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Enterprise Stakeholders Speak: Adoption Patterns, Barriers & Post-Adoption Cloud Sentiment Cloud Sentiment

September 12, 2012

Why Do Another Cloud Survey?

Peel back the onion on adoption patterns Assess postpostadoption reality vs buyer expectations Identify cloud market disconnects

Survey Respondents
100% = 346

Cloud Service Providers

Consultants / Advisors

31%

37%

32%
Enterprise / Cl d E t i Cloud Service Buyers
Proprietary & Confidential. 2012, Everest Global, Inc. 2

What Did We Look At?

Overall Enterprise Adoption Patterns


Use case Stack layer

Platform Verticalization

Underlying Adoption Drivers y g p


Business Technology

DecisionDecision-Making Process
Functional involvement Executive role

Adoption Results and Satisfaction


IT Business
Proprietary & Confidential. 2012, Everest Global, Inc. 3

Business Factors are Primary Drivers of Adoption

TOP ENTERPRISE CLOUD ADOPTION DRIVERS


1) Reduced time for application /

infrastructure provisioning
2) Flexible capacity 3) Lack of internal )

S Speed d Flexibility Scale

technical resources
4) Desire to variabilize cost 5) Reduction in TCO

(Total Cost of Ownership)


6) Industry-specific factors

Proprietary & Confidential. 2012, Everest Global, Inc.

While SaaS has Driven Most Adoption to Date, IaaS is Set to Accelerate
Enterprise Cloud Adoption by Cloud Layer
Already adopted Adopt in near future Adopt in distant future No plans to adopt

Enterprise IAAS Adoption Plans

Software as a Service (SaaS)

57% 28% 10% 5% 38% 25% 27% 10% 31% 26% 26% 18% 30% 36% 23% 11% 28% 27% 22% 23% 17% 27% 36% 20%

No plans for cloud infrastructure

Platform as a Service (PaaS)

18% 48% 34%

Public cloud (IaaS)

Private cloud (IaaS)

Business Process as a Service (BPaaS)

Already have cloud infrastructure

Plan to implement cloud infrastructure

Hybrid cloud (IaaS)

Proprietary & Confidential. 2012, Everest Global, Inc.

Future Adoption Plans Are Primarily Focused on Enabling Business Capabilities


Enterprise Cloud Adoption by Use Case
Application development/test environment
29% 25% 28% 28% 24% 31%
Future migration planned No migration planned Already migrated Currently migrating

19% 17%

Custom business applications

Collaboration / email

16% 13%

25% 46% 25% 42%

Disaster recovery/storage/data archiving

20% 14%

E-commerce and on-line tools

22% 25% 22%

32%

Business intelligence/analytics

19% 16% 26%

39%

ERP

18% % 19%

25%

37%

Proprietary & Confidential. 2012, Everest Global, Inc.

Enterprise Cloud Buyers are Satisfied

82% 64%

of cloud buyers met their flexible infrastructure objectives bj ti

71% 88%

of cloud buyers met their time to market objectives

were satisfied with the current results from their cloud initiatives

Expect to achieve greater benefits from cloud solutions in the future

Proprietary & Confidential. 2012, Everest Global, Inc.

Cloud Vendors Think Its About Cost. Its Not.


TOP ADOPTION DRIVERS ACCORDING TO: BUYERS:
1) Reduced time for application / infrastructure provisioning 2) Flexible capacity 3) L k of i t Lack f internal l technical resources 4) Desire to variabilize cost 5) Reduction in TCO (Total Cost of Ownership) 6) Industry-specific factors

CLOUD VENDORS:
1) Reduction in TCO (Total Cost of Ownership) 2) Flexible capacity 3) R d Reduced ti d time f application / for li ti infrastructure provisioning 4) Desire to variabilize cost 5) Lack of internal technical resources 6) Industry-specific factors

Proprietary & Confidential. 2012, Everest Global, Inc.

Vendors Think Management Buy-In is a Problem. Are They Talking to the Right People?
TOP ADOPTION BARRIERS ACCORDING TO: BUYERS:
1) Security concerns 2) Cloud service integration integration 3) Lack of budget for new initiatives 4) Lack of suitable cloud solutions 5) Lack of internal cloud expertise 6) Fear of vendor lock-in 7) Lack of management buy-in

CLOUD VENDORS:
1) Security concerns 2) Cloud service integration integration 3) Lack of management buy-in ) g y 4) Lack of budget for new initiatives 5) Lack of internal cloud expertise 6) Lack of suitable cloud solutions 7) Fear of vendor lock-in

Proprietary & Confidential. 2012, Everest Global, Inc.

Many Cloud Vendors are Misaligned with the Market


How the Enterprise is Buying Buying

Innovators

Transformers Leveraging cloud and next generation IT to create new, disruptive business , p models and strategic business advantage

Bus siness Driver D

Deploying SaaS and PaaS solutions to rapidly provide new business capabilities, and extend reach, with little or no IT involvement Opportunists Opportunists Selectively deploying PaaS and IaaS (public and private) solutions to drive improvements in agility and cost

Modernizers Modernizers Driving wide-scale IT modernization and transformation efforts through public, private and public hybrid cloud platforms

How Vendors are Selling Selling

IT

Incremental

Transformational

Adoption Approach
Proprietary & Confidential. 2012, Everest Global, Inc. 10

What Did We Learn?

1. Business ( t IT) is the Primary 1 B i (not i th P i Driver of Enterprise Cloud Adoption 2. Enterprise Buyers are Pretty Happy - So Far. 3. Service Providers Need to Adapt to the Next Generation Buying Center

Proprietary & Confidential. 2012, Everest Global, Inc.

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How To Get a Copy of the Full Survey

Download at:
http://www1.everestgrp.com/ccevent.html

Request a copy:
scott.bils@everestgrp.com 512-550-0207 (m) 214-451-3043 (o)

Proprietary & Confidential. 2012, Everest Global, Inc.

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