RESEARCH REPORT. 5th Annual Trends in Cloud Computing

Transcription

1 RESEARCH REPORT 5th Annual Trends in Cloud Computing NOVEMBER 2014

2 5 th $Annual$Trends$in$Cloud$Computing:Section1 1 AboutthisResearch CompTIA s5 th $Annual$Trends$in$Cloud$Computing$studybuildsonpreviousCompTIAresearchinthe cloudcomputingspace,furtherexploringtrends,challenges,andopportunities.theobjectivesofthis studyinclude: B CollectinformationonendBuserpurchasedriversand/orinhibitors B AssessdepthofcloudusageandwaysinwhichitischangingITbehavior B Evaluateadoptionpatternsamongendusersandmaptochannelbusinessmodels B Tracktheexperienceofchannelpartnersofferingcloudsolutions,buildingcloudpractices B Measureimpactofcloudcomputingonchannelroles/vendorrelationships Thisstudyconsistsoffivesections,whichcanbeviewedindependentlyortogetherassectionsofa comprehensivereport.theindividualsectionsandfullreportcanbeviewedatthecloudcomputing researchpageonthecomptiawebsite. Section1:MarketOverview Section2:UsagePatterns Section3:Challenges Section4:BusinessModelAnalysis Section5:ChannelDynamics Thisstudywasconductedintwoparts. PartI:quantitativeonlinesurveyof400ITandbusinessprofessionalsintheUnitedStatesinvolvedinIT decisionbmaking(akaendusers).datacollectionoccurredduringjune2014.themarginofsampling erroratthe95%confidencelevelis+/b5.0percentagepoints.samplingerrorislargerforsubgroupsof thedata. PartII:quantitativeonlinesurveyof400ITfirmsintheUnitedStates(akachannel).Datacollection occurredduringjuly2014.themarginofsamplingerroratthe95%confidencelevelis+/b5.0 percentagepoints.samplingerrorislargerforsubgroupsofthedata. Forbothsurveys,CompTIAworkedwiththeresearchfirmResearchNowtofacilitatedatacollection usinganindependentpanel.aswithanysurvey,samplingerrorisonlyonesourceofpossibleerror. WhilenonBsamplingerrorcannotbeaccuratelycalculated,precautionarystepsweretakeninallphases ofthesurveydesign,collectionandprocessingofthedatatominimizeitsinfluence. CompTIAisresponsibleforallcontentcontainedinthisseries.Anyquestionsregardingthestudyshould bedirectedtocomptiamarketresearchstaffatresearch@comptia.org. CompTIAisamemberoftheMarketingResearchAssociation(MRA)andadherestotheMRA scodeof MarketResearchStandards.

3 SECTION 1: Market Overview

4 KeyPoints InthefiveyearsthatCompTIAhasbeenstudyingcloudcomputing,thetopichasshiftedfroma potentialgamebchangertoanessentialingredientofmodernit.idcestimatesthepubliccloud markettohavereached$45.7billionin2013,andtheyexpectittogrowat23%cagrthrough2018. Ontheprivatecloudside,IDCestimatesthatworldwidespendingonhostedprivatecloudservices willsurpass$24billionby2016. BothchannelfirmsandendusersareexperiencingdisruptionastheymovetowardscloudBenabled infrastructureandsolutions.fortybonepercentofchannelfirmscitecloudasacatalystfornew directionsrequiringbusinesstransformation.fromanenduserperspective,over90%ofu.s.firms claimsomeformofcloudcomputing,andover60%ofthosefirmsstatingthatcloudcomponents representatleastathirdoftheiroverallitarchitecture. Althoughadoptionratesarehighandmarketnumbersarepositive,thereisstillconfusionrelatedto cloudcomputing.twentybeightpercentofsurveyrespondentsidentifyingascloudusersselected neitherprivatenorpubliccloudastheirusagemodel,pointingtoconfusionoverterminologyorlack ofrecognitionfortheircloudmodel.clearingupthisconfusionshouldnotbeaprimaryactivitybut insteadshouldbeusedasneededwhilediscussingoptionsforitoperations. 5 th $Annual$Trends$in$Cloud$Computing:Section1 2

5 5 th $Annual$Trends$in$Cloud$Computing:Section1 3 TheFirstFiveYearsofCloudComputing InthefiveyearsthatCompTIAhasbeen studyingcloudcomputing,thetopichas shiftedfromapotentialgamebchangerto anessentialingredientofmodernit.in fact,thedisruptionthatcloudcomputing bringstobackbendcomputing (traditionallydonebyonbpremise mainframesandservers)alongwiththe disruptionthatmobilitybringstofrontb endcomputing(traditionallydoneby desktoporlaptoppcs)isusheringina neweraofit. Thesignificanceoftheneweracomes fromthechangesthatwilltakeplacein organizationalworkflowandinthe distributionoftechnologyproductsand services.fromanenduserperspective, companiesmayinitiallyviewcloud computingasanalternativeoptionfor existingprocessesandapplications. Eventually,businesseswillmovetowards anewarchitecturebuiltontheunique propertiesofcloudsystems.froma channelperspective,cloudcomputingwill offeranewplatformforbuildingservices, allowingchannelfirmstoaddnewvalue indistancingtheirclientsfromthe logisticsofitandfocusingthemonthe ultimategoalstheyhavefortechnology. ThepreviouserasofIThavelastedfor25B 30years.Afterfiveyears,then,theeraof cloudcomputingisjustgettingstarted. Thenextdecadewillseecloudcomputing becomeevenmoreacceptedasa foundationalbuildingblock,anditmay evenfadeintothebackgroundas discussionsturnmoretowardsthe managementofoverallarchitectureand theservicesbuiltonthatarchitecturethat driveabusinessforward. WhataDifference5YearsMake Thepast5yearshasseenmajorchangesinthe fieldofcloudcomputing,bothfromthe perspectiveofthechannelandfromendusers. HerearesomecommentsfromCompTIA s inauguralcloudcomputingreport,alongwithbrief updatesineacharea(withmoredetailstofollow throughoutthisreport). Asignificantchunkofthechannelis cautiouslydippingintocloudcomputing : Thechannelisnowallinonthecloud, with93%offirmscharacterizingtheir cloudsolutionsasmatureorsomewhat mature. Boththechannelandenduser communitiescraveamoreauthoritative, uniformdefinitionofcloudcomputing : Mostclouddiscussionsnolongerinclude definitions,butthatismoreduetoa broadinterpretationofcloudratherthan agreementonaspecificdefinition. Thesweetspotforthechannelisselling cloudtomediumisizedcompanies : AdoptionatmediumBsizedcompaniesis strongest(97%),thoughlargecompanies arebasicallyinthesamezone(96%).small firmslagat84%. Transitioningtothecloudwillmean dealingwithexistingitinvestmentsand systemsandundertakingtheintegration workinvolvedintyingmultiplecloudand onipremiseenvironmentstogether : Whilemuchofthediscussionoverthepast fiveyearshasfocusedoninitialmigrations tothecloud,manyendusersarenow performingsecondarymigrationsand quicklybuildingamultibcloudenvironment thatincludesonbpremisesystems.

6 SizingtheCloudMarket Ascloudcomputinghasmaturedfromanemergingarchitecturaloptiontoadisruptivenewplatformfor manyitservices,themarketviewhaschanged.intheearlydays,mostanalystfirmstreatedcloud computingasasingleentity;comptia sfirstcloudreportincludedestimatesfromgartnerthat predictedoverallcloudrevenuetogrowfrom$46.4billionin2008toover$150billionby2013.theonly additionalbreakdownofthemarketwasalongthemajorservicemodels SaaS,PaaS,andIaaS.Atthe time,idcwasprojectingthesaasmarkettoreach$40.5billionby2014. Twoyearslater,theestimatesreflectedsignificantprogressintheperceptionofcloudcomputingasa broadplatform.gartner sestimatesforcloudrevenuenowincludedservicemodelsbydefault.2015 projectionspeggedsaasat$22.1billion,paasat$1.8billion,andiaasat$22billion.themarketwasalso growingfasterthanpredicted.these2015projections,totaling$45.9billion,were17%higherthan Gartner s2015projectionsfromthepreviousyear. Moreimportantly,Gartnerusedtwoadditionalcategoriesforcloudrevenue.Thefirst,BusinessProcess asaservice,includedindirectinvestmentsmadeforcloudcomputing(suchasdatacenter/network upgrades)alongwithoverallprocessesthatwerebuiltusingcloudcomponents(suchaspayrollor expensemanagement).thesecondwascloudmanagementandsecurity,twospecificservices surroundingtheuseofcloudresources.together,thesecategoriesaccountedforover70%ofgartner s totalcloudprojectionof$207billionfor2016. Ithasnowbecomeraretofindestimatesthatencompassthefullsetofactivitiesthattakeplaceinthe cloudarena.projectionsmaybreakthingsdownbyservicemodel,deploymentmodel,orbusiness process.considerthefollowing: IDCreportsthattheworldwide publiccloudservicesmarket reached$45.7billionin2013and isprojectedtogrowata compoundannualgrowthrate (CAGR)of23%through2018. Theybreakthistotaldownby SaaS($32.9billion),PaaS($6.4 billion),andiaas($6.4billion). Theyalsoidentifysecondary marketsthatarethrivingas standalonesegments. Forprivatecloud,IDCestimates thatworldwidespendingon SecondaryMarketsinIDCPublicCloudDefinition SecondaryMarket EnterpriseResourceManagement (ERM)Applications CustomerRelationshipManagement (CRM)Applications 2013Revenue $10,780 hostedprivatecloudserviceswillsurpass$24billionby2016.thisincludesdedicatedprivate clouds,wherephysicalresourcesarereservedexclusivelyforsingleusers,andvirtualprivate clouds,whereapubliccloudproviderofferssharedvirtualresourceswithgreaterdegreesof customercontrolandsecurity.obviously,thereisroomforinterpretationbetweenvirtual privateclouduseandpublicclouduse. $8,135 Server $3,981 CollaborativeApplications $3,374 SecuritySoftware $2,922 Othermarkets $16,556 5 th $Annual$Trends$in$Cloud$Computing:Section1 4

7 ManydifferentcloudBrelatedsegmentsareblossomingintorobustmarketsoftheirown. InfoneticsResearchpredictsthemanagedcloudsecuritymarketwillgrowat11%CAGRthrough 2017,resultingin$9.2billioninrevenue.Technavioexpectsthecloudsystemmanagement softwaremarkettogrowat33%cagroverthe2013b2018period.marketsandmarketsbelieves thatthecloudanalyticsmarketwillgenerate$16.5billioninrevenueby2018.theseareasand manyothersaredevelopingintosubstantialopportunitiesascompaniesbecomemore groundedincloudtechnology. Afterfiveyears,theindustryhasreachedapointwhereitisdifficulttotalkgenerallyaboutthe cloud market. Thebreadthofofferingsbasedonacloudfoundationhasgrown,andmanycompaniesare takingstepsbeyondinitialcloudmovesandconsideringstrategiesthatassumecloudcomponents. TheTransformationofBusiness Fromchannelfirmstoendusers,mostcompaniesareexperiencingadrasticchangeinthewaythey approachitandoverallbusinessoperationsthankstothecloud.lastyear,comptiaestablishedmodels forbothchannelbusinessmodelsandcloudadoptionprogression: ChannelPerspective EndUserPerspective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th $Annual$Trends$in$Cloud$Computing:Section1 5

8 "#$%"'(%)%*+)+',-"'(.%//0*'12+#/0++'3"%/+,-"$%4-/'?/*54(35%7$,($($"9(42"0;*$%( ;<7' ")+$4(#*2($"9(%"2'0"%(+$4(<=(4"/'"2>( 6:7' "%2"(#*2(2"0522$,(2"'"$5"()*4"/( 697' 8"9(:$+$0+/()*4"/%(+2"()*2"(/502+;'"( 657' 6"$4*2%(35%7$,(#*2(07+$,"( 587' 1+2,$%(*$(32*450-(%+/"%(4"0/$$,( 567' "#"$%'"()*'"(+,+$%-(*.%*/"%0"$0"( "# Today sitchannelcontinuestoundergoatransitionalongwiththerestoftheindustry,triggeredby changesinthewaysthatcustomersbuyitgoodsandservices,newtypesofcompetitionandthe forwardmarchofthemessuchascloudcomputingandmobility.ineffect,thechannelhashadtostep upitsgame,morphinginsomecasesfromastraightresellerofproducts particularlyhardware toa multifacetedproviderofservicesandsolutions.whilesomefirmswillmaintainstatusquo,mostwill shifttheirbusinessmodeloratleastembraceahybridapproach,addingaservicescomponent alongsideaproductbbasedrevenuestream. Forthosemovingdownthepathofbusinesstransformation,thecloudistheprimarydriver.In CompTIA s4 th $Annual$State$of$the$Channelstudy,4in10respondentscitedcloudaspushingthemin newdirections.cloud sinfluencespansfairlyevenlyacrossallsizecompanies,withmediumandlarger firmsreportingitasaprimarydriverinslightlyhighernumbersthanthesmallerchannelfirms.halfofall respondentssaidthatattainingcloudexpertiseisgoingtobe veryimportant tothefutureprospects ofanindividualchannelfirm;halfalsoplacedasmuchimportonundertakingmanagedservicesand becomingproficientinsellingservices. Clouditselfissubtexttomanyoftheotherbusinesstransformationdrivers.Forexample,customer demandfordifferentdeliverymodelsforit,aprimarychangeagent,canbedirectlyrelatedtothe emergenceofthecloudcomputingbusinessmodel.cloudoffersanalternative,andfairlyattractive, waytoprovidetechnologyservicestotheendcustomerbeyondsellingthemthespeedsandfeedsofan 5 th $Annual$Trends$in$Cloud$Computing:Section1 6

9 ITproduct.ThinkofthewidespreaduseofSaaSapplicationssuchasGoogleDocsorcloudBbasedstorage andothercomputeinfrastructurefromthelikesofamazonormicrosoft. Aschannelfirmsrespondtothechangesintheindustrydrivenbycloudcomputing,theyarediscovering whichbusinessmodelfitstheircurrentpractice.thebroadadoptionofdifferentcloudbusinessmodels reflectsthediversemakeupofthechannel,andtheplansforfutureadoptionpointtotheforcesdriving transformationformanyfirms. Thedifferentbusinessmodelsdirectly applytothedifferentchallengesbeing facedbyendusersateachstageofcloud adoption.althoughenduserfirmsmay besomewhataggressiveinclassifying theiradoptionprogress,thebasicpattern likelyholdstrue,withthebulkoffirmsin themiddlestagesofadoption.ingeneral, cloudcomputinghasdefinitelypassed intoamassadoptionphase,withover 90%ofU.S.firmsclaimingsomeformof cloudcomputingandover60%ofthose firmsstatingthatcloudcomponents representatleastathirdoftheiroverall ITarchitecture.Softwareisprobablythe pieceofarchitecturethatismostquickly becomingcloudbbased,andthereisstill plentyofheadroomforgrowth:with Gartnerprojectingthetotalenterprise softwaremarkettoreach$320billionin 2014,the$22billionthatcomesfrom SaaSrepresentsjust6.9%ofthemarket. In2011,CompTIAfoundthat mediumb sizedbusinessesareutilizingcloudmore thansmallorlargebusinesses. This trendremainstruetoday;although mediumbsizedfirmsandlargefirmsare identicalinoveralladoptionrate, mediumbsizedfirmstendtohavea greaterpercentageofcloudbbased 5"6*.# 3/#4)%+ $//+*."2 3/#4)%+ "#$%'$()*+((,#%+"-)(./)0$1#* architecture.thesecompaniesstillrepresentasweetspotofsortsforcloudcomputing theyhave sizableitrequirementsbutarealsonotconstrainedbylegacysystemsandcomplexity. StillConfused ButDoesitMatter? Allofthestrongchannelmomentumandadoptionprogressovershadowsanissuethathasbeen presentincloudcomputingdiscussionssincethelaunchofamazonwebservicesin2006:whatexactly isthecloud?intheearlydaysofcloudcomputing,therewashealthydebatebetweenthosewhofelt )#$ "#$ +,-./$ 0123-/45$ $ "#$ "#$%'%#()#*+,-./,0$)#* %#$ ()*+,-.+/0$ 12/34,-5467$ 89+$ %*#$ %#$ %"#$ '#$ #$ >877$ *,2<8452/$ %)#$ %(#$ 8979:45$ ;,<<21=$ "# ''#$ :,6/9;2,.+<$ "# 5 th $Annual$Trends$in$Cloud$Computing:Section1 7

10 cloudrepresentedamassiveshiftinitandthosewhofeltlikecloudwasjustanewmarketingterm. Today,thatdebatehasmostlydieddown,butitisnotclearthattheindustryhasreachedresolution. Hintsofconfusioncanbeseeninthedeploymentmodelthatendusersidentifyinuseattheir companies.fortypercentofrespondentswhoidentifiedascloudusersselectedprivatecloud,and32% selectedpubliccloud.thesetwooptionsshouldaccountfor100%ofcloudusage(withsomecompanies usingbothoptions),but28%ofrespondentsdidnotselecteither,pointingtoconfusionover terminologyorlackofrecognitionfortheircloudmodel. Thebalancebetweenpubliccloudandprivatecloudisalsoapointworthconsidering.Otherstudies havealsoseenstrongmomentumtowardsprivateclouds,suchasinformationweek sstudyfindingthat thepercentageofenterprisesreportingfunctionalprivatecloudsmorethandoubledfrom21%to47% betweenapril2012anddecember2013.however,therearealsostudiesthatindicatepubliccloudas thedominantmodel,suchasrightscale s2014$state$of$the$cloud$reportfindingthat87%ofall organizationsareusingpubliccloudsystems. "#$#%'$()*%)+,-+./0(%#1+,203*45+6,7'1)+ <$,#7+4'=,$>+#%%'))+ ;'),3$%'+0,,1(45+ 89'$4#11/+2#4#5'7++ ;#0(7+'1#)*%(/+ "#$%'## ()(*'# "#$%'## $%012*# 34,5-# +,(*-#./# +,(*-# $%012*# 34,5-# # 34,5-# 8,5%39#/,'$:;<# Finally,vendorawarenessandusageseemstoindicateconfusioninthemarket.Mostcloudpundits recognizeamazonwebservicesastheleaderinpubliciaas,yetamazonfallsbehindmicrosoft,google, andibmasacompanycomptiarespondentsrecognizeasatopchoiceinthisfield.similarly,thetop systemcompaniesclaimtouseforprivatecloudconstructionisvmware svcloud,butthisdoesnot 5 th $Annual$Trends$in$Cloud$Computing:Section1 8

11 trackwithindustryobservationsthatopenstackhasthegreatestmomentum.instead,companiesare likelyawareofusingvmwareforvirtualizationandareassumingthattheyusethesamevendorfor privatecloud(thisfindingwascorroboratedbysimilardatainrightscale sstudy). Theconfusioncanmostlikelybetracedbacktothedefiningcharacteristicsofatruecloudsolution. AccordingtotheNISTdefinitionthathasbeeninplacesinceCompTIA sinauguralstudy,those characteristicsarebroadnetworkaccess,resourcepooling,measuredservice,onbdemandselfservice, andrapidelasticity.anobviousproblemwiththesecharacteristicsisthattheythemselvesrequiresome definition.forexample,howrapidlymustsystemsgroworshrinktoconstituterapidelasticity?other characteristicsleavesomeroomforinterpretation.forexample,aprovidermightclaimthatatwobyear contractwithmonthlychargesconstitutesmeasuredservice. Anadditionalcharacteristichascreptintomanyclouddiscussions thetendencytoclassifyasystemas cloudbbasedifitisexternallymanaged.withamazonwebservicesactingastheprimaryexampleof cloudcomputingafteritslaunchin2006,manypeopleweredrawntoadiscussionofcloudcomputing becomingasortofutility.externalprovisionandmanagementfitintothisframework,eventhoughthe definingcloudcharacteristicscanbeprovidedoninternalsystemswiththerightsoftware. Therearemanyavailablecomputingmodels.SomefitastrictNISTdefinitionofcloudcomputingand someonlyshareasubsetofcharacteristics.ultimately,enduserswillchoosethesystemsthatclosest meettheirneedsforfunctionandcost.overlookingindividualcharacteristicsmayleadtoacompetitive disadvantage,butthisisalongbtermriskasmanycompaniesarestillgainingfamiliaritywith virtualizationorhostedmodels.fornow,agreeingonnomenclatureisnotcritical.itismoreimportant tounderstandhowtousealltheavailableoptionstobuilditsystemsthatdrivetoday sbusinesses forward. 5 th $Annual$Trends$in$Cloud$Computing:Section1 9

12 SECTION 2: Usage Patterns

13 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. 5 th $Annual$Trends$in$Cloud$Computing:Section2 2

14 BuildingTowardsCloud:EnabledArchitecture Cloudcomputinghasbecomeanacceptedoptionforcompaniesastheyplanouttheirsystemsand architecture,andeachcompanywillmovethroughdistinctphasesofadoptionastheyincorporatecloud components.inlastyear scloudstudy,comptiadefinedfourstagesinthecloudadoptionprogression forcompanieswhowereadoptingcloudfortheirownbusinessoperations(akaendusers).companies willenterthisprogressionandmovethroughstagesbasedonseveralfactors,includingtechnicalknowc how,risktolerance,andbudgetaryconstraints. "#$%'%#()#*+,#-,.//0#* 12(.,03.*4 5#*67,0)78"9/. :$""+,#%$7)#* ;,8*/<#,3.%=; *%%+),)-%%+),)+%%+) -#./0$)1/'#"2) -304%56),78.30") "#$%'() <3%(20'() -'/0$8>-3'$6"#36) -3''9)'9)$'($6:5) *(56=3%'() 1#25';0D%'() +6$#3058) -%8;6(5);'"6/2) +'#3$6E)1';:<*F) IntheExperimentphase,companiesaresimplybuildingfamiliaritywiththecloudmodel,including terminologyandbasicworkingprinciples.duringthisstage,acompanymaytestoutcloudsystemsby buildingsamplevirtualinstancesorusingsoftwareonafreetrialbasis.theseproofcofcconcept undertakingswillmostoftenbeperformedonpubliccloudsystems,sincetheyarereadilyavailableand requireminimalinvestment.companiesmayinvestigatetheprosandconsofprivateclouds,butvery fewwillbeginbuildingoutthosesystemsatthistime. Next,companieswillmoveintoaNon:criticalUsestage.Here,cloudsystemswillactuallybeusedfor operationalworkflow,thoughbusinesseswillnotchoosetomigratetheirmostimportantsystemsor mostsensitivedata.typically,aperipheralsystemwillbechosen,whichstillallowscompaniestolearn 5 th $Annual$Trends$in$Cloud$Computing:Section2 3

15 5 th $Annual$Trends$in$Cloud$Computing:Section2 4 thefinedetailsbehindacloudtransitionandalsogainafirstchandappreciationfortheintegration challenges. Onceacertainlevelofcomfortwiththecloudmodelhasbeenachieved,companieswillmoveintoFull Production.Businessesatthisstagehaveunderstoodandmitigatedtheirsecurityconcernsandview cloudsystemsasaviableoptionformostitoperations,includingsomesystemsthatmaybebusinessc critical.policiesandprocedureswillbebuiltandmodifiedasfirmschangethewaytheyprocureand utilizetechnology. ThefinalstepintheprogressionisamovetoTransformedIT.Thosecompaniesthathavestartedup overthepastfivetosevenyears,typicallyhavingbuiltalltheirbusinesssystemsaroundcloudsolutions, aretheprimaryresidentsofthiscategoryatthispointintime.here,companiesarenotsimplymoving existingsystemsorapplicationsintothecloud;theyarechangingthewaytheyworkinordertoreapthe fullbenefit. Inthisfinalstage,somethinginteresting happens:thecloudisnolongeradistinct focusarea.ratherthantakingspecific actionsforcloudservices,suchas technicalmigrationsorworkflow restructuring,companiesconsiderthe entirearchitecture.withapplicationsin placeandpoliciesset,businessescan concentrateontheoperationofitand theinnovativewaytheywouldliketouse theirtechnologytodrivegrowth.instead ofbeingafocalpoint,cloudisdeeply integratedintonewformsofit operationsandmanagement. EvenwiththetypicalinflationthatcomeswithselfCclassification,veryfewcompaniesplacethemselves inthetransformeditstage.fullproductionmaybeslightlyinflated,butthemajorityoffirmstoday shouldfallsomewhereinthemiddletwocategories.ahealthynumberoffirmsarestillenteringthe market,ledbysmallfirmsandthosefirmsthatmayhaveamorecautiousapproachbasedon technologyfamiliarityorregulatoryconcerns. SolvingChallengesinEachStage Ascloudcomputingwasmaturing,securitywasamajorhurdlethatkeptcompaniesfromenteringthe Experimentphase.Otherfactorssuchasperformanceorreliabilityalsoplayedarole.Now,withthe adoptionrateover90%,therearefewvariablesthatarestillkeepingcompaniesfromexploringcloud options. Thebarrierstoentryhavelargelybeenreplacedbythechallengesthatcomeasbusinessesimplement cloudsystems.thefirstchallengeissimplyinmovingfromonestagetoanother.thiscouldcomeasa surprisetosomefirms,astheymayholdanexpectationthattheinitialmigrationandintegrationpose thelargestobstaclestosmoothcloudoperations. "#$ %"#$ %"#$ "#$ '#$ (#$ ()#$ #$ )#$ #$ (*#$ *#$ +,-./$ 0/1234$ 54,66$ "#$%#'()#*)+,,'-.'/#0$1.'234+' 789/-24/:;$ <=:>?-2@?,6$ AB/$ C-,:BD=-4/1$ EC$ F366$ G-=13?@=:$ 5=3-?/H$I=49CEJKB$ "# $%'()$*+,-.$/$0)1'-$0123'45$L$M,B/H$%**$AN5N$O-4B$3B2:.$?6=31$?=493@:.$ <7CH$ P#$ <7CH$ )#$ <7CH$ (#$ <7CH$ #$

16 Infact,companiesthathaveprogressedthroughseveraladoptionstagesfindthatthetransitions becomemoredifficultastheadoptionstrategymovesforward.ofthosecompaniesthathave progressedtothenonccriticalusestage,28%ratethetransitionfromtheexperimentstageasrequiring significanteffort.ontheotherendofthescale,63%ofcompaniesthathaveprogressedtothe TransformedITstageratethefinaltransitionasrequiringsignificanteffort. "#$%'()"*)+,-"*.)/0,1)2'3.4)',)2'3.4) 56740"14*') %#$ %"#$ "#$ 8,*9$0":$3)) ;<4) 8,*9$0":$3)) ;<4) (#$ '#$ %#$ =%)) >0,?%$:,*) =%)) >0,?%$:,*) (%#$ '#$ *+,-./01023$45267$ 82946/74$45267$ :-;<-=./<7$45267$ "# $%'()$*+,-.$/$0)1'-$0123'45$F$G/E4?$%))$HI:I$=6AE$>E-<;$.02>9$.2A,>J<;$ Largercompaniestendtohavemorematurityincloudadoptionthansmallercompanies,buttheyalso havemoredifficultyinmakingtransitions.considerthetransitionbetweennonccriticaluseandfull Production:43%oflargecompaniessaidthatthistransitionrequiredsignificanteffort,comparedtojust 25%ofsmallbusinesses.Whilethelargecompanieshavemoreresourcesthattheycandevotetothe problem,theyalsohavemuchgreatercomplexity.solutionprovidersassistingsmallbusinessesshould takenotethatcloudcomputingmayopennewdoorsfortheirclients,butaddingcomplexityto workfloworarchitecturemaycomplicatetheroutetocloudcbasedoperations. Withineachstage,therearedifferentchallengesthatrisefromadoptingcloudcomputing.Integration, ofcourse,isaconstantchallengefromstagetostage.thebulkofthecostandeffortforanyitprojectis typicallyconsumedbyintegration,andcloudcomputingisnodifferent.ifanything,cloudintegration maybeevenmorechallengingforfirmsasitrequireswebapisthatmaybeunfamiliartothetechnical team.furthermore,thetechnicalteammaynotalwaysbedirectlyinvolvedinprocurement.integration 5 th $Annual$Trends$in$Cloud$Computing:Section2 5

17 5 th $Annual$Trends$in$Cloud$Computing:Section2 6 maybecomplicatedbylinesofbusinessprocuringtheirownapplicationswithoutbeingawareofhow theywillfitintotheoverallsystem. IntheExperimentstage,challengesalsoincludeROIcalculationandthecloudlearningcurve.As companiesbuildtheirunderstandingofcloudcomputinginpreparationforbusinessuse,theyneedhelp indeterminingtheassociatedcostsandbecomingproficientwiththeavailableoptions.educationis especiallyimportantforallbusinesses thelearningcurvewascitedasachallengeby40%oflarge companies,34%ofmediumcsizedfirms,and40%ofsmallbusinesses. AscompaniesmoveintotheNonCcriticalUsestage,thetechnicalchallengesbecomemoreapparent. Thelearningcurvenowfocusesonthedetailsbehindacloudmigration,suchasthesecuritythatwillbe requiredandtheactualapplicationusagethatdrivesthesolutioncost.inaddition,companiesgrow concernedabouttheportabilityoftheircloudapplication.thirtycfourpercentofcompaniesidentify vendorlockcinasachallengeforthenonccriticalusestage,comparedtojust23%ofcompanieswho identifythisasachallengefortheexperimentstage. Movingforward,thechallengesbegintoshiftfromtechnicaltobusinessCrelated.Thetoptwochallenges thatcompaniesciteinthefullproductionstagearemakingchangestoitpolicy(43%)andmodifying workflow(41%).thisiswhentechnicalexpertisemustbematchedwithbusinessknowledge.businesses arefindingthatthegreatestbenefitsofcloudcomputingarenotnecessarilythecostcrelatedperksthat comefromswappingsystems,butinsteadaretheagilityandspeedthatcomefromreconfiguring operations. ThisrealizationleadsintothefinalstageofTransformedIT,whereworkflowmodificationisthetop challenge.ascompaniesrecarchitecttheirbusinessprocesses(includingsystems,applications,and workflow),theyrealizethatevenfurtherinvestmentisneededtoreachanoptimalstate.fortycfour percentofcompaniescitehighercthancexpectedcostsasachallengeinthisstage,showingthatthe opportunityforvaluablecloudservicescertainlydoesnotendafterthefirstmigration. MovingtoaMulti:CloudEnvironment Theactionsthatcompaniesaretakingfollowingtheirfirstmigrationactasfurtherproofofthe opportunitiesthatexist.bygaininghandsconexperiencewithcloudsystems,businessesareableto comparethetheoreticaltothepracticalandmakedecisionsonhowtobestoptimizetheir infrastructure. Thenumberofcompaniesmakingsecondarymigrationsisrising.Lastyear,44%ofcompanieshad movedeitherinfrastructureorapplicationsfromonepubliccloudtoanother,25%ofcompanieshad movedfromapubliccloudintoaprivatecloud,and24%ofcompanieshadmovedfromapubliccloud backtoanoncpremisesystem.theprimarytakeawayfromallthismovementisthatnoonemodelisthe bestanswerforeveryworkload.companieswillbeutilizingeverytypeofsystemastheyfindthemultic cloudapproachthatworksforthem,andthemanagementofallthesesystemswillbeasignificant challengeformostfirms. Thereasonsforsecondarymigrationsvarydependingonthetypeoftransition.Movementbetweentwo publiccloudproviderscouldbedrivenbyanumberoffactors,suchasbetterofferings/features(citedby 44%ofcompaniesmakingsuchamove),securityconcerns(32%),cost(31%)oradesireforopen

18 standards(31%).movementbacktoanoncpremisesystemwasprimarilydrivenbysecurity(60%).other reasonsforsuchamoveincludedfailuretointegrate(27%)andfailuretoachievecostgoals(21%). "#$%'($)"*' +),%*-+'./' =0>' "#$%'($)"*' +),%*-+'.0' 0?>' %8-' 9:82-7' +%,12-' ($)"*' ()7614:';<(' 9)"+-B'()76CD;E8' "# $%'()$*+,-.$/$0)1'-$0123'45'F'<18-B'=GG'HI9I'J+78'"8%4K'$)"*')76"L4K' Ofcourse,thesemigrationsdonotindicatewholesalemovesfromonemodeltoanother.Acompany maymoveanumberofapplicationstoapubliccloudproviderinearlystagesofadoption,thenmove someofthoseapplicationstoaprivatecloudandsomebackonpremisewhileleavingsomeinthe originalcloudprovider.notonlyisitchallengingtodeterminethecorrectmodelforapplication,butit alsorequiresefforttomakethetransition.twentycsixpercentofcompaniesmigratingfromonepublic cloudtoanothersaidthatthesecondarymoveactuallyrequiredmoreeffortthantheinitialproject. Thislevelofeffortisstartingtobeunderstoodbycompanieswhoareinearlierstagesofadoptionand anticipatingasecondarymove.thirtycthreepercentofcompaniesestimatethatasecondarymigration willrequiremoreeffortthanthefirst.nearly40%ofthesecompaniesexpecttomakesuchamovein thenextyear,citingreasonssuchassecurity(49%),cost(49%),andofferingsorfeatures(42%).solution providerswillhavetobeawareofthemanydifferentvendorsinthisnewlandscape,andtheymayturn todistributorstoactasaninitialfilterfordiscoveringthebestoptions. 5 th $Annual$Trends$in$Cloud$Computing:Section2 7

19 SECTION 3: Challenges

20 KeyPoints CompaniesmovingthroughtheprogressionmodeltowardsTransformedITwillneedtounderstand thevariousapplicationsthatarebeingusedandchoosethebestmodelforrunningthose applications.themostcommoncloudapplicationsarecurrentlyproductivitysuitesand ,but manyotherapplicationsarebecomingcloudcandidates,especiallyinthesmbspace. RogueIT,wherealineofbusinessprocurestechnologywithoutinvolvingtheITdepartment,isnot necessaryrampantbutisstillarealphenomenon.only12%ofcompaniessaytheydonotconsult withtheitdepartmentorallowthemtogivefinalapproval,butissuessuchasintegrationand securityarestillreasonforbusinessestobuildaprocurementprocessthatallowseveryonetovoice theirconcerns. AsbusinessescontinuetotransformtoutilizecloudIT,therewillbeaseriesofinternalchangesthat willtakeplace.decidingonnewpolicies/procedures,hiringandretrainingtoimprovetheit departmentskillmix,andcontractingwithoutsidefirmsareallactivitiesthatcompaniesundertake astheyreconfiguretheiroperations. 5 th $Annual$Trends$in$Cloud$Computing:Section3 2

21 RestructuringOperationsonaCloudFoundation AscompaniesmovemoreandmoretowardsacloudCbasedarchitecture(asdescribedinSection2),they willfocuslessoncloudinfrastructureandmoreonbusinessprocessandworkflow.thisisamajorpart ofthetransitiontotransformedit:choosingnewapplications(orrebuildingapplications)inorderto takefulladvantageofcloudcharacteristicsandbuildingnewpoliciesandproceduresthatenablegreater businessagility. "#$%'((")*+,#-./+0123#4(+-35)61 54+"" 71%)$ "#$%##'()*+",-.$/0' 123' 453' 623' 789$:' 4;3' 1<3' 1=3' <43' 413' 4A3' B*::9C*)9-*%' <=3' 443' 453' D$)/"9:'+#E/*(' <23' 4<3' 463' FC'()#%,' <=3' <53' 4=3' BGH' =<3' <A3' 423' IG'89%9J8%/' ==3' <43' 4K3' I:('+#E' =K3' <K3' <<3' 7L(%#'89%9J8%/' ;63' <13' ==3' 7GM' ;<3' =<3' <<3' N$%9%,$9:'89%9J8%/' ;63' ;A3' =;3' B9::'B%/)' ;13' ==3' =13' "# $%'()$*+,-.$/$0)1'-$0123'45'S'9#P'=11'TUOU'V)8#'"#$%J',:*"+',*8("-%J' Thefirststepinthisoperationaljourneyistounderstandtheapplicationsthatarebeingusedand choosethebestmodelforrunningthoseapplications.alargepartoftheclouddiscussionoverthepast fiveyearshascenteredonsoftwaredevelopment,withdevelopersnowabletoquicklycreatetest environmentsandbuildapplicationsoutsidetheconstraintsofanoncpremisesystem.thediscussionis quicklyturningtothoseapplications,whichcantakeadvantageofelasticresourcesandcloudcbased datastores.obviously,theaddressablemarketforapplicationusageisfargreaterthanforapplication development. Businessproductivitysuitesand arethetwomostpopularapplicationsthatcompaniesareplacing inthecloud.itisverylikelythatsomeoftheseapplicationsaresimplyhostedapplications,butthisisa goodexampleofacasewheredifferencesinterminologyarelessimportant.formostendusers,the primaryconcernforanapplicationlike isthattheroutineupkeepandmaintenanceareperformed 5 th $Annual$Trends$in$Cloud$Computing:Section3 3

22 externallyratherthantyingupinternalresources.sincethemainfunctionoftheseapplicationsislargely unchangedbetweenahostedmodelandacloudmodel,thefewdifferencesthatexistmaybetoosubtle tomakeanimpactformanyusers. Withotherapplications,though,thecloudmaybeopeningnewpossibilities.CompTIAhaspreviously notedthatmediumcsizedbusinessesrepresentasweetspotforcloudoperationsbecausetheir infrastructureneedsaregrowingwhiletheirresourcesarestillfairlyconstrained.thecurrent applicationusagepatternsvalidatethisposition mediumcsizedbusinessesareoftenclosertolarge firmsincloudapplicationusage,andtheyareactuallyleadinglargefirmsinsomeinstances.thisshows thatmediumcsizedfirmsaremoreaggressivelytargetingcloudapplicationsasawaytoexpandtheir technologyfootprintbeyondwhattheycouldachievethroughtraditionalmeans. 4/-,).)+")56+)'/)7+'#8)9/6):+";)*/1<+"$().)"2/321"')=8")>?0)<6/#,6()) "#$ '#$ %"#$ "#$%"'()*+,($"-).)'/)0#/1) "2/32%) ) > 6*=95.+4*5$?,/3:$2/,34/*$ %> D0+),+B),)=A$/7$?,/3:$2/,34/*$ "> <99:$=/$?9*=.+,)E9$=9?C*/,/5A$ > 6*?/..9?=$/-9.+4/*$ ()*+,$+--./0+,$ 1/*23,4*5$ "# $%'()$*+,-.$/$0)1'-$0123'45$I$J+29F$'K%$L>@>$M.82$N)=C$,)*9$/7$B32)*922$+--,)?+4/*$-./?3.989*=$ Theavailabilityofcloudapplicationscreatesanewissueforbusinesses.Theeaseofaccessand simplicityofuseallowindividualdepartmentstoutilizetheirownbudgettoprocureapplications(or infrastructure,forthatmatter).thisbehavior,knownasrogueitsincetheitfunctionissometimes bypassed,isappealingtobusinessunitssincetheyhavethebestknowledgeofwhattheyrequireto achievetheirgoals.whilerogueitmaynotyetberampant,itisgrowing:companiesinthecomptia surveysawlinesofbusinessprocuringcloudapplicationsanywherefrom18%to36%ofthetime,a slightincreasefromlastyear snumbers. 5 th $Annual$Trends$in$Cloud$Computing:Section3 4

23 ThemainissuewithrogueITiswhetherornottheITdepartmentisbeingleftcompletelyoutofthe loop,butmostinstancesoflobprocurementstillkeepitinvolvedinsomeway.infact,theincidenceof ITdepartmentsonlybeinginformedornotinvolvedatallisdominatedbysmallcompanies,whichoften donothaveanitfunction.forsolutionprovidersservingthesmbspace,thiswillbeanareatowatchas theyincreasinglyactastheoverarchingitfunctionratherthansimplyprovidingpointsolutions. Determiningthebestprocessforprocurementwillbeamajortaskforcompaniesofallsizesmoving forward.allowingthelobtoprocuretechnologyallowsforgreateragility,butitalsohasthepotential tocreatecostlyproblems.integrationandsecurityaretheprimaryissuesthatalobmightnotconsider. Integrationtypicallyaccountsforthelion sshareofcostandeffortinanitproject,anditismuchmore effectivetodealwithsecurityupfrontratherthanrepairabreach.itdepartmentsandsolution providerscanhelpdrivethediscussiontowardsanewstyleofprocurementthatallowsforagilitywhile ensuringthatitconcernsaresurfaced. InternalChanges BuildingnewprocessesforprocurementisjustthefirststepinITbecomingmoreofapartnertothe linesofbusinessratherthansimplyasupplier.theabilitytousetechnologythroughthecloudcan streamlinethewayitisprovided,butitcanalsostreamlinegeneralworkflows.atransformationof internaloperationsistakingplaceascompaniesareapplyingtechnologyacrosstheentireorganization incompletelynewways. Thistransformationdoesnotcomefromabusinesssimplyapplyingthecurrentknowledgeandskillsof anitdepartmentorsolutionprovidertothetaskathand.aswithprocurement,theremustbenew waysofcombiningtheitfunctionwithotherfunctionalareasinordertoproduceanewstandardfor operations. SmallbusinessesespeciallyshouldtakecaretoexaminetheirITandbusinessoperations.TwentyCthree percentofsmallbusinessesusingcloudsolutionshavenotundertakenanyoperationalchangesatthis point,comparedtojust3%ofmediumcsizedbusinessesand9%oflargebusinesses.partly,thisisdueto theamountoftimespentinthecloudsofar operationalchangesarelesscommonamonglate adopters,wherethereisaheavierconcentrationofsmallbusinesses.itisalsolikelythatmanysmall businesseshavelessbandwidthtoreviewtheiroperationalprocedures.withcloudcomputingbeinga lessdirectmethodforbuildingandusingit,itmaybeadvisableforsmallercompaniestobeginbuilding moreoperationalaptitudeinordertooptimizetheirworkflowwithcloudsystems. 5 th $Annual$Trends$in$Cloud$Computing:Section3 5

24 5 th $Annual$Trends$in$Cloud$Computing:Section3 6 Thereisanunfortunatesidetothisdisruptionandstreamlining.Cloudcomputinghascausedsome amountoftrepidationamongitstaffthankstothepossibilityofoutsourcingcomputeresource(andthe subsequentmaintenance).nearlyoneinfivecompaniesreportsreducingthenumberofitstaff, showingthatthismaybealogicalstepforsomebusinesses.however,itshouldbenotedthatthisaction islistedatthebottomofthelistofchangesacompanymayhaveundertaken,justasitisnearthe bottomofthelistofbenefitslistedbycloudusers.asthejobmarketadjuststotherealitiesofcloud, proactiveitworkerscangetinvolvedinavarietyofotheractionstheirbusinessmaybetakingtobetter utilizecloudresources.thismayinvolvechangestopolicy,itrestructuring,oruseofoutsidefirms. PoliciesandProcedures Changestopolicyorprocedurearethemostcommonactiontakenbycompanieswhohavemovedinto acloudenvironment.whetheritisredefiningstepsthattheitteammusttakeastheyadminister solutionsorbuildingnewprocessesformakingdecisionsontechnology,actionsrelatedtopolicyand procedurearethetopthreeitemsonthelistofchangesdrivenbycloudcomputing. Continuingatrendfrompreviousyears,securitytopsthelistofitemsthatcompaniesareaddressingas theymodifypolicies.throughtheearlydaysofcloudadoption,securitywascommonlycitedasthe primefactorpreventingcompaniesfrommovingtocloudsolutions.withthevastmajorityofcompanies havingstartedsomeformofcloudadoption,itisapparentthatcompaniesareeitheracceptingsome "#$%"'()*"+$,(-%./$"(01()'234(( "#$ #$ %#$ %#$ %"#$ %"#$ '%#$ ('#$ )#$ #$ %#$ %%#$ %"#$ (%#$ ("#$ '(#$ *+,-.+,$/-01+2$34$56$789:$ ;3/829.8+,$<=8>$3-87=,+$.30?9/@$ * ,$56$,+?9280+/8$ A+<$03/=832=/BC09/9B+0+/8$833D7$ E,9?8+,$03/=832=/BC09/9B+0+/8$833D7$ A+<$?3D=.=+7$432$56$,+.=7=3/$09F=/B$ G-=D8$/+<$?3D=.=+7C?23.+,-2+7$ ;>9/B+,$+H=7I/B$?3D=.=+7C?23.+,-2+7$ JK($ JK%$ L3-2.+M$;30?65EN7$ "# $%'()$*+,-.$/$0)1'-$0123'45$O$G97+M$%))$PQLQ$R207$-7=/B$.D3-,$.30?-I/B$

25 levelofriskorfindingwaystomitigatecloudsecurityconcerns atleastfortheapplicationstheyare placinginthecloud.however,thediscussionaroundsecurityhasnowshiftedfromaddressingbasic concerns(whichdrivesinitialadoption)tofocusingonfinerdetails(whichdrivesfullproductionuse). Anotherareafrequentlyaddressedinpolicychangesistheproperstorageofcompanydata.CompTIA s studiesonthebigdatatrendshowthatmanycompaniesfeelthattheiruseofdataislessthanoptimal, inpartbecausetheydonothavestrongoverarchingdatamanagementpractices.theuseofcloud systemsforstorageandbackuponlycomplicatesanalreadycomplexsituation,andmanycompanies maybenefitfromadataauditandeducationonbestpracticesinmanagingdatainacloudenvironment. Securityanddatamanagementareexamplesofpoliciesthatarebroaderinnatureandapplytothe entirecompany.buildingthesepolicieswillbeacrosscdepartmentaleffort,butshouldstillinvolve significantinputfromtheitteam.theitteammustlearnhowtomeettheneedsofthebusinesswith minimaldelay,andtheyalsomustproperlyunderstandandconveytheneedtomaintainacompany s riskposture.thebestpolicieswillrepresentanagreementatalllevelsofthecompanyonhowcloud resourceswillbeprocuredandused.thiswillnotnecessarilymeanthatallinformationflowsthrough theitteamforapproval,buttheitteamshouldbecomfortablewiththeirlevelofawarenessand responsibilityintheprocess. InternalITDepartmentChanges AsidefrompoliciesandproceduresthatgetcreatedoralteredwithinanITdepartment,otherchanges maytakeplacethatallowittobebetterequippedtodealwithacloudenvironment.thesechanges maybeperipheraltothespecificcloudsolutionsbeingputinplace,buttheystillhaveaneffectonthe overallimplementationcost.companiespursuingcloudprojectsshouldconsiderwhethertheseactions wouldbeaworthwhilepartoftheircloudinvestmentgiventheirbusinessobjectives. Thefirstareatoconsideristheneedforneworimprovedtoolstocontrolormonitoracloudsolution.In somecases,thiscouldbeasimpleextension.forexample,asystemadministratormayusesoftware providedbyhisvirtualizationvendortospinupnewvirtualmachines.inacloudsituation,thiswilllikely behandledthroughawebfrontend,andtheremaybelittletrainingrequiredtocreatenewservers. Theremayevenbegenericmachineimagesthathavebeensavedbyotheruserstoeliminatethemore tediousstepsinvolvedingettingavmorinstanceupandrunning. Othertoolswillbenewadditionsto theittoolbox.thirdpartysoftware maybeneededthatcanprovidea comprehensiveviewofan architecture,allowingadministrators toseevitalinformationfromboth cloudsystemsandoncpremise systemsinasinglepaneofglass. Theremaybearequirementtotiea company sfinancialsystemtoacloud providertodetermineusagefor billingpurposes.theseareexamples oftoolsthatcanbemajorprojectson theirown,drivingcostshigherand TypesofSkills/RolesCompaniesHave AddedtoITDepartments 52% Cloudarchitect 49% Skillstobuildprivateclouds 48% Departmentalliaisons 40% Integrationspecialists 25% Compliancespecialist 5 th $Annual$Trends$in$Cloud$Computing:Section3 7

26 5 th $Annual$Trends$in$Cloud$Computing:Section3 8 necessitatingaheavytimeinvestmentaswell. TheotherprimaryareatoconsiderwithintheITdepartmentisthepersonnel.Asmentionedbefore, staffreductionmaybeanaftereffectofacloudtransition,butthemorelikelyscenarioisthatcompanies willrestructuretheitdepartmentinsomeway.infact,44%ofcompaniesthathaveperformedit restructuringhavehirednewworkerstobolsteritefforts asignificantjumpfromlastyear.thismay beespeciallytruewherecloudcomputingisusedtoaddnewcapabilitiestoabusiness,andasizableof amountofequipmentremainsoncpremise. Atanorganizationallevel,themovementtowardstransitioningtheITdepartmentfromsupplierto partnerseemstobemakinggoodprogress.overhalfofthecompaniesinthesurvey(57%)saythatthe ITteamhasbeenabletomoveawayfrommaintenancetasksandbecomeinvolvedinmoreinnovative work.anevengreaternumber(69%)saythattheitdepartmenthasbecomemoreintegratedwith otherlinesofbusinesstounderstandhowtomeettheirneedsthroughcloudsolutions.theimplication isthatthetechnicalknowledgeheldbytheseworkersisstillvaluable,andnewrolesarebeing developedthatrequirenewskills. UseofOutsideCompanies$ OneofthebiggestsurpriseswithITCrelatedchangesisthelownumberofcompaniesthatareusing outsidefirms,althoughthatnumberappearstobegrowing.lastyear,only11%ofcompanies contractedwithanoutsidefirmfortheircloudinitiatives.thisyear,thenumbergrewto17%,as companiesofallsizesincreasedtheirutilizationofexternalservicesandsupport. Whilethedirectionforthirdpartyassistanceispositive,theincidenceamongthesmallestcompanies (whichareleastlikelytohaveinternalexpertise)hasstillnottakenoffdramatically.thereareseveral factorsthatcouldbecontributingtothis.amongcompaniesthatdidpartnerwithasolutionprovider, thetopreasonthattheyeliminatedpotentialcandidateswasthatthecostsweretoohigh.although lowercostsisstillthetopdriverforcloudsolutions,manycompaniesfindthatparticularapplicationsdo notactuallyhavelowercosts,mainlyduetounexpectedexpenses.ascompaniesmorecloselyexamine theirtransitioncost,theadditionaloverheadrequiredtocontracttheworkmightbeenoughtodeter themcompletelyfromoutsourcing. Lookingatchannelfirmsthatareprovidingcloudservices,67%saythattheyexperiencedademandfor cloudservicesthatoutstrippedtheircapacitytosupplyasolution.thiscouldbeastatementoftechnical capabilityorsimplyrawbandwidth.inaddition,50%saidthattheylostasaletoanonctraditionalit solutionprovider,suchasavendor,distributor,ortelecomcarrier.bothofthesenumbersare significantlyhigherthanlastyear sresults. Takentogether,thesedatapointssuggestthattherearesomegaps eitherrealorperceived inthe abilityofsolutionproviderstoadequatelysupportcloudservices.forsmbs,thehurdlesofadditional overheadcostandstruggleswithsolutionprovidercapacitymaybetoolargetoovercome.asaresult, thesecompaniesmayworkdirectlywithcloudprovidersinmanyinstances.eventhoughtheymay receiveservicesbeyondtheactualproductbeingprocured,thisislikelynotconsidered contracting by theendusersinceitallcomesdirectlyfromtheprovider. Solutionprovidersshouldbeawarethattheseperceptionsmayexistandshouldtakeactiontoaddress them.fortheissueofcost,solutionproviderswillneedtobepreparedtofullyexplainthevalueofa

27 cloudsolutionandtheaddedbenefitthattheproviderisabletodeliver.theissueofcapacitymaybe morechallenging.ifacustomerdesiresasolutionbeyondthetechnicalcapabilityofaproviderorifthe providerisfullybooked,hiringortrainingcansolvetheproblembutarenotimmediatefixes.one suggestionforsolutionprovidersistolookforpartnerswithspecializedexpertise,thenactasafocal pointwiththecustomertoprovideacompletesolution. 5 th $Annual$Trends$in$Cloud$Computing:Section3 9

28 SECTION 4: Business Model Analysis

29 KeyPoints Alongwithgreateradoptionofcloudwithinthechannelhascomeamorepositiveoutlook.Nearly twothirds(63%)ofchannelfirmsdescribedtheimpactcloudcomputinghashadonthechannelin thepastfiveyearsas extremelypositive, whileanother30%deemedit positive. Channelfirms alsohavemoreconfidenceintheirabilitieswithcloudandtheroleitplaysintheiroverallportfolio. FiftyCsevenpercentofrespondentsdescribedtheircloudbusinessasmatureandstrategic, comparedwith46%withsimilarsentimentin2013. AmongthecloudCbasedbusinessmodelframeworksoutlinedbyCompTIA,channelfirmsreported significantincreasesinthestrategicimportanceofeachofthosetheyoperateincomparedwitha yearago.therewassomeretrenchment,however,inthepercentageoffirmsthatareengagedin twoofthefourframeworksfrom2013.theenable/integrateandmanage/supportmodelsbothsaw adeclineinparticipation. ManyoftheactivitiesandservicesintheEnable/IntegrateandManage/Supportcloudmodels requireacomplexsetofskills.someofthechannelfirmsthatinitiallyrushedintothismarketmay havefoundtheworkeitherexceededtheircapacitytoaddresswhilecontinuingtobalancetheir legacybusinessorthatthenecessaryresourcestotrainorretrainstaffontheseserviceswastoo costly.oneofthekeychallengesofdoingcloudcbasedintegrationishavingaworkingknowledgeof amorassofwebcbasedapis,adevelopmentskillthatisnotinthewheelhouseofthemajorityofthe channel. CommitmenttotheBuildbusinessmodelforcloudappearstobethestrongest.Morethanhalfof channelfirmstoday(52%)participateinthismodel,with64%ofthemdescribingthispartoftheir cloudbusinessasstrategicandcore,comparedwith46%whodidsoin th $Annual$Trends$in$Cloud$Computing:Section4 2

30 BusinessTransformationwithintheChannel:PathtotheCloud Justasenduserorganizationsaremovingthroughvariousstagesofadoptionwithrespecttocloud computing,theitchannelhasbeenchartingitsowncourseoverthelastfiveyears.generallyspeaking, channelfirmthinkinghasevolvedfrom cloudissomethingtofear to cloudisacatalystforbusiness transformationandnewopportunities. Infact,4in10respondentsinCompTIA srecent4 th $Annual$ State$of$the$Channelstudycreditedcloudcomputingforpushingtheminnewbusinessdirections,the topresponseamidahostofotherbusinesstransformationdriversthatintheirownrightarecloudc related. Themostpressingquestionchannelfirmsfacerelatedtocloudadoptionconcernsbusinessmodel choice orchoicesasthecasemaybe.inthissectionofcomptia s5 th $Annual$Trends$in$Cloud$ Computingreport,wewilldiscussthevariousmodelsthathavegainedtractionwithinthechanneltoday andprovidedetailsintohowthose modelsarestructuredandperforming. Firstoff,however,let sacknowledgethat thechannelhascomealongwaywith cloudfromwhereitsatfiveyearsago.in 2010,just1in10channelfirmsreported anyinvolvementwithsellingorusing cloudsolutions.today,somelevelof adoptionisnearcuniversal,withheavy involvementquiteprevalentinsome circles.thenumberofcompanies identifyingas borninthecloud has jumpedconsiderably,thoughit s importanttonotethatthismightbe moreafunctionoflatchingontocatchy marketinglingothanitisthatallofthese "#$%"'(%)%*+)+',-"'(.%//0*'12+#/0++'3"%/+,-"$%4-/'?/*54(35%7$,($($"9(42"0;*$%( ")+$4(#*2($"9(%"2'0"%(+$4(<=(4"/'"2>( "%2"(#*2(2"0522$,(2"'"$5"()*4"/( 8"9(:$+$0+/()*4"/%(+2"()*2"(/502+;'"( 6"$4*2%(35%7$,(#*2(07+$,"( 1+2,$%(*$(32*450-(%+/"%(4"0/$$,( "#"$%'"()*'"(+,+$%-(*.%*/"%0"$0"( companiesarepurelycloudcbasedandnotofferinganytraditionalchannelbusinesslinessuchas productresalesorprojectwork. Alongwithgreateradoptionhascomeamorepositiveoutlook.Nearlytwothirds(63%)ofchannelfirms describedtheimpactcloudcomputinghashadonthechannelinthepastfiveyearsas extremely positive, whileanother30%deemedit positive. Smallerchannelfirmsgavehighermarkstocloud s impactthanmediumandlargecsizedcompanies,74%versus52%and48%respectively.thisisperhaps reflectiveofthefactthattheytendtoselltoenduserorganizationsthatarealsoquitesmallinnature. ForSMBs,manywithouttheirownITdepartment,cloudCbasedofferingsopendoorstotechnologythat mightnothavebeenaffordableoreasyforthemtoscaleandmanageintraditionalformats,whilealso providingaccesstolessexpensivesourcesofbasicitneedssuchasstoragecapacity. Revenueclassificationisonecaveattonoteamidstthechannel scloudenthusiasm.whatconstitutes cloudcbasedrevenuevs.oncpremisesornonccloudrevenuecanbeblurryanddefineddifferently dependingonthechannelfirminquestion.consideraresellerthatbundlesacloudcbasedbc/dr solutionwithalargeoncpremiseshardwaresale.thatresellermighttallythatdealastwodifferent sourcesofrevenueorconverselycounttheentiredealasacloudcrelated.thelatteraccountingwould 567' 567' 587' 657' 6:7' 697' "# $%'()$*"("+$,-$"#+$.#(+)$%-54>(D(E+%"A(FGH(IJ@J(<=(07+$$"/(:2)%( 5 th $Annual$Trends$in$Cloud$Computing:Section4 3

31 inflatethatreseller scloudcclassifiedrevenuequitesignificantly.downtheroad,whensomecustomers decidenottoupgradeoncpremisessolutionstothesamedegreetheydotoday,therecouldbea negativeeffectonchannelrevenuereliantoncloudsolutionsonly,absentothersystems,forexample. Channelfirmsalsohavemoreconfidenceintheirabilitieswithcloudandtheroleitplaysintheiroverall portfolio.fiftycsevenpercentofrespondentsdescribedtheircloudbusinessasmatureandstrategic, comparedwith46%withsimilarsentimentin2013.again,smallerchannelfirmsassessedthemselvesas maturewithcloudwithgreaterfrequencythaneithermediumcorlargecompanies.thiscouldcome downtowhatvariouscompaniesaredoingwithcloud.forexample,asmallchannelfirmreselling cloudcbased foritscustomers arelativelylowchangingcfruitsolution wouldrightlycharacterize thatbusinessasquitemature.ontheotherhand,alargercompanyattemptingtoputtogethermore complexcloudofferingssuchasthosethattieintobusinessanalyticsorinvolvecustomdevelopmentfor mobileappsmaystillhaveawaystogotoconsidertheirfunctionsallgrownup. Optimismaboutcloudisevenevidentamongthosechannelfirmsreportingalowdegreeofmaturity withthemodeltoday.roughlyhalf(46%)saidtheywereconfidenttheywereontherightpathwith theircloudefforts,anincreasefrom2013.another46%expressedatleastsomedegreeofconfidencein wheretheyareheaded. "#$%'()*+,*+-./0/1--0"#-)-$0, "#$%7, 8*(19.#- /1--0"+- :1,.;<01=, "#$%%'()*+,-./%) 0+,-./%) 1-"%234%56./%) >+-?578699%') :$,)%"*%7#)#8%-$) 7'+;2<=6,%2) 7+-95)(%6$) 7+*6$%2)>-#8)BCA) -9)BD?EF) G+;$7%H)I+*JKLM,) "# $%'()$*+,-.$/$0)1'-$0123'45)N)O6,%H)PDD)78699%'):$,)>-#8)7'+;2)+Q%$-95,) 5 th $Annual$Trends$in$Cloud$Computing:Section4 4