Infosys converts cloud threat into opportunity

by Srikanth RP, InformationWeek, February 28, 2011

The cloud computing model has been widely perceived as a threat to the growth of the software outsourcing industry. Here is how Infosys came up with an answer

A recent Gartner report predicts that 20 percent of businesses will own no IT assets by 2012 – a significant shift that the research firm predicts will be caused by cloud computing. For Indian IT service providers – this is a massive shift as the traditional sources of revenues – application development, application maintenance and implementation will be massively impacted.

As there is no software to install, maintain or develop – the cloud model has the ability to threaten the main sources, that Indian software service players typically derive their revenues from. Infosys saw this development almost two and half years ago, and\ accordingly started analyzing how cloud computing could be a possible threat, and how it could be converted into an opportunity by strategically positioning itself into areas where it could leverage the cloud computing model.

In addition to providing specialized frameworks and accelerators, we will also provide the specialists who can deliver the full potential of cloud-based solutions

Raghavan Subramanian, AVP, Cloud Computing CoE, Infosys Technologies


To better address the opportunities provided by the cloud computing model, Infosys also opened a Cloud Center of Excellence (CoE) that enables enterprises adopt cloud-based capabilities on public as well as internal private clouds. The software giant has already created three cloud-based business process-specific platforms – HR, procurement and processes specific to the advertising industry. The HR platform, which Infosys calls as HR-in-a box solution, has already been adopted by two customers.

With enterprises wary about adopting solutions on the public cloud, Infosys is seeing huge traction from enterprise customers who want its consulting expertise for building private clouds. The firm has close to 25 customers who are using its consulting services to adopt cloud computing solutions.

“Enterprise customers face several challenges in cost effectively migrating to the cloud. In addition to providing specialized frameworks and accelerators to help customers effectively adopt cloud computing solutions, we will also provide the specialists who can deliver the full potential of cloud-based solutions to end users,” says Raghavan Subramanian, AVP, Cloud Computing, Center of Excellence, SET Labs, Infosys Technologies.

This approach is perfect for Infosys and its customers. Customers can outsource their entire business process functions such as HR, and only pay for what they use. Infosys will not only supply the technology platform, but also the people to run it. So one side, it will leverage its traditional skills in helping organizations build private clouds, and on the other side, it will provide the business process management platforms that will be run in the cloud.

“We are naturally built for the cloud as we have similar experience in ramping up and scaling down teams and providing on demand models for our customers,” says Subramanian, pointing out to the synergies that exist between the outsourcing model and the cloud.

About Author

Srikanth RP

Executive Editor

An award-winning journalist with more than 14 years of experience, Srikanth RP is Executive Editor with InformationWeek India. Srikanth is passionate about writing on topics which clearly show the business impact of technology.

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