CLOUDCATALYST Cloud Trends and Critical Success Factors for European SMEs INDEX CLOUDCATALYST PROJECT: BACKGROUND, OBJECTIVES, OUTPUTS AND TARGETS CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION WHY CLOUDCATALYST? PROJECT BACKGROUND Cloud Computing adoption will contribute to increase the competitiveness of EU economy The challenges of cloud computing expansion imply huge entrepreneurial opportunities Partners have launched successful cloud initiatives and reach a vast network of stakeholders Companies have a clear advantage in using cloud computing – more flexibility and lower fixed costs. Startups can get started in no-time with a pay as you go model It is fundamental to develop highly efficient go-to-the-market strategies, focused on entrepreneurship acceleration and business exploitation. CloudCatalyst initiatives will foster collaboration between cloud stakeholders interested in the creation or expansion of innovative products and services. WHO ARE WE? PROJECT CONSORTIUM CloudCatalyst is a team of 5 partners from complementary areas: • INDUSTRY: Portugal Telecom and Si-MOBIL • INCUBATOR: Science and Technology Park of the University of Porto (UPTEC) • ACADEMIA: Universidad Complutense of Madrid (UCM) • ASSOCIATION: EuroCloud Association WHAT ARE CLOUDCATALYST OBJECTIVES? OBJECTIVE 1 Support entrepreneurs, researchers, and software developers to create value-added Cloud products and services OBJECTIVE 2 Increase the awareness of Cloud Computing benefits and positive impact in the European economy ACTIONS TO FOSTER THE EMERGENCE OF A STRONG AND ENTHUSIASTIC COMMUNITY OF CLOUD ADOPTERS AND SUPPORTERS IN EUROPE WHAT WILL BE CLOUDCATALYST RESULTS? MAIN OUTPUTS (1|2) SUPPORT ENTREPRENEURS, RESEARCHERS, AND SOFTWARE DEVELOPERS TO CREATE VALUE-ADDED CLOUD PRODUCTS AND SERVICES MAJOR CLOUD TRENDS STRATEGIC PLANNING FOR CLOUD ADOPTION CLOUD ACCELERATOR TOOLBOX GO-TO-THE-CLOUD SERVICE WHAT WILL BE CLOUDCATALYST RESULTS? MAIN OUTPUTS (2|2) INCREASE THE AWARENESS OF CLOUD COMPUTING BENEFITS AND POSITIVE IMPACT IN THE EUROPEAN ECONOMY BOOTCAMPS FOR STARTUPS AND SMES DYNAMIC WEBSITE FOR THE CLOUD COMMUNITY WORKSHOPS AND ANNUAL CONFERENCES STRONG EXPLOITATION STRATEGY INDEX CLOUDCATALYST PROJECT: BACKGROUND, OBJECTIVES, OUTPUTS AND TARGETS CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION CLOUD COMPUTING TRENDS AN ONLINE SURVEY HAS BEEN CONDUCTED IN JULY AND AUGUST 2014 THE OBJECTIVES OF THE SURVEY WERE TO: PRIMARY GROUP OF RESPONDENTS Identify broad-based cloud adoption trends Organizations using or planning to use cloud computing Identify drivers and barriers to adoption Identify decision making patterns according to different target groups TOTAL NUMBER OF RESPONDENTS: GLOBAL 308 STARTUPS 32 SURVEY DEMOGRAPHICS Role of Respondents Responses by Organization Type 28 135 Business 25 Academia 16 Government 74 Industry IT 166 Non-Profit 14 Other 144 Research Position of Respondents Type of Cloud Stakeholder 200 41 105 84 Director/Manager 150 Executive 100 IT 71 Other 164 122 122 Provider Developer 50 0 End-User UNDERSTANDING THE CLOUD COMPUTING STACK #1 : CHOOSE THE CLOUD SERVICE MODEL USED IN YOUR ORGANIZATION GLOBAL Answers 224 100% STARTUPS Answers 80% 100% 60% 80% 60% 40% 66.5% 57.6% 20% 32.6% 20% 40.0% 52.0% 24.0% 0% 0% IaaS • • 40% PaaS SaaS IaaS PaaS SaaS Cloud adoption predominantly focused in SaaS and IaaS. It reflects the main Cloud adoption drivers, concerning criticalness and investment, merging the basic needs of a common business: 1) Infrastructure (storage and processing capacity) 2) Software 25 CLOUD DEPLOYMENT MODELS #3: CHOOSE THE CLOUD DEPLOYMENT MODEL USED IN YOUR ORGANIZATION GLOBAL 38 38 13 15 28 34 Answers 224 adopt in distant future no plans to adopt 1 5 3 2 5 51 130 adopt in near future STARTUPS 3 59 35 already adopted 12 3 1 5 Private Cloud 120 13 14 53 Private Cloud Public Cloud Hybrid Cloud 3 0 5 Answers 25 6 3 9 13 7 5 4 Public Cloud Hybrid Cloud 9 5 Private Cloud Public Cloud Hybrid Cloud • There is a paradigmatic shift from the classical deployment models – Public and Private Cloud are clearly predominant in the market – to a new trend, the Hybrid Cloud which collects the biggest intention of future adoption. • This applies both to the Global and Startups samples. TOP RATED CLOUD SERVICES #4: CLASSIFY THE SERVICES BELOW, ACCORDING TO THE ADOPTION RATE IN YOUR ORGANIZATION GLOBAL TOP 5 ALREADY ADOPTED + 224 NO PLANS TO ADOPT 155 HCM or Talent Management 103 On-line Storage w/ back-up and/or DR 139 Accounting/Back office 97 Infrastructure/ compute power 89 Business intelligence and analytics 90 E-mail Sales management - Answers Content management 84 74 Security System & network management STARTUPS TOP 5 ALREADY ADOPTED + 90 80 - Answers 25 NO PLANS TO ADOPT On-line Storage w/ back-up and/or DR 21 Business intelligence and analytics 9 E-mail 17 Content management 8 Application Development 12 Accounting/Back office 8 Infrastructure/ compute power 12 HCM or Talent Management 8 System & network management 9 Security 8 • Already adopted: E-mail and Online Storage are the most commonly adopted services, reflecting a significant maturation in its adoption. • No plans to adopt: Security and business intelligence are the services that are still on hold, once most companies identify them as low priority services to move to the cloud PUBLIC CLOUD MARKET AWARENESS #5: INDICATE IF YOU ARE AWARE/USING THE FOLLOWING PUBLIC CLOUD SOLUTIONS GLOBAL PROVIDERS GLOBAL Amazon web services 72 48 Google app engine 38 38 Microsoft azure IaaS 23 43 Google IaaS 22 48 Microsoft azure PaaS 21 39 IBM 8 28 99 Rackspace public cloud 7 20 65 VMware vCHS 7 27 56 Oracle 3 14 94 BIT 40 Host Color 31 OrionVM 37 Terremark 7 51 210 Answers 59 84 91 75 90 142 146 112 96 aware and likely to consider aware of and not considering not aware STARTUPS 27 36 35 46 38 51 62 65 43 already using Amazon web services 57 Google app engine 28 32 Microsoft azure IaaS 921 Amazon Microsoft web services 26 azure PaaS 16 26 Google app engine Google IaaS 6 15 386 IBM 8 18 Microsoft azure PaaS Rackspace public cloud4 7 20 5 VMware 7 327 Microsoft azure IaaS vCHS SAP4 6 21 CloudSigma 4 Rackspace public cloud 2 43 917 42 9 HP Cloud Google IaaS Gigas 2 34 25 8 Oracle 3 14 Oracle Arsys 1 1 24 30 12 33 10 IBMFlexiant 1 2 235 35 Avalon BIT 3 35 VMware vCHS Host Color 4 26 OrionVM Terremark 1 8 37 Terremark 7 51 OrionVM 1 7 Host Color 4 Filter: BIT 5 no plans to adopt any Answers 23 39 51 22 73 30 82 6 30 8 82 31 9 1 39 67 88 262 41 65 9 56 10 3 6549 78 103 6 81 56 7 118 3 94 43 118 5 113 7 117 117 6 124 6 11 112 96 12 15 15 solution • Amazon Web Services stands out as a reference in the Public Cloud market, leading in both “already using” and “aware and likely to consider” which shows their competitiveness in this field, both in Global and Startups sample. • Competition from players such as Google, Rackspace and others is likely to intensify – market expansion is an imperative for profitable growth. PUBLIC CLOUD MARKET AWARENESS #5: INDICATE IF YOU ARE AWARE/USING THE FOLLOWING PUBLIC CLOUD SOLUTIONS EUROPEAN PROVIDERS GLOBAL SAP 24 CloudSigma 14 HP Cloud 92 47 25 Answers Arsys 9 37 138 Flexiant 8 40 135 40 aware of and not considering not aware Amazon web services Google app engine Microsoft azure IaaS Microsoft azure CloudSigma 3 PaaS Google IaaS IBM public cloud HP Rackspace Cloud VMware 3 vCHS SAP SAP 2CloudSigma HP Cloud Gigas Oracle Arsys 1 5 Arsys Flexiant Avalon Flexiant 8 BIT Host Color OrionVM Terremark Avalon 5 66 6 7 aware and likely to consider STARTUPS 125 Gigas Avalon already using 60 94 32 210 140 140 Filter: no plans to adopt any solution Gigas 3 Answers 23 57 39 51 22 28 32 73 30 21 26 82 30 7 16 26 9 82 31 15 38 67 39 8 18 88 41 658 62 977 20 27 56 65 6 21 78 49 49 42 103 12 4 17 81 6 56 34 25 118 3 14 94 43 24 30 14 118 25 33 113 3 35 117 3 35 117 12 4 26 124 37 112 7 51 96 15 17 • European Public Cloud providers seem to have low recognition from the market as the majority of observations are related to “not aware”. SAP is the first identified and notable provider in Global sample, but only few of the enquired companies are using its Cloud solutions. • Startups seem to prefer CloudSigma solutions, instead of SAP’s, maybe due to prices. PRIVATE CLOUD MARKET AWARENESS #6: INDICATE IF YOU ARE AWARE AND USING THE FOLLOWING PRIVATE CLOUD SOLUTIONS GLOBAL VMware vSphere/vCenter 42 OpenStack 36 OpenNebula 34 VMware vCloud Director Microsoft system center 29 71 42 56 19 22 36 CloudStack 12 Eucalyptus 8 20 oVirt 7 16 90 64 82 69 71 81 65 47 99 119 Ganeti 113 44 OnApp 17 59 119 50 118 openQRM 14 aware and likely to consider aware of and not considering not aware STARTUPS 64 73 31 already using 53 51 15 27 210 Answers 129 Amazon web services Google app engine Microsoft azure IaaS OpenStack Microsoft azure PaaS Google IaaS VMware vSphere/vCenter 4 IBM Rackspace public cloud OpenNebula 3 VMware vCHS SAP VMware vCloud Director 1 CloudSigma HP Cloud oVirt Gigas 1 Oracle CloudStack Arsys 1 Flexiant openQRM Avalon BIT Host Color OnApp OrionVM Terremark Microsoft system center Ganeti Eucalyptus Answers 23 57 39 51 22 28 32 73 30 6 21 264 782 3 30 16 26 82 31 15 4 38 67 39 7 6 8 18 88 41 7 20 65 62 17 27 10 56 6 65 6 7 21 78 49 6 7 49 42 103 4 17 8 81 56 10 34 25 118 3 14 94 43 9 254 30 118 5 25 33 113 63 35 12 117 3 35 117 4 8 26 124 11 37 112 51 966 67 9 5 14 8 10 • The awareness of Public Cloud Providers is higher than of the ones offering Private Cloud. • OpenStack and VMware collect the higher results for notability followed by Microsoft and CloudStack, both in Global and Startups samples. • OpenNebula stands out as the European provider with higher market awareness. CLOUD PERCEIVED BENEFITS #7: RATE THE TOP MOTIVATORS TO MOVE TO THE CLOUD GLOBAL Greater scalability 135 Higher availability 125 Faster access to infrastructure 122 Faster time-to-market Cost savings Geographical reach Limited in-house technical… Industry-specific reasons 54 72 68 40 62 93 101 55 24 6 98 69 23 2 73 68 72 67 44 204 Answers 51 41 2 - not important 3 - important 4 - very important Industry-specific reasons 1 4 5 22 Answers Limited in-house technical… 2 3 8 Cost savings 4 7 Geographical reach 1 4 4 Greater scalability Faster time-to-market 15 1 3 54 1 Higher availability 6 7 Higher availability 14 Faster access to infrastructure 1 3 4 Faster access to infrastructure 12 5 3 1 Greater scalability 1 5 Faster time-to-market 11 5 3 1 3 36 12 51 1 - not at all important 19 STARTUPS Geographical reach 10 Industry-specific reasons 8 Cost savings Limited in-house technical… 5 6 7 5 4 4 8 9 1 4 3 0 2 Filter: Not Applicable • Scalability and availability seem to be the top two motivators for companies move to the Cloud. • The availability of technical resources is not a key differentiator in the Cloud services • Through we are still in the middle of an economic crisis, cost savings don’t stand out as a driver for cloud adoption. This should be a bigger concern for startups than for larger and more mature companies. 7 4 6 10 10 13 11 13 BARRIERS TO CLOUD ADOPTION #8: RATE THE TOP BARRIERS TO MOVE TO THE CLOUD GLOBAL Security concerns 204 Answers 87 69 28 11 Fear of vendor lock-in 59 84 37 10 Integration 56 79 42 SLA performance is not… Lack of capability to evaluate… 43 86 34 43 64 Lack of budget 32 Lack of support from IT 31 65 Lack of management buy-in 26 81 Lack of certified providers 23 Lack of information about cloud 22 67 79 57 72 60 68 67 66 66 7 13 19 16 20 17 35 23 1 - not at all important 2 - not important 3 - important 4 - very important Industry-specific reasons 1 4 5 22 Answers Limited in-house technical… 2 3 8 Cost savings 4 7 Geographical reach 1 4 4 Security concerns 9 Faster time-to-market 1 93 42 2 Lack of information about cloud Higher 4 availability 5 86 2 SLA performance is notFaster acceptable 3 12 4 access to infrastructure 1 3 4 2 Lack of support from IT Greater 3 scalability 6 4 1 7 5 Lack of in-house capability to… 3 7 7 4 Integration (to private cloud, to… 3 10 5 2 Fear of vendor lock-in 3 9 5 3 Lack of management buy-in 2 9 8 2 Lack of certified providers 2 7 9 1 Lack of budget 1 7 12 1 STARTUPS Filter: Not Applicable • Security stands as the top barrier for cloud adoption, both in Global and Startups samples, which reflects that that businesses are reluctant to trust in Cloud security capabilities. • Lack of information appears to be a relevant barrier for Startups, which reflects that there should be targeted information for Startups that should be widespread. 7 4 6 10 10 13 11 13 DATA LOCATION #9: DO YOU KNOW WHERE YOUR DATA IS LOCATED? #10: HOW IMPORTANT IS KEEPING DATA IN YOUR COUNTRY? 200 GLOBAL Answers #9 # 10 1 - not at all important 2 - not important 3 - important 4 - Very important STARTUPS Answers 22 8.5% No 21.0% #9 35.5% Yes 79.0% 21.5% # 10 No 13.6% 13.6% 34.5% 9.1% 27.3% Yes 86.4% 50.0% • The great majority of the enquired companies is aware of their data location • In global terms, the majority of the companies think that keeping data in their countries is important or very important • 65% of the startups say that it is either not important or not at all important, probably because they are price takers, and not influential enough to negotiate prices in favor to location. INDEX CLOUDCATALYST PROJECT: BACKGROUD, OBJECTIVES, OUTPUTS AND TARGETS CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION CRITICAL SUCCESS FACTORS STEPS • Identify technical challenges and how to overcome them • Does European research meet cloud technical Challenges? • Guidance on use, adoption and Migration to cloud computing SCOPE KEY CHALLENGES IN CLOUD COMPUTING Interoperability and portability across cloud providers Seamless migration of workloads across cloud providers Power-efficient applications Trusted computing Networking across cloud sites Proactive autonomic computing Dynamic SLA negotiation Elastic management of complex multi-vm services Dynamic configuration and automated provisioning Data integrity, localization and confidentiality SOURCE: The future of Cloud Computing, January 2010 Advances in Clouds, May 2012 A roadmap for advanced Cloud Technologies under H2020, December 2012 Internet Computing, Key Challenges in Cloud Computing: Enabling the Future Internet of Services, July-August 2013 STUDY METHODOLOGY Tools: Survey through email and online questionnaires Target: Key experts participating in EU funded projects Key survey statistics: • All respondents = 29 FP7 projects respondents = 25 Other respondents (CIP, AAL and eInfrastructures) = 4 • FP7 projects response rate = 36% From a universe of 69 coordinators (Call 5, 8 and 10), 25 responded to the questionnaire The survey questions: • “Rank the technical challenges for Cloud expansion according to the priorities addressed in your project” • “In case you think your project addresses other important challenges that are not on the list, please describe them” • “Define critical success factors to overcome the top 3 technical challenges that you have identified” THE EXPERT’S VIEW RANKING THE CHALLENGES INTEROPERABILITY AND PORTABILITY ACROSS CLOUD PROVIDERS KEY RECOMMENDATIONS Competitive infrastructure cloud market • Ability for users to compare cloud offerings • Possibility to select the offer that best suits their needs • Easily change providers if they are unsatisfied with the service • Ability to find a more competitive offer CRITICAL SUCCESS FACTORS Avoid Lock-in • Reducing lock-in to proprietary solutions through means of increased portability and interoperability Assure standardization • Standardized formats for transferred data, billing and identity management Business strategy and support tools • Creation of practical guidelines and best practices’ catalog • Identification of key elements in applications that ease or prevent their migration to the cloud Open clouds and federation • Creating bridges between global communities • Massive adoption of open source Cloud Computing projects • Cloud federation, sustainable collaboration schemes • Ability to build full-fledged multi-cloud applications TRUSTED COMPUTING KEY RECOMMENDATIONS Security parameters management • Cloud interoperation opens new challenges in the management of security parameters between cloud providers • Authentication across multiple clouds (each cloud can use a particular authentication mechanism and technology) CRITICAL SUCCESS FACTORS Fulfilment of SLAs and implementation of certification schemes • Check the existing security measurements and SLA metrics • Fair and safe contract terms Check transparency and interoperability among providers • Management of security parameters between cloud providers • Step-by-step analysis of the full cloud service supply chain • Proven data provenance and enforcement of related policies Verifiable devices • Overcome security / privacy challenges from IoT devices through cloud based processing NETWORKING ACROSS CLOUD SITES KEY RECOMMENDATIONS Federated cloud networking • Unify and consolidate data-centers in a virtual way, so that different distributed data-centers can be exposed as a single cloud-like virtual data-center, and networks of different data centers can be interconnected in a virtual overlay • Automatic provision of inter-cloud networking to support the automated deployment of applications and services across different clouds and data-centers CRITICAL SUCCESS FACTORS Discover the shortest paths in an overlay network with the minimum monitoring effort • Networking across cloud sites should be based on a self-healing and self-optimizing overlay network between cloud sites Overcome limitations on networking, such as data import/export bottlenecks or service disruptions • Identify at real time components of a composite application which have failed and switch to an alternative component without overall application disruption DATA INTEGRITY, LOCALISATION AND CONFIDENTIALITY KEY RECOMMENDATIONS Privacy, confidentiality and trust • To avoid privacy and confidentiality risks, cloud providers should be adapted to different legislations, and some standards of good practices, policies and procedures should be defined • Security vulnerabilities need to be better understood and handled to overcome the lack of trust in utilizing clouds and the fears of privacy invasions and confidentiality breaches CRITICAL SUCCESS FACTORS Overcome barriers related to different legislations • Assure consistency in data schemas migration (by using data models), fulfillment of SLAs, and implementation of privacy warranty mechanisms Implement an open cloud philosophy • Adoption of open standards and open format in cloud-related solutions • Cloud standardization needs to happen the OpenStand way Foster awareness raising actions • Create a new culture around the importance of data security and new competences to empower the end-users Promote certification mechanisms • Implement certification schemes for applications and services offered in the cloud DYNAMIC CONFIGURATION AND AUTOMATED PROVISIONING KEY RECOMMENDATIONS Service oriented capabilities • Enable the dynamic provisioning of multi-tier services on top of cloud infrastructures • Service oriented capabilities needed to manage services (i.e. groups of interconnected compute, network, and storage elements) as basic entities, and to provide elasticity and quality of service (QoS) for a broad range of multi-tier applications deployed in the cloud CRITICAL SUCCESS FACTORS Proper analysis/prediction of adaptation actions • Use of model-driven and software patterns, intelligent software, context-aware systems Mapping the services dynamically on the resources • Applications and services running in a cloud environment must provide interface endpoints for provisioning, configuration, and monitoring • Applications must be classified by compliance levels Reduce the degree of human intervention in provisioning • Monitoring must be done continuously and SLA levels should be described so that automatic reactions can be deployed Dynamic configuration and automated provisioning of analytics as a service • Enable this through simple interfaces that do not require the specification of low-level details about a cloud deployment FINAL REMARKS The Top 10 technical challenges for cloud adoption were identified by the consortium based on European Commission reports Experts participating in EU funded projects were asked to rank these challenges and identify others: -Most important: Dynamic configuration and automated provisioning -Least important: Seamless migration of workloads across cloud providers For each of the 10 technical challenges: -Experts identified critical success factors -The consortium outlined key recommendations for companies addressing these challenges The key challenges, success factors and key recommendations identified will facilitate the detection of new market opportunities for EU businesses This study aims to encourage actions leading towards EU cloud research, complementing the work done by the experts’ group developing the cloud computing vision for Europe and future research and policy directions