Cloud computing adoption large enterprises in india


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- Cloud computing market size: Worldwide, APAC, India
- Cloud adoption scenario: Large enterprises in India

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Cloud computing adoption large enterprises in india

  1. 1. KnowledgefaberCloud Computing adoption – Large enterprises in India August,2012
  2. 2. Global IT & cloud computing spendingSpending on cloud computing is increasing , but spending on cloud as percentage of IT remainsrelatively small worldwide Worldwide IT and Cloud spend Cloud spend as percentage of IT worldwide(2011)= 1.38%* 2,500.0 2,500 2,000 USD Billion xx xx xx xx xx % 1,500 DATA MASKED 1,000 xx xx 500 34.7 xx xx xx xx xx xx xx xx - Worldwide North America EMEA Japan APAC Latin America Total IT Spend Total Cloud Spend ■ Existing dependencies on licensed software and hardware makes for lower spending on cloud as percentage of IT worldwide ■ Cloud spending in North America and EMEA remains relatively higher due to large number of public cloud deployments for communication and collaboration applications - Driven by presence of highly distributed and mobile workforce ■ Cloud adoption amongst countries in APAC and Latin America will grow rapidly from the current base levels as firms look to increase their business competitiveness, IT adoption and innovation by leveraging the cloud*Knowledgefaber estimatesSeptember 3, 2012 2
  3. 3. APAC IT & cloud computing spendingCloud spend in APAC as percentage of IT is lower than world-wide average, but robust adoption ofmobile devices and improvement in network services will lead to higher cloud adoption APAC IT and Cloud spend Cloud spend as percentage of IT in APAC(2011)= xx%* 292.1 300 xx xx xx xx % 250 USD Billion 200 xx DATA MASKED 150 100 xx xx 50 xx 2.7 xx xx xx xx - APAC China India Australia Singapore Total IT Spend Total Cloud Spend ■ Australia, Singapore , China and India together make-up for more than 90% of total cloud spend in APAC. Malaysia, Indonesia and Thailand are other countries in APAC witnessing higher cloud adoption rates ■ In APAC, large enterprises have inclination towards private and hybrid cloud deployment models ■ Security concerns, government regulations and lack of clarity on business benefits from cloud remain major hurdles in APAC ■ Robust uptake of mobile devices such as smartphones and tablets, need for online storage and improving internet & broadband availability will provide impetus to cloud adoption in APAC*Knowledgefaber estimatesSeptember 3, 2012 3
  4. 4. Cloud computing market size in IndiaIndia still in very early stages of cloud adoption, driven primarlily by SaaS based cloud deployments Cloud computing market-size in India Total market size(2011) = USD xx mn* PaaS 10% IaaS 25% SaaS 65% ■ Although India forms 17% of the total cloud market in APAC, Indian firms are still in the phase of understanding cloud benefits as they look to cut IT costs and achieve higher IT services availability ■ SMEs are leveraging cloud-based applications such as CRM, ERP and SCM and other collaboration and communication applications to boost organizational efficiency and productivity and effectively compete with larger enterprises ■ Organizations requiring rapid provisioning and de-provisioning of storage and compute resources are using IaaS on public cloud ■ Organizations are using PaaS as a platform for testing and development of applications*Knowledgefaber estimatesSeptember 3, 2012 4
  5. 5. Enterprise cloud computing market by sectorsManufacturing, BFSI, Healthcare, ICT, Government & Education sectors to witness higher cloudcomputing adoption amongst enterprises Cloud computing market – Large Indian Enterprises(2011) Key drivers and challenges Total market size(2011) = USD xx mn* Manufact Trade Utilities ■ Sectors such as education , retail and other uring 7% 9% sectors for which IT is not a core business are 20% witnessing higher demand for SaaS-based cloud Healthca re services 3% BFSI ■ Heavily regulated sector such as BFSI is 19% adopting private or hybrid cloud model with Governm applications such as CRM , email and business ent Educatio applications like fund access being migrated to 20% n ICT 3% 19% cloud Enterprise IT and Cloud spend ■ Government sector is going to witness high cloud Total cloud spend as percentage of IT(2011)= xx %* computing adoption due to various e-governance initiatives Total IT Spend(in Total Cloud Spend(in Sector million USD) million USD) ■ Manufacturing sector will leverage the cloud by BFSI xx xx using enterprise applications such as CRM, SCM and ERP for inventory and supply chain ICT xx xx management Government xx xx DATA MASKED ■ Migration of electronic health records(EHR) and Manufacturing xx xx Hospital Information System(HIS) onto the cloud will increase spending of Healthcare sector in Healthcare xx xx cloud computing Others xx xx*Knowledgefaber estimatesSeptember 3, 2012 5
  6. 6. Benefits of cloud computing adoptionReduced operational and maintenance costs, quick service provisioning, scalability and improvedresource utilization are major benefits reported by enterprises having cloud deployments Deployment Service Cost Time Resource Other Company Flexibility Scalability Model provider Benefit Benefit Utilization Benefits Narayana Hrudayalaya Private Cloud HCL Wipro Private Cloud Wipro Dr Reddy’s Lab Public Cloud Salesforce AICTE Public Cloud Microsoft IMI Mobile Private Cloud IBM Dabur Hybrid Cloud Microsoft KPIT Cummins Public Cloud AWS Redbus Public Cloud AWS Max Healthcare Private Cloud Dell Shell Lubricants Private Cloud HCL Flipkart Public Cloud Google J & K Government Private Cloud Microsoft IndiaMART Public Cloud Google ■ Reduced operational and maintenance costs remained most important takeaway, with some companies reporting as much as 60% - 80% in cost savings ■ Enterprises in IT as well as government sector leveraged private cloud through optimal utilization of existing resources ■ Lower deployment time enabled rapid provisioning of services thereby enabling quick time-to-market in many companies ■ Other benefits reported include increased profits, reduced latency, elasticity, reliability, improved stability and better availability of IT servicesSource: HCL, Microsoft IBM, Google Press releases, AWS case studies, CIO Website, Business- standard articlesNote: List of companies is not exhaustiveSeptember 3, 2012 6
  7. 7. Cloud computing migration approach Adopting right migration approach decisive in successful cloud adoption Assess Identify Perform Segregate current business proof of workloads Perform scenario case concept for migration Migration Migration step Description ■ Perform application portfolio analysis – List of various cloud based applications required by organization, current standalone applications Vs applications with dependency ,simple applications that can be moved to cloud immediately(Email applications) Vs Complex applications(such as ERP) ■ Portability issues – Applications that can be ported to the cloud immediately Vs applications that will require modification and performance enhancements before cloud migration ■ Identify biggest cost drivers – CAPEX costs, Hardware costs, software licensing costs, network bandwidth costs Assess current ■ Assessment of existing investments - Current investments in application and storage servers scenario ■ Current pain points - Legacy applications and infrastructure that are not able to handle increasing workloads, Lack of expertise, skilled human resource requirements, scalability issues, new business requirements ■ Example: Narayana Hrudayalaya : IT was not the core business of Narayana Hrudayalaya. Needed cloud based Hospital Information System(HIS) for various administrative tasks such as patient registration across various sites in the country. Hospital had modest IT workforce, was finding it difficult to recruit and retain skilled IT workforce. Building and managing own datacenter and IT applications would be liability for company in terms of CAPEX and functional expertiseSource: Knowledgefaber research, KPMG reportSeptember 3, 2012 7
  8. 8. Thank You ! For complete report, contact – Dev Vig, Principal Consultant, Knowledgefaber Registered Office Corporate OfficeKnowledgefaber, 203, 2nd Floor, Promenade, Knowledgefaber, 405 Prestige Center Point, Dasarahalli Extension, Cunningham Road Bangalore, KA 560024 Bangalore, KA 560052 India India Phone: +91-80- 41231576