SMB Cloud Adoption in Asia Challenges and Opportunities Dr. Ko-Yang Wang, Executive Vice President, Institute for Information Industry

1. SMB CLOUD ADOPTION IN ASIA
CHALLENGES AND OPPORTUNITIES
Dr. Ko-Yang Wang, Executive Vice President
Institute for Information Industry (III)
Contact: kyw@iii.org.tw
With Dr. Grace Lin, Director General & VP
Data Technologies & Applications Research Institute (DATA), III
1
2015 10 28 Cloud Asia

2. Agenda
1. Drivers for Changes
2. Opportunities in the Cloud Computing / Big
Data Era
3. III’s Approach and the upcoming spin-off :
iSMB
© 2014, Ko-Yang Wang, IIII 2

3. The Cloud Computing Market
Continues to Grow at Rapid Rate
Source: Deloitte: Cloud Computing Forecast Change
3

4. Key Trends in Cloud Computing
1. The era of Software Defined Anything
– Hardware commoditization is accelerated
2. The era of Anything as a Service
– High value, flexible services enabled by reusable, easy-customizable
processes and assets
3. Open Data and Big Data Analytics
– In time insight for competitiveness
4. Migration of Legacy Applications to Cloud
– Accelerated transformation to cloud
5. API Economy and Agile Business Innovation
– Migration to Cloud and Open APIs
– Crowd sourcing and innovation enabled by API ecosystem and management
– New innovative business and new enterprise IT development models
The power of integrating IOT, Cloud, Social Network, Big Data Analytics
and Open Data / Open APIs for Adaptive, Innovative Business Model
© 2014, Ko-Yang Wang, IIII 4

5. Cloud Value and Adoption Challenge
Value/Advantage
• Easy to expand and
deploy
• Pay by usage
• Lower IT cost
• Latest Technology
• Standardized or
Modularized of IT
• Sharing IT/Messaging
• Expandability, Future
prepared
• Big Data Analytics & IOT
5
Challenge
• Safety/Security
• Usability
• Integration with existing
applications
• Customizability
• Cost
• Compliance
• Vendor locked in
• Migration out
• Skilled People
*source: http://www.mariaspinola.com/whitepapers/An_Essential_Guide_to_Possibilities_and_Risks_of_Cloud_Computing -
A_Pragmatic_Effective_and_Hype_Free_Approach_For_Strategic_Enterprise_Decision_Making

6. Virtual/Hosted Private Cloud Revenue Continues to Grow
Source: http://www.itcandor.com/server-2013/
In 2013 5.3 million of the 15 million servers
shipped were virtualized: these included 3.4
million running VMware, 0.7 million
Microsoft Hyper-V, 0.6 million KVM and 0.3
million Xen. This means that VMware
accounted for 65.0% of
virtualization in the year.

7. Source: Odin 2015 Global
Insight
Global SMB Cloud Market Size
SMB = companies with <= 250 employees
77
Source: Parallels SMB Cloud Insights for Global 2014
2015 Global SBM Cloud Market Size
2013 and 2014 Global SMB Cloud Market
59.2% CAGR
2015 and 2018 Global SMB Cloud Marke
2018
$158.9B
17.2%CAGR

8. SMB accounts for > 40% of the Private
Cloud but it is under-supported
VMware (69.3%)
Microsoft (7.0%)
KVM (8.0%)
Citrix (8.5%)
Market Shares of Private Clouds
Too Expensive, Too Complex,
Difficult to Use and Hard to
Manage for Small or Medium
Businesses
Source: Analysys Mason,
2013
© 2014, Ko-Yang Wang, CSSI, IIII 8
Private Cloud Market

9. Most SMEs Are Challenged When Adopting
Cloud Computing
• Taiwan: SMEs
– 99% of all enterprises
– Employed 98% workforce
– 31% of total sales
– ~17 % direct exports.
• APEC SMEs
– 97 % of all enterprises
– Employ >50% workforce
across
– SMEs' share of GDP: 20-50%
– <35 % of direct exports.
• Generates most of the net
new jobs
9
>500 employees
>20 employees
Most DCs focused on

10. Value Co-
Creation
10
• VMs created &
managed by CAFE
provide easy to use,
manage and
secured applications
• Enterprise file
sharing,
synchronization, &
backup - powered
by COSA storage
cloud
Private Cloud
(On-premise)
Hosted Private
Cloud
• IDC provides
dedicated private
cloud to clients.
• Rental computing
resource from IDC
could lower TCO
(Total cost of
ownership)
Infra Support IT Support Business Enablement
Solutions & Services for SMBs
Cloud
Application
Services
• API consumable:
Services to help
ISVs migrate to the
cloud
• DaaS & SaaS:
Affordable, Smart,
Integrated Solutions
in the
Tourism/Retails,
Manufacturing &
other industries
• The private
cloud solution
targeting
SMBs’ needs
• Offering
Simple, Easy
to manage,
Easy to use,
Inexpensive,
Secured,
solutions

11. Sample of CAFÉ Based Services:
Tokai Communication (Japan): Pracla & Kumokura
• TOKAI (Japan) launched its CAKE based Hosted Private Cloud
(HPC) services, Pracla, in October 2013
– HPC is more flexible and secured than shared hosting, as
customers have full control over the servers.
– TOKAI promotes Pracla to midsize enterprises and its IDC alliance
members in Japan. Now TOKAI starts developing business in
Taiwan targeting Japanese companies in Taiwan.
11
TOKAI launched the
cloud storage
service, Kumokura
in March 2014. The
high performance
price ratio service is
well received by
customers.

12. Sample of CAFÉBased Services:
CAFÉbased HPC services in IDCs
12
• Partner with leading server manufacturers and IDC operators in
China to launch CAFÉ -based hosted private & hybrid cloud
services. Help ISVs migrating their solutions onto CAFÉ -based
cloud appliances to provide secured, affordable, high value
business operating services to SMBs
Data center partner
ISVs
1. Showcase in Taiwan
ISVs in China
2. Adapt to Data Centers in China 3. Expand to Asia, Americas & EU
Data centers in China
SaaS
IaaS
PaaS
BPaaS
DaaS
ISVs
ISVs
ISVs
ISVs

13. Big Data & Cloud System Platform (CAFÉ , BISTRO)
Smart
Living
Smart
Governme
nt
Innovative Business Services &
APIs
Smart Services for Smart Cities and Smart Living
III Solutions: Enabling Smart Cloud Services
through Smart System Services, Big Data Analytics. Big
Data Appliance & API Economy
API Economy Platform enabled by Smart System Services (S3)
Big Data Business Analytics Common Layer
Smart
Tourism
Analytics
Smart
Healthcare
Analytics
Smart
Green
Analytics
Smart
Media
Analytics
Smart
Government
Analytics
Smart
Business
Analytics
2012 12 18 Talk：III, G. Lin, Smart Industry Enabled by Smart System Services and Big Data Analysis
13
Smart
Business

14. Smart Cloud Services for SMBs
14
SMB CustomersISV, SI Partners
Smart Cloud Service Ecosystem Enablement
Help migrate ISV’s solutions to
cloud and provide integrated
services
Smart Tourism/
Commerce
• Provide Cloud Service Packages
• Cooperate with local partners in
different regions
Smart
Finanical
Smart
Health/Care
• Focus on SMB’s needs
• Enhance SMB customers’
competitiveness
IDC, H/W Partners
(Server, Storage, Network)
Smart
Manufacturing
Smart Office
/ Building
Smart
Green
Smart Tourism / Business (as an
anchoring service)
Smart
Living /
Communit
y
$

15. Anchor Service for SMB Solutions:
Smart Commerce for Smart Tourism
15
Business People
Connected Business APIs
API-enabled Business Connection Platform
API Consumers
API Providers
(API Endpoints)
Open API Platform
Restaurant
Open API
Fashion
Open API
Hotels
Open API
Transportation
Open API
Recreation
Open API
APIAPIAPI
APIAPIAPI
APIAPIAPI
APIAPIAPI
APIAPIAPI
Public Cloud
Services API
APIAPIAPI
Millions
Developers
New Innovations
API
Ecosystem
API
Economy

16. 16
Managed Cloud Services for SMB
SQL/NoSQL
資料庫
專案管理
Multi-mational Co. Partners
Open Source
網站平台
KM/CRM
電子報/行銷
叡揚資訊 沛盛資訊
行動視訊會議
ISVs
智慧觀光(O2O)
資策會
大數據所
電商平台
資料庫 E-mails
API Management
HR
ERP 物流/倉儲
企業影像處理
愛報告愛客戶

17. Bistro Software Stack: Hadoop + Spark
17
Application
Package
Computing
Framework
Distributed
File System
Resource
Managemen
t
Hadoop Distributed File System (HDFS)
Spark
Hive Pig
tachyon
MLlibRHadoop
MapReduce v2
Yet-Another-Resource-Nagotiator (Yarn)
Managemen
t Studio
Oozie Sqoop
GraphX
Zookeeper
SQL
NagiosAmbari Ganglia
Supporting
Batch, Real
time and
Graphic
analytics
Information
Management
System
Management

18. FinTech Ecosystem
Providing FinTech Big Data Services on the Cloud for SMBs
Data Lake
Infrastructure Service
Data APIs
Process APIs
Platform Service
Data / Analytics /
Processes / Decisions
Application Service
18
Open
Data
Externa
l Data
Big
Data
Lake
Intern
al Data
New Generation Financial Services

19. Enable SMBs and startups to have key
competitiveness in the cloud big data era
at an affordable cost
Smart
Tourism
Smart
Commerce
Smart
Manufacturing
Smart
Startups
Smart
Financial
iSMB Inc.
ISVs
Software as a Service
IDC, H/W
Software Defined IDC (IaaS, PaaS)
Smart Cloud Service Ecosystem Enablement
Startups
Fund
BPaaS (Business Process as a Service)
Innovative
Startups
AaaS (Analytic as a service, Data as a service)
…
SMBs
Open
API
Open
Data
Startup
Support
Team
H/W
VendorsIDC
Local SIs
Smart
Healthcare
Big data
lake
APIs
API
Platform as a
Service

20. iSMB Key Competitiveness: SMEs
20
IDC, H/W (Server,Storage )
Software Defined IDC (IaaS + Big Data Platform)
Fintech Service Ecosystem Enablement
PaaS (API Mgmt, DevOps & Business Process as a Service)
AaaS (Analytics as a Service)
Smart
Financial
DaaS ( Data as a Service)
FinTech Ecosystem
Simple, Ease of Use, Easy to Manage, Inexpensive, Secured
Ecosystem

21. Questions?
Come Visit Taiwan.
Use www.vztaiwan.com to get smart travel help
while enjoying your stay in beautiful Taiwan!
E-mail: kyw@iii.org.tw
21資料來源： 資策會 前瞻所研究，2013年