Cloud Computing Newsletter For Web 1
Cloud Computing Newsletter For Web 1
Supported by
Contents
Summary of Findings............................................................. 3
Background............................................................................ 4
Industry.................................................................................. 5
Appendix A............................................................................ 22
2
l Cloud Computing is no longer considered “hype” by most CIOs. Almost 80%
Summary of Findings
of CIOs believe that it will be an important constituent of their IT strategy
within the next one year.
l More than half of the CIO respondents have started evaluating Cloud
Computing.
l ‘Cost Savings’ is the most important benefit CIOs are expecting from Cloud
Computing. This is followed by better scalability and the ability to switch from
Capex to Opex.
l Security continues to be the biggest concern for CIOs when looking at Cloud
adoption.
l It’s not about Public Cloud or Private Cloud; it is about both.
l Application Hosting (59%) and E-mail (48%) are seen as preferred services
that CIOs expect to have on the Cloud in the near-term.
l According to CIOs, Microsoft is best suited for their organization’s Cloud
Computing needs, followed by Amazon, IBM, Google, and Salesforce.
l In Large Enterprises (more than 500 PCs), Microsoft (24%) has emerged the
strongest contender for providing Cloud based services, followed by
Salesforce (13%) and Amazon (12%).
l In SMEs (less than 500 PCs), Amazon (16%) and Microsoft (16%) have a
marginal lead over Google (15%). Google has a much stronger perception
among SMEs than among Large Enterprises.
l One out of every four organizations is currently using Cloud Computing for
(parts of) its IT.
l Among existing Cloud users, ‘Hosting of Applications’ is the most used
service.
l Among existing users (overall), Amazon is the leading vendor, closely
followed by Microsoft and Google.
l In Large Enterprises (more than 500 PCs) that are existing users, Microsoft is
leading Cloud Computing adoption.
l In existing SME users, Google has gained the most ground as the Cloud
Computing vendor.
3
Background
Often cited as the most path-breaking technology paradigm today, Cloud
Computing is rewriting the rules of the game when it comes to scalability
and availability of dynamic computing resources, software platforms and
applications.
While India is fast adopting global trends, CIOs in the country, have questions
about the best way to harness the benefits of Cloud Computing in an evolving
IT landscape.
CIO Research Center, an affiliate of the CIO Association of India (CAI), launched
this survey in November 2010, to understand what CIOs perceive to be the true
state of Cloud Computing in the country. It is our belief that this survey report
provides useful inputs to Indian CIOs for their cloud computing strategies.
Duration: The survey was launched on November 12, 2010, and responses were
accepted till November 16, 2010.
Reach: The survey was sent to the CAI member community and received 155
responses.
4
Industry
The survey received a good response from CIOs across the industrial landscape.
IT/ITeS CIOs were the highest in number, followed by manufacturing and
financial services.
Industry
Education
4%
Telecom
1% Others
Media and 14% Financial
Entertainment Services
3% 13% Government and
Public Sector
5%
Healthcare and
Manufacturing Pharma
17% 6%
Hospitality
1%
Infrastructure
IT/ITeS 2%
Retail/Wholesale 31%
Distribution
3%
Size of Organization
There has been a well-balanced response in terms of number of PCs in the
organization. Organizations with less than 500 PCs have been categorized as
SMEs and more than 500 PCs have been designated Large Enterprises for the
purpose of the report.
Number of PCs
More than
5000
Less than 100 13%
17%
5
Key Finding 1:
Cloud Computing is no longer considered “hype” by most CIOs. Almost 80% of
CIOs believe that it will be an important constituent of their IT strategy within
the next one year.
While most CIOs will look at Cloud Computing within the next year, there is still
a small yet significant number of CIOs (18%) who are not sure about the Cloud.
Clearly, CIOs are not unaffected by the benefits of the technology, with only 3%
of CIOs disagreeing that Cloud Computing will be an important constituent of
their IT strategy.
Not Sure
18%
Strongly
Agree
33%
Agree
46%
Key Finding 2:
Despite the unique cost models involved, CIOs feel that among all the
stakeholders, the CFOs’ interest levels could certainly be better.
Overall, CIOs perceive a fair amount of interest in the models from the CEOs and
the organization at large.
6
Level of Interest
1 - No Interest, 5 - High Interest
CEO 3.232
CIO 4.206
CFO 3.026
COO 3.187
IT Team 3.903
Overall 3.394
Organization
Key Finding 3:
More than half of the CIO respondents have started evaluating Cloud
Computing.
54% of CIOs have evaluated Cloud Computing. 32% of the respondents have
done an extensive evaluation.
No plans
10%
Extensively
32%
Planning to
evaluate soon
36%
Basic testing
22%
7
Key Finding 4:
‘Cost Savings’ is the most important benefit CIOs are expecting from Cloud
Computing.
While the push towards Cloud Computing seems to be largely from Cost Savings
(79%), CIOs also look forward to the ability to scale better, switch from CapEx to
OpEx, and benefit from easier maintenance – available from the Cloud vendor.
Agility 47.74%
Improved Device and 43.23%
Location Independence
Reliability Improvements 40.65%
Great IT 22.58%
Other 0.65%
Key Finding 5:
Security continues to be the biggest concern for CIOs when looking at Cloud
adoption.
66% of CIOs are apprehensive about security on the Cloud. Privacy Concerns
come next, with 45% of CIOs pegging this as their area of concern.
Integration with existing systems (hardware and software) also figures high in
the trepidations of CIOs (30%) with regard to Cloud Computing.
8
What are your key concerns with regards
to Cloud Computing?
Security 66%
Compliance 19%
Lack of Features 5%
Others 5%
Key Finding 6:
CIOs are influenced by the benefits of both the paradigms of Cloud Computing
with 53% of CIOs responding that they would consider both the Private and
Public Cloud. However, in direct comparison, Private Cloud seems to be a
preferred model, as against the Public Cloud.
None
5%
Public Cloud
14%
Both
53% Private Cloud
28%
9
Key Finding 7:
Application Hosting (59%) and E-mail (48%) are seen as preferred services that
CIOs expect to have on the Cloud in the near-term.
A fair number of CIOs also indicated their interest in using Storage (41%) and
Files & Database Hosting Solutions (35%) on the Cloud.
E-mail 48%
Storage 41%
ERP 30%
Application Development 29%
and Testing
Content Management
System 26%
BI 24%
Other 5%
10
Large Enterprises: In the near future, which Cloud Computing services are of
interest to your organization?
E-mail 45.33%
Storage 37.33%
Application Development
and Testing 32%
CRM 32%
ERP 32%
Computing Power/
Server Capacity 30.67%
Files and Database
Hosting 30.67%
Content Management
System 29.33%
Productivity Software
(like Office) 26.67%
BI 22.67%
Desktop Operating
System 18.67%
Other 4%
SMEs: In the near future, which Cloud Computing services are of interest to your
organization?
E-mail 50%
Storage 45%
Files and Database
Hosting 40%
CRM 36.25%
Computing Power/ 35%
Server Capacity
Productivity Software 32.50%
(like Office)
ERP 27.50%
Application Development
and Testing 26.25%
BI 25%
Content Management 23.75%
System
Desktop Operating 22.50%
System
Desktop Software 20%
Other 6.25%
11
Key Finding 8:
Based on CIO perception, Microsoft is best suited for their organization’s Cloud
Computing needs, followed by Amazon, IBM, Google and Salesforce.
CIOs were asked to select one vendor, who according to them would be best
suited for their organization. Responses helped tabulate the top ten Cloud
Computing vendors in India, based on CIO perception.
Microsoft 19%
Amazon 14%
IBM 11%
Google 11%
Salesforce.com 10%
VMware 9%
HP 6%
Oracle/Sun 6%
Citrix 3%
EMC 1%
Other 11%
12
CIO-Speak on Cloud
Computing Technology
Vendors
This is what CIOs had to say:
1. Microsoft
“[It brings in] savings on licence costs, wider integration, scope of CRM applications,
scale and maturity of solutions.”“Brand value, reach, and channel-play.” “[Of
the] reduced learning curve [with Microsoft Cloud offerings] as these are the
applications I am familiar with [and] migration is very easy.”
“We work mostly on Microsoft platform and hence it makes best choice for us
to consider [Microsoft’s] Cloud Computing, as there would be better sense of
accountability and ownership from Microsoft.”
“Constant upgrade support and strong research group.”“Very huge user base.”
“A reliable and responsible partner for Cloud Computing needs.”
“A very long relationship and the people from this vendor know [our]
business”.“Enterprise agreement [and] clear roadmaps from the company.”
“[Organizational] focus, [we are] aligned to the organization and product suite,
[and have] invested a lot on strategy and implementation of the same.”
2. Amazon
“Our company has already tied up with Amazon. It supports all the deployments
in Cloud Computing.”
“The service and support they provide are valuable. [They have] good technology
enhancements lined up.”
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“With EC2, maturity levels are higher.” “Range of features.” “Superior scalability
and reliability.”
“Pricing model and services” (however there was also an area of concern
pertaining to “SLAs and payment structure – you must have a credit card to
make payment, which a lot of companies simply do not do.”)
“Providing Windows/SQL server machines images that are best suited to host
existing products/applications. It also provides Content Distribution Servies
(CDS) that helps in large content distribution.” “Migration efforts [are] limited.”
“Scalability, reliability and bandwidth.” “Proven track record.”
3. IBM
CIOs preferred IBM as a vendor for the following reasons:
“IBM is in the services business in India and having dealt with it, we feel confident,
[it is] secure for both hardware and software and technically competent.”
“Already working with us.” “Office and email apps.” “Our mailing service is
partly on Google’s Public Cloud and as such we are quite satisfied with their
service in terms of performance as well as support.”
“Big, reliable, scalable, thus cheap and with open mindset.” “Flexible, forward-
looking, continuously improving, agnostic to vendor/platforms.”
“Adoption of the [Google] Cloud SAAS services has been effective, especially its
developer partner programs.”
14
“Already has a lot of good solutions on the Cloud.” “Innovation.” “Adaptation of
customer requirement is guaranteed.”
“Google has shown the world that yes they can deliver the Cloud services and
that too in a very secure way. It is affordable too.”
5. Salesforce
Salesforce.com is a preferred vendor among CIOs because:
“[We are] currently using this.” “[It’s] presence in market, large customer base,
good agility between current IT Infrastructure to accommodate newer platforms
and business needs.”
“For CRM they have good deployment experience.” “Offers the best-fit solution
in accordance with our Relationship Business Model.”“The application is
clutter breaking and mostly idiot-proofed. It doesn’t require much by way of
adaptability unlike SAP applications.”
Other vendors:
VMware
“It is becoming popular with the number of clients and also affordability for
smaller organizations is better.”
“It also has tie up with public clouds such as Google, etc.”
HP
“Technology, experience of working with vendor; have good relations from a
long time.”
“Has a strong capable team in India, who can support us in the maintenance
and operations phases.”
Oracle
“Since Oracle is a database and infrastructure provider, I feel they can actually
support the real demand for the database hosting with a commitment to take
care of any performance-related issues, etc.”
15
“Established infrastructure and platform with host of Application Suites.”
“Our business applications have been built on J2EE using Oracle’s Application
Development framework and are on Oracle’s 10g Application Server, connected
to an Oracle 10g Database. So probably, technology expertise, may be an edge
for them.”
“We are using Oracle ERP E-business Suite modules for all our group companies
and as it is on Private Cloud so far, our training investement and human resources
knowledge base will be protected.”
Key Finding 9:
In Large Enterprises (more than 500 PCs), Microsoft (24%) has emerged the
strongest contender for providing Cloud based services, followed by Salesforce
(13%) and Amazon (12%).
Microsoft 24%
Salesforce.com 13%
Amazon 12%
IBM 11%
HP 8%
Google 8%
VMware 8%
Citrix 3%
Oracle/Sun 3%
EMC 0%
Other 11%
16
Key Finding 10:
In SMEs (less than 500 PCs), Amazon (16%) and Microsoft (16%) have a marginal
lead over Google (15%). Google has a much stronger perception among SMEs
than among Large Enterprises (as a Cloud Computing vendor).
Amazon 16%
Microsoft 16%
Google 15%
IBM 12%
VMware 11%
Oracle/Sun 9%
Salesforce.com 7%
HP 4%
Citrix 3%
EMC 3%
Other 12%
Industry-wise findings:
In the Manufacturing industry, CIOs find Microsoft (22%) better suited for their
Cloud Computing needs, followed by IBM (15%) and Salesforce (11%). Amazon
does not have a strong presence here.
Manufacturing
Microsoft 22%
IBM 15%
Salesforce.com 11%
IT/ITeS CIOs prefer Microsoft (23%), Amazon (19%), and Google (15%) over
the others.
IT/ITES
Microsoft 23%
Amozon 19%
Google 15%
17
Financial Services CIOs prefer Amazon (20%), Microsoft (20%) and Salesforce
(15%) as their Cloud vendors.
Financial Services
Amozon 20%
Microsoft 20%
Salesforce.com 15%
In the Government and Public Sector, IBM (27%) and Oracle/Sun (18%) have the
strongest perception.
IBM 27%
HP 9%
VMware 9%
Almost 75% of CIOs have not adopted Cloud Computing yet, but a large number
of them plan to deploy within the next one year. A smaller, yet significant,
number–18% of CIOs however, have indicated that they have no plans of
adoption at this time.
Deployment in
progress 8%
18
Key Finding 12:
Among existing Cloud users, “Hosting of Applications” is the most used service.
Among the current users, application hosting seems to be the most common
use of Cloud Computing. E-mail on the Cloud and CRM are other popular
applications.
E-mail 44%
CRM 35%
Computing Power/
Server Capacity 31%
Application Development 30%
and Testing
Content Management 24%
System
Files and Database
Hosting 22%
Productivity Software
(like Office) 22%
Storage 20%
BI 19%
ERP 15%
Desktop Operating
System 13%
Desktop Software 6%
Other 11%
19
Key Finding 13:
Among existing users (overall), Amazon is leading other vendors, closely followed
by Microsoft and Google.
Salesforce.com 24%
VMware 20%
EMC 7%
Citrix 6%
IBM 6%
Oracle/Sun 6%
HP 2%
Other 39%
In large enterprises (more than 500 PCs) that are existing users, Microsoft is
leading Cloud Computing adoption.
Amazon 36%
Salesforce.com 29%
VMware 21%
Google 18%
IBM 7%
Oracle/Sun 7%
Citrix 4%
EMC 4%
HP 0%
Other 29%
20
Key Finding 15:
In existing SME users, Google has gained the most ground as the Cloud
Computing vendor.
Amazon 30.77%
Microsoft 19.23%
Salesforce.com 19.23%
VMware 19.23%
EMC 11.54%
Citrix 7.69%
HP 3.85%
IBM 3.85%
Oracle/Sun 3.85%
Other 50%
21
Appendix A
(List of respondent companies)
22
Mecklai Financial Services Ltd. Societe Generale
MercuryMinds Technologies SSIPL Retail Ltd.
Metso Minerals (India) Pvt.Ltd. SSL
Mahindra & Mahindra Financial Stewart & Mackertich Wealth
Services Ltd. Management Ltd.
Microland Ltd. Tata Sky Ltd.
Ministry of Road Transport & TCL - Transition Consulting Ltd.
Highways TECHGYAN
MTR Foods Pvt. Ltd. The Calcutta Medical Research
MTS India Institute
National Informatics Center (Govt TIL Ltd.
of India) Tratum Technologies
Netcellence Technologies Trignon
Nicco Corporation Ltd. Truetzschler India Pvt. Ltd.
Nihilent Technologies UCB
NISE Unichem Laboratories Ltd.
NPCIL Unilog
NTPC Ltd. Universal Cables Ltd.
Oasis Investment Company LLC. UTI Mutual Fund
Alshirwi Group Vaishnavi Corporate
Old World Hospitality Pvt. Ltd. Communications
Orbis Financial Corporation Ltd. Vallabhdas Kanji Ltd.
Orix Auto Infrastructure Services ValueSource Technologies Pvt. Ltd.
Ltd. (an IL&FS Company) Varun Beverages Ltd.
Pappilon Software Solutions Pvt. Ltd. Virtusa
Persistent Systems Ltd. Watson Pharma Pvt. Ltd.
Power Grid Corporation of India Ltd. West Asia Maritime
Quatrro BPO Solutions Pvt. Ltd.
Rain CII Carbon (India) Ltd.
RECL
Reliance Infrastructure Ltd.
Religare Asset Management Co. Ltd.
RMD Engineering College
Roots Industries India Ltd.
Royal Banck of Scottland
Safexpress Pvt. Ltd.
Sakal Media Group
Sakthi Finance Ltd.
SAP
Sara Infoway ITES India Pvt. Ltd.
Shriram Pistons & Rings Ltd.
Sierra Atlantic
Sikkim Manipal University
SJM Technologies
SKS Microfinance
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