Cloud Computing: A 2015 Horizonwatch Trend Report

IBM Market Development & Insights
Contacts: Bill Chamberlin, Client Insights, Analyst, bluemine & COMP / HorizonWatch Program Leader and
Polly Frierson Client Insights, Analyst, bluemine & COMP
January 27, 2015
Cloud Computing: A 2015 HorizonWatch

Trend Report
A bluemine original report – Client Version
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular
technology or solution.
© 2015 IBM Corporation
About This Trend Report

 Purpose: The slides provide an overview on the Cloud Computing trend for IBM clients
 Content: Summary information about the Cloud Computing trend is provided along
with many links to additional resources.
 How To Use This Report: This report is best read/studied and used as a learning
document. You may want to view the slides in slideshow mode so you can easily follow
the links
 Available on Slideshare: This presentation (and other HorizonWatch Trend Reports
for 2015) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to be a
statement of direction by IBM nor is IBM committing to any particular technology or
solution.
2 27Jan2015 Cloud Computing A 2015 HorizonWatch Trend Report © 2015 IBM Corporation
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Table of Contents
1. One Page Summary of the Cloud Computing Trend
2. Cloud Computing Trends to Watch in 2015
3. What Others Are Saying About Cloud Computingfor 2015
4. Websites, Reports, and Additional Resources
Cloud Computing – Trend Overview

Drivers
 Clouds offer cost savings and an attractive pay-as-you-go model
 Clouds can enable the speed of delivery of new services and
new capabilities, providing companies with the ability to rapidly
innovate.
 Hybrid cloud models allow organizations to move part of their
data into the public cloud, while keeping other IT-resources on-
site or in a private cloud
Challenges
 Customers continue to be concerned about the security risks of IBM
cloud computing.
 Many users don’t want their data stored by a third party or where
other users potentially have access to their data
Implications
 Large enterprises will increasingly design for hybrid clouds
 The demand for anytime, on-the-go accessibility will be a major “More and more
force in shaping cloud computing organizations are moving
 Expect to see continued development of delivery models (Iaas,
services, storage, email,
PaaS, and Saas) as customers seek to build and deploy cloud
applications collaboration and
 Startups, companies with complex supply chain operations and applications to the cloud.”
companies going through reorganizations or business process Gartner
transformations are good candidates for clouds
 Mobile cloud services will experience large growth in 2015
Table of Contents
3. What Others Are Saying About Cloud Computing for 2015
Cloud Computing Trends to Watch in 2015

1. Innovation becomes key driver: Leading
enterprises are using cloud to innovate and create
competitive advantages.
2. Hybrids. Hybrids are the focus. We will see
continued growth in 2015 around hybrid clouds as
data security and governance issues get addressed. Forbes
3. Containers: Docker container technology came “The primary driver for cloud adoption
available in 2014 and can help accelerate app will shift from economics to innovation
delivery. In 2015 we will see increasing competition as leading-edge companies invest in
in the containerization space.
cloud services as the foundation for
4. Cloud APIs: Open APIs for access to hybrid new competitive offerings.” IDC
enterprise/telco cloud-based applications will
accelerate as a means to develop and deploy cloud
applications. The REST standard is widely used.
5. Cloud Security: Security continues to be a key
challenge. Demand for Cloud Security Services will
increase as organizations drive for tighter security
with encryption, automation and orchestration of
security across all platforms and access points.
6. Managed Cloud Services: Companies
increasingly look to service providers to manage the
different cloud environments with a consistent Image Source: IBM
management framework.
Cloud Computing Trends to Watch in 2014 (cont.)

7. Private – Cloudy Forecast: Private clouds are
not dead, but increasingly large enterprises are
looking to hybrid and public clouds.
8. Public Cloud Price War Subside: Public
cloud providers begin to differentiate on features and Gartner
services, rather than just price.
9. Mobile SaaS: Expect a whole new generation of
cloud apps designed for mobile work force.
10.Industry Clouds: These community-driven and
industry focused initiatives become more popular as
a way to collaborate, share knowledge, and provide
a place for commerce
11.AWS Innovation Continues: Expect AWS to
continue to rapidly innovate it’s services in order to
attract enterprise clients.
Image Source: IBM
12.Cloud Delivery: Cloud has become the dominant
way to launch and distribute new software and
services.
“Cloud computing promises economic
13.Cloud Skills: Skill gaps remain. Education advantages, speed, agility, flexibility,
institutions continue to try to meet the demand for
infinite elasticity and innovation.”
cloud computing skills by improving their computer Gartner
science curriculums.
Table of Contents
Cloud Computing continues to transform and disrupt all industries as

leading adopters are finding cloud helps accelerate innovation
“Cloud computing is a disruptive

phenomenon, with the potential to
make IT organizations more
responsive than ever.” Gartner
“Cloud computing is arguably one of

the most disruptive fields ever in
technology management.” Forrester
IBM
“CIOs are focused on using the cloud to establish a modern, innovative IT environment
with operational agility and business advantage as key outcomes.” Gartner
“Cloud cannot be sufficiently understood as a standalone phenomenon in the IT market,

but rather as a core ingredient of a larger transformation of the IT industry – and many
other industries using IT to transform themselves.” Frank Gens, Senior Vice President and Chief
Analyst at IDC
The benefits of cloud computing and related services have been

well documented
“Global buyers of cloud applications cite cost,
innovation and agility as reasons for adoption.” Gartner
“Organizations gaining competitive advantage through

high cloud adoption are reporting almost double the
revenue growth and nearly 2.5 times higher gross
profit growth than peer companies that are more
cautious about cloud computing.” IBM
“Cloud technologies and services represent the fastest

way for the business to reach new buyers and breathe
new life into aging applications.” Forrester IBM
“The reduction of the total cost of ownership on deployment of cloud services acts as the
major driver for the adoption of public clouds.” Allied Market Research
“Assuming that the cloud always saves money can lead to career-limiting promises. Saving
money may end up one of the benefits, but it should not be taken for granted.” Gartner
Cloud adoption will continue to grow in 2015 and will be increasingly

focused on implementing mission critical applications
“Cloud investments continue to rise and

enterprise organizations are investing
significantly more than SMBs.” IDG
“More and more organizations are moving

services, storage, email, collaboration and
applications to the cloud.” Gartner
IDG
“In 2015, cloud adoption will accelerate and technology management groups must adapt
to this reality by learning how to add value to their company’s use of these services
through facilitation, adaptation and evangelism.” Forrester
“Today, the projects are mission-critical and production grade. This is an affirmation that
more businesses are comfortable with cloud deployments beyond the front office
running sales force automation (SFA) and email.” Gartner
Increasingly, cloud is seen not only a way to reduce costs, but as an

important way to innovate and create competitive advantages
“More and more organizations are

turning to cloud to transform their
business” KPMG
“By 2016, cloud will matter more to

business leaders than to IT. In fact,
cloud’s strategic importance to
business leaders is poised to
double from 34 percent to 72
percent – blowing past their IT
counterparts at 58 percent.” IBM KPMG
“The cloud services market is now entering an "innovation stage" that will produce an
explosion of new solutions and value creation on top of the cloud. Many of these new
solutions will be in industry-focused platforms with their own innovation communities, which
will reshape not only how companies operate their IT, but also how they compete in their
own industry.” IDC
Security of clouds will remain a key issue for the future and
therefore is a way for vendors to differentiate their cloud offerings
“If someone else is running your

computers and software, you need
strategies to stay secure. Your
security policy depends on how
many pieces you control – the more
you own, the more you control.”
Gartner
IBM
“In the battle to win, serve, and retain

customers, data security and privacy
have become competitive differentiators
and, thus, a top business technology
agenda item.” Forrester
SC Magazine
“Security, privacy and fear of government snooping remain leading concerns for
respondents (especially outside of the U.S.) that do not consider public cloud-based
models.” Gartner
In 2015, most I.T departments will be interested in learning about

and implementing Hybrid Clouds
Hybrid Cloud Videos IBM
“Gartner defines a hybrid cloud computing
 How do you define hybrid cloud?
service as a cloud service that spans both
 Why is hybrid cloud important?
private and public cloud implementations, or  How is hybrid cloud being used and where is it
both on-premises private and off-premises going?
private or public cloud implementations.”  What technology is needed for hybrid cloud?
Gartner  What are the first steps to take with hybrid cloud?
 What hinders hybrid cloud adoption?
 Why hybrid cloud makes better cattle than pets...
 Data residency and hybrid cloud: the elephant in the
“A hybrid cloud uses a private cloud room?
foundation combined with the strategic use  Hybrid Cloud Internet of Things demo
of public cloud services. Most companies
with private clouds will evolve to manage
workloads across data centers, private
clouds and public clouds—thereby creating
hybrid clouds.” IBM
ComputerWorld
“Internal private cloud computing can help maximize asset utilization. Hybrid cloud
computing can maximize this value by balancing the use of internal assets and external,
while enabling better scalability.” Gartner
Enterprises are increasing leveraging public cloud services for

applications and other types of infrastructure related services
“We project that the public cloud

market will reach $191 billion by 2020,
from 2013's total of $58 billion. Cloud
applications, at $133 billion in 2020,
are leading this growth.” Forrester
“In 2018, public IT cloud services will

account for more than half of
worldwide software, server, and
storage spending growth.” IDC IDC
“Public IT cloud services spending will reach $56.6 billion in 2014 and grow to more than
$127 billion in 2018. This represents a five-year compound annual growth rate (CAGR) of
22.8%, which is about six times the rate of growth for the overall IT market.” IDC
“Data loss, data breaches, unsecure application programming interfaces (APIs) and shared
technology in a multitenant environment are just a few of the concerns expressed by
respondents tackling the option of using public cloud.” Laurie Wurster, Gartner
SaaS is the largest public cloud services category and continues to

grow in importance across all enterprise application solutions
“Software as a service (SaaS)

will remain the largest public IT
cloud services category,
capturing 59.7% of revenues in
2017” IDC
“The traditional deployment

model for on-premises software
is expected to significantly
shrink from 34 percent today to
18 percent by 2017.” Gartner
Infographic: IBM
“The SaaS market is dominated by Enterprise Applications cloud solutions such as

enterprise resource management (ERM) and customer relationship management (CRM),
followed by Collaborative applications.” IDC
“The most commonly cited reasons the survey found for deploying SaaS were for
development and testing production/mission-critical workloads.” Joanne Correia, Gartner
PaaS adoption picks up as enterprise IT leverages it for cloud app

development, deployment, and management services
“Platform as a service (PaaS) and cloud storage
services will be the fastest growing categories,
driven by major upticks in developer cloud
services adoption and big data-driven solutions,
respectively.” IDC
“The PaaS market – accounting for 14% of the

market in 2013 with a forecast CAGR of 27% –
is composed of a wide variety of highly strategic
cloud app development, deployment, and GIGAOM
management services.” IDC
“With the software industry megavendors entering the PaaS market, the hype (and
confusion) concerning its architecture, functional content, merits, prospects and value
continues to intensify.” Gartner
“From a market share standpoint, the 2013 PaaS market was led by Amazon.com,
followed by Salesforce.com and Microsoft (both share the number 2 position). GXS and
Google hold the 4th and 5th positions, respectively.” IDC
Those companies leading in the use of Cloud typically have an

overall strategy vs. a collection of cloud projects
“To fully realize the benefits of cloud, you need to
identify workloads best suited for cloud, define the
cloud computing services that can best meet your
business needs, and implement your chosen cloud
computing model smoothly.” IBM
“When asked about what their cloud strategy is,

many companies don't have one and the default is
IBM
often (stated or not) that they are just doing what
their CEO wants” Gartner
“A cloud strategy should be based on aligning business goals with potential benefits.
Those goals and benefits are different in various use cases and should be the driving
force for businesses, rather than any attempts to standardize on one offering or strategy”
Gartner
“The IBM Center for Applied Insights recently surveyed more than 800 cloud users and
decision makers from around the world — and they found that leaders in their fields are
using cloud a little differently.” IBM
As more cloud success stories get published, we learn it is all about

investing in people, processes, and business management
“Crafting and measuring the right metrics

for your cloud strategy objectives is
essential for success but often
overlooked. Success with cloud
computing must be measured in business
terms, which likely isn't the natural leaning
of your technology management team.” IBM
Forrester
“When buyers were asked what characteristics were required for a cloud professional
services project to be successful, at a worldwide level, the number one characteristic was
'provide technical insights and competence' followed by 'provide functional insights and
competence‘.” IDC
“We continue to see organizations struggle to implement private clouds and to demonstrate
their value because this requires a shift in how IT is delivered, one that involves changes to
people, processes and business management.” Gartner
Those implementing Hybrid clouds will need strong partners who

can help them manage implementation and delivery
“Hybrid clouds will be critical to

enabling business innovation and agility
in the coming years, but only if they are
able to scale and adapt to business
needs in real time using state-of-the-art
processes and management
technologies.” IDC VMblog.com
“To implement hybrid cloud services successfully, IT leaders need to introduce an

internal cloud services brokerage (CSB) role responsible for the governance, demand
management and delivery of cloud services.” Gartner
“This hybrid mix of on-premises and public IaaS and PaaS cloud platforms, converged
infrastructure, cloud storage and software-defined networks demands more from
technology managers -- you must become service brokers and trusted partners to your
customers.” Forrester
In 2015 developers will be interested in learning how to use

containers to help them accelerate application delivery in the cloud
“Docker has the potential to have a

significant impact on the DevOps
ecosystem. It could fundamentally changes
the way developers and operations
professionals collaborate” GigaOM
GIGAOM
“Next year, container technologies and

adoption will grow immensely. Containers’
speed and portability took hold in 2014.
2015 will be the year the ship really sets
sail.” Rackspace
VMblog.com
“Next year, container technologies and

adoption will grow immensely. Containers’
speed and portability took hold in 2014.
2015 will be the year the ship really sets
sail.” Forrester
IBM
The cloud computing vendor ecosystem is still developing
“With cloud computing services now formal

members of the technology management
portfolio, the challenge shifts from understanding
cloud to selecting the right partners.” Forrester
“IDC positioned four vendors – Accenture, HCL,

IBM, and PwC – in the "Leaders" category of Forrester
worldwide cloud professional services vendors
for 2014.” IDC
“The market for cloud compute infrastructure as

a service is still maturing and rapidly evolving.
Strategic providers must therefore be chosen
carefully.” Gartner Gartner
“The top 5 vendors in this market (IaaS) are Amazon.com (which holds the first position with
more than 40% of market share), RackSpace, IBM, CenturyLink, and Microsoft.” IDC
Table of Contents
Cloud Computing Selected Analyst Websites and Resources
 451Research: Cloud
 TBR Research: Cloud
 Forrester: Cloud Computing Playbook and
Cloud Computing and Cloud Blog Posts
 Frost & Sullivan: Search for Cloud Computing
 Gartner: Research and Blogs
IDC
 GigaOM: Cloud
 IDC: Research and Blogs
 Ovum: Blogs
 Saugatuck Technology Blogs tagged Cloud
Gartner
“By 2015, at least 20% of all cloud services will be consumed via internal or external
cloud service brokerages, rather than directly, up from less than 5% today.” Gartner
“Cloud computing has reached an inflection point for enterprises — a comprehensive

strategy for broad adoption and use is now required.” Forrester
Cloud Computing – Selected Media Websites & Resources

 Businessweek: CEO Guide to Cloud Computing
and Cloud Computing
 CIO.com: Cloud Computing
 ComputerWorld: Cloud Computing
 eWeek: Cloud
 Forbes: Cloud Computing
 How Stuff Works: Cloud Computing
InfoWorld
 InformationWeek: Cloud / SaaS / PaaS / IaaS
 InfoWorld: Cloud portal / Blogs
 Network Computing: Cloud
 Network World: Cloud Computing
 NY Times: Cloud Computing
 The Cloud Computing Journal
 Wikipedia: Cloud Computing / Platform as a
service / Software as a service / Network as a Wired
Service / Cloud Storage
“Docker is the hottest new idea in the world of cloud computing… it promises to overhaul
software development across the net, providing a simpler and more efficient means of
building and operating websites and other massive online applications.” Wired
Cloud Computing – Selected Social Media Websites & Searches

 Google Blog Search: Cloud Computing
 Facebook Search: Cloud Computing
 Google+ Communities Search: Cloud
Computing
 LinkedIn Group Search: Cloud
Computing
 Pinterest Search: Cloud Computing
 Slideshare search: Cloud Computing IBM
 Twitter hashtags: #cloud /

#cloudcomputing / #cloudchat
 Tumblr Search: Cloud Computing
 YouTube: Cloud Computing Playlists and
Cloud Computing Channels
Pinterest
Cloud Computing – Selected IBM Resources and Links

ibm.com links
 IBM Cloud IBM’s cloud computing portal
 Marketplace
 Solutions / Bluemix Cloud Platform / Softlayer
Cloud Platform / DevOps Services
IBM
 Capabilities
 Partners
 DeveloperWorks Cloud portal for developers
 About Cloud Computing
 IBM Products and Solutions
 Partnerworld Cloud Computing portal for Partners
Featured Events
 InterConnect 2015 22-26 February, Las Vegas, IBM
NV
 Cloud Computing Expo 9-11 June, New York, NY
 200 Bluemix Days Various dates and locations
 Cloud Computing Meetup Groups Various cities
IBM
Cloud Computing – Selected IBM Social Media Channels

IBM Social Media Sites and Accounts The Steps to Cloud Expertise Video
Series IBM
 Thought Leadership Blog: Thoughts on Cloud
 DeveloperWorks: Blogs tagged cloud
 IBM CAI: Blogs tagged Cloud
 Twitter IBMCloud / Hashtags: #ibmcloud / #smartcloud
 Facebook Page: IBM Cloud
 YouTube: IBM Cloud
 Google+ page: IBM Cloud Computing
 LinkedIn Group: IBM Cloud Computing
 Developerworks: Connect and Collaborate on Cloud Topic
Twitter IBMCloud
IBM
Cloud Computing – Other Selected Reports and Resources

 IBM Center for Applied Insights Cloud Bound : Mixing cloud
into your outsourced IT service, 2014
 IBM Center for Applied Insights Champions of Software as a
Service, 2014
 IBM Center for Applied Insights Under Cloud Cover, 2014
 IBM Center for Applied Insights Raising the Game: the IBM
Business Tech Trends Study, 2014
 IEEE IEEE Transactions on Cloud Computing, 2014
 COMPTIA 5th Annual Trends in Cloud Computing, 2014
 US National Institute of Science and Technology NIST IBM
Definition of Cloud Computing, 2014
 IDG Enterprise Cloud Computing Study, 2014
 Rightscale 2014 State of the Cloud, 2014
 Northbridge and GigaOM The Future of Cloud Computing,
2014
 Verizon State of the Market : Enterprise Cloud, 2014
 Everest Enterprise Cloud Adoption : Hype vs Facts, 2014
 Information Week Private Cloud Survey, 2014
 Information Week Cloud ROI Survey, 2014
IBM
Additional Information on 2015 Technology Trends
Other slide decks in this 2015 Trend Report series have been posted to Slideshare
You are also invited to check out the following IBM websites and resources
– IBM Academy of Technology
– IBM Center for Applied Insights
– IBM Institute for Business Value
– IBM Research and 5 in 5
– IBM’s Smarter Planet Blog

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IBM Market Development & Insights

Cloud Computing: A 2015 HorizonWatch

About This Trend Report

1. One Page Summary of the Cloud Computing Trend

2. Cloud Computing Trends to Watch in 2015

3. What Others Are Saying About Cloud Computingfor 2015

4. Websites, Reports, and Additional Resources

Cloud Computing – Trend Overview

1. One Page Summary of the Cloud Computing Trend

2. Cloud Computing Trends to Watch in 2015

3. What Others Are Saying About Cloud Computing for 2015

4. Websites, Reports, and Additional Resources

Cloud Computing Trends to Watch in 2015

Cloud Computing Trends to Watch in 2014 (cont.)

1. One Page Summary of the Cloud Computing Trend

2. Cloud Computing Trends to Watch in 2015

3. What Others Are Saying About Cloud Computing for 2015

4. Websites, Reports, and Additional Resources

Cloud Computing continues to transform and disrupt all industries as

“Cloud computing is a disruptive

“Cloud computing is arguably one of

“Cloud cannot be sufficiently understood as a standalone phenomenon in the IT market,

The benefits of cloud computing and related services have been

“Organizations gaining competitive advantage through

“Cloud technologies and services represent the fastest

Cloud adoption will continue to grow in 2015 and will be increasingly

“Cloud investments continue to rise and

“More and more organizations are moving

Increasingly, cloud is seen not only a way to reduce costs, but as an

“More and more organizations are

“By 2016, cloud will matter more to

“If someone else is running your

“In the battle to win, serve, and retain

In 2015, most I.T departments will be interested in learning about

Enterprises are increasing leveraging public cloud services for

“We project that the public cloud

“In 2018, public IT cloud services will

SaaS is the largest public cloud services category and continues to

“Software as a service (SaaS)

“The traditional deployment

“The SaaS market is dominated by Enterprise Applications cloud solutions such as

PaaS adoption picks up as enterprise IT leverages it for cloud app

“The PaaS market – accounting for 14% of the

Those companies leading in the use of Cloud typically have an

“When asked about what their cloud strategy is,

As more cloud success stories get published, we learn it is all about

“Crafting and measuring the right metrics

Those implementing Hybrid clouds will need strong partners who

“Hybrid clouds will be critical to

“To implement hybrid cloud services successfully, IT leaders need to introduce an

In 2015 developers will be interested in learning how to use

“Docker has the potential to have a

“Next year, container technologies and

“Next year, container technologies and

The cloud computing vendor ecosystem is still developing

“With cloud computing services now formal

“IDC positioned four vendors – Accenture, HCL,

“The market for cloud compute infrastructure as

1. One Page Summary of the Cloud Computing Trend