Webinar The Forrester Wave Hosted Private Cloud Q

Webinar The Forrester Wave™: Hosted Private Cloud, Q 1 2013 Lauren E. Nelson, Analyst Heather Belanger, Research Associate February 20, 2013. Call in at 10: 55 a. m. Eastern time October 28, 2011

It’s early in the hosted private cloud market — no clear leaders yet.

Agenda › What is hosted private cloud? › Forrester Wave process overview › State of the market › Evaluation • Criteria • Results › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 3

46% of enterprises want to build a private cloud, but many aren’t ready. . . “Which of the following initiatives are likely to be your firm’s/organization’s top hardware/IT infrastructure priorities over the next 12 months? ” (Percentage of respondents who answered “critical” or “high” priority) Base: North American and European IT decision-makers at enterprise firms with 1, 000 or more employees; Source: Forrsights Hardware Survey, Q 3 2010. *Source: Forrsights Hardware Survey, Q 3 2011. †Source: Forrsights Hardware Survey, Q 3 2012 © 2013 Forrester Research, Inc. Reproduction Prohibited 4

. . . nor will they get there within the next year “What are your firm’s plans to implement the following server virtualization management capabilities? ” Base: 773 North American and European IT decision-makers at firms that are using x 86 server virtualization; Source: Forrsights Hardware Survey, Q 3 2012 © 2013 Forrester Research, Inc. Reproduction Prohibited 5

Enter hosted private cloud Source: Forrsights Hardware Survey, Q 3 2012 © 2013 Forrester

Defining hosted private cloud › Meets the NIST definition of private cloud: • Cloud infrastructure is provisioned for exclusive use by a single organization comprising multiple consumers (e. g. , business units). It may be owned, managed, and operated by the organization, a third party, or some combination of them, and it may exist on- or off-premises. › Externally located › Dedicated infrastructure* › Iaa. S = infrastructure management only* *Forrester provided some flexibility on these. © 2013 Forrester Research, Inc. Reproduction Prohibited 7

Why buy external private cloud instead of building it? › Key advantages: • Start with a real cloud from day 1. • Leverage external cloud expertise. • Position yourself for a hybrid future. • Simplify capacity planning and upgrades. © 2013 Forrester Research, Inc. Reproduction Prohibited 8

Agenda › What is hosted private cloud? › Forrester Wave process overview › State of the market › Evaluation • Criteria • Results › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 9

Research process for the Forrester Wave: selection › Data center presence in at least two major regions › Default: provider manages no higher than the OC layer › Default: provides compute dedicated to customer › Required minimum contract length: not longer than one year › Generally available by September 1, 2012 © 2013 Forrester Research, Inc. Reproduction Prohibited 10

Research process for Forrester Wave › Questionnaire • Completion of questionnaire on current offering, future strategy, and market presence on 25 total evaluation criteria that roll up into 12 general categories › Demo • Completion of two mandatory scripts on deployment capabilities and security followed by a 10 -minute section to highlight unique features. Total maximum demo length is 40 minutes. Demos are recorded. © 2013 Forrester Research, Inc. Reproduction Prohibited 11

Research process for Forrester Wave (cont. ) › Strategy survey • Vendors completed a strategy survey to show current and future strategies and planned enhancements. › Customer references • Three 30 -minute interviews on use and experience Note: If you’re an FLB client, you’ll be able to see these demos along with a technical overview of the solutions evaluated. This is set to publish in the upcoming weeks. If you’re interested, please contact your FLB advisor. © 2013 Forrester Research, Inc. Reproduction Prohibited 12

Agenda › What is hosted private cloud? › Forrester Wave process overview › State of the market › Evaluation • Criteria • Results › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 13

Immaturity in the hosted private cloud market means variability › Management of solution layers › Tenancy of infrastructure components › Nomenclature › Wide variety of capabilities across criteria

© 2013 Forrester Research, Inc. Reproduction Prohibited 15

Agenda › What is hosted private cloud? › Forrester Wave process overview › State of the market › Evaluation • Criteria • Results › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 16

Current offering evaluation criteria: high level Criteria Why this matters. . . Self-service access Key for enterprises to set role-based, self-service access for deployment of resources Multi-data-center options Key for international organizations or those focusing on disaster recovery and/or increased geographic presence without substantial investment Automation capabilities Automation is key for agility. To best harness cloud services, vendors must develop their automation capabilities. Upfront infrastructure configuration options Key for enterprises looking for a variety in resources requested and customizable configuration options Customer experience Key for enterprises that prioritize the vendor/client relationship through interactions, support, SLAs, and contract flexibility Security and monitoring capabilities One of the top concerns of users today — security is a top priority. © 2013 Forrester Research, Inc. Reproduction Prohibited 17

Strategy evaluation criteria: high level Criteria Why this matters. . . Planned enhancements This is a critical consideration when choosing a vendor in a developing market. It’s important that vendors improve current weaknesses and look to embrace the hosted private cloud advantage as part of this strategy. As a user, it’s also critical to see if the provider priorities align with your own interests. Additional hosting options Lack of additional hosting options limits how your vendor can grow with your organization’s needs as they expand to interacting hybrid scenarios. Third-party ecosystem Key for those looking for capabilities outside of basic platform or looking to connect multiple services Cost Cloud is cheaper with the right use model, so ensuring that you’re using hosted services optimally is important. Forrester provided two sample cost models to compare prices. © 2013 Forrester Research, Inc. Reproduction Prohibited 18

Market presence evaluation criteria: high level Criteria Why this matters. . . Installed base This criterion shows if the solution has been tested and utilized by other enterprise customers. Total installed base varied greatly within this evaluation. Revenue shows how prevalent and likely the development focus of the service provider on this particular product in relation to its other services. © 2013 Forrester Research, Inc. Reproduction Prohibited 19

Evaluation results © 2013 Forrester Research, Inc. Reproduction Prohibited 20

Evaluation results (cont. ) © 2013 Forrester Research, Inc. Reproduction Prohibited 21

? How do you select a solution?

Creating your shortlist › Breadth often doesn’t equate to the best fit for you: Customize it! › Consider the criteria that are most important to your business requirements and which vendors have strength in those areas. • What’s your cloud strategy? • Do you have existing vendor relationships with providers? • How much technical expertise do you have in-house and among your expected user base? • What are your security requirements? • Who is the desired end user? • How does this fit into your existing outsourcing strategy? © 2013 Forrester Research, Inc. Reproduction Prohibited 23

Agenda › What is hosted private cloud? › Forrester Wave process overview › State of the market › Evaluation • Criteria • Results › Recommendations © 2013 Forrester Research, Inc. Reproduction Prohibited 24

Ask yourself and your team › If you’re focused on internal private: Can you really get there? › What is your cloud strategy? • Does it embrace economics and outsourcing? • Have you done your due diligence on security? • Are you embracing the agility equation? › What are you looking for from a cloud service? › What is the minimum level of additional features and services that you can live with for cloud? • Can you settle for virtually isolated? © 2013 Forrester Research, Inc. Reproduction Prohibited 25

Recommendations › Do your cloud homework. • Know the basics about cloud economics, security, application fit, and where others fall short of ROI. › Develop your cloud strategy with the business. › Don’t short change self-service access. › Select a solution that opens the door to hybrid. › Strategically decide what will live in this environment. › Do your homework on selecting a vendor and the terms of the service. © 2013 Forrester Research, Inc. Reproduction Prohibited 26

Thank you Lauren E. Nelson +1 617. 613. 6682 lneslon@forrester. com Twitter: @lauren_e_nelson