$business$need$or$vertical.$ ForthepastthreeyearsofCompTIAcloudstudies,thenumberonesourceofpostCsaledollarshasbeen integrationwork.thisareahasroutinelybeenaplacewherethechannelcushionsitsoverallprofit margins.sincemostsolutionproviderschargecustomersonarecurringrevenuebasisforcloud solutions(byconsumptionorbynumberofusersetc.),theprojectworkassociatedwiththe Enable/Integratecategoryallowsthemtoaddrevenuenotincludedinthebasecontract. Thebusinessmodelencapsulatesa numberofactivities.roughlytwoc thirdsofcompaniesinvolvedin Enable/Integratearecurrently providingthefollowing: deploymentofcloudsolutions, integrationofoncpremisetoolsand infrastructuretocloudsolutions andcustomization,oftentomeet verticalindustryneeds.another6 in10areengagedincloudcbased applicationdevelopment,most likelybuildingsaasappsor extensionstoappsthattiecloudin withanendcustomer scurrent environment.manyofthepaas platformsinthecloudsimplifythis <1%#"@A=#B1%CD7441$E#.@3</3:F#G1$H:/C/43#%1. C$/"%IJK0#K13IJ./337$$</%1$3=:.7:1;#J "#$"%'()"*) +,-'.%--) /$00) 12344)%/50*6%%-7) 8%9',/) 12::3;447) <$#%) 1=::>7) "#$% '() *+) ',) -./0#%12-./0#3#/4 '') *5) *() 6478$1294:1;.7:1 ',) ++) *() <747;1=">>/.: **) +?) **) 5#4T(@1%#"@A 3#B1JD7441$Q.@3 7.1#40/$01%R#:D 6478$1294:1;.7:1 7JK0#K13J/@>7.1% R#:DU"3:@/.1:D74 D7$V/V:D1#.3@7$$1. J/D/.:3P =/".J1LC/@>M9IN3 "# $%'()$*+,-.$/$0)1'-$0123'45 731L'((OP=P9MJD7441$Q.@3R#:DJ$/"%/S1.#4;3 4 th $Annual$Trends$in$Cloud$Computing:Section2 8

20 4 th $Annual$Trends$in$Cloud$Computing:Section2 9 typeofwork.meanwhile,asmallerpercentage(54%)ofcompanieshavegonedowntheroadofmobile applicationdevelopmenttosynchandinteractwithcloudsolutions.asmobilecontinuestogrowin statureacrossalltypesofapplications,expectthatcategorytoaccelerate.considerresellersalone:the datafindthat75%ofthemaredoingsomeworkinthismobileapplicationdevelopmentversus57%of channelfirmsthatidentifymorestronglyasserviceproviders. Intermsofothersegmentationdifferences,firmsthatconsiderthemselvesmaturewithcloudaremore likelythanthosewithmoderatetonomaturitytoprovideworkintheenable/integratecategory.nearly 8in10companieswithstrategiccloudbusinessacumenareplantedinthiscategorycomparedwithjust 29%ofthosewithlittlecloudexperience. CloudModelElement4:Manage/Support ThegluebindingachannelfirmtoitscustomersoftenhingesonthemanagementofITaftertheinitial saleandimplementation.manycustomersneedpostcsalesattentionfrankly,especiallysmaller businesseswithnoitstaff.thisisonereasonthatmanagedservicesisviewedasamustcentermarket fortoday ssolutionproviders;notonlydoesitprovideamorepredictablestreamofrecurringrevenue, butalsocreatesacontractualarrangementforongoingitserviceandsupport.themanagementand supportofcloudsolutionsisnodifferentandoffersacompellingbusinessmodelforthechannel,as definedbelow: $ Typically$they$are$delivering$the$ongoing$management$and$support$of$cloud9based$services$as$project$ work$or$in$a$contractual,$recurring$revenue$model.$they$are$also$adding,$scaling$or$troubleshooting$cloud$ services$as$needed.$ $ Managementofcloudsolutionsincludesthebasicservices,suchastroubleshootingorrepairingof cloudcbaseditonaprojectbasis,whichathirdofchannelfirmsinthismodeldidlastyear.another6in 10areconductingremotemonitoringofcloudsolutionsforcustomersand/ormanagingsolutionsthat resideinamulticloudenvironment.multicloudmanagementisasolidopportunityareaforthechannel asmyriadcloudappsandothersolutionsmushroominthemarket.customersareaccessingsolutions fromanarrayofdifferentprovidersanddatacenterlocations,oftenwithlittlerealhandleonthesource oftheseservices.channelfirmsareoptimallypositionedtoserveasagatekeeper.alongasimilarvein, cloudctoccloudmigrationisbecomingmoreprevalentascustomersexperimentwithdifferentcloud providerstogaugeperformancelevelsandsatisfactionrates.justmorethanhalfofchannelfirmsare engagedinthistypeofactivitytoday. Likewise,thechanneliswiselydevelopingwaystodemonstratecloudROItocustomers.Infact,6in10 channelfirmsinvolvedinmanage/supporthavecreateditdashboardsthatallowcustomerstotrack theircloudutilization,costsandothermetricstounderstandtheirinvestment.seventyctwopercentof mediumcsizedsolutionprovidersarebuildingthesetypesofdashboards,aclearvaluecadd. AnotherreasonthattheManage/Supportmodelislikelytoflourishisthefactthatwhilecloudoften abstractscomplexityfromthecustomer sview,thesolutionstypicallyenablemoreconnections,more endpointsandrelianceonnetworks.theseareallareasneedingongoingsupport. $

21 Appendix "#$$%'(#)*$%)'+,-'.)+/*"' 012%3*#4+$5'' "#$"%'(")*+)#","%-")+#*.) $/*-0)1'/"1)2%)/'1)34).*%51) '.*%()$5'%%"/)6'#%"#1) 7/*-0)#","%-")(#*85) "96"$':*%1)'.*%()$5'%%"/) 6'#%"#1)*,"#)%"9)34).*%51) <68'.)+/'5HE$HI3#$*G' J<:8KL' 6B8' 6;8'.)+/'F+-%5*G' :B8' 6:8'>'7;8' 9:8' =6:8' 678' C#*D'$+'3"#$E%' 78' M+,)3%N'+F2OPQR5' "# $%'()$*+,-.$/$0)1'-$0123'45' S#5%N'7??'TUMU'PO'3"#$$%'I)F5'/H*"'3+,-'+V%)H$E5' 4 th $Annual$Trends$in$Cloud$Computing:Section2 10

22 TRENDS IN CLOUD COMPUTING SECTION 3: CHANNEL RELATIONSHIPS: VENDORS, CUSTOMERS, AND DISTRIBUTORS RESEARCH FOURTH ANNUAL AUGUST

23 KeyPoints Twothirds(63%)ofchannelfirmscharacterizecustomerdemandforcloudCbasedITsolutionsand servicesaseitherveryhighorhigh,withanother3in10describingdemandassomewhathigh.just 9%saiddemandforthesesolutionswaslow. Sixin10channelfirmssaythatcloudhasgenerallystrengthenedtheircustomerrelationships,with just15%claimingithasweakenedthemandroughlyaquarterthatsaidthattheirclientbondshave remainedthesame.thatsaid,notallchannelfirmsthatadoptcloudwillengendermoregoodwill withcustomers;somemaysimplyhaveacustomersetthatisnotcloudcfriendly,othersmaynot gainsufficientexpertisetoprovidevalue. Fourin10channelfirmssaidtheyexperiencedcaseswherecustomerdemandforcloudsolutions outstrippedtheircapacitytodeliver,whileanother20%lostadealbecauseacustomerdesireda cloudsolutiontheydidnotoffer. 4 th $Annual$Trends$in$Cloud$Computing:Section3 2

24 CloudDemandandtheCustomerRelationship Cementingasuccessfulcustomerrelationshiprequireschannelfirmstopossessakeenunderstandingof theircustomer sbusinessgoals,needsandpainpoints,andalsohavetheabilitytoapplythatknowledge tothesolutionsrecommendedandsold.thisbasicbusinessrealityisnodifferentwhetheryouare sellingtraditionaloncpremisehardwareandsoftwareorcloudcbasedsolutions.infact,theoptionsthat cloudprovideshaveonlyuppedtheantewhenitcomestochannelbusinessrelationshipswithallof theirconstituents:customers,vendorsanddistributors.inthissection,wewillexploretheimpactcloud hashadonallthreeaffiliations. Firstlet stakealookatcustomerdemandforcloud,whichinmanywaysdriveschannelbehavior. Considerthefollowing: Gartner$forecasts$the$public$cloud$services$market$to$grow$18.5$percent$in$2013$to$total$$131$ billion$worldwide,$up$from$$111$billion$in$2012.$ $ IDC$ research$ shows$ that$ worldwide$ spending$ on$ public$ IT$ cloud$ services$ is$ expected$ to$ approach$$100$billion$in$2016.$over$the$ $forecast$period,$public$IT$cloud$services$ will$enjoy$a$compound$annual$growth$rate$of$26.4%,$five$times$that$of$the$it$industry$overall.,$ and$ by$ 2015,$ one$ of$ every$ seven$ dollars$ spent$ on$ packaged$ software,$ server,$ and$ storage$ offerings$will$be$through$the$public$cloud$model.$ Clouddemandaccelerationextendstothechannelaswell,accordingtotheCompTIAstudy.Twothirds (63%)ofchannelfirmscharacterizecustomerdemandforcloudCbasedITsolutionsandservicesaseither veryhighorhigh,withanother3in10describingdemandassomewhathigh.just9%saiddemandfor thesesolutionswaslow. Amongchannelfirmtypes,resellersinthestudycitedthehighestdemand.SeventyCfourpercentof thesecompaniessaiddemandwaseitherveryhighorhigh,comparedwith62%ofservicescoriented channelfirmsthatdidso.oneexplanationisthatresellersasagrouptendtobeinvestedheavilyin sellingvendorcbasedcloudsolutions,inparticularsaasapplicationssuchasmicrosoftoffice365and GoogleApps.Thisisanactivitythatfitsintothecloudbusinessmodelframeworkcalled Provide/Provision,andacrossallframeworksintheCompTIAstudytheProvide/Provisioncloudmodel waspredictedtoexperiencethegreatestgrowthpotentialforthechannelinthenexttwoyears.(see$ Section$2$of$this$report$for$more$details$on$the$various$cloud$business$model$frameworks) Indeed,channelfirmsreportedhighdemandforcloudservicesingeneral.Consideringthefourbusiness modelsoutlinedinthisreport,itcompanieswithabuildpracticereportthehighestlevelsofcustomer interestincloudsolutions.presumably,thesearecustomersengaginginbuildprojects,suchas deployingaprivatecloud,butsincemanychannelpartnersareinvolvedinmultiplecloudofferings,it couldbedemandstemmingfromarangeofcustomercloudneeds. Additionally,thedemandlevelsforeachdistinctbusinessmodelalsomaptotherankorderinwhich manychannelfirmsenteredthesefourspaces.mostofthecompaniesthatareofferingtwoormore typesofcloudframeworksstartedwiththebuildcategory,thenmovedalongaddingprovide/provision, 4 th $Annual$Trends$in$Cloud$Computing:Section3 3

25 Enable/IntegrateandfinallyManage/Support.It sunsurprisingthenthatdemandisreportedtobe highestinthefirsttwocategories,astheyarethemostprevalentlypracticedacrossthechanneltoday. Expectcustomerdemandforthemanagementandsupportofcloudservices thefourthbusiness modelcategorycctogrowincomingyearsasmoreendusersmigratefromthepurchaseofcloud solutionstotheneedtotendandmonitortheservicesovertheirlifecycle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ithcustomerscuriousaboutcloudanddemandup,freshconversationshavebeensparkedbetween channelfirmsandtheirexistingclients,whiledoorsareopeningtopotentialnewcustomersseeking,in someinstances,abettermousetraptomeettheirtechnologyneeds. Caseinpoint?Sixin10channelfirmssaythatcloudhasgenerallystrengthenedtheircustomer relationships,withjust15%claimingithasweakenedthemandroughlyaquarterthatsaidthattheir clientbondshaveremainedthesame.thisisencouragingnewsgiventhefactthatmanyinthechannel havefearedpubliclythatcloudwoulddriveawedgebetweenthemandtheircustomers.there sbeen rampantapprehensionaboutsuchilleffectsasaresurgenceinvendordirectsalesandenduser customerschoosingaselfcservicemodelfortheiritsolutions,i.e.procuringsaasapplicationsoverthe Internet.Andwhilebothofthesetrendsarehappeningtoacertainextent,CompTIAdatasuggestnotat suchdireexpensetomostofthechannel,especiallythosethathavereachedahighlevelofcloud maturitytodayandintendtoremaincommitted.thatsaid,notallchannelfirmsthatadoptcloudwill engendermoregoodwillwithcustomers;somemaysimplyhaveacustomersetthatisnotcloudc friendly,othersmaynotgainsufficientexpertisetoprovidevalue,etc. 4 th $Annual$Trends$in$Cloud$Computing:Section3 4

26 4 th $Annual$Trends$in$Cloud$Computing:Section3 5 Infact,channelfirmscanplayacriticalroleindeterminingwhencloudversusonCpremiseworksbestfor theircustomers.thesavvy trustedadvisor shouldbemovingfarbeyondaproductspeedscandcfeeds salespitchtoabusinesscorientedconsultingapproachtotheengagement.respondentstothecomptia studysaidtheprimaryreasonsthattheyarerecommendingcloudtypicallymaptoacustomer s businesspriorities.theyalsofallinlinewithmacrorealitiessuchasthegrowthoftheremotework force.asoneexample,thepercentageofchannelfirmsthatsaidtheircustomers desiretoincrease mobile/remoteaccesstocompanydatasparkedthereasontorecommendcloudjumpedto46%of respondentscomparedwith38%lastyear.thisunderscoresthesurgeinmobilitysolutions,aswellas BYODandtelecommutingtrendsthatarehappeninginthemarketplace.Italsodemonstratesthe channel sabilitytotiethevalueofcloudintotheseburgeoningareas. Acustomer sdesiretoreducecomplexityacrosstheiritenvironmentremainstheno.1reasonthat solutionprovidersrecommendcloudofferingsinplaceofoncpremise.sixin10mediumcsizedchannel firmscitedthisastheprimarycloudrecommendationdriver.overthenextseveralyears,moreproof pointswillemergeontcoandtruecostsavingsenabledbycloud,however.buttoday,customers increasinglyareopentoexploringcloudsolutionsinlieuofspendingonnewhardware,packaged softwareandotherinchouseinfrastructure.thechallengeforthechannelisgoingtobedemonstrating thosecostsavingsovertimetothecustomerswhilewardingoffcompetitionfromgiantslikeamazon, whosecloudpricinghascontinuedtodropquarteroverquarter. Anotherchallengeliesintheabilitytodelivercloudservicesinlockstepwithdemand.Itsoundslikea problemyoushouldn tmindhaving:toomuchdemandforyourservices.butunlessachannelfirmhas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

27 adequatecapacityandskillstomeetthatdemand,theywillhavetoeitherturnawayorlosebusiness.in fact,4in10channelfirmssaidtheyexperiencedcaseswherecustomerdemandforcloudsolutions outstrippedtheircapacitytodeliver,while20%lostadealbecauseacustomerdesiredacloudsolution theydidnotoffer.anothernegativesalesoutcomeinvolvedlosingaclouddealtoanothersolution provider,vendorordistributor,whichathirdofrespondentssaidoccurredlastyear.thislatterissueis notconfinedtocloudobviously,andhappenswithregularityintheoncpremisesalesarenaaswell. Interestingly,channelfirmswithhighlevelsofmaturitywithcloudandthosethatareinvolvedinfourof theoutlinedcloudbusinessmodelsweremorelikelytoexperiencecapacityorinabilitytodeliverissues aroundcloud.morethanhalfofthesetypesofcompanies,forexample,experienceddemandforcloud solutionsbeyondwhattheywereabletoexecuteonversusanaveragearound4in10ofallother categoriesofchannelfirms.thisismostlikelyexplainedbythefactthattheyaresoheavilyinvolvedin cloud cloudexperts,asitwere thatdemandnaturallygravitatestheirway,andinsomecasesis beyondtheirmeans. Theemphasisondemandshouldnotovershadowthefactthatnotallendusercompaniesarebuying intocloudyet.today schannelfirmscontinuetoencountersomedifficultysellingtocertaincustomers. Aperennialconcernissecuritywariness,whichcontinuestorankasthechiefroadblocktocloud acceptancebasedonwhatchannelcompaniesofallsizessaytheyarehearingfromcustomers.on average,morethanhalfofrespondentscitedsecurityasthechiefhurdletoacloudsale.concernabout Internetdowntimemovedupthelistofcustomerobjectionstocloudthisyear,whichmaybetheresult ofthepastyear sverypublicoutages.therearemanyexamples,someinvolvingfinancialinstitutionsas wellasonethattookdownportionsofmicrosoft soutlookservicesforseveraldaysoramorerecent, albeitverybrief,outageatgoogle. TopCustomerObjectionstoAdoptingCloud 56% Securityconcerns 44% Internetdowntime 40% IntegrationconcernswithonCpremiseinfrastructure 39% Dataportabilityissues 37% Totalcostofownershipconcerns 36% Lackofunderstandingofoptions/tradeoffsofcloud 31% ResistancetochangebyinternalIT Twoofthemaincustomerobjectionsactuallyposepotentialopportunitiesforchannelfirmsiftheyare handledwell.integrationconcernsabouttyingcloudintoexistinginfrastructureandworriesaboutdata portabilityneednotbedealbreakers insteadtheyprovideachanceforthesolutionprovidertoflex theirvalue,knowledgeandskillset.beingabletoexplaintoapotentialcustomerindetailwhichparty ultimately owns dataplacedinthecloud,particularlyinasituationwhereacloudprovidermightgo outofbusinessorthecustomerfallsbehindonpayments,demonstratesthechannelfirm sknowledge ofcloudcbasedmodels.dataportabilitymovesfromasalesobstacletoovercometoavaluecadded servicetosell.likewisewithintegration.forchannelfirmssellingcloudtoday,thegreatestsourceof revenueafterthesaleliesinintegrationwork cloudtooncpremiseandcloudtocloud.aproventrack recordherewithexistingcustomerscanserveasablueprintorproofpointtopersuademorereluctant customerprospects,muchlikecasestudiesareused. 4 th $Annual$Trends$in$Cloud$Computing:Section3 6

28 4 th $Annual$Trends$in$Cloud$Computing:Section3 7 Totalcostofownershipiscreatingsomedoubtinthemindsofcustomersinitiallylookingatcloudasa costcreducerofit.whilethebarriertoentryforcloud dependingonthesolution willoftenappear farmoreaffordablethantheexpensefornewitequipmentorsoftwareoncpremise,thelongercterm costsassociatedwithcloudsolutionsandtheirmanagementarenotentirelytransparent. VendorsandDistributors Customersaren ttheonlyrelationshipthatchannelfirmsneedtoreconsiderafterdivingintocloud. Vendorsanddistributors,keyelementstotheITsupplychainandfundamentalbusinesspartnerstothe channel,mustalsobeconsidered. Withrespecttovendors,channelfirmsareevaluatingthemontheircloudstrategies,includingsuch considerationsasavendor scloudofferings,businessmodel,routestomarket(directorindirect)and compensationplanforpartnerssellingcloud.thisevaluationcouldresultincontinuedalignmentwith existingvendorsthathaveaddedcloud,oritcouldmeanaswitchtovendorseithermoreinvestedin cloudormorechannelcfriendlyinhowtheydelivercloudofferings. Onwhatbasisarechannelcompanieschoosingcloudvendorstoworkwith?Lastyear,vendorbrand reputationwasthemainreason,despitepredictionsthatthecloudmodelwillerasetheimportanceof vendorbrandinginthesalesprocessbecauseservicesareintangibleandinvisibletothecustomer.not sothisyear.thechiefreasontoselectavendortoworkwithrelatedtocloudiscustomerpreference. "#$%'("$()*"+(,-(./%%',-0(.*%12(34-2%()"$-4'( "# $$"# $$"# $$"# $%"# $$"# '"# "# "# ("# %'"# %"# "# )"# '"# *"# +,"# +("# #%89(8%24*(9%6,242(.%88,$84-$($%(#*%12( :199%$'("**(;%1(#*%12(<1',-4'(8%24*'( 34-2%(<"-2(491$"=%-( >+9476",4$+(%;(#*%12('46,#4'(%?442(.1'$%84(94;44-#47248"-2( -./0# # 19:.;<78# # =98# # :%1#4@(.%89>ABC'( "# $%'()$*+,-.$/$0)1'-$0123'45( D"'4@(EFF(GH:H(A>(#/"--4*(I8'(J,$/(#*%12(%?4,-0'( %8(94'94#=64(%;(#/"--4*(9"$-4'(J,$/("(#*%12(9"#=#4(

29 4 th $Annual$Trends$in$Cloud$Computing:Section3 8 Thisahighlytellingfinding,demonstratingjusthowmuchleveragecustomerstodayhaveintheIT marketplace,evenwithsomethingasnewascloud.what suncleariswhethercustomersare demandingtoworkwithaparticularcloudvendororiftheyarezeroinginonaspecifictypeofcloud servicethatinturndrivesthechannelpartnertoseekoutavendormatch. Regardlessofwhetherthecustomerisdemandingitornot,channelfirmsselectingavendortowork witharealsointerestedinthevendorgoods.findingsshowthattheyplacegreatemphasisonthetype andbreadthofcloudofferingsthatthevendorhasinitsquiver,especiallyamongthosewithasteep investmentintheirowncloudpractice.sixin10firmsthathavehighlevelsofcloudmaturity,highcloud profitmarginsorpartakeinallfourcloudbusinessmodelssaidavendor scloudportfolioisparamount intheselectionprocess.likewise,thosechannelfirmswithstrongcloudinvestmentsalsovaluethe vendor slevelofcommitmenttothemodelasselectioncriteria.morethanhalfofthesetypesoffirms versus,forexample,2in10lowcloudmaturitycompanies,saytheyarekeenonaligningwithvendors thattakecloudandtheirchannel sinvolvementinitseriously. Companieswiththedeepestcloudexperienceandinvolvementwerealsothemostlikelytohave experiencedmajorchangeinthemakeupofthevendorstheyworkwithcomparedwiththosewithless cloudexperience.thiscouldsignalthefactthatthosefirmshavemovedawayfromsomeofthemore traditionalitmanufacturerstojoinforceswithsomeofthenewer,cloudcfocusedvendorsthathave emergedonthescene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