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

1. Will Cloud Computing erode the
IT Services Business?
Anand Deshpande
September 2012
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2. anand@persistent.co.in
Coming to
New Delhi, India
2016
10 September 2012 2

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. 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
percent
http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html
February 3, 2012 4

5. Cloud computing will see
mainstream deployments in the
second 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, SAP
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6. Cloud is about
simplicity! 
February 3, 2012 6

7. Mobile devices are the de-facto
consumption 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!
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8. Cloud and Mobility will grow in
tandem. They are interdependent!
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9. Cloud computing will create jobs in
India!
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10. Really?
If every CIO saves 30% from their
budget … world’s software
business is significantly down!
𝑥 𝑖 > (𝑥 𝑖 − 𝜕 𝑖 )
10

11. ADM business will bear the brunt
120%
100%
80%
30% reduction
in cost!
60%
Business Apps
40% ADM
20% Packaged Software
Infrastructure
0%
Pre Cloud Post Cloud
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12. Buying Decisions are
moving from the CIO
to C-Suite and the Line
of Business Heads
12

13. As the CIO’s budgets shrink, Line of
Business (LOB) Execs are making
technology 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.
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14. The cost of product development has
gone down significantly!
Traditional
Team Ways
Size
On the
Cloud
Time
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Period

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?
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16. Data on the
cloud is
enabling new
data-centric
business
models.
February 3, 2012 16

17. We live in a world of apps.
Apps, apps everywhere!
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18. Enterprise Value is Shifting to Data
Data
Apps
ERP
Database
Operating
Systems
Mainframe
1975
10 September 2012 1985 1995 2006 2013 18

19. There will be a hierarchy of apps with
different price points; all available on a
pay-per-use business model.
Task/Device
Specific Apps
Business Process
Specific Apps
Traditional
Applications will Aggregate Enterprise
Data Data Public Data
be commoditized
on the cloud.
February 3, 2012

20. India:
the source
and
the market
for innovation
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21. Cloud computing
is an excellent
opportunity for Healthcare Tourism Education
Indian
Industries to
collaborate and Retail Logistics Research
disrupt
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22. Comments?
Anand Deshpande
anand@persistent.co.in
10 September 2012 22