- Cloud computing market size: Worldwide, APAC, India - Cloud adoption scenario: Large enterprises in India

1. Knowledgefaber
Cloud Computing adoption – Large enterprises in India
August,2012

2. Global IT & cloud computing spending
Spending on cloud computing is increasing , but spending on cloud as percentage of IT remains
relatively small worldwide
Worldwide IT and Cloud spend
Cloud spend as percentage of IT worldwide(2011)= 1.38%*
2,500.0
2,500
2,000
USD Billion
xx xx xx xx xx %
1,500
DATA MASKED
1,000
xx
xx
500 34.7 xx
xx xx
xx xx xx xx xx
-
Worldwide North America EMEA Japan APAC Latin America
Total IT Spend Total Cloud Spend
■ Existing dependencies on licensed software and hardware makes for lower spending on cloud as percentage of IT
worldwide
■ Cloud spending in North America and EMEA remains relatively higher due to large number of public cloud deployments
for communication and collaboration applications - Driven by presence of highly distributed and mobile workforce
■ Cloud adoption amongst countries in APAC and Latin America will grow rapidly from the current base levels as firms
look to increase their business competitiveness, IT adoption and innovation by leveraging the cloud
*Knowledgefaber estimates
September 3, 2012 2

3. APAC IT & cloud computing spending
Cloud spend in APAC as percentage of IT is lower than world-wide average, but robust adoption of
mobile devices and improvement in network services will lead to higher cloud adoption
APAC IT and Cloud spend
Cloud spend as percentage of IT in APAC(2011)= xx%*
292.1
300
xx xx xx xx %
250
USD Billion
200
xx DATA MASKED
150
100
xx xx
50 xx
2.7 xx xx xx xx
-
APAC China India Australia Singapore
Total IT Spend Total Cloud Spend
■ Australia, Singapore , China and India together make-up for more than 90% of total cloud spend in APAC.
Malaysia, Indonesia and Thailand are other countries in APAC witnessing higher cloud adoption rates
■ In APAC, large enterprises have inclination towards private and hybrid cloud deployment models
■ Security concerns, government regulations and lack of clarity on business benefits from cloud remain major hurdles in APAC
■ Robust uptake of mobile devices such as smartphones and tablets, need for online storage and improving internet &
broadband availability will provide impetus to cloud adoption in APAC
*Knowledgefaber estimates
September 3, 2012 3

4. Cloud computing market size in India
India still in very early stages of cloud adoption, driven primarlily by SaaS based cloud deployments
Cloud computing market-size in India
Total market size(2011) = USD xx mn*
PaaS
10%
IaaS
25%
SaaS
65%
■ Although India forms 17% of the total cloud market in APAC, Indian firms are still in the phase of understanding cloud benefits
as they look to cut IT costs and achieve higher IT services availability
■ SMEs are leveraging cloud-based applications such as CRM, ERP and SCM and other collaboration and communication
applications to boost organizational efficiency and productivity and effectively compete with larger enterprises
■ Organizations requiring rapid provisioning and de-provisioning of storage and compute resources are using IaaS on public
cloud
■ Organizations are using PaaS as a platform for testing and development of applications
*Knowledgefaber estimates
September 3, 2012 4

5. Enterprise cloud computing market by sectors
Manufacturing, BFSI, Healthcare, ICT, Government & Education sectors to witness higher cloud
computing adoption amongst enterprises
Cloud computing market – Large Indian
Enterprises(2011)
Key drivers and challenges
Total market size(2011) = USD xx mn*
Manufact Trade Utilities ■ Sectors such as education , retail and other
uring 7% 9% sectors for which IT is not a core business are
20%
witnessing higher demand for SaaS-based cloud
Healthca
re services
3%
BFSI ■ Heavily regulated sector such as BFSI is
19%
adopting private or hybrid cloud model with
Governm applications such as CRM , email and business
ent Educatio applications like fund access being migrated to
20% n ICT
3% 19% cloud
Enterprise IT and Cloud spend ■ Government sector is going to witness high cloud
Total cloud spend as percentage of IT(2011)= xx %* computing adoption due to various e-governance
initiatives
Total IT Spend(in Total Cloud Spend(in
Sector
million USD) million USD) ■ Manufacturing sector will leverage the cloud by
BFSI xx xx using enterprise applications such as CRM, SCM
and ERP for inventory and supply chain
ICT xx xx management
Government xx xx
DATA MASKED ■ Migration of electronic health records(EHR) and
Manufacturing xx xx Hospital Information System(HIS) onto the cloud
will increase spending of Healthcare sector in
Healthcare xx xx
cloud computing
Others xx xx
*Knowledgefaber estimates
September 3, 2012 5

6. Benefits of cloud computing adoption
Reduced operational and maintenance costs, quick service provisioning, scalability and improved
resource utilization are major benefits reported by enterprises having cloud deployments
Deployment Service Cost Time Resource Other
Company Flexibility Scalability
Model provider Benefit Benefit Utilization Benefits
Narayana Hrudayalaya Private Cloud HCL
Wipro Private Cloud Wipro
Dr Reddy’s Lab Public Cloud Salesforce
AICTE Public Cloud Microsoft
IMI Mobile Private Cloud IBM
Dabur Hybrid Cloud Microsoft
KPIT Cummins Public Cloud AWS
Redbus Public Cloud AWS
Max Healthcare Private Cloud Dell
Shell Lubricants Private Cloud HCL
Flipkart Public Cloud Google
J & K Government Private Cloud Microsoft
IndiaMART Public Cloud Google
■ Reduced operational and maintenance costs remained most important takeaway, with some companies reporting as much as
60% - 80% in cost savings
■ Enterprises in IT as well as government sector leveraged private cloud through optimal utilization of existing resources
■ Lower deployment time enabled rapid provisioning of services thereby enabling quick time-to-market in many companies
■ Other benefits reported include increased profits, reduced latency, elasticity, reliability, improved stability and better availability
of IT services
Source: HCL, Microsoft IBM, Google Press releases, AWS case studies, CIO Website, Business- standard articles
Note: List of companies is not exhaustive
September 3, 2012 6

7. Cloud computing migration approach
Adopting right migration approach decisive in successful cloud adoption
Assess Identify Perform Segregate
current business proof of workloads Perform
scenario case concept for migration Migration
Migration step Description
■ Perform application portfolio analysis – List of various cloud based applications required by
organization, current standalone applications Vs applications with dependency ,simple applications
that can be moved to cloud immediately(Email applications) Vs Complex applications(such as ERP)
■ Portability issues – Applications that can be ported to the cloud immediately Vs applications that will
require modification and performance enhancements before cloud migration
■ Identify biggest cost drivers – CAPEX costs, Hardware costs, software licensing costs, network
bandwidth costs
Assess current
■ Assessment of existing investments - Current investments in application and storage servers
scenario
■ Current pain points - Legacy applications and infrastructure that are not able to handle increasing
workloads, Lack of expertise, skilled human resource requirements, scalability issues, new business
requirements
■ Example: Narayana Hrudayalaya : IT was not the core business of Narayana Hrudayalaya. Needed
cloud based Hospital Information System(HIS) for various administrative tasks such as patient
registration across various sites in the country. Hospital had modest IT workforce, was finding it
difficult to recruit and retain skilled IT workforce. Building and managing own datacenter and IT
applications would be liability for company in terms of CAPEX and functional expertise
Source: Knowledgefaber research, KPMG report
September 3, 2012 7

8. Thank You !
For complete report, contact – Dev Vig, Principal Consultant, Knowledgefaber
www.knowledgefaber.com dev.vig@knowledgefaber.com
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