THE BEST EXECUTION VENUE
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1 Positioning for the Next Wave of Change in Enterprise IT Infrastructure As automation and consumerization become the dominant paradigms for designing and deploying IT infrastructure, these trends will also extend to the next frontier of IT-shop modernization: systems management and higher-level automation. This report identifies and examines the current state of enterprise adoption of private, public and hybrid clouds by workload using original survey research. KEY FINDINGS The adoption of best execution venues (BEVs) varies according to workload complexity and the level of demand. Despite the hype, the transition from traditional IT architectures to a cloud-based future is a slow, organic process that will continue developing for years to come. For each class of workload identified by 451 Research, there exists some level of servicedelivery capability and thriving interest. Some workloads can already be considered to have viable BEVs, thanks to clearly defined needs and available technology services. Security remains the largest barrier to adoption of external services; however, this is beginning to be addressed by providers. Current trends in cloud management tools are making it more viable for IT organizations to consider a strong mix of IT providers without resorting to outsourcing operations. Hybrid clouds will be a predominate model for underlying infrastructure services. JULY 2014
2 REPORT SNAPSHOT TITLE The Best Execution Venue ANALYST Carl Brooks - Analyst, Infrastructure Services RELEASE DATE July 2014 LENGTH 26 pages ABOUT THIS REPORT As automation and consumerization become the dominant paradigms for designing and deploying IT infrastructure, these trends will also extend to the next frontier of IT-shop modernization: systems management and higher-level automation. This report identifies and examines the current state of enterprise adoption of private, public and hybrid clouds by workload using original survey research. It further examines future trends in best execution venues (BEVs). Today, an admin can easily select, configure, provision and deploy the IT stack needed for any given workload, whether from a virtualized resource farm in-house or from external providers, and these resources can be connected like a child s construction set with common interfaces provided that the enterprise has executed a strategic commitment to the cloud computing model. The next step is bringing those ideal states that is, the BEV for a defined IT need to the same level of automation. We are within sight of the application being able to select and maintain the IT environment it requires, with the same ease a user boots a server in the cloud. This report details trends, adoption and strategies for enterprises and service providers to identify the BEV, and position themselves to meet upcoming demand. COMPANIES INCLUDED IN THIS REPORT Amazon Web Services [AWS] Carpathia ebay Facebook Google Netflix Online Tech Target Verizon YouTube INetU
3 TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY INTRODUCTION KEY FINDINGS METHODOLOGY SECTION 2: MODELING THE IT INFRASTRUCTURE OUTCOME ON DEMAND CHARACTERISTICS: AREN T I JUST PICKING A SAAS PROVIDER? RESOURCE MANAGEMENT IS INCREASINGLY IMPORTANT Figure 1: Cloud as-a-service Phases of Adoption THE HYBRID CLOUD WILL BE THE MODEL Figure 2: Usage of Digital Infrastructure and Cloud Technologies and Services Figure 3: The Hybrid Cloud Model Will Predominate REALITY CHECK HANDS ON THE REINS OF EVERYTHING SECURITY: FIRST, LAST, ALWAYS SECTION 3: CHOICES OF VENUE PUBLIC, PRIVATE OR HYBRID FOR IDENTIFIED WORKLOADS 11 Figure 4: Cloud Adoption Patterns by Workload CUSTOMER-FACING ENTERPRISE APPLICATIONS Figure 5: Primary Deployment Method Customer-Facing Apps Figure 6: Reason for Deployment Choice Customer-Facing Apps BACK-OFFICE ENTERPRISE APPLICATIONS Figure 7: Primary Deployment Method Back-Office Apps Figure 8: Reason for Deployment Choice Back-Office Apps BATCH COMPUTING APPLICATIONS Figure 9: Primary Deployment Method Batch Computing Apps Figure 10: Reason for Deployment Choice Batch Computing Apps
4 3.4 E-BUSINESS HOSTING Figure 11: Primary Deployment Method E-business Hosting Apps Figure 12: Reason for Deployment Choice E-Business Hosting Apps COLLABORATIVE APPLICATIONS Figure 13: Primary Deployment Method Collaborative Apps Figure 14: Reason for Deployment Choice Collaborative Apps TEST AND DEVELOPMENT OF APPLICATIONS Figure 15: Primary Deployment Method Test and Dev of Apps Figure 16: Reason for Deployment Choice Test and Dev of Apps CLOUD-NATIVE APPLICATIONS Figure 17: Primary Deployment Method Cloud-Native Apps Figure 18: Reason for Deployment Choice Cloud-Native Apps SECTION 4: CONCLUSION 20 SECTION 5: APPENDIXES 21 APPENDIX A: DEFINED WORKLOADS AND CATEGORIES APPENDIX B: SURVEY DEMOGRAPHICS Figure 19: Industry Verticals Figure 20: Enterprise Revenue Figure 21: Respondent s Title Figure 22: Budget for Cloud Spending APPENDIX C: SERVICE PROVIDER TAXONOMY AND GLOSSARY
5 ABOUT 451 RESEARCH 451 Research is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of the company at end-user, service-provider, vendor and investor organizations rely on 451 Research s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making 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.
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