The 2013 Enterprise Cloud Adoption Survey revealed a series of surprising findings: A majority of enterprises plan migration to public or private cloud for nearly every workload type, including ERP, cloud buying power is concentrating in lines of business (LOB), not the CIO’s office, enterprises increasingly are leaning toward private cloud models, potentially driven by internal “IT marketing”, enterprises are more aware of and more likely to purchase public cloud IaaS from Microsoft compared to other legacy IT service providers, and the “low hanging fruit” of SaaS may already have been picked in the enterprise as LOBs are now moving on, focusing on development of custom apps by function or vertical. This deck is the presentation used during the webinar.

1. April 23, 2013
Have Business Buyers Driven us to the
Cloud Adoption Tipping Point?
Enterprise Cloud Adoption Survey 2013
Live Tweeting #ccevent

2. 2Proprietary & Confidential. © 2013, Everest Global, Inc.
Introductions
Scott Bils
Partner & Next Generation IT Practice
Leader
scott.bils@everestgrp.com
Steve Wylie
General Manager
steve.wylie@ubm.com
Chirajeet Sengupta
Practice Director
chirajeet.sengupta@everestgrp.com

3. 3Proprietary & Confidential. © 2013, Everest Global, Inc.
Context setting
Sources for today’s webinar
Focus of this webinar
 Adoption trends by application workload
 Stakeholder involvement in cloud investments
 Deployment model preferences (private/public) by application workload
 Cloud provider mindshare
 First of its kind
enterprise cloud
adoption tracking
survey
 Fact-based research
focused on
enterprise cloud
market and all layers
of the cloud stack
2013 Enterprise Cloud
Adoption Survey
+

4. 4Proprietary & Confidential. © 2013, Everest Global, Inc.
 Peel back the onion on
adoption patterns
 Identify cloud market trends
and disconnects
 H1 2013 focus: private vs.
public clouds
Why do another cloud survey?
Our goal is to better understand enterprise cloud adoption trends and
dynamics through gaining a 360°view of the market
Survey respondents
Enterprise/Cloud Service
Buyers
Cloud Service
Providers
Consultants/
Advisors
37%
33%
30%
100% = 302

5. 5Proprietary & Confidential. © 2013, Everest Global, Inc.
Key findings from the survey
Future cloud adoption is likely to move closer towards mission critical workloads
However, private clouds are strongly preferred to public cloud models across
stakeholders
Cloud adoption is reaching a critical scale across all workload types
AWS remains the public cloud leader; however, Google, MSFT, Rackspace
are fast catching up
Adoption is increasingly powered by business groups instead of corporate IT
While VMware leads today, many are leaning towards open source
1
2
3
4
5
6

6. 6Proprietary & Confidential. © 2013, Everest Global, Inc.
Do you envision public cloud models
becoming mainstream for enterprise
workloads in the near future?
63%
37%
Yes
No
Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013

7. 7Proprietary & Confidential. © 2013, Everest Global, Inc.
1. Has the cloud reached a tipping point?
A majority of enterprises plan migration to public or private cloud for nearly every
workload type, including ERP
82%
73%
63%
18%
27%
37%
Migration
 None
planned
Migration
 Occurred
 Happening
 Planned
 Web apps/
websites
 E-mail/collaboration
 CRM/marketing
automation
 Development/test
environment
 Custom apps
 ERP (F&A, HCM,
SCM)
 E-commerce/
online tools
 BI/analytics
 Collaboration/CMS
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Mission criticality
“Core”“Edge”
50%
Enterprise cloud migration plans by workload
2013; Percentage of buyer responses

8. 8Proprietary & Confidential. © 2013, Everest Global, Inc.
68%
56% 52%
31%
40% 45%
1% 4% 3%
2. Power continues shifting away from corporate IT to LOB owners
Cloud buying power is concentrating in lines of business, not the CIO’s office. This
holds true for a majority of enterprise workloads
Business users/
Embedded business IT
Corporate IT
 Development/test
environment
 E-mail/collaboration
 Disaster recovery/
storage
 Web apps/websites
 E-commerce/
online tools
 BI/analytics
 Collaboration/CMS
 CRM/marketing
automation
 Custom apps
 ERP (F&A, HCM,
SCM)
Procurement
Primary decision makers for enterprise workloads
2013; Percentage of buyer responses
CIO suite Functional/BU suite CMO suite
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Declining
CIO
influence

9. 9Proprietary & Confidential. © 2013, Everest Global, Inc.
2. The two enterprise cloud buying centers
Growth in adoption of cloud services is creating two distinct, but overlapping,
buying groups in the enterprise
Preferred
cloud models
 Dedicated/
private cloud
models
– On prem
– Hosted
– Managed
 Shared/public
cloud models
– SaaS
– PaaS
– IaaS
 Control
 Security
 Performance
 Scalability
 Integration
 New capabilities
(often vertical or
function-specific)
 Time-to-market
 Flexibility
 Ease of use
Key buying
considerations
Business
Buyers
Corporate
IT
Buying group Description
 Business and
functional
stakeholders
 Embedded line-of
business (LOB)
developers and IT
staff
 CIOs and
centralized
corporate IT staff
– Applications
– Infrastructure

10. 10Proprietary & Confidential. © 2013, Everest Global, Inc.
3. Enterprises have already leveraged SaaS and are moving on
The “low hanging fruit” of SaaS may already have been picked in the enterprise.
LOBs are now moving on, focusing on custom apps by function or vertical
49%
38%
36%
Custom business
applications
ERP – finance &
accounting
BI/analytics 43%
42%
40%
Custom business
applications
ERP – finance &
accounting
BI/analytics
39%
37%
37%
33%
31%
31%
Custom business
applications
BI/analytics
E-commerce and
online tools
Custom vertical
business apps
Custom functional
business apps
ERP – finance &
accounting
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
Banking, financial services, and insurance
Manufacturing, distribution, and retail
Healthcare & life sciences
Technology, telecom, & electronics
Likely future cloud option by workloads
2013; Percentage of buyer responses

11. 11Proprietary & Confidential. © 2013, Everest Global, Inc.
4. Private clouds still the preferred choice
Enterprises still show a preference for private cloud models for most workload
types. Is the trend being driven by internal "IT marketing”?
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013
60% 58% 52%
24% 23%
27%
16% 19% 21%
Public
Private
 Development/test
environment
 E-mail/collaboration
 Disaster recovery/
storage
 Web apps/websites
 E-commerce/
on-line tools
 BI/analytics
 Collaboration/CMS
 CRM/marketing
automation
 Custom apps
 ERP (F&A, HCM,
SCM)
Indifferent
CIO suite Functional/BU suite CMO suite
Marginal decline
in private cloud
bias
Buyer preferences – cloud deployment model
2013; Percentage of buyer responses

12. 12Proprietary & Confidential. © 2013, Everest Global, Inc.
Preference for virtualization technology
Buyer responses (cloud infrastructure
implemented/planned)
47%
19%
18%
9%
6%
VMware
No preference
Microsoft
Hyper-V
Xen
KVM
Preference for cloud platform
Buyer responses (cloud infrastructure
implemented/planned)
VMware
No preference
OpenStack
IBM
SmartCloud
CloudStack
VCE
34%
25%
14%
12%
9%
4%3%
Eucalyptus
5. The cloud infrastructure wars are heating up
While VMware is the current leader, a significant proportion of the market
professes to be platform agnostic, or prefer open source platforms
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey

13. 13Proprietary & Confidential. © 2013, Everest Global, Inc.
6. AWS enjoys leading market share followed by Google and MSFT
However, competition is likely to heat up across several providers
Using
Aware/considering
Not aware/not considering
27%
19% 17%
7% 7% 5% 5% 4% 4% 2%
19% 37% 38%
36%
27%
20%
35% 33%
12%
9%
54%
44% 45%
58%
66%
75%
60% 63%
84% 89%
Leaders
AWS Google MSFT
Contenders
Rackspace AT&T Verizon-
Terremark
IBM HP
Emerging Players
Savvis-
century link
CSC
Mindshare of public cloud providers
2013; Percentage of buyer responses
Source: Everest Group Cloud Connect Enterprise Cloud Adoption Survey 2013

14. 14Proprietary & Confidential. © 2013, Everest Global, Inc.
Do you think the security concerns around
public cloud models are exaggerated?
63%
38%
Yes
No
Source: Live polling conducted during the “Have Business Buyers Driven us to the Cloud Adoption Tipping Point?” webinar on April 23, 2013

15. 15Proprietary & Confidential. © 2013, Everest Global, Inc.
Download 2013 enterprise cloud adoption survey
 Complimentary 23-page survey summary report
 More details in addition to today’s webinar
presentation
 Visit www.everestgrp.com/ccevent to download
 Learn more about Cloud Vista
 Cloud Connect Chicago | October 21-24 | McCormick
Place
 Call for submission now open
 Join the mailing list to be informed when registration
opens
 Visit http://www.cloudconnectevent.com/chicago/

16. 16Proprietary & Confidential. © 2013, Everest Global, Inc.
Q&A
To ask a question during the Q&A session
 Click the question mark (Q&A) button located on right side of your screen. This opens Q&A
 Be sure to keep the default set to “send to All Panelists”
 Type your question in the box at the bottom of the Q&A box and click the send button
 Attendees will receive an email with instructions for downloading today’s presentation
 To contact the presenters:
– Scott Bils, scott.bils@everestgrp.com, @sbils
– Steve Wylie, steve.wylie@ubm.com, @swylie650
– Chirajeet Sengupta chirajeet.sengupta@everestgrp.com
Websites
www.everestgrp.com
research.everestgrp.com
Twitter
@EverestGroup
@Everest_Cloud
Blogs
www.sherpasinblueshirts.com
www.gainingaltitudeinthecloud.com
Stay connected

17. 17Proprietary & Confidential. © 2013, Everest Global, Inc.
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