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The HP ProjectJanuary 30th, 2010

Saurabh Mallik

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Adoption describes the acceptance of Enterprise Cloud

Software Services(ECSS) according to the business

requirements and needs of previously defined segments.

20% Large Service Integrators building SaaS-based practicesBuyers looking to shift CAPEX to OPEXRecession accelerating SaaS/Cloud adoption:

As a result, 75 percent of the surveyed chief information officers (CIOs) acknowledge the need to invest in more flexible technology, be able to scale it up and down rapidly, and communicate faster with technology partners.

Strong Adoption74% of US firms: 25% of all apps will be SaaSNewer enterprises in emerging markets(BRIC) implement SaaS, skipping traditional deployments65% of IT consumers have or plan to adopt cloud by 2012

HP Accelerates Cloud Computing Adoption for Businesses and Service Providers

Hamburg, Dec 16: HP today announced three new offerings to help businesses and telecommunication service providers realize the benefits of cloud computing while optimizing costs and mitigating the risk of adoption.

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Market ConsolidationMainstream

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Pioneers and Trailblazers

C lo u d M a t u r i t y C y c le

Gartner Outlines Three Phases of Evolution for Cloud Computing Market Through 2015

January 2010 The HP Project 5

• IT Governance & Security are Key hurdles, as enterprises contemplate moves towards

Cloud adoption.

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Frank Gens, senior vice president and chief analyst, IDC. "Adoption, however, is limited by uncertainties surrounding risks and rewards. Customers want assurance and a safe path to cloud adoption that will address potential risks of security, performance and availability, while providing clear return on investment."

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Service providers can generally offer a much more secure and convenient cloud service for small companies, since they see trends and are ahead.

Enterprises have large and specific security & governance practices, which cloud service provider can't--or won't—do because of their business model.

The highly regulated industries, like aerospace and healthcare, which have data privacy and governance Laws, will be slow to adapt.

Barriers to adoption depends on the risk associated with the cloud. The pace of adoption mirrors the risks, with SMB showing fastest growth