Trends in Cloud
Computing
Tim Herbert
VP, Research & Market Intelligence
therbert@comptia.org
twitter.com/timjherbert
PC centric
On-premise
Web 1.0
Social
Mobile
Analytics
Cloud
POW SMAC
Time Flies When…
Era Dates
(est.)
Computers
(est.)
Applications
(est.)
Users
(est.)
Mainframe 1950 - 1965 ~100,000 Thousands Millions
Mini-Computing 1965 - 1980 ~10M Thousands Tens of millions
PC & Client/Server 1980 - 1995 ~100M Tens of thousands Hundreds of mil.
Internet (Web 1.0) 1995 - 2010 ~1B Hundreds of thou. Billions
SMAC 2010 - ? Tens of billions Millions Billions
Source: Nicholas D. Evans, ComputerWorld using data from Cognizant, IDC, Unisys and others
Trends to Think About
Trend #1
Users begin taking cloud
computing for granted
Company IT Systems
Increasingly Cloud-based
10%
44%
29%
16%
10%
31%
38%
22%
0%
cloud-based
1%-30% 31%-60% 60%-100%
cloud-based
2012
2013
Includes all types of cloud systems: SaaS, PaaS and IaaS
Source: CompTIA
Customers Progress Through
Cloud Adoption Stages
Experiment-
ation
Non-Critical
Use
Full
Production
Optimization
Currently Using IaaS/PaaS
36%
57%
53%
Small
firms
Medium
firms
Large
firms
Currently Using Cloud Solution For:
59% Storage/back-up
53% E-mail
49% Web presence
48% Disaster recovery/business continuity
46% Business productivity
44% Collaboration
41% CRM
41% Mobile application backend
41% Analytics or business intelligence
40% Communications (webinar, videoconferencing, IM, etc.)
38% Financial management
34% HR management
Source: CompTIA
Trend #2
Cloud maturity leads
to wider benefits
Cloud Maturity Leads to Wider
Benefits
29%
30%
46%
39%
46%
56%
Ability to Cut
Costs
Simply a Better
Option
Early Adopters Mid Adopters Late Adopters
 New capabilities or features
 Allow business units to operate more freely
 Reduce capital expenditures (move to OpEx)
 Reduce operational complexity
 Free up IT headcount
 Simple/fast implementation
Other Key Benefits Reported by Users
Source: CompTIA
Business Objectives = IT
Objectives (and Vice Versa)
8 in 10 executives agree (NET) to the statement:
"If we could harness all of our data, we'd be a much stronger business”
Unstructured or
Semi-structured Data
10%Structured Data
Silos Reduce Data Utility for Many Businesses
16%
56%
28%
High Degree
of Data Silos
Little or No
Data Silos
Moderate Degree
of Data Silos
Source: CompTIA
The Future of Work?
Used Regularly in Workplace
Age of Worker
20-29
Years
30-39
Years
40-49
Years
50-59
Years
60+
Years
Microsoft Word 86% 86% 88% 88% 88%
Microsoft Excel 71% 74% 72% 65% 59%
Microsoft PowerPoint 52% 63% 57% 46% 40%
Online version of applications for word processing
or spreadsheets (e.g. Google Docs)
33% 37% 21% 16% 10%
Mobile app specific to job 27% 28% 17% 10% 12%
Source: CompTIA
Trend #3
Businesses re-think
policies and procedures
Changes Driven by Cloud
19%
31%
37%
39%
39%
45%
53%
Reduced number of IT staff
New monitoring/management tools
Restructured IT department
New policies for IT decision making
Adapted monitoring/management tools
Changed existing policies/procedures
Built new policies/procedures
Source: CompTIA
Helping Customers Connect
the Dots
 Security
 Proper storage of company data
 Use of mobile devices
 Support for cloud services
 Approved vendors
Areas Addressed by Cloud Policy Level of Enforcement
14%
67%
18%
High
level
Low
level
Medium
level
Source: CompTIA
The Changing Dynamics of the
IT Dept-LOB Relationship
When the Pros Are
Called Back In
 Cloud solution not working
as expected
 Cloud solution required
integration with other
business systems
 Security issue associated
with cloud solution
IDC: by 2016, LOB
executives will be directly
involved in 80% of new IT
investments.
Gartner: 40% of IT budgets
are shifting from the IT
department to LOBs.
CompTIA: 55% of
businesses* have allowed
cloud services to be
procured through LOBs.
“Bring Your Own Cloud”
Source: CompTIA
Trend #4
On the move: cloud to
cloud migration on the rise
Migration Patterns Among
Cloud Customers
Public Cloud
Provider #1
Public Cloud
Provider #2
Private or
Hybrid
Cloud
On-premise
System
ACME Corp
24%
25%
29%
(Apps)
27% (Infrastructure)
Source: CompTIA
Reasons for Switching Public
Cloud Providers
20%
26%
29%
38%
41%
42%
45%
Dissatisfied with customer service
Dissatisfied with terms of service
Outages with original provider
Move to more open standards
Better offerings/features
Costs too high with original provider
Security concerns with original provider
Source: CompTIA
Trend #5
Channel partners continue on the
path of business transformation
Cloud Business Models
Framework for the Channel
Build
Provide /
Provision
Enable /
Integrate
Manage /
Support
IaaS | PaaS | SaaS
Public | Private | Hybrid Clouds
Cloud Aggregation | Brokerage Services
Procure HW +
SW; add
expertise to
build cloud
Resell /
Referral
White-label
Hosting / Direct
to customer
Deployment
Consulting | Advising | IT Solutions
Integration
Break/Fix
Managed
Services
Customization /
Development
Architecture /
Design
Source: CompTIA
Cloud Business Model
Activity/Importance
48% 49% 51%
61%
32% 34% 35%
27%
Cloud Business Model Involvement
among Channel Partners
Currently
provide
Plan to
provide
Build Provide/
Provision
Manage
/
Support
Enable/In
tegrate
Value of Business Model
Activities to Channel Firms
Strategic
Opport-
unistic
Build 46% 37%
Provide/Provision 49% 38%
Enable/Integrate 53% 33%
Manage/Support 58% 32%
Source: CompTIA
Partners See Strong Demand from
Customers for Cloud Solutions
37%
41%
22%
Customer Demand for Cloud Solutions
Very High
Demand
High Demand
63% NET
High
Demand
Somewhat High
or Low Demand
Rating of Demand from
Channel Partner
Perspective
Channel partners with
a cloud build practice
or a provide/provision
practice are most
bullish on customer
demand for cloud
solutions.
 Customer desire to reduce complexity
 Customer desire to increase mobile/remote
access to company data
 Customer eyeing cost reductions or they are
price sensitive
 Ability to on-ramp and scale new
features/services faster
Situations Where Partners Recommending
Cloud over On-premise Solutions
Source: CompTIA
Key Hurdles Partners Face When
Building Out a Cloud Practice
 Developing cloud tech/sales expertise
 Optimizing cloud marketing/sales messaging
 Deciding which vendors to work with
 Cash flow/financial considerations
 Determining business model
 Balancing needs of legacy business
% of partners
reporting an
INCREASE in
channel conflict
over past 2 years
60% In response to channel
conflict, 37% of partners
report intensifying efforts to
improve their
services/solutions
capabilities
The Channel Conflict Conundrum
Source: CompTIA
In Closing: IF…THEN…ELSE
On the POW-SMAC transition continuum, where do your customers
sit? Where does your company sit? Where do you want to sit?
IF entering SMAC
space, THEN…
IF SMAC veteran,
THEN…
Thank you
Tim Herbert
VP, Research & Market Intelligence
therbert@comptia.org
twitter.com/timjherbert

CompTIA: Trends in Cloud Computing

  • 1.
    Trends in Cloud Computing TimHerbert VP, Research & Market Intelligence [email protected] twitter.com/timjherbert
  • 3.
  • 4.
    Time Flies When… EraDates (est.) Computers (est.) Applications (est.) Users (est.) Mainframe 1950 - 1965 ~100,000 Thousands Millions Mini-Computing 1965 - 1980 ~10M Thousands Tens of millions PC & Client/Server 1980 - 1995 ~100M Tens of thousands Hundreds of mil. Internet (Web 1.0) 1995 - 2010 ~1B Hundreds of thou. Billions SMAC 2010 - ? Tens of billions Millions Billions Source: Nicholas D. Evans, ComputerWorld using data from Cognizant, IDC, Unisys and others
  • 5.
  • 6.
    Trend #1 Users begintaking cloud computing for granted
  • 7.
    Company IT Systems IncreasinglyCloud-based 10% 44% 29% 16% 10% 31% 38% 22% 0% cloud-based 1%-30% 31%-60% 60%-100% cloud-based 2012 2013 Includes all types of cloud systems: SaaS, PaaS and IaaS Source: CompTIA
  • 8.
    Customers Progress Through CloudAdoption Stages Experiment- ation Non-Critical Use Full Production Optimization Currently Using IaaS/PaaS 36% 57% 53% Small firms Medium firms Large firms Currently Using Cloud Solution For: 59% Storage/back-up 53% E-mail 49% Web presence 48% Disaster recovery/business continuity 46% Business productivity 44% Collaboration 41% CRM 41% Mobile application backend 41% Analytics or business intelligence 40% Communications (webinar, videoconferencing, IM, etc.) 38% Financial management 34% HR management Source: CompTIA
  • 9.
    Trend #2 Cloud maturityleads to wider benefits
  • 10.
    Cloud Maturity Leadsto Wider Benefits 29% 30% 46% 39% 46% 56% Ability to Cut Costs Simply a Better Option Early Adopters Mid Adopters Late Adopters  New capabilities or features  Allow business units to operate more freely  Reduce capital expenditures (move to OpEx)  Reduce operational complexity  Free up IT headcount  Simple/fast implementation Other Key Benefits Reported by Users Source: CompTIA
  • 11.
    Business Objectives =IT Objectives (and Vice Versa) 8 in 10 executives agree (NET) to the statement: "If we could harness all of our data, we'd be a much stronger business” Unstructured or Semi-structured Data 10%Structured Data Silos Reduce Data Utility for Many Businesses 16% 56% 28% High Degree of Data Silos Little or No Data Silos Moderate Degree of Data Silos Source: CompTIA
  • 12.
    The Future ofWork? Used Regularly in Workplace Age of Worker 20-29 Years 30-39 Years 40-49 Years 50-59 Years 60+ Years Microsoft Word 86% 86% 88% 88% 88% Microsoft Excel 71% 74% 72% 65% 59% Microsoft PowerPoint 52% 63% 57% 46% 40% Online version of applications for word processing or spreadsheets (e.g. Google Docs) 33% 37% 21% 16% 10% Mobile app specific to job 27% 28% 17% 10% 12% Source: CompTIA
  • 13.
  • 14.
    Changes Driven byCloud 19% 31% 37% 39% 39% 45% 53% Reduced number of IT staff New monitoring/management tools Restructured IT department New policies for IT decision making Adapted monitoring/management tools Changed existing policies/procedures Built new policies/procedures Source: CompTIA
  • 15.
    Helping Customers Connect theDots  Security  Proper storage of company data  Use of mobile devices  Support for cloud services  Approved vendors Areas Addressed by Cloud Policy Level of Enforcement 14% 67% 18% High level Low level Medium level Source: CompTIA
  • 16.
    The Changing Dynamicsof the IT Dept-LOB Relationship When the Pros Are Called Back In  Cloud solution not working as expected  Cloud solution required integration with other business systems  Security issue associated with cloud solution IDC: by 2016, LOB executives will be directly involved in 80% of new IT investments. Gartner: 40% of IT budgets are shifting from the IT department to LOBs. CompTIA: 55% of businesses* have allowed cloud services to be procured through LOBs. “Bring Your Own Cloud” Source: CompTIA
  • 17.
    Trend #4 On themove: cloud to cloud migration on the rise
  • 18.
    Migration Patterns Among CloudCustomers Public Cloud Provider #1 Public Cloud Provider #2 Private or Hybrid Cloud On-premise System ACME Corp 24% 25% 29% (Apps) 27% (Infrastructure) Source: CompTIA
  • 19.
    Reasons for SwitchingPublic Cloud Providers 20% 26% 29% 38% 41% 42% 45% Dissatisfied with customer service Dissatisfied with terms of service Outages with original provider Move to more open standards Better offerings/features Costs too high with original provider Security concerns with original provider Source: CompTIA
  • 20.
    Trend #5 Channel partnerscontinue on the path of business transformation
  • 21.
    Cloud Business Models Frameworkfor the Channel Build Provide / Provision Enable / Integrate Manage / Support IaaS | PaaS | SaaS Public | Private | Hybrid Clouds Cloud Aggregation | Brokerage Services Procure HW + SW; add expertise to build cloud Resell / Referral White-label Hosting / Direct to customer Deployment Consulting | Advising | IT Solutions Integration Break/Fix Managed Services Customization / Development Architecture / Design Source: CompTIA
  • 22.
    Cloud Business Model Activity/Importance 48%49% 51% 61% 32% 34% 35% 27% Cloud Business Model Involvement among Channel Partners Currently provide Plan to provide Build Provide/ Provision Manage / Support Enable/In tegrate Value of Business Model Activities to Channel Firms Strategic Opport- unistic Build 46% 37% Provide/Provision 49% 38% Enable/Integrate 53% 33% Manage/Support 58% 32% Source: CompTIA
  • 23.
    Partners See StrongDemand from Customers for Cloud Solutions 37% 41% 22% Customer Demand for Cloud Solutions Very High Demand High Demand 63% NET High Demand Somewhat High or Low Demand Rating of Demand from Channel Partner Perspective Channel partners with a cloud build practice or a provide/provision practice are most bullish on customer demand for cloud solutions.  Customer desire to reduce complexity  Customer desire to increase mobile/remote access to company data  Customer eyeing cost reductions or they are price sensitive  Ability to on-ramp and scale new features/services faster Situations Where Partners Recommending Cloud over On-premise Solutions Source: CompTIA
  • 24.
    Key Hurdles PartnersFace When Building Out a Cloud Practice  Developing cloud tech/sales expertise  Optimizing cloud marketing/sales messaging  Deciding which vendors to work with  Cash flow/financial considerations  Determining business model  Balancing needs of legacy business % of partners reporting an INCREASE in channel conflict over past 2 years 60% In response to channel conflict, 37% of partners report intensifying efforts to improve their services/solutions capabilities The Channel Conflict Conundrum Source: CompTIA
  • 25.
    In Closing: IF…THEN…ELSE Onthe POW-SMAC transition continuum, where do your customers sit? Where does your company sit? Where do you want to sit? IF entering SMAC space, THEN… IF SMAC veteran, THEN…
  • 26.
    Thank you Tim Herbert VP,Research & Market Intelligence [email protected] twitter.com/timjherbert