balaka aggarwal - cloud computing & saas: market evolution and implications - interop mumbai...
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Interop Mumbai 2009
Cloud Computing and SaaS
Market Evolution and Implications
Balaka Baruah Aggarwal
Senior Manager, Software Research
Springboard Research
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
CIO CHALLENGES – 2009
2
3
SAAS VERSUS CLOUD COMPUTING –
SETTING THE STAGE
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
A collection of IT-enabled resources and capabilities that
can be delivered via the internet as a service
4
SaaS growth is 3-4x on-premise SW growth
“The Cloud” provides additional boost to the SaaS model
CRM & Collaboration lead, but SaaS apps are blossoming
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
$0
$500
$1,000
$1,500
$2,000
$2,500
2008 2009 2010 2011 2012
IT Market Size SaaS Growth SW Growth
SAAS MARKET GROWTH
REMAINS STRONG
5
SLOWDOWN TRIGGERS SAAS
INTERESTQ: Has the economic slowdown increased your interest in SaaS? N: 487 APAC/121 India
Source: Springboard Research, 06/2009
Yes, 30%
Yes, 33%
Yes, 42%
0% 10% 20% 30% 40% 50%
India
APAC
ANZ
6
SAAS USAGE IN INDIA
Q: What SaaS application are you currently using? N: 73 SaaS adopters*
Source: Springboard Research, 06/2009; *Numbers do not add up to 100 as respondents mentioned multiple SaaS applications
3%
15%
18%
19%
23%
33%
0% 10% 20% 30% 40%
Web Conf./IM/Collab.
HR/Payroll/WFM
Other
CRM
ERP
7
SAAS DRIVERS IN INDIAQ:What was the primary reason for adopting SaaS? N: 73 (SaaS adopters)
Source: Springboard Research, 06/2009
3%
4%
7%
8%
10%
11%
22%
35%
0% 10% 20% 30% 40%
Corporate decision
Zero/Low maintenance
Other
Accessibility
Scalability
Addresses a specific biz need
Convenience
Lower cost of ownership
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
Focus on the forest….
….not the trees!!!
WHY CLOUD COMPUTING….
8
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
…. WHY NOW???
9
Integration• Local/Remote Integration
scenarios
• Cloud to Cloud issues
• Dynamic resources
Data Governance• Integrity, Recovery, Privacy,
Segregation
• Sovereignty Laws and Regulations
Management• Performance management and
monitoring
• Ensuring Service Level Agreements (SLAs)
Security• Regulatory compliance
• Unauthorized access
CHALLENGES TO OVERCOME
10
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!
Thank You
baggarwal@springboardresearch.com
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