1. Cloud-Computing :Why Industries
Should Look To It
A guide for Managers
Sanyam Goyal
July, 2009

2. Agenda
Challenges/Problems with Current Industries
• CapEx. Vs OpEx.
• Balancing Resources and Cost
• Tedious Software Cycle
How can we solve the problem
• Cloud Computing as a Solution
Benefits of using cloud-approach
• Ensuring Security and Reliability
Cloud Vs On-Premise IT
The Deloitte Approach
Conclusion
Copyright © 2007 Deloitte Development LLC. All rights reserved. 1

3. Challenges with Current IT Model of industries
Capital Expenditure(CapEx) and Operational
Expenditure (OpEx)
– High capital expenditure, high startup cost
– Operational expenditure at low volume is not optimal
• Equipment
• Installation • Maintenance
• Floor Space • Power
• Software Licensing • Network Operation
• Software • Failures
Development • Other Services
CapEx OpEx
Copyright © 2007 Deloitte Development LLC. All rights reserved. 2

4. Challenges with Current IT Model of industries
Balancing Resources and Cost
Resource Utilization and Peak Performance
• Ensuring acceptable peak performance requires extra
capacity
• This results in resources being underutilized most of the
time
Scaling Up
• Scaling up to meet new demands is a lengthy and
expensive process
• Matching capacity with demand is challenging
Copyright © 2007 Deloitte Development LLC. All rights reserved. 3

5. Challenges with Current IT Model of industries
Tedious Software Management Cycle
• Licensing Cost
• Running cost of maintenance Licensing
and failures
• Cost of updating software
• Upgrades to newer software Upgrading Maintenance
takes time and money
Updates Failures
Copyright © 2007 Deloitte Development LLC. All rights reserved. 4

6. How can we solve the problem ?
• Use Assets as Service
– SaaS (Software as a Service)
– PaaS (Platform as a Service)
– IaaS (Infrastructure as a Service)
• Pay based on utility just like paying a taxi bill
• Internet based subscription offering
• On-demand Service Offering
Copyright © 2007 Deloitte Development LLC. All rights reserved. 5

7. Cloud Computing : A Solution
Infrastructure As A
Service
IaaS PaaS Platform As A Service
• Software stack as service
• Servers, data-Centers • Supports complete software
•Dynamic and Flexible development cycle
scaling of resources • Dynamic runtime resource
allocation
SaaS
Software As A Service
• Remote access to
traditionally on-site
software
• Simple client software
(eg. Web Browser)
• Subscribe or pay as
much as you use
Copyright © 2007 Deloitte Development LLC. All rights reserved. 6

8. Benefits of using cloud-approach
• A single provider serves many clients
– Economies of scale
– Dynamic capacity
provisioning
– No maintenance cost for
clients
Copyright © 2007 Deloitte Development LLC. All rights reserved. 7

9. Benefits of using cloud-approach
Licensing,
Maintenance,
Ubiquitous Access
Upgrading of
Software
Service
Provider
Latest Technology Secure Infrastructure
Copyright © 2007 Deloitte Development LLC. All rights reserved. 8

10. Security and Reliability
Service providers have the following features
to ensure security and reliability -
Security
• Data encryption
• Access Control
• Dedicated Resources
Reliability
• Service Level Agreement
• Redundancy
Copyright © 2007 Deloitte Development LLC. All rights reserved. 9

11. Cloud Vs On-Premise IT
Cost Saving in Operating Expenditure (OpEx) Data Based on the
study from various
cloud-offering and a
typical Industry
Reduce TCO of Requirements
Software by
Real Estate Cloud
50% by
leveraging On Premise
Software as a Electricity
Service &
Platform as a Maintenance
Service
Staff Salary
100TB of storage
Reduces time-to- Bandwidth space on cloud can
market from 6-8 save $1M per year
weeks to few min Storage by leveraging
by leveraging Storage as a Service
Infrastructure as a Computing Power
Service
0 2 4 6 8 10 12
x 100000 Rs
Analysis by Infosys-Labs
Courtesey:infosysblogs
Copyright © 2007 Deloitte Development LLC. All rights reserved. 10

12. The Deloitte Approach
• Consider These When choosing a Service Provider
– Privileged user access.
– Regulatory compliance.
– Data location
– Data segregation
• Tested encryption techniques
– Recovery
• Reliable backup plans
– Long-term viability
• Study of both CapEx and OpEx
• Make Decision based on TCO benifits
Copyright © 2007 Deloitte Development LLC. All rights reserved. 11

13. Conclusion
• Cost Effective solutions
• Importance reflected in its growth rate
• Allows businesses to focus on innovation and
business logic instead of IT issues
• Provides competitive advantage for early
adopters
•IT Giants have understood the importance and
entered the market
Copyright © 2007 Deloitte Development LLC. All rights reserved. 12

14. Copyright © 2007 Deloitte Development LLC. All rights reserved.