Cloud Computing 2010 An IDC Update ppsx

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
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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
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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
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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
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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
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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
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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
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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
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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
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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
© 2009 IDC
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Cloud User Surveys - Challenges
Cloud User Surveys - Challenges
Q: Rate the challenges/issues of the 'cloud'/on-demand model
Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009
(Scale: 1 = Not at all concerned 5 = Very concerned)
76.0%
76.8%
79.8%
80.2%
81.0%
82.9%
83.3%
87.5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Not enough ability to customize
Hard to integrate with in-house IT
Bringing back in-house may be difficult
Lack of interoperability standards
On-demand paym’t model may cost more
Performance
Availability
Security
© 2009 IDC
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Cloud User Surveys – Adoption Areas
Cloud User Surveys – Adoption Areas
(Scale: 1 = Very Unlikely 5 = Very Likely)
Q: Rate your likelihood to pursue the cloud model for the following
Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009
48.6%
49.1%
49.8%
50.6%
51.3%
52.9%
54.8%
55.1%
55.6%
59.4%
66.9%
67.3%
0% 10% 20% 30% 40% 50% 60% 70% 80%
IT/Information Security
Application dev/test/deploy platform

Business Intelligence/Analytics
Server capacity on demand
IT Management software
Storage capacity on demand
Data/Content Distribution services
Personal productivity apps
Business apps (CRM, HR, ERP)
Data Back-up or Archive services
Web applications/Web serving
Collaboration applications
© 2009 IDC
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Cloud User Surveys – Vendor Requirements
Cloud User Surveys – Vendor Requirements
(Scale: 1 = Not at all important 5 = Very Important)
Q: How important is it that cloud service providers…
Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009
72.9%
78.3%
79.2%
81.0%
82.1%
84.5%
86.0%
87.8%
88.6%
91.6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Have local presence, can come to my offices
Are a technology and business model innovator

Offer both on-premise and public cloud services
Support many of my IT needs
Allow managing on-premise & cloud together
Understand my business and industry
Provide a complete solution
Option to move 'cloud' offerings back on premise
Offer Service Level Agreements (SLAs)
Offer competitive pricing
© 2009 IDC
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IT Cloud Services Forecast Update
(preliminary)
IT Cloud Services Forecast Update
(preliminary)
Applications
49%
App
Dev/Deploy
10%
Storage
9%
Servers
12%
Infra-
structure
Software
20%
Applications
38%
App

Dev/Deploy
13%
Storage
14%
Servers
15%
Infra-
structure
Software
20%
Worldwide IT Cloud Services Revenue* by Product/Service Type
Source: IDC, September 2009. * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure
Software, Server capacity and Disk Storage capacity via the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges
2009
$17.4 billion
2013
$44.2 billion
© 2009 IDC
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Cloud Services as a % of IT
Cloud Services as a % of IT
Worldwide IT Spending by Consumption Model
IT Cloud Services
On-Premise IT
5%
10%
CAGR
26%
4%
44

17
0
100
200
300
400
500
600
Worldwide IT Spending ($ billion)
359
416
2009 2013
Source: IDC, September 2009
© 2009 IDC
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Cloud Services Growth Impact
Cloud Services Growth Impact
460.4
433.1
430
435
440
445
450
455
460
465
470
475
480

485
2012 2013
Worldwide IT Spending ($ billion)
Net new IT growth
= $27.3 billion
IT Cloud
IT Cloud Services growth
Traditional IT product growth
27%
73%
Sources of Incremental IT Spending Growth in 2013
Cloud vs. Traditional Products
Source: IDC, September 2009
© 2009 IDC
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Cloud’s Position in Asia/Pacific
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
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Cloud’s Position in Europe
Cloud’s Position in Europe
Survey: % of respondents in country/region using 7 or more IT cloud services*
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
0%
2%
4%

6%
8%
10%
12%
14%
UK Nordics Germany Spain France Benelux Italy
© 2009 IDC
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Upcoming IDC Cloud Research Plans
Upcoming IDC Cloud Research Plans
Cloud Landscape
Cloud Services: Global Overview - NEW
Asia/Pacific Cloud Services and 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
Software Pricing & Licensing
Cloud (application) Platform
Application Development & Deployment and Cloud Services
Application Life-Cycle Management
© 2009 IDC
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Upcoming IDC Cloud Research Plans
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 Services: The Professional Services Opportunity
WW Consulting & System Integration Services
IT Education & Certification
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
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IDC Cloud Computing Forum East
New York City, November 4th
IDC Cloud Computing Forum East
New York City, November 4th
Richard Schwind
Executive Director
Morgan Stanley Technology
Tony Lanzafame
Manager, Collaboration & Identity Management Services
NationalGrid Information Services
Angelo Valletta
SVP, Chief Information Officer
Sun National Bank

Tom Amrhein
CIO
Forrester Construction
Scott Metzger
Chief Technology Officer
TrueCredit.com
Jessica Carroll
Director, Information Technologies
United States Golf Association
© 2009 IDC
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Essential Guidance
Essential Guidance
Economic benefits of cloud have risen as adoption drivers,
tying last year’s leading driver: speed of deployment
Top concerns remain
: 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
The recession knocked down cloud adoption forecasts, but
less than traditional IT – cloud’s growth advantage widened in
2009
© 2009 IDC

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