Will Cloud Computing erode the   IT Services Business?   Anand Deshpande   September 201210 September 2012                ...
anand@persistent.co.in                                Coming to                            New Delhi, India               ...
Cloud Computing is imminent …● It will be driven by economics ...                 … about 30% reduction in costs!  – Cost ...
By operating at scale, improving utilization,simplifying operations, standardizing,increasing reliability, reducing energy...
Cloud computing will seemainstream deployments in thesecond half of 2013.● Cloud leaders (pre-2010) … Amazon,  Salesforce....
Cloud is about                   simplicity! February 3, 2012                    6
Mobile devices are the de-factoconsumption device● BYOD is the hottest disruption in the enterprise.● Mobility is not just...
Cloud and Mobility will grow in   tandem. They are interdependent!10 September 2012                     8
Cloud computing will create jobs inIndia!10 September 2012                     9
Really?If every CIO saves 30% from theirbudget … world’s softwarebusiness is significantly down!                 𝑥 𝑖 > (𝑥 ...
ADM business will bear the brunt120%100% 80%                              30% reduction                              in co...
Buying Decisions aremoving from the CIOto C-Suite and the Lineof Business Heads                          12
As the CIO’s budgets shrink, Line ofBusiness (LOB) Execs are makingtechnology buying decisions● LOBs build projects like “...
The cost of product development has gone down significantly!                             TraditionalTeam                  ...
If it costs less to build a product …● Different kind of products will be built.● Different kinds of people will invest to...
Data on the                   cloud is                   enabling new                   data-centric                   bus...
We live in a world of apps.Apps, apps everywhere!February 3, 2012              17
Enterprise Value is Shifting to Data                                                                                    Da...
There will be a hierarchy of apps with  different price points; all available on a  pay-per-use business model.     Task/D...
India:                     the source                         and                     the market                   for inn...
Cloud computing   is an excellent  opportunity for    Healthcare   Tourism     Education           Indian     Industries t...
Comments?                       Anand Deshpande                    anand@persistent.co.in10 September 2012                ...
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Presentation from IBM/RTL in Pune

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Presentation that I used at the IBM cloud conference in Pune.

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Presentation from IBM/RTL in Pune

  1. 1. Will Cloud Computing erode the IT Services Business? Anand Deshpande September 201210 September 2012 1
  2. 2. anand@persistent.co.in Coming to New Delhi, India 201610 September 2012 2
  3. 3. Cloud Computing is imminent …● It will be driven by economics ... … about 30% reduction in costs! – Cost of infrastructure – Cost of management of infrastructure 3
  4. 4. By operating at scale, improving utilization,simplifying operations, standardizing,increasing reliability, reducing energy and cooling • hardware costs can be reduced 33-70 percent • maintenance costs can be reduced up to 50 percent • support costs can be reduced by as much as 33 percent • floor space/facility costs can be reduced 33-50 percenthttp://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html February 3, 2012 4
  5. 5. Cloud computing will seemainstream deployments in thesecond half of 2013.● Cloud leaders (pre-2010) … Amazon, Salesforce.com● Major cloud strategy announcements in 2012 from – Microsoft, IBM, HP, Dell, EMC/Cisco – Vmware – Oracle, SAP10 September 2012 5
  6. 6. Cloud is about simplicity! February 3, 2012 6
  7. 7. Mobile devices are the de-factoconsumption device● BYOD is the hottest disruption in the enterprise.● Mobility is not just small screen. There is more. – Presence – Location – HTML5 – Task specific apps● Build for Mobile device first!10 September 2012 7
  8. 8. Cloud and Mobility will grow in tandem. They are interdependent!10 September 2012 8
  9. 9. Cloud computing will create jobs inIndia!10 September 2012 9
  10. 10. Really?If every CIO saves 30% from theirbudget … world’s softwarebusiness is significantly down! 𝑥 𝑖 > (𝑥 𝑖 − 𝜕 𝑖 ) 10
  11. 11. ADM business will bear the brunt120%100% 80% 30% reduction in cost! 60% Business Apps 40% ADM 20% Packaged Software Infrastructure 0% Pre Cloud Post Cloud 11
  12. 12. Buying Decisions aremoving from the CIOto C-Suite and the Lineof Business Heads 12
  13. 13. As the CIO’s budgets shrink, Line ofBusiness (LOB) Execs are makingtechnology buying decisions● LOBs build projects like “products” rather than IT Services – Incremental, agile,● Will consider new set of vendors … opportunity for different set of vendors.10 September 2012 13
  14. 14. The cost of product development has gone down significantly! TraditionalTeam Ways Size On the Cloud Time 14 Period
  15. 15. If it costs less to build a product …● Different kind of products will be built.● Different kinds of people will invest to build products● If product development costs are not significant, do I need to go offshore at all?10 September 2012 15
  16. 16. Data on the cloud is enabling new data-centric business models.February 3, 2012 16
  17. 17. We live in a world of apps.Apps, apps everywhere!February 3, 2012 17
  18. 18. Enterprise Value is Shifting to Data Data Apps ERP Database Operating SystemsMainframe 197510 September 2012 1985 1995 2006 2013 18
  19. 19. There will be a hierarchy of apps with different price points; all available on a pay-per-use business model. Task/Device Specific AppsBusiness Process Specific Apps TraditionalApplications will Aggregate Enterprise Data Data Public Data be commoditized on the cloud. February 3, 2012
  20. 20. India: the source and the market for innovationFebruary 3, 2012 20
  21. 21. Cloud computing is an excellent opportunity for Healthcare Tourism Education Indian Industries to collaborate and Retail Logistics Research disrupt 21
  22. 22. Comments? Anand Deshpande anand@persistent.co.in10 September 2012 22

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