How enterprises have benefited from the cloud ?
It was an interesting question by one of our Manufacturing clients, when we were discussing an opportunity to leverage Microsoft Azure .Net Service Bus for their innovative SaaS product offering. The intent of the question was loud & clear from the tone backed-up by the data-points from recently published, highly debated McKinsey report – Clearing the Air on the Cloud – where the cost effectiveness of cloud for large enterprises was questioned.
We presented a bunch of case-studies to our client - some executed by Infosys and some publicly available on internet. As a most trusted transformation partner & technology advisor, we shared our viewpoints on each-one-of-them.
We also presented the counter argument from Booz Allen Hamilton on the referred McKinsey report. It helped turn the table – we were able to shape the discussion in the comfort zone to every stakeholder on the call – you know how difficult this is in short meetings!
NASDAQ
- The NASDAQ case listed on AzureJournal titled “NASDAQ is using Amazon for Data Storage”. It says NASDAQ stores lots of terabytes of NASDAQ, NYSE and Amex data using Amazon Simple Storage Service (S3), it adds 30 GB to 80 GB data everyday!
- We also found another similar article on WallStreetAndTech titled “Cloud Computing Begins to Gain Traction on Wall Street”, saying that the initial monthly bill received from Amazon Web Services were as low as $5 when NASDAQ launched a product called Market Replay using S3.
We constructively debated with our client about using cloud storage, the pros & cons and enterprise concerns on data security and ownership. The client was finding this case-study most innovative, we had interesting technology oriented and pricing model related discussion on it.
Eli Lilly
- The InformationWeek listed an article titled “How Eli Lilly Taps into the Cloud” to help support and accelerate the pharmaceutical research by provisioning on-demand servers and storage.
- Another article on InformationWeek titled “Eli Lilly on what’s next in Cloud Computing” articulates how Eli Lilly was able to provision on-demand servers in just few minutes which were initially taking few weeks.
We presented to our client our viewpoint on how Eli Lilly was able to accelerate deployment time multi-fold using on-demand infrastructure provisioning without any large CAPEX investments.
We had an interesting exchange of ideas around the concepts of virtualization and cloud computing in context of this case study to see which one is most cost effective in client’s IT infrastructure (datacenter) environment.
GlaxoSmithKline
- We also cited a recent Microsoft Press Release titled “Microsoft signs agreement with GlaxoSmithKline to deploy Exchange Online” it was one of the large deployments of Microsoft Cloud offering Microsoft Online.
- We also cited experienced shared by the GlaxoSmithKline VP of Information Technology Strategy on Microsoft Online Team Services Blog titled “GlaxoSmithKline standardizes on Microsoft Online Services”, where he mentions ~30% cost reduction IT operational cost.
- The most credible one was from the GlaxoSmithKline Annual Report, 2008 pointing out financial savings, productivity improvement and enhanced collaboration through Microsoft Online.
With this context, we presented our viewpoint on Lean IT Transformation for realizing IT cost savings leveraging cloud computing. The client was instantaneous to react to this one – “Yes; we know about it, it is on the roadmap”.
Federal Agencies
- We also talked about latest buzz by the Obama’s TIGR (Technology, Innovation and Government Reform) team on cloud computing as a catalyst to reduce cost on YouTube - Inside the Transition: Technology, Innovation and Government.
- We highlighted the availability of Federally Compliant Trusted Cloud Computing offering by ServerValut and Apptis as FedCloud to various Federal Agencies for IT compliance.
- We also shared a case-study for Open Government Data Initiative (OGDI) where Federal Agencies are using Azure to store publicly available data. The developers, ISVs or enterprises can use APIs to consume these data and build mash-up for better citizen services, improve collaboration & networking.
We were able to answer many of security and privacy related questions by presenting the FedCloud and OGDI case-study, we acknowledged the current perceptions and limitations w.r.t security on the cloud. We also highlighted data ownership, penalty on SLA, cloud interoperability and cloud service provider lock-in related issues.
Microsoft & Amazon Case Study Depot
We also presented few more selective case-studies from Amazon and Microsoft to showcase the applicability of cloud computing technology, related solutions & services in different business scenarios. At broad level we briefly covered the business scenarios where cloud computing can be used for hosting, storage, content delivery and commerce:
- Infrastructure as a Service
- Platform as a Service
- Software as a Service
- Storage as a Service
- Datacenter as a Service
- Private Cloud as a Service
Personally, I am impressed around storage service offerings from cloud, especially the digital media content stored on cloud delivered to various subscribers creating a next generation content delivery architecture for e.g. read Sony Pictures Imageworks case study. You can find similar case studies on Amazon (Content Delivery / Media Hosting section) and Microsoft Azure Case Study Resources.
What Infosys is doing?
We also discussed the Infosys capabilities with the client in terms of various case studies, credentials, IP (solution accelerators), solution and service offerings and Cloud Computing CoE activities - some of these are published on Infosys web site and some I cannot share it here, respecting the Infosys IP. You can reach-out to us for more information through our micro-site feature request for services.
We did not discuss the below over the short meeting, but shared URLs offline with our client to support our claims with specific data-points. This is the mantra of success from our Chief Mentor - “In God we trust, everybody else brings data to the table”.
- Infosys Case Study published on Microsoft Azure Case Study Resources
- Forrester Report - Should Your Email Live In The Cloud? A Comparative Cost Analysis
- Cost Benefit Analysis of On-premise Vs Cloud Hosting Vs Managed Hosting for Microsoft SharePoint, read my blog titled Business Case @ Cloud
- Cost Benefit Analysis of On-premise Vs Cloud Hosting Vs Managed Hosting for Enterprise Datacenters, read my blog titled You gonna buy a house, or rent one?
What your enterprise is doing?
Tell us what you think about cloud computing, what your enterprise is doing or planning? Share your thoughts with us.
Comments
If you have access to the McKinsey report – Clearing the Air on the Cloud, can you please share it?
Posted by: vidya | June 16, 2009 07:11 AM
Bhavin,
Few weeks ago I posted a link on LinkedIn SaaS forum to find out great success stories of large enterprises adopting Cloud / SaaS other than of course salesforce.com. I found one by Googling - Siemens adopting SuccessFactors for 450,000 employees. Beyond that I was not lucky. Surely, your post gives me some more talking points. Thanks.
Posted by: Suresh Sambandam | August 17, 2009 04:03 AM
1) Has Infosys onboarded any of their internal applicataions on cloud?
Posted by: Sangy | September 8, 2009 06:50 PM
does Infosys have case studies / client engagements where it is proved that moving to cloud is beneficial? if yes what were approximate savings clients realized? if no what is that Infosys can potentially assure in terms of savings - please elaborate for cases like E-mail on cloud, Business productivity apps on cloud, etc scenarios?
Posted by: Sangy | September 8, 2009 06:53 PM
Cloud as we understand can be shared or dedicated. how different it will be in the case of dedicated scenario vs on premise? while we understand dedicated cloud can provide savings but how will that factor business losses in case cloud service provider either goes bust or there is disruption in business?
Posted by: Sangy | September 8, 2009 06:57 PM
Hi Sangy,
Thank you for your interest & query.
We would definitely like to hear from you about nature of your business and can together work-out serious business case & ROI model for Sandy. Please share your contact details (phone etc) on my email - bhavin_raichura@infosys.com
Interestingly, Infosys has a case-study published on Microsoft Azure showcase – it might be very close to your business also: Volantis worked with Microsoft® Gold Certified Partner Infosys Technologies Limited to integrate its solution with Microsoft Azure™ Services Platform to take advantage of Internet-based “cloud” storage for customer Web content (media).
The company estimates that by integrating its solution with Azure, a large telecommunications company could save U.S. $30 million in rolling out a new service for users by not having to purchase, deploy, and manage a new storage infrastructure.
http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000004968
I will try to answer your queries one-by-one to establish mutual trust:
1) Has Infosys on boarded any of their internal applications on cloud?
Yes, we have a tool called iProwe, a kind of web accessibility tool that is hosted on cloud. You can find details about the tool here -http://www.infosys.com/iprowe/default.asp
We use this tool on need basis, for customer project requests. In case, if you are interested for the demo of this tool on cloud platform please do let us know.
2) does Infosys have case studies / client engagements where it is proved that moving to cloud is beneficial?
Yes, we are executing multiple projects on cloud computing currently, we have won it based on our proactive business cases illustrating the potential ROI and also working prototypes.
For e.g. we created a proof-of-concept & ROI model for a large online postal solution provider; I can share the exact ROI details on request basis over the phone. The working prototype is hosted on Azure here -
http://venkat01.cloudapp.net/
We estimated OPEX reduction to the scale of 30-50% and CAPEX savings to the scale of 50-90% in different customer scenarios – it needs to be contextualized to specific customer case.
We can help you with creating a ROI case & working cloud prototype for your scenario. I have illustrated the horizontal business cases for Cloud Migration in many of my blog entries:
• The Economics of Cloud Computing
http://www.infosysblogs.com/cloudcomputing/2009/06/the_economics_of_cloud_computi.html
• The Cloud ROI Framework
http://www.infosysblogs.com/cloudcomputing/2009/06/the_cloud_roi_framework.html
• Business Case @ Cloud
http://www.infosysblogs.com/cloudcomputing/2009/04/
• You gonna buy a house, or rent one?
http://www.infosysblogs.com/cloudcomputing/2009/05/you_gonna_buy_a_house_or_rent.html
You will be able to find many relevant numbers you are looking for in different perspectives / scenarios.
3) what is that Infosys can potentially assure in terms of savings please elaborate for cases like E-mail on cloud, Business productivity apps on cloud
We have helped one of our customers in the business of DVD & Video Game Rentals; migrate from Lotus Collaboration infrastructure to MS Online BPOs (Exchange Email & SharePoint).
We can discuss the ROI model over the phone, we would request you to please share your contact details by sending a small mail to – bhavin_raichura@infosys.com
You may find the following reads very useful & relevant to this question:
• Microsoft Online Services Business Value
http://www.microsoft.com/downloads/details.aspx?FamilyID=9061E5E6-EA23-45C0-8389-0DFD63674356&displaylang=en
It claims savings to the scale of 2 MN pa; OR ~50% cost reduction per user per month on cloud against cloud version of MS Exchange & SharePoint
• Forrester Analysis: Should Your Email Live In The Cloud? A Comparative Cost Analysis
http://www.google.com/a/help/intl/en/admins/pdf/forrester_cloud_email_cost_analysis.pdf
The above has the numbers & comparisons you might be interested in.
We can discuss requirements specific to your scenario and can help you with specific ROI for your organization and also discuss the Infosys Accelerators for this sort of assignment.
4) Cloud as we understand can be shared or dedicated…
We understand the different shapes of cloud (horizontal & vertical OR public, private & hybrid). At a very broad level, shared cloud can give you direct savings in terms of your OPEX; where-as the dedicated (private) cloud on-premise can give in-direct savings in terms of hardware efficiency, energy efficiency & overall IT operations efficiency.
At Infosys we have an academic private cloud (dedicated / private, built using Open Source). We do understand that the decision to public (shared) or dedicated (private) is just not the decision on ROI; it has multiple aspects as you mentioned the “business continuity (what if service provider goes down)”, the data security & privacy; and many other.
You may find the following read interesting & relevant:
• McKinsey Report : Revolutionizing Data Center Energy Efficiency
http://www.mckinsey.com/clientservice/bto/pointofview/pdf/Revolutionizing_Data_Center_Efficiency.pdf
• Report to Congress on Server and Data Center Energy Efficiency.
http://www.energystar.gov/ia/partners/prod_development/downloads/EPA_Datacenter_Report_Congress_Final1.pdf
I hope the above information is useful for you. We would definitely like to hear-back from you, do write to me: bhavin_raichura@infosys.com
Posted by: Bhavin Jayantilal Raichura | September 9, 2009 04:33 AM