Beyond the Hype - Cloud Adoption in Southeast Asia 2011
- Cloud Priorities and Drivers for CIOs and IT managers in 2011
Venu ReddyVP, AMI-Partners Asia Pacific
Business Environment in Southeast Asia
GDP Growth Forecast Revenue Growth Outlook 2011
Expected average Revenue Growth:
7.0% 9.7%
2.5% 6.9%
8.6% 10.9%
11.6% 13.3%
NorthAmerica
WesternEurope
Southeast Asia
BRIC
Source: IMF, World Economic Outlook, April 2011 Source: AMI-Partners Business Survey among enterprises in Southeast Asia
Companies in Southeast Asia remain strongly growth focused
Business Priorities in Southeast Asia
Business Drivers and Business Priorities of SEA Organizations
Drive Sustainable Business Growth beyond regional boundaries• Take advantage of Asia as the world’s growth hub• Leverage growth opportunities beyond regional and establish global footprintIncrease level of innovation• Drive innovation that enables greater mindshare and market-share regionally and
globallyReduce Time To Market• Bring breakthrough innovations to market to increase global competitiveness• Constantly reduce time to reach ROI targets for product and service innovationsEstablish customer-centric processes and structures• Establish agility to increase responsiveness towards to increasingly demanding
customer needs• Grow service capabilities to increase customer satisfactionImprove ability to execute• Support organizational development with structures, tools, processes to constantly
improve productivity and customer experience
IT Priorities in South East Asia
Strategic Priorities for CIOs and IT Managers
IT Organization as Business Enabler for future growth• Establish IT Organization as a trusted advisor in an environment of constantly
changing requirementsSupport internationalization and Mobility• Workforce is increasingly mobile and applications will be accessed from any-where,
any-time, any-device and in a secure mannerOrchestrate Business Innovation• Ensure process flexibility to foster organizational innovation• Focus resource contribution to innovation- and value creating priorities rather than
maintenance and break-fix activitiesDevelop future-proof agile IT strategy• Increase utilization of technology investments (servers, storage, connectivity, etc.) to
ensure higher ROI through virtualization, cloud technologies and outsourcing• Ensure interoperability of applications and devices Bring Consumer IT Experience to the Enterprise• Use technology to establish a unique user experience and that supports an increasing
number of heterogeneous devices and applications
Cloud Maturity Levels in SEA
Adopting Target Segments
Key Business Drivers Companies that need its staff to focus on
more business critical solutions Companies with strong customer interaction
needs
Growth-Oriented Companies that need to grow in a highly
competitive environment
Industry Profile Segments with partners that need to use
standardized and best of breed solutions
Geographic Profile Companies with distributed offices and need
access to consistent solutions and processes
IndonesiaMalaysia
Philippines
Singapore
Thailand
Vietnam
0%
5%
10%
15%
20%
5% 7% 9% 11% 13% 15%
Ad
op
tio
n
Growth
Cloud Realities – Technology Adoption
Cloud Adoption Cycle in Southeast Asia
%age of Companies using Cloud technologies
22%
18%15%
11% 9%
16%13%
9%5% 5%
3%
32%
40%
23%
41%
35%
43%
31%28%
32%
38% 39%
SaaS
IaaS Already Deployed
Deployment Planned next 12
months
3 Waves of Approaching the Cloud
Increase utilization of infrastructure
Drive operational efficiency of IT
Control cost of building the IT infrastructure
Key Drivers Strong competition that is
driving revenue and profitability pressure
Customers that are aware of their needs and have high service expectations
Skilled staff that is focused on productivity
Key Drivers
Fast evolving market and strong need for innovative solutions
Technology that has evolved to meet business needs
Need to interoperate between staff and customers seamlessly
Key Drivers
Build the Infrastructure
Connect the Enterprise
Expand the Enterprise
• Need to have a connected organization
• Building stable server & storage infra
• Disparate application landscape• Minimal investment in open
infrastructure/applications
• High quality physical & mobile connectivity
• Applications that are open to access from multiple locations
• Focus on utilization level and ROI of infrastructure
• Have started virtualization
• High quality connectivity accessed by all types of devices
• Agile business processes with agile IT to ensure faster route to market
• Rules based profiles and information access
Organizations and countries are spread over the 3 waves based on their technology strategy and business mindset
2011 Cloud Priorities
Key Cloud Priorities
Private vs. Public Clouds Hybrid cloud will dominate the landscape as data
security concerns continue Risk-averse approach towards public clouds is
emerging to start with low-risk workloads and applications
SaaS Priorities Focus is on applications that enhance existing
solutions Integration capabilities and requirements are key
decision criteria before moving processes into the cloud
Priority will be to drive frontline applications ahead of the others
IaaS Priorities Increase utilization levels of existing investments Increase capacity requirements Limit project based cost by renting/leveraging
vendor PaaS solutionsManaged Services Priorities Out-task specific technology management to
external partners to free up internal IT resources for more value-generating activities
Rationale for Adopting Cloud Solutions
Enhancement of existing application is key driver for adopting cloud solutions in SEA
Replaceexisting
Apps
Enhance existing
Apps
Replace outsourced
Apps
Implement new
Functions
SG
MY
TH
IN
VI
PHI
>= 50% of all companies
35 – 49% <10%10-19%20 – 34%
Defining your Cloud Strategy
Guiding Principles for building a Cloud Strategy and setting the right priorities
Do not defocus on alignment with your business priorities Define priorities where cloud and virtualization technologies can help you to better meet
your objectives Prioritize use cases and workloads and establish realistic value expectations in terms of
Improve Profitability and support business growth Service and process quality improvement Increase internal innovation potential
Define clear milestones and measures for success for every cloud engagement Segment project portfolio into
Core: Mission-critical services and processes that allow competitive differentiation Context: Organizational-unique services with limited differentiation potential Commoditized services: Pure support services with no differentiation potential
Start small, think big and understand integration requirements pilot cloud projects and develop a strategic cloud roadmap Define best-fit cloud approach to decide for private or public cloud approach
Focus on right-sourcing not “cloud-sourcing”
Thank You
Venu Reddy+65 6220-5535
www.ami-partners.com
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