2017 FORRESTER REPRODUCTION PROHIBITED WEBINAR Forrester Data Deep

WEBINAR Forrester Data Deep Dive: Public Versus Private Cloud Growth Andrew Bartels, Vice President, Principal Analyst Jennifer Adams, Senior Forecast Analyst February 7, 2017. Call in at 12: 55 p. m. Eastern time © 2017 FORRESTER. REPRODUCTION PROHIBITED.

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

Agenda › Public cloud outlook › Private cloud outlook › Summary › Questions and

The cloud journey has different pathways © 2017 FORRESTER. REPRODUCTION PROHIBITED. 5

Global public cloud service forecast $236 $208 $178 $146 $114 $86 Source: The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 Forrester report © 2017 FORRESTER. REPRODUCTION PROHIBITED. 6

Public cloud takes share from traditional services and software Source: The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 Forrester report © 2017 FORRESTER. REPRODUCTION PROHIBITED. 7

Source: Forrester Data: Public Cloud Services Forecast, 2016 To 2020 (Global) © 2017 FORRESTER.

US is the largest market, but Asia is growing the fastest Source: Forrester Data:

Saa. S is high priority, especially in Asia Base: 3, 582 software decision-makers; Source: Forrester’s Global Business Technographics® Software Survey, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 10

All regions see a shift to Saa. S Base: 1, 690 (today) and 1, 632 (in two years) software decision-makers who use vendor built applications; Source: Forrester’s Global Business Technographics® Software Survey, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 11

Public cloud growth by industry Source: Forrester Data: Public Cloud Services Forecast, 2016 To

For cloud platforms, no single deployment model dominates Base: 2, 545 information decision-makers who are planning to or have implemented some kind of cloud; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 13

Cloud infrastructure budgets are increasing Base: 3, 183 global infrastructure decision-makers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 14

APAC has strong interest in public cloud platforms. . . Base: 3, 503 global infrastructure decision-makers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 15

Private cloud solutions forecast $21. 8 $23. 9 $19. 7 $15. 9 $17. 6 $14. 1 $12. 2 Source: Forrester Data: Private Cloud Solutions Forecast, 2016 To 2021 (Global) © 2017 FORRESTER. REPRODUCTION PROHIBITED. 16

Private cloud is an increasingly important infrastructure priority Base: (2014) 2, 838 global infrastructure decision-makers; (2015) 3, 265 global infrastructure decision-makers; and (2016) 3, 183 global infrastructure decisionmakers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016; Forrester’s Global Business Technographics Infrastructure Survey, 2015; and Forrester’s Business Technographics Global Infrastructure Survey, 2014 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 17

Internal private cloud adoption Base: 3, 592 (2015) and 3, 503 (2016) global infrastructure decision-makers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 and Forrester’s Global Business Technographics Infrastructure Survey, 2015 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 18

Commercial software is a top choice Base: 1, 387 (2015) and 1, 410 (2016) global infrastructure decision-makers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 and Forrester’s Global Business Technographics Infrastructure Survey, 2015 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 19

Hosted private cloud adoption Base: 3, 592 (2015) and 3, 503 (2016) global infrastructure decision-makers; Source: Forrester’s Global Business Technographics® Infrastructure Survey, 2016 and Forrester’s Global Business Technographics Infrastructure Survey, 2015 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 20

Summary › Public cloud will grow rapidly, but shows signs of maturity. • Paa. S/Iaa. S will be the fastest growth public cloud services sector. • US will remain the largest consumer of cloud services, but Asia will grow the fastest. • Retail, media, and government sectors will drive growth. › Private cloud is alive and well. • Internal private cloud and hosted private cloud will both grow serving different user requirements. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 21

Any questions? © 2017 FORRESTER. REPRODUCTION PROHIBITED. 22

Business Technographics Provides demand-side insight into the priorities, investments, and purchase journey of business and technology management leaders and the workforce across the globe. It uncovers insights into. . . Technology adoption Purchasing drivers Technology inhibitors Technology spending Attitudes and behaviors Priorities and journey Through over 70, 000 survey completions annually, we help our clients: • Identify high-growth market opportunities arising from technology • • Business decision-makers Technology decision-makers adoption. Invest in go-to-market strategies that create revenue growth from the most lucrative market segments. Plan effective marketing programs to engage target buyers. Workforce © 2017 FORRESTER. REPRODUCTION PROHIBITED. 23

Forecast. View › A data service that provides insights into business technology market forecasts across North America, Europe, Asia Pacific, and Latin America 1 2 3 Past, present, and future of the market A full market view with historical trending data, current year snapshot, and a five-year projection Industry overview and deeper segmentation Not just the key topline data you need but breakdowns that show which segments gain and lose market share and where the growth comes from Key drivers that move the needle An executive summary, key takeaways, separate research reports, and overview sessions to understand the “why” behind the data © 2017 FORRESTER. REPRODUCTION PROHIBITED. 24

Forecast methodology and data sources Demand-side • Forrester’s Business Technographics® global surveys of IT and business decision-makers: software, budgets, and infrastructure • Proprietary Forrester Global Companies Model Supply-side • Custom executive surveys and interviews targeting technology vendors • Forrester Wave™ • 10 -Ks and equity research reports • Historic and technical analysis © 2017 FORRESTER. REPRODUCTION PROHIBITED. 25