2012 Cloud Computing. Key Trends and Future Effects

Transcription

1 2012 Cloud Computing Key Trends and Future Effects Conducted across the IDG Enterprise brands: CIO, Computerworld, CSO, InfoWorld, ITworld & Network World Source: IDG Enterprise Cloud Computing Study, January, 2012 Cloud Computing

2 Purpose and Methodology Survey Sample Field Work Dec. 20, 2011 Jan. 12, 2012 Total Respondents 1,682 Margin of Error +/- 2.19% Audience Base CIO, Computerworld, CSO, Network World, InfoWorld and ITworld sites Survey Method Collection Number of Questions Online Questionnaire 53 (incl. demographics) Survey Goal To measure cloud computing trends among technology decision-makers including usage and plans across various cloud service and deployment models, investments, business drivers and impact on business strategy and plans. 1 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

3 Respondent Profile Total Respondents 1,682 Organization Size Average Company Size 13,194 employees Average Annual Revenue $5.6 billion IT Leadership All survey respondents are involved in the purchase of IT products and services at their organization. Top Represented Industries High Tech Telecom & Utilities Services (legal, consulting, real 11% Government/Nonprofit 11% 19% Job Title Breakdown IT/Networking/Security Management 5 IT/Networking Professionals 17% Business Management 21% Other (Non-Manager) 4% Financial Services (banking, Manufacturing (including Education Healthcare (providers and Retail Wholesale and Distribution Advertising/Marketing/PR/Media 10% 9% 9% 6% 5% Transportation (airlines, 2% 2 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

4 Cloud Computing Definitions Cloud Computing a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. 3 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

5 Cloud Computing Definitions Cloud Service Models Software as a Service (SaaS) Employs the provider s applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based ), or a program interface. The provider manages or controls the underlying cloud infrastructure with the possible exception of limited user-specific application configuration settings. Platform as a Service (PaaS) Consumer-created or acquired applications supported by the provider are deployed onto the cloud infrastructure which the provider manages or controls. The consumer has control over the deployed applications and possible configuration settings for the application-hosting environment. Infrastructure as a Service (IaaS) The consumer provisions processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The provider manages or controls the underlying cloud infrastructure while the consumer has control over operating systems, storage, and deployed applications; and possible limited control of select networking components (e.g., host firewalls). Cloud Deployment Models Community Cloud Shares infrastructure between several organizations from a specific community with common concerns (e.g., security, compliance, jurisdiction), whether managed internally or by a third-party and hosted internally or externally. Public Cloud The cloud infrastructure is provisioned by the cloud provider for open use by the general public. It may be owned, managed, and operated by a business, academic, or government organization, or some combination of them. Private Cloud Infrastructure provisioned solely for a single organization, whether managed internally or by a third-party and hosted internally or externally. Hybrid Cloud A composition of two or more clouds (private, community, or public) that remain unique entities but are bound together, offering the benefits of multiple deployment models. It can also be defined as multiple cloud systems that are connected in a way that allows programs and data to be moved easily from one deployment system to another. 4 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

6 Majority Have Already Migrated to Cloud Have at least one application or a portion of our computing infrastructure in the cloud 57% Plan to use cloud-based applications and/or computing infrastructure via the cloud within the next 12 months 25% Plan to use cloud-based applications and/or computing infrastructure via the cloud within 1 to 3 years 1 Q. What are your organization s plans with regard to utilizing computing infrastructure or applications via the cloud? 5 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

7 Private Cloud Most Readily Adopted Rapid Growth Expected to Continue 34% 32% 23% 27% 10% 9% 17% 14% 6% 13% 15% 4% 5% 6% 9% Private Cloud Public Cloud Hybrid Cloud Community Cloud Currently (<1000) Currently (1,000+) In 18 Months (<1000) In 18 Months (1,000+) Q. Approximately, how much of your organization s data presently resides in the public, private and hybrid clouds, and will in 18 months? 6 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

8 Cloud Investment a Significant Portion of Overall IT Budget 0%-9% 25% 27% 10%-24% 25%-49% 50%-100% 6% 10% 10% 22% 23% Average Budget Allocation: 2012: 19% 2011: 1 Don't know 33% 36% Q. What percent of your organization s IT budget is currently allocated to cloud-based services computing (including software, services, training and other related costs)? 7 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

9 and Is Expected to Increase Increase 63% No Change 36% 1% Decrease Increase Decrease No Change Q. Do you expect the percentage of your organization s IT budget allocated to cloud-based services computing to increase, decrease or remain the same over the next 12 months? 8 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

10 Enterprise Organizations Investing Significantly More Dollars Less than $50,000 10% 43% $99,999-$50,000 9% 19% $249,999-$100,000 $999,999-$250,000 $1 million-$9.9 million $10 million or more Don't know 2% 1% 7% 9% 13% 17% 19% 15% 22% Average Investment: <1,000: $331,000 1,000+: $2.55 million 1,000+ <1,000 Q. Approximately how much will your organization invest in cloud-based services computing (including software, services, training and other related costs) in the next 12 months? 9 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

11 Long-term Outlook Shows One Quarter Will Have Majority of IT Ops in the Cloud Only a few selected IT operations will be performed in the cloud We'll limit our cloud activity to private clouds We'll limit our cloud activity to software-as-a-service (SaaS) Our use of cloud-based resources will be negligible 35% 27% 21% 9% 3% The majority of our IT operations will be performed in the cloud Q. Which of the following best describes your long-term expectations for cloud computing at your organization over the next 5 years? Source: IDG Enterprise Cloud Computing Study, January,

12 Cloud Computing is in the CEO s Sight Critical/ High Priority 40% 26% Somewhat Priority 15% 19% Not a Priority Low Priority Q. How important is cloud computing technology to the business agenda of your organization s CEO or executive management team? 11 Source: IDG Enterprise Cloud Computing Study, January, 2012 CIO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

13 Cloud Investments Driven by Business Strategy 30% Driven by business strategy rather than shaping it 43% 3 Play a role in shaping overall business strategy but are not a central focus Play a critical role in shaping overall business strategy 34% Business Management 25% Don't know IT 17% 6% Q. To what extent are cloud computing technology investments shaping your organization s overall business strategy and plans? 12 Source: IDG Enterprise Cloud Computing Study, January, 2012 CIO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

14 Cloud Computing Enables Business Innovation Somewhat Important Not Very Important 45% 25% 21% 9% Very Important Not at all Important Q. How important is cloud computing as an enabler of innovation for your business? 13 Source: IDG Enterprise Cloud Computing Study, January, 2012 CIO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

15 Business Continuity & Speed of Deployment are Top Drivers Enabling business continuity 43% 41% 10% 2% 4% Speed of deployment 39% 44% 2% 3% Greater flexibility to react to changing market conditions 40% 3 5% 5% Improving customer support or services 43% 41% 10% 2% 4% Reducing resource waste 40% 3 5% 5% Enabling innovation 3 41% 13% 3% 4% Savings on CAPEX 37% 41% 14% 5% 3% Gaining a competitive edge 33% 42% 16% 4% 7% Expanding revenue opportunities 31% 31% 21% 7% 10% Need for real-time information 31% 3 17% 6% 7% Replacing on-premise legacy technology 29% 39% 16% 6% 6% Development of new products or services 33% 42% 17% 5% 4% Very Important Somewhat Important Not Very Important Not At All Important Not Applicable 14 Q. How important are the following as business drivers of investment in cloud computing technology? Source: IDG Enterprise Cloud Computing Study, January, 2012 CIO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

16 SaaS Leads Cloud Services Software-as-a-service (SaaS) 7% 6% 5% 5% Infrastructure-as-a-service (Iaas) Managed Network Services Platform-as-a-service (PaaS) Managed Security Services 5% Management/Monitoring as a service Q. What percent of your organization s total IT budget will be allocated to each of the following areas over the next 12 months? (1000+) 15 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

17 Long-term Savings Anticipated but Calculating a Challenge Accurately estimating or calculating OPEX (operating expenditures) resulting from cloud poses a challenge for my organization 63% 22% 14% Accurately estimating or calculating CAPEX (capital expenditures) resulting from cloud poses a challenge for my organization 55% 27% 1 In general, cloud vendor contracts aren't structured to allow us to easily evaluate costs and/or ROI 56% 30% 14% My organization anticipates cloud will save us money in the long term, however, we expect to realize higher shortterm costs 57% 30% Strongly Agree/Agree Disagree/StronglyDisagree Not Sure/Not Applicable 16 Q. Please rate your level of agreement with the following statements. Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

18 IT Leading Multiple Stakeholders in Purchase Process CIO or top IT executive IT/Networking management (VP/Director/Manager) CEO IT steering committee IT/networking staff CFO CTO or IT/networking architect/engineer LOB management COO IT Vendors CSO/CISO 5% 41% 34% 1 25% 3 31% 29% 34% 3 24% 33% 19% 13% 21% 14% 13% 67% 54% 49% 53% 1,000+ <1,0002 Q. Including yourself, which of the following groups/individuals are involved in purchasing decisions about cloud computing? 17 Source: IDG Enterprise Cloud Computing Study, January, 2012 Computerworld results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

19 IT Determines Best Cloud Solution Cloud computing technology selections are always made by one central department or group 46% 66% Business units/departments are allowed to select their own cloud computing technology on a case-by-case basis 19% 41% Business units/departments are always allowed to select their own cloud computing technology 2% 1,000+ <1,000 Q. Which of the following best describes your organization s policy regarding the selection of cloud computing solutions and services? 18 Source: IDG Enterprise Cloud Computing Study, January, 2012 InfoWorld specific results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

20 IT is Strategic Partner when Purchasing Cloud Solutions 61% 51% 21% 16% 16% 10% Always it is a requirement Often Sometimes Rarely/Never 1,000+ <1, Q. When business units/departments select their own cloud computing solutions and services, how frequently do they consult IT prior to making the final purchase? Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

21 Cloud is Driving IT Evolution 44% 65% 69% New roles have been created within IT/networking to help develop and implement cloud computing strategy (rather than responsibility being absorbed into existing roles) As a result of the use of cloud technology, the IT/networking function is more critical to my organization The IT/networking function has had to rapidly expand its skill set/knowledge in order to keep up with cloud computing developments Q. Please rate your level of agreement with the following statements. Percentages reflect Agree/Strongly Agree Source: IDG Enterprise Cloud Computing Study, January,

22 Innovation Rises, But So Does Complexity IT innovation 5 23% 11% IT complexity % 7% IT agility 57% 9% 22% Speed of service delivery 55% 7% 24% 13% Data integration 52% 5% 29% 14% Demand for new application 49% 6% 35% 10% IT costs 40% 25% 1 17% IT headcounts 17% 23% 46% 14% Increasing Decreasing No Impact Not Sure 21 Q. How is the use of cloud computing technology impacting the following at your organization? Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

23 Cloud Propels Advancement of IT Skills and Support; Similar Effects Seen for IT Services Enablement of anytime/anywhere access to critical business data and applications 65% 5% 20% 10% Need for specialized IT skills 55% 15% 20% 10% Enablement of employee collaboration 51% 26% 15% End-user satisfactions 4 26% 19% End-user self-service 46% 6% 36% IT staff productivity 44% 16% 26% 14% Technology management and support costs 40% 22% 23% 15% Staff time/resources required for IT support 3 26% 24% Demand for software/application development? 3 13% 37% Number of help-desk cases 27% 21% 34% 1 Incresasing Decreasing No Impact Not Sure Q. How is the use of cloud computing technology impacting the support and services that IT provides at your organization? 22 Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

24 Hurdles for Cloud Computing: Security, Access and Governance 70% 30% more pressing than closest challenge or barrier to implementation 40% 37% 34% 32% 25% 9% Concerns about the security of cloud computing solutions Concerns about access to information Concerns about information governance Difficulty measuring ROI of cloud solutions Concerns about the ability of cloud computing solutions to meet enterprise and/or industry standards Lack of clear strategy or help from key vendors in adapting their applications to cloud computing platforms Business leaders are not receptive to cloud computing solutions Employees are not receptive to cloud computing solutions 23 Q. What are the top three challenges or barriers to implementing a cloud computing strategy at your organization? Source: IDG Enterprise Cloud Computing Study, January, 2012 CIO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

25 Help Needed Managing Cloud Governance Not sure/ Not Applicable 1 Very confident We have everything in place to ensure strong information management and governance in the cloud 1 20% 4 Not at all confident We do not have a strategy or the required policies in place Somewhat confident We can piece together a good enough strategy Q. How confident are you in your organization's readiness for managing information governance in the cloud? 24 Source: IDG Enterprise Cloud Computing Study, January, 2012 Computerworld results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

26 Development of Cloud Governance Policy is Priority Don t know Yes, it's an extension of our overall information governance policy 11% 32% Yes, we created a policy specifically for cloud-based information No, and we are not planning to develop a policy 37% 77% already have, or plan to, create governance policy No, but we are planning to develop a policy to cover cloud-based information 25 Q. Does your organization have a governance policy for cloud-based information- a policy for information generated and/or stored in the cloud and covering items such as compliance, e-discovery, archiving content, records management, file management, etc.? Source: IDG Enterprise Cloud Computing Study, January, 2012 Computerworld results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

27 And Has Been Growing in Adoption Yes, we created a policy specifically for cloud-based information Yes, it's an extension of our overall information governance policy 17% 32% No, but we are planning to develop a policy to cover cloud-based information 37% 45% No, and we are not planning to develop a policy 16% Not sure 10% 11% Q. Does your organization have a governance policy for cloud-based information- a policy for information generated and/or stored in the cloud and covering items such as compliance, e-discovery, archiving content, records management, file management, etc.? 26 Source: IDG Enterprise Cloud Computing Study, January, 2012 Computerworld results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

28 Policy Enforcement Top Public Cloud Concern Uncertain ability to enforce security policies at a provider site Uncertain ability to audit provider Questionable privileged access control at provider site Access across an untrusted network Uncertain that provider meets regulatory compliance requirements Uncertain ability to recover data Inadequate training and IT auditing Uncertain continued existence of provider Proximiy of your data to someone else's Difficulty in controlling our organization's use of public cloud Other 2% 32% 32% 31% 30% 30% 40% 40% 4 53% 52% Q. What are your organization s top challenges with regards to ensuring and maintaining the security of information that is stored in the PUBLIC cloud? 27 Source: IDG Enterprise Cloud Computing Study, January, 2012 CSO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

29 CSO More Confident than many IT Peers Not at all confident 6% Very confident 26% Not very confident 14% 54% Somewhat confident 28 Q. Considering the current policies and security measures in place at your organization, how confident are you in the security of the data your organization has placed in the cloud? Source: IDG Enterprise Cloud Computing Study, January, 2012 CSO specific results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

30 Cloud Security Policy Collaborative Effort Between Security and IT Management 66% IT senior management 63% 61% 5 Security management IT security staff 30% 37% 41% 29% 29% IT networking staff Operations management Steering committee or task force 17% 25% 39% 2 Consultants 23% 20% Corporate management Individual department or business unit managers 19% 4 Communications staff 10% 1,000+ Employees 5% Other 6% <1,000 Employees 2% None of the above 2% Q. Who at your organization is involved in formulating cloud computing security policy or procedures? 29 Source: IDG Enterprise Cloud Computing Study, January, 2012 CSO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

31 Network Infrastructure Concerns Must Be Addressed First 6 of respondents are still not fully confident in their network infrastructure preparedness Tighten network security Implement better controls over data access Improve manageability of virtual resources Improve portability of data Improve service levels Increase the level of accountability 43% 40% 36% 33% 30% 30% Q: How confident are you in the preparedness of your network infrastructure for the use or expanded use of cloud computing technology? Which of the following areas does your organization most need to address or improve before it can deploy or expand deployment of its infrastructure and/or applications to the cloud? 30 Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

32 Many Tier 1 Apps Will Move to the Cloud by 15 /Messaging Collaboration/Conferencing Solutions Data Storage/Data Mgmt Customer Relationship Mgmt Human Resources Content Mgmt Systems IT Infrastructure Mgmt Business/Data Analytics Security Mgmt Sales Force Automation Customer Service Financial Enterprise Resource Mgmt Compliance Mgmt Supply Chain Mgmt 40% 37% 2 27% 21% 26% 1 20% 20% 20% 17% 1 15% 15% 16% 1 24% 16% 14% 16% 10% 20% 15% 20% 15% 19% 15% 19% 15% 10% 20% 15% 15% 15% 14% 16% 15% 10% 20% 17% 17% 26% 26% 30% 42% 53% 39% 47% 46% 47% 57% 49% 55% 56% 56% 63% Currently migrating/using Planning to migrate in next 12 months Planning to migrate in next 1-3 years No plans 31 Q. Please use the scale below to describe your organization s plans for moving each of the following types of applications to the cloud. Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

33 Private Cloud Dominates But Other Models Emerge Supply Chain Management Compliance mangement Security Management IT infrastructure management Customer Service (call center applications) Sales Force Automation (SFA) Enterprise Resource Management (ERP) Business/data analytics Consumer Relationship Management (CRM) Data storage/data management Content Management Systems Financial (AP, AR, etc) Collaboration/Confrencing solutions Human Resources (HR) /Massaging 9% 6% 7% 7% 7% 11% 11% 11% 7% 14% 15% 13% % 19% 2 15% 17% 29% % 50% 55% 5 35% 33% 47% 4 36% 50% 47% 54% 30% 51% 40% 16% 13% 10% 15% 20% 17% 13% 17% 17% 1 13% 21% 1 17% 14% 13% 13% 13% 13% 13% 11% 10% 10% 9% 7% Community Public Private Hybrid Not Sure Q. Please use the scale below to describe your organization s plans for moving each of the following types of applications to the cloud. Base: Those who are currently using/planning to migrate to application 32 Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

34 VENDOR ATTRIBUTES Source: IDG Enterprise Cloud Computing Study, January, 2012

35 Vendor Security Capabilities Key to Strategic Value Experience in establishing effective security policies and procedures in the cloud 80% 13% 2% 5% Proven post-sales support & service 77% 14% 3% 6% Offers the most efecive model 72% 21% 2% 5% Ability to understand my business goals and objectives 71% 1 5% 5% Experience in establishing effective governance policies and procedures in the cloud 70% 19% 4% 7% Experience in building and operating cloud environments in my vertical industry 64% 22% 5% In-depth insighr and expertise regarding cloud trends and direction 60% 2 5% 7% Knowledge of how my organization operates/organizational structure 54% 2 6% Innovative ideas 53% 35% 6% 6% Ability to differentiate their portfolio from that of their competiors 52% 34% Prior experience with this vendor 37% 43% 14% Critical/Very important Somewhat important No very/not at all important Not sure/not applicable Q. Please rate the important of the following factors when evaluating cloud computing technology vendors as a strategic partner for you organization. 34 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

36 To Gain Competitive Advantage Security Must be a Top Priority Implement monioring and access control policies and procedures Provide security reporting/updates to customers/clients The cloud provider needs to meet my proganzation's security standards Adoptiong of industry standard frameworks (SAS70, etc.) Maintain interoperability with existing security architecture The cloud provider should be willing to allow onsite independent audits Conduct data background checks on relevent employees Incorporate security into the system development lifecycle Follow the Cloud Security Alliance guidelines for critical focus areas Provide information on other types data that mayshare your cloud Other 34% 37% 65% 62% 56% 55% 54% 53% 51% 51% Q. What security measures do cloud computing technology vendors need to implement to become a trusted partner? 35 Source: IDG Enterprise Cloud Computing Study, January, 2012 CSO results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

37 No Clear Consensus Around Vendor Offering Problem Areas Better pricing models 56% Data integrity/quality assurance 52% Provide technology that integrates with other parts of your infrastructure 49% Offer flexibility in terms of contracts 49% Provide better tools for managing the cloud deployment Stronger controls in place to help enforce your compliance-related policies and issues 47% 49% Provide more standardized options for moving certain applications to the cloud 40% Other Q. What can technology vendors do to make cloud computing offerings more attractive? 36 Source: IDG Enterprise Cloud Computing Study, January, 2012 Computerworld results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

38 Vendor Content Opportunities Vendor's attempts to address cloud security concerns 46% 37% 9% 4% 4% Deciding which applications are a fit for cloud computing models 45% 39% 9% 4% 3% Backup and file storage in the cloud 44% 39% 9% 3% 5% Growth of data and issues with migrating data to the cloud 40% 44% 3% 5% Creating synergy between cloud computing solutions and the existing enterprise 39% 43% 10% 3% 5% Tips on building a private cloud within your enterprise 3 35% 14% 6% Introduction of 2nd generation cloud products that offer greater functionality 24% 50% 14% 5% 7% Desktop/laptop virtualization trends 24% 43% 22% 6% 5% New Certificate of Cloud Security Knowledge (CCSK) offered by the Cloud Security Alliance 20% 32% 26% 14% 7% Mobile clouds 1 42% 23% 10% 7% Very important Somewhat important Not very important Not at all important Not applicable Q. How important are each of the following cloud computing topics or stories in helping your organization build its cloud computing strategy? 37 Source: IDG Enterprise Cloud Computing Study, January, 2012 ITworld Results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

39 Known Vendors Have Advantage When Data Moves to the Cloud Not sure 26% 10% 11% 42% Software vendor from whom you purchased the application to evaluate their cloud offerings A hosting VAR A new company whose primary business is providing cloud-based solutions Another software company that has a mature premisebased offering and also offers cloud-based solutions. 38 Q. When migrating a business-critical application to the cloud, who would you most likely contact first? Source: IDG Enterprise Cloud Computing Study, January, 2012 InfoWorld specific results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

40 Room for Cloud Leader to Emerge Amazon Other Microsoft.com google.com IBM Salesforce Vmware Rackspace HP Cisco Citrix Dell Oracle/Sun Apple EMC Verizon AT&T Terremark CA Joyent Savvis SAP Not sure 4% 4% 4% 3% 3% 2% 2% 2% 1% 1% 1% 1% 6% 9% 9% 17% 19% 22% 22% 25% 41% Q. Which vendors do you consider to be thought leaders in the area of cloud computing? 39 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

41 Conclusion Migration to the Cloud is on solid ground and continuing. Private cloud is the most readily adopted, but public and hybrid are clear growth areas. Cloud budgets are expected to increase in the next year and spending will be divided among different types of cloud services. Cloud is expected to provide cost savings in the long run, however, it is difficult to calculate what those savings might be. IT is almost always consulted when business units/departments make cloud purchases. Cloud is driving the evolution of the IT department by requiring them to become more critical across the organization, develop new roles or acquire new skills. Establishing security in the cloud is key when it comes to vendor selection. 40 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

42 DEMOGRAPHIC INFORMATION Source: IDG Enterprise Cloud Computing Study, January, 2012

43 Cloud-related Purchase Involvement Involved (NET) 100% Determine the business need 6 Determine requirements 66% Evaluate 76% Recommend and select vendors 65% Sell internally 35% Approve/authorize 43% Q. In which of the following ways are you involved in the purchase process for cloud computing solutions at your organization? 42 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

44 Cloud Computing Plans Plans (NET) 100% Have at least one application or a portion of our computing infrastructure in the cloud 57% Plan to use cloud-based applications and/or computing infrastructure via the cloud within the next 12 months Plan to use cloud-based applications and/or computing infrastructure via the cloud within 1 to 3 years 25% 1 Q. What are your organization s plans with regard to utilizing computing infrastructure or applications via the cloud? 43 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

45 Job Titles IT/Networking/Security Management (NET) 5 CIO,CTO 16% Director 14% Manager 13% Technical Consultant 7% VP 4% CSO 2% Executive VP, Senior VP 1% Supervisor 1% IT/Networking Staff (NET) 17% Systems Integrator 5% Business Management (NET) 21% CEO, COO, Chairman, President 9% Director, Manager 6% Executive VP, Senior VP, VP, GM 2% Other Corporate Business Manager 2% Consultant (Non Technical) 1% CFO, Controller, Treasurer 1% Other (NET) 4% Other (Non Manager) 4% Other IT Staff 4% Application/Software developer 3% Networking Staff 4% Q. What is your primary job title? 44 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

46 Industry High Tech, Telecom & Utilities 19% Services (legal, consulting, real estate) 11% Government and Nonprofits 11% Manufacturing (including automotive, aerospace & defense, construction, engineering, chemical, metals and mining) 9% Financial Services (banking, insurance, brokerage) 10% Education 9% Healthcare Retail, Wholesale and Distribution 6% Advertising/Marketing/PR/Media (publishing, broadcast, online) 5% Transportation (airlines, trucking, railroads, shipping and logistics) 2% Travel and Leisure (cruise lines, hotels, theme parks, casinos) 1% Q. Which of the following best describes your organization s industry or function at this location? 45 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

47 Annual Gross Sales/Revenue $40 billion + 6% $15 billion - $39.9 billion 5% $5 billion - $14.9 billion 6% $1 billion - $4.9 billion 11% $500 million - $999.9 million 6% $100 million - $499.9 million 11% $50 million $99.9 million 7% <$50 million 30% Not Applicable (e.g., nonprofit, government, union) 10% Not Sure 9% Average Revenue: Q. Please select the dollar amount that best represents the annual gross sales or revenues for your organization or enterprise (include all plants, divisions, branches, parents, and subsidiaries worldwide.) 46 Source: IDG Enterprise Cloud Computing Study, January, 2012 METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

48 Appendix Source: IDG Enterprise Cloud Computing Study, January, 2012

49 Support Split Between Private Cloud and Third Party Resources 3 currently supported by private and/or third party cloud resources 46% currently run on organization s private cloud 54% currently hosted off site by a third party Q. You mentioned that your organization has at least one application or a portion of its computing infrastructure in the cloud. What percentage is supported by private and/or public cloud resources currently? Of that, what percentage is run on your organization s private cloud and what percentage is hosted off site by a third party? Base: Has at least one application or a portion of its computing infrastructure in the cloud 48 Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

50 Future Plans Skew Towards Private Cloud 33% will be supported by private and/or third party cloud resources 6 will run on organization s private cloud 32% will be hosted off site by a third party Q. What percentage do you anticipate will be supported by private and/ or public cloud resources? Of that, what percentage will be run on your organization s private cloud and what percentage is hosted off site by a third party? Base: Organization plans to use cloud-based applications and/ or a portion of its computing infrastructure in the cloud 49 Source: IDG Enterprise Cloud Computing Study, January, 2012 Network World results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS

51 IT Pros are Evaluating Cloud Services on an Ongoing Basis Evaluating new cloud computing technologies and services on an ongoing basis (e.g. more than once per year) 65% Setting security standards for use when evaluating cloud solutions 47% Redefinging internal business processes that can leverage cloud computing Implementing cloud computing implementation standards and policies to limit complexity Increasing corporate use ofcloud-based mobile applications (such as Google Calender, Google Tasks) 39% 39% 37% Undertaking an effort to ready your organization's data for movement to the cloud 32% Shifting your spending away from packaged applications 31% Q. How are these top trends impacting your organization s cloud computing strategy and plans? Are you: 50 Source: IDG Enterprise Cloud Computing Study, January, 2012 ITworld Results METHODOLOGY RESULTS CONCLUSION DEMOGRAPHICS