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Exclusive: Former Counting the Billions The biggest impediment to Forbes India Exclusive:
Mondelez employees called (/article/column cloud adoption is cultural: PIL puts government
in for questioning over /counting-the-billions capioIT CEO (/article/real- investments in tobacco on
7-year-old case (/article /46691/1) issue/the-biggest- notice (/article/special
/special/exclusive-former- impediment-to-cloud- /forbes-india-exclusive-

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Forbes India Lists
The biggest
impediment to
cloud adoption is (http://www.forbesindia.com/lists/30-under-
30-2017/1599/1)

cultural: capioIT
CEO
The migration from traditional, on-premise
hardware and services to the cloud isn't
easy for legacy companies, but it's
increasingly important, says Phil Hassey

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impedi d- creasin
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cloud n- portant
adoptio is-cultu %2C+s
n is ral- ays+Ph (http:// 1. 32-year-old Sachiin Joshi is the new
cultural capioit- il+Hass www.fo owner of Vijay Mallya's Kingfisher
: ceo%2F ey& rbesind
capioIT 46679 source ia.com
Villa (http://www.forbesindia.com
CEO) %2F1) =) /rss/) /article/special/32yearold-sachiin-
joshi-is-the-new-owner-of-vijay-
mallyas-kingfisher-villa/46617/1)

2. PNC Menon: A businessman by choice,

billionaire by chance
(http://www.forbesindia.com/article
/real-estate-special/pnc-menon-
a-businessman-by-choice-billionaire-
by-chance/46609/1)

3. Paytm's Vijay Shekhar Sharma, India's

youngest billionaire on Forbes's
World's Billionaires List
(http://www.forbesindia.com/article
/leaderboard/paytms-vijay-shekhar-
sharma-indias-youngest-billionaire-
on-forbess-worlds-billionaires-
list/46597/1)

4. Branded hostels for students and

working professionals are
mushrooming across India
(http://www.forbesindia.com/article
/real-estate-special/branded-hostels-
for-students-and-working-

1 of 5 4/14/2017 11:13 AM
The biggest impediment to cloud adoption is cultural: capioIT CEO | Forbe... http://www.forbesindia.com/article/real-issue/the-biggest-impediment-to-...

Phil Hassey, CEO of capioIT professionals-are-mushrooming-

across-india/46629/1)

Cloud is changing all of business and society
on a fundamental level, said Ginni Rometty,
chairman and CEO of IBM, while giving the
keynote address at the InterConnect 2017 in
Las Vegas in March. An annual affair by the
technology giant, this year saw industry
experts come together to better explore how
businesses can disrupt and transform using
cognitive and cloud-enabled technologies. On
the sidelines of the three-day conference,
Forbes India caught up with Phil Hassey, CEO
of capioIT, an Australia-based advisory firm
that helps organisations understand emerging
technologies in emerging markets. Edited
excerpts:
Q. Cloud adoption is no more a matter of
if, but what and when. How do you see it
accelerating, especially in the Asian
markets?
I started as an IT outsourcing analyst years
ago. For me, cloud is just an extension of that
technology. I remember thinking, probably
eight years ago, Is cloud an evolution or a
revolution? Its an evolution for sure, but its
evolving quickly. Nowhere do I see discussions
not having a cloud element to them. When
organisations are investing in new technology,
every piece of that conversation is about the
cloud. In Asia, in pretty much all the markets,
security is not an inhibition anymore to
adopting cloud technology. The security that a
regional bank in India or telcos in Taiwan
offer is nowhere close to the security that
Microsoft, IBM or AWS [Amazon Web
Services, the cloud computing division of
online retailer Amazon] have. So security is
not an issue anymore. The only real
impediment is legislative requirements about
where data is to sit or the structure of that
data.
5. Infosys names Ravi Venkatesan
co-chairman in a move to repair
relations with founder Murthy
(http://www.forbesindia.com/article
/special/infosys-names-
ravi-venkatesan-cochairman-
in-a-move-to-repair-relations-
with-founder-murthy/46671/1)
6. Flipkart confirms investment by
Tencent, eBay and Microsoft, raises
$1.4 billion
(http://www.forbesindia.com/article
/special/flipkart-confirms-investment-
by-tencent-ebay-and-microsoft-
raises-$1.4-billion/46631/1)
7. Flipkart: The billion's in. Next up,
innovate to stay ahead
(http://www.forbesindia.com/article
/special/flipkart-the-billions-in.-next-
up-innovate-to-stay-ahead/46661/1)
8. Malvinder and Shivinder Singh exit
Religare Health Insurance
(http://www.forbesindia.com/article
/special/malvinder-and-shivinder-
singh-exit-religare-health-insurance
/46623/1)
9. Hungarian plant to allow Apollo Tyres
to increase its connect with European
car makers
(http://www.forbesindia.com/article
/special/hungarian-plant-to-allow-
apollo-tyres-to-increase-its-connect-
with-european-car-makers/46615/1)
10. Tiger-spotting in Kanha - a paradise
for wildlife enthusiasts
(http://www.forbesindia.com/article
/recliner/tigerspotting-in-kanha-
a-paradise-for-wildlifes-enthusiasts
/46555/1)
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Q. But transitioning to the cloud

requires change across all levels of an
organisation and thats not easy
Cloud is not easy. Its a change management Tweets by @forbes_india

process. The biggest impediment to cloud

Forbes India
adoption is culturalorganisations not @forbes_india
#Exclusive I Former #Mondelez employees called in
understanding the cloud, so theyre not able to
for questioning over 7-year-old case:
invest in it. Everyone thinks that with the forbesindia.com/article/specia @MDLZ
@_SamarS #Cadbury
fantastic AWS, you can swipe your credit card
and youve got cloud. Its not that easy,
especially, if youre dealing with legacy
infrastructure across, say, India, China and
Australia. If youre a single entity in a single
spot in Singapore, swiping youre credit card
and getting on the cloud is easy. Not so if
youre a bank with branches across a hundred 42m
towns and cities in India. So culture is an
Forbes India
important aspect that often gets overlooked.
@forbes_india
Because its not the technologythe best The best of our #stories from 2016-17
forbesindia.com/aperture/slide
technology out there is cloud-enabled, or
#BestofForbesIndia
securitybecause the best security is cloud-
enabled. The vendors who are providing cloud
Embed View on Twitter
services, too, are pretty strong vendors. So its
got to be that culturethe lack of
understanding of the benefits as well as some
regulatory environments.

Q. What are the economics of cloud

adoption?
People are realising that the economics of
cloud arent necessarily better. You dont hear
about 50 percent savings going to the cloud.
The cloud, in some instances, may be more
expensive. Its a bit of a catch-22 situation. The
cloud can enable you to do more, so your
workload goes up, so does your bill. Yet you
havent bought those servers because you
didnt need them so far. So, say, you were
spending $1 million on servers. But, now,
because your business has doubled [from
more workload], youre spending $2 million
on cloud. So the economics of cloud are an
interesting battle, for want of a better word.
Its not just about being cheaper. Youre not
necessarily going to save money directly on the
cloud. Its more the opportunity of being on
the cloud and the flexibility it presents to you.
Its the tangible and intangible benefits of the
reactivity and proactivity that cloud enables,
which is important. For instance, if youre
going to Singapore, you dont have to build the
infrastructure, you just have to go to your
cloud provider, plug in. And youre operating
in Singapore.

2 of 5 4/14/2017 11:13 AM
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Q. AWS is the fastest growing and most

profitable part of Amazon. Microsoft
and Google are devoting greater
resources to cloud computing, although
their market share still lags behind
Amazons. Who are the strongest
vendors in the cloud computing space
and how do you see the market evolving?
Weve got pretty strong vendors: AWS in
particular and increasingly Microsoft Azure.
The transformation of Microsoft is probably
the biggest weve seen from a legacy to a cloud
vendor. Theyre strong providers for storage
market or commoditised volume mass market.
Oracle has some aspirations in that area,
mainly driven by a fear of AWS because if
people migrate their database to AWS, Oracle
is left with nothing. IBM has a different
perspective. No one else has Watson [IBMs
cognitive Artificial Intelligence (AI) platform].
Other organisations have their own AI and
machine-learning capabilities. But Watson is
certainly the most developed, most
enterprise-ready and the most cognitive. For
me, storage isnt IBMs market in the long
term. For them, its all about cognitive and
linking organisational data into the cloud at
the enterprise level. So if youre running
cognitive-type workload for, say, the financial,
health care or transportation sectors, thats
where IBM has a genuinely differentiated
capability. Even if you look at Cisco, HP or
Dell, they dont have a Watson. Today HP is a
private data centre, server and storage centre
theres not massive amounts of growth in
that market. Google, I think can do it, but
theyre just a bit sub-enterprise. Their
enterprise isnt fully fleshed out from a
strategy, execution, and partnering point of
view. But if Google can do to cloud what
theyve done to search, then it begins and ends
with Google. In my view, theyre still about 12
months off from being fully enterprise-ready.
They dont have the local data centres needed
to get there as yet. Theyve been a bit too slow
to develop their global footprint. Going
forward, well also have players who we
havent thought of, like Facebook. No one has
better consumer data or more data centres
than they do. Facebook is the next
organisation to understand. What theyll do
from an enterprise point of view, the basis of
that is just the unbelievable volume of data
they generate.

The writer attended the IBM InterConnect

2017, Las Vegas, at the invitation of IBM

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cultural: capioIT CEO
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