"Walk On The CLOUD"How Businesses Need toThink to Profit from CloudShantanu UpadhyayOct 12, 2011
Cloud Computing: An OLD idea whose time has come         “Computation may someday be organized as a                       ...
Cloud is driving consumerisation of IT…                              Paradigm shift                                       ...
…and will enable IT to inject itself more deeply intoproduct functionality/ business processes                      IT Exp...
Cloud allows businesses to transform IT architecturefrom “Inside-out” to Outside-in”                                   Key...
The future is already here – Rearden Commerce      One-stop travel network enabled by                    cloud        2.8 ...
The future is already here - redBus  Bus operators with limited or no IT                           redBus solutions for Bu...
The future is already here – TradeCard      Supply chain collaboration and trade              financing platform          ...
Prescriptions for businesses  1.   Evaluate cloud beyond pure IT cost-reduction and flexibility play  2.   Develop experie...
“A pessimist only sees the dark side of the clouds, and mopes; aphilosopher sees both sides and shrugs; an optimist doesnt...
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its net...
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Walking on the Cloud

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Presentation given by Shantanu Upadhyay, Sr. Mgr. Deloitte India, TMT Practice at Cloud Computing World Forum India 2011 on 12th October 2011 at JW Marriott, Mumbai.

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Walking on the Cloud

  1. 1. "Walk On The CLOUD"How Businesses Need toThink to Profit from CloudShantanu UpadhyayOct 12, 2011
  2. 2. Cloud Computing: An OLD idea whose time has come “Computation may someday be organized as a public utility.” 1 — John McCarthy, 1961 © 2011 Deloitte Touche Tohmatsu India Private Limited
  3. 3. Cloud is driving consumerisation of IT… Paradigm shift Cloud is… Consumers Enterprises Blurring the line between consumer and enterprise IT • Innovations from the consumer space are finding their way into enterprise space Industrializing IT – enabling pay-per-use, bringing IT to new segments • Bringing non-users like SMBs/ SOHOs into the fold • Within enterprises, empowering lines of business Democratizing innovation, enabling players to experiment with new models irrespective of size • New businesses such as Netflix, Groupon et al have been built on Cloud platforms Source: Deloitte Analysis, analyst reports, press releases, primary interviews with industry players, SMEs and end clients CIOs 2 © 2011 Deloitte Touche Tohmatsu India Private Limited
  4. 4. …and will enable IT to inject itself more deeply intoproduct functionality/ business processes IT Expenditure Vs. IT price index (US)1 Illustrative example for IT scope expansion: ERP Production IT Expenditure Index (% of real GDP) 250 250 Support processes E-Commerce scheduling (MRP), integration (finance, extensions, Inventory HR, logistics) productivity 200 200 management improvements IT Price Index 150 150 100 100 1960 1970 1980 1990 2000 2010 Customized Supplier integration, 50 50 production, budget Customer and cost controls management 0 0 1990 1995 2000 2005 2010 IT Price Index IT Expenditure Index Note: Year 2005 value normalized to 100 Cloud could enable ERP/ IT scope to potentially expand to newer areas involving • Traditionally, despite falling costs, IT budgets have remained constant or has • Leveraging unstructured data to drive optimization expanded ‒ Intelligent warehousing – auto inventory management • Going forward, cloud will further push current costs down, freeing up IT budget • Automating newer activities and workloads to be spent in new areas 1. Based on data for information processing equipment and software investments, including computers, peripherals, software and communication equipment Source: U.S. Bureau of Economic Affairs, Deloitte Analysis 3 © 2011 Deloitte Touche Tohmatsu India Private Limited
  5. 5. Cloud allows businesses to transform IT architecturefrom “Inside-out” to Outside-in” Key characteristics of an “Outside-in” approach • An ability to connect a very diverse set of external parties to a common platform • A distinct “policy layer” that enables autonomous partners to set business policies and preferences • An ability to facilitate coarse-grained, long-lived transactions • Compensation mechanisms that cope with unanticipated developments and modify interactions Source: John Hagel & John Seely Brown, Deloitte Center for the Edge 4 © 2011 Deloitte Touche Tohmatsu India Private Limited
  6. 6. The future is already here – Rearden Commerce One-stop travel network enabled by cloud 2.8 million Over 5600 consumers Corporate Clients § A next generation e-commerce platform that offers apps, services, content and personalization for travel and expense management Travel § For consumers, makes the web a highly “Orchestrator” intelligent, personalized and unified experience § For merchants, provides a large-scale, relevance-based one-to-one market place Travel Car Rental Hotels and Service Agents Agencies Restaurants Contractors 160,000 strong merchant network/ suppliers Source: John Hagel & John Seely Brown, Deloitte Center for the Edge; Reardon company website 5 © 2011 Deloitte Touche Tohmatsu India Private Limited
  7. 7. The future is already here - redBus Bus operators with limited or no IT redBus solutions for Bus operators BOSS inventory management solution for bus operator Bus Operator Software Service (BOSS) Churn Internal IT Amazon web services IaaS Suite Seat Seller SaaS SeatSeller for eCommerce companies Business challenges and travel agents • Fragmented marketplace • Significant customer churn • Low differentiation IT asset-lite bus operators • Poor customer service Source: Press releases, Amazon case study, redBus website 6 © 2011 Deloitte Touche Tohmatsu India Private Limited
  8. 8. The future is already here – TradeCard Supply chain collaboration and trade financing platform Inspection Raw material Buyers companies providers § TradeCard is a supply chain collaboration and trade finance platform § Serves 4000+ manufacturers, retailers, Smart Symmetric suppliers and service providers in 50 countries Sourcing Trading Information Network § In addition to connecting buyers and sellers, also includes providers for logistics, payment protection, inspection and export financing § Lean financial and physical processes; visible Transportation flow of money, data and products enabling true Financial Suppliers and shipping multi-enterprise collaboration institutions companies Source: John Hagel & John Seely Brown, Deloitte Center for the Edge; TradeCard company website 7 © 2011 Deloitte Touche Tohmatsu India Private Limited
  9. 9. Prescriptions for businesses 1. Evaluate cloud beyond pure IT cost-reduction and flexibility play 2. Develop experience with Cloud platforms at an early stage to prepare for possible disruptions 3. Explore Harnessing “Outside-in” approach to orchestrate Cloud-enabled scalable network-based differentiation/ business models 8 © 2011 Deloitte Touche Tohmatsu India Private Limited
  10. 10. “A pessimist only sees the dark side of the clouds, and mopes; aphilosopher sees both sides and shrugs; an optimist doesnt see the clouds at all--hes walking on them.” – Leonard L Levinson
  11. 11. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is alegally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and itsmember firms.This material and the information contained herein prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) is intended to provide general information on aparticular subject or subjects and is not an exhaustive treatment of such subject(s). None of DTTIPL, Deloitte Touche Tohmatsu Limited, its member firms, or their relatedentities (collectively, the “Deloitte Network”) is, by means of this material, rendering professional advice or services. The information is not intended to be relied upon asthe sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances orbusiness, you should consult a qualified professional adviser.No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this material.©2011 Deloitte Touche Tohmatsu India Private Limited

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