The True State of Cloud Adoption

toiletquietInternet and Web Development

Dec 5, 2013 (3 years and 8 months ago)

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The True State of Cloud Adoption

James Staten,
VP and Principal
Analyst

Charlie Dai, Principal Analyst

The True State of Cloud


Q4 2013

1.
Most cloud adoption is
Public
and
driven by the business, not IT


Empowered developers,
business unit
s driving public cloud use


Heaviest investments are in SaaS


Majority of cloud platform apps are “systems of engagement,”
SaaS

integrations

2.
Private clouds remain a work in progress


3
2
% of
APAC
enterprise IT shops prioritiz
ed

it in 201
3


But their efforts are slow and most
ly

cloud
-
washed virtualization


Higher adoption of Virtual Private Clouds than internal clouds

3.

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?

0%
10%
20%
30%
40%
50%
60%
70%
2010 (Actual)
2011 (Actual)
2012 (Actual)
2013*
2014+ **
IaaS
PaaS
SaaS
“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”)

APAC

is approx. 12
months behind in
adoption

Base: 2,200 to 2,444 IT software decision
-
makers US & Europe

Source:
Forrsights

Software Survey, Q4 2012

Cloud adoption is accelerating

*Planning to implement in the next 12 months

**Planning to implement in a year or more

© 2013 Forrester Research, Inc. Reproduction Prohibited

4


What are your firm

s plans to adopt the following as
-
a
-
service technologies?


Enterprises are adopting cloud faster

By the end of 2013, about 40% of all companies

will be using IaaS (50% by 2014!
)

Base: 2,200 to 2,444 IT software decision
-
makers

Source: Forrsights Software Survey, Q4 2012

SaaS

IaaS

PaaS

China will be a key engine of this growth

Source:
Forrester Research Inc., December 2011

$ millions

Virtual private cloud
services evolved from a
traditional managed model
and will also gain market
momentum in China
moving forward.

Public cloud services will
reach $40.8 billion
globally and $3.83 billion
in China by 2020
.

Public cloud services will
reach $40.8 billion
globally and $3.83 billion
in China by 2020.

The Chinese government’s cloud strategy


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 m
2


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


Local government incentives: focus on public cloud
projects, get:


B
enefits on land, tax, and energy

Provinces with announced
cloud projects

42%

42%

45%

48%

49%

49%

53%

56%

63%

65%

69%

69%

72%

Ability to substitute upfront costs with regular monthly…
Having access to a wide ecosystem of solutions…
Iterative deployment model suports a higher level of…
Improve collaboration with business partners…
Gaining a feature or functionality that is not available…
Lack of in-house IT staff to maintain a traditional…
To support a large number of mobile and remote users
Lower overall costs
Support business innovation with new capabilities
Faster delivery of new features and functions from…
Improved business agility
Allows us to focus resources on more important projects
Speed of implementation and deployment
Agility
and
speed

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”)

Source:
Forrsights

Software Survey, Q4
2012

Base: 1,429 software decision
-
makers at firms who are using or planning to use
SaaS

Cost

is

secondary

© 2013 Forrester Research, Inc. Reproduction Prohibited

8

Base: 124 North American and European enterprise software developers using cloud; Source:
Forrsights

Developer
Survey, Q1 2013

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 c
loud
environment in the past 12 months?” (Select all that apply)

22%

22%

23%

25%

25%

26%

31%

35%

36%

38%

40%

eCommerce site
Marketing site
Batch jobs
Social computing/collaboration
A new business service
High-performance computing
Application testing and QA
Corporate intranet
Internal web business applications
Mobile sites/applications
Application integration
© 2013 Forrester Research, Inc. Reproduction Prohibited

9

Base: North American and European enterprise software developers; Source:
Forrsights

Developer Survey, Q1 2013

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 p
ast

12 months?” (Select all that apply)

4%

31%

3%

4%

5%

3%

3%

6%

16%

6%

10%

16%

22%

35%

32%

32%

33%

2%

3%

20%

20%

21%

21%

22%

24%

26%

30%

31%

35%

45%

54%

57%

58%

66%

Other (please specify)
Have not used open source software
Management and monitoring (e.g., Nagios, Cacti, Shinken)
Release/deployment management tools (e.g., Chef, Cf Engine, Puppet)
NoSQL DBMSes (e.g., Apache Hadoop, MongoDB, Riak, Couchbase)
Business applications (Sugar CRM, Bravo)
Portals or mashup servers (e.g., Liferay, JBoss Portal, eXo)
Business intelligence tools (e.g., BIRT, Jasper Reports, Spago)
SCM tools (e.g., Git, Subversion, Mercurial)
Content management systems (e.g., Alfresco, Drupal)
Application frameworks (e.g., Spring, Rails, Zend)
Build and release management tools (e.g., Hudson/Jenkins, Maven, Ant)
Application server (e.g., JBoss, Tomcat)
Development IDEs (e.g., Eclipse, NetBeans)
Relational DBMSes (e.g., MySQL, PostgreSQL, SQLite)
Web servers (e.g., Apache, nginx)
Operating systems (e.g., Red Hat Linux, Suse, Android)
Using cloud
computing/elastic
applications (N = 125)
Not using cloud
computing/elastic
applications (N = 572)
© 2013 Forrester Research, Inc. Reproduction Prohibited

10

OpenStack

trending in China


Awareness
of
OpenStack

is strong in
China
thanks to
COSUG

(China
OpenStack User Group
)


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

Traffic on docs.openstack.org

Source: COSUG, as of 2012

© 2013 Forrester Research, Inc. Reproduction Prohibited

11

Wide expectations for
OpenStack

in China

24%

22%

17%

12%

10%

7%

6%

2%

If you are considering using OpenStack, why?

OpenStack is open source
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
Can be applied to public cloud solutions
Meeting the demand for cloud storage
Other
Source: COSUG, 150 cloud/virtualization practitioners in
China 2012

We are confused about the
vendor offering and what is
really being delivered as
-
a
-
service

We cannot manage security
to our strict standards

We cannot manage
compliance and risk to our
strict standards

Our legacy applications
cannot be moved to a
public cloud infrastructure

We cannot find
SaaS

applications that meet our
needs

We cannot figure out how
to set up a contract that
fully protects us

We are not comfortable
with volatile per
-
use pricing
models

We do feel the
technology/model is not
fully mature

We do not want to use
small startup vendors

We have not fully
depreciated our current
hardware/software

We do not have the vendor
management expertise to
effectively govern the
suppliers

It's not clear whether public
as
-
a
-
service offerings can
be used as a substitute or
replacement for traditional
IT services/outsourcing

0%
10%
20%
30%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Business concerns

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


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?”

© 2013 Forrester Research, Inc. Reproduction Prohibited

14

“We have no formal [cloud]
strategy/approach”

“We are executing on a formal [cloud]
migration plan”

Base: :
1,058 enterprise IT services decision
-
makers ;*1,050 enterprise
IT services decision
-
makers


How would you describe your approach to using [cloud] services, today and in 12 months?”

Source: Forrsights Services Survey,
Q3 2012 & Q3 2013*

IT Ops is beginning to take control of the cloud strategy

38%

21%

12%

2012
2013
2014
10%

24%

28%

2012
2013
2014
IT priority in the next 12 months:

Create
a comprehensive strategy and implementation plan
for public cloud and other as
-
a
-
service offerings


High
34%; Critical 21%

The cloud evolutionary paths are

independent of each other

© 2013 Forrester Research, Inc. Reproduction Prohibited

16

Business service over cloud is
most
popular
scenario

33%

28%

26%

12%

1%

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.
No plan, being learning the OpenStack architecture
and technology
Considering using OpenStack to build the internal
virtualized or private cloud system in our company
Considering using OpenStack to build public IaaS
cloud platform in our company, so as to provide IaaS
service for the public.
Other
Source: COSUG, 150 cloud/virtualization practitioners in
China 2012

© 2013 Forrester Research, Inc. Reproduction Prohibited

17

Nearly half of
OpenStack

projects in China are
making
substantial
progress

51%

26%

16%

7%

How is your OpenStack project progressing, or how is it progressing in your team or
company?

At the beginning of understanding; make
little progress
Having begun internal testing
Already very familiar with OpenStack,
under active development
Having begun online operations
Source: COSUG,
around 105 (150*69%) cloud/virtualization
practitioners in
China using OpenStack 2012

© 2013 Forrester Research, Inc. Reproduction Prohibited

18

1%

1%

2%

2%

3%

3%

4%

4%

5%

5%

6%

6%

7%

7%

8%

9%

9%

9%

10%

13%

23%

25%

32%

33%

34%

40%

CloudStack, not a distribution of it
Piston Cloud
Egenera
Huawei
ASG
OpenStack, not a distribution of it
Eucalyptus
Morphlabs
Canonical
Embotics
Nebula
VCE
Rackspace
SUSE
BMC
CA
Tibco
Custom/in-house solution
RedHat
Dell
Citrix
HP
IBM
Cisco
Microsoft
VMware
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

Which internal private cloud vendor do you use?

VMware
-
based

Unique platform

OpenStack

CloudStack


Eucalyptus

Custom

Collectively, Open Stack is the most popular choice

© 2013 Forrester Research, Inc. Reproduction Prohibited

19

OpenStack trends in China

Visionary local

technology vendors

are using OpenStack








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

Local

Companies

Chinese

Name

Briefing

华为

Telecom equipment manufacturer and service provider




IT outsourcing

service provider (merged as Pactera)


标软件

Operation system and OA software ISV

广
联达

IT service provider in construction

industry

© 2013 Forrester Research, Inc. Reproduction Prohibited

20

Lack of professional training and poor ease of use are
major concerns of end users to adopt
OpenStack


18%

4%

27%

31%

19%

1%

Which of the following factors would be your concerns to adopt OpenStack?

Difficult to recruit OpenStack talents
OpenStack technology or architecture is not good
enough
OpenStack is not friendly to end users
Lack of professional training of OpenStack results in
the slow progress
Lack of professional OpenStack service support
Other
Source: COSUG, 150 cloud/virtualization practitioners in
China 2012

Recommendations


Engage your empowered leaders


Understand the business reasons for
their actions


Identify the next steps that will help them
be more successful


Determine how I
T

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

Get cloud
right

Traditional
Outsourcing

The hybrid
e
nd
g
ame

Virtual

Internal
cloud

Decision tree

Workload management

GRC

Public
cloud

Virtual

hosting

CapEx

Common

Custom

OpEx

Flexible
OpEx

Transient

Fixed

Metered

Owned

Physical

Common

Transient

Metered

Custom

Fixed

Owned

Thank you

James Staten

jstaten@forrester.com

@staten7


Charlie Dai

ckundai@forrester.com

@
CharlieKunDai