magic_quadrant_for_cloudenab_268959 (3)

G00268959

Magic Quadrant for Cloud-Enabled ManagedHosting, EuropePublished: 30 June 2015

Analyst(s): Tiny Haynes, Gianluca Tramacere, Gregor Petri, Andrew Watson

Cloud-enabled managed hosting services are continually being evolved inEurope to meet the demands of data sovereignty and more agilecomputing. Infrastructure managers need to choose their vendor partnerwith great care in order to get the optimum service for their individualrequirements.

Market Definition/DescriptionThe European marketplace consists of 28 member states of the European Union. Each memberstate has its own interpretation of the EU rules on data privacy, as well as separate languages andcultures. The scope of this Magic Quadrant focuses primarily on the European marketplace,incorporating the top six countries by GDP (Germany, U.K., France, Italy, Spain and theNetherlands). In each of these countries, customers prefer their languages to be supported, as wellas service providers to have a data center presence in their countries to address data sovereigntyconcerns. Some providers in this Magic Quadrant take the approach of having data centers in eachof the major hubs within Western Europe, while others prefer a more decentralized, global deliveryapproach. This Magic Quadrant focuses on multinational as well as domestic service providers thathave achieved a significant market share in one or more European countries.

Cloud-enabled managed hosting (CEMH) is a standardized, productized hosting offering thatcombines a cloud-enabled system infrastructure (CESI) platform — consisting of a pool of compute,network and storage hardware — with cloud management platform software to facilitate self-serviceand rapid provisioning, with managed services. The infrastructure platform should be located in aservice provider's data center, and requires the use of a standardized deployment across all serviceprovider customers and leverages a single codebase. At minimum, a service provider must supplyserver OS management services, including guest OS instances if virtualization is used. The providermust also supply other managed and professional services relating to the deployment and operationof the infrastructure, such as security services, patching, backup, load balancing, and optionalapplication management for database and middleware. All services should be available tocustomers with the option to take some or all.

For a more detailed overview of cloud-enabled managed hosting, see "Technology Overview forCloud-Enabled Managed Hosting."

Increasingly, Gartner is witnessing more vendors in this sector offering support and managementservices for public clouds (either internal platforms or third parties) as part of their overall hostingsolutions. This hybrid approach gives the customers more flexibility to buy public infrastructure as aservice (IaaS), private IaaS fulfilled within the vendor's own data center(s) and colocation managedthrough a single portal. Data sovereignty still remains a challenge for some of the larger public IaaSproviders; therefore, it is not unusual for CEMH vendors to support multiple IaaS providers withdifferent geographical spread of data centers.

Cloud-enabled managed hosting has limited customization and is sold on a stand-alone basis, withno requirement to bundle it with other services, such as application development, applicationmaintenance, database administration and data center outsourcing (DCO) services.

Customers of cloud-enabled managed hosting must be able to access a self-service interface afterinitial installation, although it may be different from the platform interfaces used internally by theprovider. A service provider can potentially intervene in the self-service workflow to manuallyapprove, deny or alter the customer's requests — as long as the provisioning requested is fulfilled ina fully automated manner thereafter. Managed services (such as OS backups, patching andmonitoring) must be available to the customer — preferably monthly or daily, but, at a maximum, nolonger than the commitment term for the underlying compute resources.

Although this Magic Quadrant focuses on the enterprise-class, cloud-enabled managed hostingmarket, offerings and revenue presented on more traditional, dedicated server infrastructure havebeen included. This is to reflect the emerging nature of the cloud approach in Europe, which is sometwo years behind North America in adoption, which is seen as the most advanced in hostingservices. Such delivery models include:

■ Multitenant, provider premises: Compute, storage and networking hardware is shared amongmany customers, and is housed in the service provider's facilities and fully managed by theprovider. This is the most common use case, and also encompasses cloud IaaS offerings wherethe provider offers management of guest OS instances.

■ Single-tenant, provider premises: Compute and storage hardware is dedicated to onecustomer (versus used by many customers), and is housed in the service provider's facilities.

In addition to server OS management, optional managed and professional services related toinfrastructure operations may be offered, such as:

■ Management of infrastructure software at the middleware or persistence layer, such as Webserver software, application servers and database servers

■ Management of storage, including backup and recovery

■ Management of host-based and network-based security functions

■ Management of network devices, such as application delivery controllers

■ Professional services associated with hosting, such as architecture consultation, capacityplanning, performance testing, security auditing and data center migration

■ Management of workloads on public IaaS, either in-house or fulfilled through a third party

of 28 Gartner, Inc. | G00268959

Cloud-enabled managed hosting services must be available to customers with shorter-termcommitments measured in months versus traditional managed hosting measured in years. Whilecustomers may opt for longer-term contracts (one to three years) in order to secure greater overalldiscounts, this is solely at the customers' discretion. Ultimately, cloud-enabled managed hostingmust afford customers the ability to change the amount of capacity in use without any contractadditions or modifications.

Use Cases Covered by This Evaluation

This Magic Quadrant focuses on the following common use cases, independent of the type or typesof infrastructure used to serve these workloads:

■ E-business hosting for digital marketing websites, e-commerce websites, SaaS, socialwebsites and similar modern online properties and applications. These workloads are oftencomplex, and are associated with a high rate of change in systems and applicationinfrastructure.

■ Web-based business application hosting for corporate intranets and Web-based applicationsdelivered to users primarily within the enterprise. The applications may be commercial softwareor in-house-developed applications; workloads are often relatively static, and do not have ahigh rate of change.

■ Enterprise application managed hosting for the infrastructure underlying large commercialsoftware applications, such as those of Oracle and SAP. These workloads are often complex,with individual requirements, and require specialized knowledge to operate optimally, but do nothave a high rate of change. CEMH providers usually provide support for single instances ofthese applications, most commonly associated to a Web presence. Support for a fullyintegrated platform of multiple ERP, CRM and other enterprise applications falls out of thescope of this Magic Quadrant.

All three use cases are typically tactical sourcing decisions that center around one application or asingle group of closely related applications (such as everything associated with an enterprise'svideo portal). They are typically best-served by a best-of-breed provider that has strong operationalexpertise with similar solutions. However, many customers expand their use of hosting over time,and the choice of a provider may become a strategic decision for a customer.

In the cloud-enabled managed hosting market, it is difficult to find a provider that excels in all theareas mentioned above, as well as in certain countries within the EU as mentioned previously;providers may be leaders in some delivery areas, but may lag behind in others. Additionally, smallerproviders may do one thing extraordinarily well, but may not have a comprehensive set of servicesor the geographic reach that enables them to address a broad array of use cases. As a result, it isimportant to match your use case with a vendor that excels in meeting your particular functionaland geographic needs.

It is also crucial to note that this Magic Quadrant shows the overall position of a vendor in thecloud-enabled managed hosting and traditional managed hosting markets specifically, which canimpact potential revenue figures for inclusion, and does not consider a provider's strength in other

Gartner, Inc. | G00268959 of 28

adjacent delivery areas in IT services (although this may be referenced in the vendor profiles).Therefore, it is crucial to look beyond just the placement of the vendors in this Magic Quadrantduring your evaluation and selection, as your individual needs may be best-serviced by vendors inthe Leaders quadrant, as well as by the Niche Players, especially if you have an unusual need.

Magic QuadrantFigure 1. Magic Quadrant for Cloud-Enabled Managed Hosting, Europe

Source: Gartner (June 2015)


Vendor Strengths and Cautions

Atos

Atos is selling its cloud services under the Canopy brand. Canopy originally was positioned as ajoint venture with EMC and VMware both owning an undisclosed minority stake, but recently,Canopy was repositioned as an Atos operating company, with EMC and VMware now havingtransferred their stake to Atos. Customers wanting to procure any higher-level servicesincorporating Canopy's services typically do so via Atos, which, as a result, is by far (over 90%) thebiggest consumer of Canopy services.

European Data Center Presence: France, Germany, the Netherlands, U.K.

Strengths

■ In addition to a wide European footprint, Atos has a strong portfolio of data-center-managedservices and expertise in system integration and consulting that enables integration of multipledelivery models (CEMH, traditional hosting, DCO/infrastructure utility services [IUS]).

■ Atos' capability in supporting multiple applications, including mission-critical applications andoperating systems, allows it to offer more managed services for noncommodity enterpriseapplications than traditional Web-hosting providers.

Cautions

■ Despite solid growth in the (substantial) Atos installed base, the market traction and brandrecognition of its cloud brand Canopy has so far been lower than expected, especially outsidethe mentioned installed base.

■ More than other providers, Atos has separated its cloud platform offering from its managedservices offerings. This leaves the task of navigating the middle ground (cloud-enabledmanaged hosting) that lies between Canopy's more self-service-oriented product offerings andAtos' more outsourcing-oriented managed services portfolio to Atos' sales and presales teams.

Attenda

Attenda is a U.K.-based managed hosting and cloud service provider that focuses on runningcritical business applications. Attenda provides both colocation (through its partnership withDatum), infrastructure and application hosting through its own platform, as well as managingservices on Amazon Web Services (AWS). Its approach as a business outcome service allows it tooffer highly customized services based on its own methodology and product set, yet tied to clientbusiness success. The vendor offers hosting of e-business and e-commerce sites, and businessapplications from SAP, Oracle and Microsoft. Its customer base includes midsize and largecompanies that share Attenda's focus on the U.K. market, which is one of the largest in Europe.

European Data Center Presence: Germany, U.K.


Strengths

■ Attenda takes a high-touch approach to managed hosting, with dedicated teams andindividuals assigned to establish direct relationships with customers. This leads to customerswho are generally enthusiastic about the offering, and who describe the relationship withAttenda as a partnership more than a formal contractual relationship. This is further underlinedby the lowest churn rate of all the included vendors in this Magic Quadrant.

■ Apart from hosting business-critical, custom-made and Web-facing systems (such as hotelreservation and e-commerce sites), Attenda also hosts the back-end SAP systems for many ofits customers, and can — in cooperation with a consulting partner — deliver a subscription-based SAP Business All-in-One offering.

■ The vendor's customized approach allows it to be very adaptable to individual businessrequirements, with the ability to use resources from multiple third parties for areas such asspecialist applications and commoditized IaaS.

■ By offering a managed service layer on AWS, Attenda can provide a flexible hybrid model to itscustomers.

Cautions

■ The high-touch model, although highly appreciated by customers, can prove more difficult interms of keeping up with market growth than more productized (off-the-shelf)-type offerings.

■ Attenda's low growth rate for CEMH, in comparison to other vendors, demonstrates focus onmore complex system integration than stand-alone CEMH.

■ Attenda has a presence mainly in the U.K., with its portals and support being solely in English.Wider European support is limited to a small presence in a Frankfurt data center.

■ Attenda's customized approach doesn't allow complete automation, and, thus, does not allow itto offer the discounted prices being offered by other service providers.

BT Global Services

BT Global Services — part of BT Group — is a provider of managed network, communications andIT services, with a global footprint and a continued strong focus on meeting the specific needs ofvertical industries. It competes by targeting BT's existing networking, communications, security andcontact center customers by offering access to its cloud services at no incremental network cost,and also targeting European multinational corporations (MNCs) with service requirements stretchingbeyond Europe.

European Data Center Presence: France, Germany, Italy, Spain, the Netherlands, U.K.


Strengths

■ BT's go-to-market strategy is to provide choice and connected control. It has rolled out itscloud solutions to 20 delivery locations in 18 countries on five continents now, in addition tostrong connectivity to third-party data centers and cloud providers.

■ In conjunction with its vertical-solution focus (reaching beyond pure infrastructure services), thecompany has been expanding its automated delivery capabilities through its upgraded andenhanced Cloud Management System (CMS) 4.0 capabilities.

■ By positioning itself as a cloud service integrator for customers wanting to explore thepossibilities of cloud computing, BT can leverage its corollary professional capabilities, BTAdvise and BT Assure, under its "Cloud of Clouds" value proposition.

Cautions

■ Customers need to understand how BT's continued transformation from a generic aspiring IaaSprovider, to a more vertical-focused cloud solution provider and subsequently to a potentialpartner in cloud adoption and transition, matches their current plans and requirements.

■ BTs cloud management solution (CMS 4.0) offers advanced business and bundling capabilitiesthat go beyond the platforms of most of its competitors; but it is largely built on commercial(non-open-source or in-house-developed) software, which can negatively impacts BT's ability tobe price-competitive against those vendors that have far more internally developed platforms.

CenturyLink

CenturyLink is a large global telecommunications provider operating data centers in North America,Europe and the Asia/Pacific region. The vendor offers cloud-enabled managed hosting on aVMware-based platform, and can also provide data center colocation services and traditionalmanaged hosting. CenturyLink supports customers in English, and can provide managed servicesfor Linux, Windows, Solaris, HP-UX and AIX OSs (although Solaris, HP-UX and AIX support existsoutside of the vendor's cloud-enabled managed hosting offering).

European Data Center Presence: Germany, U.K.

Strengths

■ CenturyLink has historically supported a broad range of infrastructure requirements for clients,including a wide range of support for database and middleware stacks, and application supportthrough the vendor's acquisition of the IT outsourcing arm of Ciber in 2012.

■ CenturyLink has a clear strategy in investing in verticalization, providing a strong go-to-marketproposition for sectors such as financial services and insurance, retail, media, and travel andtransport.

■ CenturyLink has long had a highly comprehensive self-service portal, which covers all theproducts that it sells (including network services). New investment into this portal allows


management of in-house public and private cloud and managed services, as well as some viewof colocation through one single interface.

Cautions

■ Occasionally, Gartner clients report inconsistent customer service levels for CenturyLink.CenturyLink is working to improve these service levels.

■ CenturyLink's rebranding from Savvis has caused a loss of brand equity in the Europeanmarket, where CenturyLink is a relatively unknown entity among domestic audiences. Work isunderway to promote the CenturyLink brand.

■ CenturyLink has a limited hosting sales presence across Europe, largely focusing on the U.K.and Germany.

Claranet

Claranet is a Pan-European network and managed hosting provider with a presence in multiplecountries, including the U.K., France, Germany, and the Iberia and Benelux regions. It offerscolocation, hosting, network and application services to midtier companies from data centerslocated in the previously mentioned regions. Claranet also provides management for AWS, allowingit to offer a truly hybrid model.

European Data Center Presence: France, Germany, Portugal, Spain, the Netherlands, U.K.

Strengths

■ Claranet has introduced agile process teams to complement its ITIL teams in order to meet theincreased demand for more flexible hosting of Web-based applications.

■ The vendor offers fully regionalized business units comprising sales, marketing and technicalsupport. This is especially attractive to markets that are sensitive to local sales, datasovereignty and technical support.

■ Claranet is one of the few providers starting to offer loss-of-business clauses on top of thestandard SLAs, bringing it more in line with the IT outsourcers that sit at the periphery of thismarket area.

■ Hosting is becoming a more important part of Claranet's overall portfolio (more than 50% of itsrevenue), which enables its sales force to focus more on, and have a better understanding of,the managed hosting business than some of the more network-centric providers.

Cautions

■ Although one of the few European-headquartered providers with a Pan-European footprint,Claranet approaches each country differently, resulting in a nonhomogeneous solution portfolio.Coordination efforts are in place to limit this however.


■ Based on Gartner inquiry calls, Claranet lacks the brand equity of its competition due to itsrelative size, which will put it at more of a disadvantage the more it competes with the datacenter outsourcers.

■ Claranet does not offer any strong verticalization in comparison to some of the other providers,leaving its brand name weaker in certain markets.

Colt

Colt is an international network and IT service provider that provides hosting services focused onmajor European countries (the U.K., Germany, France, Spain, Italy, Switzerland and theNetherlands), with a presence in the U.S. and Asia. Colt is evolving its organizational structure tofocus more on business lines for cloud and hosting, in order to strengthen its go-to-market andoperational focus.

European Data Center Presence: France, Germany, Italy, Spain, Switzerland, the Netherlands,U.K.

Strengths

■ By investing in enterprise application capabilities, Colt is further deepening the range ofrequirements it could already address with its network, colocation, hosting and cloud services.

■ The vendor's strong Pan-European presence of both data centers and sales offices puts itahead for customers concerned with data sovereignty in individual European countries.

■ The vendor is leveraging its infrastructure and data network investments by serving both direct(enterprise) and indirect (small or midsize business [SMB]) markets. Its reseller propositions aremore comprehensive than other vendors surveyed, although its strength is currently with thetraditional voice and connectivity business.

■ To further strengthen its growth in IT services, Colt has been putting significant positioning andsales enablement efforts into segments beyond its established verticals, such as financials.

Cautions

■ Colt's strong emphasis on partnerships with large vendors leaves it more reliant on thetechnology roadmaps of those partners, in comparison with other service providers that havebuilt a more customized and integrated platform.

■ Colt has made some progress on positioning as a managed cloud provider. However,throughout Gartner inquiries, Colt is still not seen immediately as a hosting provider, due to itsbrand positioning and related promotional activities. Gartner continues to receive occasionalnegative feedback about Colt's service quality, highlighting the challenge Colt faces of adaptingto the more flexible requirements of CEMH.

■ In Gartner's experience, Colt will face a challenge in moving its traditional reseller channel awayfrom traditional voice and connectivity services to more complex cloud and hosting services.


Fujitsu

Fujitsu deploys services in the infrastructure equipment and services market, the data centeroutsourcing market and the managed hosting market; and it has a significant footprint in WesternEurope, from its presence in the U.K., Germany and the Nordics. In addition to its existingMicrosoft- and VMware-based platforms, the company is launching a new OpenStack-basedplatform and continues to position its cloud integration platform as a differentiator. Its managedservice activities address both Mode 1 and Mode 2 activities of customers and are not just limitedto its own technology platforms.

European Data Center Presence: Finland, U.K.

Strengths

■ Fujitsu's focus on globalization (which basically means industrialization and rationalization ofportfolio and service delivery) is not early, but provides a sound approach to support its cloudstrategy, which increasingly will be focused on deploying OpenStack as a common platform forthe creation of global homogeneous offerings.

■ Fujitsu's Cloud Integration Platform (FCIP) is evolving its proposition to support the integrationof hybrid clouds into business process, a capability that is in line with Gartner's vision of cloudadoption.

■ Business is growing steadily, and momentum can be supported by Fujitsu's focus on managinghybrid IT for clients looking for offerings that support both modes of a bimodal IT strategy.

■ The company already has a competitive footprint in Northwest Europe and aims to grow in thebroader EMEA region.

Cautions

■ Although Fujitsu is showing significant hosting revenue growth in Europe, it currently maintainsa lower global customer satisfaction percentage than its competition, a result that leavessignificant room for improvement.

■ Fujitsu's reliance on third-party software products for a significant part of its management andmiddleware solutions can impact the company's ability to be priced competitively and to keepup with the pace of innovation of (public) cloud providers that largely create their ownmanagement and middleware software.

■ Fujitsu's cloud-enabled managed hosting offer is mainly used to support the transformation ofcurrent hosting and DCO customers in Fujitsu's key (Northern European) regions, instead ofbeing leveraged to gain traction with new customers.

IBM

IBM is a highly diversified global technology company that operates data centers in North America,Europe, the Asia/Pacific region and Latin America. The vendor offers cloud-enabled managedhosting on VMware-based and OpenStack-based platforms, and can provide sales support in


English, Spanish, French, Italian, German, Dutch and Portuguese — although the platform is offeredonly in English and French in Europe. IBM can provide managed services for Linux, Windows andAIX OSs.

European Data Center Presence: France, Germany, Netherlands, Portugal, Spain, Switzerland,U.K.

Strengths

■ IBM's Cloud Managed Services (CMS) form the platform for not only CEMH but also for IBM'sDCO business and, therefore, has been comprehensively engineered and deployed throughoutthe world. CMS data centers are now connected on the same private network backbone as allSoftLayer data centers, providing a global-scale hosting solution for both traditional and born-in-the-cloud applications, as well as hybrid.

■ IBM's Cloud Managed Services platform is well-suited for core enterprise applications, and hasa broad degree of supported platform technologies that it leverages — including x86, AIX andPower — and can utilize multiple hypervisors for optimal application performance.

■ IBM's data center and sales presence allow it to provide comprehensive coverage of theEuropean market, which is especially useful for large non-European-domiciled multinationalenterprises that require a global partner.

Cautions

■ The vendor's managed cloud platform utilizes a mediated provisioning process to addressintegration of the automation with ITIL process demands, whereby customers can requestchanges using a self-service portal; however, IBM engineers must do manual sign-off on thequality assurance tests for new compute instances, leading to provisioning times that may behours or days. Additional automation is called out in the product roadmap.

■ IBM manages the security and uptime OS-instance SLAs, which requires IBM to control changemanagement. Customers leveraging the platform do not typically have full administrative accessto operating system instances they are paying for, and if they do need elevated privileges for aperiod of time, the SLAs are suspended.

■ IBM is executing a roadmap to resolve its three disparate cloud platform strategies —OpenStack, SoftLayer and CMS — which will likely take time to resolve, and may slow the paceof additional feature development overall.

Interoute

Interoute continues to leverage — toward its cloud and managed hosting offerings — theinvestments in its substantial Pan-European fiber-based network and data center servicescapability. Unlike most other European providers, it caters both to pure-play digital service providersand to traditional enterprises, offering a full portfolio of networking colocation, hosting and cloud


services from local data centers in major European countries. The company leverages its Europeanfootprint to cater to digital service providers and startups within legal or data residency constraints.

European Data Center Presence: Belgium, France, Germany, Italy, Spain, Sweden, Switzerland,the Netherlands, U.K.

Strengths

■ For the traditional enterprise market, Interoute caters to both the Mode 1 and Mode 2 types ofworkloads of enterprises pursuing a bimodal IT strategy. For Mode 1 workloads, it offers astrategy of consolidation, migration and transformation that can also address not-yet-virtualizedworkloads.

■ Native digital service providers (and also enterprise customers getting started) are onboardedthrough the self-service capabilities of the Interoute CloudStore and its online sales and supportcapabilities (virtual data center [VDC] self-service), but can grow their service into higher levelsof management services such as VDC Assist and VDC Managed.

■ Through its investments in software-defined networking (SDN), it combines the value of the fibernetwork connecting its data centers with its compute platforms, offering unique capabilities,such as no-cost movement of workloads and data between its international data centers (forexample, to accommodate disaster recovery [DR] and failover).

Cautions

■ Interoute's layered structure of product and support offerings (from fully self-service to fullymanaged) can complicate navigating the organization for customers getting started on theirmanaged service or cloud journeys.

■ Although Interoute has an advanced product set that has been integrated within its network,there is a challenge to educate customers in order to satisfy compliance and security standardsusing this innovative approach.

■ Interoute's expansion into North America puts it into a highly competitive and advanced market,in which it could struggle to compete for local business.

KPN

KPN is the incumbent, €8 billion revenue Dutch communications service provider. Over the past fewyears, it has drastically realigned and consolidated its IT, data center and hosting services into asingle go-to-market unit focused on its local market, aiming to make it easier for customers to dobusiness with the historically complex and segregated organization. Hosting and cloud — togetherwith machine-to-machine and security — are identified as strategic growth areas.

European Data Center Presence: The Netherlands


Strengths

■ KPN's transition-focused approach toward the cloud is pragmatic, addressing three domains —(mobile) worker productivity, enabling digital business, and making IT more agile and simple —at three levels (user, application and infrastructure). But it depends on several parts of the 2015roadmap (which includes private cloud options and orchestration) to be completed in order togain the required traction and momentum.

■ The partnership with IBM SoftLayer around its IaaS standard offering (whereby IBM delivers theIaaS services from a local KPN data center and over the KPN network) can be attractive tocustomers torn between using a local provider and levering a global cloud offering.

■ KPN positions itself as a single trusted source (KPN One, offering an integrate buyer experiencethrough a single bill, single contact, single sign-on, single app store, single help desk), andoffers customers a single management platform (Grip).

Cautions

■ KPN has hosting operations solely in the Netherlands, which limits both the attraction tocustomers from other European countries and its growth possibilities, as it is already one of thelargest hosting and data center service players in its local national market.

■ To prevent overreliance on the IBM SoftLayer partnership, KPN must continue to invest in its in-house Microsoft- and VMware-based platforms to maintain control over its productdevelopment roadmap and to keep up with the fast-moving technical trends being observed inthis market.

■ Continued internal reshuffling and reorganization potentially is a distraction for the company andcould slow down the speed of product introductions further.

NTT Communications

NTT Communications is a large global telecommunications provider with data centers in NorthAmerica, as well as in the Asia/Pacific region and Europe. The vendor provides cloud-enabledmanaged hosting on a VMware-based platform, as well as data center colocation services andtraditional managed hosting. NTT Communications can support customers in 11 languages,including English, Spanish, French, Italian, German and Dutch, and can provide managed servicesfor Linux and Windows OSs.

European Data Center Presence: Austria, Germany, Switzerland, U.K., France, Spain.

Strengths

■ As a leading communications service provider in the Asia/Pacific region, NTT Communicationshas a proven track record of operating in the region and can be an ideal choice for Europeancustomers that will have significant infrastructure needs in Asia.


■ The integration of software-defined networking into its cloud and hosting capabilities allowscustomers to increase or decrease bandwidth on communications links and to change theguaranteed processing performance of firewalling on-demand via a portal user interface.

■ NTT Communications' additional lines of business — including its managed security services —enable the vendor to build broader solution sets for customers needing a more comprehensiveoutsourcing model than just hosting.

■ The acquisition of e-shelter will give NTT Communications a springboard into the DACH region(Germany, Austria and Switzerland) market, although work will be needed to roll out cloudplatforms in these data centers.

Cautions

■ There has been continued investment in the cloud platforms since last year, but the underlyingplatforms still lag behind those of its peers in terms of technical innovation, although capabilityfor application management services is being delivered through its Global Management Oneservice.

■ NTT Communications has started moving toward high-level "business outcome" objectives insome strategic deals, and away from the technical SLAs typically found in hosting. Pursuingboth approaches can be a challenging strategy to execute well for both types of these standardand business outcome SLAs; therefore, customers will need to conduct due diligence on thesupport processes to ensure there are no gaps.

■ Gartner has received occasional feedback from customers detailing inconsistent customerservice experiences.

Rackspace

Rackspace is a large publicly traded managed hosting and cloud IaaS that operates data centers inNorth America, as well as in Europe (the U.K.) and the Asia/Pacific region. The vendor offers cloud-enabled managed hosting on a Xen platform based on OpenStack, and can also offer traditionalmanaged hosting. Rackspace has sales offices in the U.K., the Netherlands and Switzerland, andcan provide managed services for Linux and Windows OSs.

European Data Center Presence: U.K.

Strengths

■ Rackspace has been a leader in managed hosting for many years, with many customers amongthe European independent software vendor community, and was very early to adopt a strategyof allowing managed services to be purchased on the same consumptive basis as Rackspace'sIaaS capacity.

■ Rackspace has a deeply rooted cultural focus on providing superior, high-touch customerservice. Gartner clients consistently report high levels of customer satisfaction in day-to-dayoperations, and customer loyalty is high.


■ Rackspace's service-level agreements are seen as the highest in the industry, with new 200%to 1,000% credit schemes putting it well above any other hosting provider.

■ The vendor's portal is well-integrated and provides customers with access to many managedservices, such as backup and restore operations, data encryption, designing monitoringnotification plans and more.

Cautions

■ Despite being in the Leaders quadrant in this Magic Quadrant, Rackspace has not deployedinfrastructure capacity outside of the U.K. Customers with data residency requirements orlatency concerns in European regions farther away from the U.K. need to take this intoconsideration.

■ Rackspace has opted to provide managed services for Web applications such as MongoDB andMagento, rather than focus on particular verticals and their unique application, data sovereigntyand compliance requirements. Although this application support is a differentiator, it will not beas pervasive as that from suppliers that have solutions for specific verticals.

■ Some other carrier providers in the Leaders quadrant are now offering SDN integration for WANservices along with their managed hosting services, putting Rackspace at a disadvantage whenit comes to WAN and hosting requirements.

Sungard Availability Services

Sungard Availability Services (Sungard AS) is a large IT availability and business continuity providerwith data centers in in multiple locations in Northern Europe and in the U.S. The vendor offerscloud-enabled managed hosting primarily on a VMware-based platform, and can also provide datacenter colocation services as well as traditional managed hosting. Sungard AS can supportcustomers in English and in additional languages via third-party partners, and can provide managedservices for Linux, Windows, Solaris, HP-UX and AIX OSs (although Solaris, HP-UX and AIX supportexists outside of the vendor's cloud-enabled managed hosting offering).

European Data Center Presence: France, Ireland, U.K.

Strengths

■ Sungard AS has a well-established track record in helping customers address complex disasterrecovery and business continuity needs across a wide spectrum of technology platforms. Itoffers a Recover2Cloud (R2C) solution backed by a portfolio of Recovery-As-A-Servicecapabilities, with SLA-backed recovery time objective and recovery point objective metrics.

■ With the launch of Sungard AS Enterprise Cloud Services (ECS), the vendor has been able tobring a true on-demand IaaS offering to market.


■ Sungard AS is a strong choice for organizations with complex IT availability and recovery needs,as evidenced by its leadership position in Gartner's Magic Quadrant for Disaster Recovery as aService.

■ Sensing customer demand for hyperscale IaaS platforms like Amazon Web Services orMicrosoft Azure, Sungard AS intends to expand its managed and recovery services to thoseplatforms in the near future.

Cautions

■ Sungard AS's managed cloud platform has more mediated (that is, requiring humanintervention) needs for the provisioning of instances than most CEMH vendors, resulting inhigher service provisioning times.

■ After launching a CloudStack-based IaaS offering in 2014, the company has decided to changedirections and will be moving toward OpenStack instead. This may present stability/migrationchallenges for customers, and will consume engineering time that could otherwise have beenput to new capability development above the infrastructure layer.

■ The vendor has been improving its customer service levels in recent years, but customersatisfaction is still somewhat inconsistent, and pricing is considered higher than average incomparison with competitors in the European market.

■ Sungard AS's European presence is limited to Northern Europe, with no support for Germany,Europe's second largest market for hosting. This puts the vendor at a disadvantage comparedwith other Pan-European hosting providers.

Telefonica

Telefonica, the telecom conglomerate with headquarters in Spain, has been increasingly focusing onits Spanish-speaking home market and on opportunities in Latin America. While in the process ofdivesting its O2 activities in the U.K., Telefonica continues to invest and expand Telefonica Germany.During this transition, it has focused more on capturing the business and enterprise opportunity athome, for example, by achieving 34% growth in the sale of digital services.

European Data Center Presence: Spain

Strengths

■ Besides managed hosting, the company offers a wide portfolio of services, including virtual datacenter, disaster recovery, specific offers for SMBs (based on Acens, a Telefónica company) anddesktop as a service (DaaS; a virtual desktop solutions). It has launched integrated SMB offersthat span both IT and communications services.

■ During 2014, it launched new services in areas such as platform as a service (PaaS), andevolved its SAP and Oracle services to higher levels of automation and resilience. In addition, itis planning to expand its management layer capabilities to manage hybrid environments,spanning customer on-premises and hyperscale cloud provider infrastructure services.


■ With its Unica architecture, in a limited commercial launch phase, the company pursueseconomies of scope by sharing infrastructure to service SMBs, enterprises, and internal IT andoperational technology (OT; networking) workloads from a single pool of capacity.

Cautions

■ While the long-term direction is sound, the fact that several of Telefonica's current platformsreached end of life and that the company is transitioning to its new Unica platform may hinderTelefonica's ability to grow in the highly aggressive and competitive European market.

■ Although growing successfully in Latin America, the company is struggling to expand — or iseven receding — its geographic footprint across Europe, which makes it a less attractive optionfor European customers outside its home market.

■ Despite the integrated and automated foundation that the new Unica architecture potentiallycan offer, the current operation still depends on customers raising change requests that aresubsequently processed by Telefonica staff on top of the automated platform.

Verizon

Verizon is a large global telecommunications service provider that operates data centers acrossEurope, the Asia/Pacific region and the Americas. The vendor offers cloud-enabled managedhosting on a VMware-based platform, and can also provide data center colocation services andtraditional managed hosting. Verizon can support customers in English, Dutch, Spanish andPortuguese (although not all languages are available for all services), and can provide managedservices for Linux, Windows and Solaris OSs.

European Data Center Presence: The Netherlands, U.K.

Strengths

■ Verizon has recently completed a significant platform overhaul with the launch of Verizon Cloud,offering a cohesive view of layered granular managed services and SLA priorities acrossdiffering "cloud spaces" within the infrastructure environment.

■ Verizon's additional lines of business — namely, its telecommunications business, managedsecurity services and enterprise application outsourcing — allow the vendor to buildcomprehensive solution sets for customers looking for a more complete outsourcing model thanjust hosting.

■ Verizon's Enterprise Cloud Managed Edition offers customers the ability to provision dedicatedphysical servers as well as virtual servers, with billing available in daily increments.


Cautions

■ Despite providing managed hosting for some large customers in European and other industries,the vendor continues to focus more on being a networking player than a hosting or managedservices provider.

■ Given that the Verizon Cloud platform is very new overall, customers should considerproceeding carefully with large Web-scale workloads until the platform has proven itself overtime.

Vodafone

Vodafone is a global telecom company providing a wide range of mobile, managed voice, data,hosting and IP-based network services and applications. Its data centers are currently based in theU.K., Ireland, Spain, Germany, Turkey, New Zealand and Africa. With Vodafone's share of theapproximately $130 billion Verizon Wireless sale, plans are in place to expand services globally andinto mainland Europe.

European Data Center Presence: Germany, Ireland, Spain, Turkey, U.K.

Strengths

■ Vodafone's approach of offering both mobile and fixed-line connectivity, colocation, CEMH andcloud services is being further enhanced with hybrid management platforms for the hosting andcloud elements.

■ Current investment and control of the network to underpin cloud solutions will allow Vodafonedeeper control on executing its roadmap, and also to evaluate the potential of bringing tomarket services created with major public clouds.

■ The focus of Vodafone's geographical business units is moving more toward CEMH, providingthe drive for more resources and investment in this area.

■ Vodafone's provision of mobile managed services, such as fraud detection, alongside itshosting capability offers a clear differentiator from most other CEMH vendors.

Cautions

■ Vodafone's main revenue comes from mobility and fixed-line communication. Although thehosting service sits in its own business unit, the potential remains for Vodafone to lose its focuson managed hosting in order to concentrate investment and strategic focus on the higher-revenue business units, as has been seen with other acquisitions of communicationscompanies.

■ Although good progress has been made in growing the capabilities outside of the U.K., with theintroduction of the German DC operation, there is still a modest Pan-European footprint incomparison to the leaders in this area. Work is underway to roll out to other geographies thisyear.


■ Vodafone's general enterprise sales force has relatively little experience selling managedhosting to the enterprise customer, and has undergone sales training in the past year, but willlikely require further comprehensive support.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScopeone year and not the next does not necessarily indicate that we have changed our opinion of thatvendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria,or of a change of focus by that vendor.

Added■ KPN

■ Atos

Dropped■ AT&T — This year, AT&T has not been able to demonstrate sufficient revenue in CEMH to allow

it to be included.

■ Easynet — This year, Easynet has not been able to demonstrate sufficient revenue in CEMH toallow it to be included.

■ SFR — This year, SFR has not been able to demonstrate sufficient revenue in CEMH to allow itto be included.

Inclusion and Exclusion CriteriaThe inclusion criteria are used to determine which vendors will be covered in this research. Includedvendors must meet the following criteria:

■ The provider must sell cloud-enabled managed hosting as a stand-alone service, with norequirements to bundle it with application development, application maintenance, or other IToutsourcing and/or data center outsourcing.

■ The provider's qualifying offering must allow customers direct or mediated self-service for OSinstance provisioning on a CESI platform, with usage-based billing and resource-meteringincrements, as well as OS management services that are co-terminus with the underlyingcompute resources.

■ The service evaluated must be enterprise-class, offering 24/7 customer support (includingphone support), and must all have infrastructure availability SLAs.


■ The provider must have a geographic footprint within Western Europe with enterprise-class datacenters suitable for large-scale managed hosting.

■ The provider must be positively positioned in the cloud-enabled managed hosting market basedon Gartner-estimated market share.

Products and Services Excluded From This Evaluation

This Magic Quadrant is for cloud-enabled managed hosting only. That means the following adjacentservices are explicitly excluded from evaluation:

■ Colocation: Although many cloud-enabled managed hosting providers also offer colocation,the quality of colocation offerings is not evaluated in this Magic Quadrant. This Magic Quadrantshould not be used to select colocation vendors.

■ Self-managed cloud IaaS: Many businesses want a self-provisioned, self-manageddynamically provisioned infrastructure; they want to take advantage of the cost-efficiencies of aprovider's scale and automation tools, but do not want to relinquish control. If your interest isprimarily in self-managed cloud infrastructure, see "Magic Quadrant for Cloud Infrastructure asa Service, Worldwide."

■ DCO and remote infrastructure management (RIM): Although many DCO providers maymanage the infrastructure for Web applications as part of a DCO contract, this Magic Quadrantevaluates only managed hosting that is sold as a stand-alone service within provider-owneddata center facilities. It explicitly excludes hosting that may be part of a more general DCO orRIM contract. DCO providers are covered by "Magic Quadrant for Data Center Outsourcing andInfrastructure Utility Services, North America," "Magic Quadrant for Data Center Outsourcingand Infrastructure Utility Services, Europe," and "Magic Quadrant for Data Center Outsourcingand Infrastructure Utility Services, Asia/Pacific."

■ Application management services: While some managed hosting providers may have someexpertise in understanding how best to run the infrastructure underlying specific applications,we consider managed hosting services to stop below the application layer. Application layerservices are part of the application management market; see "Magic Quadrant for OracleApplication Management Service Providers, Worldwide" and "Magic Quadrant for SAPApplication Management Service Providers, Worldwide."

■ Cloud management platforms: Cloud-building hardware and software — software such asBMC Cloud Lifecycle Management, Citrix CloudPlatform and OpenStack, and integratedsolutions such as HP CloudSystem Matrix — are not evaluated in this Magic Quadrant, which isrestricted solely to services. Instead, see "Cloud Management Platform Vendor Landscape."

Vendors Considered, but Not Included

For this Magic Quadrant, we evaluated a significant number of managed hosting providersoperating within Europe, but were unable to include them all. Some did not qualify for this MagicQuadrant on the basis of their market shares in Europe or because they failed to meet otherinclusion criteria.


The following providers were considered, but excluded:

■ UKFast, a U.K.-centered hosting provider offering IaaS, managed hosting and colocationservices

■ HP, a global service provider that offers CEMH and IaaS services based on an OpenStackplatform

■ Adapt, a U.K.-centered hosting company that has grown through acquisition

There are thousands of service providers around the world that offer managed hosting services ofsome type, and hundreds that focus primarily on this market or derive a significant amount ofrevenue from it. Many small providers can provide an excellent level of service, so do not let a lackof inclusion in this Magic Quadrant deter you from evaluating these providers, because we do notconsider service quality when determining inclusion. Insufficient revenue and geographic presencealone could disqualify otherwise excellent providers.

Evaluation Criteria

Ability to Execute

The most heavily weighted criteria for a managed hosting provider's Ability to Execute are itsservice offerings and service excellence, as reflected in customers' experiences with sales, supportand operations. Overall business viability, as reflected in the provider's ability to serve a customersuccessfully over a three-year period without significant disruption, and the provider's track record,also contribute to this rating. Here, Gartner emphasizes immediate capabilities for the use cases wesee most often.

Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product or Service High

Overall Viability Medium

Sales Execution/Pricing High

Market Responsiveness/Record Medium

Marketing Execution High

Customer Experience High

Operations Medium



Completeness of Vision

The market for managed hosting is evolving rapidly, so it is vital that service providers have a visionfor the future needs of customers and for how they will adapt their offerings to meet those needs.The full context of a provider's vision is important, as cloud computing continues to alter the marketdramatically. We also evaluate a provider's approach to growing its business, including its strategyfor marketing and sales, international expansion, and vertically focused market solutions.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

Marketing Strategy High

Sales Strategy High

Offering (Product) Strategy Medium

Business Model Low

Vertical/Industry Strategy Medium

Innovation Medium

Geographic Strategy High


Quadrant Descriptions

Leaders

Leaders have proved they have staying power in this market, can frequently innovate on theirexisting products and can be relied on for enterprise-class needs. They have proved their technicalcompetence and ability to deliver services to a wide range of customers. They address multiple usecases with stand-alone or integrated solutions.

New managed hosting customers should sign two-year contracts with these companies, whereaslarger enterprise application hosting customers should aim for longer contracts of three to fiveyears. Satisfied customers renewing a contract with one of these firms should sign a three-yeardeal. Cloud IaaS customers should buy these services on demand when the pricing structuremakes sense to do so, or in contracts lasting one year or less.


Challengers

Challengers have a track record of delivering good service capabilities but are trailing the market'sevolution. They are typically companies that have solid traditional managed hosting services, buthave not exploited technology and market demand to build cloud services.

New managed hosting customers should sign two-year contracts with these companies, whereaslarger enterprise application hosting customers should aim for longer contracts of three to fiveyears. Satisfied customers renewing a contract with one of these firms should sign a three-yeardeal. Cloud IaaS customers should buy these services on demand when the pricing structuremakes sense to do so, or in contracts lasting one year or less; they should exercise caution as thesevendors are likely still proving their cloud services.

Visionaries

Visionaries have an innovative and disruptive approach to the market, but their services may be newand unproven, and they frequently have limited service portfolios. Visionaries have an "early mover"advantage in providing cloud services, as well as roadmaps that may turn them into Leaders in thefuture.

Because the business of Visionaries can change radically in a short period, we recommend thatcustomers buy these services from them on demand, or in contracts lasting one year or less.

Niche Players

Niche Players are typically specialists with more focused product portfolios, or are emergingvendors. They may serve one use case particularly well — better than a more generalized vendor.

New and renewing customers of stable, narrowly focused Niche Players should sign two- or three-year contracts. New and renewing customers of emerging Niche Players with businesses that arestill rapidly evolving should buy services on demand, or in contracts lasting one year or less. If youare using managed services, be wary of making short-term, tactical choices, as it can beinconvenient and expensive to change providers.

ContextDespite being in the media shadow of cloud computing, managed hosting is still an appropriatesolution for many organizations that want to outsource infrastructure and routine IT operationstasks. Cloud is beginning to alter the traditional managed hosting market, and is creating a newcategory of service — cloud-enabled managed hosting.


Market OverviewCloud-enabled managed hosting represents the evolution of the traditional managed hostingmarket, as the influences of cloud IaaS begins to alter buyer behaviors and expectations. As thehosting market shifts from the use of hardware dedicated to each customer sold on multiyearcontracts to the use of an underlying CESI, customers are starting to bring cloudlike expectations tomanaged service offerings.

All Infrastructure Requires Management

The term "managed services" has traditionally referred to services that are performed by humans,although those capabilities may have been augmented to some degree by automation. Within themanaged hosting market, these services have typically encompassed functions such as:

■ Infrastructure monitoring, alerting and incident response

■ Management of server OS instances and (optionally) software at the middleware andpersistence layer, if in use — such as Web server software, application servers and databaseservers

■ Applying hardware and software patches supplied by vendors, in order to maintain systems in apreferred operational state

■ Management of storage services, including data backup and restore operations

■ Management of any network devices in use, such as firewalls, intrusion detection/preventionsystems, load balancers and WAN optimizers

These services, coupled with dedicated computing hardware sold on multiyear service contracts,have defined the managed hosting market for over 15 years.

During the past seven years, the cloud IaaS market has substantively altered the market foroutsourced computing capabilities by automating the traditional infrastructure provisioning processand providing customers with self-service interfaces. Computing capacity can be brought online inminutes in an IaaS environment; whereas in traditional managed hosting, provisioning infrastructureis often a process that can take days or even weeks.

Cloud-enabled managed hosting lives between these two markets, with automated provisioningsystems that can quickly provide computing capacity to customers — typically within 24 hours, butwith the best systems having near-real-time provisioning. However, while infrastructure provisioninghas benefited from years of automation capabilities developed for the IaaS market, the automationof managed services has traditionally lagged behind. On average, cloud-enabled managed hostingrepresents around 10% of traditional hosting revenue, although this figure can be higher in more-innovative organizations and is growing at an exponential rate.

The evolution of cloud-enabled managed hosting will see the same transformation for managedservices that cloud IaaS saw for the provisioning of computing resources. Over time, providers willbegin to automate their processes to quickly provision managed service capabilities for customers,and will allow them to subscribe to those services in much shorter intervals — perhaps an hour or a


month, but ultimately no longer than the term commitment for the underlying computing resources.Self-service user interfaces for all managed services supplied by a provider will be exposed inunified portals, and utilized by both providers and customers cooperatively in managing anapplication environment.

Through careful integration of agile automated services with structured operational processes andstrong technical staffing, successful service providers will be able to amplify their abilities tomanage customer environments via technology, rather than the traditional approaches of scalingthrough staffing or via leveraging offshore resources.

The Vendor Landscape Is Emergent

The market for cloud-enabled managed hosting is still in its early stages. While many participants inthe market have refined their service delivery processes in the traditional managed hosting marketover many years, much of this work still takes place behind the scenes with — in some cases —nothing more than a service ticket request system or a phone call as the lone interface for all of acustomer's managed service needs. This year has seen more providers bring a hybrid serviceoffering management of colocation, CEMH and both in-house and third-party IaaS services.

The European market is still behind the U.S. in terms of revenue split for CEMH against traditionaldedicated server hosting, although the market is catching up based on Gartner inquiry andobserved revenue splits from vendors in this survey. The marketplace is also observing continuedmerger and acquisition activity in the national provider level, with the potential for new vendors tofulfill revenue inclusion criteria in 2016.

Gartner Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"Evaluating Cloud Infrastructure as a Service"

"Evaluation Criteria for Public Cloud IaaS Providers"

"Decision Point for Selecting an Application's Cloud Migration Strategy"

"Moving Applications to the Cloud: Finding Your Right Path"

"How to Write a Managed Hosting Service RFP"

"Getting the Best Service From Your Managed Hosting SLA"

"When Two Worlds Collide: How to Decide Between Managed Hosting Providers and TraditionalOutsourcers"

"Data Center Outsourcing, Hosting or Cloud? Use Gartner's Market Map and Compass to Decide"


"How Markets and Vendors Are Evaluated in Gartner Magic Quadrants"

Evidence

■ Gartner client inquiries in 2014 and 2015 (currently more than 1,000 cloud IaaS and hosting-related inquiries per quarter)

■ Service provider interviews and product demonstrations in 2014 and 2015

■ Surveys of cloud-enabled managed hosting providers in 2014 and 2015

■ Customer references from cloud-enabled managed hosting providers in 2014 and 2015

■ Hands-on trials of cloud-enabled managed hosting offerings in 2014 and 2015

■ Public information from sources such as U.S. Securities and Exchange Commission filings,press releases, vendor websites and community support forums.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the definedmarket. This includes current product/service capabilities, quality, feature sets, skillsand so on, whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financialhealth, the financial and practical success of the business unit, and the likelihood thatthe individual business unit will continue investing in the product, will continue offeringthe product and will advance the state of the art within the organization's portfolio ofproducts.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure that supports them. This includes deal management, pricing and negotiation,presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible andachieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor'shistory of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" canbe driven by a combination of publicity, promotional initiatives, thought leadership,word of mouth and sales activities.


Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, customer support programs (and the quality thereof), availability of user groups,service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highestdegree of vision listen to and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicatedthroughout the organization and externalized through the website, advertising,customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

Innovation: Direct, related, complementary and synergistic layouts of resources,expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings tomeet the specific needs of geographies outside the "home" or native geography, eitherdirectly or through partners, channels and subsidiaries as appropriate for thatgeography and market.


GARTNER HEADQUARTERS

Corporate Headquarters56 Top Gallant RoadStamford, CT 06902-7700USA+1 203 964 0096

Regional HeadquartersAUSTRALIABRAZILJAPANUNITED KINGDOM

For a complete list of worldwide locations,visit http://www.gartner.com/technology/about.jsp

© 2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Thispublication may not be reproduced or distributed in any form without Gartner’s prior written permission. If you are authorized to accessthis publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information containedin this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy,completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. Thispublication consists of the opinions of Gartner’s research organization and should not be construed as statements of fact. The opinionsexpressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues,Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company,and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board ofDirectors may include senior managers of these firms or funds. Gartner research is produced independently by its research organizationwithout input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartnerresearch, see “Guiding Principles on Independence and Objectivity.”


http://www.gartner.com/technology/about.jsp

http://www.gartner.com/technology/about/policies/usage_guidelines.jsp

http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp

magic_quadrant_for_cloudenab_268959 (3)

Documents

Transcript of magic_quadrant_for_cloudenab_268959 (3)