Cloud Computing: What is in Store?

Cloud Computing: What is in Store ?

Seoul22nd February, 2011

Agenda

1

2

A Closer Look at Current Adoption Trends

Initiatives & Case Study

3 Outlook

2

Characteristics Service Types Deployment Models

Software as a Service

software delivered through the public or private network

A pool of compute, memory and i/o resources, applications or operating environments with seemingly infinite

scalability, delivered as a service over a network, be it private or public.

Enterprise

Enterprise

Public

Cloud

Private

PUBLIC

PRIVATE

On Demand, Self-

Service

Pay As You Use,

Metered

Consumption

Our definition of Cloud Computing?

3

Platform as a Service

Development platform as a service

Infrastructure as a Service

Compute, storage as a service

EnterprisePrivate

Cloud

EnterprisePrivate

Cloud

HYBRID

Public

Cloud

COMMUNITY

Enterprise2

Enterprise3

Enterprise1

Community

Cloud

Consumption

Rapid Elasticity,

Scale Up/Down

Shared Pools,

Illusion of Infinite

Resources

Broad Network

Access using

Standard Internet

Protocols

Adoption level and type of cloud

10%

� Amongst cloud users, 91% use SaaS, 69% IaaS, 47% PaaS. � 1/3rd of cloud users currently use all three. � Points to a decreased time to adoption amongst existing users

Almost one-fourth of enterprises in APAC have started using Cloud Computing

4

77%

6%

7%

23%

Not adopted yet Public cloud Private cloud Hybrid cloud

Source: Frost & Sullivan

N = 330

Applications / Infrastructure that have been put in the Cloud

CRM and HRM applications witness the highest adoption

8%

9%

9%

9%

17%

Storage

Analytics & Reporting

Custom Application

Server computing

ERP + CRM + HRM

5


1%

6%

7%

7%

7%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Others

Office productivity

Collaboration tools

Desktop

Security

N = 330

Vertical-wise Adoption levels

IT & Telecom and Professional Services emerge as leading adopters

82%

79%

84%

4%

2%

6%

6%

12%

2%

8%

7%

8%

Manufacturing

Government

Financial Services

6


76%

68%

63%

2%

16%

13%

6%

5%

10%

16%

11%

14%

Others

Professional Services

IT & Telecom

Non-adopters Public cloud Private cloud Hybrid cloud

N = 55 / Vertical

Cloud Computing Market Size, 2010

Increasing adoption has created a US$1.1 billion Cloud Computing market in APAC ex Japan

9% 1%

100% = US$1.1 billion

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90%

SaaS IaaS PaaS

With a 90% share of the market, SaaS is the dominant segment of the With a 90% share of the market, SaaS is the dominant segment of the Cloud market in the Asia Pacific region.Cloud market in the Asia Pacific region.

APAC SaaS Market Forecast, 2010-2014

APAC SaaS market expected to grow at 39% for the 2010-2014 period

490

675

857

2,000

2,500

3,000

3,500

4,000

1,438

3,813

2,022

2,826

8


The Business Applications as a Service (BAaaS) segment witnessing significant The Business Applications as a Service (BAaaS) segment witnessing significant traction, expected to remain a focus area for major market participants.traction, expected to remain a focus area for major market participants.

7701,081

1,532

2,151

2,956

258

357

0

500

1,000

1,500

2010 2011 2012 2013 2014

BAaaS Security & UC

1,028

1,438

Country-wise Breakdown of the BAaaS Market, 2010

Australia and China account for half of the APAC BAaaS market

Australia35%

Hong Kong5%

New Zealand5%

Taiwan3%

Malaysia2%

Philippines2% Thailand

2%

Indonesia2%

Vietnam0%

100% = US$770 million

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China16%

India11%

South Korea10%

Singapore7%

5%

Agenda

1

2


Initiatives and Case Study

3 Outlook

10

Reduce public sector ICT spending and improve

efficiency

Three-pronged Approach – Create Internal Demand, Generate Supply and Promote nation-wide adoption

Governments are looking to drive greater adoption of Cloud Services

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ThreeThree--pronged pronged

ApproachApproach

Promote entry of local and foreign

players

Drive greater adoption by

local businesses


Many governments in APAC are promoting Cloud

Japan to Tap Government Potential through the Kasumigaseki Cloud

• The Kasumigaseki Cloud aims to establish a shared pool of resources to meet the increasing requirements of government’s IT systems and bring in greater efficiencies.

• A new National Digital Archive will also be developed to digitize government and other popular information, and introduce standardized formats.

12

Korean Government Investing in Cloud to Drive ICT Industry Competitiveness

• Communication Commission has allocated about US$500 million for the development of Korean Cloud Computing facilities.

• KCC, Ministry of Knowledge Economy and the Ministry of Public Administration and Security collaborating to create Cloud-based IT infrastructure.

• The initiative is expected to boost Cloud Computing services in the Korean market to promote local players to enter the market.

• This is aimed to fulfill towards garnering a 10% of the global Cloud Computing market as well as a reduction of 50% in public sector’s ICT spending by 2014.

UniSIM expects a to lower storage costs by a factor of 20 by moving into the Cloud

• UniSim decided to move its Archival data into the Cloud.

• The decision is estimated to reduce storage costs to US$7,200, 20 times lower than US$146,400 for managing it on its own.

Cost Components

Self Procurement (US$)

Cloud-based(US$)

Remarks

Hardware 12,000 - Purchase of two servers +

operating system + maintenance

Software 70,000 - Purchase of software

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Software 70,000 - Purchase of software

Storage 14,000 - Storage & maintenance fee

Co-location &

Power

7,200 - For two servers

Technical

support

43,200 - Manpower

IaaS

(Storage)

- 7,200 Storage + Shared bandwidth

Total 146,400 7,200 Savings of $139,200

Source: National Grid Office + UniSIM + PTC System

Agenda

1

2


Government Initiatives to Promote Cloud Computing

3 Outlook

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#1: Huge pressure expected on Existing Channel Structure

The shift from Product to Services has exerted tremendous pressure on

existing GTM strategies and channel models creating more conflict

Vendor

Key Accounts

Distributor

Reseller Reseller

Other Accounts

Distributor

Reseller

Direct

Web

Vendor

Master Distributor

Reseller Reseller

Distributor

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I. Aggressive Channel Structure

III. 2-Tier Structure

II. 3-Tier Structure

IV. 1-Tier Structure

Other Accounts

Customer

Vendor

Reseller Reseller

Customer

DistributorVendor

Reseller

Customer

#2: Cloud will significantly disrupt the current ICT landscape (1)

Vendors• Financial and competitive pressure to grow services business• Existing business models and GTM un-geared for “services” play

• Lucrative maintenance revenues will dry up in the future

Outsourcers/GSI• Vertical understanding and “Customization” are clear differentiation• As basic IT services turn commoditized, SI revenues will dry up

• Need to give up lucrative existing contracts to retain customers

Resellers• As IT becomes commoditized and simple, SI revenues will start drying up

• Procurement rationalization toward fewer providers

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Resellers • Procurement rationalization toward fewer providers

• Massive consolidation ahead

Distributors• Pressure to move up the value chain as product margins reduce• Services play critical for survival

• Conflict ahead with Vendors

Service Providers

• Need to capitalize on the advantages of billing, relationship and infrastructure

• Lack of nimbleness and “IT” branding are inhibiting early growth

• Sought after channel partner in the short-term for pure-play cloud providers

#2: Cloud will significantly disrupt the current ICT landscape (2)

• Business skills such as project, relationship management will take front-seat

• Cloud will run on Commoditized, open source platforms with stringent SLA’s

It is all about Business

• IT automation will render several “dull” IT jobs obsolete

• Skills in demand will include technical architects, vendor relationship managers, risk management professionalsIT departments will shrink

• SMB’s have an unique ability to scale quickly and obtain SMB’s will have access to

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• SMB’s have an unique ability to scale quickly and obtain access to enterprise class infrastructure

• Advent of start-ups that live in the “Cloud” with no infrastructure

SMB’s will have access to Enterprise class ICT

resources

• MNC’s and Conglomerates will offer “IT as a Service” both internally potentially to external customers as well

• Drastic improvements in efficiency, effectiveness and measurability of IT

Conglomerates will become “Service

providers”

• “ Browser” is the software and “Internet” is the network

• Ubiquitous access from any device, anytime, anywhere, any networkBrowser is the software

#3: Significant efforts will be devoted to Standards, Security and SLA’s

Standards Development

Use cases

Reference implementations

Publishing of test results

Risk Management Frameworks

These are three critical areas where we expect considerable industry

efforts in the future

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Risk Management Frameworks

Adequate security controls

Vendor assessment standards

Stringent privacy laws on data integrity

Third-party audits and review

Improvement of SLA’s

More heterogeneity in SLA’s

SLA’s with clear response time

Financial liability

Robust privacy standards

#4: PaaS will emerge as key battleground

• Explosive growth ahead

• Low barriers to entry

• SaaS vendors need to move beyond “pure SaaS” to “PaaS”

• Lock-in model

SaaS

• The key battleground in the future of cloud

• PaaS market participants are expected to venture aggressively into the SaaS, IaaS turfPaaS

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• PaaS market participants are expected to venture aggressively into the SaaS, IaaS turf

• Openness and integration with other platforms , mobile devices crucial

PaaS

• A segment headed for rapid commoditization

• Robust service delivery platforms and flexi-pricing models crucial

• SaaS is a path of natural progression

IaaS

#5: While SaaS will continue to thrive

300.0

400.0

500.0

600.0

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$ M

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30.0%

40.0%

50.0%

60.0%

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BAaaS Market: Revenue Forecasts (South Korea), 2009-2017

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Note: All figures are rounded; the base year is 2010. Source: Frost & SullivanNote: Compound Annual Growth Rate (2010-2017): 32.8%

0.0

100.0

200.0

300.0

2009 2010 2011 2012 2013 2014 2015 2016 2017

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CRM ERP SCM HRM BI OthersO Growth rate

Others includes solutions such as Office Automation, eBusiness, Accounting and Vertical Specific

solutions.

Security & PrivacyService delivery

platform

Stringent SLAWeb App

Frameworks

Important Ingredients to build a robust Cloud Framework

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Cloud Computing

Virtualization SOA Broadband

Browser as a Platform

Open Source


Commoditized Hardware

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For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

+603 6204 5832

[email protected]

Mi Ok Lee

Corporate Communications

Asia Pacific - Korea

+82 2 6710 2033

[email protected]

24

Nitin Bhat

Partner

Asia Pacific

ICT

+65 6890 0999

[email protected]

Cloud Computing: What is in Store?

Business

Transcript of Cloud Computing: What is in Store?