Microsoft Cloudscape 2015 surveyed the CIOs of 100 Indian enterprises to gain insights into cloud adoption trends and challenges faced by them. This survey highlights that as most business experimenting with different approaches to the cloud, availability of cloud skills and training seems to be the top concerns for enterprises, edging out security and privacy related concerns.

1. Cloudscape
Study 2015

2. Introduction and
Methodology
Enterprises today are seeking
greater cost efficiencies and
business agility in a highly
competitive business environment.
Consequently more and more
organizations are looking to
transition workloads to the cloud.
Microsoft Cloudscape 2015
surveyed the CIOs of 100 Indian
enterprises to gain insights into
cloud adoption trends, challenges
faced by them with regard to
migration, integration, security,
compliance and key concerns.
The respondents were drawn
from a cross section of small and
midsized enterprises to large and
very large enterprises. 22 per cent
of the respondents were from
companies with an annual turnover
of Rs.50-499 crore, while an equal
number of respondents were from
companies with turnovers ranging
from Rs.500 crore to Rs.1999 crore.
26 per cent of them represented
organizations in the Rs.2000-9999
crore-turnover range. 24 per cent
of the surveyed organizations
have turnovers of more than
Rs.10,000 crore. The organizations
were drawn from 14 key industry
verticals including government,
utilities, healthcare, retail,
telecommunications, shipping and
mining among others.
Microsoft Cloudscape Study 2015 || 2

3. Survey
Highlights

4. The business environment in India is highly competitive and challenging.
A whopping 93 per cent of the organizations we surveyed confirmed it.
But the challenging circumstances seem to have increased their appetite
for growth. 87 per cent of the respondents said their organizations have
a high appetite for growth.
There is an increasing realization among enterprises that IT is a business
catalyst and a growth driver. A majority of the organizations surveyed (82
per cent) are seeing their IT budgets going up by 5 per cent to 25 per
cent or more in 2015.
Business Environment
1
Highly competitive and
challenging business
environment in India
High appetite for growth See IT budgets increase
by 5% - 25% in 2015
93% 87% 82%
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5. 79%Cloud users
Hybrid Cloud
Public Cloud
Private Cloud
Cloud
Adoption
Our survey revealed that cloud computing is gaining
momentum in Indian enterprises. 79 per cent of the
organizations are deploying cloud in some form or the other.
14 per cent of the organizations surveyed are heavy users
deriving business benefits by moving their various workloads
on to the cloud. 35 per cent are exploring the benefits of
cloud through multiple projects and applications. About 30
per cent of the organizations have begun their foray into
cloud by running pilots.
14%Experts
35%Explorers
30%Beginners
25% Public and private
cloud are equal priority
13% Undecided as Yet
25% Using a public cloud
20% Using a hosted
private cloud
17% Building a private cloud
in our data center
2
Cloud
Models
Enterprises are experimenting with various approaches to cloud. We asked
the respondents to identify the cloud models they favored the most. Hybrid
cloud emerged the most preferred model with 53 per cent of the respondents
rating it above private and public cloud. While a quarter of the organizations
have opted for private cloud, public cloud is also emerging as an option with
one fifth of the enterprises favoring it.
A quarter of the organizations indicated that a combination of public and
private cloud rated higher on their list of priorities while an equal number
of respondents assigned top priority to public cloud. 20 per cent of the
organizations are prioritizing hosted private cloud. A smaller percentage (17
per cent) is considering hosting a private cloud within their premises.
3
53%
21%
26%
79%
35%
14%
30%
25%
13%
25%
20%
17%
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6. The survey sought to find out how prepared organizations were to integrate cloud
with their IT architecture. Indian organizations are at various levels of preparation
from a cloud integration perspective. A majority of them (34 per cent) have
foundations for core capabilities such as elasticity, multi-tenancy, self-service and
chargeback. 14 per cent have a converged infrastructure stack including predictive
SLAs to accommodate scalability and responsiveness. One-tenth the organizations
surveyed have a federated hybrid cloud infrastructure spanning multiple private and
public cloud environments. 11 per cent of the respondents said their
cloud-computing infrastructure was deeply integrated into the broader scope of
their enterprise architecture. A very small number (6 per cent) said their organization
had policy engines that map predefined SLA parameters to automate resource
placements and provisioning.
A quarter of the organizations do not have any capabilities whatsoever to integrate
cloud computing with their IT architecture.
Cloud Integration
4
6% Policy engines that
map predefined SLA
parameters to automate
resource placement
and provisioning
25% No such capabilities
10% Federated (hybrid)
cloud infrastructure that
spans multiple private and
public cloud environments.
14% Converged
infrastructure stack,
including predictive
SLAs to accommodate
scalability and
responsiveness
34% Foundations for
core capabilities such
as elasticity, multi-
tenancy, self-service,and
chargeback
11% Computing
architecture is deeply
integrated into the
broader scope of our
enterprise architecture
10%
25%
34%
14%
6%
11%
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7. The capabilities of organizations to manage cloud applications vastly differ from one another.
A third of the organizations have one or several solutions working independently to manage
their cloud environments. 14 per cent of the enterprises use a standardized solution for the
management and lifecycle management of Infrastructure as a service (IaaS). 11 percent of the
respondents said they used a standardized solution to build, run and manage modern cloud
applications and their integration to legacy infrastructure.
A smaller number of organizations (7 per cent) have cohesive management solutions for cloud
applications and infrastructure with unified user and asset management. An even smaller
number (4 per cent) have comprehensive frameworks that provide federated management
across cloud and non-cloud environments. 35 percent of the respondents said their
organizations did not have or need cloud management capabilities.
Only 4 per cent of the organizations have a formalized cloud governance framework that aligns
with their overall corporate governance framework. Almost half the respondents said they
were in the process of defining business-IT engagement policies and procedures for cloud
service provisioning and consumption. One-fifth the organizations have rolled out policies and
procedures for some types of services across their organizations.
4% Comprehensive framework
that provides federated
management across cloud and
non-cloud environments
14% Standardized solution
for management and lifecycle
automation of infrastructure as a
service (IaaS)
35% We do not have or need
management capabilities
for cloud
11% Standardized solution to
build, run and manage modern
cloud applications and the
integration to
legacy applications
29% We have one or several
solutions working independently
to manage our cloud
environment
7% Cohesive Management
solutions for cloud applications
and infrastructure, with unified
user and
asset management
Cloud Management
and Governance
5
A formalized cloud governance
framework that aligns with our
overall corporate governance
framework.
Defining business-IT engagement
policies and procedures for cloud
service provisioning
and consumption
4% 48%
4%
35%
29%
14%
11%
7%
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8. Security and
Compliance
6
On ensuring security and compliance for cloud computing, more than a third
of the organizations surveyed are still identifying or discovering policies
and procedures that are relevant on a case-by-case basis. A fifth of the
organizations do not have a formal process for ensuring security or compliance.
About 14 per cent are in the process of defining their policies and procedures.
A tenth of the organizations have defined and agreed on the process. 12 per
cent have sophisticated policies and a formal review process in place.
Only 7 per cent said their process dovetailed into their overall IT and
compliance framework which they actively monitor and refine.
For almost 45 per cent of the respondents their company’s legal obligations
with respect to cloud computing are still a grey area. The rest said they were
aware of the obligations. Only 42 per cent of the organizations have mapped
compliance vis-à-vis deploying workloads on the cloud.
21% We currently do not have a
formal process
10% We have defined and
agreed on the first iteration of
our process
36% We are identifying and
discovering policies and
procedures that are relevant on
a case-by-case basis
12% We enforce a sophisticated
set of policies and have a formal
review process in place
14% We are currently defining
the policies and procedures
Company’s legal obligations with respect
to cloud computing are still a grey area
Aware of the obligations
7% Our process dovetails into
our overall IT and compliance
framework, which we actively
monitor and refine
45%
55% Have mapped compliance vis-à-vis
deploying workloads on the cloud42%
21%
36%
14%
10%
12%
7%
Microsoft Cloudscape Study 2015 || 8

9. Indian enterprises are experiencing a shortage of people with
skills needed in a cloud environment. An overwhelming 96 per
cent of the respondents felt that finding cloud related skills
was a challenge. 38 per cent said their staff learns about cloud
applications on their own and identify the need for formal and
informal training. A quarter of the organizations are defining
competencies and proficiencies needed for roles that will be
impacted by cloud computing. An eleventh of the organizations
have defined training and talent acquisition programs and
have also deployed role based training. Only 4 per cent have a
continuous learning program that includes ongoing evaluation
of skills and periodic retraining.
Cloud Skills Availability
and Training
7
11% We have defined
training and talent
acquisition programs,
and deploying role-based
training
38% Staff learns about
cloud computing on
their own - they identify
the need for formal and
informal training.
15% No plans for specific
training around cloud
computing
7% We are conducting a
skills-gap assessment and
evaluating our options
for internal/external/
outsourced staffing
25% Organizations defining
the competencies and
proficiencies needed for
roles that will be impacted
by cloud computing
4% We have a continuous
learning program
that includes ongoing
evaluation of skills and
periodic retraining
15%
38%
25%
7%
11%
4%
96% Challenging to find or hire cloud-related skills
Microsoft Cloudscape Study 2015 || 9

10. Asked to compare the risks associated with cloud service providers
with traditional outsourcers, only 24 per cent believed the risks were
greater with cloud service providers. The rest believed the risks were
either lesser with cloud service providers or about the same as with
traditional outsourcers.
The top concerns about risks associated with cloud computing
include unauthorized access to or leakage of customer information,
exit clauses of the service, security defects in the technology, network
bandwidth and connectivity challenges, service provider lock-in and
interoperability.
Cloud Services Risks
8
Don’t know
Risks are lower with cloud providers
Risks are greater with cloud providers
Risks are about the same
6%
24%
24%
46%
Microsoft Cloudscape Study 2015 || 10

11. Cloud Services Usage and
Workload Deployment Trends
Workload deployment trends
Cloud services usage
9
We asked the respondents to list the
business functions that used or will use
cloud applications. IT came right on top,
followed by sales, marketing, human
resources and operations/production.
Top workloads organizations are
deploying or planning to deploy
include mail/messaging, web apps and
websites, CRM/marketing automation,
DR, collaboration and app testing. A
very small number of organizations are
planning to deploy workloads like ERP,
SCM, Big Data among others.
Division Percentage
IT 18%
Sales 13%
Marketing 11%
Human resources 9%
Operations/ Production 8%
Not Applicable 8%
Management (CXO) 7%
Service & Support 7%
Finance 5%
Procurement 5%
Logistics 4%
R&D 2%
Legal 2%
Other 1%
*Other workloads include
Analytics / BI 6%
Conferencing 5%
Externally-facing Web Apps 5%
App Dev 5%
HR 5%
Marketing Campaign
Management
4%
Big Data 3%
Custom Business Apps 3%
Ecommerce & Online Tools 3%
ERP 3%
Field-force Enablement 3%
Security 2%
Not Applicable 2%
Batch processing 2%
SCM 2%
Internally-facing Web Apps 1%
EMail & Messaging
Webapps / Website
CRM / Marketing Automation
DR
Collaboration
App Testing
Other workloads*
10%
8%
8%
8%
6%
6%
54%
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12. Conclusion
Microsoft Cloudscape Study 2015 || 12

13. Conclusion
10
With enterprises pursuing growth despite a challenging business environment,
and with the government initiating the Digital India theme, technology and cloud
adoption take the center stage.
Our survey clearly indicates that Indian enterprises are rapidly adopting cloud in
various forms. Availability of cloud skills and training seems to be the top concerns
for enterprises, edging out security and privacy related concerns. This indicates
more on ground adoption of cloud making cloud skills highly in demand.
It is interesting to see a large number of enterprises opting for hybrid cloud. This is
usually the first step in migrating to public cloud as enterprises leverage their existing
investments in IT, extend their governance and control layer to public cloud while
moving their compliance heavy workloads on private cloud. Developed economies
have taken the same path to cloud till the time their sector regulators have not
developed clear cloud adoption policies and the governance issues are resolved.
Microsoft is well positioned to address customer requirements related to hybrid
cloud with robust private and public cloud services connected through a private
and highly reliable ExpressRoute network service.
As enterprises migrate to the cloud, they will need federation of services across
multiple cloud platforms or seamless integration of private and public clouds.
Enterprises would also need management and governance layers, which can
integrate heterogeneous cloud environments.
As our survey reveals, many organizations are either working on or are not
clear about compliance requirements on cloud. Microsoft is working closely
with regulators, industry bodies, consulting companies and customers through
programs like Cloud Accelerator Program and Cloud Decision Framework to help
enterprises develop a principle based approach to cloud adoption.
Finally, while email leads the workloads on cloud, our survey clearly illustrates that
cloud is becoming broad-based. Enterprises are using cloud to run a variety of
workloads, from internal web apps to ERP systems. This clearly demonstrates that
cloud offerings are maturing and CIOs are betting on the cloud to run their mission
and business critical systems as well.
With Microsoft’s plans to deliver cloud services locally, we believe cloud adoption
in India is all set to accelerate to the next level.
Microsoft Cloudscape Study 2015 || 13

14. About Microsoft India
Founded in 1975, Microsoft (Nasdaq“MSFT”) is the
worldwide leader in software, services, devices and
solutions that help people and businesses realize their
full potential. Microsoft set up its India operations in
1990. Today, Microsoft entities in India have over 6,500
employees, engaged in sales and marketing, research and
development and customer services and support, across
nine Indian cities - Ahmedabad, Bangalore, Chennai,
Delhi NCR, Hyderabad, Kochi, Kolkata, Mumbai and Pune.
Microsoft is committed to touching and transforming
lives and businesses in India through technology.
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