Consumer Cloud Computing:
Challenges Remain Despite Rapid Growth
Consumer cloud computing: the stack
                                                                                    Computing ecosystem that
                                                                                    encompasses a range of
                                                                                    computing devices, many of
                                                                                    which are portable/mobile, that
                                                                                    are connected to the
Collaboration Apps                                                                  internet, through which the
                                                                                    consumers are able to
                          Communication Apps                                        seamlessly
 App Stores                                                                         create, store, access, share and
OpenAppMkt
Getjar
                                                                                    synchronize their data, software
Handmark                                                                            / applications, social
                                                Content Apps
                         Online Storage                                             networks, entertainment content
                                                                                    etc.; all of which are always
                         Skydrive
     PC                  DropBox
                                                                                    available and can be accessed
          Smart phone                                         Social
                                                              Networking
                                                                                    via apps residing on the devices
                     Tablets              Browser             Apps                  or through browsers
                                          Internet explorer
                                          Mozilla Firefox
                               Consoles   Google chrome

                                     TV                            Search Apps


                                     Camera
                                                  OS / Platform
                                                 Windows            Entertainment
                                     Printer     Mac                Access Apps
Cloud service usage continues to grow
         80%
                  76%            69%            59%




   52%
           44%
                 38%       36%
                                       34%    32%     20%




                        Services used at least once a month
Consumer cloud computing maturity model

                                                                                      All devices and
                                                                                      software, fully
                                                                                       synchronized

                                                                                   Multiple devices, all
                                                                                   connected to cloud
                                                   Devices sync (e.g. iCloud)

                                                                                  All software as cloud
                                                                                      based services
                                                    Wide range of apps on
                                Online storage         phone/tablets
 Basic Social Networking
        (Facebook)

       Web chat                                                                  100% on cloud devices
                           Mainstream Smartphone   Specific cloud apps on PC       (e.g. Chrome Book)
       Web email                / tablet apps

         Tablets
 Smartphone / Feature-
        phone
                                   Level 1                  Level 2                      Level 3
           PC

       LEVEL 1                   LEVEL 2                 LEVEL 3                        LEVEL 4
     Basic online            Moderate “app”         Heavy “app” users;          “Fully on cloud” users
     consumers               users; largely on     usage across devices
                              phone/tablet
Over 1/3 of online consumers are
not “aware” of cloud computing


       66%
                 61%
         US
                 Germany                 44%
                                              India



                 Increase /   Decrease from previous wave
Awareness levels higher among
certain segments


               66                60                48
     Male
               59                52                37
                       Age              Age
                     21-25 yrs        46-60 yrs




    Working    75                71                83
      in IT
    industry   71                65                71
                    Smartphone         Tablet /
                                      Ultrabooks
                                                      Increase   Wave 2
                                                   figs in %     Wave 1
Less than 25% understand cloud computing

“
     Store data externally on the web       Transferring information from          Access data on the internet
                                            one device to another
                                                                                 Saving files to an online server rather
 Something like Dropbox, you
                                      Networking of different                    than a physical hard drive device
 can store your data online and
 retrieve from anywhere               technologies                Private online database
                                                                  for private users               Online search
    A new way of chatting        Stuff in the cloud
                                                            Online storage
                                                                               Storing your personal files on the
                It is a digital external hard drive that can store and         internet instead of on a physical



                                                                                                                    ”
                give information to various devices connected to it            computer or location




  23%                       24%
                              Germany
                                                      17%
        US

                                                          India



 Increase /   Decrease from previous wave
Awareness that YouTube, Facebook, Gmail
etc… work on cloud is very low…


 80%           76%           69%                  59%
       40%             31%          43%                        30%




 52% 24%     44% 38%    38% 29%    32% 22%           34% 19%



                                          Uses at least once a month

                                          Aware that services work on cloud
Social media buzz analysis confirms the
lack of understanding
                850803
                                          Timeline: March 1st, 2012 – March 1st , 2013
                                          Geography: US, Germany, India
                                          Language: English
                                          Tool: Sysomos




                                              214638


                               24732                                     9478

            Cloud Computing
                     Consumer Cloud Computing
                                            Evernote             Evernote+Cloud
Concerns about using cloud (US)
Privacy                                     63%

Security                                 58%

It could be impossible to access
my data if I change phones or         39%
some other devices

Internet connection is not
robust to access consumer          32%
cloud continuously

Keep track of log in details
for different clouds
                                   32%

Hassle to keep data organized
when I use more than one        30%
cloud service / product

Getting stuck with one
cloud service provider as it   29%
is difficult to switch
                                                  Increase /   Decrease from previous wave
Privacy and security as top concerns

                                        49                      62            45
         Privacy
                                        57                      69            53
                            Tablet / Palmtop /      Male             iPad
                          Ultrabooks / Netbooks


                                        56                      50
    Security
                                        64                      56
                              Male                Work for IT
                                                   industry

   It could be
   impossible to access
                                        45                      38            39                 39
   my data if I change
   phones or some
   other devices                        36                      29            31                 30
                            Tablet / Palmtop /      Male             Female        Work for IT
                          Ultrabooks / Netbooks                                     industry

                                                                                      Increase   Wave 2
                                                                                   figs in %     Wave 1
Overall Cloud Readiness at a country level
has grown, but still have a long way to go
                 Consumer Cloud Readiness Scores (maximum – 100%)




                    US
                                     Germany
          US & Germany
   Concerns over privacy, security                                                          India
     holding consumers back                                         India       Low understanding about cloud
                                                                               computing technology, also weak
                                                                                   technology infrastructure

                                          Increase /   decrease from previous wave




Consumer Cloud Readiness (CCR) Index was constructed with three sub-indexes: Cloud Technology
Adoption Index, Country Cloud Infrastructure Score and New Technology Inclination Index
The state of consumer cloud

                          Lower level of
Usage continues to                           Concerns remain
                          understanding
   rise, though                                  strong
                           about cloud
      skewed
                            computing



                                            Lack of “openness”
  100% fail-proof             Massive            - creating
internet is still not    fragmentation of    ecosystem siloes;
     a reality             cloud services     device/services
                                                   lock-in




                        …so what are the implications?
What we have learned
1. While the adoption and usage of consumer cloud continues to grow
   rapidly, driven by smart phones, tablets and app stores, it still skews towards
   applications which are delivered through the cloud by default and from “Ver 1.”

2. On-premise PC applications - especially those that touch personal content and
   content creation - will struggle to move to the cloud, unless consumers really
   “understand” cloud computing, and their concerns are addressed

3. The multitude of apps, devices, storage services are leading to increased
   fragmentation of cloud usage and this is beginning to emerge as a key
   challenge, with concerns around data loss and ease of use increasing.

4. On the other hand, “ecosystem silos” (e.g. iCloud) and device lock in will
   prevent seamless synchronization across devices and services.

5. 100% cloud based personal computing will not take off unless these issues are
   addressed by IT vendors.
Final recommendations
1. Vendors need to do much better job in
   evangelizing the consumer cloud.

2. Address the privacy and data security concerns, in
   a much more open manner, with clear and
   simpler terms and conditions. The consumer need
   to clearly understand redress mechanisms.

3. While the pressures to monetize the consumer
   cloud is a reality, try to be fair and transparent in
   business models (e.g. Instagrams attempt to sell
   customers photos)

4. Even if “ecosystem silos” are inevitable, think
   about making cross platform synchronization
   much simpler.
About us
Transformation through integration:
Realizing the full potential of your information
blueocean is a leading next-generation services organization with a deep focus on market
intelligence, social media and data analytics.

Since we live in a highly dynamic and multi-dimensional world, we believe that the most
effective business decisions come from the synthesis of market information and not from
one-dimensional data sources.

Combining the talent, speed and cost benefits of a flat world, along with our experience in
scalable delivery, we deliver authentic, more complete insights to companies across all
major industry sectors.

 For questions, or a copy of the full report:
 Ajith Sankaran
 Senior Vice President – Market Intelligence
 marketintelligence@blueoceanmi.com | www.blueoceanmi.com

Consumer Cloud Computing: Challenges Remain Despite Rapid Growth

  • 1.
    Consumer Cloud Computing: ChallengesRemain Despite Rapid Growth
  • 2.
    Consumer cloud computing:the stack Computing ecosystem that encompasses a range of computing devices, many of which are portable/mobile, that are connected to the Collaboration Apps internet, through which the consumers are able to Communication Apps seamlessly App Stores create, store, access, share and OpenAppMkt Getjar synchronize their data, software Handmark / applications, social Content Apps Online Storage networks, entertainment content etc.; all of which are always Skydrive PC DropBox available and can be accessed Smart phone Social Networking via apps residing on the devices Tablets Browser Apps or through browsers Internet explorer Mozilla Firefox Consoles Google chrome TV Search Apps Camera OS / Platform Windows Entertainment Printer Mac Access Apps
  • 3.
    Cloud service usagecontinues to grow 80% 76% 69% 59% 52% 44% 38% 36% 34% 32% 20% Services used at least once a month
  • 4.
    Consumer cloud computingmaturity model All devices and software, fully synchronized Multiple devices, all connected to cloud Devices sync (e.g. iCloud) All software as cloud based services Wide range of apps on Online storage phone/tablets Basic Social Networking (Facebook) Web chat 100% on cloud devices Mainstream Smartphone Specific cloud apps on PC (e.g. Chrome Book) Web email / tablet apps Tablets Smartphone / Feature- phone Level 1 Level 2 Level 3 PC LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Basic online Moderate “app” Heavy “app” users; “Fully on cloud” users consumers users; largely on usage across devices phone/tablet
  • 5.
    Over 1/3 ofonline consumers are not “aware” of cloud computing 66% 61% US Germany 44% India Increase / Decrease from previous wave
  • 6.
    Awareness levels higheramong certain segments 66 60 48 Male 59 52 37 Age Age 21-25 yrs 46-60 yrs Working 75 71 83 in IT industry 71 65 71 Smartphone Tablet / Ultrabooks Increase Wave 2 figs in % Wave 1
  • 7.
    Less than 25%understand cloud computing “ Store data externally on the web Transferring information from Access data on the internet one device to another Saving files to an online server rather Something like Dropbox, you Networking of different than a physical hard drive device can store your data online and retrieve from anywhere technologies Private online database for private users Online search A new way of chatting Stuff in the cloud Online storage Storing your personal files on the It is a digital external hard drive that can store and internet instead of on a physical ” give information to various devices connected to it computer or location 23% 24% Germany 17% US India Increase / Decrease from previous wave
  • 8.
    Awareness that YouTube,Facebook, Gmail etc… work on cloud is very low… 80% 76% 69% 59% 40% 31% 43% 30% 52% 24% 44% 38% 38% 29% 32% 22% 34% 19% Uses at least once a month Aware that services work on cloud
  • 9.
    Social media buzzanalysis confirms the lack of understanding 850803 Timeline: March 1st, 2012 – March 1st , 2013 Geography: US, Germany, India Language: English Tool: Sysomos 214638 24732 9478 Cloud Computing Consumer Cloud Computing Evernote Evernote+Cloud
  • 10.
    Concerns about usingcloud (US) Privacy 63% Security 58% It could be impossible to access my data if I change phones or 39% some other devices Internet connection is not robust to access consumer 32% cloud continuously Keep track of log in details for different clouds 32% Hassle to keep data organized when I use more than one 30% cloud service / product Getting stuck with one cloud service provider as it 29% is difficult to switch Increase / Decrease from previous wave
  • 11.
    Privacy and securityas top concerns 49 62 45 Privacy 57 69 53 Tablet / Palmtop / Male iPad Ultrabooks / Netbooks 56 50 Security 64 56 Male Work for IT industry It could be impossible to access 45 38 39 39 my data if I change phones or some other devices 36 29 31 30 Tablet / Palmtop / Male Female Work for IT Ultrabooks / Netbooks industry Increase Wave 2 figs in % Wave 1
  • 12.
    Overall Cloud Readinessat a country level has grown, but still have a long way to go Consumer Cloud Readiness Scores (maximum – 100%) US Germany US & Germany Concerns over privacy, security India holding consumers back India Low understanding about cloud computing technology, also weak technology infrastructure Increase / decrease from previous wave Consumer Cloud Readiness (CCR) Index was constructed with three sub-indexes: Cloud Technology Adoption Index, Country Cloud Infrastructure Score and New Technology Inclination Index
  • 13.
    The state ofconsumer cloud Lower level of Usage continues to Concerns remain understanding rise, though strong about cloud skewed computing Lack of “openness” 100% fail-proof Massive - creating internet is still not fragmentation of ecosystem siloes; a reality cloud services device/services lock-in …so what are the implications?
  • 14.
    What we havelearned 1. While the adoption and usage of consumer cloud continues to grow rapidly, driven by smart phones, tablets and app stores, it still skews towards applications which are delivered through the cloud by default and from “Ver 1.” 2. On-premise PC applications - especially those that touch personal content and content creation - will struggle to move to the cloud, unless consumers really “understand” cloud computing, and their concerns are addressed 3. The multitude of apps, devices, storage services are leading to increased fragmentation of cloud usage and this is beginning to emerge as a key challenge, with concerns around data loss and ease of use increasing. 4. On the other hand, “ecosystem silos” (e.g. iCloud) and device lock in will prevent seamless synchronization across devices and services. 5. 100% cloud based personal computing will not take off unless these issues are addressed by IT vendors.
  • 15.
    Final recommendations 1. Vendorsneed to do much better job in evangelizing the consumer cloud. 2. Address the privacy and data security concerns, in a much more open manner, with clear and simpler terms and conditions. The consumer need to clearly understand redress mechanisms. 3. While the pressures to monetize the consumer cloud is a reality, try to be fair and transparent in business models (e.g. Instagrams attempt to sell customers photos) 4. Even if “ecosystem silos” are inevitable, think about making cross platform synchronization much simpler.
  • 16.
    About us Transformation throughintegration: Realizing the full potential of your information blueocean is a leading next-generation services organization with a deep focus on market intelligence, social media and data analytics. Since we live in a highly dynamic and multi-dimensional world, we believe that the most effective business decisions come from the synthesis of market information and not from one-dimensional data sources. Combining the talent, speed and cost benefits of a flat world, along with our experience in scalable delivery, we deliver authentic, more complete insights to companies across all major industry sectors. For questions, or a copy of the full report: Ajith Sankaran Senior Vice President – Market Intelligence marketintelligence@blueoceanmi.com | www.blueoceanmi.com

Editor's Notes

  • #4 Q8b. Please indicate services, which you use at least once a month from the list below. [PN: ASK FOR EACH SERVICE AWARE IN Q8a] [PN: MULTIPLE RESPONSE] SELECT ALL THAT APPLYYou TubeGmailYahoo mailPicasaAmazon Cloud DriveApple’s cloudTurboTax OnlineGoogle CalendarFacebookZing games including Farmville, Mafia Wars & OthersSpotifyTwitterLinkedInFlickRIntuit Money Manager or Quicken or MintMicrosoft SkypeNetflixMicrosoft Office 365 Google docsGoogle DriveGoogle PlayGoogle +Microsoft Outlook.comMicrosoft SkydriveApple’s iTunesMicrosoft XboxMicrosoft YammerMicrosoft Windows 8Microsoft BingQuickofficeApple pagesDocuments to GoSlideShareScribdDropboxBoxSugarSyncAmazon CloudplayerAmazon Cloud storageQuickenMintMicrosoft Outlook Microsoft WordMicrosoft Excel Microsoft PowerpointMicrosoft SharepointMicrosoft Lync
  • #6 Q2. From the list below, please indicate technologies you are aware? [PN: MULTIPLE RESPONSE] SELECT ALL THAT APPLY Cloud computing is listed as one of the options when asked about “technologies consumer is aware”Above Cloud computingSocial Networking sites Total:80%, US:81%, Germany:77%, India:83% 2) New device form factors such as Tablets/ Ultra booksTotal:73%, US:69%, Germany:79%, India:71%3) Mobile applications such as Mobile Banking, Mobile CommerceTotal:67%, US:69%, Germany:67%, India:65%4) Internet TV Total:63%, US:65%, Germany:68%, India:56%5) Cloud computing technologyTotal:57%, US:66%, Germany:61%, India:44%Below Cloud computing6) Data Services such as Commerce, Communications, Information and entertainment via 3G technologies, WI-FI, GPRS, High speed data connection etc – Total:55%, US:58%, Germany:53%, India:55%7) Daily Deal services such as GroupOn, Snapdeal, Living Social, Dealmap (Google), Facebook deals etc – Total:54%, US:66%, Germany:43%, India:56%8) Location based services such as Foursquare, Gowalla, Loopt etcTotal:30%, US:48%, Germany:24%, India:19%9) Natural User Interface/Gesture based computing such as Eye tracking, 3D figure trackingTotal:28%, US:35%, Germany:29%, India:21%Total (base) – Wave1: 905, Wave2: 955US (base) – Wave1: 300, Wave2: 301Germany (base) – Wave1: 305, Wave2: 343India (base) – Wave1: 300, Wave2: 311
  • #7 Q2. From the list below, please indicate technologies you are aware? [PN: MULTIPLE RESPONSE] SELECT ALL THAT APPLY Cloud computing is listed as one of the options when asked about “technologies consumer is aware”Above Cloud computingSocial Networking sites Total:80%, US:81%, Germany:77%, India:83% 2) New device form factors such as Tablets/ Ultra booksTotal:73%, US:69%, Germany:79%, India:71%3) Mobile applications such as Mobile Banking, Mobile CommerceTotal:67%, US:69%, Germany:67%, India:65%4) Internet TV Total:63%, US:65%, Germany:68%, India:56%5) Cloud computing technologyTotal:57%, US:66%, Germany:61%, India:44%Below Cloud computing6) Data Services such as Commerce, Communications, Information and entertainment via 3G technologies, WI-FI, GPRS, High speed data connection etc – Total:55%, US:58%, Germany:53%, India:55%7) Daily Deal services such as GroupOn, Snapdeal, Living Social, Dealmap (Google), Facebook deals etc – Total:54%, US:66%, Germany:43%, India:56%8) Location based services such as Foursquare, Gowalla, Loopt etcTotal:30%, US:48%, Germany:24%, India:19%9) Natural User Interface/Gesture based computing such as Eye tracking, 3D figure trackingTotal:28%, US:35%, Germany:29%, India:21%Total (base) – Wave1: 905, Wave2: 955US (base) – Wave1: 300, Wave2: 301Germany (base) – Wave1: 305, Wave2: 343India (base) – Wave1: 300, Wave2: 311
  • #8 Q2a. According to you what is Cloud computing. Please explain what you know about cloud computing technology? [PN: ASK THOSE WHO ARE AWARE OF CLOUD COMPUTING TECHNOLOGY (CODED 3 IN Q2)] [PN: OPEN END] [PN: NO RESTRICTION ON NUMBER OF WORDS] RECORD VERBATIM
  • #9 Q8b. Please indicate services, which you use atleast once a month from the list below. [PN: ASK FOR EACH SERVICE AWARE IN Q8a] [PN: MULTIPLE RESPONSE] SELECT ALL THAT APPLYQ8c. Please tell us for the services you are aware, if you know that the service works on cloud computing technology. [PN: ASK FOR EACH SERVICE AWARE IN Q8a] [PN: MULTIPLE RESPONSE] SELECT ALL THAT APPLY You TubeGmailYahoomailPicasaAmazon Cloud DriveApple’s iCloudTurboTax OnlineGoogle CalendarFacebookZynga games including Farmville, Mafia Wars & OthersSpotifyTwitterLinkedInFlickRIntuit Money Manager or Quicken or MintMicrosoft SkypeNetflixMicrosoft Office 365 Google docsGoogle DriveGoogle PlayGoogle +Microsoft Outlook.comMicrosoft SkydriveApple’s iTunesMicrosoft XboxMicrosoft YammerMicrosoft Windows 8Microsoft BingQuickofficeApple pagesDocuments to GoSlideShareScribdDropboxBoxSugarSyncAmazon CloudplayerAmazon Cloud storageQuickenMintMicrosoft Outlook Microsoft WordMicrosoft Excel Microsoft PowerpointMicrosoft SharepointMicrosoft Lync
  • #11 Q16. Please indicate the main 3 issues you are aware/ have faced while using consumer cloud. [PN: TOP 3 MENTIONS IN THE ORDER OF PRIORITY 1/2/3. RANK 1 FOR THE ISSUE FOR WHICH YOU HAVE THE HIGHEST CONCERN, RANK 2 FOR NEXT AND RANK 3 FOR THE NEXT ISSUE]Data shown here is Rank1+2+3Hassle to keep data organized when I use more than one cloud service / productIt could be impossible to access my data if I change phones or some other devices Privacy concerns– I don’t want anyone to look at my dataSecurity – I don’t trust personal cloud to be safe from intrusionsGetting stuck with one cloud service provider as it is difficult to switchKeep track of log in details for different cloudsInternet connection is not robust to access consumer cloud continuouslyIntegration of systemsTotal (base) – Wave1: 586, Wave2: 606US (base) – Wave1: 180, Wave2: 168Germany (base) – Wave1: 175, Wave2: 174India (base) – Wave1: 231, Wave2: 264
  • #12 Q16. Please indicate the main 3 issues you are aware/ have faced while using consumer cloud. [PN: TOP 3 MENTIONS IN THE ORDER OF PRIORITY 1/2/3. RANK 1 FOR THE ISSUE FOR WHICH YOU HAVE THE HIGHEST CONCERN, RANK 2 FOR NEXT AND RANK 3 FOR THE NEXT ISSUE] DATA SHOWN IS ONLY FOR US, RANK 1+2+3 Hassle to keep data organized when I use more than one cloud service / productIt could be impossible to access my data if I change phones or some other devices Privacy concerns– I don’t want anyone to look at my dataSecurity – I don’t trust personal cloud to be safe from intrusionsGetting stuck with one cloud service provider as it is difficult to switchKeep track of log in details for different cloudsInternet connection is not robust to access consumer cloud continuouslyIntegration of systems
  • #13 About the Index:There are three sub-indexes: Cloud Technology Adoption Index, Country Cloud Infrastructure Score and New Technology Inclination IndexOut of these three sub-indices, two are based on the responses in the survey instrument whereas one is based on the secondary data. Cloud Technology Adoption Index:This index is combination of two indices, one of them is based on the current usage of cloud services and the other is based on the willingness to use the cloud based services in future. New Technology Inclination Index:This index is calculated to gauge the inclination of user to the awareness or curiosity towards new technology. The purpose was that even if a respondent is unaware of cloud technology, he/she may be inclined to the other newer or latest technology which may come handy in adopting cloud technology for them.Country Cloud Infrastructure Index:This index is derived from the secondary data and help us to gauge the level of current exposure to infrastructure a country have to adopt cloud technology.