The True State of Cloud Adoption
James Staten, VP and Principal Analyst
Charlie Dai, Principal Analyst
The True State of Cloud – Q4 2013
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Most cloud adoption is Public and driven by the business, not IT
Empowered developers, business units driving public cloud use
Heaviest investments are in SaaS
Majority of cloud platform apps are “systems of engagement,” SaaS integrations
Private clouds remain a work in progress
32% of APAC enterprise IT shops prioritized it in 2013
• But their efforts are slow and mostly cloud-washed virtualization
• Higher adoption of Virtual Private Clouds than internal clouds
Hybrid cloud is now, not future
Hybrid cloud = a cloud service connected to anything
Not just public cloud + private cloud
Key question: Is your strategy starting from this reality?
Cloud adoption is accelerating
“What are your firm’s plans to adopt the following as-a-service technologies?”
(Respondents who selected “implementing, not expanding,” “expanding/upgrading implementation,”
“planning to implement in the next 12 months,” or “planning to implement in a year or more”)
70%
60%
50%
APAC is approx. 12
months behind in
adoption
40%
30%
IaaS
PaaS
SaaS
20%
10%
0%
2010 (Actual)
2011 (Actual)
Base: 2,200 to 2,444 IT software decision-makers US & Europe
Source: Forrsights Software Survey, Q4 2012
2012 (Actual)
2013*
2014+ **
*Planning to implement in the next 12 months
**Planning to implement in a year or more
Enterprises are adopting cloud faster
“What are your firm’s plans to adopt the following as-a-service technologies?”
By the end of 2013, about 40% of all companies
will be using IaaS (50% by 2014!)
SaaS
IaaS
PaaS
Base: 2,200 to 2,444 IT software decision-makers
Source: Forrsights Software Survey, Q4 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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China will be a key engine of this growth
$ millions
Public cloud services will
reach $40.8 billion
globally and $3.83 billion
in China by 2020.
Source: Forrester Research Inc., December 2011
Virtual private cloud
services evolved from a
traditional managed model
and will also gain market
momentum in China
moving forward.
The Chinese government’s cloud strategy
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14 provinces have announced cloud data center projects.
• Investments range from $794 million to $3.2 billion
• Initial data center sizes are mostly above 10,000 to 50,000 m2
5 pilot cities: Beijing, Shanghai, Shenzhen, Hangzhou and Wuxi;
transportation, eGovernment, and healthcare are top categories.
• Beijing: IaaS/PaaS (serving large enterprises to SMEs)
• Shanghai: IaaS, healthcare
• Wuxi: IaaS/SaaS/testing cloud
Government/enterprise collaboration model:
• Local cloud service companies
• District government direct investment
• Telecom operators
• Revenue-sharing model
Provinces with announced
cloud projects
Local government incentives: focus on public cloud projects, get:
• Benefits on land, tax, and energy
Why enterprises are leveraging cloud services: Speed
“How important were the following benefits in your firm’s decision to use cloud services?”
(Respondents who reported “Important factor” or “Very important factor”)
Speed of implementation and deployment
Allows us to focus resources on more important projects
Improved business agility
Faster delivery of new features and functions from…
Support business innovation with new capabilities
Lower overall costs
To support a large number of mobile and remote users
Lack of in-house IT staff to maintain a traditional…
Gaining a feature or functionality that is not available…
Improve collaboration with business partners…
Iterative deployment model suports a higher level of…
Having access to a wide ecosystem of solutions…
Ability to substitute upfront costs with regular monthly…
72%
Agility
69%
and
69%
speed
65%
63%
56%
Cost is secondary
53%
49%
49%
48%
45%
42%
42%
Source: Forrsights Software Survey, Q4 2012
Base: 1,429 software decision-makers at firms who are using or planning to use SaaS
Integrations, mobile, and intranet apps are
most common
“Which of the following types of applications are you currently developing using cloud environments or have you delivered in a cloud
environment in the past 12 months?” (Select all that apply)
Application integration
40%
Mobile sites/applications
38%
Internal web business applications
36%
Corporate intranet
35%
Application testing and QA
31%
High-performance computing
26%
A new business service
25%
Social computing/collaboration
25%
Batch jobs
23%
Marketing site
22%
eCommerce site
22%
Base: 124 North American and European enterprise software developers using cloud; Source: Forrsights Developer
Survey, Q1 2013
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Cloud developers favor open source technologies
“Which of the following classes of open source software tools/frameworks have you used for development or deployment in the past
12 months?” (Select all that apply)
Operating systems (e.g., Red Hat Linux, Suse, Android)
Web servers (e.g., Apache, nginx)
Relational DBMSes (e.g., MySQL, PostgreSQL, SQLite)
Development IDEs (e.g., Eclipse, NetBeans)
Application server (e.g., JBoss, Tomcat)
Build and release management tools (e.g., Hudson/Jenkins, Maven, Ant)
Application frameworks (e.g., Spring, Rails, Zend)
Content management systems (e.g., Alfresco, Drupal)
SCM tools (e.g., Git, Subversion, Mercurial)
Business intelligence tools (e.g., BIRT, Jasper Reports, Spago)
Portals or mashup servers (e.g., Liferay, JBoss Portal, eXo)
Business applications (Sugar CRM, Bravo)
NoSQL DBMSes (e.g., Apache Hadoop, MongoDB, Riak, Couchbase)
Release/deployment management tools (e.g., Chef, Cf Engine, Puppet)
Management and monitoring (e.g., Nagios, Cacti, Shinken)
Have not used open source software
Other (please specify)
66%
33%
32%
32%
35%
22%
35%
16%
31%
10%
30%
6%
16% 26%
24%
6%
22%
3%
21%
3%
21%
5%
20%
4%
20%
3%
3%
31%
2%
4%
58%
57%
54%
45%
Using cloud
computing/elastic
applications (N = 125)
Not using cloud
computing/elastic
applications (N = 572)
Base: North American and European enterprise software developers; Source: Forrsights Developer Survey, Q1 2013
© 2013 Forrester Research, Inc. Reproduction Prohibited
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OpenStack trending in China
› Awareness of OpenStack is strong in
China thanks to COSUG (China
OpenStack User Group)
Traffic on docs.openstack.org
• OpenStack users: Sina, Baidu, NetEase,
Game Wave, JD (360Buy), AutoNavi and
PubYun
• Solution builders: Aliyun, Tencent,
UnitedStack
• Service providers: Sina working to
consolidate OpenStack with SAE (highest
contribution to OpenStack project in China,
supporting Sina Weibo)
• China Telecom and China Unicom doing
research in their internal R&D and strategy
teams. China Telecom officially started
evaluating OpenStack since 2011
Source: COSUG, as of 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Wide expectations for OpenStack in China
If you are considering using OpenStack, why?
2%
OpenStack is open source
6%
7%
24%
10%
Meeting the needs of server virtualization to hopefully
replace other commercial solutions like Vmware
Providing complete IaaS solutions
Can be applied to private cloud solutions
The OpenStack community support is excellent
12%
Can be applied to public cloud solutions
22%
Meeting the demand for cloud storage
17%
Other
Source: COSUG, 150 cloud/virtualization practitioners in China 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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And the business often doesn’t know (or care) about the risks
“What is preventing your firm from using/using more public as-a-service offerings?”
40%
We have not fully
depreciated our current
hardware/software
We are not comfortable
with volatile per-use pricing
models
We are confused about the
vendor offering and what is
really being delivered as-aservice
30%
We cannot manage security
to our strict standards
We cannot manage
compliance and risk to our
strict standards
We cannot find SaaS
applications that meet our
needs
Our legacy applications
cannot be moved to a
public cloud infrastructure
20%
Business concerns
We do feel the
technology/model is not
fully mature
10%
We cannot figure out how
to set up a contract that
fully protects us
We do not have the vendor
management expertise to
effectively govern the
suppliers
We do not want to use
small startup vendors
It's not clear whether public
as-a-service offerings can
be used as a substitute or
replacement for traditional
IT services/outsourcing
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
IT concerns
Source: Forrsights Business Decision-Makers Survey, Q4 2012, Base: 2,192 enterprise business decision-makers
Source: Forrsights Services Survey, Q3 2013, Base: 1,050 enterprise IT services decision-makers
IT Ops is beginning to take control of the cloud strategy
“How would you describe your approach to using [cloud] services, today and in 12 months?”
38%
“We have no formal [cloud]
strategy/approach”
“We are executing on a formal [cloud]
migration plan”
28%
24%
IT priority in the next 12 months:
Create a comprehensive strategy and implementation plan
21%
for public cloud and other as-a-service offerings
10%
High12%34%; Critical
21%
2012
2013
2014
2012
2013
2014
Source: Forrsights Services Survey, Q3 2012 & Q3 2013*
Base: : 1,058 enterprise IT services decision-makers ;*1,050 enterprise IT services decision-makers
© 2013 Forrester Research, Inc. Reproduction Prohibited
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The cloud evolutionary paths are
independent of each other
Business service over cloud is most popular scenario
If you and your company is considering using OpenStack program, in which aspects do
you want it to serve you?
Considering using OpenStack to make private cloud /
public cloud solution, in order to provide my clients
with business OpenStack services.
1%
12%
33%
No plan, being learning the OpenStack architecture
and technology
Considering using OpenStack to build the internal
virtualized or private cloud system in our company
26%
Considering using OpenStack to build public IaaS
cloud platform in our company, so as to provide IaaS
service for the public.
28%
Other
Source: COSUG, 150 cloud/virtualization practitioners in China 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Nearly half of OpenStack projects in China are making
substantial progress
How is your OpenStack project progressing, or how is it progressing in your team or
company?
7%
At the beginning of understanding; make
little progress
16%
Having begun internal testing
51%
Already very familiar with OpenStack,
under active development
26%
Having begun online operations
Source: COSUG, around 105 (150*69%) cloud/virtualization practitioners in China using OpenStack 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Collectively, Open Stack is the most popular choice
Which internal private cloud vendor do you use?
VMware
Microsoft
Cisco
IBM
HP
Citrix
Dell
RedHat
Custom/in-house solution
Tibco
CA
BMC
SUSE
Rackspace
VCE
Nebula
Embotics
Canonical
Morphlabs
Eucalyptus
OpenStack, not a distribution of it
ASG
Huawei
Egenera
Piston Cloud
CloudStack, not a distribution of it
10%
9%
9%
9%
8%
7%
7%
6%
6%
5%
5%
4%
4%
3%
3%
2%
2%
1%
1%
13%
25%
23%
34%
33%
32%
40%
VMware-based
Unique platform
OpenStack
CloudStack
Eucalyptus
Custom
Source: Forrsights Hardware Survey, Q3 2013 Base: 244 North American and European IT decision makers at enterprise firms with
1,000 or more employees that are using/planning to use internal private cloud
© 2013 Forrester Research, Inc. Reproduction Prohibited
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OpenStack trends in China
Visionary local technology vendors are using OpenStack
Local
Companies
Chinese
Name
Briefing
华为
Telecom equipment manufacturer and service provider
海辉
IT outsourcing service provider (merged as Pactera)
中标软件
广联达
Operation system and OA software ISV
IT service provider in construction industry
• Companies in non-Internet industries is gaining knowledge and experience
› End users in traditional industries are tracking global trends in IaaS to enable
their IT infrastructure for business transformation
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Lack of professional training and poor ease of use are
major concerns of end users to adopt OpenStack
Which of the following factors would be your concerns to adopt OpenStack?
1%
Difficult to recruit OpenStack talents
19%
18%
OpenStack technology or architecture is not good
enough
4%
OpenStack is not friendly to end users
Lack of professional training of OpenStack results in
the slow progress
27%
31%
Lack of professional OpenStack service support
Other
Source: COSUG, 150 cloud/virtualization practitioners in China 2012
© 2013 Forrester Research, Inc. Reproduction Prohibited
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Recommendations
› Engage your empowered leaders
• Understand the business reasons for
their actions
• Identify the next steps that will help them
be more successful
Get cloud
right
› Determine how IT can help
›
• Don’t go it alone
• Work with companies with more cloud
experience, who can accelerate your
success
• Give the business what it is looking for
The cloud is not a threat to IT
• It’s part of your portfolio
The hybrid end game
Decision tree
Workload management
GRC
Internal
cloud
Virtual
Physical
Traditional
Outsourcing
CapEx
OpEx
Common
Custom
Transient
Fixed
Metered
Owned
Virtual
hosting
Public
cloud
Custom
Flexible
OpEx
Common
Fixed
Transient
Owned
Metered
Thank you
James Staten
jstaten@forrester.com
@staten7
Charlie Dai
ckundai@forrester.com
@CharlieKunDai