DCC August Select Series by Bhupinder Sharma

S E L ECT

VOL 02 | ISSUE 19 AUGUST 2010 | RS. 50 A 9.9 MEDIA PUBLICATION

S E R IES

CLOUD COMPUTING

ARE YOU

THREATENED? Enterprises are looking to the cloud for benefits on the horizon â&#x20AC;&#x201C; lower upfront

costs, more flexibility and fewer management hassles. But is cloud

computing a looming threat for the channel?

Cloud: Not a Product Red Hat chief on interpreting cloud computing Page 04

Out of the Boxes

How the cloud can change the way public sector works Page 20

Know Your Cloud

What embracing the cloud means and how it impacts an organisation Page 24

editorial

Clearing the Air on Cloud M sanjay.gupta@9dot9.in

Cloud computing will certainly affect the channel, but there are multiple sides to the story

ost efforts that are intended to make life simple and easy are often complicated and difficult by way of execution: think, for instance, online search, voice recognition or weather forecasting. Cloud computing is another such endeavour. The basic premise behind it is simple: don’t buy expensive hardware and software, nor struggle with the hassles of managing a device sprawl; instead, open the ‘taps,’ consume ‘apps’ and get billed only for what you use. Analogies with utilities like power and water are often cited. So, what is stopping the cloud from rainmaking? First of all, the whole hype and buzz around cloud computing has confused customers. And second, when they get to know that someone else will ‘host’ their servers or applications, most of them panic. What if something goes wrong? What about security? What are the service providers’ liabilities? That is why, behind all the simplicity of the cloud, there lies a complex maze of delivery models, management tools and service level agreements. Fortunately, it is essentially for the vendors and service providers to figure out how to navigate this maze, and the job of the customers is to understand and deal with the service and liability issues. Fortunately again, things are beginning to move on both these fronts. But what about the channel? Wouldn’t the cloud make the partners redundant? If most businesses

shift to the cloud and stop buying software and equipment, what happens to the disties and the resellers? Wouldn’t their ‘volumes’ come down drastically? There is certainly a ring of realism in these worries. But a few things also stand true: the cloud is not going to engulf the computing world in a cloudburst; the cloud will not replace all purchases and there will be hybrid models in which some pieces of the computing pie move to the cloud but others remain on-premises; and there will be opportunities for the channel to partner with their principals and service providers to sell and service the cloud. Of course, for many distributors and corporate resellers, a growing adoption of the cloud will mean they will have to divert more volumes towards retail, data centres and, yes, cloud computing providers. But nobody doubts the value proposition and adoption of the cloud in the long term. The quarrel is usually with the timing and quantum of impact for different organisations. We can hate the cloud or love it – but we simply cannot ignore it.

SANJAY GUPTA Editor Digit Channel Connect

sounding board sounding board S E L ECT

VOL 02 | ISSUE 19 AUGUST 2010 | RS. 50 A 9.9 MEDIA PUBLICATION

Paresh Shah, CEO, PH Teknow: “Cloud computing is certainly a threat for the channel partners who are only box pushers, but it is an opportunity for partners who are into managed service and provide solutions.”

Saket Kapur, Managing Director, Green Vision: “Cloud computing is basically ASP (Application Service Provider) in a new avatar. Going forward, cloud computing may not be a threat for the channel community, as it would increase computing penetration. Let us not forget that for success of the cloud, hardware and connectivity is mandatory on the user end. Moreover, setting up of clouds is also within the purview of the channel.”

Sunil Nagpal, Managing Director, Sai Data Systems: “Cloud computing definitely gives the channel community new opportunities in the infrastructure management industry, which is a fast-growing, profitable segment.”

S E R I E S

CLOUD COMPUTING

ARE YOU

THREATENED? Enterprises are looking to the cloud for benefits on the horizon – lower upfront

costs, more flexibility and fewer management hassles. But is cloud

computing a looming threat for the channel?

Cloud: Not a Product Red Hat chief on interpreting cloud computing Page 04

Out of the Boxes

How the cloud can change the way public sector works Page 20

Know Your Cloud

What embracing the cloud means and how it impacts an organisation Page 24

Write to the Editor E-mail: editor@digitchannelconnect.com Snail Mail: The Editor, Digit Channel Connect, B-118, Sector 2, Noida 201301

DIGIT CHANNEL CONNECT

AUGUST 2010

contents

VOL 02 ISSUE 19 | AUGUST 2010 Managing Director: Dr Pramath Raj Sinha Publishing Director: Vikas Gupta EDITORIAL Executive Editor: Sanjay Gupta Copy Editor: Akshay Kapoor Sr. Correspondent: Payal Pruthi (Bengaluru) DESIGN Sr. Creative Director: Jayan K Narayanan Art Director: Binesh Sreedharan Associate Art Director: Anil VK Manager Design: Chander Shekhar Sr. Visualisers: PC Anoop, Santosh Kushwaha Sr. Designers: Prasanth TR & Anil T Photographer: Jiten Gandhi SALES & MARKETING VP Sales & Marketing: Navin Chand Singh (09971794688) National Manager - Events and Special Projects: Mahantesh Godi (09880436623) National Manager - Channels: Krishnadas Kurup (09322971866) Mumbai, Bengaluru and Chennai: Vinodh K (09740714817) Delhi: Lalit Arun (09582262959) Kolkata: Jayanta Bhattacharya (09331829284)

CLOUD COMPUTING

ARE YOU

THREATENED? Enterprises are looking to the cloud for benefits on the horizon – lower upfront

costs, more flexibility and fewer management hassles. But is cloud

computing a looming threat for the channel?

3 FREEDOM TO PARTNERS Cherian Varghese of Oracle India talks about the recent restructuring of channel partners for Oracle and the new dynamics of the mid-market segment

CLOUD IS NOT A PRODUCT

Jim Whitehurst, President & CEO, says that technology vendors must listen to customers and not merely sell products

20 OUT OF THE BOXES How can the private sector’s next IT innovation – cloud computing – revolutionise the way the public sector does business?

DIGIT CHANNEL CONNECT

CHANNEL CHAMPS Sr Coordinator Events: Rakesh Sequeira Events Executives: Pramod Jadhav, Johnson Noronha, Suyog Thakur Audience Dev Executives: Aparna Bobhate, Shilpa Surve PRODUCTION & LOGISTICS Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh

GET YOUR HEAD IN THE CLOUD Embracing the cloud is ultimately a matter of business and not just technology

BRAND COMMUNICATION General Manager: Ankur Agarwal Asst Brand Manager: Arpita Ganguli

Published, Printed and Owned by Nine dot Nine Interactive Pvt Limited. Published and printed on their behalf by Kanak Ghosh. Published at:

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AUGUST 2010

CLOUD COMPUTING SPECIAL

vendor speak

“PARTNERS ARE FREE TO CHOOSE HOW THEY WANT TO CONNECT WITH US.” Cherian Varghese, Director – Alliances & Channels, Oracle India

Varghese talks to Sanjay Gupta about the recent restructuring of channel partners for Oracle, the changes and challenges it entails, and the new dynamics of the mid-market segment. Excerpts: DCC: Please tell us about your background and current role at Oracle.

DCC: How are you doing on the implementations side?

I have been with Oracle for over twoand-a-half years now. I have been associated with channels for around 18 years, and have worked with IBM, Veritas (now part of Symantec) and a couple of other multinationals. I came in to head speciality applications for Oracle, and last year, we did a whole restructuring of the channels team itself.

We are growing much faster than our competitors. And the reason is we rely on our partners for successful implementations. Also, we have given only those products to the remarketers [at the lowest end of the chain] that are very easy to install and implement.

DCC: What was the rationale of this restructuring?

Initially, the team was structured along technology applications such as databases, enterprise apps, middleware, etc and it used to address the market as LOBs (Lines Of Business). But then we decided to have an integrated channel model, and I was appointed to head it. We still have specialists for different technologies, but there is now a single face to connect to the whole channel space. So, a specific channels and alliances team was created that could carry the entire Oracle portfolio. And the team is growing. DCC: How is your channel universe structured currently?

Today, our OPN (Oracle Partner Network) is classified into four players. At the bottom of the layer, we have the remarketers, and then we have silver, gold and platinum partners – the platinum being at the highest level and include all the big boys (TCS, Wipro, HCL et al).

DCC: OPN has seen one of its biggest transformations in 10 years. Can you share more details on that?

We got this feedback from our customers that when two of Oracle’s partners approached them, they found it difficult to differentiate between them. This was when the partners were designated either as certified partners or certified advantage partners. So that’s why Oracle spent a lot of time in reclassifying our PartnerNetwork. Today, when an Oracle partner goes out into the market, it can say whether it is a silver, gold or platinum partner and specify the technology and business domain in which it specialises. We now have a full-fledged OPN operations team and it validates all the certifications, specialisations and customer references that partners claim and must have to retain a specific partner status. All our partner specialisations and details are available on our website today and this list is growing. DCC: What are the most important changes and challenges as a result of this new partner model?

The most important change is the

WE DON’T GOVERN HOW PARTNERS WANT TO CONNECT WITH US, BUT LEAVE IT TO THEM AS TO WHERE THEY FEEL THE BUSINESS OPPORTUNITIES LIE FOR THEM. We now have a full-fledged OPN operations team and it validates all the certifications, specialisations and customer references that partners claim.

partner experience – the way partners deal with customers and the way they deal with Oracle. And the challenge for Oracle is to figure out that, out of the thousands of partners on the ground, which is the right partner for which specialisation. And it’s an ongoing process. Another important thing is that we don’t govern how partners want to connect with us, but leave it to them as to where they feel the business opportunities lie for them. We have laid out the criteria clearly for different types of partners and they are free to choose the one that suits them. So we don’t say ourselves, for example, that a partner of a relatively small size cannot be a platinum partner. We rather say, “Just complete the criteria for the partner status and go out and compete with the bigger boys.” DCC: In your experience, how is the mid-size solution provider space changing in India?

The mid-market space is changing in terms of overall dynamics. I look at it from two aspects. The bottom end of the market is trying to enter the middle space, as a result of which the middle tier is getting more and more crowded. But how many partners from the middle space have gone on to enter the top tier? The answer is probably, “Not many.” Having said that, however, the growth in India is also the highest in the middle, so there’s scope for a lot of firms to play around. n sanjay.gupta@9dot9.in

DIGIT CHANNEL CONNECT

AUGUST 2010

CLOUD COMPUTING SPECIAL

vendor speak

“CLOUD IS NOT A PRODUCT” Jim Whitehurst, President and CEO, Red Hat

Whitehurst, in a conversation with Geetaj Channana, says that technology vendors must listen to customers and not only sell products

Q: Are people really investing in the cloud - or are they just talking about it?

Oh, they are just talking about it. There are a lot of companies that are investing in development and testing on Amazon EC2 cloud or the IBM cloud. But, these are all developments and tests, lots of playing around. We also have some companies pooling and trying to set up private clouds, but I would say that these things are in the advanced R&D stage now. And, most of it is because the CIO’s boss, the CEO or the CFO is asking them about it. Q: Whenever I talk to the CIOs, they are sick of listening to the cloud! Why is that?

This is because it is so far away from really being able to deliver on the components and the pain points like – flexible modular architecture, newer, faster ways to develop functionality and paying on what you use and when you use it. We think that it is the cloud – but what is really happening is that the technology industry does not listen to the customer – we just take the technology that we have and shove it down the customer’s throat. So, cloud, from an IT industry perspective, has turned out to be a hammer and everything else is a nail when actually, there are screws out there – we in the IT industry need a different tool. What we have to be careful about is what we understand from custom-

DIGIT CHANNEL CONNECT

ers on what they think the cloud is – and so we are delivering off-premise computing. Off premise could be an option in the long term, but what customers are demanding now is a solution. This is where the disconnect is, and this is where I refer to the Gartner hype cycle – this is why there is going to be a valley of discontent. Q: Would you agree that vendors like you, Microsoft, Amazon and Google are trying to oversimplify the cloud in some manner?

Yes, because I do not think cloud is a product that a vendor brings to the table. My view of cloud, the way customers say cloud, and what they really mean, is a modern layered architecture where you have a choice of those various layers and application development capability that delivers rich quick application development. By definition, you cannot have cloud in a box. So, I do think there is a bit of an over-simplification. Q: Is there a disconnect between what people are asking for and what is being delivered?

Absolutely. Most CIOs are not ready to move their applications outside of their data centre. There is so much hype around cloud; people are saying different things. But, when I go to CIOs, I hear three things – 1. They want to pay for what they use and when they use it – they don’t like the model where they buy all

AUGUST 2010

MY VIEW OF CLOUD IS A MODERN LAYERED ARCHITECTURE WHERE YOU HAVE A CHOICE OF THOSE VARIOUS LAYERS THAT DELIVERS RICH QUICK APPLICATION DEVELOPMENT. When people say ‘cloud’, we literally take it as an off-premise solution to run functionality. I think that’s a mistake and is not really what the customer is asking for.

the software and the hardware and take risks. 2. They want a layered modular architecture which allows them to move their applications and run it where it is best. 3. Richer, better and faster application development experience. People hear hype and they think that it is cloud – which does not necessarily mean cloud. And cloud done wrong actually makes these problems worse. I think that is where the disconnect is, because when people say ‘cloud’, we literally take it as an off-premise solution to run functionality. I think that’s a mistake and is not really what the customer is asking for. Q: How do you see Red Hat evolving over the next five years?

We are focused on defining the 21st century enterprise architecture. We may not deliver that architecture; we may deliver components of it, but not the whole. We are working hard to ensure that this architecture is defined by open layers that give customers a choice at each and every layer. Obviously, we do not supply every layer (we are not in the database business), but we are working hard to create that architecture. This is a hypervisor that is open and inclusive, an operating system that can run on any hypervisor, an application server that can run on any operating system. n Courtesy – CTO Forum

on demand computing

CLOUD COMPUTING SPECIAL

CONTROLLING the Flow Organisations need to adopt a dynamic services model that can better control information flows ANIL POCHIRAJU

f you imagine the flow of anything, there are specific points within those flows that provide intelligent processing and control. Typically, these control points exist at strategic points within the flow; discrete boundaries or junctures where multiple flows coalesce for re-distribution. Their purpose is to provide critical flow-control, redirection, intelligent management, and security functionality. Without such a control point, the efficient, safe, and uninterrupted flow of any system would be impossible. At the same time, as flows change, the strategic points of control often cannot adapt dynamically and thus become impediments to efficient flow. Today, IT faces a variety of changes that require control points that can adapt dynamically. Server virtualisation, cloud computing, and the staggering explosion of mobile users and devices make the traditional static control points obsolete. Mobile users continually change devices, networks, and access methods. At the same time, server virtualisation and cloud computing alternatives constantly alter the destinations of that traffic. Fortunately for IT professionals, it is now possible to design a network using strategic points of control that dynamically adapt to changes in flow, and thus constantly provide each user with optimal access to their applications and data.

DIGIT CHANNEL CONNECT

New layers of complexity Increased mobility of users combined with the new mobility of applications, has added a layer of complexity to ensuring that users can reach their applications and data in a consistent and usable manner. As organisations continue from enterprise virtualisation to cloud maturity, the challenges of the past are amplified and magnified. The increased level of complexity, coupled with reduced control over applications and data that leaves the corporate data center quickly brings many organisations to a point of diminished returns long before they achieve the goal of on-demand IT. Businesses want freedom from the bounds of their own data centers, but need to maintain the same levels of control in security, optimization, and management that exist with static, dedicated servers. They want the ability to understand the myriad aspects of application and data flows in relation to users. To do so, businesses need new types of control points in the data center that dynamically and intelligently adapt to change.

Dynamic services model Organisations need a dynamic services model providing reusable services that understand context and can provide control of information flows regardless of application, virtualisation,

AUGUST 2010

IT IS NOW POSSIBLE TO DESIGN A NETWORK USING STRATEGIC POINTS OF CONTROL THAT DYNAMICALLY ADAPT TO CHANGES IN FLOW, AND THUS CONSTANTLY PROVIDE EACH USER WITH OPTIMAL ACCESS TO THEIR APPLICATIONS AND DATA. Organisations need a dynamic services model providing reusable services that understand context and can provide control of information flows regardless of application, virtualisation, user, device, platform, or location.

user, device, platform, or location. The dynamic services model is an evolutionary way to instrument existing systems—application delivery, security, optimization, virtualisation, and management—creating a holistic ecosystem and eliciting more value from each existing component as it integrates with that ecosystem. One of the key characteristics of this model is to deploy strategic points of control to create a coordinated mediation layer between the users, the applications, and the data they access. In this manner, you can characterize the dynamic services model as the final abstraction between the users and the applications. This layer presents a consistent interface and set of services that can be used for all applications and data regardless of their current location. This layer uses an intelligent understanding of context—”who” is accessing “what” from “where” and “why”—to determine the optimal connection between users, applications, and data. Finally, it provides a deep understanding of context to inform the underlying application and data elements about the current resource requirements and to instruct the infrastructure to adapt in real-time to ensure optimized application and data access. The dynamic services model describes the ultimate strategic point of control— the combination of a stop sign, metered stoplight, express lane, and hi-speed bypass. Capable of dynamically changing its nature and the nature of the surrounding infrastructure based on the unique needs of each individual car, this strategic point of control can instantly turn a two-lane road into a superhighway. n Anil Pochiraju works with F5 Networks.

S E L E C T

Matrix launches its new SETU analog terminal adaptor

trends

S E R I E S

atrix has introduced its new Analog Ter minal Adaptor (ATA) – the Matrix SETU ATA211G, which as per the company, has been specially designed for small business and residential user s to offer them the advant age s o f l ow t a r i f f internet telephony. It also offers connectivity to GSM n e t wo r k s b e s i d e s standard IP connectivity. It allows a user to use a standard telephone instrument and yet make VoIP and GSM calls. According to Sajeev Nair, Product M a n age r o f M at r i x ComSec, “IP is the newage technology; integrating to IP therefore requires VoIP devices that not only offer IP connectivity but also connect to the existing wellestablished communication infrastructure. The VoIP device may be required in different footprints subject to various customer needs. Sometimes, a higher configuration device may not be a fruitful investment taking into consideration what the customer needs today or may require in the near future. With the compact but versatile SETU ATA 211G offering VoIP-PSTN, VoIPGSM and GSM-PSTN connectivity, we aim to deliver the most accurate solution to the new world of IP telephony.” n

Xerox enters wide format colour printing market

erox India has announced its entry into the wide-format digital colour printing market in India with the launch of two printers. The company has also launched two new multi-function devices with solid-ink technology and other enhancements. According to Vipin Tuteja, Executive Director - Marketing and Business Support, Xerox India, “The digital wide-format printing market in India is currently estimated at $90 m and is set to grow to $120-130 m by the year 2015.” Vipin Tuteja As much as 75% of this segment is catered to by inkjet technology-based printers and within that, 70% is composed of colour printing. “Until now, we did not have a presence in this colour printing space, but with the launch of two new printers, things will change,” said Tuteja. Among the new launches are Xerox WorkCentre 7120 multifunction system, ColorQube 9201/9202/9203 multifunction systems, and Xerox 7142 and 8264E colour wide format printers. The new colour range is available across Xerox’s existing partner network. n

Sequoia Capital invests Rs 60 crore in Quick Heal

equoia Capital has announced that it has invested Rs 60 Crore in Quick Heal Technologies. This investment will help Quick Heal Technologies in growing its product portfolio, expanding its global distribution footprint and funding future acquisitions. Quick Heal Technologies has been growing at a CAGR of almost 100% for the last three years, making it the fastest growing software product company in the computer security space in India. The company registered revenues of more than Rs 100 Crore in FY 10, all from its indigenously developed product portfolio. With this investment, Sumir Chadha, Managing Director, Sequoia Capital will join the board of the company. According to Kailash Katkar, Managing Director and CEO, Quick Heal Technologies, “We are proud to have Sequoia Capital partner us in our quest to be a global market leader in computer security. While we continue to build on the strong platform in the domestic market, we will also look to expand our global network through organic and inorganic growth.” n

DIGIT CHANNEL CONNECT

AUGUST 2010

trends

S E L E C T

Intel to acquire McAfee

n a major move, Intel Corporation has entered into a definitive agreement to acquire McAfee, through the purchase of all of the company’s common stock at $48 per share in cash, for approximately $7.68 billion. Both boards of director s have unanimously approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement. Under the acquisition, McAfee will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. According to Paul Otellini, Intel president and CEO, “The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the internet safer and more secure.” “This acquisition is consistent with our software and services strategy to deliver an outstanding computing experience in fast-growing business areas, especially around the move to wireless mobility,” said Renée James, Intel Senior Vice President. “McAfee is the next step in this strategy, and the right security partner for us. Our current work together has impressive prospects, and we look forward to introducing a product from our strategic partnership next year,” she added. “The cyber threat landscape has changed dramatically over the past few year s, with millions of new threats appearing every month,” said Dave DeWalt, President and CEO of McAfee. “We believe this acquisition will result in our ability to deliver a safer, more secure and trusted internet-enabled device experience,” he added. As per Intel and McAfee, the two companies will also jointly explore future product concepts to further strengthen security in the cloud network and myriad of computers and devices people use in their everyday lives. n

DIGIT CHANNEL CONNECT

AUGUST 2010

S E R I E S

TVS launches keyboard with new Indian Rupee symbol

VS Electronics has announced the release of the TVS Gold Bharat - a new keyboard with a dedicated Indian Rupee symbol key. With this announcement, TVS-E has become the first Indian IT company to incorporate the new Indian Rupee symbol in its keyboard. The company dedicated this development to the nation on its 64th Independence Day. According to S. S. Raman, Managing Director, TVS Electronics, “We are proud to

depict the Indian Rupee symbol in TVS-E keyboard and we are the first and only Indian manufacturer to do so. As the core Indian company, we believe in “Taking IT to the heart of India” and this is our humble dedication to the nation this independence day.” n

D-Link launches its 3.5G router

-Link has announced that it is now shipping the D-Link myPocket 3.5G HSDPA Router (DIR-457), which as per the company, will allows users to securely connect to mobile broadband networks. The DIR-457 is a mobile, pocket-sized router that offers download speeds of up to 3.6Mbps when using an UMTS/HSDPA sim card. According to the company, the slim design of this router along with its built-in rechargeable battery provides users with portable convenience. It offers immediate 3G network access and sharing via wi-fi with up to 16 clients by simply pushing the “On” button at the top of the device. “The myPocket Router was essentially designed for frequent travelers and for all those demanding high speed wireless internet connection anywhere, anytime. With so many different services and technologies dependent on the internet, this little device allows users to create a wireless connection regardless of their location,” said Jayesh Kotak, VP-Product Marketing, D-Link India. The DIR-457 myPocket 3.5G HSDPA Router will be available all across India at an estimated street price of Rs 10,800 with 1 year warranty. n

Trend Micro rolls out ‘Monsoon Mania’ offer for partners

rend Micro has rolled out its ‘Monsoon Mania’ incentive scheme for its partners’ sales staff. The scheme is applicable only to the sales persons of the partners and on Worry Free Business Security and Office Scan product line. The incentive scheme will run from July 1, 2010 to September 30, 2010. As per Trend Micro, it has floated this offer to appreciate the channel partners’ sales person effort and also to help them to be able to achieve the target and enjoy the benefits. “The Monsoon Mania initiative is part of our strategy to acknowledge and reward the sales force of our channel partners, who have been extending their full-fledged support to us. Schemes such as these reiterate our commitment not only for our channel partners, but also for their work force,” commented Amit Nath, Country Manager, India & SAARC, Trend Micro. n

S E L E C T

trends

S E R I E S

Iomega puts on a shiny new ‘skin’ in portable storage

ersonal storage company Iomega – earlier known for its Zip drives – is on a mission to shed its old clothes and don an all-new ‘skin.’ Even though storage giant EMC acquired Iomega about two years back, it has been virtually absent from the channel and consumer consciousness in India. But that might just change. According to Rajeev Mukul, Vice President of Asia Pacific and Japan Sales at Iomega, the company now intends to do to personal storage what the parent, EMC, did to enterprise stor-

age many years ago –persuade consumers to store most of their personal data out of their computers and onto Iomega’s newly launched portable drives. Storing data away from the computer makes it less prone to damage and loss. Iomega has announced that its Skin brand of disk drives will be available in the Indian market in a month’s t i m e. A m o n g the other products it is launching a r e N e t wo r k Attached Storage (NAS)

boxes and a wireless storage station that connects various USB devices. Iomega is, of course, not the first company to launch standalone portable drives in India. Seagate, Western Digital, Hitachi, Toshiba and others are already present in the market. However, company executives believe that the EMC parentage and a lineup of bundled software to protect, manage and access data in an easy way will differentiate its products from others’.

Mukul said that tier 2 and tier 3 partners can expect to make 20-25% and 15-20% margins respectively from the sale of Iomega products. The company, besides distributing the products through traditional partners (Redington and Neoteric are its disties), will tap into telecom and photo channels as well, informed Praveen Sahai, Director of Sales (India & SAARC), Iomega. I o m e ga c l a i m s t h a t i t s personal storage products are already top sellers in Europe and are among the top three brands in the US. n

Epson to target large format retail with new tie-ups

ursuing its target to become a Rs1000 Crore company by 2015, Epson India is now aiming at a much stronger presence in the LFR (Large Format Retail) segment. With a present standing of around Rs 400 Crore, t h e c o m p a ny, wh i c h so far had an insignificant presence at LFR stores like Ez one and Big Bazaar, is now tying up with with ten new LFR chains including the likes of Next, Croma and regional chains like

Vijay Sales in the western region of the country. Talking to DCC, SM Ramprasad, ManagerConsumer Products, Epson India said, “It took us two years to analyse and understand the business mechanism and how we want to position ourselves in this segment. Having done that, we will now be present in a full fledged way across all the leading LFRs and expect 5% of our entire revenue in 2010 being driven by LFR.” Epson India aims to sell

its mid to high end range of products through LFR as compared to the entry level products which it largely routes through the channel partners. “The momentum for upselling is more with LFR, and some of the products we will of fer through these chains will be dif ferent from what our channel will be selling. The idea is to create a complete Epson experience. From less than 50 stores last year, we would be scaling upto 400 stores across India

by end of the year,” said Ramprasad. M e a n wh i l e, E p s o n with it’s current 4000 Epson Certified Channel (ECC) and 150 Epson A c c r e d i t e d Pa r t n e r s (EAC) will soon roll out a 100 city channel road show. “We intend to increase our ECC base to 5000 by the end of this year. In addition to that, Epson would launch one its kind printing products targeted at home users and small businesses towards the end of the year,” said Ramprasad.

The vendor currently enjoys a 60% market share in the dot matrix printer segment and 22% in consumer inkjet and 75% in POS printer category. “Epson India has a 13% market share in the projector segment and there has been an increased momentum in the home segment of projectors. In the months to come, we would also be focusing on wireless printing products,” commented Ramprasad.n Payal Pruthi

DIGIT CHANNEL CONNECT

AUGUST 2010

trends

S E L E C T

S E R I E S

Altera urges manufacturers to use genuine components

ltera has urged manufacturers to fight the growing menace of counterfeit programmable logic components being used in devices ranging from video surveillance cameras and blade servers to industrial automation products and telecom carrier equipment, by using genuine components. The worldwide market for such components, called Field Prog rammable Gate Ar rays (FPGAs) and Application Specific Integrated Circuits (ASICs) in

industry parlance, is around $3-4 billion. “The estimated loss to industry due to the use of fake or unauthorised components is close to $40m,” said Ro Chawla, Senior Channel Manager, Asia Pacific, Altera International, one of the key contenders in the space. Companies such as Altera, Xilinx and others provide the design expertise for several types of programmable logic chips that find applications in thousands of industrial and consumer products. Manufacturers

of these products license the patented designs for a fee and place orders for actual components with Original Design Manufacturers (ODMs) and contract manufacturers who in turn make them in their fabs in large quantities (thousands and millions). While the designs are protected by intellectual property laws, many third-party manufacturers either release unauthorised components into the market to make extra money or change certain specifications.

According to Chawla, these unauthorised activities have been rising alarmingly, especially in the Asia-Pacific region. “We want to emphasise the benefits for manufacturers of using genuine products – essentially better support from our as well as our partners’ trained engineers,” he said. Besides, if the products have been built using fake or unauthorised components, there is a higher likelihood of failure or damage to other parts. n

Rashi announces Fujitsu rolls out ‘Freedom offer’ on scheme on Altec Lifebook T4410 Lansing products

ashi Peripherals has announced a “Mega Scheme” on purchase of Altec Lansing products to give more value to its loyal partners. The focus of this scheme is to reward and motivate partners to accelerate business during the festive season for the entire range of Altec Lansing products available in India. The scheme will run throughout the festive season starting from 1st August to 25 November 2010. Under the Mega scheme, partners will be entitled to win a Tata Nano car, Apple Macbooks, Apple iPod touch, iPhones, Blackberry mobile phones, food processors and the newly launched Altec Lansing speakers VS 4621, as per fixed slabs provided for different class of cities and towns. In addition to these free gifts, the top performer of each city will also stand to qualify for fortnightly and monthly lucky draw prizes consisting of Tanishq vouchers of Rs.10000 and Rs.25000 each. Announcing the offer, Rohit Agarwal, Business Manager, Altec Lansing – SAARC & Mauritius, said, “India has been one of the best growth regions for us and the extra incentive is to reward the partners who have been a constant support to us. We want our partners to capitalize on the brand value of Altec Lansing and win some gifts for their hard work.” T h e M e ga s c h e m e w i l l b e va l i d o n purchases made through Rashi Peripherals and Altec premium partners all across the country. n

DIGIT CHANNEL CONNECT

AUGUST 2010

ujitsu India has rolled out a new ‘Freedom offer’ on its convertible notebook cum tablet Lifebook T4410. It will be made available at a price of Rs 94,990, though it is originally priced at Rs 1,14, 990. A s p e r t h e c o m p a ny, t h e F u j i t s u Lifebook T4410 form factor offers all the benefits of an ultra portable convertible with multiple touch (Dual Digitizer) capability. The Lifebook’s key features includes - scrolling through documents, zooming into graphics or moving files and folders with your fingertips, and, pen-based data input like handwriting recognition, along with other additional features. Fujitsu’s new notebook offers connectivity with embedded 3G/UMTS and security with the integrated fingerprint sensor, TPM module. n

Gigabyte partners with Technocrat Infotech

echnocrat Infotech has been appointed distributor for Gigabyte notebooks and netbooks in India. Gigabyte Technology has announced its tie-up with Technocrat Infotech as the national distributor for the entire range of Gigabyte’s notebooks and netbooks in the Indian market. According to Ranganath Varma, Regional Sales Manager, Gigabyte (South Asia), “The synergy between Gigabyte and Technocrat is the result of our shared vision to ensure a sustainable business for our channel partners in terms of better profitability. We would be very selective about our partners in a particular region depending on the market potential and would work with them on a long term basis puting all our force behind to maximize partners profitability and grow together. Delivering our channel partners better profitability and growth is our foremost strategic objective.” “Our association with Gigabyte intends to open up the opportunity for our channel partners by catering to the diverse consumer demands for superior Notebook products,” said Debasis Biswas, Partner-Director, Technocrat Infotech. n

S E L E C T

Sanket Akerkar to replace Rajan Anandan as Microsoft India MD

trends

S E R I E S

icrosoft India has appointed Sanket Akerkar as the new M a n ag i n g D i r e c t o r o f i t s Sales and Marketing Group (SMSG) in India. This is following the resignation of Rajan Anandan, the incumbent MD, who came to Microsoft from Dell India a couple of years back. Anandan is moving on to pursue opportunities Sanket Akerkar outside of Microsoft. Akerker will be based out of Gurgaon and will report in to Ravi Venkatesan, Chairman and Corporate Vice President, Microsoft India. Making the announcement, Venkatesan said, “In the last two years, Rajan has led the organisation to successfully land a slew of innovative products including Windows 7, Office 2010, Windows Azure and Microsoft Online Services, among others. Further, his focus on cloud computing have given us a good foundation for FY11 and beyond.” Welcoming Akerkar, he added, “Sanket brings with him an excellent understanding of enterprises and their needs in an evolving economy, and the new emerging trends around cloud computing that will enable Microsoft India to greater success.” Akerkar, who starts his tenure from September 1, 2010, has been with Microsoft US for over seven years. He was the general manager for Microsoft’s Mid-Atlantic region and his responsibilities included overseeing the sales, marketing and service delivery functions to the company’s largest enterprise customers in the Mid-Atlantic area of the United States. Previously, Akerker was with McKinsey & Co, where he worked with software companies on a broad set of sales and marketing issues. He is a Master of Business Administration from Northwestern University’s Kellogg Graduate School of Management and also holds a Bachelor of Science in Operations Research & Industrial Engineering from Cornell University. n

Reichle & De-Massari appoints Ingo Kubler as new CSO

eichle & De-Massari AG (R&M) is expanding its Board of Management, with Ingo Kubler all set to take over the position of Chief Sales Officer (CSO). Following the departure of Hanspeter Legler, CEO Martin Reichle took control of sales operations himself. “We are happy to be able to fill the position of CSO with Ingo Kubler. He will strengthen our team admirably”, stated Martin Reichle. Kübler is an experienced authority on the international Ingo Kubler connectivity market. Among other things, he worked for Huber+Suhner as COO Wired Solutions & Networks. Following his training at the Swiss Federal Institute of Technology (ETH) Zurich, as a process engineer, he joined the Buhler technology group where he started as a development engineer, progressed to sales engineer and ended up as head of the business unit. This was followed by a number of different activities as divisional head in various internationally active enterprises. n

HCL launches converged handheld gaming consoles

CL Infosystems has launched its new converged handheld gaming consoles, which are aimed at children of the age-group of 10 to 15 years. HCL Infosystems has also unveiled its new brand ambassador – Alien – for the two consoles - HCL ME X15 and Z15. According to George Paul, Executive Vice President, HCL Infosystems, “The world is rapidly transforming into competitive environment with the advent of advanced technology, hence the integration of technologies into a single device will hold the key for today’s interactivity. We believe that convergence can bring the best interactivity and therefore, we are on a mission to introduce the kids to a whole new world of interactive education and entertainment.” As per the company, all HCL ME gaming consoles are built on green technology and the products are 100% recyclable with ROHS and CE compliance. The new HCL ME handheld gaming devices are going to be available at prices ranging from Rs 3,799 to Rs 4,990. n

DIGIT CHANNEL CONNECT

AUGUST 2010

business model

CLOUD COMPUTING SPECIAL

The Many Layers of the SRIRAM S

Different types of cloud computing models will appeal differently to various businesses SRIRAM S

loud computing essentially eliminates the need for customers to buy, deploy and maintain IT-infrastructure or application software individually. Regardless of the application, the cloud computing vendor takes responsibility for all of the infrastructure required to run the solution like servers, backup, software, operating systems, databases, updates, migration, power and cooling, facility space, etc. and associated internal and third party staffing costs. Because cloud computing vendors manage all of their customers on a single instance of the software, they can amortize costs over thousands of customers. This yields substantial economies of scale and skill, and lowers Total Cost of Ownership (TCO).

Layers of the cloud Software as a Service enables vendors to deliver their product in an opex model to their prospective clients, thus helping their clients save on infrastructure and their management needs for the software. SLA based delivery of SaaS (Software as a Service) in an opex model makes it compelling for customers, thus enabling them to focus on their core busi-

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ness. Obsolescence and upgrade challenges also get addressed through this model. Since the SaaS provider centrally manages his infrastructure, the sustenance costs are also optimized, making the offering that much more affordable and hence it can address a larger market. ERP, CRM vendors already offer their offerings in SaaS model. Security software solutions are also now available through SaaS model. The two year global economic challenge has changed the way business and technology investments are done and the cloud computing model fits the bill for any business which wants to leverage IT without the associated challenges in a flexible and scalable way benefiting all. The next revolution in India is on the broadband front, which will help more businesses embrace the cloud model to leverage IT and leapfrog business. India is more famous for its IT Services, but has not made significant progress on software products over the last couple of decades. Platform as a Service (PaaS) is set to change some of the challenges faced by start-up companies by making development and test platform available on an on demand

AUGUST 2010

CLOUD COMPUTING ESSENTIALLY ELIMINATES THE NEED FOR CUSTOMERS TO BUY, DEPLOY AND MAINTAIN ITINFRASTRUCTURE OR APPLICATION SOFTWARE INDIVIDUALLY. The cloud computing model fits the bill for any business which wants to leverage IT without the associated challenges in a flexible and scalable way benefiting all.

LARGE ENTITIES WILL MIGRATE TOWARDS A MIX OF PRIVATE AND PUBLIC CLOUD FOR ITS CRITICAL AND NO CRITICAL AREAS. SMALL BUSINESSES WILL LEVERAGE MORE OF PUBLIC CLOUD DUE TO COST SENSITIVITY.

and affordable model. Startup companies need not be weighed down by the hardware, software and application costs that form a significant expense towards application development and testing. Current software vendors can leverage on PaaS to enhance testing scope across multiple environments, thus helping them reduce significant cost on post-sale support front. With the world becoming increasingly flat, itâ&#x20AC;&#x2122;s imperative for a business to address world market, as domestic market is being increasingly targeted by global brands. IT is a critical business enabler to help business achieve this objective. Key challenges faced by business with respect to IT are management and obsolescence, making it challenging on RoI front. More than 70% of the IT budgets are spent in sustenance, leaving with no money to spend for growing the business. Infrastructure as a Service (IaaS) helps business address these challenges, thus helping them leverage IT effectively without challenges of Capex, sustenance & obsolescence. Business also has much needed flexibility on IT front without legacy issues through IaaS. Many new businesses today have the flexibility to take on established business due to this new model and flexibility. Large businesses like telecom also are leveraging to be flexible and cutting edge with assured SLA.

The road ahead Cloud computing will be compelling both for large and small businesses. Even the government has started leveraging on cloud model to reach out to the masses effectively for its various G2C programs. Large entities will migrate towards a mix of private and public cloud for its critical and no critical areas. Over time based on the experience, more and more applications will migrate towards public cloud to optimize on cost as and when confidence builds up with positive experiences. Small businesses will leverage more of public cloud due to cost sensitivity. They will start experimenting with lesser critical areas to be migrated to public cloud initially and based on the experience will gradually move more and more over time. Both private and public cloud will exist and business will continuously shift between the two based on cost optimization needs and experiences on security, privacy and SLA delivery front. n Sriram S is CEO, iValue InfoSolutions.

CLOUD COMPUTING SPECIAL

CRM

Managing the Customer

WIRELESSLY

A mobile CRM solution can help sales representatives of an organisation to close deals on the go MICHEL VAN WOUDENBERG

‘T

raditional’ Customer Relationship Management (CRM) no longer suffices when time is essence. CRM imperatives today require customer information and business intelligence ‘on the go’. Sales representatives will only use an application if it is easy to use and works simply and intuitively. Crucially, the proper tools and networks need to be set up to facilitate this transition to ‘computing on-the-move’, while not compromising on enterprise-grade CRM services. Here are some principles to consider.

Enterprise data structure Mobile applications require nuanced thinking about enterprise data structure and security. Effective user adoption is the greatest ROI challenge. Data structures for the mobile sales force should follow the philosophy ‘less is more’, making ease of use paramount across structured and unstructured

data, and collaborative communications like social media. Crucially, consider how the data structures can interoperate natively and harmoniously with the device and its data in any connection state. For example, when pulling up a contact lead within a mobile CRM application, our sales rep should be able to ‘tap’ the phone number to automatically dial out; upon ending the call, a ‘call note’ screen can surface for him to jot down thoughts. He must be able to view and interact with information regardless of place of data store.

Actualising the ‘mobile sales assistant’ The sales rep’s world commonly involves a chunk of time performing tasks like managing appointments, and connecting with customer contacts. Simplifying data structures and enabling native interoperation with device, plus data-store independence, should provide an instantly usable but powerful ‘mobile sales assistant’ capability without concerns about data synchronization or multiple data sets. With one click, the sales rep should be able to view account team information, customer contacts, communicate through call, email, text message, or even get driving directions! He should also be able to gain insight into the day’s schedule, contacts, tasks; access recent/frequently-viewed items, and access store-and-forward capabilities to ensure sales productivity when out of network coverage. P r e - p r og ra m m e d a u t o m at e d prompts can remind him to follow up or enter notes at the end of a conversation, ensuring vital information is

MICHEL V WOUDENBERG

stored locally or saved to the backend CRM application in real-time. The organisation benefits from being able to run analysis on data coming into their systems from the field. Crucially, this analysis should be able to encompass historical data available in a data warehouse pre-integrated with a CRM on-demand system. Benefits include being able to run detailed trend analyses on products or interactions that can inform business decisions, shifts in tactics or even strategy, or quickly structure customized targeted marketing content or activities for particular customer leads.

Secured mobility Security is another challenge for our mobile sales rep. Besides phishing or social engineering attacks, losing a mobile device has big repercussions. Organisations must include IT and network management to allow for resource planning and monitoring of end-to-end on-demand-specific application traffic, to ensure availability and performance expectations. A mobile CRM solution should be able to talk web services to a CRM on-demand application over a secure https connection with industry standard 128-bit encryption. Data access within the mobile CRM application should automatically mirror a user’s data access rights as configured in the CRM on-demand application for that device’s owner. The mobile app could also store locally only the last 10 most recently viewed records for each record type. Corporate enforced best practices like device lockout, reporting of lost/stolen devices, and CRM password resets definitely help minimize or fence any breaches of data access. The provisioning of the application to the mobile device should be completely automated for updates, with the sales rep just needing to click a link to have the app delivered over the network. Once authenticated with username and password, he is then ‘live’ and ready to access the CRM database. The ultimate aim is to allow the sales rep access to rich industry leading sales, service, marketing and analytics functionality wherever he has access to the network, or at the point of customer engagement to shorten the sales cycle and close deals while on the go. n Michel van Woudenberg is General Manager, CRM On Demand Asia Pacific, Oracle Corporation.

DIGIT CHANNEL CONNECT

AUGUST 2010

cover story

ARE YOU

THREATENED? Enterprises are looking to the cloud for benefits on the horizon â&#x20AC;&#x201C; lower upfront

costs, more flexibility and fewer management hassles. But is cloud

computing a looming threat for the channel? CHARU KHERA

DIGIT CHANNEL CONNECT

AUGUST 2010

CLOUD COMPUTING SPECIAL

ith the growth in the available bandwidth, the low prices of PCs and with the increase in the mobilisation of the workforce, cloud computing now makes more sense than ever before. But cloud computing can mean different things to different people; and in the channel industry, many different views co-exist for this discussion. DCC spoke to many partners in the channel fraternity as to what cloud computing means to them. A lot showed their concerns and considered cloud computing a threat to their business; as the perceived threat comes from the fact that with cloud computing, users’ computing resources can be converted into a virtual offering, all their applications can be hosted and storage space can be bought based upon individuals’ needs and capacity – all leading to loss of business for partners. On the other hand, many people have been optimistic and believed that cloud computing, as a growing conventional technology, could offer them enormous opportunities.

As such, at an individual level every computer user is using cloud services for some application or the other, opines Paresh Shah, CEO, PH Teknow, Mumbai. “Cloud computing is certainly a threat for the channel partners who are only box pushers, but it is a opportunity for partners who are into managed services and provide solutions. Going forward, cloud computing will be used by many organisations for some or other of their applications, and bigger enterprise will have mix of private and public cloud in their organisation,” adds Shah. Agreeing with him is Chetan Shah, Managing Director, Xpress Computers, Mumbai, who believes that cloud computing is a good opportunity for partners. “Cloud computing will definitely alter the way customers are buying and implementing IT solutions and technologies. But at the same time, it can also pose a threat to existing business models for many,” he says.

Cause for concern As per a few industry watchers, many of the concerns around cloud

PARESH SHAH, CEO, PH Teknow

“CLOUD COMPUTING IS CERTAINLY A THREAT FOR THE CHANNEL PARTNERS WHO ARE ONLY BOX PUSHERS, BUT IT IS A OPPORTUNITY FOR PARTNERS WHO ARE INTO MANAGED SERVICES AND PROVIDE SOLUTIONS.”

cover story computing among partners originate without the benefit of the cloud being experienced by them personally, and are also based on incomplete information, or inaccurate information being perpetuated by some few partners. Cloud computing covers a host of technology delivery models, such as managed services, application services, hosted storage, managed security solutions and many others. These models can be a business to System Integrators (SIs), who deal in hardware sales; however, SIs should consider providing integ ration services and not just concentrate on hardware margins. As per Saket Kapur, Managing Director of New Delhi-based Green Vision, “Cloud computing is basically ASP (Application Service Provider) in its new avatar. I believe that going forward, cloud computing may not be a threat for the channel community, as it would increase computing penetration. Let us not forget, for success of cloud, hardware and connectivity is mandatory on the user end. Moreover, setting up of clouds is also within the purview of channel. On the other hand, advantages of cloud computing shall be

CLOUD COMPUTING SPECIAL

cover story immense for partners. For example, reduction of piracy, licensing issues of customers, virus related mayhem and much more. Last but not the least, clouds will finally engulf the computing skies.”

Opportunity in disguise Solution Providers (SPs) who want to make profits from cloud services should take informed decisions before venturing down the path of cloud computing. Those decisions should include what ser vices to offer, how to offer, what to charge for those services, how to bill and also how to support those services. SPs can choose from a host of services to offer to customers. They can create hosted applications for customers, be an MSP, ASP; can develop a custom application and deliver it via the cloud (referred to as Software as a Service); or can even provide hosted file servers to small and medium enterprises in a data center, i.e.,

deliver a virtual file server via the cloud. Another option for an SP or SI is to sign on as a partner for vendors such as Salesforce or WebEx and resell cloud services. Each of these approaches can help SPs/SIs gain value from the cloud. Explaining further the business value of cloud computing, Milind Dhongade, owner of Pune-based Computer Home says that though cloud computing is a threat for some, it can serve as a great opportunity for many partners. “If one looks at the issue in a simple way, it looks that hardware channel has no significant role in the cloud model and hence will be losing on the opportunity to make profits. But looking at the other side of the coin, the channel can certainly create value addition in selling these ser vices/applications. Moreover, there is huge potential in the cloud, as the market is huge and there are very few players at this point of time. Obviously, channel community has

SAKET KAPUR, Managing Director, Green Vision

“I BELIEVE THAT GOING FORWARD, CLOUD COMPUTING MAY NOT BE A THREAT FOR THE CHANNEL COMMUNITY, AS IT WOULD INCREASE COMPUTING PENETRATION.”

to change their business model to address this oppor tunity,” adds Dhongade, who believes that the channel community has the advantage of being close to the customer, which can be leveraged effectively in case of cloud computing. Cloud computing is a great gift for small to mid size companies - low cost yet robust data sharing with almost zero downtime. Moreover, it saves investment on upgrading the hardware infrastructure from time to time and also saves on the cost of resource management of servers, yet definitely increases opportunity for the server and networking professionals to seek lucrative jobs with companies like Google, Yahoo, Rediff and many more. Sunil Nagpal, Managing Director of Sai Data Systems, says, “Cloud computing definitely gives channel community new opportunity in the infrastructure management industry, which is a fast growing profitable vertical emerging to earn better profits than selling boxes.” Nagpal further adds that opportunity will grow further as the basic hardware and networking requirements in small and mid-size companies will exponentially grow. “Quantum business will definitely grow, as the ease to set up services like CRM is easy with cloud computing. Total cost of ownership is also much more affordable. In addition, cloud computing has the biggest advantage of offering better productivity tracking of the field staff with centralized database,” says Nagpal.

Going forward For most SPs/SIs, cloud computing can spell a host of opportunities. The fact that the channel community has a huge role to play in making cloud computing a total success is not questionable and while the standards are being established and pilots conducted, SIs/SPs should try and acquire the relevant skill-sets. For now, cloud computing is here to stay and as per industry watchers, it is just a matter of time before partners will adapt the technology to meet customers’ growing needs and accordingly build their business models around the cloud, so that it can deliver profits to them while also increasing service opportunities for them. n editor@digitchannelconnect.com

DIGIT CHANNEL CONNECT

AUGUST 2010

CLOUD COMPUTING SPECIAL

SaaS

Cyclical business environment: Many small and mid-sized firms are in businesses that are highly cyclical in nature. Thus, they have high demand for their goods and services during boom phase, leading to higher scale of operations, and low demand during slow-down phase. Such organisations have to invest in infrastructure and licenses required during the boom phase which are not optimally utilized during the slowdown phase. This leads to inefficient and wasteful usage of IT resources. SaaS IT solutions allow scaling up and down as per the business requirement. Also, the payment is based on the actual usage leading to optimal utilization of funds.

Taking the

Simple Route

More and more small and mid-size organisations are opting for SaaS solutions to tackle their challenges R SUKUMAR

rganisations, irrespective of their size, need to use IT solutions to enhance efficiency and productivity, reduce cost, and improve customer satisfaction. Better use of information technology also helps some organisations to be more competitive compared to their peers. While there is consensus on the benefits of IT, there are major challenges faced by small and mid-sized firms in adoption of IT solutions. One or more of the below mentioned situations necessitate opting for a SaaS IT solution in small and midsized firms. Limited IT team: Attrition is very high in an IT team as compared to other functions. Even large firms find it difficult to retain their highly trained and experienced IT team members. There are ample opportunities for such resources in India as well as abroad. Small and mid-sized firms find it very difficult to attract good IT resources. They find it even more difficult to retain them. Also, the small and mid-sized firms are not in a position to offer high salaries to IT team members. Thus, there is a constant churn in the IT team, leading to poor support to the users, higher training costs, and lower

uptime of IT infrastructure. This is one of the prime reasons why IT projects fail in small and mid-sized firms. Limited infrastructure: The majority of small and mid-sized firms are having branches across the globe and in order to have a smooth flow of business, these branches have to be integrated. For integration, the investment in hardware and networking is huge, which is beyond the budget of small and mid-sized firms. Thus, firms that require robust IT systems due to business considerations, find it beneficial to sign up with SaaS IT solutions. Limited management bandwidth: Implementation of IT projects requires management supervision and involvement. Small and mid-sized firms have only one or few top managers. The same managers have to deal with all the operational issues. Thus, they have little time to devote for implementation of IT solutions. As SaaS IT solutions are simple to implement and use, they require less time for implementation and require less top management involvement. Limited funds: Organisations that do not have funds for upfront investment can go in for SaaS IT solutions.

R SUKUMAR

FIRMS THAT REQUIRE ROBUST IT SYSTEMS DUE TO BUSINESS CONSIDERATIONS FIND IT BENEFICIAL TO SIGN UP WITH SAAS IT SOLUTIONS. As SaaS IT solutions are simple to implement and use, they require less time for implementation and require less top management involvement.

The below mentioned needs can be best fulfilled by SaaS offerings:• Standardization: SaaS offerings allow an organisation to quickly migrate to standard business applications/infrastructure/technology. • Quick realization of benefits: As the implementation timeframe is shorter compared to conventional deployment, there is quick realization of benefits. • 24X7 availability: Globally integrated businesses require 24X7 availability of IT applications/infrastructure. This is provided by SaaS IT solutions. • Secure transactions: The cost of security breach is enormous. SaaS IT solutions, by virtue of the high investment in security infrastructure and audit processes, provide secure execution of business processes. • Accountability: A typical IT system involves multiple vendors/solution providers. By integrating all this under a service, SaaS IT solutions pin accountability on a vendor. • Avoidance of data loss: SaaS solution providers make huge investments in data back-up and disaster recovery processes. Thus, the risk of data loss is minimized. SaaS makes sense also for organisations that already have hosted IT solutions. Most of the hosted IT solutions are based on a dedicated infrastructure for a particular client. Thus, there are challenges/issues related to application upgrades, patch management, accommodation of additional users, etc. SaaS solutions are meant for a large number of organisations and are designed inherently to address all the issues related to this requirement. n R Sukumar is General Manager – Sales, Ramco OnDemand ERP.

DIGIT CHANNEL CONNECT

AUGUST 2010

business service management

OUT BOXES OF THE

How can the private sector’s next IT innovation – cloud computing – revolutionise the way the public sector does business? BEN NEWTON AND HERB VANHOOK

DIGIT CHANNEL CONNECT

AUGUST 2010

fundamental requirement for cloud computing is to eliminate the need for your internal stakeholders and external constituents to understand or even consider the complexities of the back-end technology infrastructure supporting the services being provided to them. In other words, the value cloud computing provides is that it gives your customers the freedom to focus on their core business or mission. As the service provider, you have two primary techniques for providing them with this freedom: abstraction and automation. Abstraction: In this context, abstrac-

tion is the process of hiding the details of the implementation to focus on service delivery. Abstraction is achieved primarily through virtualisation. The main thrust of virtualisation is to hide the complexity of supporting infrastructure and to provide cost-saving uniformity regardless of the supporting hardware. However, full abstraction also requires hiding process complexity behind the scenes. For example, according to IT Infrastructure Library (ITIL) guidelines, the complexity associated with the change and release management processes necessary to support the deployment of new services is abstracted

CLOUD COMPUTING SPECIAL through the service catalogue. Through this catalogue, customers select from a simple list of available services and choose those that meet their needs. Automation: While it is entirely possible to implement abstraction backed by manual efforts, this is a doomed approach. Abstraction depends on both uniformity and configuration controls to achieve any economies of scale and cost-savings. No amount of documentation and processes will ever guarantee the uniformity and consistency of work done by administrators manually. Automation generally takes two forms: process automation and configuration automation. - Process automation is best understood in terms of automating the fulfilment of processes and activities in a model such as ITIL. - Configuration automation follows process automation and carries out the actual configurations represented by the change requests. It reshapes the technology environment ‘on the fly’ to meet the needs of the requested services. In considering these two types of automation, you may ask, Why is process automation even necessary? Isn’t it enough to merely automate the building of services? Doesn’t the layer

of process automation add unnecessary complexity to the management of cloud services? The answers come down to the concept of configuration control. Without controls in place, you have no way to plan or design the infrastructure properly, since the end result is completely undefined. This lack of definition can lead to a variety of IT control issues, not the least of which is virtual sprawl — the uncontrolled and overwhelming growth of the virtual infrastructure.

Availability It will be difficult to transition your infrastructure to a cloud services model if, by doing so, you lose real-time visibility into system availability. In fact, why would any IT organisation forgo control over its infrastructure unless it has confidence that the quality of service will be more compelling in the cloud? Service Level Agreements (SLAs), as defined by ITIL, are the method for both agreeing upon and communicating adherence to expectations. If you are to effectively meet your SLAs, it is essential that your cloud environment supports real-time availability and performance monitoring to ensure that expectations are being met. Conversely, it is also vital that your customers be provided a dash-

AVAILABILITY IS A SIGNIFICANT PART OF ANY CLOUD SERVICES DISCUSSION. IT WILL BE DIFFICULT TO TRANSITION YOUR INFRASTRUCTURE TO A CLOUD SERVICES MODEL IF, BY DOING SO, YOU LOSE REALTIME VISIBILITY INTO SYSTEM AVAILABILITY. If you are to effectively meet your SLAs, it is essential that your cloud environment supports real-time availability and performance monitoring to ensure that expectations are being met. DYNAMIC BUSINESS SERVICE MANAGEMENT HELPS NOT ONLY IN ADDRESSING THE CORE REQUIREMENTS OF IT MANAGEMENT BUT ALSO IN SUPPORTING THE ON-DEMAND PROVISIONING AND MANAGEMENT OF SERVICES THAT LEVERAGE NEW COMPUTING PLATFORMS.

Service Management Process in Cloud Management

BSM

board for visibility into the state of their services. With a cloud architecture based on abstraction, automation, and availability, you have the core of cloud service management.

Using the cloud as a resource pool If one of the fundamental tenets of cloud computing is to free your customers to focus on their core business requirements, then the flip side of that coin is that the cloud also gives your IT organisation the freedom to focus on the best and most cost-effective way to deliver the requested services. Many shared environments today struggle with the consequences of receiving fully formed resource requests (e.g., I need this many servers with this much CPU and RAM), rather than higherlevel business requests (e.g., I need enough capacity to perform this specific service). The inevitable consequence of this arm’s-length type of resource request management is twofold: One, customers overestimate requirements to ‘hedge their bets’ and ensure acceptable service; two, IT is stuck in a reactive mode, with no understanding of actual business requirements, and subsequently, no way to properly plan ahead.

Dynamic resource pooling and capacity management It is here that cloud computing really shines and provides real cost savings. Using the cloud, you can offer up services that are satisfied from a dynamic resource pool. As resource needs fluctuate, you now have the flexibility to choose the best solution from the available resources, which is where the concept of Dynamic BSM (Business Service Management) comes into play. Dynamic BSM is the next evolution of management architecture where the goal is not only to address the core requirements of IT management but also to support the on-demand provisioning and management of services that leverage new computing platforms, such as virtualisation and cloud computing infrastructures. So what are the fundamentals of providing this kind of dynamism? The first element is having a fully virtualised infrastructure to achieve the best possible utilization of available capacity. There is significant literature addressing this part, and there are many excellent technologies to help achieve it. However, the question that is so often missed

DIGIT CHANNEL CONNECT

AUGUST 2010

business service management

Cloud Computing Process Automation

is, How do we measure performance, and what qualifies as good versus poor performance? To answer this question, you need real-time, intelligent performance management to clearly define how the service is performing from the customer’s point of view, as well as capacity management to optimise cloud resources by identifying the customer’s current and future capacity requirements. Customer perception is based on agreed-upon SLAs, which, once defined, provide a very clear boundary between acceptable and unacceptable performance. Combined with defined levels of service (say, gold, silver, and bronze), SLAs also provide great flexibility for the cloud computing implementation in terms of pricing. Based on the performance against the SLA, the cloud provider can adjust capacity up and down to achieve the most efficient use of the available infrastructure.

the participating organisations.

Providing locationindependent resources

Charging for the cloud

The community cloud model is an especially powerful idea within the public sector. Multiple agencies with similar concerns and requirements can create an environment that serves overlapping agency needs. This is especially relevant in the context of lower budgets and information-sharing requirements at both the federal and state levels. The community cloud provides many benefits of public cloud services, without the security concerns. The community cloud model stands or falls based on the power of dynamic resource allocation. As the size of the community grows, the economies of scale are more and more compelling. Conversely, the more diverse the interests served, the greater the need for the cloud provider to use abstraction and automation to their fullest effect. With the right networks in place, the community cloud provides a pool of location-independent resources that can be leveraged equally by each of

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The power of public cloud services Today, even the most secure government agencies need to share some information with the public. Formerly unacknowledged intelligence agencies now have web sites, and government data across the board is being shared with the public. Public cloud services can be used to provide overflow capacity or a fully hosted environment for those government services with less severe security requirements. For example, a government agency might anticipate much higher usage of a service during a short period of time (e.g., tax season, natural disasters), and with the proper integrations in place, internet traffic could easily be load-balanced between the public and private cloud to quickly increase capacity, all without incurring any long-term costs. Service request management and service level management are central to the problem of pricing. Like a menu in a restaurant, prices should be clearly attached to the available services in the service catalogue. In addition, the service levels provided for each option should be clearly communicated to the customer. The result is that the customer gets what they really want for a price they can afford, and the provider clearly understands what is important to the customer. Finally, one often overlooked aspect of dynamic resource allocation is the harvesting of deactivated services. If the lifetime of a service is not clearly defined upfront in the service request, the customer may not take the time to release any resources that are no longer needed, particularly if no cost is associated with them. Even if the customer can override the deactivation when the time comes, the inclusion of a time limit clearly establishes a

AUGUST 2010

process where unused resources can be reclaimed. Another option would be to provide incentives for clear time limits by offering cost rebates on services that are ‘reserved’ for a specific time period (e.g., “I need ten servers on March 1 for 60 days”), versus ‘spot requests’ (e.g., “I need ten servers right now”). Once pricing has been established as part of the service request process, it is a small step to consider more finely tuned pricing models. The flexibility inherent in virtualisation for using computing resources more efficiently also lends itself to the idea of customers paying only for what they use, as opposed to paying a fixed price. So, how can you achieve this kind of flexible pricing? It can be as simple as charging the customer per virtual machine operating under their service or based on comprehensive business modelling. The essential element of business modelling of cloud service pricing is to have the visibility into all of the performance, usage, and configuration data across the infrastructure. This data can then be subjected to demand modelling, cost modelling, consumption reporting, planned versus actual, and so on. These analyses can then be fed into the services pricing to provide constant feedback based on usage and capacity.

Managing the cloud The automated processes necessary to build and manage your cloud services can be divided into two parts. First, there are the processes that deliver the service. For example, request management accepts the service request from the end user, the request is translated into a Request For Change (RFC) in change management, and then, that change is executed in the cloud by configuration automation. Second, the feedback processes assure that the delivered service meets the standards required by the provider and the requester. For example, compliance management helps to ensure that the resources provided meet all applicable security standards. Availability management helps to ensure that SLAs are met and that the service desk resolves any incidents. Capacity management helps IT meet future SLAs by adding or removing resources as needed. On-Demand self-service: The first step in the delivery of a service will always be taking a request from the customer (request management). There are two essential elements to delivering true automation at this stage: the

bsm customer interface and the integration with change management. The ‘cloud experience’ is doomed to fail if your request management interface is not simple and user friendly. The crux of the whole experience for your customers lies in their ability to focus entirely on what they need — not on how the IT organisation will fulfil that need. Despite the complexity behind the scenes, the information you require from your customers should be simple, easy to understand, and directly related to their own understanding of what they think they need. Change management: The basic information gathered from the customer is translated into an RFC based on existing delivery processes. The RFC can be abstracted out to the service level (e.g., “add web capacity), or the server request can generate multiple, specific RFCs (e.g., one for creating a new virtual machine, another for installing the required application, and a third for configuring the application to the customer’s needs). If necessary, each of these requests could then be subjected to the standard approval processes, so that the manual IT resources required to manage the request have been reduced to the approval step only. However, in most cases, the manual intervention can be entirely eliminated through a pre-approval process – leading to huge cost savings. Configuration automation: Configuration automation delivers on the change management process, deploying the server, client, network, or application required by your customer. There may be a temptation to reduce configuration automation to the mere juggling of virtual images or templates (a fully configured virtual server image that can be copied over and over to build capacity). While this imagebased approach may be appropriate for the most simple, homogeneous implementations (which require little-tono custom configuration), it does not

Virtual Server Stack of ‘Atomic Components’

scale to an environment with any sort of complexity or size. The most flexible approach requires that the delivery process be separated into ‘atomic components,’ each of which is automated. Compliance management: Compliance management in the public sector — even within internal support networks — has become one of the most essential, yet least automated processes in the data centre. The complexity and quantity of compliance requests keep increasing, yet many administrators still wade through the morass of impenetrable rules and overwhelming data without sufficient automation to increase efficiency. While this situation might have been accepted, or at least tolerated, in a legacy environment, it is unacceptable within the cloud. Resorting to manual methods of compliance can quickly eliminate any cost savings and customer satisfaction improvements. The value of the cloud is entirely dependent on its ability to reduce costs and simplify the customer experience; the rapid pace and ease of change within a virtualised infrastructure only magnify those problems. Compliance management, in this context, takes on two very important aspects. First, the application of compliance rules must be both separate from, and integrated into, the delivery process. The compliance automation fixes and patches and will then be just another element laid atop the underlying operating system and applications, thus reducing the need to constantly update images. Second, the compliance process must be tightly integrated into the incident management process. This allows unexpected compliance findings to be dealt with in the same efficient process that is used to deal with service failures. Configuration Management Database (CMDB) or Configuration Management System (CMS): After the entire virtual stack has been deployed or updated, the next step is to follow the ITIL configuration management process and update the CMDB (ITIL v2) or CMS (ITIL v3) through an automated discovery process. The pace of change within the cloud means that any configuration management, by necessity, must be tightly integrated with the virtual infrastructure and aware of changes as they happen. What’s more, these updates should not be confined only to the initial build. The very nature of a cloud infrastructure implies the ability to rapidly recon-

The community cloud model is an especially powerful idea within the public sector. Multiple agencies with similar concerns and requirements can create an environment that serves overlapping agency needs. THE ESSENTIAL ELEMENT OF BUSINESS MODELLING OF CLOUD SERVICE PRICING IS TO HAVE THE VISIBILITY INTO ALL OF THE PERFORMANCE, USAGE, AND CONFIGURATION DATA ACROSS THE INFRASTRUCTURE. THIS DATA CAN THEN BE SUBJECTED TO DEMAND MODELLING, COST MODELLING, CONSUMPTION REPORTING, PLANNED VERSUS ACTUAL, AND SO ON. Despite the complexity behind the scenes, the information you require from your customers should be simple, easy to understand, and directly related to their own understanding of what they think they need.

figure capacity and recover from failure. Therefore, it is essential that your CMDB/CMS be proactively updated any time the virtual infrastructure is changed, whether or not that change is planned. Capacity management: Performance and usage data flows in one end of the process, and recommended environment changes come out of the other. These changes may cover a broad range of actions — from simply adding resources to running virtual devices to spinning up entirely new capacity out of the available pool. Availability management and SLAs: Real-time and intelligent availability management provides the finger on the ‘pulse’ of the cloud. Systems need to be monitored against SLAs, and any service failures need to be dealt with in a quick and decisive manner. For example, if the system detected that the performance of an application was deteriorating and threatening the SLA, new resources could be dynamically allocated to compensate. At the same time, a problem resolution process could be initiated to perform a baseline audit to detect if any changes were made to the application, and an RFC could be submitted for the remediation of any unapproved changes found in the audit. Service desk: The final function in a closed-loop IT management process — and one that is essential to delivering the cloud — is the service desk, or in ITIL terms, incident and problem management. More than any other process, this function affects customer satisfaction with the cloud, since the service desk is the customer view into the timely resolution of their issues. In many of the simpler virtualised architectures in place today, it is likely that troublesome virtual appliances will be merely ‘recycled’ as opposed to ‘fixed.’ The complexity inherent in any realworld application of cloud computing necessitates a more robust approach to problem solving. A truly enterpriselevel service desk is the only answer. By fully integrating and automating the service desk into your virtual environment, you can lessen the effects of unstable complexity and quickly solve problems when they are found. n Ben Newton is Technical Director for Department of Defence and Intelligence Community at BMC Software. Herb VanHook is Vice President of strategy in the Office of the CTO at BMC Software. This article has been adapted from a white paper.

DIGIT CHANNEL CONNECT

AUGUST 2010

overview

GET

YOUR HEAD IN THE

CLOUD I Embracing the cloud is ultimately a matter of business and not just technology FAISAL HOQUE

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AUGUST 2010

t’s nearly impossible to pick up a technology magazine or sit through a strategy meeting without encountering a reference to what some consider the next and greatest wave in enterprise computing – the cloud. Cloud is a fitting term for something so shrouded in mystery and hard to grasp. We’re not helped by the plethora of buzzwords that seem to accompany this concept: grid, utility, Service Oriented Architecture (SOA), service management, Software as a Service (SaaS), Platform as a Service (PaaS) and so on. It’s easy to get lost in the wonders of the technology and the lofty promises of the new age it will usher in, but we must stay anchored: this is ultimately a matter of business, not technology. And, as such, its useful-

overview

ness must be assessed in the context of the enterprise as a whole. New ways of thinking are required. Investment decisions and the measurement of success will not be about individual technologies, or projects, or even the IT department itself, because the cloud is about the whole organisation. Cloud computing can be thought of as processing and storage done “elsewhere”; meaning, typically, physically removed from the user and, typically, off-site. The user does not need to think at all about the hardware; that is selected and made available by the company that maintains the cloud. In some cases, a user won’t need to think about specific applications; they will just specify the functionality they need. In still other cases, a business side customer will employ the functionality without a technology department acting as an intermediary; the strategic and tactical guidance now performed by internal technology departments will reside in the cloud.

Efficiency and agility While efficiency and cost savings are a legitimate motive for pursuing cloud computing, and will be the initial one for most companies, some see clouds as enablers of innovation and agility. If hardware and software are instantly available and always up to date, and if reliability and privacy are guaranteed, then a firm can focus all of its energy on new business models, experimenting on the fly, and learning from new approaches to finding and satisfying customers. And factoring in the computing resources needed for a new initiative will be a matter of when to push the button. It is best to not get too wrapped up in parsing the various terms associated with the cloud. Utility computing, for example, refers to the pay-per-use or metered approach that Amazon.com uses in its EC2 cloud offering. Electric power is often used as an analogy: you plug in your appliance and don’t really

care how the electricity is created or who is doing it. Grid computing refers to the linking of thousands of computers to which pieces of a gigantic problem, often scientific in nature today, are distributed. The grid offers processing power and storage unavailable in a typical single organisation. In practice, organisations will move to the cloud incrementally, shifting portions of their computing needs to it over time. Smaller companies will see immediate payoff in moving completely over to the cloud. Larger companies must wrestle with proprietary systems that are strategically critical and extremely complex and unique business processes that have been built up over time and can’t be easily handed off.

Anytime Anywhere Accounting Travel

Branch Office

Head Office

Work will change What we cannot avoid -- and it is much more difficult than buying servers and software seats -- is the changing nature of work itself. Leading companies are moving toward the convergence of their management of business and technology. This simply means that decision-makers are conversant in each and act on each to advance a corporate strategy. For them, technology is no longer a mysterious activity hidden away in a black box. The computing tools in the cloud will be represented to the end customer virtually, in non-technical ways, so that he or she can use them without excessive specialty training. At the same time, the customer will be ever more knowledgeable about the potential of the tools and ever more adept at manipulating them.

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Bend it to your needs Have you ever worried about losing your data in a cell phone crash? You may say that you backup your cell phone data on your laptop. What if you lose your cell phone and laptop at the same time? Solution is simple, park this data on the cloud and sync it whenever you need it. Port contacts from one cell phone to another, without ever worrying about multiple software, different formats and OS of your phone and cables. Check out vodafone360.com or zyb.com. Now, imagine the same flexibility for your enterprise data. Opening another site will be a breeze with much less complexity and headache. RISHI KAPOOR , Imagine, your CEO and mobile workforce accessing their data/applicaMETLIFE tions securely using any device connected to network without nagging. Cloud computing is a very promising technology, but it has its own challenges that we will have to deal with. Security of data, data privacy and compliance laws, cross border data access are just a few hurdles. But in spite of all the challenges, it’s simplicity to end user, cost efficiency and portability is something which is unmatched.

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CLOUD COMPUTING SPECIAL

overview

UD COMPUTI NG

d reporting to questions ht people in ve the training ves encouragd them to do?

hers, are hnology management TM n to BTM agement el is designed anisations in It specifies can be ment tool. st measureiness to move nterprise’s uch areas as ology investerships. ncremental g. It is more isation must it blindly he clarity of an on arrayed as n expect less

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Security concerns are a blocking issue when it comes to cloud computing

49% 14%

THE USER AND,

16%

14% 7%

Strongly Agree Strongly Disagree

Agree Disagree

Undecided Source: KPMG the Netherlands, 2010

time to create an SEA,and however this business purpose the (and enabling should include both current and desired technology, i.e., a business architecstate it can optimise the entire turescenarios) and a technology architecture business, not just its technology. mapped to it. At the highest level, AnSEA SEA is and maturity in in non-technical these other the expressed capabilities can help the enterprise answer language anyone in the organisation such questions as: can understand. An SEA lays out all information do we need and ofWhat the business processes, end to aren’t end, getting? How canexternal we get it?partners and incorporating customers. What information could we have with the Most oforganisations havethis variresources a cloud or grid? Would give ous describing us the documents basis for a new strategic thrust?what they from the thick Howdo, would we benefit fromnotebooks more sharof of long-range gathering dust ing informationplans internally and exteron shelves, various mission nally? Would atocloud enable this? statements. Anmanaging SEA makes sense of those Is anyone each process end to

islands of information. It should clearly show where contradictions in purpose and redundancies in execution lie. At its most granular level, the SEA becomes technical: it specifies the various information technologies in use. In leading organisations, these are now expressed as a Service Oriented Architecture (SOA), i.e., software is maintained as modules that can be combined to create applications as needed; sometimes by business users. An SOA can reside within the organisation or in the cloud. An SOA is not a necessity to work in the cloud, but it adds tremendous flexibility as the organisation senses and responds to changes in its environment. Other management capabilities are important, particularly organisa-

mpanies must wrestle prietary systems that are ally critical and extremely and unique business es that have been built up e.

toforum.com

tional and change management. An CLOUD end? How does a process interact or interSEA should indicate whether existing COMPUTING fere with others? What effect does each organisational structures are helping CAN BE have on customers? Do currently orprocess hindering the overall strategy. This THOUGHT OF AS available entire clouds have the technical sophisincludes divisions, but also PROCESSING AND tication groups we need?and reporting relaworking STORAGE DONE Above all, what canlead we and should we be tionships. It should to questions “ELSEWHERE”; doing differently using a cloud? such as: Do we have the right people MEANING, At some the enterprise will need in the rightpoint places? Do they have theto TYPICALLY, answer the bigneed? questions: the company, training they AreIstheir incen- as PHYSICALLY a whole, better off? Is it finding and tives encouraging them to do whatretainwe REMOVED FROM ing good need themcustomers? to do? Is it delivering new,

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innovative products to them? Is it adjusting TYPICALLY, Measuring the financial on the fly to changes in customer demand, OFF-SITE. value marketplace realities, new technologies, and T h e s e cmoves? a p a b iBeyond l i t i e s that, , a nwhat d 1are 5 competitor others, are taken from and thetechnology Business changes in management While efficiency Technology Management doing for the bottom line? Framework, and cost savings a management standard advanced by Taking the holistic measure of an enterare a legitimate theprise’s BTMperformance Institute, aissister organisaa rather straighttion to BTM Corp. According to this motive for forward process. This measurement can management framework, a matupursuing cloud be combined with interim assessments rity model is designed to assess the computing, on the efficiency of individual business progress of organisations in adoptand will be processes currently and in a projected ing these capabilities. It specifies the initial best state, and the costs of internal versus five levels of maturity, which can be one for most external computing. In no case should determined using an assessment tool. companies, such measures be made in isolation from T h i s t h e n wo u l d b e t h e f i r s t their impact on and thereadfirm’s some see clouds measurement of customers an enterprise’s as enablers of overall purpose iness to move toand thestrategy. cloud: assessing innovation and is the timemanagement to wrestle with these the Now enterprise’s readiagility. issues. of the from traditionness in Purveyors such areas ascloud strategy and al big-picture providers to relative newcomplanning, technology investments, ersmanaging are rampingpartnerships. up their capabilities, looking and IN PRACTICE, for benefits in joint ventures, Cloud computing is notand an trying incre-to ORGANISATIONS understand the value proposition for future mental variant of classic outsourcWILL MOVE customers. Traditional suppliersand of pay-pering. It is more fundamental, the TO THE CLOUD organisation beapplications made ready. seat, one-nichemust software are also INCREMENTALLY, If anxiously it is not,wondering if it blindly pursues how they fit in. the SHIFTING cloud without the clarity of an SEA Some “big thinkers” are prophesying PORTIONS and the arrayed as thewith end of ITorganisation departments as we know OF THEIR it has always been, then it can expect them. It is more likely, however, that IT COMPUTING less than pleasing results.but in a new, departments will continue NEEDS TO IT OVER A company move allwill or some more strategiccould role. The CIO become TIME. of truly its computing to a cloud and simply the "Chief Information Officer" as compare cloud versus opposed the to thecosts Chiefof Information Technolin-house, but that would be missing ogy Officer signifying a shift in focus from the larger potential. The organisation the technology to its ultimate purpose.

might very well be simply trading one source of computing for another in Faisal Hoque is an internationally known support of redundant or inefficient entrepreneur and author, and the founder and business processes. If it takes the CEO of BTM Corporation. His previous books time to create an SEA, however (and include Sustained Innovation and Winning this should include both current and The 3-Legged Race. BTM innovates desired state scenarios) it can business optimodels enhances financial performance mise theand entire business, not just its by converging business and technology with technology. its products and intellectual property. An SEA and maturity in these other capabilities can help the enterprise answer such questions as: • What information do we need and aren’t getting? How can we get it? • What information could we have with the resources of a cloud or grid? • Would this give us the basis for a

AUGUST 2010

new strategic thrust? • How would we benefit from more sharing of information internally and externally? • Would a cloud enable this? • Is anyone managing each process end to end? • How does a process interact or interfere with others? • What ef fect does each process have on customers? • Do currently available clouds have the technical sophistication we need? Above all, what can we and should we be doing differently using a cloud? At some point, the enterprise will need to answer the big questions: Is the company, as a whole, better off ? Is it finding and retaining good customers? Is it delivering new, innovative products to them? Is it adjusting on the fly to changes in customer demand, marketplace realities, new technologies, and competitor moves? Beyond that, what are changes in management and technology doing for the bottom line? Taking the holistic measure of an enterprise’s performance is a rather straightforward process. This measurement can be combined with interim assessments on the efficiency of individual business processes currently and in a projected best state, and the costs of inter nal versus external computing. In no case should such measures be made in isolation from their impact on customers and the firm’s overall purpose and strategy. Now is the time to wrestle with these issues. Purveyors of the cloud from traditional big-picture providers to relative newcomers are ramping up their capabilities, looking for benefits in joint ventures, and trying to understand the value proposition for future customers. Traditional supplier s of pay-per-seat, oneniche software applications are also anxiously wondering how they fit in. Some “big thinkers” are prophesying the end of IT departments as we know them. It is more likely, however, that IT departments will continue but in a new, more strategic role. The CIO will become truly the “Chief Information Officer” as opposed to the Chief Information Technology Officer, signifying a shift in focus from the technology to its ultimate purpose. n Faisal Hoque is the founder and CEO of BTM Corporation.

CLOUD COMPUTING SPECIAL

event

Moving towards a Secure Environment Check Point Experience 2010 at Singapore presented customers and partners from the APAC region a guide to solving the security maze and tapping new opportunities PAYAL PRUTHI

h e c k Po i n t S o f t wa r e Technologies released new appliances designed to protect data and on-premise infrastructures from compromises and intrusions at it’s annual Check Point Experience (CPX) APAC 2010 event in Singapore. Amidst a gathering of over 600 people, including Check Point customers and partners from across the APAC region, the firm released the Check Point Series 80 Appliance targeted towards small businesses and branch offices. With this, the vendor has extended its blade software architecture on a box that delivers 1.5 gigabyte performance at a price of $2,500. The appliance features 10 gigabyte ports for controlling traffic in all branch offices or in the case of managed service providers, across multiple domains. New multi-domain software blades for virtual security management were also launched at the event. “The new blades enable businesses to segment their security management into virtual domains, while consolidating their hardware infrastructure. They allow for stronger and better security with the deployment of consistent global policies across all domains,” said Oded Gonda, Vice President of Network Security at Check Point Software Technologies. At the event, Gil Shwed, Chairman and Chief Executive Officer, Check Point Software Tecnologies, shared the financial results for the second quarter with the audience. “We experienced strong sales growth driven by 25% growth in product revenues. This enabled us to exceed our reve-

domain software blades which deliver virtual security management to businesses of all sizes while the series 80 appliance provides the same security and flexibility enjoyed by larger offices and enterprises to remote branch offices.” According to Naveen Hegde, Market Analyst for IDC’s Asia/Pacific Software Research Group, the new offerings from Check Point are not only cost effective and easy to manage but will also help mid-tier organisations to assure greater security and reliability. “One advantage for Check Point of building its own software will be tight integration with its own products which are easy to deploy and manage. Check Point has a strong customer base & loyal partners and it will exploit those relationships to roll out its new product offerings,” said Naveen. The event, which was attened by as

Gil Shwed, Chairman and Chief Executive Officer, Check Point Software Tecnologies nue projections and achieve the top-end of our earning per share projections. The growth in revenues came from all main product lines and geographies. Our record second quarter results were a nice conclusion to the first half of the year where we continued to execute and deliver top and bottom line growth while further expanding our product portfolio,” said Shwed. Shwed also shared Checkpoint’s strategy and vision towards more better and simpler security, followed by Gonda presenting the technological roadmap. Optimistic about many key areas of their business, Gonda said, “We see a huge potential with our new multi-

many as 80 customers and 60 partners from India, also provided an opportunity to the partners to network with customers and Check Point security experts. With key security and partner sessions spread over two days at CPX Expo, the partners were able to build their own agendas by selecting specific sessions to meet their needs. “We were able to review the new Check Point Endpoint Software Blades offering, their licensing, pricing and the associated migration program,” said Venkat Chandrasekar, Director JST and a Check Point partner. n payal.pruthi@9dot9.in

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AUGUST 2010

CLOUD COMPUTING SPECIAL

security

SECURING DATA in the

CLOUD

The shift to cloud computing provides a great opportunity to improve security AMIT NATH

he enterprise space is witnessing a new trend. Service providers are targeting secondary storage applications by promoting Storage as a Service (SaaS) as a convenient way to manage backups. The key advantage to SaaS in the enterprise is in cost savings—in skilled workforce, in hardware appliance and in physical storage space. Storage as a Service is being driven by economic factors, as well as runaway data growth, compliance requirements, security issues and disaster recovery mandates. This online storage is nothing but a cloud technology. Storage as a Service is generally seen as a good alternative for a small or midsized business that lacks the capital budget and/or technical manpower to implement and maintain their storage infrastructure. SaaS is also being promoted as a way for all businesses to mitigate risks in disaster recovery, provide long-term data retention and enhance business continuity. With the pricing of online storage declining, more and more businesses are tempted to embrace the benefits of having an online remote backup mechanism. With the growing popularity or

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acceptability, there also rises one major concern—whether enough attention is being paid at these services to data security or how secured are these services? Data breaches are a fact of life and many organisations with extremely sophisticated IT security practices have been affected by smart and sophisticated cyber criminals. It is naive to think that user-oriented data storage services might be somehow immune to cyber threats. The fact of the matter is that in today’s internet age, nothing is immune or invulnerable to attack. That is why it is important to secure these services with the right kind of technologies.

Convergence of cloud storage and security There is certainly concern for the security of data that resides in the cloud. In fact, the shift of IT to the cloud actually provides a significant opportunity to improve the way one does IT security. In the same way as the cloud is transforming IT deployment and management, it is transforming security as well. Therefore, far from being a security liability, the shift to the cloud is an opportunity to streamline, automate and strengthen IT security. Clearly, a trend is emerging: there is

AUGUST 2010

AMIT NATH

WITH THE PRICING OF ONLINE STORAGE DECLINING, MORE AND MORE BUSINESSES ARE TEMPTED TO EMBRACE THE BENEFITS OF HAVING AN ONLINE REMOTE BACKUP MECHANISM. Far from being a security liability, the shift to the cloud is an opportunity to streamline, automate and strengthen IT security.

going to be a convergence of cloud storage and the security mechanism. For progressive security companies, this could be game changing. For those unable to renounce their addiction to an aging licensing business model, it could be tough to survive in the highly competitive and demanding IT security market place. In the same way that the cloud is challenging software platform vendors and ISVs, the cloud is about to bring forth challenges for security firms as well. The security firms therefore have to scale up their offering in an intelligent manner. In the near future, the industry will witness that few of the progressive IT security firms will work closely or will enter into some sort of agreements with online storage and synchronization vendors. By doing so, the security vendors will integrate the web based services of the online storage vendors’ into their online security portfolio. The security players will bundle their offering and present it as a web-based backup and disaster recovery service for users and businesses. This will help the vendors to offer security from and for the cloud. In the days to come, as the enterprises continue to deploy virtualised machines and adopt cloud computing, they will need a single security solution that crosses physical, virtual, and cloud computing environments. n Amit Nath is Country Manager, India & SAARC, Trend Micro.