2017 FORRESTER REPRODUCTION PROHIBITED WEBINAR Welcome To The

WEBINAR Welcome To The Cloud’s Second Decade: 10 Key Developments In Cloud Computing You Must Know Dave Bartoletti, Principal Analyst William Martorelli, Principal Analyst January 24, 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.

Hello Dave Bartoletti, Principal Analyst Serving infrastructure & operations pros © 2017 Forrester Research, Inc. Reproduction Prohibited • Virtualization and cloud veteran, advising clients on public cloud platforms, cloud transformation, cloud management, cloud economics, and modern app platforms • IBM, TIBCO, Fidelity, Enigmatec (EMC) 4

Hello William Martorelli, Principal Analyst Serving infrastructure & operations pros • © 2017 Forrester Research, Inc. Reproduction Prohibited Infrastructure management services, applications management services utility computing models, cloud services, and managed sourcing 5

State of the cloud computing market Spending, adoption, and major trends heading into 2017

Fast digital businesses form cloud-based ecosystems centered on the customer © 2017 FORRESTER. REPRODUCTION

Public cloud spending is in hypergrowth 3 x $114 B $236 B 2 x Source: The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 Forrester report © 2017 FORRESTER. REPRODUCTION PROHIBITED. 8

Public cloud adoption is also in hypergrowth “What are your firm’s plans to adopt public cloud pay-per-use Iaa. S/Paa. S platforms? ” 2013 2014 2015 2016 2017 (est) Sources: Forrester’s Forrsights Hardware Survey, Q 3 2013 (n=1253); Forrester’s Global Business Technographics Infrastructure Surveys [2014, N=3190; 2015, N=3592; 2016, N=3503 ]. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 9

The five broad trends that will shape cloud in 2017 1. Modernization of complex enterprise apps 2. Containers everywhere shake up platform foundations 4. Hyperscale cloud vendors fill app, geo, or industry niches © 2016 Forrester Research, Inc. Reproduction Prohibited 3. Serving two masters: cloudnative and digital transformers 5. Analytics takes center stage: there’s gold in your data 10

Survey question No. 1: What percentage of your company’s total application portfolio do you expect will reside in the public cloud in five years? Please choose one: q Less than 25% q 25% to 50% q 50% to 75% q 75% or more © 2016 Forrester Research, Inc. Reproduction Prohibited 11

Survey question No. 2: How would you describe your company’s current progress in migrating applications to the public cloud? Please choose one: q We haven’t started planning or migrating. q We’re in the planning stage. q We’ve started migrating some applications. q We’re actively migrating apps today. q We’ve migrated most of the apps we plan to migrate. © 2016 Forrester Research, Inc. Reproduction Prohibited 12

Cloud predictions 2017 10 key developments in cloud computing you must know © 2017

1. Beyond pay-per -use, buyers will save money in cloud many ways. Sample of cloud cost differences and considerations Action: Cloud cost management must become IT’s responsibility, and technology managers must improve their knowledge and skills. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 14

2. Hyperconverged infrastructure (HCI) will help private clouds get real. Action: Adopt HCI to

3. Size still matters, but the largest megaclouds won’t be your only option. Action: The best cloud for you in 2017 might not be the biggest cloud. Reengage with your service providers. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 16

4. Lift-and-shift tools improve to make migration easier Multiple viable cloud migration options in 2017: § § § Replace (with Saa. S) Rebuild (net new) Lift and extend Hybrid extend “Lift and shift” © 2017 FORRESTER. REPRODUCTION PROHIBITED. 17

5. Hybrid cloud networking will remain the weak link in hybrid cloud. Action: Start

6. Enterprises will shun large, complex, and costly private cloud software suites. Action: Reevaluate

7. Saa. S will move away from one-size-fits-all to regional and industry solutions. Action: Don't jump in headfirst without understanding long-term implications. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 20

8. Chinese firms will be the key drivers of global cloud evolution. Action: Put

9. Containers everywhere will shake up cloud platform and management strategies. Container DIY Caa. S Paa. S Requires assembly, platform engineering skills, risk tolerance, and strong ecosystem participation Requires some assembly and skills and risk tolerance limited curation Requires little assembly and fewer skills; stronger curation Action: Reweigh your Paa. S, container orchestration, and cloud management needs. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 22

10. Cloud service providers will design powerful security into their offerings. Action: Retain control

Related research: additional reading › Brief: China’s Clouds Come To Europe › Brief: A Clear Multicloud Strategy Delivers Business Value › Brief: Top 10 Facts Every I&O Pro Should Know About Cloud Economics › The Forrester Wave™: Global Public Cloud Platforms For Enterprise Developers, Q 3 2016 › The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020 › Understand Public Cloud Pricing Strategies To Save Money Today And Tomorrow › Vendor Landscape: Public Cloud Platforms Consolidate, But New Disruptions On The Way © 2017 FORRESTER. REPRODUCTION PROHIBITED. 24

Dave Bartoletti +1 415 -294 -8136 dbartoletti@forrester. com Twitter: @davebartoletti Thank you FORRESTER. COM © 2017 FORRESTER. REPRODUCTION PROHIBITED. William Martorelli +1 617 -613 -8505 wmartorelli@forrester. com Twitter: @billmartorelli