How IT will disrupt in 2016: The ITaaS imperativeDonnie Berkholz, Ph.D.Research Director — Development, DevOps, & IT Ops

Verismic, Dec 2015

2

3

4

Scalable “genius bars”

5

Minimizing risk, maximizing agility

Source: Various custom 451 studies

6

The need for speed

Source: 451 DevOps study, Q3 2014

P R O G R E S S

The journey to software-defined infrastructure has been slowQ. In what phase are you in evolving your internal infrastructure

(i.e., cloud-enabling) environment? n=158. Source: Cloud Computing – Wave 7

Standard-ization

8% Consolidation6%

Virtualization 32% Automation

26%

Orchestration 11%

Private Cloud17%

7

8

CLOUD COMPUTINGQ2 2015

Q9(Left).Thinking of all the applications your organization runs, approximately what percentage are currently running in the following cloud and non-cloud environments?Q9(Right).Approximately what percentage will be running two years from now?

Applications by Environment – Cloud Respondents

Today In Two Years

Source: 451 Research, Voice of the Enterprise: Cloud Computing, Q2 2015

On-Premises, Non-Cloud

Off-Premises, Non-Cloud

On-premises Private Cloud

Hosted Private Cloud

Infrastructure-as-a-Service (IaaS)/Public Cloud

Software-as-a-Service (SaaS)

35.7%

7.0%

19.2%

12.0%

10.6%

15.6%

Percent of Samplen = 776

On-Premises, Non-Cloud

Off-Premises, Non-Cloud

On-premises Private Cloud

Hosted Private Cloud

Infrastructure-as-a-Service (IaaS)/Public Cloud

Software-as-a-Service (SaaS)

52.9%

8.0%

15.3%

7.9%

5.7%

10.1%

Percent of Samplen = 781

9

10

11

But it’s not that simple

12

Cloud “aaS” market highlights

13

Phases of cloud adoption

15

Digging into infrastructure SaaS

16

IT Management moving to *aaS too

CLOUD COMPUTINGQ2 2015

Q22(Left).Approximately what percent of the Systems Management and Orchestration (Server, Storage and Private Cloud) workload is deployed in the following environments today?Q22(Right).Approximately what percent of the Systems Management and Orchestration (Server, Storage and Private Cloud) workload will be deployed in the following environments in two years’ time?

Systems Management and Orchestration (Server, Storage and Private Cloud) Distribution – Cloud Respondents

17

Current Future

Source: 451 Research, Voice of the Enterprise: Cloud Computing, Q2 2015

On-Premises, Non-Cloud

Off-Premises, Non-Cloud

On-premises Private Cloud

Hosted Private Cloud

Infrastructure-as-a-Service (IaaS)/Public Cloud

Software-as-a-Service (SaaS)

55.0%

5.9%

19.9%

9.5%

5.2%

4.5%

Percent of Samplen = 137

On-Premises, Non-Cloud

Off-Premises, Non-Cloud

On-premises Private Cloud

Hosted Private Cloud

Infrastructure-as-a-Service (IaaS)/Public Cloud

Software-as-a-Service (SaaS)

38.5%

5.8%

25.7%

11.4%

10.8%

7.8%

Percent of Samplen = 129

What business users (LOBs) need/expect of IT• They don’t care about any of

the stuff on the last few slides

• They need better, cheaper, faster (sometimes different)• 2 of the 4 will do – for now

• Why can’t my IT organization work like Uber? Box, Salesforce, AWS, Apple?

CIO

18

Factors inhibiting software-defined infrastructure and ITaaS• Indecisive organization• Lack of collaboration• Poor planning• Inadequate skills• Dated, rigid IT processes• Complexity of orchestration, administration and integration tooling• Lack of technology maturity

This is good news for IT organizations – sort of!It buys time and helps formulate IT strategy

19

Getting started: IT strategy for the journey to ITaaS• Accelerate virtualization (server, storage, networking) toward a

SDDC• Push IT siloes together• Rethink IT processes• Expand IT self-service catalogues and offer to LOBs• Relinquish commodity technology and services, and ‘unprofitable

business’ to service providers and vendors (partners)• Stick to high-value competitively differentiated services• Inventory IT building blocks and assemble into differentiated assets

= reference architectures & ease their deployment

20

Question:What is your core differentiator

as a business?

21

22

Thank you!Donnie BerkholzTwitter: @dberkholzdonnie.berkholz@451research.com