We are in our endeavor to seek the best practices in using this new technology by bringing our clients, fund souring firms, startup companies, academia, industry analysts and other technology companies together to talk about the implications of this on major business and technology issues of the day.
Our focus is on cloud computing as a major potential that requires us to work with a range of entities from academia and start-ups to corporations, and technology providers for bringing world-class solutions to address the market demands of the global community.
We are investing in building capabilities of our engineers to create a suite of cloud-based solutions to help our clients capitalize on the cloud. We have been redesigning their business processes and shifting on-premises applications to the cloud; developing, testing and maintaining whole new applications for the cloud; including cases of hosting and supporting their cloud applications.
We are engineering the cloud platform to drive industry vertical centric solutions by offering the latest state of the art solution engines that run on the cloud. We are also in the process of creating special cloud offerings across the industry verticals.
We learnt from the survey of more than 500 companies around the world in more than a dozen industries (most organizations came from a corporate group had more than $1 billion in annual revenue). We also learnt from the interviews with six enterprises to dive well below the surface of these issues.

In European companies cloud applications are projected to double to becoming 24% of all applications. U.S. firms see cloud applications being about a third (34%) of total applications by then, when Asia-Pacific companies project them to be a full half of all their applications and Latin American companies see them becoming 56% of total applications. That’s quite a change from the last 30 years, when the vast majority of companies ran their applications from computers located on their premises.

Perhaps the most important piece of evidence that companies will embrace cloud applications in a big way is the value they have achieved to date from such applications. By shifting on-premises applications to the cloud, the companies we surveyed reduced their IT costs an average 31% in U.S. firms and 28% in European companies. (See Exhibit 2.) To us, this is not surprising. Such savings come from such sources as the ability to purchase network capacity and storage far less expensively, locate data centers in areas with lower post costs, and institute more highly automated data centers.

By using public clouds (Internet services provided from data centers that host many companies’ applications), companies are able to tap into powerful application software that would have been cost-prohibitive for many.

But cost reduction is not the only benefit companies had generated from cloud applications.  Those that launched whole new applications in the cloud applications that might have been economically infeasible had they required costly new computer hardware that reported 13% (U.S.) to 32% (Latin America) average revenue gains from their new, cloud based products and services. Whether they are replacing on-premises applications or representing whole new applications, the cloud is generating substantial business value in many companies.

The company believes cloud applications hosted in its own data centers (so-called “private clouds,” which would eventually house 80% of its applications) could cut IT costs by $100 million to $200 million annually and its number of data centers 80%. Another example is a large financial institution based in Sydney, which reduced its cost of computer storage 40% by putting applications in the cloud.