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Brocade responds to the Cloud Industry Forum Research

by Jamie Hooper, Tuesday 12 April 2011

12 April 2011

Brocade responds to the Cloud Industry Forum Research

Cloud Industry Forum Survey on Cloud Adoption Reveals a Need for Vendors to Support Channel in Communicating Cloud Options and Benefits

Marcus Jewell, Country Manager UK and Ireland at Brocade Communications: “It is clear from CiF’s survey that there needs to be vendor and channel driven education to customers on what cloud services encompass, the different options open to them, and the business benefits of cloud adoption each option can offer. Cloud is much more than email, back-up or Software-as-a-Service (SaaS), but in conversations between customers and channel it is clear the cloud issue is sometimes lost in translation. It is critical that customers understand that the network is the vital foundation to any kind of real cloud service, which can deliver the business flexibility, responsiveness and competitive advantage they are looking for.

“The Cloud Industry Forum’s survey shows that while customers are engaging with cloud computing at some level, and channel are engaging in cloud services and support at some level, there is still some difference in how both define and categorise ‘cloud’. This is having an impact on how channel can communicate the benefits of cloud, wider adoption of cloud based solutions, and potentially on the revenue opportunities. I suspect partly this is due to a lack of understanding on how critical the network is to delivery of cloud services – be that an on-site private cloud, or a third-party hosted solution.”

Supporting data points: * 57% of channel say less than 15% of revenues were be from cloud solutions or services in 2010 * The three top cloud services offered by channel are: back-up/disaster recovery SaaS, Storage SaaS and Business Intelligence SaaS. The top three applications customers consider as cloud are: email management, data back-up and recovery, and Webhosting

Jewell continued: “While it is very positive to see the channel so engaged in an area that offers significant opportunities for expansion and growth; and that customers clearly recognise and utilise the expertise of their partners, the difference in focus on cloud services has led to 38% of customers questioned for the CiF research stating that their incumbent channel partner has not raised the subject of cloud with them. Vendors have a key role and responsibility in helping clarify the many options available for customers wanting to adopt cloud services.

Supporting data points: * 27% of channel are not convinced the market is ready to adopt cloud, yet 48% of customers claimed to already be using some form of cloud service or solution * 73% of believe the market is ready to embrace cloud * 63% of channel claim to be offering some form of cloud services, but there are differences in end-user and channel definitions of just what entails cloud services. * 79% claim to already be offering SaaS, 51% Infrastructure-as-a-Service, and 47% Platform-as-a-Service

“The key question for the channel has not been whether they offer cloud solutions or services, but how when there are so many options open. Larger enterprises, and businesses with specific high-security, high-risk and high legislative requirements, will continue wanting expertise in building their own private cloud environments; others will want to adopt a hybrid model, and some will want to move some business applications and services to a third-party managed service solution. The key issue for channel is creating a differentiated offer – IP channel and applications specialists in particular need to be clear about what they are offering, and ensure they have the network know-how and physical infrastructure in place to support cloud services” concludes Jewell.

Supporting data points: * 48% of channel expect over 26% of their revenues to be generated by cloud services by 2014 * 200 Channel and 450 end users questioned as part of CiF survey reveals difference in understanding on cloud services

For Further comment or information please contact Dawn Harnetty (dawn.harnetty ihQ brocade.com) or visit www.brocade.com

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