Gaining Momentum for IaaS
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A recent Accenture survey conducted in the Netherlands revealed that over half of organizations have adopted Infrastructure as a Service (IaaS), driven by the need for flexibility, cost reductions, and quicker implementation timelines. Larger organizations are more likely to choose public IaaS, with security and compliance being significant concerns for those considering the transition. By 2020, companies expect approximately 50% of their applications and data to be hosted on public IaaS, although understanding of security and compliance aspects is still developing.
Gaining Momentum for IaaS
- 1. IAAS SURVEY FACTSHEET GAINING MOMENTUM FOR IAAS The ability to adopt to new innovations is a key capability for the future of any organization. The ability to scale up or down the supporting infrastructure is an important part of enabling this flexibility. In the traditional world provisioning infrastructure is a time-consuming exercise, spanning weeks or months, with long- term investments at its core. In today’s digital world, Infrastructure as a Service (IaaS) is the answer to adapt to these increasingly demanding needs. IaaS provides the agility to quickly scale up or down the computing power when needed. IaaS allows organizations to self-provision the needed resources on a pay-per-use basis, removing the requirement of up-front investments. In a survey held end of 2016, we asked organizations about their IaaS adoption. More than half of the surveyed companies have already selected a public IaaS provider. The results indicate that companies choose IaaS for TCO reductions, flexibility and the quicker implementation timelines. IaaS is more prevalent among larger organizations. IaaS solutions are mainly revolving around new projects and innovations as well as hosting development and test environments. This indicates a market that is still relatively new, and requires maturing in the understanding of the security and compliance aspects. By 2020 companies expect nearly 50% of the production applications and data to reside in the public cloud.
- 2. IAAS SURVEY FACTSHEET Accenture has recently conducted an IaaS survey in the Netherlands among large public and private organizations. The goal of this survey was to have a better understanding of the adoption rate of IaaS solutions and the current thinking around certain IaaS topics within all types of organizations. • The market for public IaaS is highly fragmented, almost half of the companies did not select a public IaaS vendor (yet). • Public IaaS adoption is more prevalent among larger organizations. 66% of organizations with more than 10,000 employees have selected a public IaaS vendor versus 50% of organizations with less than 10,000 employees • 79% of the companies is considering IaaS. Hosting IaaS in a private datacenter is the most preferred option. However, most companies indicated they consider several hosting options pending on the purpose. No 46% Amazon 9% Azure 17% Google 4% IBM 2% Oracle 9% Other 13% Has your company selected a public IaaS vendor? Is your company thinking about infrastructure as a service?* Key Facts *) Multiple answers were possible 44% 29% 28% 21% Yes, in private data center Yes, in public data center Yes, In data center of a partner No
- 3. IAAS SURVEY FACTSHEET • Current IaaS use cases revolve around new projects and innovations and the lift and shift of development and test environments. • Lift and shift of production applications is lagging behind the lift and shift of development and test applications, however the projected adoption of production applications by 2020 shows the growth potential. • Archiving data is the least sought after IaaS use case today, however companies estimate that half of their data will be on public IaaS by 2020. • Companies estimate that roughly half of their data and production applications is on public IaaS by 2020. It is estimated that more then half of new projects and development and test applications will be on public IaaS by 2020. Is your company implementing / has implemented IaaS solutions for the following use cases?* What percentage of your company's New Projects, Dev & Test apps, Data and Production apps will be on public IaaS in 2020? * 48% 49% 56% 59% Production applications Data Development & test applications New projects KeyFacts *) Multiple answers were possible 24% 49% 47% 35% 17% 0% 20% 40% 60% Not considering a use case for IaaS New projects / innovations Lift & shift, for development & test applications Lift & shift, for production applications Archiving data
- 4. IAAS SURVEY FACTSHEET 4 • Total cost of ownership reduction is the main reason for choosing IaaS. However, cost is not the only driver. Other reasons include quicker implementations and flexibility. Only 2% of the companies choose IaaS to minimize vendor lock-in. • Security and compliance considerations are top of mind when it comes to blockers for moving to public IaaS. Organizations consider security the biggest caveat, while research by Gartner suggest that cloud IaaS workloads can be more secure than those in traditional data centers1. Maturity and service continuity are not considered as major concerns for moving to IaaS Security 35% Compliance (rules & regulations) 25% Other 18% Maturity of IaaS: Architecture & Technology 14% Service Continuity 8% What is the biggest blocker for your company to move to IaaS? 32% 21% 21% 17% 7% 2% TCO / cost reduction Agility / Flexibility Quicker implementation Opex vs. Capex costs Other Minimise vendor lock-in What will be the main reason for your company to choose for IaaS? Key Facts 1)MacDonald et al, 2016, Gartner, https://www.gartner.com/document/3352444
- 5. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. We help organizations maximize their performance and achieve their vision. We develop and implement technology solutions to improve our clients’ productivity and efficiency — and may run parts of their operations on their behalf. Ultimately, we enable our clients to become high-performance businesses and governments. The company generated net revenues of US$32.9 billion for the fiscal year ended Aug. 31, 2016. Its home page is www.accenture.com. Christian van Bochove Oracle IaaS Sales Lead NL c.v.bochove@accenture.com For more information on this Public IaaS survey, contact Christian van Bochove. In which industries is your organization operating? 34% 34% 31% 18% 16% Health & Public Service Communications, Media & Technology Products Financial Services Resources How many employees does your organization have? Where does your company operate? Worldwide 42% Domestic Only 36% Europe Only 22% Key Facts The survey included 164 responses from different companies that are based in the Netherlands. 59 of them operate only in the Netherlands, 36 companies operate only in Europe and 69 companies operate globally. The survey was held during two events, organized by Accenture and Oracle in December 2016. The questions asked in the survey were vendor agnostic in nature. Most participants indicated to be working for an IT department. The majority works for a large organization of more than 1.000 employees IAAS SURVEY FACTSHEET <1000 33% >10000 32% 1000-10000 35% For which department are you working within your organization? Business 43% IT – Technical 31% IT - Functional 26%