Voice of IT Cloud Barometer Report


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Insights into how small and mid-size companies use cloud services to support file sharing, email and productivity applications.

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Voice of IT Cloud Barometer Report

  1. 1. Voice of IT July 2012 TM The Spiceworks Cloud Barometer: Insights into how small and mid-size companies use cloud services to support file sharing, email and productivity applications. A Spiceworks Market Insights Report sponsored by EMCTo say the IT market is going through a transformative period would be an understatement. Yes, cloudcomputing is changing the way businesses and individuals purchase and consume technology. Yes,consumerization and BYOD (bring your own device) are mashing together personal and business dataand applications on the sameMigration to yes, Cloud via smartphones, tablets and, soon, ultralight devices. And the mobilitynotebooks is on companies using the cloud today or in the next 6 months) (Based making accessibility to applications and data universal. 70% 71%While much of the market calls cloud, consumerization and mobility “transformative trends,” they’reequally characteristic of a larger movement around “comprehensive productivity.” And what business 60% 9%couldn’t use a little boost in output? Businesses and their employees are searching for ways to remain 50% 48%connected, collaborate, and share data while simultaneously having complete access to their personal 6%digital life. Consumerization is the trend driving the convergence of business and personal digital lives, 40%but the trends of cloud computing and mobility are truly enabling consumerization. 30% 52% 20%To grasp how this is impacting small and mid-size businesses, Spiceworks conducted a study with 323 20% 42%users across North America and EMEA to find out how the cloud is effecting three business applications 6%that influence employee productivity: file sharing/storage, email and productivity suites. Spiceworks is the 10% 14%world’s largest social business network for IT pros that offers free network management software coupled 0%with an active community for discussion around all things IT. In 2011 alone IT professionals spent almost File Sharing Email Productivitythree billion minutes in Spiceworks, making it one of the most active sites in the IT industry. Suites Use Today Plan to use in next 6 monthsMigration to the cloud Use cloud today File Sharing 52% 9% 61% Plan to use cloud in next 6 months Email 42% 6% 48% Productivity Suites 14% 6% 20% 0% 20% 40% 60% 80% EMC on Spiceworks
  2. 2. Use Cloud Today 52% 53% 49% THE SPICEWORKS CLOUD BAROMETER Email Total North America EMEA Use Cloud Today 42% 43% 37% Productivity Suites Total North America EMEAOverall, the findings show that productivity is a powerful lure. Cloud apps are in demand that reduce Use Cloud Today 14% 15% 13%burdens on internal IT management while simultaneously enabling access to data and applicationswherever and whenever users want. But SMBs struggle to find the best way to implement cloud-basedsolutions while maintaining their principles around data control and security.While both North American and EMEA companies have fairly similar usage rates across all of the cloud-services measured, North America leads the way in each category.Usage of the cloud today by region 60% 50% 52% 53% 49% 40% 42% 43% 37% 30% 20% 10% 14% 15% 13% 0% File Sharing Email Productivity Suites Total North America EMEA * Based on companies using the cloud today 2
  3. 3. THE SPICEWORKS CLOUD BAROMETERCloud-based file sharing: the employee-driven appUsers want access to data whenever they want and from whatever device is in their hands.To facilitate universal data, a broad field of innovative cloud-based companies has popped up acrossthe landscape under the monikers of file-sharing, file synchronization and content managementservices. They all share the same basic characteristics: allowing users to store and back upunstructured data files (text, audio, video, images) in the cloud and making this data available ondemand via any Web-compatible device.Over half of respondents state they’re using cloud-based file sharing services in their organizationtoday and there’s a distinct possibility every business has some level of file-sharing activity sinceemployees can bring these services in through the front door. This is true for 33% of respondents whostate they know their employees are using these services on their own and without approval. Another5% are not sure what their employees are doing. IT departments are mixed on how to manage thisbehavior with 31% of companies allowing employees to use any provider they wish and another32% discouraging the behavior at some level. This reluctance to implement policy indicates thatemployees and businesses want so badly to see the productivity benefits of file sharing that theymight loosen their standard around security, access control and data management.By region, North American companies are more likely to have an approved vendor for file sharing (25%vs. 12% for EMEA), while EMEA companies are more likely to have employees using file sharing serviceson their own (37% vs. 27% in North America).Company use and management of file sharing services “ Do your employees use any cloud-based file sharing services? FROM THE COMMUNITY How does your IT department manage I tend to give more employee usage of cloud-based Yes, they are using them on their own 33% file sharing services? leeway to some users if (file sharing) will make their work-life a little easier without negatively 8% 24% 31% Darko1884 Spiceworks User “ impacting the company. community.spiceworks.com Yes, and we have an approved vendor 19% 12% 25% Nope, but planning to implement these services in the next 6 months 9% Not Sure 5% We allow employees to use any provider they wish We allow employees to use any provider, but we monitor bandwidth We allow employees to use only those providers approved by the IT department Nope 35% We discourage this behavior, but do not monitor it We strongly discourage employees using these services in the office 284 Respondents 89 Respondents 3
  4. 4. THE SPICEWORKS CLOUD BAROMETERWhile accessibility, collaboration and convenience are the top advantages gained from cloud-based filesharing, businesses often feel insecure about the data that’s being passed through these services. This iswhy the lack of control over data and security, legal liabilities and compliance issues, and reliability arethe top three concerns businesses harbor over file sharing. Only 6% have no concerns about file-sharingservices. While many file-sharing companies tout the security of their services and how protection of datais paramount, they still operate in the public domain and are not impenetrable to hackers and malware.Advantage and concerns with cloud-based file sharing What do you believe are the primary advantages of cloud-based file sharing services? (Select top 3.) 80% 70% 76% 60% 50% 51% 40% 36% 30% 32% 20% 25% 19% 14% 10% 12% 3% 2% 0% I d ny St atu Co ari Co Ba u Se O leas Lo Ea se/i Ac om th e on ad or re cu ck re lla ng nv a se nt w fe sh fe p ce an u fr er sp ag s ’t van er up s at rit bo ca en ss yw of erf , se t e y co ib h ra pa ie e ag ilit e nc st tio bi y re e e n/ liti a cif ce y es es 159 Respondents What concerns does your company have with cloud-based file sharing services? (Select top 3.) 80% 70% 73% 60% 50% 49% 48% 40% 30% 36% 20% 24% 10% 4% 0% 6% W yc La ou rity O leas Le mp Re M ead Es nex e on th e an ac ck nd is an ca pe ga li lia ar cu p do c co h u er sp la ct ag he of da sue bi l li anc se n’ ern , tin ed lit em ab e co ta s th s y g ili nt / av en or cos ty ro ec e t / l yif ts 156 Respondents 4
  5. 5. THE SPICEWORKS CLOUD BAROMETERWhen it comes to the selection of cloud-based file sharing providers, employees play an essential role.Employees have a clear preference for Dropbox with 87% of IT pros stating this is the vendor their employeesare using on their own. But vendor preference among IT pros isn’t quite as clear. While Dropbox leads theway with nearly 30% of companies stating they use or plan to use them as their approved vendor, nearly40% are using a file sharing provider in the “other” category. This fragmentation among IT pros indicates thatthere’s no one solution that’s accurately addressing the concerns of the IT department.Cloud-based file sharing vendor preference “ Employee Preference IT Pro Preference FROM THE COMMUNITY Which cloud-based file sharing What provider did you select or are you vendors are your employees using? most likely to select to support I love Dropbox and use (Select all that apply) cloud-based file sharing for your it daily for my personal company? (Select only one) files. That being said I still have some concerns with corporate data being in a Dropbox 87% Dropbox 28% Dropbox account. IT Freak Spiceworks User “ community.spiceworks.com Box 8% Box 10% Egnyte 0% Egnyte 8% Trend Micro 0% Trend Micro 6% Other 20% Other 37% Don’t know 11% 93 Respondents 71 RespondentsOverall there’s a clear desire for cloud-based file sharing services by small and mid-size businesses andtheir employees. But it’s evident, from the IT perspective, that the playing field for this category remainsopen and no one vendor has emerged as the clear leader for this service. Therefore vendors need tofind the right solution that addresses companies’ concerns around security, compliance and reliabilitywhile giving them what they want: complete accessibility, collaboration and low cost. Otherwise theemployee rather than the IT pro may be choosing the winner in this category. 5
  6. 6. THE SPICEWORKS CLOUD BAROMETEREmail: onward movement up to the cloud,but on-premise still leadsWhen it comes to email, productivity improvement is the goal. The pursuit of productivity, though,is different from that of file sharing, mostly because of the nature of email systems and how they’rebound to a brand and domain. For that reason, businesses must sponsor their email system, whetherit’s on-premise or hosted.Hosted email offers the advantages of accessibility, scalable storage, management, administration andsecurity. This explains why 42% of companies have moved to a hosted email solution and another 6%plan to migrate in the next 6 months. These companies are most attracted to relieving administrativeburdens for their IT staff and the service’s ease of deployment. Surprisingly, security, storage andbackup features are not rated as the top motivating factors for implementing a hosted solution.By region, North American companies are slightly more likely to have a hosted solution vs. EMEAcompanies with 43% vs. 37% currently using a hosted solution.Hosted email adoption and reasons for migration Is your company’s email solution currently hosted or on-premise? FROM THE COMMUNITY 52% 42% 6% SpiceList*: How do you feel about hosted email? On-Premise Currently Hosted Currently on-premise, but plan to move to a hosted solution within the next 6 months #1 I love on-site Exchange #2 I’m not convinced 262 Respondents about outsourcing #3 I’m already hosting and What are the primary reasons for moving your happy with my provider company’s email to a hosted solution? (Select top 3). #4 Considering moving, 60% but waiting for the right time 56% #5 I’m looking to switch 50% from on-site to hosted 46% 46% 40% * A SpiceList tells you what 30% 32% IT pros in the Spiceworks Community think about a particular issue. 20% 22% 21% 18% For a complete list click here. 16% 10% 7% 7% 4% 0% Do Ac an Lo Co Cu Ot s Se Re sta Ea Ba St n’ w he e s ce yti or cu st st se at pl ck du ff IT tk er om ag ss m ea st rit r, pe up of ce no co ib e ru ef y er sb de fe ilit ct st w ea at su pl ur u yt pe tu rd ur oy pp e cif o ru re e es m or em n y s se en on t ai r t l 112 Respondents 6
  7. 7. THE SPICEWORKS CLOUD BAROMETERMicrosoft dominates the on-premise email market with Exchange but in terms of cloud-based emailservice providers Google leads the way followed by Office 365. The almost 40% using “other” providersreflects the broad availability of POP3 and Exchange email services through service providers.Hosted email vendor preference What vendor are you using or looking to use to support your company’s hosted email solution? (Select only one.) Office 365 Go Daddy 34% 16% 4% 3% 3% 40% Google Rackspace Intermedia Other 116 RespondentsWhen selecting a hosted email service provider, reliability dwarfs all other considerations, includingsecurity and lowering costs. This deference speaks to the desire for improved productivity. Email outagescan cause significant business and revenue disruptions. Businesses often elect to retain their on-premiseemail because it gives them greater control over operations, information flow, security and support.Top selection criteria for hosted email vendors What are the primary considerations when choosing the vendor for your company’s hosted email solution? (Select top 3.) 80% 70% 75% 60% 50% 46% 40% 40% 38% 30% 20% 22% 10% 17% 17% 11% 9% 0% Re Se ur s Lo er u Ea Ba St Ot a Co Cu lia or s w cu tan ck he se o p (p s s e ag ts bi to es r up rit d le of r sp lit m tc tru ef y m ard d fe y/ se er os ep ea ct at 2 ee s su t 4/ ur tu lo ur ec ts pp 7 e ym re es up ify s or en ) tim t t e 113 RespondentsWhile hosted email is seen as a means for reducing IT burdens and increasing productivity, it’s still notthe preferred model. The survey revealed that 58% of businesses surveyed are currently using on-premise email, and only 6% of them will migrate to cloud-based email in the next 6 months. That makesfor a huge base of potential customers to convert, provided a service provider can clearly demonstratereliability, security and cost-containment. 7
  8. 8. THE SPICEWORKS CLOUD BAROMETERCloud-based productivity suites: the jury’s still outWhen it comes to moving productivity suites to the cloud, which include word processing, spreadsheetand calendar applications, adoption is slow among SMBs. Cloud-based productivity suites have thelowest adoption rate among the three applications reviewed in this study. Nearly two out of threebusinesses have no plans to use cloud-based productivity suites. Only 14% of those surveyed arecurrently using cloud-based productivity suites, and another 22% are thinking about adopting theseservices sometime in the future.North American companies are marginally more likely to adopt cloud-based productivity suites, with38% currently using or planning to adopt vs. 30% of EMEA companies.Adoption of cloud-based productivity suites Does your company use or plan to use any cloud-based productivity suites for word processing, spreadsheets, etc.? 14% 6% 15% 64% Yes Yes, within the next 6 months Yes, but not sure when Nope 247 RespondentsThis low adoption rate is consistentor thinking about usingresearch: According to the Cloud & Technology What vendor are you using with other industry for your cloud-basedTransformation Alliance’s 2012 State ofsuite? (Select only one) productivity the Cloud Channel1 report, demand for cloud-based productivityincreased a scant 6% compared to 22.5% for cloud backup and 23% for cloud storage. Does your company use or plan to use any cloud-based productivity suites for 48% 43% word processing, spreadsheets, etc.? 8%When it comes to cloud productivity suites, there are only a handful of choices beyond the two marketleaders, Microsoft and Google. This explains theOther (pleasebetween Google Apps and Office 365. Google Google Apps Office 365 polarity specify) 14% 6% 15% 64%has surprised many with its ability to grow market share in an application segment dominated byMicrosoft. Still, it’s not all that surprising given that Google is, by its very nature, a cloud native. Yes Yes, within the next 6 months Yes, but not sure when NopeCloud-based productivity suites vendor preference What vendor are you using or thinking about using for your cloud-based FROM THE COMMUNITY productivity suite? (Select only one) Over 60,000 IT pros are following Office 365 48% 43% 8% or Google Apps in the Spiceworks Community. Google Apps Office 365 Other (please specify) community.spiceworks.com 83 Respondents 8
  9. 9. THE SPICEWORKS CLOUD BAROMETERThe adoption rationale and the purchasing considerations for cloud productivity suites virtually mirroreach other, with ubiquitous accessibility, collaboration features, and lower cost topping the list. Costsavings is a secondary consideration, but significant since cloud-based productivity suites typicallyhave a lower acquisition cost but a longer total cost of ownership given their open-ended recurringsubscription fees.Top reasons for migration and vendor selection criteriafor cloud-based productivity suites Why have you moved or plan to move to a cloud-based productivity suite solution for your company (Select top 3.) 70% 69% 60% 50% 54% 40% 37% 30% 30% 20% 25% 24% 21% 20% 10% 7% 2% 0% Ac yh Co ari Lo r u Ea very St Se r s Em rea Ba Ea r Ot a ce we or an sie on w se cu tan lla ng se c sh pe e ou al ck he pl dy in (p ag ss re er r rit d bo ca rt e oy us up te le of e r ib ef co y m ard o up ee ing ra pa ilit us fa se fe ea ke t st tio bi sa t at e/ y ee s sp ep o d tu fro ur n/ liti re he ts ec re es m s ify ) at es m e 84 Respondents What are your company’s top considerations for selecting your cloud-based productivity suite vendor? (Select top 3.) 50% 44% 43% 40% 42% 30% 33% 31% 31% 20% 16% 15% 10% 14% 12% 2% 0% Ac yw Co Co ari Lo Se ur s Ba St W ec Ea ter Em rea Ot lea ce he or an w cu tan e’v om ck m lla ng se fac sh ility o he se th in al atu (P pl dy ag ss re er up pa rit d bo ca ew p of e r oy us ib ef co y m ard tib ra pa fe ilit us ee ing or any e st tio bi at e/ sa t yf ee s ke b sp pe ur n/ liti ro ts re he d efo ec re es ru m w re s ify se ith ) r es m 81 Respondents 9
  10. 10. THE SPICEWORKS CLOUD BAROMETERGiven that current vendor preference in this category is essentially a horse race between Google andMicrosoft, it’ll be interesting to see how adoption trends continue as Microsoft dives deeper into mobileplatforms and lightweight endpoint devices powered by Windows 8 and Windows Phone 8. It’ll also beintriguing to watch how Google continues to challenge Microsoft with the release of new versions of itsoperating system Chrome, flavors of the Android operating system, and hardware such as Chromebooksand the new Nexus 7 tablet.Wrapping UpThe core tenets of cloud computing are scalability, elasticity, flexibility, accessibility and costcontainment – all of which add up to greater productivity. Cloud-based applications such as file sharing,email and productivity suites are proving tremendously adept at producing the tangible results desiredby business, particularly by SMB and midmarket companies. However, concerns and objections to these cloud services persist. Security, reliability and true-valuedoubts will hinder adoption as on-premise applications prove exceedingly resilient despite not havingthe same levels of accessibility and ubiquity. Nevertheless, the draw to cloud apps is evident with filesharing leading the charge. As a mechanism for moving around documents with greater efficiency, filesharing extends the value and usability of on-premise applications such as email and productivity suites.Cloud-based applications such as file sharing, email and productivity applications will only becomemore appealing as their reliability and usability increases. Businesses will continue to expand their use ofthese services as they search for applications and resources that reduce overhead costs while increasingproductivity and output. This report was sponsored by EMC. EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset — information — in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at www.EMC.com. 10
  11. 11. THE SPICEWORKS CLOUD BAROMETER Respondent Profile 44% Industry Education Healthcare Finance Non-Profit Consulting 17% 10% 8% 7% 6% 5% 5% 5% 4% 3% 31%32% IT Service Provider Manufacturing Retail Engineering Software Other Sample = 259 Company Size Region 250+ employees 100-249 North employees 7% America 18% 44% 52% 48% 32% EMEA 1-19 employees 20-99 employees Sample = 282 Sample = 281 References 1 2012 State of the Cloud Channel, Cloud & Technology Transformation Alliance (The 2112 Group and Virgo Publishing), March 2012 About Spiceworks Voice of IT® The Spiceworks Voice of IT® market Insights program publishes stats, trends and opinions collected from small and medium business technology professionals that are among the more than 2M users of Spiceworks. Survey panelists opt-in to answer questions on technology trends important to them. About Spiceworks™ Spiceworks™ the world’s largest social business platform for IT, connects 2 million IT professionals with more , than 1,200 technology brands. By combining a Facebook-like community with free IT management software, Spiceworks helps businesses to discover, buy and manage $350 billion worth of technology products and services each year. To learn more, visit: Be first to hear about Spiceworks Voice of IT® insights, email: http://www.spiceworks.com/voice-of-it marketresearch@spiceworks.com The contents in this report are a result of primary research performed by Spiceworks. Unless otherwise noted, the entire contents distributed as part of this report are copyrighted by Spiceworks. As such any information made available by any means in this report may not be copied, reproduced, duplicated, published, displayed, transmitted, distributed, given, sold, traded, resold, marketed, offered for sale, modified to create derivative works or otherwise exploited for valuable consideration without prior written consent by Spiceworks. For more information visit www.spiceworks.com/voice-of-it/terms. This report contains information of fact relating to parties other than Spiceworks. Although the information have been obtained from, and are based on sources that Spiceworks believes to be reliable, Spiceworks does not guarantee the accuracy, and any such information might be incomplete or condensed. Any estimates included in this report constitute Spiceworks’ judgment as of the date of compilation, and are subject to change without notice. This report is for information purposes only. All responsibility for any interpretations or actions based on the information or commentary contained within this report lie solely with the recipient. All rights reserved. 2012. 11