Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved. Cloud Computing 2010 An IDC Update Frank Gens, Senior Vice President & Chief Analyst Robert Mahowald, Research Director, SaaS & Cloud Services Richard L. Villars, Vice President, Storage Systems & Executive Strategies David Bradshaw, Research Manager, Applications and Solutions, EMEA Chris Morris, Research Director, Services Research, Asia/Pacific IDC Executive Telebriefing 29 September 2009 © 2009 IDC 2 Agenda Agenda Cloud Services Global Overview - new CIS Cloud Services Definition & Landscape - updated Cloud User Survey - new findings Worldwide IT Cloud Services Forecast - updated Q&A © 2009 IDC 3 Description: Cloud Services: Global Overview is IDC’s unique program that gives the "rolled-up" view of the entire opportunity for IT Cloud Service provision. This program will provide the complete Cloud services opportunity segmentation by 3 regions and by technology segment (7-10 Black Book segment level). For further drill down please see specific market programs. It will provide survey data on:  How quickly Cloud Services will be adopted and by which customer segments  How Cloud will impact vendor business models and service offerings  Will examine the customer benefits and challenges surrounding Cloud Services Coverage:  An IT Cloud Services Forecast, consisting of 7-10 Black Book-level categories (Servers, Storage, Apps, etc), with a 3-region split (EMEA, Americas, Asia Pacific), and an enterprise size split (large, medium, small)  IDC’s Cloud definition and taxonomy  Cloud user survey findings and spending intentions  Vendor Cloud strategy briefs driven by events, announcements  Industry structure/model scenarios, predictions - focused on mega-shifts IDC sees in industry structure, strategies and other topics Lead Analysts: Frank Gens, Robert Mahowald, Rick Villars Regional Associates: Chris Morris (AP), Satoshi Matsumoto (Japan), Vladimir Kroa (CEE), David Bradshaw & Chris Ingle (W. Europe), Lidice Fernandez (Latin America) Cloud Services Global Overview Cloud Services Global Overview New © 2009 IDC 4 Cloud Services Definition - updated Cloud Services Definition - updated Consumer and Business products, services and solutions delivered and consumed in real-time over the Internet Cloud Services “casual description”  Shared, standard service – built for a market (public), not a single customer  Solution-packaged – a “turnkey” offering, integrates required resources  Self-service – admin, provisioning; may require some “on-boarding” support  Elastic scaling – dynamic and fine-grained  Use-based pricing – supported by service metering  Accessible via the Internet/IP – ubiquitous (authorized) network access  Standard UI technologies – browsers, RIA clients and underlying technologies  Published service interface/API – e.g., web services APIs Key Attributes © 2009 IDC 5 Cloud Services Definition - updated Cloud Services Definition - updated Consumer and Business products, services and solutions delivered and consumed in real-time over the Internet Cloud Services Public - open to a largely unrestricted universe of potential users; designed for a market, not a single enterprise Private - designed for, and access restricted to, a single enterprise (or extended enterprise); an internal shared resource, not a commercial offering; IT Org is the “vendor” of the shared/std service to its users Deployment Models [Note: large gray zones between these two broad categories]  Shared, standard service – built for a market (public), not a single customer  Solution-packaged – a “turnkey” offering, integrates required resources  Self-service – admin, provisioning; may require some “on-boarding” support  Elastic scaling – dynamic and fine-grained  Use-based pricing – supported by service metering  Accessible via the Internet/IP – ubiquitous (authorized) network access  Standard UI technologies – browsers, RIA clients and underlying technologies  Published service interface/API – e.g., web services APIs Key Attributes © 2009 IDC 6 IT Cloud Services Taxonomy IT Cloud Services Taxonomy Cloud Applications (Apps-as-a-service) Cloud (Application) Platforms (Platform-as-a-Service) Cloud Infrastructure (Infrastructure-as-a-Service) App Deploy IT Cloud Services App Dev/Test © 2009 IDC 7 All Types of IT Software & Hardware Are or Will Be Offered as Cloud Services… All Types of IT Software & Hardware Are or Will Be Offered as Cloud Services… Application Development Software Application Server Middleware Data Access, Analysis, and Delivery Information & Data Management Integration & Process Automation Middleware Other Application Dev and Deployment Quality & Life-Cycle Tools Enterprise Portals Servers Storage Networks Clients System and Network Management Software Security Software Storage Software System Software Collaborative Applications Content Applications Enterprise Resource Management Applications Supply Chain Management Applications Operations and Manufacturing Applications Engineering Applications Customer Relationship Management Applications Cloud Applications (Apps-as-a-service) Cloud (Application) Platforms (Platform-as-a-Service) Cloud Infrastructure (Infrastructure-as-a-Service) App Deploy IT Cloud Services App Dev/Test App Dev & Deployment Systems Infrastructure Software Systems Storage (Software-as-a-Service) Applications Corresponding Primary Market IDC IT Product Taxonomy …many IT and Network Services will also be transformed and extended to support the cloud service delivery model… © 2009 IDC 8 Cloud Services Beyond the IT Industry Cloud Services Beyond the IT Industry Cloud Applications (Apps-as-a-service) Cloud (Application) Platforms Cloud Infrastructure (Infrastructure-as-a-Service) App Dev/Test App Deploy The IT Industry’s Cloud Services Cloud Business (Process-as-a-service) Every Other Industries’ Cloud Services © 2009 IDC 9 IT’s Cloud Opportunities Landscape IT’s Cloud Opportunities Landscape Provide IT Products/Services to enable Cloud SPs (public & private) Provide Services around IT Cloud Services Provide IT as Cloud Services Servers Storage Network Equipment IT/Network Management Software Network Services App Development/ Deployment Software IT Services – Consulting, Integration, etc. IT & Network Svcs Telcos Pureplay Cloud HW & SW Vendors “arms dealer” © 2009 IDC 10 Cloud User Surveys - Benefits Cloud User Surveys - Benefits Q: Rate the benefits commonly ascribed to the 'cloud'/on-demand model (Scale: 1 = Not at all important 5 = Very Important) Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 54.0% 63.9% 64.6% 67.0% 68.5% 75.3% 77.7% 77.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Seems like the way of the future Sharing systems with partners simpler Always offers latest functionality Requires less in-house IT staff, costs Encourages standard systems Monthly payments Easy/fast to deploy to end-users Pay only for what you use [...]... Technologies - NEW Central and Eastern European Cloud, Hosting and Outsourcing Services United States SaaS and Cloud Services Spending by Vertical 2009 (special report) - NEW Cloud Software/Apps SaaS and Cloud Services European SaaS and Cloud Services Le Marché du Software as a Service (report - France) Japan SaaS and Cloud Services Business Analytics Solutions European Business Analytics Markets & Strategies... Licensing Cloud (application) Platform Application Development & Deployment and Cloud Services Application Life-Cycle Management © 2009 IDC 19 Upcoming IDC Cloud Research Plans Cloud Infrastructure Enterprise System Management Security Services Security Products Storage Solutions: Storage and the Cloud (report series) - NEW Servers in the Cloud (special report) - NEW Services around Cloud Services SOA and Cloud. .. Germany Spain France Benelux Italy Source: IDC European Enterprise Services Survey 2009, n = 533 * Survey list of cloud services included: email/calendar, financials, app dev, collaboration, CRM, HRM, security, office productivity, storage/backup, app platform © 2009 IDC 18 Upcoming IDC Cloud Research Plans Cloud Landscape Cloud Services: Global Overview - NEW Asia/Pacific Cloud Services and Technologies... ICT Offerings for Cloud SPs Datacenter Networks NGN Operations Storage Solutions: Storage and the Cloud - NEW Servers in the Cloud (special report) - NEW © 2009 IDC 20 IDC Cloud Computing Forum East New York City, November 4th Richard Schwind Executive Director Morgan Stanley Technology Jessica Carroll Director, Information Technologies United States Golf Association Tony Lanzafame Manager, Collaboration... security, availability, and performance Cloud adoption momentum is strong around collaboration, “cloudifying” Web commerce, and data backup/archive Core business apps, IT infrastructure services, analytics, and app dev/test/deploy are next in line Top vendor requirements are: pricing; SLAs; dynamism across public cloud, private cloud, and traditional environments; and understanding customers’ business/industry... 455 IT Cloud 433.1 450 445 440 435 430 2012 2013 Source: IDC, September 2009 © 2009 IDC 16 Cloud s Position in Asia/Pacific • Familiarity is high • But opinion is low! Source: IDC Asia/Pacific End-user Cloud Computing Survey, 2009, n=667 © 2009 IDC 17 Cloud s Position in Europe Survey: % of respondents in country/region using 7 or more IT cloud services* 14% 12% 10% 8% 6% 4% 2% 0% UK Nordics Germany Spain... environments; and understanding customers’ business/industry The recession knocked down cloud adoption forecasts, but less than traditional IT – cloud s growth advantage widened in 2009 © 2009 IDC 22 Questions? Contact us at: fgens @idc. com rmahowald @idc. com rvillars @idc. com dbradshaw @idc. com cmorris_ext @idc. com © 2009 IDC 23 ... Agreements (SLAs) 88.6% Option to move 'cloud' offerings back on premise 87.8% Provide a complete solution 86.0% Understand my business and industry 84.5% Allow managing on-premise & cloud together 82.1% 81.0% Support many of my IT needs Offer both on-premise and public cloud services 79.2% Are a technology and business model innovator 78.3% Have local presence, can come to my offices 72.9% 0% 10% 20%... demand IT Management software 51.3% Server capacity on demand 50.6% 49.8% Business Intelligence/Analytics Application dev/test/deploy platform 49.1% IT/Information Security 48.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% (Scale: 1 = Very Unlikely 5 = Very Likely) Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 © 2009 IDC 12 Cloud User Surveys – Vendor Requirements Q: How important is it that cloud. .. Have local presence, can come to my offices 72.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% (Scale: 1 = Not at all important 5 = Very Important) Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 © 2009 IDC 13 IT Cloud Services Forecast Update (preliminary) Worldwide IT Cloud Services Revenue* by Product/Service Type Servers Servers 12% 15% Applications Storage Applications 38% 49% 9% Storage . Spain France Benelux Italy © 2009 IDC 19 Upcoming IDC Cloud Research Plans Upcoming IDC Cloud Research Plans Cloud Landscape Cloud Services: Global Overview - NEW Asia/Pacific Cloud Services and. Cloud Services European SaaS and Cloud Services Le Marché du Software as a Service (report - France) Japan SaaS and Cloud Services Business Analytics Solutions European Business Analytics Markets. Licensing Cloud (application) Platform Application Development & Deployment and Cloud Services Application Life-Cycle Management © 2009 IDC 20 Upcoming IDC Cloud Research Plans Upcoming IDC Cloud