The Sand Hill Group’s new study “Leaders in the Cloud” conducted in-depth interviews with forty CIOs and tech leaders and surveyed more than 500 IT executives. The combination of these two research efforts provides unparalleled insight into customer perceptions of cloud computing, current and planned cloud initiatives, adoption drivers, business and technological benefits. The following pages contain a summary of selected findings from the survey of IT executives.

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Survey Findings
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LEADERS IN
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THE CLOUD
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Identifying the Business
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Value of Cloud Computing
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KAMESH PEMMARAJU
M.R. RANGASWAMI
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0 1 1 1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 1 1 0 1 0 1 0 1
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0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0
1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0
0 1 0 0 0 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0
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Survey Findings:
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The Sand Hill Group’s new study “Leaders in the Cloud” conducted in-depth
interviews with forty CIOs and tech leaders and surveyed more than 500 IT
executives. The combination of these two research efforts provides unparalleled
insight into customer perceptions of cloud computing, current and planned
cloud initiatives, adoption drivers, business and technological benefits. The
following pages contain a summary of selected findings from the survey of IT
executives.
The “Leaders in the Cloud” report also contains more than a dozen use cases
from a diverse group of industries which demonstrate the real business value
being achieved, as well as the latest best practices and lessons learned from
real-world cloud projects. To find out more information and/or purchase the
report, visit http://www.sandhill.com/research.
Does your company use or plan Who, if anyone, is driving the
to use cloud computing adoption of cloud computing
in the next three years? in your business?
Company Uses/Plans to Use Cloud Internal Driver of Cloud Computing Adoption
Computing in Next 3 Years
No one
5%
Chief
Information
Don’t know Officer (CIO)
25% Heads 30%
of business
units 14%
Yes 60%
No 15%
A committee
of senior IT department
executives 27%
25%
Source: Sand Hill Group Cloud Computing Survey 2010 Source: Sand Hill Group Cloud Computing Survey 2010
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3. How, if at all, are you using or evaluating cloud
computing in your organization in 2010?
Company’s Cloud Computing Initiatives for 2010
Watching and learning 53%
Implementing pilot projects
52%
for experimenting and testing
Implementing and deploying 33%
non-critical applications
Deploying mission- 18%
critical applications
Other 2%
No plans 3%
0 20% 40% 60%
Source: Sand Hill Group Cloud Computing Survey 2010
Which, if any, of the following cloud service
models does your company use the most?
(SaaS, PaaS, IaaS)
Cloud Service Model Used Most
80%
70%
Currently
60% In 3 Years
56%
40%
20% 24%
18% 20%
12%
0
Software as a Infrastructure as Platform as a
Service a Service Service
Source: Sand Hill Group Cloud Computing Survey 2010
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4. Which, if any, of the following deployment models
is your company using? (Community, Hybrid,
private, public)
Type of Cloud Used
60%
54%
44% 43%
Currently
40% 35% 36%
In 3 Years
28%
20%
18%
20%
13%
8%
5%
0%
0
Private Public Community Hybrid None Don’t know
Source: Sand Hill Group Cloud Computing Survey 2010
What are your company’s the most important
reason for moving to cloud computing?
Reasons for Moving to Cloud Computing
Business agility 49%
Cost efficiency 46%
Leverage core competencies and free
22%
IT resources to focus on innovation
Disaster recovery and business 13%
continuity
Part of a green initiative 3%
0 20% 40% 60%
Source: Sand Hill Group Cloud Computing Survey 2010
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5. Which of the following titles Which of the following
best describes your role? industries most accurately
describes the majority of your
Survey Respondent Profile organization’s business?
Title/Position Percent of Respondents
High technology 27%
Board member/CEO 14%
Financial services 19%
CIO/CTO 13%
Manufacturing 10%
Other C-level executive 6%
Health care, pharmaceuticals 7%
Senior IT executive 18%
Government 6%
Other senior executive 10%
Telecommunications 5%
IT manager 7%
Energy 4%
Other manager 6%
Consumer packaged goods 4%
Staff 6%
Retail 4%
Consultant 15%
Arts and entertainment 3%
Other 5%
Construction 2%
Transportation 2%
Other 6%
Which of the following ranges
best describes your company’s
annual revenue? (Select one)
Company Revenue Percent of Respondents
$10 billion or more 12%
$1-$9 billion 19%
$250 - $999 million 13%
$10 -$250 million 24%
Less than $10 million 32%
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Acknowledgements:
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The authors wish to sincerely thank the Board of Advisors who participated in the
creation of this research study and report. Combined, these executives represent
decades of business, technology, and operational experience.
Toby Redshaw – CIO, Aviva
Michael Abbot – Senior VP, Application Software and Service, Palm
JP Rangaswami – Chief Scientist , BT
Daru Darukhanawala – CTO, BP
James Barrese - VP Systems and Architecture, eBay
Gary S. Washington- Policy Lead, Cloud Computing,
Office of Management & Budget (OMB)
We extend our special thanks to Shahid N. Shah who has assisted us on government
focused input and research. Shahid is CEO of Netspective and Chief Architect and
Technology Strategist (contractor) at the Office of Management & Budget’s Budget
System Branch and the eGov Budget Formulation & Execution Line of Business
(BFELoB) as well as a consulting architect at a few other federal agencies; he
advises government decision-makers on cloud computing and other technology
strategies. He is an influential thought leader, federal blogger, and a winner of a
2009 Federal Computer Week “Fed 100” award for his work on the MAX Federal
Community. He holds an M.Sc. in Technology Management from the University of
Maryland and a B.Sc. in Computer Science from the Pennsylvania State University.
Sand Hill Group would like to thank McKinsey & Co. and TechWeb for their coop-
eration and assistance in fielding the quantitative surveys which contributed to the
findings of this report.
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About the Authors:
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Kamesh Pemmaraju
With more than 20 years of experience in the tech industry, Kamesh specializes in
bringing cutting-edge technology products to market, security and quality consult-
ing and operations. He has held global VP and Director of Engineering and Qual-
ity positions at Apani Networks, Solidworks, and Pegasystems. He has brought
to market several leading technology products in Enterprise Security, 3D-CAD,
High-Transaction websites, and Enterprise BPM. Kamesh has consulted on Tech-
nology, Security, and Quality strategies at Fortune 1000 companies including GE,
GM, Motorola, HP, Microsoft, NASD, Sun Microsystems and Siemens. He holds a MS
in Computer Science and Automation from the Indian Institute of Science and a BS
in Electronics and Communications Engineering from JNT University, Hyderabad.
Contact Kamesh at kamesh@sandhill.com.
M.R. Rangaswami
M.R. co-founded Sand Hill Group LLC (www.sandhill.com), and has been a strate-
gic advisor to fast-growing companies such as Aspect Development and i2 Tech-
nologies. He has held global VP marketing positions at Baan Company, Avalon
Software, and Oracle Corporation. M.R. was profiled on the front page of the Wall
Street Journal and was named to Forbes’ “Midas 100 List” as one of the most influ-
ential investors in technology. He holds an MBA from Kent State University and a
bachelor’s degree from the University of Madras.
About Sand Hill Group
Sand Hill Group provides strategic management, investment and marketing serv-
ices to emerging market leaders. Sand Hill Group is best known for its work in
the $600-billion software and services market. As founder of the “Enterprise” and
“Software” conference series, Sand Hill Group has been credited with uniting the
software business ecosystem of executives, entrepreneurs, investors and profes-
sionals. The firm is also the publisher of SandHill.com, the premier online destina-
tion for strategic information on the software business. The site and its newsletters
are read by thousands of top software industry executives every week. Sand Hill
Group also funds primary research into key technology and business model trends
that impact the software business. Find out more at www.sandhill.com.
Report editorial and design by Point by Point Publishing www.point-by-point.com.
Copyright 2010 Sand Hill Group
The information contained herein has been obtained from sources believed to be reliable. Sand Hill Group dis-
claims all warranties as to the accuracy, completeness or adequacy of such information. The Sand Hill Group shall
have no liability for errors, omissions or inadequacies in the information contained herein or for inter¬pretations
thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results.
The opinions expressed herein are subject to change without notice. Reproduction of this report in print or elec-
tronic form is strictly prohibited without written permission from Sand Hill Group.
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