The State of the Hybrid SharePoint Ecosystem 11/19/2018 2:48 PM THR2055 The State of the Hybrid SharePoint Ecosystem Christian Buckley Office Servers & Services MVP Founder & CEO of CollabTalk LLC @buckleyplanet © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Why focus on Hybrid?

Organizing for the Cloud

As SharePoint continues to evolve its footprint, companies are demanding flexible architectures to help them better meet internal and external collaboration needs Reducing costs Reducing headcount Doing more with less Focusing less on traditional IT activities and more on activities that will help drive the business forward

https://www.microsoft.com/en-us/cloud-platform/hybrid-cloud

Research Overview http://hybrid-sp.collabtalk.com/

Research Sponsors

Background As collaboration moves from on-prem to the cloud, many organizations struggle with moving years of on-premises infrastructure and data to the cloud. There is no accurate data as to how many customers are actively pursuing hybrid solutions as a strategy versus displacing on-prem environments with the cloud. It is unknown the reason why customers are not adopting the cloud version of SharePoint, and engaging this new product

Problem Statement Estimate the market size of SharePoint Hybrid market Understand why customers remain on-premises Identify fears and concerns of moving SharePoint to the cloud Outline challenges for customers considering migrating to the cloud Understand how vendors and Microsoft are addressing these challenges

Market Research – Target Audience Microsoft Marketing Engineering Sale Channel ISV’s SIS Customers Community influencers and MVPs Discussion group and online social network participants Sponsor contacts Interviews with SI’s and ISV’s SI and ISV customers

Research Methodologies Secondary market research Databases used for initial research Gartner Emarketer Statista Factiva Analysis and recommendations Primary market research   Surveys Interviews Profile modeling

Research Findings

Mitigate Security and Customization Concerns Main Recommendations Microsoft Mitigate Security and Customization Concerns ISV’s/SI’s Consider Hybrid as a Strategy End-Users

Key Issues Future of Hybrid? Security Cloud Flexibility Control of Data Cost of Integration

Security and Customization Concerns

Mitigate Security and Customization Concerns

Security Insights CURRENT SHAREPOINT MESSAGING Hybrid.office.com (Apr 17, 2017)

Security Insights CURRENT SHAREPOINT MESSAGING Hybrid.office.com (Apr 17, 2017)

Security Insights CURRENT SHAREPOINT MESSAGING Hybrid.office.com (Apr 17, 2017)

21% Customization Insights Gartner reports that “Migration of customizations used in on-premises installations is the biggest blocker to cloud migrations of SharePoint.” Jared Shockley, Senior Service Engineer at Microsoft 21% Of users experience "inability or difficulty with customization“

Mitigate Security and Customization Concerns Recommendation 1: Mitigate Security and Customization Concerns Educate customers about Microsoft cloud security Make security the primary message in product positioning Microsoft Security Perception Empower customers with more flexibility Optimize updates for compatibility Offer support to help in transition process Customization Provide an efficient communication channel for customers Provide prompt service to lower loss of control perception Data Control

Mitigate Security and Customization Concerns Recommendation 1: Mitigate Security and Customization Concerns Security Perception Aid Microsoft in education of existing cloud security Assess customers’ security needs and identify gaps in current solution Offer additional security services (as needed) ISVs/SIs Customization Invest in solutions for customers moving legacy applications Close SharePoint flexibility gaps offering third-party solutions

Mitigate Security and Customization Concerns Recommendation 1: Mitigate Security and Customization Concerns End-Users Assess the security level the company needs Take advantage of all security tools (i.e. Single sign on) Security Plan carefully how to move legacy solutions Get to know how currently automatic updates can impact customized solutions Customization

Consider Hybrid as a Strategy

Growth of Hybrid Market Market by Users Hybrid Market Share 2017 Hybrid 32% $3.2B $5.3B Hybrid 46% 2017 2020 2020 25

Market Distribution of Licenses 2020 20% 66% 45% 55% 80% 34%

Company Size Distribution of Respondents

# Of On-Prem Version Used in Organizations

On-Premises Versions

Consider Hybrid as a Strategy Recommendation 2: Consider Hybrid as a Strategy 1 Enable customized servers to migrate effectively Improve Migration 2 Prepare and offer detailed migration plans for customers 3 Microsoft Improve communication between SPO and on-prem versions Invest in Compatibility 4 Microsoft Make Hybrid comfortable for users 5 Continue supporting on-prem as part of Hybrid environment 6 Optimize SPO to cater to Apps, Storage, SSO, Team Sites, etc. Optimize for Usage 7 Optimize on-prem versions to cater to sensitive data storage 8 Stress that Hybrid is a viable, growing solution for many users Focus Marketing on Hybrid 9 Share successful migration stories and solutions with users

Consider Hybrid as a Strategy Recommendation 2: Consider Hybrid as a Strategy 1 Offer expertise in transitioning customized/legacy applications Offer Hybrid and Cloud expertise 2 Continue to offer on-prem solutions along with cloud/Hybrid. ISVs/SIs End-Users 3 Hybrid market is growing significantly every year. Enter, stay and monetize with the expertise Follow the Market 4 In hybrid space, focus on on-prem and hybrid clients 5 Form long-term strategic relationships with clients to transition from on-prem to Hybrid, and then move on to cloud eventually Strategic relationships 6 Offer clients the strategy to transition accurately estimating the costs and time needed for the move

Hybrid: The Best of Both Worlds Recommendation 2: Consider Hybrid as a Strategy 1 Learn how you could optimize Hybrid for your company Hybrid: The Best of Both Worlds 2 Determine which environment fits each of your SP tools best End-Users 3 Recognize that completely on-prem as a strategy is shrinking, and will likely receive less focus from Microsoft over the years Follow the Market End-Users 4 Focus on SPO and Hybrid options 5 Start-Ups: Start on Cloud, Enterprises: Gradual Migration Plan Ahead 6 Ensure management and training are prepared for migration 7 Learn how others have successfully migrated Look for Solutions 8 Consult with ISVs, SIs, and Microsoft

SUMMARY Microsoft ISVs/SIs End-Users Focus marketing on security of Hybrid space Reinforce message of cloud security Analyze and Optimize Improve migration compatibility Offer Hybrid and cloud solutions Plan ahead/partner with ISVs/SIs

The State of Hybrid SharePoint About CollabTalk CollabTalk is an independent research and technical marketing services company. We take a collaborative approach to everything we do, augmenting our capabilities with a deep network of partners and community influencers. The State of Hybrid SharePoint http://hybrid-sp.collabtalk.com/ Customers include many well-known brands within the Microsoft ecosystem:

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11/19/2018 2:48 PM © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.