rightscale 2017 state of the cloud

2017 STATE OF THE CLOUD

• David Redmond

• Director Sales Development

• Kim Weins

• VP Marketing

Panelists

• Survey Methodology

• Cloud Adoption

• Central IT Role in Cloud Adoption

• Cloud Benefits and Challenges

• DevOps Adoption

• Cloud Providers

Agenda

• 68,110 people from the RightScale database were emailed

the survey

• 1002 responses

• 485 (48%) are 1000+ employees (Enterprises)

• 3.07% margin of error

• Respondents are not just RightScale users

• 20% are RightScale users

Methodology

48%

21%

31%

Respondents by Company Size 1002 respondents

Company Size

1001+

employees

101-1000

employees

1-100

employees

Source: RightScale 2017 State of the Cloud Report

27%

22%

16% 9%

6%

5%

5%

4%

3% 3%

Respondents by Industry 1002 respondents

Industry

Software

Tech Services

Financial Services

Other

Media & Publishing

Education

Business Services

Source: RightScale 2017 State of the Cloud Report

Hardware

Telecom

Healthcare

61% 20%

14%

5%

Respondents by Region 1002 respondents

Region

North America

Source: RightScale 2017 State of the Cloud Report

Europe

APAC

Rest of World

39%

13% 15%

33%

Role of Respondents 1002 respondents

Role of Respondents

Dev

Business

IT/Ops 26%

23% 14%

10%

8%

8%

11%

Level of Respondents 1002 respondents

Architect

Dir/Mgr

Exec

IT/Ops

Dev/QA

Other

Source: RightScale 2017 State of the Cloud Report Source: RightScale 2017 State of the Cloud Report

Cloud Architect

DevOps

Cloud Maturity

6% 14% 22% 25% 33%

Cloud Maturity of Respondents

Cloud

Watchers

Cloud

Beginners

Cloud

Explorers

Cloud

Focused

No

Plans

Planning First project Apps running Heavy use

Source: RightScale 2017 State of the Cloud Report

Finding:

Enterprises Want More

Public and Hybrid Cloud;

Private-Only Strategy Wanes

85% of Enterprises Want Multi-Cloud

Single private 5%

Single public 9%

No plans 1%

Multiple private 7%

Multiple public 20%

Hybrid cloud 58%

Enterprise Cloud Strategy 1000+ employees

Multi-Cloud

85%

Source: RightScale 2017 State of the Cloud Report

Enterprise Private Cloud Strategies Wane

3%

1%

6%

5%

9%

9%

16%

20%

11%

7%

55%

58%

2016

2017

Enterprise Multi-Cloud Strategy 2017 vs. 2016

No plans Single private Single public Multiple public Multiple private Hybrid cloud

Source: RightScale 2017 State of the Cloud Report

95% of Respondents Are Using Cloud

Public Cloud

Only

Private Cloud

Only

95% of Respondents Are Using Cloud

67% 5% 22% Hybrid

Source: RightScale 2017 State of the Cloud Report

Private = 72% Public = 89%

88%

63% 58%

93% 89%

77% 71%

95% 89%

72% 67%

95%

Public Cloud Private Cloud Hybrid Cloud Any Cloud

Respondents Adopting Cloud 2017 vs. 2016

2015

2016

2017

Private Adoption Falls in 2017

Source: RightScale 2017 State of the Cloud Report

# of Clouds Used Public Clouds

All public cloud

users

Private Clouds All private cloud

users

Running applications 1.8 2.3

Experimenting 1.8 2.1

Total 3.6 4.4

Average # of Clouds for Cloud Users

Source: RightScale 2017 State of the Cloud Report

39%

27%

23%

10%

50%

29%

9% 10%

Leverage hybridcloud

Use public cloud Build privatecloud

Use hostedprivate cloud

Top Priority for Enterprise Central IT

2016

2017

Building Private Cloud Falls Out of Favor

Source: RightScale 2017 State of the Cloud Report

Finding:

Majority of Workloads are in

Public or Private Cloud

41%

38%

21%

% Workloads in Cloud

Workloads in Cloud – All Respondents

Private Cloud

Source: RightScale 2017 State of the Cloud Report

Public Cloud

Non Cloud

32%

43%

25%

% Enterprise Workloads in Cloud

Workloads in Cloud – Enterprises

Private Cloud

Source: RightScale 2017 State of the Cloud Report

Public Cloud

Non Cloud

50%

33%

17%

% SMB Workloads in Cloud

Workloads in Cloud – SMB

Private Cloud

Source: RightScale 2017 State of the Cloud Report

Public Cloud

Non Cloud

Finding:

Central IT is Stepping Up

Its Role in Cloud

Central IT Stepping Up Cloud Role

48%

49%

49%

52%

51%

55%

55%

54%

54%

55%

58%

59%

63%

63%

65%

Manage all cloud deployments

Broker cloud services

Manage/optimize costs of cloud

Set policies for cloud use

Build private cloud

Select private clouds

Decide/advise on which apps go to cloud

Select public clouds

2017

2016

Not asked in 2016

Enterprise Central IT View of Role

Source: RightScale 2017 State of the Cloud Report

Central IT Wants Control, BUs Not So Sure

35%

40%

34%

41%

38%

38%

45%

41%

54%

54%

55%

58%

59%

63%

63%

65%

Manage all cloud deployments

Broker cloud services

Manage/optimize costs of cloud

Set policies for cloud use

Build private cloud

Select private clouds

Decide/advise on which apps go to cloud

Select public clouds

Works in Central IT

Works in Business Unit

Enterprise Views of Role of IT in Cloud

Source: RightScale 2017 State of the Cloud Report

Finding:

More Cloud Users Gain Speed

from Cloud Adoption

38%

37%

39%

39%

39%

41%

52%

52%

58%

62%

34%

35%

38%

38%

40%

40%

51%

56%

61%

62%

IT staff efficiency

Cost savings

Move CapEx to OpEx

Higher performance

Geographic reach

Business continuity

Faster time-to-market

Higher availability

Greater scalability

Faster access to infrastructure

Cloud Benefits 2017 vs. 2016 % of Respondents Reporting These Benefits

2017

2016

Cloud Benefits Level Out in 2017

Source: RightScale 2017 State of the Cloud Report

Finding:

Spend, Security and Resources

Tie for Top Challenge

15%

24%

26%

23%

26%

26%

29%

32%

11%

19%

22%

23%

23%

25%

25%

25%

Performance

Complexity of building a private cloud

Managing multiple cloud services

Governance/control

Compliance

Managing cloud spend

Security

Lack of resources/expertise

Cloud Challenges 2017 vs. 2016

2017

2016

Cloud Challenges Decline Overall

Source: RightScale 2017 State of the Cloud Report

41%

2015

Central IT Concerns About Security Decline

37%

2016

Enterprise Central IT Rating Cloud Security

as Significant Challenge

Source: RightScale 2017 State of the Cloud Report

35%

2017

Place Cloud Beginners Cloud Explorers Cloud Focused

#1 Security (32%) Lack of resources/expertise

(28%)

Managing costs (24%)

#2 Building a private cloud

(28%)

Managing costs (27%) Compliance (22%)

#3 Managing costs (25%) Security (27%) Lack of resources/expertise

(21%)

#4 Lack of resources/expertise

(25%)

Governance/Control (25%) Security (19%)

#5 Compliance/Governance/Co

ntrol (25%)

Managing multiple cloud

services (24%)

Governance/Control (19%)

Cost Challenges Increase with Maturity

Top 5 Challenges Change with Cloud Maturity

Source: RightScale 2017 State of the Cloud Report

18%

2015

Mature Cloud Users Worry More About Costs

18%

2016

Cloud Focused Companies

Rating Cost as Significant Challenge

Source: RightScale 2017 State of the Cloud Report

24%

2017

Finding:

Saving Money on Cloud

Is a Big Opportunity

30%

15%

% of Cloud Spend Wasted

Cloud Users Underestimate Wasted Spend

Source: RightScale 2017 State of the Cloud Report

Self-Estimated

Wasted Spend

Additional

Wasted Spend Measured

by RightScale

3%

16%

19%

20%

23%

33%

30%

30%

31%

45%

4%

15%

20%

24%

25%

31%

33%

35%

38%

52%

Use Google Preemptible VMs

Use AWS Spot Instances

Move workloads to cheaper cloud/region

Select cloud or region based on cost

Track AWS RIs to make sure they are used

Purchasing AWS RIs

Look for storage volumes not in active use

Shut down workloads during certain hours

Automate shut down of temporary workloads

Monitor utilization and rightsize instances

How Companies are Optimizing Cloud Costs

2017 2016

Companies Increase Focus on Cloud Costs

Source: RightScale 2017 State of the Cloud Report

Finding:

Optimizing Costs Becomes

Leading Initiative

24%

30%

38%

38%

40%

42%

52%

53%

Expanding private clouds we use

Enabling IT to broker multiple cloud services

Expanding use of containers

Implementing CI/CD in the cloud

Implementing a cloud first strategy

Expanding public clouds we use

Moving more workloads to cloud

Optimizing existing cloud use (cost savings)

Cloud Initiatives in 2017

Cost Optimization Is Top Initiative in 2017

Source: RightScale 2017 State of the Cloud Report

Place Cloud Beginners Cloud Explorers Cloud Focused

#1 Move more workloads to

cloud (51%)

Optimizing existing cloud

use/cost savings (65%)

Optimizing existing cloud

use/cost savings (64%)

#2 Implement a cloud first

strategy (45%)

Move more workloads to

cloud (65%)

Expand public clouds we

use (51%)

#3 Optimizing existing cloud

use/cost savings (44%)

Expand public clouds we

use (46%)

CI/CD in the cloud (51%)

#4 Enable IT to broker cloud

services (37%)

Expand use of containers

(43%)

Expand use of containers

(50%)

#5 Expand public clouds we

use (35%)

CI/CD in the cloud (41%) Move more workloads to

cloud (49%)

2017 Initiatives Depend on Cloud Maturity

Top 2017 Initiatives by Cloud Maturity

Source: RightScale 2017 State of the Cloud Report

Finding:

Docker Shoots into the Lead

Kubernetes Doubles

Strong Growth in DevOps Adoption in 2017

74%

78%

16%

15%

10%

7%

2016

2017

DevOps Adoption Up in 2017

Adopting DevOps Not adopting Don't Know

Source: RightScale 2017 State of the Cloud Report

Enterprises Adopt DevOps at Even Higher Rate

72%

84%

21%

9%

7%

7%

SMB

Enterprise

Enterprise vs. SMB DevOps Adoption

Adopting DevOps Not adopting Don't Know

Source: RightScale 2017 State of the Cloud Report

29%

31%

21%

27%

28%

30%

Adopting for projects or teams

Adopting for BUs or Divisions

Adopting company-wide

Enterprise Adoption of DevOps

2017

2016

More Enterprise-Wide Adoption

Source: RightScale 2017 State of the Cloud Report

2%

3%

5%

7%

9%

14%

21%

28%

28%

35%

10%

8%

12%

16%

11%

22%

15%

16%

17%

32%

Docker Tutum

Rancher

Mesosphere

Docker Swarm

Salt

Kubernetes

Ansible

Puppet

Chef

Docker

Respondents Using DevOps Tools

Use today

Plan to use

2017 DevOps Tools – All Respondents

Source: RightScale 2017 State of the Cloud Report

2%

4%

6%

9%

7%

20%

32%

32%

27%

3%

5%

7%

9%

14%

21%

28%

28%

35%

Rancher

Mesosphere

Docker Swarm

Salt

Kubernetes

Ansible

Puppet

Chef

Docker

Respondents Using DevOps Tools

2017

2016

DevOps Tools YoY – All Respondents

Source: RightScale 2017 State of the Cloud Report

8%

11%

35%

18%

28%

27%

Google GKE

Azure Container Service

AWS ECS

Respondents Using Cloud CaaS

Use today

Plan to use

Use of Cloud CaaS is Strong

Source: RightScale 2017 State of the Cloud Report

Finding:

AWS Penetration Flat

Azure Reaches 60% of AWS

Google Cloud Also Shows Strong

Growth

2%

3%

8%

15%

34%

57%

5%

7%

9%

17%

21%

17%

4%

8%

8%

13%

12%

10%

DigitalOcean

Oracle Cloud

IBM

Google Cloud

Azure

AWS

Public Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Public Cloud Adoption – All Respondents

Source: RightScale 2017 State of the Cloud Report

5%

4%

7%

10%

20%

57%

2%

3%

8%

15%

34%

57%

DigitalOcean

Oracle Cloud

IBM

Google Cloud

Azure

AWS

Public Cloud Adoption 2017 vs. 2016 % of Respondents Running Applications

2017

2016

Public Cloud Adoption YoY – All Respondents

Source: RightScale 2017 State of the Cloud Report

11%

12%

12%

14%

14%

15%

18%

21%

21%

22%

23%

26%

26%

27%

32%

35%

18%

18%

13%

12%

22%

12%

17%

12%

12%

14%

17%

11%

14%

13%

11%

14%

16%

15%

16%

15%

19%

12%

12%

14%

13%

15%

11%

12%

15%

10%

11%

12%

Machine Learning

IoT Services

Function-as-a-Service

DRaaS

Container-as-a-Service

Stream Processing

Hadoop

Search

Batch

Data Warehouse

No SQL DBaaS

Queuing

Mobile Services

Caching

Push Notifications

Relational DBaaS

Public Cloud Services Used % of Respondents

Use today

Experimenting

Plan to use

Public Cloud Services Used – All Respondents

Source: RightScale 2017 State of the Cloud Report

Finding:

Private Cloud Adoption Flattens

8%

14%

15%

16%

19%

20%

42%

8%

15%

10%

9%

11%

16%

7%

6%

13%

7%

8%

8%

9%

6%

CloudStack

Microsoft Azure Pack/Stack

Bare-Metal Cloud

Microsoft System Center

VMware vCloud Suite

OpenStack

VMware vSphere/vCenter

Private Cloud Adoption % of Respondents Running Applications

Running apps

Experimenting

Plan to use

Private Cloud Adoption – All Respondents

Source: RightScale 2017 State of the Cloud Report

13%

9%

15%

13%

19%

19%

44%

8%

14%

15%

16%

19%

20%

42%

CloudStack

Microsoft Azure Pack/Stack

Bare-Metal Cloud

Microsoft System Center

VMware vCloud Suite

OpenStack

VMware vSphere/vCenter

Private Cloud Adoption 2017 vs. 2016 % of Respondents Running Applications

2017

2016

Private Cloud Adoption YoY – All Respondents

Source: RightScale 2017 State of the Cloud Report

Finding:

VMware and AWS Have More VMs

10%

16%

19%

35%

37%

13%

2%

5%

4%

8%

14%

7%

2%

3%

2%

7%

13%

10%

2%

3%

3%

7%

8%

4%

2%

3%

8%

13%

IBM

OpenStack

Google Cloud

Azure

AWS

VMware vSphere

Number of VMs in Cloud % of Respondents

1-50 51-100 101-500 501-1000 1000+

# of VMs in Cloud – All Respondents

Source: RightScale 2017 State of the Cloud Report

14%

16%

16%

34%

29%

12%

3%

5%

7%

11%

15%

7%

2%

2%

4%

9%

15%

12%

3%

2%

4%

6%

10%

13%

2%

3%

6%

6%

13%

23%

IBM

Google Cloud

OpenStack

Azure

AWS

VMware vSphere

Number of VMs in Cloud - Enterprise % of Respondents

1-50 51-100 101-500 501-1000 1000+

# of VMs in Cloud – Enterprise

Source: RightScale 2017 State of the Cloud Report

7%

22%

17%

36%

43%

14%

2%

3%

4%

5%

12%

7%

2%

3%

4%

12%

8%

4%

3%

4%

5%

IBM

Google Cloud

OpenStack

Azure

AWS

VMware vSphere

Number of VMs in Cloud - SMB % of Respondents

1-50 51-100 101-500 501-1000 1000+

# of VMs in Cloud – SMB

Source: RightScale 2017 State of the Cloud Report

• Full 2017 State of the Cloud Report

• www.rightscale.com/state-of-cloud-2017

Q&A