"Walk On The CLOUD" How Businesses Need to Think to Profit from Cloud

Shantanu Upadhyay

Oct 12, 2011

1961 © 2011 Deloitte Touche Tohmatsu India Private Limited .Cloud Computing: An OLD idea whose time has come 1 “Computation may someday be organized as a public utility.” — John McCarthy.

SMEs and end clients CIOs 2 © 2011 Deloitte Touche Tohmatsu India Private Limited . enabling players to experiment with new models irrespective of size • New businesses such as Netflix. empowering lines of business Democratizing innovation. Groupon et al have been built on Cloud platforms Source: Deloitte Analysis. analyst reports.Cloud is driving consumerisation of IT… Paradigm shift Consumers Enterprises Cloud is… 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. primary interviews with industry players. press releases. bringing IT to new segments • Bringing non-users like SMBs/ SOHOs into the fold • Within enterprises.

freeing up IT budget to be spent in new areas Cloud could enable ERP/ IT scope to potentially expand to newer areas involving • Leveraging unstructured data to drive optimization ‒ Intelligent warehousing – auto inventory management • Automating newer activities and workloads 1. Based on data for information processing equipment and software investments. Customer management Note: Year 2005 value normalized to 100 • Traditionally.…and will enable IT to inject itself more deeply into product functionality/ business processes IT Expenditure Vs. Bureau of Economic Affairs. IT price index (US)1 IT Expenditure Index (% of real GDP) 250 200 150 100 50 0 1990 1995 IT Price Index 2000 2005 2010 IT Expenditure Index 250 200 150 100 50 0 Illustrative example for IT scope expansion: ERP Production scheduling (MRP).S. IT budgets have remained constant or has expanded • Going forward. HR. budget and cost controls Supplier integration. productivity improvements IT Price Index 1960 1970 1980 1990 2000 2010 Customized production. Inventory management Support processes integration (finance. peripherals. including computers. logistics) E-Commerce extensions. Deloitte Analysis 3 © 2011 Deloitte Touche Tohmatsu India Private Limited . software and communication equipment Source: U. cloud will further push current costs down. despite falling costs.

Deloitte Center for the Edge 4 © 2011 Deloitte Touche Tohmatsu India Private Limited .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.

000 strong merchant network/ suppliers Source: John Hagel & John Seely Brown.8 million consumers Over 5600 Corporate Clients § A next generation e-commerce platform that offers apps.The future is already here – Rearden Commerce One-stop travel network enabled by cloud 2. relevance-based one-to-one market place Travel Agents Car Rental Agencies Hotels and Service Restaurants Contractors 160. content and personalization for travel and expense management Travel “Orchestrator” § For consumers. provides a large-scale. makes the web a highly intelligent. personalized and unified experience § For merchants. Reardon company website 5 © 2011 Deloitte Touche Tohmatsu India Private Limited . Deloitte Center for the Edge. services.

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 Business challenges • Fragmented marketplace • Significant customer churn • Low differentiation • Poor customer service Source: Press releases. redBus website SeatSeller for eCommerce companies and travel agents IT asset-lite bus operators 6 © 2011 Deloitte Touche Tohmatsu India Private Limited . Amazon case study.

also includes providers for logistics. TradeCard company website 7 © 2011 Deloitte Touche Tohmatsu India Private Limited . data and products enabling true multi-enterprise collaboration Smart Sourcing Trading Network Symmetric Information Financial institutions Transportation and shipping companies Suppliers Source: John Hagel & John Seely Brown. payment protection.The future is already here – TradeCard Supply chain collaboration and trade financing platform Buyers Inspection Raw material companies providers § TradeCard is a supply chain collaboration and trade finance platform § Serves 4000+ manufacturers. retailers. inspection and export financing § Lean financial and physical processes. suppliers and service providers in 50 countries § In addition to connecting buyers and sellers. Deloitte Center for the Edge. visible flow of money.

Evaluate cloud beyond pure IT cost-reduction and flexibility play Develop experience with Cloud platforms at an early stage to prepare for possible disruptions Explore Harnessing “Outside-in” approach to orchestrate Cloud-enabled scalable network-based differentiation/ business models 3. 8 © 2011 Deloitte Touche Tohmatsu India Private Limited . 2.Prescriptions for businesses 1.

an optimist doesn't see the clouds at all--he's walking on them. and mopes.“A pessimist only sees the dark side of the clouds.” – Leonard L Levinson . a philosopher sees both sides and shrugs.

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