Wednesday, September 28, 2011

Cloud Computing and India by 2020

As per the recent survey done by NASSCOM in association with Deloitte regarding Cloud Computing and its futue in India, it was found that Cloud Computing is gaining momentum in India is its market is expected to grow to $16 billion by 2020. The global cloud computing market was projected to grow by 33 per cent compounded annual growth rate and readch $680 billion by year 2020. In India Cloud Computing is going to effect and revolutionize the IT-BPO serivce industry in India.

Though there are many challenges that we need to overcome before Cloud Computing can be readily accepted by industry. Some of the main challanges are:

• Perceived security concerns.This was the area most frequently referenced with respect to restricting cloud computing investment. Many firms remain reluctant to move any  of their services to a public cloud environment since they prefer to keep their data behind their own firewalls. This situation is only likely to change if cloud service providers accept liability for the data, removing the litigation risk which currently sits with the customer regarding data loss or leakage.

• Service reliability. This has been brought into sharp focus with the April 2011 multi-day outage of Amazon Web Services. This outage resulted in the slow-down and in some cases, shut-down, of prominent internet sites such as Quora and Reddit. Many firms cannot countenance a similar outage across their IT estate.

• Vendor lock-in. Firms are concerned about moving to a  public cloud deployment model since they fear becoming dependent on the provider’s service and exposed  to any future price increases in  the subscription.

• Lack of clarity in the business case. While firms can understand  the subscription-based costs associated with a public cloud service, understanding how this compares to the costs of the existing operations proves challenging since it is necessary to dentify and calculate the costs of the hardware and people that support the existing operations.

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