The ForwardThinkers IT Prophets Shaping Tomorrow

ActionableInsight

We Capture

Technology

Changes

in Real-Time

From The Most

Forward Thinking

Enterprise Leading

Technologists

ETR has created new quantitative platforms to communicate and capture large scale technology trends in real-time from Fortune 500 CIOs

2,042 high-level enterprise IT end users globally have participated in our spending intentions survey series in the past 8 years

ETR has collected and analyzed 3 million+ spending intention data points on over 300 private and public technology vendors to determine the most forward thinking CIOs globally

> = >● Opinion driven research

● Very few thought leaders

● Not independent - “Pay-to-

Play” model

● Qualitative research

● Backwards looking research

● Consumer and data driven research

● Largest sample of Fortune 500 CIOs

● No bias - ETR does not accept

payment from technology vendors

● Quantitative research

● Real-time, forward looking research

Enterprise Technology Research

Other Market Research Providers

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The

Questions1. Who is driving change in today’s technology ecosystem?

2. What is the current state of the technology landscape

based on these forward thinkers?

3. What vendors are becoming obsolete?

4. What impact will public cloud have on the next

generation of applications and services?

Cluster analysis is a data analysis technique

ETR uses to identify respondents with similar

attributes

Using eight years’ of historical end user

spending intentions data, vendor stock price

data, and statistical software, ETR determined

which CIOs / CTOs are consistently ahead of

the curve

These clusters of respondents have a proven

track record based on their historical spending

intentions, and as a result, are useful for

gauging upcoming market share shifts

Cluster and Link Analysis:The Forward Thinkers and Where They Are Spending

Link analysis is a data analysis

technique ETR uses to analyze the

commonalities in spending intentions

amongst these clusters of forward

thinking respondents

Which sectors and vendors are their

organization’s IT architecture and

dollars focused on

Which vendors are becoming displaced

by emerging technologies OR which

technologies are becoming less

needed/desirable

The Wisdom of Clusters

Less Needed / Desirable or Less Disruptive More Disruptive

Time of Adoption and

Increase

Vendor

= Respondents

Late(post consensus)

Early (pre consensus)

Cluster 1 : Using 3M+ Data Points, ETR Found 91Respondents who are Early Adopters of Technology That Become Pervasive Throughout the

Enterprise

CLUSTER 1 : Early Adopters of Disruptive Technology

$220

$200

$180

$160

$140

$120

$100

$80

$60

$40

$20

$0

ST

OC

K P

RIC

E

PO

SIT

IVE

NE

T S

PE

ND

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Palo Alto

Stock Price

Positive Spend Captured By ETR

IPO

Da

te

1.15.14 - 4.15.14

The market and general public (consensus) view the technology as disruptive and pervasive

Early Adopters of Palo Alto Networks

Early(pre consensus)

Late(post consensus)

Time of Adoption

and Increase

Less Needed / Desirable or Less Disruptive More Disruptive

Cluster 2 : Using 3M+ Data Points, ETR Found 93 Respondents who are Early Replacers of Technologies that Became Obsolete or Less Needed Throughout the Enterprise

Disrupted or Less Needed / Desirable

= Respondents

Time of Replacement

and Decrease

Late(post consensus)

Early(pre consensus)

Early Replacers of Disrupted or Less Needed / Desirable Technology

$60

$50

$40

$30

$20

$10

$0

ST

OC

K P

RIC

E

NE

GA

TIV

E N

ET

SP

EN

D

40%

35%

30%

25%

20%

15%

10%

5%

0%IPO

Da

te

Early Replacers of Barracuda Networks

4.15.15 - 7.15.15

The market and general public (consensus) view the technology as disruptive and pervasive

CLUSTER 2 : Early Replacers of Less Needed Technology

Disrupted or Less Needed / Desirable

Less Needed / Desirableor Less Disruptive

More Disruptive

Cluster 3 : 36 Respondents who are Early Adopters of Disruptive Technology and Early Replacers of Technology That Became Obsolete

Technology

Time of Adoption

and Increase

Time of Replacement

and Decrease

= Respondents

Late(post consensus)

Early(pre consensus)

Late(post consensus)

Early(pre consensus)

Respondents who have adopted disruptive technology + replaced disrupted technology

Connecting the Dots

Clusters 1 and 2 Forward Looking Spending Intentions Linked By RespondentPriorities and Shifts in IT Architecture Amongst Forward Thinking CIOs Occurring in 2016

Ne

t S

co

re G

row

th Y

/Y

Market Share Growth Y/Y

Mobile Device Management

IP Telephony

Storage

Video Conferencing

Virtualization

NetworkingServer

Data Warehousing

Information Security

Infrastructure Software

Productivity Apps

Enterprise Apps

ECM

Hosted Software

Analytics / B.I. / Big Data

Internet Marketing /

Social Media

Replacing / Decrease in Spend

Adoption / Increase in Spend

Managed Hosting / Cloud Computing(Amazon AWS, Microsoft Azure)

Cluster 3 Forward Looking Spending Intentions Linked By RespondentN

et

Sc

ore

Gro

wth

Market Share Growth

Mobile Device Management

IP Telephony

Storage

Video Conferencing

Virtualization

NetworkingServer

Data Warehousing

Information Security

Infrastructure Software

Productivity Apps

Enterprise Apps

ECM

Hosted Software

Analytics / B.I. / Big Data

Internet Marketing /

Social Media

Managed Hosting / Cloud Computing(Amazon AWS, Microsoft Azure)

Information Security

Clusters 1 and 2 Forward Looking Spending Intentions

InformationSecurity

109876543210

1141210

86420

Cluster 1 (91 Respondents) Adoptions and IncreasesIncreaseAdoption

DecreaseReplacing

Cluster 2 (93 Respondents) Replacing and Decreases

Trends & Disruptions

The Industry-Leading Technologists Have Revealed Tomorrow’s Tech Landscape.

Public CloudContainersDeveloper Tools Log Analytics Open Source Converged Infrastructure API ManagementData Management

These vendors are becoming obsolete, fast.

Cloud Storage > In-House Storage

Containers & Serverless Platforms >VMs

Cloud > On Premise

Microservices > Monolithic Applications

Spotting the Patterns

Public cloud adoption is disrupting traditional architectures and stacks

Microsoft and Amazon are expanding into new business lines, hurting pure-play and legacy vendors

Public cloud adoption is benefitting the microservicesecosystem

In turn, monolithic vendors and applications are becoming less important as organizations shift to “small, loosely coupled and composable autonomous pieces” - Containers, developer tools, log analytics, open source, converged infrastructure, and API and data management will make up tomorrow's technology stack

Four

Patterns

Emerge

*Matt Miller, Partner at Sequoia, on the Microservices Ecosystem

Augmented Research

Consensus views the technology as disruptive

Disruptive

Vendor

Roadmap

Recap

The

Process

Flow for

Identifying

the Next

Wave of

Disruptive

Vendors

With a Sample of 3500+IT Professionals, ETR’s proprietary data science was able to identify the

148 consistently

prophetic Chief Technologists

ClusterDetermine IT Leaders ahead ofthe curve in adopting disruptivevendors

LinkDetermine which sectors and vendors their organization’s IT architecture and dollars are focused on moving forward

PerformanceStock Price Performance helpsvalidate the change in vendors weobserve amongst Clusters 1 and 2

Less Needed /

Desirable or Less

Disruptive

More

Disruptive

= Respondents

Cluster 1:

6 Early Adopters

of Disruptive

Technology XYZ

JAN16: Cluster 1 Respondent adopts Vendor XYZ

JAN16: Cluster 1 Respondent adopts Vendor XYZ

JAN16: Cluster 1 Respondent adopts Vendor XYZ

APR16: Cluster 1 Respondent adopts Vendor XYZ

OCT16: Cluster 1 Respondent adopts Vendor XYZ

OCT16: Cluster 1 Respondent adopts Vendor XYZ

If You Can’tBeat ‘Em

Cloud

Ready

Tech

>Monolithic

Platforms

“Go small to get big”

- Matt Miller, Partner at Sequoia, on the Microservices Ecosystem

ThinkingForward