IT transformations - Capgemini Consulting Nederland

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interest in these services is driving increased enterprise spending, and as a result, cloud computing presents an attractive revenue potential for technology players and telcos alike. While the benefits of cloud computing make it attractive for customers, concerns such as data security, privacy, and compliance have slowed down the pace of adoption. For instance, strict privacy laws that place limits on the movement of information beyond the borders of the European Union, have hindered the evolution of cloud computing in Europe. After carefully weighing the benefits and risks of cloud computing, several operators have advanced into this lucrative market. However, the key challenge ahead for these operators is to differentiate themselves in this highly competitive arena. In this chapter, we take a close look at the cloud computing space, qualify the opportunity for telcos, and propose some recommendations around how operators can maximize the opportunity in this market. Market Dynamics Worldwide IT cloud services revenues are expected to grow rapidly at a CAGR 11 of 26% from 2009 to 2013 to reach US$44.2 billion. While SaaS will continue to contribute the highest to the overall revenue, its share is expected to decline, largely due to an increased enterprise focus on IaaS (see Figure 2). The rapid growth of IaaS will be fuelled by a keen interest from businesses on curbing the huge costs associated with IT infrastructure. “ Given the revenue potential, telcos should not delay their entry in the cloud computing space ” Figure 2: Worldwide IT Cloud Services Revenue (US$Bn) and Growth Rate by Service Type 21% 10% 69% $17.4 billion 3.7 1.7 12.0 Infrastructure as a Service 37% 35% 21% 2009 2013 Platform as a Service x% CAGR $44.2 billion 12.8 5.8 25.6 29% 13% 58% Software as a Service Source: Capgemini TME Strategy Lab Analysis; Forrester Research; Cloud Computing 2010, An IDC Update, September 2009 11 Compound Annual Growth Rate. 21
Figure 3: Stakeholders in the Cloud Computing Ecosystem Figure 4: Enterprise Cloud Offerings of Select Vendors Examples Cloud Enablers ■ Provide the technology, infrastructure, platforms, and middleware to enable the provision of cloud services Source: Capgemini TME Strategy Lab Analysis Oracle on Demand Cisco Webex Salesforce CRM IBM Lotus Live Salesforce Force.com Google App Engine Microsoft Azure Amazon Web Services BT Orange Business Services AT&T GoGrid Rackspace EMC MozyEnterprise Nirvanix CloudNAS Software (SaaS) Cloud Service Vendors (CSVs) ■ Provide the actual cloud services, spanning SaaS, PaaS and IaaS, to customers Application Development Platform (PaaS) Source: Capgemini TME Strategy Lab Analysis; Company Websites Service Providers ■ Provide cloud focused business consulting, and technology services such as system integration, cloud migration, and maintenance Infrastructure as a Service (IaaS) Servers Storage Several companies are competing aggressively to grab the largest share of the lucrative cloud computing market. These players fall largely under one of these three categories: enablers, vendors, or service providers (see Figure 3). The role of some mature players, however, can also span a number of categories. For instance, both Cisco and IBM are cloud enablers as well as CSVs 12 . Leading technology vendors such as Amazon, Salesforce.com and Microsoft have established a firm footing in this market and offer a range of services spanning SaaS, PaaS, and IaaS (see Figure 4). In terms of revenues, the current CSV landscape is dominated by players such as Salesforce.com, Amazon, and Oracle. Salesforce.com, the leading provider of SaaS CRM 13 solutions, reported revenues of over US$1billion 14 in 2009, which is the highest amongst CSVs. The success of these leaders can be attributed to their technical prowess, early mover advantage, and the strong focus on cloud computing. Though large technology players have emerged as leaders in cloud computing, several smaller companies such as Rackspace and Netsuite are trying to carve their niche. Telcos such as BT and AT&T have also entered this market. In the next section, we will evaluate the cloud computing initiatives and strategies of telcos. Telco Activity in Cloud Computing Compared to market leaders such as Amazon and Salesforce.com, telco entry into cloud computing has been reasonably late. While Salesforce. com started offering services in 1999, BT and T-Systems, one of the earliest telcos to offer cloud solutions, entered 12 Cloud Service Vendors. 13 Customer Relationship Management. 14 Company Websites; Annual Report. 22
Page 1: volume 9: Spring/Summer.11 Capgemin
Page 5 and 6: Editorial Welcome to the Spring/Sum
Page 7 and 8: Digital Renewal: Addressing Transfo
Page 9 and 10: Figure 2: Digital Renewal Approach
Page 11 and 12: “ Several operators are exploring
Page 13 and 14: Mobile network traffic in Western E
Page 15 and 16: help them save costs, but will also
Page 17: Cloud Computing: The Telco Opportun
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Page 23 and 24: Hosting on Demand Telcos are alread
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Page 27 and 28: Figure 11: Summary of Cloud Strateg
Page 29 and 30: Beyond Communications: Identifying
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Page 39 and 40: Figure 10: Telco Evolution as Servi
Page 41 and 42: Long Term Evolution LTE Opportuniti
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Page 45 and 46: “ LTE offers the most efficient,
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Page 67 and 68: Figure 4: Overview of Digital Conte
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Paid content may be subscription or
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“ Content providers need to focus
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Innovating the Telco Business Model
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Figure 2: Actions taken by Telcos o
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Figure 3: Trends Impacting Business
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Figure 4: Mobile Service Revenue Gr
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Strategy Bottlenecks by Michael G.
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are not active in are “contestabl
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Figure 3: Evolving Bottlenecks in t
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“ Companies should strive to make
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lite BYTES Some vignettes and trend
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“ Successful IT transformation en
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IT transformations - Capgemini Consulting Nederland

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