balaka aggarwal - cloud computing & saas: market evolution and implications - interop mumbai 2009
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DESCRIPTIONSaaS / Cloud Computing is not a fad -- it marks a fundamental market shift in the global IT industry. Understanding how to leverage SaaS/Cloud Computing – or at least how to manage it – is a new business imperative. This session will present ten key realities and possibilities around embracing Cloud Computing that businesses need to know. It will also paint a bird’s eye view of Cloud Computing technologies and its business proposition for both end users and vendors. Further, the session will help provide an overview of the latest demand-side trends, vendor offerings and an industry roadmap for the next few years.
- 1. Interop Mumbai 2009 Cloud Computing and SaaS Market Evolution and ImplicationsBalaka Baruah AggarwalSenior Manager, Software ResearchSpringboard Research
2. CIO CHALLENGES 2009 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 IncreasedEfficiencies 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 2 3. SAAS VERSUS CLOUD COMPUTING SETTING THE STAGE A collection of IT-enabledresources and capabilities that can be delivered via the internet as a service 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 3 4. SAAS MARKET GROWTH REMAINS STRONG $2,50090% SaaS growth is 3-4x on- 80% premise SW growth $2,00070%60% The Cloud provides $1,500additional boost to the 50%40% SaaS model $1,000 30% CRM & Collaboration 20%$500 lead, but SaaS apps are 10% blossoming$0 0%20082009 2010 20112012 IT Market Size SaaS Growth SW Growth 4 5. SLOWDOWN TRIGGERS SAAS INTEREST Q: Has the economic slowdown increased your interest in SaaS? N: 487 APAC/121 IndiaANZYes, 42%APAC Yes, 33%IndiaYes, 30% 0% 10%20% 30% 40%50% Source: Springboard Research, 06/20095 6. SAAS USAGE IN INDIA Q: What SaaS application are you currently using? N: 73 SaaS adopters* ERP 33%CRM 23% Other19%HR/Payroll/WFM18% Web Conf./IM/Collab. 15% Email3% 0% 10% 20%30% 40% Source: Springboard Research, 06/2009; *Numbers do not add up to 100 as respondentsmentioned multiple SaaS applications6 7. SAAS DRIVERS IN INDIA Q:What was the primary reason for adopting SaaS? N: 73 (SaaS adopters)Lower cost of ownership 35% Convenience 22%Addresses a specific biz need 11%Scalability10%Accessibility 8% Other7%Zero/Low maintenance 4%Corporate decision 3%0%10%20% 30% 40% Source: Springboard Research, 06/20097 8. WHY CLOUD COMPUTING.Focus on the forest. Business is interested in processes andinformation Not technology, applications or infrastructure IT is a means to an end, not an end initself The service being consumed is ultimately all that matters Everything else is simply part of the plumbing From a business standpoint, IT has noinherent value at all All value lies in how effectively IT is applied to help meet business objectives.not the trees!!! 8 9. . WHY NOW??? 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 broadband9 10. CHALLENGES TO OVERCOME Security Data Governance Regulatory compliance Integrity, Recovery, Privacy,Segregation Unauthorized access Sovereignty Laws andRegulations IntegrationManagement Local/Remote Integration Performance management and scenariosmonitoring Cloud to Cloud issues Ensuring Service Level Dynamic resourcesAgreements (SLAs)10 11. In Summary. In Summary. Prepare for the Economic Recovery Now If you dont, 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!11 12. Thank Youbaggarwal@springboardresearch.com