Given the huge market size predictions from Gartner, IDC and more, it is but natural that there are bound to be opportunities in cloud for entrepreneurs to come up with innovative solutions and address the market needs. In the final part of the interview, Sramana and Jose discuss entrepreneurship opportunities in the cloud. Jose highlights the fact that Cloud computing is granting small- to medium-sized businesses access to the technological resources they need to compete with the big enterprises; therefore sparking some much needed innovation. By having the same access to data centers, server farms and software platforms, cloud computing is helping to create a fair playing field.
SM: And how far along is that? RT: Well, the skeleton is there for approval. The workflow engine is integrated inside the private cloud infrastructure. Now, on the public cloud side, the overriding request is clients want to have variability in their billing. That’s what is different about the cloud compared to a traditional hosting
By guest author Shaloo Shalini This part of the discussion centers around the impact of clouds on the evolution of IT in a large organization such as Novell, the need to upgrade IT skills to make services more valuable to business, private clouds and data security in the cloud.
By Sramana Mitra, Pablo Chacin and Saurabh Mallik SM: What is your sense of the integration issue? Is that a barrier to adoption? Is it something people are worried about? Can the integration costs and risks surpass the advantages of cloud computing? RT: It all depends on the scenario. At least in the work we
RT: That’s a good question. Generally, it’s reports – customized reports for sales people who could use that data, for example, average deal size for customers in a city, or the top twenty opportunities. Finance organizations see common usage of IRR, ROI, and other business calculations such as financial risk and liquidity. Sales and distribution
With 35% of ISVs adopting SaaS in terms of delivery and pricing models, there are significant cost savings that are seen by large enterprises. Jose compares the savings to outsourcing and quotes Merill Lynch which mentioned approximately 2-10 times cost savings with cloud based pricing schemes. Well, not all of the enterprise workloads can move into the clouds so this is only part of IT budget for a large enterprise.
SM: What is the situation with cloud application vendors such as Salesforce.com and SuccessFactors, which have cloud applications hosted on their own data centers? Is there a push toward those kinds of applications?
In this part of the interview Jose shares his insights on areas in cloud that are ripe for standardization. With customers exerting more power over software vendors and economic pressures, pricing has evolved but at the same time it has becomes more complex than ever with multiple pay as you use options.