Situation Normal.... ___________________________________.

Situation Normal....___________________________________

A fortune at the bottom of the pyramid

• Three decades old Indian IT services industry

• Programming services at one sixth of the international cost

• Skills, Scalability and Business English

• Flexible pricing models, even fixed-price

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Meet our Manjunatha Hegde ....

• A fresh engineering graduate from Hubli, Karnataka

• Not from a well known institute of higher education

• No great connections, no great financial resources 

• Some web programming skills 

He has struck with a great idea for the cyber-spaceo at least he believes so !o for sure, he wants to try it out

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In a one-to-one million journey ...Undifferentiated non-value-add ( 70% ) 

• Hardware• Software• Communication• Upgrades

• Load Balancing• Scaling• Utilization

• Server Hosting• Storage Management• Replication• Fail-over• High availability

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Differentiated value-add ( 30% )

• Develop• Test• Operate

His business needs

• Easy to get started

• Dynamic scalability

• The reliability, performance and security of the infrastructure

• Cost efficiency

• Free or near zero initial investment

• Easy to operate

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Cloud Computing has a solution...

Cloud computing refers to both 

• the applications delivered as a service over the internet ( SaaS )• the hardware and systems software in the datacenter ( Cloud )

Characteristics offers

• Services focused• Shared, highly scalable networked infrastructure• Automated service delivery• Enhanced standardised user experience

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Everything Must Change..___________________________________

Cloud as a powerful resource....Public Cloud for Web Applications

o made available by third party service providerso it can be free or fairly inexpensive to useo it provides tools for application development

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Enablers

Technology Enablers

• Virtualization• Web services• Utility computing• Flash memory

Key Necessary Enabler

• extremely large commodity-computer datacentres at low-cost locations, reducing their own opex by leveragingo very large economies of scaleo statistical multiplexing to increase the utilisation

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Cloud Computing

Flavours

• Hardware as a Service ( HaaS )o AWSo Rackspace

• Platform as a Service ( PaaS )o Googleo Microsoft

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Voices, noises and rainbows over Cloud !The interesting thing about Cloud Computing is that we’ve redefined Cloud Computing to include everything that we already do. . . . I don’t understand what we would do differently in the light of Cloud Computing other than change the wording of some of our ads.-- Larry Ellison, quoted in the WSJ, September 26, 2008

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 A lot of people are jumping on the [cloud] bandwagon, but I have not heard two people say the same thing about it. There are multiple definitions out there of “the cloud.”-- Andy Isherwood, quoted in ZDnet News, December 11, 2008

Voices, noises and rainbows over Cloud !It’s stupidity. It’s worse than stupidity: it’s a marketing hype campaign. Somebody is saying this is inevitable — and whenever you hear somebody saying that, it’s very likely to be a set of businesses campaigning to make it true.-- Richard Stallman, quoted in The Guardian, September 29, 2008

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When it comes to cloud, we are all in !-- Steve Ballmer , CEO Microsoft Corporation , March 2010 while addressing University of Washington

Here is the future !____________________

Wealth moved from bartering to coins to paper money...  As time goes by, people will become accustomed to accessing tools and information held on virtual private networks, just as they have with using paper (and now digital) money.-- Art Coveillo, President EMC's Security Division

We cannot afford to be like this !_______________________________________

Cloud ComputingA simple taxonomy on cloud computing

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SaaS User

Cloud Provider

SaaS Provider / Cloud User

Utility Computing

Web Applications

Cloud Providers

• IBM

• Google

• Yahoo!

• AWS   

• Microsoft

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SaaS Providers ...

• One man enterprise like  Mr Manjunatha Hegde

• A small group of programmers who wants to do something different and more profitable

• A small division of a large software services company

    What all they need to take up the challenge ?

o High speed internet connectiono A programmers laptopo Services and SDK from a reliable cloud provider

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Cloud ComputingExploiting the Cloud Architecture

• Processing Pipelines o Documentso Imageso Videoo Indexingo Data mining

• Batch Processing Systemso back office applications, finance, insurance, retailo log analysis and report generationo nightly builds, unit testing, automated deployment

• Web Applications o websites that sleep at night and auto-scale during the dayo instant websites for eventso promotion websiteso seasonal websites

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Cloud ComputingWho looks for what ?

• Large enterprises o looking to transform their data centreo optimize IT service delivery

 • Small and medium businesses to acquire more

o sophisticated business processeso business services o IT capacity 

• Application Programmerso Tools for full life-cycle support

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Cloudy but not cloudy !Business Projections

• USD 42B by 2012  ( ref. study by  IDC in 2008 )• The figure got enhanced in 2010 to USD 56B • Likely world-wide adoption by 2016 ( ref. study by Gartner )

                                                          Intel Corporation

“We expect to see, by 2012, a substantial portion of the server market will be running some version of cloud computing. Right now, as much as 14 percent of server purchases are going into some sort of cloud deployment. By 2012,  Intel predicts that some 20 to 25 percent of its server chips will be dedicated toward data centers that power cloud computing"

            Jason Waxman,             General Manager, High-density Computing             Intel Server Platforms Group

_____________________________Customer shareMarket shareMind share

____________________________Thank you

 www.osrdg.com

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