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		<title>Cloud computing biz may touch $1 bn in 5 years</title>
		<link>http://managedcloudservices.wordpress.com/2010/06/25/79/</link>
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		<pubDate>Fri, 25 Jun 2010 17:30:50 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[India’s cloud computing market will be worth around $1 billion over the next five years, from nearly $110 million currently, according to reasearch firn Zinnov Management Consulting. Software-as-a-service (SaaS), a part of the cloud computing market, will touch $650 million &#8230; <a href="http://managedcloudservices.wordpress.com/2010/06/25/79/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=79&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>India’s cloud computing market will be worth around $1 billion over the next five years, from nearly $110 million currently, according to reasearch firn Zinnov Management Consulting. Software-as-a-service (SaaS), a part of the cloud computing market, will touch $650 million in revenues by 2015, the research firm said.</p>
<p>“This is indeed a perfect storm. The only difference is that, this storm is destructive only to companies which are not willing to change, while it is a huge opportunity for others,” said Pari Natarajan, CEO of Zinnov. Further, according to a study by another research firm Gartner, global cloud services revenue is expected to reach $148.8 billion by 2014. The cloud computing market is expected to grow by 16.6% to achieve revenues of $68.3 billion in 2010 and reach $148.8 billion by 2014 from $58.6 billion in 2009, Gartner said in a statement.</p>
<p>“We are seeing an acceleration in adoption of cloud computing and cloud services. The scale of deployments is growing; multi-thousand-seat deals are increasingly common,” Gartner Research vice-president Ben Pring said. While the US had a 60% share of the worldwide cloud services market in 2009, it is expected to decrease to 50% by 2014 as other countries begin to adopt cloud services, it said.</p>
<p>Western Europe is expected to account for 23.8% of the cloud services market in 2010 and Japan will represent 10%. In 2014, the UK is forecast to account for 29% of the market, it said.</p>
<p>Cloud refers to a computer network or internet, depending on how a particular service is being delivered. Computing through cloud, or delivery of software business applications through a given network allows customers and users to use a service without owning any hardware infrastructure or software licences.</p>
<p>For instance, a large company with around 1,000 users can bring down its investments in an enterprise resource planning (ERP) project by asking a service provider to host the ERP application and charge a monthly fee based on the number of transactions per user. So every time a payroll transaction is processed, an invoice is raised.</p>
<p>Globally, customers such as Royal Philips Electronics, Daily Telegraph and Maersk are already running pilot cloud computing projects. According to research firm IDC, cloud services will represent around 10% of all IT spending by 2013, or $44.2 billion opportunity globally.</p>
<p>Financial services and manufacturing industries are the largest adopters of cloud services, having got on the bandwagon early.</p>
<p>Communications and technology industries are also leveraging cloud computing in significant volumes and the public sector has begun to explore the potential of cloud services.</p>
<p>However, security, availability of service, vendor viability and maturity of technology remain some of the concerns.</p>
<p><strong>Source: Google News</strong><!-- google_ad_section_end --></p>
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		<title>Public Vs. Private Vs. Hybrid</title>
		<link>http://managedcloudservices.wordpress.com/2010/06/14/public-vs-private-vs-hybrid/</link>
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		<pubDate>Mon, 14 Jun 2010 16:44:04 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[As if cloud computing weren’t a hard enough concept to grasp, there are gradations emerging that make the concept even more complicated. Relax. It’s a natural evolution, as the capabilities behind the cloud concept become more explicit. What’s important is &#8230; <a href="http://managedcloudservices.wordpress.com/2010/06/14/public-vs-private-vs-hybrid/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=70&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>As if cloud computing weren’t a hard enough concept to grasp, there are gradations emerging that make the concept even more complicated. Relax. It’s a natural evolution, as the capabilities behind the cloud concept become more explicit. What’s important is to realize the potential and start planning for it.</p>
<p>Public cloud computing offerings are those you with which you are most likely already familiar. Applications delivered over the Internet in the software-as-a-service model, and computing resources such as storage or compute cycles delivered in the infrastructure-as-a-service model, are the most common forms of public cloud computing.</p>
<p>A private cloud, also known as a corporate cloud, uses cloud-like infrastructure and technology, such as virtualized servers in a scalable architecture, to run applications behind the corporate firewall.</p>
<p>A hybrid model takes advantages of both of these types of structures. An organization may choose, for example, to run its e-mail system in the public cloud while keeping highly sensitive, customer-oriented applications behind the firewall.</p>
<p>What model you choose may depend on several factors: size of organization, IT resources, time to market (speed of implementation), security requirements. For instance, SaaS in the public cloud provides organizations with limited resources a way to implement a needed application quickly and with low upfront costs. A private cloud, on the other hand, requires significant initial investment but offers behind-the-firewall security assurance.</p>
<p>Organizations of all sizes make use of infrastructure-as-a-service resources to boost capacity or support new systems. But are they making the best use of cloud computing’s potential? Not according to Doug Hauger, general manager of Microsoft’s cloud infrastructure group, as quoted in a recent <em>InformationWeek</em> <a href="http://www.informationweek.com/news/windows/showArticle.jhtml;jsessionid=REUBWDEZAY5VDQE1GHPSKHWATMY32JVN?articleID=224700247">article</a>. “If you’ve got a hairball in your data center, and you move that hairball to an infrastructure-as-a-service, and you don’t rework it, it’s still just a hairball,” Hauger said.</p>
<p>Which brings us to another important point: writing applications optimized for the cloud computing architecture. That’s where platform-as-a-service comes in. Oh, I didn’t mention that there’s another form of cloud computing coming to the fore? Relax. The more the merrier, right?</p>
<p><strong>Source: Google News</strong></p>
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		<title>Managed Services-The Cost Effective Model for Enterprises</title>
		<link>http://managedcloudservices.wordpress.com/2010/06/03/managed-services-the-cost-effective-model-for-enterprises/</link>
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		<pubDate>Thu, 03 Jun 2010 16:38:12 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[The managed services market in India is in a growth spree, and the future too looks great. In fact, IDC&#8217;s India Managed Services 2008-2012 Forecast and Analysis reported that the Indian domestic managed IT services market is expected to grow &#8230; <a href="http://managedcloudservices.wordpress.com/2010/06/03/managed-services-the-cost-effective-model-for-enterprises/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=66&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>The managed services market in India is in a growth spree, and the future too looks great. In fact, IDC&#8217;s India Managed Services 2008-2012 Forecast and Analysis reported that the Indian domestic managed IT services market is expected to grow at a compound annual growth rate (CAGR) of 24.9%, to reach a US$2.78 billion industry in 2010. The Indian Managed Services market will become one of the fastest growing markets in the Asia/Pacific region.</p>
<p>Current Trends In the Managed Services Market</p>
<p>The worldwide recession and the competitive market have made the companies realize the importance of making the optimum use of their IT infrastructure and finding innovative ways to cut cost. In addition, as the companies grow, they have to deploy complex applications to function efficiently; and deployment of such applications leads to issues like security, business continuity, disaster recovery, controlling and monitoring etc. In midst of all these companies also have to ensure that they provide quality services to their users. The Managed Services providers (MSPs) have come as blessing for the companies to take care of all the above mentioned issues and problems.</p>
<p>The Indian managed services market is huge and is expected to grow at a tremendous pace. Some of the current trends in the Indian market are:</p>
<ul>
<li>Managed Application Services: It has gained prominence as applications have become more complex and mission critical; as a result proactive and 24&#215;7 monitoring of applications for performance, capacity and availability have become extremely important.</li>
<li>Integrated Application Support Services: It involves all the end-to-end application support, and different lines of support services.</li>
<li>Application Maintenance Support Services: It includes end user support, code maintenance and bug fixation, data conversion and migration, specialized reports, application interfacing, integration etc.  </li>
<li><a href="http://voicendata.ciol.com/content/bporbit/107020702.asp">Managed Security Services</a>: All the companies have become extremely security conscious but instead of hiring people on their own, they seem to prefer to outsource to the security management services providers who are clearly the domain experts.</li>
<li>Managed Load Balancing Services: Major Telecom and IT companies are slowly outsourcing their load balancing (which ensures that the work is equally divided between the servers) services.</li>
<li>Managed <a href="http://voicendata.ciol.com/content/news/110051103.asp">VoIP</a> Services: Many companies prefer to outsource the deployment and maintenance their new VoIP solution, as well as the maintenance of their existing telephony solutions.</li>
<li>Managed <a href="http://voicendata.ciol.com/content/service_provider/210010401.asp">Data Center</a> Services: It involves the management of servers, storage and network services of companies. It also covers all IT infrastructure components of the data center including virtualization, automation and integration.</li>
<li>Managed Storage and Backup Services: It involves all backup of the applications and data, and different storage requirements of the companies.</li>
<li>Infrastructure Support Services: It includes operating system management, hot fixes and security patches, disaster recovery planning, testing and verification, security management end user support etc.</li>
</ul>
<p>The Growth Drivers &amp; Vendor&#8217;s Contribution</p>
<p>A major driver is the management of applications which have increasingly become very complex as well mission critical for the success of the companies. In addition, network and infrastructure management are also driving the growth as these involves time, expense and expertise. In addition, lack of in-house skills, high investment but late ROI, reliance on domain specific expertise, the need to make optimum usage of existing network and infrastructure and other such similar issues are fuelling the growth of the Indian Managed Services market.</p>
<p>The vendors have large largely contributed to this growth as they have been able to convince the companies that the managed services are cost effective and involves low risks. The vendors have been to convince their customer base that the managed services are a safe bet for their growth as well as for regular operations.</p>
<p>Source: <a href="http://voicendata.ciol.com/content/ContributoryArticles/110060101.asp">http://voicendata.ciol.com/content/ContributoryArticles/110060101.asp</a></p>
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		<title>India to lead world in cloud computing: Ballmer</title>
		<link>http://managedcloudservices.wordpress.com/2010/05/31/india-to-lead-world-in-cloud-computing-ballmer/</link>
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		<pubDate>Mon, 31 May 2010 17:35:18 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[Microsoft Corp sees India as the global hub for cloud computing, the concept of renting computing power that has taken the technology world by storm and in the words of the NYT, what Silicon Valley cannot seem to get its &#8230; <a href="http://managedcloudservices.wordpress.com/2010/05/31/india-to-lead-world-in-cloud-computing-ballmer/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=64&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Microsoft Corp sees India as the global hub for cloud computing, the concept of renting computing power that has taken the technology world by storm and in the words of the NYT, what Silicon Valley cannot seem to get its head out of.</p>
<p>“India will not only see a surge in cloud computing services but companies all over the world will look to India to support their transition to cloud computing,’’ Microsoft CEO Steve Ballmer said on Thursday.</p>
<p>The world’s biggest software maker is among a handful of companies betting big on cloud services, aiming to convince enterprises to give up building and managing data centres and switch to their computer capacity instead; the others being rivals such as Amazon, Google and AT&amp;T as well as smaller firms like Rackspace and Terremark.</p>
<p>Microsoft believes India will move directly to the cloud, much like it bypassed the landline revolution that never happened and leapt to mobile phones, Mr Ballmer told a packed press meet. Mr Ballmer is in India to underline the importance of the company’s cloud services platform Azure, wherein people can use applications from email to payroll systems hosted online.</p>
<p>The transition that India will champion will seed 3 lakh jobs in five years, during which the business is estimated to grow to $70 billion, Microsoft said, quoting a study by Zinnov Management Consulting. Jobs will be generated in areas like cloud consulting, enabling software as a service, integrating offerings like Azure with IBM’s Blue Cloud or salesforce.com’s customer applications on cloud, and creating new applications.</p>
<p>For Indian businesses too, there is great potential, given that 30%, or $7 billion, of the global cloud computing work is to be offshored, said the Zinnov study.</p>
<p>Microsoft already has more than 600 customers for its cloud services, but wants a deeper head start over rivals after catcalls of playing catch-up in other tech fields have been growing louder by the day. Indeed, Mr Ballmer was speaking to reporters a day after Apple overtook his company as the world’s biggest technology firm in terms of market value, more than a decade after he took over its reins.</p>
<p>The company is, therefore, sparing no efforts in making its cloud computing push a success in India, a market that is “developing very nicely”, where “piracy is reducing and intellectual property protection is better than in China”. Mr Ballmer also noted that India is among the top five or six countries in terms of talent and market potential.</p>
<p>Microsoft said cloud is important in India as it is a catalyst for IT adoption. “We are successful at exporting IT services and talent. But when it comes to using technology domestically, we are quite poor,’’ said Microsoft India chairman Ravi Venkatesan.</p>
<p>There isn’t much use of computers and technology in schools, homes, government offices or by the more than 4 million small and medium businesses.</p>
<p>Source: <a href="http://economictimes.indiatimes.com/infotech/software/India-to-lead-world-in-cloud-computing-Ballmer/articleshow/5983079.cms">http://economictimes.indiatimes.com/infotech/software/India-to-lead-world-in-cloud-computing-Ballmer/articleshow/5983079.cms</a></p>
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		<title>Cloud to give channel a shake-up: IDC</title>
		<link>http://managedcloudservices.wordpress.com/2010/05/21/cloud-to-give-channel-a-shake-up-idc/</link>
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		<pubDate>Fri, 21 May 2010 16:30:04 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[IDC says the cloud will have immediate impacts on the channel partner business model, bringing opportunities in public cloud resale, a requirement to build new skills and longer-term returns on partner investment. The analyst firm says reselling public cloud services &#8230; <a href="http://managedcloudservices.wordpress.com/2010/05/21/cloud-to-give-channel-a-shake-up-idc/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=62&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>IDC says the cloud will have immediate impacts on the channel partner business model, bringing opportunities in public cloud resale, a requirement to build new skills and longer-term returns on partner investment.</p>
<p>The analyst firm says reselling public cloud services will require a “fundamental transformation” in partners’ business model because ongoing customer relationships are needed with customers to drive monthly subscription renewals for such services. It says this is a “drastic change” from the transactional approach adopted among value-added resellers currently.</p>
<p>Among the skills partners will need to develop to assist customer implementing cloud technology services are strategy consulting, application architectures and migration tools and services. Such a delivery services capability is larger than that required under a simple resale model, it says.</p>
<p>IDC says partners will have to invest strategically in the cloud, because annuity revenue will push partners’ return on investment out to two or three years, rather than six to twelve months for traditional ICT products.</p>
<p>&#8220;We believe that the cloud will accelerate a trend that has been emerging in the market for some time: channels have to move away from just &#8216;clipping a ticket&#8217; as they resell a product or service and getting a referral fee as a result.</p>
<p>“Channel partners who just view cloud services as another SKU to resell will struggle. They will have to recognise that the cloud provides an opportunity to bring more to the table,&#8221; says Philip Carter, IDC’s research director for the IT services, application software, channels, green IT and sustainability practice group.</p>
<p>According to IDC&#8217;s Asia/Pacific 2009 IT Services survey across 10 countries in the Asia/Pacific region, 75 percent of the 1135 IT executives interviewed indicated they had a relationship with a local vendor, and satisfaction levels compared favourably against managed services and cloud vendors and telecommunications providers.</p>
<p>By 2013, IDC expects public cloud services spending to make up 10 percent of total Asia Pacific ICT spend. Until then, the compound annual growth rate for cloud spending is expected to be four times greater than on-premise and traditional IT in the region.</p>
<p>&#8220;The financial benefits inherent to the &#8216;everything-as-a-service&#8217; model is driving a shift in buying behavior as capital constrained CIOs look at different options in terms of getting access to ICT resources without having to pay for them upfront,” says cloud technologies and services practice group research director Chris Morris.</p>
<p>Across both vendor and channel ecosystems, key aspects of existing commercial agreements will change as the market develops, says IDC. It says companies that are able to adapt quickly and work out a flexible working arrangement based on mutual trust will most likely exploit the emerging opportunities from this market transition.</p>
<p><strong>Source : Google News</strong><!-- multiple pages start--><!-- multiple pages finished--></p>
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		<title>&#8216;In the next 10-20 years, very few companies will own data centres&#8217;</title>
		<link>http://managedcloudservices.wordpress.com/2010/05/06/in-the-next-10-20-years-very-few-companies-will-own-data-centres/</link>
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		<pubDate>Thu, 06 May 2010 11:35:01 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[One of the earliest proponents of Cloud Computing Amazon Web Services (AWS), the subsidiary of Amazon.com, entered the Asia Pacific region by setting up its data centre in Singapore recently. With clients like Patni Computer Systems, Hungama Digital Media Entertainment &#8230; <a href="http://managedcloudservices.wordpress.com/2010/05/06/in-the-next-10-20-years-very-few-companies-will-own-data-centres/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=58&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>One of the earliest proponents of Cloud Computing Amazon Web Services (AWS), the subsidiary of Amazon.com, entered the Asia Pacific region by setting up its data centre in Singapore recently. With clients like Patni Computer Systems, Hungama Digital Media Entertainment and Rediff.com among others in India, <strong>Andy Jassy</strong>, Senior Vice-President, Amazon Web Services believes India along with Australia and Singapore will see an increased uptake of cloud services. In an interview to <em>Shivani Shinde</em>, Jassy — who wrote the business plan seven years ago — outlined the latest trends cloud computing. Edited excerpts:</p>
<p><strong>Are you happy with adoption of cloud services?</strong><br />
We are thrilled with the pace of adoption in this space. I wrote the business plan seven years ago in Mid-2003. We believed in the business and pursued it but did not anticipate this kind of adoption. Even among the enterprise segment, the adoption has been much faster than we anticipated. Amazon (retail business) is a $25 billion business. We believe our business can be at least as big as our retail business today and we believe this is going to be a large free cash flow generating business.</p>
<p>Last fall, we announced our plans to have some presence in the Asia-Pacific (APAC) region in the first half of 2010. We have done that now. Besides customers from APAC, Europe and the US have been asking us when we would be here. What this also means is smaller firms, start-ups and enterprises can now take advantage of our cloud computing platform and be able to turn capital expenses on data centres and servers to variable expenses as they need to just pay only when they use a particular service.</p>
<p><strong>But today, there are players like Google, IBM and Microsoft offering cloud services&#8230;</strong><br />
We are ahead of others because of our value proposition. We always expected to have more players in this segment, but what differentiates us is that we launched the business four years ago but started working on it even before that. We started with Amazon retail and our goal was to grow the retail business. The retail business is a low margin business and hence we had to provide the best technology at a cost that was much affordable. So we know this business.</p>
<p><strong>What trends do you see in the cloud computing adoption?</strong><br />
Customer feedback is critical for our platform in terms of feature launches. In terms of trends, apart from the services expansion, we always expected start-ups to be the early adopters of our services since they do not have to spend crazy money on infrastructure but get the same scale and infrastructure as any large enterprise. The enterprise adoption patterns are 18-24 month quicker than what we anticipated. I think some of that relates to the fact that the operational performance of services has been good, the buzz associated with cloud, and some of it also relates to the economy getting impacted.</p>
<p><strong>Private cloud is a concept being sold to enterprises. Kindly explain.</strong><br />
I think in the next 10-20 years, very few companies will own data centres. Even those that do, would have a limited footprint. The cloud computing space will be massive, which means it’s going to be a high volume and relatively low margin business. That is a different view of the business from the present, where technology providers for the last 30 years have got used to 70-80 per cent of gross margins. Hence, a lot of companies are not too excited about this computing space. Many of these firms then are continuing to do what they have been doing but attach the word cloud to it. Private cloud is one such example. At the end of the day, it is a large expensive private extension that misses almost all the key advantages of cloud. You still own the capital expenses &#8211; it is not pay for what you use and is not flexible. The companies still own all the resources. And you still have to manage it.</p>
<p><strong>Source: </strong><a href="http://www.business-standard.com/india/news/%5Cinnext-10-20-years-very-few-companies-will-own-data-centres%5C/393893/">http://www.business-standard.com/india/news/%5Cinnext-10-20-years-very-few-companies-will-own-data-centres%5C/393893/</a></p>
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		<title>Nine Ways the Cloud Will Transform IT Sourcing</title>
		<link>http://managedcloudservices.wordpress.com/2010/04/30/nine-ways-the-cloud-will-transform-it-sourcing/</link>
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		<pubDate>Fri, 30 Apr 2010 10:19:32 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[Cloud computing and the whole industrialisation of IT services will inevitably alter the way people source IT. These two developments will cause a move to services that are shared, scalable and metered. The cloud will not only drive the shift &#8230; <a href="http://managedcloudservices.wordpress.com/2010/04/30/nine-ways-the-cloud-will-transform-it-sourcing/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=56&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Cloud computing and the whole industrialisation of IT services will inevitably alter the way people source IT. These two developments will cause a move to services that are shared, scalable and metered.</p>
<p>The cloud will not only drive the shift to such services, but it will also foster the growth of sourcing models based on multiple providers. It will do so while reducing the use of single-source models and increasing the number of managed service providers. That change will make service integration and multi-sourcing management two of the most challenging jobs for IT organisations.</p>
<p>What are the most common sourcing methods, and what impact will cloud services have on each model?</p>
<p><strong>1. Internal Delivery</strong><br />
Delivering certain IT services in-house will remain a primary model — and one that will last a long time. But organisations need to assess what they should keep in-house, and what should be outsourced.</p>
<p>The emphasis in the future is likely to be on value-added jobs such as service integration, process design, information and risk management, and on end-to-end business process performances.</p>
<p><strong>2. Build, Operate and Transfer</strong><br />
This model is used to establish a software development facility in a low-cost location, such as South America or India. But in the future, the build, operate and transfer model could evolve as a way to create more complex multi-sourced environments where services are cloud-based. External services are good vehicles to help clients manage complex change programmes involving new technology.</p>
<p><strong>3. Shared Services, Captive Centres</strong><br />
Shared services and software captive centres provide economies of scale, centralisation and low-cost locations, all with significant benefits to businesses. Over time, shared services and captive centres will need to sort out their own value proposition and sourcing strategy to make use of new delivery models and cloud-enabled services.</p>
<p>For example, shared services that manage business processes and the IT infrastructure could decide to focus only on application management and use a cloud-based infrastructure to make their services more flexible.</p>
<p><strong>4. Brand service company</strong><br />
A brand service company is an internal IT or shared-service organisation that defines and builds itself to function like an external IT service company with a defined brand and value proposition. It may even be an entirely separate legal entity.</p>
<p>I expect this type of company to grow in popularity as a result of the rising complexity and richness of external services. Such companies are particularly well-suited to service the needs of large organisations or groups of companies by using internal and outside resources — multi-sourcing by design.</p>
<p><strong>5. Joint Ventures And Client Consortia </strong><br />
Joint ventures are traditionally marketing tools for selling outsourcing deals. This traditional approach will decline and become a way of putting together the capabilities of various clients and providers to deliver cloud-enabled businesses and IT services. Key to this idea is that, if companies share the same value chain, they all have an incentive to optimise it.</p>
<p><strong>6. Full Single-Source Outsourcing</strong><br />
This model has been losing ground over recent years, because it creates a monopoly, especially when applied to very large IT requirements. This model also sits uncomfortably with cloud-based services and consequently is likely to keep declining as cloud services grow over the next five years. The only way to make this model work using cloud computing is to create a major ecosystem of service providers on a single cloud infrastructure that is used as a platform for integration and delivery.</p>
<p>It is in this area that Force.com, Azure, Amazon Web Services and Amazon EC2 and a few other vendors such as IBM and Oracle will operate. While the winners will become powerful players, their success will not reverse the decline of the single-source model.</p>
<p><strong>7. Best-of-Breed Consortium</strong><br />
This model, often used by governmental organisations will benefit from cloud-based services, because such organisations are already used in approaching and managing complex multi-source environments.</p>
<p>The increasing complexity of cloud-based multi-sourcing integration clearly calls for such a model, with growing specification and regulation of the role of the prime contractor.</p>
<p><strong>8. Prime Contractor </strong><br />
The prime-contractor model resembles the best-of-breed model and is becoming popular as a way of addressing the same challenges that the best-of-breed model solves for government organisations.</p>
<p>In this model, one service provider manages and integrates the contributions of many to deliver a comprehensive service. The increasing complexity of cloud sourcing and service delivery will call for this type of role to grow in the future. But it could also end up being constrained in terms of duties, skills, process and certifications.</p>
<p><strong>9. Selective Outsourcing</strong><br />
This is the most common sourcing model for commercial organisations. The client engages different service providers, but the service integration — and thus the overall multi-sourcing management — is retained by the client. It is another model that will benefit from cloud computing.</p>
<p>But it requires increasingly sophisticated frameworks for governance and management. Internal skills in process design and integration, and information management across the different sources of technology, capabilities, processes and services are also required.</p>
<p>While large organisations will probably go to extremes in their multi-sourcing by taking on hundreds of suppliers, most organisations will use integration and aggregation of services to simplify multi-sourcing, as well as face the challenges of data, business and end-to-end processes.</p>
<p>Although aggregators and platform approaches, supported by Force.com or Azure, may help reduce the complexity and enable more integrated solutions, we will continue to see the number of suppliers rise, as organisations start using cloud-based services.</p>
<p><strong>Source: Google News</strong></p>
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		<title>3 Kinds of Cloud Computing and Why They Matter</title>
		<link>http://managedcloudservices.wordpress.com/2010/04/22/3-kinds-of-cloud-computing-and-why-they-matter/</link>
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		<pubDate>Thu, 22 Apr 2010 13:00:18 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[Together, the ever increasing complexity of data centers coupled with the massive growth of data itself are multiplying the amount of compute and resources required to store, process, optimize and serve information back to end users.  Many data centers now &#8230; <a href="http://managedcloudservices.wordpress.com/2010/04/22/3-kinds-of-cloud-computing-and-why-they-matter/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=54&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Together, the ever increasing complexity of data centers coupled with the massive growth of data itself are multiplying the amount of compute and resources required to store, process, optimize and serve information back to end users.  Many data centers now face shortages in floor space, insufficient power and cooling capabilities, trade-offs between IT agility and vendor lock-in, as well as ever increasing complexity and costs in managing disparate islands of information and infrastructure.  Attempting to address these issues, organizations have rapidly adopted virtualization and are now looking to Cloud delivery service models to reduce costs, increase flexibility and improve their time to market.</p>
<p>In order for organizations to keep up in today’s competitive marketplace they need greater flexibility and agility than their traditional storage architectures can provide. IT-to-business response time and speed-to-market demand a more flexible architecture, which is why many organizations are looking to modernize their data centers through virtualization and consolidation, all while aiming to reduce costs. This, coupled with explosive unstructured content growth, is driving organizations to look toward instant IT delivery models.</p>
<p><strong>On Demand IT Delivery</strong><br />
In driving toward on demand IT delivery, it hasn’t taken long for customers to recognize the benefits of private, hybrid or public cloud models.  First and foremost, customers are realizing significant cost savings. From a capital expenditure perspective organizations generally over-purchase to deal with the ebb and flow of storage and resource requirements to support the business, leaving them with an abundance of underutilized hardware assets. Cloud’s ability to grow and contract storage resources, in concert with the business needs, minimizes this upfront capital expense, moving from “fixed costs” to “variable costs.”</p>
<p>If we take a look at the operational costs, or what we like to call the hidden costs, the data growth and complexity to manage traditional IT environments has erupted. Customers can reduce much of this operational expenditure by deploying cloud models and leveraging cloud managed services, paying only for what they consume and eliminating the day-to-day management tasks altogether. </p>
<p>While on-demand access to computing resources is what the industry is striving for, it also poses concern and risk for IT organizations.  This can be very disruptive to business process and control. If business users begin to outsource to cloud providers in order to get faster support, sensitive information could be put at risk.  To mitigate this risk, IT organizations should be thinking about developing an internal cloud-enabled architecture to provide greater business agility, in addition to a process for if and when projects need to be outsourced to a public or hybrid cloud provider. This way they can move into the cloud in a controlled, programmatic fashion, mitigating any associated risks.</p>
<p>There are many deployment choices to consider for moving into the cloud. There are also some considerations to keep in mind when choosing the option that’s right for your business.</p>
<p>For simplicity, let’s define a private cloud as cloud-enabled infrastructure within the physical walls of a data center. A private cloud can provide many of the benefits of cloud without the security risks associated with public deployments.  Because it’s accessed over an internal network or intranet, it’s as secure as the rest of your data. Since you control it and the environment around it (i.e. networks, servers, etc), you can achieve enterprise level SLAs. But you do sacrifice some of the operational cost savings such as physical floor space, power, and cooling.  Unless you are leveraging a managed service you are also subject to management overhead.</p>
<p>Now let’s take a look at the hybrid or trusted cloud, which we will define as infrastructure that resides at a trusted service provider.  In this case, access is limited to appropriate resources at your organization and delivered over a virtual private network or secure internet connection. Since the infrastructure is out of the organization’s direct control, service levels could be impacted by external factors.  Customers also need to think about the physical security of the environment, which is why it’s important to understand the service provider’s process and requirements around physical access.</p>
<p>Lastly, the public cloud can be described similarly to the hybrid, except that there is usually more general access over the internet providing limited security.  Many public cloud offerings are very inexpensive or sometimes free and SLAs are generally not guaranteed or measured differently than how an enterprise measures their SLAs. Additionally, value added services and features such as encryption, compression, backup, tiering and replication are not available from public providers as they are from private or hybrid cloud providers.</p>
<p><strong>What Makes A Cloud?</strong><br />
Regardless of the type of cloud, there are some key features every cloud platform should have.  Foremost, is a secure, direct connection to get data into the cloud, such as a REST interface or an on-ramp to connect applications to the cloud without requiring application recoding. There also needs to be multitenancy capabilities to logically segregate the data, so that SLAs can be assigned to specific data types or applications.  The cloud should also have namespaces with access rights and security layers to prevent unauthorized access. Depending on the provider, some clouds offer value added features like compression and single instancing to improve cost savings, encryption to provide greater security and billing and chargeback for organizations or service providers that wish to bill each business unit or organization based on consumption.</p>
<p>IT services are generally held to service level standards for availability, reliability and integrity. Augmenting or replacing “legacy” IT services with cloud services require the same quality guarantees. Although managed cloud services allow customers to focus less on the storage management details such as RAID, replication, and capacity planning, it is critical that customers include an expected quality of service in their contracts with cloud providers.  Not all cloud providers measure SLAs the same way, so it’s important to ask how they quantify their SLAs. Even if a company is building a private cloud internally it is important that IT meet the business units’ SLAs.</p>
<p>Given some of the trade-offs between the various cloud deployment models, how do you identify the most appropriate candidates for deployment? Well, to start with, use a phased approach. There’s no need to jump into the deep end without at least dipping a toe in to check the temperature.  Start by identifying the data in your environment that generally has lower business value and lower SLA requirements.  For example think of data types like home directory shares, static data or backup content that can be moved from on-site “primary” to cloud “secondary” storage. </p>
<p>You can get immediate cost savings by moving this peripheral data –data that doesn’t require active management or constant read/write access to the cloud. Why pay such high administrative and management overhead for this non-business critical data?  This helps in a couple of other ways.  First, it frees up resources to focus on the core business applications, improving operational efficiency and utilization of your existing assets. Next, it allows your organization to gain experience and develop best practices for cloud deployments. Lastly, it allows you to move toward your core, tier 1 applications at your own pace.</p>
<p>Organizations need IT agility to maintain their edge in today’s competitive market.  To achieve this, cloud promises an on-demand service model that can support your business needs today, while providing a solid foundation for the data center of the future.</p>
<p><strong>Source: Google News</strong></p>
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		<title>NaviSite Emphasizes Apps in Cloud Services Debut</title>
		<link>http://managedcloudservices.wordpress.com/2010/04/20/navisite-emphasizes-apps-in-cloud-services-debut/</link>
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		<pubDate>Tue, 20 Apr 2010 08:22:24 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<description><![CDATA[At a time when cloud providers look for ways to stand out, NaviSite Inc. is hanging its hat on applications. The company on Monday took the wraps off cloud-based managed infrastructure, applications, and messaging services for enterprise customers in North &#8230; <a href="http://managedcloudservices.wordpress.com/2010/04/20/navisite-emphasizes-apps-in-cloud-services-debut/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=52&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>At a time when cloud providers look for ways to stand out, NaviSite Inc. is hanging its hat on applications. The company on Monday took the wraps off cloud-based managed infrastructure, applications, and messaging services for enterprise customers in North America. The lineup includes <a href="http://www.navisitemcs.com">NaviCloud</a> <a href="http://www.navisite.com/application-services.php">Managed Application Services</a>, an offering that supports <a href="http://www.navisite.com/business-applications/oracle.php">Oracle e-Business</a>, <a href="http://www.navisite.com/business-applications/peoplesoft.php">PeopleSoft</a>, Siebel, <a href="http://www.navisite.com/business-applications/jd-edwards.php">JD Edwards</a>, <a href="http://www.navisite.com/business-applications/hyperion.php">Hyperion</a>, <a href="http://www.navisite.com/business-applications/microsoft-dynamics.php">Microsoft Dynamics</a>, and <a href="http://www.navisite.com/business-applications/sap.php">SAP applications</a>. Here are some early details.</p>
<p>Among the key efforts: NaviCloud Managed Infrastructure Services, which the company said will focus on Web hosting, server management, storage, database, network and security management, and disaster recovery. NaviCloud Managed Messaging Services, meanwhile, will provide hosted Microsoft Exchange and SharePoint, Lotus Domino, mobile messaging, and e-mail archiving services.</p>
<p>“Our key difference is the application and <a href="http://www.navisite.com">application management </a>space,” noted Claudine Bianchi, chief marketing officer at NaviSite.</p>
<p>Bianchi said the company’s cloud services are in limited availability mode until June 1 when they will become generally available in North America. Thus far, eight customers are deployed on NaviSite’s cloud. NaviSite’s London data center is slated to become cloud enabled in September.</p>
<p>NaviSite’s <a href="http://www.navisitemcs.com">cloud services </a>are layered atop the company’s NaviCloud infrastructure, announced in October.</p>
<p>With its <a href="http://www.navisitemcs.com">cloud services</a>, NaviSite provides service level guarantees at the infrastructure and application layers. As for pricing, the company offers pure usage and commit-and-burst options. Pure usage, the company says, requires no base-level commitment but lacks a volume discount. In commit and burst, the pricing is set according to base-level commitments and can scale up or down. NaviSite’s commit and burst option includes discounts for higher commit levels.</p>
<p>A customer’s resource utilization during its first 90 days of service determines the base workload. After that, the commit level could be changed on a monthly basis, according to NaviSite. Overall, NaviSite’s cloud moves are in keeping with its upmarket direction.</p>
<p>Bianchi said the company has refined its strategy over the past year to pursue mid-market and enterprise customers in the $250 million to $2 billion-plus revenue range. She pointed to the sale of NaviSite’s colocation data centers and Lawson/Kronos Application Services business as recent moves reflecting the enterprise emphasis. Bianchi said NaviSite no longer focuses on the SMB segment, with the exception of ISVs and SaaS enablement.</p>
<p><strong>Source: <a href="http://www.mspmentor.net/2010/04/19/navisite-emphasizes-apps-in-cloud-services-debut/">http://www.mspmentor.net/2010/04/19/navisite-emphasizes-apps-in-cloud-services-debut/</a></strong></p>
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		<title>NaviSite Joins Cloud Security Alliance to Tackle Cloud Security Standards</title>
		<link>http://managedcloudservices.wordpress.com/2010/04/15/navisite-joins-cloud-security-alliance-to-tackle-cloud-security-standards/</link>
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		<pubDate>Thu, 15 Apr 2010 16:37:36 +0000</pubDate>
		<dc:creator>managedcloudservices</dc:creator>
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		<guid isPermaLink="false">http://managedcloudservices.wordpress.com/?p=49</guid>
		<description><![CDATA[Brings Strong Managed Applications, Infrastructure and Messaging Expertise to Group NaviSite, Inc. /quotes/comstock/15*!navi/quotes/nls/navi (NAVI 2.85, +0.12, +4.40%) , a premier provider of complex hosting, application managements and managed cloud services for enterprises, today announced it has joined the Cloud Security &#8230; <a href="http://managedcloudservices.wordpress.com/2010/04/15/navisite-joins-cloud-security-alliance-to-tackle-cloud-security-standards/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=managedcloudservices.wordpress.com&amp;blog=10077757&amp;post=49&amp;subd=managedcloudservices&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<h2>Brings Strong Managed Applications, Infrastructure and Messaging Expertise to Group</h2>
<p>NaviSite, Inc. /quotes/comstock/15*!navi/quotes/nls/navi (<a title="NaviSite Inc" href="http://www.marketwatch.com/investing/stock/NAVI">NAVI</a> <strong>2.85</strong>, +0.12, +4.40%) , a premier provider of complex hosting, application managements and managed cloud services for enterprises, today announced it has joined the Cloud Security Alliance as a corporate sponsor member to help establish and promote best practices for security in <a href="http://www.navisitemcs.com">cloud computing</a>.</p>
<p>NaviSite will support the Cloud Security Alliance&#8217;s initiatives by working closely with other alliance members in addressing key security related concerns around adoption of Cloud Computing for mission critical enterprise applications. For more than a decade, NaviSite has been managing mission critical,<a href="http://www.navisite.com/enterprise-hosting.php"> enterprise applications </a>such as <a href="http://www.navisite.com/business-applications/oracle.php">Oracle</a>, <a href="http://www.navisite.com/business-applications/peoplesoft.php">PeopleSoft</a>, <a href="http://www.navisite.com/business-applications/siebel.php">Siebel</a>, and<a href="http://www.navisite.com/business-applications/jd-edwards.php"> JD Edwards</a>. With its in-depth expert knowledge, NaviSite fully understands the complexities of managing and running these applications and is in a unique position to help define security standards so that enterprises can trust putting their mission critical applications in a cloud environment.</p>
<p>&#8220;As <a href="http://www.navisitemcs.com">cloud computing </a>evolves, NaviSite is excited to be involved in helping set standards and work to develop cloud security best practices,&#8221; said Denis Martin, Chief Technology Officer, NaviSite. &#8220;We are committed to provide best cloud solutions to our customers and being part of CSA will helps us move one step further in our goal.&#8221;</p>
<p>&#8220;Securing <a href="http://www.navisitemcs.com">cloud computing </a>is a shared responsibility requiring the active participation of cloud providers,&#8221; said Jim Reavis, Executive Director, Cloud Security Alliance. &#8220;NaviSite&#8217;s wealth of experience in managed hosting and SaaS enablement will be a great asset to the Cloud Security Alliance and we welcome their active participation as a new corporate member.&#8221;</p>
<p>About the Cloud Security Alliance The Cloud Security Alliance is a not-for-profit organization with a mission to promote the use of best practices for providing security assurance within Cloud Computing, and to provide education on the uses of Cloud Computing to help secure all other forms of computing. The Cloud Security Alliance is led by a broad coalition of industry practitioners, corporations, associations and other key stakeholders. For further information, the Cloud Security Alliance Web site is <a href="http://www.cloudsecurityalliance.org/">www.cloudsecurityalliance.org</a>.</p>
<p><strong>About NaviSite</strong></p>
<p>NaviSite, Inc. /quotes/comstock/15*!navi/quotes/nls/navi (<a title="NaviSite Inc" href="http://www.marketwatch.com/investing/stock/NAVI">NAVI</a> <strong>2.85</strong>, +0.12, +4.40%) is the premier provider of complex hosting, application management and managed cloud services for enterprises. The Company provides a full suite of reliable and scalable managed services, including Application Services, industry-leading Enterprise Hosting, and Managed Cloud Services for enterprises looking to outsource IT infrastructures and lower their capital and operational costs.</p>
<p>Over 1,400 customers depend on NaviSite for customized solutions, delivered through a global footprint of over a dozen state-of-the-art data centers supported by more than 600 professionals. For more information on NaviSite services, please visit <a href="http://www.navisite.com/">www.NaviSite.com</a>.</p>
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