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The New Language

of Cloud ComputingCloud has reached a tipping point in the enterprise. An exciting new era of cloud deployments is being ushered in, one characterised by high levels of �exibility, agility and innovation. Today cloud is no longer the buzzword of �ve years ago, and is now part of the fabric of the modern enterprise. However, while everyone is talking about the cloud, the conversation is evolving with technologies such as big data, analytics and the Internet of Things becoming increasingly cloud-based.

F5 commissioned a survey to examine enterprises’ perception and adoption of cloud computing in today’s app-driven era. It observed the emergence of a distinctive new “Language of Cloud Computing”, along with some startling implications for the future cloud enterprise strategy.

The Building Blocks of the Future – as Easy as A, B, C, D

APPLICATIONSMore outsourcing of strategic/core workloads

Companies today run a remarkable number of workloads within their IT environments, with some enterprises running more than 100 concurrently. Most of these applications demand di�ering sets of requirements and characteristics. However, as cloud-based services and service providers start to demonstrate the capability and maturity to run core workloads, con�dence in o�-site solutions is increasing. Historical concerns about data privacy, compliance and loss of control are easing, removing some of the traditional inhibitors for cloud adoption. The result is that today’s enterprises are gaining more con�dence in migrating critical workloads to a cloud environment.

BUSINESS DECISION-MAKERSExpanding the role of business decision-makers in IT planning and procurement

The self-service nature of cloud solutions, combined with growing trends such as BYOD, is starting to evolve the decision-making process away from just IT, and into one that involves multiple stakeholders and business leaders. Today, both departmental heads and IT managers play a major role in identifying needs and shortlisting cloud solutions in an organisation. Compliance/risk directors then need to take the lead in evaluating solutions and risk management, while the entire c-suite is now often involved in making the �nal purchase decision.

CUSTOMERSInclusion of customers to the IT user pool

Cloud, and indeed IT in general, has traditionally focused on the internal enterprise and bene�ts such as cost savings, application deployment, resource optimisation and business agility. However, this ignores a key segment of the IT user pool – the customer. This is a starting point for the cloud services’ portfolio expansion where it evolves from being a back-end service to including front-end services for customer engagement requirements. Heard of a cloud-�rst strategy? Forward-thinking enterprises are now beginning to evaluate what cloud means to their customers and how they can leverage it to enhance the customer experience.

INDONESIA

KAZAKHSTAN

INDIA

MONGOLIA

MALASIA

SRILANKA

PHILIPPINES

JAPANNORTHKOREA

SOUTHKOREA

PAPUANEW

GUINEA

ARMENIAAZERBAIJAN

TURKMENISTAN

AFGHANISTAN

PAKISTAN

KASHMIR

NEPAL

BANGLADESH

MYANMAR(BURMA)

LAOS

THAILANDVIETNAM

CAMBODIA

UZBEKISTAN

BHUTAN

CHINA

AUSTRALIA

SINGAPORE

HONG KONG

A New Language, but Everyone Speaks it Differently

The new language of cloud computing has arrived and it is here to stay. However, as is often the case with any new language, the pace of adoption varies across the region. While the markets surveyed are all relatively mature in cloud computing terms, behaviours do vary.

AUSTRALIAThe most mature cloud services market is characterised by sophisticated service providers and users. Enterprises are leveraging cloud services to increase their speed-to-market to increase competitiveness, however data security threats and availability of services continue to be primary concerns.

CHINAThis highly-regulated communications market has seen state-owned Telcos leading the �rst phase of cloud computing. 77% of enterprises stated that cloud is their top priority in the next 12 months. Limited investment in legacy infrastructure makes China the leading cloud adoptor, with 78% using or implementing cloud services.

JAPANOpenness to adopt 3rd party hosted solutions is highest in Japan, while there is a high degree of polarisation around cloud knowledge and adoption. A third (32%) of enterprises have reached the 3rd stage of cloud adoption roadmap to enhance organisational capabilities. Availability, performance, and scalability are top priorities.

SOUTH KOREAMaintained its early adopter status with 95% of enterprises highly or somewhat knowledgeable about di�erent types of cloud services. South Korea is now looking to leverage cloud services to focus on core business competencies and engage customers e�ectively. Security and availability are key concerns.

SINGAPOREHighly developed broadband infrastructure and presence of data centres have helped Singapore to circumvent big challenges faced by others: data sovereignty and latency. Facilitating resource optimisation and enhancing internal business processes are the top factors driving adoption, whereas security threats to the business is a key concern for cloud adoption. HONG KONG

As one of the two major data centre hubs in APAC, 75% of enterprise have adopted or are planning to adopt cloud services. Other than resource optimisation and cost-savings, enterprises in Hong Kong tend to use cloud to avoid vendor lock-ins. Availability of apps and security risks are high considerations.  

DEFENCESecurity and privacy of IT environments remains a key focus

Data security and privacy are perennial topics related to any cloud discussion, whether it is about applications, business or customers. According to the survey, security is highlighted as the biggest impediment in adopting cloud services for 68% of enterprise decision-makers. Network security, web application �rewall, and identity and access management are rated as the most critical components in enterprises’ plans for building private clouds. Furthermore, signi�cant regulatory compliances need to be met when handling customer data. When enterprises are evaluating or selecting a cloud service provider, security and privacy standards are top-of-mind concerns, followed by the need for a local support team.

Solutions for an applic at ion wo rld.

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Where Next?

Source: 2014 Frost & Sullivan Cloud User Survey

Organizations’ Current Stage on the Cloud Adoption Roadmap

Stage 1Augment - To cater toorganization needs for ad-hoc requirements

Stage 2Complement -To complement existing capabilities in the organization

Stage 3Enhance - To enhance oganizational capabilities

Stage 4Transform - To facilitate business transformation

20.7% 47.4% 24.9% 7.1%

Augment Complement Enhance Transform

The survey reveals that a large number of enterprises (68%) are still in the preliminary stages of planning and implementing cloud strategies. Today, the primary use of cloud services is to optimise and streamline conventional business processes. This will change.

Enterprises will next leverage cloud and services to automate business processes and drive business transformation. There will also be more collaborative

decision-making in cloud service procurement. The role of the CIO is set to shift from information to innovation.

With the inclusion of customers in the IT user pool, enhancing customer experience through high availability and performance of business apps is crucial. With the cloud model rapidly evolving, it’s clear that the new language of cloud computing is not only here to stay, but to continue developing.

Note

Data and conclusions in this paper were derived from a survey and research commissioned by F5 and conducted by Frost & Sullivan. 420 decision makers were surveyed from organisations involved in government, eCommerce, as well as banking, �nancial services and Insurance (BFSI) sectors across Australia, China, Hong Kong, Japan, Singapore and South Korea.

Download the full report here.