Posts Tagged ‘Computing’

Cloud Computing Set to Rain on Indian Outsourcers’ Parade

November 18th, 2014

There are dark clouds on the horizon of India’s information technology and outsourcing industry.

Profit growth at even India’s most successful and sophisticated software companies could be doused as companies, governments and consumers around the world do an increasing amount of their computing on the cloud, says outsourcing services advisory firm ISG Inc.FCD.UN.V +2.26%

Companies that have traditionally used in-house servers running on custom-made applications are putting more of their business on external servers and using off-the-shelf software. Using the cloud often means using fewer people so Indian software companies—once dubbed “body shops” because they could supply as many computer engineers as a project needed—are going to suffer as they lose much of their competitive advantage.

As it is only going to get cheaper and easier for companies to switch to the cloud, smart people-powered service providers need to get ready for the storm, said Sidharth Pai, partner and president for Asia Pacific region at ISG.

“This means, developing software that allows businesses to (interact) faster and more efficiently with their external stakeholders–customers, suppliers, etc.–rather than focus on changes to the internal workings of a client,” he said.

Around one in four of the deals ISG helped advise involved cloud computing last year. That’s more than three times more than the percentage of cloud deals it saw three years earlier.

India’s software and outsourcing companies are still too reliant on the business model that uses lots of relatively inexpensive Indian engineers and sends them to client sites to build software and fix problems, ISG and other analysts say.

Cloud providers use external servers, sophisticated technology and automation to manage clients data using fewer employees. Where a traditional service provider deploys one employee to monitor up to 200 servers, cloud players can use one employee to monitor up to 10,000 servers, ISG estimates.

The cloud infrastructure players are drastically cutting down prices and starting to create pricing pressure on service providers in India and elsewhere who continue to set contracts based on the number of engineers deployed in a project.

Cloud infrastructure providers such as Amazon Web Services, Red Hat, Rackspace Hosting and others are emerging as a formidable threat to Indian outsourcers and other traditional service providers and consultants including International Business Machines and Accenture, that earn revenues from managing the technology infrastructure of clients.

Traditional service providers now have to strive to get more cloud contracts–where they help clients shift data to cloud infrastructure providers–rather than focusing on creating their own clouds, ISG said.

Source:http://blogs.wsj.com/indiarealtime/2014/11/18/cloud-set-to-rain-on-indian-outsourcers-parade/

How cloud computing is like getting a rental car

May 30th, 2014

Though it’s commonly associated with free storage providers, like Dropbox, or online word processors, like Google Docs, cloud computing can involve more advanced areas of technology, too.

That’s part of the reason that talking about “the cloud” can get confusing for a lot of people. Especially when you’re trying to figure out a sensible cloud strategy for your small business.

Operating an information technology system in the cloud is like renting a car. Where you rent a car, you expect to be able to jump in and drive off, safe in the knowledge that your car will work. You also expect the rental company to take care of all necessary maintenance, repairs and breakdown assistance.

The same is true of the “cloud.” When you sign up, you get to use the software without worrying about installation, maintenance, updates or security. You also don’t need a server or any of the other additional IT investments that larger suites of software used to require. All that is taken care of by your cloud service provider.

Renting a car doesn’t require the significant upfront investment that buying a car does. Also, by renting, you can always stay in a current model, versus buying a car that depreciates in value as soon as you drive it off the lot. Cloud services also don’t require an upfront cost. Your business pays a monthly flat-rate per user fee, and if your business grows and you hire new staff, you can switch on new licenses, and similarly turn them off as needed.

There are many benefits to small businesses that wish to leverage cloud computing capabilities. For many small businesses, it’s helpful to start with something simple — like email.

Hosted email through Microsoft or Google, which are the two biggest players in the market right now, is a great (and safe) place to start your cloud strategy. By hosting your email, calendars, contacts and chat through one of these providers, you don’t have to purchase servers, license software or upgrade your infrastructure — shifting email costs entirely to your operating budget.

There are questions that you need to ask before you consider moving a critical line of business software applications to the cloud, and it is important to work with a trusted IT adviser who can help answer these tough questions. This adviser can work with your software vendor to understand the various dynamics of what moving into the cloud actually entails and lay those practical considerations out to you in a way that’s easy to understand.

James Fields is owner and president of IT service provider Concept Technology and IT staffing company Scout Staffing. Visit Concept Technology online at ConceptTechnologyInc.com and Scout online at ScoutStaffing.com.

Something to consider

why you wouldn’t want to move an internal software application into the cloud

Security

When moving business applications to the cloud, you’re at the mercy of your cloud provider when answering the question: Is your data secure? You can’t control the provider’s diligence, and if provider is not doing its job to secure the application, it can lead to a direct compromise of your data.

Support

Does your business software vendor support having your system in the cloud? There are some that still expect it be hosted on an internal server.

Bandwidth

The more cloud space you “rent,” the more bandwidth you require. Before moving an entire application offsite, you need to make sure you have enough available bandwidth to support the move.

Source:http://www.tennessean.com/story/money/tech/2014/05/29/cloud-computing-like-getting-rental-car/9752815/

Germany’s SAP Cutting 1,500-2,500 Jobs in Cloud Computing Mission

May 16th, 2014

Enterprise resource planning software solutions provider SAP would cut thousands of jobs as software programmes become cloud-based, reducing onsite staff requirement.

Reuters citing a source said the German company is planning to cut between 1,500 and 2,500 jobs. The company employs more than 66,500 people in more than 130 countries across the globe.

The company on 14 May indicated that there would be target job cuts in the company, but it declined to say the exact number of redundancies.

“The number is not yet definite and there are still checks being made as to whether positions overlap or are unnecessary,” the person with knowledge of the matter told Reuters.

The source added that the cuts would affect all regions and areas.

Nevertheless, SAP plans to create about 3,000 new jobs in 2014, leading to a net increase in the number of staff, according to the source.

A company spokesman told the Wall Street Journal earlier that the goal of the layoffs isn’t to cut overall head count but to realign the company’s resources with its new strategy.

More and more companies are adopting cloud computing, which reduces costs significantly. The companies are resorting to remote data centres provided by technology companies instead of running their own servers.

With more than 253,500 customers in 188 countries, SAP is also making its software solutions cloud based. The company is on a mission to deliver all its applications in the cloud.

The company earlier said its existing and new customers can now deploy analytics solutions in SAP HANA Enterprise Cloud, a cloud-based service that provides customers a deployment option to gain value quickly from SAP HANA.

SAP Cloud powered by SAP HANA provides the innovation and agility that businesses need to adapt their processes to capitalise on ever-changing market dynamics on a single, integrated platform, according to the company.

Source:http://www.ibtimes.co.uk/german-software-company-sap-cut-1500-2500-jobs-cloud-computing-mission-1448814

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