The Financial And Productivity Benefits V1.1
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- CLOUD WARE -
THE FINANCIAL AND PRODUCTIVITY BENEFITS OF MOVING RESOURCES FROM PRIVATELY OWNED COMPUTERS TO THE CLOUD
Ajay Rathi, DAMAC Holding Co. LLC
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Agenda
• Evolution • What is Cloud Computing ?• Why Cloud Computing ?• In house Vs Cloud• Future of Cloud !• Major providers• Market Predictions
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Typical Business Organization
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Evolution towards cloud
1980-1990
1990-2000
2000-2010
2010-…..
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Inhouse Outsourced Cloud
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?
What is cloud computing?
• over 41 % of senior IT professionals are not very clear • 3/4th of finance professionals are confused
Verisonone Study
Is it old wine in new bottle???Is it a Fad ???
Will it be the driving force for the new economic (r)evolution ???
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So Cloud Computing is …..
CRMCall
CenterEmail
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Infrastructure as Service
Platform as Service
Software as Service
Ready to use
Scalabilit
y
Risk
Reliability
Cloud is !!!!!!
Cost
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Why Cloud Computing ?
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IT requirements to meet Unlimited Business Expectations
• High Availability• Fault Tolerance• State of art• Sophisticated Technology• High Security• Latest Infrastructure• Highly Skilled Manpower• Multi Platform
Limited Budget
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Challenges of In-House implementation
• High capex• Low facility utilization ( 50 to 55%)• High depreciation (40-45%)• Power and Cooling cost, • Real estate cost• 30% hardware obsolesce• Multi platform management • Application licensing• Backup and restore• Highly skilled manpower• Patching of OS, Antivirus patching, firewall upgrades
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Cloud Brings
• Economics - Pay only for the required service• Better Availability• Scalability and Elasticity - • Ubiquitous Access • Self Provisioning• Metering• Zero IT Maintenance.• Multi platform, multi application and multi vendor support
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Cloud computing turns Capex to Opex
18+% Annual Maintenance Fee
Upfront License Fees
Customer Bears All IT Costs & Risk
18 – 24 Month Release Cycles
Customer Bears All Upgrade Costs & Risk
“Ship and Forget” Vendor Accountable
Vendor Handles
Monthly Innovation
Vendor’s Problem
Included
Pay for what you use
In house Infrastructure Cloud Infrastructure
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Future of cloud in 2010 and beyond…
• Cloud developer communities will grow faster than open-source• Cloud providers tackle lock-in• Cloud integrators will get an enterprise to show off..• Cloud computing consolidates• The real innovation will be in the business of cloud computing, not
the technology. • Cloud infrastructure commoditize, and prices fall• Home sourcing becomes mainstream• A new wave of entrepreneurship emerges • The days of multi-million dollar enterprise software projects
dwindle.• Cloud computing penetrates all areas of business management
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• Business Productivity Online Suite
• Google APPs Market Place
• Amazon Elastic Compute Cloud
• The leader in customer relationship management (CRM) & cloud computing
• Deploy oracle application and back up DB in cloud
Major Players on cloud and increasing….
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Amazon EC2, Rackspace, Vmware V cloud
Process
Application
Platform
Infrastructure
SAP ERP, Oracle CRM, IBM Lotus Notes
Salesforce.com, Workday,Net suite ,MS BPOS
Force.com, Windows Azure,Google App Engine
BPO offerings from Accenture, IBM
PayPal, ADP Employ ease, Amex - Concur
Microsoft Windows/.NET, Linux/Solaris/J2EE
IBM / HP Blade Center, Sun Fire X4100
Enterprise IT Stack Comparison
Privately owned On cloud
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Who should move to cloud
• The processes, applications, and data are largely independent.
• The points of integration are well defined.
• A lower level of security will work just fine.
• The core internal enterprise architecture is healthy.
• The Web is the desired platform.
• Cost is an issue.
• The applications are new.
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GARTNER PREDICTION• By 2012, 20 percent of businesses will own no IT assets • By 2012, India-centric IT services companies will represent 20
percent of the leading cloud aggregators in the market (through cloud service offerings)
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Weaknesses are fading ………….
Thank You
Questions Please
Ajay Rathi