Cloud Computing , SaaS and Prospects

Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure in the "cloud" that supports them.

The concept generally incorporates combinations of the following:
* infrastructure as a service (IaaS)
* platform as a service (PaaS)
* software as a service (SaaS)
* Other recent (ca. 2007–09) technologies that rely on the Internet to satisfy the computing needs of users.

Cloud computing services often provide common business applications online that are accessed from a web browser, while the software and data are stored on the servers.

The term cloud is used as a metaphor for the Internet, based on how the Internet is depicted in computer network diagrams and is an abstraction for the complex infrastructure it conceals.

Cloud computing users can avoid capital expenditure (CapEx) on hardware, software, and services when they pay a provider only for what they use. Consumption is usually billed on a utility (e.g. resources consumed, like electricity) or subscription (e.g. time based, like a newspaper) basis with little or no upfront cost. (from wikipedia)

Late 2008, market research group IDC surveyed IT professionals and concluded that 4% of enterprises already have implemented some form of cloud computing, although it's often in the form of software as a service (SaaS). That number will more than double by 2012, to 9% of enterprises, said Frank Gens, senior VP of IDC, as he opened the Cloud Computing Forum in San Francisco

Impact of cloud computing will far exceed those modest figures, he added. Applications designed to run in the cloud "will represent 25% of the net new growth in IT spending," versus spending for on-premises IT, he predicted. SaaS by itself is projected to nearly double from $9 billion to $17 billion in that time period, Gens said.

Joseph Tobolski, director of cloud computing at Accenture's Technology Labs, pointed out that "Achieving a 5% to 9% adoption rate through 2012 might be understating it", He said Accenture's cloud consulting services are growing, and it's even produced an enterprise service bus to make it easier for its clients to link their data centers to cloud services. IT managers should be trying to make their internal operations function more as an enterprise cloud. (from InformationWeek)

In current an uncertain economy, An AMI-Partners survey finds SMB are focusing more on software as a service (SAAS) and managed services solutions as IT budgets tighten.
The study’s focus was to analyze how the economy is impacting SMBs’ perceptions, usage and purchasing behaviors related to IT. Among key changes identified in the study was the drastic increase of SMBs worldwide now showing strong interest in managed services and SAAS and dramatic increases in midmarket companies’ plans to outsource specific IT needs such as storage, security and telecommunications.

The study, released this summer, found that most SMBs feel the economy is starting to stabilize, however, businesses are still seeking ways to significantly reduce costs and increase revenues. This includes exploring IT products and services that can directly and immediately help ease exaggerated pain points like restricted cash flow and limited access to credit. “Solutions like SAAS and managed services offer flexible payment options and usage-based models that are very attractive to SMBs right now, as they struggle to overcome the credit crunch and very tight IT budgets,” said AMI Vice President of Marketing Chad Thompson. (from eWeek)

A SaaS Summit 2009, organized in Bangalore has also echoed & presented the trends of SaaS adoption in the current uncertain economy.

"SaaS is the new reality, which enterprises are facing," said M S Krishnan, professor of Business Information Technology at the Ross School of Business, University of Michigan.

"Recession has taught a lesson for restructuring of businesses as the market becomes more and more competing and giving way for newer technologies like SaaS. The social demand for these models have increased which are going to transform the business models," he added.

Balka Baruah Aggarwal, Manager, Syndicated Research, Springboard Research said IT department in enterprises have begun to move to the back-end and the focus is turning on the large scale business goals.

"IT has become the secondary focus," she said. "SaaS plays a vital role in this fundamental shift of enterprises looking at their technology investments, as it allows them to keep the focus on their business without worrying about the technology as well as successfully tweaks into your business process."

The event witnessed the delivery of ERP on a SaaS model as the emerging trend. With no initial investment costs, affordable pricing models as well as flexibility to customization, ERP on SaaS was seen as the next innovative technology by the speakers of the Summit.

Highlighting as an example, A vice president from Indian metal products compay, said, "One of our purposes is not to have any IT team in our company, that is why we went for a web-hosted ERP model. We also realized that the model can be quickly implemented and also scale our future requirements without any huge investments." (from CIOL)

Resources

Grid Asia - 2009

Basic Introduction to Cloud Computing Applications & Systems

Developing a Cloud Ecosystem in Singapore - Singapore IDA's Approach

Cloud computing - WIKIPEDIA

Cloud Implementation To Double By 2012 - InformationWeek

Economy Ignites Interest in Managed Services and SAAS - eWeek

SaaS gaining grounds in downturn - CIOL

Getting Startedwith Cloud Computing - Sun