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ChangeWave Research: Corporate Cloud Computing Trends

Corporate Cloud Computing TrendsLatest Survey Shows Spending on Public Cloud Remains Strong Mike Wrobel and Paul Carton

Overview: A recent ChangeWave Business Software survey showed a rebound in overall spending along with the continued growth of public cloud computing in the enterprise.

The current report takes a close-up look at ChangeWave’s latest cloud survey results, including how companies are making use of the cloud, its impact on overall software spending and IT staffing, and where cloud is headed for the next 6 months and beyond. ChangeWave Research is a service of 451 Research.

A total of 1,579 respondents involved with software purchasing in their company participated in the January 10-25 survey.

Corporate Cloud Computing

Current Cloud Usage. Better than one-in-five respondents (22%) report their company currently uses Public Cloud Computing services – identical to our October survey but a full 5-pts higher than a year ago.

Future Cloud Usage. Importantly, there are signs of continued momentum going forward as 24% of corporate respondents expect their company will be using public cloud computing six months from now.

The following chart compares current cloud usage vs. future usage, and highlights the continued corporate adoption of public cloud computing in the months ahead.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2012 451 Research, LLC. All rights reserved.

February 15, 2012


More on Current Cloud Users. We also took a closer look at spending patterns among companies currently using the cloud – comparing the percentage that say they plan to increase their cloud spending going forward vs. decrease their cloud spending.

Over the next 6 months, does your company plan to increase its overall spending on cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently

Using CloudIncrease Overall Spending 32%Decrease Overall Spending 2%Remain the Same 60%No Plans to Use Cloud Computing in Next 6 Months

7%

Nearly a third of companies currently using the cloud (32%) report they plan to increase their cloud spending over the next 6 months vs. only 9% say they are decreasing spending or have no plans to use cloud at all – yet another sign of continued cloud growth going forward.

Corporate Software Spending vs. Cloud SpendingEarlier we mentioned that corporate software spending has jumped this quarter, as the following chart points out.


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ChangeWave Research: Corporate Cloud Computing TrendsOur January Software Spending survey showed 15% of corporate software buyers saying their company will be spending More on software over the next 90 days – up 3-pts even as the percentage spending Less fell to 17%, down 6-pts (Note the Net Difference Score = -2).

In comparison, our January survey found 11% of total corporate buyers saying they’ll be Increasing their cloud spending vs. only 1% who say they’ll be Decreasing their spending (Net Difference Score = +10) – resulting in the following contrast:

The above findings conjure the inevitable question:

What effect is cloud spending having on other IT spending areas?

To search for answers, we asked respondents in companies currently using cloud computing the following question:

What effect - if any - does your company's spending on cloud computing have on your budget for other software and IT services?

Companies Currently

Using Cloud

Cloud Spending is Decreasing Company Budget for Other Software and IT Services

26%

Cloud Spending is Increasing Company’s Budget for Other Software and IT Services

15%

Cloud Spending is Having No Effect on Company Budget for Other Software and IT Services

44%

Don’t Know/NA 15%

By an 11-pt margin (26% to 15%), companies say cloud spending is decreasing their budget for other software and IT services as opposed to increasing it.

Moreover, it appears the cloud growth rate is also having an impact on overall IT staffing.


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ChangeWave Research: Corporate Cloud Computing TrendsCloud Spending and IT Staff. Nearly one-in-six (17%) respondents report their company’s cloud spending is causing a decrease in their total number of IT staff (including facilities/ datacenter staff). Only 7% say it’s causing their IT staff to increase.

And what effect - if any - does your company's spending on cloud computing have on the total number of IT staff (including facilities/datacenter staff) at your company?

Companies Currently

Using Cloud

Cloud Spending is Decreasing the Total Number of IT Staff 17%Cloud Spending is Increasing the Total Number of IT Staff 7%Cloud Spending is Having No Effect on the Total Number of IT Staff 65%Don’t Know 11%

Simply put, these results show cloud spending is acting to lower the total amount of IT staff in the enterprise.

Additional Findings on Public Cloud Usage

The survey also looked at how businesses use cloud computing – and among current cloud users Software as a Service (SaaS; 61%) remains the most popular usage.

Usage of Infrastructure as a Service (IaaS) is currently at 30% while Platform as a Service (PaaS) is at 26%.

Future Cloud Spending. Looking ahead, among companies planning to use cloud over the next 6 months, Software as a Service registers the biggest net increase (i.e., 25% say they expect their company to Increase spending on SaaS vs. 1% Decrease).


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Both Infrastructure as a Service (19% Increase; 2% Decrease) and Platform as a Service (13% Increase; 1% Decrease) still trail SaaS, but remain remarkable growth stories in and of themselves.

Leading Cloud Vendors. Among the major vendors providing cloud computing services, Microsoft (14%) ranks as the Platform Provider best positioned to garner increased cloud spending over the next 6 months, followed by Google (12%), Salesforce.com (9%) and VMware/Cloud Foundry (7%).


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ChangeWave Research: Corporate Cloud Computing TrendsVerizon/Terremark (8%) and AT&T (6%) rank as the top Telecom Providers in terms of planned corporate cloud spending increases, while Amazon (11%) and Rackspace/Mosso (7%) rank as the top two hosting companies.

Applications Supported in the Cloud. A total of 37% of companies who use cloud computing say they support Email Systems in the cloud, while 36% support CRM applications.

Other top application areas include Web Applications (31%), Databases (27%), and ECM applications (23%).

Corporate Sentiment Towards the CloudThe ChangeWave survey asked all corporate respondents (both cloud users and non-users) how they feel about cloud computing in terms of its reliability and security.

Cloud Reliability. Respondents were asked to rate the reliability of the cloud services available today on a scale of 1-10 – where 1 is Very Unreliable and 10 is Very Reliable.The mean Reliability Rating among all corporate respondents is 6.6 in the current survey – identical to the previous survey in October. But a closer look shows there are major differences in the perception of cloud’s reliabiltiy among companies who currently use cloud vs. those who do not.


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ChangeWave Research: Corporate Cloud Computing TrendsThe mean reliability rating among companies who use cloud is 7.5 – a full 1.4-pts higher than it is for companies not using cloud computing (6.1).

Cloud Security. Similarly, we asked respondents to rate the security of the cloud computing services available today on a 1-10 scale, where 1 is Very Unsecure and 10 is Very Secure.

The mean Security Rating in the current survey fell one-tenth of a point to 5.8 compared to 5.9 in the previous October survey, but again we found major differences in the perception of cloud security between companies who use the cloud vs. those who do not.

The mean security rating for companies currently using cloud (7.0) is a full 1.8-pts better than that of non-cloud using companies (5.2).

Interestingly, both groups see cloud computing as being more reliable than it is secure.

Reasons Companies Don’t Use Cloud. We also asked respondents whose companies do not currently use cloud computing to tell us the most important reason why.

One-in-three cited Security Concerns (32%) as the most important reason for not using the cloud. Another 13% say the Technology is Too New, and 12% say it’s due to the Complexity of Integrating Cloud with Existing IT Infrastructure.


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ChangeWave Research: Corporate Cloud Computing TrendsWhen we compared large-size companies (over 1,000 employees) with small-to-medium sized companies (under 1,000 employees) some noticeable differences emerged between the two.

Large-sized companies were far more likely to cite security concerns as the most important reason why they’re not currently using cloud, while small-to-medium sized companies were more likely to cite Cost and General Resistance to Change.

Despite these concerns, the overall survey findings strongly suggest that public cloud computing is continuing to enter the mainstream and that companies not yet using cloud services are becoming more and more likely to do so.

Private Cloud Computing

Private cloud computing is another option for companies interested in the cloud. By private cloud we mean hardware dedicated to a single organization that is not shared by others. Private clouds can be run in company owned data centers or hosted by a service provider.

One-in-seven respondents (14%) say their company either operates a private cloud or uses private cloud computing services. Of this group, 62% say their private cloud is hosted in company-owned data centers, compared to 26% who say they’re hosted by a third-party.

Private Cloud Going Forward. Looking ahead, 16% of respondents expect their company to be using private cloud computing six months from now.

The following chart compares current private cloud usage vs. future usage, and points to continued adoption of private cloud computing in the months ahead.


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Bottom Line: The January ChangeWave survey results point to continued growth for cloud computing. Better than one-in-five companies currently use public cloud computing services, and the survey shows the number increasing in the coming months.

Within public cloud computing, Software as a Service (SaaS) remains the area with the fastest growth rate, but Infrastructure as a Service (IaaS), and Platform as a Service (PaaS), also remain remarkable growth stories.

On the downside, corporate cloud spending continues to squeeze other IT products and services, including the budget for software, non-cloud services, and IT staffing.


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Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.


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Cloud Reliability and Security RatingsMean Reliability Rating: 6.6 out of a possible10 Among companies using

cloud the mean reliability rating is 7.5

For non-cloud users it’s 6.1

Mean Security Rating: 5.8 out of a possible 10 Among companies using

cloud the mean reliability rating is 7.0

For non-cloud users it’s 5.2

Private Cloud Spending 14% of respondents

currently operate/use private cloud computing

Going forward, 16% expect their company to be using private cloud computing in next 6 months

Cloud Spending Affecting Other IT Products/ServicesDecreasing the Budget in Other Software/IT Areas By an 11-pt margin (26%

Decrease vs. 15% Increase) cloud spending is decreasing the budget for other software/IT areas

Cloud Spending Also Causing IT Staffing Reductions Nearly 1-in-6 respondents

(17%) say their cloud spending is decreasing the total number of IT staff vs. only 7% who say increase

Corporate Public Cloud Spending Remains Strong Cloud Computing andthe Enterprise 22% report their company

currently uses Cloud – identical to October but 5-pts higher than a year ago

11% of respondents plan to Increase their public cloud spending in next 6 months

Most Popular Uses of Cloud Software as a Service

(SaaS) – 61% Infrastructure as a Service

(IaaS) – 30% Platform as a Service

(PaaS) – 26%

Top Apps Used in Cloud Email Systems (37%) CRM Applications (36%) Web Applications (31%) Databases (27%) ECM Applications (21%)


Table of Contents

Summary of Key Findings...........................................................................................10

The Findings.................................................................................................................12

Corporate Cloud Computing.....................................................................................12

Public Cloud Spending vs. Overall Software Spending............................................14

Additional Findings on Public Cloud Usage .............................................................16

Corporate Sentiment Towards the Cloud..................................................................22

Private Cloud Computing..........................................................................................25

ChangeWave Research Methodology........................................................................27

About ChangeWave Research....................................................................................27


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The Findings Introduction: A recent ChangeWave Business Software survey showed a rebound in overall spending along with the continued growth of public cloud computing in the enterprise.

The current report takes a close-up look at ChangeWave’s latest cloud survey results, including how companies are making use of the cloud, its impact on overall software spending and IT staffing, and where cloud is headed for the next 6 months and beyond. ChangeWave Research is a service of 451 Research.

A total of 1,579 respondents involved with software purchasing in their company participated in the January 10-25 survey.

Corporate Cloud Computing

Public cloud computing (i.e., "renting" or provisioning the remotely hosted computing resources of a service provider) can be broken down into three main categories: Software as a Service (e.g., Salesforce.com), Platform as a Service (e.g., Google AppEngine), and Infrastructure as a Service (e.g., Amazon EC2).

Does your company or organization currently use any applications that run on public cloud computing services or have you used public cloud computing services over the past 12 months?

Current Survey Jan ‘12

Previous Survey Oct ‘11

Previous Survey Jul ‘11

Previous Survey Apr ‘11

Previous Survey Jan ‘11



Yes 22% 22% 19% 17% 17% 14% 11%No 71% 71% 75% 74% 74% 76% 80%Don’t Know

8% 7% 6% 8% 10% 10% 8%

Current Cloud Usage. Better than one-in-five respondents (22%) report their company currently uses Public Cloud Computing services – identical to our October survey but a full 5-pts higher than a year ago.

Future Cloud Usage. Importantly, there are signs of continued momentum going forward as 24% of corporate respondents expect their company will be using public cloud computing six months from now.


12

ChangeWave Research: Corporate Cloud Computing TrendsThe following chart compares current cloud usage vs. future usage, and highlights the continued corporate adoption of public cloud computing in the months ahead.

More on Current Cloud Users. We also took a closer look at spending patterns among companies currently using the cloud – comparing the percentage that say they plan to increase their cloud spending going forward vs. decrease their cloud spending.

Over the next 6 months, does your company plan to increase its overall spending on cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently

Using CloudIncrease Overall Spending 32%Decrease Overall Spending 2%Remain the Same 60%No Plans to Use Cloud Computing in Next 6 Months

7%

Nearly a third of companies currently using the cloud (32%) report they plan to increase their cloud spending over the next 6 months vs. only 9% who say they are decreasing spending or have no plans to use cloud at all – yet another sign of continued cloud growth going forward.


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Corporate Software Spending vs. Cloud Spending

Earlier we mentioned that corporate software spending has jumped this quarter, as the following chart points out.

Our January Software Spending survey showed 15% of corporate software buyers saying their company will be spending More on software over the next 90 days – up 3-pts even as the percentage spending Less fell to 17%, down 6-pts. (Note the Net Difference Score = -2).

In comparison, our January survey found 11% of total corporate buyers saying they’ll be Increasing their cloud spending vs. only 1% who say they’ll be Decreasing their spending (Net Difference Score = +10) – resulting in the following contrast:

The above findings conjure the inevitable question:

What effect is cloud spending having on other IT spending areas?

To search for answers, we asked respondents in companies currently using cloud computing the following question:


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ChangeWave Research: Corporate Cloud Computing TrendsWhat effect - if any - does you company's spending on cloud computing have on your budget for other IT products and services? Would you say that spending on cloud computing is having no effect on your company's budget for other IT products/ services, is it increasing your budget for other IT products/ services, or is it decreasing your budget for other IT products/services?

Companies Currently

Using Cloud

Cloud Spending is Decreasing Company Budget for Other Software and IT Services

26%

Cloud Spending is Increasing Company’s Budget for Other Software and IT Services

15%

Cloud Spending is Having No Effect on Company Budget for Other Software and IT Services

44%

Don’t Know/NA 15%

By an 11-pt margin (26% to 15%), companies say cloud spending is decreasing their budget for other software and IT services as opposed to increasing it.

Moreover, it appears the cloud growth rate is also having an impact on overall IT staffing.

And what effect - if any - does your company's spending on cloud computing have on the total number of IT staff (including facilities/datacenter staff) at your company? Would you say that spending on cloud computing is having no effect on the total number of IT staff at your company, is it increasing the total number of IT staff at your company, or is it decreasing the total number of IT staff at your company?

Companies Currently

Using Cloud

Cloud Spending is Decreasing the Total Number of IT Staff 17%Cloud Spending is Increasing the Total Number of IT Staff 7%Cloud Spending is Having No Effect on the Total Number of IT Staff 65%Don’t Know 11%

Cloud Spending and IT Staff. Nearly one-in-six (17%) respondents report their company’s cloud spending is causing a decrease in their total number of IT staff (including facilities/ datacenter staff). Only 7% say it’s causing their IT staff to increase.

Simply put, these results show cloud spending is acting to lower the total amount of IT staff in the enterprise.


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Additional Findings on Public Cloud Usage

With regard to public cloud computing, in which of the following ways does your company use cloud computing services? (Check All That Apply)






Software as a Service (SaaS) - (e.g., Salesforce.com)

61% 61% 66% 59% 62%

Platform as a Service (PaaS) - (e.g., Google AppEngine),

26% 26% 26% 25% 25%

Infrastructure as a Service (IaaS) - (e.g., Amazon EC2).

30% 25% 28% 17% 18%

Don't Know 5% 8% 5% 6% 5%Other 9% 8% 8% 8% 11%

The survey also looked at how businesses use cloud computing – and among current cloud users Software as a Service (SaaS; 61%) remains the most popular usage.

Usage of Infrastructure as a Service (IaaS) is currently at 30% while Platform as a Service (PaaS) is at 26%.


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ChangeWave Research: Corporate Cloud Computing TrendsFor each of the following uses of cloud computing, do you expect your company to increase its spending on cloud-related services, decrease its spending, or will spending on cloud-related services remain the same over the next 6 months?

Increase Spending

Decrease Spending

Remain the Same

No Spending in

Next 6Months,

BUTConsideringfor Future

NoSpendingin Next 6

Months, andNOT

Consideringfor Future

Software as a Service(SaaS) - (e.g.,Salesforce.com)

25% 1% 39% 9% 26%

Infrastructure as aService (IaaS) -(e.g., Amazon EC2)

19% 2% 25% 13% 41%

Platform as a Service(PaaS) - (e.g.,Google AppEngine)

13% 1% 31% 19% 36%

Future Cloud Spending. Looking ahead, among companies planning to use cloud over the next 6 months, Software as a Service registers the biggest net increase (i.e., 25% say they expect their company to Increase spending on SaaS vs. 1% Decrease).

Both Infrastructure as a Service (19% Increase; 2% Decrease) and Platform as a Service (13% Increase; 1% Decrease) still trail SaaS, but remain remarkable growth stories in and of themselves.


17

ChangeWave Research: Corporate Cloud Computing TrendsIn which time period do you expect cloud spending in your company to show the greatest increase, compared to the previous 90 days?

1Q 2012 (Jan-Mar 2012)

2Q 2012 (Apr-Jun 2012)

3Q 2012 (Jul-Sep 2012)

4Q 2012 (Oct-Dec 2012)

1Q 2013 (Jan-Mar 2013)

2Q 2013 (Apr-Jun 2013)

3Q 2013 or Later

0%5%

10%15%20%25%30%

15%18%

25%20%

8%

2%

12%

In which time period do you expect cloud spending in your company to show the greatest increase, compared to the previous 90 days?

Jan 2012

Increases in Cloud Spending. Among current corporate users of the cloud, a third (33%) expect their biggest increase in cloud spending to occur during 1Q or 2Q 2012.

Which of the following network services for cloud computing - if any - does your company plan on increasing its spending over the next 6 months? (Check All That Apply)



Private Tunnels (MPLS, VPN, etc.) 26% 19%Exchange Services 14% 13%WAN Optimization 12% 11%None of the Above 58% 62%Other 1% 2%

Network Services for Cloud Computing. When we asked companies who use cloud to tell us which networking services they plan on increasing spending, 26% said Private Tunnels. Another 14% said Exchange Services and 12% said WAN Optimization.


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ChangeWave Research: Corporate Cloud Computing TrendsFor which of the following public cloud computing vendors - if any - does your company plan on increasing its spending on cloud-related products and services over the next 6 months? (Check All That Apply)


PreviousSurveyOct ‘11

PreviousSurveyJul ‘11

Platform ProvidersMicrosoft 14% 17% 18%Google 12% 11% 13%Salesforce.com/Force.com 9% 8% 10%VMware/Cloud Foundry 7% 9% NAOracle 6% NA NASuccessFactors/SAP 2% NA NAHeroku 1% NA NAIntuit 1% 4% 2%RedHat/Open Shift 1% 1% NA

Telecom ProvidersVerizon/Terremark 8% 9% 8%AT&T 6% 9% 5%Bell Canada 1% 0% NACenturyLink/Savvis* 1% 1% 2%

Hosting CompaniesAmazon 11% 14% 10%Rackspace/Mosso 7% 6% 6%GoDaddy 2% 0% NAGoGrid/ServePath 0% 1% 1%

Other IT Service ProvidersIBM 6% 8% 8%EMC/Mozy 3% 1% 3%Hewlett-Packard 3% 4% 4%Dell 2% 4% 3%CSC 1% 1% NASungard 1% 0% NADon't Know 17% 17% 27%Other 5% 6% 7%

*Note: In the Jul ‘11 survey CenturyLink/Savvis was referred to as “Savvis”.

Leading Cloud Vendors. Among the major vendors providing cloud computing services, Microsoft (14%) ranks as the Platform Provider best positioned to garner increased cloud spending over the next 6 months, followed by Google (12%), Salesforce.com (9%) and VMware/Cloud Foundry (7%).


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Verizon/Terremark (8%) and AT&T (6%) rank as the top Telecom Providers in terms of planned corporate cloud spending increases, while Amazon (11%) and Rackspace/Mosso (7%) rank as the top two hosting companies.


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ChangeWave Research: Corporate Cloud Computing TrendsAnd in which of the following areas does your company currently support applications that run on public cloud computing services? (Check All That Apply)






Email Systems 37% 37% 39% 35% NACustomer Relationship Management (CRM)

36% 38% 35% 29% 37%

Web Applications 31% NA NA NA NADatabases 27% NA NA NA NADocument and Enterprise Content Management (ECM)

23% 21% 22% 17% 24%

Collaboration Tools 22% 21% 22% 22% NADisaster Recovery/Failover 19% 21% 20% 20% NABusiness Intelligence/Reporting and Analytics (BI)

18% 20% 21% 14% 14%

B2B e-Commerce (Business to Business)

15% 14% 17% 16% 17%

Human Capital Management (HCM) 13% 12% NA NA NATest and Development 13% 11% 11% 9% NAEnterprise Resource Planning (ERP) 10% 9% 11% 7% 6%Security 9% 16% NA NA NASupply Chain Management (SCM) 7% 8% 10% 6% 6%Don't Know 4% 6% 6% 6% 12%Other 5% 6% 10% 7% 13%

Applications Supported in the Cloud. A total of 37% of companies who use cloud computing say they support Email Systems in the cloud, while 36% support CRM applications.

Other top application areas include Web Applications (31%), Databases (27%), and ECM applications (23%).


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Corporate Sentiment Towards the CloudThe ChangeWave survey asked all corporate respondents (both cloud users and non-users) how they feel about cloud computing in terms of its reliability and security.

Thinking about cloud computing overall, how would you rate the reliability of the cloud computing services available today - where 1 is Very Unreliable and 10 is Very Reliable?

Mean

(SD)

Very Unreliable

12 3 4 5 6 7 8 9

Very Reliable

106.6

(2.1)2% 2% 5% 5% 14% 14% 21% 22% 11% 6%

Cloud Reliability. Respondents were asked to rate the reliability of the cloud services available today on a scale of 1-10 – where 1 is Very Unreliable and 10 is Very Reliable.

The mean Reliability Rating among all corporate respondents is 6.6 in the current survey – identical to the previous survey in October. But a closer look shows there are major differences in the perception of cloud’s reliabiltiy among companies who currently use cloud vs. those who do not.

The mean reliability rating among companies who use cloud is 7.5 – a full 1.4-pts higher than it is for companies not using cloud computing (6.1).


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ChangeWave Research: Corporate Cloud Computing TrendsOn the issue of security, how secure do you think data is when using the cloud computing services available today - where 1 is Very Unsecure and 10 is Very Secure?

Mean

(SD)

Very Unsecure

12 3 4 5 6 7 8 9

Very Secure

105.8

(2.3)5% 5% 8

%9% 16% 13% 16% 16% 7% 4%

Cloud Security. Similarly, we asked respondents to rate the security of the cloud computing services available today on a 1-10 scale, where 1 is Very Unsecure and 10 is Very Secure.

The mean Security Rating in the current survey fell one-tenth of a point to 5.8 compared to 5.9 in the previous October survey, but again we found major differences in the perception of cloud security between companies who use the cloud vs. those who do not.

The mean security rating for companies currently using cloud (7.0) is a full 1.8-pts better than that of non-cloud using companies (5.2).

Interestingly, both groups see cloud computing as being more reliable than it is secure.


23

ChangeWave Research: Corporate Cloud Computing TrendsFor those companies who DO NOT currently use cloud computing, what is the most important reason why not?



Security Concerns 32% 25%Technology is Too New 13% 17%Complexity of Integrating Cloud with Existing IT Infrastructure

12% 14%

General Resistance to Change 11% 11%Cost is Too High 8% 7%Latency Issues/Too Slow 3% 3%Too Unreliable 2% 2%Don’t Like the User Agreements 1% 2%Other 12% 12%No Answer 7% 7%

Reasons Companies Don’t Use Cloud. We also asked respondents whose companies do not currently use cloud computing to tell us the most important reason why.

One-in-three cited Security Concerns (32%) as the most important reason for not using the cloud. Another 13% say the Technology is Too New, and 12% say it’s due to the Complexity of Integrating Cloud with Existing IT Infrastructure.

When we compared large-size companies (over 1,000 employees) with small-to-medium sized companies (under 1,000 employees) some noticeable differences emerged between the two.

Large-sized companies were far more likely to cite security concerns as the most important reason why they’re not currently using cloud, while small-to-medium sized companies were more likely to cite Cost and General Resistance to Change.


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Despite these concerns, the overall survey findings strongly suggest that public cloud computing is continuing to enter the mainstream and that companies not yet using cloud services are becoming more and more likely to do so.

Private Cloud Computing

Private cloud computing is another option for companies interested in the cloud. By private cloud we mean hardware dedicated to a single organization that is not shared by others. Private clouds can be run in company owned data centers or hosted by a service provider.

Does your company or organization currently operate a private cloud or do you currently use any private cloud computing services?


Yes 14%No 75%Don't Know 12%

One-in-seven respondents (14%) say their company either operates a private cloud or uses private cloud computing services.


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ChangeWave Research: Corporate Cloud Computing TrendsOf this group, 62% say their private cloud is hosted in company-owned data centers, compared to 26% who say they’re hosted by a third-party.

Where is your company's private cloud currently hosted?


In Company-Owned Datacenters 62%By a Third-Party Provider 26%Don’t Know 12%

Private Cloud Going Forward. Looking ahead, 16% of respondents expect their company to be using private cloud computing six months from now.

The following chart compares current private cloud usage vs. future usage, and points to continued adoption of private cloud computing in the months ahead.


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ChangeWave Research MethodologyThis report presents the findings of our latest ChangeWave Research survey on corporate spending on Cloud Computing services. The survey was conducted January 10-25 and a total of 1,579 respondents involved with IT spending in their company participated.

ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network.

The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave ResearchChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends.

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com.

451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

For More Information:ChangeWave Research Telephone: 301-250-23637101 Wisconsin Ave. Fax: 240-200-3988Suite 1301 www.ChangeWaveResearch.comBethesda, MD 20814 [email protected]


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