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Press Release -- May 31st, 2012
Source: Alcatel-Lucent
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Two-thirds of IT decision makers see guaranteed cloud performance as critical for essential operations according to research from Alcatel-Lucent

Concerns about outages top the list of inhibitors to cloud adoption; communications service providers are seen as being the most credible and reliable providers of cloud services

Paris, May 31, 2012 – Primary research conducted by Alcatel-Lucent(Euronext Paris and NYSE: ALU) reveals that performance concerns (stability, response time, end-to-end availability) are the biggest inhibitors to adoption of cloud services by enterprises. Information technology (IT) decision makers identified performance as the most important aspect of cloud solutions needing improvement. Other top concerns cited are security, cost and ease of use. At stake is the global cloud services market forecasted to grow to $177 billion by 2015.[1]

The recent market study was conducted with 3,886 IT decision makers at medium- and large-sized multinational technology firms in seven countries, including the U.S., U.K., France, India, South Korea, Taiwan and Hong Kong.

While the study reveals rapid adoption of cloud services by major enterprises across a variety of market sectors, it also points to shortcomings in today’s public cloud services, led by risks related to availability and quality of service.

  • Two thirds of IT decision makers don’t use the cloud for their essential business applications for fear of service outages
  • 46 percent of those surveyed find current cloud service system delays unacceptable
  • One in four complained that there’s no simple resolution path when service level agreements (SLAs) are not met
  • Two out of five IT decision makers reported either frequent or lengthy service outages

The reluctance to embrace the cloud was highest in finance, insurance, healthcare and government sectors – these are industries where performance and security are essential requirements for applications and services.

Nonetheless, 44 percent of the IT departments surveyed are optimistic that the weaknesses in today’s cloud services will be resolved and expect to expand the use of cloud services over the next three years.

Dor Skuler, Alcatel-Lucent Vice President of Cloud Solutions, said: “Not all clouds are created equal. A typical large enterprise supports between 250 and 750 IT applications, so before it decides to move them to the cloud it must be confident of a smooth migration. It needs to ensure that there are substantial efficiencies to be gained, risks to its operations are minimal, it is easy to use and that that cloud performance is guaranteed with service level agreements. Communications service providers can meet those expectations. By orchestrating and optimizing the assets within their networks and the network itself, they can meet the stringent cloud service delivery demands of consumers and businesses.”

Trust was cited as one of the most important purchasing factors for IT decision makers in all market sectors. The study found that the dominant network service providers generally fared better than Amazon and Google as a trusted source of cloud services.

Enterprises currently rely upon communications service providers for business communication services which are routinely backed up by guaranteed SLAs. Those established relationships and history of demonstrated performance put communications service providers in a prime position to improve the quality and reliability of enterprise cloud services.

The study revealed that IT decision makers in all regions are willing to pay for a next-generation, high-performance cloud solution. In fact, a carrier-grade cloud service is four times more attractive to IT decision makers and has the potential to generate ten times more revenue than existing cloud services. But to fully capitalize on this opportunity, service providers must offer an easy to use cloud solution that can support complex network configurations, VPN and other services, as well as guarantee bandwidth and speed of delivery.

For a closer look at the primary research findings, go to: http://www2.alcatel-lucent.com/knowledge-center/cloud/ITDM-study.php

Alcatel-Lucent: Delivering a better class of cloud

Alcatel-Lucent understands the network’s role in creating a better class of cloud, and its solutions are enabling the carrier cloudto allow communication service providers to bring the benefits of the cloud to their own networks and business operations as well as provide next generation cloud services that meet the stringent performance demands of enterprises and consumers. On November 17, 2011 the company launched CloudBand: a solution for carrier cloud market that combines the computing power and flexibility of the cloud with the high performance, reliability and security of communications networks. By enabling the network’s dynamic orchestration and provisioning of carrier cloud services, CloudBand allows service providers to deliver applications with increased speed, greater bandwidth control and guaranteed Quality of Service.

On January 18th Alcatel-Lucent also announced the integration of advanced  ‘distributed denial-of-service’ (DDoS) protection in its service routing platform to enhance the security of the carrier cloud infrastructure and offer innovative value added services to enterprise customers.

[1]Gartner, Inc., Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, 2010-2015 Update, Ben Pring, et al, June 29, 2011.

About Alcatel-Lucent (Euronext Paris and NYSE: ALU)

The long-trusted partner of service providers, enterprises and governments around the world, Alcatel-Lucent is a leading innovator in the field of networking and communications technology, products and services. The company is home to Bell Labs, one of the world's foremost research centers, responsible for breakthroughs that have shaped the networking and communications industry. Alcatel-Lucent was named one of MIT Technology Review's 2012 Top 50 list of the "World's Most Innovative Companies" for breakthroughs such as lightRadio™, which cuts power consumption and operating costs on wireless networks while delivering lightning fast Internet access. Through such innovations, Alcatel-Lucent is making communications more sustainable, more affordable and more accessible as we pursue our mission - Realizing the Potential of a Connected World.

With operations in more than 130 countries and one of the most experienced global services organizations in the industry, Alcatel-Lucent is a local partner with global reach. The Company achieved revenues of Euro 15.3 billion in 2011 and is incorporated in France and headquartered in Paris.

For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog: http://www.alcatel-lucent.com/blog and follow the Company on Twitter: external linkhttp://twitter.com/Alcatel_Lucent.

Contact the Alcatel-Lucent Press Office:press@alcatel-lucent.com

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