Software Business Opportunities with Cloud Computing Model
By Pirasan PunyaguptaPresident
Thai Software Export Promotion Association (TSEP)At BOI Fair
9 January 2012
Agenda
• About Cloud Computing• Case studies• Impact to Thai ICT industry• Opportunity or Challenges• How should we prepare
About Cloud Computing
CharacteristicsOn demand, self service
Multiple network access channels & devices
Pooled resources
Flexibility for buyers
Pay per use
DeliverySoftware (application ) as a Service (SaaS)Platform as a Service (Paas)
Infrastructure as a Service (IaaS)
DeploymentPrivate Cloud
Public Cloud
Hybrid Cloud
Community Cloud
Cloud Computing Characteristics
Source: Wikipedia
Cloud Deployment
Software applicationsand device interface
Process, solution design,Development tools, Testing tools
CPU, Storage, O/S, BandwidthDB, middleware, integration
Source: Wikipedia
Cloud Computing Example
Source: The Bick Group
Software applicationsand device interface
Process, solution design,Development tools, Testing tools
CPU, Storage, O/S, BandwidthDB, middleware, integration
Cloud Deployment
Source: Wikipedia
About Cloud Computing
• Motivation for solution providers
– Reduce implementation time/cost
– Reduce on-premise support costs / personnel
– Easier version control, upgrade, maintenance
– Application available on multiple devices / channels
– Provide service beyond borders
Cloud Computing Delivery Models
ICT support cost model
Traditional On-PremiseCosts for ICT Support
Cloud ComputingCosts for ICT Support
Source: The Bick Group
Where does it fit in the enterprise
– Straight forward business process
– Independent, low security data
– Require mobility / instant communication
– Cross border activities
Enterprise Architecture
Cloud ComputingArchitecture
For SME / Startups
– Use service / applications with low start up costs
– No need to own hardware
– Try & buy with many payment options
– Self service (for payment, setup, etc.)
– Anyone can provide / purchase services on Cloud
– Enable to do business virtually anywhere
SAMPLE CLOUD COMPUTING INNITIATIVES FOR ENTERPRISE/SME
Case studies 1
• Taiwan SME administration• Vision– Based on IT hardware manufacturing leadership, transform
industry to Cloud Computing solution provider– Develop Government (G-Cloud), enterprise, consumer
clouds for innovative service solutions
• Strategy– Supply side: Develop integrated cloud computing value
chain for manufacturing, retail and government services– Demand side: Drive government usage & SME adoption
Case studies 1
• Solution Approach– Model (A) Private Cloud Appliance for Enterprise
• Servers, O/S, database, storage, middleware, portals• Hosted in data center or Enterprise environment• Provide variety “Catalog” of software applications
– Model (B) Hosted Private Cloud• For small business / startups• Hosted in data center• Package provides solutions for CRM, ERP, accounting, call center,
etc.
IMPACT ON THAI ICT INDUSTY
Impact on Thai ICT Industry
• For ICT Enterprise users
– Enterprise will need more cloud applications to stay
competitive, reduce costs & enhance customer satisfaction
– Movement of non-sensitive data onto the clouds
– More mobility solution with smart phone / tablets
– More cloud solution will come in the form of small
applications on mobile phones and tablets
Impact on Thai ICT Industry
• For Software SME & ICT solution providers
– Need to offer the right mix of enterprise & cloud solutions
– Quick to respond to market demands
– Provide solution for mobile platforms
– Workforce shift to platforms on mobile & Internet
– Prepare for AEC2015 and overseas competitors
What fits the Cloud ModelFit for Cloud Model Not fit for Cloud ModelProcess, applications and data are mostly independent
Process, applications and data are coupled or complex
Points of application & data integration is well defined
Points of application & data integration is not well defined
Lower security level is acceptable Require high level of security or privacy
Internet / Web / mobile is the desired channels & platform
Application requires special interface
On site support cost is an issue On site support required
New applications Legacy applications
BRIEFLY ON AEC 2015
AEC is about Economic Integration
Source: SCB Economic Intelligent Center “Insight“ Feb 2011
Consensus among Economists
• Quick changes
– Corporate regulations & ceiling on ownership
– Tax regulations
– More movement of investment funds
Ownership up to 70% share in Service Business
Source: SCB Economic Intelligent Center “Insight“ Feb 2011
Current Foreign % Ownership in Service Business in Thailand
Consensus among Economists
• Slow changes
– Cooperation between domestic & multi-national
ICT SMEs, universities, technical research, etc.
– Movement of skilled labors
– Wages for ICT professionals
Wages for Thai workers has been “FLAT”
Source: SCB Economic Intelligent Center “Insight“ Feb 2011
Outsourcing Ranking
Source: www.sourcingline.com
OPPORTUNITIES / THREATS
Opportunity or Threats
• Market is larger, but more competitors
• More threats from overseas, but opportunity to
expand overseas as well
• For Thailand, very difficult to recruit & retain ICT
professional & staff
• Very few dominant, capable Thai ICT companies
• Biggest threat is creative “Brain Drain”
Opportunities
• Ability to provide IT solution through Cloud Computing Service model without borders with minimal support costs
Opportunities for ICT Users
• Users of Cloud Applications can improve productivity,
reduce IT costs and reach more customers :
– Hybrid / public cloud provide tools for sales force, staff
– Public cloud for customers, providing self service such as
check order and payment status
– Available for Web / mobile phones access
– Centralized control
Case studies 2
• FedEx Private Cloud - IaaS
– Runs in 200 order fulfillment centers worldwide
– Database to manage inventory, shipment status, etc.
• FedEx Private Cloud - PaaS
– Manages service plans
– Forecasts shipment at all locations
– Optimizes courier routing
Case studies 2
• FedEx Hybrid Cloud - SaaS
– Sales force automation & sales tools
– Mobile solution to provide latest information & status
• FedEx Cloud Solutions for SME
– Provide documents necessary for shipment
– Tracking, shipment, invoice, payment
– Online payment solutions
Opportunities for ICT Providers
• Small software firms have opportunities to match
larger software firms utilizing Cloud Model:
– Innovative products good enough for many SMEs
– Quick development and responsive to demand
– Reach global enterprise through broadband Internet / 3G
– Reach end user consumers worldwide via mobile devices
– Minimal set up and support costs & self service
Case 3: CT Asia Call Center on Cloud
Transform Traditional Call Center / CRM
To virtual Call Center Where operators can provide service with Internet & mobile phone
Now anyone can have call center to serve their customers
WHAT TO PREPARE
Improve ICT Competency– Understand Cloud model and its impact
– Improve skills, expertise for ICT personnel
– Training , coaching, certification
– Improve development standard & process
– Language training
– Equip small, creative, agile project team with tools and
resource necessary to bring product to market
– Get yourself known with modern marketing methods
Cooperation & Networking
– Among Thai SME & ASEAN SMEs
– Be part of regional / global partnerships
– Local partner still important
– Understand target country rules & regulations
– Learning from business success (or failure) cases, be
careful about the hype
Make Thailand a better place to live & work
– Friendly business & political environment
– Laws and regulations that make sense
– Improve IT & telecom infrastructure
– Decent wages & low operating costs for SME
– Attract & maintain skill labor with incentives
– Better emergency & crisis management
Thank You
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