DIG­I­TAL NIR­VANA

Dump­ing On-Premise CAPEX Mod­els In­dian Com­pa­nies Are Join­ing The Cloud Band­wagon

Dataquest - - CONTENTS -

Cloud is no longer a trend it’s a re­al­ity and en­ter­prise IT or­ga­ni­za­tions across the world are rid­ing this dis­rup­tion and reimag­in­ing the way IT has been con­sumed and de­liv­ered. With the es­ca­la­tion of the cloud, ex­perts be­lieve that it sig­nals the be­gin­ning of the end of con­ven­tional IT par­a­digms and prac­tices that were in vogue in man­ag­ing en­ter­prise IT through an as­set-driven ‘on-premise’ IT model rooted in pe­ri­od­i­cal CAPEX in­fluxes via soft­ware and hardware re­fresh cy­cles.

Set­ting the tone and con­text, Atul Sa­reen, Vice Pres­i­dent and Head of Cloud Sales, SAP In­dian Sub­con­ti­nent says, “Cloud has quickly be­come the main­stream of busi­ness tech­nol­ogy, and an in­creas­ing num­ber of com­pa­nies are mov­ing their core func­tions to the cloud. From start-ups to large en­ter­prises, across all in­dus­tries, ev­ery­one has or is join­ing the band­wagon and work­ing to­wards their cloud strat­egy. Com­pa­nies are now lever­ag­ing the cloud as a plat­form for con­tin­u­ous busi­ness in­no­va­tion - as a way to en­gage em­ploy­ees, cus­tomers and part­ners in new ways,

“CLOUD HAS QUICKLY BE­COME THE MAIN­STREAM OF BUSI­NESS TECH­NOL­OGY, AND AN IN­CREAS­ING NUM­BER OF COM­PA­NIES ARE MOV­ING THEIR CORE FUNC­TIONS TO THE CLOUD”

- Atul Sa­reen Vice Pres­i­dent and Head of Cloud Sales, SAP In­dian Sub­con­ti­nent

CLOUD IS NO LONGER A TREND IT’S A RE­AL­ITY AND EN­TER­PRISE IT OR­GA­NI­ZA­TIONS ACROSS THE WORLD ARE RID­ING THIS DIS­RUP­TION AND REIMAG­IN­ING THE WAY IT HAS BEEN CON­SUMED AND DE­LIV­ERED

un­leash new op­er­at­ing mod­els and gain new in­sights that drive growth, prof­itabil­ity and ac­cel­er­ate com­pet­i­tive ad­van­tage in to­day’s ul­tra-com­pet­i­tive mar­ket­place.”

So clearly cloud is no longer a trend. It’s a ne­ces­sity. Re­flect­ing on this, Shailen­der Ku­mar, Re­gional Man­ag­ing Di­rec­tor, Or­a­cle In­dia says, “Ab­so­lutely. As a tech­nol­ogy con­cept, cloud has been in ex­is­tence for more than a decade, but it is only now that you see it per­me­ate and power busi­nesses and gov­ern­ments the world over. Clearly, the mi­gra­tion to the cloud is hap­pen­ing faster than we ex­pected and In­dia is on a high with more and more cus­tomers im­ple­ment­ing cloud so­lu­tions. Com­pa­nies have re­al­ized the need to in­vest in IT to pro­mote in­no­va­tion un­like sim­ply uti­liz­ing it to main­tain their IT sys­tems.”

As per a joint re­port ti­tled “Un­lock­ing the eco­nomic im­pact of dig­i­tal trans­for­ma­tion” by Mi­crosoft and IDC, dig­i­tal trans­for­ma­tion will add close to $154 bil­lion to In­dia’s GDP by 2021 and in­crease the growth rate by one per­cent an­nu­ally. About four per­cent of In­dia’s GDP was de­rived from dig­i­tal prod­ucts and ser­vices cre­ated di­rectly through the use of dig­i­tal tech­nolo­gies such as mo­bil­ity, Cloud, Internet of Things (IoT) and Ar­ti­fi­cial In­tel­li­gence (AI). In­dia is clearly on the fast-track to­wards dig­i­tal trans­for­ma­tion. Within the next four years, it is es­ti­mated that nearly 60 per­cent of In­dia’s GDP will have a strong con­nec­tion to the dig­i­tal trans­for­ma­tion trends.

Putting this thought in the back­drop, Mee­tul Pa­tel, Chief Op­er­at­ing Of­fi­cer, Mi­crosoft In­dia says, “To­day, cloud adop­tion in In­dia is like the tele­phone rev­o­lu­tion – how mo­bile phones com­pletely by­passed wired telephony. In­dia has the scope to go straight to the cloud as a large part of the SMBs still do not use cloud tech­nolo­gies. As they build these ca­pa­bil­i­ties, they can leapfrog to pay-asyou-go mod­els us­ing cloud-based ap­pli­ca­tions.”

of low­er­ing the cost of in­fra­struc­ture is of­ten the pri­mary mo­ti­va­tor for mov­ing to the cloud, but in fact, most com­pa­nies quickly de­rive even more sig­nif­i­cant ben­e­fits of cloud - agility, and in­no­va­tion. Mov­ing to the cloud en­ables a com­pany to move faster, and ap­proach things in a dif­fer­ent way. In line with this think­ing, Bikram Bedi, Head of In­dia Re­gion, Ama­zon Internet Ser­vices In­dia says, “In short, cloud has be­come the “new nor­mal”, as com­pa­nies of ev­ery size are now de­ploy­ing new ap­pli­ca­tions to the cloud by de­fault, and look­ing to mi­grate as many of their ex­ist­ing ap­pli­ca­tions, as quickly as pos­si­ble. For en­ter­prises, the ques­tion isn’t “if” any­more; it’s re­ally just “How fast can we move?” and, “What are we go­ing to move first?”. A few years ago, if you’d asked en­gi­neer­ing teams how long it might take them to get a server up and run­ning, they would have firmly said 10-18 weeks. How­ever, to­day, not only can a com­pany spin up thou­sands of servers in min­utes and pay only for what they use, but they also have ac­cess to a very ro­bust, ful­lyfledged tech­nol­ogy of­fer­ing that lets them go from idea to launch in record time.

Agrees Amit Ku­mar, Cloud Leader, IBM In­dia/South Asia, “To­day, Cloud is not looked at as only a stor­age so­lu­tion but as a plat­form for in­no­va­tion. Its com­put­ing ca­pa­bil­ity is de­liv­er­ing higher val­ues to mul­ti­ple en­ter­prises across sec­tors. This tran­si­tion of the cloud plat­form is cour­tesy the emerg­ing tech­nolo­gies that are be­ing lever­aged on the cloud such as AI, ML, IoT, blockchain. En­ter­prises and star­tups are tap­ping into these newer ca­pa­bil­i­ties to bring forth cloud-en­abled so­lu­tions that are cus­tom­ized ac­cord­ing to their needs. The pub­lic and pri­vate cloud are gain­ing a great trac­tion in the in­dus­try, given the fact that govern­ment or­ga­ni­za­tions have also started look­ing to- wards lever­ag­ing cloud tech­nol­ogy to bring in ef­fi­ciency and growth prospects.

MAR­KET DY­NAM­ICS

Ac­cord­ing to a Gart­ner ob­ser­va­tion, it said, “In its first decade, cloud com­put­ing was dis­rup­tive to IT, but look­ing into the sec­ond decade, it is be­com­ing ma­ture and an ex­pected part of most dis­rup­tions. For the past 10 years, cloud com­put­ing changed the ex­pec­ta­tions and ca­pa­bil­i­ties of the IT de­part­ment, but now it is a nec­es­sary cat­a­lyst for in­no­va­tion across the com­pany.”

Go­ing into fur­ther de­tails, Gart­ner said that the In­dia pub­lic cloud ser­vices rev­enue is pro­jected to grow 37.5 per­cent in 2018 to to­tal US$2.5 bil­lion, up from US$1.8 bil­lion in 2017, ac­cord­ing to Gart­ner, Inc.

While the pub­lic cloud rev­enue mar­ket in In­dia ex­hibits solid growth in 2018, the growth rate is ex­pected to flat­ten, which is in­dica­tive of a ma­tur­ing mar­ket,” said Sid Nag, re­search di­rec­tor at Gart­ner.

In 2018, Gart­ner es­ti­mates the fastest-grow­ing seg­ment of the pub­lic cloud mar­ket will be in­fra­struc­ture as a ser­vice (IaaS). IaaS in In­dia is fore­cast to to­tal US$1 bil­lion, an in­crease of 46 per­cent from 2017 (see Table 1). This growth is be­ing driven by or­ga­ni­za­tions re­frain­ing from pur­su­ing data cen­ter build-outs and con­sol­i­da­tion among data cen­ter ven­dors.

“While IaaS en­ables ef­fi­cien­cies and cost ben­e­fits, or­ga­ni­za­tions need to be cau­tious about IaaS providers po­ten­tially gain­ing unchecked in­flu­ence over cus­tomers and the mar­ket,” said Nag. “In re­sponse to multi-cloud adop­tion trends, or­ga­ni­za­tions in In­dia are also in­creas­ingly de­mand­ing a sim­pler way to move work­loads, ap­pli­ca­tions, and data, across cloud providers’ IaaS of­fer­ings with­out penal­ties.”

“AS A TECH­NOL­OGY CON­CEPT, CLOUD HAS BEEN IN EX­IS­TENCE FOR MORE THAN A DECADE, BUT IT IS ONLY NOW THAT YOU SEE IT PER­ME­ATE AND POWER BUSI­NESSES AND GOV­ERN­MENTS THE WORLD OVER” - Shailen­der Ku­mar Re­gional Man­ag­ing Di­rec­tor, Or­a­cle In­dia

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