balaka aggarwal - cloud computing & saas: market evolution and implications - interop mumbai...
DESCRIPTION
SaaS / 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.TRANSCRIPT
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