Cloud Management Platform Market Map 2016
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1 MARKET MAP Cloud Management Platform Market Map 2016 MAY 2016 William Fellows, Research Vice President A cloud management platform should operate like a cloud Uber app for IT consumption and delivery that can help organizations navigate their journey to the cloud. As an integrated platform, it provides a range of functions and services concerned with accessing and optimizing the use of cloud services. It may be supplied as a hosted model or deployed internally Research, LLC
2 ABOUT 451 RESEARCH 451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, advisory services and live events to more than 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained herein has been obtained from sources believed to be reliable. 451 Research disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although 451 Research may discuss legal issues related to the information technology business, 451 Research does not provide legal advice or services and their research should not be construed or used as such. 451 Research shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. NEW YORK 20 West 37th Street 3rdFloor New York, NY P F SAN FRANCISCO 140 Geary Street 9th Floor San Francisco, CA P F LONDON Gower Street London, UK WC1E 6HH P +44 (0) F +44 (0) BOSTON 1 Liberty Square, 5th Floor Boston, MA P F ABOUT THE AUTHOR WILLIAM FELLOWS RESEARCH VICE PRESIDENT William Fellows is a cofounder of The 451 Group. As VP of Research, he is responsible for the Cloud Transformation Channel at 451 Research. This Channel provides a point of intellectual convergence for 451 Research around cloud computing, in much the same way that the industry is converging on cloud from all points. In addition to keeping tabs on players entering the cloud and IT services space with disruptive business models, new technology and innovations in service delivery, William has also created 451 Research s Digital Economics unit. This is currently focused on helping end users, vendors and investors understand complex and confusing cloud pricing mechanisms in order to compare the cost of services (hosted, hybrid and on-premises), the cost of entry and price of participation in new markets. COPYRIGHT RESEARCH. ALL RIGHTS RESERVED. II
3 Key Findings Cloud management is a thing. 451 Research s Q Voice of The Enterprise: Cloud Computing survey data finds that a quarter of enterprises have deployed or are piloting a cloud broker and a further third are in the discovery phase. Fewer than one in 10 were doing either three years ago. A CMP operationalizes best execution venue (BEV) strategies, ensuring applications, workloads and service requests are matched to the right resources. 451 Research s Cloud Price Index finds that if end users were to mix and match cloud services from multiple cloud providers they could save up to 74% compared to using one provider alone. Navigating the journey to cloud, managing public and private resources, and delivering services securely and at speed is not for the technology fainthearted. CMPs can help do this from a single point. COPYRIGHT RESEARCH. ALL RIGHTS RESERVED. III
4 Executive Summary INTRODUCTION In 2015, we mapped the emerging cloud management platform (CMP) and cloud service delivery markets. Going into 2016, the organizing principle for our research in this area is 451 Research s recently minted Cloud Transformation channel (formerly known as Cloud and IT Service Markets). This Market Map report charts the evolution of the CMP market in the context of cloud transformation. There are many functions and capabilities associated with a CMP too many for single report, so we focus this report on firms that are seeking to operate full-service CMPs. We map those supplying specific core components in the areas of cloud service broker; consumption management and optimization; transformation engine; security; and self-service catalog/portal. Increasingly, we expect infrastructure, application and business process management to feature as CMP services. Moreover, as cloud is increasingly used as the basis for broader digital transformation strategies, we will examine digital platforms, services and management tools in a future Market Map. METHODOLOGY 451 Research Market Maps TM are designed to provide a view of the vendor landscape by major segment. The map highlights companies competing in multiple segments by connecting them through a circuit line. Identification and placement of companies into these segments is based on analysis, both published and unpublished, performed by 451 Research. This analysis includes interviews, reports and advisory work with several thousand enterprises, vendors, service providers and investors annually. 451 Research Market Maps TM are not intended to represent a comprehensive list of every vendor operating in this market. Inclusion on 451 Research Market Maps TM does not imply that a given vendor will be specifically featured in one or more 451 Research reports. COPYRIGHT RESEARCH. ALL RIGHTS RESERVED. IV
5 Table of Contents 1. THE 451 TAKE 1 2. CLOUD MANAGEMENT PLATFORM NAVIGATING THE JOURNEY TO CLOUD 2 Figure 1: 451 Research Cloud Management Platform Market Map TM 3 CLOUD BROKER SELF-SERVICE PORTAL, SERVICE CATALOG TRANSFORMATION ENGINE CONSUMPTION MANAGEMENT/OPTIMIZATION SECURITY FROM CLOUD CHAOS TO CLOUD CONTROL 10 Figure 2: Cloud Management Platform: Market Challenges and Innovations THE SUM OF THE PARTS 11 SUB-SECTOR DEVELOPMENTS MAJOR MARKET PLAYERS Figure 3: Major Market Players: Key Attributes CONCLUSIONS FURTHER READING INDEX OF COMPANIES 16 COPYRIGHT RESEARCH. ALL RIGHTS RESERVED. V
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