The document discusses the evolution of cloud computing strategies from early portrayals focusing on centralized cloud services to more hybrid models. It describes four emerging strategies - leveraging local devices, browsers, on-premise applications, and platforms. The author introduces TCS iON's strategy of "The Fourth Game", which represents the next evolution by offering IT-as-a-Service and commoditizing a wide range of IT capabilities and services to optimize local devices and deliver maximum benefits to SMB customers.

1. White Paper
The Changing Face of
Cloud Computing -
The Fourth Game
Cloud has come a long way since it first emerged on
the computing scene. The concept is
metamorphosing to make sound business sense for
users while giving cloud computing solution
providers a unique platform to differentiate their
offerings and services amongst a growing crowd of
vendors. The Fourth Game represents a winning
adaptation of the cloud philosophy for SMBs in
major verticals.

2. About the Author
Venguswamy Ramaswamy
Venguswamy Ramaswamy (Swamy) is the Global Head of iON,
TCS’ strategic unit for Small and Medium Business. iON provides
end-to-end business solutions to the SMB segment. In his
previous role, Swamy was the Director of TCS' Global Consulting
Practice (GCP) and was instrumental in the structural formation,
development, and positioning of TCS’ consulting offerings.
He was listed amongst the top 25 consultants in Consulting
Magazine in 2007.
During his over 18 year tenure at TCS, Swamy has held several
strategic positions that have included managing key customer
relationships, building and heading the Process Consulting
Group, managing the Corporate Resource Management function,
leading numerous Centers of Excellence, as well as launching TCS'
first steps in geographies such as Hungary and China.
Swamy is a firm believer in the power of IT to create business
value and is known for his interest in Innovation & Quality and
expertise in Six Sigma. He is also recognized as a champion of
many digitization drives within TCS, including deploying digital
platforms for Six Sigma, creativity, and talent acquisition.
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3. Table of Contents
1. The Early Portrayal of Cloud Computing 4
2. Attracting Wide Scale Usability 5
3. Successful Cloud Computing Optimizes the Local Device 5
4. Cloud aggregators with device leverage 6
5. Cloud apps with browser leverage 6
6. Cloud platforms with on-premise apps leverage 7
7. Futuristic Strategy 7
8. The Fourth Hybrid Strategy in the Cloud 8
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4. The Changing Face of Cloud Computing
Vendors are adapting the cloud philosophy to a medley of hybrid formats to deliver maximum benefit to
customers while furthering their competitive strategies. After a trilogy of strategies aiming at maximizing the
function of the local device, the latest in this series of adaptations is The Fourth Game, an iON offering
tailored for SMBs across diverse verticals by TCS.
The Early Portrayal of Cloud Computing
Cloud computing has evolved considerably since the concept was first introduced some years ago. It was
initially presented as a style of computing in which scalable and elastic IT-enabled capabilities are delivered
as a service to customers using Internet technologies. In the early days, these IT-enabled capabilities were
understood to include managing the operating system software and various software applications, which
users could tap as per their need using an Internet connected lightweight computing system. Minimalist
(hence, low cost) on-premise hardware was presented as one of the biggest advantages of cloud computing
for users. Users would make gains from the perspective of application acquisition as well. Applications in the
cloud would be merely used, as opposed to procured, and hence would cost less than traditionally bought
applications.
Data storage services also came into the picture and were presented as one of the most useful outcomes of
the cloud philosophy. Data pertaining to applications in the cloud would likewise be stored in the cloud. This
was cited as a major cost, time and effort saver.
Not only was cloud computing portrayed so appealingly but it was also pitched as the computing technique
of the future. Most computing was predicted to move to cloud over the course of a decade. Users were
expected to benefit from tapping computing as they do a public utility like electricity or water.
As the cloud philosophy evolved, loopholes in this over-simplistic presentation began to surface. One
realization especially applicable to verticals associated with a high number of low-value transactions – such
as the retail, quick service restaurant and wellness industries – was that far from becoming lighter, devices on
site would become computing heavy even if applications and data relocated to the cloud. The reasoning
behind this was that, enterprises with high turnover would considerably slow down their operations if they
were mandated to log into a central data center (Central Instance) to record and process each transaction.
This grew the relevance of the local instance (the data being captured in the local device).
Numerous challenges arose as users grew wise to this irony in the initial premise of cloud computing. User
queries arose over why they should not merely rely on the local device. It became increasingly unclear as to
how the cloud would enhance the services offered by the local device. Users essentially needed additional
justification to switch to the cloud.
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5. Attracting Wide Scale Usability
True potential of
cloud computing Pervasive
Cloud is emerging Today all
Cross Premise
enterprise
solutions
are a mix
of these
Cloud today is here Tied to premise
Cloud computing is practically hybrid computing
Vendors in turn began to realize that the cloud would have to be customized in keeping with evolving
work and leisure patterns, in which computing technologies are playing a greater role. Such
customization would particularly have to enhance the services provided by the local device to create a
compelling business case for the cloud.
A hybrid philosophy emerged as the answer to this challenge. Cloud and local device would work
seamlessly together to offer consumers the best possible computing proposition. Vendors drew parallels
with public utilities to drive home this concept. Electricity, for instance, is increasingly becoming hybrid to
cater to user needs. Today, users cannot rely on the electricity supply of utility companies alone. Whereas
electricity utilities provide the equivalent of the central instance i.e. the cloud service, this must be backed
up by localized electricity stores such as capacitors and batteries. Local electricity stores like inverters,
UPSs, laptop and mobile batteries help consumers to optimize the cloud service. When the cloud service
is down or it is more productive to use the local device, the locally anchored service takes over. In time,
each is maturing and finding its own place.
Water as a public utility is no different. Users see greater value in a blend of piped supply and distributed
tanks than in relying solely on piped water supply. Cloud computing would have to do likewise, and find a
local form to anchor itself to appeal to a larger subset of users. That way, cloud computing would also be
able to exploit the capacity of the local device and strengthen its business case for potential converts.
Successful Cloud Computing Optimizes the Local Device
Optimizing the capacity of the local device delivers other benefits as well. This capacity helps cater to the
trend of data of increasing data density (video, voice, Interactive Voice Response or IVR and conferences)
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6. and thus, counter one of the challenges in pure cloud – the capacity of centralized computing. Pure cloud
computing would mandate no local servers, aka data centers. Data storage would be in the cloud. This
raises practical questions, such as, how large could the cloud grow? Also, could the cloud become too
heavy to sustain itself? Optimizing the capacity of the local device would ensure cloud sustainability as
well as quick access.
A hybrid form of cloud computing modeled on the lines of utility services would also meet growing user
expectations from the device, be it a multi-touch animated interaction or the ability of the device to store
user preferences. Multi-touch, IVR and data-laden user interfaces are expected to become the norm soon
and these will demand a different form of local computing.
Technology advancements outside cloud pertaining to the capabilities of the local device or the
technology used to leverage the local device could help cloud computing achieve the aim of optimizing
the capacity of the local device and evolve to the next level wherein the hybrid mix – of local and cloud
computing – defines each vendors strategy. Based on such advancements, four distinct categories of
players are evolving, each with its own strategy to exploit the device.
The first perspective is to leverage the local device, which is best exemplified by Apple with its range of i-
devices. Google exemplifies the second perspective, which involves leveraging the browser to exploit the
capabilities of the local device. The next group is comprised of companies like Microsoft that are
leveraging middleware that links existing applications with applications on the cloud. TCS iON’s unique
proposition IT-as-a-Service marks the pinnacle of evolution of the hybrid cloud philosophy where it is
leveraging a strong set of business processes and services.
Cloud aggregators with device leverage
Apple best exemplifies these cloud players. Apple makes its own devices. Consumers work these devices
using the pre-installed operating system, which in Apple’s case has become renowned for giving users a
rich experience. Consumers can buy services – apps, tunes, games etc – to be played on these devices
from the Apple store. These aggregated services offered on cloud drive Apple’s revenue model. Thus,
Apple and other cloud players of this kind are exploiting the computing power of the device with the
objective of providing users a rich cloud computing experience.
Compliance to open standards is not sacrosanct for this class. Apple devices are, for instance, based on
proprietary technology that is a closely guarded secret. Companies that can couple sought after content
with a great user experience mostly opt to go down this route because of the higher returns.
Cloud apps with browser leverage
Players in this category are offering apps on cloud leveraging the browser. Case in point – Chrome from
Google. The idea of leveraging the browser emanates from its increasing role in connected computing,
being the intermediary between the user and the web, which represents an entire world online. Since the
browser is installed on the local device, it is local from the users’ perspective. This makes it a well placed
medium to maximize the value of the local computing capabilities.
As a result, the browser application becomes heavy and occupies a lot of the CPU memory during
operations. On the other hand, the browser starts to deliver most of the functionalities of the operating
system and makes other software facilitating user interface and navigation redundant.
In future, as vendors of these browsers acquire capabilities to manufacture or outsource the production of
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7. compatible devices, or tie-up with compatible device vendors, such services are expected to convert into
a device platform. The browser would transform into the operating system residing in the device. Unlike
the previous category, however, the apps driving these devices would comply with HTML standards and
be dynamically updated. Ironically, browsers are the biggest reason for de-standardization today and yet
because they are being developed exploiting a technology that is expected to become standard
tomorrow, browsers too, will become torch-bearers of standards.
Cloud platforms with on-premise apps leverage
Vendors that are relying minimally on the browser and on the operating system are presently holding out
the most complex hybrid cloud offering. Cloud services from such vendors include platforms and
middleware designed to help users to maximize the potential of on-premise enterprise servers, such as
applications for on-premise email servers. Here, the cloud hosts the enterprise scale applications which
complement applications residing locally, in the private servers. Some Microsoft offerings are modeled on
these lines, like Microsoft Office SharePoint Server. These cloud offerings are best suited for large firms
having rich legacy applications that they are not prepared to immediately give up but are keen to begin
transitioning to a hybrid cloud.
Existing Hybrid Cloud Computing Strategies
Strategy Local part Cloud part Tech shift Leverage
On-device
hybrid Mobile Apps
device aggregation
On-browser
hybrid Device and Device
OS
On-premise
iPad inseparable
hybrid
Browser Apps
extentions stores
Apps
Enterprise Browser Browser
Servers becomes
E.g.: Google apps
the OS
extentions on
Chrome
Middleware
Middleware Middleware
becomes
E.g.: Exchange and SharePoint with Azure the OS
Futuristic Strategy
All the strategies described above are similar by virtue of being based on the need to exploit the
potential of the device. It may be the operating system, the utility-rich browser, or the apps that are kept
within the device. This choice is determined by the nature of the application. This raises the question:
what hybrid model would emerge when the nature of applications becomes more complex? Consider
7

8. an ERP application in the cloud. The provider would necessarily hook up to on-premise enterprise systems
to offer the business applications.
In this context, a novel strategy from TCS iON is evolving cloud computing to a whole new level. It
recognizes that available cloud computing services cater only to the partial needs of consumers and in
turn, expands the layers to which the cloud could specialize to deliver maximum user benefit. In
particular, IT implementation, support and training have so far been left out of the cloud menu card. This
represents a huge cost for businesses, especially the financially hard-pressed small and medium business
sector, because these services take up 60% of IT spend.
The Fourth Hybrid Strategy in the Cloud
Services included commoditization happens
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Unless IT services are commoditized, IT utility will remain a pipe dream
TCS iON is offering IT-enabled capabilities in the cloud, in the widest sense to plug the holes in the
system. IT-as-a-Service from TCS iON covers all the possible IT needs of its target clientele – small and
medium businesses – from the essential computing and networking hardware to applications needed
for day-to-day office management, business management and vertical specific utilities. Consulting
services covering the implementation and support of the hardware and applications onsite is part of
the bundle of services as well. This is where TCS Cloud IT-as-a-Service for SME stands out. In adding
the human interface to application services, it conclusively becomes the fourth strategy in the cloud.
Implementation and support services step in to ensure maximum output is derived from the device.
Local device capabilities are optimized from another point of view as well – since, these devices are
rented instead of being procured, users are spared from the costs of upgradation.
Users also gain traditional cloud service benefits such as low cost from pay-as-you-use and the
freedom from getting involved with IT provisioning, including hardware. Additional standardization,
cost and quality benefits kick in from dealing with one provider of repute, possessing the proven
capability of delivering essential consultancy services and support, the backbone of this fourth hybrid
strategy in the cloud.
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9. About iON
iON is Tata Consultancy Services’ strategic unit for Small and Medium Business. iON provides
end - to - end business solutions to the SMB segment, the growth engine of the economy.
iON caters to the needs of multiple industry segments with best practices gained through
TCS’ global experience, domestic market reach, skills, know-how and delivery capabilities.
For more information, visit us at www.tcsion.com
Contact
To know more about iON
Toll Free Number 1800 209 6030
Email ion.salessupport@tcs.com
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About Tata Consultancy Services (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that
delivers real results to global business, ensuring a level of certainty no other firm can match.
TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering
and assurance services. This is delivered through its unique Global Network Delivery ModelTM,
recognized as the benchmark of excellence in software development. A part of the Tata Group,
India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National
Stock Exchange and Bombay Stock Exchange in India.
For more information, visit us at www.tcs.com
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