The document summarizes the key findings from a survey on the future of cloud computing in 2012. Some of the main points covered include: 1) Software is increasingly becoming cloud-based, with SaaS spending growing much faster than traditional software and over 50% of categories being disrupted. 2) SaaS is widely adopted, with 82% currently using it and 84% of new software predicted to be SaaS. PaaS adoption is also increasing significantly. 3) Hybrid cloud models are becoming more popular, with 100% of deployments predicted to be hybrid by 2017. 4) While cloud adoption is increasing, concerns around security, compliance and other issues remain barriers for some.

1. FUTURE OF CLOUD COMPUTING
2012
mjskok.com @mjskok
#futurecloud

2. survey
Collaborators

4. respondents
785
417
2011 2012

5. WHO
Answered the call

6. talking to the top
other
LOB CxO
IT

8. WHAT
we learned
1. Software = Cloud
2. SaaS rules. PaaS pops.
3. Time to plug in your hybrid.
4. The mission is critical.
5. IT is riding the wave.
6. We still have work to do.
7. Racing into the future.
8. Investment is rocking.

9. 1. Software = Cloud

10. Cloud is Changing Software

11. SaaS spending growth compared to all software:
6x
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011

12. Cloud is Changing Software
More than 50% believe most categories will be disrupted.
50%
Big Data
CRM
Ecommerce
Social
Business Intelligence
Mobile
Office Productivity Series
1
ERP Column1
App Dev
Column2
WCM/CMS
Communications
Human Resources
Desktop virtualization
Points of Sale
Operating Systems

13. “The indust,- is changing but hybrid IT landscapes are still the
realit-. SAP has nearly 200,000 customers, and they are
embracing cloud like never before. However, building a profitable
cloud business requires scale—with 17 million users, SAP's cloud
business has the largest user base of any cloud apps provider. SAP
is responding to this g,owing market with serious investKent in a
roadmap of innovative and user-­‐Miendly cloud applications that
work seamlessly with cur,ent on-­‐premise solutions to deliver the
best of both worlds.”

14. 55%
of CIO’s to increase spending on SaaS in 2012
Source: JP Morgan CIO Survey March 2012

15. 3 Big Cloud Drivers
Scalability
Business Agility
Cost
57%
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other

16. 3 Big Cloud Drivers
Scalability
Business Agility
Cost
57%
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other

17. 3 Big Cloud Drivers
Scalability
Business Agility
Cost
57%
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other

18. 3 Big Cloud Drivers
Scalability
Business Agility
Cost
57%
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other

19. 3 Big Cloud Drivers
Scalability
Business Agility
Cost
57%
Capex to Opex
Mobility
Innovation
Competitive Advantage
Cloud API’s
Customer Demand
Open Source Projects
Internal mandate to move to
Cloud
Other

20. 2. SaaS rules.
PaaS pops.

21. All ready?
14%
1-12 mo.
19%
No
67%
Plan on deploying
Already Do
SaaS Applications?
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011

22. 82%
using SaaS today

23. 84 percent of net new software will be SaaS.
Source: Gartner, Goldman Sachs Research – Cloud CIO Survey 03-Nov-2011

24. 75%
building software with PaaS by 2017
83%
From 2012

25. “This year’s surPey results confirK THINKst,ategies’ view that the
g,owing success of SaaS is generating g,eater interest in PaaS
and IaaS alterSatives among organizations of all sizes across
nearly ever- indust,-. These organizations are finding that these
Cloud alterSatives can be deployed across public, private and
hybrid platforKs to address specific challenges, such as Big
Data, that produce measurable business benefits quickly and
enable IT to refocus its energies to beXer supporY the st,ategic
objectives of the overall organization.”

26. 3. Time to plug in
your hybrid.
100%
100%
90%
80% 37% 52%
70%
60% Hybrid Cloud
50%
40% Private Cloud
30%
Public Cloud
20%
10%
0%
0%
2012 2017

27. “For the second st,aight year, the Futre of Cloud Computing
surPey has confirKed some of 451 Group’s recent research. It
appears that there is g,owing familiarit- and t,st of public cloud
accompanied by a desire to move beyond one's own interSal
inMast,ctre, cloud or not. This is an understandable t,end as
the public cloud has existed for some time, presented enough
options and has had time to prog,ess Mom test or POC
deployKents to production implementations, which is reinforced
by other responses. The move away Mom interSally-­‐hosted to
public and hybrid clouds reflects the need and desire to integ,ate
with other technologies, vendors and ecosystems. This year’s
surPey proves organizations want flexibilit- along with scalabilit-.”

28. private
vs. public

29. Scale
matters

30. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

31. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

32. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

33. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

34. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

35. Clouds will blow with the winds of change
SaaS
PaaS
IaaS
Internal Hybrid Public

36. 4. The mission is critical.

37. 3%
TOO RISKY
§ Data sovereignty
§ Patriot Act
10% in 2011

38. 12%
NEEDS TO
MATURE
§ Security
§ Compliance
26% in 2011

39. 34%
EXPERIMENTIN
G Concept
§
§ Trial
§ Expand / Dispose
40% in 2011

40. COMPLETE CONFIDENCE
50% 13% in 2011

41. The mission ...
100%
100%
90%
80% 37%
70%
56% Complete Confidence
60%
50% Experimenting
40%
Needs to Mature
30%
20% Too Risky
10%
0%
0%
Vendors Customers

42. 56% 37%
Vendor User

43. 56% 37%
Vendor User

44. Incomplete Value
Propositions
56% Business benefits 37%
Vendor Case studies User
Proof
ROI

45. 5. IT is riding the wave

46. Cloud makes IT
manageability LESS
complex
2 012
2 011

47. Cloud lowers TCO
5 7%
2011 5 3%
2012

48. 6. We have
work to do.

49. What’s inhibiting adoption?
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other specified
Expense
Other unspecified

50. What’s inhibiting adoption?
Security
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other specified
Expense
Other unspecified

51. What’s inhibiting adoption?
Security 55%
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other

52. What’s inhibiting adoption?
Security 55%
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other

53. What’s inhibiting adoption?
Security 55%
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other, please specify
Expense
Other

54. What’s inhibiting adoption?
Lack of Transparency
Lack of Standards
Lack of Integration
Lack of Skills

55. What’s inhibiting adoption?
Security 55%
Regulatory/Compliance
Lock-in
Interoperability
Privacy
Network bandwidth
Reliability
Complexity
Pricing
Other specified
Expense
Other unspecified

56. “Improvements in operational efficiency and business agilit-
are driving dramatic results for organizations adopting cloud
technologies. The benefits of PaaS and SaaS platforKs are
clear and measurable for organizations seeking to exdand
their IT capacit- by taking advantage of cloud-­‐based serPice
platforKs. We're confident that open approaches to the
cloud, like our OpenSaaS platforK Drpal Gardens, will
eliminate lock-­‐in as a inhibitor to cloud adoption and
accelerate innovation in this market.”

57. 7. Racing into the future.

58. Before After
Cloud

59. Before After
Cloud
Washed

60. Before After
Cloud
Formed

61. Media & Entertainment
Formations…

62. Media & Entertainment
Social,
Collaboration

63. Media & Entertainment
Social,
Collaboration
Mobile
(+ Location)

64. Media & Entertainment
Social,
Collaboration
Mobile
(+ Location)
eCommerce
(+ Payments)

65. Media & Entertainment
Social,
Collaboration
Mobile
(+ Location)
eCommerce
(+ Payments)
Big Data
(+ Analytics)

66. Media & Entertainment
Social,
Collaboration
Mobile
(+ Location)
eCommerce
(+ Payments)
Big Data
(+ Analytics)

67. “GigaOM Pro surPeys of IT decision makers confirK the tight
connection betgeen big data analyYics and cloud
computing,” said David Card, VP of research for GigaOM
Pro. “And we’re also seeing scale, agilit- and cost-­‐savings as
market drivers, balanced against securit- concerSs and a
dearYh of skilled data scientists.”

68. predictions are tricky, especially when they involve the future

69. Before After

70. Before After
{
then
}
{
future
}
{
if
}
{
else
}

71. Before After
{breakout}
Yes
No

72. rain makers
Vendors
Users
Backup, Archiving, DR, BC
Collaboration
Analytics
72

73. “These findings reflect activit- we're seeing in the market today.
More and more companies are t,sting business critical
fnctions to the cloud. Mimecast alone provides email securit-
and archiving for 1.4 million users in 5,000 companies.”

74. 8. Investment is
rocking.
Japan’s Kodo Drummers

75. Venture Cloud Financing in 2010: $1.6 Billion
Source: Venture Source April, 2012

76. Venture Cloud Financing in 2011: $2.4 Billion
Source: Venture Source April, 2012

77. $Bn +

78. WHAT
we learned
1. Software = Cloud
2. SaaS rules. PaaS pops.
3. Time to plug in your hybrid.
4. The mission is critical.
5. IT is riding the wave.
6. We still have work to do.
7. Racing into the future.
8. Investment is rocking.

79. For
more
commentary
see:
hAp://mjskok.com/resource/2012-­‐future-­‐cloud-­‐compuGng-­‐2nd-­‐annual-­‐survey-­‐results

80. FUTURE OF CLOUD COMPUTING
2012
ge.com/
hAp://w ww.northbrid
Gng
cloud-­‐compu
mjskok.com @mjskok
#futurecloud