WEBINAR Cloud Predictions 2016 Dave Bartoletti, Principal Analyst Lauren E. Nelson, Senior Analyst December 16, 2015. Call in at 10:55 a.m. Eastern time

Looking into the future… Cloud Predictions 2016

Predictions 2016 Size matters: Top vendors gain and others retreat or refocus Hyperscale clouds report true cloud revenue with impressive profits. Many providers adapt to offer managed services for the megaclouds. Demand for hybrid cloud management solutions spikes. Automation finally chips away at cloud security fears. Hyperconverged solutions with containers become commonplace. Networking becomes the linchpin of hybrid cloud. Systems of record drive new growth. Geopolitical dynamics create opportunities for local competition. Cloud brokering recedes as a distinct category in favor of broader cloud governance. OpenStack leaders attempt an OpenStack public cloud system.

1. Size matters: Top vendors gain and others retreat or refocus. PUBLIC

2. Hyperscale clouds report true cloud revenue.

3. CSPs adapt to offer managed services for the megaclouds.

4. Demand for hybrid cloud management solutions spikes.

5. Automation finally chips away at cloud security fears. 704 enterprise BT Infrastructure decision-makers, August 2015 Note: Only top 6 concerns shown.

… Security also drives adoption Source: “Market Overview: Cloud Workload Security Management Solutions — Automate Or Die” Forrester report

6. Hyperconverged solutions with containers become common.

7. Networking becomes the linchpin of hybrid cloud. Source: “Beware The Pitfalls Within Networking For Hybrid Cloud” Forrester report

8. Systems of record drive new growth. Source: http://www.cio.com/article/2995064/cloud-computing/real-world-lessons-from-aws-re-invent-2015.html

State of Migration: Q4 2015 Re-entry into the conversation Methods for migration Existing apps not built for the cloud generally suffer from poor performance in the cloud Tools have tried to mitigate this for years Some enterprises are looking at fitting the right migration strategy for each app Targeted apps: End of life, low- value, potentially replaced by SaaS in future On-prem: some use it as a hypervisor conversion opportunity Lift and shift Complete redesign or full replacement Hybrid extension Partial redesign Source: “State Of The Cloud: Migration, Portability, and Interoperability, Q4 2015” Forrester report

9. Geopolitical dynamics create opportunities for local competition. Source: 2358 BT Infrastructure decision-makers

Explicitly looking for non-US based outsourcers Source: 2358 BT Infrastructure decision-makers

10. Cloud brokering disappears in favor of cloud governance. Re-engage with your customers Market your capabilities Become a cloud service provider CLOUD EXPERIMENTATION OPERATIONS CLOUD OPTIMIZATION DELIVERY CLOUD LEVERAGE GOVERNANCE Define new metrics Account support Monitoring Standardization Automation Self-Service Performance mgmt. Hybrid workloads Cost & vendor mgmt. CLOUD BUILDER CLOUD OPERATOR CLOUD BROKER

11. OpenStack leaders attempt an OpenStack public cloud system

OpenStack is ready for the enterprise (cont.) Enterprise user list significant Best Buy, BMW, Comcast, Disney, Walmart, Time Warner Cable, Wells Fargo, American Express, etc. Primarily two use cases: Enabling self-service developer access for DevOps developers. Building a low-cost environment for your systems of engagement apps Interoperability and portability is progressing. OpenStack is not a cloud manager and it likely isn’t your developer portal. Key value adds: Open means choice Net-new launch point Cost minimization potential Active and engaged community

Q&A

Lauren E. Nelson lnelson@forrester.com @Lauren_e_nelson Dave Bartoletti dbartoletti@forrester.com @DaveBartoletti

Meet the cloud team John Rymer Lauren Nelson Dave Bartoletti Platform-as-a- service (PaaS) Public cloud Lauren Nelson Private cloud Hosted private cloud Dave Bartoletti Cloud management Public cloud Liz Herbert Software-as-a- service (SaaS) Bill Martorelli Hosting and managed services Cloud contracting Supply chain Sophia Vargas Data center strategy Paul Miller Cloud generalist European cloud adoption Andre Kindness Cloud networking Robert Stroud Composable infrastructure SDDC Noel Yuhanna Database-as-a- service Rich Fichera Converged infrastructure private clouds Andras Cser Multi-layer cloud security across IaaS, PaaS, and SaaS Rick Holland Cloud security and security operations Michael Barnes APAC cloud adoption Frank Liu APAC cloud adoption Naveen Chhabra APAC cloud adoption DR/BC