Duc C. Nguyen is the Business Development Manager of PRISM. He shared knowledges and experiences about Cloud Adoption in Vietnam.

1. PRISM Information Technology Services
Vietnam
Cloud Adoption in Vietnam
23rd May 2013
Nguyen Chi Duc
ducnguyen@prism.com.vn
Managed IT Services
Delivered by Prism, Powered by IBM

2. www.prism.com.vn
Agenda
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1. What is Cloud Computing?
2. Cloud Adoption in Vietnam
3. Challenges and issues for cloud adoption in Vietnam?
4. Summary
5. Q&A

3. www.prism.com.vn
What is cloud computing?
3
• Accenture’s definition “The dynamic provisioning of IT capabilities
(hardware, software or services) from 3rd parties over a network
(typically internet)”
• Essential characteristics
– Web-based IT Outsourcing
– Pay for what you use
– Fast scalability/elasticity
Virtualization
(Servers, Applications, D
esktops)

4. www.prism.com.vn
What is cloud computing?
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• Three basic cloud service models
Software as a Service
Fully featured traditional applications run on
web-based platform without local installation
Platform as a Service
(Virtualized servers on which users can run
existing applications of develop new ones)
Infrastructure as a Service
(Virtualized servers, networks, storage, system
software, desktops)

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What is cloud computing?
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• Three Cloud Deployment Models
Private cloud
- enterprise
owned or
leased
Public cloud –
Sold to the
public, shared
infrastructure
Hybrid cloud –
Composition
of Public and
Private clouds

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What is cloud computing?
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• Why invest in cloud computing?
– Reduce CAPEX spending on IT
infrastructure, migrating into an
OPEX environment
– Liberation of financial resources
which can be applied to core
business needs.
– Gain a competitive advantage by
being able to access and deploy new
business applications and IT services
more rapidly.
– Reduce on-going maintenance and
support costs, create a more flexible
and agile business operation * Source: IDG Research 2012

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What is cloud computing?
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• What are motivators for SMBs to move to the cloud?
– According to the recent global survey of 3,000 SMBs companies (2 – 250 employees)
*** Source: Edge
Strategies survey
commissioned by
Microsoft Corp, “SMB
Business in Cloud

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What is cloud computing?
8
• Primary drivers for cloud computing

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What is cloud computing?
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• Bringing clarity to total cost of ownership
– Ex: A cloud-based HR information system (HRIS) at a SMB Company (less than
5,000 employees) (Source: SuccessFactors)
• Multiple fragmented billing mechanism
• Challenging to ascertain total cost
• Multiple vendors to deal with
• Simplified billing structure
• Clear total cost and annual pricing
• Reduced costs
implementation
31%
Subcription
52%
Cost saving
17%
Graph 1: Pre-Cloud Adoption Graph 2: Post-Cloud Adoption

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What is cloud computing?
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• Understand life-cycle costing
– Total cost of ownership (TCO) of cloud-based application is significantly
lower than on-premise options.
– In-house model assumes five year recurring investment cost cycle
*** Source: SuccessFactors
Graph 3: Typical Cost for SMEs (less than 5,000 e

11. www.prism.com.vn
What is cloud computing?
Four mega trends will dominate the next decade
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* Source: Microsoft Vietna

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Agenda
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1. What is Cloud Computing?
2. Cloud Adoption in Vietnam
3. Challenges and issues for cloud adoption in Vietnam?
4. Summary
5. Q&A

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Cloud Adoption in Vietnam
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Government is one of key
drivers to support
development of cloud-
computing in Vietnam
- The Ministry of Education & Training (MoET) started using cloud services
as a way of cutting cost;
- The Ministry of Natural Resources and Environment claimed to have
realized 20% investment cost saving after an initial period of virtualizing
IT infrastructure. The Ministry has now put in place a strategy for more
utilization of cloud computing in IT applications and is putting in place
standards and policies to enable this.
- Cloud Adoption in Vietnam will move from Pilot Phase to Deployment
Across Broad Applications (IDC Vietnam ICT 2012 Top 10 Predictions, Feb
2012)

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Cloud Adoption in Vietnam
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- SaaS (Software as a service)
Source: PhD. Huan Tran, IBM

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Cloud Adoption in Vietnam
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- It’s still a low starting point of cloud
adoption in 2013  Potentially more
rooms for development in for the time
being
- Global and local economic
uncertainties and challenges are still
ahead  CAPEX (Capital
Expenditures) vs. OPEX (Operation
Expenditures)
- IT services vs. Total IT market ~ 18.7%
(2012) and forecasted to 22.3% (by
2017)  more focus on Services
- Cloud market will achieve growth of
300% – 400% from 2013 –
2017, (BMI, Vietnam IT Forecast Report
Q2-2013, Includes 5-years forecast to
2017);

16. www.prism.com.vn
Agenda
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1. What is Cloud Computing?
2. Cloud Adoption in Vietnam
3. Challenges and issues of cloud adoption in Vietnam?
4. Summary
5. Q&A

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Challenges and issues of Cloud Adoption in Vietnam?
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• Market challenges and tougher
competitiveness
– Global and local economic recession
– Increasing cost of operations e.g. power
and fuel pricing hike, HR min salary
increased, VND devaluation, etc.
– High pressure of lower selling prices and
shrinking margins vs. increasing costs of
materials
*** Sources: VCCI, GSO
GDP Annual Grow

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Challenges and issues of Cloud Adoption in Vietnam?
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- Market Maturity
- Vietnam is an emerging market  latency of new technology applications
at enterprises e.g. ERP (>5 years), service oriented, cloud-
computing, managed services, etc.
- Low awareness and readiness
- Roles of IT in business under management view point - as a cost center vs.
service business/profit center to support business development
- IT & Business strategy is not fully integrated
- Service providers
- Trusted? Qualified? Professional?
- Others
- Security?
- Performance?
- Stability?
- High availability?
- Cost effectiveness?

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Challenges and issues of Cloud Adoption in Vietnam?
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- One model can’t fit all
- Public cloud vs. private cloud vs. hybrid cloud?
- Which applications e.g. CRM, ERP, core
applications, HRM, payroll, etc.?
- Which field of business e.g. sales, marketing, HR, IT, accounting, etc.?
- Which stage of business development should be a right fit?
- Which business size e.g. SMBs vs. LE, local vs. MNCs, etc.
- Cloud computing is suitable for all with various options that can fit
enterprise’s needs

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Challenges and issues of Cloud Adoption in Vietnam?
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- A big wave is coming that we
can’t resist
- It’s a matter of
- Awareness, Preparation and
Planning to deal with it
- Being the market leader or a
follower

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What’s cloud computing?
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• How’s global cloud ERP adoption?
– Many companies in supply chain and manufacturing sectors in APAC
region plan to migrate their ERP to cloud as per a recent study from
Frost & Sullivan (2011)

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Challenges and issues of Cloud Adoption in Vietnam?
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- Enterprise management solutions e.g. ERP, CRM, HRM, Project
management (PM) – on premise vs. cloud (SaaS)?
- International leading cloud-based players have been coming …..
- Local players are ready to go with cloud for local SMBs ……

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Challenges and issues of Cloud Adoption in Vietnam?
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- Market leaders always are the fastest new technology adopters

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Agenda
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1. What’s Cloud Computing?
2. Challenges in supply chain
3. How cloud-computing transform the supply chain?
4. Summary
5. Q&A

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Summary
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• Cloud computing is significantly changing the way we run our businesses
• Cloud migration is a key component of IT strategy, aligning and supporting
business growth across all sectors
• Example: Via Social Enterprise:

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Summary
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Summary
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CIOs are drawn to
cloud’s
cost, efficiency and
control….
…while business executives
are drawn to cloud’s
simplified, self-service
experience and faster
delivery to the market
*** Source: IBM CIO Study, London
School of Economics, 2011

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Challenges and issues of Cloud Adoption in Vietnam?
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- A big wave is coming that we
can’t resist
- It’s a matter of
- Awareness, Preparation and
Planning to Deal with and How
to take it
- Being the market leader or a
follower

29. www.prism.com.vn
Q&A
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• Please contact ducnguyen@prism.com.vn or duc_nguyen71@yahoo.com