tbr webinar: cloud orchestration highlights & outlook

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR Cloud Program Cloud Orchestration Highlights and Outlook

Technology Business Research Webinar Series

March 25, 2014

TBR

2 TBR Quarterly Webinar Series | 3.25.14 | www.tbri.com | ©2014 Technology Business Research Inc.

Cloud Orchestration Highlights and Outlook: Webinar Presenters

Ramunas Svarcas Principal Analyst, Professional Services Practice [email protected] @rjsTBR

Cassandra Mooshian Analyst, Cloud Practice [email protected] @CMooshian

mailto:[email protected]



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Cloud Customer Reports and Topical Reports Tracks — Semiannually Q2 & Q4 • Private Cloud Migration • Cloud Professional Services • Hybrid Cloud Migration

Benchmarks &

Cloud Data

Models

Vendor Cloud

Business

Reports*

Cloud Customer

Research Tracks

TBR Cloud Program — Portfolio Overview

TBR Cloud Portfolio

Public Cloud

Benchmark — Quarterly

Managed Private &

Professional Services

Cloud Benchmark —

Semiannual

Cloud Components

Benchmark —

Semiannual

Current Portfolio

Topical —Semiannually Q1 & Q3 • Security • Orchestration

*Salesforce.com and Workday are quarterly reports. The remaining reports are published semiannually.

Accenture Amazon Atos Capgemini Cognizant CSC Dell

Deloitte Fujitsu Google HP IBM Infosys Microsoft

Oracle Rackspace Salesforce.com* SAP ServiceNow Tata Verizon

Wipro Workday* Plans in place for additional vendors

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CLBQ Research Highlights and Outlook

Cloud Orchestration

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Cloud Orchestration Market Summary

The increasing complexity of cloud computing environments necessitates management and hosting from IT services vendors

What is the current state of the cloud orchestration market?

What are the top benefits of and barriers to orchestration?

Which vendors are leading the charge? How are they doing so?

TBR Position

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TBR Position


The addition of workloads and apps to cloud environments generates cloud orchestration opportunities for first-mover vendors

What is happening? Hybridization and the complexity of cloud are driving orchestration adoption. Ad hoc cloud integrations are the most common drivers of orchestration adoption, which is expected to become more pronounced as an increasing number of add-on software and applications layers from a growing number of vendors enter the market.

Barriers and benefits? Security is the top hindrance to adoption, but it is also the top benefit.

Users and self-identified future users of orchestration indicate security as the top area of concern around overall cloud initiatives. However, future users are far more concerned with security, demonstrating orchestration services’ ability to address and alleviate security barriers once adopted.

Who is winning? First movers at the forefront of the cloud wave are winning in orchestration.

The adoption of consulting services increased customer knowledge of the business and IT benefits of cloud orchestration services; as a result, first-mover vendors at the beginning of the cloud wave top the list of orchestration vendors.

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Management is the largest driver of cloud professional services revenue, an opportunity for outsourcing vendors that moved to cloud delivery

Current Cloud Market

The hot market

Managed services, encompassing SaaS, PaaS, IaaS and BPaaS offerings, as well as professional services associated with the management of the environments, are now moving to providing platforms to ease the use of a multitude of cloud services while ensuring they work together. The arena of orchestration services, also known as services brokerage, is evolving.

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Cloud Orchestration Market

Current Cloud Orchestration Market

Two-thirds of respondents do not use orchestration services, driving vendor opportunities for consulting and orchestration engagements

Current opportunity

Future opportunity, if marketed well

The proliferation of cloud offerings generated a rise in cloud orchestration adoption. Education through consulting and advisory services, as was done at the initial cloud adoption stage, needs to be conducted to make nonusers aware of the values and benefits of orchestration services.

TBR

©2013 Technology Business Research, Inc. 9 TBR Cloud Program: Private Cloud Customer Track

Enterprises committed to private cloud and expanding workload migration present a huge opportunity for vendors with orchestration services

44%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2012 2013 2014

% o

f En

terp

rise

s u

sin

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Private Cloud Migration and Migration Growth

Private Cloud Migration

Average workloads migrated:

51%

“Some years ago, we weren’t convinced of the value, but that has changed over time, and we are seeing more and more value in some of those managed private cloud services. That has been sort of a cultural change for us — a philosophical change.” — IT Director, $150M to $200M Education, U.S.

2 4 10

Width of bar represents number of average workloads migrated

to private clouds

SOURCE: TBR 2012 and 2013 Private Cloud Studies

Current Cloud Market

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Added IT and security complexity resulting from cloud environment hybridization drives orchestration purchases Reasons Behind Adoption and Use Cases for Cloud Orchestration

Current Cloud Orchestration Market

Orchestration users indicate that adding workloads and the push to hybrid clouds are the top triggers of cloud orchestration purchases. Cost savings is not a trigger of purchasing cloud orchestration, but rather a benefit of purchasing. Cost savings via improved operating efficiencies are the No. 1 benefit of orchestration adoption, according to purchasers.

Ad hoc cloud integration is the No. 1 use for cloud orchestration services. We expect this to continue as organizations shift largely to hybrid clouds and piece together different solutions that add capabilities to directly and positively affect business outcomes.

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TBR Position


Orchestration alleviates adopters’ security concerns, but security remains the biggest barrier to future users’ overall cloud adoption






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IT & LOB

IT

Barriers and Benefits

Over 41% of respondents indicated they do not see a need for orchestration services, an education challenge for vendors to overcome

This trend was also prevalent in 2010, as cloud services arrived on the scene. Many believed cloud was a minor disruption, with limited need or use, while today we know cloud is a major change in the delivery of IT infrastructure.

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Many respondents believe they have/will build skills internally to alleviate cloud pain points, but are still likely to hire a third party for security issues

Security is the cloud-related pain point most likely to be alleviated by a third party.


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Current and future users expect improved efficiencies and performance as the biggest business and IT benefits of cloud orchestration adoption


The top benefits of orchestration services correspond with reduced costs for IT operations, indicating that orchestration services need to be promoted to IT departments, not line-of-business managers.

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Embedding authentication, entitlement management and encryption into preintegrated and orchestrated cloud offerings reduces adopters’ anxiety regarding cloud security.

While customers do not expect orchestration to solve security issues, security concerns decline once orchestration platforms are in place


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TBR Position


Customer education is critical to vendor success in the market for cloud orchestration services






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Following advisory and consulting activity, customers are more likely to utilize the full spectrum of cloud professional services

Competitive Landscape

Vendors with end-to-end cloud professional services portfolios are best positioned to take advantage of incumbent revenue streams, including orchestration, as customers broaden their appetites for diverse cloud services.

Includes managed cloud services and orchestration services

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EMC is considered as an orchestration vendor far more than it is chosen, indicating a big opportunity for the company to promote itself and its capabilities in the space. If EMC were to transition its considerers to users, it would rank among the top six vendors.

Software vendors are considered often for orchestration services, increasing competition and indicating a future adoption trend

On the other end of the spectrum, some vendors, and HP in particular, are used more often than they are considered, indicating a challenge in gaining new logos.

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IBM and Microsoft tout the most adopted orchestration platforms, while Microsoft has the greatest mindshare among future users


Opportunity

Gaining mindshare

First-mover vendors are the most adopted, but as more vendors enter the orchestration space, adoption will disperse, making it more difficult to indicate which is the leader, similar to what happened with the first wave of cloud adoption.

TBR


TBR Position


For orchestration to gain popularity and move along the adoption curve, vendors must advise on the benefits of third-party management






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Questions?

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TBR Cloud — Upcoming Webinars

TBR Cloud Research Overview

Webinar Focus Webinar Date

Cloud Benchmarks

Public Cloud Benchmark April 15, 2014

TBR


Cloud Professional Services Definitions

Cloud Professional Services:

Cloud Consulting Services

Provide strategic and tactical advice in a particular area of expertise for the use of cloud computing services. This includes selection of a cloud environment, planning and design of private clouds, and Cloud Brokerage services.

Cloud System Integration/ Implementation Services

Offer assistance in making diverse components, such as infrastructure (hardware and software) or cloud services work together in the cloud environment.

Cloud Application Development and Maintenance Services

Software development that encompasses requirements of engineering design, implementation, testing and maintenance to construct software for cloud computing; software maintenance concerns all activities needed to keep the system operational after it has been delivered to the user for cloud computing.

Cloud Operations, Management and Maintenance Services

Assistance in the maintenance, enhancement and monitoring of cloud environments including hardware, such as storage, servers and network, and support of the overall interaction of the infrastructure; includes cloud orchestration, which features aggregation, integration and management of multiple cloud offerings, service/application catalogue and security services.

TBR Cloud Portfolio: Definitions

TBR


Cloud Computing Services Definitions

Cloud Computing Services:

Software as a Service (SaaS)

SaaS providers offer hosted applications to customers on an on-demand or per-use basis; therefore, customers can simply use the application or applications they need when they need them and avoid the cost of installing and maintaining supporting infrastructures. Typical software includes: CRM, analytics, asset management, knowledge management, document and content management.

Platform as a Service (PaaS)

PaaS provides customers with the supporting infrastructure to either conduct software application development or run existing software. This includes the operating environment, which manages workflow and collaboration, and the underlying hardware, such as servers and networking.

Infrastructure as a Service (IaaS)

Under IaaS, customers pay to gain access to infrastructure (e.g., hardware: compute and storage; software: ITSM and security; and/or networking), on a utility basis to run their licensed software.

Business Process as a Service (BPaaS)

BPaaS is an application delivered “as a Service” that is used by business process service provider personnel that perform activities on behalf of the service recipient. This service combines Business Process Outsourcing (BPO) with SaaS. Typical processes include: payments, advertising, industry operations and e-commerce enablement.


TBR


Cloud Environments Definitions

Cloud Environments:

Private cloud The cloud infrastructure, platform or application is operated solely for an organization. It may be managed by the organization or a third party and may exist on premises or off premises.

Public cloud The cloud infrastructure, platform or application is made available to the general public or a large industry group and is owned by an organization selling cloud services.

Hybrid cloud

A cloud infrastructure, platform or application that is a composition of two or more clouds (private or public) that remain unique entities, but are bound together (integrated) by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds); hybrid cloud can be cloud-to-cloud integrations with a single workload as well as across two or more workloads. Hybrid clouds include public cloud integrated with private cloud, private cloud integrated with private cloud, and public cloud integrated with public cloud. TBR defines hybrid cloud as cloud-to-cloud integrations across a single workload as well as between workloads.

Methods in which customers purchase clouds:

Third-party delivered Cloud services purchased and delivered through a third party (including ISVs, MSPs and professional services vendors)

Self-built cloud (components)

Hardware, software and networking components purchased to build a cloud internally


TBR


For additional information, please contact:

Contact Us

Ramunas Svarcas

Senior Analyst and Engagement Manager, Professional Services Practice Email: [email protected]

Twitter: @rjsTBR

Telephone: 603.758.1833

Cassandra Mooshian

Analyst, Cloud Practice Email: [email protected]

Twitter: @CMooshian

Telephone: 603.758.1827

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc

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Cloud Vendor Reports (Cloud Business Quarterly)

Benchmarks (Benchmark XLS data is also available)

• Accenture Cloud* • Amazon Web Services* • Atos Cloud* • Capgemini Cloud* • Cognizant Cloud* • CSC Cloud* • Dell Cloud* • Deloitte Cloud* • Fujitsu Cloud* • Google Cloud* • HP Cloud* • IBM Cloud* • Infosys Cloud* • Microsoft Cloud* • Oracle Cloud* • Rackspace* • Salesforce.com • SAP Cloud* • ServiceNow* • TCS Cloud* • Verizon Cloud* • Wipro Cloud* • Workday

Public Cloud Benchmark The public cloud program compares and analyzes the strategies, results and drivers of 50 key vendors in the public cloud segment across Software as a Service, Platform as a Service and Infrastructure as a Service. Managed Private & Professional Services Cloud Benchmark* The managed private cloud and professional services program compares and analyzes the strategies, results and drivers of 29 key vendors in the managed private cloud and professional services market across Business Process as a Service, Software as a Service, Platform as a Service, Infrastructure as a Service, cloud consulting, cloud SI and cloud ADM. Cloud Components Benchmark* The cloud components program compares and analyzes the strategies, results and drivers of 12 key vendors that sell the building blocks of software and hardware used to construct public and private clouds. Note: There are also three semiannual cloud adoption studies and cloud topic reports (Cloud Security is available now and Cloud Orchestration is upcoming).

Syndicated Research Coverage

TBR Cloud Practice Syndicated Coverage

*Semiannual Report

About Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators.

Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.

Contact Us

1.603.929.1166 [email protected] www.tbri.com 11 Merrill Drive Hampton, NH 03842 USA

This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.


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tbr webinar: cloud orchestration highlights & outlook

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