Top information technology executives believe that cloud computing will have a significant impact on IT organizations and IT vendors, as well as the enterprises they support, according to a survey.
More than 70 percent of those surveyed said they believed that by 2014, a third of all IT organizations will be providers of cloud services to customers or business partners.
Almost 80 percent of respondents felt that cloud service brokers that provide integration, management, security and other services across public cloud offerings will emerge as powerful industry players by 2015.
The survey findings raised a red flag for the IT industry as a whole, with nearly two-thirds of those surveyed agreeing that several IT vendors will stumble badly in the transition to the cloud over the next three years, putting them at risk of becoming the next Wang or DEC.
Nearly half of respondents feel that major cloud providers will have addressed uptime concerns so effectively in the next three years that reliability will be a non-issue in moving enterprises to the cloud. The findings also showed that most believed security -- a chief impediment to cloud services -- will instead become a major accelerator by 2015.
More than 80 percent of the respondents said that one-third of Fortune 1000 enterprises will deploy at least one business-critical system in the cloud. More than half of the IT executives surveyed believe that mobile-optimized cloud services will be a primary interface with customers by 2014.
Comment from John Gallant, SVP and chief content officer, IDG Enterprise: The cloud has been the subject of much debate and discussion, but this survey offers us new and unique insights, from a group of today's most influential IT executives and early cloud adopters.
About the survey: The "Future Proofing the Cloud" survey from IDG Enterprise included questions that explore how the cloud is changing the IT organization, as well as how the industry and technology itself may evolve.
Contact: http://www.idc.com
Contact: http://www.www.idgenterprise.com
Showing posts with label Cloud services. Show all posts
Showing posts with label Cloud services. Show all posts
Wednesday, June 22, 2011
Monday, June 20, 2011
Public Cloud Computing Services Expanding Rapidly
The rapid growth in the use of public cloud services indicates that cloud services are becoming more mainstream, causing growing pains for many companies, according to a survey. One in five executives says it's impossible to manage the disparate cloud services within their organization, while another 60 percent are worried about cloud sprawl -- the unmanaged adoption of public cloud services within an organization.
Despite these challenges, the survey shows cloud computing is maturing in the enterprise as CIOs increasingly look to cloud services to achieve business benefits, such as improved flexibility, reduced costs and helping to speed time to market.
One in five respondents says they have personally purchased a cloud service without the IT department's knowledge. While 60 percent of companies report they have policies in place that prohibit such actions, respondents say there are no real deterrents for purchasing cloud services by stealth. In fact, 29 percent report there are no ramifications whatsoever while another 48 percent say it is little more than a warning.
The survey also reveals a communication chasm. One-quarter of executives report they don't have open communication with the departments and business unit leaders that may be provisioning their own cloud services.
In terms of overall cloud computing adoption, the survey found 74 percent of companies are using some form of cloud services today -- a 25 percent growth in adoption since Avanade's September 2009 survey. Of those organizations that have yet to implement cloud, three-quarters say it's on the horizon.
With this growth in adoption also emerged three signs cloud computing is maturing:
1. Companies are increasing investments to secure, manage and support cloud.
2. There is a growing adoption and preference for private cloud.
3. Execs are starting to see cloud as a way to generate revenue.
Executives report they are investing in security solutions as well as people to ensure successful cloud deployments. In fact, 64 percent say they are investing in training for new and current employees to increase expertise in cloud technologies.
The survey also shows private cloud deployments are growing -- especially where critical, differentiating internal operations and customer services are at stake. Today, 43 percent of companies report they utilize private clouds, while an additional 34 percent say they will begin to do so in the next six to 12 months.
Further, companies are moving beyond internal employee-facing cloud services to use them with external customers. Many companies report they are now using cloud computing to deliver new products and services to customers, while more than one in five C-level executives believe cloud computing will increase revenues.
Comment from Tyson Hartman, global chief technology officer at Avanade: As is true with many forms of technology innovation, consumer technology often has a way of secretly creeping into the enterprise. Today, public cloud services are in a similar situation. The barrier to entry for many cloud capabilities continues to lower and our research shows some are so easy to adopt, they are outpacing the ability of IT leaders to manage them effectively. While policy is a place to start, managing cloud sprawl requires a real cooperation and dialogue between CIOs and their business counterparts. It's important that companies define a user-centric cloud strategy. With that strategy in hand, it's much easier to have an open dialogue in discovering what cloud services are already being used, where the gaps are and what new technologies the company should leverage to drive business value.
Comment from Larry Beck, senior director, cloud strategy at Avanade: Any decision to begin using cloud computing requires forethought, planning and preparation. Companies must identify their business objectives, determine which applications are prime targets for moving to the cloud, prove the business case and ensure the technology fits. The journey to cloud is an evolution that will occur over time. IT professionals should start with a clear plan, sound analysis, proven methodologies and practices, and a strong line of communication to the user community and corporate executives.
About the survey: The "Has Cloud Computing Matured?" survey was conducted by Kelton Research, an independent research firm, in March to April 2011, and surveyed 573 C-level executives, IT decision makers and business unit leaders at top companies located in 18 countries across North America, South America, Europe and Asia Pacific.
Contact: For additional information or to download a copy of the executive summary, click here.
Contact: http://www.avanade.com
Despite these challenges, the survey shows cloud computing is maturing in the enterprise as CIOs increasingly look to cloud services to achieve business benefits, such as improved flexibility, reduced costs and helping to speed time to market.
One in five respondents says they have personally purchased a cloud service without the IT department's knowledge. While 60 percent of companies report they have policies in place that prohibit such actions, respondents say there are no real deterrents for purchasing cloud services by stealth. In fact, 29 percent report there are no ramifications whatsoever while another 48 percent say it is little more than a warning.
The survey also reveals a communication chasm. One-quarter of executives report they don't have open communication with the departments and business unit leaders that may be provisioning their own cloud services.
In terms of overall cloud computing adoption, the survey found 74 percent of companies are using some form of cloud services today -- a 25 percent growth in adoption since Avanade's September 2009 survey. Of those organizations that have yet to implement cloud, three-quarters say it's on the horizon.
With this growth in adoption also emerged three signs cloud computing is maturing:
1. Companies are increasing investments to secure, manage and support cloud.
2. There is a growing adoption and preference for private cloud.
3. Execs are starting to see cloud as a way to generate revenue.
Executives report they are investing in security solutions as well as people to ensure successful cloud deployments. In fact, 64 percent say they are investing in training for new and current employees to increase expertise in cloud technologies.
The survey also shows private cloud deployments are growing -- especially where critical, differentiating internal operations and customer services are at stake. Today, 43 percent of companies report they utilize private clouds, while an additional 34 percent say they will begin to do so in the next six to 12 months.
Further, companies are moving beyond internal employee-facing cloud services to use them with external customers. Many companies report they are now using cloud computing to deliver new products and services to customers, while more than one in five C-level executives believe cloud computing will increase revenues.
Comment from Tyson Hartman, global chief technology officer at Avanade: As is true with many forms of technology innovation, consumer technology often has a way of secretly creeping into the enterprise. Today, public cloud services are in a similar situation. The barrier to entry for many cloud capabilities continues to lower and our research shows some are so easy to adopt, they are outpacing the ability of IT leaders to manage them effectively. While policy is a place to start, managing cloud sprawl requires a real cooperation and dialogue between CIOs and their business counterparts. It's important that companies define a user-centric cloud strategy. With that strategy in hand, it's much easier to have an open dialogue in discovering what cloud services are already being used, where the gaps are and what new technologies the company should leverage to drive business value.
Comment from Larry Beck, senior director, cloud strategy at Avanade: Any decision to begin using cloud computing requires forethought, planning and preparation. Companies must identify their business objectives, determine which applications are prime targets for moving to the cloud, prove the business case and ensure the technology fits. The journey to cloud is an evolution that will occur over time. IT professionals should start with a clear plan, sound analysis, proven methodologies and practices, and a strong line of communication to the user community and corporate executives.
About the survey: The "Has Cloud Computing Matured?" survey was conducted by Kelton Research, an independent research firm, in March to April 2011, and surveyed 573 C-level executives, IT decision makers and business unit leaders at top companies located in 18 countries across North America, South America, Europe and Asia Pacific.
Contact: For additional information or to download a copy of the executive summary, click here.
Contact: http://www.avanade.com
Tuesday, June 7, 2011
43 Percent of Enterprises Have Had Security Issues With Cloud Service Providers
Most enterprises are apprehensive about adopting cloud computing, mainly because of security issues with cloud service providers.
Nearly half (43 percent) of enterprise IT decision makers reported a security lapse or issue with their cloud provider within the last 12 months, according to a recent global cloud security survey.
The survey confirmed that, on the whole, enterprises are moving toward the cloud at a brisk pace and are initiating a giant multiplicative wave of new deployments. Although slightly over 10 percent of the respondents currently have cloud computing projects in production, close to half are either implementing or piloting new cloud applications.
Despite cloud computing's growing popularity in most countries, confusion is still at play among enterprises, some of whom don't recognize what cloud computing services are. When presented with a list of cloud computing services, 93 percent of the respondents said they are currently working with at least one of them. And yet, 7 percent of the same respondents said that their company has no plans to deploy any cloud computing service - a contradiction.
While security is still the major hindrance toward cloud adoption, more enterprises are now perceiving performance and availability of cloud services to be of near-equal consideration. According to the survey, the top barriers respondents see in adopting cloud computing services are: Concerns over security of data or cloud infrastructure (50 percent) and performance and availability of cloud service (48 percent).
When it comes to safeguarding sensitive data stored in the cloud, enterprises turn to encryption. 85 percent of respondents(2) said they encrypt data stored in the cloud. And before taking the plunge into cloud adoption, more than half of survey respondents said they would be more likely to consider a cloud provider if encrypted data storage were included in the offering. Nevertheless, most commonly used encryption key management techniques used in the cloud today are vulnerable.
Comment from Dave Asprey, vice president of cloud security, Trend Micro: Based on our data, we see about 5 times more cloud applications coming online in the next few years, yet 43 percent of existing cloud users had a security incident last year. On top of that, some respondents didn't even know they were using the cloud, much less securing it. Given that many cloud service providers do not adequately add IT resources to security, the reality is that securing your cloud environment is not an option, it's a necessity.In the past, security concerns were the primary inhibitors to cloud adoption. Now, performance and availability have equal influence over IT decision makers. As we witnessed in recent data breach incidents, everything is linked - poor security causes downtime, as well as bad performance.
About the survey: The global survey was conducted by TrendMicro among 1,200 U.S., UK, Germany, India, Canada and Japan IT decision makers (200 respondents from each of the six countries). These professionals, from enterprises with over 500 employees, make purchase decisions for cloud computing services, server virtualization or Virtual Desktop infrastructure (VDI) solutions.
Contact: http://www.trendmicro.com/cloud
Nearly half (43 percent) of enterprise IT decision makers reported a security lapse or issue with their cloud provider within the last 12 months, according to a recent global cloud security survey.
The survey confirmed that, on the whole, enterprises are moving toward the cloud at a brisk pace and are initiating a giant multiplicative wave of new deployments. Although slightly over 10 percent of the respondents currently have cloud computing projects in production, close to half are either implementing or piloting new cloud applications.
Despite cloud computing's growing popularity in most countries, confusion is still at play among enterprises, some of whom don't recognize what cloud computing services are. When presented with a list of cloud computing services, 93 percent of the respondents said they are currently working with at least one of them. And yet, 7 percent of the same respondents said that their company has no plans to deploy any cloud computing service - a contradiction.
While security is still the major hindrance toward cloud adoption, more enterprises are now perceiving performance and availability of cloud services to be of near-equal consideration. According to the survey, the top barriers respondents see in adopting cloud computing services are: Concerns over security of data or cloud infrastructure (50 percent) and performance and availability of cloud service (48 percent).
When it comes to safeguarding sensitive data stored in the cloud, enterprises turn to encryption. 85 percent of respondents(2) said they encrypt data stored in the cloud. And before taking the plunge into cloud adoption, more than half of survey respondents said they would be more likely to consider a cloud provider if encrypted data storage were included in the offering. Nevertheless, most commonly used encryption key management techniques used in the cloud today are vulnerable.
Comment from Dave Asprey, vice president of cloud security, Trend Micro: Based on our data, we see about 5 times more cloud applications coming online in the next few years, yet 43 percent of existing cloud users had a security incident last year. On top of that, some respondents didn't even know they were using the cloud, much less securing it. Given that many cloud service providers do not adequately add IT resources to security, the reality is that securing your cloud environment is not an option, it's a necessity.In the past, security concerns were the primary inhibitors to cloud adoption. Now, performance and availability have equal influence over IT decision makers. As we witnessed in recent data breach incidents, everything is linked - poor security causes downtime, as well as bad performance.
About the survey: The global survey was conducted by TrendMicro among 1,200 U.S., UK, Germany, India, Canada and Japan IT decision makers (200 respondents from each of the six countries). These professionals, from enterprises with over 500 employees, make purchase decisions for cloud computing services, server virtualization or Virtual Desktop infrastructure (VDI) solutions.
Contact: http://www.trendmicro.com/cloud
Tuesday, May 24, 2011
Deployment Of Cloud Services Soars Among Multinationals
Adoption of cloud services is picking up pace among large organizations, with telecom providers well positioned to take advantage, according to a survey. Cloud services adoption is up 61 percent from April 2010 with 45 percent of multinational companies (MNCs) already using cloud sourcing for at least some elements of key IT services.
Asia-Pacific MNCs are reporting the greatest cloud interest, with 63 percent uptake across all cloud services categories; networking, communications, applications, corporate IT systems, as well as data management, security and backup.
Around the globe, enterprises have already moved significant resources to the cloud and are ready to move more application services. The dominant areas of cloud services uptake are in data backup and storage, at 51 percent of respondents, with an additional 33 percent reporting their intention to procure cloud data backup and storage services in the next 24 months. Cloud uptake is permeating all sectors. Finance and insurance multinationals have adopted cloud services for some elements of corporate IT systems (56 percent), whereas manufacturing is embracing cloud components for networking and data management (63 percent and 59 percent, respectively).
Sectors are also placing different applications in cloud environments. Professional services single out Customer Relationship Management (CRM) (50 percent) while finance and insurance places strong emphasis on document management (50 percent). Manufacturing places most value on messaging (41 percent) and CRM (41 percent).
Seventy-five percent of MNCs rate scalability of capacity and matching capacity to fluctuating demand as the main benefits from the use of cloud services, with increased speed of provisioning coming in a close third (72 percent). Cost transparency is regarded as least important with only 24 percent citing this as a major benefit.
Telecommunication providers are emerging as trusted partners and credible suppliers for cloud services, increasing from 37 percent in 2010 to 49 percent in 2011.
Comment from Evan Kirchheimer, Practice Leader, Enterprise Services, at Ovum: We believe the majority of MNCs are currently between "early" and "adolescent" adoption phases of cloud-based services, with broader and deeper adoption being contemplated. Greater adoption is dependent on the resolution of security, governance and reliability and once these concerns are addressed through standardised, tested offers from service providers, more large enterprises will feel comfortable positioning cloud as a preferred procurement option.
About the study: Ovum analysts interviewed CIOs, telecoms managers and/or IT directors with global responsibility for communications services (fixed, mobile, voice, data, IT) at 102 multinational corporations during April and May 2011.
Contact: http://www.cw.com
Asia-Pacific MNCs are reporting the greatest cloud interest, with 63 percent uptake across all cloud services categories; networking, communications, applications, corporate IT systems, as well as data management, security and backup.
Around the globe, enterprises have already moved significant resources to the cloud and are ready to move more application services. The dominant areas of cloud services uptake are in data backup and storage, at 51 percent of respondents, with an additional 33 percent reporting their intention to procure cloud data backup and storage services in the next 24 months. Cloud uptake is permeating all sectors. Finance and insurance multinationals have adopted cloud services for some elements of corporate IT systems (56 percent), whereas manufacturing is embracing cloud components for networking and data management (63 percent and 59 percent, respectively).
Sectors are also placing different applications in cloud environments. Professional services single out Customer Relationship Management (CRM) (50 percent) while finance and insurance places strong emphasis on document management (50 percent). Manufacturing places most value on messaging (41 percent) and CRM (41 percent).
Seventy-five percent of MNCs rate scalability of capacity and matching capacity to fluctuating demand as the main benefits from the use of cloud services, with increased speed of provisioning coming in a close third (72 percent). Cost transparency is regarded as least important with only 24 percent citing this as a major benefit.
Telecommunication providers are emerging as trusted partners and credible suppliers for cloud services, increasing from 37 percent in 2010 to 49 percent in 2011.
Comment from Evan Kirchheimer, Practice Leader, Enterprise Services, at Ovum: We believe the majority of MNCs are currently between "early" and "adolescent" adoption phases of cloud-based services, with broader and deeper adoption being contemplated. Greater adoption is dependent on the resolution of security, governance and reliability and once these concerns are addressed through standardised, tested offers from service providers, more large enterprises will feel comfortable positioning cloud as a preferred procurement option.
About the study: Ovum analysts interviewed CIOs, telecoms managers and/or IT directors with global responsibility for communications services (fixed, mobile, voice, data, IT) at 102 multinational corporations during April and May 2011.
Contact: http://www.cw.com
U.S. SMBs Show Strong Preference for Cloud "Bundling"
Small and medium business (SMB) technology buyers in the U.S. are increasingly allocating a larger proportion of their spending to cloud-based services. According to a recent survey, that proportion was 10 percent in 2010, but is forecasted to rise to more than 15 percent in 2015. As this migration into the cloud accelerates, SMB buyers are showing a strong inclination to purchase bundled cloud offerings as opposed to a stand-alone application.
For example, AMI research shows that 38 percent of U.S. SMBs have indicated a strong preference for obtaining software as a service (SaaS) as part of a package/bundle, versus only 11 percent who are interested in a single service. One third of U.S. SMBs are interested in bundling multiple hosted infrastructure and remotely managed services offerings, versus 9 percent of firms who only want a single service.
Comment from Donald Best of AMI: A significant segment of U.S. SMBs prefer to deploy multiple cloud services in order to achieve flexibility, ease of IT management, and lower CAPEX. This is also driving an evolution in the channel ecosystem, as communications service providers and hosts increasingly offer bundles including productivity suites and other cloud-based applications.
About the study: AMI's soon to be published 2011 U.S. SMB Cloud Playbook -- Strategic and Tactical GTM Guide details preferences for SaaS and hosted infrastructure bundling, as well as hosted unified communications and productivity/collaboration suite bundles.
Contact: http://www.ami-partners.com
For example, AMI research shows that 38 percent of U.S. SMBs have indicated a strong preference for obtaining software as a service (SaaS) as part of a package/bundle, versus only 11 percent who are interested in a single service. One third of U.S. SMBs are interested in bundling multiple hosted infrastructure and remotely managed services offerings, versus 9 percent of firms who only want a single service.
Comment from Donald Best of AMI: A significant segment of U.S. SMBs prefer to deploy multiple cloud services in order to achieve flexibility, ease of IT management, and lower CAPEX. This is also driving an evolution in the channel ecosystem, as communications service providers and hosts increasingly offer bundles including productivity suites and other cloud-based applications.
About the study: AMI's soon to be published 2011 U.S. SMB Cloud Playbook -- Strategic and Tactical GTM Guide details preferences for SaaS and hosted infrastructure bundling, as well as hosted unified communications and productivity/collaboration suite bundles.
Contact: http://www.ami-partners.com
Monday, May 16, 2011
Improved Service Availability and Scalability Drive Cloud Adoption
Migration to cloud computing services has increased by 20 percent compared to results from 2010, according to a study. After implementing cloud services, respondents reported the greatest gains in increased application availability and scalability.
Key findings:
-- Cloud Computing on the Rise: Sixty-one percent of respondents have cloud computing services running on their network in 2011. Of these respondents, half have implemented some form of software-as-a-service (SaaS) like Salesforce.com or Google Apps. This was an increase of 10 percent when compared to SaaS adoption in 2010. Fifty percent have deployed private clouds. The 21 percent rise in adoption of private clouds was the largest gain made by a cloud service over last year. A smaller number (21 percent) rely on some form of platform as a service (PaaS) such as Microsoft Azure and Salesforce Force.
-- Cloud-Based Applications Climbing: Respondents indicated that percentage of applications running in the cloud will climb to 38 percent from 21 percent by mid-2012.
-- Improved Availability and User Experience: After deploying cloud services, 61 percent report improved application availability, which compared to only 4 percent reporting availability decreasing. Similarly, 52 percent indicated end-user experience improved compared to only 4 percent that said user experience worsened.
-- Increased Scalability: Over half of respondents reported their ability to scale applications to meet the demands of their organization had improved with cloud computing.
-- Troubleshooting Worsened: Sixty percent of respondents indicated that their ability to troubleshoot problems worsened or remained the same after migrating to the cloud.
-- Cloudy Monitoring: Fifty-two percent of respondents stated that their ability to monitor cloud performance worsened or remained the same after deploying cloud services.
Comment from said Brad Reinboldt, senior product manager of Network Instruments: Although cloud adopters have reported improvements in application availability and cost savings. These improvements aren't sustainable in the long run without appropriate monitoring tools. When trouble does hit, it falls in the lap of the organization's network team to prove that the problem is occurring on the cloud provider's side. Without proof, organizations will waste time finger pointing, jeopardizing any cost savings or efficiency improvements.
About the survey: Network Instruments conducted the onsite survey of 94 network engineers, IT managers and executives attending Interop.
Contact: http://www.networkinstruments.com
Key findings:
-- Cloud Computing on the Rise: Sixty-one percent of respondents have cloud computing services running on their network in 2011. Of these respondents, half have implemented some form of software-as-a-service (SaaS) like Salesforce.com or Google Apps. This was an increase of 10 percent when compared to SaaS adoption in 2010. Fifty percent have deployed private clouds. The 21 percent rise in adoption of private clouds was the largest gain made by a cloud service over last year. A smaller number (21 percent) rely on some form of platform as a service (PaaS) such as Microsoft Azure and Salesforce Force.
-- Cloud-Based Applications Climbing: Respondents indicated that percentage of applications running in the cloud will climb to 38 percent from 21 percent by mid-2012.
-- Improved Availability and User Experience: After deploying cloud services, 61 percent report improved application availability, which compared to only 4 percent reporting availability decreasing. Similarly, 52 percent indicated end-user experience improved compared to only 4 percent that said user experience worsened.
-- Increased Scalability: Over half of respondents reported their ability to scale applications to meet the demands of their organization had improved with cloud computing.
-- Troubleshooting Worsened: Sixty percent of respondents indicated that their ability to troubleshoot problems worsened or remained the same after migrating to the cloud.
-- Cloudy Monitoring: Fifty-two percent of respondents stated that their ability to monitor cloud performance worsened or remained the same after deploying cloud services.
Comment from said Brad Reinboldt, senior product manager of Network Instruments: Although cloud adopters have reported improvements in application availability and cost savings. These improvements aren't sustainable in the long run without appropriate monitoring tools. When trouble does hit, it falls in the lap of the organization's network team to prove that the problem is occurring on the cloud provider's side. Without proof, organizations will waste time finger pointing, jeopardizing any cost savings or efficiency improvements.
About the survey: Network Instruments conducted the onsite survey of 94 network engineers, IT managers and executives attending Interop.
Contact: http://www.networkinstruments.com
Monday, April 11, 2011
SaaS Revenue To Grow Significantly Through 2015
Worldwide SaaS revenue will grow dramatically over the next few years, with a compound annual growth rate (CAGR) of 23 percent from 2010 to 2015, according to a market report. In addition, the overall managed security services market, including CPE, SaaS, and cloud services, will reach just under $17 billion by 2015.
Other key findings:
-- Together, SaaS and cloud-based security services are expected to make up close to half of the overall managed security services market opportunity by 2015
-- While managed security services are popular in North America and EMEA, there is opportunity around the globe, as cloud-based services, and SaaS in particular, are location independent
-- Asia Pacific and Central and Latin America (CALA) are expected to account for a growing portion of the managed security services market in coming years
Comment from Jeff Wilson, principal analyst for security at Infonetics Research: 2010 was a good year for managed security services, which, for the most part, met our expectations for buyer uptake and provider innovations. Revenue grew 12 percent in 2010 and will grow 62 percent over the next 5 years, driven by cloud-based services and SaaS. There was no decrease in fundamental demand for managed security in 2010, just a sluggish global economy.
About the report: The Infonetics Research report Managed Security Services and SaaS with Service Provider Scorecards report analyzes and forecasts the market for SaaS, CPE-, and cloud-based security services managed by service providers for small, medium, and large businesses, including managed firewalls, content security, intrusion detection and prevention solutions (IDS/IPS), and other security services.
Contact: http://www.infonetics.com
Other key findings:
-- Together, SaaS and cloud-based security services are expected to make up close to half of the overall managed security services market opportunity by 2015
-- While managed security services are popular in North America and EMEA, there is opportunity around the globe, as cloud-based services, and SaaS in particular, are location independent
-- Asia Pacific and Central and Latin America (CALA) are expected to account for a growing portion of the managed security services market in coming years
Comment from Jeff Wilson, principal analyst for security at Infonetics Research: 2010 was a good year for managed security services, which, for the most part, met our expectations for buyer uptake and provider innovations. Revenue grew 12 percent in 2010 and will grow 62 percent over the next 5 years, driven by cloud-based services and SaaS. There was no decrease in fundamental demand for managed security in 2010, just a sluggish global economy.
About the report: The Infonetics Research report Managed Security Services and SaaS with Service Provider Scorecards report analyzes and forecasts the market for SaaS, CPE-, and cloud-based security services managed by service providers for small, medium, and large businesses, including managed firewalls, content security, intrusion detection and prevention solutions (IDS/IPS), and other security services.
Contact: http://www.infonetics.com
Tuesday, February 15, 2011
Number Of Companies Using Cloud Services Rises 67 Percent
Companies can't resist the lure of cloud services: the number of companies using cloud services increased from 18 percent in February 2009 to 30 percent in October 2010, a leap of 67 percent, according to a survey.
But in their rush to save time and money, many are neglecting such bread-and-butter fundamentals as integration, security, connectivity, monitoring, continuity planning and long-term staffing. This shortsightedness makes them vulnerable to potential failure.
Other findings:
-- Another 13 percent of respondents say they plan to use cloud services within 12 months.
-- Only 29 percent of firms using or planning to use the cloud have evaluated its impact on their existing architectures.
-- Just 20 percent of those polled say they monitor cloud applications and throughput.
-- 40 percent say they don't have any monitoring program in place for cloud services.
Comment from Lorna Garey, content director of InformationWeek Analytics: The up-front cost savings and speed to market you get from the cloud make it extremely tempting. And that's great - you should take advantage of it. But first you have to put some processes in place so cloud services - and responsibility for those services - are integrated into your existing set-up. Cloud applications must be monitored and measured just like any other application.
About the survey: The survey was conducted by InformationWeek Analytics, which provides peer-based IT research and analysis. The report, "State of Cloud 2011: Time for Process Maturation," includes analysis of cloud computing survey results and includes an ROI analysis and customizable worksheet to calculate costs of internal vs. cloud deployments. More than 600 business technology decision makers responded to the survey.
Contact: http://www.informationweek.com/
Contact: http://www.techweb.ubm.com
But in their rush to save time and money, many are neglecting such bread-and-butter fundamentals as integration, security, connectivity, monitoring, continuity planning and long-term staffing. This shortsightedness makes them vulnerable to potential failure.
Other findings:
-- Another 13 percent of respondents say they plan to use cloud services within 12 months.
-- Only 29 percent of firms using or planning to use the cloud have evaluated its impact on their existing architectures.
-- Just 20 percent of those polled say they monitor cloud applications and throughput.
-- 40 percent say they don't have any monitoring program in place for cloud services.
Comment from Lorna Garey, content director of InformationWeek Analytics: The up-front cost savings and speed to market you get from the cloud make it extremely tempting. And that's great - you should take advantage of it. But first you have to put some processes in place so cloud services - and responsibility for those services - are integrated into your existing set-up. Cloud applications must be monitored and measured just like any other application.
About the survey: The survey was conducted by InformationWeek Analytics, which provides peer-based IT research and analysis. The report, "State of Cloud 2011: Time for Process Maturation," includes analysis of cloud computing survey results and includes an ROI analysis and customizable worksheet to calculate costs of internal vs. cloud deployments. More than 600 business technology decision makers responded to the survey.
Contact: http://www.informationweek.com/
Contact: http://www.techweb.ubm.com
Friday, November 5, 2010
Cloud Computing Adoption Presents Significant Security Risks
Though organizations are increasing spending to protect data, many still feel pressured to reduce IT expenditures in other areas, leading them to look externally for efficient solutions, according to a new survey.
Despite an unproven track record, 45 percent of organizations are currently using, evaluating or planning to use cloud computing services within the next 12 months. The risks associated with cloud computing include data leakage, with 52 percent identifying it as the largest associated risk, followed by 39 percent who cite the lost visibility of company data as an increased risk of cloud-based solutions.
However, most respondents (85 percent) indicate that external certification of cloud service providers would help to evaluate security controls and increase trust.
Evidence also suggests that few organizations have fully assessed the risks associated with social networking. Just one-third report that social media presents a considerable information security challenge and only 10 percent say examining new and emerging IT trends is a very important information security function.
The focus in information security is shifting from a technology-only approach to a technology and people approach, as information security becomes an expanded function of which all employees are aware of and have a responsibility to adhere to. Without clearly defined and communicated security policies on the use of new technology, organizations' exposure to risk will increase.
Comment from Jose Granado, Ernst & Young LLP's Americas practice leader for Information Security Services: The combination of more mobility, increased social access to information and outsourcing to the cloud requires a change in traditional information security paradigms. The 'outsiders are now the insiders,' meaning people and organizations outside the borders of the traditional corporate environment play a role in helping to achieve information security objectives, but can also pose a risk to protecting your information. A comprehensive IT risk management program must focus on people, processes and technology to address information throughout its life cycle, wherever it resides.
About the survey: Ernst & Young's 2010 Global Information Security Survey was conducted between June and August 2010. Nearly 1,600 organizations in 56 countries and across all major industries participated.
Contact: The full report is available here.
Despite an unproven track record, 45 percent of organizations are currently using, evaluating or planning to use cloud computing services within the next 12 months. The risks associated with cloud computing include data leakage, with 52 percent identifying it as the largest associated risk, followed by 39 percent who cite the lost visibility of company data as an increased risk of cloud-based solutions.
However, most respondents (85 percent) indicate that external certification of cloud service providers would help to evaluate security controls and increase trust.
Evidence also suggests that few organizations have fully assessed the risks associated with social networking. Just one-third report that social media presents a considerable information security challenge and only 10 percent say examining new and emerging IT trends is a very important information security function.
The focus in information security is shifting from a technology-only approach to a technology and people approach, as information security becomes an expanded function of which all employees are aware of and have a responsibility to adhere to. Without clearly defined and communicated security policies on the use of new technology, organizations' exposure to risk will increase.
Comment from Jose Granado, Ernst & Young LLP's Americas practice leader for Information Security Services: The combination of more mobility, increased social access to information and outsourcing to the cloud requires a change in traditional information security paradigms. The 'outsiders are now the insiders,' meaning people and organizations outside the borders of the traditional corporate environment play a role in helping to achieve information security objectives, but can also pose a risk to protecting your information. A comprehensive IT risk management program must focus on people, processes and technology to address information throughout its life cycle, wherever it resides.
About the survey: Ernst & Young's 2010 Global Information Security Survey was conducted between June and August 2010. Nearly 1,600 organizations in 56 countries and across all major industries participated.
Contact: The full report is available here.
Thursday, October 28, 2010
Executives See Organizations Moving To Cloud-Based Services Within Two Years
Business and government executives overwhelmingly expect their organizations to use Cloud computing within the next two years, according to a survey by KPMG LLP.
Ninety percent of the executives and 68 percent of the middle managers said they are using or plan to use Cloud-based services within two years.
Eighty-two percent of all the respondents, which consisted of executives, middle managers and staff, said that migration to the Cloud raises a broad set of issues around business transformation that should be understood and managed across the entire organization.
When asked to rate the importance of four factors driving a company or organization to pursue Cloud-based activities, 84 percent of those surveyed rated "technical" (ie., scalability, security) as important or extremely important, while 78 percent viewed "economics" (cost savings, shifting capital expenditures to operational expenditures) as important or extremely important, and 76 percent placed "functional" (ie., capabilities, accessibility) in that category, with 66 percent rating "strategic" factors (ie., business process transformation, speed to market) as important or extremely important.
In addition, 79 percent of executives, middle managers and staff said that Cloud is a viable option for enterprises to be more agile and cost competitive and 74 percent said that organizations adopting Cloud can experience long-term competitive advantages.
Comment from Steve Hill, KPMG's National Innovation Leader: The survey results reflect wide acceptance of Cloud-based services among executives, who are increasingly recognizing the Cloud's strategic, business value. Those surveyed also said that experimentation will be required to fully understand the value of Cloud-based operations, and this approach, they noted, will bring challenges that need to be addressed. Those surveyed clearly recognize that in the migration to Cloud computing, strategic business considerations today decisively trump yesterday's technology discussion. Cloud-enabled environments, particularly community models, may facilitate paradigm changes in business models and in the core drivers of competitive differentiation.
About the survey: KPMG's survey sample comprised 174 executives, middle managers and staff from business, government and academia who completed surveys onsite at the Oracle OpenWorld 2010 trade show in September.
Contact: http://www.us.kpmg.com
Ninety percent of the executives and 68 percent of the middle managers said they are using or plan to use Cloud-based services within two years.
Eighty-two percent of all the respondents, which consisted of executives, middle managers and staff, said that migration to the Cloud raises a broad set of issues around business transformation that should be understood and managed across the entire organization.
When asked to rate the importance of four factors driving a company or organization to pursue Cloud-based activities, 84 percent of those surveyed rated "technical" (ie., scalability, security) as important or extremely important, while 78 percent viewed "economics" (cost savings, shifting capital expenditures to operational expenditures) as important or extremely important, and 76 percent placed "functional" (ie., capabilities, accessibility) in that category, with 66 percent rating "strategic" factors (ie., business process transformation, speed to market) as important or extremely important.
In addition, 79 percent of executives, middle managers and staff said that Cloud is a viable option for enterprises to be more agile and cost competitive and 74 percent said that organizations adopting Cloud can experience long-term competitive advantages.
Comment from Steve Hill, KPMG's National Innovation Leader: The survey results reflect wide acceptance of Cloud-based services among executives, who are increasingly recognizing the Cloud's strategic, business value. Those surveyed also said that experimentation will be required to fully understand the value of Cloud-based operations, and this approach, they noted, will bring challenges that need to be addressed. Those surveyed clearly recognize that in the migration to Cloud computing, strategic business considerations today decisively trump yesterday's technology discussion. Cloud-enabled environments, particularly community models, may facilitate paradigm changes in business models and in the core drivers of competitive differentiation.
About the survey: KPMG's survey sample comprised 174 executives, middle managers and staff from business, government and academia who completed surveys onsite at the Oracle OpenWorld 2010 trade show in September.
Contact: http://www.us.kpmg.com
Saturday, October 16, 2010
Use Of Public Cloud Business Continuity Services Still In Nascent Stages
The need for business continuity will continue to grow in importance among organizations of all types and sizes. However, to date, this has not translated to an early opportunity for cloud-based business continuity solutions, a new study has found. The opportunity for cloud-based storage continues to evolve as users and service providers explore the possibilities for different storage services.
Knowledge of public cloud storage offerings is greatest for backup and primary file storage. Business continuity services are the least well known, and this is due to the lack of broad availability of this type of capability. Among those surveyed, only 37.3 percent were able to articulate a position for their firm on their intentions on business continuity services. Conversely, just under three-fourths (71.3 percent) were able to articulate a position on public cloud backup.
Comment from Laura DuBois, program vice president, Storage Software at IDC: Discrete business continuity services delivered via a public cloud remain an untapped opportunity for suppliers. There are very few offerings that enable an on-premise application or system to failover to shared infrastructure in a public cloud. However, what firms increasingly require is continuity of business. They need this continuity of IT processing without bearing the cost of standing up additional cold or standby infrastructure and initiating a restore process. As public cloud storage offerings continue to take hold, we expect to see suppliers start to capitalize on this opportunity by leveraging virtual infrastructure.
Comment from Brad Nisbet, program manager, Storage and Data Management Services at IDC: Given the limited number of providers offering cloud-based storage continuity services, there is ample room for early success. Addressing business continuity is a natural extension of existing cloud-based services such as backup and archiving, and will prove to be an early differentiator among service providers, especially among those that are addressing the needs of SMBs -- a community eager to find practical, offsite solutions to address disaster recovery scenarios and enable business continuity.
Comment from Senior Vice President and Chief Analyst Frank Gens: Overall, cloud computing is one of the faster growing areas of IT spending. With 27 percent growth, we are "crossing the chasm" with public IT cloud services, moving from just early adopters to early mainstream organizations. This makes 2010 and 2011 a critical time for CIOs and IT vendors to define their strategies and stake out early advantages for their organizations.
About the study: The IDC study, Public Cloud Business Continuity Services Remain an Underserved Opportunity (Doc #224792), is based on results drawn from a Web survey completed in 2010 by 300 qualified IT and business professionals. To participate in the Storage in the Cloud Survey, respondents had to understand cloud storage policies, process, and strategy for their firm. The survey quantified midsize (100--999 employees), large (1,000--9,999 employees), and very large (10,000+ employees) companies' current use of, future plans for, or expansion of different public cloud storage offerings. Further examination of the adoption of cloud storage for particular use cases and with specific applications due to specific drivers was conducted. Budgets, workloads, capacity, supplier preference, and key requirements were uncovered.
Contact: http://idc-insights-community.com
Knowledge of public cloud storage offerings is greatest for backup and primary file storage. Business continuity services are the least well known, and this is due to the lack of broad availability of this type of capability. Among those surveyed, only 37.3 percent were able to articulate a position for their firm on their intentions on business continuity services. Conversely, just under three-fourths (71.3 percent) were able to articulate a position on public cloud backup.
Comment from Laura DuBois, program vice president, Storage Software at IDC: Discrete business continuity services delivered via a public cloud remain an untapped opportunity for suppliers. There are very few offerings that enable an on-premise application or system to failover to shared infrastructure in a public cloud. However, what firms increasingly require is continuity of business. They need this continuity of IT processing without bearing the cost of standing up additional cold or standby infrastructure and initiating a restore process. As public cloud storage offerings continue to take hold, we expect to see suppliers start to capitalize on this opportunity by leveraging virtual infrastructure.
Comment from Brad Nisbet, program manager, Storage and Data Management Services at IDC: Given the limited number of providers offering cloud-based storage continuity services, there is ample room for early success. Addressing business continuity is a natural extension of existing cloud-based services such as backup and archiving, and will prove to be an early differentiator among service providers, especially among those that are addressing the needs of SMBs -- a community eager to find practical, offsite solutions to address disaster recovery scenarios and enable business continuity.
Comment from Senior Vice President and Chief Analyst Frank Gens: Overall, cloud computing is one of the faster growing areas of IT spending. With 27 percent growth, we are "crossing the chasm" with public IT cloud services, moving from just early adopters to early mainstream organizations. This makes 2010 and 2011 a critical time for CIOs and IT vendors to define their strategies and stake out early advantages for their organizations.
About the study: The IDC study, Public Cloud Business Continuity Services Remain an Underserved Opportunity (Doc #224792), is based on results drawn from a Web survey completed in 2010 by 300 qualified IT and business professionals. To participate in the Storage in the Cloud Survey, respondents had to understand cloud storage policies, process, and strategy for their firm. The survey quantified midsize (100--999 employees), large (1,000--9,999 employees), and very large (10,000+ employees) companies' current use of, future plans for, or expansion of different public cloud storage offerings. Further examination of the adoption of cloud storage for particular use cases and with specific applications due to specific drivers was conducted. Budgets, workloads, capacity, supplier preference, and key requirements were uncovered.
Contact: http://idc-insights-community.com
Friday, October 8, 2010
Channel Partners Face Challenges In Current Model Of Cloud Services
The overall number of channel partners (VARs, SIs, ISVs, etc) offering cloud services to U.S. small and medium businesses (SMBs) has grown enormously since 2008, fueled in part by the prevailing economic conditions and new cloud solutions and technologies. With strong adoption by these SMBs, Remote Managed IT Services (RMITS) are growing rapidly and becoming more structured in the U.S. There are more solutions available for U.S. SMBs and more methods for delivering these solutions in an efficient manner for channel partners, new research from AMI-Partners has found.
Overall current conditions are very promising for partners to embrace the cloud. However, the channel partners are hampered in their transition to cloud-based services by their small scale and accompanying legacy cost structures and business models.
Channel partner challenges can be broadly classified into the following three key areas:
-- Standardizing Remote Managed Offerings: Some partners don't currently have a standardized set of RMITS offerings. Instead, they improvise on an as-needed basis, so customers are not familiar with available options.
-- Standardizing SLAs: Some partners do not have Service Level Agreements (SLAs) although 55% feel that it is important to offer them. Those that do don't always provide clear terms about the types and responsiveness of services provided. Often partners themselves find it difficult to track their own employee time spent on tickets/customer problems. But some have started using PSA (Professional Services Automation) software to deal with this.
-- Standardizing Pricing: Just like their service offerings, many local partners lack standardized and transparent pricing required for a broader acceptance of RMITS by SMB customers. This makes it difficult for the customers to understand how RMITS can help them control and manage IT costs.
As a result, over the last couple of years, many pure-play Managed Service Providers (MSPs) have entered the market to provide remote management and other cloud services to U.S. SMBs. Unencumbered by legacy issues, they have developed efficient delivery and pricing mechanisms that provide strong value to these SMBs. The current environment also provides a strong opportunity for large vendors to bridge the gaps in channel partner services by standardizing the offerings, SLAs & pricing, and thereby enabling broader adoption of cloud-based services by US SMBs.
About the study: AMI's 2010 US SMB Channel Partner Report.
Contact: http://www.ami-partners.com
Overall current conditions are very promising for partners to embrace the cloud. However, the channel partners are hampered in their transition to cloud-based services by their small scale and accompanying legacy cost structures and business models.
Channel partner challenges can be broadly classified into the following three key areas:
-- Standardizing Remote Managed Offerings: Some partners don't currently have a standardized set of RMITS offerings. Instead, they improvise on an as-needed basis, so customers are not familiar with available options.
-- Standardizing SLAs: Some partners do not have Service Level Agreements (SLAs) although 55% feel that it is important to offer them. Those that do don't always provide clear terms about the types and responsiveness of services provided. Often partners themselves find it difficult to track their own employee time spent on tickets/customer problems. But some have started using PSA (Professional Services Automation) software to deal with this.
-- Standardizing Pricing: Just like their service offerings, many local partners lack standardized and transparent pricing required for a broader acceptance of RMITS by SMB customers. This makes it difficult for the customers to understand how RMITS can help them control and manage IT costs.
As a result, over the last couple of years, many pure-play Managed Service Providers (MSPs) have entered the market to provide remote management and other cloud services to U.S. SMBs. Unencumbered by legacy issues, they have developed efficient delivery and pricing mechanisms that provide strong value to these SMBs. The current environment also provides a strong opportunity for large vendors to bridge the gaps in channel partner services by standardizing the offerings, SLAs & pricing, and thereby enabling broader adoption of cloud-based services by US SMBs.
About the study: AMI's 2010 US SMB Channel Partner Report.
Contact: http://www.ami-partners.com
Tuesday, October 5, 2010
Cloud Computing Adoption Among SMBs Is Following Outsourcing Trends
While use of Cloud services varies by size of SMB, the pattern of adoption appears to follow a previously observed pattern related to adoption of outsourcing, a survey has found. In both cases, rather than seeing greater adoption with business size, adoption rises and falls as businesses first use Cloud services then as they grow they attempt to bring solutions in-house and use Cloud services again in order to support growth.
The inflection point for adoption occurs at 20 employees. Small businesses with 20-99 employees typically expand their use of Cloud services and appear to maintain that level of usage until they hit 250 employees. At this level, SMBs begin to bring services back in-house as IT investments rise. Adoption of Cloud services rises sharply again as SMBs exceed 500 employees.
When looked at as a single group, SMBs are largely adopting some core infrastructure applications and applications specific to their industry. Security and additional storage appear to be the most popular applications along with industry specific applications and hosted email. The picture is substantially different for MBs (100-999 employees) and SBs (1-99 employees) taken separately. Mid-market businesses display a greater willingness to adopt hosted infrastructure and platform solutions than small businesses. Very small businesses' (<10 employees) use of Cloud services is characterized largely by Industry specific applications and Cloud storage services.
Conclusion: Mid market firms are a better target for hosted platforms and infrastructure-as-a-service solutions.
The US SMB Cloud Computing report from Techaisle is now available for purchase. Surveys were also conducted in the UK and Germany.
Contact: http://www.techaisle.com
The inflection point for adoption occurs at 20 employees. Small businesses with 20-99 employees typically expand their use of Cloud services and appear to maintain that level of usage until they hit 250 employees. At this level, SMBs begin to bring services back in-house as IT investments rise. Adoption of Cloud services rises sharply again as SMBs exceed 500 employees.
When looked at as a single group, SMBs are largely adopting some core infrastructure applications and applications specific to their industry. Security and additional storage appear to be the most popular applications along with industry specific applications and hosted email. The picture is substantially different for MBs (100-999 employees) and SBs (1-99 employees) taken separately. Mid-market businesses display a greater willingness to adopt hosted infrastructure and platform solutions than small businesses. Very small businesses' (<10 employees) use of Cloud services is characterized largely by Industry specific applications and Cloud storage services.
Conclusion: Mid market firms are a better target for hosted platforms and infrastructure-as-a-service solutions.
The US SMB Cloud Computing report from Techaisle is now available for purchase. Surveys were also conducted in the UK and Germany.
Contact: http://www.techaisle.com
Friday, October 1, 2010
Use Of Cloud Services Begins To Impact SMB ICT Shipments
U.S. small and medium-size businesses (SMBs) are rapidly increasing their use of cloud services, which is beginning to reduce their need for on-premise information and communications technology (ICT) equipment and is also allowing them more flexibility in the types of mobile devices they use. This, in turn, is beginning to affect the demand patterns for on-premise ICT hardware like servers, storage & networking as well client devices like notebooks, smartphones, netbooks and tablets, according to AMI research on the adoption of cloud services by SMBs in a dozen countries.
SMBs' cloud adoption patterns vary greatly in terms of types of applications and services reflecting their varying levels of comfort with the new paradigm.
Broadly, AMI's analysis shows demand shifts in three areas. While the overall SMB server shipments are still growing, these are driven significantly by first-time server buyers, who need it for improving their productivity as well as replacements and upgrades by SMBs who had delayed their purchases due to the economic environment over the last couple of years. However, with the growth of hosted cloud services, SMBs no longer need on-premise servers for many applications. This combined with consolidation and the growing use of virtualization, especially among the larger MBs, is reducing the growth rate of server shipments.
Secondly, the demand for storage products will also follow the server demand. In addition, the increasing use of the cloud for backup and storage is reducing the need for on-premise storage hardware and software.
While part of the SMB server and storage demand will shift toward the cloud service providers, their multi-tenancy models would prevent them from fully offsetting the decline in total SMB server shipments. Thus, the SMB server market will be pulled in two different directions: toward smaller, less powerful and less expensive servers driven by first-time server buyers and toward more powerful servers by the larger SMBs as they consolidate their servers and use virtualization on a broader scale.
The third shift taking place relates to mobile devices. With applications hosted in the cloud, some SMB employees no longer need the full functionality of the bulky notebook PCs as they can meet their needs using lighter devices like netbooks, smartphones and tablets. These lighter mobile devices have shown significant increase in penetration and ownership among SMBs. Notebook shipments, which have been growing a brisk pace for the last few years as businesses replaced their desktops with notebooks, are likely to see lower growth rates, followed by a long-term decline in the coming years.
Comment from Anil Miglani, SVP of IT Infrastructure and Managed Services Research at AMI-Partners: These changes in demand for hardware will also be accompanied by similar changes in demand for other on-premise products (e.g. security, networking, software, etc.) over the next several years. Going forward, vendors and channel partners need to understand these shifts in demand patterns and start reflecting them in their own future strategic initiatives. While a majority of SMBs are using cloud services in conjunction with their existing applications and services, a small but growing number are using them to replace their on-premise infrastructure. This is especially true for cloud services like CRM, hosted email, hosted SharePoint and others. This has started to affect demand for ICT infrastructure required to run these applications. The full impact of this shift will be seen much more visibly over the next couple of years, once the replacements/upgrades are completed and also more SMBs start moving their on-premise applications to the cloud.
Contact: Click here.
SMBs' cloud adoption patterns vary greatly in terms of types of applications and services reflecting their varying levels of comfort with the new paradigm.
Broadly, AMI's analysis shows demand shifts in three areas. While the overall SMB server shipments are still growing, these are driven significantly by first-time server buyers, who need it for improving their productivity as well as replacements and upgrades by SMBs who had delayed their purchases due to the economic environment over the last couple of years. However, with the growth of hosted cloud services, SMBs no longer need on-premise servers for many applications. This combined with consolidation and the growing use of virtualization, especially among the larger MBs, is reducing the growth rate of server shipments.
Secondly, the demand for storage products will also follow the server demand. In addition, the increasing use of the cloud for backup and storage is reducing the need for on-premise storage hardware and software.
While part of the SMB server and storage demand will shift toward the cloud service providers, their multi-tenancy models would prevent them from fully offsetting the decline in total SMB server shipments. Thus, the SMB server market will be pulled in two different directions: toward smaller, less powerful and less expensive servers driven by first-time server buyers and toward more powerful servers by the larger SMBs as they consolidate their servers and use virtualization on a broader scale.
The third shift taking place relates to mobile devices. With applications hosted in the cloud, some SMB employees no longer need the full functionality of the bulky notebook PCs as they can meet their needs using lighter devices like netbooks, smartphones and tablets. These lighter mobile devices have shown significant increase in penetration and ownership among SMBs. Notebook shipments, which have been growing a brisk pace for the last few years as businesses replaced their desktops with notebooks, are likely to see lower growth rates, followed by a long-term decline in the coming years.
Comment from Anil Miglani, SVP of IT Infrastructure and Managed Services Research at AMI-Partners: These changes in demand for hardware will also be accompanied by similar changes in demand for other on-premise products (e.g. security, networking, software, etc.) over the next several years. Going forward, vendors and channel partners need to understand these shifts in demand patterns and start reflecting them in their own future strategic initiatives. While a majority of SMBs are using cloud services in conjunction with their existing applications and services, a small but growing number are using them to replace their on-premise infrastructure. This is especially true for cloud services like CRM, hosted email, hosted SharePoint and others. This has started to affect demand for ICT infrastructure required to run these applications. The full impact of this shift will be seen much more visibly over the next couple of years, once the replacements/upgrades are completed and also more SMBs start moving their on-premise applications to the cloud.
Contact: Click here.
Friday, September 24, 2010
Survey Finds Cloud Security Lacking
Interest in cloud computing is strong among IT professionals, but that interest is coupled with an equally strong fear about the security implications, according to a new survey.
Key findings in PhoneFactor's study include:
-- Security is a primary barrier to cloud computing adoption for nearly three-quarters of respondents (73 percent) followed by Compliance (54 percent) and Portability/Ownership of Data (48 percent).
-- 42 percent of respondents indicated that security concerns had held their company back from adopting cloud computing. 30 percent were unsure, and only 28 percent indicated it had not been a deterrent.
-- Leading cloud services were rated only moderately secure or worse: Google Apps, Amazon Web Services, and SalesForce/Force.com were all rated only moderately or less secure by more than 74 percent of respondents.
-- Preventing unauthorized access to data was the greatest cloud computing security concern. The overwhelming majority of respondents (93 percent) were at least moderately concerned about preventing unauthorized access to company data in the cloud; more than half (53 percent) were extremely concerned by it. Fear of the unknown ranked second highest with 89 percent of respondents indicating they were at least moderately concerned about the inability to evaluate the security of cloud-based systems.
-- What can be done to increase confidence in cloud computing? The top three security measures respondents thought were critical to securing the cloud included: Encryption (84 percent), Multi-Factor Authentication (81 percent), and Intrusion Prevention (80 percent).
-- Reduced cost (65 percent), Scalability (62 percent), and Rapid Implementation (50 percent) are seen as primary benefits to cloud computing. 87 percent of respondents indicated that they were planning to at least evaluate the use of cloud services.
Google's announcement earlier this week that they are adding two-step authentication to Google Apps validates the need for additional security for user access to cloud applications. The Google authentication solution, like that provided by PhoneFactor, leverages an everyday device -- the phone, which is ideal for cloud applications because it mirrors the scalability and cost savings touted as key benefits of cloud computing.
Comment from Steve Dispensa, PhoneFactor CTO and co-founder: Companies are eager to take advantage of the benefits of cloud computing. Demand for cloud computing systems clearly exists. However, survey results indicate that better security, like multi-factor authentication and encryption, are going to be required if cloud computing adoption is going to move forward.
About the survey: A global provider of phone-based multi-factor authentication, PhoneFactor's recent survey on the role of security in cloud computing adoption included more than 300 information technology professionals from a wide variety of industries and looked at their organizations' current and planned use of cloud computing, what perceived benefits are driving adoption, and conversely which factors are limiting adoption.
Contact: Click here.
Key findings in PhoneFactor's study include:
-- Security is a primary barrier to cloud computing adoption for nearly three-quarters of respondents (73 percent) followed by Compliance (54 percent) and Portability/Ownership of Data (48 percent).
-- 42 percent of respondents indicated that security concerns had held their company back from adopting cloud computing. 30 percent were unsure, and only 28 percent indicated it had not been a deterrent.
-- Leading cloud services were rated only moderately secure or worse: Google Apps, Amazon Web Services, and SalesForce/Force.com were all rated only moderately or less secure by more than 74 percent of respondents.
-- Preventing unauthorized access to data was the greatest cloud computing security concern. The overwhelming majority of respondents (93 percent) were at least moderately concerned about preventing unauthorized access to company data in the cloud; more than half (53 percent) were extremely concerned by it. Fear of the unknown ranked second highest with 89 percent of respondents indicating they were at least moderately concerned about the inability to evaluate the security of cloud-based systems.
-- What can be done to increase confidence in cloud computing? The top three security measures respondents thought were critical to securing the cloud included: Encryption (84 percent), Multi-Factor Authentication (81 percent), and Intrusion Prevention (80 percent).
-- Reduced cost (65 percent), Scalability (62 percent), and Rapid Implementation (50 percent) are seen as primary benefits to cloud computing. 87 percent of respondents indicated that they were planning to at least evaluate the use of cloud services.
Google's announcement earlier this week that they are adding two-step authentication to Google Apps validates the need for additional security for user access to cloud applications. The Google authentication solution, like that provided by PhoneFactor, leverages an everyday device -- the phone, which is ideal for cloud applications because it mirrors the scalability and cost savings touted as key benefits of cloud computing.
Comment from Steve Dispensa, PhoneFactor CTO and co-founder: Companies are eager to take advantage of the benefits of cloud computing. Demand for cloud computing systems clearly exists. However, survey results indicate that better security, like multi-factor authentication and encryption, are going to be required if cloud computing adoption is going to move forward.
About the survey: A global provider of phone-based multi-factor authentication, PhoneFactor's recent survey on the role of security in cloud computing adoption included more than 300 information technology professionals from a wide variety of industries and looked at their organizations' current and planned use of cloud computing, what perceived benefits are driving adoption, and conversely which factors are limiting adoption.
Contact: Click here.
New Finding: Telecom Service Providers Are Key SMB Cloud Players
As many traditional small and medium business (SMB) channel partners make the transition to the Cloud services model, telecommunication service providers (telecoms) are making a strong bid for the SMB Cloud share, beyond their traditional voice and data service offerings, an upcoming study says.
Facing the continuing prospect of declining average revenue per seat (ARPU) and increasing churn, telecoms see the SMB Cloud as an opportunity for sustained revenue growth and customer loyalty. At the same time, many SMBs are open to expanding their relationships with telecoms beyond traditional voice and data services. Thirty-eight percent of U.S. SMBs say they are willing to purchase IT products & services (including hardware and software) from telecommunications service providers.
A key driver behind SMB interest in purchasing IT products & services from telecoms is the rapid growth of mobile applications.
Leading players such as AT&T, Verizon and Qwest are increasing their Cloud service portfolio from hosted VoIP, hosted email, and conferencing services, to high-end business applications and managed services. Most SMBs already have an account with a communication service provider for communication services; adding cloud applications through the existing account significantly lowers the hurdle for SMBs to adopt new services than looking for a new service provider. Communication service providers may be the comprehensive ICT partners in the coming age of Cloud computing.
Comment from Yuki Uehara, Senior Cloud Analyst with AMI: SMBs with multiple branches and greater smartphone penetration are more likely to expand their relationship with telecoms. This growing interest suggests significant opportunities for communication service providers to be one-stop ICT partners, and to reshape the ecosystem of ICT products and services in the global SMB space. This poses a significant challenge to traditional SMB channel partners, as telecoms bring greater scale, resources and price flexibility. SMBs are attracted to telecoms' abilities to offer superior customer service, flexible billing, and "one neck to choke" for all IT and communications issues. This 'one-stop-shopping' model, coupled with attractive bundling, pricing and services options, will put pressure on traditional resellers to evolve their business models.
AMI's 2010 Worldwide SMB Cloud Service study: Examines the SMB Cloud opportunity in 30+ countries, including SMB preferences for Cloud-based application bundle, price sensitivity and purchase channel preferences. This study also provides comprehensive coverage of SMB adoption of Cloud-based applications, managed services, and supporting infrastructure, including platforms and devices. These studies will provide a roadmap for successful Cloud go-to-market strategies and tactics.
Contact: Click here.
Facing the continuing prospect of declining average revenue per seat (ARPU) and increasing churn, telecoms see the SMB Cloud as an opportunity for sustained revenue growth and customer loyalty. At the same time, many SMBs are open to expanding their relationships with telecoms beyond traditional voice and data services. Thirty-eight percent of U.S. SMBs say they are willing to purchase IT products & services (including hardware and software) from telecommunications service providers.
A key driver behind SMB interest in purchasing IT products & services from telecoms is the rapid growth of mobile applications.
Leading players such as AT&T, Verizon and Qwest are increasing their Cloud service portfolio from hosted VoIP, hosted email, and conferencing services, to high-end business applications and managed services. Most SMBs already have an account with a communication service provider for communication services; adding cloud applications through the existing account significantly lowers the hurdle for SMBs to adopt new services than looking for a new service provider. Communication service providers may be the comprehensive ICT partners in the coming age of Cloud computing.
Comment from Yuki Uehara, Senior Cloud Analyst with AMI: SMBs with multiple branches and greater smartphone penetration are more likely to expand their relationship with telecoms. This growing interest suggests significant opportunities for communication service providers to be one-stop ICT partners, and to reshape the ecosystem of ICT products and services in the global SMB space. This poses a significant challenge to traditional SMB channel partners, as telecoms bring greater scale, resources and price flexibility. SMBs are attracted to telecoms' abilities to offer superior customer service, flexible billing, and "one neck to choke" for all IT and communications issues. This 'one-stop-shopping' model, coupled with attractive bundling, pricing and services options, will put pressure on traditional resellers to evolve their business models.
AMI's 2010 Worldwide SMB Cloud Service study: Examines the SMB Cloud opportunity in 30+ countries, including SMB preferences for Cloud-based application bundle, price sensitivity and purchase channel preferences. This study also provides comprehensive coverage of SMB adoption of Cloud-based applications, managed services, and supporting infrastructure, including platforms and devices. These studies will provide a roadmap for successful Cloud go-to-market strategies and tactics.
Contact: Click here.
Wednesday, September 8, 2010
Cloud Services Move From On-Premise To On-Demand
Roughly 750,000 (12 percent) small businesses and 20,000 (24 percent) medium businesses are already using software as a service (SaaS). However, of today's SaaS users, 78 percent of SBs and 31 percent of MBs are leveraging a SaaS plus on-premise mix (or hybrid model), while approximately only a third of SaaS users are using an actual pure-SaaS product.
With an anticipated growth of up to $95 billion in global SMB cloud-related spending by 2014, it isn't a surprise to see over half of U.S. SMBs looking into SaaS as a potential solution.
Approximately one in five U.S. SMBs plan to use SaaS. However, AMI believes that SMBs are easing into the concept of local plus cloud-based computing rather than leapfrogging into a pure-play platform.
Almost two years since the downturn began, 77 percent of U.S. small businesses (1-99 employees) and 84 percent of U.S. medium businesses (100+ employees) very concerned with current market conditions. This marks a 31 percent and 81 percent year-over-year increase, respectively.
The data comes from AMI's latest worldwide SMB Cloud Services Practice.
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