1、DEVOPS AND THE PUBLIC CLOUD:The Rise of theAlternative CloudQ1 2022COMMISSIONED BYDANIEL KIRSCHPrincipal Analyst and Managing DirectorMITCHELL ASHLEYPrincipalCONTENTSEXECUTIVE SUMMARY.3CLOUD AND MULTICLOUD ARE MAINSTREAM IN DEVOPS AND GROWING FAST.5HYPERSCALERS DOMINATE,BUT MANY COMPANIES CHOOSE ALT

2、ERNATIVE CSPS.6MORE DEVOPS TEAMS ARE TRYING AND BUYING ALTERNATIVE PROVIDERS.7LACK OF OPTIONS,HIGH COSTS,MISTRUST DRIVE SEARCH FOR ADDITIONAL CSPS.8WHY ADD A CLOUD INFRASTRUCTURE PROVIDER?.9TOP TECHNICAL CRITERIA:DATA SECURITY,UPTIME,PRICE-PERFORMANCE.10TOP BUSINESS CRITERIA:TRUSTWORTHY,EASY TO WORK

3、 WITH,TECH KNOW-HOW.11THE TECHSTRONG RESEARCH VIEW.12SURVEY DEMOGRAPHICS.14ABOUT TECHSTRONG RESEARCH.15COMMISSIONED BY2COMMISSIONED BY312Executive SummaryMARKET NOISE over the past few years has crystalized into a clear message:cloud and multiclouds from trusted providers have become an important fo

4、undational technology for DevOps teams.A Techstrong global survey of 531 development professionals,managers and senior managers across 20 industries shows that,like DevOps itself,multicloud is more than just a passing fad and has become fully industrialized.Our research found:Cloud and multicloud in

5、 DevOps has arrived and is growing fast.Respondents are heavily engaged with cloud and cloud-native technologies.Roughly 75%say their infrastructure will be cloud-based by the end of this year,up double digits from our 2021 study.Nearly 70%of firms polled are using more than one cloud service provid

6、er(CSP),up 20%in a year.Biggest multicloud drivers:adding optionality,reducing costs.The growth of cloud technology in DevOps mirrors the larger,ongoing tectonic shift of enterprise infrastructure including servers,virtual machines,storage,networking,etc.beyond on-premises to distributed,open,and he

7、terogenous environments.Many are trying and buying“alternative”cloud providers.The largest three hyperscalers(Amazon Web Services,Microsoft Azure,Google Cloud Compute)are used by 93%of respondents.Yet many DevOps buyers are re-thinking a reflex default to these hyperscalers.Two-thirds of companies s

8、urveyed would consider bringing in an“alternative”CSP;almost 22%have already done so.In fact,the combined market share for the top alternative vendors is fourth in the category,just behind Microsoft and Google.Interest and adoption is highest in small and medium organizations(fewer than 10,000 emplo

9、yees).Main reasons for bringing in a new vendor include reducing reliance on a single provider,improving price performance and ease of use,and better data protection.The combined market share for the top alternative cloud service vendors is fourth in the category,just behind Microsoft and Google.Exe

10、cutive Summary|The Rise of the Alternative CloudCOMMISSIONED BY43The growing embrace of alternative vendors signals healthy concern in several areas,including about overprovisioning with expensive and complex global cloud services,and the desire to avoid indirectly underwriting expensive R+D for tec

11、hnologies(i.e.,quantum computing)their organizations do not need.Combined with widespread fears about giant CSPs pilfering customer core businesses(see below),more DevOps buyers are turning to trusted smaller firms that offer pure-play cloud infrastructure“purpose-sized for me.”Buyers are worried ab

12、out IP theft and competition from major providers.More than 50%of DevOps professionals and leaders surveyed say their CSP is already a competitor to their B2B or B2C business or is expected to become one.Fear of IP loss and rapid market displacement is also evidenced in respondents strong stated des

13、ire to work with a trustworthy,capable provider who shares their company values.The new central role of multicloud and cloud in DevOps means wise planning,selection,and management of Infrastructure as a Service(IaaS)will become increasingly more important in ensuring that organizations can quickly,r

14、eliably,and safely produce at scale the quality software demanded by todays users.Executive Summary|The Rise of the Alternative CloudCloud and Multicloud are mainstream in DevOps and growing fastThe accelerating,decade-long adoption of cloud technology as a key enabler of enterprise modernization an

15、d transformation has taken firm root in development and operations groups.DevOps teams have deeply embraced scalable,cloud-native infrastructure,moving from pilots and single workloads projects to full-scale production.Adoption of multicloud has reached critical mass:Nearly 70%of respondents are usi

16、ng more than one cloud provider,a big jump from 2021.An interesting evolution more than one-third of respondents use alternatives like UPI and cryptocurrencies as payment for cloud services.How do you pay for cloud services?What percentage of your IT infrastructure will be cloud-based one year from

17、now?2021SURVEY66%2022SURVEY75%68+32+Tof organizations surveyed are using more than one cloud provider,up sharply from last year69+31+R69+31+Rpurchase cloud services directly from the cloud providerpurchase cloud services as part of an engagement with a managed services provider/IT services69%69%31%3

18、1%58%44%34%20%3%Credit CardsFormal contracts/RFPsAlternative payments(UPI,PayPal,Google Pay)Cryptocurrency(ies)OtherQ1 202268%68%5The Rise of the Alternative CloudCOMMISSIONED BYHyperscalers dominate,but many companies choose alternative CSPs As the CSP market continues to mature and expand,DevOps t

19、eams face many more choices of vendors to handle new and expanded enterprise workloads and multiclouds.While more than 90%of respondents use cloud services from Amazon,Microsoft or Google,choosing a hyperscaler by default is no longer a“no-brainer.”Our research found significant and growing numbers

20、of companies continuing to opt for smaller,“alternative”providers.The aggregated market share of these top eight cloud service and infrastructure vendors slightly trails Google.31.47%21.74%17.68%15.23%5.67%4.23%ALTERNATIVE CLOUD(COMBINED)6The Rise of the Alternative CloudCOMMISSIONED BYMore DevOps t

21、eams are trying and buying alternative providersGrowing market share has helped further establish“alternative”cloud providers as highly capable,viable alternatives to hyperscale giants.Two-thirds of respondents are evaluating,considering or ready to buy;nearly one-fourth are already doing so.Interes

22、t is strongest in small(up to 500 employees)and medium(up to 10,000 employees)companies proportionally the highest consumers of cloud services.Alternatives may be especially attractive to 50%of organizations surveyed who say they do not need expansive global reach,such as regional banks,for example.

23、The same is true for the 48.5%companies who say that a CSP offering Core Infrastructure Primitives accomplish 90%of their common workloads.Choosing an alternative is not an either-or decision:Our research found nearly one-fifth of organizations choosing an alternative carrier also continue to use se

24、rvices from a hyperscaler,a sensible diversification sure to continue.7The Rise of the Alternative CloudCOMMISSIONED BYslow testingLack of options,high costs,mistrust drive search for additional CSPsWhen choosing infrastructure,DevOps teams must carefully balance economy,reliability and security.Lik

25、e other parts of the business,theyve learned that doing so is much harder with complicated and expensive cloud service plans that can quickly get out of hand.Many have also concluded that spreading operations across cloud providers is a smart hedge against disruptive outages and vendor lock-in that,

26、among other challenges,makes it difficult and costly to hire a mega-vendors certified DevOps professionals.Widespread fear about IP theft and competition from big CSPs Beyond ever-present concerns about data security,a shockingly high percentage of respondents more than half expressed deep ethical a

27、nd moral concerns about their current cloud providers(s).Many say worry that a CSP would steal intellectual property and/or become a competitor in retail,pharmacy,home automation,driverless cars or others.Unfavorable sentiment even extends to a CSPs customers,another sign of deep mistrust.Taken toge

28、ther,these negatives seem highly likely to keep DevOps buyers branching out beyond diversified cloud giants.28+49+23+TAre you afraid that your cloud services provider will become a competitor?49%49%NO27.5%27.5%THEYTHEYALREADYALREADYAREARE23.5%23.5%YESYES8The Rise of the Alternative CloudCOMMISSIONED

29、 BYcloud updatesWhy add a cloud infrastructure provider?We need to be less reliant on a one or two cloud providers(we need a multicloud strategy)Our cloud provider(s)is becoming or has become a competitorNervous my cloud provider might steal my IPOur cloud providers customers have morals/business mo

30、dels I disagree withWe cant find or afford certified DevOps professionals for our current cloud providersCosts have become too expensive/too complexRecent cloud service provider outages53.92%19.35%26.27%38.02%18.43%29.72%10.6%9The Rise of the Alternative CloudCOMMISSIONED BYDevOps teams expect the p

31、rovider(s)chosen to support the key goals of delivering strong data security and value,with excellent technical support and at least four-nines availability.More than six in ten surveyed considered the flexibility offered by APIs“very”or“critically”important;others were strongly indifferent.More tha

32、n two-thirds of respondents cited minimum 99.99%uptime as important in selecting a provider.Top technical criteria:Data security,uptime,price-performanceWhat technical capabilities are most important when selecting a cloud infrastructure provider?square High Data Security square Better Price/Perform

33、ancesquare Technical Know-how of Supportsquare API-Programmatic Access,Automation76.78%72.66%70.02%61.18%10The Rise of the Alternative CloudCOMMISSIONED BY47.9%Assuming a CSP can deliver the technological goods at a good price is only half of the selection criteria.Deep concern about provider ethics

34、 and positive customer experience are evident in the attributes companies seek in a cloud vendor.Respondents say they want a trusted CSP thats easy to do business with,understands developers and technical customers and developers,meets the needs of an organization their size,and is a good cultural f

35、it.Many of these characteristics play to the strengths of alternative providers,boding well for their continued growth and market strength.Bottom line:Trust and a range of fit factors are now of paramount importance for successful partnerships between cloud providers and DevOps teams.Top business cr

36、iteria:Trustworthy,easy to work with,tech know-howWhat business capabilities are most important when selecting a cloud infrastructure provider?A company I can trustEasy to do business withMeets the needs of technical customersEstablished vendorMeets the needs of large enterprise organizationsA vendo

37、r that is developer-centricA good size and culture fit for me/my employerMeets the needs of small businesssquare Very important square Critical28.88%76.78%68.78%64.07%61.16%58.44%55.17%54.81%49.91%36.3%35.75%37.57%35.75%38.29%41.38%40.65%22.14%19.42%17.24%14.16%30.49%22.69%20.51%11The Rise of the Al

38、ternative CloudCOMMISSIONED BYFASTER THAN MANY EXPECTED,multicloud has pushed through the industry hype-cycle,becoming a credible cornerstone for modern DevOps efforts.Consuming services from multiple providers has become a mainstream staple for economically and securely producing,releasing,updating

39、,and managing quality software across modern,distributed,heterogenous IT environments.Todays cloud services market offers a dizzying array of choices-not just from Big 3 hyperscalers AWS,Microsoft and Google,but from legacy technology firms like IBM and Oracle,as well as from increasingly popular pu

40、re-play“alternative”CSPs that until now have been under the radar of many enterprise recommenders and buyers.This growing range of options makes now an ideal time to freshly assess strategies in this increasingly important area.The Techstrong Research ViewDevOps buyers and recommenders.Evaluate whet

41、her global cloud infrastructure hyperscaler amounts to a different and costly form of overprovisioning(i.e.,buying a high-end Tesla SUV when a solid Hyundai will do great.)Do you really need all the bells and whistles and costs that underwrite next-gen and futuristic technologies?Take the opportunit

42、y to evaluate your current provider/s against key values like price-performance,ease of doing business,etc.Check with the appropriate IT and business leaders to make sure your organization is not locked in to a long-term and/or prohibitive agreement with your current cloud infrastructure provider.If

43、 not,be prepared to make a clear and concise business case to get them comfortable with a provider they likely are unfamiliar with.Finally,consider how adding another multicloud provider may add complexity and whether your teams are realistically ready to handle it.CSPs.Firms that develop what DevOp

44、s buyers say they value most good price-performance,strong security,(for many)a wealth of APIs,and a partner thats honest and easy to work with will find an eager and growing market.How do your offerings measure up in these key areas?Does it make sense to lean more into the needs of DevOps and conti

45、nue to tailor services to them?If youre a larger provider,how can you demonstrate to Devops in small and midsized organizations that their business matters compared to your big,marquee global customers?One-third of DevOps buyers now pay for cloud infrastructure COMMISSIONED BY12with”alternative”meth

46、ods,including Google Pay,PayPal and cryptocurrency.Start assessing whether its worth it for you.Overall.Diversification offers tremendous potential advantages in price-performance,flexibility and reliability,but organizations must be clear-eyed about the new challenges it brings.Adding additional cl

47、oud providers to test and development environments,by definition,increases strategic and operational complexity.What workloads are best placed where?Do regulations or existing contracts prohibit moving workloads and data?DevOps groups must learn new taxonomies,tools,systems and interfaces.Security,t

48、oo,becomes more complicated and challenging,as teams must now master and manager additional new security stacks,firewalls,traffic monitoring in the face of huge spikes in malicious API traffic.Stepping back,how is the new,wider cloud landscape and sprawl virtual machines and bare metal and best mana

49、ged?Multicloud remains a young work in progress.While its too early for best practices,enterprises should take the opportunity to begin or continue analysis of the roles of containers,automation,and Infrastructure as Code(IAC),to name a few.As always,the smartest teams are guided by the NorthStar of

50、 reliably and securely delivering quality software and services at the lowest cost.COMMISSIONED BY13nSurvey DemographicsSurvey responses came from a global cross-section of 60 countries and regions including North America(46%),APAC(34%),EMEA(15%)and LATAM(5%).Respondents hold a variety of roles and

51、come from a broad range of organizational sizes:Twenty industries weresurveyed,including:stUyAof respondents came from small organizations(10,000 employees)of respondents represent large enterprises(10,000 employees)self-identified as manager or leadership(manger/senior manager to CEO)Business/Emplo

52、yerBusiness+PersonalPersonalTechnology51%Education8%TechStrong Research conducted a global study on the use of multiclouds in DevOps environments.The survey was conducted during February and March of 2022.A total of 531 individual contributors,managers and executives involved with DevOps multicloud

53、procurement,operations and strategy completed the survey.48%27%25%65%47%42%11%BDFinancial Services7.5%zBusiness support5%cCOMMISSIONED BY14COMMISSIONED BY15About Techstrong ResearchTechstrong Research accelerates the adoption of disruptive technologies that drive business outcomes and provide action

54、able strategies in rapidly changing markets.We are the only organization serving the needs of IT leaders,practitioners and the industry ecosystem with research,analysis,content,events and education.We bring deep knowledge about todays leading technologies such as DevOps,cloud,data and AI/ML,security

55、/governance initiatives and supporting infrastructure.We offer our customers a holistic business perspective essential to adapt and thrive in the digital economy.The Techstrong Research team has the knowledge,experience and credibility earned by working with hundreds of businesses across many indust

56、ries to provide consulting,thought leadership and research services.Techstrong Research is relentlessly focused on the business outcomes of disruptive technologies.About the authorsDAN KIRSCH,managing director and co-founder of Techstrong Research is a consultant,IT industry analyst and thought lead

57、er focused on how emerging technologies such as AI,machine learning and advanced analytics are impacting businesses.Dan is focused on how businesses use these emerging technologies to alter their approaches to information security,governance,risk and ethics.Dan provides advisory services directly to

58、 leadership at technology vendors that design and deliver security solutions to the market.Dan is a co-author of Augmented Intelligence:The Business Power of Human-Machine Collaboration(CRC Press,2020),Cloud for Dummies(John Wiley&Sons 2020)and Hybrid Cloud for Dummies(John Wiley&Sons,2012).Contact:

59、MITCHELL ASHLEY serves as principal at Techstrong Research where he is part of a team of preeminent experts in digital transformation,DevOps,cloud-native and cybersecurity.In this role,he works with companies to align digital transformation and technology strategies to achieve disruptive goals and h

60、igh-impact results.Mitch also serves as Techstrong Group CTO,is in demand as a speaker and is widely followed online on his podcasts,his Analyst Corner commentary and interviews on the highly popular Techstrong TV streaming video program where he engages with top digital and tech leaders from across the industry.Contact:BusinessOutcomesAI&DataSecurityInfrastructureDevOpsCloud