Digital Transformation:Powered by Cloud

William Fellows Co-founder, VP Research

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Agenda

How are enterprises being disrupted?

Technology is an accelerant

“What’s in it for me?”

Securing your future

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Agenda

How are enterprises being disrupted?

Technology is an accelerant

“What’s in it for me?”

Securing your future

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So where’s the cloud

app?

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How can I respond?

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Social, mobile, global, local all have implications for data connectivity

Financial Services

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Social, mobile, global, local all have implications for data connectivity

“Our busiest branch… is the 7:01 from Reading 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

Manufacturing

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Products Services

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Sell Tractors Revenue at saleProduct-centric

Deliver ServicesOngoing revenueService-centric

PredictiveMaintenance

SoilAnalysis

Weather

YieldForecast

MachineData

Business Imperatives for Digital Transformation

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Which of the following best describes your company’s status with regards to a digital transformation effort?

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451 Research Voice of the Connected User Landscape, April 2016

Digital Transformation

Agenda

How are enterprises being disrupted?

Technology is an accelerant

“What’s in it for me?”

Securing your future

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IT as a Differentiator

Best Venue for IT

Mobile Endpoints + ‘Things’

Old Style of IT

IT as a Cost Center

On-Premises IT

PC Endpoints

New Style of IT

Converged InfrastructureServer, Network, Storage Silos

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Digital Transformation – Powered by Cloud

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• 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

2006

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2016

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% of Workloads Running in Cloud

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CLOUD COMPUTING

Q4 2015

We expect cloud

computing to be:

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“Cloud First”

Frequency

Source: 451 Research, Voice of the

Enterprise: Cloud, Workloads and Key

Projects 2016

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

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Agenda

How are enterprises being disrupted?

Technology is an accelerant

“What’s in it for me?”

Securing your future

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CLOUD COMPUTING

Q4 2015

Q4. Which of the

following types of

cloud services, if any,

does your organization

currently use?

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Cloud

Computing

Services Usage

Source: 451 Research, Voice of the

Enterprise: Cloud, Workloads and Key

Projects 2016

Hybrid cloud is becoming the standard

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Commissioned by HPE; n=1255

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%

“Right Mix” emerging?

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Commissioned by HPE; n=1255

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Under pressure

Grow margins in

commoditsing

market

Address the

enterprise

Bond to networks

Move beyond

connectivity

Declining legacy

revenue

New competitive

arenas

Retain customer

relationships as

global players

move in

Take advantage of

regionality/

sovereignty

Deliver low-margin

IaaS and upsell

higher value

services

Margin business

requires scale

It’s all about

consumption not

the license

Need to bond to

the network

Smaller deals

available

Resource model

limitations

Stagnant margin

growth

Grow viable

ecosystems

Recognition in the

enterprise

NSP competition

Hyperscalers Telcos/NSPsRegional Providers

Resellers,distributors,

managed services

EnterpriseTechnology

Vendors

Systems Integrators,Outsourcers

Dacatenter, co-lo operators

Global IaaS

Price

Self-Service

PAYG

Exportestablishedmodel, MRR

consumption-based

Broad language support,

targeted, data sovereignty

Managed services, channel reach,distribution at

scale

Platform, OS, technology

“Me Too!” IaaS

Blended in-house and multi-vendor

offerings

Service integration

Proximity benefits of ecosystem,

Interconnection hubs

AWS

Google

Microsoft

Aliyun

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

At the end of the beginning…..

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Telcos/NSPs Regional ProvidersResellers,

distributors, managed services

EnterpriseTechnology

Vendors

Systems Integrators,Outsourcers

Dacatenter, co-lo operators

Move beyond connectivity

Declining legacy revenue

Retain relationships as global players

arrive

Deliver low-margin 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 viableecosystems

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

The Rise of the Cloud Service Broker

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Opportunity = Beyond InfrastructureWhat percent of your HOSTING & CLOUD SERVICES budget in is allocated

to the following services? n=1600

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Infrastructure Hosting

29%

Managed Services

22%

Application Hosting27%

Security Services23%

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

Services need to unburden enterprises

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Managed Security

Analytics as a Service

Multi-Cloud Services

Backup and Recovery

Interconnection / Networking

Storage as a Service

Disaster Recover

CLOUD COMPUTING

Q4 2015

Q12. What is your

organization's most

common type of

application

deployment for cloud

computing?

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Cloud Application

Deployment

Source: 451 Research, Voice of the

Enterprise: Cloud, Workloads and Key

Projects 2016

▪ Best Execution Venue

▪ Global/local

▪ Value-add services

▪ Cost-Optimization

▪ On-boarding, integration

▪ Speed

▪ Remove service complexity

▪ Consolidated billing

▪ Easy resolution

CloudServiceBroker

Private Public

Public

User

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Visualising

Cloud service

broker

Blueprinting,

provisioning

Advisory

& planning

Transformation

engine

Security & governance 42

Consumption

management,

optimization

Cloud

Management

Platform

Monitoring

Cloud Transformation

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NA: $338

EMEA: $360

APAC: $384

LATAM: $415

A Simple Application

7%

14%

38%

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Agenda

How are enterprises being disrupted?

Technology is an accelerant

“What’s in it for me?”

Securing your future

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

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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)

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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”

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What Service Providers Must Do

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Transform…

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Thank You

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