Bootstrapping Storage and Server EngineeringService business

Prepared by

Soumen Sarkar

July, 2014

Whose Fund we are after

Schematic Organization View and fund source

CEO

R&D head

Product Engineering

Product Support

CIO

IT Spending

Engineering Service Product Support ServiceIT Software and Support

service

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Digital Storage Systems- a high level view • Storage media

– SSD, HDD [SCSI,SATA,SAS] & Tape

• Storage Server

– DAS, NAS, SAN

– Disaster Recovery Solution

• Synchronous Replication

• Asynchronous Replication

– Backup Application

– Storage provisioning and Managing Software

• Storage and Compute Cloud

– Virtual Servers and Storage

– Software to provision, monitor Virtual Servers

– Data centre management

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Storage Array OEMsStorage System vendors

and Gartner Magic Quadrant

EMC, NetApp, IBM, Dell,HP, Nimble Storage have

captive offshore engineering centres in Bangalore

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Targeting CIO’s budget

Moving up the Value-chain

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Global IT Spending

• Gartner estimates 2014 IT spending at $3.7 trillion

• Data centre system spending marginally increase by 0.4% to $140 billion

• Major share of spending is moving to Cloud

• IT Service revenue increase by 3.8%

"With IoT and digital business in general, you've got a lot more data out there that

needs to be collected, stored and analysed.“ - Richard Gordon, Gartner

managing VP

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Service Opportunities

• IBM,Accenture,Infy, Wipro etc. offer managed IT service where the customer outsource full/a part of IT Infrastructure and software management to the vendor

– Both T&M and fixed budget model work

– Service SLA is maintained in terms of service tickets

– Highly mature [IBM case study with KPI]

• There are many smaller IT service players who offer to manage IT for SMBs

• With couple of senior IT veterans, service can be designed and run with junior engineers

• Target smaller players

– > $20K and <$500K annual budget

– Once bootstrapped, profitability and sustainability higher

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Cloud Services Model

• IaaS [Infrastructure as a Service]

– Basic type of cloud service

– Only provides bare metal service with hardware

• PaaS [Platform as a Service]

– Linux / windows hosting with storage

– Virtual servers

• Software-defined Storage [HP]

• Software-defined Data Centre [Vmware]

• SaaS [Software as a Service]

– Salesforce CRM

– Business Analytics on Cloud

– Google SMB package

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Capitalizing on SaaS

• Global SaaS market 2014– Forrester predicts that “software will see the strongest

growth rate of any IT category in 2014 at 7.8%. The big contributors to software growth will be software as a service (SaaS), mobile app development, business intelligence, analytics and human-based collaboration software”

– Gartner forecasts the SaaS market will grow at 20% through at least 2020, almost 3 times as fast as software overall

• Salesforce represents the shining star of possibility, consistently growing at more than 30%

• Indian SaaS market– The public cloud services market in India is on pace to grow

32.2 percent in 2014 to total $556.8 million, an increase from 2013 revenue of $421 million – Gartner, April 28, 2014

– Spending on software as a service (SaaS) will total $220 million in 2014, growing 33.2 percent from last year.

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Productized Service Opportunity

• Building SaaS

– Using open-source component one can build and deploy SaaS with very low investment

– Must focus on a niche solution

– High extensibility

– Horizontal scalability

• Building customer’s own private cloud

– Many want cloud’s flexibility but without losing on control and security

– Provide integrated view of unstructured data in the organization

– Plethora of open-source components

• Linux KVM, OpenStack, Nagios, Eucalyptus

– Develop skill by running pilots for internal use

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Providing SaaS-based design service

• Urbanization has opened up opportunity of IT enabling Services

• IT penetration in Indian service sector is still low

– There are many local services which could scale up with online process handling

• Build a SaaS framework

– Use Open source software components

– Framework should work with public cloud

– Make personalization easy and fast

– E.g.. Mobile backend as a Service for app developers

• Business Process As a Service [BPaaS]

– $75 million [2014], projected $204 million [2018]

– Help customers IT enable their Services

– Enable them with last mile reach [mobile App]

– Target the segment where competition from big

SaaS vendors do not exist

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A summary slide(..finally!)

• Bootstrap Storage engineering service with a small investment

– Use regression testing, as beachhead segment

– Identify products that are in sustenance and pitch to reduce engineering cost by taking engineering support ownership

• Build full SaaS backend capability

– Provide SaaS design service

– Build in-house SaaS

– Provide support for customer’s SaaS

– There is huge growing market both in India and outside

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“The only way to beat the competition is to stop trying tobeat the competition.To fundamentally shift the strategy canvas of anindustry, you must begin by reorienting your strategicfocus from competitors to alternatives, and fromcustomers to non-customers of an industry. As you shiftyour strategic focus from current competition toalternatives and non-consumers, you gain insight intohow to redefine the problem the industry focuses on andthereby reconstruct buyer value elements that resideacross industry boundaries”– Blue Ocean Strategy

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Parting Thoughts…