Daniel Beazer, analyst at Structure Research, discusses the latest trends in the hosting and cloud marketplace, based on research from CTOs, CIOs and IT Directors.
Cloud and On-Premise Trends for Businesses in 2014
1. 1
America Square London EC3 12th May, 2014
Rackpace Unlocked
What are businesses looking
for from the cloud?
2. What we are told
• No one wants hardware
• Everything is/will move to the cloud
• SaaS is replacing traditional software
• Cloud is cheap
• Open source is cheaper
• Microsoft, big vendors dead/dying
• SIs also dead
• Private cloud is so 2008
• CIOs must do x y and z
I spoke to over 40 IT directors and …….
………(p.s. buyers are liars)
‘My CEO drives me
mad telling me cloud
is cheap and we
have to move
everything there’
3. 5
A reality check
2013 2014 2015 CAGR
Cloud £180mn £240mn £570mn 35%
Hosting £1.6bn £1.8bn £2.3bn 12%
Co-lo £0.9bn £1.0bn £1.1bn 19%
2013 2014 2015 CAGR
Shared £434mn £474mn £571mn 9%
Dedicated £171mn £189mn £207mn 9%
Virtual £91mn £102mn £110mn 15%
Managed £1.0bn £1.2bn £1.5bn 22%
‘It’s good to have this conversation, I hardly ever
think about the infrastructure my applications sit
on, it’s such a tiny part of my budget’
4. 13
What they like/care about
• Right platform for the right application
• Commodity IT vs critical
• ‘Just needs to work’, ‘good enough’
• SLAs
• Network
• Sweating assets
• Help me win the PCWorld argument
• Tell us what you do well
• Availability
• Integrated technology stacks
‘Please don’t sell me a virtual server and then
tell me it takes four weeks to deliver it’
5. 13
What they don’t care about
• Shared
• High performance
• Low expectations in shared
• Data transformation means hosting
• Security, compliance
• Senior management putting IT in a box
• TCO tools, free POCs
• Migration
• Finger pointing when it goes wrong
• Sweat the asset
• Managing multiple vendors
‘Sales gives away our technology for free and
it’s the highest margin part of the business’
7. 9
Some trends in enterprise
• Enterprise equals private cloud
• VMWare sales, OpenStack, Citrix sales tell a story
• Business analytics
• Moving towards agile IT, means uncoupling
• Data transformation integration
• Latency an issue, need that fibre X connect
• SaaS disappointment
• £50k integration charge
• Vendor lock-in: try moving after 2 years
• Open source
• Vendors can behave in a old fashioned ways
• In storage, Lego can be cheaper than the cloud
• Big vendors outsourcing disruption/innovation
‘Public cloud? That’s for LAMP stack, right?
8. 9
Some questions to ask
• How many products did you release in the last year?
• Can you give us your three year availability history?
• Can you gives us your sales headcount for the last 3
years?
• If your cloud node goes down before Xmas how much
will you pay me?
• Will the sales rep I am talking to answer the phone
when I have signed?
• Can you guarantee performance? How?
• Can you walk me through what happens if I decide to
leave
• Can you guarantee none of my data will remain on your
platform once I am gone