In January 2016, RightScale conducted its fifth annual State of the Cloud Survey of the latest cloud computing trends, with a focus on infrastructure-as-a-service. We highlight several key findings from the survey, including stats on hybrid cloud adoption, top challenges among cloud users, and the demand for DevOps. We've also provided a link to download the full report for free.

1. 2016 STATE OF THE CLOUD REPORT
WEBINAR

2. • Michael Crandell
• CEO
• Kim Weins
• VP Marketing
Panelists

3. • Survey Methodology
• Cloud Adoption
• Cloud Workloads
• Central IT Role in Cloud Adoption
• Cloud Benefits and Challenges
• DevOps Adoption
• Cloud Providers
Agenda

4. • 69,023 people from the RightScale database were emailed the
survey
• 1060 responses
• 433 (42%) are 1000+ employees (Enterprises)
• 3.07% margin of error
• Respondents are not just RightScale users
• 17% are RightScale users
Methodology

5. 42%
25%
33%
Respondents by Company Size
1060 respondents
Company Size
1001+
employees
101-1000
employees
1-100
employees
Source: RightScale 2016 State of the Cloud Report

6. 25%
24%
27%
7%
6%
4%
4%
3%
Respondents by Industry
1060 respondents
Industry
Software!
Tech!
Services!
Financial Services!
Other!
Media & Publishing!
Education!
Business Services!
Source: RightScale 2016 State of the Cloud Report
Hardware!

7. 61%
19%
13%
7%
Respondents by Region
1060 respondents
Region
North America!
Source: RightScale 2016 State of the Cloud Report
Europe!
Asia!
Rest of World!

8. 55%
11%
34%
Role of Respondents
1060 respondents
Role of Respondents
Dev!
Business!
IT/Ops!
26%
24%
13%
16%
10%
11%
Level of Respondents
1060 respondents
Architect!
Dir/Mgr!
Exec!
IT/Ops!
Dev/QA!
Other!
Source: RightScale 2016 State of the Cloud Report
Source: RightScale 2016 State of the Cloud Report

9. 44%
40%
16%
Role of Cloud Architect Emerges
Role of Cloud Architect Emerges
IT Architect!
Source: RightScale 2016 State of the Cloud Report
Cloud
Architect!
Development!
Architect!

10. Cloud Maturity
9%
11%
26%
25%
29%
Cloud Maturity of Respondents
Cloud!
Watchers!
Cloud!
Beginners!
Cloud!
Explorers!
Cloud!
Focused!
No!
Plans!
Planning
First project
Apps running
Heavy use
Source: RightScale 2016 State of the Cloud Report

11. Finding:"
"
Hybrid Cloud Use Soars"
as Public Cloud Users Add Private Cloud

12. 82% of Enterprises Still Want Multi-Cloud
Single private!
6%!
Single public!
9%!
No plans!
3%!
Multiple private!
11%!
Multiple public!
16%!
Hybrid cloud!
55%!
Enterprise Cloud Strategy
1000+ employees
Multi-Cloud
82%
Source: RightScale 2016 State of the Cloud Report

13. 95% of Respondents Are Using Cloud
(Running Apps or Experimenting)
Public Cloud!
Only!
Private Cloud!
Only!
95% of Respondents Are Using Cloud
71%! 6%!18%!
Hybrid!
Source: RightScale 2016 State of the Cloud Report
Private = 77%!Public = 89%!

14. 88%
63%
58%
93%
89%
77%
71%
95%
Public Cloud! Private Cloud! Hybrid Cloud! Any Cloud!
Respondents Adopting Cloud 2016 vs. 2015
2015
2016
Private/Hybrid Adoption up YoY
Source: RightScale 2016 State of the Cloud Report

15. # of Clouds Used
Public Clouds
All respondents
Private Clouds
All respondents
Running applications
1.5
1.7
Experimenting
1.5
1.3
Total
3.0
3.0
Average # of Clouds Used

16. Finding:"
"
More Enterprise Workloads "
Shift to Cloud"
Public and Private Workloads Grow

17. 4%
14%
13%
11%
16%
28%
11%
13%
14%
26%
26%
28%
48%
31%
17%
Virtualized
Environments
Private Clouds
Public Clouds
Number of VMs Enterprises Are Running in Cloud
None
1-50 VMs
51-100 VMs
100-1000 VMs
1000+ VMs
VMs Running in Cloud for Enterprises
Source: RightScale 2016 State of the Cloud Report

18. 12%
13%
32%
28%
16%
14%
27%
28%
13%
17%
2015
2016
Number of VMs Enterprises are Running
in Public Cloud
None
1-50 VMs
51-100 VMs
100-1000 VMs
1000+ VMs
Growth in VMs Running in Public Cloud –
Enterprises
Source: RightScale 2016 State of the Cloud Report

19. 18%
14%
18%
16%
11%
13%
31%
26%
22%
31%
2015
2016
Number of VMs Enterprises are Running
in Private Cloud
None
1-50 VMs
51-100 VMs
100-1000 VMs
1000+ VMs
Growth in VMs Running in Private Cloud –
Enterprises
Source: RightScale 2016 State of the Cloud Report

20. 13%
22%
17%
31%
Public Cloud! Private Cloud!
Enterprise Respondents
with 1000+ VMs in Cloud
2015
2016
Enterprises with 1000+ VMs in Cloud YoY
Source: RightScale 2016 State of the Cloud Report

21. 13%
22%
11%
12%
17%
24%
16%
39%
12%
11%
11%
10%
0% public, 100% private
20% public, 80% private
40% public, 60% private
60% public, 40% private
80% public, 20% private
100% public, 0% private
Cloud Workloads by Cloud Type
Enterprise
SMB
Enterprise More Private, SMB More Public
Source: RightScale 2016 State of the Cloud Report

22. Finding:"
"
Central IT is Establishing"
Their Role in Cloud

23. BUs Give Central IT Larger Role
25%
39%
34%
40%
47%
31%
35%
44%
24%
29%
42%
42%
42%
44%
44%
47%
Pay for cloud services
Manage all cloud deployments
Select public clouds
Broker cloud services
Build private cloud
Set policies for cloud use
Select private clouds
Decide/advise on which apps go to cloud
2016
2015
Enterprise BU Views of Role of Central IT
Source: RightScale 2016 State of the Cloud Report

24. 30%
34%
35%
37%
43%
46%
52%
58%
38%
38%
39%
43%
45%
48%
56%
63%
Approval policies for cloud
Cost policies for cloud
Availability or disaster recovery policies for cloud
Portfolio of clouds that can be used
Which applications should go to cloud
Timeline for implementing a cloud strategy
Security policies for cloud
Benefit or value the company wants to achieve
Enterprises with Key Areas of Cloud Governance Defined
2016
2015
Progress on Cloud Governance YoY
Source: RightScale 2016 State of the Cloud Report

25. Finding:"
"
More Cloud Users Gain Speed"
from Cloud Adoption

26. 39%
41%
38%
40%
40%
40%
48%
51%
57%
57%
37%
38%
39%
39%
39%
41%
52%
52%
58%
62%
Cost savings
IT staff efficiency
Move CapEx to OpEx
Geographic reach
Higher performance
Business continuity
Faster time-to-market
Higher availability
Greater scalability
Faster access to infrastructure
Cloud Benefits 2016 vs. 2015
% of Respondents Reporting These Benefits
2016
2015
Cloud Benefits in 2016
Source: RightScale 2016 State of the Cloud Report

27. 46%
52%
48%
57%
52%
62%
Faster speed-to-market
Faster access to infrastructure
Respondents that Gain Speed Benefits
from Cloud
2014
2015
2016
Cloud Increasingly Means Speed
Source: RightScale 2016 State of the Cloud Report

28. Finding:"
"
Security No Longer the #1 Challenge,"
Lack of Resources/Expertise Is

29. 17%
23%
26%
24%
25%
25%
28%
27%
15%
23%
24%
26%
26%
26%
29%
32%
Performance
Governance/control
Complexity of building a private cloud
Managing costs
Managing multiple cloud services
Compliance
Security
Lack of resources/expertise
Cloud Challenges 2016 vs. 2015
2016
2015
Lack of Resources/Expertise is Now #1
Challenge, Not Security
Source: RightScale 2016 State of the Cloud Report

30. 47%
2014
Central IT Concerns About Security Decline
41%
2015
Enterprise Central IT Rating Cloud Security
as Significant Challenge
Source: RightScale 2016 State of the Cloud Report
37%
2016

31. Place
Cloud Beginners
Cloud Explorers
Cloud Focused
#1
Lack of resources/
expertise (38%)
Lack of resources/
expertise (34%) é 3
Lack of resources/
expertise (26%) é 5
#2
Security (35%)
Compliance (32%)
Building a private cloud
(19%)
#3
Compliance (34%)
Managing costs (30%)
Managing costs (18%)
#4
Managing multiple cloud
services (30%)
Security (28%) ê 2
Managing multiple cloud
services (18%)
#5
Governance/Control (29%)
Managing multiple cloud
services (26%)
Security (17%) ê 4
Top 5 Challenges Change with Maturity
Top 5 Challenges Change with Cloud Maturity!
Source: RightScale 2016 State of the Cloud Report

32. Finding:"
"
More Cloud Cost Optimization is a Big
Opportunity

33. 18%
21%
24%
26%
2013! 2014! 2015! 2016!
Respondents that Say Managing Cloud Costs
is a Significant Challenge
Challenge of Managing Costs is Growing
Source: RightScale 2016 State of the Cloud Report

34. 3%
18%
17%
18%
21%
36%
29%
28%
28%
45%
4%
14%
22%
24%
25%
28%
31%
33%
34%
45%
Use Google Preemptible VMs
Use AWS Spot Instances
Move workloads to cheaper cloud/region
Select cloud or region based on cost
Track AWS Ris to make sure they are used
Purchasing AWS Ris
Look for storage volumes not in active use
Shutdown workloads during certain hours
Automate shutdown of temporary workloads
Monitor utilization and rightsize instances
How Companies are Optimizing Cloud Costs
Enterprise
SMB
Few Companies are Optimizing Cloud Costs
Source: RightScale 2016 State of the Cloud Report

35. 3%
17%
21%
22%
25%
33%
32%
33%
33%
49%
5%
15%
18%
20%
24%
36%
29%
29%
28%
42%
Use Google Preemptible VMs
Use AWS Spot Instances
Move workloads to cheaper cloud/region
Select cloud or region based on cost
Track AWS Ris to make sure they are used
Purchasing AWS Ris
Look for storage volumes not in active use
Shutdown workloads during certain hours
Automate shutdown of temporary workloads
Monitor utilization and rightsize instances
How Companies are Optimizing Cloud Costs
Cost is challenge
Cost not a challenge
People that See Cost as Challenge are
Optimizing LESS
Source: RightScale 2016 State of the Cloud Report

36. Finding:"
"
2016 Initiatives:"
Cloud Beginners want to do more in cloud,
while Cloud Focused need to optimize

37. 17%
29%
30%
29%
34%
38%
43%
35%
33%
39%
40%
44%
44%
46%
47%
57%
Enabling IT to broker multiple cloud services
Expanding private clouds we use
Expanding use of containers
Implementing a cloud first strategy
Implementing CI/CD in the cloud
Expanding public clouds we use
Optimizing existing cloud use (cost savings)
Moving more workloads to cloud
Cloud Initiatives in 2016
Enterprise
SMB
2016 Cloud Initiatives
Source: RightScale 2016 State of the Cloud Report

38. Place
Cloud Beginners
Cloud Explorers
Cloud Focused
#1
Move more workloads to
cloud (43%)
Move more workloads to
cloud (63%)
Optimizing existing cloud
use/cost savings (62%)
#2
Implement a cloud first
strategy (40%)
Optimizing existing cloud
use/cost savings (53%)
CI/CD in the cloud (52%)
#3
Expand public clouds we
use (37%)
Expand public clouds we
use (51%)
Expand public clouds we
use (50%)
#4
Expand private clouds we
use (36%)
CI/CD in the cloud (46%)
Expand use of containers
(48%)
#5
Optimizing existing cloud
use/cost savings (34%)
Expand use of containers
(41%)
Move more workloads to
cloud (44%)
2016 Initiatives Depend on Cloud Maturity
Top 2016 Initiatives Depend on Cloud Maturity!
Source: RightScale 2016 State of the Cloud Report

39. Finding:"
DevOps Growing"
Docker Spreading Like Wildfire

40. Strong Growth in DevOps Adoption in 2016
66%
74%
19%
16%
15%
10%
2015
2016
DevOps Adoption Up in 2016
Adopting DevOps
Not adopting
Don't Know
Source: RightScale 2016 State of the Cloud Report

41. Enterprises Adopt DevOps at Even Higher Rate
70%
81%
19%
12%
11%
7%
SMB
Enterprise
Enterprise vs. SMB DevOps Adoption
Adopting DevOps
Not adopting
Don't Know
Source: RightScale 2016 State of the Cloud Report

42. 2%
3%
3%
4%
6%
7%
9%
20%
27%
32%
32%
8%
10%
12%
11%
16%
18%
12%
14%
35%
18%
19%
Rancher
Rocket
Docker Tutum
Mesosphere
Docker Swarm
Kubernetes
Salt
Ansible
Docker
Puppet
Chef
Respondents Using DevOps Tools
Use today
Plan to use
2016 DevOps Tools – All Respondents
Source: RightScale 2016 State of the Cloud Report

43. 3%
6%
10%
13%
28%
24%
3%
9%
20%
27%
32%
32%
Rocket
Salt
Ansible
Docker
Chef
Puppet
Respondents Using DevOps Tools
2016
2015
DevOps Tools YoY – All Respondents
Source: RightScale 2016 State of the Cloud Report

44. Finding:"
"
AWS Increases Adoption in Enterprise,
But Flat Overall"
Azure Gaining Adoption, Especially in
SMBs

45. 2%
6%
6%
6%
7%
11%
17%
23%
56%
5%
16%
10%
12%
13%
14%
24%
28%
16%
3%
9%
6%
7%
9%
9%
13%
13%
8%
DigitalOcean
Google IaaS
Oracle Cloud (IaaS)
Google App Engine (PaaS)
IBM SoftLayer
VMware vCloud Air
Azure PaaS
Azure IaaS
AWS
Enterprise Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – Enterprises
Source: RightScale 2016 State of the Cloud Report

46. 2%
6%
7%
9%
11%
26%
56%
5%
10%
13%
18%
14%
33%
16%
3%
6%
9%
11%
9%
17%
8%
DigitalOcean
Oracle Cloud (IaaS)
IBM SoftLayer
Google (IaaS+PaaS)
VMware vCloud Air
Azure (IaaS+PaaS)
AWS
Enterprise Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – Enterprises
Google and Azure IaaS + PaaS Combined
Source: RightScale 2016 State of the Cloud Report

47. 7%
9%
6%
10%
15%
19%
50%
2%
6%
6%
6%
7%
11%
17%
23%
56%
DigitalOcean
Google IaaS
Oracle Cloud (IaaS)
Google App Engine (PaaS)
IBM SoftLayer
VMware vCloud Air
Azure PaaS
Azure IaaS
AWS
Enterprise Public Cloud Adoption 2016 vs. 2015
% of Respondents Running Applications
2016
2015
Public Cloud Adoption YoY – Enterprises
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015
Not asked in 2015

48. 3%
5%
6%
6%
7%
7%
10%
13%
58%
9%
12%
15%
8%
9%
13%
17%
22%
17%
6%
8%
10%
7%
5%
10%
11%
10%
9%
Oracle Cloud (IaaS)
VMware vCloud Air
Google IaaS
IBM SoftLayer
DigitalOcean
Google App Engine
Azure PaaS
Azure IaaS
AWS
SMB Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – SMB
Source: RightScale 2016 State of the Cloud Report

49. 3%
5%
6%
7%
11%
15%
58%
9%
12%
8%
9%
19%
25%
17%
6%
8%
7%
5%
14%
14%
9%
Oracle Cloud (IaaS)
VMware vCloud Air
IBM SoftLayer
DigitalOcean
Google (IaaS+PaaS)
Azure (IaaS+PaaS)
AWS
SMB Public Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Public Cloud Adoption – SMB
Google and Azure IaaS + PaaS Combined
Source: RightScale 2016 State of the Cloud Report

50. 3%
5%
4%
8%
6%
9%
61%
3%
5%
6%
6%
7%
7%
10%
13%
58%
Oracle Cloud
VMware vCloud Air
Google IaaS
IBM SoftLayer
DigitalOcean
Google App Engine
Azure PaaS
Azure IaaS
AWS
SMB Public Cloud Adoption 2016 vs. 2015
% of Respondents Running Applications
2016
2015
Public Cloud Adoption YoY – SMB
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015
Not asked in 2015

51. Finding:"
"
Private Cloud Surges "
Across All Vendors

52. 13%
14%
18%
21%
22%
29%
60%
11%
20%
11%
22%
15%
14%
9%
5%
10%
7%
12%
7%
9%
4%
CloudStack
Microsoft Azure Pack
Bare-Metal Cloud
OpenStack
Microsoft System Center
VMware vCloud Suite
VMware vSphere/vCenter
Enterprise Private Cloud Adoption
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Adoption – Enterprises
Source: RightScale 2016 State of the Cloud Report

53. 14%
11%
18%
19%
26%
53%
13%
14%
18%
21%
22%
29%
60%
CloudStack
Microsoft Azure Pack
Bare-Metal Cloud
OpenStack
Microsoft System Center
VMware vCloud Suite
VMware vSphere/vCenter
Enterprise Private Cloud Adoption 2016 vs. 2015
% of Respondents Running Applications
2016
2015
Private Cloud Adoption YoY – Enterprise
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015

54. 6%
7%
12%
13%
13%
17%
32%
16%
13%
12%
10%
12%
17%
11%
9%
7%
6%
7%
6%
9%
5%
Microsoft Azure Pack
Microsoft System Center
VMware vCloud Suite
CloudStack
Bare-Metal Cloud
OpenStack
VMware vSphere/vCenter
SMB Private Cloud Usage
% of Respondents Running Applications
Running apps
Experimenting
Plan to use
Private Cloud Usage – SMB
Source: RightScale 2016 State of the Cloud Report

55. 4%
6%
6%
6%
10%
23%
6%
7%
12%
13%
13%
17%
32%
Microsoft Azure Pack
Microsoft System Center
VMware vCloud Suite
CloudStack
Bare-Metal Cloud
OpenStack
VMware vSphere/vCenter
SMB Private Cloud Adoption 2016 vs. 2015
% of Respondents Running Applications
2016
2015
Private Cloud Adoption YoY – SMB
Source: RightScale 2016 State of the Cloud Report
Not asked in 2015

56. • Full 2016 State of the Cloud Report
• www.rightscale.com/state-of-cloud-2016
Q&A