© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Digital Transformation is
Cloud-Powered
Dr. Paul Miller, Senior Analyst
@PaulMiller
June 6, 2018
2© 2018 FORRESTER. REPRODUCTION PROHIBITED.
“Any colour you want...”
3© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Of 500,000 units rolling off the production line, only
two are identical...
4© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Fast digital businesses form cloud-based ecosystems
centered on the customer
5© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Cloud enables
all of this...
- agility
- flexibility
- scale
- connectedness
Source: Cloud Powers The New Connected Economy Forrester report
6© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Source: From Grease To Code: Industrial Giants Bet Their Future On Software Forrester report.
7© 2018 FORRESTER. REPRODUCTION PROHIBITED.
“Software is eating the world”
Marc Andreessen, Venture Capitalist
8© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Industrial firms
chase software
credibility
Source: From Grease To Code: Industrial Giants
Bet Their Future On Software Forrester report
9© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Pursue four connected strategies to recruit and retain
Source: Big Industry Fights Silicon Valley In A War For Talent Forrester report
10© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Public cloud spending is in hypergrowth
$114B $236B
Source: The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 Forrester report
2x
3x
11© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Public cloud adoption is strong in Europe
Base: 308 to 655 European enterprise IT infrastructure technology decision makers (1,000+ employees); Source: Forrester Data Global Business Technographics®
Infrastructure Surveys, 2014 to 2017
2013 2014 2015 2016
14%
26%
39%
53%
0%
10%
20%
30%
40%
50%
60%
% of European companies that use a public cloud IaaS/PaaS platform
2017
“What are your firm’s plans to adopt public cloud pay-per-use IaaS/PaaS platforms?”
2014 2015 2016
(European, public)
12© 2018 FORRESTER. REPRODUCTION PROHIBITED.
28%
29%
31%
Performance
Cost of migration
Compliance
Security and
privacy
23%
23%
24%
28%
Cost of
migration
Too difficult to
track spending
Compliance
Security and
privacy
North America Europe*
Top public cloud concerns
Base: 906 enterprise hardware decision makers across North America, public cloud adopters; *820 enterprise hardware decision makers across Europe, public cloud
adopters; Source: Forrester Data Global Business Technographics® Infrastructure Survey, 2017
37%
13© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Top public cloud drivers
Base: 974 infrastructure decision makers whose firms are planning, implementing, and expanding public cloud in North America; *899 infrastructure decision makers
whose firms are planning, implementing, and expanding public cloud in Europe; Source: Forrester Data Global Business Technographics® Infrastructure Survey, 2017
37%
38%
38%
38%
Lower capital
expenditures
Remain competitive as
an IT organization
Improved disaster
recovery and business
continuity
On-demand capacity and
scalability
North America Europe*
29%
30%
30%
32%
Lower capital
expenditures
Temporary or project-
based capacity needs
Improved security or
ability to meet compliance
regulations
Improved disaster
recovery and business
continuity
14© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Hybrid by the numbers
Source: Business Technographics Infrastructure Survey, Q3 2017
Base: 246 European infrastructure decision makers
Hosted Private Cloud
79%
Private Cloud
75%
Percentage of public cloud users that also use the
following other cloud deployment types:
“How many different vendor products does your firm
use as providers for public cloud platform?”
› 65% who use public cloud use 2+
› 65% self-describe as hybrid
already
65%
Use two+ providers One vendor
35%
Two vendors
22%
Three
vendors
12%
Four
vendors
7%
Five+
vendors 24%
15© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What challenges have you faced/expect to face deploying or using
multiple cloud platforms or environments?
Base: 764 European infrastructure decision-makers whose firms are planning-implementing-expanding hybrid cloud
Source: Forrester’s Global Business Technographics Infrastructure Survey, Q3, 2017
18%
19%
19%
20%
20%
20%
21%
21%
21%
22%
23%
23%
25%
27%
0% 5% 10% 15% 20% 25% 30%
Lack of hybrid cloud management tools for operations
Understanding different cloud platform services / comparing…
Network design – architecting hybrid cloud networks, virtual…
Inconsistent service levels across cloud environments
Lack of skilled employees to manage multiple cloud platforms
Migration of apps and/or data between clouds (vendor lock-in…
Managing network performance/latency between clouds and…
Tracking usage across multiple clouds
Application support issues
Monitoring is more difficult in a hybrid environment
Managing compliance levels across environments
Tracking costs across multiple clouds
Privacy concerns
Security concerns
FORRESTER.COM
Thank you
© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Paul Miller
+44 7769 740083
@PaulMiller
pmiller@forrester.com

Digital Transformation is Cloud-Powered

  • 1.
    © 2018 FORRESTER.REPRODUCTION PROHIBITED. Digital Transformation is Cloud-Powered Dr. Paul Miller, Senior Analyst @PaulMiller June 6, 2018
  • 2.
    2© 2018 FORRESTER.REPRODUCTION PROHIBITED. “Any colour you want...”
  • 3.
    3© 2018 FORRESTER.REPRODUCTION PROHIBITED. Of 500,000 units rolling off the production line, only two are identical...
  • 4.
    4© 2018 FORRESTER.REPRODUCTION PROHIBITED. Fast digital businesses form cloud-based ecosystems centered on the customer
  • 5.
    5© 2018 FORRESTER.REPRODUCTION PROHIBITED. Cloud enables all of this... - agility - flexibility - scale - connectedness Source: Cloud Powers The New Connected Economy Forrester report
  • 6.
    6© 2018 FORRESTER.REPRODUCTION PROHIBITED. Source: From Grease To Code: Industrial Giants Bet Their Future On Software Forrester report.
  • 7.
    7© 2018 FORRESTER.REPRODUCTION PROHIBITED. “Software is eating the world” Marc Andreessen, Venture Capitalist
  • 8.
    8© 2018 FORRESTER.REPRODUCTION PROHIBITED. Industrial firms chase software credibility Source: From Grease To Code: Industrial Giants Bet Their Future On Software Forrester report
  • 9.
    9© 2018 FORRESTER.REPRODUCTION PROHIBITED. Pursue four connected strategies to recruit and retain Source: Big Industry Fights Silicon Valley In A War For Talent Forrester report
  • 10.
    10© 2018 FORRESTER.REPRODUCTION PROHIBITED. Public cloud spending is in hypergrowth $114B $236B Source: The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 Forrester report 2x 3x
  • 11.
    11© 2018 FORRESTER.REPRODUCTION PROHIBITED. Public cloud adoption is strong in Europe Base: 308 to 655 European enterprise IT infrastructure technology decision makers (1,000+ employees); Source: Forrester Data Global Business Technographics® Infrastructure Surveys, 2014 to 2017 2013 2014 2015 2016 14% 26% 39% 53% 0% 10% 20% 30% 40% 50% 60% % of European companies that use a public cloud IaaS/PaaS platform 2017 “What are your firm’s plans to adopt public cloud pay-per-use IaaS/PaaS platforms?” 2014 2015 2016 (European, public)
  • 12.
    12© 2018 FORRESTER.REPRODUCTION PROHIBITED. 28% 29% 31% Performance Cost of migration Compliance Security and privacy 23% 23% 24% 28% Cost of migration Too difficult to track spending Compliance Security and privacy North America Europe* Top public cloud concerns Base: 906 enterprise hardware decision makers across North America, public cloud adopters; *820 enterprise hardware decision makers across Europe, public cloud adopters; Source: Forrester Data Global Business Technographics® Infrastructure Survey, 2017 37%
  • 13.
    13© 2018 FORRESTER.REPRODUCTION PROHIBITED. Top public cloud drivers Base: 974 infrastructure decision makers whose firms are planning, implementing, and expanding public cloud in North America; *899 infrastructure decision makers whose firms are planning, implementing, and expanding public cloud in Europe; Source: Forrester Data Global Business Technographics® Infrastructure Survey, 2017 37% 38% 38% 38% Lower capital expenditures Remain competitive as an IT organization Improved disaster recovery and business continuity On-demand capacity and scalability North America Europe* 29% 30% 30% 32% Lower capital expenditures Temporary or project- based capacity needs Improved security or ability to meet compliance regulations Improved disaster recovery and business continuity
  • 14.
    14© 2018 FORRESTER.REPRODUCTION PROHIBITED. Hybrid by the numbers Source: Business Technographics Infrastructure Survey, Q3 2017 Base: 246 European infrastructure decision makers Hosted Private Cloud 79% Private Cloud 75% Percentage of public cloud users that also use the following other cloud deployment types: “How many different vendor products does your firm use as providers for public cloud platform?” › 65% who use public cloud use 2+ › 65% self-describe as hybrid already 65% Use two+ providers One vendor 35% Two vendors 22% Three vendors 12% Four vendors 7% Five+ vendors 24%
  • 15.
    15© 2018 FORRESTER.REPRODUCTION PROHIBITED. What challenges have you faced/expect to face deploying or using multiple cloud platforms or environments? Base: 764 European infrastructure decision-makers whose firms are planning-implementing-expanding hybrid cloud Source: Forrester’s Global Business Technographics Infrastructure Survey, Q3, 2017 18% 19% 19% 20% 20% 20% 21% 21% 21% 22% 23% 23% 25% 27% 0% 5% 10% 15% 20% 25% 30% Lack of hybrid cloud management tools for operations Understanding different cloud platform services / comparing… Network design – architecting hybrid cloud networks, virtual… Inconsistent service levels across cloud environments Lack of skilled employees to manage multiple cloud platforms Migration of apps and/or data between clouds (vendor lock-in… Managing network performance/latency between clouds and… Tracking usage across multiple clouds Application support issues Monitoring is more difficult in a hybrid environment Managing compliance levels across environments Tracking costs across multiple clouds Privacy concerns Security concerns
  • 16.
    FORRESTER.COM Thank you © 2018FORRESTER. REPRODUCTION PROHIBITED. Paul Miller +44 7769 740083 @PaulMiller pmiller@forrester.com

Editor's Notes

  • #5 Data on what works, what sells, where the niggles are, etc... Data-driven decision making. Feedback loops. Orgs change, as customers change. Systems and technology must adapt. And that’s a huge opportunity.
  • #8 WSJ, 2011.
  • #13 Security still a concern, too! And, broadly, enterprises finding the shift to cloudy working hard… they need help.
  • #14 NOTE security is a driver – orgs now recognising that big cloud providers can do security better.