Cloud opportunity analysis for Big4
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This document analyzes cloud opportunities for Big4 in India. It provides an industry overview noting cloud's growth and how Indian SMBs are poised to adopt cloud. The document outlines opportunities for Big4 in cloud strategy, CRM/ERP-as-a-service, and developing cloud solutions. Potential partners are identified in various cloud areas. Key industries for cloud focus include manufacturing, healthcare, education, retail, and media. The document concludes by thanking the reader.
Cloud opportunity analysis for Big4
- 1. Analysing Cloud Opportunity for Big4 January 2011
- 3. Industry Overview Cloud will be the next big thing which business will adopt to get more flexibility… Gartner IT Outlook 2014: “Cloud Computing” tops among the four trends that will support change in IT. “…It will fundamentally change the relationship between buyers and providers of IT Services...” Source: McKinsey Global Survey Result, Nov 2010
- 4. Industry Overview Economic condition and technology innovations helping Cloud.. • Plan for Peak • 1:1 ratio for server per application • Low server utilization • Huge Capex • Custom Solution, not user friendly • Low Agility • No Broadband • Effective broadband • SOA, Web Service • Lightweight SMB apps • SaaS / IaaS / PaaS • Super Broadband • SMB mindset • Economy • Netbooks/tablets • Telcos as a channel
- 6. Indian context The Indian SMBs will jump the technology curve to move directly to Cloud.. “India has a legacy of jumping technology curves e.g. in the telecom sector, and it is expected that cloud would also show the similar behavior. The companies that are currently not adopting IT and don't have major investments in datacenters and server farms are expected to shift directly to the cloud model. Verticals such as retail, manufacturing, banking, education, and healthcare will rely upon cloud services for better reach.” – Zinnov Management Consulting “India will move directly to the cloud, much like it bypassed the landline revolution that never happened and leapt to mobile phones…” -Ballmer, CEO Microsoft
- 7. Indian context Indian business organizations show similar characteristics as its global peers on advantages and challenges of cloud…
- 8. Indian context Preferred channels for cloud services for Indian SMBs.. The IT service providers has pivotal role to play in bringing the ecosystem together in the supply side to select the right cloud solution for an organization, as well as improving the organizational maturity in terms of how IT function works in the cloud environment. IT Service Providers or System Integrators 46% Data Centre Service Providers 46% Hardware and software vendors 8%
- 9. Indian context Cloud adoption trends by SMBs.. Cloud adoption will be determined by the following factors- Interdependency between applications Integration needs Facilitating business transactions Achieving efficiency and competitive edge Ease of deployment
- 10. Indian context Collaborative Apps, CRM and ERP dominates the market.. 38% 32% 10% 3% 17% Workload wise distribution of SaaS market in India, 2009 Collab apps CRM ERP Security Others Workload USD Collab Apps 20 Mn CRM 16 Mn ERP 4.5 Mn Security 1.6 Mn Others 7-10 Mn Total Market size is USD 50-60 Mn with 30-40% CAGR Source: Zinnov Management consulting
- 12. Opportunity Broad spectrum of possibilities.. Alternati ves Description Cloud Model Provider Example Big4 Capability/ Methodology Rehost Redeploying applications to a different hardware environment HIaaS / SIaaS Amazon EC2, Rackspace, VMWare NA Refactor Running application (web apps) on could provider’s infrastructure , or making changing application code /configuration to use cloud infrastructure service SIaaS / SaaS Windows Azure Enhance and Integrate Revise Modernize legacy application and then rehost or refactor options to deploy to cloud HIaaS, PaaS (SIaaS) As above Enhance and Migrate Rebuild Rebuild a solution on a provider’s application platform PaaS Force.com, Google App Engine Build and Migrate Replace Discard existing application and user commercial software delivered as aaS, migrate data to SaaS environemnt SaaS Salesforce CRM, SugarCRM, Zoho, Workday HR, Lotus Live, Microsoft Office Live, Google Docs Strategize and Implement NewSystemsExistingSystems
- 13. Opportunity Possible cloud offerings from EAI.. 1. Cloud Strategy 2. CRM on- demand 3. ERP on- demand 4. Develop 5. Provide cloud solution Opportunity Combine Cloud strategy with EA offering in the SMB sector. Entry route for Big4, which can be followed by implementations. Fastest adoption in the cloud, if we don’t do it somebody else will do. High potential market. Great opportunity for EAI to move into ERP space, barring the big vendors there are few good Indian providers e.g. Ramco Developing in the cloud platform or integrating legacy apps with cloud, important for us to get bigger mind share in the cloud market Offering some SaaS based solution to our customers e.g. enabling nForce as SaaS. Value proposition IT cost reduction, Transform IT, can target 10-15% IT cost reduction Business efficiency, low TCO Business efficiency, low TCO Business flexibility Lower TCO Key considerations Partnering with cloud service providers Align with SaaS providers Align with SaaS ERP providers None Need to find hosting options Value/size 5-10 lakhs 10-30 lakhs plus markup on the tool* 10-30 lakhs plus markup on the tool* NA NA Investments Need to acquire Infrastructure related skill Has existing skills Need to acquire skills Need to acquire / develop skill Need to redesign application for cloud Go to market Timeframe Immediate Immediate Short to medium term Medium to long term Long term * Already in talk with different vendors and trying to understand the revenue model for us and also typical project value
- 14. Opportunity Cloud Strategy can be aligned with our EA offering .. Application Portfolio Management Legacy Modernizati on Application Platform Strategy Buy, Build, Borrow or Rent? Cloud Adoption Strategy Application Cloud Migration Application consolidation, Cost-benefit analysis Implementation Strategy, Roadmap, ROI analysis Evaluating cloud service provider, supply side and demand driven analysis Evaluating type of cloud service and platform based on organization’s overall architectural standpoint Short listing candidates for migration based on interdependency and complexity Ref: Cloud Adopting Steps by Gartner
- 15. Opportunity Possible Partner Alignment strategy.. Cloud Service Key Players Partner Strategy Big4 Advantage/ Disadvantage CRM Salesforce Sugar CRM Zoho Impel Become channel partner We have existing skills on SugarCRM, we can directly tie up with these players or tie up with TataComm which already offers SugarCRM as their SaaS offering ERP, HRMS Ramco iWeb K-Serve HRMantra Become channel partner These are Indian cloud providers and already has good market, they already have channel partner strategy. Infrastructure Tata Comm Reliance NetMagic Sify Joint go to market TataComm among them has more wider spectrum of aaS including IaaS and SaaS Collaborative Apps Google Microsoft Office Live Lotus Live N.A. Not very attractive from Big4 point of view Platform Google App Engine Microsoft Azure Amazon EC2 N.A. Will take time for industry to adopt this HighPriority Note: Player with strong India presence are considered here, Oracle and MS are not considered for ERP.
- 16. Opportunity Possible SMB Industry focus for cloud.. Industry Overview CRM ERP Collaborat ive Apps Infrastruc ture Platform Manufacturing Comparatively lower IT maturity, low IT spending (<1% of revenue) Yes Yes Yes Yes Healthcare Growth stage of IT maturity, compliance and regulatory aspect is pivotal in cloud decisions Yes Yes (HRMS) Yes Yes Education Nascent stage in IT maturity, good opportunity for cloud Yes Yes (HRMS) Yes Yes Yes Retail, Consumer goods Higher spending in IT, SMB sector will move to cloud faster than larger counterpart Yes Yes Yes Yes Media Nascent stage in IT maturity, good opportunity for cloud Yes Yes Yes Yes
- 17. 17 Thank You This is a market analysis done at an individual capacity level and and view of an individual and not a property or view of any organization.