Realising possibilitiesin the cloud

The need for a trusted broker

2

Business cloud research

BT and Cisco Systems sponsored an online survey conducted independently by Ovum between July and August 2014. The sample included 1,080 European enterprises basedin the UK, France, Germany, Italy, Spain, the Netherlands and Belgium.

Demographically, 79% of enterprises surveyed had +1,000 employees, while enterprises with 250–999 employees accounted for the remainder of the sample.

Respondents were drawn from health, education, central and local government, financial services,retail and manufacturing firms.

4

6 out of 10 enterprises are

convinced that cloud computing

can help solve their business challenges

What are the top 5 business challenges for enterprises?

Legacy technology

Process inefficiency

International expansions

High opex

Price competition

Large enterprise challenges

38%

37%

25%

24%

23% Process inefficiency

Staff skills / shortages

Dealing with compliance

High opex

Price competition

Mid-market challenges

40%

38%

34%

29%

29%

5

15%

5%

41%

17%

40%

56%

3%

22%

Implementer

Decision maker

Not important at all Low importance Moderate importance High importance Critical importance

• 78% of ICT decision makers believe cloud computing is of high importance; those implementing solutions are more cautious with an equivalent ratio of 43%

• Management needs to involve implementers, they are the enablers in minimising the risks and exploiting the benefits of cloud.

Differing views of the role cloud computing plays

Do you believe that cloud computing has a role in solving the major challenges facing your company?

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Is it worth it, or just a pain in the IaaS?

• Whilst there is a strategic desire to adopt cloud computing, 69% of customers are implementing it tactically and cautiously

• Retail and financial services firms are most likely to report product innovation and brand benefits

• One in five central government organisations highlight customer experienceimprovements – the highest across industries surveyed.

Improved efficiency of business processes

Performance improvement for internal users

Improved system resilience / disaster recovery

Faster deployment of new applications

Improved business processes

Cost saving for IT budget

34%

29%

25%

25%

18%

35%

Most important benefits achieved from using IaaS

7

Navigating the cloud isn’t always straight forward

Security / Compliance issues

Complying with current and future rules is a main concern for enterprises. So is their exposure if they operate in areas where no cloud services rules yet exist.

43%

Internal skills shortages

Many enterprises don’t have the skills to manage cloud workload migration or select appropriate suppliers. Growing demand for cloud usage will create more issues and challenges.

32%

Time / effort needed to move workloads to cloud

Enterprises see a business risk if the migration is not managed properly. Possible business disruptions or downtime will cost time and money.

29%

Which are the most frequently encountered problems using or evaluating cloud computing?

8

Demands are high for both public and private cloud

0% 10% 20% 30% 40% 50% 60% 70%

Best of class SLAs

Penalties for non-achievement of SLAs

Zero contractual commitment

Wide area network ownership

Availability of data centres around the globe

Physical location of data centre

Security / compliance credential

Migration support services

Dedicated account manager

Service management / monitoring tools

Experience in delivering hybrid cloud solutions

Public Private

Which of the following criteria would be most important to you in selecting an IaaS cloud service provider for public cloud and for private cloud?

9

The criteria is similar for both public and private cloud:

• Security/compliance is the most critical factor for both private and public cloud

• Over 50% of respondents cited best-in-class SLAs as an important criteria

• Service management/monitoring tools stand out for private and public cloud at 49% and 44% respectively

• Similarly, migration of support services stands out at over 43%

• Location of data centre at 51% is particularly high for private cloud

• Experience in delivering hybrid cloud solutions and wide area network ownership also rank highly; more than 42%

• For public cloud only 40% felt zero contractual commitment was of importance.

Demands are high for both public and private cloud

Which of the following criteria would be most important to you in selecting an IaaS cloud service provider for public cloud and for private cloud?

10

Major internet players (e.g. Amazon Web Services, Google)

Major software players (e.g. Microsoft)

Major systems vendors (e.g. Cisco)

Major telecom operators (e.g. BT)

Major consultancies (e.g. Accenture)

Major IT services / integrators (e.g. HP)

Major hosting / managed services providers (e.g. Rackspace)

Local hosting / managed services provider

Other local provider

0%

Public Iaas Private Iaas

5% 10% 15% 20% 25% 30% 35% 40% 45% 50%0%

Public Iaas Private Iaas

5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Cloud usage: trends in cloud providers over next 2 yearsCloud providers used for IaaS: a highly competitive market

Enterprises on average use 2.7 differentcloud providers

What type of provider do you use today for public and private IaaS?What types of provider would you consider using for public and private IaaS in the next 2 years?

Plans for the next 2 years

• Future use is strongly tied to current use

• 20% increase in next 2 years using a major telcofor private IaaS

• 36% of enterprises would consider using a major telco for public IaaS and 40%for private IaaS

• 44% would consider a system vendor for either IaaS – an average increase of 16% over2 years

• Large enterprises are more likely to consider a major telcothan mid-sized enterprises for public cloud.

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Securing the ‘cloud of clouds’ is the future challenge

• Security compliance and service management are leading future concerns for enterprises

• More than 1/3 face challenges in meeting internal demands but also moving to another provider or cloud type.

Managing increased compliance / data security requirements

Migrating legacy applications to the cloud

Meeting internal business unit and user demands e.g. application-specific

performance commitments

Moving workloads between different providers or cloud types

Finding a strategic cloud partner that we can work with as our cloud requirements evolve

40%

35%

33%

31%

29%

Future challenges in cloud computing

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• Customer preferences are shifting towards end-to-end management across data centre and the network

• Approx. 90% of enterprises see benefits in selecting a provider that can provide such services.

End-to-end management e.g. fault reporting/fault resolution

End-to-end SLA for availability

End-to-end security

End-to-end performance reporting

48%45%7%

38%53%9%

48%39%13%

32%53%15%

Considerable benefitSome benefitLittle or no benefit

End-to-end management as a differentiator

Do you see any benefits in selecting an IaaS cloud provider that can provide end-to-end management and SLAs for both the cloud datacentre and WAN (wide area network) connecting your company sites?