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Balaka Aggarwal - Cloud Computing & SaaS: Market Evolution and Implications - Interop Mumbai 2009

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SaaS / Cloud Computing is not a fad -- it marks a fundamental market shift in the global IT industry. Understanding how to leverage SaaS/Cloud Computing – or at least how to manage it – is a new business imperative. This session will present ten key realities and possibilities around embracing Cloud Computing that businesses need to know. It will also paint a bird’s eye view of Cloud Computing technologies and its business proposition for both end users and vendors. Further, the session will help provide an overview of the latest demand-side trends, vendor offerings and an industry roadmap for the next few years.

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Balaka Aggarwal - Cloud Computing & SaaS: Market Evolution and Implications - Interop Mumbai 2009

  1. 1. Interop Mumbai 2009 Cloud Computing and SaaS Market Evolution and Implications Balaka Baruah Aggarwal Senior Manager, Software Research Springboard Research
  2. 2. CIO CHALLENGES – 2009  Cost Savings • IT budget cuts are a reality in the current climate • Capital expenditures are closely scrutinized • Subscription-based pricing is highly compelling  Process Improvements and Increased Efficiencies • Shift from enabling growth to increasing or at least maintaining margins • Successful companies are still investing  Short-term Value Delivery • ROI must come in weeks or months – not years • Project value must be clearly defined, targeted, agreed-upon and measurable 2
  3. 3. SAAS VERSUS CLOUD COMPUTING – SETTING THE STAGE A collection of IT-enabled resources and capabilities that can be delivered via the internet as a service  Services Vary • Software as a Service (SaaS) • Platform as a Service (PaaS) • Infrastructure as a Service (IaaS)  Certain Characteristics are required • Web-based user access • Multi-tenancy and shareable resources • Massive scalability and dynamic resource allocation 3
  4. 4. SAAS MARKET GROWTH REMAINS STRONG $2,500 90%  SaaS growth is 3-4x on- 80% premise SW growth $2,000 70% 60%  “The Cloud” provides $1,500 additional boost to the 50% 40% SaaS model $1,000 30%  CRM & Collaboration 20% $500 lead, but SaaS apps are 10% blossoming $0 0% 2008 2009 2010 2011 2012 IT Market Size SaaS Growth SW Growth 4
  5. 5. SLOWDOWN TRIGGERS SAAS INTEREST Q: Has the economic slowdown increased your interest in SaaS? N: 487 APAC/121 India ANZ Yes, 42% APAC Yes, 33% India Yes, 30% 0% 10% 20% 30% 40% 50% Source: Springboard Research, 06/2009 5
  6. 6. SAAS USAGE IN INDIA Q: What SaaS application are you currently using? N: 73 SaaS adopters* ERP 33% CRM 23% Other 19% HR/Payroll/WFM 18% Web Conf./IM/Collab. 15% Email 3% 0% 10% 20% 30% 40% Source: Springboard Research, 06/2009; *Numbers do not add up to 100 as respondents mentioned multiple SaaS applications 6
  7. 7. SAAS DRIVERS IN INDIA Q:What was the primary reason for adopting SaaS? N: 73 (SaaS adopters) Lower cost of ownership 35% Convenience 22% Addresses a specific biz need 11% Scalability 10% Accessibility 8% Other 7% Zero/Low maintenance 4% Corporate decision 3% 0% 10% 20% 30% 40% Source: Springboard Research, 06/2009 7
  8. 8. WHY CLOUD COMPUTING…. Focus on the forest….  Business is interested in processes and information • Not technology, applications or infrastructure  IT is a means to an end, not an end in itself • The ‘service’ being consumed is ultimately all that matters • Everything else is simply part of the plumbing  From a business standpoint, IT has no inherent value at all • All value lies in how effectively IT is applied to help meet business objectives ….not the trees!!! 8
  9. 9. …. WHY NOW???  Virtualization • Driving data centre improvements – lower costs, improved service • Focusing attention on ‘economies of scale’ – the value of shared resources  Open Standards • Rich Internet Applications and Web 2.0 standards – enhanced usability • Improved interoperability and applications as a collection of ‘services’  Internet • Available, reliable, and affordable broadband 9
  10. 10. CHALLENGES TO OVERCOME Security Data Governance • Regulatory compliance • Integrity, Recovery, Privacy, Segregation • Unauthorized access • Sovereignty Laws and Regulations Integration Management • Local/Remote Integration • Performance management and scenarios monitoring • Cloud to Cloud issues • Ensuring Service Level • Dynamic resources Agreements (SLAs) 10
  11. 11. In Summary…. In Summary….  Prepare for the Economic Recovery Now • If you don’t, your competitors will  Turn Challenges into Opportunities • Resource constraints can drive better behaviour • Budget and staffing limitations will remain  Ignore the Hype • There are STILL no silver bullets • Business priorities drive IT decisions  Educate Yourselves • SaaS and Cloud Computing are not new • This is a good thing! 11
  12. 12. Thank You baggarwal@springboardresearch.com

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