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Cloud Services Global Overview - new CIS Cloud Services Definition & Landscape - updated Cloud User Survey - new findings Worldwide IT Cloud Services Forecast - updated Q&A... It will p

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Copyright 2009 IDC Reproduction is forbidden unless authorized All rights reserved.

Cloud Computing 2010

An IDC Update

Frank Gens, Senior Vice President & Chief Analyst

Robert Mahowald, Research Director, SaaS & Cloud Services

Richard L Villars, Vice President, Storage Systems & Executive Strategies David Bradshaw, Research Manager, Applications and Solutions, EMEA Chris Morris, Research Director, Services Research, Asia/Pacific

IDC Executive Telebriefing

29 September 2009

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Cloud Services Global Overview - new CIS

Cloud Services Definition & Landscape - updated

Cloud User Survey - new findings

Worldwide IT Cloud Services Forecast - updated

Q&A

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© 2009 IDC 3

Description:

Cloud Services: Global Overview is IDC’s unique program that gives the "rolled-up" view of

the entire opportunity for IT Cloud Service provision This program will provide the complete Cloud services opportunity segmentation by 3 regions and by technology segment (7-10 Black

Book segment level) For further drill down please see specific market programs It will provide

survey data on:

ƒ How quickly Cloud Services will be adopted and by which customer segments

ƒ How Cloud will impact vendor business models and service offerings

ƒ Will examine the customer benefits and challenges surrounding Cloud Services

Coverage:

ƒ An IT Cloud Services Forecast, consisting of 7-10 Black Book-level categories (Servers, Storage, Apps, etc), with a 3-region split (EMEA, Americas, Asia Pacific), and an enterprise size split (large, medium, small)

ƒ IDC’s Cloud definition and taxonomy

ƒ Cloud user survey findings and spending intentions

ƒ Vendor Cloud strategy briefs driven by events, announcements

ƒ Industry structure/model scenarios, predictions - focused on mega-shifts IDC sees in

industry structure, strategies and other topics

Lead Analysts: Frank Gens, Robert Mahowald, Rick Villars

Regional Associates: Chris Morris (AP), Satoshi Matsumoto (Japan), Vladimir Kroa (CEE), David Bradshaw & Chris Ingle (W Europe), Lidice Fernandez (Latin America)

Cloud Services Global Overview

New

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Cloud Services Definition - updated

Consumer and Business products, services and solutions delivered and consumed in real-time over the Internet

Cloud Services

“casual

description”

‰ Shared, standard service – built for a market (public), not a single customer

‰ Solution-packaged – a “turnkey” offering, integrates required resources

‰ Self-service – admin, provisioning; may require some “on-boarding” support

‰ Elastic scaling – dynamic and fine-grained

‰ Use-based pricing – supported by service metering

‰ Accessible via the Internet/IP – ubiquitous (authorized) network access

‰ Standard UI technologies – browsers, RIA clients and underlying technologies

‰ Published service interface/API – e.g., web services APIs

Key

Attributes

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© 2009 IDC 5

Cloud Services Definition - updated

Consumer and Business products, services and solutions delivered and consumed in real-time over the Internet

Cloud Services

Public - open to a largely unrestricted universe of potential users; designed for

a market, not a single enterprise

Private - designed for, and access restricted to, a single enterprise (or

extended enterprise); an internal shared resource, not a commercial offering; IT Org is the “vendor” of the shared/std service to its users

Deployment

Models

[Note: large gray zones

between these

two broad categories]

‰ Shared, standard service – built for a market (public), not a single customer

‰ Solution-packaged – a “turnkey” offering, integrates required resources

‰ Self-service – admin, provisioning; may require some “on-boarding” support

‰ Elastic scaling – dynamic and fine-grained

‰ Use-based pricing – supported by service metering

‰ Accessible via the Internet/IP – ubiquitous (authorized) network access

‰ Standard UI technologies – browsers, RIA clients and underlying technologies

‰ Published service interface/API – e.g., web services APIs

Key

Attributes

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IT Cloud Services Taxonomy

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© 2009 IDC 7

All Types of IT Software & Hardware

Are or Will Be Offered as Cloud Services…

All Types of IT Software & Hardware

Are or Will Be Offered as Cloud Services…

Application Development Software Application Server Middleware Data Access, Analysis, and Delivery Information & Data Management Integration & Process Automation Middleware Other Application Dev and Deployment Quality & Life-Cycle Tools

Enterprise Portals

Servers Storage Networks Clients

System and Network Management Software Security Software

Storage Software System Software

Collaborative Applications Content Applications Enterprise Resource Management Applications Supply Chain Management Applications Operations and Manufacturing Applications Engineering Applications

Customer Relationship Management Applications

Software

SystemsStorage

Applications

Corresponding Primary Market

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Cloud Services Beyond the IT Industry

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© 2009 IDC 9

IT’s Cloud Opportunities Landscape

Provide IT Products/Services

to enable Cloud SPs (public & private)

Provide Services around

Pureplay Cloud

HW & SW

Vendors

“arms dealer”

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Cloud User Surveys - Benefits

Q: Rate the benefits commonly ascribed to the 'cloud'/on-demand model

(Scale: 1 = Not at all important 5 = Very Important)

Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009

Seems like the way of the future

Sharing systems with partners simpler

Always offers latest functionality

Requires less in-house IT staff, costs

Encourages standard systems

Monthly payments Easy/fast to deploy to end-users

Pay only for what you use

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© 2009 IDC 11

Cloud User Surveys - Challenges

Q: Rate the challenges/issues of the 'cloud'/on-demand model

Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 (Scale: 1 = Not at all concerned 5 = Very concerned)

76.0%

76.8%

79.8% 80.2% 81.0% 82.9% 83.3% 87.5%

Not enough ability to customize

Hard to integrate with in-house IT

Bringing back in-house may be difficult

Lack of interoperability standards

On-demand paym’t model may cost more

Performance Availability Security

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Cloud User Surveys – Adoption Areas

(Scale: 1 = Very Unlikely 5 = Very Likely)

Q: Rate your likelihood to pursue the cloud model for the following

Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009

Application dev/test/deploy platform

Business Intelligence/Analytics

Server capacity on demand

IT Management software Storage capacity on demand

Data/Content Distribution services

Personal productivity apps

Business apps (CRM, HR, ERP)

Data Back-up or Archive services

Web applications/Web serving

Collaboration applications

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© 2009 IDC 13

Cloud User Surveys – Vendor Requirements

(Scale: 1 = Not at all important 5 = Very Important)

Q: How important is it that cloud service providers …

Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Have local presence, can come to my offices

Are a technology and business model innovator

Offer both on-premise and public cloud services

Support many of my IT needs Allow managing on-premise & cloud together

Understand my business and industry

Provide a complete solution Option to move 'cloud' offerings back on premise

Offer Service Level Agreements (SLAs)

Offer competitive pricing

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IT Cloud Services Forecast Update

Infra-20%

Worldwide IT Cloud Services Revenue* by Product/Service Type

Source: IDC, September 2009 * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges

2009

$17.4 billion

2013

$44.2 billion

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10%

CAGR 26%

4%

44

17

0 100 200 300 400 500 600

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Cloud Services Growth Impact

460.4

433.1

430 435 440 445 450 455 460 465 470 475 480 485

Net new IT growth

Sources of Incremental IT Spending Growth in 2013

Cloud vs Traditional Products

Source: IDC, September 2009

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© 2009 IDC 17

Cloud’s Position in Asia/Pacific

• Familiarity is high

• But opinion is low!

Source: IDC Asia/Pacific End-user Cloud Computing Survey, 2009, n=667

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Cloud’s Position in Europe

Survey: % of respondents in country/region using 7 or more IT cloud services*

Source: IDC European Enterprise Services Survey 2009, n = 533

* Survey list of cloud services included: email/calendar, financials, app dev, collaboration, CRM, HRM, security, office productivity, storage/backup, app platform

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© 2009 IDC 19

Upcoming IDC Cloud Research Plans

Cloud Landscape

Cloud Services: Global Overview - NEW

Asia/Pacific Cloud Services and Technologies - NEW

Central and Eastern European Cloud, Hosting and Outsourcing ServicesUnited States SaaS and Cloud Services Spending by Vertical 2009 (special report) - NEW

Cloud Software/Apps

SaaS and Cloud ServicesEuropean SaaS and Cloud Services

Le Marché du Software as a Service (report - France)

Japan SaaS and Cloud ServicesBusiness Analytics SolutionsEuropean Business Analytics Markets & Strategies

Software Pricing & Licensing

Cloud (application) Platform

Application Development & Deployment and Cloud Services

Application Life-Cycle Management

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Upcoming IDC Cloud Research Plans

Cloud Infrastructure

Enterprise System Management

Security ServicesSecurity ProductsStorage Solutions: Storage and the Cloud (report series) - NEW

Servers in the Cloud (special report) - NEW

Services around Cloud Services

SOA and Cloud Services: The Professional Services Opportunity

WW Consulting & System Integration Services

IT Education & Certification

ICT Offerings for Cloud SPs

Datacenter NetworksNGN OperationsStorage Solutions: Storage and the Cloud - NEW

Servers in the Cloud (special report) - NEW

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© 2009 IDC 21

IDC Cloud Computing Forum East

New York City, November 4th

IDC Cloud Computing Forum East

New York City, November 4th

Richard Schwind

Executive Director Morgan Stanley Technology

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Essential Guidance

tying last year’s leading driver: speed of deployment

Top concerns remain: security , availability, and performance

Cloud adoption momentum is strong around collaboration ,

“cloudifying” Web commerce , and data backup/archive

dev/test/deploy are next in line

Top vendor requirements are: pricing ; SLAs ; dynamism across public cloud, private cloud, and traditional environments; and understanding customers’ business/industry

The recession knocked down cloud adoption forecasts, but

less than traditional IT – cloud’s growth advantage widened in 2009

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