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Robert Mahowald August 26, 2015 VP, Cloud Software, IDC
1% is optimized 2nd wave of cloud adoption Cloud done right can yield big business benefits Robert Mahowald VP, Cloud Software, IDC August 26, 2015
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IDC interviewed Director-level and above respondents from a global sample of 19,080 enterprise executives responsible for IT decisions. Of this sample, the full survey was conducted on the 3,467 respondents actively using cloud for multiple workloads Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Enrico: “In terms of sequence I would start with Slide 6 and then expand on the content with slides 4 and 5 (Cisco sponsored research first and then additional data points from IDC)” Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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ORGANIZATIONAL IMPACT TIME (MONTHS) TO MAINSTREAM
Hybrid Cloud is the Dominant Operational Model ORGANIZATIONAL IMPACT TIME (MONTHS) TO MAINSTREAM A single department or a business unit Multiple departments or business units Companywide 0-12 12-24 24+ Cloud Open Source Hybrid Cloud Architecture Workload-aware management Trust and Data Sovereignty Continuous Delivery and DevOps Managing Risk in IT Sourcing Micro IaaS Industry Clouds and Data Consumerization of Development Skills 1 5 6 8 9 4 10 7 3 2 IT buyers are shifting to “Cloud also” strategy - Which endorsed Hybrid Cloud architectures 53% of Business customers indicate “Shadow IT” is a problem More than 65% of Enterprise IT organizations will commit to Hybrid Cloud - Proof of Concepts within next 12 months - Production in 2015 IT organizations want “liquidity” in some form to source, build, and pay for IT capability Data Sovereignty and Regulatory Compliance is one of top 3 concerns and key criteria for Cloud workloads Note: Size of the bubble indicates complexity/cost to address Source: IDC FutureScape: Worldwide Cloud 2015 Predictions, IDC, December, 2014
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Customer Budget Intentions Point to Hybrid Expectations
11% shift toward Hybrid Cloud potential architectures Note that future budget allocations for cloud delivery models grow primarily at the expense of spending budgeted for traditional in-house IT. Source: IDC FutureScape: Worldwide Cloud 2015 Predictions, IDC, December, 2014
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Hybrid Cloud Optimization Requires a Focus on Workloads
Choice to build or rent across different providers Flexible workload deployment and resource utilization Enables scalable services with elastic capacity Self-service interfaces for both users and IT Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”
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The Quest for Cloud Maturity
Currently implemented Will implement by end of 2017 Beyond 2017 Percentage of Respondents Having Implemented Each Task Adequate internal knowledge and use of important cloud best practices Standard configuration and provisioning templates for cloud workloads and infrastructure IT staff skills able to fully exploit cloud management and automation tools Ability to monitor, forecast ,and optimize server, storage and network resources dynamically Availability of IT headcount to support cloud Ability to use cloud to drive innovation, agility, and competitive advantage Consistent business and IT governance to define management policies and SLAs IT staff able to effectively evaluate and negotiate public cloud contracts Processes to share and reuse templates and best practices Collaborative business and IT governance to define management policies Standardized ROI and business case tools to evaluate costs and benefits Ability to accurately define costs and implement usage-based chargeback mechanisms Effective use of automation, self-service and orchestration tools Consistent service level monitoring across public/private/hybrid clouds Unified service catalog and self-service provisioning 89.5% of respondents state “strong desire” for Optimized Cloud maturity 0% 20% 40% 60% 80% IT operations teams need help to reach their goals Adequate internal knowledge/use of important cloud best practices Standard configuration and provisioning templates for cloud workloads and infrastructure Availability of IT headcount to support cloud transformation ~ 50% skills gap Consistent processes to identify apps to best benefit from cloud IT staff able to effectively evaluate/negotiate public cloud contracts Effective use of automation, self-service, and orchestration tools Source: IDC CloudView Survey, December N=2,855 [Q5] Thinking about your organization's ability to manage its cloud environments efficiently, please indicate whether you currently have implemented the following…
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Don’t Get Left Behind The Business Benefits of Achieving Greater Cloud Adoption Key Takeaways Cloud adoption is growing, but few companies have advanced cloud strategies in place Cloud adoption is driving significant benefits Private and hybrid cloud are a critical part of the mix Web-scale public cloud is making way for enterprise-class “provider-based clouds” Hybrid cloud requires workload portability, security, and policy- based control – There’s a skills gap to reach maturity goals Organizations studied are realizing $1.6 million in revenues and $1.2 million in reduced costs per cloud application
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Cisco Business Cloud Advisor A Framework to Make Informed IT and Business Decisions
Developed with IDC, Cisco® Business Cloud Advisor: Leverages analysis of more than 3,400 companies in 17 countries Correlates cloud adoption with business benefits, and delivers an actionable cloud strategy Based on primary market research conducted by IDC Provide fact-based framework to make cloud decisions STAGE Ad Hoc OPPORTUNISTIC REPEATABLE MANAGED OPTIMIZED Overall Cloud Adoption Insurance Employees North America DOMAIN
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