Executive Commentary: Cloud Computing Milestones for 2010

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 1February 2010Executive Commentary: Cloud Computing Milestones for 2010

Executive Commentary: Cloud Computing Milestones for 2010

Zeus Kerravala, Distinguished Research FellowAgatha Poon, Senior Analyst

Feb. 24, 2010


Discussion Panel

Doug HaugerGeneral Manager, Windows Azure, Microsoft Raj NathanExecutive VP and Chief Marketing Officer, Sybase Agatha PoonSenior Analyst, Yankee GroupJayshree Ullal President and CEO, Arista


Agenda

Clouds in 2010

What Is Cloud Computing?

Defining 2010 Milestones

Cloud Barriers

Recommendations for Enterprises

Q&A


Clouds in 2010: Evolution or Revolution?

• Two main schools of thought

• Evolutionary: Cloud computing not as a momentous change, but as a progressive transformation of existing technology

• Revolutionary: Cloud computing changes everything

• The two schools of thought about cloud computing coincide with enterprise viewpoints

2%

10%

37%

46%

0% 10% 20% 30% 40% 50%

It's no more than marketing hype

Current offerings aren't suitable for myorganization

It's an enabling technology that can drivebusiness transformation and innovation

It's an evolving concept that will take years tomature

Cloud Computing: Enterprise Perceptions

Source: Yankee Group Anywhere Enterprise--Large: 2009 U.S. Transforming Infrastructure and Transforming Applications Survey, Wave 1-12


Discussion: What Is Cloud Computing?

What elements are importantto include when defining cloud?

Do you envision cloud as anevolution or a revolution?

Doug HaugerGeneral Manager, Windows Azure,

Microsoft

Raj NathanExecutive VP and

Chief Marketing Officer, Sybase

Agatha PoonSenior Analyst, Yankee Group

Jayshree Ullal President and CEO, Arista


Cloud Computing: Key Characteristics

Characteristics Pay as you go Scalable Instant provisioning Virtualized information Multi-tenanted Service-level agreements (SLAs)

Dynamically scalable

virtualized information

services delivered on-demand

over the Internet


What Is Cloud Computing?Exploring Cloud Computing Through Multiple Lenses

Developing a unified definition of cloud computing is key to bringing clarity—and customers—to a cloudy market


Discussion: Defining 2010 Milestones

In 2010, what will be thesignposts that cloud computing isprogressing successfully?


Microsoft






When Aspirations Meet Realities

Cloud providers have sky’s-the-limit hopes for market adoption, but enterprise customers are at a different altitude.

Strong demand for advanced orchestration tools

A major shift to cloud computing from traditional IT

Corporate private cloud deployment stimulates uptake

Ability to deliver security SLAs

Aspiration

Security and availability are the biggest challenges preventing the adoption of cloud services

Cloud computing-related spending continues to be tight

Private clouds are bothopportunities and challenges

Enterprises are looking for solutions to hide the complexity

of cloud management

Reality Check


Cloud Computing Investment Will Stay Tactical

Next 12 months Next 24 months

A third to one-half of IT budget spent on cloud services

Source: Yankee Group Anywhere Enterprise: 2009 U.S. Transforming Infrastructure and Transforming Applications Survey, Wave 1-12, Large and SMB

12% of enterprises9% of SMBs




More than half of IT budget spent on cloud services5% of enterprises6% of SMBs


Less than a third of IT budget spent on cloud services

Note: Numbers are rounded


Defining 2010 MilestonesWill a Growth Story Unfold in 2010?

Near-term opportunities lie in solutions that provide a quick fix for existing IT challenges

or deliver measurable business results

in a short period of time


Discussion: Cloud Barriers

What are some of the major barriers for cloud computing in 2010?

Will cloud computing makenetwork equipment – networkswitches, servers, etc. – obsolete?


Microsoft






Mixed Blessings in the Cloud: Trends for 2010

Cloud providers will be able to grow mindshare but not market share in 2010

Private clouds are both opportunities and challenges

Telecom providers will step up to close the gap between public and private cloud environments

Cloud providers and infrastructure builders will invest in security and compliance management

The collaboration between infrastructure builders and softwarevendors will intensify

The cloud venture is on, but enterprises will remain tactical.


Discussion: Recommendations for Enterprises

What is your top recommendation forenterprises seeking to capitalize oncloud in 2010?


Microsoft






Q&A

Download a free copy of the report by registering as a Yankee Group guest“Clouds in 2010: Vendor Optimism Meets Enterprise Realities” (Jan. 2010)

http://www.yankeegroup.com/cloudsIn2010.do

• Analyzes in-house enterprise survey data

• Features interviews with top-level executives from 25 companies in the IT and communications industry:


Thank You

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Zeus Kerravala, Distinguished Research [email protected]

Agatha Poon, Senior [email protected]

Upcoming Yankee Group webinar:Emerging Markets and Next-Gen BroadbandMarch 30, 2010 | 11am ETRegister at www.yankeegroup.com

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Executive Commentary: Cloud Computing Milestones for 2010