Unlocking the Value of Cloud and Data Center Services

Transcription

1 Unlocking the Value of Cloud and Data Center Services Where Do We Stand Today and What Are The Decision- Making Factors? Danni Xu Senior Industry Analyst Data Center and Cloud Computing, ICT Practice Frost & Sullivan Asia Pacific 28 Oct 2015

2 Table of Content MARKET DEFINITION AND SCOPE CURRENT STATE OF THE MARKET WHERE DO WE STAND TODAY? WHAT ARE THE DECISION-MAKING FACTORS? 2

3 Market Definition Data Center Services Outsourcing of data centers to a third-party service provider. This is available in two flavors. Business Process Service Level Application OS Server Network Infrastructure Price Chargeable to Customers Source: Frost & Sullivan Analysis 3

4 Market Definition Cloud Computing Services A pool of compute, memory and i/o resources, applications or operating environments with seemingly infinite scalability, delivered as a service over a network, be it private or public. Characteristics On Demand, Self- Service Pay-as-you-use, Metered Consumption Service Types Software as a Service Software delivered through the public or private network Deployment Models Public Private Rapid Elasticity, Scale up/down Shared Pools, Illusion of Infinite Resources Broad Network Access Using Standard Internet Protocols Platform as a Service Development platform as a service Infrastructure as a Service Compute, storage as a service Community Hybrid Source: Frost & Sullivan Analysis 4

5 Table of Content MARKET DEFINITION AND SCOPE CURRENT STATE OF THE MARKET WHERE DO WE STAND TODAY? WHAT ARE THE DECISION-MAKING FACTORS? 5

6 Supply-side Analysis 6

7 Market Activity Heat Map APAC Hyperactive Gaining Momentum Limited Activity Australia & New Zealand 7

8 Market Growth Rate ( ) Country Market Growth Stage Matrix Emerging Growth Sustainable Growth Indonesia Philippines Thailand Malaysia Hong Kong India China Singapore South Korea Australia Nascent Mature Market Size

9 Market Size and Growth Areas At Service Level US$65.2 bn At Service Segment Level US$65.2 bn US$25.7 bn US$25.7 bn 9

10 Major Trends Impacting the Asia Pacific Market Data Center Construction Frenzy Rise of the Hybrid IT Environment Maturing Cloud-enabled Technologies IoT and BDA Software Defined Everything Driving Automation Stricter Laws for Data Sovereignty and Security Vertical Cloud Computing 10

11 Trend 1: Data Center Construction Frenzy Singapore market is a hot bed for construction with about 800,000 square feet of space expected to be added in next three years. Data Center Operator Equinix Google 1-Net Digital Realty Investment Plans Building its largest facility in Asia SG3 Phase 1 1,000 cabinets; Finished 5,000 cabinets Building its second DC in Singapore At an investment of US$380 million, the bigger multi-level facility will be ready in 2017 Building its second facility with 200,000 sq. ft. of space with an investment of about US$200 mn Facility to be opened in 2015 and serve ASEAN At an investment of US$200 mn, the 2 nd facility will have about 177,000 sq. ft. of rentable space. With over 13 MW of power it will connect 50 cloud providers. Telin Singapore Building its second facility in the IDA DC park with 200,000 square feet of total space. Its largest investment outside ID to support the communications hub for the region. Singtel Invest US$285 mn to build its ninth DC in Singapore The 570,000 sq. ft. facility will be completed in Q with a total power capacity of 36MW 11

12 Trend 2: Rise of the Hybrid IT Environment Success in the new environment requires new operating procedures and new price/performance metrics. But, IT cannot support this new perspective. The need: Improve business agility Enhance priceperformance Increase capacity Support user choice and accountability Maintain data security and privacy Foster innovation The solution: Hybrid IT Need to move beyond resource consolidation and virtualization Leverage on best of both worlds public and private drive cost savings without compromising on performance and security Supports business operations and financial processes 12

13 Trend 3: Maturing Cloud-Enabled Technologies IoT and BDA Cloud is enabling the next generation of technologies to be implemented in real-life situations as proof points and gain maturity through these experiences. Cloud computing is becoming the foundation of next-generation technologies of IoT and Big Data Analytics (BDA). It finds strong use case and implementation potential in three areas: Storage cloud computing offers easy access to low cost storage that is accessible anytime anywhere. Most big data solutions leverage on cloud-based technologies to achieve costs and efficiencies. Processing processing large amounts of data simultaneously in real-time can only be achieved through cloud computing. Applications cloud-based applications will be the future of IoT and BDA. 13

14 Trend 4: Software Defined Everything Driving Automation In Asia Pacific mature markets like Japan, Australia and Singapore, software defined data centers are gaining prominence 14

15 Trend 5: Stricter Laws for Data Sovereignty and Security Indonesia imposed a critical law related to the electronic systems and electronics transactions. Indonesia recently became quite critical of data movement and data security and came up with a law to control such things. Regulation 82, as it is called, forces data center service providers and disaster recovery providers to open their facilities inside Indonesia and also to hire local Indonesian staff. The new regulation also require financial institutions to maintain the ownership of their data and the data should also be kept inside Indonesia only. Many banks who were using disaster recovery center outside the country were forced to bring back the operations into Indonesia. Banks had to increase their data center budgets by 5%-10% to accommodate requirements. 15

16 Trend 6: Vertical cloud computing is making its way into the Asia s cloud computing market. Banking Media Retail Cloud computing Transporta tion Vertical Cloud Computing Healthcare Education Vertical cloud computing is a phrase used for describing cloud computing for a particular industry vertical. Vertical cloud computing come with same benefits as cloud computing, but application are designed by keeping in mind the specific requirements of the industry vertical. With many regulators allowing the use of cloud computing in Asia pacific, many startups and big cloud computing vendors are jumping into the vertical cloud computing market. Healthcare and banking lead the market, followed by retail, education, media and transportation 16

17 Demand-side Analysis 17

18 Rise of the New Language of the Cloud. 18

19 Applications increasing outsourcing of strategic/core workloads Collaboration and conferencing were the first to move with core applications like ERP, Security and Desktops catching up. 100% Have not adopted On-premise Cloud-based Pilot Fully Deployed On cloud 8.1% 18.8% 16.0% 14.7% 13.1% 14.9% 15.7% 12.8% 17.3% 17.8% 16.5% 17.0% 80% 60% 34.0% 28.0% 30.9% 28.3% 29.6% 33.0% 35.3% 33.8% 30.1% 35.1% 32.2% 30.9% 40% 34.6% 32.2% 33.0% 37.7% 38.2% 33.0% 30.1% 35.3% 35.3% 30.1% 35.1% 36.4% 20% 23.3% 20.9% 20.2% 19.4% 19.1% 19.1% 18.8% 18.1% 17.3% 17.0% 16.2% 15.7% 0% Video Conferencing / Telephony Human Resource Management (HRM) Infrastructure as a Service (Storage and Computing Resources) Office Productivity Applications (eg Google Docs etc) Customer Relationship Management (CRM) Enterprise Resource Planning (ERP) Content Security (IE / / Web) Desktop Virtualization Financial / Accounting Business Custom Intelligence / Applications Analytics or (Platform as a Reporting Service) Source: 2014 Frost & Sullivan-F5 Cloud User Survey of 420 APAC-based enterprises 19

20 Business decision makers increasing role of non technology decision makers in IT planning and procurement CIOs are still having the key responsibilities of final purchase and sign off, whereas IT managers and end users play the role of identifying needs and short-listing cloud solutions in the organization. Final Signoff Final purchase decision Evaluate solutions Shortlist solutions Identify needs Not involved at any stage CTO/ CIO or IT director/ CSO/ CISO 33.3% 53.1% 36.0% 28.8% 18.1% 5.2% CEO/ CFO/ COO 23.8% 41.7% 23.8% 15.0% 20.5% 7.6% Compliance/risk director 12.1% 26.4% 55.0% 24.8% 20.0% 6.9% Departmental heads/ line-of-business executives 11.7% 17.9% 45.7% 32.6% 32.6% 6.7% IT managers/ IT administrators 11.2% 28.3% 53.8% 39.3% 34.5% 3.1% Security service providers 10.7% 15.2% 38.1% 31.0% 25.5% 12.9% End users 10.2% 14.0% 29.0% 21.4% 34.0% 17.4% External consultants / system integrators 8.6% 16.2% 39.5% 33.8% 27.9% 12.4% Distributors 7.1% 11.7% 25.5% 22.6% 24.0% 26.7% 0% 20% 40% 60% 80% 100% Source: 2014 Frost & Sullivan-F5 Cloud User Survey of 420 APAC-based enterprises 20

21 Customers inclusion of customers in the IT user pool Most respondents felt that cloud computing could facilitate resource optimization, and a high percentage are starting to move cloud from a back end service to the front end for customer engagement requirements. Facilitate resource optimization 72.6% 70.7% Enable us to manage / execute disaster recovery plans more seamlessly 70.5% Provide flexibility to meet business demand (peaks & troughs) via real-time / on-demand computing Overall 64.3% 69.8% 69.3% 69.3% 68.6% Enable us to focus more on our core business competencies Enhance internal business processes Engage customers more effectively Lower overall IT cost (shifting CapEx to OpEx) 59.0% 61.9% Enable us to deploy more leading edge / 'greenfield' types of applications Enable us to penetrate new markets and channels Enable us to avoid vendor lock-in 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% Source: 2014 Frost & Sullivan-F5 Cloud User Survey of 420 APAC-based enterprises 21

22 Defense security and privacy of IT environments continues to be a key focus Most organizations think that network security and web application firewalls are critical in their plans for building private clouds. QoS / Traffic Management Server Virtualization Switches and Routers Australia Application Performance Management Network Security (Firewall, VPN, IDS, IPS, etc) China Software Defined Networking Load Balancers /Application Delivery Controllers Hong Kong Identity and Access Management WAN Optimization Controller Japan Cloud Orchestration & Automation Web Application Firewall Singapore Anti-APT (Advanced Anti-DDoS Solution South Persistent Threats) Solution Korea N = 420 Virtualization Security Note: The chart calculations are based on a Mean Score by 3.0 to 4.4. Source: 2014 Frost & Sullivan-F5 Cloud User Survey of 420 APAC-based enterprises 22

23 Table of Content MARKET DEFINITION AND SCOPE CURRENT STATE OF THE MARKET WHERE DO WE STAND TODAY? WHAT ARE THE DECISION-MAKING FACTORS? 23

24 Critical Success Factors for Enterprises When Choosing Data Center Service Providers High-Tier Facility Flexibility to Adapt to Regulatory Compliance Business Stability Customer Service and Support Superior Energy Efficiency Service Level Agreement Managed Service Capability Cost/Technical Differentiation Assured Security Level Multi-Regional Presence 24

25 The Economics of Data Center Services Build Total Construction cost o o o o o Engineering and Preperation Power Environmental Controls Security and Monitoring Network Floor Space Electricity Electrical / HAVC / Other Systems Maintenance Staff Redundant Internet Circuits General Parameters Number of Cabinets Total kw of Redundant Power Evaluation Period (Years) % of Available Power Consumed Cost Per kwh Internet Connection (Mbps) BUID VS BUY Colocation Power cost per kw Bandwidth price per Mb Remote hands cost per cabinet per month Source: The Cloud Calculator by Experident Data Centers 25

26 The Economics of Cloud Services ON-PREMISES VS CLOUD Server Hardware Software Operating Cost (3 Years) Storage Raw Capacity (Incl. IOPS) Backup Overhead (excl. storage admin) Storage Admin Network Networking Hardware and Software Bandwidth Costs Network Admin Cost IT Labor Server Admin Virtualization Admin Server Upfront Cost Hourly Cost Discount (if Applicable) Storage Storage Capacity (Cost/Month) Network Data Transfer Costs IT Labor Admin Cost Support Business Level Support Source: AWS TCO Calculator 26

27 Thank you! Danni Xu Senior Industry Analyst Data Center and Cloud Computing, ICT Practice Frost & Sullivan Asia 27