Cloud Computing: Usage, Relevance and
Satisfaction
SAP Research performed by TNS Infratest
Research Completed: April, 2012
© 2012 SAP AG. All rights reserved. 2
About The Methodology
SAP commissioned TNS Infratest to conduct a survey of over 600
Technology and “Line of Business” decision makers and software users
across organizations with at least 500 employees in the US, UK,
Germany and Brazil. The survey was completed in April 2012.
© 2012 SAP AG. All rights reserved. 3
Introduction Setting the stage: defining Cloud Computing
For purposes of this survey we are defining Cloud Computing
as Internet-based computing
whereby information, IT resources, and business software applications (incl.
email, collaboration and productivity)
are provided as a subscription service to computers and mobile devices.
• Public Cloud: A public cloud is one based on the standard Cloud Computing
model, in which a service provider makes resources, such as applications and
storage, available to the general public over the Internet. A Public Cloud is
offered by an off-site third-party provider (external vendor).
• Private Cloud: A Private Cloud is a proprietary network or data center that
uses cloud computing technologies, such as virtualization. A Private Cloud is
created, managed and used by the organization it serves (internal vendor).
• Hybrid Cloud: A combination of Public Cloud, Private Cloud and classic IT
infrastructure. Hybrid model, which uses the best technologies of the different
approaches. The hybrid Cloud is maintained by both internal and external
providers.
© 2012 SAP AG. All rights reserved. 4
Introduction Setting the stage: defining Cloud Computing Services
We are defining
• SaaS: Software as a Service is a software distribution model in which
applications are hosted by a vendor or service provider and made available to
customers over a network, typically the Internet.
SaaS includes the hosted application management (a provider hosts
commercially available software for customers and delivers it over the Web)
and the software on demand model (the provider gives customers network-
based access to a single copy of an application created specifically for SaaS
distribution).
• IaaS: Infrastructure as a Service is a service model that delivers computer
infrastructure (hardware, storage, servers and data center space, network
components etc.) on an outsourced basis to support enterprise operations.
The IaaS provider provides policy-based services and is responsible for
housing, operating and maintaining the equipment it provides for a client.
• PaaS: Platform as a Service is a service delivery model that allows a
customer to rent virtualized servers and associated services used to run
existing applications, or to design, develop, test, deploy and host applications.
© 2012 SAP AG. All rights reserved. 5
Usage of Cloud Computing Cloud? Already reality and plenty of growth potential
Almost 60% of companies are already in the cloud and additional 20% are planning to do so,
most of which within the next 12 months
Q01
Base: All respondents (n=601)
Usage of Cloud Computing
• Brazil: Higher share of users (66%)
Higher share of planners (27%)
• US: Significantly more users (68%)
But significantly less planners (13%)
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
Still evaluating whether to use Cloud Solutions or not
Don't use Cloud Solutions and don't plan it
Plan to use Cloud Solutions < 12 months
Plan to use Cloud Solutions > 2 years
Using Cloud Solutions < 1 year
Using Cloud Solutions > 1 year
59% using
21% planning 10% undecided 10% refusing
30%
29%
16%
5%
10%
10%
• Germany: Most conservative
Significantly less users (45%)
Significantly more refusals (21%)
• Service Industries: Significantly more users (70%)
• Public Sector: Most conservative
Lowest share of users (50%)
Highest share of refusals (14%)
Information gap: Power users seem to be less aware of the usage of Cloud Computing solutions in their companies: Only 34% of the power users state that Cloud
Solutions are already in use, but 62% of the decision makers.
Hyperlink to the detailed charts
country / target group
company size
© 2012 SAP AG. All rights reserved. 6
Relevance of Cloud Computing No pure IT matter, but important for business success
79% see Cloud Computing as important for the company‟s business success – 35% even think
Cloud Computing is critical. Only 7% see no direct contribution
Relevance of Cloud Computing for the company‟s business success
Greatest differences in the assessment of Cloud Computing appear with respect to target groups:
85% of the IT decision makers are convinced of the importance of Cloud Computing, 75% of the LoB decision makers, but only 57% of the power users.
Lower relevance is attributed to Cloud Computing by:
• Power users
• Germany
It's critical to business
strategy and success
It's important but not critical
It makes a contribution but it's not
well understood or highly valued
No direct contribution
Don’t know
Cloud Computing is considered to be more relevant by:
• IT decision maker
• US
• Service Industries
• Financial Services
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
79% see Cloud Computing
as important
1% 7%
13%
44%
35%
Q02
Base: Cloud Computing User, Planner, Undecided (n=540)
Hyperlink to the detailed charts
country / target group
company size
© 2012 SAP AG. All rights reserved. 7
Satisfaction with Cloud Computing Despite the early stage: positive feedback on the solutions
70% of Cloud Computing users show a high satisfaction with used cloud solutions, 22% are even
„completely satisfied‟
Q04
Base: All Users of Cloud Computing (n=356)
Satisfaction with Cloud Solutions in use
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
Not satisfied at all
Partly satisfied
Satisfied
Very satisfied
Completely satisfied
70%
Top 2 satisfaction
5%
Bottom 2
satisfaction
Don’t know
IT decision maker are most positive regarding Cloud Solutions:
• 78% of the IT decision maker are very satisfied or completely satisfied, but only 65% of the LoB decision maker
• Power users show lower satisfaction (only 40% very satisfied or completely satisfied), but also lower familiarity with the solutions (10% answering ‘don’t know’)
1% 1% 4%
24%
48%
22%
© 2012 SAP AG. All rights reserved. 8
Cloud Computing Investments Where is the journey heading? Especially hardware with Cloud potential
20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions
within the next 36 months, while in the hardware environment this will be true for even more
companies (25%)
Q08
Base: Cloud Computing User, Planner (n=480)
Expectation: what % of the IT budget in the company will be spent for Cloud Solutions?
The lower involvement of power users in Cloud Computing initiatives and the decision process in their companies may account for the large share of power users who
are not able to give an estimation regarding Cloud investments (compared to decision makers). Hence, the shown numbers are clearly determined by decision makers.
Cloud is already no pure IT topic: IT decision maker and LoB decision maker show similar expectations.
The highest potential with respect to Cloud investments in the companies can be seen in
• Brazil: both regarding software and hardware (25% expect a share of 50% or more for cloud solutions in overall software investments within the next 36 months,
32% for hardware investments)
• Manufacturing: both regarding software and hardware (27% expect a share of 50% or more for cloud solutions in overall software investments within the next 36
months, 32% for hardware investments)
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
3%
6%
6%
7%
9%
14%
14%
18%
25%
36%
30%
30%
36%
25%
27%
25%
19%
9%
16%
10%
8%
10%
8%
10%
Software - within next 12 months
> 75%
50% - 75%
25% - 50%
10% - 25%
Don’t know
Software - within next 36 months
Hardware - within next 12 months
Hardware - within next 36 months
<10%
20%
25%
© 2012 SAP AG. All rights reserved. 9
Cloud Computing Deep Dive – Cloud Types Hybrid Cloud with plenty of growth potential
The high relevance of security concerns may account for the clear priority of Private Cloud over
Public. The way into the Private Cloud seem to lead via Hybrid Clouds (currently lowest share of
users, but highest potential)
* Explanation used in the survey: please see the question text
Q22
Base: Cloud Computing User, Planner, Undecided (n=540)
Cloud Type Usage
The most positive estimation can be found among IT decision makers – nevertheless, the only slightly more reserved estimation of LoB decision maker shows
that Cloud is already no pure IT topic.
Information gap: Power users are clearly less familiar with the Cloud topic: e.g. only 10% of the decision maker answered ‘don’t know’ reg. usage of Hybrid Cloud,
but 39% of the power user (same picture for Public and Private Cloud).
• Germany is most conservative with respect to all Cloud Types, low acceptance especially regarding Public Cloud Solutions (26% say ‘do not consider at all)
• US with highest user share regarding Public Cloud (31%) and Private Cloud (46%); BR with highest share of planner with respect to all Cloud Types
• Financial Services are clearly more skeptical than the other industries reg. Public and Hybrid Cloud, Service industries with highest shares of users
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
26%
39%
16%
28%
26%
30%
20%
23%
32%
16%
3%
9%
10%
9%
12%
Public Cloud*
Private Cloud*
Hybrid Cloud*
Already in use
Plan to use < 12 months
Don’t plan but consider
Don’t consider at all
Don’t know
Potential: 62%
© 2012 SAP AG. All rights reserved. 10
Cloud Computing Deep Dive – Cloud Services SaaS is clearly in the lead – openness to all services
Today SaaS (the longest established Cloud Service) is most frequently used, however: similar
openness to the different services. Evaluation of IaaS seems to be one step further than regarding
PaaS (highest share of planner vs. highest share of undecided)
* Explanation used in the survey: please see the question text
Q23
Base: Cloud Computing User, Planner, Undecided (n=540)
Cloud Services Usage
The most positive estimation can be found among IT decision makers – nevertheless, the only slightly more reserved estimation of LoB decision maker shows that
Cloud is already no pure IT topic.
Information gap: Power users are clearly less familiar with the Cloud topic: Only 10% of the decision maker answered ‘don’t know’ with respect to the usage of PaaS,
but 43% of the power user (same picture for SaaS and IaaS).
• Germany is most conservative with respect to all Cloud Services
• US with significantly higher share of users regarding SaaS
• US and Brazil with more openness (planning to use / considering) regarding IaaS and PaaS than UK and Germany
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
SaaS*
IaaS*
PaaS*
Already in use
Plan to use < 12 months
Don’t plan but consider
Don’t consider at all
Don’t know
37%
24%
20%
24%
30%
26%
21%
25%
32%
7%
9%
9%
12%
12%
13%
Similar numbers of respondents,
who do not consider
the respective Cloud Service at all
Different stages of adaption,
but in total similar numbers of respondents,
who are open to use the service
© 2012 SAP AG. All rights reserved. 11
Business issues driving Cloud investments Main drivers: cost reduction, operational efficiency, flexibility
34%
33%
32%
28%
25%
22%
20%
17%
16%
13%
IT LoB User Main drivers for Cloud investments
Need for reduction of operating costs
Need for improvement of operational efficiency
Increasing need for flexibility
Increasing need for mobile worker support
Company growth
(Increasing) Globalization of business
Need for improvement of speed of innovation
Need for collaboration with other companies
Need for higher customer focus & retention
Changing regulatory requirements
Short term perspective: reducing the operational costs is the most important goal driving
investments in Cloud Computing
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
Q07 Selection of max. 3 aspects possible
Base: Cloud Computing User, Planner, Undecided (n=540)
32% 40% 40% 28%
38% 22% 29% 39%
37% 34% 32% 28%
32% 28% 29% 24%
27% 20% 16% 34%
24% 20% 18% 27%
21% 19% 15% 25%
14% 19% 20% 15%
22% 16% 12% 16%
10% 13% 15% 14%
37% 30% 39%
32% 33% 32%
34% 30% 36%
31% 23% 30%
22% 29% 20%
23% 23% 18%
22% 18% 20%
18% 18% 9%
18% 16% 9%
16% 11% 7%
Overall, the Top 5 are all within 9% and therefore all have to be considered.
With respect to the most important factor driving Cloud investments, differences between the countries / target groups can be found:
• Brazil: most important factors driving Cloud investments are ‘need for improvement of operational efficiency’, followed by ‘company growth’
• UK, Germany, IT decision makers: ‘need for reduction of operating costs’ is clear number one
Significantly
above overall
© 2012 SAP AG. All rights reserved. 12
Cloud Computing barriers and benefits Financial and security aspects are critical both as pros and cons
Benefits Barriers / Concerns
34%
33%
28%
27%
23%
19%
18%
14%
14%
12%
12%
11%
11%
10%
1%
Security aspects
Financial aspects
Flexibility aspects
Biggest obstacles when it comes to the implementation of the Cloud: Security concerns and
costs. Security and costs are also seen as main benefits of Cloud Computing beside data &
services access from everywhere
Lack of security
Concerns reg. data loss
Costs
Difficult integration (infrastructure)
Regulatory concerns
Lack of customization
Slow / loss of connection
Losing control of infrastructure
Losing control of SLAs/updates
Concerns about TCO
Data & services access from everywhere
Cost reduction
Data security
Flexibility
Speed of implementation
State-of-the-art technology
Bus. continuity /disaster recover
Scalability
SW: Easier administration
SW: Compatibility
Losing IT competence
Limited functionality
Infrastructure vendor lock-in
No barrier at all
Better cash position
Immediate reaction (comp. needs)
Concentration on core business
SW: Automatic updates
No benefit at all
29%
26%
23%
20%
18%
17%
16%
15%
15%
15%
14%
11%
11%
7%
Especially with respect to the barriers to Cloud Computing, the different aspects are close together – no one should be ignored.
Similar perceptions: Top 3 barriers and benefits are similar across countries, target groups and industries, differences in the relevance are to be found in:
• UK: Financial benefits with significantly higher relevance; security concerns with significantly lower relevance
• Power user: Benefits regarding flexibility with significantly higher relevance
• Service industries: Financial benefits with significantly higher relevance; Public sector: Security concerns with significantly higher relevance
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
Q05 & Q06 Selection of max. 3 barriers resp. benefits possible
Base: Cloud Computing User, Planner, Undecided (n=540)
© 2012 SAP AG. All rights reserved. 13
19%
13%
10%
10%
9%
8%
8%
6%
4%
4%
81%
87%
90%
90%
91%
92%
92%
94%
96%
96%
Cloud Computing – Highest Benefit from the Cloud There is not yet a single ‘killer app’ driving cloud deployment
The respondents see the highest benefit from deploying the solution as a Cloud service with
respect to document management, followed by email and calendar
Q25 & Q26
Base: Respondents using, planning to use or considering to use Cloud Solutions in the
respective area (n=503)
Cloud Applications – Highest benefit from
deploying the solution as a Cloud Service
No clear number one across countries, target groups and industries, expect for:
Brazil (‘document management ‘with 29%, followed by ‘email and calendar’ with 13%)
Source: Online Survey Q1 2012, TNS Infratest on behalf of SAP
Email and calendar
Financial management
Document management
Project management
Collaboration solutions
Security solutions
Mobility solutions
CRM
Billing and transactions
Testing and development
<3%:
HCM / HR solutions,
ERP,
Sourcing solutions,
Sophisticated Analytic solutions
Data access from everywhere as highest benefit from the
Cloud Solutions
Open question: “Can you describe the benefit you
got from the cloud service?”
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