about frost & sullivan frost & sullivan is a global growth consulting company that partners...
TRANSCRIPT
About Frost & Sullivan
• Frost & Sullivan is a global growth consulting company that partners with clients to support the development of innovative growth strategies.
• For more than 45 years, we have leveraged our comprehensive market expertise to serve an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community.
• We offer industry research and market strategies, provide growth consulting and corporate training, and support clients to help grow their businesses.
Agenda
1 - What is going on?
2 - Understanding the Cloud
3 - Cloud Computing: the real scenario
4 - Cloud Computing: a look ahead
5 - Competitive Landscape
6 - Final Words
1 - What is going on?
• IT Investments are direct linked with external factors.
• Those same external factors are direct linked between them.
• The same holistic overview is more and more moving towards a global perspective, getting out of the local landscape.
• Technology is key for short, medium and long term growth!
Economical stability in some countries will leverage IT investments in the region
• The macroeconomic consistency presented by some countries in the region before the
global economic downturn in 2009, was an important factor that decreased the impact in
the region.The proximity and dependency of Mexico to the US was strongly felt and the
country that presented one of the lowest GDP growths in 2009.
After a slow year, the horizon is promising to the region
And the IT department is always facing the same challenges • Constant pressure to reduce costs.
• Increase operational efficiency.
• Fastness in solutions implementations.
• Optmize the use of IT to leverage business.
• IT aligned with the core business of the company.
Technology was a fundamental piece in the cost saving objectives of companies in 2009
• It is evident that company's Chief Financial Officers (CFOs) will have greater control over IT investments. Hence, there will be a clear predilection over investments in IT areas that have direct consequence in reducing costs and increasing revenues and profit margins.
• Virtualization• IT Infrastructure Outsourcing• Software as a Service• Unified Communication• Cloud Computing
• Adecuacy on long term contracts
• Reduction on ITbudgets
• Postpone of someIT projects
• Strong impact on small and medium business.
2 – Understanding the Cloud
Cloud Computing encompasses major advantages from other past IT architectures and services
Cloud computing is a flexible and scalable shared and/or private environment in which third-party suppliers or in-house architectures use virtualization technologies to create and distribute
computing resources to customers on an as-needed basis, via the Internet browser.Cloud Computing Characteristics
Distributed computing
Pay per Use
Browser-based client
√
IT Architectures
√ √
√
√
√
√
√
Cloud Computing
Utility Computing
Grid Computing
Virtualization Tecnologies
Software as a Service
Platform as a Service
√Web Services
• More than a technological revolution,
Cloud Computing is the ultimate
evolution of a series of environments and
technologies.
• However, due to its emergent stage
and current restraints, the original
concept of cloud computing suffered
adaptations by providers to address
clients’ needs.
An impressive 32% of the companies in Mexico had an excellent understanding of the Cloud Computing concept
Market Knowledge and Awareness – Latin
America
Market Knowledge and Awareness –
Mexico
Excellent20%
Good46%
Fair27%
Low7%
N = 110. Source: Frost & Sullivan
Excellent32%
Good48%
Fair17%
Low3%
N = 40, Source: Frost & Sullivan
• IT executives in Mexico have a
higher understanding regarding the
cloud computing concept in
comparison to the rest of Latin
America.
• Some top reasons for that is the
general maturity level regarding IT
and some early adoptions leveraged
by multinational companies
established in the country.
3 – Cloud Computing: the real scenario
The economic unrest experienced in 2009 made CIOs want to know more about Cloud Computing
Already Adopted
47%Not Adopted yet53%
Current Market Adoption – Latin America
Current Market Adoption – Mexico
N = 110. Source: Frost & Sullivan
Already Adopted
50%
Not Adopted yet50%
N = 40, Source: Frost & Sullivan
• Despite of a higher knowledge over
the cloud computing concept in
Mexico, this is not reflected on the
adoption rate, as the penetration of
the technology is very similar to the
rest of Latin America.
• Nevertheless, large enterprises in
Mexico are strongly engaging into the
cloud computing concept and
adoption rate for the short term is
likely to increase 30%.
The concept of cloud computing encompasses significant promises
Current Market Adoption – Mexico
Already Adopted
50%
Not Adopted yet50%
N = 40, Source: Frost & Sullivan
• Cloud Computing adoption is still very fragmented among verticals. Nevertheless, there is a clear current adoption acceptability from three main verticals: Industry and Manufacturing, Banking and Finance, and IT and Telecom.
• The government sector still has some security and privacy issues that restraints the adoption of cloud computing toward further solutions and services.
Whilst public clouds suit small and medium companies’, enterprises demand private environments
Current Market Adoption – Mexico
Already Adopted
50%
Not Adopted yet50%
N = 40, Source: Frost & Sullivan
Private Clouds65%
Hybrid Clouds30%
Public Clouds5%
• Due to the emerging stage of the cloud computing trend in the region and also globally, the majority of enterprises that already adopted the model, preferred the private one (either outsourced or developed in-house).
Likewise in other countries, Mexican enterprises are starting the cloud adoption in the application level
Current Market Adoption – Mexico
Already Adopted
50%
Not Adopted yet50%
N = 40, Source: Frost & Sullivan
• Driven by marketing efforts and also available offers, enterprises in Mexico have started the cloud computing adoption by the application level.
• Platform utilization is still low and very punctual. Within the infrastructure level, companies are expected to increase the cloud adoption in the short term.
60%
30%
85%
Infrastructure
Platform
Application
Database solutions was by far the most participative with an 82.4 percent penetration
Top Cloud Computing Solutions and Services -
2010• Database• Email• BI (Business Intelligence)
• Application Testing
• Storage• Website Hosting• Intranet Hosting
4 – Cloud Computing: a look ahead
Security is King to the enterprise segment
Already Adopted
50%
Not Adopted yet50%
Already Adopted
65%
Not Adopted yet35%
N = 40, Source: Frost & Sullivan
Current Market Adoption – Mexico
Future Market Adoption (2011 and 2012) – Mexico • With 65.0 percent of companies
planning to adopt or expand their Cloud Computing architectures in 2011 and 2012, this IT trend is clearly going to witness significant growth in the short-term in Mexico.
• Noteworthy highlights to the intent of adopting Public Clouds, with 19.2 percent penetration, and hybrid ones where companies can reap the advantages of public Clouds for some processes, while maximizing the security and privacy of their operations by also having private Clouds in place.
Security is King to the enterprise segment
• Most of the major factors driving adoption of the Cloud Computing concept by companies in Latin America & Caribbean are the same ones that boost more mature markets such as the USA and Western Europe.
• Security is the top reason cited by enterprises for avoiding Cloud solutions. In some cases, the concerns are legitimate: clearly, anytime a resource is shared, there is greater risk of unauthorized access and contaminated data.
Cloud Computing providers still have key challenges to overcome in this market
5 – Competitive Landscape
Quality is already an integral part of the offer and decision making is beyond the IT department
• For the Mexican enterprise segment, security is king. With 77.5 percent penetration, security is the most important characteristic considered in the process of selecting a Cloud Computing provider.
• Growing importance of the chief financial officer (CFO) over IT strategic plans and short-term investments. Most IT service providers and vendors have been trying extremely hard to customize their go-to-market strategies in order to address the CFOs and creating tools to show return on investment (ROI).
Key Attributes Considered in the Selection of a Cloud Computing
Provider - Mexico
Global players are the major participants within the cloud computing market
• Partnerships among IT service
providers and application developers
are expected to keep growing within
the cloud computing landscape. This
is key to build up an integral cloud
computing solution.
• Telecom service providers are still
not perceived as cloud computing
players by end-users neither in
Mexico nor in most part of Latin
America. This scenario is likely to
change in the short term.
6 – Final Words
IT Service Players have to Shift from Providers to Partners
1 – Understand your client’s
business! The CFO wants to see the
return over the investment.
2 – Security, Price, and Market
Experience. Those are key attributes
to focus on. Quality is already
default.
3 – Focus are on: e-commerce and
storage (infrastructure), ERP, CRM,
and BI (applications), application
testing (platform).
