Professional Documents
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Raj Mudaliar
Doc # AU29011T- March 2011
EXECUTIVE SUMMARY
Recent volatility in the global economic environment has created operational
challenges for businesses.. Additionally, emerging technologies coupled with the
proliferation of devices such as smart phones, media tablets, for example the iPAD,
better Internet connectivity, and the fast growing influence of social networking
platforms are challenging CIO's to constantly innovate and think afresh their IT
strategies.
Cloud computing has emerged as one of the most disruptive service delivery models
that will alter the consumption of information security services. Cloud services genuinely offer
flexibility, ease of use and faster delivery of services at a significant lower cost of entry. Interest
has moved from the 'why' to the 'how?'. How can cloud services be operationalised?
What type of cloud solutions should be adopted public / private / hybrid? What
workloads can be shifted into the cloud? What should the migration plan look like?
How can the virtual infrastructure be managed?.
Asia/Pacific
Headquarter
s: 80 Anson IDC's Asia/Pacific (Excluding Japan) Cloud Computing Survey 2010 indicates,
Road, Australia is one of the leading countries in the region for the adoption of cloud
#38-00 services. The survey reveals around 35% of Australian respondents currently use
Singapore cloud services, 7% are actively researching or testing cloud computing now, and
079907
another 15% have plans to use it in the next 6 to 12 months. On the whole,
P.65.6226.03 organisations in the Asia/Pacific (excluding Japan) region currently believe that a
30 private cloud environment is more suitable for almost all applications, with the
exceptions being VOIP and collaborative applications.
www.idc.com
SITUATION OVERVIEW
In general, business confidence is bullish this year. However, with ever-increasing
competition and the need to leverage competitive advantage to grow market share,
organisations must look to improve current business processes, enhance productivity,
while simultaneously lower costs.
Based on IDC's Forecast for Management Survey 2010 (please refer to the Appendix
for detailed information on the survey methodology), Figure 1 provides an aggregated
view of ANZ respondents' top CIO challenges for 2010 vis-à-vis previous years. Not
surprisingly the ranking of 2009 and 2010 priorities are similar – particularly the top 4.
© 2011 IDC
FIGURE 1
Recruiting and retaining staff: This is partly related to the retirement of the
‘baby boomers’, who carry many mainframe skills, and the specialised type of
network and virtualisation, IP skills in demand today.
Interestingly, from a business point of view, the number one priority for organisations
is to improve infrastructure to increase productivity (Figure 2). Other considerations,
like exploiting market conditions efficiently and speed to market have also gained
greater importance. Cost cutting is ranked lower in organisational priorities versus this
time last year; however it is a still a key concern. .
2 ©2011 IDC
FIGURE 2
At a high level, cloud services can be described simply as consumer and business
products, services and solutions delivered and consumed in real-time over the
Internet. Some of the main drivers for cloud computing include:
3 ©2011 IDC
version control across the organisation resulting in faster deployment of Go-To-
Market strategies.
Security: Business critical and sensitive information that sits outside of the
company remains a sticking point for many organisations. That said, this issue is
well known in the vendor community, and they are releasing solutions and
services with increased security measures to assuage these concerns.
FIGURE 3
n=600
Source: IDC Asia Pacific (Excluding Japan) Cloud Computing Survey, 2010
4 ©2011 IDC
A further 23% of respondents are planning to use cloud services over the next 12
months. The remaining 47% of organisations in the region have plans to use cloud
services at some point after the next 12 months.
At the country level, Australia is one of the leaders, with 35% of the respondents
currently using cloud services, 7% actively researching or testing cloud computing
now, and another 15% planning to use it the next 6 to 12 months.
To illustrate this point, the Australian Government, with an estimated ICT spend of
$4.3 billion per annum, released a Cloud Computing Strategic Direction paper in
January 2011. The main objective of the paper was to develop a pathway for
Government agencies to rationalise their ICT asset base and adopt cloud computing
where appropriate. Some of the agencies have already commenced small pilots and
proofs of concept to evaluate the potential of platform and infrastructure cloud
computing.
FIGURE 4
5 ©2011 IDC
collaborative), while using the private cloud more for infrastructure. The workload
within the private cloud will be more heavily utilised for Web infrastructure, IT
infrastructure outsourcing and storage/storage management.
For Australia, the most common cited external vendor for implementing a private
cloud within the organisation (see Figure 5) is an ISP or Telco provider (32%),
followed by an infrastructure technology vendor (29%), and systems Integrator or
professional services provider (25%).
FIGURE 5
n=28
Source: IDC Asia Pacific (Excluding Japan) Cloud Computing Survey, 2010
Readiness Assessment
What are the application characteristics and its demands for elasticity?
What set of cloud capabilities are required to achieve the objectives for
which the solution is designed?
6 ©2011 IDC
Cloud Strategy Development
Can you source the service from the Public Cloud or build a Private Cloud?
Change Management
How will you pay for it, and are costs satisfactorily predictable?
Ongoing Management
FIGURE 6
HCL has a strong belief in its 'advise to execute' philosophy, where it looks at long
term and mature partnerships with its customers. Hence, HCL looks at a cloud
journey in an integrated and cohesive fashion whereby the complete life cycle
7 ©2011 IDC
(assessment, implementation and migration operations) is delivered in an integrated
fashion to yield maximum benefits for customers.
Cloud management being a major area of focus, HCL has been able to drive
innovation across LOBs and develop intellectual property around infrastructure
monitoring and management, SaaS (Software as a Service) enablement, private
cloud deployment and provisioning, metering and billing and cloud gateways for
public clouds.
HCL's strategy focuses on providing two types of cloud services that will assist CIO's
to maximise the full benefits from the cloud, primarily in the role of Cloud Enabler and
Cloud Provider:
TM
HCL's MTaaS MyCloud is a cloud-based offering that brings flexibility and
scale for CIOs to orchestrate their physical, virtual and hybrid infrastructure
environment. It helps them both to manage the operations of the cloud
(MyCloud Control & Watch) and the service lifecycle. It’s a one-stop solution
for managing virtual infrastructure, especially capable of giving visibility into
operational and system performance. It is designed and built with features of
8 ©2011 IDC
high orientation towards iTaaS, and gives quick turnaround on integration
with enterprise products such as Remedy ITSM and SAP among others.
FIGURE 7
MyCloud
Govern MyCloud
Assure
Demand & Service
Portfolio Mgmt Service Level Management
Compliance and risk Mgmt Contract Management
Agile Apps & Service Dev Supplier Management
Business Continuity & DR
Self -Service
MyCloud
Meter Control & Monitor
Watch
Orchestrate
MyCloud
MyCloud Secure
Service Ops
User access control
Change & Release Federated identity mgmt.
Configuration & CMS DLP
Incident & Problem
9 ©2011 IDC
Infrastructure as a Service (IaaS) – IaaS is for selected areas such as
computer storage as well as back up and for providing IaaS to its clients
from HCL's datacenters across the globe.
Software as a Service (SaaS) – HCL will play the role of an integrator that
provides true business applications in the cloud, which will largely be vertical
applications for specific functional areas.
FUTURE OUTLOOK
Cloud computing addresses key concerns for enterprise decision makers,
providing the ability to synthesise IT assets while sharing resources, lowering
costs, standardising IT processes across the enterprise, and providing a more
stable pricing model. IDC believes that cloud computing will slowly, but surely,
make a large impact on the server market. The outlook for both private and
public cloud computing in Australia is positive.
Engineering of a private cloud will likely prove more complex, especially as early
adopters realise that much more than virtualisation of resources is needed to
deliver the expected ROI. IDC expects major challenges for users as they
attempt to standardise services across the enterprise, having to fight users that
have become used to custom processes for their own business functions.
Without service standardisation, service automation is much more time
consuming and thus expensive and makes the goal of self service difficult to
achieve.
CONCLUSION
With any new technology solution, including cloud services, there will be multiple
challenges. It's undoubtedly an exciting time. Organisations can select best of breed
solutions from a range of service providers. The compelling value proposition of
adopting cloud services is that it is easy, fast, flexible, and an organsiation can have a
scalable usage at a lower cost. All of these factors make cloud a compelling value
proposition for any organisation.
For CIO's to maximise the benefits of cloud services requires careful planning,
design, and testing of the appropriate solution. Understanding commercial terms and
arrangements, total cost of ownership and physical locations of datacenters are other
important aspects that require consideration. All organisations have to adapt and
change to keep ahead of its competition. Leveraging technology is key to this
process.
10 ©2011 IDC
APPENDIX
METHODOLOGY
The Forecast for Management Survey 2010 is an annual IDC study that provides
valuable research into the attitudes and intentions towards the use of IT in
organisations across Australia and New Zealand (ANZ) markets.
Research data for the Forecast for Management Survey 2010 was compiled from
written responses to a survey completed by CIOs and IT Managers from March and
April 2010. Responses were received from 400 organisations in the private and public
sectors across ANZ.
Scope
The scope of this study encompasses the most important areas of responsibility for
ICT management:
ICT spending and the economy: including IT budget allocation and spending,
the potential impact of the National Broadband Network (NBN) on business,
business outlook, purchasing preferences, return on investment (ROI)
expectations and more.
The ICT department and application of IT: Including CIO reporting lines,
composition of the IT department, spending on staffing, top skills in demand; as
well as the current and future use of different applications such as datacenter
consolidation, virtualisation and social networking software.
Geographic Segmentation
The Forecast for Management Survey 2010 was carried out for organisations in both
Australia and New Zealand. For 2010, 60.8% of the respondents were employed by
organisations with headquarters located in Australia, with the remaining 39.2% based
in New Zealand.
The executives responding to this Forecast for Management Survey were asked to
indicate the size of their organisation by the number of staff they employed. To reflect
industry trends by company size, the responses were combined into three grouping
relating to the number of employees in the organisations. These groups are standard
IDC definitions of enterprise size: small (1-99 employees), medium (100-499
employees) and large (500+ employees) The ANZ totals for these enterprise
categories were: small at 46.5%, medium at 29.7% and large at 23.6%.
The executives responding to this Forecast for Management Survey were asked to
categorise their businesses by their vertical markets in which they primarily operate.
The largest sectors nominated by survey respondents were business services
manufacturing, retail and wholesale and government (see Table 3).
11 ©2011 IDC
T ABLE 1
Construction 7.8
Education 7.3
Government 8.8
Health 7.5
Manufacturing 11.0
Resources 7.0
Transportation 7.4
Utilities 7.3
n=400
Source: IDC Forecast for Management Survey, 2010
Shared or standard service: built for a market (public), not a single customer
These attributes are crucial to maximise the value of cloud services which provides
easy, fast, flexible and scalable usage at a lower cost.
12 ©2011 IDC
About This Publication
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and research results presented herein are drawn from more detailed research and
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13 ©2011 IDC