On-premises solutions require up-front payments

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It’s Early Days For Cloud Computing Ted Schadler Vice President & Principal Analyst Forrester Research March 22, 2010

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On-premises solutions require up-front payments. Cost (cash out). Return (cash in). Cash flow ($$). Year 1. Year 2. Year 3. Cloud-computing costs rise as demand (and return) grows. Cost (cash out). Return (cash in). Cash flow ($$). Year 1. Year 2. Year 3. - PowerPoint PPT Presentation

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Page 1: On-premises solutions require up-front payments

It’s Early Days For Cloud ComputingTed SchadlerVice President & Principal AnalystForrester Research

March 22, 2010

Page 2: On-premises solutions require up-front payments

2Entire contents © 2010  Forrester Research, Inc. All rights reserved.

On-premises solutions require up-front payments

Year 1

Cash flow($$)

Year 2 Year 3

Cost (cash out)

Return (cash in)

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3Entire contents © 2010  Forrester Research, Inc. All rights reserved.

Cloud-computing costs rise as demand (and return) grows

Year 1 Year 2 Year 3

Cash flow($$)

Cost (cash out)

Return (cash in)

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4Entire contents © 2010  Forrester Research, Inc. All rights reserved.

Cloud computing encompasses three layers in the IT stack

Software-as-a-Service (SaaS)

Cisco WebEx, Google Apps, Microsoft Exchange Online, salesforce.com

Platform-as-a-Service (PaaS)

Google AppEngine, Microsoft Azure Services Platform, salesforce Force.com, EngineYard

Infrastructure-as-a-Service (IaaS)

Amazon EC2 & S3, Rackspace, Terramark, Savvis, AT&T

10,000s

<10

Number of providersby 2019

100s

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5Entire contents © 2010  Forrester Research, Inc. All rights reserved.

SaaS leads in the US cloud conversion

Don't knowNot interestedInterested but no plansPlanning to implement in a year or morePlanning to implement in the next 12 monthsImplemented, not expandingExpanding/Upgrading implementation

Software-as-a-Service

Platform-as-a-Service

Infrastructure-as-a-Service

Implementing or expandingNot implementing or don’t know

Source: Hardware Survey, Q3 2009Base: 301 European IT decision-makers

What are your firm's plans to adopt the following software technologies?

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Security and maturity lead the worry list

Too difficult to understand

The performance isn't good enough

Compliance requirements missing

Our custom apps aren't compatible

Capabilities don't match our needs

We believe our total costs are cheaper

Too immature

Security and privacy concerns

0% 10% 20% 30% 40% 50% 60%

Base: 407 US IT decision-makersSource: Hardware Survey, Q3 2009

Why isn't your firm interested in pay-per-use hosting of virtual servers (also known as cloud computing)?

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7Entire contents © 2010  Forrester Research, Inc. All rights reserved.

Thank you

Ted Schadler+1 617.613.5975

[email protected]: @tedschadler

www.forrester.com