Cloud 2.0: Trust and Security MattersNovember 23, 2015
Customers Want More Than Infrastructure on Cloud 2.0
It’s not all about a provider’s infrastructure any more.
Cloud customers are looking for a much wider range of services. Application hosting, managed services and cloud security are top priorities and account for 70% of their budget. But they want a partner they can trust.
The provider has essentially become a partner.
Here’s where the 70% of Cloud 2.0 spending is going:
- Backup and Recovery
- Disaster Recovery / Site Recovery
- Application Development Tools and Platforms
- Mobile Services
- Premium 24 x 7 Support Services
- Database; Email
- Business Applications: includes ERP, CRM, and Industry-Specific Applications
Cloud Security Services
- Endpoint Security
- Encryption of Confidential Data Stored in the Cloud
- Web Application Firewall
- Advanced Anti-Malware
- Anti APT
Customer Requirements Are Defining Cloud 2.0
Much of what customers want goes beyond having a reliable product, though that is certainly a requirement. They are looking for people skills such as staff having technical expertise, knowing their business and going above and beyond. They want someone to work together with to deal with problems.
These are the deal-breakers for cloud 2.0 customers:
- Trustworthy Company
- Product Uptime/Reliability
- Secure Products & Services
- Technical Experts
- Product Performance
- Technical Knowledge
- Offer Industry Specific Solutions
- Knows My Business
- Staff Goes Above and Beyond
- Consistently Delivers
Companies are looking to partner with Cloud providers to fill resource gaps and boost deployment across verticals.
The 451 report shows hosting service providers are:
- Selling 37% of their services based on their own infrastructure
- 51% are selling their services based on a partner’s infrastructure
- 12% resell a partner’s services
That’s 63% of sales coming from relationships with partners.
Cloud Supports Business Expansion and Aggressive Development
Organizations love applications like the ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management), which have changed the dynamic of the boardroom.
There are many new Cloud applications that didn’t exist before to support collaboration between sales and marketing. Modernizing existing systems make the flow of information even more efficient.
This reflects the Cloud move from engineering-led to Business-led.
This may be why Marketing is influencing the decision on evaluating and choosing service providers.
Percentage of Applications in the Cloud: Now, and in 3 Years:
15% Initial Implementation
51% Broad Implementation
45% Initial Implementation
76% Broad Implementation
The Scope of Enterprise Management is expanding. The inclusion of mobile devices was just the hors d’oeuvre. Get ready for the main course, the Internet of Things.
How companies plan to use the Internet of Things
59% Security Monitoring
49% HVAC Management
32% Remote Asset Tracking/ Management
28% Transportation/Delivery Services Management
24% Collecting Big Data or Products
Keeping Infrastructure Secure is a Top Priority
Private Cloud is definitely on the rise. There’s a 68% defection rate from public cloud to some form of private cloud. And Private Cloud dominates the Hybrid market.
- Private Cloud Expected to Grow
- On Premises Infrastructure Deployment – Private Cloud expected to grow 2% over the next 3 years.
- Off-Premises Deployment – IaaS/Hosted expected to grow 3%; SaaS expected to grow 2%; PaaS expected to stay the same
- Hosted Deployment – Public Cloud expected to go from 12% to 175;
- Private Cloud expected to go from 29% to 31%.
The Road to Hybrid Cloud for Customers is (still) Private
- 63% On Premises Private Cloud with a Hosted Private Cloud
- 45% On Premises Private Cloud with a Public Cloud
- 32% Hosted Private Cloud with Public Cloud
- 68% Hosting customers that have migrated Public Cloud to some form of Private Cloud
What’s Ahead for Cloud 2.0 Users
- CIOs and CTOs expect their budgets to continue to move from CapEx to OpEx. All you need to start Cloud is a service provider and a credit card.
- Products will become increasingly laser-targeted to niche markets.
- Providers will improve transparency and deliver on customer expectations.
- Customer service support will become increasingly targeted to niche partners to resolve issues.
- Pricing models will improve with bundled packages including cloud/colo combinations.
- Sales Teams will become increasingly adept at business specific solutions.
A full service Data Center provider that knows all the pieces can harmonize Cloud deployment with business priorities.
Surprise! Price is the least important factor in choosing a cloud service provider
- Products and Services accounts for 23% of their decision
- Company quality, service and sales team together account for 58% of their decision, and
- Price was 19% of that decision.
Partnering will be key in the move to Cloud 2.0. Having an experienced team you can trust to improve your cloud security and efficiency matters. A lot.