1. Robert Mahowald August 26, 2015 VP, Cloud Software, IDC
1% is optimized
2nd wave of cloud adoption
Cloud done right can yield big business benefits
Robert Mahowald
VP, Cloud Software, IDC
August 26, 2015

2. IDC interviewed Director-level and above respondents from a global sample of 19,080 enterprise executives responsible for IT decisions. Of this sample, the full survey was conducted on the 3,467 respondents actively using cloud for multiple workloads
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

3. An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

4. Enrico: “In terms of sequence I would start with Slide 6 and then expand on the content with slides 4 and 5 (Cisco sponsored research first and then additional data points from IDC)”
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

5. ORGANIZATIONAL IMPACT TIME (MONTHS) TO MAINSTREAM
Hybrid Cloud is the Dominant Operational Model
ORGANIZATIONAL IMPACT
TIME (MONTHS) TO MAINSTREAM
A single department or a business unit
Multiple departments or business units
Companywide
0-12
12-24
24+
Cloud Open Source
Hybrid Cloud Architecture
Workload-aware management
Trust and Data Sovereignty
Continuous Delivery and DevOps
Managing Risk in IT Sourcing
Micro IaaS
Industry Clouds and Data
Consumerization of Development
Skills 1 5 6 8 9 4 10 7 3 2
IT buyers are shifting to “Cloud also” strategy
- Which endorsed Hybrid Cloud architectures
53% of Business customers indicate “Shadow IT” is a problem
More than 65% of Enterprise IT organizations will commit to Hybrid Cloud
- Proof of Concepts within next 12 months
- Production in 2015
IT organizations want “liquidity” in some form to source, build, and pay for IT capability
Data Sovereignty and Regulatory Compliance is one of top 3 concerns and key criteria for Cloud workloads
Note: Size of the bubble indicates complexity/cost to address
Source: IDC FutureScape: Worldwide Cloud 2015 Predictions, IDC, December, 2014

6. Customer Budget Intentions Point to Hybrid Expectations
11% shift toward Hybrid Cloud potential architectures
Note that future budget allocations for cloud delivery models grow primarily at the expense of spending budgeted for traditional in-house IT.
Source: IDC FutureScape: Worldwide Cloud 2015 Predictions, IDC, December, 2014

7. Hybrid Cloud Optimization Requires a Focus on Workloads
Choice to build or rent across different providers
Flexible workload deployment and resource utilization
Enables scalable services with elastic capacity
Self-service interfaces for both users and IT
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

8. An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

9. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

10. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

11. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

12. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

13. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

14. An IDC InfoBrief, sponsored by Cisco
Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

15. Source: IDC InfoBrief, sponsored by Cisco: “Don't Get Left Behind: The Business Benefits of Achieving Greater Cloud Adoption, August 2015”

16. The Quest for Cloud Maturity
Currently implemented
Will implement by end of 2017
Beyond 2017
Percentage of Respondents Having Implemented Each Task
Adequate internal knowledge and use of important cloud best practices
Standard configuration and provisioning templates for cloud workloads and infrastructure
IT staff skills able to fully exploit cloud management and automation tools
Ability to monitor, forecast ,and optimize server, storage and network resources dynamically
Availability of IT headcount to support cloud
Ability to use cloud to drive innovation, agility, and competitive advantage
Consistent business and IT governance to define management policies and SLAs
IT staff able to effectively evaluate and negotiate public cloud contracts
Processes to share and reuse templates and best practices
Collaborative business and IT governance to define management policies
Standardized ROI and business case tools to evaluate costs and benefits
Ability to accurately define costs and implement usage-based chargeback mechanisms
Effective use of automation, self-service and orchestration tools
Consistent service level monitoring across public/private/hybrid clouds
Unified service catalog and self-service provisioning
89.5% of respondents state “strong desire” for Optimized Cloud maturity 0%
20%
40%
60%
80%
IT operations teams need help to reach their goals
Adequate internal knowledge/use of important cloud best practices
Standard configuration and provisioning templates for cloud workloads and infrastructure
Availability of IT headcount to support cloud transformation
~ 50% skills gap
Consistent processes to identify apps to best benefit from cloud
IT staff able to effectively evaluate/negotiate public cloud contracts
Effective use of automation, self-service, and orchestration tools
Source: IDC CloudView Survey, December N=2,855 [Q5] Thinking about your organization's ability to manage its cloud environments efficiently, please indicate whether you currently have implemented the following…

17. Don’t Get Left Behind
The Business Benefits of Achieving Greater Cloud Adoption
Key Takeaways
Cloud adoption is growing, but few companies have advanced cloud strategies in place
Cloud adoption is driving significant benefits
Private and hybrid cloud are a critical part of the mix
Web-scale public cloud is making way for enterprise-class “provider-based clouds”
Hybrid cloud requires workload portability, security, and policy- based control – There’s a skills gap to reach maturity goals
Organizations studied are realizing $1.6 million in revenues and $1.2 million in reduced costs per cloud application

18. Cisco Business Cloud Advisor A Framework to Make Informed IT and Business Decisions
Developed with IDC, Cisco® Business Cloud Advisor:
Leverages analysis of more than 3,400 companies in 17 countries
Correlates cloud adoption with business benefits, and delivers an actionable cloud strategy
Based on primary market research conducted by IDC
Provide fact-based framework to make cloud decisions
STAGE
Ad Hoc
OPPORTUNISTIC
REPEATABLE
MANAGED
OPTIMIZED
Overall Cloud Adoption
Insurance
Employees
North America
DOMAIN