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Post by Dr. Judy Harris Merril with Global IP Strategists Group, St Louis Mo. 1.13.11


We in the USA are seeing a H-U-G-E revolution going on in India - it's a very large increase in India's peoples engaging in Cloud computing...here are some of my thoughts and experiences (I travel to Goa and Karnataka and South India regularly with my IP Strategist Oppy and Growth segment management capabilities)...and I hope also to further engage these peoples into Cloud Computing.

We see that Indian mid-sized companies, with a huge rate of growth, are serving a sizable and rapidly growing domestic market. There is a real and awaiting Indian opportunity—you have an economy that's rapidly growing, with a young workforce.

There will be as  many  enter the labor force in India in the next 18 years as the full American workforce today. These people represent a very very large opportunity for corporations that are in India to make India-based brands and to build these into planet wide brands. 

Many young people in India now plainly see this HUGE opportunity.

This is why the Cloud model is totally for this focus and springboard of opportunity in the Indian marketplace.

Relatively small organizations can adopt Cloud services and build an efficient, modern and highly scalable system and, as growth occurs, they can enjoy the growth of services without any disruption or abrupt jumps in the amt of cash required.

A lot of technologies in India have gone through this big hype cycle where they are talked about a lot, are in every analyst's list of hot technologies, on TVs and radio but they never really move over to the ground adoption.

 Whenever, in the past, these top technologies have come along, in practice, adopting them has been expensive and maintaining them has been a complex task. With the cloud, there is no such complexity.

The services are visible, you can check 'em out......you take advantage of the free trial, then, if it works, you begin to pay. This is not like the model of the past where you purchase and fight with the scary thing and hope that you eventually come over to the win side.

I sometimes have people asking me if the Cloud isn't simply a new name for the ASP platform.

A significant change in the underlying technology can rapidly change the economics of the business. Back in early 1990s, adopting a CRM solution meant buying a dedicated server, having a database administrator, having all this related stuff for an inflexible and rigid and tight system.

Then hiring people to manage it all. All of that adds up to a big operating cost and changing it becomes quite a hassle. With Cloud services, that are based on a customization model, I can change all of that in five minutes. Now, the user sees that solving his problem is the vendors' focus and, instead of the big and scary tech dude, the user is the in-charge. Adoption is the real currency of value.

Vendors are coming up with some interesting business models for the Cloud. What are your views on this?

The portfolio of models is only going to widen in a competitive marketplace. As is the nature of services, they are priced in different ways to meet specific requirements.

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For instance, for something like a CRM system, where a Corp employee walks into the office in the morning and uses that tool for much of the day, it makes sense to license it per year on a per user basis. On the other hand, you have the HR function on to which people log in only a couple of times during the course of a year.

It would be totally wrong to license that system for the entire year and so you license it on a per login basis. Like a pay as you go motel.....that is what we call the cloud utility model. That's the advantage of the Cloud. Vendors are able to be easy and winning (for the client, NOT them) in terms of services.

The Cloud is the way that people live now. It's a way of life.

Think about Facebook. 650 million people today keep their photo albums in the Cloud. These are the things that people used to keep in a spare area in their bedroom or garage.

Over 167,890 companies in the world use our Cloud. Some of them are little start-ups, others are some of the largest organizations in the world. Dell, for instance has deployed our collaboration tool across 340,000 employees in the period. You can do all of this without any contact with technology (hardware) at the user's end.

That to me is the meaning of Cloud computing, that the technology being used at the other end is invisible and irrelevant as far as the customer's concerned.

The Cloud is not about technology, it is the abstraction of technology for delivering pure services. The Cloud has finally led to the civilization of services because, in the case of Cloud computing, what you pay for is what you get.

The reliability of Cloud services is so much greater that, on those rare occasions when it's not perfect, it is considered a big deal. I think that it's great that IT has finally become something that just works. Keeping it up for another month is no longer an accomplishment for a CIO. Because that is normal. Now the accomplishment is how to make it more strategic, more operational.

I encounter all the time the skeptical people that doubt the cloud, and I believe that the main moment of "I get it now" comes when, instead of mentally comparing the Cloud to some theoretical idea, the CIO or other corporate person compares the Cloud to what he actually has in place.

In some cases, the running cost is so high that you can't believe the subscription fee of the Cloud. For some CIOs, when it comes to security, it is not about the money. If I can't satisfy a customer on the security front, then being cheaper is irrelevant.

That is what is important for a CIO to understand. If you can make a list of things for your cloud vendor that cannot, must not leave your premises, I can show you how an inexpensive, local flat file can serve the purpose. Security is nothing that is unachievable in the Cloud. Any good system integration partner has already done it and we are bullish about security in the Cloud.

 Cloud computing is way past the hype cycle. We have over a 100,000 companies using it across the world. When it comes to India, I can tell you that the growth rate in India is five times the global average. Especially the USA.

The absolute numbers are still catching up, but the adoption is rapid. India is free to adopt the Cloud because it has less of a legacy to take care of.

When people ask me who is adopting the cloud, I reply with "who is not?" We are in every industry and every vertical including the government, but not so much in India. Understanding of the cloud is not correlated to the size of the organization. Some five person organizations understand it and some 5,000 people companies don't.

When people say that they want a private Cloud what they really mean is that they want to buy a data center but think that they are getting a Cloud. What they are getting is a capital budget, delays and a lot of waste. We call private Cloud the fake Cloud. It is a cheap and b.s. way of going on to the Cloud.

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