This document discusses the opportunities for small and medium enterprises (SMEs) from cloud computing in light of the establishment of the ASEAN Economic Community (AEC) in 2015. It provides an overview of cloud computing trends, defines cloud computing, discusses various cloud providers and users, and how cloud computing is changing the IT business model. The document also highlights opportunities for SMEs through lower costs and more flexibility using cloud services, but notes issues around awareness, security, infrastructure access, and available cloud services that need to be addressed.

1. Cloud Computing
Opportunities for SMEs
Towards AEC 2015
Assoc.Prof. Dr. Thanachart Numnonda
Director
Software Park Thailand
19 July 2012
1

2. Agenda
•
AEC 2015
•
Cloud Computing Trends
•
What is Cloud Computing
•
Cloud Providers
•
Cloud Users
•
How Cloud Computing Changing IT
Business?
2

3. AEC 2015
3

4. ASEAN
4

5. ASEAN
5

6. ASEAN
•
Population: 613 million
•
Trade: US$ 1,536 billion (2009)
•
Trade between ASEAN: US$ 376 billion
•
Employment: 276 million
6

7. 7
Source: Free Flow of Services AEC, Ronnarong Phoolpipat

8. Main Objective of AEC
8
Source: Free Flow of Services AEC, Ronnarong Phoolpipat

9. Impact of AEC
•
Gross GDP to 2.65 Trillion from 1.8
•
Free flow of Human Resources
•
Landing pad for re-export
•
Re-thinking of Investment Incentive
•
Large investment opportunity
•
Industry Shift
9
Source: K.Nattasak, Oracle

10. IT Industry Competitiveness 2011
10
Source: EIU2011

11. IT Industry Competitiveness 2011
11
Source: EIU2011

12. Network Readiness Index
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13. Internet Access
13
Source: ITU 2010

14. Singapore
Positioning as a ICT hub for this region
Not much after AEC 2015
IT spending in 2010 is SGP$37bn for Hardware,
SGP$11bn for software, SGP$8.9bn for IT
Services
ICT manpower 141,300 (2010)
14

15. Singapore Infocomm Development
Agency Vision
Infocomm-savvy workforce and globally
competitive infocomm manpower to drive
economic competitiveness
Boost the number of infocomm jobs by 55,000 yo
about 190,000 by 2015
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16. Vietnam
Positioning as a outsourcing hub
IT spending in 2011 is US$8.7bn; software $1.2bn.
27.9 Million Internet users
Strong support from the government
The national strategy “Transforming Vietnam into
and advanced ICT country” in 2020
By 2020, IT will take 8-10% of GDP
Internet user 70% of total population.
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17. ICT Human Resource Vietnam
Labors of IT Industry 250,290 (2010)
HW Industry 127,548
SW Industry 71,814
DC Industry 50,928
Target one million IT engineers in 2020
New enrollment of IT students in university
reached 50,000 in 2011.
290 universities/colleges with ICT education.
17

18. Indonesia
One of the fastest growing economy
Need more ICT professionals
Attracted by many other countries; in and outside
ASEAN
29.6 Million Internet users
18

19. Philippines
The IT/Business Process Outsourcing (BPO)
industry, is already a very important factor in
economy with over half a million full-time
employees, between 4% and 5% contribution to
GDP
its status as the number one BPO location in the
world.
BPO (finance & accounting, HR, payroll);
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20. Philippines Target
Over USD 20 Billion IT/BPO revenue by 2016, up
from USD 8.9 Billion in 2010;
Exceed 900,000 FTE in IT/BPO industry by 2016,
from 525,000 in 2010;
Over 50% of IT/BPO business is non-voice related
by 2016, from 20% in 2010;
Increased number of IT graduates to 60,000 by
2016, up from 38,809 in 2009
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21. Cloud Computing Trends
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22. 22
Source: wikipedia

23. 6 Million SmartPhones in Thailand
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24. More than 480,000 Tablets sold in Thailand
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25. 2014
Mobile will become the most common
way of accessing the Internet
25
Source :Trending the future: Mobile Trends 2011

26. 26

27. Welcome to
The Post-PC Era
27

28. 28

29. iCloud
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30. “At year-end 2016,
more than 50 percent of Global 1000 companies
will have stored customer-sensitive data
in the public cloud.”.
Gartner Prediction 2012
30

31. What is Cloud Computing?
31

32. Cloud Computing is Internet-based computing,
whereby shared resources, software,
and information are provided to computers
and other devices on demand, like the electricity grid.
Definition (Wikipedia)
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33. Cloud Computing
No Capital Expenditure
Pay as you go
Pay only for what you need
Application Programming Interface (API)
Scalability and Elastic Capacity
Reliability
Device and location independence
33
Source : Architecting for the cloud : Amazon Web Services

34. Architecture for Cloud Computing
Design for Failure
Decoupling
Elasticity
Security
Break Constraints
Think Parallel
Different Storage Option
34
Source : Architecting for the cloud : Amazon Web Services

35. Three layers of Cloud services
Source : JAVA IN THE CLOUD 35
PAAS PLATFORM IN COMPARISON, Eberhard Wolff

36. Source : http://acloudyplace.com/ 36

37. Cloud Service Providers
37
Source : http://www.jansipke.nl/top-cloud-computing-providers

38. Deployment Model
38
Source : Wikipedia

39. The Cloud
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40. You need a massive infrastructure
40

41. Cloud Providers
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42. Is this just Hosting 2.0?
No, they have different architectures
and business model
Cloud Players Hosting Players
Hundreds of them around
the world
Only few can afford billions dollar
investment on data centers
42
Source : I’m Cloud Confused

43. Top Public Cloud Provider 2011
Amazon
Verizon/Terremark
IBM
Salesforce.com
CSC
Rackspace
Google
BlueLock
Microsoft
Joyent
43

44. Google Compute Engine
44

45. Cloud Computing : SaaS
Gmail
Google Apps
Dropbox
Salesforce.com
Zoho
Microsoft Office 365
45

46. Cloud Users
46

47. Cloud Computing
Opportunity for SME
Use ICT for their business with low
investment (no CAPEX; pay as you go)
Buy ICT as Services (subscription model)
such as SaaS
Can focus on their business
Business Continuity
New Business Opportunity
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48. Issues of Cloud Services for SMEs
Lack of awareness // Misunderstanding
about Cloud Computing
Security issue
Low Broadband/Internet Access
Data Protection
Limited Cloud Service Providers; both
SaaS (Application) and IaaS (Data Center)
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49. Cloud Readiness Index 2011
49
Source : Asia Cloud Computing Association: September 2011

50. BSA GlobalCloud Computing Scorecard
50
Source : BSA GlobalCloud Computing Scorecard: Feb 2012

51. BSA GlobalCloud Computing Scorecard
51
Source : BSA GlobalCloud Computing Scorecard: Feb 2012

52. How Cloud Computing
Changing IT Business?
52

53. “Cloud computing will transform the IT industry
as it will alter the financial model upon
which investors look at technology providers,
and it will change vertical industries,
making the impact of the Internet on
the music industry look like a minor bleep,”.
Peter Sondergaard, senior vice president at Gartner
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54. Top 5 Cloud Computing Trends
IT departments will be forever changed
Cloud security will no longer be an issue
Custom cloud computing services
Custom software development will shift towards
the cloud
Innovation
54

55. How Will Cloud Computing Impact
Industry?
IT Infrastructure will change dramatically
Some IT jobs may vanish altogether. New skills will be in
demand.
The way applications are developed, tested, deployed
and continuously re-factored will undergo a change
The selling and licensing of applications will change too.
The architecture of applications will continue to evolve.
Data volumes will skyrocket.
Source: Dorai's Learn Log 55

56. New Software Eco-System
Cloud Devices
e.g. Tablets, SmartPhones, Desktop
International Cloud Apps (SaaS) Local Cloud Apps (SaaS)
e.g. DropBox, Salesforce, CRM on Demand
Public Cloud Services (PaaS) Social Network APIs Other
e.g. Google APIs, Local APIs e.g. Twitter, Facebook Platforms
International public cloud Local public cloud
e.g.Google App Engine, Microsoft Azure
Cloud Thailand Alliance
Enterprise cloud
Salesforce, Amazon
56

57. Software Platforms
Industry Specific Industry Specific Industry Specific
Applications Applications Applications
Add on Add on Add on Add on Add on Add on Add on
Module Module Module Module Module Module Module
Local Platforms Inter Platforms Other Platforms
e.g. Google, Facebook,
ำe.g. CRM, ERP, ECM, Billing, BI e.g.Traffy
Saleforce
Local public cloud Inter public cloud
Private
(PaaS/IaaS) (PaaS/IaaS)
Cloud Thailand Alliance Google, Microsoft, Amazon Enterprise cloud
57

58. 58

59. Dropbox's Model
a Web-based file hosting service
uses cloud computing to enable users to store
and share files and folders
was founded in 2007 by MIT graduates
Dropbox server and desktop client software are
primarily written in Python.
Dropbox uses Amazon's S3 storage system
annual revenues were 100 million dollars in 2010.
Dropbox's valuation is more than 1 billion dollars.
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62. 62

63. Time to Change!!
for The New Opportunities
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64. Thank you
thanachart@swpark.or.th
twitter.com/thanachart
www.facebook.com/thanachart
www.swpark.or.th
www.facebook.com/softwareparkthailand 64