2012, NIIT Technologies Limited

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2 What is Cloud Computing? Cloud computing is an operations model, not a technology Cloud services are consumer and business services and solutions delivered and consumed in real-time over the Internet Essential Characteristics Cloud Services Digital Supply Chain Elasticity Project-based Services Outsourced-Managed Services Design Operate Pay as you use Change Deploy Multi Tenant Model Develop (PaaS) PaaS TaaS BPaaS SaaS IaaS Refresh upgrade patch On-Demand Service Testing (TaaS).and maintain Note: PaaS = Platform-as-a-Service; TaaS = Testing-as-a-Service; IaaS = Infrastructure-as-a-Service; SaaS = Software-as-a-Service; BPaaS = Business Process-as-a-Service 2

3 CURRENT SCENARIO-Global Source :Cloudnewsindia.in 3

4 CLOUD : The India Story Source 2012, : NIIT Zinnov, Technologies Cloud Computing Limited in India, Media Briefing, 21st June,

5 Major concerns for companies moving to Cloud? Source :Cloudnewsindia.in 5

6 Why Cloud? High Cost of IT Hardware purchase and software licenses(h/w & S/w) Low usage of current IT infrastructure (25-55%) High Depreciation costs of hardware (42-50%) Power/Cooling costs add on to server costs Not Environment Friendly High pace of hardware obsolescence Heavy rental costs Cost of IT Manpower (engineers, IT experts etc.) Time to deployment is very high Time reduced from many months to a few hours 6

7 Why target SMEs? Backbone of the economy- 35 million in number giving employment to 70% of India workforce 95% of industrial units are SMEs which give 45% of industrial output Contribution of SMEs to national GDP to reach 55% They provide 40% of exports Supply vital components and ancillary parts to many big industries like automobile, agriculture, construction equipment and electronics According to ASSOCHAM, an increasing number of SMEs are technologically upgrading their infrastructure in an endeavor to boost their production and exports and cut down input costs 7

8 Glimpse of SMB market in India Facts No of SMBs across India:- Around 3 million+. Why IT is required for SMB? High growth requires requires high speed information exchange and management Globalization & Optimization. To enhance technology adoption High security and reliability of data Challenges faced by SMB High CapEx investment Diversified IT equipments Difficulty to manage various vendors/it business partners. No justified ROI Lack of IT skills (manpower) Headache of Operating/managing/ Up gradations Time to implement 8

9 CLOUD : SMB Business pain points Ready Labor Pool Most of the units face challenges with regards to availability of business ready talent, and are forced to invest in training Operational Efficiency SMB s are struggling with operational efficiency, operate at sub-optimal levels of production, & lack integration of biz processes Risk Mitigation Strategy Most SMBs have a small set of customers and have not diversified their risks, and run high business risks Source 2012, : NIIT Zinnov, Technologies India SaaS Limited Opportunity August,

10 CLOUD : SMB & Technology pain points Lack of Technology Know-how SMBs look for a complete solution rather than a standalone product They look at PCs and peripherals as additional costs Unclear Return on Investments SMB owner expects the quantified benefits such as growth in revenues/profit margin or significant cost savings. High investments made in legacy systems High cost for technical support SMBs have to often choose between a regular support with high cost or settle down to limited support at economical price. However, neither of the two options solves the need for technical support SMBs invest in technology solutions on a long term basis. Frequent technological development is not welcomed by them. Source 2012, : NIIT Zinnov, Technologies India SaaS Limited Opportunity August,

11 Will SMEs adopt CLOUD An SME perspective on Cloud Computing ENISA, November

12 Q & A 12