Cloud Computing

Selling Cloud Computing Services
February 2011
Developed by
ICT Practice Team
Frost & Sullivan Asia Pacific
1
1 Introduction to Cloud Computing
2 Indonesia Cloud Computing Market
3 Understanding the Customer
4 How to Sell Cloud Services
5 Competitive Landscape
6 Sales Playbook
2
Introduction to Cloud Computing
Topics Covered
What is the definition & key characteristics of cloud computing?

How has cloud computing evolved into its current form and how is different from datacenter
services?
What are the various flavors & deployment methods of cloud computing?
What is Infrastructure as a Service and what are its different forms?
3
Defining Cloud Computing
A pool of compute, memory and i/o resources, applications or operating environments

with seemingly infinite scalability, delivered as a service over a network, be it private
or public.
Key Characteristics of Cloud Computing
On Demand, Self- Pay As You Use, Metered

Service Consumption
Rapid Elasticity, Scale Shared Pools, Illusion of

Up/Down Infinite Resources
Broad Network Access using

Standard Internet Protocols
4
Evolution of Cloud Services
Factors driving market transition :
- Inefficient IT usage
- Ubiquitous broadband
- Increasing commoditization
of IT resources
PC / Client-Server
Internet Era Cloud Computing
Mainframe Era Era
- Ubiquitous access Era
- Hardware focused - Prominence of
- Webification of - Utility basis
- Centralized software
Apps - Multi-tenant
- Dumb terminals - De-Centralized
- Enterprise mobility - Self-service
- Power to the user
1970s 1980s 1990s 2000s
Source: Frost & Sullivan
5
Cloud Services Overview
SaaS
CLOUD PaaS
Multiple Devices
Cloud Provider
IaaS
Difference between Data Centers and Cloud Computing

Data Center Public Cloud Computing
Customized Standardized
Economies of Scale for Organization Economies of Scale Across Customers
Full Control of Data Partial Control of Data
Most Secure Secure
Limited Capacity
Nearly Unlimited Capacity
Dedicated
Shared
6
Cloud Service Types
Three distinct services are delivered through the Cloud SaaS, IaaS and PaaS
Software as a Service Infrastructure as a Service Platform as a Service

(SaaS) (IaaS) (PaaS)
A provision model in which an A key component of the new
organization outsources the Cloud Computing
A software distribution
hardware used to support environment, in which
model in which applications
business operations. The service developers are encouraged to
Market are hosted by a vendor or
provider owns the equipment enhance Cloud-based
definition service provider and made
and is responsible for housing, services by using templates
available to customers over
running and maintaining it with provided by the platform
a public or private network.
the client typically paying on a vendor to build their software
per-use basis. applications.
Business Apps
Types of
Collaboration Computing Development platform as a
Services service
Security Storage
Offered
Office Productivity
Salesforce.com
Force.com
Google Amazon Web Services (AWS)
Examples Google AppEngine
Webex Verizon CaaS
Microsoft Azure
Message Labs
7
Cloud Deployment Models
Public Cloud Hybrid Cloud
Public Private Public

Enterprise Enterprise
Cloud Cloud Cloud
Offered as a service via web Combination of public & private

applications/ web services over the clouds
internet Multiple internal and/or external
Third party ownership providers
Utility pricing (Pay-by-the-sip) Private cloud used for mission
Extreme scalability with no up-front critical data & regulatory compliance
costs Public clouds used for marginal
Shared hosting of apps & data data and handling peak timings
Community Cloud
Private Cloud
Enterprise Enterprise
1 2
Private
Enterprise Community
Cloud
Cloud
Operated solely for the organization Enterprise
3
On-premise or off-premise
A cloud infrastructure that is shared
Owned & managed by the user by several organizations
company or a service provider
Often delivered securely via a
Pay-by-the-glass CapEx private network
requirement Ability to bill the organizations
separately
Shared SLAs
8
Cloud Deployment Models: Comparison
Private Clouds Public Clouds Hybrid Clouds

Data is divided between a
secure hosted environment
Data remains within a Data is opaque to end-users
Data storage and a public environment
secure environment raising security concerns
based on criticality and
regulatory compliance
Multi-tenant; Shared A mix of dedicated and shared
Infrastructure Dedicated Infrastructure
environment infrastructure
Robust SLAs that are only SLAs are rudimentary; may Mix of models allows to define
SLAs limited by skill levels and not meet the exacting flexible SLAs as per
processes of the provider requirements of Enterprises requirements of Enterprises
Internal IT team / On- Access to internal IT team as
On-demand IT staff of service
IT Team demand IT staff of service well as service provider IT
provider
provider staff
Can be delivered on
Public internet has poor QoS Ability to choose the relevant
QoS private network with
and reliability networks as per requirement
acceptable QoS
Mix of CapEx and OpEx;
Expensive (as compared Predictable OPEX;
Cost more cost effective than
to a Public cloud) Inexpensive
private clouds
9
The Public Cloud
Cloud Computing leverages virtualization, to provide

scalable, elastic, cost effective platforms and services
Challenges Benefits
Security
Governance / Compliance CapEx reduced
SLAs Control OpEx
Risk to brand & revenue Agility
Multi-tenant Re-focus on core business
Vendor viability Leverage economies of scale
Cost of transition Rapid deployment
Portability Elasticity
Loss of control Outsourced maintenance
Performance Future Proofing
Availability
Security
10
Market Definition: IaaS
Server
Computing
Desktop
Infrastructure
as a Service
Storage
11
IaaS in Public and Private Cloud Setup
Closed Private Open Public
Company B
Company A
Provider X
User Z
Hybrid Com Com
Company A pany pany
A B
Public
Custom Service Provider Cloud
Private Cloud Private Cloud
Dedicated hosted cloud Shared/ Managed

Infrastructure is shared in a
infrastructure service infrastructure
Multi-tenant environment.
Lower Cost Savings Cost Savings
Additional steps ensure
Higher Control and Security Control and Security enterprise grade Control and
Provisioned through a Virtual managed by service provide Security
Private Network/ Internal Provisioned through a Virtual Provisioned over the Internet
network Private Network
Efficient Utilization of
Better Utilization of Benefits of public cloud Resources the Prime Motive
Resources compared to non- models
Highly Scalable`
Cloud Scalability
Limited Scalability
12
IaaS in Public and Private Cloud Setup
Cost Savings & Easier
Scalability
Public Cloud Private Cloud
Control, Security &

Privacy
Infrastructure as a Service
Public Cloud Private Cloud
Infrastructure is shared in a Multi-tenant Dedicated hosted cloud infrastructure service
environment. catering to large individual enterprise
Higher Cost Savings requirements.
Additional steps ensure enterprise grade Lower Cost Savings

Control and Security Higher Control and Security
Provisioned over the Internet Provisioned through a Virtual Private Network
Efficient Utilization of Resources the Prime More Efficient Utilization of Resources
Motive Limited Scalability
Highly Scalable
13
Cloud Services Overview
SaaS
CLOUD PaaS
Multiple Devices
Cloud Provider
IaaS
Difference between Data Centers and Cloud Computing

Data Center Services Cloud Computing Services
Customized Standardized
Economies of Scale for Organization Economies of Scale Across Customers
Full Control of Data Managed Control of Data
Most Secure Secure
Limited Capacity (Step function)
Nearly Unlimited Capacity
Dedicated
Shared
14
Summary Loud and clear !
Following are the key points to remember about cloud services.
1. Clear Definitions: Cloud services refer to rapidly scalable, on-demand services delivered
through standard internet protocols, where customers need to pay exactly what they use.
Significant cost savings are achieved through sharing hardware & IT resources across the client
base.
2. Types of Cloud Services: Software-as-a-Service (software or application), Infrastructure-as-a-

Service (storage & computing), and Platform-as-a-Service (software delivery platform).
3. Deployments models: Cloud can be implemented as a private cloud (dedicated to a single

organization), community cloud (dedicated to a community of organizations) or Public Cloud
(shared across all customers).
15
5 Competitive Landscape
6 Sales Playbook
16
Indonesian Cloud Computing Market
Topics Covered
What is the current market & projection for cloud computing in APAC and in Indonesia?
Which are the key verticals for cloud services in APAC and in Indonesia?
What are the key trends of cloud computing in Indonesia market?
What are the key players of cloud computing in Indonesia?
17
Potential IaaS Market in Indonesia: Infrastructure Spending
Share of Hardware in the ICT Market

$4,123.0
22%
Hardware
Rest
$15,010.0
78%
Annual Spending on Server and Storage US$2,790 millions

CapEx (US$ millions) OpEx (US$ millions)
Server 825 Manpower 1,250
Storage 515 Maintenance 200
Total 1,340 Total 1,450
Rest includes software, services, system integration and telecom services to enterprises
18
Potential IaaS Market in Indonesia: Case Based Assessment
Given the right Stimuli, it is expected that 5-10% of the Indonesian enterprises will
move 10% of their Infrastructure into the Cloud.
Potential IaaS Market in 2011

Conservative Scenario Aggressive Scenario
Share of Spending that Moves into
0.5% 0.75%
the Cloud
(In US$ millions) 13.9 20.9
Cost Reduction by Moving into the

Cloud Estimated @ 20% 2.8 4.2
(US$ millions)
Potential Market Size for IaaS
11.2 16.7
(US$ millions)
The Potential IaaS Market in Indonesia is estimated between US$11.2-

US$11.2-16.7
million in 2011.
19
Impressive growth ahead for IaaS Case 1 (Conservative Scenario)
The share of IaaS in Cloud Market is expected to increase to 34% in 2014 from 30 % in
2010.
Market Size in 2011 $9.7 Market Size in 2014

8%
$1.7 $40.9
$11.2 5% 34%
30%
2011-2014
$23.8
65%
$70.2
58%
20
Impressive growth ahead for IaaS Case 2 (Aggressive Scenario)
Taking into account an Aggressive Estimate, the share of IaaS in Cloud Market is expected
to increase to 43% in 2014 from 40% in 2010.
Market Size in 2011 $9.8 Market Size in 2014

7%
$1.8
$16.7 4%
40%
2011-2014
$23.8
56%
$61.0 $70.2
43% 50%
21
Indonesian Cloud Computing Market
Indonesia Cloud Computing Market Growth Forecast, 2010-2014

160%
140%
140%
120%
100%
100%
75%
80%
62% 57% 60%
55%
60%
50%
40% 48%
38% 43%
20% 37%
0%
2011 2012 2013 2014
SaaS IaaS PaaS
CAGR (2010-2014)
SaaS 41.4%
IaaS 55.9%
PaaS 91.5%
The Indonesian Cloud Computing Market is growing at a rapid pace and is expected to
grow at a CAGR of 48% during 2010-2014.
22
IaaS Key Verticals
2010 2014
Others Others
11% 10%
BFSI
BFSI
28%
Internet/Media 30% Internet/Media
12% 15%
2010-2014
Government
Telco/IT
8%
20% Government
Telco/IT
10%
22%
Education Manufacturing
Manufacturing Education
2% 15%
15% 2%
Accounting for 65% of data center market, BFSI, Manufacturing and Telco/IT verticals offer
the greatest potential for Cloud (IaaS) Services in Indonesia.
23
Key Target Segments
The sweet spots for cloud computing
Initial Target Segments
Enterprise Size Verticals Servers
Colocation Segment
Start-up Firms Large Enterprise IT BFSI (Servers hosted at
datacenters)
> 500 employees Internet Firms Gaming, e-commerce,

Portals, Social networking
Manufacturing
24
Major Trends Shaping the Indonesian Market
Trend # 1: Nascent Market
The Indonesian Cloud Computing market is still very much in the nascent stage.
This is primarily due to the lack of infrastructure with regards to internet connectivity and availability. Internet
penetration outside of the capital city of Jakarta is mainly by means of wireless connectivity and lacks the capacity
of a fully fledged broadband connection.
However it is expected that with maturity of service offerings, enterprises would be keener to move some of their
IT spend to Cloud.
Trend # 2: Shift in Adoption Pattern
It is expected that Indonesian enterprises, while taking time to adopt SaaS technology, might not go through the
adoption stages that most of the developed world is experiencing - mainly the adoption of non-core applications
and migrate all applications together.
Furthermore, the trend, over a long term, may lead to adoption of PaaS over SaaS to build in enterprise specific
applications and functionality.
Trend # 3: Increasing Awareness
The entry of global participants, and their marketing initiatives in the form of conferences and road shows, provide
the right opportunity for domestic enterprises to get a better understanding of Cloud Computing. This is expected
to drive awareness levels and adoption in the long term.
However, enterprises continue to remain skeptical of Cloud adoption due to Security and Privacy concerns. This,
along with the low reliability of broadband internet in the country, is hampering adoption.
25
Trend # 4: Increasing Demand has Led to Entry of Global Market
Participants
The Indonesian Cloud Computing market has been witnessing increasing traction from local
enterprises as they learn more and more about the delivery model and the opportunity to
decrease costs and bring in efficiencies.
Furthermore, the foreign investments in the Telecom sector and the expansion plans of local
players into the Broadband Wireless Access has attracted the attention of the global players,
such as Google, Amazon, NetSuite, Salesforce, RightNow, Oracle and Zoho have entered
the Indonesian market, primarily through channel partners.
These participants currently hold a large share of the market with limited offerings from local
service providers.
In terms of user segments, Manufacturing dominates the adoption level across verticals in
Indonesia. Further, the SMBs and Large Businesses contributed almost equally to the
market in 2010, a trend which is expected to continue in the medium term.
26
Major Market Participants
Major Global Market Participants
Service Provider Services Offered Market Highlights & Competitive Differentiation
Is the poster boy for SaaS with phenomenal success in the CRM
segment.
CRM (SaaS), PaaS,
Salesforce.com is aggressively expended its offerings in the areas
Database.com
of PaaS (Platform as a Service Force.com), Mobility and Social
networking (Chatter) in 2010.
Strong partner ecosystem that is well catered to the fast growing
SMB segment. Excellent integration with Messaging, Office and
Dynamics CRM, Microsoft Office
SharePoint tools.
Live, Microsoft Azure (PaaS), IaaS
To invest around US$2.5 billion in Indonesia to develop cloud
(Private Cloud)
computing systems, in partnership with Telkom, Astra Graphia
Information Technology, Greenview and Infynis System Indonesia.
Amazon is the leading provider of IaaS services across the world.
The company has embraced Open Source solutions in a big way

IaaS (Storage and Compute)
and this has enabled the company to offer highly competitive
pricing for its services to consumers.
27
Major Market Participants
Major Domestic Market Participants
Service Provider Services Offered Market Highlights & Competitive Differentiation
Indonesia will be targeting more of the small and medium

Reseller for Google Apps, businesses (SMBs) in the future, the same is the agenda
Salesforce.com and local for Saasten down the road.
service providers Saasten is one of the few SaaS vendors in Indonesia that
offers high level data security.
Very much focused on consumer based unified
communication solutions, and plans to expand throughout
Focused on CRM and Indonesia.
education software Intends to leverage on the wireless internet in Indonesia,
especially WiMax connections that are expected to be up
and running by 2011.
Target market at the moment is mainly on the catering
(restaurants), hospitality (hotelier) as well as property
ERP, CRM, Financial and (real estate) industries, by providing tailor designed
Payroll Management solutions for these niche markets.
Is in the midst of developing full software suites for the
targeted niche markets.
28
RIM- Blackberry
The company is in the process of expanding the capabilities of its BlackBerry Enterprise Server
(BES) to offer a cloud-based version, and to allow partners to offer their own customized BES
services
Research In Motion VP Pete Devenyi said in an interview the company wouldnt be offering a
complete feature set of services in cloud versions, rather, leaving partners to tailor their own
services with different features
Partners could even provide their own in house built services, such as e-mail services, that
could be integrated with their cloud-based BlackBerry Enterprise Server offerings
Source: Vivanews.com
29
Summary
Key features of IaaS market: ASAP
1. Awareness is High: Indonesia is a nascent cloud market, but the awareness & adoption is
increasing rapidly.
2. Strong Competition: Multiple international players are present in Indonesia either directly or
through local partners.
3. Attractive Segments: Startups, Large Enterprise, BFSI, Manufacturing, IT & Telecom are the
most attractive targets for cloud services.
4. Prospects: IaaS is expected to grow rapidly from a small base.
30
3 Cloud Value Proposition
6 Sales Playbook
31
Value Proposition of Cloud Computing
Topics Covered
What are the key benefits of cloud computing and how does cloud deliver those benefits?
Additional advantages that Telcos have over other cloud service providers.
32
Value Proposition of Cloud Computing
Cost
Savings
Standardizat
Focus on
ion & Faster
Core
Refresh
Competency
Cycle
Value
proposition
of Cloud
Universal Computing Automation
Resource
of IT
Access
Enhanced
Business Efficiency
Agility and
Scalability
33
Value Proposition of Cloud Computing (Contd)
The key to selling cloud services is effective communication of its key value proposition.
Cost Savings
Facts What you need to communicate

Using virtual machines and unified computing, Cost savings experienced by other cloud service
Service Providers can deliver the same hardware providers.
resources much cheaper than enterprises. A sample case study to show how cloud services
Cloud computing rationalizes the IT department. can reduce the cost of the customer.
Focus on Core Competencies, Automation of IT

Cloud services saves senior management from Typical enterprise issues with or without cloud
being bogged down by IT related issues and focus services.
on core business.
IT can focus on strategic requirements of the
enterprises rather than day-to-day maintenance.
34
Cost Benefits
44% end users report more than 10% reduction in cost by shifting to cloud
computing while 10% report more than 50% cost savings.
5% 6%
40% 9%
10%
15%
15%
N = 330
10% 10% 4%
6%
4% 8%
49%
19%
Current users of cloud have
14% 8%
experienced an actual higher savings
when compared to expected savings
from non-adopters 11%
16%
27% 14%
N = 77 N = 253
More than 50% 31-50% 21-30% 11-20% 6-10% 0-5% None
Source: Frost & Sullivan End User Survey in APAC, 2010
35
TCO Reduction by moving to the Cloud
Criteria Requirements
No. of Server 4
Type of OS Windows
Estimated monthly inbound data (in GB) 100 GB
Estimated monthly outbound data (in GB) 100 GB
Monthly open rack rental (in SGD) 1,500
Upfront server hardware cost (in SGD) 2,000
Estimated storage requirement (in GB) 100 GB
One time Windows OS cost per server (in 3,900

SGD)
Average setup time to get service ready (in 6
weeks)
36
TCO Reduction by moving to the Cloud (Contd)
Building your One-Time Recurring Cloud Offer One-Time Recurring
own Setup Cost Cost over 36 Setup Cost Cost over 36
infrastructure in (SGD) months (SGD) (SGD) months (SGD)
a co-location Subscription cost 500 37,800
facility for Cloud Offer
Server Cost 8,000 (Committed
Scheme with Fibre
Network Cost 1,600 Channel Storage)
Rental cost of 500 54,000 Total cost 500 37,800
racks
Operating 15,600 4,680
Server repair cost 288 system cost
Infrastructure 2,880
maintenance cost
Utility charge 31,726
Data charge 11,700 Your own Cloud

Summary Savings
datacenter Offer
Total cost 10,100 100,594
Total Cost Of
Operating 15,600 4,680 Ownership
130,974 58,580 55%
system cost Over 36
Months
Initial Capex 25,700 16,100 37%
37
Enterprise Issues with and without cloud services
The key to selling cloud services is effective communication of its key value
proposition.
Current Environment Cloud Environment
CXOs CXOs
Decide & manage investments required in Focus on priorities of core business.
computing resources in view of changing
IT
business needs.
Manage strategic IT issues.
Manage criticalities related to
outages/failures. Manage SLAs of a single vendor.
IT
Manage strategic IT issues
Manage day to day operations of a large
workforce.
Manage multiple vendors of computing
resources & SLAs.
Manage hardware obsolescence.
Manage criticalities related to outages/failure.
38
proposition.
Business Agility, Enhanced Scalability

Most enterprise computing resources are meant to How computing resources can be easily ramped
meet the peak loads leading to significant idle time up or down while using cloud computing.
and over investments.
However if the peak loads increase, enterprise face
delays, investments and delays related to new
hardware.
The buy-as-you-need paradigm of cloud services
enable the enterprise to rent resources as required.
In case of a new requirements, computing resources
can be scaled up fast without significant delays or
investments.
The result is lower cost and more efficient response
to enterprise requirements.
39
proposition.
Universal Resource Access.

Users of cloud computing have uniform access & Access to ICT resources anywhere, anytime and
control to the resources from multiple locations. over any network.
Cloud computing removes the complexity of multiple Users neednt worry about the underlying
hardware platform infrastructure complexity ; all they need to care
about is an SLA
Faster Refresh Cycle & Standardization

Cloud service providers typically refresh their Importance of always being on the latest
platform more often than in-house IT. This ensures technology
the clients access updated ICT resources
Elimination of multiple platforms leading to
Cloud computing removes the complexity of multiple standardization Ease of provisioning and
hardware platform resulting in standardization. usage
40
Key Points you need to remember about cloud
Six points you need to remember about benefits of cloud computing.
1. Focus on Business: Cloud computing saves companies from being bogged down by day-to-day
IT related issues and focus on strategic issues.
2. Agility: Cloud computing lets the enterprise pay for exact amount of computing/storage
requirements they need and scale up or down very fast. This reduces cost and lets them
respond to business needs fast.
3. Cost Saving: Shifting to cloud saves 10% to 50% of current hardware & manpower costs for the
companies (even compared to servers hosted at datacenters).
4. Technology Edge: Cloud computing keeps the enterprise on latest technology with hardware
being replaced every 2 years. This allows enterprise to create IT based competitive
advantages.
5. Uniform Access: Cloud computing gives similar access of resources to employees across
locations.
6. Standardization: Cloud computing eliminates multiple hardware platform and allows

standardization in IT processes.
Remember: FACT - US
41
Key Differentiating Factors for a Telecom Service Provider
Breadth
of Scalability A Unique
Market Bundled Financial Glocalizat
Partners and Cost Value
Reach Solutions Stability ion
and Savings Proposition
Support
42
Assessing Go-To-Market Maturity
Key Factors to look at the successful Go to Market vis--vis competition

Low High
Competitive Across vertical or market need

Just price based
Differentiation or bundling etc.
Messaging & Product feature centric Segment need based

Positioning
Complex and difficult to understand Value and segment based with

Packaging & Pricing
add-ons
Demand Generation Inconsistency across channels Integration across sales &

marketing channels
Direct/Indirect Sales Adhoc sales process Integrated sales channels

Processes
Organizational Geared towards traditional services Geared towards delivering Cloud

Effectiveness services
43
6 Sales Playbook
44
Understanding the customer
Topics Covered
What are the top of mind needs & concerns of CXOs?

What are the top of mind needs & concerns of IT Managers?
What are the pain points related to cloud services?
What are the key requirements & purchase criteria of cloud services?
45
Budgeting and Decision Makers
Primary Decision Makers for the adoption of Cloud Computing (Singapore)
Others 4%
Business Unit Heads 9%
Finance Department 11%
CEO 15%
CIO / CTO 25%
IT Department 47%
Note: Companies may have provided more than one response, hence, the sum is more than 100%.
N = 55
46
The Good News !!
Change in Cloud Computing budget for 2011 over 2010
0%
Decrease by more than 20%
Decrease by 11% to 20%

0%
Decrease by 6% to 10% 0%
Decrease by less than 5% 0%
Remain The Same 75%
Increase by 0% to 5% 7%
Increase by more than 20% 2%
0% 10% 20% 30% 40% 50% 60% 70% 80%
N = 55
47
Perception and Usage Trends
Perception of Cloud Computing
The vendors are confusing the marketplace with various cloud jargons 2% 20% 35% 36% 7%
I would be unwilling to procure cloud services from providers who dont have a datacenter
7% 15% 38% 25% 15%
in my country
Cloud computing gives me an opportunity to reduce costs 4% 22% 25% 35% 15%
Private clouds are the same as hosted datacenters 5% 20% 22% 44% 9%
Cloud has the potential to change IT into a utility like electricity 4% 15% 35% 33% 15%
Cloud computing & virtualization are one and the same 5% 29% 27% 27% 11%
By 2020, 90% of all enterprise applications will be delivered from the cloud 7% 9% 44% 27% 13%
Cloud computing is not yet enterprise ready 7% 15% 20% 45% 13%
Cloud computing can be as disruptive as the internet 0% 18% 24% 49% 9%
Cloud computing is an over-hyped phenomenon 0% 11% 31% 44% 15%
Strongly disagre Somewhat disagree Neutral Somewhat agree Strongly agree
N = 55
48
Technology Partners
What are the key factors that determine your selection of a Public cloud provider?
Vision 2% 16% 45% 33% 4%

Security & Privacy
2%
2% 20% 29% 47%
standards
Location of Data Center 7% 11% 25% 35% 22%
Local Support team 5% 9% 15% 47% 24%
Localization 2%4% 33% 45% 16%
Brand / Reputation 2% 20% 36% 33% 9%
Reference customers 7% 20% 31% 36% 5%
Product Strength 2%4% 40% 45% 9%
Breadth of Service Portfolio 0%7% 27% 49% 16%
Competitive SLA's 2%4% 27% 53% 15%
Price 7%0% 20% 47% 25%
Least Critical Less Critical Neutral Critical Most Critical
N = 55
49
Top of Mind Needs & Cloud Related Concerns of CXOs
CXOs would be more concerned about cost, IT responsiveness and continuity and data
security.
Key Business Needs

Key Cloud related Concerns
Reducing Capex & Overall costs. CXOs are concerned with business issues like
Access to latest technology. improving cost, responsiveness, creating
Improve responsiveness of IT to competitive differentiation through technology.
business needs.
Security & business continuity is a big issue for
Ensure business continuity in face of them.
IT disruptions.
Cloud value propositions like cost reduction,
enhanced business agility, access to latest
technology and focus on core competencies
Key Cloud Related Concerns
will be important for them.
Data Security (especially for CIO) Concerns related to data security need to be
addressed.
50
Top of Mind Needs & Cloud Related Concerns of IT Managers
IT Managers would be more concerned about data security, loss of control, vendor lock-in
and responsiveness and continuity.
Key Business Needs

Key Cloud related Concerns
Minimize IT disruptions IT Managers are concerned with operational issues
Make IT hardware management like minimizing IT disruptions, recruiting &
easier. managing IT resources, and managing costs.
Manage IT Costs
IT Managers generally resist movement to cloud
because of concerns related to data security, loss
of control, and over dependence on one vendor.
These need to be addressed.
Cloud value propositions like access to latest
Key Cloud Related Concerns
technology, IT automation, enhanced scalability,
standardization and cost reduction will be
Data Security.
important for them.
Loss of Control
Overdependence on 1 vendor.
Investments required in large reliable
bandwidth.
51
Key Restraints in Cloud Adoption
Key Restraints
Privacy, Security and

Loss of Control
Concerns
Integration
Lack of Stringent Challenges
SLAs
Resistance from
IT teams
Limited Availability
of Reliable and
High Speed Internet Regulatory and
Compliance Issues
52
Concerns to be addressed
In reality most of these concerns have been solved by technology & service providers
Perception Reality
Cloud Services are less Modern cloud services can ensure end-to-end security to ensure data security
secure. equivalent to internal datacenter.
Companies are free to use the provided resources as they wish and scale up &
Company will have lesser
down as required. Combined with strict SLAs, cloud in fact can provide better
control over its resources.
control over resources.
IT disruptions would be State-of-the-art hardware & virtualization platform ensure high availability.
harder to manage. Strict SLAs are provided to ensure minimum downtime in case of an issue.
Regulations & compliances are adhered to with local datacenter & strict
Cloud computing may violate
security policies. Private clouds can be provided to meet the toughest
internal compliances.
compliance requirements.
Cloud services require
reliable bandwidth which is Some leading network services players in Indonesia can provide high
hard to ensure. availability connectivity.
Company would be over With limited time contract and ease of shifting data, companies are less
dependent on one vendor dependent on vendors than in traditional scenarios.
Integration with existing Public Clouds are built on open architecture platforms that can seamlessly
solutions is a challenge integrate with other clouds and in-house infrastructure
53
Ensuring Security
To ensure comprehensive security by marrying process, people

and products. We use best of breed products, industry leading
3 Ps process best practices and the some of the best people in the
risk management field.
Stringent internal security controls that include aspects of

physical security, network security, identitty and access
management, data protection and DDoS prevention
Stringent Internal Controls Regular assessments of internal controls and process
enhancements to benchmark & improve them
Adherence to stringent industry best practices such as ISMS to

ensure transparency and trust.
Adherence to Regulatory We understand regulatory compliance very well including
country specific legislations and ensure customer adherence to
Compliance the same.
We provide a world class cloud offering in country with the
customer not having to worry about cross-border data transfer.
54
Summary: What do customers expect from cloud computing
Security and
Privacy
Lower Costs Measures
SAS 70, ISO
and ISAS
SLAs that
Regulatory
Ensure High
Compliance
Availability
Pricing Green
Model Solutions
Ensure
Cloud Compatibility
Experience with Legacy
Systems
55
Lower Costs Pricing Model
Cloud services need to reduce the Pay-what-you-use model.

existing IT costs. Transparent and flexible pricing
Cloud needs to deliver models ( All inclusive pricing and
Transparency on cost incurred by discounts for repeat customers).
business units (Internal Chargeback).
SLAs Cloud Experience
Very high availability. Standard Ability to scale up & down as per

industry availability guarantee is requirement.
99.95%. Uniform access to resources across
Quick response time. locations.
Low Latency. LAN in a WAN Smooth and
optimal user experience
56
Security & Privacy Green Solution
Data privacy Minimizing energy footprint using virtualization.

Adequate security controls to Usage of renewable sources of energy by the
safeguard loss of intellectual property provider
and infrastructure availability
Adherence to industry best practices
and compliance to standards such as
ISMS, COSO etc
Regulatory Compliance Compatibility with existing solutions
Cloud shouldnt jeopardize the compliance Minimal or No changes to existing IT set-up

requirements of Enterprise customers Platforms built on open architecture that
Service providers need to build best can integrate with in-house infrastructure
practices that accommodate the compliance
requirements of customers
57
Ensuring Security Overall
Robust infrastructure security

Rigorous operational security
Granular customer controls
Role-based privilege sets
Convenient access control & audit
Sum of all fears scrutiny and response
Multi-tenancy reduces opportunities for error
The most demanding customer sets the bar
58
Technology Partner Selection Criteria
What are the key factors that determine your selection of a Public cloud provider?
Price 8% 24% 68%
Competitive SLAs 6% 28% 66%
Breadth of Service Portfolio 10% 35% 55%
Product Strength 12% 33% 55%
Reference customers 19% 38% 43%
Brand / Reputation 17% 33% 51%
Localization 16% 34% 50%
Local Support team 13% 22% 65%
Location of Data Center 19% 35% 46%
Security & Privacy

8% 20% 73%
standards
Vision 17% 44% 39%
Less Critical Neutral Critical
N = 330
Source: Frost & Sullivan End User Survey in APAC, 2010
59
Vertical Specific Requirements
Additional factors of Cloud adoption specific to key verticals:
Vertical Reasons of Adoption
To gain access to flexible IT resources and information at a reduced cost.

(Cost Reduction)
To focus on core competency eliminating the need to maintain a set of
Manufacturing hardware distributed in various locations (IT Automation & focus on core
competency).
To meet seasonal fluctuations in requirements due to fluctuations in
demand (enhanced scalability & business responsiveness).
To meet the rapidly increasing infrastructure requirements (enhanced

Telecom and IT scalability).
To meet the unexpected spikes in demand (business responsiveness)
To meet the ever increasing needs to process and store customer data
BFSI (enhanced scalability)
Disaster Recovery and Business Continuity (Regulatory Compliance)
To create a common pool of resources across ministries and

departments (enhanced efficiency & cost reduction)
Government
To offer more easily accessible and efficient eGovernance services
(Uniform Access).
60
Start-up improves network efficiency and reduces costs by
30-40%
The use of cloud technology has given us the competitive edge that
helps us to innovate quickly, says Padmaraju.
Charan Padmaraju
Co-founder and CTO
Challenge
The company started facing scalability challenges in using
the traditional data centers. Procuring a new server or
upgrading an existing one took more than two weeks.
Limited server capacity affected productivity as it could not
manage processing fluctuations.
Solution
redBus has built its ticketing system and its SaaS offering on the Amazon Cloud
hosted in their Singapore data center which offers Storage as well as Compute
services. All redBus applications, including the mission critical ones are on the
AWS cloud.
Impact
The traffic to redBus has increased 3 folds due to reduced latency during peak
hour.
It has led to a cost benefit of about 30-40%.
61
Key Points to remember while interacting with the client
Five points to remember about the clients.
1. Selection Criteria: Price, SLAs, data security measures and Local pool of resources are
most important criteria for vendor selection.
2. CXOs: CXOs will be most attracted to value proposition like cost reduction, enhanced
business agility, access to latest technology and focus on core competencies .
3. IT Managers: IT managers will be most attracted to value proposition like access to latest
technology, IT automation, enhanced scalability, standardization and cost reduction .
4. Issues Already Addressed: The following issues have already been addressed by cloud
technology & service providers.
Data security.
Threat of IT disruption
Regulation & Compliances
Reliable bandwidth
Integration with legacy infrastructure.
5. Wrong Perceptions: The following issues are actually wrong perception of cloud.
Overdependence on single vendor.
Lesser control over resources.
62
6 Sales Playbook
63
How to Sell Cloud Services?
Topics Covered
How to qualify your accounts for suitability to cloud services?
How to seed the idea of cloud services?
Key discussion points with CXOs & IT Managers?
What would be required to successfully close a deal?
64
How to take enterprise on a journey to cloud
Current Scenario Cloud Scenario
High Capex & total cost. Low Capex & total cost
Difficult to scale computing resources. Easy to scale computing resources.
Hardware Obsolescence No Obsolescence
Recruiting & managing costly & difficult to find IT manpower Rationalized IT workforce requirements
Inhouse Inhouse
Manpower
Part of resources can be mobilized

for other purposes
Inhouse Management Inhouse Management
CRM ERP
Business CRM ERP
Applications
Email Others
Email Others
Inhouse/ Third party How to convince enterprise of the

datacenter (Fixed Resources) transition?? Service Provider
(On-Demand)
Computing
Resources
65
Qualifying the account
The first step is to qualify the accounts based on following checklist.
Qualification Factors
Is the target company looking to replace some of the existing hardware (hardware
refresh) or going to expand/shift its servers hosted at datacenter ?
Does the enterprise have significant capacity at datacenters?
Is the company one of the leaders in adopting new technology?
Does the company belong to one of the verticals most likely to use cloud services (IT &
Telecom, Manufacturing, BFSI)?
Is the CEO actively involved in IT related decision making.
Have your contacts in the account shown concern with the IT budget?
Have your contacts in the account shown concern about managing peak loads?
Have your contacts in the account shown concern with hiring & managing IT
manpower?
66
Understand the Competition
You need to understand other outsourcing options that the client has and the superiority
of cloud model over those options.
Datacenters Other SPs providing Cloud Services
Lower costs owing to virtualization of servers.. Focus on enterprise market that makes superior
Constant hardware refresh allowing customers services
to be on best technology, always. Superior customer support.
Easier to scale up & down. Greater business
agility
Over the top players (Amazon etc.) System Integrators providing cloud services
Local support & datacenter leading to better Better experience in managed services.
support & security. Bundled bandwidth allowing for better end-to-
Bundled bandwidth allowing better access to end solution.
the computing resources.
67
What you will Pitch?
There can be different solutions to pitch.
Easiest to pitch but small sales volume.

Can be stepping stone for larger sales.
Use clouds to manage peak loads
Security & SLAs would still be important
concerns.
Easy to pitch.
Use cloud instead of datacenter Cost comparison against datacenter hosting &
security would be important discussion points.
Needs leap of faith from enterprise.

Enterprise enthusiastic about new technology
Large scale shift to cloud
& providers that are ready with end to tned
infra will benefit
68
Cloud Idea Seeding Plan
The idea of cloud can be seeded either bottom-up or top down.
Top-down Approach
CXO IT Managers
Discuss key concerns Communicate Cloud Value Discuss key Communicate Cloud
IT Costs Proposition concerns Value Proposition
IT Disruptions Lower overall costs Resource hiring & Strict SLAs
Access to innovation to Capex Opex management Lower total costs
create competitive Ease of scaling IT Disruptions Rationalized resource
differentiation. Faster refresh of platform. IT Costs need.
Clients will always be on
latest technology
Strict SLAs
Bottom-up Approach
IT Managers CXO
Other Ideas
Provide demos to large clients liberally. Confidence in security & control provided on cloud increases after using
it.
Focus on catering to peak load, replace obsolete hardware etc. rather than going the whole way.
Pitch private cloud for a large customer adamant on following security policies.
69
Pitching to a CXO
Identify & categorize the CXO(s) before discussing in detail.

On-Demand computing and storage on cloud.
Just like having hardware on premises but with lower cost & higher flexibility. Lower
1. cost & higher flexibility than datacenters.
Enabled by latest virtualization & security technologies to provide low cost & secure
Introduce solution.
Company Combined with highly reliable connectivity solutions & strict SLAs.
Computing
Enables enterprise to:
Solutions
Reduce capex & overall IT costs.
Buy what is required and quickly scale up or down as per business requirements.
Allows enterprise to focus on business need rather than be bogged down by IT outages
& other issues.
Keeps the enterprise on most advanced platforms with a two year hardware refresh
cycle.
2.
Interest in IT related decision making (who makes the key decisions?): For CEO/CFO
Discuss his Key IT related Issues (cost, outages, obsolescence, investment etc).
needs & Key new IT hardware/technologies adopted.
perceptions
Perception about cloud computing.
Other options they are looking at (datacenter, over the top players, other cloud service
providers)
70
Pitching to CXO (Contd)
Disinterested Tech Cost Security

Skeptic
Enthusiast Conscious Fanatic
3. Thinks cloud Fanatic about
Not computing is Enthusiastic security
interested in a hype. about new policies.
IT related Worried
Skeptic technologies Thinks it is
Categorize issues. about IT
about cost in general impossible
investments
Not the key savings, including for cloud to
and costs.
decision security, cloud provide the
maker for IT. compliance, services. same level of
or reliability. security.
Talk about Discuss exact

Discuss about Explain how
4. cloud cost saving and
how cloud security
Discuss how adoption reasons of cost
virtualization has achieved
cloud can levels & savings based
increases same level of
make a names of key on material
efficiency & security.
Tackle the difference to customers. provided.
how cloud Pitch private
concerns his business. Tackle the Explain how
keeps them cloud where
Ask for the exact reasons on latest cost savings are
all servers
right person to of skepticism platform. achieved
would be
talk to. based on (virtualization,
Pitch large dedicated to
material common support
scale deal. the enterprise.
provided. team).
Pitch against specific competition based on material provided.
71
Pitching to a IT Manager
Identify & categorize the IT Managers before discussing in detail.
On-Demand computing and storage on cloud.

1. Just like having hardware on premises but with lower cost & higher flexibility.
Enabled by latest virtualization & security technologies to provide low cost & secure
Introduce solution.
Company
Combined with highly reliable connectivity solutions & strict SLAs.
Cloud
Computing Enables enterprise to:
Solutions Reduce capex & overall IT costs.
Buy what is required and quickly scale up or down as per business requirements.
Keeps the enterprise on most advanced platforms with a two year hardware
refresh cycle.
Provides uniform access to resources across locations.
2.
Discuss his Key IT related Issues (cost, outages, obsolescence, investment etc).
needs &
perceptions Key new IT hardware/technologies adopted.
72
Pitching to IT Manager.. (continued)
Control Tech Cost Security
Sensitive Skeptic
3. Fanatic
Thinks cloud
about
Need to keep computing is Enthusiastic security
their a hype. about new
Worried policies.
department Skeptic technologies
Categorize size & about IT Thinks it is
about cost in general
control over investments impossible
savings, including
computing and costs. for cloud to
security, cloud
resources. services. provide the
compliance,
same level of
or reliability.
security.
Discuss how
cloud can help Talk about Discuss exact
4. them focus on cloud cost saving and
how cloud security
strategic IT issues. adoption reasons of cost
Cloud enables levels & savings based
them to use names of key on material
Tackle the computing customers. provided.
concerns resources just like
Tackle the Explain how
they are in keeps them cloud where
exact reasons on latest cost savings are
inhouse. all servers
of skepticism platform. achieved
SLAs will help would be
based on (virtualization,
them keep control Pitch large dedicated to
over vendors. scale deals. the enterprise.
provided. team).
73
Pitching to IT Manager.. (continued)
IT Managers also need to be told how they can control the resources over the cloud.
All computing resources can be accessed as though

Accessing computing Resources they were internal resources (or hosted over
datacenter) .
Pitch how good WAN services have been

Superior high availability platforms ensures much
Handling Outages fewer outages.
Strict SLAs & response time give adequate control in
case of outages.
Compliance to security guidelines

Handling Security
Sophisticated processes and governance mechanism .
74
Summary
Five points to remember while pitching to the clients.
1. Qualify the account.

2. Identify the Competition: Datacenters, other service providers, system integrators, over the top
players.
3. Select the solution to pitch: Manage peak loads, cloud instead of datacenter, or bulk shift to
cloud.
4. Profile the CXOs: Uninterested, Skeptic, Technology Enthusiast, Cost conscious, security
fanatic.
5. Profile the IT Managers: Insecure, Skeptic, Technology Enthusiast, Cost conscious, security,
fanatic.
Remember: QIS 2P
75
6 Sales Playbook
76
Art of Selling Cloud
Making Prepare Penetrate

Account
Initial solution the
Planning
Contact to pitch account
Find best solution

to pitch (best
solutions according
Review Existing
to account and
Analyze the current Relationship Map the remaining
response to key
Accounts key people in the
Qualify the account question)
account.
Prioritize Accounts (who are you
Solution Positioning
talking to, what kind Tackle their
Create an Account (Positioning of
of company) concern.
Management plan solution according
Prepare the pitch & account and Make the initial
Set targets for each
questions to ask response to key sales to take them
category
(pitch & solution questions) to the cloud
according to journey.
Prepare supporting
qualification)
material to send
(supporting
material)
77
Account Planning
Illustrative
Create an account plan
2. 3.
1.
Prioritize Categorization Creation of an

Customers Framework account plan
Step 0: What is the Likelihood to buy

addressable market cloud services Classification into
for vertical
Define solutions? Potential deal size Tier 1 accounts
Value
Proposit
How likely are they to Tier 2 accounts
ion
buy cloud services?
Tier 3 accounts
78
Prioritization Framework
Find the propensity to buy cloud services based on the following:
Step 1: Prioritization of customers
Prioritization Factors
Does the company belong to one of the verticals most likely to use cloud services (IT,
Internet & Media, Government & Manufacturing)?
Does the company have more than 500 employees or is an IT/Internet Startup?
Does the company outsource significantly to datacenters?
Is the company an existing customer?
79
Prioritization Framework
Step 2: Categorize customers Illustrative
Classify the accounts into the following

Hi
Key Accounts
Piggy-Tail Accounts
Likely Deal Size

Analysis of current
customer base
Analysis of needs
Carpet Bomb accounts

Ignore
Lo
Lo Propensity to Buy Cloud Services Hi
80
Account Management Plan
Illustrative
Step 3: Target setting and go to market
Target setting
Key Carpet Piggy-Tail Total

Critical enablers
accounts Bomb
Initial Pitch
Penetration Efforts
Tracking

81
Making Initial Contact: Review Existing Relationship
Following items should be reviewed before making the initial contact
Is the company already a customer? What services do they buy?

Can the cloud services be sold as a bundle with existing network services
or in replacement to existing services (datacenter hosting)
Is the contact CIO, IT Manager , CEO or CFO?
82
Making Initial Contact: Qualifying the account
Collect the following information about the account. More tick marks mean better
chances of sales.
Detailed Factors
Is the company trying to replace their existing servers or trying to find more datacenter
space?
Has the company been enthusiastic in buying new services/products during your
previous interactions?
Has the company shown concerns about IT costs in previous interactions?
Has the CEO been actively involved in large orders related to IT purchase?
Has the company shown concerns about increasing load on existing servers (in-house
or in datacenter)?
Has the company shown concern regarding hiring & managing IT resources?
83
Making Initial Contact: Ask Intelligent Questions
Keep a list of questions ready according to the audience.

CTO/CFO
Is IT cost one of the concerns?
What is the extent of datacenter outsourcing?
Who makes the key IT related decisions?
Key IT related Issues (cost, outages, obsolescence, investment etc).
Key new IT hardware/technologies adopted.
Whether cloud services are being used currently? Who is the services provider?
CIO/IT Manager
Is IT cost one of the concerns?
What is the extent of datacenter outsourcing?
Who makes the key IT related decisions?
Key IT related Issues (cost, outages, obsolescence, investment etc).
Key new IT hardware/technologies adopted.
Is managing peak loads an issue?
Is hiring & managing IT resources a key issue?
Whether cloud services are being used currently? Who is the services provider?
84
Making Initial Contact: Clarify misconceptions about cloud
Proactively ask for cloud related concerns and handle the key concerns raised by the
contact.
Virtualization help provide lower costs than
datacenters.
Cost In addition computing resources can be scales
up or down which is not possible with own
servers or even datacenters.
Modern cloud technologies can provide end-to-

end enterprise grade security.
Security & Compliance Local datacenter & resources help in meeting
regulation & compliances.
All computing resources can be accessed as

though they were internal resources (or hosted
over datacenter) .
Control Over Resources Superior high availability platforms ensures
much fewer outages.
Strict SLAs & response time give adequate
control in case of outages.
Respond to queries from the client (see FAQ section in the end).
Ask for next steps. Send detailed collaterals after the discussion.
85
Making Initial Contact: Tackling Key Concerns (CXO)
Uninterested Tech Cost

Skeptic Analytical
Enthusiast Conscious
3. Thinks cloud Fanatic about
Not computing is Enthusiastic security
interested in a hype. about new policies.
IT related Worried
Skeptic technologies Thinks it is
Categorize issues. about IT
about cost in general impossible
investments
Not the key savings, including for cloud to
and costs.
decision security, cloud provide the
maker for IT. compliance, services. same level of
or reliability. security.
Talk about Discuss exact

4. cloud cost saving and
how cloud security
Discuss how adoption reasons of cost
cloud can levels & savings based
make a names of key on material
Tackle the difference to customers. provided.
concerns his business. Tackle the Explain how
keeps them cloud where
Ask for the exact reasons on latest cost savings are
all servers
right person to of skepticism platform. achieved
would be
talk to. based on (virtualization,
Pitch large dedicated to
scale deal. the enterprise.
provided. team).
86
Making Initial Contact: Tackling Key Concerns (IT Manager)
Identify & categorize the IT Manager(s) before discussing in detail.
Insecure Tech Cost Security
Skeptic
3. Fanatic
Thinks cloud
about
Need to keep computing is Enthusiastic security
their a hype. about new
Worried policies.
department Skeptic technologies
Categorize size & about IT Thinks it is
about cost in general
control over investments impossible
savings, including
computing and costs. for cloud to
security, cloud
resources. services. provide the
compliance,
same level of
or reliability.
security.
Discuss how Talk about

cloud can help cloud Discuss exact
4. them focus on adoption cost saving and
how cloud security
strategic IT issues. levels & reasons of cost
Cloud enables names of key savings based
them to use customers. on material
Tackle the computing provided.
Tackle the how cloud Pitch private
concerns resources just like
Explain how
they are in exact reasons keeps them cloud where
of skepticism on latest cost savings are
inhouse. all servers
based on platform. achieved
SLAs will help would be
material (virtualization,
them keep control Pitch large dedicated to
provided. common support
over vendors. scale deals. the enterprise.
team).
87
Making Initial Contact: Tackling Key Concerns (IT Manager)
IT Managers also need to be told how they can control the resources over the cloud.
All computing resources can be accessed as

Accessing computing Resources though they were internal resources (or hosted
over datacenter) .
Superior high availability platforms ensures

much fewer outages.
Handling Outages
Strict SLAs & response time give adequate
control in case of outages.
88
Prepare Solution to Pitch: Select the Solution to Pitch
Pitch the solutions according to the response of the key IT related decision maker (CIO/IT
Manager/CEO).
Regularly Outsources
Enthusiast Security Fanatic Insecure/Very sceptic
to Datacenter
Pitch to shift
datacenter servers
to cloud platform Pitch to shift internal Pitch to outsource a
Scale of deal & datacenter servers part of capacity to
to cloud platform. Pitch to shift
proposed according cloud for managing
datacenter servers
to: Scale of deal peak loads/other
to private cloud.
Whether proposed according peripheral purpose.
to: (Optimal only for large
datacenter servers They will give large
computing/storage
are about to be Whether datacenter orders in future
requirements)
refreshed. servers are about to once they taste the
Enthusiasm of be refreshed. benefits of cloud.
client about cloud
computing
Other Ideas
Provide demos to large clients liberally. Confidence in security & control provided on cloud increases after using it.
Pitch against specific competition based on clients responses.
89
Prepare Solution to Pitch: Select the Solution to Pitch
Send Supporting Material along with the pitch to tackle the key solutions
Supporting Materials
Cost Savings
Case studies
Security used.
SLGs.
90
Penetrate the Account
It is important to tackle concerns of each key decision maker to sell cloud services
Cloud Services requires a change in the way organizations work.

Significant resistance from IT Teams.
Meet all key decision makers (CEO, CIO, IT Managers) to explain cloud value
proposition and tackle their concerns
Remember cloud is just an entry point
91
6 Sales Playbook
Supporting Material
Cloud Value Proposition
FAQs
92
proposition.
Business Agility, Enhanced Scalability

Most enterprise computing resources are meant to How computing resources can be easily ramped up
meet the peak loads leading to significant idle time or down while using cloud computing.
and over investments.
However if the peak loads increase, enterprise face
delays, investments and delays related to new
hardware.
The buy-as-you-need paradigm of cloud services
enable the enterprise for to rent resources as
required.
In case of a new requirements, computing resources
can be scaled up fast without significant delays or
investments.
The result is lower cost and more efficient response
to enterprise requirements.
93
proposition.
Universal Resource Access

Users of cloud computing have uniform access & Access to ICT resources anywhere, anytime and
control to the resources from multiple locations. over any network.
Cloud computing removes the complexity of multiple Users neednt worry about the underlying
hardware platform infrastructure complexity ; all they need to care about
is an SLA
Faster Refresh Cycle & Standardization

Cloud service providers typically refresh their Importance of always being on the latest technology
platform more often than in-house IT. This ensures
Elimination of multiple platforms leading to
the clients access updated ICT resources standardization Ease of provisioning and usage
Cloud computing removes the complexity of multiple
hardware platform resulting in standardization.
94
Amazon Compute Pricing
* Prices for APAC On-Demand Instances Reserved Instances

(US$/hour) (US$)
Instance Linux/UNIX Windows 1 yr Term 3 Yr Term Linux/UNIX Windows
Standard On-Demand Instances
Small (Default) 0.095 0.12 227.5 350 $0.04/hour $0.06/hour
Large 0.38 0.48 910 1,400
Extra Large 0.76 0.96 1,820 2,800 $0.16/hour $0.24/hour

Micro On-Demand Instances
Micro 0.025 0.035 54 82 $0.01/hour $0.16/hour
High-Memory On-Demand Instances
Double Extra Large 1.14 1.24 2,650 4,000 $0.48/hour $0.64/hour
Quadruple Extra 2.28 2.48 5,300 8,000 $0.96/hour $1.28/hour
Large
High-CPU On-Demand Instances
Medium 0.19 0.29 455 700 $0.08/hour $0.145/hour
Source: Amazon
95
Amazon Storage Pricing
Storage Reduced Redundancy Storage

Data Transfer
(99.999999999% Durability) (99.99% Durability)
Tier Pricing Tier Pricing Tier Pricing
First 1 TB / $0.140 per GB First 1 TB / month $0.093 per GB All data transfer in $0.100 per
month of of Storage Used GB
Storage Used
Next 49 TB / $0.125 per GB Next 49 TB / $0.083 per GB First 1 GB / month $0.000
month of month of Storage data transfer out per GB
Storage Used Used
Next 450 TB / $0.110 per GB Next 450 TB / $0.073 per GB Up to 10 TB / $0.190
month of month of Storage month data per GB
Storage Used Used transfer out
Next 500 TB / $0.095 per GB Next 500 TB / $0.063 per GB Next 40 TB / $0.150 per
month of month of Storage month data GB
Next 4000 TB $0.080 per GB Next 4000 TB / $0.053 per GB Next 100 TB / $0.130
/ month of month of Storage month data per GB
Storage Used $0.055 per GB Storage Used / $0.037 per GB Greater than 150 $0.120 per
/ month Over month Over 5000 TB / month data GB
5000 TB TB transfer out
Source: Amazon
96
SingTel Pricing
ValuePlus PowerPlus
Plan Name Value Compute Power Compute
Compute Compute
Price Per US$376.7 US$753.4 US$1,525.7 US$3,093.8

Month
Virtual Dedicated Virtual Dedicated Virtual Dedicated Virtual Dedicated

Type Server Server Server Server
CPU 1 X Core 2 X Core 4 X Core 8 X Core
RAM 2 GB 4 GB 8 GB 16 GB
Storage 10 GB 20 GB 80 GB 250 GB
Source: Telkom
Pricing above is based on a 1 year contract basis exclusive of GST. Less than 1 year contract will be based
on a separate price scheme. Please add a US$470 one-time charge to all packages.
97
Global Growth Consulting Company
98

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Selling Cloud Computing Services

2 Indonesia Cloud Computing Market

3 Understanding the Customer

4 How to Sell Cloud Services

What is the definition & key characteristics of cloud computing?

A pool of compute, memory and i/o resources, applications or operating environments

Key Characteristics of Cloud Computing

On Demand, Self- Pay As You Use, Metered

Rapid Elasticity, Scale Shared Pools, Illusion of

Broad Network Access using

Factors driving market transition :

1970s 1980s 1990s 2000s

Source: Frost & Sullivan

Difference between Data Centers and Cloud Computing

Software as a Service Infrastructure as a Service Platform as a Service

Public Private Public

Offered as a service via web Combination of public & private

Private Clouds Public Clouds Hybrid Clouds

Cloud Computing leverages virtualization, to provide

Closed Private Open Public

Dedicated hosted cloud Shared/ Managed

Control, Security &

Additional steps ensure enterprise grade Lower Cost Savings

Difference between Data Centers and Cloud Computing

2. Types of Cloud Services: Software-as-a-Service (software or application), Infrastructure-as-a-

3. Deployments models: Cloud can be implemented as a private cloud (dedicated to a single

2 Indonesia Cloud Computing Market

3 Understanding the Customer

4 How to Sell Cloud Services

Share of Hardware in the ICT Market

Annual Spending on Server and Storage US$2,790 millions

Potential IaaS Market in 2011

Cost Reduction by Moving into the

The Potential IaaS Market in Indonesia is estimated between US$11.2-

Market Size in 2011 $9.7 Market Size in 2014

Source: Frost & Sullivan

Market Size in 2011 $9.8 Market Size in 2014

Source: Frost & Sullivan

Indonesia Cloud Computing Market Growth Forecast, 2010-2014

Source: Frost & Sullivan

The sweet spots for cloud computing

Initial Target Segments

Enterprise Size Verticals Servers

> 500 employees Internet Firms Gaming, e-commerce,

Trend # 1: Nascent Market

Trend # 2: Shift in Adoption Pattern

Trend # 3: Increasing Awareness

Major Global Market Participants

Service Provider Services Offered Market Highlights & Competitive Differentiation

Amazon is the leading provider of IaaS services across the world.

The company has embraced Open Source solutions in a big way

Source: Frost & Sullivan

Major Domestic Market Participants

Service Provider Services Offered Market Highlights & Competitive Differentiation

Indonesia will be targeting more of the small and medium

2 Indonesia Cloud Computing Market

3 Cloud Value Proposition

4 Understanding the Customer

5 How to Sell Cloud Services

Facts What you need to communicate

Focus on Core Competencies, Automation of IT

Facts What you need to communicate

Source: Frost & Sullivan End User Survey in APAC, 2010

Estimated monthly inbound data (in GB) 100 GB