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Egenera Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil Results of 2014 Future of Cloud Computing Survey

Egenera, a leader in converged infrastructure and cloud management software, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey, conducted by North Bridge Venture Partners, Gigaom Research and supported by over 70 other collaborating organizations. This year’s survey is the largest to date, and is the industry’s deepest and broadest examination of the cloud technology revolution. It analyzed the inhibitors and drivers behind cloud adoption, separating the hype surrounding the cloud from genuine industry trends and real world cases across a sample of 1358 respondents. See the complete findings slideshow here: 2014 Future of Cloud Computing survey, along with analysis and commentary on the results here.

“With four years of data, we're now really beginning to see some interesting trends, such as the five-fold increase in SaaS adoption to 74 percent and the nearly six-fold increase in PaaS adoption to 41 percent,” said Michael Skok, founder of the Future of Cloud program and General Partner, North Bridge Venture Partners.

Select Highlights from the Survey Data:

Cloud Adoption is Strategic

  • 49% of respondents in this year’s survey using cloud to fuel revenue generation or new product creation.
  • 45% of businesses say they already, or plan to, run their company from the cloud showing how integral cloud is to business.

SaaS Adoption Has More Than Quintupled

  • From 11% adoption in 2011 to 74% in this year’s survey, but in the enterprise, it is still mostly transitioning to existing applications.
  • The front office is leading the way with sales and marketing at 51% adoption; customer service and analytics both at 43% adoption.

IaaS and PaaS Adoption Reaching a Tipping Point

  • 56% of businesses are using Infrastructure-as-a-Service (IaaS) technologies to harness elastic computing resources.
  • 41% of businesses are using Platform-as-a-Service (PaaS) technologies to prototype and develop new applications.

Data Wants to be Bigger in the Cloud

  • Two thirds of respondents believe their data will come to reside in some form of cloud over the next two years as bigger data needs consolidation and collaboration and creation go online.

Transition To Cloud - The First Cloud Front

“This wave of cloud computing that's revenue and new business driven is good news for long-suffering IT execs,” said David Card, vice president of Gigaom Research. “If they can offload tedious but necessary cost-center functions, and refocus resources on cloud-driven new business, they might be able to retake their seat at the C-table.”

“Even though it's largely just a transition of existing apps, the first cloud front has rolled in confidently each year as existing applications transition to the cloud and are adopted as SaaS solutions. Cloud is now integral to business with 45% of executives saying they currently or plan to run their business in the cloud,” said Michael Skok, general partner at North Bridge Venture partners.

Transformation In The Cloud - The Second Cloud Front

“With over 11,000 cloud services/APIs, and developer adoption of IaaS at 56% and PaaS at 46% respectively we are going to seeing the birth of new, re-imagined, cloud-native applications,” said Skok. “These applications, which are only possible in the cloud, will result in an order of magnitude greater value creation than the first cloud front. This second cloud front will be transformative,” Skok continued. Examples of these applications and services can be found here.

For more about this second cloud front please visit the “2014 Future of Cloud Computing” results page.

Data Wants To Be Bigger In The Cloud

“If you get your head out of the sand and into the clouds you'll see the explosion of cloud-created data. It's not just big data it's exhaustive data, as everything from clickstreams to commerce and personal cloud lockers create exabytes of data. According to Cisco, personal, cloud-carried data alone is estimated to grow from 1.7 exabytes in 2012 to 20 exabytes by 2017,” said Skok.

Cloud Drivers & Inhibitors

Over the last few years, the top three drivers for cloud adoption have remained constant. They are agility, cost and scalability. One area that is changing as a driver is that companies are increasingly moving workloads to the cloud to switch capex for opex. This is especially true for large companies with more than 5,000 employees.

“Companies may have different reasons behind their shift to transition to the cloud, yet the core benefits that are motivating this change, agility, cost and scalability, remain the same,” said John Humphreys, vice president of marketing at Egenera. “As more specialized services enter the market and more solutions to help improve monitoring and service level assurances are developed, the cloud is gaining more confidence and traction every day.”

When it comes to inhibitors, security continues to be a strong barrier with 49% of respondents concerned about how secure their data is in the cloud. Of note, interoperability saw a significant decrease from 27% last year to 17% in 2014 with greater attention being paid to issues like data portability. However, fear of vendor lock-in was still 29%, which put focus on open-source cloud projects like OpenStack, which have received a lot more interest in the last year. Lastly, privacy concerns rose once again to 31% in 2014 as increased tension manifested itself between the desire for anonymity and the convenience and utility of personalization. This is an area for vendors and enterprises to distinguish themselves as faithful custodians of personal data and engendering trust.

2014 Future of Cloud Computing Survey Collaborators:

1. 451 Research

     

26. Dyn

     

51. Reval

2. Acquia

27. Endurance International

52. Rift-IO

3. Actifio

28. Engine Yard

53. RightScale

4. Akamai

29. Egenera

54. Salsify

5. Apperian

30. Equinix

55. Saucelabs

6. Amazon Web Services

31. Eucalyptus

56. Scribe

7. Backupify

32. 451 Research

57. Signiant

8. Black Duck

33. Gravitant

58. Silver Sky

9. Brightcove

34. Imprivata

59. SnapLogic

10. Bromium

35. Intel

60. 6fusion

11. BTI

36. Internap

61. Sharethrough

12. Canonical

37. Intuit

62. SpringCM

13. Carbonite

38. Jamcracker

63. Stratus

14. Chef

39. MassTLC

64. SumoLogic

15. Cirro

40. Microsoft

65. SurveyMonkey

16. Cisco

41. Mimecast

66. THINKStrategies

17. Citrix

42. Nasuni

67. TradeGecko

18. Cloud Elements

43. Newforma

68. Unidesk

19. CloudBees

44. Open-Xchange

69. VDX

20. CoreDial

45. Pax8

70. Verizon

21. Cloud Health Technologies

46. Piston

71. Virtustream

22. CloudNow

47. Plexxi

72. WPEngine

23. CloudVolumes

48. Rackspace

24. Couchbase

49. Ramp

25. Demandware

50. Red Hat

 

Supporting Links:

View presentation: 2014 Future of Cloud Computing Survey Presentation

Learn more about the survey: Future of Cloud Computing Program

Join the conversation: Future of Cloud on Twitter using hashtag #futurecloud and/or @North_Bridge and @futureofcloud.

About North Bridge:

North Bridge Venture Partners and North Bridge Growth Equity are active partners with entrepreneurs providing seed-to-growth financing for innovative companies looking to disrupt big markets. With $3.5 billion in capital currently under management, North Bridge partners, many founders themselves, work with entrepreneurs to apply their expertise in the creation, operation and scaling of market-leaders. The firm has funded more than 170 companies creating many billions in market value. Among those firms are Acquia, Actifio, Cool Planet, Couchbase, Demandware, Mavenir Systems, Paydiant, Proto Labs, Reval and Starent Networks. The firm has offices in Waltham, MA and Palo Alto, CA. To learn more about North Bridge go to http://www.northbridge.com. For more information on the Future of Cloud Computing program, visit: http://mjskok.com/resources/cloud-computing. Follow us at @North_Bridge.

About Egenera

Converge. Unify. Simplify. That’s how Egenera brings confidence to the cloud. The company’s industry leading cloud and data center infrastructure management software, Egenera PAN Cloud Director™ and PAN Manager® software, provide a simple yet powerful way to quickly design, deploy and manage IT services while guaranteeing those cloud services automatically meet the security, performance and availability levels required by the business. Headquartered in Boxborough, Mass., Egenera has thousands of production installations globally, including premier enterprise data centers, service providers and government agencies. For more information on the company, please visit egenera.com. Follow Egenera on TwitterLinkedIn and Facebook.

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