Public Cloud Usage Report.

Transcription

1 Public Cloud Usage Report

2 I am honored to share our first release of Botmetric Public Cloud Usage Report 2017 with amazing insights encapsulating the public cloud adoption and usage trends in SMB, Midmarket and Enterprise customer segments across the world. In our short journey as a company, Botmetric has grown significantly to track public cloud consumption of over $1 billion on an annual basis among our customers. As a company, we believe our journey has barely began in the multi cloud world with customers clearly indicating that the public cloud is a mature offering of importance for their business. We have worked hard and spent a great effort to curate, analyze, simplify and verify the broad insights contained in this report to give a glimpse of the future ahead for cloud computing in general and overall consumption trends across worldwide businesses. Foreword We hope you enjoy reading the report as we did while working on this report. Vijay Rayapati CEO, Botmetric

3 Botmetric Cloud View We are in an interesting era of technology disruption not just in IT but every business is fundamentally changing itself to become digital, connected and intelligent. The future of cloud is very exciting, we are delighted to play our role as a multi-cloud management company.

4 Digital Workloads Domination The applications deployment on public cloud is heavily dominated by digital workloads primarily consisting web, mobile and analytics irrespective of customer segment. We expect serverless, containers, IoT and AI to fuel the next set of intelligent applications landscape. Multi Cloud Adoption There is an increasing trend of more than one cloud usage among enterprises including private & public clouds. This is driven by the need to manage enterprise IT complexity, applications locality, data sovereignty, geographic distribution and de-risking the vendor lock-in. IaaS Is The King In our analysis of AWS & AZURE usage for over $1B, we noticed that IaaS offering still contribute to over 85% of the customers cloud spend. The compute, storage, network and databases dominate in the IaaS category and primary adoption among customers. Key Cloud Trends PaaS Is The Trend It s great to see many platform service offerings beyond IaaS are consumed by customers primarily around messaging, notifications, API management, containers, deployment & security etc, the PaaS offerings from cloud providers are gaining increasing momentum. Use of Cloud Native Technologies Many customers are experimenting, evaluating or have started using forms of native technologies like Containers, Serverless, Analytics, IoT and ML/AI as part of their overall IT. We expect 2018 to drive more adoption in cloud native technologies among enterprises.

5 01 Beginner Monthly cloud spend - Less than $20K. Basic level usage of services like VMs, EC2, Databases, RDS, Network, Object Storage and Block Storage etc 02 Competent Monthly cloud spend - between $20K to $50K. Has decent grasp of cloud architecture and uses PaaS services for deployment and cloud native data services from AWS & AZURE along with core IaaS services. 03 Proficient Monthly cloud spend - between $50K to $100K. The technical gap reduces here. The user is familiar with cloud and is able to leverage advanced services for enterprise needs and heavy use of IaaS with mix of PaaS services. 04 Expert Monthly cloud spend - above 100K. Extremely advanced skillsets to use and leverage broader set of services like Serverless, API Gateways, Data Streaming, Enterprise Network Connects, Analytics, IoT and AI/ML offerings. User Classification SMB Revenue: Less than $50M/year Mid-size Revenue: $50M to $1B/year Enterprise Revenue: More than $1B/year

6 Enterprise Mid-size SMB 19% 37% 11% 47% 8% 13% 20% 62% 50% 12% 21% 0% 25% 50% 75% 100% Beginner Competent Proficient Expert Cloud Maturity Index Cloud Pursued by many but mastered by some. Mid-size companies are the masters of public cloud. They use cloud with agility and leverage tools and processes like enterprise to manage their business better. Startups find public cloud easier to start but harder to manage with governance for cost controls. Most enterprise are either beginners or experts, with evolving cloud management complexities. Once on cloud, companies push for expertise but only midsize and enterprise manage to master cloud use due to better focus, tools and processes.

7 13% zl 83% Enterprises bullish on hybrid cloud 25% 62% One Public Cloud Multiple Public Clouds Hybrid Cloud - Public + Private Cloud Adoption Patterns Cloud Pursued by many but mastered by some. 72% z Mid-size pursue multi-cloud z 70% Want to focus on one cloud 83% of enterprise customers on public cloud are actively exploring hybrid cloud 70% of Mid-size customers are planning to pursue multi-cloud. The Azure and Google cloud influence was very evident in 2017 from the adoption. 72% of SMB cloud customers want to stay loyal to their current cloud providers as they are focussing on expertise and scaling their business. Mid-size companies utilize a multi-cloud strategy to achieve specific functional workloads that enables faster delivery on projects, handle software licensing and manage business needs.

8 Enterprise Mid-size SMB 32% 38% 36% 41% 29% 47% 33% 27% 17% 0% 25% 50% 75% 100% Cloud Security Cost Management DevOps Cloud Priorities Cloud Pursued by many but mastered by some. Starting up, Security is the number 1 priority followed by governance processes With maturity focus shifts to cost management and cloud optimization. Enterprise finance teams are being trained on cloud spend and budget management

9 78% SMB production workloads in cloud Enterprise Mid-size SMB 40% 58% 78% 60% 42% 22% 0% 25% 50% 75% 100% Production Non-production Cloud Workload Distribution Non-production use is like waistline - tends to increase with age 63% Mid-size use cloud for R&D SMBs have nearly 80% of their workloads in production. As they progress on the cloud maturity scale, companies seem to increase workloads for non-production use cases. Mid-size and enterprise use cloud extensively for R&D environments and that increases the non-production workloads. Pursual of active DR and global reach by enterprise is also driving the increase in production workload which would have otherwise resulted in a split.

10 Serverless Applications Machine Learning & Advanced Analytics Containerization Microservices Data Analytics & BI Database Workloads Digital Applications (Web, Mobile & API) 0% 25% 50% 75% 100% Enterprise Mid-size SMB Cloud s Popular Workloads Web applications stand out to be the most popular workload; machine learning still in early adoption stage No surprise! Web and digital applications inhabit the most of cloud. Database usage by enterprise is not as high due to hybrid data usage. In future this may change with cloud databases as they are proving to be more cost effective. Mid-size is embracing machine learning with more focus in specific use cases. Enterprise customers are leveraging hybrid cloud for analytics, BI and ML needs. SMB and Mid-size customers again are the flag-bearers of advanced cloud services like containerization and serverless, exhibiting required agility and skill sets.

11 Popular AWS Services A EC2 is the most popular AWS service EC2 and RDS are most utilized AWS services. There is sharp rise in S3 usage Cloud s Popular Services Most popular services across AWS and Microsoft Azure M with big data push. 87% of Azure Users leverage VMs 59% enterprise customers feel hybrid cloud is easier with Azure. Popular Azure Services

12 11% 4% 18% Specialized Services Usage Highly specialized services used by select few in the cloud IoT Only 6% of enterprise companies are running IOT related dev/test or R&D workloads on public cloud AI AI is still not mainstream, SMB & Mid-size contribute to 90% of overall AI use cases or workloads ML Analytics Both Mid-size and enterprise are adopting ML for BI analytics actively. Growth rate has increased in Q3-17

13 n 46% EC2 usage is M family AWS EC2 Instance Usage Most customers use M family instances more than any other instance families in AWS 72% 83% of the non production workloads run on T family due r Big data runs on to cheaper cost. C or R families M4 is the most popular for production instances. C & R family instances are popular for Databases and big data processing, and seeing a healthy growth.

14 Popular OS on Cloud W Ubuntu is big but CentOS is catching up CentOS derived Amazon Linux grew significantly in 2017 thanks to ease of configuring it for EBS, ECS & EMR etc Cloud s Popular Software Most popular softwares used across AWS and Microsoft Azure S 43% of Oracle Users are exploring PostgreSQL Open Source PostgreSQL is gaining popularity as an alternative to Oracle Popular Database on Cloud

15 9 months 5 months 15 months SMB Mid-size Enterprise Cloud Management Platform Businesses realize that managing cloud needs smart tools An average SMB actively considers using a CMP only after they reach a cloud spend of $7500 per month. Most SBM users experience significant cost leaks due to misconfigurations Mid-size adopt CMP faster due to planned cloud strategy, need for agility and shortage of skills. Most companies understand importance of using smart tools in dynamic cloud environments 96% of the customers acknowledge that cloud is better managed using a Cloud Management Platform. Enterprise takes time in evaluation of tools and have internal teams to manage cloud. Most internal optimizations are not scalable and turn to CMP for effectiveness

16 Enterprise Mid-size 5 SMB 5% 15% 78% 5% 35% Production 10% workloads for SMB 55% 80% 60% 35% 0% 25% 50% 75% 100% No Plans Exploration Actively Persuing DevOps Maturity DevOps is changing the way cloud and IT is operated by engineers. For DevOps, the enterprise is fast becoming the master user, thanks to evolved IT management processes. Many mid-size companies have better DevOps processes than an average enterprise user. In SMB, except startups in technology space, others are struggling with DevOps adoption.

17 Cloud Spend Insights

18 5 76% Average growth in cloud spend during 2017 Enterprise Mid-size SMB ,000 1,00,000 1,50,000 2,00,000 Cloud Spend Analytics Cloud spend often defies segment classifications B 68% SMB has the highest revenue to cloud spend ratio. Customers plan to move more workloads to cloud Mid-size public cloud spend has the fastest growth rate even with better optimization than other segments. Average enterprise cloud expenses growth rate has doubled in comparison to Enterprises are spending close $200K in Cloud on an average and we expect it to touch $500K in 2018.

19 Enterprise Mid-size SMB 32% 40% 41% 32% 28% 22% 22% 19% 20% 9% 7% 9% 3% 6% 10% 0% 25% 50% 75% 100% Compute Database Storage Network Others Cloud Consumption Patterns What services are companies consuming in cloud? Start-ups and Enterprise companies find database cost optimization tough. Mid-size companies have optimized database costs better which gives them significant cost savings. Mid-size companies leveraging advanced analytics and Bigdata applications use storage services extensively. Only 3 out of 10 cloud customers are using cloud native analytics services provided by vendors like AWS & AZURE.

20 Popular AWS Services Setting budget alert 80% Top Cost Saving Actions The most performed cost saving actions by customers with Botmetric n 85% Removed unused resources 39% r Average saving in Azure cloud by rightsizing Rightsizing of running resources Removal of unused resources Start/ stop of non- production workloads Reserved instances planning Delete aged snapshots Rightsizing of resources Upgrade to latest generation Delete unnecessary resources 75% 85% 70% 100% 0% 25% 50% 75% 100% Popular Azure Services 60% 85% 70% 80% Start/ stop of non-production VM 100% 0% 25% 50% 75% 100%

21 Cloud Security

22 5 78% SMBs use un-encrypted endpoints Web application attacks Lack of data protection controls Identity theft Insecure network interfaces Unauthorised access 32% 38% 46% 64% 58% 0% 18% 35% 53% 70% Top Cloud Security Concerns People don't react to reality; they react to their perceptions of reality. B 328% Growth in data security incidents SQL injection is the most popular attack on webapps and most cloud load balancers are not protected. Exposed keys in the code has been reported as a major reason for identity theft in 2017 while using cloud services. Security events for DB s and object stores like S3 have almost tripled in % of mid-size companies lack proper IAM controls and rotation policies.

23 Enterprise Mid-size SMB 23% 29% 36% 38% 30% 24% 6% 10% 12% 3% 14% 10% 9% 11% 8% 3% 1% 11% 1% 9% 12% 0% 25% 50% 75% 100% Network security Data security Server security Access & IAM security Infrastructure security DR recovery Other Top Security Alerts Frequent cloud security alerts by categories. Not following AWS recommended VPC network design is the major cause of network alerts. Misconfiguration of network access controls is the highest contributor to data security alerts. 44% of overall data security alerts related to object storage and databases. Customers need centralized view for their data access policies and QRT to mitigate data theft risks.

24 5 32% Growth in SOC compliance 1 23% 15% 12% 18% 32% 0% 25% 50% 75% 100% PCI-DSS CIS HIPAA SOC1/SOC-2 Others Top Cloud Security Concerns People don't react to reality; they react to their perceptions of reality. B 63% Mid-Size want unified compliance controls PCI-DSS continues to be the most requested security control. 29% of users create custom security audits. Most EU customers are struggling with GDPR adoption.

25 Others 22% 5 42% Reduced attacks by blocking open public ports Remove unused API key pairs and access keys Remove unused security & network firewall rules Rotating IAM keys Termination protection for critical resources Block undesirable publicly opened ports 3% 10% 12% 17% 36% 0% 10% 20% 30% 40% Top Security Actions Top security recommendations enabled by customers after compliance audits in Botmetric B 18% Customers lost data due to lack of termination protection 36% Enterprises lock publicly open ports which is believed to be the first attack surface. Only 17% enterprise rotate IAM keys on cloud. 55% Mid-Size has unused firewall rules and fail to protect their application and network endpoints.

26 Thank You Multi-cloud is Priority With an increase in the maturity of public cloud users, public cloud market will continue to evolve with high demands for a multicloud environment. Cloud need to be Managed The challenge to seamlessly manage the cloud, is still a halfwon battle for most of the cloud adopters. Intelligence is the Key Cloud management challenges can be effectively addressed by intelligent software to speed up the process of digital IT transformation. Interested in detailed analysis behind this report? Contact research@botmetric.com