The State of Hybrid Cloud

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1 The State of Hybrid Cloud To learn more about this full research or to inquire about membership, contact us: executiveboard.com CEB Infrastructure Leadership Council

2 A Framework for Member Conversations The mission of CEB Inc. and its affiliates is to unlock the potential of organizations and leaders by advancing the science and practice of management. When we bring leaders together, it is crucial that our discussions neither restrict competition nor improperly share inside information. All other conversations are welcomed and encouraged. Confidentiality and Intellectual Property These materials have been prepared by CEB Inc. for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB, and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced. Legal Caveat CEB Inc. is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims, or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.

3 WHAT IS HYBRID CLOUD? Hybrid Cloud A hybrid cloud comprises public and private clouds that operate as separate entities but are integrated in an automated environment to allow for the seamless transfer of data and applications. 3

4 ROADMAP Cloud Adoption Trends Hybrid Cloud Definition and Usage Hybrid Cloud Adoption 4

5 PUBLIC CLOUD DEPLOYMENTS APPROACHING MAINSTREAM Cloud-Based Technologies Mainstream Adoption Timeline Based on Emerging Technology Roadmap Cloud-Based IDM (Identity Management) Public Cloud Based Storage Consolidated Access Management for Cloud Services Software-Defined Storage (SDS) Cloud Storage Gateways Public Cloud Based PaaS Cloud-Based Archiving for /IM Public Cloud Based IaaS Public Cloud Based Disaster Recovery Integration Platform as a Service (ipaas) Cloud Operating Systems Public Cloud Based Relational Databases Cloud Orchestration and Configuration Management Tools Public Cloud Gateways 2014 H H H H H H H Evaluated No Plans to Deploy Enterprise Value Deployment Risk High Value Medium Value Low Value High Risk Medium Risk Low Risk Source: CEB 2015 Emerging Technology Benchmark. 5

6 Members believe that cloud-based technologies can improve Infrastructure service speed and reduce costs, but security concerns continue to limit adoption. THE CLOUD IS VALUED FOR SPEED BUT COMES WITH SECURITY CONCERNS Primary Value Factor a Seen in Cloud-Based Technologies Percentage of Cloud-Based Technologies 50% 44% 33% 25% 11% 7% 4% 0% Improves Infrastructure Service Speed Reduces Infrastructure Cost Improves Enterprise Employee Productivity Reduces Business Security Burden Improves Infrastructure Service Quality Source: CEB Emerging Technology Roadmap. a Median value of the primary value factor or risk factor as identified by the participating organizations. Primary Risk Factor a Seen in Cloud-Based Technologies Percentage of Cloud-Based Technologies 60% 56% 30% 19% 15% 11% 0% Security Risk Architecture Fit Risk Marketplace Maturity Risk Support Risk Source: CEB Emerging Technology Roadmap. a Median value of the primary value factor or risk factor as identified by the participating organizations. 6

7 Moving hosting capacity to the cloud helps realize increased cost savings over time. COST IMPLICATIONS OF CLOUD MIGRATION Change in Portfolio Hosting Cost a by Moving Legacy Environments to Cloud-Based Environments Comparison of Movement to Public IaaS Versus Private IaaS Private IaaS: The Consumer controls both the deployed application and the server operating system without managing the underlying cloud infrastructure. 0% Public IaaS Private IaaS Public IaaS: A third-party supplier provides consumers with control over both the deployed application and the server operating system, without managing the underlying cloud infrastructure. (7%) (6%) (10%) (15%) (13%) (30%) (13%) (19%) (24%) Source: CEB analysis. a Portfolio hosting cost is the cost of running applications excluding additional cloud network costs, additional staff training costs, and migration costs. (15%) Assumptions: Average portfolio with 500 small, 300 medium, and 200 large applications and annual application growth rate of 5% Current distribution of the hosting portfolio as public IaaS 10%, private IaaS 10%, in-house 70%, and managed/outsourced 10% Refer to CEB s Hosting Portfolio Cost-Analysis Tool for more details on the methodology and to assess the cost implications of different architectures for your organization. Change in Total Portfolio Cost a by Moving Legacy Environments to Cloud-Based Environments Comparison of Movement to Public IaaS Versus Private IaaS 10% 0% (10%) (20%) 8% (3%) (2%) (7%) (11%) (11%) (14%) (19%) Source: CEB analysis. a Total portfolio cost is the cost of running applications including hosting costs, additional cloud network costs, additional staff training costs, and migration costs. Public IaaS Private IaaS 7

8 Thank You for Your Interest in CEB Research! If you re a member, please log into your account to access the full study. If you would like access to this full study, please contact CEB to learn more. Member Login Contact CEB 2014 CEB. All rights reserved. CIO SYN

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