comptia: trends in cloud computing

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 CutCosts

Simply a BetterOption

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