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Turning to the cloud

Anushkar Mohinani | April 18, 2011
Uwe Schlager, managing director of T-Systems, shares his thoughts on cloud adoption in the region.

As a cloud service provider in Singapore and in Asia, we've seen increased adoption of private cloud models that promote a holistic approach, backed by extremely high-quality service-level agreements. These private service models allow CIOs the peace of mind with necessary resources required to meet peak business demands without investing heavily in hardware and other operational expenses like power, cooling and resource management. Within demand for private cloud models, we've also seen a specific increase in demand for systems integration (SI) services, and expect that the continued trend of global companies expanding in the region will drive a 10 per cent increase in revenues year-on-year, with SI services revenues set to reach 24 per cent in 2011.

The advantages for private cloud models are both clear and straightforward - cost savings and flexibility. The pay-per-use model enables cost to be aligned to business requirements without having to pay for idle resources. The flexibility of the on-demand model also allows companies to quickly and efficiently meet the ICT demands of their business processes. Additionally, capital is not trapped in infrastructure, allowing companies with greater flexibility to grow their business or improve their competitiveness.

What are Singapore's strategic advantages as a hub for the delivery of cloud services?

As a major financial hub in Asia, Singapore possesses a number of strategic advantages, making it an ideal location for companies to deploy cloud services as part of their regional or global operations.

Firstly, Singapore's stable government has attracted many MNCs to invest locally, and they bring with them large numbers of employees while setting up regional headquarters in Singapore. Aside from attracting businesses to set up shop locally, the government has also showed commitment to strengthening its ICT infrastructure, ensuring a more conducive business environment for companies with aggressive regional expansion plans. This is demonstrated through the implementation and ongoing execution of the country's Intelligent Nation 2015 master plan, which includes the rollout of its next-generation broadband networks, a factor that has increased interest from carriers and telcos to set up base in Singapore.

Secondly, Singapore is located where global transatlantic undersea cables converge, allowing for a unique concentration of data and network traffic not just from the region but also across the world. This logistical advantage makes the country particularly attractive to global MNCs looking to place data centres closer to regional customers as part of efforts to reduce network latency and provide uninterrupted access to content.

Q  What are the best practices and strategic considerations for CIOs who are looking to adopt and run cloud -based services?

The business requirements of the organisation form the underlying considerations to cloud adoption; which applications and data are to be migrated; private, public or hybrid cloud.


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