2. CONTENTS:
• Cloud landscape in India
• India key developments and Trends
• India Cloud Readiness
• India Local Cloud Providers
• India Global Cloud Service Providers
• India Key Coud Drivers, Barriers
• India Managed Services Drivers and Barriers
• Key Customer segments and some success stories
• Media
• Telecom
• Travel/Hospitality
• Manufacturing
• Healthcare
• The SME Segment
• CompePtors/Their Customers and size/Their Offerings USP
• Cloud Global Market Landscape at high level
• SoluPon and Value selling rather than Price-based selling
• Key Customer Challenges and Benefits
• Cloud Decision Making Stakeholders and their roles
• IntelligenPa Learnings so far
• RecommendaPons and AcPon Plan – How to move forward
2
3. CONTENTS:
• Cloud landscape in India
• India key developments and Trends
• India Cloud Readiness
• India Local Cloud Providers
• India Global Cloud Service Providers
• India Key Coud Drivers, Barriers
• India Managed Services Drivers and Barriers
• Key Customer segments and some success stories
• Media
• Telecom
• Travel/Hospitality
• Manufacturing
• Healthcare
• The SME Segment
• CompePtors/Their Customers and size/Their Offerings USP
• Cloud Global Market Landscape at high level
• SoluPon and Value selling rather than Price-based selling
• Key Customer Challenges and Benefits
• Cloud Decision Making Stakeholders and their roles
• RecommendaPons and AcPon Plan – How to move forward
3
9. India Key Trends and Development
• April 2015 it was reported that Microso1 and India-based Zoho would set up datacenters in India to cater to the huge
demand for cloud-based services in the country.
• The step will help them offer quicker access to data from local servers and also meet future regulaPons to have local
servers for e-governance iniPaPves on the cloud.
• Microso1 intends to establish three datacenters in the country by end-2015 to provide Azure and Office 365 services
from local datacenters.
• Zoho, on the other hand, is planning to invest USD1mn in establishing the data centre and aims to grow its domesPc
and government businesses through it.
• Meanwhile, in May 2015 IBM was reported to be considering opening its second data centre in India. The data centre
will enable the company to address the demand from various sectors such as government and financial services.
• APAC vendors are also targePng India, for instance, in April 2015 NTT Communica8ons (NTT Com) announced its 'India
Business Strategy', under which the company plans to conPnue its investment in and expansion of high-quality data
centre/cloud services and internaPonal network services based on its service strategy 'Global Cloud Vision’.
• AddiPonally, NTT Com announced its intenPon to open a new USD100mn data centre in the Indian city of Mumbai with
an investment of more than USD100mn. The construcPon of the centre will be undertaken by NTT Com's subsidiary
Netmagic . The facility, which is scheduled to become operaPonal from Q315, will be NTT Com's ninth data centre in
India.
14. Global Cloud Service Providers
AWS
• AWS plans to start its data center in India in year 2016
• Global IaaS market leader Amazon Web Services (AWS) was also reported to be upping its focus on India in H214.
• In October 2014, CEO Jeff Bezos stated that Amazon may establish a data centre in India and that the firm was evaluaPng the viability of such a step through which it
aims to capitalise on growing cloud-based opportuniPes in India.
• It was reported AWS is considering the move in response to the investment by other cloud provider rivals such as Google, IBM and Microso1.
• AWS' strategy became clearer in March 2015 when it signed a deal for Indian telecoms operator Bhar8 Airtel to provide AWS cloud compu8ng services to
customers in India.
• Under the agreement, customers will receive a dedicated connecPon between their premises and AWS data centres. A direct connecPon to the AWS data centres will
lower network costs, offer higher bandwidth throughput and provide a more consistent network experience, which will help businesses of all sizes rapidly expand their
organisaPons.
Microso1
• Microsor in November 2014 reported plans to invest INR14bn (USD227mn) to establish three cloud datacentres in the Indian ciPes of Mumbai, Pune and Chennai -
with the three centres expected to be operaPonal by YE15.
• Microsor intends to capture the Indian cloud market, especially in the banking and telecom industries through its domesPc data centre deployment project.
• The decision for offering cloud services from local datacentres came arer the company recorded a 100% rise in its cloud business in the country during 2013, according
to CEO Satya Nadella. Microsor registered revenues of INR22.61bn (USD366.75mn) from Indian operaPons in FY2013/14.
• Microso1 has a broad cloud strategy in India, but is also targePng specific opportuniPes with tailored iniPaPves. In May 2015, Microsor introduced Edu-Cloud, a
cloud-based soluPon that combines a digital learning plaqorm for teachers and students and sorware soluPons for K-12 schools in India.
• The company signed a deal with Sri Chaitanya Schools, a chain of educaPonal insPtuPons with networks in the Indian states of Andhra Pradesh and Telangana, for the
offering. Edu-Cloud will provide enterprise resource planning, SIS solu8ons and a digital library service on cloud for the ins8tute, in addiPon to virtual learning
plaqorm and teacher training. Microsor's growth target is to reach 1,500 insPtuPons and 6,000,000 students with Edu-Cloud in India by YE16.
15. Global Cloud Service Providers
IBM
• IBM reported a more bullish outlook for cloud service growth in March 2014. IBM sees an upward trend for adopPon of cloud compuPng in India
• Established its first cloud data centre in Airoli, on the outskirts of Mumbai, in the state of Maharashtra, India. The new facility will be dedicated towards private
cloud services catering to enterprises and small and medium businesses.
Google
• In April 2015, Google signed a partnership deal with UK-based consulPng firm PricewaterhouseCoopers (PwC) for the Digital India iniPaPve and large
enterprise deals in India. The Indian partnership is an extension of a global deal signed in October 2014.
• With the agreement, Google aims to push itself into large e-governance projects and improve sales for its cloud services in the Asian country. In addiPon to
opportuniPes derived from government and public sector companies, Google and PwC are targePng industry verPcals including financial services, retail,
pharmaceu8cals and healthcare.
VMWare
• In March 2015 US vendor VMware announced the introducPon of the hyper-converged EVO:RAIL
• infrastructure appliance for India. The aim of the infrastructure appliance is to help IT firms streamline and dramaPcally simplify installaPon and scaling-out of
sorware-defined IT infrastructure.
• VMware joined hands with Fujitsu , Hitachi Data Systems and NetApp for EVO:RAIL.
BT
• UK-based telecoms operator BT announced the launch of its Cloud Computer service in India in February 2014.
• The informaPon management service offers businesses a 'pay as you go' cloud soluPon with high quality and security that promises cost savings of up to 40%.
• BT's Cloud Compute service is currently available in 17 countries across four conPnents.
NTT Com
• APAC vendors are also targePng India, for instance, in April 2015 NTT CommunicaPons (NTT Com) announced its 'India Business Strategy', under which the
company plans to conPnue its investment in and expansion of high-quality data centre/cloud services and internaPonal network services based on its service
strategy 'Global Cloud Vision'.
• AddiPonally, NTT Com announced its intenPon to open a new USD100mn data centre in the Indian city of Mumbai with an investment of more than USD100mn.
The construcPon of the centre will be undertaken by NTT Com's subsidiary Netmagic .
• The facility, which is scheduled to become operaPonal from Q315, will be NTT Com's ninth data centre in India.
21. Key Inhibitors for Managed Services Providers
• Internal Resistance by the IT managers
• Loss of control. IT managers have clear concerns about handing over their systems and applicaPons to a third party, which may not
necessarily have a deep understanding of their systems. A common belief among organizaPons is that once their systems are outsourced,
they do not have control over them.
• Lack of ver8cal/sector exper8se. India organizaPons — specifically in sectors that deal with intensive data volume and have complex
business processes (such as transportaPon, uPliPes, and others) — believe that service providers lack ver8cal exper8se and fail to
understand the complicated business processes and applica8ons running these processes, which is essenPal. The partners' lack of
understanding of such applicaPons limits the engagement scope. OrganizaPons have started adopPng an 80:20 model when it comes to
outsourcing the management of applicaPons, which essenPally means 80% of the noncriPcal applicaPons are outsourced and 20% of the
business-criPcal applicaPons are managed in-house.
• Data security. The lack of trust that an organiza8on will lose control over its data and system is hindering the growth of managed
services. Fear about losing confidenPal data is a major concern among organizaPons contemplaPng to adopt managed services.
• Cloud services adop8on. Though the impact of this inhibitor is thus far limited in India, it is expected to become more pronounced in the
next few years. As organiza8ons become comfortable with and more educated about cloud technology, adop8on will increase. In some
cases, organizaPons are "leapfrogging" managed services directly to a cloud engagement. This is especially evident in the SMB segment,
where there are many economical cloud tools such as Gmail and Dropbox being used. IDC expects that such tools will gain tracPon in the
large enterprise segment as well. SaaS will, for example, take market share from hosted applicaPon management services
21 IDC: India Managed Services 2013 Market Analysis and 2014–2018 Forecast
24. Cloud Managed Services Market Segments
Cloud Managed Services market is segmented by:
• Type:
• Business Services
• Data Centre Services
• Network Services
• Mobility Services
• Security Services
• Ver8cals: Banking
• Financial Services and Insurance (BFSI)
• Telecom & IT
• Retail
• Government & Public Sector
• Healthcare
• Manufacturing
• Energy & uPliPes
• Others (EducaPon, Media & Entertainment, Travel &
Hospitality, TransportaPon and LogisPcs)
24
hhp://goo.gl/rRRr8C
(Gartner idenPfies adopPon of cloud compuPng in India )
• Based on Size
• SME
• Enterprise
• Based on Regions:
• North America
• APAC
• Europe
• LaPn America
• MEA
28. Cloud compuPng – vendor mindshare
among media companies
28
• Google has the highest vendor mindshare of 39%, closely followed
by Microsor, as 32% of respondents are selecPng this company as
one of the leading players in the cloud compuPng domain.
• Media companies can benefit from Google Cloud Dataflow, which
analyzes live data, poten8ally giving users the ability to view
trends and keep them alerted to events as they happen, thereby
providing real-8me business analysis.
• Microsor offerings include Windows Server with Hyper-V, System
Center, Windows Azure, and Office 365.
• Windows Azure Media Services, a cloud-based PaaS soluPon that
enables media companies to build and deliver media soluPons to
customers efficiently.
• Microsor has built variety of custom-build services that enables the
speedier adop8on, encoding, format-conversion, storage, content
protec8on, and streaming of both live and on-demand video. The
company has acquired the cloud-compuPng company GreenBuhon,
which allows media firms that require huge amounts of compuPng
power to use exisPng integraPons with cloud and run performance-
intensive workloads.
35. Why Cloud Makes Sense for Manufacturing Companies ?
• Higher emphasis on cost
– Because of relaPvely higher costs for energy, plant, and equipment and maintenance. This spending "crowds out"
discrePonary IT spending
– Furthermore, and perhaps because of this unique cost structure, a relaPvely high percentage of CIOs in MNR report to
CFOs. This results in cost management pracPces having a stronger influence and/or greater hurdles to jus8fying ROI.
• Realizing value from Tradi8onal IT takes longer than businesses can afford – The lengthy nature of system design,
development, deployment and value captured from tradiPonal in house IT is oren seen as detrimental to the larger business
objecPves – Cloud can help here
• Revising process-oriented IT systems is difficult – TradiPonal IT systems do not match conPnuous improvement and process
opPmizaPon, so IT is oren viewed as an inhibitor to process change.
• Large number of Legacy Solu8ons - Manufacturing firms have long legacies of local IT systems developed. This legacy can
prevent companies from making large investments to standardize and/or transform their business. As a result, companies
o1en pursue many small changes, rather than ambi8ous and large-scale IT programs.
35
37. Takeaways from Industry VerPcals
• There are unique needs of every industry
– Storage, media conversions, streaming , hybrid cloud for Media industry
– EHR, Storage, Mobility soluPons for Healthcare
– DR and backup for Manufacturing
• When we approach any company from these targeted industries, we need to
– Check the companies background
– Check the potenPal need of the company
– Use a Cloud Case Study and prepare a case based on Customer’s Latent need
– Show the benefits of Cloud as per the customers need
– Create the need, rather than asking for the need
• Develop verPcal experPse in segments like Media and Healthcare. AWS has a separate healthcare competency
37
39. India’s SME Segment
• Huge SME sector -Studies suggest that there are at least 7.5mn SMEs in India.
• Sector’s contribuPon to the country’s GDP is expected to increase to 22% in 2020 from 17% in 2011.
• Small & Medium Enterprises (SMEs) account for 45% of India’s total manufacturing output and employ around 40% of its workforce
• Indian SMEs are expected to increase cloud adopPon at CAGR of 20% between 2012 and 2016
• SME cloud opportunity was worth INR16.9bn, of which INR9.2bn was accounted for by SaaS and INR7.7bn by IaaS.
• Some smaller Indian companies such as Indiagames , Rediff.com , Hungama Digital Media and 8KMiles have started to uPlise cloud
compuPng technology to boost service delivery.
• The earliest demand came from suppliers in industries such as auto parts and ancillaries, where smaller firms were obliged to implement
e-commerce systems to synchronize with their larger customers.
• The demand for cloud services by SMEs is parPcularly high in the areas of
– Disaster Recovery
– Remote database management and Storage
– e-mail hosPng.
Source : EY
40. India’s SME Segment Key CharacterisPcs
• Price is an important consideraPon in the sector
• Slow Tech AdopPon because of
– Lack of understanding of business benefits technology. It is esPmated that around 60% of Indian
SMEs sPll use paper-based systems, but an increasing number are now trying to convert to digital
– Lack of guidance on the inherent abiliPes of technologies and how these can be integrated and
insPtuPonalized in their businesses
– Resistance to incurring upfront investment-related costs to implement technology
– Lack of skilled manpower to manage technology setups
• Firms in sectors such as transport now have a greater awareness about the poten8al benefits of
technology uPlizaPon.
• So1ware applica8on vendors who provide packaged business suites, such as Customer Rela8onship
Management (CRM), payroll, HR, enterprise resource planning (ERP) and collabora8ve applica8ons are
expected to outpace tradi8onal so1ware licensing vendors by nearly 800% in India
41. Cloud usage in India is sPll limited to ad hoc pilot projects,
with small businesses having a higher percentage.
Source IDC 41
Findings
§ While all respondents said that they use cloud services, prominent usage (43% respondents) of cloud is at the ad hoc level and focused primarily on pilot projects.
§ Small businesses have a higher percentage of ad hoc projects (51%) when compared with medium-sized and large enterprises (41–43%); “op8mized" usage of cloud is higher in large
and medium-sized enterprises (15%) when compared with small businesses (6%).
Insights/Recommenda8ons
§ Users should understand the technology, its benefits, and service providers; and transiPon pilots to producPon for services that maximize efficiency.
§ They should evaluate vendor and technology opPons for cloud and begin pilots for specific use cases.
0 5 10 15 20 25 30 35 40 45 50
Optimized — Have broadly implemented a cloud-first strategy
that is proactively managed
Managed — Currently widespread use of cloud supported by
proactive business and IT leadership
Repeatable — Currently using cloud computing which is consistent
effort made to reuse best practices and resources
Opportunistic — Currently using cloud computing which are driven
by the business needs of individual workgroups and departments
Ad hoc — Focuses primarily on pilot projects
(%)
46. Cloud Market Revenues
46
-
10,000
20,000
30,000
40,000
50,000
60,000
2012 2013 2014 2015 2016 2017 2018
Sorware as a Service (SaaS)
Plaqorm as a Service (PaaS)
Infrastructure as a Service (IaaS)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2012 2013 2014 2015 2016 2017 2018
Sorware as a Service
(SaaS)
Plaqorm as a Service
(PaaS)
Infrastructure as a Service
(IaaS)
USA APAC
IDC: Cloud Market Overview
51. Customer Technical Challenges for Cloud Adoption
51 As per EY report – Cloud Adop3on in India
• Data security and privacy is a major concern for
enterprises considering implemenPng cloud
IaaS services. Cloud IaaS is a distributed
compuPng model with inherent ambiguity
around where the data resides. This distributed
model leads to a percepPon of higher risk and
security challenges.
• A cloud service provider can miPgate these
risks by establishing an effecPve security and
controls framework in the following areas:
• IdenPty and risk management
• Compliance and audit
• ApplicaPon level security
• Data backup and recovery
• Legal Compliance
52. Customer Business Challenges for Cloud Adoption
52 As per EY report – Cloud Adop3on in India
• Vendor lock-in is perceived as a significant challenge to the
adopPon of cloud compuPng.
• Vendors can currently mi8gate this concern by making their
services more transparent so that customers can understand
how their resources are being managed.
• Enterprises are also unsure of the cost savings that cloud
compu8ng can help them achieve.
• Vendors need to develop comprehensive financial models
detailing the comparison of in-house infrastructure with cloud
IaaS to help firms es8mate the ROI.
• Usage-based pricing models with monthly or hourly billings can
be used to compare costs with the current datacenter costs and
esPmate the ROI.