6. On Cloud Computing "It's stupidity. It's worse than stupidity: it's a marketing hype campaign. Somebody is saying this is inevitable--and whenever you hear somebody saying that, it‘s very likely to be a set of businesses campaigning to make it true.” - Richard Stallman, Father of the Free Software Movement
7. “ The interesting thing about cloud computing is that we’ve redefined cloud computing to include everything that we already do... The computer industry is the only industry that is more fashion-driven than women’s fashion. .. It’s complete gibberish. It’s insane. When is this idiocy going to stop? - Larry Ellison, CEO Oracle, Sep 2008
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9. Benefits of Cloud Computing Source: IBSG, 2009 Source: IBSG 2009 BENEFIT COMMENT Cost Savings Organizations can reduce or eliminate IT capital expenditures and reduce ongoing operating expenditures by paying only for the services they use and, potentially, by reducing the size of their IT staffs. Ease of Implementation Without the need to purchase hardware, software licenses, or implementation services, an organization can implement cloud computing rapidly. Flexibility Cloud computing offers more flexibility (often called “elasticity”) in matching IT resources to business functions than past computing methods. It can also increase mobility of staff by allowing them to access business information and applications from a wider range of locations and/or devices. Scalability Organizations using cloud computing need not scramble to secure additional hardware and software when user loads increase, but can instead add and subtract capacity as the network load dictates. Access to Top-End IT Capabilities Particularly for smaller organizations, cloud computing can allow access to hardware, software, and IT staff of a caliber far beyond that which they can attract and/or afford for themselves. Redeployment of IT Staff By reducing or doing away with constant server updates and other computing issues, and eliminating expenditures of time and money on application development, organizations may be able to concentrate at least some of their IT staff on higher-value tasks. Focusing on Core Competencies Arguably, the ability to run data centers and to develop and manage software applications is not necessarily a core competency of most organizations. Cloud computing may make it much easier to reduce or shed these functions, allowing organizations to concentrate their efforts on issues central to their business such as (in government) the development of policy and design and delivery of public services. Sustainability The poor energy efficiency of most existing data centers, due to substandard design or inefficient asset utilization, is now understood to be environmentally and economically unsustainable. Cloud service providers, through leveraging economies of scale and their capacity to managing computing assets more efficiently, can consume far less energy and other resources than traditional data center operators.
10. User Attitudes (Scale: 1 = Not at all important 5 = Very Important) Q: Rate the benefits commonly ascribed to the 'cloud'/on-demand model Source: IDC Enterprise Panel, 3Q09, n = 263 54.0% 63.9% 64.6% 67.0% 68.5% 75.3% 77.7% 77.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Seems like the way of the future Sharing systems with partners simpler Always offers latest functionality Requires less in-house IT staff, costs Encourages standard systems Monthly payments Easy/fast to deploy to end-users Pay only for what you use % rating 3, 4 or 5
13. Public IT Cloud Services Forecast Worldwide IT Revenue* by Consumption Model 2009, 2013 ($B) Source: IDC, March 2010 * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via both traditional product model and the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges 45 17 2009 2013 Worldwide IT Revenue ($ billion) 359 416 Public IT Cloud Services CAGR 26% 45 17 359 416 5% 10% 0 10 20 30 40 50 60 45 17
14. Public IT Cloud Services Forecast Worldwide IT Revenue* by Consumption Model 2009, 2013 ($B) Source: IDC, March 2010 * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via both traditional product model and the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges 45 17 2009 2013 Worldwide IT Revenue ($ billion) 359 416 Public IT Cloud Services 45 17 0 100 200 300 400 500 600 Traditional IT Products CAGR 26% 4% 359 416 5% 10%
15. Growth Impact > Revenue Impact 497 463 445 450 455 460 465 470 475 480 485 490 495 500 2012 2013 Worldwide IT Revenue ($ billion) 23% 77% Source: IDC, March 2010 Sources of Incremental IT Revenue Growth in 2013 Public Cloud vs. Traditional Net new IT growth = $34 billion Public IT Cloud Services growth Traditional IT Product growth
16. Cloud Computing Market in India CURRENT PENETRATION 2009 Medium Large Figures in % The public cloud computing market is $ 66.7 mn in 2009 and which expected to grow by CAGR 40% for the next 5 years
18. Cloud Definition http://www.csrc.nist.gov/groups/SNS/cloud-computing/index.html Private Public Hybrid Deployment Models Service Models Software as a Service (SaaS) Platform as a Service (PaaS) Infrastucture as a Service (IaaS) Essential Characteristics On-Demand Self Service Broad Network Access Resource Pooling Rapid Elasticity Measured Service
23. User Challenges Q: Rate the challenges/issues of the 'cloud'/on-demand model (Scale: 1 = Not at all concerned 5 = Very concerned) Source: IDC Enterprise Panel, 3Q09, n = 263 76.0% 76.8% 79.8% 80.2% 81.0% 82.9% 83.3% 87.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Not enough ability to customize Hard to integrate with in-house IT Bringing back in-house may be difficult Lack of interoperability standards On-demand paym’t model may cost more Performance Availability Security % rating 3, 4 or 5
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