• Survey Methodology • Cloud Adoption • Cloud Workloads • Central IT Role in Cloud Adoption • Cloud Benefits and Challenges • DevOps Adoption • Cloud Providers
Agenda
• 69,023 people from the RightScale database were emailed the survey • 1060 responses • 433 (42%) are 1000+ employees (Enterprises)
• 3.07% margin of error • Respondents are not just RightScale users • 17% are RightScale users
Methodology
42%
25%
33%
Respondents by Company Size 1060 respondents
Company Size
1001+ employees
101-1000 employees
1-100 employees
Source: RightScale 2016 State of the Cloud Report
25%
24%
27%
7%
6% 4% 4%
3%
Respondents by Industry 1060 respondents
Industry
Software!
Tech!Services!
Financial Services!
Other!
Media & Publishing!
Education!
Business Services!
Source: RightScale 2016 State of the Cloud Report
Hardware!
61% 19%
13% 7%
Respondents by Region 1060 respondents
Region
North America!
Source: RightScale 2016 State of the Cloud Report
Europe!
Asia!
Rest of World!
55%
11%
34%
Role of Respondents 1060 respondents
Role of Respondents
Dev!
Business!
IT/Ops!
26%
24% 13%
16%
10%
11%
Level of Respondents 1060 respondents
Architect!
Dir/Mgr!
Exec!
IT/Ops!
Dev/QA!
Other!
Source: RightScale 2016 State of the Cloud Report Source: RightScale 2016 State of the Cloud Report
44%
40%
16%
Role of Cloud Architect Emerges
Role of Cloud Architect Emerges
IT Architect!
Source: RightScale 2016 State of the Cloud Report
Cloud Architect!
Development!Architect!
Cloud Maturity
9% 11% 26% 25% 29%
Cloud Maturity of Respondents
Cloud!Watchers!
Cloud!Beginners!
Cloud!Explorers!
Cloud!Focused!
No!Plans!
Planning First project Apps running Heavy use
Source: RightScale 2016 State of the Cloud Report
82% of Enterprises Still Want Multi-Cloud
Single private!6%!
Single public!9%!
No plans!3%!
Multiple private!11%!
Multiple public!16%!
Hybrid cloud!55%!
Enterprise Cloud Strategy 1000+ employees
Multi-Cloud 82%
Source: RightScale 2016 State of the Cloud Report
95% of Respondents Are Using Cloud (Running Apps or Experimenting)
Public Cloud!Only!
Private Cloud!Only!
95% of Respondents Are Using Cloud
71%! 6%!18%!Hybrid!
Source: RightScale 2016 State of the Cloud Report
Private = 77%!Public = 89%!
88%
63% 58%
93% 89% 77%
71%
95%
Public Cloud! Private Cloud! Hybrid Cloud! Any Cloud!
Respondents Adopting Cloud 2016 vs. 2015
2015 2016
Private/Hybrid Adoption up YoY
Source: RightScale 2016 State of the Cloud Report
# of Clouds Used Public Clouds All respondents
Private Clouds All respondents
Running applications 1.5 1.7
Experimenting 1.5 1.3
Total 3.0 3.0
Average # of Clouds Used
4%
14%
13%
11%
16%
28%
11%
13%
14%
26%
26%
28%
48%
31%
17%
Virtualized Environments
Private Clouds
Public Clouds
Number of VMs Enterprises Are Running in Cloud
None 1-50 VMs 51-100 VMs 100-1000 VMs 1000+ VMs
VMs Running in Cloud for Enterprises
Source: RightScale 2016 State of the Cloud Report
12%
13%
32%
28%
16%
14%
27%
28%
13%
17%
2015
2016
Number of VMs Enterprises are Running in Public Cloud
None 1-50 VMs 51-100 VMs 100-1000 VMs 1000+ VMs
Growth in VMs Running in Public Cloud –Enterprises
Source: RightScale 2016 State of the Cloud Report
18%
14%
18%
16%
11%
13%
31%
26%
22%
31%
2015
2016
Number of VMs Enterprises are Running in Private Cloud
None 1-50 VMs 51-100 VMs 100-1000 VMs 1000+ VMs
Growth in VMs Running in Private Cloud –Enterprises
Source: RightScale 2016 State of the Cloud Report
13%
22% 17%
31%
Public Cloud! Private Cloud!
Enterprise Respondents with 1000+ VMs in Cloud
2015 2016
Enterprises with 1000+ VMs in Cloud YoY
Source: RightScale 2016 State of the Cloud Report
13%
22%
11%
12%
17%
24%
16%
39%
12%
11%
11%
10%
0% public, 100% private
20% public, 80% private
40% public, 60% private
60% public, 40% private
80% public, 20% private
100% public, 0% private
Cloud Workloads by Cloud Type
Enterprise
SMB
Enterprise More Private, SMB More Public
Source: RightScale 2016 State of the Cloud Report
BUs Give Central IT Larger Role
25%
39%
34%
40%
47%
31%
35%
44%
24%
29%
42%
42%
42%
44%
44%
47%
Pay for cloud services
Manage all cloud deployments
Select public clouds
Broker cloud services
Build private cloud
Set policies for cloud use
Select private clouds
Decide/advise on which apps go to cloud
2016 2015
Enterprise BU Views of Role of Central IT
Source: RightScale 2016 State of the Cloud Report
30%
34%
35%
37%
43%
46%
52%
58%
38%
38%
39%
43%
45%
48%
56%
63%
Approval policies for cloud
Cost policies for cloud
Availability or disaster recovery policies for cloud
Portfolio of clouds that can be used
Which applications should go to cloud
Timeline for implementing a cloud strategy
Security policies for cloud
Benefit or value the company wants to achieve
Enterprises with Key Areas of Cloud Governance Defined
2016 2015
Progress on Cloud Governance YoY
Source: RightScale 2016 State of the Cloud Report
39%
41%
38%
40%
40%
40%
48%
51%
57%
57%
37%
38%
39%
39%
39%
41%
52%
52%
58%
62%
Cost savings IT staff efficiency
Move CapEx to OpEx Geographic reach
Higher performance Business continuity
Faster time-to-market Higher availability Greater scalability
Faster access to infrastructure
Cloud Benefits 2016 vs. 2015 % of Respondents Reporting These Benefits
2016 2015
Cloud Benefits in 2016
Source: RightScale 2016 State of the Cloud Report
46% 52% 48%
57% 52%
62%
Faster speed-to-market Faster access to infrastructure
Respondents that Gain Speed Benefits from Cloud
2014 2015 2016
Cloud Increasingly Means Speed
Source: RightScale 2016 State of the Cloud Report
17%
23%
26%
24%
25%
25%
28%
27%
15%
23%
24%
26%
26%
26%
29%
32%
Performance
Governance/control
Complexity of building a private cloud
Managing costs
Managing multiple cloud services
Compliance
Security
Lack of resources/expertise
Cloud Challenges 2016 vs. 2015
2016 2015
Lack of Resources/Expertise is Now #1 Challenge, Not Security
Source: RightScale 2016 State of the Cloud Report
47%
2014
Central IT Concerns About Security Decline
41%
2015
Enterprise Central IT Rating Cloud Security as Significant Challenge
Source: RightScale 2016 State of the Cloud Report
37%
2016
Place Cloud Beginners Cloud Explorers Cloud Focused
#1 Lack of resources/expertise (38%)
Lack of resources/expertise (34%) é 3
Lack of resources/expertise (26%) é 5
#2 Security (35%) Compliance (32%) Building a private cloud (19%)
#3 Compliance (34%) Managing costs (30%) Managing costs (18%)
#4 Managing multiple cloud services (30%)
Security (28%) ê 2
Managing multiple cloud services (18%)
#5 Governance/Control (29%) Managing multiple cloud services (26%)
Security (17%) ê 4
Top 5 Challenges Change with Maturity
Top 5 Challenges Change with Cloud Maturity!
Source: RightScale 2016 State of the Cloud Report
18% 21%
24% 26%
2013! 2014! 2015! 2016!
Respondents that Say Managing Cloud Costs is a Significant Challenge
Challenge of Managing Costs is Growing
Source: RightScale 2016 State of the Cloud Report
3%
18%
17%
18%
21%
36%
29%
28%
28%
45%
4%
14%
22%
24%
25%
28%
31%
33%
34%
45%
Use Google Preemptible VMs
Use AWS Spot Instances
Move workloads to cheaper cloud/region
Select cloud or region based on cost
Track AWS Ris to make sure they are used
Purchasing AWS Ris
Look for storage volumes not in active use
Shutdown workloads during certain hours
Automate shutdown of temporary workloads
Monitor utilization and rightsize instances
How Companies are Optimizing Cloud Costs
Enterprise SMB
Few Companies are Optimizing Cloud Costs
Source: RightScale 2016 State of the Cloud Report
3%
17%
21%
22%
25%
33%
32%
33%
33%
49%
5%
15%
18%
20%
24%
36%
29%
29%
28%
42%
Use Google Preemptible VMs
Use AWS Spot Instances
Move workloads to cheaper cloud/region
Select cloud or region based on cost
Track AWS Ris to make sure they are used
Purchasing AWS Ris
Look for storage volumes not in active use
Shutdown workloads during certain hours
Automate shutdown of temporary workloads
Monitor utilization and rightsize instances
How Companies are Optimizing Cloud Costs
Cost is challenge
Cost not a challenge
People that See Cost as Challenge are Optimizing LESS
Source: RightScale 2016 State of the Cloud Report
Finding:""
2016 Initiatives:"Cloud Beginners want to do more in cloud,
while Cloud Focused need to optimize
17%
29%
30%
29%
34%
38%
43%
35%
33%
39%
40%
44%
44%
46%
47%
57%
Enabling IT to broker multiple cloud services
Expanding private clouds we use
Expanding use of containers
Implementing a cloud first strategy
Implementing CI/CD in the cloud
Expanding public clouds we use
Optimizing existing cloud use (cost savings)
Moving more workloads to cloud
Cloud Initiatives in 2016
Enterprise SMB
2016 Cloud Initiatives
Source: RightScale 2016 State of the Cloud Report
Place Cloud Beginners Cloud Explorers Cloud Focused
#1 Move more workloads to cloud (43%)
Move more workloads to cloud (63%)
Optimizing existing cloud use/cost savings (62%)
#2 Implement a cloud first strategy (40%)
Optimizing existing cloud use/cost savings (53%)
CI/CD in the cloud (52%)
#3 Expand public clouds we use (37%)
Expand public clouds we use (51%)
Expand public clouds we use (50%)
#4 Expand private clouds we use (36%)
CI/CD in the cloud (46%)
Expand use of containers (48%)
#5 Optimizing existing cloud use/cost savings (34%)
Expand use of containers (41%)
Move more workloads to cloud (44%)
2016 Initiatives Depend on Cloud Maturity
Top 2016 Initiatives Depend on Cloud Maturity!
Source: RightScale 2016 State of the Cloud Report
Strong Growth in DevOps Adoption in 2016
66%
74%
19%
16%
15%
10%
2015
2016
DevOps Adoption Up in 2016
Adopting DevOps Not adopting Don't Know
Source: RightScale 2016 State of the Cloud Report
Enterprises Adopt DevOps at Even Higher Rate
70%
81%
19%
12%
11%
7%
SMB
Enterprise
Enterprise vs. SMB DevOps Adoption
Adopting DevOps Not adopting Don't Know
Source: RightScale 2016 State of the Cloud Report
2%
3%
3%
4%
6%
7%
9%
20%
27%
32%
32%
8%
10%
12%
11%
16%
18%
12%
14%
35%
18%
19%
Rancher Rocket
Docker Tutum Mesosphere
Docker Swarm Kubernetes
Salt Ansible Docker Puppet
Chef
Respondents Using DevOps Tools
Use today Plan to use
2016 DevOps Tools – All Respondents
Source: RightScale 2016 State of the Cloud Report
3%
6%
10%
13%
28%
24%
3%
9%
20%
27%
32%
32%
Rocket
Salt
Ansible
Docker
Chef
Puppet
Respondents Using DevOps Tools
2016 2015
DevOps Tools YoY – All Respondents
Source: RightScale 2016 State of the Cloud Report
Finding:""
AWS Increases Adoption in Enterprise, But Flat Overall"
Azure Gaining Adoption, Especially in SMBs
2%
6%
6%
6%
7%
11%
17%
23%
56%
5%
16%
10%
12%
13%
14%
24%
28%
16%
3%
9%
6%
7%
9%
9%
13%
13%
8%
DigitalOcean
Google IaaS
Oracle Cloud (IaaS)
Google App Engine (PaaS)
IBM SoftLayer
VMware vCloud Air
Azure PaaS
Azure IaaS
AWS
Enterprise Public Cloud Adoption % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – Enterprises
Source: RightScale 2016 State of the Cloud Report
2%
6%
7%
9%
11%
26%
56%
5%
10%
13%
18%
14%
33%
16%
3%
6%
9%
11%
9%
17%
8%
DigitalOcean
Oracle Cloud (IaaS)
IBM SoftLayer
Google (IaaS+PaaS)
VMware vCloud Air
Azure (IaaS+PaaS)
AWS
Enterprise Public Cloud Adoption % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – EnterprisesGoogle and Azure IaaS + PaaS Combined
Source: RightScale 2016 State of the Cloud Report
7%
9%
6%
10%
15%
19%
50%
2%
6%
6%
6%
7%
11%
17%
23%
56%
DigitalOcean
Google IaaS
Oracle Cloud (IaaS)
Google App Engine (PaaS)
IBM SoftLayer
VMware vCloud Air
Azure PaaS
Azure IaaS
AWS
Enterprise Public Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications
2016 2015
Public Cloud Adoption YoY – Enterprises
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015
Not asked in 2015
3%
5%
6%
6%
7%
7%
10%
13%
58%
9%
12%
15%
8%
9%
13%
17%
22%
17%
6%
8%
10%
7%
5%
10%
11%
10%
9%
Oracle Cloud (IaaS)
VMware vCloud Air
Google IaaS
IBM SoftLayer
DigitalOcean
Google App Engine
Azure PaaS
Azure IaaS
AWS
SMB Public Cloud Adoption % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – SMB
Source: RightScale 2016 State of the Cloud Report
3%
5%
6%
7%
11%
15%
58%
9%
12%
8%
9%
19%
25%
17%
6%
8%
7%
5%
14%
14%
9%
Oracle Cloud (IaaS)
VMware vCloud Air
IBM SoftLayer
DigitalOcean
Google (IaaS+PaaS)
Azure (IaaS+PaaS)
AWS
SMB Public Cloud Adoption % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – SMBGoogle and Azure IaaS + PaaS Combined
Source: RightScale 2016 State of the Cloud Report
3%
5%
4%
8%
6%
9%
61%
3%
5%
6%
6%
7%
7%
10%
13%
58%
Oracle Cloud
VMware vCloud Air
Google IaaS
IBM SoftLayer
DigitalOcean
Google App Engine
Azure PaaS
Azure IaaS
AWS
SMB Public Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications
2016 2015
Public Cloud Adoption YoY – SMB
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015
Not asked in 2015
13%
14%
18%
21%
22%
29%
60%
11%
20%
11%
22%
15%
14%
9%
5%
10%
7%
12%
7%
9%
4%
CloudStack
Microsoft Azure Pack
Bare-Metal Cloud
OpenStack
Microsoft System Center
VMware vCloud Suite
VMware vSphere/vCenter
Enterprise Private Cloud Adoption % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Adoption – Enterprises
Source: RightScale 2016 State of the Cloud Report
14%
11%
18%
19%
26%
53%
13%
14%
18%
21%
22%
29%
60%
CloudStack
Microsoft Azure Pack
Bare-Metal Cloud
OpenStack
Microsoft System Center
VMware vCloud Suite
VMware vSphere/vCenter
Enterprise Private Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications
2016 2015
Private Cloud Adoption YoY – Enterprise
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015
6%
7%
12%
13%
13%
17%
32%
16%
13%
12%
10%
12%
17%
11%
9%
7%
6%
7%
6%
9%
5%
Microsoft Azure Pack
Microsoft System Center
VMware vCloud Suite
CloudStack
Bare-Metal Cloud
OpenStack
VMware vSphere/vCenter
SMB Private Cloud Usage % of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Usage – SMB
Source: RightScale 2016 State of the Cloud Report
4%
6%
6%
6%
10%
23%
6%
7%
12%
13%
13%
17%
32%
Microsoft Azure Pack
Microsoft System Center
VMware vCloud Suite
CloudStack
Bare-Metal Cloud
OpenStack
VMware vSphere/vCenter
SMB Private Cloud Adoption 2016 vs. 2015 % of Respondents Running Applications
2016 2015
Private Cloud Adoption YoY – SMB
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015