Cloud Computing in India

A CIO Research Center Report

Supported by

Contents
Summary of Findings............................................................. Background............................................................................ Industry.................................................................................. CIO-Speak on Cloud Computing Technology Vendors............ Appendix A............................................................................ 3 4 5 13 22

CIO Research Center, provides in-depth research, analytics, and advisory services to CIOs and Technologists. We are focused on helping CIOs make the right technology decisions, both strategic and tactical. We are affiliated with the CIO Association of India, India’s largest independent association of CIOs.

The CIO Association of India is a member-driven, national, nonprofit organization serving CIOs and Heads of IT in India. CAI serves as the leading voice of the Indian CIO with industry, government, media, and others.

2

Amazon is the leading vendor. Microsoft (24%) has emerged the strongest contender for providing Cloud based services. it is about both. In Large Enterprises (more than 500 PCs) that are existing users. followed by Amazon. Among existing Cloud users. IBM. ‘Hosting of Applications’ is the most used service. This is followed by better scalability and the ability to switch from Capex to Opex. followed by Salesforce (13%) and Amazon (12%). Google has a much stronger perception among SMEs than among Large Enterprises. One out of every four organizations is currently using Cloud Computing for (parts of) its IT. More than half of the CIO respondents have started evaluating Cloud Computing. Google has gained the most ground as the Cloud Computing vendor. In SMEs (less than 500 PCs). Application Hosting (59%) and E-mail (48%) are seen as preferred services that CIOs expect to have on the Cloud in the near-term. It’s not about Public Cloud or Private Cloud. and Salesforce. closely followed by Microsoft and Google. ‘Cost Savings’ is the most important benefit CIOs are expecting from Cloud Computing. Google. Security continues to be the biggest concern for CIOs when looking at Cloud adoption. Microsoft is leading Cloud Computing adoption.l Cloud Computing is no longer considered “hype” by most CIOs. According to CIOs. Microsoft is best suited for their organization’s Cloud Computing needs. Among existing users (overall). Summary of Findings l l l l l l l l l l l l l 3 . In existing SME users. In Large Enterprises (more than 500 PCs). Amazon (16%) and Microsoft (16%) have a marginal lead over Google (15%). Almost 80% of CIOs believe that it will be an important constituent of their IT strategy within the next one year.

analytics. an affiliate of the CIO Association of India (CAI). have questions about the best way to harness the benefits of Cloud Computing in an evolving IT landscape. CIO Research Center. India’s largest independent association of CIOs. Reach: The survey was sent to the CAI member community and received 155 responses. CIO Research Center is grateful to Microsoft for supporting this research initiative. 2010. launched this survey in November 2010.Background Often cited as the most path-breaking technology paradigm today. 4 . software platforms and applications. Cloud Computing is rewriting the rules of the game when it comes to scalability and availability of dynamic computing resources. and advisory services to CIOs and Technologists. We are affiliated with the CIO Association of India. both strategic and tactical. CIO Research Center provides in-depth research. While India is fast adopting global trends. 2010. We are focused on helping CIOs make the right technology decisions. It is our belief that this survey report provides useful inputs to Indian CIOs for their cloud computing strategies. CIOs in the country. and responses were accepted till November 16. Duration: The survey was launched on November 12. to understand what CIOs perceive to be the true state of Cloud Computing in the country.

Number of PCs More than 5000 13% Less than 100 17% Between 100 and 250 13% Between 1000 to 5000 19% Between 250 and 500 22% Between 500 and 1000 16% 5 .Industry The survey received a good response from CIOs across the industrial landscape. Organizations with less than 500 PCs have been categorized as SMEs and more than 500 PCs have been designated Large Enterprises for the purpose of the report. followed by manufacturing and financial services. IT/ITeS CIOs were the highest in number. Industry Education 4% Telecom 1% Media and Entertainment 3% Others 14% Financial Services 13% Government and Public Sector 5% Healthcare and Pharma 6% Hospitality 1% Manufacturing 17% Retail/Wholesale Distribution 3% IT/ITeS 31% Infrastructure 2% Size of Organization There has been a well-balanced response in terms of number of PCs in the organization.

Clearly. But CFOs rank the lowest. Cloud Computing will be an important constituent of your organization’s IT Strategy within the next one year. Overall. 6 . Almost 80% of CIOs believe that it will be an important constituent of their IT strategy within the next one year. there seems to be a fairly high level of interest in Cloud Computing within their organizations. While most CIOs will look at Cloud Computing within the next year. there is still a small yet significant number of CIOs (18%) who are not sure about the Cloud. with only 3% of CIOs disagreeing that Cloud Computing will be an important constituent of their IT strategy. CIOs feel that among all the stakeholders. CIOs perceive a fair amount of interest in the models from the CEOs and the organization at large. in terms of interest in cloud computing. Disagree 3% Strongly Disagree 0% Not Sure 18% Strongly Agree 33% Agree 46% Key Finding 2: Despite the unique cost models involved. According to CIOs. the CFOs’ interest levels could certainly be better. CIOs are not unaffected by the benefits of the technology.Key Finding 1: Cloud Computing is no longer considered “hype” by most CIOs.

Has your organization evaluated Cloud Computing? No plans 10% Extensively 32% Planning to evaluate soon 36% Basic testing 22% 7 .903 3.232 4.187 3.394 3.No Interest. 32% of the respondents have done an extensive evaluation.026 3.206 Key Finding 3: More than half of the CIO respondents have started evaluating Cloud Computing.High Interest CEO CIO CFO COO IT Team Overall Organization 3.Level of Interest 1 . 54% of CIOs have evaluated Cloud Computing. 36% of the CIO community indicated that it already has plans to evaluate Cloud Computing in the near future. A substantial number of CIOs (46%) have yet to evaluate Cloud Computing. 5 .

8 .58% 68.35% 38.65% 39.65% 54.42% 36.23% 40. switch from CapEx to OpEx.84% 53. While the push towards Cloud Computing seems to be largely from Cost Savings (79%).74% 43. 66% of CIOs are apprehensive about security on the Cloud.10% 22. Integration with existing systems (hardware and software) also figures high in the trepidations of CIOs (30%) with regard to Cloud Computing.39% 79. with 45% of CIOs pegging this as their area of concern.13% 27. Another significant concern for CIOs is the over-dependence on vendors and whether that would lead to vendor lock-in – 33% of CIOs responded in the affirmative to this area of concern.55% 47. CIOs also look forward to the ability to scale better.Key Finding 4: ‘Cost Savings’ is the most important benefit CIOs are expecting from Cloud Computing. and benefit from easier maintenance – available from the Cloud vendor. Privacy Concerns come next.71% 37. What are the key benefits you are expecting from Cloud Computing? Cost Savings Better Scalability Switch from Cap Ex to OpEx Easier Maintenance Agility Improved Device and Location Independence Reliability Improvements Allows Core Business Focus Complexity Reduction Better Support Newer Technology Improved Security Great IT Other 0.35% Key Finding 5: Security continues to be the biggest concern for CIOs when looking at Cloud adoption.

Private Cloud seems to be a preferred model.What are your key concerns with regards to Cloud Computing? Security Privacy Concerns Vendor Lock-in Integration Issues Unclear ROI Compliance Legacy Integration Immature Technology Lack of Features Others 5% 5% 19% 19% 17% 23% 33% 30% 45% 66% Key Finding 6: It’s not about Public Cloud or Private Cloud. as against the Public Cloud. CIOs are influenced by the benefits of both the paradigms of Cloud Computing with 53% of CIOs responding that they would consider both the Private and Public Cloud. in direct comparison. it is about both. In the near future. your organization’s IT needs will be best managed by which of the following: None 5% Public Cloud 14% Both 53% Private Cloud 28% 9 . However.

A fair number of CIOs also indicated their interest in using Storage (41%) and Files & Database Hosting Solutions (35%) on the Cloud. which Cloud Computing services are of interest to your organization? Hosting of Applications E-mail Storage Files and Database Hosting CRM Computing Power/ Server Capacity Productivity Software (like Office) ERP Application Development and Testing Content Management System BI Desktop Operating System Desktop Software Other 5% 17% 35% 34% 33% 30% 30% 29% 26% 24% 21% 41% 48% 59% 10 . In the near future.Key Finding 7: Application Hosting (59%) and E-mail (48%) are seen as preferred services that CIOs expect to have on the Cloud in the near-term.

25% 40% 36.33% 26. which Cloud Computing services are of interest to your organization? Large Enterprises: In the near future.33% 61.25% 25% 23. which Cloud Computing services are of interest to your organization? Hosting of Applications E-mail Storage Files and Database Hosting CRM Computing Power/ Server Capacity Productivity Software (like Office) ERP Application Development and Testing BI Content Management System Desktop Operating System Desktop Software Other 6.50% 26.67% 29.67% 37.50% 20% 45% 50% 57.75% 22. which Cloud Computing services are of interest to your organization? SMEs: In the near future. which Cloud Computing services are of interest to your organization? Hosting of Applications E-mail Storage Application Development and Testing CRM ERP Computing Power/ Server Capacity Files and Database Hosting Content Management System Productivity Software (like Office) BI Desktop Operating System Desktop Software Other 4% 32% 32% 32% 30.67% 30.33% SMEs: In the near future.67% 14.Large Enterprises: In the near future.67% 22.50% 11 .25% 35% 32.50% 27.67% 18.33% 45.

followed by Amazon (14%) in the second place. based on CIO perception. Overall : Which vendor is best suited for your Cloud Computing needs? Microsoft Amazon IBM Google Salesforce. and IBM and Google in the third place (11%). who according to them would be best suited for their organization. Google and Salesforce. Responses helped tabulate the top ten Cloud Computing vendors in India.Key Finding 8: Based on CIO perception. Microsoft is best suited for their organization’s Cloud Computing needs. CIOs were asked to select one vendor. IBM. Salesforce comes in at the fifth position (at 10%).com VMware HP Oracle/Sun Citrix EMC Other 1% 11% 3% 6% 6% 10% 9% 11% 11% 14% 19% 12 . followed by Amazon. Microsoft (19%) is currently perceived to be the most preferred Cloud Computing technology provider.

[and have] invested a lot on strategy and implementation of the same.” 2. wider integration.. as there would be better sense of accountability and ownership from Microsoft. “Most of our applications are built on Microsoft technology and my team works almost exclusively on Microsoft.” “A reliable and responsible partner for Cloud Computing needs.. [we are] aligned to the organization and product suite. Microsoft scores over the other vendors because: “[It provides a] complete productivity suite including e-mail. are: “Our company has already tied up with Amazon.”“Very huge user base.” 13 .” “[Organizational] focus. Microsoft According to CIOs. and channel-play.”“Brand value.” “We work mostly on Microsoft platform and hence it makes best choice for us to consider [Microsoft’s] Cloud Computing.” “Constant upgrade support and strong research group. Amazon CIOs’ reasons for choosing Amazon. Live Meeting.CIO-Speak on Cloud Computing Technology Vendors This is what CIOs had to say: 1. scope of CRM applications. reach.” “[Of the] reduced learning curve [with Microsoft Cloud offerings] as these are the applications I am familiar with [and] migration is very easy.” “A very long relationship and the people from this vendor know [our] business”. Hence. the training and level of understanding would be much better and easier.“Enterprise agreement [and] clear roadmaps from the company.” “The service and support they provide are valuable. scale and maturity of solutions.” “[It brings in] savings on licence costs. It supports all the deployments in Cloud Computing. Sharepoint on the Cloud.”. if we need to migrate to the Cloud. [They have] good technology enhancements lined up.

and uptime.” 14 .” “Migration efforts [are] limited.” “Reliable.” “More broad-based expertise.” “Firstmover advantage and maturity of infrastructure.“With EC2. It also provides Content Distribution Servies (CDS) that helps in large content distribution.” “Office and email apps.” “Superior scalability and reliability.” “Range of features. pay-after. we feel confident.” “Our mailing service is partly on Google’s Public Cloud and as such we are quite satisfied with their service in terms of performance as well as support. forwardlooking. low costs.” 3. Google (Tied with IBM) CIOs preferred the Google Cloud offerings for the following reasons: “Already working with us.” “Established infrastructure.” “Hardware vendor neutral.” “Industry leader with state-of-the-art technology.”“Brand.” “Adoption of the [Google] Cloud SAAS services has been effective. especially its developer partner programs.” “Reliability and long-term partnership. trust.” “Continuous technology upgrades and the price – not always.” “Improved technology.” 4.”) “Providing Windows/SQL server machines images that are best suited to host existing products/applications. thus cheap and with open mindset. reliability and bandwidth.use.” “Good performance till date. IBM CIOs preferred IBM as a vendor for the following reasons: “Past performance and after sales service”.” “Proven track record.” “Multi-environment Operating System.” “Scalability. “IBM is in the services business in India and having dealt with it..” “Scale and large list of customers. [it is] secure for both hardware and software and technically competent. scalable.” “Flexible. reliable. agnostic to vendor/platforms.” “Big. maturity levels are higher.” “Cost-effectiveness.” “Constant investment in feature enhancement. which a lot of companies simply do not do. good support.” “Most advanced offerings in the areas of my needs. continuously improving..” “Pricing model and services” (however there was also an area of concern pertaining to “SLAs and payment structure – you must have a credit card to make payment.

” “Market leader.” “Services are the best available as of date in the industry.. who can support us in the maintenance and operations phases.” Other vendors: VMware “It is becoming popular with the number of clients and also affordability for smaller organizations is better. [We are] already a customer of HP. “Comfort” HP “Technology.” 5.” “Google has shown the world that yes they can deliver the Cloud services and that too in a very secure way. experience of working with vendor.” “Already in use and heavily integrated with our systems.“Already has a lot of good solutions on the Cloud.” 15 .” “Has a strong capable team in India.” “Cost-effectiveness and reliability. have good relations from a long time.” “Innovation.com is a preferred vendor among CIOs because: “[We are] currently using this. etc.” “For CRM they have good deployment experience.” “It also has tie up with public clouds such as Google.” “Offers the best-fit solution in accordance with our Relationship Business Model.meeting our business needs.” “[It’s] presence in market. It is affordable too.”“The application is clutter breaking and mostly idiot-proofed.” “Existing vendor.” “Mature product. good agility between current IT Infrastructure to accommodate newer platforms and business needs.. I feel they can actually support the real demand for the database hosting with a commitment to take care of any performance-related issues.” “They have most of what we need… least complicated processes.” “Existing vendor. large customer base. Velocity”.” “Adaptation of customer requirement is guaranteed.. It doesn’t require much by way of adaptability unlike SAP applications. Salesforce Salesforce. etc.” “Features.” Oracle “Since Oracle is a database and infrastructure provider.

” “Well established and reliable. Large Enterprises: Which vendor is best suited for your Cloud Computing needs? Microsoft Salesforce. our training investement and human resources knowledge base will be protected.com Amazon IBM HP Google VMware Citrix Oracle/Sun EMC Other 0% 11% 3% 3% 8% 8% 8% 12% 11% 13% 24% 16 . may be an edge for them. technology expertise.” Key Finding 9: In Large Enterprises (more than 500 PCs). So probably. Microsoft (24%) has emerged the strongest contender for providing Cloud based services.” “We are using Oracle ERP E-business Suite modules for all our group companies and as it is on Private Cloud so far. followed by Salesforce (13%) and Amazon (12%).” “Our business applications have been built on J2EE using Oracle’s Application Development framework and are on Oracle’s 10g Application Server.“Established infrastructure and platform with host of Application Suites. connected to an Oracle 10g Database.

Key Finding 10: In SMEs (less than 500 PCs). SMEs: Which vendor is best suited for you Cloud Computing Needs? Amazon Microsoft Google IBM VMware Oracle/Sun Salesforce.com 11% 15% 22% IT/ITeS CIOs prefer Microsoft (23%). followed by IBM (15%) and Salesforce (11%). Amazon (19%). Amazon does not have a strong presence here. and Google (15%) over the others.com HP Citrix EMC Other 3% 3% 12% 4% 7% 9% 11% 12% 15% 16% 16% Industry-wise findings: In the Manufacturing industry. Google has a much stronger perception among SMEs than among Large Enterprises (as a Cloud Computing vendor). CIOs find Microsoft (22%) better suited for their Cloud Computing needs. IT/ITES Microsoft Amozon Google 15% 19% 23% 17 . Amazon (16%) and Microsoft (16%) have a marginal lead over Google (15%). Manufacturing Microsoft IBM Salesforce.

A smaller. Almost 75% of CIOs have not adopted Cloud Computing yet. Government / Public Sector IBM Oracle/ Sun HP VMware 9% 9% 18% 27% Key Finding 11: One out of every four organizations are currently using Cloud Computing for (parts of) their IT. but a large number of them plan to deploy within the next one year. Financial Services Amozon Microsoft Salesforce. have indicated that they have no plans of adoption at this time. Microsoft (20%) and Salesforce (15%) as their Cloud vendors. Stage of Cloud Computing Adoption Already using Deployment in progress In the next 3 months 3-6 months 6-12 months 12 months hence No plans at this time 13% 18% 7% 13% 14% 8% 26% 18 . number–18% of CIOs however.Financial Services CIOs prefer Amazon (20%). IBM (27%) and Oracle/Sun (18%) have the strongest perception. yet significant.com 15% 20% 20% In the Government and Public Sector.

If you’re already using Cloud Services or deployment is in progress. Among the current users. “Hosting of Applications” is the most used service. application hosting seems to be the most common use of Cloud Computing. E-mail on the Cloud and CRM are other popular applications. which Cloud Computing services are you using/deploying? Hosting of Applications E-mail CRM Computing Power/ Server Capacity Application Development and Testing Content Management System Files and Database Hosting Productivity Software (like Office) Storage BI ERP Desktop Operating System Desktop Software Other 6% 11% 15% 13% 31% 30% 24% 22% 22% 20% 19% 35% 44% 56% 19 .Key Finding 12: Among existing Cloud users.

closely followed by Microsoft and Google. Overall: If you’re already using Cloud Services or deployment is in progress. Large Enterprises: If you’re already using Cloud Services or deployment is in progress.which vendor(s) are you using? Microsoft Amazon Salesforce. Amazon is leading other vendors. which vendor(s) are you using? Amazon Microsoft Google Salesforce.com VMware Google IBM Oracle/Sun Citrix EMC HP Other 0% 29% 4% 4% 7% 7% 18% 21% 29% 36% 39% 20 .Key Finding 13: Among existing users (overall). Microsoft is leading Cloud Computing adoption.com VMware EMC Citrix IBM Oracle/Sun HP Other 2% 39% 6% 6% 6% 7% 20% 24% 30% 30% 33% Key Finding 14: In large enterprises (more than 500 PCs) that are existing users.

85% 50% 19.31% 21 .54% 7.69% 3.com VMware EMC Citrix HP IBM Oracle/Sun Other 11.23% 19. Google has gained the most ground as the Cloud Computing vendor.Key Finding 15: In existing SME users.77% 42.23% 30.23% 19.85% 3.85% 3.which vendor(s) are you using? Google Amazon Microsoft Salesforce. SMEs: If you’re already using Cloud Services or deployment is in progress.

Loyalty Square Maharashtra State Electricity Distribution Co. HDFC Bank Hero Honda Motors Ltd. Ltd. AGC Networks Ltd. Altran Technologies India Pvt. Cisco CloudSwitch Inc. Lenovo Leon Computers Pvt. Ltd.Child Rights and You CSIL Deepak Nitrite Ltd.E.Institute of Technology KEI Industries Ltd. Ltd. Ltd. Ltd. Aeroprise Inc. Cordys CRY . Eyes on Watch India Pvt. Ltd. Aditi Technologies Advanced Enzyme Technologies Ltd. Mahindra Satyam 22 . Amway India Aniba Solutions Ashok Leyland Assyst International Pvt. Hyderabad GVK Biosciences Pvt. Ltd. Ltd. Ltd. Delhi Metro Rail Corporation Delhi State Cancer Institute Deloitte Destimoney Group Dewan Housing Finance Corporation Ltd. Biologicale Ltd. Glencore India Pvt. Eveready Industries India Ltd. B. N. Axis AMC Ltd. JCB India Ltd. Ltd. Ltd Genesis IT Innovations Ltd. Ltd. Grasim Pulp and Fiber dn GRIET. Ltd. Frameboxx Animation & VFX Ltd. JSL Stainless Ltd. KSB Pumps Ltd. Ltd. Ltd. of Engg. CB Richard Ellis South Asia Pvt. Ltd. Jubilant Life Sciences K. Glopore IMS GMR Group Godrej Properties Ltd. HSIIDC identLogic Systems INBISS Indian Renewable Energy Development Agency Infosys Infotech Enterprises ITTIAM Jamcracker Inc. KNP Sec Pvt. Center for CIO Leadership CESC Ltd. Accenture ACMIIL Adani Logistics Ltd. Automotive Manufacturers Pvt. Ltd.L. KPIT Cummins Infosystems Ltd. & Tech. M. Futuresoft Solutions Pvt. AFL Pvt. Droisys Einfochips Eliokem India Pvt. Globelink WW India Pvt. Entertainment World Developers Ltd. Atotech India Ltd. Jawaharlal Darda Inst. FACOR Steels Ltd. Harrisons Malayalam Ltd. KLA-Tencor Software India Pvt. Ltd. CLP India CODELCO Cognizant Technology Solutions Compegence Concept Pharmaceuticals Ltd.Appendix A (List of respondent companies) 24/7 Customer ABC Consultants Pvt. Excel-soft Technologies Pvt. Institute of Technology Beam Global Spirits & Wine (I) Pvt. Fannie Mae FINO Ltd.

Power Grid Corporation of India Ltd. MercuryMinds Technologies Metso Minerals (India) Pvt. Varun Beverages Ltd. Ltd. Ltd.Mecklai Financial Services Ltd. Religare Asset Management Co.Ltd. Ltd. UTI Mutual Fund Vaishnavi Corporate Communications Vallabhdas Kanji Ltd. RECL Reliance Infrastructure Ltd. Ltd. Ltd. Ltd. UCB Unichem Laboratories Ltd. Ministry of Road Transport & Highways MTR Foods Pvt. Rain CII Carbon (India) Ltd. Virtusa Watson Pharma Pvt. Quatrro BPO Solutions Pvt. Alshirwi Group Old World Hospitality Pvt. Ltd. SAP Sara Infoway ITES India Pvt. SSL Stewart & Mackertich Wealth Management Ltd. Orix Auto Infrastructure Services Ltd. Ltd. Microland Ltd. MTS India National Informatics Center (Govt of India) Netcellence Technologies Nicco Corporation Ltd. TECHGYAN The Calcutta Medical Research Institute TIL Ltd. Nihilent Technologies NISE NPCIL NTPC Ltd. West Asia Maritime 23 . Persistent Systems Ltd. TCL . Shriram Pistons & Rings Ltd. ValueSource Technologies Pvt. Sierra Atlantic Sikkim Manipal University SJM Technologies SKS Microfinance Societe Generale SSIPL Retail Ltd. RMD Engineering College Roots Industries India Ltd. Ltd. Royal Banck of Scottland Safexpress Pvt. Ltd. Sakal Media Group Sakthi Finance Ltd. Mahindra & Mahindra Financial Services Ltd. (an IL&FS Company) Pappilon Software Solutions Pvt. Unilog Universal Cables Ltd. Tata Sky Ltd. Orbis Financial Corporation Ltd. Oasis Investment Company LLC.Transition Consulting Ltd. Tratum Technologies Trignon Truetzschler India Pvt.

Bangalore 560017.org CIO Association of India. P1 Gem Wellington.org.cioindia. .www. Old Airport Road. E: tapan@cioindia.

Sign up to vote on this title
UsefulNot useful