Space to Think Cloud Research Insights

Space to think

CLOUD RESEARCH USING
LOGICA FUTURESCOPE

02
Cloud research using
Logica FutureScope

LOGICA FUTURESCOPE - DID YOU TAKE PART?
Everyone has an opinion on cloud. But opinions differ. So we decided to use Logica FutureScope to approach our cloud and
client market to find out exactly what those opinions are. Over a six-week period, we posted 24 statements – all about cloud.
We had 268 Logica FutureScope members participating, with 2886 views shared and 402 ‘Comments’ written on the site. And
we’re itching to share the results with you.

Logica FutureScope allows us to bring people together. And this is valuable as we can focus our attention around things our
clients find important. Innovation and new ideas happen at the boundaries of conversations. For example, a split of ideas may
happen between large and small organisations as they have different perspectives on things. And we expect and encourage
this range of views. We hope you find the following research interesting.

THINGS THE MAJORITY DID AGREE ON
No matter the role, company or location, there were several cloud statements that people collectively agreed on:

1. A major breach of confidentiality (data leakage) in the public cloud will make enterprises rethink their use. 97.47%
2. A major loss of availability of public cloud services will make enterprises rethink their use. 97.21%
3. The ability to utilise large amounts of capacity is a key benefit of cloud services. 96.61%
Let’s look at statement two. What does it mean? It shows that incidents surrounding a loss of availability can impact how
enterprises view cloud. Building a clear vision and strategy for security is the answer.

“Cloud service providers must show evidence on how they avoid data leakage and how they ensure availability.”
Thibault Chevillotte, Senior Manager, Security & Risk Management, Logica

Logica can help you take care of this from day one, allowing you to grow your business and get on with what you do best;
delivering great products and services. To help you on your way, watch this short video on how Logica helped a client with
identity management.

Key facts
268 members
24 statements
2886 trades
402 Comments
17 different companies

CLOUD RESEARCH USING LOGICA FUTURESCOPE

03

“Cloud is fast to deliver and fast to adopt. And it’s
really good at letting you share.”
David King, CTO, Logica

THINGS THE MAJORITY DIDN’T AGREE ON
1. Will large organisations adopt the cloud five times faster than the current broad market forecasts, as suggested by the
Open Data Centre Alliance members? 23.15%
2. Early adoption of cloud is essential to be able to deliver the demands from consumers. 25.92%.
Statement two shows that early adoption of cloud may not be seen as essential to delivering the demands from consumers.
But as one Comment that was written beside the statement on the website said, “Innovative ideas that work are essential.”
Every day, organisations look to cloud to accelerate their goals. They need to proactively seize market opportunities – such as
launching a new service. And this is possible via cloud - with a flexible infrastructure helping to achieve that cost-effective, quick
win. Logica’s consultative approach allows us to work together to find the right cloud for you, at the right time.

Adopting cloud can have great benefits for all types of enterprises. ‘Logica I Can Help’ service enables citizens to collaborate
and provides a unique way to unlock society’s potential to help in case of an emergency. Our virtual learning environment,
recently delivered in France, makes it easier for students to collaborate with teachers. Our cloud solution helped Fennia
maintain their position as a leading P&C insurance partner for brokers by streamlining their business processes.

WHAT CAUSED A SPLIT IN OPINION?
Not everyone thinks the same about cloud. And this is a good thing. Our different views help us to innovate today and question
how we do business tomorrow. So, here are the top three statements that may appear relatively high in agreement, but
showed large amounts of varying opinion throughout the six-week programme:

1. Personal technology and cloud services will reduce large corporate IT departments to a small team running an App store
for employees. 73.11%
2. Local government services moved to the cloud will improve citizen engagement dramatically. 91.68%
3. Cloud will provide 80% of all your services in the next five years. 65.70%
Statement number two about citizen engagement is an interesting topic. A Comment written next to this statement said that
“Where the council hosts its services is irrelevant.” But we believe if IT can be deployed, scaled and integrated quickly to meet
citizen needs, suddenly the benefits of cloud are revealed. Many members wrote similar Comments: “Cloud will improve agility
and allow citizens to be served better as their needs grow.” Being able to rapidly adapt to organisational needs is one of the
benefits that cloud brings to the table.

Statement number three provoked a real split in opinion. It is true that new cloud services are being introduced constantly,
such as music streaming services and cloud storage. But the idea that 80% of services would be provided by the cloud in
the next five years, may have been a bit too high. Based on several comments, 50% may be a more realistic figure. But other
members felt that this level of adoption is likely, with suggestions like “it will be a premium offering to be outside of the cloud.”
And this got us thinking. We all need to be prepared to embrace cloud. There are endless possibilities to communicate, grow,
innovate, transform. You name it - we’ll find a way for you to do it.

LOGICA FUTURESCOPE EXPLAINED
Logica FutureScope is our fun and innovative way to understand the direction of trends in the future. We do this by setting up a
mock stock market of statements and members can buy or sell their views on it.

Results in Logica FutureScope are based on market consensus. This is where we take the number of our active members
and capture the actual aggregate of their range of opinions - rather than just a straight, collective count. The results show the
degree of consensus that has been reached on a statement. The higher the figure, the greater the confidence of the market
in that statement. The opposite may be said for the lower percentage. The lower figure shows how the market had less
confidence in that particular statement.

Using a mock stock market to create a debating environment is very different from a traditional survey. It allows users to come
back to monitor and change their responses based on recent developments in the news for example. Retaining interest in an
answer, is what causes insightful debates.

This activity is part of the insight gathering for our cloud programme. Look out for the next session coming soon on Logica
FutureScope.

To find out about cloud, visit us at www.logica.com/cloud or talk to one of our cloud experts.

04

STATEMENT RESULTS
By analysing the way members voted and the Comments that were provided on the Logica FutureScope site, we have come to
the following conclusions for each statement:

Security focus

*1. A major breach of confidentiality (data leakage) in the public cloud will make enterprises rethink their use.
97.47%
CIOs and CISOs (Chief Information Security Officers) of enterprises should ensure they are confident of working
closely with their cloud providers to make sure their security strategies are in place.
*2. A major loss of availability of public cloud services will make enterprises rethink their use. 97.21%
Enterprises should be confident about using public clouds as they are highly reliable. But cloud doesn’t remove
the need for business continuity planning.
*3. A major integrity breach, such as loss of data, in the public cloud will make enterprises rethink their use.
78.58%
Security strategies will highlight risk areas, allowing enterprises to concentrate on delivery and business growth.
One of the things to consider with the public cloud is not just the integrity of the provider, but also who else is
using them and what effect this may have.
4. Individuals would be naturally averse to the possibility of their data being given to US intelligence agencies,
when it is held in the cloud by an American company, even though it is stored only in the EU. 87.54%
This proves that we all like to know where our data is stored, who has access to the data and which regulations
are applicable. Local providers understand consumer demands and can provide the service that meets your
regional legislation.
5. There is a lot of worry and uncertainty surrounding the cloud and the security of data. The biggest concern
is whether cloud providers can secure data in a way that means organisations are compliant with local
regulations. 66.82%
As with point four above, working with experienced providers will give you the confidence that your data is
in a secure and compliant solution. Transparent communication about security is important. We recommend
you seek ISAE 3402 for organisation reporting, ISO 27001 certification of Information Security Management
Systems, and the use of ISO 15408 certified security products. Ensure there is a clear contract in place with
Service Level Agreements and significant penalties included.

* Statements 1, 2 and 3 were asked so we could compare what cloud issue had the biggest concern. Data leakage in the cloud
was shown as the biggest concern of the market.


05

“The results from Logica FutureScope show the value and strength in
bringing an ecosystem together.”
David King, CTO, Logica

Focus on agility

1. The ability to utilise large amounts of capacity is a key benefit of cloud services. 96.61%
Cloud comes with numerous benefits, and being able to utilise large amounts of capacity is clearly one of them.
As one member suggested, “One of the biggest benefits of cloud services is to get large amounts of capacity on
demand and cost efficient”. Businesses should use it to diversify and help them grow.
2. The flexibility and agility of cloud will allow organisations to enter new markets within the next 12 months.
88.08%
Being able to rapidly turn your business ideas into reality with cloud can enable you to enter new markets at the
right time. Long implementation times are a thing of the past.
3. The ability for start-ups to rapidly launch services through the public cloud is having an impact by challenging
less agile established organisations. 75.03%
Although only 26 members traded on this question, the consensus and all the comments show resounding
agreement. “Entering markets will be cheaper” and “Cloud provides an opportunity to really shake up the
market!!!” And we agree. But no matter what size your business is, we can work together to help deliver that
business-changing cloud solution.

Cloud adoption focus

1. As a consumer, I’m happy for my personal media items (photos, videos, music, so on) to be stored in the
cloud rather than saved locally on multiple devices. 90.02%
Firstly, this proves that businesses now have the opportunity to provide cloud services in the knowledge that
consumers are comfortable with them doing so. Secondly, as consumers and therefore staff of organisations
become more cloud literate, businesses must think about adopting services to meet the demands and
expectations of their workforce.
2. 20% of the top 500 global ‘non-IT’ companies will offer services underpinned by cloud based services by the
end of 2015. 81.00%
It is possible that 20% of non-IT companies will look to leverage cloud services for new business services by 2015.
Several Comments left on Logica FutureScope did suggest that this level by 2015 may be too ambitious, but
cloud adoption will continue to grow. In fact, it will create new business models all together with companies now
renting things out when they didn’t do so before. Your business must be ready to embrace cloud at a time that is
right for you. We can work with you to create a strategy for both short and long term benefits.
3. The unknown elements of transitioning to the cloud are a main factor in stopping organisations from
embracing cloud technology. 76.85%
Transitioning to the cloud is still viewed as a headache by many. It is one of the main factors, alongside security,
stopping organisations from embracing technology. Creating a strategy to integrate cloud into your business is
the answer. Logica’s ‘Five steps to the cloud’ can help you do this.

06

“Cloud service providers must show evidence on how they avoid data leakage
and how they ensure availability.”
Thibault Chevillotte, Senior Manager, Security & Risk Management, Logica

4. Cloud will provide 80% of all of your services in the next five years. 65.7%
Although this statement was only active for five days, it resulted in a strong split in opinion. Perhaps 80% is a high
rate, with several Comments on this statement suggesting that between 40% and 60% is more accurate. The
split shows that some are confident with a level of 80% but some see it as being a lot slower. Those who are fast
adopters are likely to move a large proportion of services into the cloud. But the reason for hesitancy is always due
to a number of reasons, such as the technicality of moving legacy systems or the concerns of moving to the public
cloud because of privacy. But the answer is to look at different cloud deployment methods for different parts of
your business. Private, public and hybrid cloud can all be considered.
5. Consumers will still want to own music rather than just stream content. 64.57%
This demonstrates the continuous evolution of music services. Although there is a preference towards still owning
music over streaming, we predict that in less than one year time, this will fall below 50%. So businesses must
cater to the early adopters now, before the market falls. But we will see people for some time still wanting to have
the information or content rather than just having access to it. People are not yet prepared to let go of the option
to have content on their machine.
6. Consumers are willing to pay for a more flexible cloud based service than a less agile, traditional service.
45.02%
Although there was low participation for this statement, some interesting Comments were made. The benefits
of the ‘consumption based model’ were raised, whilst one member noted that relating to cost, “...it’s more for
less control, less ownership”. But agility has value and this is recognised by both businesses and consumers.
Businesses must ensure they have that agility, otherwise they will lose out to competitors.
7. Over 50% of organisations will implement BYOD (bring your own device) policies within the next 12 months.
41.34%
The rate of adoption in the timeframe given might be seen as ambitious, but businesses are starting to realise
the benefits of implementing such policies, for example – accessibility. Although a lot of companies talk about
bringing in these policies, we think it will take a longer time for this to get real penetration as clients are taking a
more systematic approach to mobility. The main objection to BYOD in the Comments for this statement was the
associated security risk to “...not only their security but the client data,” mentioned one member. Logica takes
security seriously, and as the answer to previous statements, we recommend working with experienced suppliers
to build your security strategies.
8. Early adoption of cloud is essential to be able to deliver to the demands from consumers. 25.92%.
Early adoption of cloud may not be seen as essential. But adopting cloud at the right time can mean the difference
between being a market leader and being left in the dust of others.
9. Will large organisations adopt the cloud five times faster than the current broad market forecasts, as
suggested by the Open Data Centre Alliance members? 23.15%
The fact that only 18 members traded on this question could suggest that the way it was worded affected
participation. The journey to the cloud can seem daunting, especially having made previous high cost
investments. But, by selecting the right elements to adopt and seamlessly integrating the cloud with current
business processes, you can get the benefits early.


07

Other

1. Governments cannot protect citizens from cybercrime without risking accusations of censorship. 93.09%
Finding the right levels of protection without being accused of censoring the Internet will be tricky for governments.
A Comment on this statement said “A balance must be found between censorship and protecting from cybercrime.”
There is still a delicate line, but “the Government needs to have effective legislation,” was noted by one member. We
think this is where technology is running ahead of legislation – but we are seeing active and positive moves in Europe
to address this.
2. Local government services moved to the cloud will improve citizen engagement dramatically. 91.68%
Opinions are split on whether cloud achieves this directly. But we believe it can. Governments can meet the demands
of consumers with information at the right time at the right place through the cloud. By doing so, we expect
engagement between government and citizens to increase as the benefits of new services are realised, such as
feedback platforms. A great example of this is our Logica I Can Help tool, where citizens can help the emergency
services through their smartphone. This in turn raises the need for IT companies like Logica to effectively implement
cloud strategies in the public sector.
3. Businesses will put pressure on their data centre partners to use more energy efficient equipment. 83.20%
Without doubt a pressing topic, and one that will continue to be at the forefront of many conversations. “Client
demands aren’t the most important driving factor for green energy, but it is ONE of them,” commented one member
on this statement. Partners implementing long term environmental strategies will help increase their demand. And this
is achievable through cloud. Sustainability is a core part of our company strategy, for example this is why we have our
data centre in Sweden, as electricity is more environmentally friendly in the Nordics.
4. Businesses would be more confident if current SaaS providers would change their model to offer a virtual server
hosting their service so that the data of a specific client would be hosted in a compartmentalised environment
dedicated to this client. 74.08%
This question was focused towards our more technical members to answer. Although the market generally supported
this, some Comments raised the issue that this “...assumes a level of knowledge” and that “...most companies don’t
understand the risk.” Understanding the cloud and the benefits it can bring to your business is the first step to
take. Alongside this, understanding the different types of cloud when assessing if you need this compartmentalised
environment is just as important.
5. Personal technology and cloud services will reduce large corporate IT departments to a small team running an
App store for employees. 73.11%
The way IT departments operate will change. Skills will evolve as technology advances. Corporate App Stores, cloud
provisioning, and remote working will change the way you run your IT systems. Let’s be ready for this change together.
6. Suppliers provide enough planning and reporting tools to ensure clients can forecast and manage cloud usage
without OpEx costs spiralling out of control. 72.11%
Businesses are moderately satisfied with their suppliers, but there is clearly room for improvement. An interesting
Comment left beside this statement suggested that “It is not a question of whether the tools are available but more
whether the process and people will be in place.” It is clear that cloud suppliers do generally provide enough tools to
forecast and manage cloud usage, but they must also ensure this is supported with the right people and resources
too. Businesses must make sure their suppliers provide adequate guidance and support. The cloud doesn’t mean you
can break the governance you have around managing suppliers, but governance does need to change due to the
greater flexibility that cloud brings. For example, governance needs to manage pricing caps effectively.
7. The success of cloud will outpace the Internet’s capacity. Performance issues will make companies backtrack from
the cloud for the next five years. 38.94%
We were surprised with the relatively high consensus reached on this. One Comment on this statement referred to
the Internet being a “bottleneck for cloud services”. We don’t see this as a problem as providers are exceptionally
good at anticipating demand. But it is consumer usage that we should monitor, as that far outweighs the demand by
enterprises.

COPYRIGHT STATEMENT

Copyright © 2011 Logica
All rights reserved. This document is protected by international copyright law and may not be reprinted, reproduced, copied or utilised in
whole or in part by any means including electronic, mechanical, or other means without the prior written consent of Logica.
Whilst reasonable care has been taken by Logica to ensure the information contained herein is reasonably accurate, Logica shall not,
under any circumstances be liable for any loss or damage (direct or consequential) suffered by any party as a result of the contents of
this publication or the reliance of any party thereon or any inaccuracy or omission therein. The information in this document is therefore
provided on an “as is” basis without warranty and is subject to change without further notice and cannot be construed as a commitment
by Logica.

Logica is a business and technology service company, employing 41,000 people. It provides business consulting, systems integration and
outsourcing to clients around the world, including many of Europe’s largest businesses. Logica creates value for clients by successfully
integrating people, business and technology. It is committed to long term collaboration, applying insight to create innovative answers to
clients’ business needs. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG).
Logica More information is available at www.logica.com. The company is a public company incorporated and domiciled in the UK. The address of
its registered office is 250 Brook Drive, Green Park, Reading RG2 6UA, United Kingdom.

cloud@logica.com AUSTRALIA / BELGIUM / BRAZIL / CANADA / CHILE / COLOMBIA / CZECH REPUBLIC / DENMARK / EGYPT / ESTONIA /
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MOROCCO / NETHERLANDS / NORWAY / PERU / PHILIPPINES / POLAND / PORTUGAL / RUSSIA / SAUDI ARABIA / SINGAPORE
www.logica.com / SLOVAKIA / SPAIN / SWEDEN / SWITZERLAND / TAIWAN / UKRAINE / UNITED ARAB EMIRATES / UK / USA / VENEZUELA

CODE: 3977 0112

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