Transcript Cloud Computing, Applications, and Success Factors

The Future of
Outsourcing as a
Service (OaaS) in
the Overseas
Market
V. Wu, Ph.D.
CTO of CentLing Technologies Co. Ltd.
Agenda
 Introduction to Cloud Computing
 Current (China) Outsourcing Services in the Overseas Market
 What is Outsourcing as a Service (OaaS)
 Challenges facing Outsourcing as a Service (OaaS) in the
Overseas Market
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Introduction to
Cloud Computing
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Understanding Cloud Computing
IP
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Four Key Attributes of Cloud Computing
 Elasticity: Resources can be rapidly and elastically provisioned.
 Pay-By-Use: The use of cloud system resources is measured,
audited, and reported to the customer based on a metered system.
 Self Service: A client can provision computer resources without the
need for interaction with cloud service provider personnel.
 Broad Network Access: Access to resources in the cloud is available
over the network.
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Cloud Computing Service Models
SaaS
Presentation
mobility
Resources
Applications
PaaS
IaaS
Metadata
Data
Video
Voice
Embedded
Content
Integration and middleware
APIs
Core connectivity & delivery
PC
Web
Embedded
Native
Structured
Unstructured
Database
Identity
Messaging
Queuing
Management
Authentication
Security
TCP/IP
Grid/
Cluster
Images
VMM
Hardware
Compute
Network
Storage
Facilities
HVAC
Power
Space
Abstraction
Mobile
Various by vendor
APIs
Data
Infrastructure
Presentation
platform
Note: Definitions per U.S. NIST standards
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Infrastructure as a Service (IaaS)
 Infrastructure as a Service: IaaS provides virtual machines, virtual
storage, virtual infrastructure, and hardware assets as resources to
clients. Client manages all other aspects of the deployment including
applications and user interactions with system.
IT
Operating System
Processor
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Memory
Storage
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IaaS
Platform as a Service (PaaS)
 Platform as a Service: PaaS provides virtual machines, OS,
applications, services, deployment frameworks, transactions, and
control structures. Client can deploy its applications on the Cloud or
use applications that were programmed using languages and tools
that are supported by PaaS.
Dev.
Runtime
API
Web Server
Operating System
Processor
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Memory
Storage
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PaaS
Software as a Service (SaaS)
 Software as a Service: SaaS is a complete operating environment
with applications, management, and the user interface. In SaaS, the
application is provided to the client through a thin client interface,
and the customer’s responsibility begins and ends with entering and
managing its data and user interaction. Everything from the
application down to the infrastructure is the vendor’s responsibility.
Web UI Web App. Web Service
Consumer
Runtime
API
Web Server
Operating System
Processor
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Memory
Storage
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SaaS
Cloud Computing Deployment Models
 Four deployment models: Public, Private, Hybrid, Community
Deployment
models
Community
Service
models
Infrastructure as
a Service (IaaS)
Service
attributes
Hybrid
Private
Platform as
a Service (PaaS)
Public
Software as
a Service (SaaS)
Resource pooling
Elasticity
Pay-By-Use
Self-Service
Note: Definitions per U.S. NIST standards
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Broad Network Access
Current (China)
Outsourcing Services
in the Overseas Market
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Top 10 risks of Offshore Outsourcing
 Cost-Reduction Expectations
 Data Security/Protection (ISO 27001)
 Process Discipline (CMMI)
 Loss of Business Knowledge
 Vendor Failure to Deliver
 Scope Creep
 Government Regulation – US Patriot & Sarbanes-Oxley Acts
 Culture Difference
 Turnover of Key Personnel
 Knowledge Transfer
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Comparison between India and China Outsourcing
Aspects
Education (Qualifications)
English Communication
Data Security
Geographic Advantage
Price
Stability (Workforce)
Trust
India
+
+
+
=
_
_
+
China
+
__
_
=
+
+
_
Note: More than 82% American companies prefer to outsource to India
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What is
Outsourcing as a
Service (OaaS)
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Push to initiate OaaS Offering
 Overseas market reverses the trend from Outsourcing to Insourcing
through taxes incentives
 One third of U.S. executives considered moving work back to U.S.
 Latest development: Apple Inc. to move some productions back
to U.S. in 2013
 Economic differentials encourages moving work closer home
 Manufactures moving to Mexico to take advantages of lower
wages and favorable currency exchanges (peso vs. dollar)
 “Cloud Computing is threatening the business model of IT
outsourcing industry” according to Infosys Chief Executive.
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Comparison between India and Other Emerging Countries
Aspects
English Communication
Geographic Advantage
Price
Culture
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India Philipines
-
+
=
=
=
=
-
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Mexico
+
+
+
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The Birth of Outsourcing as a Service (OaaS)
 OaaS applies both to Business Process Outsourcing (BPO) as well as
Knowledge Process Outsourcing (KPO)
 OaaS applies both to Small and Medium-sized Business (SMB) as
well as large-sized business.
Cloud
Computin
g
Platform
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+
Outsourcing
Service
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Challenges facing
Outsourcing as a
Service (OaaS)
in the Overseas Market
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Challenges Offering OaaS Overseas
 Lack of OaaS development experience in the local market
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A Total Paradigm Shift of adopting Cloud Computing
 The acceptance of cloud computing is a paradigm shift from
“purchasing a product” to “leasing a service”.
Cloud Computing Business Model = Computing as a Service
Acceptance of Cloud
In US Market
Acceptance of Cloud
In China Market
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Top Ten Adopters of Cloud Computing in U.S.
 Messaging and team collaboration applications
 Cross enterprise integration projects
 Infrastructure consolidation, server, and desktop virtualization efforts
 Web 2.0 and social strategy companies
 Web content delivery services
 Data analytics and computation
 Mobility applications for the enterprise
 Customer Relationship Management (CRM) applications
 Experimental deployments, test bed labs, and development efforts
 Backup and archival storage
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Some Market Usages of Cloud Computing in U.S.
 Handling streaming traffic - TV Show and Movies Streaming (Netflix)
 Handling spiking traffic – social gaming (Zynga)
 Performing overnight data analysis – online market service (Etsy)
 Trained machine - learning algorithms – develop advanced
cybersecurity system (Northrop Grumman Information Systems)
 Reengineering a legacy central reservation system – revamping a
hotel application system (InterContinental Hotels Group)
 Prototyping a service to monitor nonemergency 311 requests – Miami
city
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Challenges Offering OaaS Overseas (cont.)
 Lack of OaaS development experience in the local market
 Lack of strategic preparations and commitment to compete overseas
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Key Factors to be successful Overseas
 Strong Management & Sponsorship
 Hire local representatives to set liaison with local companies
 Have local managers representing each project or contract
 Actively seek out business opportunities
 Offshore Experience and Readiness
 Team can communicate well with customers
 Quality Assurance – lack of branding in the overseas market
 Onshore-Offshore Ratio (20-80 or 10-90 Ratio)
 Established local branches overseas
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In Conclusion
 Invest in Cloud Computing Technologies locally
 Have a good strategic plan to set footprints in overseas locations
 Technical Expansion doesn’t stop here - Invest in other technologies
besides Cloud Computing (CC) such as Software Defined Network
(SDN) and Big Data (BD)
CC
SDN
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BD
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