Optimizing Cloud for Service Delivery
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1 Optimizing Cloud for Service Delivery Report Highlights An ENTERPRISE MANAGEMENT ASSOCIATES (EMA ) Survey-based Research Report Written by Dennis Drogseth, Vice President of Research February 2012 Sponsored by: IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING
2 Table of Contents Executive Introduction...1 Methodology...1 A Few Highlights...1 Overall Cloud Adoption Patterns in Business Services as They Map to Cloud Adoptions...2 Drivers for Cloud Adoption in Support of Business Service Delivery...3 Conclusion...4
3 Executive Introduction Optimizing Cloud for Service Delivery reflects the more advanced position of cloud adoption patterns today. While it still addresses core drivers, objectives, and obstacles as they are evolving, Optimizing Cloud makes what may well be the industry s most granular assessment on how management technologies and cloud accelerants (e.g., converged infrastructure) are being combined into successful clusters or footprints. Indeed, just as there are many different types of clouds in the skies from cirrus, to cumulus, to nimbus to combinations such as cumulonimbus, Optimizing Cloud for Service Delivery begins to shade in a meaningful taxonomy of technology patterns, organizational focus, and cloud success. Optimizing Cloud for Service Delivery reflects the more advanced position of cloud adoption patterns today. Methodology EMA collected data from 160 global respondents with a very strong emphasis on North America (81%) and a secondary focus on Europe and the U.K. in particular (16%) in early December of EMA also leveraged ancillary focal interviews from this and other research to address cloud in real-world context. A Few Highlights The selected highlights below reflect year-to-year differences across EMA s cloud adoption research, as well as unique insights in Optimizing Cloud on specific management technologies and cloud accelerants. The highlights below are indeed far from a complete attempt to summarize the content of the report which is itself a summary of more than 1,000 pages of content analysis. Cloud has advanced to become significantly more critical in importance to a wider range of IT organizations than ever before. Who owns cloud within IT? The trend towards a dedicated Virtualization or Cloud Organization continues with a dedicated group called cloud or virtualization support, followed this year by the cross-domain IT architecture or infrastructure services. Service Level Management (SLM) and or User Experience Management (UEM) are collectively the single most pervasive management technologies deployed in support of delivering business services over cloud. CMDB/CMS is the least pervasive management technology, but correlates to the highest level of maturity and success in delivering a wide range of business services over cloud. Not surprisingly, Unfied Service Desk deployments strongly parallel CMDB/CMS deployments in value. As cloud grows in both acceptance and importance, IT organizations are beginning to expand their definitions of cross-domain and virtualized infrastructure to become more multi-dimensional. Large/mid-tier enterprises (5,000-20,000 employees) are the clear frontrunners in delivering business services over cloud in terms of both pervasiveness and levels of maturity. This is consistent with other EMA research, suggesting that very large IT organizations (supporting businesses with 20,000 employees or more) may be more politically challenged to break through siloed fiefdoms and establish meaningful cross-domain leadership. Page 1
4 Overall Cloud Adoption Patterns in 2012 One of the more striking indicators that cloud is indeed on the rise in Optimizing Cloud is shown in Figure 1 where 48% viewed cloud as essential versus 33% in 2011, and this did not include the 17% generating revenue from cloud services. How would you describe the extent at which could computing has been adopted within your business/organization? It is currently adopted and an essential part of our business 48% It is currently adopted and an important part of our business 22% We are currently generating revenue through delivered cloud services We are or plan to generate revenue through delivered cloud services It is currently adopted and mostly supplemental to other types of computing 9% 8% 12% It is planned for adoption 1% 0% 10% 20% 30% 40% 50% 60% Figure 1: One of the most dramatic advances between 2011 and 2012 was the degree to which cloud technologies have become essential versus just important (48% versus 33%) a fifteen percentage point jump, not including IT organizations leveraging cloud for revenue generating services. Business Services as They Map to Cloud Adoptions The top five most prevalent business services (out of a list of sixteen) were: 1. Messaging and -related services 47% 2. CRM application services 44% 3. Desktop productivity 43% 4. Custom-developed applications 39% 5. Externally facing Web and Web 2.0 applications 38% But the top five most prioritized business services out of the same list were when respondents were asked for their top three: 1. CRM application services 32.5% 2. Desktop productivity 31% 3. Custom-developed applications 29% 4. Messaging and -related services 26% 5. Externally facing Web and Web 2.0 applications 21% Page 2
5 Not surprisingly, larger enterprises are more likely to have custom application, SOA and Web Services requirements for cloud. In contrast, externally directed (at customers or partners) Web and Web 2.0 services were a higher priority with smaller businesses than larger ones. Drivers for Cloud Adoption in Support of Business Service Delivery Figure 2 highlights drivers for cloud adoption in These have been tracked year-to-year with common wording across all three EMA research reports. This year, as is visible in Figure 6, Improving the performance and resiliency of business services takes a lead for the first time, modestly edging out cost-related priorities, e.g., reducing operational expense, which had been top priority in the prior years. This was yet more apparent among those IT organizations who classified themselves as very successful where more responsive provisioning of new and existing services and service performance goals were even more significantly prioritized over cost objectives. IT organizations who classified themselves as very successful where more responsive provisioning of new and existing services and service performance goals were even more significantly prioritized over cost objectives. Why is your organization seeking to accelerate, optimize or otherwise improve the delivery of business services via cloud... Improve the performance/resiliency of business services Reduce operational expense in delivering business services Accelerate the deployment/provisioning of new and/or existing business services Accelerate end-user access to new and/or existing business services Reduce capital expense in delivering business services Accelerate the creation of new business services 62% 58% 56% 55% 54% 52% Other (Please specify) 1% 0% 10% 20% 30% 40% 50% 60% 70% Figure 2: This year s research reflects a meaningful shift towards service quality and value over and above cost reduction as a driver for cloud adoption. Page 3
6 Conclusion As the third in EMA s annual series on strategic cloud adoption, Optimizing Cloud for Service Delivery clearly underscores the continued success in terms of the pervasiveness, the criticality and the benefits of cloud-related technologies and services in mainstream IT. However, in 2012, this research data suggests that rather than viewing cloud adoption as a monolithic phenomenon with linear characteristics, it is very much a multi-dimensional phenomenon. This research data highlights clusters or patterns of cloud and service management technology that should become more and more meaningful over time as both cloud, and service management in response to cloud, mature. In 2012, this research data suggests that rather than viewing cloud adoption as a monolithic phenomenon with linear characteristics, it is very much a multi-dimensional phenomenon. In this regard, Optimizing Cloud also underscores the continued drumbeat towards a more cross-domain focus for cloud adoption far beyond the initial focus on systems-centric virtualization. The process, organizational and management technology implications of these new cross-domain requirements are still very much in the early stages of being played out. But EMA believes that they will become positive catalysts for many of the core requirements for effective service-centric management that many in the industry have been advocating years before the term cloud meant anything other than wide area network in IT. About Enterprise Management Associates, Inc. Founded in 1996, Enterprise Management Associates (EMA) is a leading industry analyst firm that provides deep insight across the full spectrum of IT and data management technologies. EMA analysts leverage a unique combination of practical experience, insight into industry best practices, and in-depth knowledge of current and planned vendor solutions to help its clients achieve their goals. Learn more about EMA research, analysis, and consulting services for enterprise line of business users, IT professionals and IT vendors at or blogs.enterprisemanagement.com. You can also follow EMA on Twitter or Facebook. This report in whole or in part may not be duplicated, reproduced, stored in a retrieval system or retransmitted without prior written permission of Enterprise Management Associates, Inc. All opinions and estimates herein constitute our judgement as of this date and are subject to change without notice. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. EMA and Enterprise Management Associates are trademarks of Enterprise Management Associates, Inc. in the United States and other countries Enterprise Management Associates, Inc. All Rights Reserved. EMA, ENTERPRISE MANAGEMENT ASSOCIATES, and the mobius symbol are registered trademarks or common-law trademarks of Enterprise Management Associates, Inc. Corporate Headquarters: 5777 Central Avenue, Suite 105 Boulder, CO Phone: Fax: Zenoss Page 4
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