Hosting and Cloud Study 2015 Beyond Infrastructure: Cloud 2.0 Signifies New Opportunities for Cloud Service Providers Survey Results
Demographics Respondents by Role Respondents by Department I make IT purchasing recommendations 78% Marketing, 7% I am influential in IT decisions and strategy I manage relationships with 3rd party IT providers I have significant decision making authority regarding IT 69% 65% 77% Application Development, 17% I build or maintain IT systems 53% I develop or maintain IT software 50% IT Ops & Admin, 76% 0% 20% 40% 60% 80% 100% % of Respondents N=1,316 S2a. Which of the following categories best describes your organization's expected annual revenue for 2015? ($US) N=1,736 S1. Which department do you work in at your organization? Page 2
Worldwide Sample Size n=1,736 10 Countries Represented Netherlands 2% USA 53% UK 8% Germany 9% Turkey 3% Japan 4% India 7% Brazil 6% Singapore 3% Australia 5% Page 3
BUDGET BY HOSTING SERVICES TYPE 2014 451 Research LLC. All rights reserved. Page 4
IT Services Currently Acquired HosRng Services/IaaS SoTware- as- a- Service Outsourcing Services 37% 60% 62% 62% 55% 55% 44% 45% 46% 49% 53% 44% Total (n=1736) North America (n=926) Europe (n=334) PlaXorm- as- a- Service ColocaRon Services 19% 28% 32% 25% 24% 30% 44% 45% 46% 41% 44% 42% Asia (n=323) South America (n=103) MEA (n=50) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% S7a. Which if any of the following IT services does your organiza<on currently buy from service providers today? [Must select 2- Hos<ng Services, else terminate] Page 5
Current versus Future Budget Allocation On- Premises Infrastructure & Staff HosRng Services SaaS Other Off Premises services Current 43% 33% 12% 11% In 2 Years 40% 35% 13% 11% n=1617 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of IT Budget S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%] Page 6
Current versus Future Budget by Region Current IT Budget AllocaBon On- Premises Infrastructure & Staff HosRng Services SaaS Other Off Premises services Future IT Budget AllocaBon On- Premises Infrastructure & Staff HosRng Services SaaS Other Off Premises services Total (n=1617) 43% 33% 12% 11% 40% 35% 13% 11% North America (n=807) 43% 32% 14% 11% 41% 33% 15% 11% Europe (n=334) 44% 34% 11% 11% 41% 37% 12% 11% Asia (n=323) 43% 35% 11% 12% 41% 37% 11% 11% South America (n=103) 40% 36% 10% 14% 37% 39% 11% 13% MEA (n=50) 40% 40% 9% 11% 40% 41% 9% 11% 0% 20% 40% 60% 80% 100% % of IT Budget 0% 20% 40% 60% 80% 100% % of IT Budget S8. Using your best guess, approximately what percent of your total IT budget in 2015 is allocated to: [sum to 100%] S9. Now thinking out two years, approximately what percent of your total IT budget will be allocated to: [sum to 100%] Page 7
Infrastructure Spending On- Premise Standalone non- virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated) Current 38% 34% 27% In 2 Years 34% 36% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n=1576 % of On- Premise Infrastructure Spending S10. Approximately, what percent of your on- premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on- premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%] Page 8
Current versus Future On- Premise Spending by Region Current On- Premise Infrastructure Spending Future On- Premise Infrastructure Spending Total (n=1576) Standalone non- virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated) 38% 34% 27% 34% Standalone non- virtualized infrastructure Virtualized infrastructure PRIVATE CLOUD (automated and orchestrated) 36% 30% North America (n=791) 38% 34% 28% 33% 36% 31% Europe (n=325) 39% 34% 27% 34% 36% 30% Asia (n=312) 39% 35% 26% 36% 37% 27% South America (n=101) 34% 37% 29% 33% 37% 31% MEA (n=47) 41% 35% 24% 38% 32% 30% 0% 20% 40% 60% 80% 100% % of On- Premise Infrastructure Spending S10. Approximately, what percent of your on- premises infrastructure spending is split across the following three deployment models today? [Sum to 100] S11. Approximately, what percent of your on- premises infrastructure spending is split across the following three deployment models in two years? [Sum to 100%] 0% 20% 40% 60% 80% 100% % of On- Premise Infrastructure Spending Page 9
Infrastructure Spending Off- Premise Dedicated Servers Public Cloud Hosted Private Cloud Basic Website HosRng Current (n=1604) 35% 25% 17% 22% In Two Years (n=1569) 33% 29% 18% 19% n=1576 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Off- Premise Infrastructure Spending I1. Approximately, what percent of your current off premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your off premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%] Page 10
Current versus Future Off- Premise Spending by Region Current Off- Premise Infrastructure Spending Future Off- Premise Infrastructure Spending Dedicated Servers Hosted Private Cloud Public Cloud Basic Website HosRng Dedicated Servers Hosted Private Cloud Total (n=1604) 35% 25% 17% 22% 33% 29% 18% 19% North America (n=797) 37% 26% 17% 20% 34% 29% 18% 18% Europe (n=331) 36% 24% 17% 23% 32% 30% 18% 20% Asia (n=323) 35% 25% 18% 23% 33% 27% 19% 20% South America (n=103) 31% 31% 14% 24% 30% 33% 15% 22% MEA (n=50) 28% 24% 22% 26% 27% 27% 23% 23% 0% 20% 40% 60% 80% 100% % of Off- Premise Infrastructure Spending 0% 20% 40% 60% 80% 100% % of Off- Premise Infrastructure Spending I1. Approximately, what percent of your current off premises hosted infrastructure spending is split across the following four deployment models? [Sum to 100] I2. In two years approximately what percent of your off premises hosted infrastructure spending will be split across the following four deployment models? [Sum to 100%] Page 11
osting Budget by Services Type: Today and in Two Years Current % HosBng/Cloud Services Budget AllocaBon Future % HosBng/Cloud Services Budget AllocaBon 21% 31% Infrastructure HosRng 21% 31% ApplicaRon HosRng 21% Managed Services 21% 27% Security Services 27% n=1600 n=1593 H2. Approximately what percent of your HOSTING & CLOUD SERVICES budget in 2015 is allocated to the following services? [Sum to 100] H3. Now thinking out two years, approximately what percent of your HOSTING & CLOUD SERVICES budget will be allocated to the following services? [Sum to 100%] Page 12
MANAGED SERVICES 2014 451 Research LLC. All rights reserved. Page 13
Managed Services: Spending Over Next Two Years Backup and Recovery 68% Disaster Recovery/Site Recovery 54% ApplicaRon development tools & plaxorms 47% Mobile Services 47% Premium 24 x 7 support services 45% Archiving 44% End to End ApplicaRon management including monitoring and configuraron 42% Capacity Planning 37% CDN/Media Streaming 23% None 5% n=1619 0% 10% 20% 30% 40% 50% 60% 70% M1. Which of the following managed services if any - - will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? Page 14
Managed Services: Spending by Region Over Next Two Years Backup and Recovery Disaster Recovery/Site Recovery ApplicaRon development tools & plaxorms Mobile Services North America (n=809) Europe (n=334) Premium 24 x 7 support services Archiving Asia (n=323) End to End ApplicaRon management including monitoring and configuraron Capacity Planning CDN/Media Streaming South America (n=103) MEA (n=50) None 0% 10% 20% 30% 40% 50% 60% 70% 80% M1. Which of the following managed services if any - - will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? Page 15
Managed Services: Spending by Maturity Over Next Two Years Backup and Recovery Disaster Recovery/Site Recovery ApplicaRon development tools & plaxorms Discovery and EvaluaRon (n=214) Mobile Services Premium 24 x 7 support services Archiving Running Trials/Pilot Projects (n=289) ApplicaRon Test and Development (n=514) End to End ApplicaRon management including monitoring and configuraron IniRal ImplementaRon (n=357) Capacity Planning CDN/Media Streaming Broad ImplementaRon (n=239) None 0% 10% 20% 30% 40% 50% 60% 70% 80% M1. Which of the following managed services if any - - will comprise a significant por<on of your Managed Services spending with hos<ng & cloud providers over the next two years? Page 16
APPLICATION HOSTING 2014 451 Research LLC. All rights reserved. Page 17
Application Hosting: Spending Over Next Two Years Database 57% Email 54% Business applicarons: includes ERP, CRM, industry- specific applicarons 49% Virtual Desktop HosRng/ VDI Personal ProducRvity - Docs, Spreadsheet, PresentaRon AnalyRcs: Includes Business Intelligence, Data mining, Big Data Ecommerce Website HosRng and advanced funcronality Unified CommunicaRons (Voice, Chat, Video Conferencing) CollaboraRve applicarons such as workgroup, IM 45% 43% 41% 39% 38% 36% Media Streaming 30% None 4% n=1619 0% 10% 20% 30% 40% 50% 60% A1. Which of the following hosted applica<ons if any - - will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? Page 18
Application Hosting: Spending by Region Over Next Two Years Database Email Business applicarons: includes ERP, CRM, industry- specific applicarons Virtual Desktop HosRng/ VDI Personal ProducRvity - Docs, Spreadsheet, PresentaRon AnalyRcs: Includes Business Intelligence, Data mining, Big Data Ecommerce Website HosRng and advanced funcronality Unified CommunicaRons (Voice, Chat, Video Conferencing) CollaboraRve applicarons such as workgroup, IM Media Streaming North America (n=809) Europe (n=334) Asia (n=323) South America (n=103) MEA (n=50) None 0% 10% 20% 30% 40% 50% 60% 70% 80% A1. Which of the following hosted applica<ons if any - - will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? Page 19
Application Hosting: Spending by Maturity Over Next Two Years Database Email Business applicarons: includes ERP, CRM, industry- specific applicarons Virtual Desktop HosRng/ VDI Personal ProducRvity - Docs, Spreadsheet, PresentaRon AnalyRcs: Includes Business Intelligence, Data mining, Big Data Ecommerce Website HosRng and advanced funcronality Unified CommunicaRons (Voice, Chat, Video Conferencing) CollaboraRve applicarons such as workgroup, IM Media Streaming None Discovery and EvaluaRon (n=214) Running Trials/ Pilot Projects (n=289) ApplicaRon Test and Development (n=514) IniRal ImplementaRon (n=357) Broad ImplementaRon (n=239) 0% 10% 20% 30% 40% 50% 60% 70% 80% A1. Which of the following hosted applica<ons if any - - will comprise a significant por<on of your Applica<on Hos<ng spending with hos<ng & cloud providers over the next two years? Page 20
SECURITY SERVICES 2014 451 Research LLC. All rights reserved. Page 21
Security Services: Spending Over Next Two Years Endpoint Security EncrypRon of ConfidenRal Data Stored in the Cloud Web ApplicaRon Firewall (WAF) Advanced AnR- malware/anr- APT Security InformaRon & Event Management (SIEM) and Logging/ Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management Vulnerability Assessment Data Sovereignty/Data Residency Endpoint or Network Data Leakage PrevenRon (DLP) Computer/Network Forensics Support/Breach Response IT GRC - Governance, Risk, Compliance AnR - DDoS - AnR- Distributed Denial of Service Auditability capabilires - environment can be audited by security teams Liability Guarantees/Insurance in event of a breach or loss 36% 35% 35% 33% 33% 31% 29% 29% 29% 26% 25% 46% 45% 43% 42% None 4% n=1619 0% 10% 20% 30% 40% 50% 60% 70% E1. Which of the following security services if any - - will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? Page 22
Security Services: Spending by Region Over Next Two Years Endpoint Security EncrypRon of ConfidenRal Data Stored in the Cloud Web ApplicaRon Firewall (WAF) Advanced AnR- malware/anr- APT Security InformaRon & Event Management (SIEM) and Logging/Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management North America (n=809) Europe (n=334) Vulnerability Assessment Data Sovereignty/Data Residency Endpoint or Network Data Leakage PrevenRon (DLP) Computer/Network Forensics Support/Breach Response IT GRC - Governance, Risk, Compliance AnR - DDoS - AnR- Distributed Denial of Service Auditability capabilires - environment can be audited by security teams Liability Guarantees/Insurance in event of a breach or loss Asia (n=323) South America (n=103) MEA (n=50) None E1. Which of the following security services if any - - will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? 0% 10% 20% 30% 40% 50% 60% 70% Page 23
Security Services: Spending by Maturity Over Next Two Years Endpoint Security EncrypRon of ConfidenRal Data Stored in the Cloud Web ApplicaRon Firewall (WAF) Advanced AnR- malware/anr- APT Security InformaRon & Event Management (SIEM) and Logging/Event Management IdenRty Management: AuthorizaRon/Access Control and AuthenRcaRon Secure ConfiguraRon Management Discovery and EvaluaRon (n=289) Running Trials/Pilot Projects (n=514) Vulnerability Assessment Data Sovereignty/Data Residency Endpoint or Network Data Leakage PrevenRon (DLP) ApplicaRon Test and Development (n=357) Computer/Network Forensics Support/Breach Response IT GRC - Governance, Risk, Compliance AnR - DDoS - AnR- Distributed Denial of Service Auditability capabilires - environment can be audited by security teams Liability Guarantees/Insurance in event of a breach or loss None IniRal ImplementaRon (n=239) Broad ImplementaRon (n=50) E1. Which of the following security services if any - - will comprise a significant por<on of your Security Services spending with hos<ng and cloud providers over the next two years? 0% 10% 20% 30% 40% 50% 60% 70% Page 24
HYBRID CLOUD 2014 451 Research LLC. All rights reserved. Page 25
Hybrid Cloud: Interoperability by Maturity On premises PRIVATE cloud with a HOSTED PRIVATE cloud 63% 64% 59% 62% 63% 75% Total (n=1419) On premises PRIVATE cloud with a PUBLIC cloud HOSTED PRIVATE cloud with a PUBLIC cloud 45% 40% 45% 51% 41% 41% 32% 26% 26% 32% 34% 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Discovery and EvaluaRon (n=166) Running Trials/Pilot Projects (n=244) ApplicaRon Test and Development (n=466) IniRal ImplementaRon (n=326) Broad ImplementaRon (n=214) I6. Has your organiza<on configured any of the following clouds for interoperability for the seamless delivery of a business func<ons? Check all that apply Page 26
Hybrid Cloud Migration by Type Current Public to Private Cloud MigraBon Future Public to Private Cloud MigraBon 0.4% 1% 18% 32% No 19% 29% Yes, to a HOSTED PRIVATE cloud environment Yes, to an ON- PREMISE cloud environment 50% Don't know 52% n=1419 I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year? Page 27
Hybrid Cloud Migration by Type and Region Current Public to Private Cloud MigraBon by Region Future Public to Private Cloud MigraBon by Region 19% 15% 18% 13% 23% 100% 90% Don't know 20% 17% 16% 19% 23% 100% 90% 80% 80% 49% 31% North America (n=712) 46% 39% Europe (n=295) 53% 58% 51% 29% 29% 26% Asia (n=278) South America (n=91) MEA (n=43) 70% 60% 50% 40% 30% 20% 10% 0% Yes, to an ON- PREMISE cloud environment Yes, to a HOSTED PRIVATE cloud environment No 50% 29% North America (n=712) 48% 35% Europe (n=295) 55% 28% Asia (n=278) 64% 58% 18% 19% South America (n=91) MEA (n=43) 70% 60% 50% 40% 30% 20% 10% 0% I7. Has your organiza<on migrated any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment I8. Does your organiza<on plan to migrate any applica<ons or data that were primarily part of a PUBLIC cloud environment to a PRIVATE cloud environment over the next year? Page 28
Hybrid Cloud Migration Drivers 0.2% 8% 7% Security 17% 35% Lower Cost Bemer Control by our IT teams Performance Customer service Part of a Shadow IT centralizaron n=1089 19% 14% Other I9. What is the primary driver for migra<ng workloads from a PUBLIC to PRIVATE environment? (Select One) Page 29
VENDOR SELECTION 2014 451 Research LLC. All rights reserved. Page 30
Significant Hosting Project by Deployment Model 100% 2% 3% 2% 2% 90% 80% 26% 21% 31% 19% Other 70% 60% 50% 40% 30% 17% 33% 19% 30% 15% 32% 19% 38% Security Services Managed Services ApplicaRon HosRng 20% 10% 22% 26% 20% 21% Infrastructure HosRng 0% Total (n=349) Dedicated Servers (n=99) Hosted Private Cloud (n=198) Public Cloud (n=52) D2. What [will be/was] your most significant project or investment in hosbng [be in the next year/recently?] [Check all that apply] Page 31
Significant Hosting Project by Vendor Type 100% 90% 80% 70% 5% 4% 7% 5% 6% 9% 12% 10% 3% 7% 7% 11% 7% 9% 5% 9% 14% 10% 10% 7% Other Value Added Reseller 60% 50% 40% 33% 40% 28% 47% 29% TelecommunicaRons Provider Independent SoTware Vendor Systems Integrator 30% 20% 10% 35% 31% 35% 22% 38% HosRng Provider Cloud Provider 0% Total (n=1736) Infrastructure HosRng (n=77) ApplicaRon HosRng (n=114) Managed Services (n=58) Security Services (n=92) D4. How many service providers [do you expect to/did your organiza<on] evaluate as part of the decision making process? Page 32
Number of Vendors Considered by Company Size 100% 90% 80% 70% 60% 50% 40% 11% 15% 39% 5% 11% 43% 8% 15% 40% 14% 19% 33% 19% 16% 38% Five or more Four Three Two 30% 20% 28% 31% 32% 29% 16% One 10% 0% 8% 10% 6% 5% 10% Total (n=851) <100 (n=145) 100-999 (n=336) 1,000-4,999 (n=187) 5,000+ (n=183) D5. Which type of vendor [is most likely to win/won] the business? (Choose one) Page 33
Significant Hosting Project: Top Mentioned ISVs MicrosoT 13% IBM 13% HP 6% HCL 6% Google 6% Amazon 4% Dell 3% n=112 0% 10% 20% D6a. Which [Independent Sogware Vendor] [is most likely to win/won] the business: (open response) Page 34
Significant Hosting Project: Top Mentioned VARs IBM 18% MicrosoT 11% Amazon 8% Dell 7% n=161 0% 10% 20% 30% D6a. Which [Value Added Reseller] [is most likely to win/won] the business: (open response) Page 35
Significant Hosting Project: Top Mentioned SIs IBM 25% MicrosoT 13% Rockwell AutomaRon 3% Oracle 3% Google 3% Cisco 3% n=115 0% 10% 20% 30% D6a. Which [System Integrator] [is most likely to win/won] the business: (open response) Page 36
Significant Hosting Project: Top Mentioned Hosting Providers IBM/SoTlayer 50% Rackspace 27% CenturyLink/Savvis 9% n=571 0% 10% 20% 30% 40% 50% 60% 70% D6a. Which [Hos<ng Provider] [is most likely to win/won] the business: (open response) Page 37
Significant Hosting Project: Top Mentioned Cloud Providers MicrosoT 32% IBM (including SoTlayer) 23% Google 21% Amazon 17% n=613 0% 10% 20% 30% 40% 50% D6a. Which [Cloud Provider] [is most likely to win/won] the business: (open response) Page 38
ignificant Hosting Project: Top Mentioned Telecommunication Providers Verizon 15% AT&T 10% IBM 5% Vodafone 4% Telstra 4% Singapore TelecommunicaRons 4% Google 4% Deutsche Telekom 4% n=101 0% 10% 20% D6a. Which [Telecommunica<ons Provider] [is most likely to win/won] the business: (open response) Page 39
ignificant Hosting Project: Drivers for Not Using Market Leading Vendor My provider is the lowest cost opron 42% My provider offers the products & services that I want 39% My organizaron has a pre- exisrng relaronship with our provider 38% My provider offers bemer customer support than the larger providers 33% My provider partners with one of the larger providers 20% Other 1% n=107 0% 10% 20% 30% 40% 50% 60% 70% D8. What are the top two reasons your company [will most likely not use/did not use] one of the larger market share leaders? (Choose up to two) Page 40
BUYING PROCESS 2014 451 Research LLC. All rights reserved. Page 41
Stakeholder Decision Making Authority 100% 90% 80% 23% 17% 29% 42% 10% 15% 23% 45% 36% 70% 60% 50% 40% 30% 20% 10% 44% 52% 28% 44% 33% 31% 21% 36% 70% 11% 19% 38% 29% 22% 52% 55% 55% 18% 37% 23% 42% Not Involved Primary Decision Maker Influencer 0% n=1736 D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments. Page 42
Stakeholder Decision Making Authority by Region CEO CIO/CTO CFO CMO Line of Business Department Managers IT Infrastructure Managers North America (n=926) Europe (n=334) Asia (n=323) IT Architects SoTware Developers MarkeRng Managers South America (n=103) MEA (n=50) 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments. Page 43
Stakeholder Decision Making Authority by Company Size CEO CIO/CTO CFO <100 (n=317) CMO Line of Business Department Managers 100-999 (n=666) IT Infrastructure Managers IT Architects 1,000-4,999 (n=361) SoTware Developers MarkeRng Managers 5,000+ (n=392) 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments. Page 44
Stakeholder Decision Making Authority by Department CEO CIO/CTO CFO CMO IT OperaRons/ AdministraRon (n=1316) Line of Business Department Managers IT Infrastructure Managers IT Architects ApplicaRon Development (n=303) SoTware Developers MarkeRng (n=117) MarkeRng Managers 3rd Party Service Providers/SIs/VARS 0% 10% 20% 30% 40% 50% 60% 70% D9. When evalua<ng service providers for hos<ng and cloud services, describe the level of decision making authority each of the following stakeholders has at your organiza<on. Think about the most significant projects or investments. Page 45
Buying Process by Department Technical assessment 72% 73% 70% 65% Business assessment 63% 61% 65% 75% Total (n=851) Technical integraron 48% 50% 42% 37% IT OperaRons/ AdministraRon (n=651) Contract NegoRaRon 47% 47% 44% 50% ApplicaRon Development (n=148) Comparison to on- premises capabilires 43% 44% 43% 37% MarkeRng (n=52) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B1. Of the buying process stages outlined below, which [will/did] your company go through? (Pick mul<ple) Page 46
Buying Process Length by Company Size 100% 90% 8% 3% 8% 7% 9% 11% 80% 70% 15% 24% 16% 17% 18% Greater than 2 years 1 - <2 years 60% 50% 40% 35% 45% 38% 32% 39% 9 - <12 months 6 - <9 months 3 - <6 months 30% 20% 32% 30% 35% 23% 0 - <3 months 10% 0% 19% 9% 8% 7% 6% Total (n=851) <100 (n=145) 100-999 (n=336) 1,000-4,999 (n=187) 5,000+ (n=183) B2. From ini<al assessment to technical integra<on, [how long do you expect the deployment of your most important hos<ng or cloud services project for next year to take/ how long did the deployment of your most recent important hos<ng or cloud services project take? ] (Pick one) Page 47
Buying Process Length by Department Compare with on premises capabilires Business assessment Technical integraron Technical assessment Contract NegoRaRon Other Current (n=851) 14% 30% 24% 13% 18% 0% IT OperaRons/ AdministraRon (n=651) 14% 30% 23% 14% 19% 0% ApplicaRon Development (n=148) 15% 30% 25% 13% 17% 0% MarkeRng (n=52) 14% 24% 35% 14% 13% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of Time B3. Please allocate your company s buying process <me across the following stages: (Sum to 100) Page 48
CLOUD COMPUTING EXPECTATIONS 2014 451 Research LLC. All rights reserved. Page 49
Highest Expectation Moving to Cloud 7% Improve technology quality 8% 22% Help grow our business 9% Improve Availability Bemer business service 10% 18% Add capabilires we cannot build internally Scale to demand Inexpensive n=1089 13% 13% Speed Rme to market A4a. What is your organiza<on s highest expecta<on for moving to hosted services or cloud compu<ng? Page 50
Highest Expectation Moving to Cloud by Department Improve technology quality Help grow our business Improve Availability Bemer business service Add capabilires we cannot build internally Scale to demand Inexpensive Speed Rme to market 15% 17% 15% 13% 16% 12% 12% 17% 15% 11% 7% 13% 9% 8% 8% 8% 9% 4% 6% 9% 5% 23% 20% 27% IT OperaRons/ AdministraRon (n=1316) ApplicaRon Development (n=303) MarkeRng (n=117) 0% 10% 20% 30% 40% A4a. What is your organiza<on s highest expecta<on for moving to hosted services or cloud compu<ng? (select one) Page 51
IMPACT OF CLOUD COMPUTING DOWNTIME 2014 451 Research LLC. All rights reserved. Page 52
Impact of One Hour Downtime by Department 100% 90% 80% 70% 60% 50% 40% 7% 7% 5% 3% 13% 13% 12% 13% 23% 18% 23% 26% 23% 26% 24% 26% Limle to no impact Loss of revenue Some impact to operarons, but nothing detrimental 30% 20% 10% 0% 32% 30% Total (n=1736) IT OperaRons/ AdministraRon (n=1316) 41% ApplicaRon Development (n=303) 35% MarkeRng (n=117) Loss of credibility externally with our customers or partners An important or large part of our employees base would be unproducrve A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1- hour? Page 53
Impact of One Hour Downtime by Maturity 100% 90% 80% 70% 60% 50% 40% 7% 7% 13% 17% 23% 22% 26% 20% 3% 5% 7% 10% 10% 14% 22% 20% 26% 27% 32% 21% 12% 17% 25% Limle to no impact Loss of revenue Some impact to operarons, but nothing detrimental 30% 20% 10% 32% 34% 37% 34% 32% 25% 21% Loss of credibility externally with our customers or partners An important or large part of our employees base would be unproducrve 0% Total (n=1736) Discovery and EvaluaRon (n=235) Running Trials/Pilot ApplicaRon Test and Projects (n=318) Development (n=551) IniRal ImplementaRon (n=375) Broad ImplementaRon (n=250) A5. Overall, thinking about the applica<ons that are installed with your hos<ng and cloud SERVICE PROVIDERS, what would be the PRIMARY impact on your business if these applica<ons were unavailable for 1- hour? Page 54
APPLICATIONS IN CLOUD COMPUTING ENVIRONMENT 2014 451 Research LLC. All rights reserved. Page 55
Common Cloud Application Deployment by Department 47% Modernizing exisrng applicarons by moving to hosted sotware or Saas 43% 41% 48% Total (n=1736) MigraRng exisrng applicarons to cloud infrastructure 36% 36% 39% IT OperaRons/ AdministraRon (n=1316) 17% 27% ApplicaRon Development (n=303) Deploying new applicarons that we didn't have before cloud 16% 19% MarkeRng (n=117) 26% A2. What is your organiza<on's most common type of applica<on deployment for cloud compu<ng? 0% 10% 20% 30% 40% 50% 60% 70% Page 56
uture Percent of Applications in Cloud by Department 100% 90% 17% 17% 14% 80% 70% 60% 50% 40% 30% 17% 17% 16% 17% 26% 26% 14% 13% 31% 35% 22% 19% 75%+ 60-74% 45-59% 30-44% 15-29% <15% 20% 10% 0% 18% 17% 24% 6% 6% 5% Total (n=1712) IT OperaRons/ AdministraRon (n=1316) ApplicaRon Development (n=303) 14% 9% 1% MarkeRng (n=93) A6. What is your organizabons goal for the proporbon of applicabons or resources that will be part of a cloud compubng environment in two years? % Page 57
Future Percent of Applications in Cloud by Maturity 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17% 15% 14% 17% 16% 26% 18% 6% Total (n=1712) 14% 17% 13% 27% 21% 11% Discovery and EvaluaRon (n=228) 14% 31% 19% 16% 18% 24% 13% 18% 16% 30% 19% 19% 18% 29% 17% 19% 19% 11% 5% 5% 5% 5% Running Trials/Pilot Projects (n=311) ApplicaRon Test and Development (n=547) IniRal ImplementaRon Broad ImplementaRon (n=370) (n=250) 75%+ 60-74% 45-59% 30-44% 15-29% <15% A6. What is your organizabons goal for the proporbon of applicabons or resources that will be part of a cloud compubng environment in two years? % Page 58
WINDOWS 2003 MIGRATION 2014 451 Research LLC. All rights reserved. Page 59
Formal Migration Plans for Windows Server 2003 by Region 100% 4% 4% 5% 3% 0% 8% 90% 80% 70% 56% 56% 59% 57% 50% 50% Don't know 60% 50% 40% No 30% 20% 40% 40% 37% 40% 50% 42% Yes 10% 0% Total (n=1736) North America (n=926) Europe (n=334) Asia (n=323) South America (n=103) MEA (n=50) A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003? Page 60
Formal Migration Plans for Windows Server 2003 by Company Size 100% 4% 5% 3% 3% 5% 90% 80% Don't know 70% 60% 50% 40% 56% 63% 58% 53% 50% No 30% Yes 20% 40% 32% 39% 44% 44% 10% 0% Total (n=1736) <100 (n=317) 100-999 (n=666) 1,000-4,999 (n=361) 5,000+ (n=392) A9: Does your organiza<on have a formal plan in place to migrate from Windows Server 2003? Page 61
Windows Server 2003 Migration Plan Move to. 10% 14% 25%...a newer version of Windows Server using on- premises hardware...a newer version of Windows Server using a hosrng provider...virtualized servers through a public cloud provider 9% 18%...a hybrid approach using on- premises hardware and a hosrng provider...a hybrid approach using on- premises hardware and public cloud 13%...a hybrid approach using a hosrng provider and public cloud n=504 11%...a hybrid approach using some combinaron of on premises hardware, a hosrng provider and public... A10. [IF YES] Which of the following best describes your organiza<on s transi<on plan for current Windows Server 2003 workloads? Page 62
Windows Server 2003 Migration Plan By Company Size Move to a newer version of Windows Server using on- premises hardware Move to a newer version of Windows Server using a hosrng provider Move to virtualized servers through a public cloud provider Move to a hybrid approach using on- premises hardware and a hosrng provider Move to a hybrid approach using on- premises hardware and public cloud Move to a hybrid approach using a hosrng provider and public cloud Move to a hybrid approach using some combinaron of on premises hardware, a hosrng provider and public... <100 (n=288) 100-999 (n=77) 1,000-4,999 (n=92) 5,000+ (n=35) 0% 10% 20% 30% 40% Move to a newer version of Windows Server using on- premises hardware Move to a newer version of Windows Server using a hosrng provider By Region North America (n=288) Europe (n=77) Move to virtualized servers through a public cloud provider Move to a hybrid approach using on- premises hardware and a hosrng provider Move to a hybrid approach using on- premises hardware and public cloud Move to a hybrid approach using a hosrng provider and public cloud Move to a hybrid approach using some combinaron of on premises hardware, a hosrng provider and public... 0% 10% 20% 30% 40% A10. [IF YES] Which of the following best describes your organiza<on s transi<on plan for current Windows Server 2003 workloads? Asia (n=92) South America (n=35) MEA (n=12) Page 63
indows Server 2003 Migration Impact on Hosted Services 6% 3% Increase Stay the same 40% 51% Decrease Don't know n=692 A12. How will migra<ng Windows Server 2003 affect your use of hosted service providers? Page 64
Windows Server 2003 Migration Plan Enlist Service Provider 6% Yes 31% No 63% Don't know n=692 A15. Will your organiza<on enlist a service provider in your transi<on from Windows Server 2003? Page 65