World should follow India & Japan in cloud computing: Vivek Kundra, Chief information officer, US

Thought of sharing an interesting news article.

The Economic Times had published an article today ,titled “World should follow India & Japan in cloud computing: Vivek Kundra, Chief information officer, US”

Here are some excerpts from the article and some of my thoughts

  • Cloud Computing can help bring tremendous productivity and help optimize the IT systems (reduce wasteful IT spending) :: Business Agility
  • Significant reduction of costs (TCO) :: The article menions that “Some agencies, like the General Services Administration, have embraced cloud computing; the agency has cut the IT costs on things as simple as its email system by over 50 percent!”
  • In health care alone, a productivity increase of 1 percent in the next 10 years – much of which could be achieved with cloud-based services – represents a $300 billion value. Similar efficiencies could be realized in sectors like financial services, education and manufacturing.  :: This is incredible! A productivity of 1% can help bring $25 billion/year kind of value! Looks like productivity and business agility solutions on the cloud is a good target for this sector as well as for other verticals indicated. New Ideas,Start ups,Services?
  • It mentions,Cloud computing is often far more secure than traditional computing, because companies like Google and Amazon can attract and retain cyber-security personnel of a higher quality than many governmental agencies! :: Other Players watch out! If you are able to convince your clients that you have the top class security features and in-house talent/security personnel manning the cloud,you are in a better position!!
  • If the “Cloud First” policy were instituted /implemented and if it gains momentum with the US Government departments,there is significant business in store for Cloud Services Vendors (Amazon,Rackspace etc)
  • The Japan government’s Ministry of Economy, Trade and Industry estimates that the Japanese cloud computing market is likely to reach $20.1 billion by 2015 and is implementing a cloud initiative as a key tenet of its national economic strategy.  $ 20 billion is almost 17% of the global cloud computing market growth of $129 billion by 2015 as per Gartner! (Amazon has already set up its ops. in Japan, It would be interesting to watch which other Cloud Services providers would follow this to capture a segment of this market?)
  • The budget crisis will accelerate the move toward cloud services. I had a blog post on these lines,but just applying it to SMBs.

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