A comprehensive study of the attitudes and intentions of UK IT senior decision makers in large private and public sector organisations reveals a maturity of thinking about the migration of enterprise applications to the cloud. To read the full report go to http://bit.ly/GzZ27I
Definition: Enterprise Cloud: < en’ tɘr-priz’ kloud > Complex Fortune 1000 compute environments that require both enterprise-grade performance and security, while also benefiting from the scalability and economics of multi-tenant cloud and virtualization technology in order to fulfill their client and business application requirements.
The end of 2014 will be a pivotal moment for the enterprise cloud Cloud has already been embraced by medium and large enterprises across
the UK private and public sectors as IT and business needs align Cloud-ready applications have been purchased and are now an everyday
part of the contemporary IT estate Mission-critical and non-mission critical data centre applications alike
continue to be migrated to the cloud as the benefits of agility competiveness, productivity and, particularly, cost-effectiveness are appreciated
Despite this, concerns still remain about issues such as security and control The next 18 months will see large mission-critical applications pushed out
of their in-house data centre nests and migrated to the cloud As 2015 dawns, for the majority, the cloud will be the new normal for
enterprise IT
2
THE ERP LANDSCAPE
3
55% of large UK organisations use SAP
44% of large UK organisations use Oracle
SAP Oracle Microsoft IBM Other 0%
10%
20%
30%
40%
50%
60%
84% of large organisations surveyed used some form of ERP, but there is effectively a duopoly of supply
ORGANISATIONS WITH SAP DEPLOY MORE CLOUD TECHNOLOGY
4
SAP users All organisations 0%
20%
40%
60%
80%
100%
SAP users are more advanced in their cloud strategy, with 89% of them utilising cloud technology, as opposed to 77% of organisations overall
APPLICATIONS BEING CONSIDERED MISSION CRITICAL
0%
10%
20%
30%
40%
50%
60%
70%
80%
ERP sits at the hub of the three main applications considered mission-critical, with the other two, SQL Databases and Accounting and Finance applications, both being inextricably linked to the former
CRITICAL APPLICATION TRENDS
ERP systems ranked number one most critical application by more respondents than any other
91% of those utilising SAP with their SQL Databases considered ERP to be mission critical
46 % of SAP users put ERP at the top of their list
6
CONCERNS WHEN MOVING MISSION CRITICAL APPLICATIONS TO THE CLOUD
7
Cloud security Risk to business Loss of application control
72%
60%
54%
48% of SAP users were ‘highly concerned’ over migrating critical applications, as opposed to just 26% for other ERP users. Cloud security, risk to business and loss of application control were the most widely cited worries
BUSINESS BENEFITS OF MISSION-CRITICAL APPLICATION CLOUD MIGRATION
8
Greater company agility Greater company competitiveness Greater company productivity0%
10%
20%
30%
40%
50%
60%
Despite some trepidation in considering mission-critical application migration, increased agility, competiveness and productivity were the most commonly selected business benefits
TECHNOLOGY BENEFITS OF MISSION-CRITICAL APPLICATION CLOUD MIGRATION
9
IT budget savings Freed-up IT staff time to deliver a true internal IT service provider service
51%
52%
53%
54%
55%
56%
57%
58%
59%
60%
The top technology benefits cited were the IT budget savings and greater staff capacity
BUSINESS OBJECTIVES THAT IT SUPPORTS
10
Greater company agility Greater company competitiveness Greater company productivity54%
56%
58%
60%
62%
64%
66%
Across large organisations, SAP users selected a greater average number of benefits than the users of different ERP systems and those without them – indicating that, while the risks might be of greater concern for SAP migration, SAP users also perceive more benefits
MIGRATION PLANS FOR ERP SYSTEMS TO THE CLOUD
11
Already fully migrated
14%
Migrate in the next year31%
Migrate within the next two years
27%
Migrate in more than two years' time
11%
Will never migrate17%
There is evidence that change is on the horizon, with 69% of organisation having plans to migrate within an average of 15 months
FIELD FISHER WATERHOUSE: A CASE STUDY
12
Virtustream virtualised FFW’s entire IT estate using its innovative Micro VM (µVM™) technology
In addition, Virtustream deployed a fully managed and secure hybrid cloud, allowing FFW to benefit from the advantages of Micro VM (µVM™) and on-demand computing, both in their own environment and in the Virtustream managed public cloud
PERCENTAGE OF IT BUDGET SAVED BY MISISON-CRITICAL APPLICATION CLOUD MIGRATION
13
16.95%
Perhaps the greatest factor that has persuaded so many to plan for application migration to the cloud is the potential savings. Of the sample of IT senior decision makers surveyed, the average savings were 16.95% of the entire IT budget
CLOUD SAVINGS: INVESTMENT PLANS
Cloud technology Virtualisation A BYOD programme Big Data Mobile working0%
10%
20%
30%
40%
50%
60%
70%
80%
The positive minority that do plan to invest IT budget savings listed cloud technology and virtualisation as their primary investment targets
METHODOLOGY
The survey was conducted amongst 100 medium and large organisation IT senior decision makers where 50% have 500-3000 employees, whilst the remaining half employ over 3000
70% were private sector organisations There were made up of those in the financial services (17%), business and
professional services (18%), retail distribution and transport (17%) and other commercial sectors (18%) that includes manufacturing, telecommunications, healthcare, education and utilities organisations.
The other 30% serve the public sector Larger organisations form the majority in the private sector sample with
46% vs. 54% The reverse is true in the public sphere with 60% vs 40%
