TBR Professional Cloud Services Study

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

PROFESSIONAL SERVICES PRACTICESM

Cloud Professional Services Study: A Pathway to Cloud Services

TBR Webinar SeriesSpring 2012

Presenter: Ramunas Svarcas ([email protected]), Professional Services Practice Senior Analyst/Engagement Manager

mailto:[email protected]

TBR

Spring 2012 | TBR Professional Services Cloud Webinar ©2012 Technology Business Research Inc.

The only constant in today’s global marketplace is change

Where is Cloud Professional Services

Today?

The Cloud Professional Services

Lifecycle

What is driving Customers to buy Cloud Professional

Services?

Cloud Services!

(Why not just buy them without an

advisor?)

How are Professional Services Vendors

meeting demand?

Changing on a daily basis

Cloud Professional Services: A Pathway to Cloud Services

Understanding what is changing, leveraging it for maximum opportunity and delivering the right offerings requires the type of reliable, insightful and timely information TBR provides.

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TBR believes the cloud market can be viewed as two separate entities – Cloud Professional Services and Cloud Services

Cloud Professional Services vs. Cloud Services

The Cloud MarketCloud Professional Services Cloud Services

• Advisory• Strategy Consulting• IT Consulting• System Integration• System Implementation• Application Development• Application and System Management• System and Application Maintenance

Computing• Software-as-a-Service (SaaS)• Platform-as-a-Service (PaaS) • Infrastructure-as-a-Service (IaaS)

Environment• Private cloud • Public cloud• Hybrid cloud

•Cloud Professional Services Study 4Q11• Quarterly Professional Services Vendor Reports

• Cloud Services Study 4Q11• Cloud Business Quarterly

TBR OfferingsOur focus today:

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How vendor strategies are aligning to current market dynamics

2011 Cloud Professional Services Study OverviewThe study integrated two research components to:

• Understand what enterprise customers want/needCustomer primary-research – TBR conducted 600 surveys in the fourth quarter of 2011 with enterprise and public/non-profit institutions to identify their needs and desires regarding cloud professional services.

• Understand what cloud professional services vendors are offering:TBR developed in-depth vendor profiles for 11 vendors that are actively engaged in the delivery of cloud professional services. The vendors examined include:

Cloud Professional Services vs. Cloud Services

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The cloud professional services market is rapidly changing as customers become more aware of cloud services

Where is Cloud Professional

Services Today?

The Cloud Professional

Services Lifecycle


Line of Business

buying Cloud Services

Cloud Services

Companies reining in

Cloud Services

Cloud Professiona

l Services

Companies deciding how

Cloud Services can grow their

business

Cloud Professional

Services

Helping improve agility and speed to

market

Cloud Services

or

Enterprise customers are realizing that they must carefully investigate the true cost and subsequent value of cloud services with the assistance of advisors/experts.

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Cloud Services Demand continues to expand as customers look for new ways to consume IT resources

After the onslaught of advisory services in 2010, enterprise customers are more aware of cloud services capabilities and are thus purchasing cloud services.

Cloud Services Demand

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While demand for cloud services is up, the number of cloud professional services engagements is down

• Better-educated enterprise customers are deciding whether to engage additional professional services to move clients further to the cloud.• Not all are making the choice, and those that do are moving slowly, opting for

specific, selectively thought-out engagements.

Cloud Professional Services Demand

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The size of professional services engagements for cloud are growing as we enter the high-demand phase of the adoption lifecycle

The Cloud Professional Services Lifecycle

CLOUD PROFESSIONAL SERVICES ADOPTION CURVE

• Advisory and consulting engagements are being replaced with implementation and integration engagements.• While an advisory engagement may be 1 or 2 days in length, a consulting design

engagement or full-fledged implementation may take 2 to 3 months, if not longer.

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As a result, Cloud Professional Services revenue growth exceeds double digits for all the vendors examined in the study

• SIs with hardware lead in Cloud Professional Services total revenue, while system integrators that are hardware-agnostic are generating the greatest revenue growth as clients are looking for best-of-breed solutions.• Since professional services vendors are in the midst of their own development lifecycle

for Cloud Services and Cloud Professional Services, each vendor is at a different stage in broadening its portfolio, resulting in different offerings and thus different revenue growth rates.


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Customer are driving change, with a shift from pure cost reduction in IT resources to business development

What is driving Customers to buy Cloud Professional

Services?

Cloud Services!

(Why not just buy them without an

advisor?)


• Which cloud services?• Why?• What will it cost in the

short term?• What will it cost in the

long term?

Professional Services Vendors can help with the answers.

So which vendor do I choose?

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Vendors are focusing on delivering to the respective requirements of customers, with a strong focus on value

Cloud Professional Services – Vendor Selection Criteria

Tactics to Capture

Customers

Demand drivers:Selection Criteria

•Provide high value for price•Working

knowledge of infrastructure, industry and cloud integration issues

Expected Benefits

• Support business Innovation Process• Improve

Operational Efficiency• Reduce Total Cost

of Ownership

RequiredSkills in:

•Business Intelligence/ Analytics• Customer

Relationship Management• Supply Chain

Management

What do enterprise customers want?

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Aligning with business initiatives, innovation and delivering new services and products to customers are key perceived benefits that professional services vendors must provide.

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Vendors are reacting to changing needs by developing new professional services offerings that align with cloud services


meeting demand?



Listening and delivering to the ever growing inventory of client needs.

Reacting to changing economic climate to provide the highest-value services.

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As enterprise clients see the benefits of cloud computing, vendors are modifying their portfolios to address concerns and opportunities

• Partnerships are proliferating for the major professional services vendors to enable them to accommodate the various needs of customers.

• Alliances and the incumbent knowledge with infrastructure and leading software vendors is essential for providing Cloud Professional Services to customers.

SOU

RCE:

TBR

AN

D A

CCEN

TURE

Company

Alliances

ISVs Public cloud

Networking Infrastructure

Cloud Professional Services – Changing Vendor Offerings

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Vendors are developing offerings to address variations in expectations and an overall focus on applications and development

Examples:

Offerings

IBM: Offering SmartCloud Application Services as a Platform as a ServiceFujitsu: Offering a cloud service for analytical simulations in the area of technical computing called TC Cloud

Addressing Risks and Specific Needs

Accenture & Deloitte: Combining IT consulting portfolio with traditional business consulting to join customers’ cloud strategy with overall business objectives and address specific industry vertical business processes

Overcoming Deal Breakers

Capgemini: Offering the full cycle of cloud solutions, from cloud strategy development to migration, implementation and management, with pilot programs that enable customers to focus on business outcomes to overcome cost concerns

Cloud Professional Services – Changing Vendor Offerings

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The Cloud Professional Services study: how Cloud Professional Services are providing a pathway to Cloud Services

Where are Cloud Professional Services

Today?


What is driving Customers to buy Cloud Professional Services?

Cloud Services!

(Why not just buy them without an advisor?)


meeting demand?



Cloud Professional Services revenues

continue to grow as customers are

purchasing higher-value services.

Customers do perceive value.

No one knows everything about cloud, thus

knowledgeable advisors and implementers are needed to

help in the journey.

Vendors are broadening their Cloud Professional

Services portfolios through internal

development, partnering with software vendors

and creating new services.

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Questions?

For the Cloud Professional Services Study Winter 2011Contact: Ramunas SvarcasSenior Analyst/Engagement ManagerPhone: 603-758-1833Email: [email protected]: rjstbr


TBR


TBR Cloud Resources:TBR Topic Research:

• Fall 2010 Cloud Professional Services Study (available)

• Winter 2011 Cloud Professional Services Study (now available)

• Winter 2012 Cloud Professional Services Study (4Q2012)

• Winter 2011 U.S. Public Cloud Services Adoption Report (now available)

• Winter 2012 U.S. Public Cloud Services Adoption Report (4Q2012)

• Summer 2012 Private/Hybrid Cloud Purchasing ReportTBR Cloud Business Quarterly Reports (available quarterly):

• Public Cloud Market Landscape ReportCloud Services Vendor Reports (available semi-annually):

• Salesforce.com • IBM Cloud • Google Apps Cloud

• Amazon AWS Cloud • Rackspace • Microsoft Cloud

• Verizon/Terramark Cloud • Oracle Cloud

Ramunas Svarcas – [email protected] McIllroy – [email protected]

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

For additional information regarding TBR and our offerings please contact:

Ramunas Svarcas, Senior Analyst/Engagement Manager

[email protected]

Alison Crawford, Marketing Director

[email protected]

James McIlroy, Sales Director

[email protected]

www.tbri.com

11 Merrill Drive Hampton, NH 03842



