Generating Demand: A Summary on Enterprise IT Buying in the Early Cloud Era

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Generating Demand: A Summary on Enterprise IT Buying in the Early Cloud Era

  1. 1. Generating Demand: A Summary on Enterprise ITBuying in the Early Cloud EraFebruary 2011© All Rights Reserved 1
  2. 2. Goals and Methods •  To inform demand generation programs by understanding penetration, concerns and motivators, apps and IT strategies, buying habits and partner involvement, and future plans •  Large and medium-sized enterprises to understand key differences among 3 segments: ▫  Pioneers: Using or testing a cloud solution ▫  Planners: Planning for a cloud solution ▫  Stragglers: Not planning a cloud solution at this time •  Study characteristics •  IT decision-makers – IT VPs, Directors •  Sample size = 126 •  Data collected Summer 2010 •  Developed in partnership between Winn Technology Group & WaveLength Market Analytics© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 2
  3. 3. Executive Summary •  Goals & Methods: To inform demand generation programs by understanding penetration, concerns and motivators, apps and IT strategies, buying habits and partner involvement, and future plans •  Many Technology Segments Competing for the Customer •  Cloud Market Adoption & Penetration ▫  41% are Pioneering with their Cloud Apps, and another 17% are actively planning meaning, 58% are doing “something” in the Cloud while the rest are Stragglers ▫  Pioneers already outsource more than Planners and far more than Stragglers ▫  Most common models: private Clouds and PaaS ▫  Cloud apps not yet mission critical ▫  Pioneers mostly migrate legacy apps •  Moving the Market: Motivators & Barriers ▫  Top motivators: cost cutting & speedy application deployment ▫  Reduced control is top security concern for Pioneers ▫  Experience with Cloud has shown more to worry about over network performance than security, as…Pioneers find network delays a bigger concern than security ▫  Network is underlying infrastructure getting most Evaluation… from all market segments© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 3
  4. 4. Executive Summary •  Going to Market ▫  In selecting partner for Cloud services, professional services is most critical for both Pioneers and Planners ▫  Buying behaviors typical of shifting market: high involvement of top management & trusted 3rd parties ▫  Planners involve more tech segments than Pioneers in Cloud implementation ▫  … But, overwhelmingly system integrators most important partner for Pioneers while its software for Planners ▫  Brand, ability to manage, application features/functions, monitored service levels will become key service differentiators ▫  Generating demand will require fewer, but more substantive partners •  Enter the Early Cloud Era… ▫  Many say ROI & deployment speed expectations not met…yet still Pioneers are largely satisfied with their Cloud solution ▫  No turning back…Pioneers and Planners both estimate that around 30% of their IT will be in Cloud By 2015 ▫  For every enterprise, no longer a question of If… only when, what, and how? ▫  Simple tips for generating demand during the early Cloud era: target the right audience with the right message© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 4
  5. 5. Many Technology Segments Competing for the Customer IT as a Service Software as a Service Communications as a Service Cloud Services-enabling Products & Services Consulting & Professional Services for Cloud Pure Cloud Vendors Managed Telecom Software Hardware Services/IT Systems Service Vendors Vendors Outsourcing Integrators Providers Providers = Business model re-alignment and sales channel challenges for entire industry© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc.
  6. 6. Shift to Cloud Architectures Well-Underway • Although degree of penetration Enterprise Cloud Penetration • Cloud apps are those that were Adoption & Planning into IT is unknown, more “born” of the Internet, such as enterprises implementing or email, collaboration, and planning “something” in the cloud customer relationship than those that are not management •  Enterprises don’t want to be left • Mission-critical enterprise cloud behind apps nowhere on the horizon • Cloud Pioneers profile: • Continuum of clouds will exist, as • Large, publicly traded or private some clouds more suited to company certain apps than others • Higher than average number of • Public clouds & hybrids models are remote workers or many smaller closer than they appear branch offices • Higher than average number of mobile workers© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 6
  7. 7. Brand, Ability to Manage, Application Features & Functions, Monitored Service Levels Will Become Key Service Differentiators • Imperative to own the customer had never been stronger Channels • Hardware & network companies will be increasingly under pressure as the primary decision-maker changes from the enterprise to the enterprise’s data center partner, but brand can become an important component of the apps or data center’s service sale • Telcos need to avoid the temptation of rapidly entering the market with large systems integrator/IT outsourcing partners that will ultimately compete with them • All vendors interests would be well-served by educating their best channel sales partners© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 7
  8. 8. Generating Demand Will Require Fewer, but More Substantive Partners Partnerships Technology •  Cloud is mostly about application delivery, so the strong role of software vendors is not surprising •  Storage and app vendor partnerships will be increasingly important •  Server and network vendors would be well-served by developing closer relationships with application vendors •  Network hardware vendors can best support their telco customers in service delivery by avoiding direct competition with them •  Integrators, consultants, and other distribution partners needs to development cloud services management capabilities© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 8
  9. 9. For Every Enterprise, No Longer a Question of If… Only When, What, and How? •  For Pioneers, adopting cloud to stretch IT dollars…. •  Even as cloud solution falls short of ROI & speedy deployment expectations •  And Still satisfied •  For Planners who plan more advanced cloud models bringing new & legacy apps to the cloud •  For Stragglers with NO cloud plans, but expect 11% of IT to be in the cloud in a few years •  Welcome to the vida loca in the Early Cloud Era© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 9
  10. 10. Simple Tips for Generating Demand During the Early Cloud Era Target the Right Use the Right Message Audience Don’t bother with organizations with Position your message as to how your fewer than 1000 employees at this solution addresses and helps remote point in the market and mobile workers Enterprises with high levels of Make sure you highlight your outsourcing, & key technologies like professional services capabilities and SANs, server & storage virtualization strengths Educate & partner with your best Address motivators as speed of solution partners deployment and cost reduction Address concerns of security risks, Don’t ignore enterprise’s top business reduced control, & network management performance© All Rights Reserved to WaveLength Market Analytics LLC and Winn Technology Group Inc. 10
  11. 11. Thank youWaveLength Market Analytics LLC Winn Technology Groupwww.wlanalytics.com www.winntech.net415.579.7030 727-789-0006© All Rights Reserved 11

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