Cloud Trends and Critical Success Factors for European SMEs and Startups

Lisbon, 28 January 2015 INDEX

CLOUDCATALYST PROJECT: BACKGROUND, OBJECTIVES, OUTPUTS AND TARGETS

CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS

CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION WHY CLOUDCATALYST? PROJECT BACKGROUND

Partners have launched adoption will The challenges of cloud successful cloud initiatives and contribute to increase the computing expansion imply huge reach a vast network of competitiveness of EU economy entrepreneurial opportunities stakeholders

Companies have a clear It is fundamental to develop CloudCatalyst initiatives will advantage in using cloud highly efficient go-to-the-market foster collaboration between computing – more flexibility and strategies, focused on cloud stakeholders interested in lower fixed costs. Startups can entrepreneurship acceleration the creation or expansion of get started in no-time with a pay and business exploitation. innovative products and services. as you go model WHO ARE WE? PROJECT CONSORTIUM

CloudCatalyst is a team of 5 partners from complementary areas:

• INDUSTRY: Portugal Telecom and Si-MOBIL

• INCUBATOR: Science and Technology Park of the University of Porto (UPTEC)

• ACADEMIA: Universidad Complutense of Madrid (UCM)

• ASSOCIATION: EuroCloud Association WHAT ARE CLOUDCATALYST OBJECTIVES?

OBJECTIVE 1 Support entrepreneurs, researchers, and ACTIONS TO FOSTER developers to create value-added Cloud products and THE EMERGENCE OF A services STRONG AND ENTHUSIASTIC COMMUNITY OF OBJECTIVE 2 CLOUD ADOPTERS AND Increase the awareness of Cloud Computing benefits and SUPPORTERS IN positive impact in the European economy EUROPE WHO ARE THE MAIN TARGETS? SEGMENTATION BY COMPANY MATURITY

Project direct target Cloud computing is very attractive for new companies, NEW GENERATION STARTUPS especially in the absence of an existing on-premise infrastructure. Building their businesses around cloud and that see cloud as the natural answer to their IT needs Cloud startups are innovating in the way business is conducted in the cloud, creating entirely new business models for both product development and value delivery.

Indirect target The evolving capabilities of cloud computing will EXISTING COMPANIES catalyze significant disruptions to a broader array of industries:

With mature businesses and legacy systems on- • Banking • Healthcare premises that have difficulties moving to the cloud • Government • Media • ICT • Education WHAT WILL BE CLOUDCATALYST RESULTS? MAIN OUTPUTS (1|2)

SUPPORT ENTREPRENEURS, RESEARCHERS, AND SOFTWARE DEVELOPERS TO CREATE VALUE-ADDED CLOUD PRODUCTS AND SERVICES

MAJOR CLOUD STRATEGIC CLOUD GO-TO-THE-CLOUD TRENDS PLANNING FOR ACCELERATOR SERVICE CLOUD ADOPTION TOOLBOX MAJOR CLOUD STRATEGIC CLOUD GO-TO-THE-CLOUD TRENDS PLANNING FOR ACCELERATOR SERVICE CLOUD ADOPTION TOOLBOX STRATEGIC STRATEGIC CLOUD GO-TO-THE-CLOUD PLANNING FOR PLANNING FOR ACCELERATOR SERVICE CLOUD ADOPTION CLOUD ADOPTION TOOLBOX Business Model Canvas The Hook Model

CLOUD STRATEGIC CLOUD GO-TO-THE-CLOUD ACCELERATOR PLANNING FOR ACCELERATOR SERVICE TOOLBOX CLOUD ADOPTION TOOLBOX

Empathy Map Value Proposition Canvas GO-TO-THE-CLOUD STRATEGIC CLOUD GO-TO-THE-CLOUD SERVICE PLANNING FOR ACCELERATOR SERVICE CLOUD ADOPTION TOOLBOX WHAT WILL BE CLOUDCATALYST RESULTS? MAIN OUTPUTS (2|2)

INCREASE THE AWARENESS OF CLOUD COMPUTING BENEFITS AND POSITIVE IMPACT IN THE EUROPEAN ECONOMY

BOOTCAMPS FOR DYNAMIC WEBSITE WORKSHOPS AND STRONG STARTUPS AND FOR THE CLOUD ANNUAL EXPLOITATION SMES COMMUNITY CONFERENCES STRATEGY NEXT EVENT: BOOTCAMP IN MADRID SCIENCE PARK (APRIL 15, 16) – FOR FREE

MORE INFORMATION: cloudconference.eu INDEX

CLOUDCATALYST PROJECT: BACKGROUND, OBJECTIVES, OUTPUTS AND TARGETS

CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS

CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION CLOUD COMPUTING TRENDS

AN ONLINE SURVEY HAS BEEN CONDUCTED IN JULY AND AUGUST 2014

THE OBJECTIVES OF THE SURVEY WERE TO: PRIMARY GROUP OF RESPONDENTS

 Identify broad-based cloud adoption Organizations using or planning to use trends cloud computing  Identify drivers and barriers to adoption TOTAL NUMBER OF RESPONDENTS:  Identify decision making patterns according to different target groups GLOBAL 308 STARTUPS 32 SURVEY DEMOGRAPHICS

Role of Respondents Responses by Organization Type

9% 8% Academia 5% Government IT 25% 45% Business Industry 55% Non-Profit 5% 48% Other

Position of Respondents Type of Cloud Stakeholder

200 54%164 14% Director/Manager 150 41%122 41%122 35% Executive 100 28% IT 50 Other 23% 0 Provider Developer End-User UNDERSTANDING THE CLOUD COMPUTING STACK #1 : CHOOSE THE CLOUD SERVICE MODEL USED IN YOUR ORGANIZATION GLOBAL

100% STARTUPS 80% 100% 60% 80% 40% 66,5% 60% 57,6% 20% 32,6% 40% 52,0% 20% 40,0% 0% 24,0% IaaS PaaS SaaS 0% IaaS PaaS SaaS

• Cloud adoption predominantly focused in SaaS and IaaS. • It reflects the main Cloud adoption drivers, concerning criticalness and investment, merging the basic needs of a common business: 1) Infrastructure (storage and processing capacity) 2) Software CLOUD DEPLOYMENT MODELS #3: CHOOSE THE CLOUD DEPLOYMENT MODEL USED IN YOUR ORGANIZATION

GLOBAL already adopted adopt in near future adopt in distant future no plans to adopt

17% 17% 3 3 26% STARTUPS1 0 6 5 6% 7% 5 3 13% 15% 16% 12% 12% 9 8% 4% 12 28%13 20% 20% 5 23% 16% Private Cloud Public Cloud Hybrid Cloud 58% 54% 36% 24% 52% 56% 20% Private Cloud Public Cloud Hybrid Cloud Private Cloud Public Cloud Hybrid Cloud

• There is a paradigmatic shift from the classical deployment models – Public and Private Cloud are clearly predominant in the market – to a new trend, the Hybrid Cloud which collects the biggest intention of future adoption. • This applies both to the Global and Startups samples. TOP RATED CLOUD SERVICES #4: CLASSIFY THE SERVICES BELOW, ACCORDING TO THE ADOPTION RATE IN YOUR ORGANIZATION GLOBAL

TOP 5 ALREADY ADOPTED NO PLANS TO ADOPT HCM or Talent STARTUPS E-mail 69% 46% + Management TOP 5 ALREADY ADOPTED NO PLANS TO ADOPT Accounting/Back Business intelligence and On-line Storage 62% 43% On-line Storage 84% 36% office + analytics Infrastructure/ Business intelligence 40% 40% E-mail 68% Content management 32% compute power and analytics Sales Application Development 48% Accounting/Back office 32% 38% Security 40% management Infrastructure/ compute HCM or Talent 48% 32% Content System & network power Management 33% 36% System & network management management 36% Security 32% - - management

• Already adopted: E-mail and Online Storage are the most commonly adopted services, reflecting a significant maturation in its adoption. • No plans to adopt: Security and business intelligence are the services that are still on hold, once most companies identify them as low priority services to move to the cloud PUBLIC CLOUD MARKET AWARENESS #5: INDICATE IF YOU ARE AWARE/USING THE FOLLOWING PUBLIC CLOUD SOLUTIONS GLOBAL PROVIDERS GLOBAL already using aware and likely to consider aware of and not considering not aware

Amazon web services 34% 23% 28% 13% app engine 18% 18% 40% 17% STARTUPS azure IaaS 11% 20% 43% 17% 57 39 51 22 Google IaaS Amazon web services Google39% app engine 2835% 32 26%73 30 10% 23% 36% 22% IaaS 21 26 82 30 Microsoft26% azure PaaS26%16 26 39% 82 4% 31 Microsoft azure PaaS 10% 19% 43% 18% Google IaaS 15 38 67 39 Microsoft azure PaaS 17% 22%IBM 8 18 39% 88 9% 41 IBM 4% 13% 47% 24% Rackspace public cloud 7 20 65 62 Microsoft azure IaaS 17%VMware13% vCHS 7 2743% 56 13% 65 Rackspace public cloud 3% 10% 31% 30% SAP 6 21 78 49 Rackspace public cloud 9% 13%CloudSigma 439%9 42 26% 103 HP Cloud 4 17 81 56 VMware vCHS 3% 13% 27% 31% Google IaaS 9% 35%Gigas 34 25 30% 11813% Oracle 3 14 94 43 Oracle 1%7% 45% 20% Oracle 4%4% Arsys52%24 30 22%118 Flexiant 25 33 113 BIT 19% 68% IBM 4% 9% Avalon43%3 35 30% 117 BIT 3 35 117 Host Color 15% 70% VMware vCHS Host Color 4 2626% 26%124 OrionVM 37 112 OrionVM 18% 53% Filter: Terremark 4% Terremark35% 7 51 48% 96 OrionVM Terremark 3% 24% 46% no plans to adopt any 4% 30% 52% Host Color 17% 65% solution BIT 22% 65% • Amazon Web Services stands out as a reference in the Public Cloud market, leading in both “already using” and “aware and likely to consider” which shows their competitiveness in this field, both in Global and Startups sample. • Competition from players such as Google, Rackspace and others is likely to intensify – market expansion is an imperative for profitable growth. PUBLIC CLOUD MARKET AWARENESS #5: INDICATE IF YOU ARE AWARE/USING THE FOLLOWING PUBLIC CLOUD SOLUTIONS EUROPEAN PROVIDERS GLOBAL already using aware and likely to consider aware of and not considering not aware SAP 11% 44% 29% STARTUPS CloudSigma 7% 22% 60% Amazon web services 57 39 51 22 Google app engine 28 32 73 30 Microsoft azure IaaS 21 26 82 30 CloudSigma 13%Microsoft azure30% PaaS 16 2639% 82 31 HP Cloud 12% 45% 31% Google IaaS 15 38 67 39 IBM 8 18 88 41 HP Cloud 13%Rackspace public39% cloud 7 20 35% 65 62 VMware vCHS 7 27 56 65 Gigas 3% 15% 67% SAP 6 21 78 49 SAP 9% CloudSigma52% 4 9 4226% 103 HP Cloud 4 17 81 56 Gigas 34 25 118 Arsys Arsys 4% 22% Oracle 3 1461% 94 43 4% 18% 66% Arsys 24 30 118 Flexiant 25 33 113 Flexiant 35% Avalon 3 52%35 117 BIT 3 35 117 Flexiant 4% 19% 64% Host Color 4 26 124 Avalon 22% OrionVM 65%37 112 Terremark 7 51 96 Avalon 3% 19% 67% Filter: Gigas 13% 74% no plans to adopt any solution • European Public Cloud providers seem to have low recognition from the market as the majority of observations are related to “not aware”. SAP is the first identified and notable provider in Global sample, but only few of the enquired companies are using its Cloud solutions. • Startups seem to prefer CloudSigma solutions, instead of SAP’s, maybe due to prices. PRIVATE CLOUD MARKET AWARENESS #6: INDICATE IF YOU ARE AWARE AND USING THE FOLLOWING PRIVATE CLOUD SOLUTIONS GLOBAL already using aware and likely to consider aware of and not considering not aware

VMware vSphere/vCenter 20% 14% 34% 25% OpenStack 17% 20% 27% 30% STARTUPS OpenNebula 16% 9% 24% 43% Amazon web services 57 39 51 22 Google app engine 28 32 73 30 Microsoft azure IaaS 21 26 82 30 VMware vCloud Director 10% 17% 35% 30% OpenStackMicrosoft azure26% PaaS 16 17%26 30%82 13% 31 Google IaaS 15 38 67 39 17% IBM 17%8 18 30% 88 26% 41 Microsoft system center 7% 13% 39% 33% Rackspace public cloud 7 20 65 62 OpenNebula VMware13% vCHS4% 7 2743% 56 26% 65 SAP 6 21 78 49 CloudStack 6% 15% 34% 39% 4%CloudSigma30% 4 9 4226% 30%103 HP Cloud 4 17 81 56 oVirt 4% Gigas 35%34 25 43%118 4% 10% 31% 47% Oracle 3 14 94 43 4% Arsys22% 24 30 39% 118 22% Flexiant 25 33 113 oVirt 3% 8% 22% 57% openQRM Avalon26% 3 35 52% 117 BIT 3 35 117 Host Color35% 4 26 48%124 6% 21% 61% OrionVM 37 112 Microsoft system center Terremark26% 7 5139% 26%96 OnApp 3% 28% 57% 22% 61% openQRM 7% 24% 56% Eucalyptus 35% 43%

• The awareness of Public Cloud Providers is higher than of the ones offering Private Cloud. • OpenStack and VMware collect the higher results for notability followed by Microsoft and CloudStack, both in Global and Startups samples. • OpenNebula stands out as the European provider with higher market awareness. CLOUD PERCEIVED BENEFITS #7: RATE THE TOP MOTIVATORS TO MOVE TO THE CLOUD GLOBAL 1 - not at all important 2 - not important 3 - important 4 - very important

Industry-specific reasons 1 4 5 7 Greater 66% 26% 3%1% Limited in-house technical… 2 3 8 4 Higher availability 61% 33% 2%0% STARTUPS Cost savings 4 7 6 Geographical reach 1 4 4 10 Faster access to infrastructure 60% 30% 4%1% Faster time-to-market Greater scalability 68% 1 323% 4 5% 10 Higher availability 6 13 Faster time-to-market Higher availability 64% 32% 50% 27% 12% 3% Faster access to infrastructure 1 3 4 11 Faster access to infrastructure 55% 23% 14% 5% Cost savings 48% 34% 11%1% Greater scalability 1 5 13 Faster time-to-market 50% 23% 14% 5% Geographical reach 36% 33% 20% 1% Geographical reach 45% 23% 18% Industry-specific reasons 36% 27% 18% 5% Limited in-house technical resources 35% 33% 18% 6% Cost savings 32% 36% 18% Industry-specific reasons 22% 25% 25% 9% Limited in-house technical resources 23% 41% 14% 9%

• Scalability and availability seem to be the top two motivators for companies move to the Cloud. • The availability of technical resources is not a key differentiator in the Cloud services • Through we are still in the middle of an economic crisis, cost savings don’t stand out as a driver for cloud adoption. This should be a bigger concern for startups than for larger and more mature companies. BARRIERS TO CLOUD ADOPTION #8: RATE THE TOP BARRIERS TO MOVE TO THE CLOUD GLOBAL 1 - not at all important 2 - not important 3 - important 4 - very important

Security concerns 43% 34% 14% 5% Industry-specific reasons 1 4 5 7 Limited in-house technical… 2 3 8 4 Fear of vendor lock-in 29% 41% 18% 5% STARTUPS Cost savings 4 7 6 Integration 27% 39% 21% 3% Geographical reach 1 4 4 10 SLA performance is not acceptable 21% 42% 21% 6% Security concerns 41%Faster time-to-market41% 1 3 9%4 9% 10 Lack of information about cloud 18% Higher23% availability 36% 6 9% 13 Lack of capability to evaluate cloud… 17% 31% 33% 9% SLA performance is not acceptable 14%Faster access to infrastructure55% 1 318% 4 9% 11 Lack of budget 16% 39% 29% 8% Lack of support from IT 14% 27%Greater scalability32% 1 5 18% 13 Lack of in-house capability to evaluate… 14% 32% 32% 18% Lack of support from IT 15% 32% 33% 10% Integration (to private cloud, to internal… 14% 45% 23% 9% Lack of management buy-in 13% 40% 33% 8% Fear of vendor lock-in 14% 41% 23% 14% Lack of certified providers 11% 28% 32% 17% Lack of management buy-in 9% 41% 36% 9% Lack of certified providers 9% 32% 41% 5% Lack of information about cloud 11% 35% 32% 11% Lack of budget 5% 32% 55% 5%

• Security stands as the top barrier for cloud adoption, both in Global and Startups samples, which reflects that that businesses are reluctant to trust in Cloud security capabilities. • Lack of information appears to be a relevant barrier for Startups, which reflects that there should be targeted information for Startups that should be widespread. DATA LOCATION #9: DO YOU KNOW WHERE YOUR DATA IS LOCATED?

#10: HOW IMPORTANT IS KEEPING DATA IN YOUR COUNTRY? 1 - not at all important 2 - not important 3 - important 4 - Very important GLOBAL STARTUPS # 9 # 10 # 9 # 10 No No 8,5% 13,6% 9,1% 21,0% 13,6% 35,5% 21,5% 27,3% Yes Yes 50,0% 79,0% 34,5% 86,4%

• The great majority of the enquired companies is aware of their data location • In global terms, the majority of the companies think that keeping data in their countries is important or very important • 65% of the startups say that it is either not important or not at all important, probably because they are price takers, and not influential enough to negotiate prices in favor to location. INDEX

CLOUDCATALYST PROJECT: BACKGROUND, OBJECTIVES, OUTPUTS AND TARGETS

CLOUD COMPUTING TRENDS: SURVEY DEMOGRAPHICS, KEY FINDINGS

CRITICAL SUCCESS FACTORS: OVERCOME TECHNICAL CHALLENGES FOR CLOUD EXPANSION CRITICAL SUCCESS FACTORS HIGH-LEVEL SCOPE PURPOSE AUDIENCE Conduct a review of the main technical challenges in EU funded cloud computing projects and identify critical success factors, underlining:

1. Key technical challenges and how to overcome them 2. Extent to which existing European research meets envisioned technical challenges 3. Key insights on usage, adoption, and migration to cloud computing CRITICAL SUCCESS FACTORS: KEY CHALLENGES IN CLOUD COMPUTING

Interoperability and portability Power-efficient applications across cloud providers Seamless migration of workloads Networking across cloud sites across cloud providers

Trusted computing Dynamic SLA negotiation

Dynamic configuration and Proactive autonomic computing automated provisioning Elastic management of complex Data integrity, localization and multi-vm services confidentiality

SOURCE: The future of Cloud Computing, January 2010 Advances in Clouds, May 2012 A roadmap for advanced Cloud Technologies under H2020, December 2012 Computing, Key Challenges in Cloud Computing: Enabling the Future Internet of Services, July-August 2013 STUDY METHODOLOGY

Tools: Survey through email and online questionnaires Target: Key experts participating in EU funded projects

Key survey statistics:

• All respondents = 29 FP7 projects respondents = 25 Other respondents (CIP, AAL and Infrastructures) = 4 • FP7 projects response rate = 36% From a universe of 69 coordinators (Call 5, 8 and 10), 25 responded to the questionnaire

The survey questions:

• “Rank the technical challenges for Cloud expansion according to the priorities addressed in your project” • “In case you think your project addresses other important challenges that are not on the list, please describe them” • “Define critical success factors to overcome the top 3 technical challenges that you have identified” DYNAMIC CONFIGURATION AND AUTOMATED PROVISIONING

KEY RECOMMENDATIONS

Service oriented capabilities  Enable the dynamic provisioning of multi-tier services on top of cloud infrastructures  Service oriented capabilities needed to manage services (i.e. groups of interconnected compute, network, and storage elements) as basic entities, and to provide elasticity and quality of service (QoS) for a broad range of multi-tier applications deployed in the cloud

CRITICAL SUCCESS FACTORS

Proper analysis/prediction of adaptation actions  Use of model-driven and software patterns, intelligent software, context-aware systems Mapping the services dynamically on the resources  Applications and services running in a cloud environment must provide interface endpoints for provisioning, configuration, and monitoring  Applications must be classified by compliance levels Reduce the degree of human intervention in provisioning  Monitoring must be done continuously and SLA levels should be described so that automatic reactions can be deployed Dynamic configuration and automated provisioning of analytics  Enable this through simple interfaces that do not require the specification of low-level details about a cloud deployment INTEROPERABILITY AND PORTABILITY ACROSS CLOUD PROVIDERS

KEY RECOMMENDATIONS

Competitive infrastructure cloud market  Ability for users to compare cloud offerings  Possibility to select the offer that best suits their needs  Easily change providers if they are unsatisfied with the service  Ability to find a more competitive offer

CRITICAL SUCCESS FACTORS

Avoid Lock-in  Reducing lock-in to proprietary solutions through means of increased portability and interoperability Assure standardization  Standardized formats for transferred data, billing and identity management Business strategy and support tools  Creation of practical guidelines and best practices’ catalog  Identification of key elements in applications that ease or prevent their migration to the cloud Open clouds and federation  Creating bridges between global communities  Cloud federation, sustainable collaboration schemes  Ability to build full-fledged multi-cloud applications TRUSTED COMPUTING

KEY RECOMMENDATIONS

Security parameters management  Cloud interoperation opens new challenges in the management of security parameters between cloud providers  Authentication across multiple clouds (each cloud can use a particular authentication mechanism and technology)

CRITICAL SUCCESS FACTORS

Fulfilment of SLAs and implementation of certification schemes  Check the existing security measurements and SLA metrics  Fair and safe contract terms Check transparency and interoperability among providers  Management of security parameters between cloud providers  Step-by-step analysis of the full cloud service supply chain  Proven data provenance and enforcement of related policies Verifiable devices  Overcome security / privacy challenges from IoT devices through cloud based processing DATA INTEGRITY, LOCALISATION AND CONFIDENTIALITY

KEY RECOMMENDATIONS

Privacy, confidentiality and trust  To avoid privacy and confidentiality risks, cloud providers should be adapted to different legislations, and some standards of good practices, policies and procedures should be defined  Security vulnerabilities need to be better understood and handled to overcome the lack of trust in utilizing clouds and the fears of privacy invasions and confidentiality breaches

CRITICAL SUCCESS FACTORS

Overcome barriers related to different legislations  Assure consistency in data schemas migration (by using data models), fulfillment of SLAs, and implementation of privacy warranty mechanisms Implement an open cloud philosophy  Adoption of open standards and open format in cloud-related solutions  Cloud standardization needs to happen the OpenStand way Foster awareness raising actions  Create a new culture around the importance of data security and new competences to empower the end-users Promote certification mechanisms  Implement certification schemes for applications and services offered in the cloud NETWORKING ACROSS CLOUD SITES

KEY RECOMMENDATIONS

Federated cloud networking  Unify and consolidate data-centers in a virtual way, so that different distributed data-centers can be exposed as a single cloud-like virtual data- center, and networks of different data centers can be interconnected in a virtual overlay  Automatic provision of inter-cloud networking to support the automated deployment of applications and services across different clouds and data- centers

CRITICAL SUCCESS FACTORS

Discover the shortest paths in an overlay network with the minimum monitoring effort  Networking across cloud sites should be based on a self-healing and self-optimizing overlay network between cloud sites

Overcome limitations on networking, such as data import/export bottlenecks or service disruptions  Identify at real time components of a composite application which have failed and switch to an alternative component without overall application disruption SEAMLESS MIGRATION OF WORKLOADS ACROSS CLOUD PROVIDERS

KEY RECOMMENDATIONS

Migrate applications  Find how to migrate running applications from one cloud service provider to another with minimum downtime and service disruption

CRITICAL SUCCESS FACTORS

Migration  Number of processes needed to apply for a migration  Ability to migrate applications and associated data from cloud to cloud Cost control  Ability to assess costs and risks in cloud usage  Define optimal configuration to cloud applications cost and performance SLA control  Ability to control the SLA with cloud providers  Perform proper recovery actions when it is violated PROACTIVE AUTONOMIC COMPUTING

KEY RECOMMENDATIONS

New innovative solutions  Proactive autonomic management of cloud resources  These new techniques should predict anomalies, like time to failure of cloud applications or DDoS attacks, before they occur

CRITICAL SUCCESS FACTORS

Accurate prediction model  Prediction of the time to crash of applications or the violation of response times  Ability to proactively reconfigure the system before anomalies occur  Highly scalable monitoring system focusing the monitoring effort on where it is really needed Understand execution needs  Application monitoring to understand execution needs and make autonomic migration or re-deployment decisions Need of new useful programming models  Parts of applications can be managed (moved, relocated, etc.) without the need to check-point a full machine for migration, or to restart the application in a new configuration  Programming model should be compatible with existing languages, and not require major changes to existing applications ELASTIC MANAGEMENT OF COMPLEX MULTI-VM SERVICES

KEY RECOMMENDATIONS

New tools and support  Tools offered by cloud providers for service elasticity management and service auto-scaling would improve the level of service provisioning  Improve the support for complex multi-VM service auto-scaling in cloud providers

CRITICAL SUCCESS FACTORS

Adapt service capacity to demand in order to avoid service performance degradation or service over-sizing  Ensure design-time support for application-level elasticity, dynamic configuration, and resource management

Access to large scale experimental platforms  Provide deeper understanding in how to improve the support for complex multi-VM service auto-scaling in cloud providers

Close collaboration with industrial leaders  Cloud providers offer tools for service elasticity management and service auto-scaling POWER-EFFICIENT APPLICATIONS

KEY RECOMMENDATIONS

Cloud providers must evaluate and assess different strategies to:  Define and use unified metrics that enable cloud providers to measure the energy efficiency of their data centers, to compare the results against other cloud infrastructures, and to decide what improvements need to be made.

CRITICAL SUCCESS FACTORS

Definition of energy-efficiency cloud metrics and  Assess energy efficiency issues (computing, cooling, and power supply equipment)  Measure energy efficiency of data centers in terms of novel more fine-grained PUE-, CUE- and WUE-related KPIs Mechanisms for advanced resource provisioning  Implement integrated data centre management platforms for real-time decisions  Power efficient placement of virtual machines  Development of energy consumption modeling and prediction in large-scale data centers Implement an integrated and smart city management approach  Paradigms for autonomic integrated management and optimization of energy usage and cost  Monitoring and optimisation of IT processes, power and cooling, and utilization of renewable sources and waste streams DYNAMIC SLA NEGOTIATION

KEY RECOMMENDATIONS

Standard set of SLAs  Define a standard set of SLAs that all the cloud providers can agree and commit to fulfill  Most current IaaS platforms lack advanced SLA mechanisms based on service-oriented QoS metrics

CRITICAL SUCCESS FACTORS

Develop advanced SLA mechanisms  Implement service-oriented quality of service (QoS) metrics, such as service performance, service availability, service response time, or service cost, among others.

Negotiation of similar SLAs with different cloud providers  Definition of a standard set of SLA levels that all the cloud providers can agree and commit to fulfill  Techniques to control service delivery  Protocols for SLA negotiation FINAL REMARKS

The TOP 10 TECHNICAL CHALLENGES FOR CLOUD ADOPTION WERE IDENTIFIED by the consortium based on European Commission reports 1

EXPERTS PARTICIPATING IN EU FUNDED PROJECTS WERE ASKED TO RANK THESE CHALLENGES and identify others: - Most important: Dynamic configuration & automated provisioning + Interoperability and portability 2

For each of the 10 technical challenges: -EXPERTS IDENTIFIED CRITICAL SUCCESS FACTORS -The CONSORTIUM OUTLINED KEY RECOMMENDATIONS for companies addressing these challenges 3

The key challenges, success factors and key recommendations identified will FACILITATE THE DETECTION OF NEW MARKET OPPORTUNITIES FOR EU BUSINESSES 4

This study aims to encourage actions leading towards EU cloud research, COMPLEMENTING THE WORK DONE BY THE EXPERTS’ GROUP DEVELOPING THE CLOUD COMPUTING VISION FOR EUROPE and future research and policy directions 5 More information: In case you want to receive the full reports about cloud computing trends and critical success factors, please send us an email ([email protected])