Cloud ROI Survey Results Comparison 2011 & 2012

Transcription

1 Cloud ROI Survey Results Comparison & Executive Summary Throughout, Cloud Computing has continued to become commonplace within enterprises worldwide. In order to better understand Cloud adoption and the drivers behind Cloud implementation, The Open Group surveyed IT professionals for the second straight year regarding Cloud initiatives, concerns and ROI measurement mechanisms. The findings of both surveys are compared in this report. For the Cloud ROI Survey, The Open Group surveyed IT professionals at the C-level, Director and Manager levels percent of whom are either actively researching Cloud Computing for business use or are already implementing Cloud services. According to those surveyed, the key drivers within organizations for implementing Cloud services are cost, timeliness and resource optimization. Other key findings included: Private and hybrid clouds remain the most popular deployment options by over 20 percent in and over 30 percent in Fewer organizations have ROI mechanisms in place in compared to 19.5 percent versus 35.4 percent Cost, delivered results and speed of operations continue to be the most popular ROI metrics The biggest concerns with Cloud continue to be security, integration issues and governance A large percentage of respondents in both and are creating new information security controls to address security and privacy concerns surrounding the Cloud There has been a drop in the level of satisfaction with cloud deployment education (36.6 percent in v percent in ) The full results from both and are provided below. For more context of the study, please read the blog post on the survey entitled Flying in the Cloud by the Seat of our Pants by Dr. Chris Harding, Director of Interoperability at The Open Group. [The Open Group Blog] For more information, on The Open Group s Cloud Computing Work Group, please go to:

2 Cloud Survey Results and Comparison 1. What type of influence do you have related to your organization's use of Cloud Computing? What type of influence do you have related to your organization's use of Cloud Computing? 22.5% 13.0% 64.5% I am a direct buyer/decision maker I have influence over decisions/purchases I have no influence over decisions/purchases What type of influence do you have related to your organization s use of Cloud Computing? 14.6% 61.2% 24.3% I am a direct buyer/decision maker I have influence over decisions/purchases I have no influence over decisions/purchases Results of the past two annual surveys showed that the majority of respondents have influence over decisions and purchases related to their organization s use of Cloud Computing. In, 85.5 percent of respondents were either the direct purchasers and decision makers for their organizations Cloud initiatives or have direct influence over purchases and decisions, compared to 77.5 percent in.

3 2. What level best represents your position at your organization? What level best represents your position at your organization? 18.5% 36.9% 15.4% 6.9% 22.3% C-level VP/SVP/EVP level Director level Manager level Individual contributor What level best represents your position at your organization? 9.8% 36.6% 31.7% C-level VP/SVP/EVP level Director level Manager level Individual contributor 22% There was a significant shift in the organizational level and title of survey respondents from the to survey. Although, most respondents were managers or directors in both years, almost 50 percent of the respondents in were VP or C-level, compared to only 22.3 percent in.

4 3. What size is your organization? What size is your organization? 51.5% 27.7% 10.0% < 250 employees Between 250 and 1,000 employees Between 1,000 and 2,500 employees Between 2,500 and 5,000 employees > 5,000 employees 5.4% 5.4% What size is your organization? 48.8% 26.8% 9.8% 7.3% 7.3% < 250 employees Between 250 and 1,000 employees Between 1,000 and 2,500 employees Between 2,500 and 5,000 employees > 5,000 employees Results for both surveys were fairly consistent. The majority of respondents are employed by organizations with 250-1,000 employees.

5 4. Where is your organization headquartered? Where is your organization headquartered? 3.1% 22.3% 32.3% 34.6% 7.7% North America Latin America Europe Africa Asia Pacific Where is your organization headquartered? 4.9% 2.4% 36.6% 43.9% North America Central America South America Europe Africa Asia Pacific 12.2% 0 Both survey results revealed that the majority of respondents work for organizations headquartered in both North America and Europe 66.9 percent in and 80.5 percent in. In, Central America was significantly represented, while in it was not represented at all.

6 5. Which of the following people in your organization are making buying decisions on Cloud services? (Check all that apply please include all Cloud use such as SaaS, PaaS, etc) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Which of the following people in your organization are making buying decisions on Cloud services? (Check all that apply please include all Cloud use such as SaaS, PaaS, etc) CEO CIO Enterprise architects IT management IT staff Business line management or staff Others (please specify) No one Which of the following people in your organization are making buying decisions on Cloud services? Check all that apply please include all Cloud use such as SaaS, PaaS, etc. 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% CEO CIO Enterprise architects IT management IT staff Business line manageme No one Other (please specify) Both years results showed pretty even decision making responsibility between CIOs, enterprise architects and IT Management.

7 6. What level executive buy-in is/was required to fund your Cloud initiatives?(check all that apply) What level executive buy-in is/was required to fund your Cloud initiatives? 6.9% 21.5% 16.2% 23.1% 32.3% CEO CIO IT director level Enterprise architecture level All of the above What level executive buy-in is/was required to fund your Cloud initiative(s)? (Check all that apply) 9.8% 2.4% 24.4% 39.0% 51.2% CEO CIO IT director level Enterprise architecture level All of the above No executive buy-in required 53.7% Both years surveys yielded results showing that CEO or CIO approval is required to fund Cloud initiatives. In, there were a small percentage of respondents that said no executive buy-in is required. No participants had this response in.

8 7. What are the main reasons for your organization to use Cloud Computing? Select top three from list in order of priority Business continuity What are the main reasons for your organization to use Cloud Computing? Select top three from list in order of priority. Compliance Cost Don t know where to begin to evaluate and Need to improve quality of IT support Need to remove obstacles to innovation Resource optimization Risk management Security Timeliness/agility of new services Other First Priority Second Priority Third Priority Business continuity What are the main reasons for your organization to use Cloud Computing? Select top three from list in order of priority. Compliance Cost Need to improve quality of IT support Need to remove obstacles to innovation Resource optimization Risk management Security Timeliness/agility of new services Don t know where to begin to evaluate and justify need Other (please explain using the Text Box below) First Priority Second Priority Third Priority

9 The primary priorities when determining the use of Cloud Computing continue to be cost, timeliness, and resource optimization. Business opportunity has decreased slightly in priority, and removal of innovation obstacles increased from.

10 8. What best describes where Cloud Computing fits into your organization s IT roadmap? What best describes where Cloud Computing fits into your organization s IT roadmap? 43.3% 8.3% 24.9% 23.5% Currently implementing for business use (at least 18 months) Recently began implementing for business use (within last 12 months) On the radar or actively researching for business use Not on our IT roadmap What best describes where Cloud Computing fits into your organization s IT roadmap? 7.5% 23.8% Have been implementing for business use for at least 12 months Recently began implementing for business use within last 12 months 43.8% 25% On the radar or actively researching for business use Not on our IT roadmap The majority of survey respondents is either actively researching Cloud Computing for business use or has already implemented Cloud services. In, this was an impressive 92.5 percent, similar to the figure of 91.7 percent.

11 9. Which Cloud deployment model(s) best fits your organization? Which Cloud deployment model best meets your organization s business requirements? 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Private Public Hybrid Unsure Private Public Hybrid Unsure Which Cloud deployment model(s) best fits your organization? 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Private Public Community Hybrid None Unsure 10.0% 0.0% Private Public Community Hybrid None Unsure Both surveys revealed that a hybrid Cloud would be best for their organization; however in, private Cloud showed resurgence, almost doubling from to. Private and hybrid Cloud appear to be the strongest options for most organizations.

12 10. Do you think the return on investment from a Cloud project to address these business requirements in your organization would be: Do you think the return on investment from a Cloud project to address these business requirements in your organization would be: 45.4% 54.6% Easy to evaluate and justify? Hard to evaluate and justify? Do you think the return on investment from a Cloud project to address these business requirements in your organization would be: 4.9 % 51.2% 43.9 % Easy to evaluate and justify? Hard to evaluate and justify? Other (please specify) Results revealed a conflict between respondents about whether Cloud projects are easy or hard to justify. In, other responses claimed that it is a mixture of easy evaluation and hard justification.

13 11. Do you currently have any mechanisms in place to measure ROI for your Cloud Computing initiative? Do you currently have any mechanisms in place to measure ROI for your Cloud Computing initiative? 20.0% 35.4% Yes No Unsure 44.6% Do you currently have any mechanisms in place to measure ROI for your Cloud Computing initiative? 14.6% 19.5% Yes No Unsure 65.9% Organizations with mechanisms in place to measure ROI actually decreased from to 35.4 percent and 19.5 percent, respectively.

14 12. Which of the following Cloud ROI metrics are you currently using or plan to use in the next 12 months? Select top three from list in order of priority. Which of the following Cloud ROI metrics are you currently using or plan to use in the next 12 months? Select top three from list in order of priority First Priority Second Priority Third Priority Cost Margin Quality of delivered result Scale of operation Speed of operation Utilization of resources None of the above Other Cost Which of the following Cloud ROI metrics are you currently using or plan to use in the next 12 months? Select top three from list in order of priority. Margin Quality of delivered result Scale of operation Speed of operation Utilization of resources None of the above Other (please explain using the Text Box below) First Priority Second Priority Third Priority

15 Similar to, survey results showed that cost is the primary Cloud ROI metric organizations will measure in the next 12 months. Quality of delivered results and speed of operation have remained popular metrics, while survey respondents are prioritizing the utilization of resources as a metric.

16 13. Do you expect your Cloud initiative to significantly impact one or more business processes? Do you expect your Cloud initiative to significantly impact one or more business processes? 17.7% Yes No 82.3% Do you expect your Cloud initiative to significantly impact one or more business processes? 17.1% Yes No 82.9% Results this year were almost identical with. Most respondents expect their Cloud initiative to significantly impact one or more business processes.

17 14. If yes, how prepared are you for these changes? If yes, how prepared are you for these changes? 16.2% 28.5% Prepared Somewhat prepared Unprepared 55.4% If yes, how prepared are you for these changes? 24.4% 19.5% Prepared Somewhat prepared Unprepared 56.1% Over 50 percent of respondents in both and did not feel totally prepared for changes Cloud initiatives will bring to their business processes. In fact, a slightly larger percentage of respondents felt unprepared than respondents.

18 15. What are your biggest concerns surrounding the Cloud today? Select top three from list in order of priority. What are your biggest concerns surrounding the Cloud today? Select top three from list in order of priority First Priority 30 Second Priority 20 Third Priority 10 0 Ability to cope with business process Cost to deploy Dissatisfaction with vendor offering/pricing Governance, e.g. loss of control of IT Integration issues Lost revenues from lack of capacity Lost customers from performance issues Measuring ROI Regulatory compliance Security Skills shortage Vendor lock-in Other

19 Ability to cope with business process What are your biggest concerns surrounding the Cloud today? Select top three from list in order of priority. Cost to deploy Dissatisfaction with vendor Governance, e.g. loss of control of IT Integration issues Lost revenues from lack of capacity Lost customers from performance issues Measuring ROI Regulatory compliance Security Skills shortage Vendor lock-in Other None First Priority Second Priority Third Priority Both years results revealed that the biggest concerns around Cloud are security, followed by integration issues and governance. In, respondents showed that cost of deployment has also become a major concern.

20 16. What are your main concerns with using an outside Cloud provider? Select top three from list in order of priority. What are your main concerns with using an outside Cloud provider? Select top three from list in order of priority First Priority Second Priority Cost Interoperability/ Portability Performance issues Security Vendor lock-in None of the above Other What are your main concerns with using an outside Cloud provider? Select top three from list in order of priority First Priority Second Priority Third Priority Cost Interoperability/ Portability Performance issues Security Vendor lock-in None of the above Other (please explain using the Text Box below) Both survey results showed that security is the biggest concern about using an outside Cloud provider, followed by interoperability and vendor lock-in. Performance issues became less of a concern in, while concerns regarding cost rose.

21 17. How is your organization addressing concerns about data security and privacy surrounding the Cloud? How is your organization addressing concerns about data security and privacy surrounding the Cloud? 7.7% 18.5% 33.1% Use existing information security controls Created new information security controls Use Cloud service provider s controls Other 40.8% How is your organization addressing concerns about data security and privacy surrounding the Cloud? 26.8% 7.3% 36.6% 29.3% Use existing information security controls Created new information security controls Use Cloud service provider s controls Other A large percentage of respondents, in both and, are creating new information security controls to address security and privacy concerns surrounding the Cloud. An equal percentage claim to use existing information security controls, and a slightly smaller percentage just use the Cloud service provider s control.

22 18. Overall, how satisfied are you with the level of available educational resources and professional training on Cloud Computing? Overall, how satisfied are you with the level of available educational resources and professional training on Cloud Computing? 14.6% 8.5% 33.8% 43.1% Very satisfied Satisfied Somewhat dissatisfied Dissatisfied Overall, how satisfied are you with the level of available educational resources and professional training on Cloud Computing? 12.2% 7.3% 51.2% 29.3% Very satisfied Satisfied Somewhat dissatisfied Dissatisfied In, survey results reveal that 36.6 percent of respondents were at least satisfied with the level of available educational resources and professional training on Cloud Computing, compared to 51.6 percent in.