This IDC study is a deep dive analysis in: 1) The shift in infrastructure implementation - new trend 2) Migration challenges & cost from legacy to cloud & hybrid cloud 3) Datacenter management cost comparison - legacy infrastructure vs new one 4) Benefit of transition into Cloud... Presented by: David Senf Vice President, Infrastructure & Cloud Solutions

1. Confidential: Not for external use or attribution
Technology Megatrends Reshaping IT:
What’s Your Migration Path
David Senf
Vice President, Infrastructure & Cloud Solutions

2. A Rising Tide Of IT Complexity
2
Source: IDC Canada, Top Executive Survey, Sept 2013
n=160
38%
45%
64% 66%
Biz Execs IT Execs
IT complexity is a major
challenge
2012
looking
ahead to
2013
2013
looking
ahead to
2014
Why is the
Complexity
Gap
widening?

3. A Rising Tide Of IT Complexity
3
Source: IDC Canada, Top Executive Survey, Sept 2013
n=160
38%
45%
64% 66%
Biz Execs IT Execs
IT complexity is a major
challenge
2012
looking
ahead to
2013
2013
looking
ahead to
2014
Why is the
Complexity
Gap
widening?
Infrastructure Investments Total Medium Large
Behind 48% 47% 54%
Doing OK 30% 30% 33%
Ahead 22% 23% 13%

4. 1960-1980
 Millions of users
 Thousands of apps
2005-2020+
 Billions of Users
 Millions of Apps
 10x Servers, 14x Storage
 Trillions of Things
 Industry Solutions
1980-2005
 100s of Millions of Users
 Tens of Thousands of Apps
A “Once Every 20-25 Year” Shift…
4

5. Better managed / measured IT achieved 36%
time on Innovation
5N=309; Thinking of a period of 12 months, please estimate how on average total IT personnel time would be
divided between the following categories. - Median Summary
The True Cost of Complexity
25%
Innovation
75%
Keeping the
Lights On
Current
IT Mix
50%
Innovation
50%
Keeping the
Lights On
Ideal IT
Mix

6. Department 100-999 employees 1000+ employees
IT Operations 55% 50%
Sales 42% 28%
Customer support 41% 41%
Human resources 36% 28%
Financial & accounting 27% 30%
Marketing 27% 30%
Senior executive team 27% 17%
Supply chain & logistics 16% 20%
Engineering/R&D 10% 7%
Application development 9% 17%
Distribution/channel mgmt 7% 11%
Other 6% 11%
Legal & corporate affairs 5% 7%
Departments to Most Significantly
Benefit from Cloud: The Need for
Controlling Shadow IT
6
More focus from IT, medium
and large biz
More focus from LOB,
medium and large biz
Growth in medium biz for
HR and Finance from 2013
Source: IDC Canada, 2014
IT trying to become a service
provider/broker as line of
business tech spend/
influence surpasses $10B

7. Expectations Across Canada of their
Cloud Provider…
•79%
Want prior
trusted
relationship
•72%
Want as few
providers as
possible
•75%
Want “Cloud
Also”
7Source: IDC Canada, 2014

8. Cloud Services Deployment Models
8
Single-tenant delivery Multi-tenant delivery
Managed
Private
Cloud
Dedicated
Private
Cloud
Virtual
Private
Cloud
Public
Cloud
Hosted Private Cloud
Customer site Service provider site
Source: IDC Canada, 2014

9. Operating A Hybrid Cloud Future
9
Single-tenant delivery Multi-tenant delivery
Managed
Private
Cloud
Dedicated
Private Cloud
Virtual
Private
Cloud
Public Cloud
Hosted Private Cloud
Customer site Service provider site
What’s At Play Across A
Hybrid Future?
Platform (e.g., network,
server, hypervisor)
Management (e.g., SLAs,
provisioning, service catalogue)
Security (e.g., access
control, encryption)
Discover/control shadow IT
(e.g., rogue public cloud usage)
UI (e.g., familiar look, feel,
features)
IT skills (e.g., certifications,
ease of integration)
Devices (e.g., mobile, server)
…
Source: IDC Canada, 2014
Cross Cloud
Management Tools

10. Total Cloud 3.2 billion
Cloud Transformation Underway
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2013 2017
Private
hosted
$554M
IaaS
$372M
PaaS
$229M
SaaS
$2.04B
Total Cloud $1.3 billion
Private
hosted
$170M
IaaS
$62M
PaaS
$105M
SaaS
$993M
10Source: IDC Canada, 2014

11. Where Will Your Apps Be Deployed in
2017?
Workloads moving away from… Workloads moving towards...
Physical Desktop Physical
IT Infrastructure
Email
Virtual Web Virtual Desktop
App dev IT Infrastructure
ERP -
Private cloud Private cloud App dev
ERP
CRM
Hosted Hosted Web
ERP
DW
Public Public Email
ERP
CRM
11Source: IDC Canada, 2014

12. Hybrid Maturity: From Architecture to
Implementation
12
Level Category Description 2014 2017
Level 1 Initial
Ad hoc exploration of cloud options. Beginning
pilots for specific use cases 46% 11%
Level 2 Managed
Gathering input from across the business. Starting
to cloud-enable IT resources. Still reactive 29% 20%
Level 3 Defined
Standardized process for implementation, cost and
other technology options across delivery models 15% 31%
Level 4 Quantitative
Orchestrate cloud services across the business,
predictably. Measure and manage cloud services 7% 19%
Level 5 Optimized
Extend IT and cloud capabilities into new product
offerings. Continuous process improvement 3% 19%
Source: IDC Canada, 2014
I/5 large firms and 1/10 midmarket firms monitor
themselves along a maturity scale of some kind

13. But Why?!?!
13
Indicators More Mature IT Boasts…
Server to admin ratio: 54% more servers / admin
Virt server to admin ratio: 77% more virt servers /
admin
Storage capacity to admins: 44% more capacity / admin
App deployment time: 36% faster deployment
Time on Innovation vs.
Keeping the Lights On:
36% on Innovation vs. 24%
as the average
Invests in automation/
orchestration
Farther ahead of the
industry average
Actively tracks / measures: Top focus: Change and
Portfolio Management
Measures impact / ROI of
discretionary spend:
Majority do vs. very few of
the lower performers
Revenue growth: 38% more likely to show
growth – and higher growth
Canadian study on IT operations, 2014

14. Datacentre Management Costs
Continue to Swell
2000 2014
70%
10%
20%
Server Spend
Management
P&C Spend
38%
9%
53%
14
10x Servers, 14x Storage by 2020, but few additional IT headcount

15. 15
Benefits of Converged Infrastructure
Benefits 2014
Improve utilization of IT resources 46%
Simplified management 45%
Lower TCO 34%
Improved disaster recovery 28%
Power efficiency 28%
Improved business agility 16%
More focus since
last year
More focus since
last year – why
not more?

16. Transition from Unix/Mainframe to x86
40.4% 38.7% 33.9% 27.7%
59.6% 61.3% 66.1% 72.3%
2010 2011 2012 2013
Non-x86 x86
Unix and Mainframe revenue as a % of total market revenue in
Canada has dropped from 40.4% in 2010 to 27.7% 2013
16
Note: 2013 data includes Q1-Q3 actual and Q4 2013 forecast.

17. Linux Grabbing Share in ERP,
Datawarehousing and App Dev
17
Workloads Unix Linux Windows
Business Processing 43% 17% 16%
Decision Support 20% 10% 10%
Application Development 7% 10% 7%
Collaborative 6% 12% 19%
IT Infrastructure 15% 29% 36%
Web Infrastructure 6% 15% 10%
Industrial R&D 2% 6% 3%
1
1
1
2
2
2
3
3
3

18. KPIs for RHEL vs. Other Platforms
18
Business Value Highlights of
Linux
$4,000 per 100 users of
infrastructure cost reductions
44% increase of IT staff
productivity
54% reduction in the number of
downtime incidents
32% fewer help desk calls
361% three-year ROI of 361%
5.1 month payback on a
comparative basis to other
platforms
RHEL Other
Platforms
Advantage
Average
number of users
per server
127 98 30%
Average
number of
physical servers
per server
admin
40 20 100%
Time to deploy
a new business
application
(days)
46 53 13%
Time to upgrade
mission critical
applications
(hours)
7.63 11.6 34%
IDC Worldwide Study

19. Agility: What’s Next?
Months
to
deploy
Traditional
DaysVirtualization
HoursConverged
Mins?SDDC
19
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20. Impact of Cloud on IT Staff:
Opportunity to Assure Staff of Their Cloud Future
20
Small Mid Large
Reduce 10% 11% 13%
Redeploy 20% 42% 52%
Add 13% 6% 11%
Don't know 57% 41% 24%
Lots of uncertainty about cloud impact
on IT headcount. Likely more staff
redeployed than cutbacks
Source: IDC Canada, 2014
Employee count:
Small = <100
Mid = 100-499
Large = 500+

21. Reduce manual effort on way to being a service provider! Improve
automation / orchestration to reduce management complexity and
drive higher datacentre efficiency
Plan for migration into the 3rd Platform! Requirements across the
mix of workloads and data determine how new technologies fit into
the evolution of your architectures
Take a maturity approach to hybrid! Focus on progress around key
processes such as business service management, portfolio
management and change management
Final Thoughts
1
2
3
21

22. Questions?
David Senf
dsenf@idc.com
416-673-2206