Digital Transformation: Powered by Cloud. William Fellows Co-founder, VP Research
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1 Digital Transformation: Powered by Cloud William Fellows Co-founder, VP Research
2 2
3 Agenda How are enterprises being disrupted? Technology is an accelerant What s in it for me? Securing your future 3
4 Agenda How are enterprises being disrupted? Technology is an accelerant What s in it for me? Securing your future 4
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13 So where s the cloud app? 13
14 How can I respond? 14
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16 Social, mobile, global, local all have implications for data connectivity 16
17 Financial Services Our Social, busiest mobile, global, branch local all have is the 7:01 from Reading implications for data connectivity to Paddington - over 167,000 of our customers use our Mobile Banking app between 7am and 8am on their commute to work every day. - Ross McEwan, CEO 17
18 Manufacturing 18
19 Products Services Sell Tractors Revenue at sale Product-centric Machine Data Predictive Maintenance Soil Analysis Weather Yield Forecast Deliver Services Ongoing revenue Service-centric 19
20 Business Imperatives for Digital Transformation 20
21 Digital Transformation Which of the following best describes your company s status with regards to a digital transformation effort? 451 Research Voice of the Connected User Landscape, April
22 Agenda How are enterprises being disrupted? Technology is an accelerant What s in it for me? Securing your future 22
23 Old Style of IT IT as a Cost Center New Style of IT IT as a Differentiator On-Premises IT Best Venue for IT PC Endpoints Mobile Endpoints + Things Server, Network, Storage Silos Converged Infrastructure 22
24 Digital Transformation Powered by Cloud Impacts internal operating model: Waterfall -> Continuous Development Install -> Continuous Integration Allocated -> Consumption-based Pay up front -> Retail model Product -> Service-driven Time and materials -> outcome-based ITIL -> Agile All-in Companies which want to do cloud must do DevOps 24
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27 % of Workloads Running in Cloud 27
28 CLOUD COMPUTING Q Cloud First Frequency We expect cloud computing to be: Source: 451 Research, Voice of the Enterprise: Cloud, Workloads and Key Projects
29 Digital Transformation Powered by Cloud Transformation of digital assets in all organizations Sea change in attitude Build faster, run better Urgency vs emergency Cloud First is the new normal AWS+1 29
30 Agenda How are enterprises being disrupted? Technology is an accelerant What s in it for me? Securing your future 30
31 CLOUD COMPUTING Q Cloud Computing Services Usage Q4. Which of the following types of cloud services, if any, does your organization currently use? Source: 451 Research, Voice of the Enterprise: Cloud, Workloads and Key Projects
32 Hybrid cloud is becoming the standard Vertical Private Public Finance and Banking 71% 29% Healthcare 72% 28% Insurance 81% 19% Government 78% 22% Retail 73% 27% Telecommunications 67% 33% Manufacturing 77% 23% Commissioned by HPE; n=
33 Right Mix emerging? Commissioned by HPE; n=
34 Under pressure 34
35 At the end of the beginning.. Hyperscalers Telcos/NSPs Regional Providers Resellers, distributors, managed services Enterprise Technology Vendors Systems Integrators, Outsourcers Dacatenter, co-lo operators Grow margins in Global IaaS commoditsing market Price Self-Service Address the enterprise PAYG Bond to networks AWS Google Microsoft Aliyun Move Export beyond connectivity established Declining model, MRR legacy consumptionbased revenue New competitive arenas China Telecom Deutsche Telekom Verizon CenturyLink Vodafone NTT Orange Telefonica Retain customer relationships Broad as language global players support, targeted, move indata Take sovereignty advantage of regionality/ sovereignty CITIC Iomart ChinaCache Claranet United Internet Locaweb Deliver low-margin Managed IaaS and services, upsell channel higher value reach, distribution services at scale Margin business requires scale Rackspace Ingram Micro DataPipe Arrow Avenet TechData Westcon SHI It s all about consumption Platform, OS, not technology the license Me Too! IaaS Need to bond to the network Dell VMware HPE Ericsson Microsoft IBM Fujitsu Cisco Huawei Smaller Blended deals in-house available and multi-vendor Resource model offerings limitations Service Stagnant integration margin growth Accenture CSC T-Systems Cognizant Infosys Capgemini Atos Dell Services Proximity Grow viable benefits of ecosystems ecosystem, Recognition Interconnection in the enterprise hubs NSP competition Equinix, Digital Realty Switch IO SoftBank 35
36 36
37 The Rise of the Cloud Service Broker Telcos/NSPs Regional Providers Resellers, distributors, managed services Enterprise Technology Vendors Systems Integrators, Outsourcers Dacatenter, co-lo operators Move beyond connectivity Declining legacy revenue Retain relationships as global players arrive Deliver lowmargin IaaS and upsell higher value services Scale It s all about consumption not the license Bond to the network Smaller deals Resource model limitations Stagnant margins Grow viable ecosystems Enterprise recognition NSP competition China Telecom Deutsche Telekom Verizon CenturyLink Vodafone NTT Orange Telefonica CITIC Iomart ChinaCache Claranet United Internet Locaweb Rackspace Ingram Micro DataPipe Arrow Avenet TechData Westcon SHI Dell VMware HPE Ericsson Microsoft IBM Fujitsu Cisco Huawei Accenture CSC T-Systems Cognizant Infosys Capgemini Atos Dell Services Equinix Digital Realty Switch IO SoftBank 37
38 Opportunity = Beyond Infrastructure What percent of your HOSTING & CLOUD SERVICES budget in is allocated to the following services? n=1600 Security Services 23% Application Hosting 27% Infrastructure Hosting 29% Managed Services 22% Almost 70% of cloud spending is now beyond Infrastructure services C O M M I S S I O N E D B Y M I C R O S O F T 38
39 Services need to unburden enterprises Managed Security Analytics as a Service Multi-Cloud Services Backup and Recovery Interconnection / Networking Storage as a Service Disaster Recover 39
40 CLOUD COMPUTING Q Cloud Application Deployment Q12. What is your organization's most common type of application deployment for cloud computing? Source: 451 Research, Voice of the Enterprise: Cloud, Workloads and Key Projects
41 Best Execution Venue Global/local Value-add services Cost-Optimization On-boarding, integration Speed Remove service complexity Consolidated billing Easy resolution User Private Cloud Service Broker Public Public 41
42 Cloud Transformation Cloud service broker Consumption management, optimization Cloud Management Platform Visualising Advisory & planning Transformation engine Monitoring Blueprinting, provisioning Security & governance 42
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44 A Simple Application NA: $338 7% EMEA: $360 14% APAC: $384 38% LATAM: $415 44
45 Agenda How are enterprises being disrupted? Technology is an accelerant What s in it for me? Securing your future
46 Where is the market going? Cloud Services will dominate the market Service Providers will own a growing share of infrastructure spend Channels of distribution will evolve and grow in importance for Service Providers 46
47 Recommendations for Buyers Get started with as-a-service Use CMPs for cloud service acquisition Go all-in on cloud operating model do DevOps Create centers of excellence to drive change Work collaboratively Embrace failure as a cultural competency Remember it s 1:9 (technology:people) 47
48 Best Practices for Service Provider Evaluation IaaS is not enough Avoid vendor lock-in Enterprise engagement Use suppliers that can manage flexibility Runaway costs are a real fear Secure, HA service at low cost My Cloud, My Way 48
49 What Service Providers Must Do 49
50 Transform 50
51 51
52 Thank You 52
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