Private Cloud Market in India

Transcription

1 Private Cloud Market in India EMC-Zinnov Whitepaper 7/19/2011 Zinnov Management Consulting 1

2 IT industry goes through periodic transformations 3 2 Internet Revolution 1 Mainframe Revolution A few hundreds PC Revolution ~1.5 million PCs ~0.4 billion Internet Users ~1.8 billion Internet Users ~1.5 billion PCs/ Laptops ~10,000 Mainframes /19/2011 Zinnov Management Consulting 2

3 Cloud computing is the 4th wave a perfect storm Technology innovation Delivery Model innovation Business Model innovation 7/19/2011 Zinnov Management Consulting 3

4 Cloud is now starting to expand its horizons CIO Cloud Computing Survey (n=240 CIOs) Cloud Benefits 27% Reduced Total Cost of Ownership Reduced IT Staffing/ Administration Cost 73% Better IT and Line of Business Alignment Increased Flexibility & On Demand Scalability Favoring Cloud Adoption Not on Technology Road Map Frequent Software Updates Better Productivity 7/19/2011 Zinnov Management Consulting 4

5 Every large tech company is now claiming to be a cloud company SAP EMC IBM We are Cloud Focused Cisco RedHat Massive investments in R&D New partnerships and new competition Large number of M&As related to cloud Oracle Microsoft Over 1,500 start ups providing cloud products and services CA 7/19/2011 Zinnov Management Consulting 5

6 Cloud is the most popular category in the start-up phase Cloud Start-Ups in the Information Week Top 50 Tech Start Up List Company Appirio Central Desktop Egnyte Elastra Expresso Nirvanix RightScale Skytap Spigit Spring CM 3Tera Zscaler Technology Focus Cloud Integrations & Apps SaaS Collaboration Cloud File Server Cloud Resource Planning SaaS Excel Collaboration Cloud Storage Cloud Management Platform Cloud Virtual Software Testing SaaS Innovation Management SaaS Content Management Public/Private Cloud Services SaaS Companies Market Structure (USD MM) Majority of the acquirers are nonpure play SaaS companies who want to venture into the SaaS space Expon. (2009) Number of M&A Deals In SaaS Long Tail 0 SaaS Web Security Q109 Q209 Q309 Q409 Q110 7/19/2011 Zinnov Management Consulting 6 20 To access full report, Please send 13 an to [email protected] 10

7 Public cloud challenges drive private cloud growth Worldwide Cloud Computing Revenue Breakup by Delivery Model, 2010 Challenges of Public Cloud Security Public Cloud 17% Private Cloud 83% Vendor Lock In Location of Data Center Total Cloud Computing Market = US$ Bn Corporate Governance 7/19/2011 Zinnov Management Consulting 7

8 Indian domestic market also provides ample opportunities Fastest IT Spending Growth 20.7% (FY11), China 12% Fastest growing mobile markets 20 Mn additions per month 500 million people in middle class range earning in the range of $10,000 to $57,000 per year SMBs account for 45% of manufacturing output and 47% of the total workforce 7/19/2011 Zinnov Management Consulting 8

9 Global cloud companies are looking at India for growth Illustrative List of Key Players (non-exhaustive) Focus of Top Global 150 Cloud Computing Companies Not Focusin g on India 42% Focusin g on India 58% Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Cloud Technology Enablers Salesforce.com WebEx NetSuite RightNow Oracle Force.com Google Microsoft Zoho Joyent Amazon Web Services Rackspace IBM Oracle (Incl. SUN) Microsoft EMC RedHat Microsoft Citrix Google Yahoo Symantec HP VMWare NetApp CA Symantec McAfee Zoho TrendMicro IBM Hardware Providers Dell HP 7/19/2011 Zinnov Management Consulting Cisco Huawei 9 Alcatel Lucent Nokia Siemens Networks

10 CIOs now perceive cloud computing as the way forward CIOs View on Cloud Computing as an Integral Part of the Organizations IT Strategy Has Your Organization Evaluated Cloud Computing Basic Testing, 22% Agree, 46% Strongly Agree, 33% Extensively, 32% Planning to Evaluate Soon, 36% Strongly Disagree, 0% Disagree, 3% Not Sure, 18% No Plans, 10% 7/19/2011 Zinnov Management Consulting 10

11 Increased number of CIOs will use cloud going forward 58% Willingness to Use Cloud Services 38% 36% 47% To access full report, Please send an to 39% 19% 21% 10% 4% 9% Sample Size: 100 Software as a Service (SaaS) Infrastructure as a Service (IaaS) & Private Cloud Business Process Platform as a Service (PaaS) Willingness to use cloud services 2011 Willingness to use cloud services 2015 Can't Say 7/19/2011 Zinnov Management Consulting 11

12 Private cloud deployments could result in potentially large savings Private Cloud ROI Compared to Legacy IT Up to 50% Up to 50% IT Services Internal Labor Software Hardware Legacy IT Private Cloud Facilities & Fabric Telecom & Networking 7/19/2011 Zinnov Management Consulting 12

13 A multi-billion dollar market potential to unfold in India Indian Domestic Cloud Computing Market, 2010 $5 Cloud Market in India (US$ Billion), Private Public $4 $0.9 Public Cloud 22% Private Cloud 78% Total Cloud Services Market = US$400 Mn $3 $2 $1 $0 $0.2 $0.1 $0.1 $0.9 $0.3 $0.5 $0.4 $1.5 $0.6 To access full report, Please send an to [email protected] $2.3 $ Cloud Spend as %age of Total IT Spend 1.4% 2.0% 2.9% 4.2% 5.8% 8.2% 7/19/2011 Zinnov Management Consulting 13

14 Vertical maturity for cloud adoption is increasing Vertical Total IT Spending (US$ Mn) Total Cloud Spending (US$ Mn) Cloud Spend as Percentage of IT %age Contributio n in Total Cloud Market in India IT/ITeS $333 $ % 19% Telecom $1,904 $71 3.8% 18% BFSI $3,335 $60 1.8% 15% Manufacturi ng $8,662 $56 0.6% 14% Government $4,619 $48 1.0% 12% Energy, Power, Utility $4,710 $28 0.6% 7% Healthcare $308 $24 7.7% 6% Retail $107 $5 4.3% 1% Others $1,858 $33 1.8% 8% 7/19/2011 Zinnov Management Consulting 14

15 However, examples of private cloud adoption are plenty in India Customer Fortis Healthcare KPIT Cummins Viva Infomedia Private Cloud Vendor Religare Technova and HCL Vmware, Cisco, EMC NetMagic Wipro -- Jammu and Kashmir Govt. Madhya Pradesh Govt. Insights Own private cloud to maintain and easily access the electronic patient records from any Fortis center, provide telemedicine to remote locations and lower its maintenance costs KPIT Cummins has deployed the Vblock Platform for a Virtual Desktop Interface (VDI) implementation to serve 1,200 users across India. The deployment will help enable KPIT to scale its infrastructure and at the same time enable employee access to their hosted virtual desktop from anywhere and over a broad range of end-user devices Provided a cloud computing option with increased bandwidth and server space. In 2009 Infomedia volumes were around 20 lakhs SMSs a month whereas now with the same hardware they have optimized code and now it is 20 crores per month Wipro has installed more than a 1,000 servers in its internal private cloud that has helped them reduce the cost by 60% and energy consumption by 30% J&K Govt. is utilizing the computing resources of the MP Govt. for its e-governance programme. This utilization of the private cloud has helped J&K Govt. save almost 50% of the budget allocated for the datacenter installation Orissa Govt. IIT- Delhi Spanco Progressive Infotech Setting up datacentres for the Orissa Govt. These data centres will consolidate services, applications and infras to deliver government-to-government, consumer and business services Set up a private cloud which enables it to consolidate its entire departments into a common account. The cloud would also help allocate computing resources based on the requirement Yes Bank is prioritizing on implementing it own private cloud and plans to move all its applications Yes Bank -- 7/19/2011 to the private cloud Zinnov by the Management end of 2011 Consulting 15

16 The skilling and re-skilling market is expected to grow faster in India Employment Generated Due to Private Cloud Market Growth in India 100,000 80,000 60,000 Direct Jobs Indirect Jobs 96,250 61,250 As cloud computing becomes critical to the IT strategy of enterprises, the skilling and re-skilling market is expected to grow faster in India Banking on this trend, premier institutes such as IIIT Delhi, IIIT Hyderabad are offering specialized courses on cloud computing as a part of their curriculum 40,000 Aptech has also introduced courses on Cloud computing ranging from basic course (level 100) to advanced course (level 300) 20, ,065 6,405 3,660 35, Companies such as RedHat, Vmware, Cisco offers courses for certification in virtualization Microsoft, salesforce.com etc. have also partnered with NIIT to provide cloud training and courses 7/19/2011 Zinnov Management Consulting 16

17 Indian can become a leader in the cloud technologies Key recommendations to CIOs Increase awareness about the various offerings in the market to chose the right cloud solution Identify specific areas for cloud investment and have a clear long term roadmap for implementation Look beyond the cost savings and focus on IT as an enabler for business growth and flexibility 7/19/2011 Zinnov Management Consulting 17

18 Indian can become a leader in the cloud technologies Key recommendations to Technology vendors Develop robust ROI models that customers in India are able to relate to Create consortium approach to take the best-in-class solutions from various technology companies together to market Help create awareness for regulatory and policy changes that will increase adoption of cloud computing models 7/19/2011 Zinnov Management Consulting 18

19 Thank You 7/19/2011 Zinnov Management Consulting 19