More Related Content Similar to Walking on the Cloud (20) Walking on the Cloud 1. "Walk On The CLOUD"
How Businesses Need to
Think to Profit from Cloud
Shantanu Upadhyay
Oct 12, 2011
2. Cloud Computing: An OLD idea whose time has come
“Computation may someday be organized as a
public utility.”
1 — John McCarthy, 1961
© 2011 Deloitte Touche Tohmatsu India Private Limited
3. Cloud is driving consumerisation of IT…
Paradigm shift Cloud is…
Consumers Enterprises Blurring the line between consumer and
enterprise IT
• Innovations from the consumer space are finding
their way into enterprise space
Industrializing IT – enabling pay-per-use,
bringing IT to new segments
• Bringing non-users like SMBs/ SOHOs into the fold
• Within enterprises, empowering lines of business
Democratizing innovation, enabling players to
experiment with new models irrespective of size
• New businesses such as Netflix, Groupon et al have
been built on Cloud platforms
Source: Deloitte Analysis, analyst reports, press releases, primary interviews with industry players, SMEs and end clients CIOs
2 © 2011 Deloitte Touche Tohmatsu India Private Limited
4. …and will enable IT to inject itself more deeply into
product functionality/ business processes
IT Expenditure Vs. IT price index (US)1 Illustrative example for IT scope expansion: ERP
Production
IT Expenditure Index (% of real GDP)
250 250 Support processes E-Commerce
scheduling (MRP),
integration (finance, extensions,
Inventory
HR, logistics) productivity
200 200 management
improvements
IT Price Index
150 150
100 100 1960 1970 1980 1990 2000 2010
Customized Supplier integration,
50 50
production, budget Customer
and cost controls management
0 0
1990 1995 2000 2005 2010
IT Price Index IT Expenditure Index
Note: Year 2005 value normalized to 100 Cloud could enable ERP/ IT scope to potentially expand
to newer areas involving
• Traditionally, despite falling costs, IT
budgets have remained constant or has • Leveraging unstructured data to drive optimization
expanded
‒ Intelligent warehousing – auto inventory management
• Going forward, cloud will further push
current costs down, freeing up IT budget
• Automating newer activities and workloads
to be spent in new areas
1. Based on data for information processing equipment and software investments, including computers, peripherals, software and communication equipment
Source: U.S. Bureau of Economic Affairs, Deloitte Analysis
3 © 2011 Deloitte Touche Tohmatsu India Private Limited
5. Cloud allows businesses to transform IT architecture
from “Inside-out” to Outside-in”
Key characteristics of an “Outside-in” approach
• An ability to connect a very diverse set of external parties to a
common platform
• A distinct “policy layer” that enables autonomous partners to set
business policies and preferences
• An ability to facilitate coarse-grained, long-lived transactions
• Compensation mechanisms that cope with unanticipated
developments and modify interactions
Source: John Hagel & John Seely Brown, Deloitte Center for the Edge
4 © 2011 Deloitte Touche Tohmatsu India Private Limited
6. The future is already here – Rearden Commerce
One-stop travel network enabled by
cloud
2.8 million Over 5600
consumers Corporate Clients
§ A next generation e-commerce platform that
offers apps, services, content and
personalization for travel and expense
management
Travel § For consumers, makes the web a highly
“Orchestrator” intelligent, personalized and unified experience
§ For merchants, provides a large-scale,
relevance-based one-to-one market place
Travel Car Rental Hotels and Service
Agents Agencies Restaurants Contractors
160,000 strong merchant network/
suppliers
Source: John Hagel & John Seely Brown, Deloitte Center for the Edge; Reardon company website
5 © 2011 Deloitte Touche Tohmatsu India Private Limited
7. The future is already here - redBus
Bus operators with limited or no IT redBus solutions for Bus operators
BOSS inventory management solution for
bus operator
Bus Operator Software Service (BOSS)
Churn Internal IT
Amazon web services IaaS Suite
Seat Seller SaaS
SeatSeller for eCommerce companies
Business challenges and travel agents
• Fragmented marketplace
• Significant customer churn
• Low differentiation IT asset-lite bus operators
• Poor customer service
Source: Press releases, Amazon case study, redBus website
6 © 2011 Deloitte Touche Tohmatsu India Private Limited
8. The future is already here – TradeCard
Supply chain collaboration and trade
financing platform
Inspection Raw material
Buyers
companies providers
§ TradeCard is a supply chain collaboration and
trade finance platform
§ Serves 4000+ manufacturers, retailers,
Smart Symmetric suppliers and service providers in 50 countries
Sourcing Trading Information
Network
§ In addition to connecting buyers and sellers,
also includes providers for logistics, payment
protection, inspection and export financing
§ Lean financial and physical processes; visible
Transportation flow of money, data and products enabling true
Financial Suppliers
and shipping multi-enterprise collaboration
institutions
companies
Source: John Hagel & John Seely Brown, Deloitte Center for the Edge; TradeCard company website
7 © 2011 Deloitte Touche Tohmatsu India Private Limited
9. Prescriptions for businesses
1. Evaluate cloud beyond pure IT cost-reduction and flexibility play
2. Develop experience with Cloud platforms at an early stage to prepare for
possible disruptions
3. Explore Harnessing “Outside-in” approach to orchestrate Cloud-enabled
scalable network-based differentiation/ business models
8 © 2011 Deloitte Touche Tohmatsu India Private Limited
10. “A pessimist only sees the dark side of the clouds, and mopes; a
philosopher sees both sides and shrugs; an optimist doesn't see the
clouds at all--he's walking on them.”
– Leonard L Levinson
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