Your SlideShare is downloading. ×
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
IDC Worldwide IT Cloud Services Taxonomy, 2012
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

IDC Worldwide IT Cloud Services Taxonomy, 2012

2,139

Published on

IDC Worldwide IT Cloud Services Taxonomy, 2012 …

IDC Worldwide IT Cloud Services Taxonomy, 2012
http://goo.gl/Que0E

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,139
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
149
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. INDUSTRY DEVELOPMENTS AND MODELS IDCs Worldwide IT Cloud Services Taxonomy, 2012 Frank Gens Robert P. Mahowald Richard L. Villars Stephen D. Drake Tim Grieser Mary Johnston Turner Laura DuBois Matthew Eastwood Gard Little Melanie Posey Rona Shuchat Satoshi Matsumoto Chris Morris Vladimír Kroa Margaret Adam David Bradshawwww.idc.com Chris Ingle Ricardo Villate Nigel Wallis Stephen Minton Mette Ahorlu IDC OPINIONF.508.935.4015 The IT cloud services market continues to grow and evolve at an astonishing rate. New offerings come to market regularly, often defining new functional segments and new deployment options. This study updates IDCs cloud services definition and deployment models. It also updates IDCs taxonomy of the IT cloud services market.P.508.872.8200 According to IDCs definition, a cloud service must be a shared, multitenant service; packaged as an integrated solution; available through self-service; provide elastic resource provisioning; feature pricing that scales up and down with usage; leverage standard networks and clients; and be "open" for integration and enhancement through published application programming interfaces (APIs). IDC defines a variety ofGlobal Headquarters: 5 Speen Street Framingham, MA 01701 USA emerging cloud service deployment models, including public cloud services, and an expanding range of private cloud service deployment options, including dedicated private cloud (DPC) and virtual private cloud (VPC) services. In this study, we share IDCs high-level functional taxonomy of IT cloud services, which we have enhanced and extended in the following ways:  U.S. National Institute of Standards and Technologys (NISTs) three broad cloud service categories — software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) — have been added as a new top layer to IDCs IT cloud services taxonomy.  IDCs previous IT cloud services taxonomy has been "plugged in" below the NIST model, providing clients with much deeper levels of cloud services market definitions heretofore lacking in the simple NIST framework.  Network and client functionalities, delivered as cloud services, have been added to the taxonomy.  IDCs application development and deployment (AD&D) cloud services segment has been renamed (as PaaS) and revamped to reflect how cloud services are changing that important part of the market. A new PaaS category — cloud application platforms, focusing on the strategic integrated PaaS segment that includes Microsofts Azure, salesforce.coms Force.com, and other platforms — has been defined. Filing Information: March 2012, IDC #233396, Volume: 1 Cloud Services: Global Overview: Industry Developments and Models
  • 2. TABLE OF CONTENTS PIn This Study 1Methodology ............................................................................................................................................. 1S i t u a t i o n O ve r vi ew 1Whats New in IDCs IT Cloud Services Taxonomy? ................................................................................ 2What Are "Cloud Services?" ..................................................................................................................... 2 Eight Cloud Services Key Attributes .................................................................................................. 3 Comparison with NISTs Cloud Computing Definition........................................................................ 7Cloud Services Deployment Models ......................................................................................................... 8 More Detail on Public and Private Cloud Service Deployment Models.............................................. 8 Private Cloud Services Key Attributes (Points of Note) ..................................................................... 10IT Cloud Services Taxonomy: Key IT Cloud Services Categories ............................................................ 12 Our Starting Point for Cloud Services Segmentation — IDCs Functional IT Market Taxonomy ....... 12 Important Changes for IDCs 2012 IT Cloud Services Taxonomy ..................................................... 13 Definitions of the IT Cloud Services Segments.................................................................................. 16Future Outlook 17Essential Guidance 17Learn More 19Related Research ..................................................................................................................................... 19#233396 ©2012 IDC
  • 3. LIST OF TABLES P 1 IDCs New IT Cloud Services Taxonomy, 2012 ........................................................................... 14 2 IDCs Old IT Cloud Services Taxonomy, 2008–2011 ................................................................... 14©2012 IDC #233396
  • 4. LIST OF FIGURES P 1 Cloud Services Key Attributes...................................................................................................... 3 2 Cloud Services Deployment Models ............................................................................................ 10#233396 ©2012 IDC
  • 5. IN THIS STUDYThe IT cloud services market continues to grow and evolve at an astonishing rate.New offerings come to market regularly, often defining new functional segments andnew deployment options. This study updates IDCs definition of cloud services andthe various cloud services deployment models. It also updates and expands IDCstaxonomy of the IT cloud services market.MethodologyIDC developed its first cloud services definition in 2008 (blogs.idc.com/ie/?p=190),and — while we have continued to refine and evolve our definitions(blogs.idc.com/ie/?p=422) — youll notice that our core definitional and taxonomicprinciples have remained the same.For this update to our cloud services definitions and taxonomy, we held extensivediscussions among IDCs global offices, sharing the latest observations and analysisregarding cloud service providers (cloud SPs) latest offerings and business/servicemodels, relevant technology/product trends, the activities of standards groups, and ITcustomers buying and usage trends. Because market definitions and taxonomiesshould be crafted to be as durable as possible, while still being adaptable to importantmarket changes, IDCs analyst team invested many person-hours exploring what theIT and cloud markets will look like over the next 5–10 years rather than creating asimple map of the current market.SITUATION OVERVIEWThe cloud services market continues to expand and evolve. Vendors with a greatvariety of legacy products and services, management strategies, and experience areentering the cloud services market, disrupting, diversifying and, sometimes,complicating formerly well-understood market dynamics. In addition, usersunderstanding and expectations about cloud services vary widely and are influencedboth by their growing cloud experiences on the consumer Web and by workplace ITconsumption habits built over the past 40 years.To improve our market analysis and forecasting and help the market move toward acommon framework, IDC continues to evolve our IT market taxonomies on a regularbasis. There are substantial changes in the cloud services taxonomy from theprevious edition published in Worldwide and Regional Public IT Cloud Services 2011–2015 Forecast (IDC #228485, June 2011).©2012 IDC #233396 1
  • 6. Whats New in IDCsIT Cloud Services Taxonomy?IDCs most recent IT cloud services definitions and taxonomy information werepublished in Worldwide and Regional Public IT Cloud Services 2011–2015 Forecast(IDC #228485, June 2011). In this more comprehensive taxonomy document, thereare a number of enhancements to the definitions and taxonomy. Among these are: Adoption of the three NIST IT cloud services categories — SaaS, PaaS, and IaaS — as the top level of our taxonomy. The addition of a new top level in IDCs IT cloud services taxonomy is based on the widely used U.S. National Institute of Standards and Technology cloud services categories: infrastructure as a service, platform as a service, and software as a service. Weve created formal alignment of IDCs primary IT cloud services markets (e.g., applications, application development and deployment, system infrastructure software [SIS], servers, and basic storage) with these three top-level NIST categories. Expanded primary market categories. This new taxonomy expands the number of primary IT cloud services beyond the original five, adding networks (network functionality delivered as cloud services) and clients. "Other" SaaS, PaaS, and IaaS categories. To accommodate new and compound solutions, we have added three "other" categories at the IaaS, PaaS, and SaaS levels. The new categories accommodate new and/or complex cloud services offerings beyond those that are cloud versions of simple primary market product offerings. Expanded cloud deployment models. In our previous taxonomy, we defined just three (public, private, and hybrid) cloud deployment models. In this study, we expand our definitions to include several different private cloud deployment models.More detailed explanations of these changes are presented in the IT Cloud ServicesTaxonomy: Key Cloud Services Categories section of this document.What Are "Cloud Services?"Cloud services are fundamentally about an alternative solution composition, delivery,and consumption model — one that can be applied to IT industry offerings but also,much more broadly, to offerings from many other industries, including entertainment,energy, financial services, health, manufacturing, retail, and transportation as well asthe government and education sectors.The cloud model goes well beyond prior online delivery approaches — combiningefficient use of multitenant (shared) resources, radically simplified "solution"packaging, self-service provisioning, highly elastic and granular scaling, flexiblepricing, and broad leverage of Internet-standard technologies — to make offeringsdramatically easier and generally cheaper to consume.2 #233396 ©2012 IDC
  • 7. At a high — and overly simplistic — level, cloud services can be described simply andinformally as: Consumer and business products, services, and solutions delivered and consumed in real time over a network (most often, the Internet)But this simple description is not sufficient to describe and capture the unique valuethat the cloud model brings, and how it differs from traditional on-demand servicesand online services.Eight Cloud Services Key AttributesIDC defines cloud services more formally through a checklist of key attributes that anoffering must manifest to end users of the service (see Figure 1). Cloud services, asdefined by IDC, require support of all of these eight attributes.FIGURE 1Cloud Services Key AttributesSource: IDC, 2012These attributes apply to all cloud services — in all public and private cloud servicedeployment models — although the specifics of how each attribute applies may varyslightly among these deployment models.The sections that follow provide a more detailed explanation of what we mean foreach of these attributes. The final three cloud service attributes — ubiquitous(authorized) network access, standard UI technologies, and published serviceinterface/API — are related to the same thing: leveraging the power of de jure and defacto Internet standards to reduce costs, increase reach, and maximizeinteroperability and combinatorial value creation.©2012 IDC #233396 3
  • 8. Shared, Standard ServiceThis is the most fundamental attribute of a cloud service, an attribute that is sharedwith a wide variety of previous-generation online services, and the one thatdifferentiates cloud services from many traditional customer-unique outsourced orhosted offerings.Cloud services are shared, standard services built for a market, not for a specificcustomer. These services present themselves to users as "multitenant" offerings,although our definition — focused on the customer-facing aspects of cloud services— leaves room for service providers to use a variety of underlying deployment andarchitectural options."Standard" does not mean that services do not offer customers the ability to create a"personalized" version of the service, however. Cloud services typically offer a widerange of built-in configuration options that allow customers to personalize the service;the key difference with traditional systems is that cloud services personalization isbased on choosing among commonly available, "engineered in" options rather thanmaking customer-specific "hacks" to the code.The shared service model offers customers and suppliers both enormous operatingefficiencies and upgrade/enhancement velocity. In a private cloud deployment, the ITdepartment can be viewed as the cloud service "vendor" offering a standard servicewithin a single enterprise or across an extended enterprise.Solution PackagedOne of the most obvious user benefits of the cloud service model is that it ispresented as an all-in, "turnkey" solution: the customer can access the offeringwithout the need to own, manage, or understand any underlying resources required tosupport the offering. The cloud service provider bears that burden, offloading it fromthe customer, making it much simpler and faster to adopt for customers.One important implication of cloud services being technologically "easy" is that manyline-of-business (LOB) organizations without IT skills have been able to purchase andleverage cloud services directly.Self-ServiceCloud services allow customers self-service capabilities for service provisioning andadministration. In the IT cloud services world, the range of self-service capabilityvaries widely up and down the stack: in the infrastructure-as-a-service area (e.g.,cloud storage, cloud servers), "click to buy" provisioning is widely available today,whereas much of the SaaS and PaaS community lags here.While most SaaS and PaaS vendors provide a lot of self-service administration, thereis little click-to-buy provisioning simplicity and speed; some onboarding and morecomplex customization functions typically require human intervention from theproviders staff.4 #233396 ©2012 IDC
  • 9. IDC believes well see SaaS and PaaS vendors evolve in this area, providing moreautomation around self-service provisioning. Customer self-service is a key tool forproviding greater operating efficiency, deployment speed, and customer satisfaction.Elastic Resource ScalingRapid and flexible expansion (and contraction) of service usage is among the majorbenefits of cloud services for users. Because the cloud services model allows usersto quickly access and utilize the services they require, when they require them, theycan greatly speed up systems implementation/deployment.Cloud services dynamic provisioning (and de-provisioning) capability — including theability to access resources in finer-grained increments — also dramatically reducesthe need for costly overprovisioning. In addition, this characteristic substantiallyreduces user burden to come up with demand plans for resources (CPU, storage,network bandwidth, and support staff), which is a major challenge for organizationsand typically drives companies to greatly overprovision IT.Like self-service, the way elastic scaling is manifested varies by the type of cloudservice offering. As for infrastructure-related services, such as server instances(virtual machines) and storage, service expansion/reduction is possible on a verydetailed level such as the number of server instances, storage capacity, and datatransfer volume. On the other hand, contracts in the application field are based on thenumber of users (accounts), but — optionally — contracts may not necessarily bedefined for individual accounts but for the entire user group.In addition, there are cases in which a certain time is required to activate changes inservice contracts in the SaaS and PaaS worlds, although such changes can bereflected dynamically (instantly) in the IaaS world. Still — even for SaaS and PaaS —the time required to change cloud services flexibly is much shorter than the timerequired to change traditional IT systems. This is because upgrading traditional(noncloud) offerings typically requires additional resources — such as underlyinginfrastructure and/or middleware components — to also be upgraded, and fornoncloud systems, these upgrades require significant manual effort. On the otherhand, cloud services are designed and deployed to promptly realize resourcereallocation, and the ability to respond quickly to changes is quite high. Whenresources need to be reduced in on-premise services, doing so is often more difficultto execute since spending on facilities and equipment is already on the balance sheetand spending on personnel is not able to be rapidly reduced (or redeployed).Elastic, Use-Based PricingCustomers want services not only scaled to need but also priced to use, whetherthats in proportion to usage, the number of users, transactions, screen views, orsome other consumption metric. As a convenience to some customers, providers maymask this pricing granularity with long-term, fixed-price agreements, but — to meetthe cloud service definition — suppliers must design their offering so they have thecapability to do fine-grained metering and pricing for customers that need theseservices. In a private cloud setting, some IT shops may take advantage of the fine-grained metering to support more detailed, usage-based chargebacks.©2012 IDC #233396 5
  • 10. Ubiquitous (Authorized) Network AccessThis attribute means that cloud services are designed to leverage the most ubiquitouspublic network on the planet. For public clouds, this is a no-brainer: it means servicesmust be accessible to (authorized) users that have access to the Internet. The corebenefit to both the service provider and the customers is broad, simple, and low-costaccess.Obviously, this doesnt mean that a public cloud service is unsecured and unreliable;rather, it means that the service provider (and customers) leverages security andquality-of-service (QoS)/availability mechanisms that are Internet based (SSL, IPVPN, CDNs, etc.) and take advantage of the huge marketplace of security and QoSofferings that are building up around the public Internet.For most private clouds, this attribute will still be a key one, especially whereemployees are mobile, but we do see a model emerging for very secure privateclouds where access is restricted only through private IP networks. We are alreadyalso seeing use cases where public cloud SPs offer customers with high-bandwidthand/or security needs the ability to access the public cloud via private lines — oneexample of what will be many "mashups" of public and private cloud services.Standard UI TechnologiesTo clarify, were talking here about the client and underlying technologies, not thevisual layout of elements on the screen (or a device). Cloud services should notrequire any special heavyweight client environment (unlike the client/server world).Like the network access attribute mentioned previously, this attribute is aboutleveraging Internet-related de jure and de facto standards and technologies that arewidely deployed — and typically service/application independent — to give cloud SPsand their customers maximum reach and access to leading-edge innovation at a verylow cost.In the case of client technologies, we are talking about Web browsers, as well assupporting technologies such as Ajax (asynchronous JavaScript, Dynamic HTML, andXML), Flash, HTML, JavaScript, and SVG. Other service/application-independentclients — such as AIR and Silverlight — that sit outside the browser but leverage thesame de jure and de facto standard technologies could also fit the bill as they becomewidely deployed on users devices. We are including de facto standards, so thisattribute obviously has some degree of subjectivity to it. The core thought behind thisattribute is this: SPs should leave the client choice for users as "open" as possible, fortheir own, and customers, benefit.IDC believes that service users, not SPs, should have the right to choose clientenvironments. Such an option will promote development and diversification of clientenvironments and eventually generate substantial benefits to cloud SPs and users.Published Service Interface/APIThe ability to combine services with each other, and to integrate them with traditional,on-premise systems, is the foundation for being able to rapidly create — and,importantly, allow others to create — new solutions and value, and therefore a coreelement of modern cloud services.6 #233396 ©2012 IDC
  • 11. Published cloud service APIs transform online services from "islands" to high-leverage building blocks within large innovation communities and marketplaces. Itsalready obvious that cloud SPs that do not offer open/published, programmaticinterfaces — and thus fail to develop large ecosystems of solution developers aroundtheir services — will simply not be competitive.These APIs, and the ecosystems around them, will be the foundation for expandingsuppliers market power. In our view, this is the brightest red line that separates first-generation online Internet offerings and cloud services. Its no surprise that the first-generation Internet businesses that have become cloud leaders — Amazon, Google,and eBay — were among the first of the first-generation online/ecommerce providersto open up their services with APIs and recruit huge developer communities.In the IT industry, many SaaS/PaaS providers — and a fast-growing number of IaaSproviders — have published service APIs (SOAP, REST, etc.) that allow customersand other vendors to access functionality within their offering; some expose a minimalnumber of controls, while others publish many. But its hard to imagine any successfulcloud services vendor not providing a way for its offerings to be leveraged for greatervalue by customers, and by its own ecosystems. These APIs and the ecosystemsaround them will be the foundation for expanding suppliers market power. Thesuccessful cloud SPs will have APIs in some form as the market matures, while"walled gardens" will have a hard time being competitive in the cloud services space— think "AOL versus the Internet."Comparison with NISTs Cloud Computing DefinitionCurrently, market players often reference the U.S. National Institute of Standards andTechnology cloud computing taxonomy. NISTs definition of cloud computing is basedon service delivery/consumption model. There are many similarities between NISTs"essential characteristics" of cloud computing and IDCs eight attributes.The five essential characteristics of cloud computing as defined by NIST are: On-demand self-service Broad network access Resource pooling Rapid elasticity Measured serviceThe only major point of difference between NISTs and IDCs characteristics/attributesis that IDC deems "published service/API" to be an essential characteristic of cloudservices.©2012 IDC #233396 7
  • 12. Cloud Services Deployment ModelsAt the highest level, the two types of deployment models for cloud services are publicand private: Public cloud services are shared among unrelated enterprises and consumers; open to a largely unrestricted universe of potential users; and designed for a market, not a single enterprise. Private cloud services are shared within a single enterprise or an extended enterprise — with restrictions on access and level of resource dedication and defined/controlled by the enterprise (and beyond the control available in public cloud offerings); can be onsite or offsite; and can be managed by a third-party or in-house staff. In private cloud that is managed by in-house staff, "vendors (cloud SPs)" are equivalent to the IT departments/shared service departments within enterprises/groups. In this utilization model, where standardized services are jointly used within the enterprise/group, business departments, offices, and employees are the "service users."Two other often-discussed cloud service deployment model terms are hybrid cloudand community cloud: Hybrid cloud: The term "hybrid cloud services" is used to describe the consolidated coordination/management of multiple cloud services. Hybrid cloud services include "public/public," "public/private," and "private/private" combinations. IDC does not classify collaborations between cloud services and non-as-a-service IT as hybrid cloud services. Community cloud: A "community cloud" is a multi-enterprise cloud service thats been commissioned by, and is controlled by, a group of named enterprises (not a market, or class, of enterprises). A community cloud is a type of private cloud in that its being built not for "a market" but for a specific, named group of enterprises that have shared needs, control/specify the functionality of the services, and share the cost burden. Alternatively, if a cloud service has been developed by a third-party service provider for a specialized community of interest (e.g., local governments) but is not owned in part by the customers/community, and the customers dont have direct control over specifying what the service looks like (at least not more control than big customers have over, say, IBM or HP offering plans), and the SP is free to market to other prospects with similar needs, then the cloud service would be a type of public cloud or VPC (e.g., one designed for enterprises in a specific industry). In short, the categorization of a multi-enterprise cloud service depends on who owns and controls what the service looks like and who can join it. If its a named group of enterprises/customers, its a community/private cloud. If its the SP, its a vertical/specialized public or VPC offering.8 #233396 ©2012 IDC
  • 13. More Detail on Public and Private Cloud Service Deployment ModelsSince the publication of Worldwide and Regional Public IT Cloud Services 2011–2015Forecast (IDC #228485, June 2011), we have developed more granular definitions ofcloud service deployment models, identifying several deployments within the privatecloud category. These models — along with the public cloud deployment model —are shown in Figure 2.The two models on the left side of Figure 2 refer to two deployment models thatdescribe customer-owned private clouds in which the enterprises IT department canbe viewed as an internal cloud service provider: Self-run private cloud. A self-run private cloud is a cloud service that an enterprise owns and operates itself. The enterprise may have acquired the hardware and software components required to build a private cloud and assembled it (or had a systems integrator do so). Alternatively, the enterprise may have acquired a pre-integrated private cloud system/appliance. The commercial opportunities around a self-built cloud are to sell the required hardware, software, and/or professional services. These "self-run private cloud" opportunities are not counted in our IT cloud services forecasts but are counted as use-case/workload segmentations of our hardware, software, and professional services forecasts (i.e., hardware, software, and professional services sold to support the development/operation of a customers own private cloud). Managed private cloud. A managed private cloud is an enterprise-owned cloud service that is operated by a third-party services firm. This is a less common model and parallels traditional onsite managed services arrangements in which the customer uses third-party staff to operate its traditional on-premise IT environment.Focusing on the three third-party hosted offerings on the right side of Figure 2 — thatis, the models provided on a service providers site, and the models IDC counts in ourIT cloud services forecasts — weve defined: Public cloud services. Public cloud services are shared among unrelated customers and open to a largely unrestricted universe of potential users. Public cloud services are designed for a market — not a single enterprise.The other two hosted cloud service models in Figure 2 describe distinct hostedprivate cloud service deployment models emerging in the market today: Dedicated private cloud service. DPC service is provided on dedicated/isolated physical resources to a single enterprise or an extended enterprise. DPC examples include Amazon EC2 Dedicated Instances, SAVVIS Symphony Dedicated, and RackSpace Cloud: Private Edition. Virtual private cloud service. VPC service is a premium version of a public cloud service, with tiered options for greater privacy/security and customer control (e.g., VPN or private network access, firewall and IPS/IDS between guest VMs and the Internet, and root access to guest VMs). Physical resources are not dedicated to a single customer — allowing the SP and the customer to benefit©2012 IDC #233396 9
  • 14. from public cloud economics. VPC examples include Amazon EC2 Virtual Private Cloud (excluding Dedicated Instances), SAVVIS Symphony VPDC, and IBM SmartCloud Enterprise+. From a forecasting standpoint, VPCs are considered a subset of IDCs public IT cloud services forecast; look for future IDC forecasts to identify what portion of public cloud demand is for VPCs.Over the next several years, we expect a steady market swing toward VPCs, as wellas a new generation of DPCs that use sophisticated resource management to deliverdedicated resources from a highly efficient multitenant platform. This will be driven bySPs becoming even more sophisticated in offering greater privacy, management, andservice-level options on top of their highly efficient shared cloud services offeringsand customers becoming more comfortable with multitenant environments.One example of the new generation of DPCs is Amazons Dedicated Instances, which— through sophisticated scheduling software — allows customers to have aguarantee of dedicated physical resources yet is delivered on Amazons shared EC2infrastructure. Once a customer terminates a dedicated instance, the resources arereleased into the common EC2 pool; when the customer returns, its dedicatedinstance will likely be set up on an entirely different set of EC2 resources. Thisexample shows why the lower bars in Figure 2 are overlapped — for the use case ofdedicated resources delivered on what is a multitenant delivery platform.FIGURE 2Cloud Services Deployment ModelsSource: IDC, 201210 #233396 ©2012 IDC
  • 15. Private Cloud Services Key Attributes (Points of Note)We mentioned previously that the eight cloud service attributes apply to both publicand private cloud services — in other words, a cloud is a cloud. But there are somenuanced differences in how some of the attributes are applied or interpreted in privatecloud environments.The first important distinction is that with a private cloud service that is served up byan internal IT group, its important to note that the IT group is the "service provider"and the enterprise users are the "customers." In assessing whether a private cloudservice is actually a cloud, the important perspective is "what does the end usersee/experience?" not what the IT staff delivering the cloud service sees under thecovers. If end users are seeing a shared service they access through a portal andthat allows them some control over configuration options, provides visibility of usage,and is quickly able to scale up and down in both capacity and costs (if there is achargeback scheme) — then it can be considered a cloud. The IT department — asthe SP in this use case — may be provisioning the cloud with fixed resources (eventhough theyre presented as virtually "unlimited" to the end user) and may themselveshave a fixed cost for resources that support the cloud service delivery, but if the endusers experience is of a "cloud" (all eight attributes), then IDC would consider theprivate offering a cloud service.The following summarize some nuances in the interpretation of key attributes ofprivate and public cloud services: Shared, standard service: In a private cloud, the multiple "tenants" sharing the cloud service are typically not across multiple enterprises but different constituencies within a single enterprise. Solution packaged: Same as public cloud services — the services are presented and consumed as integrated offerings, without the need for users to assemble, or be concerned with, underlying resources/components. Self-service: Same as public cloud services, services allow customers self- service capabilities for service provisioning and administration. Elastic resource scaling: Similar to public cloud services, and as noted previously, even though the IT department delivering the cloud service (the internal "SP") may have fixed resources and costs under the covers of its cloud service delivery, if the end users of the private cloud service are presented the service as a scalable offering, it meets the elastic scaling criterion. Elastic, use-based pricing: Similar to public cloud services, the SP is able to present usage detail to users. But for private cloud services delivered by internal IT organizations, use-based "pricing" is not a requirement because many organizations dont use chargeback as a funding process. Ubiquitous (authorized) network access: As in the case of the "standard UI technologies" requirement, the principle here is that cloud services do not require their own dedicated networks (just as they dont require dedicated client software or hardware). For practical purposes, the vast majority of private clouds are built©2012 IDC #233396 11
  • 16. to be accessible over the public Internet for the simple reason that for many employees, that is the primary network they have access to and use — (authorized) accessibility over the Internet makes the private cloud more valuable for most enterprises. Standard UI technologies: Same as public cloud services — the main issue is that the service does not require a "heavyweight" dedicated client. Published service interface/API: In the case of private clouds, service interfaces and API do not need to be widely published inside and outside the company. However, the service interface/API can be easily leveraged by users (IT administrators) within IT departments. And we expect, over time, to see more private clouds that are "behind the firewall" implementations of public cloud services, and share those services APIs — making it easier for them to be integrated in hybrid cloud environments.IT Cloud Services Taxonomy:Key IT Cloud Services CategoriesThus far, weve focused on describing what a cloud service is and what the mostcommon deployment options are. In this section, we describe IDCs taxonomy of ITcloud services offerings — that is, just what categories of IT cloud services areavailable (and what does IDC size and forecast), and how do these categories relateto one another?Our Starting Point for Cloud Services Segmentation — IDCs FunctionalIT Market TaxonomyAs noted previously, IDCs most recent IT cloud services taxonomy information waspublished in Worldwide and Regional Public IT Cloud Services 2011–2015 Forecast(IDC #228485, June 2011). In that document, we noted that over the past severalyears, weve used IDCs IT products (hardware and software) functional taxonomy tosegment the IT cloud services market. Weve chosen this approach as a starting pointfor naming and functionally categorizing IT cloud services — rather than using thewidely cited, but not very granular, three-layer model described by the U.S. NationalInstitute of Standards and Technology — for the following reasons: The IDC IT product taxonomy robustly describes the vast majority of IT functionality customers invest in, with hundreds of markets and submarkets named, defined, and related to one another. This taxonomy is by far the most widely adopted model — by IT vendors, customers, and investors — for describing and analyzing the IT marketplace. Using this existing functional taxonomy to describe IT cloud services helps vendors and customers make the important connection between offering categories they know well and invest in and the emergence of cloud service versions of those offerings.12 #233396 ©2012 IDC
  • 17. This greatly facilitates the sizing and forecasting of the many cloud servicessubmarkets below the primary market level. Indeed, IDC analyst teams have alreadystarted the process of sizing the secondary cloud services markets below the fiveprimary services discussed in this study. Examples of these more granular secondarymarket forecasts include: Worldwide Public Platform as a Service 2011–2015 Forecast (IDC #232215, forthcoming) Worldwide Public Cloud Application Platforms 2011–2015 Forecast (IDC #232171, January 2012) Worldwide SaaS CRM Applications 2011–2015 Forecast and 2010 Vendor Shares (IDC #232230, December 2011) Worldwide IT Project and Portfolio Management SaaS 2011–2015 Forecast and 2010 Vendor Shares: SaaS Drives IT PPM Adoption (IDC #232271, December 2011) Worldwide Cloud Security 2011–2015 Forecast: A Comprehensive Look at the Cloud/Security Ecosystem (IDC #230389, December 2011) Worldwide Storage in the Cloud 2011–2015 Forecast: The Expanding Role of Public Cloud Storage Services (IDC #232115, December 2011) Worldwide Software as a Service 2011–2015 Forecast and 2010 Vendor Shares (IDC #229440, August 2011) Worldwide Cloud Testing and ASQ Software as a Service 2011–2015 Forecast and 2010 Vendor Shares: Testing Emerges from and for the Cloud to Drive Business Agility (IDC #229671, August 2011) Worldwide System Management Software as a Service 2011–2015 Forecast and 2010 Vendor Shares (IDC #229286, July 2011)Important Changes for IDCs 2012 IT Cloud Services TaxonomyFor 2012, we have made some important changes and enhancements, on top ofIDCs traditional IT functional taxonomy foundation, to create a new IT cloud servicestaxonomy. Table 1 shows the new taxonomy, which is followed — for the purposes ofcomparison — by the old taxonomy (see Table 2).©2012 IDC #233396 13
  • 18. TABLE 1 IDCs New IT Cloud Services Taxonomy, 2012 IDC Top Level Primary Market Secondary Markets SaaS Applications Collaborative apps, content apps, CRM, ERM, SCM, ops and manufacturing apps, and engineering apps System infrastructure System and network management, security, and advanced storage software (SIS) "Other" SaaS For new/emerging SaaS functional offerings not otherwise covered within the traditional applications and SIS functional categories PaaS AD&D Cloud testing, database as a service, integration as a service, cloud application platform, data analysis and access, content management, app server middleware, and other AD&D "Other" PaaS For new/emerging PaaS offerings not otherwise covered within the traditional AD&D functional categories IaaS Basic storage Server Network Client "Other" IaaS For new/emerging IaaS functional offerings not otherwise covered within the traditional functional infrastructure categories Source: IDC, 2012 TABLE 2 IDCs Old IT Cloud Services Taxonomy, 2008–2011 Informal NIST Alignment Primary Market Secondary Markets SaaS Applications Collaborative apps, content apps, CRM, ERM, SCM, ops and manufacturing apps, and engineering apps PaaS Application Structured data management, app development, quality and life-cycle tools, development and app server middleware, integration and process automation middleware, data deployment access/analysis/delivery, and other AD&D IaaS System infrastructure System and network management, security, and advanced storage software Basic storage Server Source: IDC, 201214 #233396 ©2012 IDC
  • 19. The key enhancements weve brought into the 2012 taxonomy are as follows: Adoption of the three NIST IT cloud services categories — SaaS, PaaS, and IaaS — as our top level. The addition of a new top level in IDCs IT cloud services taxonomy is based on the widely used U.S. National Institute of Standards and Technology cloud services categories: infrastructure as a service, platform as a service, and software as a service. Weve created formal alignment of IDCs primary IT cloud services markets (e.g., applications, application development and deployment, system infrastructure software, servers, and basic storage) with these three top-level NIST categories. The NIST scheme has the advantage of being simple and widely used. On the other hand, there is sparse detail about which underlying market segments fit within each of these three categories, so weve made some adjustments to IDCs former cloud taxonomy to accommodate the adoption of NIST at the top level:  "SaaS" segment redefined as apps and SIS offerings delivered as cloud services. We are adopting NISTs narrower definition of SaaS, which focuses just on applications and excludes AD&D cloud services. Within this application-focused SaaS definition, we are also including all SIS software segments delivered as cloud services since most can be considered applications aimed at IT professionals; the ones that cant — such as operating systems and hypervisors — are not counted as distinct cloud services since they are bundled with infrastructure cloud services.  Important: IDCs traditional "SaaS" market renamed as "cloud software." With the adoption of the NIST definition of SaaS, weve relabeled IDCs traditional "SaaS" market — which covers all packaged software functionality (applications, AD&D, and SIS) delivered as cloud services — as "cloud software."  AD&D cloud services fully aligned with PaaS and revamped. In IDCs updated taxonomy, we have chosen to align all of the application development and deployment cloud services with the NIST "platform as a service" category. Thus IDCs "PaaS" includes the functionality of all AD&D secondary markets delivered as cloud services, including cloud testing, database as a service (DBaaS), integration as a service, and other AD&D cloud services (e.g., BI, content management, and app server middleware). We have also expanded the PaaS secondary markets to include an important emerging category — cloud application platforms, which are "integrated PaaS" offerings such as Microsofts Azure, salesforce.coms Force.com, and Googles App Engine. Some in the market think of this narrower group of integrated PaaS offerings as "PaaS" — its important to note our distinction: we consider PaaS to include not just the integrated platforms but also component technologies (e.g., development tools, DBaaS, and application servers) sold as standalone cloud services. This is consistent with the principle that the top-level NIST taxonomy must be collectively exhaustive and mutually exclusive.©2012 IDC #233396 15
  • 20.  Expanded primary market categories. This new taxonomy expands the number of primary IT cloud services beyond the original five, adding networks (network functionality delivered as cloud services) and clients. "Other" SaaS, PaaS, and IaaS categories to accommodate new and compound solutions. We have added three "other" categories at the IaaS, PaaS, and SaaS levels to accommodate cloud services offerings beyond those that are cloud versions of simple primary market product offerings. Such offerings could include complex/compound solutions that integrate the functionality of multiple point solutions (such as cloud application platforms) and entirely new offerings that were not previously offered in prior delivery models and are now possible through the cloud model. Over time, as these "other" offerings become better defined, and larger, we will pull them out of "other" into their own categories (as we have with CAP).Definitions of the IT Cloud Services SegmentsBecause IDC considers cloud services as a delivery and consumption model that canbe applied to virtually all traditional consumer and business product and serviceofferings, our cloud services taxonomic approach has been to start with a foundationof existing IT functional markets delivered as cloud services.What this approach means is that the functional definition (with inclusions/exclusions)of each cloud services segment (refer back to Table 1) is essentially the same as thefunctional definition found in IDCs traditional IT products taxonomies but delivered ascloud services.For example, the functional description of the applications cloud services segment(refer back to Table 1) is the same as that for packaged applications described inIDCs Software Taxonomy, 2011 (IDC #228020, July 2011) but delivered as cloudservices. And the underlying secondary cloud services segments are functionally thesame as those within the traditional applications market (collaborative, content, CRM,ERM, etc.) delivered as cloud services.Accordingly, for more detail about the functional descriptions of each of our cloudservices segments, refer to the following IDC documents: For more detail on the application and system infrastructure software primary markets and secondary markets, see IDCs Software Taxonomy, 2011 (IDC #228020, July 2011). As noted previously, the AD&D cloud services segment was renamed platform as a service and the secondary taxonomy "tuned" to reflect the emergence and adoption of cloud services in this segment. For more detail on the PaaS primary and secondary market segment definitions, inclusions, and exclusions, see Worldwide Public Platform as a Service 2011–2015 Forecast (IDC #232215, February 2012). Servers and basic storage include all server capacity and raw storage capacity, respectively, delivered as cloud services. Storage-related cloud services that are above and beyond raw storage — including backup, archiving, continuity, and16 #233396 ©2012 IDC
  • 21. data synchronization — are classified as advanced storage and categorized under system infrastructure software cloud services (a submarket of SaaS). For more detail on the storage and advanced storage cloud services taxonomy, see IDCs Worldwide Storage and the Cloud Taxonomy, 2011 (IDC #228309, May 2011). The network and client cloud services segments are newly added to IDCs IaaS cloud services category. For this document, we are simply and broadly defining these as network functionality and client functionality, respectively, delivered as cloud services. These segments will be defined in more detail in 1H12 as part of IDCs expanded cloud services forecast process. As noted previously, the "other" SaaS, "other" PaaS, and "other" IaaS cloud services segments are to accommodate cloud services offerings beyond those that are cloud versions of simple primary market product offerings. Such offerings could include complex/compound solutions that integrate the functionality of multiple point solutions (such as cloud application platforms) and entirely new offerings that were not previously offered in prior delivery models and are now possible through the cloud model. Over time, as these "other" offerings become better defined, and larger, we will pull them out of "other" into their own categories (as we have with CAP).FUTURE OUTLOOKAs noted, cloud services should be viewed as a delivery/consumption model thatmay, and will, be applied to most traditional IT functional segments. But the newtaxonomy (refer back to Figure 1) is certainly not static. We expect wholly new cloudoffering categories to certainly emerge — and IDC will expand its cloud servicescategories to incorporate functional offerings that fall outside of, or represent newcombinations of, our current IT taxonomy. But currently, the bulk of customer IT cloudservices buying can be tied directly to existing functional IT offering categories.It is important to note, however, that while we generally use traditional IT productmarkets naming (e.g., applications and systems infrastructure software) to describefunctionally similar cloud offerings, cloud versions of these offerings arefundamentally different from the traditional offerings they mimic: IT cloud servicesinclude all required supporting IT resources under the covers (i.e., they are onlineversions of what used to be called turnkey systems). They are different fromtraditional IT products in that they combine characteristics of both traditional ITproduct and services delivery models.ESSENTIAL GUIDANCECreating definitions and taxonomies around a market as rapidly emerging andevolving as IT cloud services is challenging. But the core cloud services principlesthat we identified in 2008 have held up very well and have kept our definitions andtaxonomy (and the forecasts built around them) from shifting much in the past fouryears.©2012 IDC #233396 17
  • 22. These core principles that continue to inform our definitions, taxonomies, andforecasts are: Dont "reinvent the wheel" by creating new functional markets where ones already exist. Cloud services are a new delivery/consumption model that can be applied to all existing functional offerings as well as enable entirely new offerings. It makes absolutely no sense to reinvent new functional categories and names for existing functionalities delivered through the cloud model; in fact, it makes it harder to analyze the cannibalization effect: the shift of spending for a functional capability across different delivery models. New categories and names should, of course, be created when there are truly new functional offerings created. Pay attention to all eight cloud service attributes. Cloud services are about all eight of the cloud attributes we identified in 2008 — including the often overlooked but absolutely essential API requirement. The hallmark of the "cloud services era" will undoubtedly be the emergence of huge innovator ecosystems (and millions of new solutions) around those APIs. In the end, the innovation that results from the "open API" principle of cloud services will be even more important than the economic benefits of the "shared" and "scalable" principles. Acknowledge that cloud services are about what the customer buys, not how the SP delivers it. Cloud services should be described by the attributes customers experience, not by the implementation choices made under the covers. Thats why our eight attributes focus on things the customer sees and experiences and dont mention implementation details like "virtualization." This takes us out of the religious wars over what the best implementation architectures and technologies are. Those choices are important, of course — they are likely to determine who the winning suppliers are (and would be factored, for example, in an IDC MarketScape vendor assessment) — but they dont belong in the definition of an offering category like "cloud services." The definition should be about whats delivered to a customer, not how its delivered. Count the money where its spent, and only count real cloud services. Cloud services spending forecasts should account only for cloud services — for example, if customers are buying cloud server capacity on which to run a traditional business application, we count their cloud server payment in the cloud server category; we dont count their application payments to their ISV in cloud applications since the application itself isnt a cloud service — and only in the cloud services category in which customers perceive they are buying — for example, when customers pay for a CRM cloud service, we count those payments in the CRM cloud services category; we dont spread their payment across CRM and the infrastructure services the cloud SP may need to buy to support their CRM cloud offering.The good news is that its very likely that these principles will remain valid for quite awhile. But the obvious challenge is that the cloud services market continues to evolvein significant ways, almost daily. We will continue to monitor the market and look forhow these principles — and the definitions and taxonomy that are built on them —need to change to adapt to the changing realities of this fast-moving market.18 #233396 ©2012 IDC
  • 23. LEARN MORERelated Research Worldwide Public Platform as a Service 2011–2015 Forecast (IDC #232215, Forthcoming) Worldwide Public Cloud Application Platforms 2011–2015 Forecast (IDC #232171, January 2012) Japan Cloud Services 2011–2015 Forecast Update (IDC #JP1972808T, December 2011) Worldwide SaaS CRM Applications 2011–2015 Forecast and 2010 Vendor Shares (IDC #232230, December 2011) Worldwide Storage in the Cloud 2011–2015 Forecast: The Expanding Role of Public Cloud Storage Services (IDC #232115, December 2011) Worldwide IT Project and Portfolio Management SaaS 2011–2015 Forecast and 2010 Vendor Shares: SaaS Drives IT PPM Adoption (IDC #232271, December 2011) Worldwide Cloud Security 2011–2015 Forecast: A Comprehensive Look at the Cloud/Security Ecosystem (IDC #230389, December 2011) Hungary Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17873, November 2011) Croatia Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17723, November 2011) European Public Cloud Forecast Update (IDC #SP52T, November 2011) Poland Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17721, November 2011) Russia Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17640, October 2011) Slovenia Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17566, September 2011) Worldwide Software as a Service 2011–2015 Forecast and 2010 Vendor Shares (IDC #229440, August 2011) Worldwide Cloud Testing and ASQ Software as a Service 2011–2015 Forecast and 2010 Vendor Shares: Testing Emerges from and for the Cloud to Drive Business Agility (IDC #229671, August 2011) Worldwide System Management Software as a Service 2011–2015 Forecast and 2010 Vendor Shares (IDC #229286, July 2011)©2012 IDC #233396 19
  • 24.  IDCs Software Taxonomy, 2011 (IDC #228020, July 2011) Worldwide and Regional Public IT Cloud Services 2011–2015 Forecast (IDC #228485, June 2011) Asia/Pacific (Excluding Japan) 2011–2015 Cloud Services Forecast (IDC #AP6684407T, June 2011) Canadian Public IT Cloud Services: 2011–2015 Forecast Overview (IDC #CA2CCS11, June 2011 IDCs Worldwide Storage and the Cloud Taxonomy, 2011 (IDC #228309, May 2011) Romania Cloud Services Market 2011–2015 Forecast and 2010 Competitive Analysis (IDC #CEMA17725, December 2010) Defining "Cloud Services" and "Cloud Computing," blogs.idc.com/ie/?p=190 "Defining Cloud Services — an IDC update," blogs.idc.com/ie/?p=422SynopsisThis IDC study discusses the IT cloud services market, which continues to grow andevolve at an astonishing rate. New offerings come to market regularly, often definingnew functional segments and new deployment options. This study updates IDCsdefinition of cloud services and the various cloud services deployment models. It alsoupdates and expands IDCs taxonomy of the IT cloud services market."This study provides the fourth update of IDCs cloud services taxonomy since 2008,"according to IDC SVP and Chief Analyst Frank Gens. "Clients will be glad to knowweve maintained strong continuity with our prior taxonomies. But weve also madesome major enhancements, including incorporating the widely used NIST taxonomy,adding important categories such as network and client cloud services, and adding anew, strategically important segment called cloud application platforms that definesintegrated PaaS platforms such as Googles App Engine, Microsofts Azure, andsalesforce.coms Force.com."20 #233396 ©2012 IDC
  • 25. Copyright NoticeThis IDC research document was published as part of an IDC continuous intelligenceservice, providing written research, analyst interactions, telebriefings, andconferences. Visit www.idc.com to learn more about IDC subscription and consultingservices. To view a list of IDC offices worldwide, visit www.idc.com/offices. Pleasecontact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) orsales@idc.com for information on applying the price of this document toward thepurchase of an IDC service or for information on additional copies or Web rights.Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.©2012 IDC #233396 21

×