VMware Cloud Index Summary Report

Asia Pacific Cloud Computing Trends | October 2012

Summary Report

VMware Cloud Index 2012

About the VMware Cloud Index

The VMware Cloud Index 2012 is a commissioned study conducted by Forrester Consulting and ITR (in Japan). Now in its 3rd annual edition, the2012 study surveyed approximately 6,500 senior IT practitioners across the Asia Pacific region in eleven countries (Australia, China, HongKong, India, Indonesia, Japan, Korea, Singapore, Taiwan and Thailand).

Hong Kong, Indonesia and Taiwan were added to the study in 2012. Thesurvey was conducted in September and October 2012. A summary of the VMware Cloud Index has been published at www.vmware.com/ap/cloudindex.

About VMwareVMware is the leader in virtualization and Cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2011 revenues of $3.77 billion, VMwarehas more than 400,000 customers and 55,000 partners. Thecompany is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com

Contact VMwarewww.vmware.com/ap/company/contact.htm

PAGE 2 | The 3rd Annual VMware Cloud Index

Please describe your companys business outlook for 2012 and 2013?

Describe their company as being in a growth or expansion phase in 2012 and 2013

Are uncertain or still in cost control mode with limited growth outlook

The trend shows a tendency for larger organizations to be more optimistic about growth and expansion

21%

79%

` Describe their company as being in agrowth or expansion phase in 2012 and2013

` Are uncertain or still in cost control mode with limited growth outlook

79% described their companyas being in a growth or expansion phasein 2012 and 2013 21% are uncertain or still in cost control mode with limited growthoutlook

` Asia Pacific continues to show significant business opportunitiesforVMware as Cloud services remain apriority.

` The trend shows a tendency forlarger organizations to bemoreoptimistic about growth andexpansion.

The 3rd Annual VMware Cloud Index | PAGE 3

Do you currently have a Cloud Computing initiative in place within the organization?

0

42% 33% 26%

Yes No, but planning to adopt No, and not planning to adopt

Base: 4,799 Senior IT Practitioners across APJ (interested in cloud); Forrester custom research prepared for VMware, October 2012

` Yes ` No, but planning to adopt ` No, and not planning to adopt

Base: 4,799 Senior IT Practitioners across Asia Pacific (interested in cloud). Source: Forrester custom research prepared for VMware, October 2012.

42% said they have a Cloud Computing related initiative inplacewhich is an increase of 10% from last year 33% said they didnt have aCloud Computing initiative in place, butare planning to implement one. 80%of these are planning toimplement within the next 18months

` Cloud adoption in Asia Pacific is on the rise.


Have you leveraged virtualization in your organization?

Yes No, but planning to adopt No, and not planning to adopt

6%

72%

22%

` Yes ` No, but planning to adopt ` No, and not planning to adopt

94% of companies have already leveraged or are planning to leverage virtualization in their organization and 48% have virtualized more than half of their production applications The benefits of moving to Cloud Computing are now well established and companies are ready to take the next step

` In Asia Pacific, virtualization rates have reached a critical mass, signalling the next wave in Cloud adoption is imminent.


On a scale of 110, how strongly do you agree with the following statements? Cloudcomputing will enable our organization to

0 20 40 60 80 100

75%

73%

70%

70%

69%

67%

64%

64%

59%

Base: 4,799 Senior IT Practitioners across APJ (interested in cloud); Source: Forrester custom research prepared for VMware, October 2012

Optimize our existing IT management and automation capabilities

Empower the business by simplifying access to IT resources

Support a more mobile and flexible workforce

Reduce IT costs

Compete more eectively in the marketplace

Ensure we only pay for the IT we actually use

Modify and/or improve our security capabilities and policies

Focus resources on compliance considerations and risk mitigation

Deploy a whole new generation of applications

Base: 4,799 Senior IT Practitioners across Asia Pacific (interested in cloud). Source: Forrester custom research prepared for VMware, October 2012.

75% of companies strongly agree that Cloud will optimise their existing IT management and automation capabilities 70% believe it supports a more mobile and flexible workforce Whilst 73% believe it will empower their business by simplifying the access to ITresources, only 59% saw the adoption of CloudComputing as an enabler in the deploymentof a whole newgeneration of applications

` Companies now see Cloud Computing as an enablerofmultiplebenefits.


Who made (or is likely to make) the final purchase decision for Cloud Computing in your organization? Who influenced the decision?

Decision-makers Influencers

Base: 4,799 senior IT practitioners across APJ (interested in Cloud); Source: Forrester custom research prepared for VMware, October 2012

56%

28%

9%

44%

35%

41%

36%

3%

17%

2% 3%

52%

CEO CIO ITManager

Business/department

head

Externalconsultant

Others

` Decision-makers ` Influencers

Base: 4,799 senior IT practitioners across Asia Pacific (interested in Cloud). Source: Forrester custom research prepared for VMware, October 2012.

The final decision making authority for Cloud projects rests withthe CEO (52%), the CIO (44%) or IT manager (35%) Whilst the most powerful influences of Cloud subscriptions are theIT manager (56%), the CIO (41%) and the CEO (36%)

` When making decisions on Cloud Computing purchases, thepower is now shifting to the business leaders.


On a scale of 110, how strongly do you rate the following concerns and/or barriers to overall Cloud adaption within your organization?

The top line concerns include data privacy Security for application development Agree that there is unsanctioned buying of

SaaS services by business outside of IT

0

20

40

60

80

100

69% 64% 40%

` The top line concerns includedataprivacy

` Security for application development

` Agree that there is unsanctioned buying of SaaS services by businessoutside of IT

Base: 4,799 senior IT practitioners acrossAsia Pacific (interested in Cloud). Source: Forrester custom research prepared for VMware, October 2012.

The top line concerns include data privacy (69%) and securityforapplication development (64%). More specifically, 40%agree that there is unsanctioned buying ofSaaSservices bybusiness outside of IT

` Despite the success ofVirtualization being considereda businessissue, there are still concerns about thetechnology.


How strongly do you rate the following IT capabilities in terms of their importance to enabling Cloud Computing?

0

20

40

60

80

100

55% 67%

Organizations training their sta to supportCloud initiatives

Organizations currently with skills and infrastructureto create and manage a private Cloud

Base: 4896 Senior IT Practitioners across APJ Forrester custom research prepared for VMware, October 2012

` Organizations training their staff tosupport Cloud initiatives

` Organizations currently with skills and infrastructure to create and manage a private Cloud

55% said their organization is training staff to support Cloudinitiatives which could explain the 67% who said their company currently has the skills and infrastructure to create andmanage a privateCloud 75% agree that they need to improve Cloud skills or risk fallingbehind peers professionally

` Having the relevant skills is crucial for any organization in enabling Cloud Computing.


Do you believe Cloud Computing has made your job more complex or less?

0

71% 29%

Less Complex More complex

Base: 4896 Senior IT Practitioners across APJ (interested in cloud): Forrester custom research prepared for VMware, October 2012

` Less Complex ` More complex

Base: 4896 Senior IT Practitioners across Asia Pacific (interested in cloud). Source: Forrester custom research prepared for VMware, October 2012.

71% saidCloud has made their job less complex 40% noted that their company was resisting change, hencehindering Cloudadoption

` Cloud is breaking through the layersofcomplexity.


Do you consider desktop virtualization part of your broader Cloud initiatives?

0

69% 18% 13%

Yes No Dont know/cannot say

Base: 4,669 Senior IT Practitioners across (virtualization users + planners) Source: Forrester custom research prepared for VMware, October 2012

` Yes ` No ` Dont know/cannot say

Base: 4,669 Senior IT Practitioners across (virtualization users + planners). Source: Forrester custom research prepared for VMware, October 2012.

69% consider desktop virtualization part of their broader cloud initiatives

` Desktop virtualization is seen as a crucial element in the journey to cloud.


What are the next steps forthesecompanies?

0

20

40

60

80

100

68% 60% 60%

Growth and expansion Consolidating with some growth plans Still cost control with limited growth oulook

Base: 4896 Senior IT Practitioners across APJ Forrester custom research prepared for VMware, October 2012

68% said that if their companies dont invest in Cloud, they risk falling behind their competitors 60% noted that Cloud services are successfully being used within their own organization 60% are ready to run apps on a private or hybrid Cloud

` Overall, there was a desire to manage their IT services like a successful business; adopting the change and using it more within their organization.

` Growth and expansion ` Consolidating with some

growthplans ` Still cost control with

limitedgrowthoutlook

Base: 4896 Senior IT Practitioners across Asia Pacific. Source: Forrester custom research prepared forVMware, October 2012.

What are the top-5 drivers of Cloud Computing?

1 To optimise existing IT resources and infrastructure (75%)

2 Simplify access to IT resources (73%)

3 Reduce costs (70%)

4 Support a mobile workforce (70%)

5 Compete more effectively in the competitive marketplace (69%)

What are the top-5 top barriers to Cloud adoption?

1 The perceptions around data privacy (69%)

2 Integration of existing on-premise systems (66%)

3 Security concerns (64%)

4 Availability or Performance / SLAs (62%)

5 Cost (62%)

What are the top concerns for new applications fortheCloud?

1 Security and control (77%)

2 Performance of the new apps (70%)

3 Data sovereignty and support (68%)

4 Portability across different environments (68%)

5 Compatibility of new apps with existing infrastructure (67%)


Top driversof Cloud

Top Cloudconcerns

The 2012 study surveyed approximately 6,500 senior IT practitioners across the APJ region in eleven countries/region (Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan and Thailand) in September 2012.

Asia Pacific Cloud Computing enters new stage of growth and evolution in Asia Pacific.

Security 2

Reduce costs2

Support a mobile and flexible workforce

3

1

Cost3

Enabling the business to optimize IT

1Data privacy

Security 2

Reduce costs2


3

1

Cost3

Enabling the business to optimize IT

1Data privacy

Agree that Cloud Computing is key for them

to stay ahead of the competition

Agree Cloud makes their job

less complex

Cloud Computing enters new stage of growth and evolution in Asia Pacific

Asia Pacific

Said the CEO is the final Cloud decision maker

(down 6% in 2011)

55%

Say Cloud will empower their business

Say companies are expecting growth and/or expansion in 2012 and 2013

Believe they have the skills and infrastructure to manage a private Cloud


Infographic developed from The VMware Cloud Index 2012, a commissioned study conducted by Forrester Consulting and ITR (in Japan). The 2012 study surveyed approximately 6,500 senior IT practitioners across the APJ region in eleven countries/region (Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan and Thailand) in September 2012. More information is available at www.vmware.com/ap/cloudindex.

68%

71%

75%

67%

80% 24%

3

2% 4

2%

2010 2011 2012

Cloud BarometerAdoption trend


Top driversof Cloud

Top Cloudconcerns


Australia Tops Cloud adoption rates in Asia Pacific region for 3rd consecutive year.

Simplify access to IT

2

1


3 Security 3

Data privacy, residency or control

Optimize existing IT management and automation

1

Integration of existing systems

2


2

1


3 Security 3



1


2

This time last year

Say their business outlook is growth and/or expansion 2012 and 2013

Agreed that failing to pursue Cloud initiatives will risk

falling behind competitors

Have adopted virtualization

Plan to implement within the next 18 months

Will consider virtualizing top 10 business-critical applications

Have Cloud Computing already in place

Australia

Top Cloud adoption rates in Asia Pacific region for 3rd consecutive year VMware Cloud Index 2012


90%

74%

50%

20%

79%

58%

42%

31

% 43% 58%

2010 2011 2012



Top driversof Cloud

Top Cloudconcerns


China Cloud Computing maturing in China with limited hesitation to adoption.


1

Modify and/or improve our security

3


2Reduce IT costs 2

Regulatory/governance/compliance issues

3

1Data privacy,

residency or controlOptimize existing IT management and automation

1

Modify and/or improve our security

3


2Reduce IT costs 2

Regulatory/governance/compliance issues

3

1Data privacy,

residency or control

Say they are concerned about end-users accessing Cloud-based applications and services from mobile devices used for work

Say they need to increase Cloud-related skills or risk falling behind professional peers

Say Cloud Computing has made their job less complex

Have leveraged virtualization

Forecast period of growth and/or expansion in 2012-2013

Are aware of virtualization

Say CEO makes final decision on Cloud spending

WIll consider virtualizing top 10 business-critical

applications

Cloud Computing maturing in China with limited hesitation to adoptionVMware Cloud Index 2012


China

54%

67%

81%

76%

71%

87%

99%

73%

16

% 20%

31%

2010 2011 2012



Top driversof Cloud

Top Cloudconcerns


3

2

1

Security

3

Data privacy




1


2

3

2

1

Security

3

Data privacy




1


2

Say their business is in a period of growth and/or expansion in 2012-2013

Say they need to increase their Cloud-related skills

or risk falling behind professional peers

Are aware of virtualization

Have leveraged virtualization

Say they have a strong understanding of Cloud Computing

Say they have a strong understanding

of virtualization

Hong Kong

Are concerned about end-users accessing

Cloud-based applications and services from mobile

devices used for work

Would consider virtualization top-10 business critical applications


Say the CEO makes the final decision for Cloud Computing purchases

Cloud Computing is a must do for business in Hong KongVMware Cloud Index 2012


67%

66%

64%

90%

52%74%

45%

63%

99%

83%

36%

2012


Hong Kong Cloud Computing is a must do for business in Hong Kong.


Top driversof Cloud

Top Cloudconcerns


India Cloud adoption tops 50% with demand for skilled talent to continue growth trend.

Optimize existing IT management and automation capabilities

1

Compete more eectively

2 Integration of existing systems 2

Data privacy1

Reduce IT costs 3

Security 3

Optimize existing IT management and automation capabilities

1

Compete more eectively

2 Integration of existing systems 2

Data privacy1

Reduce IT costs 3

Security 3

Say they have a high degree of Cloud understanding

Strongly concerned about end-users accessing Cloud-based apps and services from mobile devices used for work

Believe a failure to improve Cloud skills will create risk of falling behind peers professionally

Increasing spend on training for Cloud initiatives

Actively seeking to hire new sta with Cloud expertise

Have leveraged or are planning to leverage virtualization in their organization

Annual growth in Cloud adoption over 2011

Strongly believe that

Cloud Computing will

help them optimize their

existing IT management

and automation capabilities

Consider Cloud Computing a top business priority

Say Internal resistance to change is hindering Cloud adoption

Say they have adopted Cloud solutions

Say the role of Cloud service providers will

increase

India

India Cloud adoption tops 50% with demand forskilled talent to continue growth trendVMware Cloud Index 2012


94%

72%

73%

62%

56%

40%

25%

54%

82%

50%

57%

Skills Gap

27%

40% 50%

2010 2011 2012



Top driversof Cloud

Top Cloudconcerns



1

Ensure only payfor the IT use

3


Access to reliable and aordable broadband

3

1

Security

2


2

Agree that virtualization is highly critical to enable Cloud Computing

Projected Cloud penetration levels in Indonesia by early 2014

Report unsanctioned buying of SaaS services by the business outside of IT

Agree that they need to improve Cloud skills or risk falling behind peers professionally

Said their organization is spending on training of sta to support Cloud initiatives

Said that their company currently has the skills and infrastructure necessary to create and manage a private Cloud

Rate of those that have virtualized or have plans to

Say they have a Cloud initiative in place

Of those that have one were rolled out within the past year

Indonesia

The Cloud penetration levels Indonesia one year ago

20%Agree that companies need to invest in Cloud Computing or risk falling behind competitors

Top Cloud adoption rates in Asia Pacific region for 3rd consecutive year VMware Cloud Index 2012


70%70%73%

84%

59%

59%

41%

59%

99%79%

Skills Gap

4

1%

2012



1

Ensure only payfor the IT use

3


Access to reliable and aordable broadband

3

1

Security

2


2

Indonesia Cloud adoption estimated to grow to 70% by 2014.


Top driversof Cloud

Top Cloudconcerns


Japan Half of Japanese companies now adopting Cloud Computing.

Create a more flexible workforce

22

1

Cost3

Disaster Relief and/or Business Continuity Planning

1Security and

Data privacy

System migration

Cost Reduction3

Create a more flexible workforce

22

1

Cost3

Disaster Relief and/or Business Continuity Planning

1Security and

Data privacy

System migration

Cost Reduction3

Companies who describe business outlook as growth

and/or expansion in 2012/2013 who have already

deployed or are planning cloud-related initiatives

Say companies need to deploy

cloud or risk loosing a

competitive advantage

Companies in growth and expansion mode have already

deployed or are planning Cloud initiatives vs only

Who are consolidating or see small growth

Strongly agree that cloud will enable a mobile and flexible mobile work force

Companies that have already deployed or have plans to deploy Cloud

Japan

51%

Say Cloud computing will enable organizations to manage Disaster Relief and/or Business Continuity Planning

Half of Japanese companies now adopting Cloud ComputingVMware Cloud Index 2012


62%

70%

57%

75%

90%

87%

31%

43%

58%

2010 2011 2012



Top driversof Cloud

Top Cloudconcerns



1


2


3 Access to reliable and aordable broadband

2Security

3

1Data privacy,


Have virtualized or plan to virtualize

Say Cloud Computing will enable their organization todeploy a whole new range of applications

Feel their organization has the skills and infrastructure necessary to create and manage a private Cloud

Say their organization is increasing spending on Cloud training for employees


Malaysia

Say company companies risk

falling behind their competitors if they

dont invest in Cloud

54%

Malaysian businesses fast-tracking Cloud adoption plansVMware Cloud Index 2012


Already have or are planning Cloud initiatives

One in two without Cloud initiatives plan to implement within next 18 months

Skills Gap

94%

56%

53%

70%71%

76%

76%

21% 28% 3

6%

2010 2011 2012

Cloud BarometerAdoption trend Support a mobile

and flexible workforce

1


2


3 Access to reliable and aordable broadband

2Security

3

1Data privacy,


Malaysia Malaysian businesses fast-tracking Cloud adoption plans.


Top driversof Cloud

Top Cloudconcerns


Singapore Cloud Computing gives businesses a competitive advantage.


2

Only pay for IT we use

3

2

3

Cost

1Data privacy,

residency or controlSimplify

access to IT

1

Availability or performance concerns


2


3

2

3

Cost

1Data privacy,

residency or controlSimplify

access to IT

1

Availability or performance concerns

Say they have a high level of understanding of virtualization

Strongly agree that virtualization is critical to enable cloud computing

Singapore

52%

Agree that their organization should pursue Cloud initiatives or risk falling behind competitors

Agree that Cloud computing will enable their organization to deploy a whole new range of applications Agree that they

need to improve Cloud skills or risk falling behind peers professionally

Have virtualized more than half of their production applications

Cloud Computing gives businesses in Singapore a competitive advantageVMware Cloud Index 2012


90%

70%

69%

75%

82%

23% 31

%

51%

2010 2011 2012



Top driversof Cloud

Top Cloudconcerns


Say that desktop virtualization is part of their

broader Cloud initiatives (highest rate in Asia Pacific)

Would consider virtualizing the top 10 most business critical applications in their company

Say they plan to introduce a

Cloud-based solution in the next 18 months

Have a Cloud related initiative in place or are planning one

Increasing spend on training for

Cloud initiatives

CEOs are the final purchase decision

maker for Cloud-related

spending

SouthKorea

Cloud Computing starting to take o in South Korea

Increase year over year

8%



86%76%

60%

33%

50%

55%

24%

3

2%

2011 2012


South Korea Cloud Computing starting to take off in Korea.

Optimize existing IT


2

Cost

1

Security

3

1


3


2

Optimize existing IT


2

Cost

1

Security

3

1


3


2


Top driversof Cloud

Top Cloudconcerns


Taiwan Healthy Cloud adoption makes businesses stronger in Taiwan.

Say their business is in a period of growth and/or expansion in 2012-2013


Say CEOs make the final decision for cloud computing purchases

Taiwan

Say Cloud is a top priority for their organization and

significantly impacts business transformation

28%

Say they need to increase their cloud-related skills or risk falling behind professional peers

Have leveraged Cloud Computing

Have leveraged virtualization in their organizations or have plans to do so

Are planning to implement cloud computing within the next 12-24 months

Say their organization is increasing spend on training to support Cloud initiatives

Say Cloud Computing will enable organization

to compete more eectively in the

marketplace

Say Cloud Computing will enable their organization to

reduce costs

Healthy Cloud adoption makes businesses stronger in Taiwan

Would consider virtualizing the top ten most business critical applications in the company



61%

78%

80%

44%

27%

49%

73%76%

79%70%

95%

44%

2012


1Data privacy, residency

or loss of control

Simplifying IT resources

3

2

Regulatory/governance/compliance issue

3

Optimize existing IT management

CostSupport a mobile and flexible workforce

2

11

Data privacy, residencyor loss of control

Simplifying IT resources

3

2

Regulatory/governance/compliance issue

3

Optimize existing IT management

CostSupport a mobile and flexible workforce

2

1


Top driversof Cloud

Top Cloudconcerns


Strongly agree that virtualization is critical for enabling Cloud Computing

Indicate they already have Cloud

initiatives in place or are planning them

Say that their company currently has the skills and infrastructure necessary to create and manage a private Cloud

Agree that theyneed to improve Cloud skills or risk falling behind peers professionally

Thailand

Agree that their organization is spending on

training of sta to support Cloud

initiatives

62%

Agree that Cloud Computing will enable their organization to deploy a whole new range of applications

Say they currently do not have Cloud initiatives in place but are planning to implement them within the next 18 months

Agree that their organization should

pursue Cloud initiatives or risk

falling behind competitors

Cloud Computing making Thai organizations more competitiveVMware Cloud Index 2012


83%

87%

63%

73%

48%

68% 69%

21% 31%

32%

2010 2011 2012


Thailand Cloud Computing making Thai organizations more competitive.


2Optimize existing IT management

and automation

2


3

1

Integration with existing systems

3

Access to reliable and aordable

broadband


1


2Optimize existing IT management

and automation

2


3

1

Integration with existing systems

3

Access to reliable and aordable

broadband


1


Documents

VMware Cloud Index Summary Report