the state of the cloud: 5 adoption trends you need to know
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5 Adoption Trends You Need To Know
THE STATE OF CLOUD:
NORTH BRIDGE FUTURE OF CLOUD COMPUTING SURVEY IN PARTNERSHIP WITH GIGAOM RESEARCH
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#1 Cloud ≠ Free IT: Cost becomes an issue
#2 Privacy and Security are still top inhibitors
#3 Cloud is diversifying
#4 Hybrid is the new normal
#5 The sky is still the limit: growth trends and the future
The Trends:
of respondents will move some or significant
processing to the Cloud in the next 12-24
mos.
For IT, across all functions tested
in the survey
IT is no longer fighting cloud…
information technology
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60-85%
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FOR LARGE BUSINESSES
Shifting Capex to Opex is
an important Driver
For respondents moving workloads
to the cloud today,
27%said they are motivated to do so
because they believe using a cloud
platform service will help them
lower their capital expenditures.
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CONCERNS over expense of
TRANSITIONING to the cloud have grown three-fold:
to 18% today
from 6% in 2011
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#2: PRIVACY, SECURITYSTILL TOP INHIBITORS
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#1 INHIBITORSecurity, remains the biggest concern,
despite declining slightly last year, it
rose again as an issue in 2014 and was
cited by 49% of respondents.8
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PRIVACY IS OF
GROWING IMPORTANCEAs an inhibitor, Privacy grew from 25% in 2011 to
31%
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THERESISTANCE
Over 1/3 see Regulatory /
Compliance as an
inhibitor to moving
to the cloud
compliance
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#3: CLOUD ADOPTION IS DIVERSIFYING
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Interoperability concerns
dropped by 45%, relatively,
over the past two years.
But 29% are still concerned about lock in lock-in
interoperability
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APPLICATION
DEVELOPMENT –
GROWING 50% If you’re going to deploy in
the cloud, why wouldn’t
you develop in the cloud?
DevOps => Continuous:
Innovation
Test
Deployment
Integration
Automation &
Programmability
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#4: HYBRID CLOUD IS THE “NEW NORMAL”
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hybrid cloud
HYBRID CLOUD…
WAS A “HEDGE”
CAN IT BE “BEST OF”?15
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hybrid cloud
HYBRID CLOUD
USAGE NOW…
42%use Hybrid Cloud
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hybrid cloud
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HYBRID CLOUD
… AT EXPENSE OF PRIVATE CLOUD
Taking a chunk out of Private Clouds…
which will decline by almost half from 24% to 13%
Growing to
55%in 2 years
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#5: SKY IS STILL THE LIMIT (PUN INTENDED)
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WE ARE IN THE MIDDLE OF A
SEISMIC SHIFT IN TECHNOLOGY
Transitioning Living in the cloudTransforming
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CLOUD ‘AS A SERVICE’ MARKET
HIGHLIGHTS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2012 2013 2014 2015 2016 2017 2018
Global Cloud Computing Revenue ($M)
IaaS
PaaS
Infrastructure SaaS
29% CAGR
20 Source
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CLOUD IS STILL EARLY, AND IN A PHASE OF DISCOVERY
For many customers, we are still really early, and they are uncovering new areas of opportunity
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DEAL TRENDS – U.S.
$1.9B203 deals
$9.2M/deal
2010
$3.2B323 deals
$9.9M/deal
2011
$4.2B386 deals
$10.8M/deal
2012
$4.8B417 deals
$8.4M/deal
2013
$8.3B324 deals
$25.8M/deal
2014*
*Note: (As of 12/14/2014) larger deal
size due to 24 $100M+ amounts
raised this year from companies like
Actifio, Box, Cloudera, Dropbox,
Hortonworks, Inside Sales, New Relic
and Pure Storage
2014 YTD
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THE CLOUD WINDOW IS
STILL OPEN
• Migration underway
• Re-imagined applications ahead
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vVTHANK YOU+
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