Leaders In The Cloud Customers Ccv7


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Sand Hill Group conducted forty in-depth interviews and surveyed more than 500 IT executives and to obtain a clear picture of the cloud computing initiatives, strategies and best practices taking hold in enterprises today.

"Leaders in the Cloud" delivers unparalleled insight into customer perceptions of cloud computing, current and planned cloud initiatives, adoption drivers, business and technological benefits and challenges, strategies for deployment and best practices for success. The findings look closely at experiences with all types of cloud service models - SaaS, IaaS, and PaaS - and deployment models - public, private, community and hybrid clouds.

The Enterprise Digital Report delivers the research findings via first-hand CIO quotes and more than a dozen charts and figures, and six use cases of specific cloud projects. The study identifies a complete list of the business benefits associated with cloud computing, and presents "Take Action Now" implications for both enterprise customers and cloud vendors.

The Enterprise Digital Report includes an additional chapter on the unique market for federal government clouds, six additional cloud use cases and several additional pages of unedited customer comments about cloud computing. The license also includes a copy of the data file with quantitative findings from a survey of more than 500 IT executives about their cloud computing experiences.

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Leaders In The Cloud Customers Ccv7

  1. 1. Leaders In The Cloud Identifying the Business Value of Cloud Computing for Customers and Vendors
  2. 2. About Sand Hill Group The business strategy destination for enterprise software executives Investment and Advice Publishing Research • Provider of • SandHill.com Web • Producer of strategic investments and site reports about key management advice • Software Pulse enterprise software to emerging electronic newsletter industry enterprise delivered to over trends which aim to technology leaders 12,500 executives provide executives each week with meaningful, actionable insight into the critical issues they face 2
  3. 3. About the authors M.R. Rangaswami, Sand Hill Group, LLC, co-founder • Held Global VP Marketing positions at Oracle and Baan • Strategic advisor to fast growth companies • Profiled on the front page of the Wall Street Journal • Named to Forbes “Midas 100” list as one of the most influential investors in technolog 3
  4. 4. About the authors Kamesh Pemmaraju. Leading Cloud Research at Sand Hill Group • Held Global VP Engineering/Director Quality at Pegasystems, Solidworks, Apani Networks • Brought to market leading technology products in Enterprise BPM, 3D-CAD systems, Enterprise Security, High Transaction Websites, and Embedded Real-time • Consulted at GE, GM, Siemens, Sun, Visa International, NASD, 4 Motorola on technology, security, and quality issues
  5. 5. Industry-leading advisory board Tony Redshaw, CIO Daru Darukhwala, CTO JP Rangaswami, Chief Scientist James Barrese, VP Systems and Architecture Michael Abbot, SVP Applications Software and Service Gary S, Washington, Office of OMB 5
  6. 6. Survey of 511 IT execs with McKinsey and TechWeb Title/Position Percent of Respondents Board Member/CEO 14% CIO/CTO 13% Other C-level executive 6% Senior IT executive 18% Other senior executive 10% IT manager 7% Other manager 6% Staff 6% Consultant 15% Other 5% 6
  7. 7. 40 confidential interviews with cloud leaders Sector Companies Executives Healthcare 1 1 Insurance and Financial Services 3 4 Publishing and Media 3 3 Telecom 1 2 Federal Government 3 6 Technology 4 4 Business and Software Services 3 3 Software Vendors 8 8 Electronics 1 1 Manufacturing 2 2 Energy 1 6 Total 30 40 7
  8. 8. Cloud Feels Like 1997 for the Internet High 2010 2000 Cloud 1990 Network Computing Computing Client/Server Complexity 1970 Computing Mainframes with 1960 terminals Single Back to mainframes? Computer Low Centralized Time Distributed
  9. 9. NIST Definition Well Accepted Hybrid Clouds Deployment Models Private Community Public Cloud Cloud Cloud Service Software as a Platform as a Infrastructure as a Models Service (SaaS) Service (PaaS) Service (IaaS) On Demand Self-Service Essential Broad Network Access Rapid Elasticity Characteristics Resource Pooling Measured Service Massive Scale Resilient Computing Common Homogeneity Geographic Distribution Characteristics Virtualization Service Orientation Low Cost Software Advanced Security Source: NIST
  10. 10. But Controversies Abound…. Is private cloud a cloud? Is virtualization a cloud initiative? Is SaaS app a cloud app? 10
  11. 11. Cloud Reality is Catching The Hype Some SMB’s have 80% of services in the cloud Watching and Learning 53% Implementing Pilot projects for Experimenting… 52% Implementing and deploying non-critical… 33% Deploying mission-critical applications 18% No plans 3% Don’t know 2% 0% 10% 20% 30% 40% 50% 60% “Compared to what we were doing before, the cloud is a giant bed of roses.” – CIO, business services company 11
  12. 12. Agility: #1 driver for the move to the cloud Business agility 49% Cost efficiency 46% Leverage core competencies and free IT… 22% Disaster recovery and business continuity 13% Part of a Green initiative 3% Don’t know 1% 0% 10% 20% 30% 40% 50% 60% “We were halfway through the project and the business decided to dramatically change the requirements of the system. We were able to respond much more quickly than the original on-premise team would have delivered.” – CIO Business Services Company 12
  13. 13. Which cloud models are winning and why? 80% 70% Currently 70% In 3 Years 60% 56% 50% 40% 30% 24% 18% 20% 20% 12% 10% 0% SaaS IaaS PaaS 13
  14. 14. CIO perspective on various cloud types 60% 54% Currently 50% 44% in 3 Years 43% 40% 36% 35% 30% 28% 20% 20% 13% 10% 0% Private Public Community Hybrid “I don’t think [the public/private cloud issue] is really an ‘either/or’ question. It’s a combination.” – CIO, software company 14
  15. 15. Cloud investments expected to increase Today In Three Years 3% 7% - 30% IT Budget spend on Cloud IT Budget expected spend on cloud “Today we’ve got 95 percent of applications running internally and 5 percent externally. In five years, that ratio will be 80 percent internal and 20 percent external.” – CIO, Fortune 500 financial company 15
  16. 16. Workloads in the cloud Innovation, skunk- work projects, new Backup, Disaster development, QA, Recovery, Load testing Redundancy Collaboration, CRM, Characteristics: Spiky HR, Office traffic patterns, self- Productivity, ERP, and contained, Business Analytics virtualizable, scalable (SaaS) architecture
  17. 17. Small, large companies have different concerns Large Small and Midsize Enterprises Businesses Implementing pilot projects 62% 46% Watching and learning 38% 49% Implementing and deploying 35% 34% noncritical applications Deploying mission-critical 12% 25% applications No plans 6% 4% Don’t know 0% 1% “I firmly believe that my data is safer in [the cloud vendor’s] hands than it is in mine” – SMB CIO 17
  18. 18. Several customer concerns, but responsibility is shifting to the vendors How will we How do we Does it make manage the cultural interoperate with economic sense? change and fear of our existing “stuff”? job loss? How will we Once we’re in, how Do I have re-write handle security do we get out? everything? and compliance? (portability) How will we handle Is it mature, Do we need new legal matters? reliable, and stable? skills?
  19. 19. Implications for customers • Embrace change: start with experiments and pilots now “I think a lot of – Experience cloud business benefits companies in more first hand in a low-risk environment traditional, mature • Think „Cloud = Outsourcing 2.0‟ industries like ours are – Innovate on “core” and outsource missing out on a lot of “context” opportunities to take – Leverage cloud to enable real-time decision making and collaboration advantage of what the across the supply-chain cloud has to offer.” – • Change IT skill sets CIO manufacturing – Business requirements, vendor company management, system architecture, new cloud platform skills 19
  20. 20. More Information, Assistance, and Offers • Opinion Editorial on SandHill.com – http://sandhill.com/opinion/editorial.php?id=296 • Weekly Blog on cloud trends, vendors, customers, people, and solutions – http://sandhill.com/opinion/daily_blog.php?id=71 • Purchase Digital Enterprise License of research: Unlimited Internal Use: – http://sandhill.com/research/reports.php?id=3 • Additional Go-to-market and lead generation: – Customer webinars and events – Co-branded whitepapers, podcasts, and marketing collateral – Sales enablement and briefing sessions 20
  21. 21. Sample Research Customers 21