Building an Indian Cloud

DQ Channels inspects how some solution providers have developed their own cloud solutions and are making it a lucrative line of business

It's been nearly 5 years now that cloud was introduced in India meeting with much skepticism in its initial stages but later on picked up so well with both the tier 2 system integrators as well as clients that undoubtedly it became the key focus for both the vendors as well as the SIs.

Although the emergence of cloud initiated a debate between the cloud developers and the solution providers with the later pessimistic about cloud bringing the integration business to an end; the concept, however, was not withheld by the cloud developers. Instead, these developers urged the solution providers (SP) to gear up for the massive business prospect cloud was deemed to bring forth and upgrade their capabilities. However, although major developers like Vmware, HP, Brocade, Microsoft and their likes tried to develop their cloud business on the channels line, the SP community at first seemed unprepared as well hostile to the change. In that backdrop, since 2008, SPs have come a long way, with some of their lot braving to take up cloud as a feasible business alternative to services like desktop management, data centre deployments, managed services, SaaS and other relative concepts.

What has been evidently seen is that this space is dominated by the multi-nationals as these players have the strongest inventory as well as the RnD capacity. On the other hand, pure Indian developers (vendors) haven't met with any remarkable success stories on this front; even then cloud continues to acquire a larger than life perspective as vendors now vie for more space in their specialization areas.

Some of the very channel partners, from another perspective have also grown their business remarkably and some of these have even ventured outside India. It is majorly these players who have tried to play their cloud cards with a higher margin focus thereby developing cloud solutions on their own.

 

According to Quantm Net, one of the leading cloud players in India, worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 bn in 2014, representing a compound annual growth rate (CAGR) of 27.4%. This rapid growth rate is over five times the projected rate of growth for traditional IT products (5%). This research further illustrates that public IT cloud services are crossing the chasm with modest revenue, but very fast growth.

This very fact opens up an entirely rejuvenated and bifurcated business line for the traditional mode of solutions and integration and some major SPs are looking at it as the most beneficial of all business prospects.

Cloud is poised to play the most integral part of solutions business and SP, likewise have geared up to adopt the process of cloud integration. DQ Channels inspects how some major cloud players have garnered their business prospect and how cloud is going to emerge as a lucrative prospect for these companies.

DQ Channels takes a closer look at the country's top 3 cloud developers who has risen from their status as channel partners to integrators in their own capacity.

ALLIED DIGITAL

When it comes to having ‘own cloud', Allied Digital is perhaps one of the key names that comes into focus. For global players like Allied Digital, cloud services has been churning atleast Rs. 69 crores to its gross aggregated revenue since the last FY. The unique aspect 0for this company, however, was that it offered cloud-based services first in USA before coming up with the same offering in India.

According to Paresh Shah, Director, Allied Digital, the company first ventured into USA with the cloud offering just because the country seemed more adaptable to cloud computing than the Indian scenario. After registering 4 clients in USA with a Cloud Centre of Excellence in California, Allied Digital finally ventured into the Indian market targeting BFSI, manufacturing and retail as its potential clients.

Working solely over the private cloud model, Allied Digital has made an exception amidst global solution providers who are considering public cloud to be the future of computing.
For India, it has laid down a cloud-specific business plan hovering around forthcoming licences, tie-ups as well as enhancing its own cloud based service upgradation.
Not only did the company consider cloud as a mere business proposal which can be sold to its clients, but it went a step further and deployed an internal cloud solution too.
Allied Digital has already partnered with HP, Cicso, VMware, RedHat and some other for strengthening its cloud portfolio and may enter into new agreements soon. However, for the billing and support aspect of cloud, Allied Digital has its proprietary Integrated Delivery Services Platform which is soon to be upgraded to accommodate cloud in its functionary. At present, the Platform supports over 25 lakh stations globally.
With UK next into the radar, Allied Digital has already signed up with a partner for expanding its cloud services in that country. Besides, for its plans with cloud, Allied Digital will shortly be conducting an event with its potential client base to explain its cloud offerings and the relative benefits. Further, by the end of FY12, Allied Digital's Cloud CoE will be fully operational in Mumbai.

The company is built on the philosophy of ‘3S', namely Smart People, Smart Processes and Smart Technology providing for a strong foundation for a best-in-class Integrated Service Delivery Framework which consistently augments its overall value creation proposition to our clients.

OMNITECH

Another key player in the Indian cloud segment emerging from the very channels is Omnitech. Specific to its business strategy, Omnitech is aiming to position itself as a Cloud Integrator and has a separate unit ‘BTU' (Business Transformation Unit) which, according to the company will enable customers to work with its existing capabilities and take them on Cloud. Although revenue earnings for the company from cloud is not significant at present, Anurag Shah, COO & Head Global Operations is optimistic about the forthcoming opportunities and the gradual adaptability of cloud and is aiming for about 20% topline contribution in the next FY.

In its business plans, Omnitech is targeting both emerging Enterprises and large established Enterprises de-focusing on the SMB opportunity altogether. However, as of now, it has harnessed over the opportunities in the emerging Enterprises only.

From Omnitech's perspective, Cloud is one of the most efficient IT service delivery model where various service deliverables can be converged on a single platform to offer customer availability service levels at business function level. Shah sees this as a tipping point of technology convergence, aimed to create incredible value for customer and long lasting relationships. As a result, Omnitech is strongly focusing on launching new cloud services and is also planning to refine its current services bundled with cloud benefits.

As part of its cloud portfolio, the company has recently launched REVIVE, a Disaster Recovery as a Service (DRaaS) under its cloud offerings. This initial cloud service offers cost benefit in the range of 30% to 40% YoY over traditional DR model. Apart from cost benefits, it delivers all the value propositions that any cloud offerings would offer like pay-for-use, higher scalability and others.

Also, according to Shah, since the solution approach follows an analysis and customized delivery, there is no standard pricing for Omnitech's cloud offerings. However by using cloud technology, he said, companies are able to reduce their costs ranging from 30 - 40% based on the solution opted for.

QUANTM NET

QuantM has been the Solution Champ for Cloud solutions for 2011 and is undoubtedly the key player in the home-grown cloud segment. This necessarily, does not mean that the bulk of its revenue or services accounts for cloud solutions; instead only 16% of the aggregated turnover this FY has accounted from its cloud offerings. For Pawan Khurana, Director, QuantM Net, the company has opportunities in the cloud in various ways, whether through consulting, implementation or traditional reselling.

In terms of its cloud portfolio, it has private cloud solutions from its datacentre like ERP, BI, CRM and other business apps. It also hosts applications from its ISP partners and has 3rd party package services. However, it has its own cloud offerings like Business Continuity services in cloud, Back up as a service, IaaS, backed by on-demand DR as primary sources
For its strategy, the company will be tying up with Value-added developers, or VADs, and become a new breed of cloud solution providers to hit the market offering solutions that will make the cloud easier and make it do more. The majority of VADs are startups that offer some form of service to ease moving apps into the cloud or offering a different service around the cloud.
Some of the offerings envisaged are joint initiatives with some ISVs to roll out their applications on Qloud. On-premise enterprise software vendors will make a push for an off-premise cloud that would mimic the behavior of a private cloud.

According to Khurana, this will essentially be a packaging exercise to sell more on-premise software bundled with hardware on hosted model. This flavor of cloud will promise the cloud benefits delivered to a customer's door such as pre-configured settings, improved lifecycle, and black-box appliance.

QuantM has a dedicated Cloud team consisting, the system architects, delivery team, a dedicated marketing and sales team which is well integrated with the SI team of QuantM. QuantM has also invested in a dedicated facility for Qloud Computing by introducing India's first carrier neutral data center by a tier 2 SI. QuantM's new Data Center - Citadel, focused on cloud computing, will help its clients take full advantage of integrating cloud computing into their IT and business strategy.

For QuantM, cloud computing is critically important for two key reasons; market growth and leadership disruption. The cloud model will propel IT market growth and expansion for the next 20 years and will help the industry to more rapidly penetrate small and medium-sized businesses. As this happens, industry leadership ranks will certainly change. Additionally, with many CIOs planning for adopting cloud computing shows that IT customers are excited about the cost and agility advantages of cloud computing.

QuantM plans to leverage the fast developing cloud computing market that has the potential to create significant value for customers in terms of scale, flexibility, reducing time to market, environmental efficiency and given the economic climate, perhaps the most important feature of reduced capital expenditure.