a custom technology adoption profile … get started a custom technology adoption profile...

FORRESTER.COM

GET STARTED

A Custom Technology Adoption Profile Commissioned By TCS | July 2017

The Proliferation of Cloud Services A Global Look At The Current Cloud Deployment Trends And Approaches

FORRESTER.COM

OVERVIEW SITUATION APPROACH OPPORTUNITY CONCLUSIONS


The Proliferation Of Cloud Services

Empowered Customer Demands Businesses To Innovate Digital disruption is impacting businesses in every industry and today’s technology-enabled customers are empowered and highly demanding. To meet the needs of these global digital customers, organizations must transform into digital businesses – they must become increasingly agile, flexible, responsive and efficient. But traditional IT systems too often make digital transformation difficult. CIOs and other senior IT decision makers progressively seek to augment and update traditional IT systems with a range of cloud services, cloud delivery models, and cloud-native technologies. Thus helping businesses to move faster, save time and money, and deliver highly differentiated customer experience (CX) in order to win, serve, and retain their most important customers – and to remain competitive.

In March 2017, TCS commissioned Forrester Consulting to conduct a study evaluating cloud adoption trends around the globe, including the perceived challenges, drivers, and benefits of cloud investments. Forrester administered a survey to 521 director-level and above IT decision-makers at enterprises in Asia Pacific, Europe, and North America.

Region › 20%: Asia Pacific

(Australia and India)› 22%: North America

(Canada and US)› 58%: Europe (Belgium, Denmark,

Germany, Netherlands, Norway,Sweden and UK)

Industries included: › 10% Telecommunication› 13% Energy & Utilities› 14% Retail› 14% Healthcare & Life Sc› 15% Travel & Logistics› 16% Financial Services› 18% Manufacturing

Director-level and above Technology decision makers with Cloud awareness › 12% VP IT› 35% Senior most IT leaders› 53% Director IT

Company size distribution (number of employees): 500 to 999 1,000 to 4,999 5,000 to 19,999

20,000 or more

20%

38% 29%

13%

FORRESTER.COM




Improving CX – Top Business Agenda Seventy-six percent of technology leaders surveyed consider that improving customer experience is their most critical business priority. The survey findings indicate that technology leaders are conscious that even the most efficient organizations run the risk of being disrupted if they’re unable to adapt and respond to changing customer and market dynamics with compelling new and improved CX.

The second top business-critical priorities are improving operational efficiency & reducing cost (59%). While seeking the best CX, companies must also increase operations efficiency and keep customer and business data secure. These priorities are followed by better risk management & compliance (56%) and improved innovation (38%). 42% of IT leaders have indicated business agility as the key aspiration.

Technology leaders cannot fail to deliver world-class operational capabilities – but these must take second place to customer experience. Without leading CX, even the most efficient business will fail to thrive. To be a true partner to the business and customers, and help enable digital innovation within their organizations, IT leaders must closely align their priorities with those of their business leaders.

1 2 3 1 2 3

FORRESTER.COM


1 2



Cloud Strategy Is Integral To The Enterprise Infrastructure Agenda Nine out of ten enterprises (91%) have “developing a comprehensive cloud strategy” on their high or critical priority list for the next year. IT decision makers recognize that having a company-wide cloud strategy is more important than consolidation, virtualization, or using any one type of cloud. Results also show that there is slightly higher preference for hosted private cloud over public cloud -- many companies prefer to “step into” cloud via a hosted private cloud model.

IT leaders also see opportunities in expanding their investment in cloud-based services to drive agility. Cloud is powering the rapid creation of new customer-facing services, software, and digitized processes that allow organizations to deliver on customers’ demands by removing the “heavy lifting” and upfront investment needed with traditional infrastructure.

Our study also shows that enterprises struggle to recognize the need to prioritize automation. Only 26% of technology leaders consider automation a critical priority. Yet automation is key to a successful cloud strategy and in order to benefit from cloud platforms – pervasive automation is required, from infrastructure management to business process automation.

3 1 2 3

FORRESTER.COM


1 2



Ongoing IT Challenges Will Drive Increased Cloud Adoption CIOs and other senior IT decision makers are clearly struggling to drive technology innovation within their companies. They told us they have a hard time keeping up with the pace of technology change, particularly in the face of overly complex, and often inflexible, internal environments and processes. To successfully enable digital transformation, CIOs must meet two critical mandates:

› Simplify traditional back-end platforms, applications, andinfrastructure to reduce complexity, streamline processes, andsave money.

› Speed up existing IT processes to enable the business to rapidlydeliver new digital capabilities.

To make things even harder, new digital technologies typically put added pressure on legacy and/or inflexible back end technologies, exposing additional complexity and making further change harder.

How are technology leaders responding? By embracing cloud for faster delivery of services to customers (instead of provisioning infrastructure in-house). They are also giving business leaders the tools and technologies they need to rapidly, yet securely, innovate.

3 1 2 3

FORRESTER.COM




Turning To Hybrid Cloud For Faster Innovation Cloud adoption (of all types) is on the rise and therefore hybrid, multi-cloud deployments are top of mind for enterprises around the world. Hybrid cloud’s flexibility allows organizations to find the right mix of deployment models to accommodate their specific workloads, security requirements, and skills.

In fact, approximately fifty-seven percent of enterprises have either implemented or are expanding their implementation of more than one cloud deployment model (public and/or private). Our study results indicate that by end of 2018, nearly all companies using cloud services will have adopted some form of hybrid cloud model. However, facilitating this multi-cloud world isn't easy and enterprises must overcome the associated challenges. Management, integration, platform learning curves, and network connectivity all become more challenging in a multi-cloud environment.

Our study shows that hosted private cloud is the most popular deployment model across global companies today. More than two-third of enterprises have adopted hosted private cloud already. This makes good sense. Hosted private cloud combines the best of both worlds: cloud-like delivery models and access to new cloud-native infrastructure and development tools, while moving workloads out of private data centers.

1 2 3 1 2 3

FORRESTER.COM


1 2



Leverage Cloud To Move Faster, Save Money, And Scale Quickly When it comes to evaluating cloud model capabilities, respondents demand solutions that are quick, scalable, and available with lower upfront cost to the business. These are core benefits of all cloud-based technology delivery models and they are the true engines driving business transformation.

Our study results indicates that in order to effectively meet business demands today, organizations must have a flexible infrastructure that can easily scale up as capacity is required to ensure app performance, but also scale down when not needed for cost savings. This is one of the key capabilities that makes cloud models so appealing today. Dynamic scaling is essential for infrastructure and operations teams to quickly react to customer demand while maintaining infrastructure performance and availability.

3 1 2 3

FORRESTER.COM


1 2



Selecting The Right Cloud Model Is Key To Unlocking Cloud Benefits The promise of cloud is to deliver lower cost of ownership along with flexibility, allowing organizations a choice in where they deliver workloads. Our study results shows that enterprises want to use right cloud platform for the right workload (44%). Any one single cloud model is unlikely to meet all business demands and therefore firm consider more than one model. To effectively operate multiple clouds, enterprises need a unified portal for both consumption and management across all their preferred cloud deployments.

Enterprises don’t only want to execute one-time moves of workloads; they also desire the ability to easily and dynamically migrate data between clouds and especially into a hosted private cloud. Additionally, when selecting a public cloud, companies must ensure that the public cloud platform not only provides flexibility and scalability, but that it delivers rock-solid security and data protection.

Some workloads might not fit into public cloud right away – hosted private cloud is a good option to move those workloads out of the corporate data center and save infrastructure costs, while not taking on all of the risk of a shared public platform.

3 1 2 3

FORRESTER.COM




Cloud Expansion To Gain Momentum The move to cloud is in full swing. Three out of four enterprises (75%) plan to build more applications in the cloud in the next two years. Sixty-four percent plan to migrate more core business applications to cloud platforms as well. Cloud is no longer just a place to build new applications – it’s quickly becoming the preferred place to host existing business-critical apps as well.

Whether they are early in the adoption cycle or seasoned cloud users, enterprises plan to use cloud platforms for new and expanded purposes.

Key digital imperatives including big data, microservices and the Internet of Things are focus areas as businesses expand their use of the cloud. Thirty-five percent or more expect to increase their use of these technologies and workloads in the cloud. This speaks volumes to the success of early deployments and the potential of cloud platforms to drive competitive advantage.

1 2 3 1 2 3

FORRESTER.COM


1 2



Security, Performance And Consistency Are Top Concerns For Cloud Expansion As technology leaders look to expand their cloud usage over the next few years, they must ensure that their cloud infrastructures are secure, reliable and consistent. Half or more of respondents cited concerns with security/privacy; followed by inconsistent performance (40%) and inconsistent environments across cloud platforms (37%).

The interesting finding here is the concern about inconsistency. As firms become more hybrid, differences between platforms and latency between them are major obstacles to overcome. Note that companies are not worried about complexity of any one cloud platform (that used to be a big problem) – they are worried about managing the differences between them. This will only become more worrisome as firms become more hybrid.

In addition to these cloud expansion concerns, firms face internal challenges with executing their vision for more robust cloud capabilities. About 35% worry that their staff are not equipped to support cloud expansion plans. They also worry about the lack of consistent monitoring tools. It’s clear that companies seek multiple platforms that are easy to manage with a common set of interfaces and tools without increasing complexity — or breaking the budget.

3 1 2 3

FORRESTER.COM




Enterprises Want Access To Innovative New Technologies As They Grow Cloud Use As the business pressure to innovate grows, successful CIOs and other senior IT decision-makers increasingly embrace cloud-based solutions to create and deliver differentiated customer experiences.

When asked what is most important to help them safely and quickly expand their use of cloud platforms, technology decision-makers report that:

1.  They see it as a new way of engaging with latest & emergingtechnologies (88%).

2.  Cloud offers greater flexibility and is easy to use & manage.This indicates that cloud facilitates a more incremental approachto change with the possibility of field testing new ideas (87%)

3.  A growing number of companies rely on cloud-based solutionsfor ease of integration with middleware platforms and existingsystems (86%). Scalability (84%) and easy set-up (84%) areother key factor.

1 2 3 1 2 3

FORRESTER.COM




ConclusionsCloud has become a strategic priority to enabling digital business and accelerating innovation. As a result, cloud adoption of all types is on the rise, led by hosted private cloud model. Cloud is elastic and rapidly scalable and thus allows enterprises to be increasingly agile and deliver differentiated customer experience (CX). An enterprise chooses to embrace a cloud model for the following key objectives:

› Improve the customer experience by being more agile and responsive. Enterprises areincreasingly turning to cloud to support their business as they attempt to keep pace with changingcustomer needs. CIOs and other senior IT decision-makers often look to cloud solutions to create anddeliver differentiated customer experiences.

› Different platforms are ideal for different workloads. When it comes to cloud platforms, one sizedoes not fit all very well. Force fitting an app can be expensive and detrimental to performance. As aresult, enterprises are increasingly moving towards hybrid cloud adoptions. Enterprises are embracinghybrid to increase flexibility, improve their ability to manage, and find the right security/cost balance.

› Need Seamless features – including consistency, security and management ease. Despitethe benefits, multi-cloud adoptions may lead to greater complexity. Everything must integrate andbe managed. But complexity, legacy systems and slow IT processes can hamper adoption. Therefore,enterprises look for secure and unified management tools to drive a consistent experience andperformance across all the cloud models. These features help enterprises to use all the innovativenew services being created in the cloud (IoT, mobile, big data etc.). In turn, it helps IT decision makersfacilitate those amazing customer experiences that will keep businesses aheadof the competition.

1 2 1 2

FORRESTER.COM




Project Director Sri Prakash Gupta Market Impact Consultant

METHODOLOGY › This Technology Adoption Profile was commissioned by TCS.› To create this profile, Forrester Consulting conducted a custom online survey of 521 senior IT decision-

makers including CIOs across eleven countries in Asia Pacific, Europe and North America (Australia,Belgium, Canada, Denmark, Germany, India, Netherlands, Norway, Sweden, United kingdom andUnited States).

› Survey respondents included are from financial services, healthcare & life sciences, manufacturing,retail, energy & utilities, telecommunication and travel, transportation and logistics industries. Surveyrespondents are from organizations with 500 or more employees.

› The custom survey was completed in May 2017.

ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester’s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting.

© 2017, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. [1-13PMG60]

1 2 1 2

a custom technology adoption profile … get started a custom technology adoption profile...

Documents