- Cloud computing provides opportunities for Thai ICT companies through software and platform services that can reach customers globally with lower costs. Case studies show how companies like FedEx use private, public and hybrid cloud models. - The cloud impacts Thai industry by increasing demand for mobile and cloud applications and shifting workforces to internet-based skills. ICT providers can offer innovative cloud services for SMEs. - To seize opportunities, Thailand must improve ICT skills, cooperate across ASEAN, and make the country attractive for skilled labor through infrastructure, wages and a business-friendly environment. Cloud computing presents opportunities if Thai companies prepare adequately for AEC 2015's more competitive landscape.

1. Software Business Opportunities
with Cloud Computing Model
By Pirasan Punyagupta
President
Thai Software Export Promotion Association (TSEP)
At BOI Fair
9 January 2012

2. Agenda
• About Cloud Computing
• Case studies
• Impact to Thai ICT industry
• Opportunity or Challenges
• How should we prepare

3. About Cloud Computing
Characteristics
On demand, self service
Multiple network access Delivery
channels & devices
Software (application ) as a
Pooled resources Service (SaaS)
Flexibility for buyers Platform as a Service Deployment
Pay per use (Paas) Private Cloud
Infrastructure as a Service Public Cloud
(IaaS)
Hybrid Cloud
Community Cloud

4. Cloud Computing Characteristics
Source: Wikipedia

5. Cloud Deployment
Software applications
and device interface
Process, solution design,
Development tools, Testing tools
CPU, Storage, O/S, Bandwidth
DB, middleware, integration
Source: Wikipedia

6. Cloud Computing Example
Software applications
and device interface
Process, solution design,
Development tools, Testing tools
CPU, Storage, O/S, Bandwidth
DB, middleware, integration
Source: The Bick Group

7. Cloud Deployment
Source: Wikipedia

8. About Cloud Computing
• Motivation for solution providers
– Reduce implementation time/cost
– Reduce on-premise support costs / personnel
– Easier version control, upgrade, maintenance
– Application available on multiple devices / channels
– Provide service beyond borders

9. Cloud Computing Delivery Models

10. ICT support cost model
Traditional On-Premise
Costs for ICT Support
Cloud Computing
Costs for ICT Support
Source: The Bick Group

11. Where does it fit in the enterprise
– Straight forward business process
– Independent, low security data
– Require mobility / instant communication
– Cross border activities
Cloud
Computing
Enterprise Architecture
Architecture

12. For SME / Startups
– Use service / applications with low start up costs
– No need to own hardware
– Try & buy with many payment options
– Self service (for payment, setup, etc.)
– Anyone can provide / purchase services on Cloud
– Enable to do business virtually anywhere

13. SAMPLE CLOUD COMPUTING
INNITIATIVES FOR ENTERPRISE/SME

14. Case studies 1
• Taiwan SME administration
• Vision
– Based on IT hardware manufacturing leadership, transform
industry to Cloud Computing solution provider
– Develop Government (G-Cloud), enterprise, consumer
clouds for innovative service solutions
• Strategy
– Supply side: Develop integrated cloud computing value
chain for manufacturing, retail and government services
– Demand side: Drive government usage & SME adoption

15. Case studies 1
• Solution Approach
– Model (A) Private Cloud Appliance for Enterprise
• Servers, O/S, database, storage, middleware, portals
• Hosted in data center or Enterprise environment
• Provide variety “Catalog” of software applications
– Model (B) Hosted Private Cloud
• For small business / startups
• Hosted in data center
• Package provides solutions for CRM, ERP, accounting, call center,
etc.

16. IMPACT ON THAI ICT INDUSTY

17. Impact on Thai ICT Industry
• For ICT Enterprise users
– Enterprise will need more cloud applications to stay
competitive, reduce costs & enhance customer satisfaction
– Movement of non-sensitive data onto the clouds
– More mobility solution with smart phone / tablets
– More cloud solution will come in the form of small
applications on mobile phones and tablets

18. Impact on Thai ICT Industry
• For Software SME & ICT solution providers
– Need to offer the right mix of enterprise & cloud solutions
– Quick to respond to market demands
– Provide solution for mobile platforms
– Workforce shift to platforms on mobile & Internet
– Prepare for AEC2015 and overseas competitors

19. What fits the Cloud Model
Fit for Cloud Model Not fit for Cloud Model
Process, applications and data are Process, applications and data are
mostly independent coupled or complex
Points of application & data integration Points of application & data integration
is well defined is not well defined
Lower security level is acceptable Require high level of security or privacy
Internet / Web / mobile is the desired Application requires special interface
channels & platform
On site support cost is an issue On site support required
New applications Legacy applications

20. BRIEFLY ON AEC 2015

21. AEC is about Economic Integration
Source: SCB Economic Intelligent Center “Insight“ Feb 2011

22. Consensus among Economists
• Quick changes
– Corporate regulations & ceiling on ownership
– Tax regulations
– More movement of investment funds

23. Ownership up to 70% share
in Service Business
Source: SCB Economic Intelligent Center “Insight“ Feb 2011

24. Current Foreign % Ownership in
Service Business in Thailand

25. Consensus among Economists
• Slow changes
– Cooperation between domestic & multi-national
ICT SMEs, universities, technical research, etc.
– Movement of skilled labors
– Wages for ICT professionals

26. Wages for Thai workers has been “FLAT”
Source: SCB Economic Intelligent Center “Insight“ Feb 2011

27. Outsourcing Ranking
Source: www.sourcingline.com

28. OPPORTUNITIES / THREATS

29. Opportunity or Threats
• Market is larger, but more competitors
• More threats from overseas, but opportunity to expand
overseas as well
• For Thailand, very difficult to recruit & retain ICT
professional & staff
• Very few dominant, capable Thai ICT companies
• Biggest threat is creative “Brain Drain”

30. Opportunities
• Ability to provide IT solution through Cloud Computing
Service model without borders with minimal support costs

31. Opportunities for ICT Users
• Users of Cloud Applications can improve productivity,
reduce IT costs and reach more customers :
– Hybrid / public cloud provide tools for sales force, staff
– Public cloud for customers, providing self service such as
check order and payment status
– Available for Web / mobile phones access
– Centralized control

32. Case studies 2
• FedEx Private Cloud - IaaS
– Runs in 200 order fulfillment centers worldwide
– Database to manage inventory, shipment status, etc.
• FedEx Private Cloud - PaaS
– Manages service plans
– Forecasts shipment at all locations
– Optimizes courier routing

33. Case studies 2
• FedEx Hybrid Cloud - SaaS
– Sales force automation & sales tools
– Mobile solution to provide latest information & status
• FedEx Cloud Solutions for SME
– Provide documents necessary for shipment
– Tracking, shipment, invoice, payment
– Online payment solutions

34. Opportunities for ICT Providers
• Small software firms have opportunities to match
larger software firms utilizing Cloud Model:
– Innovative products good enough for many SMEs
– Quick development and responsive to demand
– Reach global enterprise through broadband Internet / 3G
– Reach end user consumers worldwide via mobile devices
– Minimal set up and support costs & self service

35. Case 3: CT Asia Call Center on Cloud
To virtual Call Center
Transform Traditional Where operators can
Call Center / CRM provide service with
Internet & mobile phone
Now anyone can have call center to serve their customers

36. WHAT TO PREPARE

37. Improve ICT Competency
– Understand Cloud model and its impact
– Improve skills, expertise for ICT personnel
– Training , coaching, certification
– Improve development standard & process
– Language training
– Equip small, creative, agile project team with tools and
resource necessary to bring product to market
– Get yourself known with modern marketing methods

38. Cooperation & Networking
– Among Thai SME & ASEAN SMEs
– Be part of regional / global partnerships
– Local partner still important
– Understand target country rules & regulations
– Learning from business success (or failure) cases, be
careful about the hype

39. Make Thailand a better place to live & work
– Friendly business & political environment
– Laws and regulations that make sense
– Improve IT & telecom infrastructure
– Decent wages & low operating costs for SME
– Attract & maintain skill labor with incentives
– Better emergency & crisis management

40. Thank You