This document provides an overview of successfully adopting cloud computing. It discusses the changing role of the CIO, the rise of cloud computing, drivers of cloud adoption, current adoption trends, and recommendations for implementing cloud strategies. The key points are: 1) CIOs are taking on more strategic roles to enable business growth through technologies like mobility, social media, and cloud computing. 2) Cloud computing presents opportunities for cost savings, scalability, and avoiding data center expansion. However, implementation requires a long-term strategy and partner. 3) Current cloud adoption focuses on applications like web hosting, email and backup storage, but adoption of other applications is expected to grow significantly in the next two years.

1. Successfully Adopting the Cloud
Sponsored by:
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2. Table of Contents
Executive Summary..........................................................
03
The Changing Role of the CIO..........................................
04
The Global Rise of Cloud Computing...............................
05
The Cloud Computing Potential.......................................
06
Market Awareness and Adoption Drivers........................
07
Adoption Trends..............................................................
08
Implementation Process..................................................
09
The Road Ahead...............................................................
10
Appendix..........................................................................
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3. Executive Summary
What you will learn:
o
Major technology trends in mature European markets
and their impact on the CIO role.
o
Cloud computing current adoption and potential.
o
How to choose your cloud provider.
Western Europe hosts a mature IT market, where companies invest
heavily in both services and software. In such markets, conventional
data center services are already well established and experiencing
moderate growth rates.
Cloud computing is forecasted to present the fastest growth rate
within data center services in mature economies, as technology
investments are now being employed in “front office” activities
such as mobility, social networks and communication.
This shift from back office to front office investments is directly
impacting IT leaders and positioning them as strategic decision
makers within the company. In this context, CIOs must act as
enablers of innovation, but they still have to deal with challenges
such as capital budget constraints, high maintenance costs and
growth of storage requirements.
Cloud computing can be an IT department’s ally in mitigating these
challenges, as the main drivers for cloud adoption are all business
focused: cost savings, business continuity, scalability and avoiding
data center expansion.
In order to develop a consistent cloud strategy, a company must
bear in mind that cloud implementation is complex and involves
strategic areas of the business. As a result, it is important that
companies venturing into the cloud have a well-defined long term
Cloud strategy as well as a strategic partner that will not only
provide cloud services, but will help the company find the best fit
according to its unique needs.
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4. The Changing Role of the CIO
We have seen an enormous potential for the CIO to
bring innovation and breaking competitive edges to our
company.
CIO – Retailer
Technology leaders are increasingly facing two types of business challenges. On the
one hand, the competitive global landscape requires greater efficiency and budget
constraints, requiring the business to rein in spending and focus on margins. At the
same time, new technologies create unprecedented opportunities to grow revenue,
expand services, and enter new markets. It is left to IT to determine how to balance
these two types of challenges: to simultaneously contract and expand operations, to
build resources in some areas while cutting back in others.
In addition, IT leaders still have to deal with operating issues, such as the need to
support storage growth, strengthen business continuity and disaster recovery plans,
meet IT governance requirements and ensure high levels of security in the IT
environment.
Technology Trends in Mature European Markets
Anywhere,
anytime, any
device
Social Business
Consumerization
of IT
Globalization
Data-driven
decisions
IT is no longer a supplier, but a
strategic enabler of business
growth
Innovation
The new IT department must create and deliver applications and business tools quickly,
securely, cost-effectively, and with high levels of performance and availability.
Source: Frost & Sullivan
Over the last decade, businesses have made major investments in “back office”
functionality. In the future, we will see a strong focus on the “front office” driving by
trends such as mobility, social networks and communication.
In this context, the concept of information technology is moving to business
technology. IT leaders are taking strategic roles within the company, enabling
business growth, providing better interaction with customers and helping to create
competitive advantages.
4

5. The Global Rise of Cloud Computing
Managing an in-house data center brings several challenges for IT leaders. According
to Frost & Sullivan research, 40 percent of IT executives consider capital budget
constraint as one of the most important challenge they face when managing a data
center. High maintenance costs and growth of storage requirements were also
considered constraints by 35 percent and 30 percent of the sample respectively.
These and other challenges such as technology updates and slow performance of
applications position IT infrastructure outsourcing as an alternative to mitigate the
aforementioned problems and to enable IT leaders to focus on more strategic
activities.
Data center services are developing fast to meet the requirements of the new IT
environment, and cloud computing has emerged as a game changer.
Data Center Services Evolution
Colocation
Dedicated Hosting
Disaster Recovery
Storage
SaaS
IaaS
PaaS
Introduction
Time
Growth
Maturity
Decline
Source: Frost & Sullivan
Among data center services, cloud computing is the service that will experience the
fastest growth rate, since enterprises will increasingly turn to cloud providers to
avoid expanding or replacing their on-premises data center infrastructure, especially
in a volatile economy. By utilizing the shared facilities of commercial data center
providers, enterprises can limit their capital expenditures, while expanding their
overall server resources.
The burgeoning opportunities in the cloud have led providers of traditional data
center services to add this business model to their portfolios. However, cloud
economics are different from other data center services, such as co-location or
managed hosting
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6. The Cloud Computing Potential
Cloud can be defined as a flexible and scalable shared environment that uses
virtualization technologies to create and distribute computing resources to users
on an as-needed basis, accessed via the Internet browser and delivered over a
network.
Cloud Computing Characteristics
IT Architectures
Pay per Use
Browser-based
client
Distributed
computing
Cloud Computing
√
√
√
Utility Computing
√
Grid Computing
Virtualization
Tecnologies
√
√
Software as a Service
√
Platform as a Service
√
Web Services
√
Source: Frost & Sullivan
The question is no
longer whether to
enter the cloud. If
your company is
serious about
competing in the
marketplace, the
cloud represents your
best way to
transform IT to
support your
company’s most
urgent business
needs.
Frost & Sullivan
More than a technological revolution, Cloud Computing is the ultimate evolution of a
series of environments and technologies, using pay per use characteristics of Utility
Computing, distributed computing of Grid Computing, the scalability and efficiency of
virtualization technologies and the browser-based client of a series of environments
such as Software as a Service.
There are three different models to deploy the Cloud:
Public cloud: the infrastructure is hosted by a third-party provider and is shared
among multiple customers. Each customer is charged for computing resources on a
metered or pay-as-you-go basis.
Private Cloud: computing resources are dedicated to a single enterprise, these
resources are shared and allocated exclusively among the enterprise’s own
applications. Private clouds can be either hosted by a third-party cloud provider, or be
constructed in the enterprises’ own data center.
Hybrid Cloud: relates to the combination of public and private cloud, in which, for
example, the highly scalable and cost-effective shared environment of the public
cloud can be used to run less mission critical workloads while the extremely vital and
confidential information is run and stored in secure and individual private clouds.
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7. Market Awareness and Adoption Drivers
The market awareness of IaaS solutions is increasing. According to Frost & Sullivan
research, from 2011 to 2012 the percentage of companies not familiar with the IaaS
concept was reduced from 40 percent to 25 percent. Despite the increasing market
awareness, 40 percent of the companies are still studying the benefits of IaaS
adoption.
While only 15 percent of mature market companies currently use IaaS, that adoption
level is expected to grow within the next two years, given the stated intention of 20
percent of the companies to implement IaaS during this period.
Top Drivers for Choosing Cloud Infrastructure Services
Decreasing costs
55%
Strengthening business continuity plans
38%
Scalability
35%
Preparing for disaster recovery
35%
Improving security/compliance
25%
Deferring/avoiding data center expansion
23%
Shifting costs from capital to operating…
21%
Deferring server purchases or upgrades
20%
Earning a high ROI
19%
Decreasing IT staff
15%
Striving to "go green"
-10%
11%
0%
10%
20%
30%
40%
50%
60%
% of Respondents
Source: Frost & Sullivan
Sample size: 108
When thinking about adopting infrastructure services, the main driver is cost savings,
followed by the need to ensure business continuity and creating a scalable
environment. Other drivers include disaster recovery plans and avoiding data center
expansion.
As opposed to popular wisdom, which holds that security and compliance are hurdles
to cloud adoption, Frost & Sullivan research shows that 25 percent of the companies
believe that adopting cloud computing can increase security levels and compliance.
Therefore, while security and compliance are still concerns when it comes to
information and workloads hosted in the cloud, they do not always restrain IaaS
adoption.
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8. Adoption Trends
We started to test IaaS in 2012 and we are very satisfied
with the business agility we now have.
CIO – Healthcare Industry
Applications Deployed in IaaS
Website hosting
44%
Email
40%
Backup storage
29%
39%
Backup recovery
31%
36%
CRM applications
31%
Proprietary or custom apps
31%
HR management
31%
Desktop management
10%
34%
32%
Archival storage
7%
43%
32%
Collaboration or UC
10%
38%
36%
Test and development
11%
6%
40%
5%
32%
6%
42%
9%
32%
27%
28%
6%
7%
40%
5%
Tier 1 storage (high availability)
25%
Seasonal or adhoc bursts
23%
33%
6%
ERP applications
23%
32%
6%
Short-term marketing programs
22%
32%
11%
0%
43%
6%
10% 20% 30% 40% 50% 60% 70% 80% 90%
Currently Use and Plan to Continue Using
Plan to Implement Within 2 Years
Currently Use but Plan to Stop Using Within 2 Years
Source: Frost & Sullivan
Sample size: 108
Companies are increasing the number of applications they have placed in the cloud.
In 2012 the average number of applications was five, while in 2011 it was only three
and in the next two years that number is expected to double.
Website hosting and email are still the main applications placed in the cloud.
However, this scenario is expected to change in the next two years when backup
storage and backup recovery become the most adopted applications.
Tier 1 storage will receive significant investments within the next two years. Other
applications such as CRM and Unified Communications are also likely to represent
new, built-for-the-cloud software solutions. Nevertheless, so far enterprises have
shown reluctance to tackle the challenge of migrating complex legacy systems to the
cloud.
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9. Implementation Process
Creating a consistent cloud strategy is not an easy task. To ensure your company
gains full value from the cloud, you must develop, implement, and manage a
cohesive plan that covers not only current needs, but also future requirements
Choosing a strategic partner that helps you in your journey into the cloud is a key
factor for success.
Most important Features or Attributes in Selecting
a Cloud Provider
Ease of migration to Cloud environment
Availability (uptime) SLAs
Low price
Scalability
Compliance assurance
Application performance SLAs
Easy to use management system
Consistent pricing
Ability to change Cloud providers easily
SLAs for data loss or leakage
Escalating tiers of security options
SLAs for unauthorized access data
Open source platform
Billing options
Separate services for storage and computing
Integrated Platform as a Service
Bursting from private data center to Cloud
Integrated platform for all Cloud models
Managed service options
38%
30%
28%
25%
19%
18%
16%
15%
15%
13%
12%
12%
11%
10%
8%
8%
7%
7%
6%
0%
5%
Cloud is complex
and touches
strategic parts of
your business. As
such, make sure you
have cloud partners
that will invest time
in developing cloud
processes that fit
the unique needs of
your company.
Frost & Sullivan
10% 15% 20% 25% 30% 35% 40%
% of Respondents
Source: Frost & Sullivan
Sample size: 108
Fifty-three percent of the companies prefer cloud and network services from a single
provider. On average companies currently use two cloud service providers and plan
to add a third provider within the next two years. This may be due to a lack of
perceived value associated with centralizing cloud activity with a single provider or
problems in finding the right provider match.
When respondents were asked to name their top three criteria for selecting a cloud
provider, fourteen different attributes emerged. This shows that there is still lack of
consistency in what the market is looking for in a cloud provider.
The most important aspect selected by respondents was ease of migration. This
relates to IT managers’ concerns about the risks of cloud migration. Other most
important factors, including availability, price and scalability, highlight companies’
intentions to partner with providers who help them to mitigate business challenges,
such as cost structure, security and compliance.
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10. The Road Ahead
Cloud computing can be a powerful tool to help companies mitigate
business challenges. These include the need for availability and security
while increasing flexibility and scalability, as well as demand for less
complex and easy to manage environments.
Despite its benefits, cloud implementation is complex and involves strategic
areas of the business. When defining its cloud requirements, a company
should bear in mind that the cloud is not an one-time initiative, but an ever
evolving journey. Therefore in order to ensure a successful and consistent
cloud strategy it is important to develop a plan that encompasses both
current and future needs and adopt a strategy that enables the company to
move into the cloud at its own pace .
Furthermore, companies should carefully select a cloud partner and not
merely a provider. A cloud partner can help to develop the roadmap that
will cut through the complexity of cloud decisions, while understanding the
company’s specific needs in order to deliver the right level of service
required.
Key Recommendations for CIOs regarding Cloud
Don’t forget: Cloud is a Business Enabler
Assemble a team. Focus on Business benefits of Cloud Computing. Don’t forget Cloud
will have a positive effect on both CFO and CEO’s business objectives.
Partner with Security & Networking Experts
Security & Networking are King in the Cloud Era.
Start Small – you need quick wins to grain traction
Cloud Computing is not a “one size fits all” technology. Clients will have different
uses for Cloud Computing, so start small.
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11. Appendix
© 2012 Frost & Sullivan, Todos os direitos reservados
Este documento contém informações altamente confidenciais e de propriedade
exclusiva da Frost & Sullivan. Nenhuma parte pode ser divulgado, citado, copiado ou
reproduzido sem a autorização por escrito da Frost & Sullivan.
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12. The Power of Terremark, Cisco and EMC
Verizon Terremark’s Enterprise Cloud™(IaaS) relies on
best-in-class technology from renowned partners like
EMC and Cisco. Connectivity is provided by more than
160 carriers and supported by its global data center
footprint.
Enterprise Cloud combines the power and flexibility of infrastructure-as-a-service
with the agility, security and availability that large, SMB and government
organizations with mission-critical computing needs demand of their infrastructure.
An easy-to-use, Web-based, management interface provides command and control
over a cloud-based resource pool of compute, storage and network built on a fully
clustered enterprise-class computing architecture featuring virtualization technology
from VMware, computing from Cisco, storage from EMC and housed in Verizon
Terremark’s secure, top-tier datacenters.
Additionally, Enterprise Cloud provides a highly secure foundation for managing
business applications with an architecture designed to help meet today's critical
compliance and certification requirements, including SAS-70 Type II Audits, PCI-DSS
and Safe Harbor. For customers requiring more comprehensive security services on
the cloud, Verizon Terremark has a team of information security experts to determine
the security posture that is appropriate for specific cloud environments.
Today’s leaders are looking for Cloud solutions to help
them create and expand new markets. Cisco Unified
Computing —along with Unified Fabric and Unified
Management solutions—form the Unified Data Center,
Cisco’s platform for changing the economics of the
data center. Cisco Unified Data Center provides an
agile, efficient and simple platform designed for
deploying IT as a service and cloud computing securely
and cost effectively. Cisco is connecting the world of
many clouds.
Unified Computing: Cisco’s next-generation Unified Computing System (UCS), unites
computing, network, storage access, and virtualization into a single integrated
architecture designed to reduce total cost of ownership (TCO) and increase business
agility. Cisco UCS servers and racks were created to be virtualized and to support
cloud computing. Cisco UCS servers are based on x86 architecture and use the
processing power of Intel Xeon processors. The UCS servers deliver extremely high
performance, ideal to support mission-critical activities, and combined with its
simplified and unified architecture, promote increased IT productivity and reliability
as well as an excellent cost-performance ratio. Cisco USC servers enable automatic
deployment and configuration of the infrastructure.
Unified Fabric: Cisco Unified Fabric solutions provide an open evolutionary approach
and architectural flexibility to meet the needs of dynamic virtualized and cloud-based
environments. Unified Fabric delivers network services to servers, storage, and
applications, providing transparent convergence, scalability, and sophisticated
intelligence. Solutions include: Cisco multilayer data center switches, Cisco Nexus®
and Catalyst® switches, Cisco Fabric Manager, and Cisco NX-OS Software
Unified Management:
Cisco Unified Management simplifies and automates IT
provisioning with policy-based management delivering physical and virtual resources
on-demand for greater flexibility and agility. It provides improved productivity of IT
staff and reduces the risk of failure due to inconsistent configurations.
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13. EMC is a global leader enabling businesses and service
providers to transform their operations and deliver ITas-a-Service. Through innovative products and services,
EMC accelerates the journey to cloud computing,
helping IT departments to store, manage, protect and
analyze their most valuable asset – information – in a
more agile, trusted and cost-efficient way. An
important step on the journey is to leverage service
providers to gain the most of what IT does best and
what service providers do better.
Infrastructure: A cloud infrastructure built on a software-defined data center
foundation can help customers achieve efficiency and agility benefits. To transform
infrastructure, customers need to start building a virtualized infrastructure that can
not only store their data, but also provide protection in the form of more efficient and
effective backup and disaster recovery, better security, as well as disaster avoidance
and protection.
Operating model: As IT transforms its operations to run IT-as-a-Service, its role will
also transform – from an exclusive provider of IT services to a broker of IT services –
both internal and from service providers. IT will need to acquire new skills as new
roles emerge within the organization. In addition, new processes need to be
established to maximize the efficiency and adoption of the new operating model.
Applications: With a transformed infrastructure, IT can virtualize mission-critical
applications, move existing applications onto virtual infrastructures without
disruption, and deliver greater efficiency and agility. Modernizing existing applications
and building new applications using software lifecycle automation techniques,
customers become proactive and can rapidly take advantage of new opportunities.
The Combined Value Proposition
The combined value
proposition of the
Verizon Terremark,
Cisco and EMC
partnership puts
together cuttingedge technologies
to provide clients
with improved
business agility,
greater efficiency
and cost control,
while supporting
their journey to the
cloud.
Frost & Sullivan
Verizon Terremark, Cisco and EMC have developed tailored cloud computing
solutions which leverage Verizon Terremark's data center infrastructure, Cisco’s high
performance UCS servers and EMC's best-of-breed storage, back up, and replication
technologies.
This strategic alliance utilizes Verizon Terremark, Cisco and EMC’s world wide
presence enabling global reach in terms of supply chain, support and product
innovation. Partnering with enterprise-class vendors like EMC and Cisco who have a
well established technological roadmap as well as a focus on product innovation
allows Verizon Terremark to continuously enhance its services with new and cutting
edge technologies.
The partnership between Verizon Terremark, EMC and Cisco has resulted in a platform
based on the best-of-breed technology from each company, creating a combined
value proposition second to none.
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14. About Verizon Terremark
A subsidiary of Verizon Communications Inc. (NYSE, NASDAQ:VZ), Verizon Terremark sets the standard
for IT deployments with advanced infrastructure and managed service offerings that deliver the scale,
security, and reliability necessary to meet the demanding requirements of enterprises and governments
around the world. With a global network of data centers and a comprehensive portfolio of secure
solutions, Terremark is helping enterprise and government executives realize the power and promise of
the cloud today.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps companies seize the opportunities of
tomorrow by proving that amazing things can happen when you connect the previously unconnected.
One of Cisco's key differentiators has been our ability to capture market transitions which drive
innovation that enables our customers' long-term success. At the heart of these transitions - cloud,
mobility, video, any device and social - is the network. Cisco’s vision is to become our customers' most
strategic business partner by delivering intelligent networks and technology and business architectures
built on integrated products, services, and software platforms which enable our customers' success. Cisco
has shaped the future of the Internet by creating unprecedented value and opportunity for our customers
and ecosystem partners and has become the worldwide leader in networking - transforming how people
connect, communicate and collaborate.
About EMC
EMC employs approximately 53,500 people worldwide. We are represented by approximately 400 sales
offices and scores of partners in more than 85 countries around the world. We have the world's largest
sales and service force focused on information infrastructure, and we work closely with a global network
of technology, outsourcing, systems integration, service, and distribution partners. We are a publicly
traded company, listed on the New York Stock Exchange under the symbol EMC, and are a component of
the S&P 500 Index. In 2011, EMC was included in the Dow Jones Sustainability Index (DJSI) for North
America, which tracks the financial performance of leading sustainability-driven companies. We are
committed to acting in a socially and environmentally responsible manner and to being an attentive and
thoughtful neighbor in our local and global communities. We score at the top, or near the top, of regional
rankings of the best places to work.
About Frost & Sullivan
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their growth. The company's TEAM Research, Growth Consulting, and Growth Team
Membership™ empower clients to create a growth-focused culture that generates,
evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50
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For more information about Frost & Sullivan’s Growth Partnership Services, visit
http://www.frost.com
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