Cloud Computing has been Hyped Ever since its Evolution by Amazon. But Inherent Contradictions in the Concept Threaten its Potential as the next big thing in The IT Services Space.
The sky has been overcast in the global technology world for quite some time now, as cloud computing has been persistently hailed by technology analysts as the next big thing to hit the global IT space, almost like the new normal. The scalability and elasticity of the concept is expected to drive massive adoption. Pioneered by Amazon with modernized data centres during the dot com bubble in the US, cloud computing was quickly sensed as an opportunity as it reduced tremendous cost; and ergo, Amazon came up with the Amazon Web Service (AWS) in 2006 with a utility computing base. Cloud computing in generic terms is based on the Internet, whereby software, services and information is provided on demand and pay per use basis. In general, the user does not own the physical infrastructure and rents it from a third party.
In early 2008, Eucalyptus became the first open source AWS API compatible platform for deploying private clouds. Technology research firm Gartner expects global cloud services revenues to touch $68.3 billion in 2010, a growth of 16.6% yoy. Steve Ballmer of Microsoft has gone on record to say cloud is the future for Microsoft. Similar expectations are being raised even from the folks in India. The Indian IT industry – cloud computing supporters tells us – is aggressively looking to tap into the trend and unleashing plans for fast paced growth. All major players are apparently modelling their service deliveries on the cloud. The current local market is estimated to be worth $110 million and the industry is quite optimistic to reach the levels $1.08 billion by 2015, with SAAS (Software as a Service) contributing $650 million, PAAS (Platform as a Service) and IAAS (Infrastructure as a Service) cumulatively contributing $434 million.
The sky has been overcast in the global technology world for quite some time now, as cloud computing has been persistently hailed by technology analysts as the next big thing to hit the global IT space, almost like the new normal. The scalability and elasticity of the concept is expected to drive massive adoption. Pioneered by Amazon with modernized data centres during the dot com bubble in the US, cloud computing was quickly sensed as an opportunity as it reduced tremendous cost; and ergo, Amazon came up with the Amazon Web Service (AWS) in 2006 with a utility computing base. Cloud computing in generic terms is based on the Internet, whereby software, services and information is provided on demand and pay per use basis. In general, the user does not own the physical infrastructure and rents it from a third party.
In early 2008, Eucalyptus became the first open source AWS API compatible platform for deploying private clouds. Technology research firm Gartner expects global cloud services revenues to touch $68.3 billion in 2010, a growth of 16.6% yoy. Steve Ballmer of Microsoft has gone on record to say cloud is the future for Microsoft. Similar expectations are being raised even from the folks in India. The Indian IT industry – cloud computing supporters tells us – is aggressively looking to tap into the trend and unleashing plans for fast paced growth. All major players are apparently modelling their service deliveries on the cloud. The current local market is estimated to be worth $110 million and the industry is quite optimistic to reach the levels $1.08 billion by 2015, with SAAS (Software as a Service) contributing $650 million, PAAS (Platform as a Service) and IAAS (Infrastructure as a Service) cumulatively contributing $434 million.
On the surface, it seems that cloud computing is all set to steamroll the data centre industry and make legacy systems obsolete. Scratch the surface, and the hype comes off immediately. The cloud, apparently, has some unresolved holes and the challenges seem to be much bigger than perceived expectations in India. The biggest hurdle for the cloud market to develop is the low bandwidth in India (infrastructure, here too!). Cloud requires a regular high speed internet connection and the average internet speed in India is 772 kbps compared to a global average speed of 1.5 mbps; India, for records, is ranked at the 115th position in the world in the 2009 Akami Technology’s report. The ongoing 3G auction would have been seen as a ray of hope, but the players would still require at least 10 years to be able to make a pan India presence.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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