Cloud Computing as a New Outsourcing Tool

Seminar Presentation

Group 3 – Section A

Abhishek Singh PGP/16/003

Deepak Kumar PGP/16/016

Madhumita Patnaik PGP/16/027

Murali Krishna D PGP/16/032

Rohit Singla PGP/16/043

Shashank Shekhar PGP/16/045

Agenda

• Introduction

• Terminology

• Models

• Outsourcing

• Benefits

• Current Practices

• Challenges

Introduction

Name comes from the use of a cloud shaped symbol as an abstraction for the complex infrastructure it contains

Storage and network infrastructure used to store and process data and applications is shared amongst users;

Cloud service provider is able to move the data between locations in order to make best use of latent capacity in its infrastructure

Access via Web Browser

A Simple Model

Terminologies

Different Models

Cloud Deployment Models

Impact and Benefits

• Focus on core competency• Reliability• Reduced Cost• Scalability• Faster Implementation• Pay for Use• Productivity improvements

– Increased output per unit of cost

• Innovation– Ability to deliver new and evolving products

Outsourcing Trends

Impact of Global economic crisis

87 per cent of customers cited cost reduction as the motivating factor for outsourcing

62 per cent of suppliers expressed a view that the global financial crisis had resulted in harder price negotiations

66 per cent of customers – and 61 per cent of suppliers – thought that due diligence processes had tightened in the last two years

Case Study : Impact of Cloud Computing

• ArcLight Investments – an ICT related services provider• Utilised cloud based solution for their business which

helped them to reach over 7000 customers through 1000 offices

Benefits:– IT infrastructure investment has reduced– The process of adding, changing and deleting user

accounts has become significantly easier– Reduced General network and IT failures– Increased level of Automation in the business– Better collaboration thus producing uniformity in the

work

Case Study : Impact of Cloud Computing

• Challenges

– Legacy applications difficult to migrate to a cloud

– Confidential data like credit card details of the customers needs to be encrypted before being migrated to the cloud

– A cultural shift was necessary in the manner in which the employees operated

Cloud Outsourcing Risks

Challenges and concerns for the future

• Security and Privacy

• Interoperability and Portability

• Reliability and Availability

• Performance and Bandwidth Cost

• Service Delivery and Billing

• Acquiring knowledge and expertise

• Certifying and accrediting vendors

References

• http://www.nortonrose.com/files/a-smart-approach-to-sourcing-ii-57727.pdf

• http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Documents/modelling-economic-impact-cloud-computing.pdf