CIO Vietnam & PRISM - Cloud Adoption in Vietnam

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Duc C. Nguyen is the Business Development Manager of PRISM. He shared knowledges and experiences about Cloud Adoption in Vietnam.

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CIO Vietnam & PRISM - Cloud Adoption in Vietnam

  1. 1. PRISM Information Technology ServicesVietnamCloud Adoption in Vietnam23rd May 2013Nguyen Chi Ducducnguyen@prism.com.vnManaged IT ServicesDelivered by Prism, Powered by IBM
  2. 2. www.prism.com.vnAgenda21. What is Cloud Computing?2. Cloud Adoption in Vietnam3. Challenges and issues for cloud adoption in Vietnam?4. Summary5. Q&A
  3. 3. www.prism.com.vnWhat is cloud computing?3• Accenture’s definition “The dynamic provisioning of IT capabilities(hardware, software or services) from 3rd parties over a network(typically internet)”• Essential characteristics– Web-based IT Outsourcing– Pay for what you use– Fast scalability/elasticityVirtualization(Servers, Applications, Desktops)
  4. 4. www.prism.com.vnWhat is cloud computing?4• Three basic cloud service modelsSoftware as a ServiceFully featured traditional applications run onweb-based platform without local installationPlatform as a Service(Virtualized servers on which users can runexisting applications of develop new ones)Infrastructure as a Service(Virtualized servers, networks, storage, systemsoftware, desktops)
  5. 5. www.prism.com.vnWhat is cloud computing?5• Three Cloud Deployment ModelsPrivate cloud- enterpriseowned orleasedPublic cloud –Sold to thepublic, sharedinfrastructureHybrid cloud –Compositionof Public andPrivate clouds
  6. 6. www.prism.com.vnWhat is cloud computing?6• Why invest in cloud computing?– Reduce CAPEX spending on ITinfrastructure, migrating into anOPEX environment– Liberation of financial resourceswhich can be applied to corebusiness needs.– Gain a competitive advantage bybeing able to access and deploy newbusiness applications and IT servicesmore rapidly.– Reduce on-going maintenance andsupport costs, create a more flexibleand agile business operation * Source: IDG Research 2012
  7. 7. www.prism.com.vnWhat is cloud computing?7• What are motivators for SMBs to move to the cloud?– According to the recent global survey of 3,000 SMBs companies (2 – 250 employees)*** Source: EdgeStrategies surveycommissioned byMicrosoft Corp, “SMBBusiness in Cloud
  8. 8. www.prism.com.vnWhat is cloud computing?8• Primary drivers for cloud computing
  9. 9. www.prism.com.vnWhat is cloud computing?9• Bringing clarity to total cost of ownership– Ex: A cloud-based HR information system (HRIS) at a SMB Company (less than5,000 employees) (Source: SuccessFactors)• Multiple fragmented billing mechanism• Challenging to ascertain total cost• Multiple vendors to deal with• Simplified billing structure• Clear total cost and annual pricing• Reduced costsimplementation31%Subcription52%Cost saving17%Graph 1: Pre-Cloud Adoption Graph 2: Post-Cloud Adoption
  10. 10. www.prism.com.vnWhat is cloud computing?10• Understand life-cycle costing– Total cost of ownership (TCO) of cloud-based application is significantlylower than on-premise options.– In-house model assumes five year recurring investment cost cycle*** Source: SuccessFactorsGraph 3: Typical Cost for SMEs (less than 5,000 e
  11. 11. www.prism.com.vnWhat is cloud computing?Four mega trends will dominate the next decade11* Source: Microsoft Vietna
  12. 12. www.prism.com.vnAgenda121. What is Cloud Computing?2. Cloud Adoption in Vietnam3. Challenges and issues for cloud adoption in Vietnam?4. Summary5. Q&A
  13. 13. www.prism.com.vnCloud Adoption in Vietnam13Government is one of keydrivers to supportdevelopment of cloud-computing in Vietnam- The Ministry of Education & Training (MoET) started using cloud servicesas a way of cutting cost;- The Ministry of Natural Resources and Environment claimed to haverealized 20% investment cost saving after an initial period of virtualizingIT infrastructure. The Ministry has now put in place a strategy for moreutilization of cloud computing in IT applications and is putting in placestandards and policies to enable this.- Cloud Adoption in Vietnam will move from Pilot Phase to DeploymentAcross Broad Applications (IDC Vietnam ICT 2012 Top 10 Predictions, Feb2012)
  14. 14. www.prism.com.vnCloud Adoption in Vietnam14- SaaS (Software as a service)Source: PhD. Huan Tran, IBM
  15. 15. www.prism.com.vnCloud Adoption in Vietnam15- It’s still a low starting point of cloudadoption in 2013  Potentially morerooms for development in for the timebeing- Global and local economicuncertainties and challenges are stillahead  CAPEX (CapitalExpenditures) vs. OPEX (OperationExpenditures)- IT services vs. Total IT market ~ 18.7%(2012) and forecasted to 22.3% (by2017)  more focus on Services- Cloud market will achieve growth of300% – 400% from 2013 –2017, (BMI, Vietnam IT Forecast ReportQ2-2013, Includes 5-years forecast to2017);
  16. 16. www.prism.com.vnAgenda161. What is Cloud Computing?2. Cloud Adoption in Vietnam3. Challenges and issues of cloud adoption in Vietnam?4. Summary5. Q&A
  17. 17. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?17• Market challenges and toughercompetitiveness– Global and local economic recession– Increasing cost of operations e.g. powerand fuel pricing hike, HR min salaryincreased, VND devaluation, etc.– High pressure of lower selling prices andshrinking margins vs. increasing costs ofmaterials*** Sources: VCCI, GSOGDP Annual Grow
  18. 18. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?18- Market Maturity- Vietnam is an emerging market  latency of new technology applicationsat enterprises e.g. ERP (>5 years), service oriented, cloud-computing, managed services, etc.- Low awareness and readiness- Roles of IT in business under management view point - as a cost center vs.service business/profit center to support business development- IT & Business strategy is not fully integrated- Service providers- Trusted? Qualified? Professional?- Others- Security?- Performance?- Stability?- High availability?- Cost effectiveness?
  19. 19. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?19- One model can’t fit all- Public cloud vs. private cloud vs. hybrid cloud?- Which applications e.g. CRM, ERP, coreapplications, HRM, payroll, etc.?- Which field of business e.g. sales, marketing, HR, IT, accounting, etc.?- Which stage of business development should be a right fit?- Which business size e.g. SMBs vs. LE, local vs. MNCs, etc.- Cloud computing is suitable for all with various options that can fitenterprise’s needs
  20. 20. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?20- A big wave is coming that wecan’t resist- It’s a matter of- Awareness, Preparation andPlanning to deal with it- Being the market leader or afollower
  21. 21. www.prism.com.vnWhat’s cloud computing?21• How’s global cloud ERP adoption?– Many companies in supply chain and manufacturing sectors in APACregion plan to migrate their ERP to cloud as per a recent study fromFrost & Sullivan (2011)
  22. 22. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?22- Enterprise management solutions e.g. ERP, CRM, HRM, Projectmanagement (PM) – on premise vs. cloud (SaaS)?- International leading cloud-based players have been coming …..- Local players are ready to go with cloud for local SMBs ……
  23. 23. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?23- Market leaders always are the fastest new technology adopters
  24. 24. www.prism.com.vnAgenda241. What’s Cloud Computing?2. Challenges in supply chain3. How cloud-computing transform the supply chain?4. Summary5. Q&A
  25. 25. www.prism.com.vnSummary25• Cloud computing is significantly changing the way we run our businesses• Cloud migration is a key component of IT strategy, aligning and supportingbusiness growth across all sectors• Example: Via Social Enterprise:
  26. 26. www.prism.com.vnSummary26
  27. 27. www.prism.com.vnSummary27CIOs are drawn tocloud’scost, efficiency andcontrol….…while business executivesare drawn to cloud’ssimplified, self-serviceexperience and fasterdelivery to the market*** Source: IBM CIO Study, LondonSchool of Economics, 2011
  28. 28. www.prism.com.vnChallenges and issues of Cloud Adoption in Vietnam?28- A big wave is coming that wecan’t resist- It’s a matter of- Awareness, Preparation andPlanning to Deal with and Howto take it- Being the market leader or afollower
  29. 29. www.prism.com.vnQ&A29• Please contact ducnguyen@prism.com.vn or duc_nguyen71@yahoo.com

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