Building confidence in Cloud services › bcs-org-media › 2894 › bcs_cif_greenit_dec2013.pdfUK Cloud Adoption & Outlook 1.66M SMBs in the UK (1 to 250 employees) UK SMB Cloud Market

www.cloudindustryforum.org

Building confidence in Cloud services

Alex Hilton [email protected]

2013

MARKET

RESEARCH


About the Cloud Industry Forum

The Cloud Industry Forum (CIF) is a membership led industry

body that champions and advocates the adoption and use of

Cloud-based services by business.

We use our resources to establish best practice, lobby and

educate on all matters that will aid adoption of credible Cloud

services.

We manage a certifiable Cloud Service Provider (CSP) Code of

Practice that provides transparency of Cloud services to enable

users to assure clarity and confidence in their choice of

provider


A trusted voice for industry

Legal

Standards

CertificationValue

Mgmt

Research


State of the nation(s) – EU & UK

European Commission estimates that Cloud computing

will boost EU GDP by €600Bn by 2020

Generate 2.5 million new jobs by 2020

UK tech industry now employs 1.5m people

UK tech sector is biggest net exporter of G7

69% of UK businesses are using a Cloud service

Very high satisfaction levels

Perceived security risks remain biggest barrier

Yet no common standards framework for service delivery

exists


2013 CIF research

Continued growth

It’s still new and still disruptive

69% of businesses are using a Cloud

service

91% are very satisfied


UK Cloud Adoption & Outlook

1.66M SMBs in the UK (1 to 250 employees)

UK SMB Cloud Market in 2012 = £1.2B (all

cloud categories)

20% CAGR over the next 3 years (£2B in

2015)

“Between now and the end of 2015,

replacement of in-house servers with new

solutions could add more than 400,000 new

cloud servers to the market for the SMB

market”Source: Parallels SMB Cloud Insights for the UK 2012 http://www.parallels.com/uk/smbreport/

Source: Cloud Industry Forum Aug 2013

Market Status

http://www.parallels.com/uk/smbreport/


All sounds great. So what’s the problem?

The opportunity is broad and the ‘Cloud’ brings benefits.

Breadth and variety of end customer is complex.

Cloud adoption by SMBs slower than anticipated by need, perception

& channel

Requires active promotion and education of the market by the channel for rate of

adoption to increase

Traditional SMB Reseller community not aligned with cloud

proposition

Some parts of the Channel reluctant to stimulate demand

Business model changes for resale channel partners are significant.

Most solutions/messaging plays out to SP’s and Enterprises not the

SMB


Understanding the Objectives achieved in Cloud

Migration


Sensitivity to data location is diminishing –

but still an issue


IT staff levels remain largely unchanged

post cloud adoption


Barriers – CIF research

Applications that are not yet being widely accessed as

a Cloud service include:

Accounting and finance (67%)

Personnel and payroll (63%)

53% of companies regard perceived loss of efficiency

and control as a barrier

52% raise data security concerns

41% highlight existing investments made in on-premise

solutions

40% say uncertainty over data protection obligations


A Short Cut: CIF Certified CSP’s

Code of Practice – helping CSPs

overcome their customer concerns


What is the CIF Code of Practice?

T R A N SP AR ENC Y C A P AB I L I T Y A C C O UN T AB I L I T Y


“The Three Pillars” of the CIF Code of Practice

Transparency

Corporate identify and responsibilities

Full scope of operations

Compliance with Code

Third-party coverage of Code

Commercial terms

Personnel profile

Customer migration paths

Service dependencies

Complaints and escalation procedures

Accountability

Compliance with Code

Behaviour with customers

Capability

Information security management

(including data protection)

Service continuity management

Service level management

Supplier management

Software license management

(including license compliance)

Complaint handling

Environment impact management


Cloud Implementation is not all Self Service

Most end users rely on third parties

Satisfaction levels are high

Many see room for efficiency

improvement for future cloud

service roll outs

Roll out was perceived to be

swifter than an on-premise

solution

Key Stats on Implementation approach

So

urc

e:

Clo

ud

In

du

str

y F

oru

m


The Green Agenda. Some harsh truths

Data Centres currently account for 2% of global

electricity use

The carbon emissions of the electricity powering the

servers are directly relevant

The big providers are all keen to promote “green cloud”

Cloud can be green, but is it greener than on premise?


How “Green” is your Cloud provider?

So Cloud is greener right?

Do scaled datacentre operations mean

better green IT?

Or are we moving the deck chairs?

Datacentre providers want to sweat

their assets and lower their costs.

Outside of Capex, their largest costs are

power, backup and cooling.


Studies supporting Green IT *

Moving business applications to the cloud can

save 30 percent or more in carbon emissions per

user.

Servers running at higher utilisation rates

consume more power.

However the resulting increase is more than

offset by the relative performance gains.

* Microsoft & Accenture Environment and Energy

Commission research 2010


The proof points

Increasing the utilisation rate from 5 to 20 percent will

allow a server to process four times the previous load

while power consumed by the server may only

increase by 10 or 20 percent


Factors that enable cloud computing to

lower energy use

Dynamic Provisioning:

Reducing wasted computing resources through better matching of server

capacity with actual demand.

Multi-Tenancy:

Flattening relative peak loads by serving large numbers of organisations

and users on shared infrastructure.

Server Utilisation:

Operating servers at higher utilisation rates.

Data Centre Efficiency:

Utilising advanced data centre infrastructure designs that reduce power

loss through improved cooling, power conditioning, etc.


www.galahad.uk.com

[email protected]

0207 193 1183


Supplying Cloud Services

Module 1. A straightforward Guide to Cloud Terminology

and Taxonomy

Module 2. Understanding Buyer Perceptions and Drivers for

cloud

Module 3. Delivering the Business Case for Cloud

Module 4. Identifying Key criteria to aid prospects to

accurately scope solutions

Module 5. Negotiating the contract and SLA

Module 6. Sales Success in Cloud Services


Buying Cloud Services

Module 1. A Guide to Cloud Terminology and Taxonomy

Module 2. Myth-busting the Hype and the FUD

Module 3. Determining the Business Case for Cloud

Module 4. Identifying Key criteria to scope

solutions

Module 5. Selecting an appropriate Cloud Service Provider

Module 6. Negotiating the contract and SLA

Module 7. Management & Governance of IT in the cloud


www.galahad.uk.com

[email protected]

0207 193 1183


UK Cloud Awards 2014

26th February 2014

Nominate on line across 17 awards by Jan 31st

www.ukcloudawards.co.uk/

http://www.ukcloudawards.co.uk/


Summary

Cloud is the right bet – 69% adoption 91% satisfaction

The future is hybrid IT

Certification, education and confidence are essential

Code of Practice

Transparency, Accountability, Capability

Green is very relevant but not in isolation


Contact:

Cloud Industry

Forum

[email protected]

A new era in Hybrid IT:

Than

k Yo

u!

Download the research

papers from


mailto:[email protected]

Documents

Building confidence in Cloud services › bcs-org-media › 2894 › bcs_cif_greenit_dec2013.pdfUK Cloud Adoption & Outlook 1.66M SMBs in the UK (1 to 250 employees) UK SMB Cloud Market