1. Webinar The Future Of Cloud Computing — Part 1
James Staten, Vice President, Principal Analyst
July 9, Call in at 12:55 p.m. Eastern time

2. Agenda
What’s driving cloud services to hypergrowth and why this matters to you
Understanding the cloud service provider (CSP) landscape and how it is evolving
What is “the uneven handshake” and how CSPs can help you manage it

3. Agenda
What’s driving cloud services to hypergrowth and why this matters to you
Understanding the cloud service provider (CSP) landscape and how it is evolving
What is “the uneven handshake” and how CSPs can help you manage it

4. Our observation over time: technology cycles
Each technology “cycle” (the result of technology disruption) is characterized by three periods or phases. Organizations follow the “phase du jour” in their approach to identifying problems and providing answers to business requirements.
The exploration phase
Intense technological competition
Search for a dominant technology
Source: February 13, 2014, “Transform Infrastructure and Operations For The Future Technology Management Cycle” Forrester report Note: All enterprises do not evolve at the same velocity through these phases. Some lag significantly.

5. Our observation over time: technology cycles (cont.)
The rationalization phase
Technological orientation is mostly set.
Competition is on service value.
The optimization phase
Technology is second; value is first.
Competition is on cost/value ratio.
Source: February 13, 2014, “Transform Infrastructure and Operations For The Future Technology Management Cycle” Forrester report Note: All enterprises do not evolve at the same velocity through these phases. Some lag significantly.

6. Each tech cycle’s adoption passes through the three phases
Mainframe (EDP) cycle
Exploration (1964 to 1974): focus on processor speed, SMP versus single CPU, OS war culminating with IBM VM, etc.
Rationalization (1975 to 1982): focus on software (unbundling of hardware/software), generalization of online transactional processing, introduction of networking “philosophies” (SNA, OSI, and X25) and PDN (public data networks), and generalization of ASCII as data code
Optimization (1983 to 1990): focus on packaged applications and dedicated systems (VAX and HP3000) and introduction of PC and Unix workstations; ends with a pivot to distributed systems to counteract IBM dominance in solution-oriented systems (ISV writing to the broadest platform base)
Source: February 13, 2014, “Transform Infrastructure and Operations For The Future Technology Management Cycle” Forrester report

7. Each tech cycle’s adoption passes through the three phases (cont.)
Distributed (IT) cycle
Exploration (1990 to 1998): technology wars (RISC and CISC), OS wars (UX, AIX, and Solaris), and introduction of “system management” (SNMP)
Rationalization (1999 to 2004): trends to standardize on Intel, Linux, and Windows; accent on software integration and dominance of TCP-IP and Ethernet
Optimization (2005 to present): commoditization, consolidation, and virtualization; IT becomes service-oriented.
Source: February 13, 2014, “Transform Infrastructure and Operations For The Future Technology Management Cycle” Forrester report

8. Where are we today?
We are concluding the optimization phase of client/server (traditional IT).
We are entering the rationalization phase of cloud computing.

9. Public cloud services will grow to nearly $200 billion by 2020
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

10. SaaS share of overall SW revenues now substantial
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

11. SaaS as complement: higher adoption than as a replacement
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

12. SaaS as complement: higher adoption than as a replacement (cont.)
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

13. Perceived benefits of SaaS have risen; concerns have stayed the same
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

14. Cloud platform adoption accelerating
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

15. Changing face of IT spending
Source: Forrester estimates

16. Huge shift to cloud environments in the next two years
“How much of the server-side code that you write is deployed to cloud environments today? How do you expect that to change in the future?”
Source: Forrester’s Forrsights Developer Survey, Q Sample size = 124 enterprise developers
Enterprise

17. Optimistic and growing companies are being more aggressive with cloud services
“What are your firm’s plans to adopt the following software-as-a-service technologies?” (By business outlook)
Base: 1,233 IT budget decision-makers; Source: combined budgets and BDM Q4 2012

18. Agenda
What’s driving cloud services to hypergrowth and why this matters to you
Understanding the cloud service provider (CSP) landscape and how it is evolving
What is “the uneven handshake” and how CSPs can help you manage it

19. The cloud service provider landscape breakdown
Source: May 19, 2014, “Understand The Cloud Service Provider Market Landscape” Forrester report

20. The cloud service provider landscape breakdown (cont.)
Source: May 19, 2014, “Understand The Cloud Service Provider Market Landscape” Forrester report

21. Most CSPs are managed service providers
Source: May 19, 2014, “Understand The Cloud Service Provider Market Landscape” Forrester report

22. The typical CSP’s cloud journey
Source: May 19, 2014, “Understand The Cloud Service Provider Market Landscape” Forrester report

23. Agenda
What’s driving cloud services to hypergrowth and why this matters to you
Understanding the cloud service provider (CSP) landscape and how it is evolving
What is “the uneven handshake” and how CSPs can help you manage it

24. Clouds can be confounding
What enterprises are used to:
What cloud services offer instead:
Negotiate SLAs
Long-term contracts
Specify the infrastructure and configuration
Make me compliant
Bend to my needs. I’m the customer.
Take-it-or-leave-it SLAs
Pay-per-use contracts
Preconfigured and deployed infrastructure options
I’m compliant. Are you?
Here are your choices. Go for it.

25. Vendor responsibility
High satisfaction on cloud platforms comes through managing “the uneven handshake”
Vendor responsibility
Customer
responsibility
Shared between you and an MSP
Physical support infrastructure (facilities, rack space, power, cooling, cabling, etc.)
Abstracted services (SaaS application, hosted framework, customization platform, configurable security, etc.)
Physical and virtual infrastructure security and availability (servers, storage, network bandwidth, etc.)
Basic monitoring
Element management
Your use of the application
Any technology supplementations (e.g., SSO, BCDR, and security)
Customization and governance (who has authority/responsibility to make changes)
Life-cycle management (upgrades, process change, and integration changes)
Customer experience (monitoring and management)
Business process monitoring and end user performance monitoring (visibility)
Dependency mapping and tracking
Capacity management

26. Recommendations Move cloud services to top-line portfolio position.
Get with the business to understand their use.
Determine which CSPs are strategic based on your corporate go-forward strategy.
Separate cloud service providers from handshake helpers.
Use cloud services as is.
Use handshake helpers to meet your SLAs.

27. Engage the cloud team James Staten John R. Rymer Lauren E. Nelson
Cloud lead
Cloud strategies
John R. Rymer
Cloud platforms, App design
Lauren E. Nelson
Private cloud Hosted private cloud
Dave Bartoletti
Cloud management Cost analysis
Liz Herbert
Software-as-a- service (SaaS)
Andrew Bartels
SaaS, IT budgets forecasting
William Martorelli
Hosting and managed services
Henry Baltazar
Cloud storage
Andre Kindness
Cloud networking
Noel Yuhanna
Database-as-a- service
Stefan Ried, Ph.D.
Cloud-based Integration
Andras Cser
Cloud security
Rob Koplowitz
Cloud-based collaboration
Charlie Dai
Cloud adoption in Asia

28. James Staten