Cloud Computing Adoption Trends:

Transcription

1 Research Report Abstract: Cloud Computing Adoption Trends: Software- and Infrastructure-as-a-Service Usage Among Enterprise and Midmarket Organizations By Bill Lundell With John McKnight and Jennifer Gahm May Enterprise Strategy Group, Inc. All Rights Reserved.

2 Introduction Research Objectives Research Report: Cloud Computing Adoption Trends In order to assess IT spending priorities over 2011 and beyond, ESG recently surveyed 611 North American and Western European senior IT professionals representing midmarket (100 to 999 employees) and enterprise-class (1,000 employees or more) organizations. All respondents were personally responsible for or familiar with their organizations 2010 IT spending as well as their 2011 IT budget and spending plans at either an entire organization level or at a business unit/division/branch level. A subset of ESG s questions in this survey focused on respondents usage of and plans for public cloud computing services. Specifically, the survey asked the following questions with respect to cloud computing services: 2 What impact will public cloud computing services have on organizations traditional IT infrastructure and processes over the next five years? Among organizations that believe public cloud computing will have little or no impact on their IT strategies, what are these customers leading objections or concerns? How does cloud computing sentiment vary by organization size, IT budget, and other variables? What are the usage trends for SaaS (software-as-a-service), and how do they vary by organization size? What types of applications are being delivered via the SaaS model? What percentage of organizations current applications is delivered via a SaaS model? How will this change over time? Who are the primary internal advocates for the usage of SaaS? What are the usage trends for IaaS (infrastructure-as-a-service), and how do they vary by company size and the scope of on-site IT infrastructure? What portion of 2011 IT budgets will organizations earmark for spending on SaaS and/or IaaS services? Survey participants represented a wide range of industries including manufacturing, financial services, communications and media, health care, retail, government, and business services. For more details, please see the Research Methodology and Respondent Demographics sections of this report. 2 Note: Cloud computing questions in this survey focused on software-as-a-service (or SaaS) and infrastructure-as-a-service (IaaS) offerings. So-called platform-as-a-service (PaaS) offerings are beyond the scope of this particular study.

3 Research Methodology To gather data for this report, ESG conducted a comprehensive online survey of IT managers from private- and public-sector organizations in North America (United States and Canada) and Western Europe (United Kingdom, France, and Germany) between November 17, 2010 and December 1, To qualify for this survey, respondents were required to be senior IT managers personally responsible for or familiar with their organization s overall 2011 IT budget and spending plans, either at an entire organization level or at a business unit/division/branch level. Respondents who were only responsible for IT spending at a departmental or workgroup level were disqualified. All respondents were provided an incentive to complete the survey in the form of cash awards and/or cash equivalents. After filtering out unqualified respondents, removing duplicate responses, and screening the remaining completed responses (on a number of criteria) for data integrity, we were left with a final total sample of 611 IT managers. Please see the Respondent Demographics section of this report for more information on these respondents. Note: Totals in figures and tables throughout this report may not add up to 10 due to rounding.

4 Respondent Demographics The data presented in this report is based on a survey of 611 qualified respondents. The figures below detail the demographics of the respondent base, including individual respondents current job responsibility and budget responsibility as well as respondent organizations total number of employees, primary industry, annual revenue, 2011 IT budget, number of IT staff, number of production, and geographic region. Respondents by Job Responsibility Respondents current job responsibility is shown in Figure 1. Figure 1. Survey Respondents, by Job Responsibility Which of the following best describes your current responsibility within your organization? (Percent of respondents, N=611) IT staff, 5% Other, 2% IT management, 41% Senior IT management (e.g., CIO, VP of IT, Director of IT, etc.), 52% Respondents by Budget Responsibility Respondents responsibility/familiarity with their organization s IT budgets and spending is shown in Figure 2. Figure 2. Survey Respondents Budget Responsibility/Familiarity Which of the following best describes your personal responsibility with respect to your organization s 2011 IT budget and spending plans? (Percent of respondents, N=611) I am responsible for/familiar with IT budgets and spending plans for a specific business unit, division, branch office, etc., 38% I am responsible for/familiar with IT budgets and spending plans for my entire company/organization, 62%

5 Respondents by Number of Employees The number of employees in respondents organizations is shown in Figure 3. Figure 3. Survey Respondents, by Number of Employees How many total employees does your organization have worldwide? (Percent of respondents, N=611) 20,000 or more, 19% 100 to 249, 11% 250 to 499, 14% 5,000 to 19,999, 500 to 999, 13% 2,500 to 4,999, 11% 1,000 to 2,499, 12% Respondents by Industry Respondents were asked to identify their organization s primary industry. In total, ESG received completed, qualified respondents from individuals in 20 distinct vertical industries, plus an Other category. Respondents were then grouped into the broader categories shown in Figure 4. Figure 4. Survey Respondents, by Industry What is your organization s primary industry? (Percent of respondents) Government (Federal/National), 5% Education, 6% Government (State/Province/Count y/municipal, etc.), 6% Transportation & Logistics, 5% Retail/Wholesale, 7% Communications & Media, 8% Other, 8% Health Care, 8% Manufacturing, Business Services, 9% Financial (banking, securities, insurance), 19%

6 Respondents by Annual Revenue Respondent organizations annual revenue is shown in Figure 5. Figure 5. Survey Respondents, by Annual Revenue What is your organization s total annual revenue ($US)? (Percent of respondents) Midmarket (100 to 999 employees, N=231) Enterprise (1,000 or more employees, N=380) 35% 33% 3 25% 26% 23% 24% 15% 5% 1% 2% 11% 11% 7% 3% 1% 12% 11% 7% 7% Less than $50 $50 to $99 $100 to $499 $500 to $999 $1 billion to $4.999 billion $5 billion to $9.999 billion $10 billion to $ billion $20 billion or more Not applicable (e.g., public sector, nonprofit) Respondents by Total 2011 Overall IT Budget The total expected spending on IT products, staffing, and services is shown in Figure 6. Figure 6. Total 2011 Budget for All IT Products, Staffing, and Services 5 45% 4 35% 3 25% 15% 5% 45% 4% Less than $1 To the best of your knowledge at this time, what is your organization s total 2011 budget for all IT products, staffing, and services ($US)? (Percent of respondents) 35% Midmarket (100 to 999 employees, N=231) 13% $1 to $ % 11% $5 to $ % 11% 9% 8% 6% 7% 4% 3% 3% 3% $10 to $ $25 to $ $50 to $ Enterprise (1,000 or more employees, N=379) $75 to $ $100 $250 to to $249 $499 $500 to $749 $750 to $999 $1 billion or more

7 Current IT Budget Allocations Average IT budget allocations by category are shown in Figure 7. Figure IT Budget Allocation To the best of your knowledge at this time, approximately what percentage of your organization s total 2011 IT budget is allocated to each of the following categories? (Mean, N=611) Other, 2% IT Outsourcing Services, 8% Professional Services/Consulting, 7% Telecom/Network Services, 12% Software, 17% Hardware, 19% 3 Staff, 34% Respondents by Number of IT Staff The number of IT staffers in respondents organizations is shown in Figure 8. Figure 8. Survey Respondents, by Number of IT Staff To the best of your knowledge, approximately how many IT staff does your organization employ worldwide? (Percent of respondents) 7 65% Midmarket (100 to 999 employees, N=231) Enterprise (1,000 or more employees, N=380) % 3 4% 19% 9% 11% 11% 15% 11% 7% 7% 3% 1% 1% Less than 25 IT staff 25 to 50 IT staff 51 to 99 IT staff 100 to 149 IT staff 150 to 199 IT staff 200 to 249 IT staff 250 to 499 IT staff 500 or more IT staff

8 Respondents by Number of Servers The number of production operated worldwide by respondents IT organizations is shown in Figure 9. Figure 9. Survey Respondents, by Number of Servers Approximately how many production (whether physical or virtual) are supported worldwide by your IT organization? (Percent of respondents) Midmarket (100 to 999 employees, N=225) Enterprise (1,000 or more employees, N= 354) 5 45% 4 35% 3 25% 15% 5% 44% 5% 28% 8% 16% 11% 8% 18% 3% 15% 15% 9% 8% 1% 12% Less than to to to to to 1,000 1,001 to 2,500 2,501 to 5,000 More than 5,000 Respondents by Total Disk-based Storage Capacity The amount of installed capacity associated with disk-based storage systems is shown in Figure 10. Figure 10. Survey Respondents, by Total Disk-based Storage Capacity To the best of your knowledge, what is your organization s total installed capacity associated with disk-based storage systems? (Percent of respondents) Midmarket (100 to 999 employees, N=125) Enterprise (1,000 or more employees, N=143) 3 27% 25% 22% 24% 18% 17% 15% 14% 13% 9% 7% 5% 1% 4% 2% 2% 4% 3% Less than 5 TB 5 TB to 9 TB 10 TB to 24 TB 25 TB to TB to 99 TB TB 100 TB to 249 TB 250 TB to 499 TB 500 TB to 999 TB 1 PB or more

9 Respondents by Region Figure 11 shows the regional breakdown of the respondent base. Figure 11. Survey Respondents, by Region Respondents by region. (Percent of respondents, N=611) Western Europe, 28% North America, 72% Respondent by Psychographics ESG created a company psychographic profile by capturing respondents views on their organization s purchasing pattern for IT products and services (see Figure 12) and overall effectiveness of the IT organization (see Figure 13). Figure 12. Survey Respondents, by Purchasing Pattern for IT Products and Services Generally speaking, how would you describe your organization s purchasing patterns for IT products and services? (Percent of respondents, N=611) Laggard consumers we don t really stay on top of technology trends and tend to make investments only after those technologies have been widely accepted in the market, 15% Don t know/no opinion, 3% Leading-edge consumers we stay on top of the most current technology trends and purchase related products as soon as they are available, 14% Average consumers we stay on top of technology trends but generally wait to purchase related products until they have proven acceptance in the market, 68%

10 Figure 13. Survey Respondents, by Effectiveness of IT Organization Which statement do you believe best describes the overall effectiveness of your IT organization? (Percent of respondents, N=611) Needs improvement do not consistently meet business needs. Line-of-business executives are often dissatisfied with IT s performance, cost & reliability., 13% Somewhat effective could do a better job supporting business priorities & service level requirements in a timely, secure, & cost-effective manner. Line-ofbusiness executives are occasionally dissatisfied with IT s performance, cost & reliability, 61% Don t know/no opinion, 2% Highly effective consistently able to support business needs & deliver promised service levels in a timely, secure, & costeffective manner. Line-of-business executives are rarely dissatisfied with IT s performance, cost & reliability., 24%

11 Contents List of Figures... 3 List of Tables... 3 Executive Summary... 4 Report Conclusions... 4 Introduction... 6 Research Objectives... 6 Research Findings... 7 Public Cloud Computing Sentiment... 7 Software-as-a-Service (SaaS) Usage Trends Infrastructure-as-a-Service (IaaS) Usage Trends Conclusion Research Methodology Respondent Demographics Respondents by Job Responsibility Respondents by Budget Responsibility Respondents by Number of Employees Respondents by Industry Respondents by Annual Revenue Respondents by Total 2011 Overall IT Budget Current IT Budget Allocations Respondents by Number of IT Staff Respondents by Number of Servers Respondents by Total Disk-based Storage Capacity Respondents by Region Respondent by Psychographics... 27

12 List of Figures Figure 1. Expected Impact of Public Cloud Computing... 7 Figure 2. Expected Impact of Public Cloud Computing, by Usage of Cloud Computing as a Cost Reduction Strategy... 8 Figure 3. Factors Preventing Wide Scale Adoption of Public Cloud Computing... 9 Figure 4. Usage Trends for Software-as-a-Service (SaaS) Figure 5. Usage Trends for Software-as-a-Service (SaaS), by Company Size Figure 6. Extent of SaaS Usage, Now and 36 Months from Now Figure 7. Applications Organizations Have Deployed or Expect to Deploy via the SaaS Model Figure IT Budget Allocated for SaaS-based Applications Figure 9. Biggest Internal Advocates for SaaS Adoption Figure 10. Usage Trends for Infrastructure-as-a-Service (IaaS) Figure 11. Usage Trends for Infrastructure-as-a-Service (IaaS), by Company Size Figure IT Budget Allocated for IaaS Services Figure 13. Expected Impact of Public Cloud Computing Among Current SaaS and/or IaaS Users Figure 14. Survey Respondents, by Job Responsibility Figure 15. Survey Respondents Budget Responsibility/Familiarity Figure 16. Survey Respondents, by Number of Employees Figure 17. Survey Respondents, by Industry Figure 18. Survey Respondents, by Annual Revenue Figure 19. Total 2011 Budget for All IT Products, Staffing, and Services Figure IT Budget Allocation Figure 21. Survey Respondents, by Number of IT Staff Figure 22. Survey Respondents, by Number of Servers Figure 23. Survey Respondents, by Total Disk-based Storage Capacity Figure 24. Survey Respondents, by Region Figure 25. Survey Respondents, by Purchasing Pattern for IT Products and Services Figure 26. Survey Respondents, by Effectiveness of IT Organization List of Tables Table 1. Expected Impact of Public Cloud Computing, by Company Size and IT Budget... 8 Table 2. Effective IT Organizations Believe They re a Better Alternative to Cloud Computing Services... 9 Table 3. Usage Trends for Software-as-a-Service (SaaS), by Production Servers and 2011 IT Budget Table 4. Applications Organizations Have Deployed or Expect to Deploy via the SaaS Model, by Company Size Table IT Budget Allocated for SaaS-based Applications, by Usage of SaaS Table IT Budget Allocated for SaaS-based Applications, by Usage of Cloud Computing for Cost Reduction Table 7. Usage Trends for Infrastructure-as-a-Service (IaaS), by Production Servers and Storage Capacity Table IT Budget Allocated for IaaS Services, by Usage of IaaS Table IT Budget Allocated for IaaS-based Applications, by Usage of Cloud Computing for Cost Reduction19 All trademark names are property of their respective companies. Information contained in this publication has been obtained by sources The Enterprise Strategy Group (ESG) considers to be reliable but is not warranted by ESG. This publication may contain opinions of ESG, which are subject to change from time to time. This publication is copyrighted by The Enterprise Strategy Group, Inc. Any reproduction or redistribution of this publication, in whole or in part, whether in hard-copy format, electronically, or otherwise to persons not authorized to receive it, without the express consent of the Enterprise Strategy Group, Inc., is in violation of U.S. Copyright law and will be subject to an action for civil damages and, if applicable, criminal prosecution. Should you have any questions, please contact ESG Client Relations at (508)

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