The Road Ahead: Three Years After Cloud First

Purpose

2

Methodology

3

Table of Contents

Respondent Profile 5

Executive Summary 9

Research Findings 11

Current State of Cloud Adoption 12Drivers of Cloud Adoption 19Challenges of Cloud Adoption 22Staffing Challenges 26Procuring the Cloud 30

Final Considerations 35

4

Respondent Profile

5

6%

13%

14%

21%

24%

18%

1%

1%

2%

Other

GS/GM-11

GS/GM-12

GS/GM-13

GS/GM-14

GS/GM-15

Colonel/Captain

General/Admiral

Senior Executive Service

39%

22%

20%

8%

7%

3%

None

1-5

6-20

21-50

51-200

Over 200

Most respondents are senior leaders

6

67%

of respondents are GS/GM-13

or above

60%

of respondents oversee at least

one report

Respondents work largely in operations, finance, and procurement

7

15%

1%

3%

5%

7%

8%

9%

13%

13%

25%

Other

Legislative

Communications andtelecommunications

Facilities, fleet and real estate mgmt.

Human capital

Information technology

Engineering

Acquisitions and procurement

Finance

Operations

▶

8

Most Represented Agencies

Executive Summary

9

Executive summary

10

Research Findings

11

12

The Current State of Cloud Adoption

3 years of cloud mandates

13

Cloud migration no simple task

▶

▶

–

–

–

14

Of 20 cloud migration plans submitted

by agencies to the GAO in 2012…

Only 1 was complete…

11 plans failed to report

performance goals…

And 7 did not include cost

estimates.

GAO Report, GAO-12-756, “Information Technology Reform: Progress Made but Future Cloud Computing Efforts Should be Better Planned,” July 2012.

Managers not entirely familiar with cloud strategies

Don't know

9%

Not familiar 35%

Don't have a cloud strategy

13%

15

Familiar or very familiar

43%

▶

Managers uncertain about agency’s migration strategy

16

Building new cloud

environments 4%

Both 26%

Integrating new and legacy

systems 10%

Other 4%

Don’t know 58%

Migration to cloud still in early stages

49%

22% 19%

10%

10% or less 11-25% 26-50% 51% or more

17

48%

16%

7%

10%

12%

23%

Don't know

We are not using any cloudenvironments

Community

Hybrid

Public

Private

Agencies moving mostly to private clouds

18

▶

19

Drivers of Cloud Adoption

37%

7%

8%

12%

12%

13%

24%

34%

Don't know

None of the above

Increased collaboration

Cloud First strategy

New business capabilities

Improved security

Data center consolidation

Cost savings

Costs, budget reductions driving cloud adoption

20

Security potentially most valuable aspect of cloud technology

21

Other Responses: Increased efficiency: 2.02 Greater accessibility: 2.03

Improved collaboration: 2.04 Greater reliability: 2.06

Increased speed of innovation: 2.13

▶

▶

22

Challenges to Cloud Adoption

Challenges to adoption have not changed, security remains most common issue

23

51%

6%

9%

9%

17%

18%

20%

28%

41%

11%

7%

11%

15%

16%

24%

30% Privacy and security concerns

Current investments in legacy IT systems

Developing a cloud implementation strategy

Lack of a cloud implementation

strategy

Ongoing service costs

Lack of support from senior leadership

Vendor lock in Trouble developing adequate business case

None of the above

Don’t know Don’t know

None of the above

Privacy and security concerns

Current investments in legacy IT systems

Ongoing service costs

Lack of support from senior leadership

Email of least security concern in the cloud

24

Email

Agency performance data

Data analytics

Program/project data

Personal data (employee/patient/civilian

Financial data

Messaging

Customer relationship management

Development and testing

Enterprise resource planning (ERP) systems

Grants

25

Staffing Challenges

▶

Agencies lack staff to execute cloud strategies

26

Yes 32%

No 36%

Don't know 32%

26%

9%

17% 17%

30%

Don't know Other 1-5employees

6-10employees

11-20employees

Most IT departments must hire at least one new employee to execute their cloud strategy

27

31 percent of respondents believe their

agency needs to hire more employees to execute its cloud strategy

Managers feel significant investments in training are necessary

30%

8% 11%

1%

11%

40%

$25,001-$50,000

$10,001-$25,000

$1,001-$10,000

$1,000 orless

OtherDon'tknow

28

45 percent of respondents believe their agency

needs to invest in training to execute its cloud strategy

29

Procuring the Cloud

Agencies use variety of ways to measure ROI

▶

30

Total cost of ownership

Increased flexibility to

control spending

Speed of service delivery

Enhanced operational/ performance control

Enhanced capacity utilization

Dynamic usage

Access to business skills and capability

improvement

None of the above – 13%, Other – 7%;

Risk and compliance improvement

45% 43% 40% 40%

28% 26% 21% 20%

Leaders uncertain of impact of procurement process on cloud adoption

31

▶

▶

Agree 20%

Strongly agree 15%

Strongly agree 15%

Agree 20%

Disagree 12%

Strongly disagree 4%

Don’t know 49%

Cloud brokerages: the solution to procurement woes?

32

▶

▶

▶

▶

▶

Managers mostly unfamiliar with cloud brokerage

16% 12%

10%

17%

22%

13%

18%

10%

58%

Speedprocurement

time

Reduce cloudsprawl

Increaseflexibility/

minimize CSPlock-in

Expandservicedelivery

capabilities

Increaseoperationalcapabilities

Better abilityto manage

vendorrelationships

and costs

Improvedability to

enforce org.security

policies &standards

Enable myagency to run

IT as abusiness

Don't know

33

Final Considerations

34

Final Considerations

35

Underwritten by

36

About GBC

37

The Road Ahead: 3 Years After Cloud First