Home About Us  |  News Contact Us  |  New User Registration 

Research-based
Market Strategy Consulting

Our Services
Why Saugatuck
Published Research
Events/Conferences
Search
Lead, Follow, and Get Out of the Way: A Working Model for Cloud IT through 2014

Document:                        SSR-706
Date of Publication:            February 25, 2010
Number of Pages:              24
Lead Author(s):                 Bruce Guptill
Contributing Author(s):      
Charlie Burns, Bill McNee and Mike West
Price:                               $1,295.00 USD (Single User License)

Traditional IT and business leadership strategies and tactics will be of limited effectiveness in a Cloud-based environment where anyone can do practically anything they want or need to. Thus, how user organizations plan for and manage Cloud IT will have to improve upon established practices and policies. IT, Finance, and line-of-business executives must learn and use new, combined management tactics when it comes to Cloud IT. 

This core finding is the foundation of the latest research study from Saugatuck Technology Inc., titled “Lead, Follow, and Get Out of the Way: A Working Model for Cloud IT through 2014.” Released on February 25, 2010, the study uses interviews with experienced user organization executives, analysis of global survey data, and insights from leading Cloud providers, to build a realistic, working model of Cloud evolution, adoption, and most importantly, cost-effective management.

"Cloud adoption right now is a point-solution phenomenon, and we know from every previous instance of IT that point solutions cost more in the long run,” according to Saugatuck Managing Director Bruce Guptill,  the study’s lead author. “If IT, Finance, and business leaders can see and  understand how Cloud adoption is growing and changing, they can manage it, and take advantage of tremendous cost efficiencies. In this report, we have developed a  simple, evolutionary model of Cloud IT adoption and its impact over time. And we deliver guidance to user executives as well as to providers of Cloud IT and traditional IT as to how best to manage the Cloud’s present and future.

This argument is borne out by the study’s key findings, which include the following:

Cloud IT is growing through four parallel, complementary, and over-lapping stages of use and evolution:

Point and Supplemental Stage,

Developmental Stage,

Internal Growth Stage, and

Hybrid/Interwoven Stage.

Most user organizations either are going through, or within the next few years will go through, at least three of the four stages – each of which advances, and complicates, the roles and use of Cloud IT.

To minimize costs and optimize Cloud effectiveness and efficiencies, leadership is needed from IT, Finance, and business organizations – and from Cloud IT providers as well.

Research Summary:  Saugatuck’s research indicates a series of strategic planning positions (SPPs) that inform and guide IT leaders, Finance leaders, business leaders, and for Cloud IT providers users, SaaS providers. These include the following:

By YE 2012, 75 percent or more of SMBs, large enterprises and public sector organizations will be using one or more Cloud IT instances to enable and support ongoing business operations.

By YE 2012, more than 25 percent of user firms will be using Cloud development platforms to develop and test critical, internal software that enables and supports business operations.

By YE 2014, at least 15 percent of organizations will use Private Clouds for daily business operations; fewer than 10 percent will utilize Internal Clouds for operational systems.

By YE 2014, 40 percent or more of NEW enterprise IT spend will be Cloud-based.

By YE 2014, 45 percent or more of NEW enterprise IT workloads will be Cloud-based.

By YE 2014, 25 percent or more of TOTAL enterprise IT workloads will be Cloud-based. 

Press Release / Media, BLOG and Podcast Coverage:

03-01-10 Preparing for Cloud-based Initiatives? Look Hard at Your ... (CMSWire)

02-25-10 Saugatuck Releases First Cloud Leadership Study (Saugatuck Press Release)

Executive Summary:

Lead, Follow, and Get Out of the Way: A Working Model for Cloud IT through 2014
(Freely available. Registration Required)

Read this report to learn:  

What, exactly, is Cloud IT?

How are different types of Cloud IT inter-related, and how can understanding this enable improved ability to manage Cloud IT and its providers?

How is Cloud IT spreading and evolving within and between user enterprises and organizations?

What are the risks of unmanaged Cloud proliferation?

What management strategies and techniques enable the greatest benefits from Cloud IT – and do the best at preventing costly mistakes?

What can, and must, Cloud providers do to help customer organizations improve their ability to manage Cloud solutions – or else lose business?

Table Of Contents: 

Summary Research Findings

So What?

Strategic Planning Positions

Introduction A Cloud Full of Ecosystems 

Staging the Cloud 

Point and Supplemental Stage

Developmental Stage

Internal Growth Stage 

Hybrid/Interwoven Stage 

Cloud IT Spend and Workloads

Cloud Effects and “What to Do” for IT, Finance, and Business Leadership

Effects on IT

Effects on Finance

Effects on Business Leadership

Cloud Provider Leadership

Appendix A: Research Programs and Demographics   

List of Figures and Sidebars:

Figure 1: Cloud is Everywhere, Right Now 

Figure 2: Core SaaS Applications in Use by YE 2009 

Sidebar: What, Exactly, is Cloud IT?

Figure 3: Saugatuck’s Cloud Ecosystem Model

Figure 4: User Executive Expectations: Cloud Infrastructure as Mainstream IT 

Figure 5: Saugatuck Cloud IT Reality Model 

Figure 6: Changing Cloud IT Stages Over Time 

Figure 7: Expected Percentages: Cloud IT-based and Spending and Workloads in Production by YE 2014

Figure 8: Security Tops Executives’ Cloud Concerns

Related Research:

02-19-10 Cloud Computing: Seeing and Managing Not-So-Obvious Costs  (C. Burns, 4 pages, MKT-703, $$$

02-12-10 SaaS / Cloud Rip-and-Replace Strategies: Five Key Considerations (B. Guptill, L. Geishecker, 5 pages, MKT-700, $$$)

01-29-10 A Lack of Formal IT Indicates Higher Costs of SaaS and Cloud IT (B. Guptill, 4 pages, MKT-697, $$$)

01-22-10 Monexa’s Cloud-Based Billing Includes Flexible Channel Support (M. West, 5 pages, QT-693, $$$)

01-20-10 Cloud “Rip-and-Replace” Deals Suggest Business Solutions Maturing (B. Guptill, M. West, B. McNee, 3 pages, RA-692)

01-15-10 Infrastructure Augmentation: Decisions, Decisions, Decisions  (C. Burns, 4 pages, MKT-690, $$$)

01-06-10 Finance Resolutions for 2010: Guide, Coordinate, and Let IT Manage IT (B. Guptill, C. Burns, 3 pages, RA-687)

12-30-09 IT Resolutions for New Decade, Old Theme of Constant Change (B. Guptill, C. Burns, M. Koenig, 3 pages, RA-685)

12-23-09 Saugatuck Research Report: Cloud IT Being Approached as “Mainstream” IT (B. Guptill, C. Burns, 2 pages, RA-681)

12-23-09 Cloud Infrastructure Services Data Report: Traditional Approaches to New IT (B. Guptill, M. Koenig, 28 pages, SSR-680, CRS Clients Only)

12-17-09 Cloud Computing: Business and IT User Perceptions Evolve and Mature (C. Burns, 4 pages, MKT-678, $$$)

12-17-09 Amazon EC2 Spot Instances Enables and Demands, Change in Cloud Buying and Use (B. Guptill, C. Burns, 3 pages, RA-677)

12-11-09 SAP Influencer Summit Reveals Cloudy Strategy, Path, and Challenges (B. Guptill, M. Koenig, B. McNee, 4 pages, RA-675)

11-30-09 OpSource: A Pioneering Platform for the Enterprise Cloud (M. West, 5 pages, QT-671, $$$)

11-30-09 Cloud Infrastructure Expectations: Europe Ahead of North America (H. Hosseini, F. Sempert, B. Guptill, B. McNee, 5 pages, MKT-670, $$$)

11-25-09  Dreamforce 2009: Salesforce Targets the Entire Enterprise (M. Koenig, 5 pages, EVT-669, $$$)

11-25-09 Cloudy with a Chance of Power Shift: Microsoft Azure, Salesforce Chatter, and Google Chrome Indicate Fundamental IT Changes (B. Guptill, 3 pages, RA-668)

11-20-09 Google Chrome OS: Enabling Fundamental Change Without Requiring Fundamental Change (B. Guptill, 5 pages, MKT-667, $$$)

11-19-09 On the Road in Germany: SaaSKon and the Growth of the Cloud (B. McNee, H. Hosseini, 3 pages, RA-666)

11-05-09 Monetizing the Cloud: If You Can’t Bill for It, You Can’t Make It Pay (M. West, 2 pages, RA-662)

11-05-09 Monetizing the Cloud: Assessing Billing and Payment Providers (M. West, 36 pages, SSR-661, $$$)

10-30-09 Cloud Computing: Managing the Gathering Storm (C. Burns, 4 pages, MKT-659, $$$)

10-29-09 Expected Benefits of Cloud Infrastructure: Less than 100 Employees (B. Guptill, R. Skoff, 4 pages, MKT-658, $$$)

10-29-09 SIIA On-Demand: Overcoming Concerns to SaaS and Cloud Adoption (B. McNee, M. West, B. Guptill, 3 pages, RA-657)

10-16-09 Cloud Computing Poised To Transform The Desktop Outsourcing Market (R. McNeill, B. McNee, 6 pages, MKT-654, $$$)

10-16-09 Parallels Business Automation: Operational Foundation for the Cloud (M. West, C. Burns, 5 pages, QT-653, $$$)

10-15-09 Best of Both Worlds: Here Comes the Hybrid Cloud! (M. Koenig, B. Guptill, 3 pages, RA-652)

10-09-09 Cloud Computing Research: User Challenges and Concerns (M. Koenig, C. Burns, 4 pages, MKT-651, $$$)

09-30-09 Cloud Computing Research: Users Seek More Than Just Cost Savings (M. Koenig, C. Burns, 4 pages, MKT-648, $$$)

09-30-09 Building Value Propositions for Cloud Infrastructure: IT Benefits (B. Guptill, 5 pages, MKT-646, $$$)

09-25-09 Cast Iron Systems: Facilitating Integration of Existing Systems with SaaS and Cloud Offerings (C. Burns, 4 pages, QT-645, $$$)

09-18-09 Cloud Computing Reality: End-Users will Make End-Runs Around IT (C. Burns, 4 pages, MKT-642, $$$)

09-17-09 IT Executives Not Aligned with Non-IT on Cloud Solution Benefits  (M. Koenig, C. Burns, B. Guptill, 3 pages, RA-641)

09-09-09 Rumored Cisco and EMC Joint Venture: A Sign of Service-based Times (C. Burns, B. Guptill, 3 pages, RA-639)

09-02-09 Five Scenarios, One Reality: SaaS Changes Everything, and Vice-Versa (B. Guptill, B. McNee, 3 pages, RA-633)

 
2010 Cloud Bus. Solutions
Model for Cloud IT thru 2014
Cloud Infrastructure
Monetizing the Cloud
SaaS Scenarios Thru 2014
Enterprise Social Computing
Great Expectations
An ISV Cookbook
Open Source Changes
SMBs and SaaS Adoption
Saas Ready – Drill Down
Saas - Ready, or Not
Faces of Virtualization
Open Source SW
SaaS 2.0: Tipping Point
C-Team: Growth
SOA Reality Check
The IT Utility
SaaS 2.0
Outsourcing Transfd
The IT Utility
Pay-as-you-go IT
UC: A Hard Sell

To Purchase an Electronic Copy via Web Download:

         

Members who have purchased this report can access it by clicking here within 7 days of purchase.

If you are having trouble with our e-commerce engine, for whatever reason, just pick up the phone and call us at 1-203-454-3900 and we will be happy to take your order over the telephone and email you a copy of the report.


Copyright @ 1999-2010  Saugatuck Technology Inc. All rights reserved.
8 Wright Street, Westport, CT 06880 - 1.203.454.3900 

Home  |  About Us  |  Contact Us