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ChangeWave Research: Corporate Cloud Computing Trends Corporate Cloud Computing Trends Continued Momentum for Public, Private and Hybrid Cloud Mike Wrobel and Paul Carton Overview: ChangeWave’s latest business cloud computing survey shows another strong quarter of growth for public and private cloud, as well as hybrid cloud deployments. A total of 1,213 respondents involved in their company’s IT buying decisions participated in the January 7-25 survey, including 484 whose company currently uses public cloud. ChangeWave Research is a service of 451 Research. Corporate Public Cloud Current Public Cloud Usage. Two-in-five corporate respondents (40%) now report their company uses public cloud computing services – up 6- pts from the previous October survey, and a full 18-pts higher than one year ago. Spending Trends – Current Public Cloud Users. We also took a closer look at business spending patterns among companies currently using public cloud, and found that 42% are increasing their spending over the next 6 months – 1-pt higher than in October. This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information. It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved. February 5, 2013

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Page 1: €¦ · Web view2013/02/05  · ChangeWave Research: Corporate Cloud Computing Trends. ChangeWave Research: Corporate Cloud Computing Trends. This information is from ChangeWave

ChangeWave Research: Corporate Cloud Computing Trends

Corporate Cloud Computing TrendsContinued Momentum for Public, Private and Hybrid CloudMike Wrobel and Paul CartonOverview: ChangeWave’s latest business cloud computing survey shows another strong quarter of growth for public and private cloud, as well as hybrid cloud deployments.

A total of 1,213 respondents involved in their company’s IT buying decisions participated in the January 7-25 survey, including 484 whose company currently uses public cloud. ChangeWave Research is a service of 451 Research.

Corporate Public CloudCurrent Public Cloud Usage. Two-in-five corporate respondents (40%) now report their company uses public cloud computing services – up 6-pts from the previous October survey, and a full 18-pts higher than one year ago.

Spending Trends – Current Public Cloud Users. We also took a closer look at business spending patterns among companies currently using public cloud, and found that 42% are increasing their spending over the next 6 months – 1-pt higher than in October.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

February 5, 2013

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ChangeWave Research: Corporate Cloud Computing TrendsEffect on IT Budgets. To what degree is cloud computing changing the way companies spend their overall IT budgets?

By a 10-pt margin (25% vs. 15%), more companies say public cloud spending is decreasing their budget for other IT products and services vs. increasing it. Here’s the question asked:

What effect - if any - does you company's spending on cloud computing have on your budget for other IT products and services? Would you say that spending on cloud computing is having no effect on your company's budget for other IT products/ services, is it increasing your budget for other IT products/services, or is it decreasing your budget for other IT products/services?

Cloud Spending is Decreasing Company’s Budget for Other IT Products and Services

25%

Cloud Spending is Increasing Company Budget for Other IT Products and Services

15%

Cloud Spending is Having No Effect on Company Budget for Other IT Products and Services

47%

Don’t Know/NA 13%

Impact on IT Staff. Public cloud growth is also having an impact on IT staffing. More than one-in-five companies using the cloud (21%) report that cloud spending is causing a decrease in their total number of IT staff (including facilities/datacenter staff). Just 7% say it’s causing an increase in total IT staff.

And what effect - if any - does your company's spending on cloud computing have on the total number of IT staff (including facilities/datacenter staff) at your company? Would you say that spending on cloud computing is having no effect on the total number of IT staff at your company, is it increasing the total number of IT staff at your company, or is it decreasing the total number of IT staff at your company?

Cloud Spending is Decreasing the Total Number of IT Staff

21%

Cloud Spending is Increasing the Total Number of IT Staff

7%

Cloud Spending is Having No Effect on the Total Number of IT Staff

63%

Don’t Know/NA 9%

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Additional Findings: Public CloudThe ChangeWave survey also looked at the 3 main ways businesses are using cloud computing services.

Software as a Service (SaaS; 68%; up 1-pt) remains by far the most popular usage, followed by Infrastructure as a Service (IaaS; 40%; up 2-pts) and Platform as a Service (PaaS; 30%; down 1-pt).

Future Spending. Looking ahead, Software as a Service (SaaS) is registering the biggest increase among companies planning to use cloud over the next 6 months – 34% expect their company to Increase spending on SaaS vs. 3% Decrease.

Both Infrastructure as a Service (29% Increase vs. 1% Decrease) and Platform as a Service (16% Increase vs. 1% Decrease) also remain extraordinary growth stories.

Leading Cloud Vendors. We also asked respondents which vendors their company plans to increase cloud-related spending on over the next 6 months:

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsFor which of the following public cloud computing vendors - if any - does your company plan on increasing its spending on cloud-related products and services over the next 6 months? (Check All That Apply)

Microsoft (23%; down 1-pt), Salesforce.com (20%; unchanged) and Google (20%; unchanged) top the list of Platform Providers best positioned to garner increased cloud spending over the next 6 months, followed by VMware (12%; up 1-pt).

Among Hosting companies, Amazon (27%; up 4-pts) is showing the most momentum in terms of increased cloud spending. And among Telecom Providers, Verizon/Terremark (10%; unchanged) and AT&T (10%; unchanged) remain on top.

Applications Supported in the Cloud. A total of 45% of companies who use public cloud say they support Email Systems, while 39% support CRM applications and 35% Web Apps.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Mobile App Integration. We also asked current cloud users if their cloud service includes integration with mobile devices at no additional charge, and 69% said it was included.

Corporate Sentiment Towards the CloudThe ChangeWave survey asked all corporate respondents (both cloud users and non-users) how they rank cloud computing in terms of its reliability and security.

Cloud Reliability. Respondents were asked to rate the reliability of the cloud computing services available today on a 1-10 scale, where 1 is Very Unreliable and 10 is Very Reliable.

The mean Reliability Rating among all corporate respondents remains 7.0, up 0.1-pts from the October survey.

However, stark differences remain between the reliability ratings of companies currently using the cloud (7.6%) vs. those who do not (6.6%).

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Cloud Security. Respondents were also asked to rate the security of cloud computing services – and the mean security rating for January (6.2) is up 0.1-pts from October.

Again, major differences exist in the cloud security ratings between companies who use the cloud (7.2%) vs. those who do not (5.6%).

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsReasons Companies Do Not Use Cloud. We also asked respondents whose companies do not currently use cloud computing to tell us the most important reason why.

Two-in-five cited Security Concerns (41%) as the most important reason their company does not use cloud. Another 12% cite the Complexity of Integrating with Existing IT Infrastructure and 9% say the Technology is Too New.

When we compare larger companies (over 1,000 employees) with small-to-medium sized companies (under 1,000 employees) noticeable differences emerge. Among non-cloud users, large-sized companies are far more likely to cite Security Concerns as the most important reason why they’re not using cloud.

Private Cloud Usage The ChangeWave survey also looked at corporate usage of private clouds.

Nearly a third of companies (32%) now report using private cloud computing services – up 3-pts since October.

Private cloud computing uses hardware dedicated to a single organization and is not shared by others. Private clouds can be built and run in your own data center or hosted by a third-party provider. Does your company or organization currently operate a private cloud or do you currently use any private cloud computing services?

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsWe note that large companies (over 1,000 employees) are far more likely to use private cloud than smaller companies (49% vs. 24%, respectively).

Private clouds are also much more likely to be hosted in Company-Owned Datacenters (56%) as opposed to Third-Party Providers (28%) or in Virtual Private Clouds (12%).

Moreover, the trend toward hosting and managing private cloud in company-owned datacenters is strongest among large companies (70%).

Where Private Cloud is Hosted: Breakout By Company SizeTotal

Respondents

Under 1,000Employees

Over 1,000Employees

In Company-Owned Datacenters 56% 41% 70%By a Third-Party Provider 28% 37% 19%Virtual Private Cloud 12% 17% 7%Other/Don’t Know/NA 4% 5% 4%

Future Spending Trends – Private Cloud Users. In a further positive sign, nearly half of companies currently using private cloud (49%) say they’ll increase their private cloud spending over the next 6 months – 7-pts higher than in October.

And over the next 6 months, does your company plan to increase its overall spending on private cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently Using Private Cloud

Current Survey Jan ‘13

Previous Survey Oct ‘12

Increase Overall Spending 49% 42%Decrease Overall Spending 3% 4%Remain the Same 44% 46%No Plans to Use Private Cloud Computing in Next 6 Months

3% 8%

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Hybrid Cloud Usage

We also looked at company use of Hybrid clouds – which are combinations of two or more cloud deployments (e.g., public/private) interacting in a unified but flexible infrastructure.

The term Hybrid cloud describes combinations of two or more clouds (e.g., public and private) that interact to create a unified but flexible infrastructure. Examples of corporate hybrid cloud deployments include using a vendor's Public cloud-based SaaS on a Private cloud, or taking a Private cloud's non-sensitive workloads during peak demand and shifting to a Public cloud. Does your company or organization currently make use of any hybrid cloud deployments?

Current Survey Jan ‘13

Previous Survey Oct ‘12

Yes 8% 6%No 92% 94%

Current Hybrid Cloud Usage. A total of 8% of companies surveyed report using hybrid cloud deployments – 2-pts higher than October. We also note that large companies (15%) are deploying hybrid cloud at more than twice the rate of smaller companies (6%).

Future Hybrid Cloud Usage. As the below chart also points out, six months from now 13% of all companies say they’ll be using a hybrid cloud deployment.

Bottom Line: At a time when most corporate IT spending categories are at best muddling along, the bullish cloud spending findings demonstrate that the sector remains a focal point of strong growth.

We’ll take our next look at overall corporate IT spending trends in mid-February. But these ChangeWave survey results show cloud spending remains a solid momentum leader – and they provide a considerable body of evidence that Public, Private and Hybrid cloud spending will continue to outperform during 2013.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Summary of Key Findings

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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Reliability and Security Ratingsfor Public CloudMean Reliability Rating: 7.0 out of a possible 10 –

up 0.1-pts from October Among companies already

using cloud it’s 7.6 For non-cloud users it’s 6.6Mean Security Rating: 6.2 out of a possible 10 –

up 0.1-pts from previously Among companies already

using cloud it’s 7.2 For non-cloud users it’s 5.6

Top Cloud Platform Providers Microsoft (23%; down 1-pt) Salesforce (20%; unch) Google (20%; unch)

Private Cloud Usage 32% report their company

currently uses Private Cloud – up 3-pts since October

Hybrid Cloud Also Shows Strong Growth 8% of companies currently

use hybrid cloud deployment Future usage projected to hit

13% – next 6 months

Top Cloud Telecom Providers Verizon (10%; unch) AT&T (10%; unch)

Other Top Cloud Providers IBM (6%; down 1-pt) Dell (4%; down 3-pts) Hewlett-Packard (4%; down

2-pts)

Strong Growth Rate for Public Cloud 40% report their company

currently uses Public Cloud – up 6-pts since previous survey in October

42% of current cloud users plan to Increase their cloud spending in next 6 months

Most Popular Uses of Cloud Software as a Service

(SaaS) – 68% Infrastructure as a Service

(IaaS) – 40% Platform as a Service

(PaaS) – 30%

Top Cloud Hosting Companies Amazon (27%; up 4-pts) Rackspace (14%; up 1-pt)

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ChangeWave Research: Corporate Cloud Computing Trends

Table of Contents

Summary of Key Findings...........................................................................................10

The Findings.................................................................................................................12

Corporate Public Cloud.............................................................................................12

Additional Findings: Public Cloud.............................................................................14

Corporate Sentiment Towards the Cloud..................................................................19

Private Cloud Usage.................................................................................................23

Hybrid Cloud Usage..................................................................................................24

ChangeWave Research Methodology........................................................................26

About ChangeWave Research....................................................................................26

About 451 Research.....................................................................................................26

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

The Findings

Introduction: ChangeWave’s latest business cloud computing survey shows another strong quarter of growth for public and private cloud, as well as hybrid cloud deployments.

A total of 1,207 respondents involved in their company’s IT buying decisions participated in the January 7-25 survey, including 480 whose company currently uses public cloud. ChangeWave Research is a service of 451 Research.

Corporate Public Cloud

Public cloud computing (i.e., "renting" or provisioning the remotely hosted computing resources of a service provider) can be broken down into three main categories: Software as a Service (e.g., Salesforce.com), Platform as a Service (e.g., Google AppEngine), and Infrastructure as a Service (e.g., Amazon EC2). Does your company or organization currently use any applications that run on public cloud computing services or have you used public cloud computing services over the past 12 months?

Current Public Cloud Usage. Two-in-five corporate respondents (40%) now report their company uses public cloud computing services – up 6-pts from the previous October survey, and a full 18-pts higher than one year ago.

Current Survey (Jan ‘13) – Public Cloud Usage By Company SizeTotal

RespondentsUnder 1,000 Employees

Over 1,000 Employees

Yes 40% 40% 40%No 59% 59% 59%Don't Know 1% 1% 1%

Spending Trends – Current Public Cloud Users. We also took a closer look at business spending patterns among companies currently using public cloud, and found that 42% are increasing their spending over the next 6 months – 1-pt higher than in October.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Only 12% say they’re decreasing spending or have no plans to use cloud at all, and 46% say spending will remain the same.

And over the next 6 months, does your company plan to increase its overall spending on public cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently Using Public Cloud

Current Survey Jan ‘13

Previous Survey Oct ‘12

Previous Survey Jul ‘12

Previous Survey Apr ‘12

Previous Survey Jan ‘12

Increase Overall Spending 42% 41% 37% 37% 32%Decrease Overall Spending 3% 2% 1% 2% 2%Remain the Same 46% 46% 54% 55% 60%No Plans to Use Cloud Computing in Next 6 Months

9% 10% 8% 6% 7%

Effect on IT Budgets. To what degree is cloud computing changing the way companies spend their overall IT budgets?

By a 10-pt margin (25% vs. 15%), more companies say public cloud spending is decreasing their budget for other IT products and services vs. increasing it. Here’s the question asked:

What effect - if any - does you company's spending on cloud computing have on your budget for other IT products and services? Would you say that spending on cloud computing is having no effect on your company's budget for other IT products/ services, is it increasing your budget for other IT products/ services, or is it decreasing your budget for other IT products/services?

Cloud Spending is Decreasing Company’s Budget for Other IT Products and Services

25%

Cloud Spending is Increasing Company Budget for Other IT Products and Services

15%

Cloud Spending is Having No Effect on Company Budget for Other IT Products and Services

47%

Don’t Know/NA 13%

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsImpact on IT Staff. Public cloud growth is also having an impact on IT staffing. More than one-in-five companies using the cloud (21%) report that cloud spending is causing a decrease in their total number of IT staff (including facilities/datacenter staff). Just 7% say it’s causing an increase in total IT staff.

And what effect - if any - does your company's spending on cloud computing have on the total number of IT staff (including facilities/datacenter staff) at your company? Would you say that spending on cloud computing is having no effect on the total number of IT staff at your company, is it increasing the total number of IT staff at your company, or is it decreasing the total number of IT staff at your company?Cloud Spending is Decreasing the Total Number of IT Staff

21%

Cloud Spending is Increasing the Total Number of IT Staff

7%

Cloud Spending is Having No Effect on the Total Number of IT Staff

63%

Don’t Know/NA 9%

Additional Findings: Public CloudThe ChangeWave survey also looked at the 3 main ways businesses are using cloud computing services.

Software as a Service (SaaS; 68%; up 1-pt) remains by far the most popular usage, followed by Infrastructure as a Service (IaaS; 40%; up 2-pts) and Platform as a Service (PaaS; 30%; down 1-pt).

With regard to public cloud computing, in which of the following ways does your company use cloud computing services? (Check All That Apply)

Current Survey Jan ‘13

Previous Survey Oct ‘12

Previous Survey Jul ‘12

Software as a Service (SaaS) - (e.g., Salesforce.com)

68% 67% 66%

Infrastructure as a Service (IaaS) - (e.g., Amazon EC2)

40% 38% 32%

Platform as a Service (PaaS) - (e.g., Google AppEngine)

30% 31% 32%

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsFuture Spending. Looking ahead, Software as a Service (SaaS) is registering the biggest increase among companies planning to use cloud over the next 6 months – 34% expect their company to Increase spending on SaaS vs. 3% Decrease.

Both Infrastructure as a Service (29% Increase vs. 1% Decrease) and Platform as a Service (16% Increase vs. 1% Decrease) also remain extraordinary growth stories.

For each of the following uses of cloud computing, do you expect your company to increase its spending on cloud-related services, decrease its spending, or will spending on cloud-related services remain the same over the next 6 months?

IncreaseSpending

Decrease Spending

Remain the

Same

No Spending in Next 6

Months, BUT Considering

for Future

No Spending in Next 6

Months, and NOT

Considering for Future

Software as a Service (SaaS) - (e.g., Salesforce.com)

34% 3% 37% 6% 10%

Platform as a Service (PaaS) - (e.g., Google AppEngine)

16% 1% 33% 16% 22%

Infrastructure as a Service (IaaS) - (e.g., Amazon EC2)

29% 1% 25% 12% 20%

Leading Cloud Vendors. We also asked respondents which vendors their company plans to increase cloud-related spending on over the next 6 months:

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsFor which of the following public cloud computing vendors - if any - does your company plan on increasing its spending on cloud-related products and services over the next 6 months? (Check All That Apply)

Microsoft (23%; down 1-pt), Salesforce.com (20%; unchanged) and Google (20%; unchanged) top the list of Platform Providers best positioned to garner increased cloud spending over the next 6 months, followed by VMware (12%; up 1-pt).

Among Hosting companies, Amazon (27%; up 4-pts) is showing the most momentum in terms of increased cloud spending. And among Telecom Providers, Verizon/Terremark (10%; unchanged) and AT&T (10%; unchanged) remain on top.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsHere’s a closer look at Amazon and Rackspace over the last 5 quarters:

Amazon has been showing steady growth over the last year, while Rackspace has mostly remained flat since the jump they experienced last summer.

Applications Supported in the Cloud. A total of 45% of companies who use public cloud say they support Email Systems, while 39% support CRM applications.

Other top application areas include Web Applications (35%), Databases (31%), and Collaboration Tools (31%).

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsAnd in which of the following areas does your company currently support applications that run on public cloud computing services? (Check All That Apply)

Current Survey Jan ‘13

Previous Survey Oct ‘12

PreviousSurveyJul ‘12

Email Systems 45% 44% 42%Customer Relationship Management (CRM) 39% 41% 38%Web Applications 35% 30% 30%Databases 31% 29% 31%Collaboration Tools 31% 27% 27%Mobile Applications 24% 22% 19%Document and Enterprise Content Management (ECM) 21% 18% 21%Business Intelligence/ Reporting and Analytics (BI) 20% 19% 22%Test and Development 19% 17% 18%Disaster Recovery/Failover 18% 20% 21%Human Capital Management (HCM) 16% 14% 12%B2B e-Commerce (Business to Business) 16% 14% 18%Security 14% 13% 14%Enterprise Resource Planning (ERP) 12% 9% 9%Supply Chain Management (SCM) 6% 7% 9%Legal and/or Regulatory E-Discovery 5% 4% 4%Don't Know 5% 2% 4%Other 5% 6% 5%

Mobile App Integration. We also asked current cloud users if their cloud service includes integration with mobile devices at no additional charge, and 69% said it was included.

Does the public cloud computing service(s) your company uses include integration with mobile devices at no additional charge?Yes 69%No 31%

For those who deploy cloud-based databases (e.g. Amazon RDS, Google Cloud SQL), which of the following cloud database-related services do you think your company will increase spending on over the next 6 months? (Check All That Apply)

Current Survey Jan ‘13

Web Applications 35%Backup Services 31%Additional Capacity (e.g., cloud-bursting) 29%Test and Development 22%Enterprise Apps (e.g., ERP/CRM) 21%Analytic Apps (e.g., BI/Reporting) 19%Transactional Apps 13%Department-Specific Apps 12%Other 3%

And among those who deploy cloud-based databases, 35% say they’ll increase spending on Web Applications and 31% on Backup Services.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

Corporate Sentiment Towards the CloudThe ChangeWave survey asked all corporate respondents (both cloud users and non-users) how they rank cloud computing in terms of its reliability and security.

Cloud Reliability. Respondents were asked to rate the reliability of the cloud computing services available today on a 1-10 scale, where 1 is Very Unreliable and 10 is Very Reliable.

The mean Reliability Rating among all corporate respondents is 7.0, up 0.1-pts from the October survey.

Thinking about cloud computing overall, how would you rate the reliability of the cloud computing services available today - where 1 is Very Unreliable and 10 is Very Reliable?

Mean(SD)

Very Unreliable

12 3 4 5 6 7 8 9

Very Reliable

107.0

(1.9)1% 1% 3% 4% 10% 11% 23% 28% 11% 6%

However, stark differences remain between the reliability ratings of companies currently using the cloud (7.6%) vs. those who do not (6.6%).

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsCloud Security. Respondents were also asked to rate the security of cloud computing services – and the mean security rating for January (6.2) is up 0.1-pts from October.

On the issue of security, how secure do you think data is when using the cloud computing services available today - where 1 is Very Unsecure and 10 is Very Secure?

Mean(SD)

Very Unsecure

12 3 4 5 6 7 8 9

Very Secure

106.2

(2.1)2% 4

%7% 8% 14% 13% 21% 20% 7

%5%

Again, major differences exist in the cloud security ratings between companies who use the cloud (7.2%) vs. those who do not (5.6%).

Respondents using public cloud were also more likely to cite the importance of being able to integrate with mobile devices at no additional charge (52% Very Important) compared to non-cloud users (41% Very Important).

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsHow important is it for public cloud services to include the ability to integrate with mobile devices at no additional charge?

Current Survey Jan ‘13

Companies Using Cloud

Companies Not Using

CloudVery Important 46% 52% 41%Somewhat Important 41% 38% 44%Not Very Important 9% 8% 9%Not At All Important 4% 2% 6%

Reasons Companies Do Not Use Cloud

We also asked respondents whose companies do not currently use cloud computing to tell us the most important reason why.

Two-in-five cited Security Concerns (41%) as the most important reason their company does not use cloud. Another 12% cite the Complexity of Integrating with Existing IT Infrastructure, 9% say the Technology is Too New and 9% cite a General Resistance to Change.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsFor those companies who DO NOT currently use cloud computing, what is the most important reason why not?

Current Survey Jan ‘13

Previous Survey Oct ‘12

Previous Survey Jul ‘12

Previous Survey Apr ‘12

Previous Survey Jan ‘12

Security Concerns 41% 37% 34% 32% 32%Complexity of Integrating Cloud with Existing IT Infrastructure

12% 10% 14% 12% 12%

Technology is Too New 9% 11% 12% 13% 13%General Resistance to Change 9% 10% 12% 11% 11%Cost is Too High 7% 7% 6% 7% 8%Latency Issues/Too Slow 3% 3% 3% 3% 3%Too Unreliable 2% 3% 2% 2% 2%Don’t Like the User Agreements (SLAs) 2% 2% 2% 2% 1%Other 9% 10% 8% 10% 12%No Answer 6% 6% 6% 8% 7%

When we compare larger companies (over 1,000 employees) with small-to-medium sized companies (under 1,000 employees) noticeable differences emerge. Among non-cloud users, large-sized companies are far more likely to cite Security Concerns as the most important reason why they’re not using cloud.

Meanwhile, small-to-medium sized companies are more affected by Cost and a General Resistance to Change.

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ChangeWave Research: Corporate Cloud Computing Trends

Private Cloud Usage The ChangeWave survey also looked at corporate usage of private clouds. Three-in-ten companies (32%) now report using private cloud computing services – up 3-pts since October.

Private cloud computing uses hardware dedicated to a single organization and is not shared by others. Private clouds can be built and run in your own data center or hosted by a third-party provider. Does your company or organization currently operate a private cloud or do you currently use any private cloud computing services?

We note that large companies (over 1,000 employees) are far more likely to use private cloud than smaller companies (49% vs. 24%, respectively).

Current Survey (Jan ‘13) – Private Cloud Usage By Company SizeTotal

RespondentsUnder 1,000 Employees

Over 1,000 Employees

Yes 32% 24% 49%No 68% 76% 51%

Private clouds are also much more likely to be hosted in Company-Owned Datacenters (56%) as opposed to Third-Party Providers (28%) or in Virtual Private Clouds (12%).

Moreover, the trend toward hosting and managing private cloud in company-owned datacenters is strongest among large companies.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsWhere Private Cloud is Hosted: Breakout By Company Size (January 2013)

TotalRespondent

sUnder 1,000Employees

Over 1,000Employees

In Company-Owned Datacenters 56% 41% 70%By a Third-Party Provider 28% 37% 19%Virtual Private Cloud 12% 17% 7%Other/Don’t Know/NA 4% 5% 4%

Future Spending Trends – Private Cloud Users. In a further positive sign, half of companies currently using private cloud (49%) say they’ll increase their private cloud spending over the next 6 months – 7-pts higher than in October.

And over the next 6 months, does your company plan to increase its overall spending on private cloud computing, decrease its spending, or will your company's overall cloud computing spending remain the same compared to the previous 6 months?

Companies Currently Using Private Cloud

Current Survey Jan ‘13

Previous Survey Oct ‘12

Increase Overall Spending 49% 42%Decrease Overall Spending 3% 4%Remain the Same 44% 46%No Plans to Use Private Cloud Computing in Next 6 Months

3% 8%

Only 6% say they’re decreasing spending or have no plans to use cloud at all, and 44% say spending will remain the same.

Hybrid Cloud Usage

We also looked at company use of Hybrid clouds – which are combinations of two or more cloud deployments (e.g., public/private) interacting in a unified but flexible infrastructure.

The term Hybrid cloud describes combinations of two or more clouds (e.g., public and private) that interact to create a unified but flexible infrastructure. Examples of corporate hybrid cloud deployments include using a vendor's Public cloud-based SaaS on a Private cloud, or taking a Private cloud's non-sensitive workloads during peak demand and shifting to a Public cloud. Does your company or organization currently make use of any hybrid cloud deployments?

Current Survey Jan ‘13

Previous Survey Oct ‘12

Yes 8% 6%No 92% 94%

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing TrendsCurrent Hybrid Cloud Usage. A total of 8% of companies surveyed report using hybrid cloud deployments – 2-pts higher than October. We also note that large companies (15%) are deploying hybrid cloud at more than twice the rate of smaller companies (6%).

Current Hybrid Cloud Deployments: Breakout by Company Size (Jan ’13)Total

RespondentsUnder 1,000 Employees

Over 1,000 Employees

Yes 8% 6% 15%No 92% 94% 88%

Future Hybrid Cloud Usage. As the below chart also points out, six months from now 13% of all companies say they’ll be using a hybrid cloud deployment.

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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ChangeWave Research: Corporate Cloud Computing Trends

ChangeWave Research MethodologyThis report presents the findings from a recent ChangeWave Research survey on corporate Cloud Computing. The survey was conducted January 7-25 and a total of 1,213 respondents involved in or knowledgeable about their company’s use of cloud computing participated – including 484 whose company currently uses public cloud.

ChangeWave's proprietary research and business intelligence gathering system is based upon the systematic gathering of valuable business and investment information directly over the Internet from accredited members of its research network.

The business and investment intelligence provided by ChangeWave provides a real-time view of companies, technologies, and consumer and business trends in key market sectors, along with an in-depth perspective of the macro economy – well in advance of other available sources.

About ChangeWave ResearchChangeWave Research, a service of 451 Research, is a survey research firm that identifies and quantifies change in corporate buying & business trends, telecom trends, and consumer spending & electronics trends.

The ChangeWave Research Network is a group of 25,000 highly qualified business, technology, and medical professionals – as well as early adopter consumers – who work in leading companies of select industries. ChangeWave surveys its Network members weekly on a range of business and consumer topics, and converts the information into a series of proprietary quantitative and qualitative reports. ChangeWave delivers its products and services on the Web at www.ChangeWaveResearch.com. 

451 Research, LLC, including its ChangeWave Research service, does not make any warranties, express or implied, as to results to be obtained from using the information in this report. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.

About 451 Research451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of 451 Research – at end-user, service-provider, vendor, and investor organizations – rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making. For additional information on 451 Research, go to: 451research.com.

For More Information:ChangeWave Research Telephone: 301-250-23637101 Wisconsin Ave. Fax: 240-200-3988Suite 1301 www.ChangeWaveResearch.comBethesda, MD 20814 [email protected]

This information is from ChangeWave Research, a service of 451 Research, and contains confidential business information.It may not be copied or distributed without permission. ©2013 451 Research, LLC. All rights reserved.

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