HYBRID CLOUD: The Next Frontier
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1 HYBRID CLOUD: The Next Frontier This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov
2 2 India market presents a solid foundation for cloud uptake Cloud Market Landscape Ecosystem Drivers $32 Bn+ IT-BPO Market in India (2013) expected to reach $100 Bn by Large Enterprises in India; 56 Enterprise feature in Global 2000 >15% Growth in Indian IT Market er than China 10Mn+ Technology Ready SMBs; Many First Time IT Buyers $4 Bn Expected Cloud Spending in India between >10% 3 rd Party Service Provider Revenues from Cloud by 2016 >30% Current Growth of Public Cloud Market in India 4X Increase in Indian Cloud ISVs since 2009
3 3 While cloud provides several benefits over legacy models, certain challenges exist Legacy Systems Immensely capital intensive high TCO time to implementation Dedicated IT staffing and increased administration costs Lack of flexibility and Nonscalability Reduced focus on core competencies Subject to technology obsolescence Private Cloud On-premise infra or 3 rd party managed service est security for missioncritical data Capital intensive complexity Public Cloud Shared infrastructure Enhanced flexibility & scale Cost effective Less security, privacy and compliance Limited integration to Onpremise resources Hybrid Cloud Hybrid Cloud model combines the strengths of both Public and Private Cloud to provide an optimal solution
4 4 Several newer hybrid cloud scenarios are emerging and witnessing adoption Lift & Shift VMs Application Test Bed Shift the VMs from private to public cloud to address peak loads Keep confidential data locally & leverage public cloud capabilities for processing While the development of an application can reside on private cloud, public cloud presents an ideal environment for scalability testing Ratnakar Bank signed a 5-year partnership for Hybrid Cloud bursting for dedicated resources during peak hours A B Novatium utilized on-demand virtual infrastructure to test & prototype their apps Savings on staffing, infrastructure set up and maintenance costs Moving Existing Workloads to Cloud C D Hybrid Cloud Storage As the IT infrastructure is moving to the cloud, customers expect the existing applications such as ERP, CRM etc. to work on the cloud similar to on-premise Automatically tier the storage into hot, warm and moderate data and start pushing the in-frequently used data on to public cloud redbus migrated its app provided to bus operators (for ticketing etc.) onto the cloud SaaS to handle peak traffic ~40% Cost Benefits realized and up to 3X increase in traffic to redbus MS acquired StorSimple in 2012 for Hybrid Storage solutions keeps hot blocks of data locally & shifts cold blocks to Azure ~50% Reduction in storage costs by Steelcase Inc. using MS StorSimple
5 5 Hybrid cloud deployments offer a flurry of benefits to end users Benefits of Hybrid Cloud Model On-Demand Elasticity & Cloud bursting by leveraging both public & private cloud infrastructure depending on the application needs Security for Mission-Critical Data Control on data location and security (similar to private cloud) for mission critical applications Economies of Scale for Non-Critical Applications By putting non-mission critical data and mass usage applications on public cloud infrastructure Hybrid Cloud Enables the Customers to Build their own cloud as they like Flexibility and Scalability ly flexible, self-serve and shared governance model for its customers
6 Source: 1 Wipro-Cisco joint CIO survey by Forrester; 2 IDC Worldwide survey for Infosys; Company press releases; Articles; Zinnov Analysis 6 Consequently there is a massively positive outlook towards Hybrid Cloud deployments Cloud Vendor Quotes 78% Indian CIOs say Reduction in TCO for Infra-related spend is the major Hybrid benefit More than 60% large enterprises will move to a Hybrid cloud setup over the next few years -Infosys Cloud VP & Global Head 40% Indian CIOs express readiness to implement Hybrid solution Hybrid cloud is the platform that will dominate the industry moving forward -Senior VP at Capgemini 52% IT Stakeholders feel choosing best cloud providers & ensuring integration is most critical Hybrid infrastructure environments are natural for any enterprise these days to get benefited from the economics of scale -MD, Cloud360 at Cognizant
7 7 Several key factors have to be considered for planning a hybrid cloud deployment (1/2) Public Private Case for Hybrid Deployment 1 Quantum of Application Usage (Load) & Frequency of Application Usage Consistent Seasonal Hybrid Cloud can address the Seasonal variations and peak loads adequately Criticality of the Process Under Consideration Criticality of the Application for Business Data Security & Regulatory Requirements Low Low Low Hybrid Cloud can support both: security requirements for mission-critical applications & data Low security needs for Non-critical applications & data 5 Need for Interoperability between Cloud & Legacy Systems Low Hybrid Cloud provides high integration of legacy systems with Cloud infrastructure Strong case for Deployment Medium case for Deployment Negligible case for Deployment
8 Several key factors have to be considered for planning a hybrid cloud deployment (2/2) Consider a large e-tailer using an e- commerce application: Illustration for a Hybrid Cloud Deployment Multiple city offices and delivery centers Website witnesses predictable traffic except for October where traffic is ~10X Invested in both public cloud (for non critical applications) and private cloud infra The website is the only medium of engagement with customers & navigation experience is critical Criticality of the Application for Business Private Public Customer uses his credit/debit card for online payment Criticality of the Process Under Consideration Private Public ~10X spurt in traffic on website during festive season (October) Quantum of Load & Freq. of Application Usage Seasonal Transaction link back to customer profile in CRM tool Interoperability between Cloud & Legacy Systems Customer information is highly confidential in nature Data Security & Regulatory Requirements Public Private Private Public Private Public 8
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10 10 However, certain constraints currently keep the IT decision makers wary of hybrid deployments Addressing the Key Barriers to Hybrid Deployments 1 Need for increased management efficiency for a diverse datacentre Efficient local and remote management of server resources is a critical requirement cited by the IT stakeholders Cost effective management of hybrid deployments is a key consideration 2 Consistent and flexible user access to corporate resources while protecting data Common user identity to access on premise and cloud resources is quintessential for successful hybrid cloud deployments Protecting corporate data and ensuring regulatory compliance is a must have 3 Complexity of managing multiple vendors Integrated billing & provisioning of all services in all locations across multiple clouds is important (due to higher TCO and complexity in managing multiple cloud vendors for Hybrid) IT departments prefer working with vendors who can offer unified management framework of the hybrid cloud deployments
11 11 Recommendations Recommendations for CIOs/IT Decision Makers Up level Knowhow of Hybrid Cloud Scenarios Suitable for Current IT Set Up Recommendations for Hybrid Cloud Vendors Develop Robust ROI Models For Hybrid Cloud Adoption Specific to Indian Customer Scenarios Leverage One-Stop-Shop Vendors for Successful Hybrid Deployments Evangelize Business Growth Led Use Cases for Hybrid Cloud Framework Driven Approach to Prioritize Workloads for Hybrid Cloud Attach Hybrid Cloud Strategy to Business Growth and Not Just Cost Savings Drive SI & ISV Partnerships and Offer One-Stop-Shop Hybrid Cloud Solutions Invest in Developing Hybrid Cloud Focused Talent in the Ecosystem
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