Data

WL Study Conducted for Brocade: New Infrastructure Services and New Service Provider Revenue

We recently conducted a study among 192 medium and large enterprises in the US for Brocade Communications. The goal of the study was to obtain information that would help service providers better understand the opportunity that new cloud service can bring. In addition to IT challenges, priorities, and buying behaviors, we specifically wanted to know more about packaging and pricing for IPV6 translation services, server load balancing as a service, SAN extension services, and virtual desktop services.

Click this link to read about the results.   http://t.co/VKrZmiN4

Data

More than Half of US Large & Medium-sized Enterprises are, or Plan to Be, in the Cloud

According to our recent research, most medium and large enterprises are going to the Cloud.  About 33% of the sample is a current user and additional 8% are piloting it.  This group, known as Cloud Pioneers, is not composed of a group of just SaaS users, either.  To be considered a Cloud user, an enterprise had to be testing or using a Cloud model other than SaaS.  This included any kind of private or public cloud, be it Infrastructure-as-a-Service (IaaS) or Platform-as-a-Service (PaaS).  Furthermore, they also had to actually have people working on it.  Another 16.8% are planning for Cloud.  This group is aptly called the Cloud Planners.  The remaining 42.1% are the Cloud Stragglers, those organizations with no current Cloud plans.

Source: WaveLength Market Analytics/Winn, Five Key Themes, May 2011

Data

Meet the Cloud Pioneers… and a Note about Security Limiting Cloud Adoption

Meet the Pioneers, the group of enterprises leading the way with Cloud adoption. They are distinguished from their colleagues, Cloud Planners and Cloud Stragglers in many ways.  In this post, we’ll keep it to security.  As the figure below show, when Cloud Pioneers prepare for Cloud deployment, tops on the list is upgrading security and implementing encryption.

Source: WaveLength Market Analytics/Winn, Five Key Themes on Enterprise Cloud Computing

For this reason, Pioneers are less concerned with security, as opposed to Stragglers, where security truly limits their adoption.  As you can see from the table below (click it for a larger view) that combines all the concerns we asked about, it is easily apparent.  The highest ranking for a security concern, which is “Reduced control/visibility for security” is 8th for Pioneers, tying with “Technology not yet proven.”  This is because Pioneer’s upgrade security prior to their Cloud deployment.  Because of these projects, for Pioneers, all security concerns rank in the bottom half of the list.   For Stragglers, it’s a different story.  Of their concerns, all security concerns we asked about rank in the top half.  After costs, lack of trusted third parties to help them, and the perception that it’s an unproven technology, security concerns are the real barrier for this group.  It all suggests the opportunity for security vendors to develop the market by easing  the fears of the mainstream market.

 

 

Source: WaveLength/Winn Five Key Themes in Enterprise Cloud Computing

 

 

Data

Now Available: Research Summary on Enterprise IT Buying in the Era Cloud Era

Wavelength Market Analytics recently partnered with Winn Technology Group to conduct a cloud computing research study.  While many recent studies size the market, we wanted to help our vendor clients better understand to whom they need to sell.  In our study, we sought to understand the differences between organizations that are currently adopting or planning some type of cloud computing solution from those that are not.

Study characteristics:

▫         IT decision-makers to include IT VPs and directors

▫         Sample size = 126 surveys collected summer 2010

▫         Large and medium-sized enterprises

▫         Three distinct buyer groups to include Pioneers who are using or testing a cloud solution, Planners who are actively planning for a cloud solution and Stragglers who have no cloud plans at this time.

▫         Complete results in a full-length presentation and report to be available March 2011.

We found that 41% are Pioneering with their Cloud apps, and another 17% are actively planning for a cloud solution.  A total of 58% are doing something in the cloud, meaning that the majority of participating enterprises have some kind of cloud project.


To find out more, a short summary, Generating Demand: A Summary on Enterprise IT Buying in the Early Cloud Era, is available on SlideShare. You can download it at http://www.slideshare.net/khealy/winn-wl-cloudstudysummaryv22.  The full report will be available the second week of March.

You may also want to participate in our latest Webinar Leveraging Data for Demand Generation Success -Wednesday, February 16, 2011 1:00 PM and find out how you can substantially increase lead rates through data analytics best practices in demand generation campaigns.

Click on this link to REGISTER https://www1.gotomeeting.com/register/404109176

Data

For the IT Technology Market Vendor Go to Market Plans, the 4th C=Cloud!

By Ken Rutsky

http://sijobfront.blogspot.com/2010/03/for-it-technology-vendor-go-to-market.html

This ones bursting out like a rainstorm (pun intended) exciting stuff…

Eucalyptus, according to GigaMon, appears to be on the verge of raising a round with a post valuation of $100M on best I can tell revenues in the $0M range! (Granted, a big name CEO joined, but still, 100M valuation??) When I saw this, it really got me thinking of 1) are we entering a cloud bubble and 2) why, even if we are, how the cloud is changing the business that I and my clients are in. I’ll leave topic 1 for another day, but let’s take a look at #2.

4Ps and 3Cs – A Cloudy View
Let’s pull out the trusty old standard and QUICKLY examine how these change or might change because of the cloud….

Product – The cloud opens up new delivery options for just about any hardware or software offering or capability. IT vendors MUST rethink their product plans and at a minimum better have good reasons NOT to be in the cloud.

Pricing and Cost– In IT mind, cloud = subscription, but does cloud = cheap? That’s one of many open questions. The move from perpetual to subscription business is a very tricky one the bigger you get, but the cloud is accelerating an already present trend. Services = subscription. IT products = services…get it…How do you price cloud offerings relative to your traditional on premise/package ones…

And on the cost side, the good news, it’s really cheap to get into business, no more hardware, no more datacenters, no more test labs, no more power bills. Ahhh, that works great for new start-ups. But aren’t you ISVs used to zero marginal costs on sales. Sorry!, get ready for COGS, more users = more COGS. A great example of a business model issue that helps new entrants move faster than existing ones.

Worried about margin cannabilization, well, guess what, the yCombinator start up down the street built hosting COGs into the model from day 1. They don’t expect 95% margins, but you do, oh, no wonder their offering is cheaper. Oh, and by they way, they’ve been built for low cost scaling too, while it’s going to take you a year to get there. Price for scale now and take a margin hit??? Oh so many great marketing problems to solve!

Place – How do you spell “disinter-mediation?” C-L-O-U-D. As product become services, product providers become service providers. Distribution is “free” and market friction goes away. New geos open without friction. At least that’s the theory, but the reality is much more complex and the channel will not go away without a fight and transforming itself…

Promotion – Try and buy, freemium, SEO, Social Media, Viral spread. The Cloud accelerates ALL of these trends. Time to learn some new tricks???

Customer – Who’s your customer, where are they, what do they expect. What are they thinking, what are their habits, who cares about you? How do they find you (see P=Promotion) and how do they expect to be found. As more customers can easily try your product is it right for them, are you missing new growth segments that you just aren’t looking for???

Company – Is the company ready for change? Is the executive team engaged or scared. How high is the sponsorship of cloud inititatives? Is it genuine of lip service. Do you understand the business model barriers to transformation? Sales quota and incentives, rev rec, HR policies? This type of change can hit every corner of the business, you’ve got to be ready.

Competition – New competitors, more cloud ready, new substitute products, new pricing models to compete with and on and on. What Hosting provider or Telco would have ever predicted Amazon as a competitor???

OK, have I convinced you or is the cloud all hype? I’m ready to add the 4th C to the old model, CLOUD! Are You????