CLOUD COMPUTING S IMPACT ON OUTSOURCING IT SAURABH SHARMA TUCK 12

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1 CLOUD COMPUTING S IMPACT ON OUTSOURCING IT SAURABH SHARMA TUCK 12

2 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Licensing models and product development A typical transition model to cloud and opportunity generation Case Study : Infosys s approach

3 TRADITIONAL MODELS OF OUTSOURCING ARE CHANGING Developing and maintaining custom code Multi year contracts Time honored charging Traditional IT Teams Of Programmers and onsite system Integrator Cost advantage end-to-end service providers

4 CLOUD CHANGES THE OUTSOURCING MODEL No Onsite Code to install, maintain or develop No onsite Teams Of Programmers and system Integrator IT Now Part of working capital Short term contracts Volume based charging As-A-Service-Solution Standardized Services outsourcing entire process Ease of set up and cost benefits Cost advantage and Flexibility to choose best of breed applications

5 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Licensing models and product development A typical transition model to cloud and opportunity generation Case Study : Infosys s approach

6 WHAT KEY COMPETENCE WILL BE REQUIRED Industries and domain expertize more as a consulting partner Improved ability to innovate and Co-innovate Technical expertise as well as Business knowledge Business Alignment Product Development Risk handling Minimal volume commitments shift more risk to suppliers Dependence on customers business condition

7 OUTSOURCING VENDORS ARE DEVELOPING THESE COMPETENCE VIA Developing Consulting services Gather Industry Knowledge Pre-sales opportunity Marketing opportunity for thought leadership Engineering R&D team supplemented by more customer facing customization teams Integrated with consulting services Create Products and sell services Distributed application development Capability to rapidly deploy new products/ features Service guarantee Collaborative Innovative Trusted partners

8 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Team level changes : Licensing and product development A typical transition model to cloud and opportunity generation Case Study : Infosys s approach

9 LICENSING CHANGES Multi year contract Time honored charging Perpetual licensing One time fee Costs for maintenance, support Pay-as you-go model Value Based Usage based Subscription based Flexible Capped Under utilization Ineffective for future needs Shared risk of under utilization Vendors have incentive to develop new feature Redundant software purchases

10 DEVELOPMENT PROCESS CHANGES C U S T O M E R C U S T O M E R Consulti ng services Presales Aggrega tion Scalable Customized solution with price tracking Client management layer. Customization/ Branding teams Quality Assurance Release Branches Maintenance Code Sync R&D Development Team

11 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Team level changes : Licensing and product development A typical transition model to cloud and opportunity generation Case Study : Infosys s approach

12 A TYPICAL TRANSITION MODEL TO CLOUD Virtualize the infrastructure Shared Pool of network, storage, compute resources Increased Automation What is delivered, at what cost Less dependent on administrators, reliable Private Cloud Own data with in organizations Benefits of cloud with less scale benefits Hybrid Cloud Control over data and apps Cost effective, dynamic scaling Open architecture

13 PRIVATE CLOUD SETS STAGE FOR FUTURE REVENUE OPPORTUNITIES Virtualize the infrastructure Increased Automation Revenue Opportunity Consulting for transitioning to Cloud Be part of Private cloud and maintain IT with in the organizations Implementation partners for ex. Salesforce CRM, SAP ERP Private Cloud Hybrid Cloud Capability Development Solution development suitable for cloud architecture Gather Business and domains expertise Utilize the business process out sourcing skills and develop client- relationship IT is more agile and responsive to business needs

14 HYBRID/PUBLIC CLOUD Virtualize the infrastructure Increased Automation Revenue Opportunity Cloud based IT solutions and integration Consulting for Business process and industry expertize Maintain Private/Hybrid cloud of IT with is organization Implementation partners for ex. Salesforce CRM, SAP ERP BPAAS Private Cloud Hybrid Cloud Capability Development Developed products based on Business and domain expertise Develop client- relationship Service capabilities Collaborate with Scale out cloud providers (IAAS and PAAS) Develop own infrastructure

15 GLOBAL PUBLIC CLOUD MARKET Figure 3 Forecast: Global Public Cloud market Size, 2011 To 2020 The spreadsheet detailing this forecast is available online. $180 $160 $140 $120 Total public $100 cloud markets (US$ billions) $80 SaaS $60 $40 $20 PaaS $0 IaaS BPaaS ($) SaaS ($) PaaS ($) IaaS ($)

16 VIRTUAL PRIVATE CLOUD MARKET Figure 5 Forecast: Global Virtual Private Cloud market Size, 2011 To 2020 The spreadsheet detailing this forecast is available online. $70 $60 Dynamic BPO services $50 Total virtual private cloud markets (US$ billions) $40 $30 Dynamic applications services $20 $10 Cloud-based integration (CBI) Dynamic infrastructure services Dynamic BPO services ($) Dynamic applications services ($) Cloud-based integration (CBI) ($) Dynamic infrastructure services ($) $

17 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Team level changes : Licensing and product development A typical transition model to cloud and opportunity generation Case Study : Infosys s approach

18 INFOSYS AND CLOUD Positions itself as a Cloud Ecosystem Integrator Comprehensive services for the cloud Business Platforms An Eco-system of Partnerships

19 PROFESSIONAL SERVICES FOR THE CLOUD

20 INFOSYS EDGE BUSINESS PLATFORMS Line of Business Functional Platforms Vertical Platforms Bridge Platforms Across Business verticals, Supporting enterprise initiatives For Digital Consumers Social Edge Brand Edge Smarter organizations Talent Edge Source-to-pay Emerging Economies Wallet edge Trade Edge Specific requirements of specialized verticals Banking Retail Manufacturing Telecom Health Niche Industries at the confluence of verticals For ex. Travel Insurance product

21 PARTNERSHIP ECOSYSTEM 30+ cloud providers

22 INFOSYS MAP Customers ( Public Private Independent ) Integration Solution Providers Application developers Partnerships Scale Out cloud providers Owned Data center Risk mitigation Pricing Scale out providers Data Secrecy etc.

23 SUMMARY Cloud Covers Applications BPO services Infrastructure Platforms

24 Thank You

25 APPENDIX

26 SOURCES ATKEARNEY Building Flexibility into software Licensing Forrestor Clients And Vendors Weigh In On The Future Of Offshore Outsourcing Cloud Computing s Impact On Outsourcing Contracts Cloud Strategies Of The Leading Global IT Infrastructure Outsourcing Providers Evaluating Your Outsourcing Supplier s Cloud Strategy Global Business browser

27 INFOSYS BUSINESS DESCRIPTION Infosys Limited (Infosys), formerly Infosys Technologies Limited, is a global technology services company. The Company provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries. Its suite of business solutions includes business and technology consulting, custom application development, infrastructure management services, maintenance and production support, package enabled consulting and implementation including enterprise solutions, product engineering and lifecycle solutions, systems integration, validation solutions and cloud-based solutions and services. Through Infosys business process outsourcing (BPO), it provides business process management services, such as offsite customer relationship management, finance and accounting, and administration and sales order processing. The Company serves clients in financial services and insurance, manufacturing; energy, utilities, communications and services, retail, consumer packaged goods, logistics and life sciences, healthcare and public services. Its Cloud+Services include Comprehensive Professional Services for the Cloud, Industry- Leading Services in the Cloud (Business Platforms), Infosys iengage Digital Consumer Platform, HRO Platform, Infosys Distributor Connect Platform and An Ecosystem of Partnerships. Finacle is its banking software product.

28 PROFESSIONAL SERVICES FOR CLOUD

29 INFOSYS BUSINESS PLATFORMS

CLOUD COMPUTING S IMPACT ON OUTSOURCING IT SAURABH SHARMA TUCK 12

CLOUD COMPUTING S IMPACT ON OUTSOURCING IT SAURABH SHARMA TUCK 12 CLOUD COMPUTING S IMPACT ON OUTSOURCING IT SAURABH SHARMA TUCK 12 CONTENTS Fundamentals of outsourcing are changing Capabilities Required and how outsourcing vendors are developing them Licensing models

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