1. Impact of Cloud Computing on the Software Industry Anand Deshpande November 2010

2. Personal History and Biases Founder and CEO of Persistent Systems. Established in 1990. Leader in outsourced software product development. We work with more than 250 Customers, 5000+ employees. Responsible for tracking Technology and for sales. Personally, track database technologies.

3. Cloud computing and mobile devices will transform the software industry.

4. What is driving the adoption of cloud computing? Economics.

5. What is driving the adoption of cloud computing? Economics. Illusion of infinite resources No up-front cost Fine-grained billing (e.g. hourly) Utility Computing: Pay-as-you-go computing promises substantially reduced cost.

6. We are grossly over-provisioned Capacity includes: Computer Servers Storage Software Licenses Network bandwidth Energy Air Conditioning Rent Maintenance Costs Operator Staff Capacity Resources Demand Static data center Time Unused resources Slide Credits: Berkeley RAD Lab

7. Heavy penalty for under-provisioning:Poor quality of service – lost customers. Resources Resources Resources Capacity Capacity Capacity Lost revenue Demand Demand Demand 2 3 2 3 2 3 1 1 1 Time (days) Time (days) Time (days) Lost users Slide Credits: Berkeley RAD Lab

8. Ideally, want optimal provisioning of capacity across all resources. Resources Capacity Capacity Resources Resources Demand Capacity Demand Data center in the cloud 2 3 1 Demand Time (days) Pay-per-use business models Time Time Static data center Slide Credits: Berkeley RAD Lab

9. What must the Cloud Provision for? “Growing Fast“ “On and Off “ Inactivity Period Compute Compute AverageUsage Usage Average Time Time On & off workloads (e.g. batch job) Over provisioned capacity is wasted Time to market can be cumbersome Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment “Unpredictable Bursting“ “Predictable Bursting“ Compute Compute AverageUsage Average Usage Time Time Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases Services with micro seasonality trends Peaks due to periodic increased demand IT complexity and wasted capacity Source: Microsoft

11. maintenance costs can be reduced up to 50 percent

12. support costs can be reduced by as much as 33 percent

13. floor space/facility costs can be reduced 33-50 percenthttp://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html

14. Cloud Computing: Why Now? Economic slowdown has accelerated the adoption of cloud computing.

15. Mobile Internet is getting mainstream Network: Roadmap for 3G/LTE/4G/WiFi/WiMax is getting established. Operating Systems: Android launch has been very impressive. iOS, Windows7 are viable contenders, cannot rule out Symbian. Devices: Price points for smart phones are getting affordable. Form factor: With the launch of the iPad and tablet form factors from Dell and Samsung, the tablet war has just begun. User Interface: Touch, motion and gestures

16. Expectations from the Mobile Internet Always on access with super fast boot time. Fast broadband speeds Near zero latency access to nearly all information More than day-long battery life Appropriate form factor Location based information Presence

17. The landscape is changing

18. Are you ready?

19. What does this mean for me?

20. Hardware IT Budgets Custom software IT Maintenance Software Products Total IT Costs Business Model Pay per use Consequences of the Cloud

21. Proliferation of AppStores and the pay-per-use business models for apps

22. Products will be consumed in ready-to-eat bite-sized portions

23. From the App Store Low per Unit Cost ZeroLoyalty Pay per Use Snap-in Snap-out

24. Innovation through Gandhian Engineering Getting more for less for more

25. India: the source and the market for innovation

26. Persistent: your trusted partner to help you get there now!

27. We welcome your comments: Anand Deshpande (anand@persistent.co.in) Persistent Systems November 2010