Generating Demand:Enterprise IT Buying in the Early Cloud EraMarch 2011© by WaveLength Market Analytics and Winn Technolog...
Today’s Speakers    •  WaveLength Market Analytics: Founded in 2001, has specialized in       combining the knowledge of t...
Demand Center (Generation) Strategies    •  Part 3 of 8 part Webinar Light series          •    Practicing what we preach ...
Agenda          •    Study Background and Goals          •    Intro: Many Technology Segments Competing for the Customer  ...
Background on the Research    •  Primary research conducted by Winn Q3/Q4 2010.    •  Random sample drawn from Winn Enterp...
Goals    •  To inform demand generation programs by       understanding penetration, concerns and       motivators, apps a...
Many Technology Segments Competing for the       Customer             Infrastructure                                   Sof...
Cloud Market Adoption and Penetration© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.   8
58% are Doing “Something” in the Cloud                                            •  More enterprises doing or            ...
Besides SaaS: Private Clouds and PaaS Most Common           •  Pioneers mostly use Platform-as-a-Service & hosted private ...
Cloud Apps Not Yet Mission Critical           •  Email, collaboration, CRM, and HR will dominate the next 2 years         ...
Pioneers Mostly Migrate Legacy Apps       •  … of which email is obviously a legacy app       •  Planners are more ambitio...
Pioneers & Planners More Likely to Use SAN,        NAS, & Virtualized Storage          •  Pioneers and Planners both have ...
Pioneers Already Outsource More Than Planners        and Far More than Stragglers          •  Nearly 60% of Pioneers outso...
Shift to Cloud Architectures Well-Underway                      • Although degree of penetration into IT                  ...
Moving the Market: Motivators & Barriers© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.  ...
Top Motivators: Cost Cutting & Speedy      Application Deployment                   71%                             63%   ...
Reduced Control is Top Security Concern for        Pioneers          •  Pioneers, those with cloud experience, worry less ...
Pioneers Find Network Delays the Top Concern,        Even Over Security        Pioneers find start-up costs too high and a...
The Network is Underlying Infrastructure Getting        Most Evaluation… from all Market Segments          •  Storage and ...
Generate Demand by Appealing to Motivators &             Mitigating Risks                             •  Reduce costs, do ...
Reaching the Customer: Role of Partners© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.   22
In Selecting Partner for Cloud Services,        Professional Services is Most Critical for Both        Pioneers and Planne...
Planners Involve More Tech Segments than        Pioneers in Cloud Implementation          •  More Pioneers involve softwar...
… But, Overwhelmingly Systems Integrators Most        Important Partner for Pioneers while its        Software for Planner...
Buying Behaviors Typical of Shifting Market: Top        Management & Trusted 3rd Parties Very        Important          • ...
Brand, Ability to Manage, Application Features &        Functions, Monitored Service Levels Will Become Key        Service...
Generating Demand Will Require Fewer, but        More Substantive Partners       Technology      Partnerships             ...
Enter the Early Cloud Era…© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.   29
Many Say ROI & Deployment Speed Expectations        Not Met… Yet Still Pioneers are Largely Satisfied        with their Cl...
No Turning Back…Pioneers and Planners Both       Estimate that 30% of IT Will be in Cloud By 2015         •  Even Straggle...
Generate Demand During the Early Cloud Era                   Target the Right                                             ...
Thank you                                                                  Q&AWaveLength Market Analytics LLC             ...
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Winn wl cloud_study_webinar

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Winn wl cloud_study_webinar

  1. 1. Generating Demand:Enterprise IT Buying in the Early Cloud EraMarch 2011© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. © by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 1
  2. 2. Today’s Speakers •  WaveLength Market Analytics: Founded in 2001, has specialized in combining the knowledge of technology markets, products and services with data management & quantitative analysis resulting in improved strategies for impacting demand generation success. •  Speaker – Natalie Robb, Principal Analyst with WaveLength Market Analytics has over 20 years of market research and data analytics experience focused in the Information technology and telecommunications industries. •  Winn Technology Group: Since 1990 has supported over 800 technology firms with thousands of demand generation solutions. •  Speaker – Geoffrey Swallow, President of Winn Technology Group, has over 32 years experience in technology marketing.© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 2
  3. 3. Demand Center (Generation) Strategies •  Part 3 of 8 part Webinar Light series •  Practicing what we preach •  Thought leadership content •  Focused content and messaging •  Market drivers •  Leveraging the demand center© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 3
  4. 4. Agenda •  Study Background and Goals •  Intro: Many Technology Segments Competing for the Customer •  Baseline on the Cloud Market: Adoption & Penetration •  Moving the Market: Motivators & Barriers Useful to Messaging •  Reaching the Customer: Role of Partners •  Summing Up: Enter the Early Cloud Era© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 4
  5. 5. Background on the Research •  Primary research conducted by Winn Q3/Q4 2010. •  Random sample drawn from Winn Enterprise/ Mid Market DB that included high-level IT decision- makers (senior managers, directors, and VPs) •  Primary research data collection methodology: •  Telephone survey •  Supplemented by e-survey •  Landing page developed to provide respondents the ability to answer via web •  Provided incentive to increase response rates •  Sample size = 126© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 5
  6. 6. Goals •  To inform demand generation programs by understanding penetration, concerns and motivators, apps and IT strategies, buying habits and partner involvement, & 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© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 6
  7. 7. Many Technology Segments Competing for the Customer Infrastructure Software as a Service Communications as a Service Platform as a Service as a Service Cloud Services-enabling Products & Services Consulting & Professional Services for Cloud 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© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.
  8. 8. Cloud Market Adoption and Penetration© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 8
  9. 9. 58% are Doing “Something” in the Cloud •  More enterprises doing or thinking about the cloud than those that aren’t •  Those actively using or trialing a Cloud Cloud cloud solution, Cloud Pioneers, Pioneers Stragglers more likely to be: 41% 42% ▫  Larger with global networks ▫  Commercial enterprise Cloud Planners ▫  Have more remote and more mobile 17% workers ▫  Actually already using a cloud solution, as opposed to just testingTakeaways: 1) Limit demand generation for cloud solutions to organizations with1000 employees or more at this point in market development; 2) Message on howyour solution addresses and helps remote and mobile workers.© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 9
  10. 10. Besides SaaS: Private Clouds and PaaS Most Common •  Pioneers mostly use Platform-as-a-Service & hosted private clouds •  In the next 24 months, Pioneers and Planners aim for internal private clouds, public clouds, and take note HYBRID clouds •  NOTE: Since hybrid clouds are more challenging, therefore more medium-term…it suggests very quick market development reminiscent of the VOIP market rise. Q: For each of the following types of cloud deployment, we’d like to know if it’s currently in production, in trial, is planned in 24 months? N=126© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 10
  11. 11. Cloud Apps Not Yet Mission Critical •  Email, collaboration, CRM, and HR will dominate the next 2 years •  Enterprise mission-critical apps on a more distant cloud Q. Again for apps, is a cloud computing architecture in production, in trial, planned, or not planned? N=78© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 11
  12. 12. Pioneers Mostly Migrate Legacy Apps •  … of which email is obviously a legacy app •  Planners are more ambitious; not only do they plan on using public and hybrid clouds in greater numbers, they also intend on migrating legacy apps, as well as implementing new onesQ: Does, or will your organization in the next 24 months, use cloud architecture to.. ? (n=78)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 12
  13. 13. Pioneers & Planners More Likely to Use SAN, NAS, & Virtualized Storage •  Pioneers and Planners both have a higher percentage of virtualized servers and higher virtualization densities than Stragglers •  Virtualization is not a requirement for cloud, but both improve resource utilization Percentage
of
Each
Segment
Using
Key
Technologies
 87%
 89.5%
 80%
 72.7%
 68.4%
 70.3%
 71.2%
 58.1%
 62.3%
 60%
 52.6%
 52.9%
 46.3%
 41.7%
 40%
 20%
 0%
 Virtualized
Servers
 Virtualized
Storage
 SANs
 NAS
 Cloud
Pioneers
 Cloud
Planners
 Cloud
Stragglers
© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 13
  14. 14. Pioneers Already Outsource More Than Planners and Far More than Stragglers •  Nearly 60% of Pioneers outsource at least one function, compared to 14% of Stragglers •  Targeting organizations that already outsource would be effective way to penetrate enterprise market Q1. Yes or no, do you outsource any of the following functions? N=126© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 14
  15. 15. Shift to Cloud Architectures Well-Underway • Although degree of penetration into IT • Cloud apps are those that were “born” Enterprise Cloud Penetration Adoption & Planning is unknown, more enterprises of the Internet, such as email, implementing or planning “something” collaboration, and customer in the cloud than those that are not relationship management •  Enterprises don’t want to be left • Mission-critical enterprise cloud apps behind nowhere on the horizon • Cloud Pioneers profile: • Continuum of clouds will exist, as • Large, publicly traded or private some clouds more suited to certain company 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 • Outsource more, higher usage of SANs, virtualized storage and servers© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 15
  16. 16. Moving the Market: Motivators & Barriers© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 16
  17. 17. Top Motivators: Cost Cutting & Speedy Application Deployment 71% 63% 52% 52% 47% 38.7% 42% 35% 32% 31% 30% 17.1% 18.8% 15.2% 19% 17% 9.1% 8.6% 6.7% 9.4% 6.3% 6.5% 6.5% 3% Cloud Pioneers & Planners Stragglers Q: Using a scale from 1 to 6where 1 is not at all important and 6 is extremely important, please rate the following as motivators in your transition to cloud computing? N=126 % who say motivator is 5 or 6.Takeaway: 1) Include cost reduction and app rapid deployment in solutionmessaging; 2) Appeal to competitiveness that they risk being left behind© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 17
  18. 18. Reduced Control is Top Security Concern for Pioneers •  Pioneers, those with cloud experience, worry less about all concerns •  Planners worry most about data breaches, and Stragglers are concerned with all security issues Q: Using a scale from 1 to 6 where 1 is not at all important and 6 is extremely important, please rate the following as security concerns that limit adoption to cloud computing? N=126© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 18
  19. 19. Pioneers Find Network Delays the Top Concern, Even Over Security Pioneers find start-up costs too high and a void of trusted 3rd party relationships Planners find lack of remediation (not truly usage-based yet) and poor interoperability their top concerns Stragglers will need those trusted 3rd party relationships to contemplate cloud Cloud Stragglers Cloud Planners Cloud Pioneers Extent following concerns limit cloud adoption? Average Rank Average Rank Average Rank Network delays 4.13 6 4.14 8 5.75 1 Initial start-up costs too high 5.16 2 3.98 10 5.27 2 Lack of trusted 3rd party relationships 5.64 1 4.09 9 5.14 3 Lack of reporting/management tools 4.11 7 4.63 5 5.02 4 Reduced control/visibility 4.80 4 4.26 7 4.58 5 Network downtime 3.95 9 5.16 3 4.23 6 No vendor neutral APIs 4.40 5 5.05 4 4.23 7 Technology not yet proven 4.98 3 4.26 6 4.10 8 Lack of audit/remediation/reporting 4.11 8 5.77 1 4.08 9 Poor interoperability b/t cloud venders 3.93 10 5.28 2 3.96 10 & internal IT Q: Using a scale from 1 to 6where 1 is not at all important and 6 is extremely important, please rate the following as concerns that limit adoption to cloud computing? N=126© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 19
  20. 20. The Network is Underlying Infrastructure Getting Most Evaluation… from all Market Segments •  Storage and virtualization software are 2nd and 3rd •  Vendors should not ignore management tools; while they are less important now, they’ll be increasingly important as performance improves and approaches commoditization Q. Starting with a 1, please ran the following according to how much evaluate a cloud provider’s underlying infrastructure? (N=78)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 20
  21. 21. Generate Demand by Appealing to Motivators & Mitigating Risks •  Reduce costs, do more with less, • It might be more expensive than you Message to Motivators Message to Mitigate Risks lower fixed costs, improve value, etc. think to start up, but there is a •  Become more nimble in IT and learning curve and the following apps develop and roll out new apps more will likely be less expensive quickly • Beware the network delay, so prepare your network to yield higher • .. Making business leaner, more agile performance and more competitive to increase • If reduced control is a real concern, industry leadership start with an application that can •  All without losing control… tolerate a lower level of performance • Security is about preparation; don’t • Vendors should educate on the do cloud until the network and apps are secure importance of their management tools; be increasingly important as • We are the most qualified to help you get to the cloud performance improves and approaches commoditization© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 21
  22. 22. Reaching the Customer: Role of Partners© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 22
  23. 23. In Selecting Partner for Cloud Services, Professional Services is Most Critical for Both Pioneers and Planners •  The market most demands qualified professional services •  SLAs and business process re-engineering also needed •  Performance management & monitoring lags… but probably won’t for long, as management offers genuine differentiation Cloud Pioneers- First Mention Cloud Pioneers- Overall Cloud Planners- First Mention Cloud Planners-Overall 59.9% 59.8% 55.1% 47.6% 44.9% 41.5% 38.6% 36% 30.5% 29.9% 18.9% 19% 19.5% 9.5% 13.2% 10.3% 11.3% 14.3% 9.4% 9.5% 13.6% 5.7% % % Professional Business Performance SLAs Creation of Training services process re- management vertical engineering & monitoring applicationsQ: In selecting your most important partner, which 2 capabilities were most critical… ? (n=78) 23© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.
  24. 24. Planners Involve More Tech Segments than Pioneers in Cloud Implementation •  More Pioneers involve software vendors and fewer involve Telco service providers •  More Planners involve consultants and fewer engage service providersQ: For each of the following types of participants in cloud implementation, on a scale of 1 to 6 where 1 means “not at all involved” and 6 is veryInvolved,” what’s the involvement level of… ? (n=78)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 24
  25. 25. … But, Overwhelmingly Systems Integrators Most Important Partner for Pioneers while its Software for Planners •  Hardware vendors also important to Pioneers •  Telcos least important to both Pioneers and PlannersQ: Your internal IT staff aside, which single partner was most important for your deployment… ? (n=78)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 25
  26. 26. Buying Behaviors Typical of Shifting Market: Top Management & Trusted 3rd Parties Very Important •  Nearly half of Pioneers say top •  Pioneers and Stragglers both business management is very plan on leaning on trusted 3rd involved party more than a cloud Those Who Strongly Agree or Agree: provider Strongly Agree or Agree: Those Who Top Business Management is Very We are more likely to use a Involved with Purchasing Decisions consultant to help create our cloud Regarding Cloud Computing strategy than work with cloud service provider partners 47.2% 48.1% 35.7% 30.4% 35.1% 14.3% Cloud Cloud Cloud Cloud Cloud Cloud Pioneers Planners Stragglers Pioneers Planners Stragglers© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 26
  27. 27. 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 IT outsourcing partners that will ultimately compete with them •  All vendors interests would be well-served by educating their best channel sales partners© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 27
  28. 28. Generating Demand Will Require Fewer, but More Substantive Partners Technology Partnerships • 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 need to develop cloud services management capabilities- program managing across organizations within their partner ecosystems© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 28
  29. 29. Enter the Early Cloud Era…© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 29
  30. 30. Many Say ROI & Deployment Speed Expectations Not Met… Yet Still Pioneers are Largely Satisfied with their Cloud Solution •  About a third willing to sign multi-year contracts with cloud services provider •  Organizations clearly have realistic expectations as they learn…. Q: On a 1 to 6 scale, how much do you agree with the following statements… ? Base = Pioneers (n=58)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 30
  31. 31. No Turning Back…Pioneers and Planners Both Estimate that 30% of IT Will be in Cloud By 2015 •  Even Stragglers expect to be using Cloud by 2015!!!Q: What percentage of your IT will be outsourced to a cloud provider by 2012? 2015 ? (n=126)© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 31
  32. 32. Generate 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 point solution addresses needs of remote and in the market mobile workers Look for organizations with high levels of Make sure you highlight your professional outsourcing, & key technologies like services capabilities and strengths SANs, server & storage virtualization Educate & partner with your best Address motivators as speed of solution partners deployment and cost reduction Don’t ignore enterprise’s top business Address concerns of security risks, management reduced control, & network performance© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved. 32
  33. 33. Thank you Q&AWaveLength Market Analytics LLC Winn Technology Groupwww.wlanalytics.com www.winntech.net415.519.7030 727-789-0006© by WaveLength Market Analytics and Winn Technology Group. All Rights Reserved.© All Rights Reserved 33

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