Cloud computing strategy and key parameters required for success in offering Cloud services specific to Indian market. This market is the biggest potential opportunity with an immediate scope for business growth.

1. Business Model and strategy
research- Cloud Computing
Indian Opportunities
Road map and challenges for success
Opportunity US $ 5bn with 30% CAGR
Prepared by Debasish Choudhury
Mail : debasishchoudhury.sai@gmail.com
http://in.linkedin.com/in/debasishchoudhury

2. Goals and Objectives
Section-A : Understand the relevant cloud for India
• Understanding the perspectives
• Key movers
Section-B Identifying the existing opportunities (From slide No 32)
• Identifying the most viable Cloud computing opportunity for India
• Customer business value and business opportunities
• Solution and business need (Products)
• External dependencies and strategic partnership eco system
• Target segment and captive opportunities
• Go to market strategy and business roll outs
• Suggestive pricing and revenue ( Grab a secret)
Section-C: Deep insight and correct techno commercial sizing (From slide 46)
• How to compete with established bigies & their weakness
• Key technical features required in product and solutions

3. Section-A
Understanding The Cloud computing in perspective to
India – A definitive view beyond the hypes

4. Cloud Computing - Some terms
 Term cloud is used as a metaphor for internet
 Concept generally incorporates combinations of the
following
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Software as a service(SaaS)
 Not to be confused with
Grid Computing – a form of distributed computing
 Cluster of loosely coupled, networked computers acting in concert to
perform very large tasks
Utility Computing – packaging of computing resources such as
computing power, storage, also a metered services
Autonomic computing – self managed

5. Grid Computing
 Share Computers and data
 Evolved to harness inexpensive computers in Data center to solve variety of problems
 Harness power of loosely coupled computers to solve a technical or mathematical problem
 Used in commercial applications for drug discovery, economic forecasting, sesimic analysis and
back-office
 Small to big
 Can be confined to a corporation
 Large public collaboration across many companies and networks
 Most grid solutions are built on
 Computer Agents
 Resource Manager
 Scheduler
 Compute grids
 Batch up jobs
 Submit the job to the scheduler, specifiying requirements and SLA(specs) required for running the job
 Scheduler matches specs with available resources and schedules the job to be run
 Farms could be as large as 10K cpus
 Most financial firms has grids like this
 Grids lack automation, agility, simplicity and SLA guarantees

6. Utility Computing
More related to cloud computing
Applications, storage, computing power and network
Requires cloud like infrastructure
Pay by the drink model
Similar to electric service at home
Pay for extra resources when needed
To handle expected surge in demand
Unanticipated surges in demand
Better economics

7. Cloud computing – History
• Evolved over a period of time
• Roots traced back to Application Service
Providers in the 1990’s
• Parallels to SaaS
• Evolved from Utility computing and is a
broader concept

8. Cloud computing
 Much more broader concept
 Encompasses
 IIAS, PAAS, SAAS
 Dynamic provision of services/resource pools in a co-ordinated fashion
 On demand computing – No waiting period
 Location of resource is irrelevant
 May be relevant from performance(network latency) perspective, data locality
 Applications run somewhere on the cloud
 Web applications fulfill these for end user
 However, for application developers and IT
 Allows develop, deploy and run applications that can easily grow capacity(scalability),
work fast(performance), and offer good reliability
 Without concern for the nature and location of underlying infrastructure
 Activate, retire resources
 Dynamically update infrastructure elements without affecting the business

9. Clouds Versus Grids
 Clouds and Grids are distinct
 Cloud
Full private cluster is provisioned
Individual user can only get a tiny fraction of the total resource pool
No support for cloud federation except through the client interface
Opaque with respect to resources
 Grid
Built so that individual users can get most, if not all of the resources
in a single request
Middleware approach takes federation as a first principle
Resources are exposed, often as bare metal
 These differences mandate different architectures for each

10. Commercial clouds

11. Cloud Anatomy
 Application Services(services on demand)
 Gmail, GoogleCalender
 Payroll, HR, CRM etc
 Sugarm CRM, IBM Lotus Live
 Platform Services (resources on demand)
 Middleware, Intergation, Messaging, Information, connectivity etc
 AWS, IBM Virtual images, Boomi, CastIron, Google Appengine
 Infrastructure as services(physical assets as services)
 IBM Blue house, VMWare, Amazon EC2, Microsoft Azure Platform, Sun Parascale and more

12. Cloud Computing - layers
Layers Architecture

13. What is a Cloud?
Individuals Corporations Non-Commercial Privatet
Cloud Middle Ware
Storage OS Network Service(apps) SLA(monitor),
Provisioning Provisioning Provisioning Provisioning Security, Billing,
Payment
Resources
Services Storage Network OS

14. Why cloud computing
Data centers are notoriously underutilized, often idle
85% of the time
Over provisioning
Insufficient capacity planning and sizing
Improper understanding of scalability requirements etc
including thought leaders from Gartner, Forrester, and
IDC—agree that this new model offers significant
advantages for fast-paced startups, SMBs and
enterprises alike.
Cost effective solutions to key business demands
Move workloads to improve efficiency

15. How do they work?
A conventional legacy view as observed by many
 Public clouds are opaque
 What applications will work well in a cloud?
 Many of the advantages offered by Public Clouds appear useful for “on
premise” IT
 Self-service provisioning
 Legacy support
 Flexible resource allocation
 What extensions or modifications are required to support a wider
variety of services and applications?
 Data assimilation
 Multiplayer gaming
 Mobile devices

16. Cloud computing – Characteristics
A conventional legacy view as observed by many
 Agility – On demand computing infrastructure
 Linearly scalable – challenge
 Reliability and fault tolerance
 Self healing – Hot backups, etc
 SLA driven – Policies on how quickly requests are processed
 Multi-tenancy – Several customers share infrastructure, without
compromising privacy and security of each of the customer’s data
 Service-oriented – compose applications out of loosely coupled
services. One service failure will not disrupt other services. Expose
these services as API’s
 Virtualized – decoupled from underlying hardware. Multiple
applications can run in one computer
 Data, Data, Data
 Distributing, partitioning, security, and synchronization

17. Public, Private and Hybrid clouds

18. Public clouds
Open for use by general public
Exist beyond firewall, fully hosted and managed by the
vendor
Individuals, corporations and others
Amazon's Web Services and Google appEngine are
examples
Offers startups and SMB’s quick setup, scalability,
flexibility and automated management. Pay as you go
model helps startups to start small and go big
Security and compliance?
Reliability concerns hinder the adoption of cloud
Amazon S3 services were down for 6 hours

19. Public Clouds (Now)
 Large scale infrastructure available on a rental basis
 Operating System virtualization (e.g. Xen, kvm) provides CPU isolation
 “Roll-your-own” network provisioning provides network isolation
 Locally specific storage abstractions
 Fully customer self-service
 Service Level Agreements (SLAs) are advertized
 Requests are accepted and resources granted via web services
 Customers access resources remotely via the Internet
 Accountability is e-commerce based
 Web-based transaction
 “Pay-as-you-go” and flat-rate subscription
 Customer service, refunds, etc.

20. Private Clouds
 Within the boundaries(firewall) of the organization
 All advantages of public cloud with one major difference
 Reduce operation costs
 Has to be managed by the enterprise
 Fine grained control over resources
 More secure as they are internal to org
 Schedule and reshuffle resources based on business demands
 Ideal for apps related to tight security and regulatory concerns
 Development requires hardware investments and in-house
expertise
 Cost could be prohibitive and cost might exceed public clouds

21. Clouds and SOA
 SOA Enabled cloud computing to what is today
 Physical infrastructure like SOA must be discoverable, manageable
and governable
 REST Protocol widely used(Representational State Transfer)

22. Clouds for Developers
• Ability to acquire, deploy, configure and host
environments
• Perform development unit testing,
prototyping and full product testing

23. Open Source Cloud Infrastructure
 Simple
 Transparent => need to “see” into the cloud
 Scalable => complexity often limits scalability
 Secure => limits adoptability
 Extensible
 New application classes and service classes may require new features
 Clouds are new => need to extend while retaining useful features
 Commodity-based
 Must leverage extensive catalog of open source software offerings
 New, unstable, and unsupported infrastructure design is a barrier to
uptake, experimentation, and adoption
 Easy
 To install => system administration time is expensive
 To maintain => system administration time is really expensive

24. Open Source Cloud Ecosystem - Tools
• RightScale
– Startup focused on providing client tools as SaaS
hosted in AWS
– Uses the REST interface
• Canonical
– Ubuntu 9.10 (Karmic Koala)
– Includes KVM and Xen Hypervisors

25. Open Source Cloud Anatomy
 Extensibility
Simple architecture and open internal APIs
 Client-side interface
Amazon’s AWS interface and functionality (familiar and testable)
 Networking
Virtual private network per cloud
Must function as an overlay => cannot supplant local networking
 Security
Must be compatible with local security policies
 Packaging, installation, maintenance
system administration staff is an important constituency for uptake

26. Eucalyptus(Elastic Utility Computing Architecture Linking Your
Programs To Useful Systems)

27. Clouds and Virtualization
 Operating System virtualization (Xen, KVM, VMWare, HyperV)
is only apparent for IaaS
AppEngine = BigTable
 Hypervisors virtualize CPU, Memory, and local device access as
a single virtual machine (VM)
 IaaS Cloud allocation is
Set of VMs
Set of storage resources
Private network
 Allocation is atomic
 SLA
 Monitoring

28. Cloud Performance
Extensive performance study using HPC applications and
benchmarks
Two questions:
Performance impact of virtualization
Performance impact of cloud infrastructure
Observations:
Random access disk is slower with Xen
CPU bound can be faster with Xen -> depends on configuration
Kernel version is far more important
No statistically detectable overhead
AWS small appears to throttle network bandwidth and
(maybe) disk bandwidth -> $0.10 / CPU hour

29. Clouds – open for innovation

30. Cloud computing open issues
 Governance
 Security, Privacy and control
 SLA guarantees
 Ownership and control
 Compliance and auditing
 Sarbanes and Oxley Act
 Reliability
 Good servive provider with 99.999% availability
 Cloud independence – Vendor lockin?
 Cloud provider goes out of business
 Data Security
 Cloud lockin and Loss of control
 Plan for moving data along with Cloud provider
 Cost?
 Simplicity?
 Tools
 Controls on sensitive data?
 Out of business
 Big and small
 Scalability and cost outweigh reliability for small
businesses
 Big businesses may have a problem

31. Battle in the cloud
• Amazon Web Services
• Google App Engine
– Free upto 500 MB,
• Free for small scale applications?
• Universities?
– Pay when you scale
• GoGrid
• .. Some more Hosting companies
• Where is HP, IBM, Oracle(+sun) and Dell?

32. Section-B
Bring the cloud to shower the bounty– Go, build
and empower

33. Re asserting the objectives
• Identifying the most viable Cloud computing opportunity for
India
• Customer business value and business opportunities
• Solution and business need (Products)
• External dependencies and strategic partnership eco system
• Target segment and captive opportunities
• Go to market strategy and business roll outs
• Suggestive pricing and revenue ( Grab a secret)

34. Don’t Ignore : Microsoft and Amazon face challenges
 Globus/Nimbus
 Client-side cloud-computing interface to Globus-enabled TeraPort cluster at U of C
 Based on GT4 and the Globus Virtual Workspace Service
 Shares upsides and downsides of Globus-based grid technologies
 Enomalism (now called ECP)
 Start-up company distributing open source
 REST APIs
 Reservoir
 European open cloud project
 Many layers of cloud services and tools
 Ambitious and wide-reaching but not yet accessible as an implementation
 Eucalyptus
 Cloud Computing on Clusters
 Amazon Web Services compatible
 Supports kvm and Xen
 Open Nebulous
 Joyent
 Based on Java Script and Git

35. Identifying the most viable Cloud computing opportunity for
India
• What is the hidden IT pilferages in India
– The hardware market enjoys healthy sell. PC,LAN, Routers, servers etc
– There is an estimate of US $ 4 bn OS piracy
– Un successful attempt in open source having a grip on US $ 12BN
– Other applications pirated, infringed, locally developed US $ 16BN
– Beyond budget scenario killing an US $ 20 Bn market of ERP,CRM,SCM,MAIL,
DB etc in SME, Govt, Education etc
• What differentiates & brings a compelling Cloud on pay per
use or flexible usage
– Remote OS and desktop applications
– Customized ERP & CRM for SME and Retail chains from cloud with flavour of
private cloud
– Clustered virtualised DB services without load of licensing and on hosted
model
– Education content digitised and on affordable scale
– Foot on street with resellers on commission basis

36. Identifying the most viable Cloud computing opportunity for
India
an example ( offering pitch of a major SI to a major Government entity)
I. Infrastructure as a service for :
•Roll out of new applications whose usage is un
predictable
•Development and testing platforms
•Infrastructure that is coming up for refresh
II. DR as a service for mission –Critical
applications
•Application on SAAS mode
•Document Management system
•Online CMS
•Design and build private cloud

37. Customer business value and business opportunities
• OS & Office applications
– The OS license per user when offered from cloud reduces the overhead and contributes
higher sale at lower prices
– Enhanced office applications lead customization and continued revenue
• DB & Web servers
– DB designed from cloud will reduce the cost up to 80% to user and increase the
marketability by 1200%
– Back up and restoration can be very cheap and profitable
• ERP, CRM & BPM
– The license cost is nominal but customization and infrastructure backed by Cloud will
reduce the cost to 75% !!
– Open up the health exchange services
• Multi media content
– A huge hit for education
• Personalised services
– Services like web talk will move to new heights
– Social networking to new revenue
– New developed and open market place for innovative software developments !!

38. Solution and business need
• Target retail
– A huge base of retail under price pressure and not capable to avoid the hardware cost.
But compromise on OS & Application
– Package and hybrid for Private cloud with :
• CRM
• ERP
• BI & DWH
• BPM
• SCM
• Target Education ( Primary and higher)
– Packaged content of education multi media for regions and states and launched through
partners
• Target Govt
– A comprehensive partnered OS, MAIL, DB, WEB and ERP
• Target New Tech SME & big industries
– Up coming segments of Pharmacy, Chemical , power & auto
• Target home and domestic
– House hold PC is a sleeping dragon over god mine !!

39. External dependencies and ecosystem
• ISV and Applications
– Segment basis applications like Mail, finance & accounting, CRM, ERP need to be looped.
– Regional and clustered opportunity need to be tweaked and packed in a clod
• Resellers
– VAR and IT sellers to map the lead to closures
• SI and tech partners
– Customize to build private clouds and offer dedicated help desks
• Infrastructure players
– Connectivity and data centers

40. Target segment and captive opportunities
• Retail
– The opportunity lies with 200 plus organised retailes
• Education ( Primary and higher)
– Pan India primary education
– Engineering colleges
• Govt
– Indian Railways and state e-gov
• New Tech SME & big industries
– Chemical and drug + hospitals
– Automotive
– Power
• home and domestic
– Education
– Entertainment

41. GO To Market (GTM) & BUSINESS ROLL OUT
• Capturing the business need of high volume high margin segments
– Package the offering
– Build the re seller
– Target retail and education on phase-1 and Govt on Phase-2 and domestic on phase-3
• Design the offerings
– Create various flavours in collaboration with applications
• Build the cloud in offering mode
– Deploy the applications
– Build the fulfilment models
– Prepare the menu card
– Nurture the infrastructure provider
A time line of 3 to 6 months

42. Suggestive pricing and revenue
Three main purposes
 Software as a service (SaaS)
 Enterprise resource management through
internet
 Platform as a service (PaaS)
 Developing software on a shared platform on the
cloud
 Infrastructure as a service (IaaS)
 Getting service from a full computer
infrastructure through the internet
 Storage & databases

43. Suggestive pricing and revenue
• Collection of servers owned by a cloud
provider
• Cloud automatically utilizes the right no.
of servers, adding or releasing servers, as
load fluctuates
• Data Centers

44. Suggestive pricing and revenue- A reference
Wuxi China Cloud Computing Center at
IBM establishes the first Cloud Computing Center for software companies in China
the new Wuxi Tai Hu New Town Science and Education Industrial Park in Wuxi, China
• Offers emerging Chinese software companies the ability to tap into a virtual computing
environment to support their development activities.
• A shared facility, providing each company in the Wuxi Software Park with its own virtual data
center
• Enabled by IBM technology and service
• Managed with IBM Tivoli systems management products
• Hardware – IBM System x, System p and BladeCenter
• Benefits
– Up to 2Fast deployment of Rational software development environments
– 00K software developers, 100 companies
– Cost efficient shared infrastructure
"The China Cloud Computing Center represents a milestone in service-oriented
computing," said T. W. Liu, the chairman and CEO of iSoftStone. "It will allow
companies in the Wuxi Software Park to leapfrog to the newest computing
models and will provide an efficient IT platform for software development."

45. Suggestive pricing and revenue
• Converging Web-centric clouds and enterprise data centers
• Establishing Pan India but converged with worldwide cloud
computing centers to drive adoption
• Need to lead the way in bringing cloud computing benefits
to enterprises

46. Section-C
Major mismatch & weakness of major players :
Note the parameters required for success

47. Challenge for cloud system proposed by : Microsoft, Amazon,
Google & Sales force .
Enterprise Cloud : A complete out of reach of these major players
• Enterprise cloud need
– Specific business process and customizable Private clouds are not the feature in the
offerings of the above players.
• Security and reliability
– The business specific clustered security with partition of multi tenancy is the need.
– Multi level access is absent.
• Enhanced values and pricing
– Specific value added enterprise IT system is absent.
• Application developments
– Enterprise specific SDLC process is absent.

48. Challenge for cloud system proposed by : Microsoft, Amazon,
Google & Sales force .
Retail Cloud : A complete out of reach of these major players
• Retail cloud need
– Segment specific customized application is absent
• Business enhancement features
– Critical business need of SCM and ERP missing
– Other applications are too completed to access from cloud
• Operational need and compliances
– Various modules for small business missing
• Sharing and collaborating
– Various platforms to collaborate is absent
– Hitless merger from PC to business with applications is a total miss match

49. Challenge for cloud system proposed by : EMC, CISCO, ORACLE etc
IAAS /PAAS Cloud : Miles to go to reach the business
• On demand setup
– Sizing and dedicated feature based services absent
• Business centric maintenance
– Availability and SLA management to serve end customers is poorly managed
• Reliable multi tenancy
– Load and demand mapping without cost implication is totally ignored
• Business specific fabric computing
– High demand and on demand systems design with unique customization is long way to
go.
– Application and delivery models with complying to PCMM and ITIL standards poorly
mapped.