Implications Cloud Computing in Thailand“Same Same but Different”
A Comparative Analysis of Cloud Computing Implications within North America, Europe and South East Asia.
Erica C. Davis
A dissertation submitted in partial fulfillment of the degree of MBA International Business Practice
July 2011
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Abstract:Cloud computing is a prominent emerging information technology trend
across the globe. It is not a new technology but rather new avenue in which
technology is leveraged. As this trend is dramatically shifting the paradigm of
information technology, it is important that its implications are appropriately
understood by IT and business professionals.
Although a knowledge base exists for cloud computing, previous studies that
have been conducted are from a generalized point of view that is focused upon the
North American and European regions. Although the conclusions drawn from prior
research are valuable, it is important for IT and business mangers to understand the
implications of cloud computing according to their unique environments.
This specific study will focus upon a research gap that has been identified in relation
to the implications cloud computing within South East Asia. Therefore this research
will aim to investigate cloud computing within Thailand thus striving to answer the
following overarching research question:
Based upon the significant implications of cloud computing on the technology
environment within North America and Europe, what are its implications within
Thailand?
In efforts to answer this question, models, theories, and analysis of primary
and secondary research were leveraged to understand the alignment of trends and
implications within North America, Europe and South East Asia. As an exploratory
study, a framework was built based upon the secondary research to derive the key
implications (adoption trends, benefits, and challenges) of cloud computing. This
framework was then applied to Thailand to facilitate a comparative analysis. The
analysis discovered that the implications of cloud computing within Thailand are very
different from those within North America and Europe. More specifically, significant
challenges within Thailand will need to be addressed to enhance the growth
opportunity of cloud computing. While many challenges exists, if appropriately
addressed cloud computing presents a considerable growth opportunity for Thailand.
Acknowledgements:
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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First and foremost, I would like to thank my advisor Joseph Ho. I would like to
express a great deal of appreciation for all of his on-going and invaluable support
throughout the entire process of my dissertation. Without his mentoring and
assistance, the completion of this thesis would not have been possible. Additionally, I
would like to thank the Mountbatten staff for their efforts and support during term of
the thesis. I would also like to thank Josephine Giles for her support in connecting
me with two of the invaluable interviews included within this study. I would also like
to thank Dr. Piyapan, Dr. Sahanon, and Mr. Andrew Mc.Bean for participating within
interview sessions and offering their invaluable support on the subject matter.
Last but not least, I would like to express many thanks to my parents for all of their
love, support and inspiration throughout my lifetime. Without them, I would not be the
person I am now.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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ContentsChapter 1: Dissertation Study...........................................................................................................7
Section 1- A: Introduction and Rationale.....................................................................................7
Section 1- B: Background............................................................................................................10
Section 1-B Part I: Evolution of Cloud Computing and Market Forecast...........................10
Section 1-B Part II: Thailand Country Overview...................................................................13
Chapter 2: Cloud Computing Literature Review...........................................................................16
Section 2-A - Introduction............................................................................................................16
Section 2-B: Cloud Computing Conceptual Framework..........................................................17
Section 2-C Theoretical Underpinning of the Cloud Computing.............................................24
Section 2-D: Global Cloud Computing Research Trends........................................................33
Section 2-E: Literature Review Findings and Conclusions.....................................................56
Chapter 3 Research Methodology:.................................................................................................67
Section 3-A: Introduction..............................................................................................................67
Section 3-B: Research Aims.......................................................................................................67
Section 3-C Research Strategy..................................................................................................68
Section 3-C Part I - Research Approach and Methodology................................................68
Section 3-C Part II – Data Collection Method: Population and Sample Selection...........69
Section 3-C Part III – Ethics and Limitations.........................................................................72
Chapter 4 Analysis and Findings:...................................................................................................74
Section 4-A Introduction:..............................................................................................................74
Section 4-B Primary Research:...................................................................................................74
Section 4-C Findings and Analysis:............................................................................................75
Section 4 - C Part I – Interview Findings:..............................................................................75
Section 4 - C Part II – Analysis of Findings:..........................................................................87
Section 4 – C Part III – Conclusions and Recommendations.............................................91
Appendix 1: Interviewee Backgrounds......................................................................................95
Appendix 2: Interview Questions...............................................................................................97
Appendix 3: Primary Research Dissertation Information Sheet..........................................101
Appendix 4: Interview Consent Form (Sample).....................................................................103
Appendix 5: Bibliography..........................................................................................................105
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Table of Figures
Figure 1 - Cloud Computing Dissertation Objectives.....................................................................9Figure 2 - Cloud Computing Platform Technologies....................................................................12Figure 3 - Map of Thailand..............................................................................................................13Figure 4 - Cloud Computing Framework........................................................................................18Figure 5 - Cloud Computing Characteristic Trends......................................................................19Figure 6 - Cloud Computing Characteristic Inventory..................................................................19Figure 7 - Cloud Service Delivery Framework..............................................................................23Figure 8 - Cloud S.W.O.T. Analysis...............................................................................................26Figure 9 - IT Average Spend...........................................................................................................28Figure 10 - Cloud forces of Change...............................................................................................31Figure 11 - WFM Survey Respondents..........................................................................................35Figure 12 - WFM Study Demographics Analysis 1.......................................................................35Figure 13 - WFM Study Demographics Analysis 2.......................................................................36Figure 14 - WFM Cloud Understanding Chart..............................................................................38Figure 15 - WFM Cloud Impact by Industry...................................................................................39Figure 16 - WFM Study Cloud Benefits.........................................................................................40Figure 17- WFM Study Most Significant Cloud Benefits..............................................................41Figure 18 - WFM Cloud Challenges by Country...........................................................................43Figure 19 - WFM Top Cloud Challenges Rating by Country.......................................................43Figure 20 - WFM Study Cloud Challenges....................................................................................44Figure 21 - Accenture Study Respondent Details 1.....................................................................46Figure 22- Accenture Study Respondent Demographics Analysis 2.........................................47Figure 23 - Accenture Study Industry Respondents....................................................................48Figure 24 - Accenture Study Cloud Adoption Trends by Country..............................................49Figure 25 - Accenture Study Cloud Adoption Trends by Region................................................50Figure 26 - Accenture Study Europe Region Cloud Adoption....................................................50Figure 27 - Accenture Study Asia Region Cloud Adoption.........................................................50Figure 28 - Accenture Study Cloud Adoption by Industry...........................................................51Figure 29 – Accenture Study Industry Cloud Adoption Trend Statistical details......................51Figure 30 - Accenture Study Cloud Platform Adoption Trends...................................................53Figure 31 - Accenture Study Cloud Benefits.................................................................................54Figure 32 - Accenture Study Cloud Computing Challenges.......................................................55Figure 33 - Accenture Study Cloud Challenges by Country.......................................................56Figure 34 - Literature Review Themes...........................................................................................56Figure 35 - Cloud Computing Conceptual Model.........................................................................59Figure 36 - Cloud Computing Challenges Country Rating..........................................................62Figure 37 - Literature Review Studies Coverage..........................................................................64Figure 38 - N. American and European Cloud Computing Change Model...............................65Figure 39 - Dissertation Objectives Completed............................................................................67Figure 40 - Interview Participant Listing.........................................................................................74Figure 41 - Interview #1 Analysis Private Banking Sector Analysis.......................................88Figure 42 - Interview #2 Analysis Telecommunications Industry...........................................89
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Figure 43 - Interview #3 Analysis Public Banking Sector Analysis.........................................90
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Chapter 1: Dissertation Study
Section 1- A: Introduction and Rationale
Cloud computing is a prominent emerging global phenomenon, representing a
paradigm shift in the fundamental management of information technology. Its
importance is illustrated through various research initiatives from notable
organizations such as the World Economic Forum. Therefore, it is important that IT
and business managers on both the client and service provider side of the industry
have an adequate understanding of its implications. Furthermore, it is imperative that
IT and business professionals not only understand the general themes but also the
specific implications of cloud computing which are differentiated by variables such as
country, industry, sector, and organization. Therefore, this enables a realistic
understanding of the feasibility of cloud computing within a particular environment as
well as the respective benefits and challenges.
The purpose of this thesis is to provide a focused qualitative analysis of cloud
computing within Thailand’s banking and telecommunications industry. The analysis
will strive to identify the implications of cloud computing within Thailand in
comparison to the global trends reported upon by professional research firms. Thus,
this research will provide a source of knowledge for IT professionals and business
organizations which can be leveraged to understand the Thailand cloud computing
environment. Conclusions drawn from research in Thailand will serve as an indicator
of the cloud computing environment within greater South East Asia (SEA).
Thailand has been selected to derive the SEA cloud indicators based upon
the conditions of its telecommunications and banking industry. Thailand leads the
banking sector within SEA. Furthermore, the country’s banking and
telecommunications industry are well established both domestically and
internationally. Thailand’s leading banks: Bangkok Bank, Siam Commercial, and
Kasikorn bank have a developed international presence across Asia Pacific and
within the United States. Conversely, in comparison to Thailand the banking systems
within other SEA countries are less suitable for this study due to the limited presence
and developmental state of the industry. For example, Singapore has a limited
banking industry presence consisting of a few whole sale branches. Additionally, the
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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banking systems within India, Laos, Cambodia, and Vietnam are still within
developmental phases. In relation to information technology within Thailand,
regulatory requirements mandated by the Thai government foster optimum
conditions that are conducive for the growth of cloud computing. The Bank of
Thailand and Ministry of Finance dictates that all banks and telecommunication
companies have a wholly owned, shared, or outsourced (class A) data center
located domestically within the country. In addition, a full size disaster recovery site
for the continuity of business operations must also be present in Thailand. Based
upon these conditions, the Thai banking and telecommunications industries are
strong indicators of cloud computing growth within greater SEA.
Due to the nature of the study, this research will enhance the existing
knowledge base by proposing a different perspective of cloud computing resulting
from the unique environment within Thailand. Furthermore, it will address two
weaknesses identified within existing cloud computing research. Prior studies
conducted in the field have been from a generalized perspective significantly focused
within the North America and Europe. In contrast, this research will analyze and
conclude upon the cloud computing implications within SEA in comparison with
those identified within North America and Europe. To accomplish this, models,
theories, and analysis of primary and secondary research will be leveraged to
understand the alignment of SEA, North American and European cloud computing
trends and implications. Furthermore, the analysis will strive to answer the following
overarching research question:
Based upon the significant implications of cloud computing on the technology environment within North America and Europe, what are its implications within Thailand?
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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The subsequent objectives will be leveraged to answer the overarching question
above:
Figure 1 - Cloud Computing Dissertation Objectives
# Objective Coverage1 Review existing academic literature to derive the definition and framework
of cloud computing.
Section 2-B
2 Identify management implications of cloud computing to lay the foundation
for the framework of analysis.
Section 2-C
3 Identify the significant implications of cloud computing upon enterprises
within North America and Europe via secondary research.
Section 2-D
4 Based upon the factors identified, conduct primary research to identify the
implications of cloud computing upon banking and telecom enterprises
within Thailand.
Section
4-C Part I &
Part II
5 Compare and contrast the Thailand, North American and European cloud
computing implications.
Section
4-C Part III
6 Conclude upon the critical success factors and key challenges of cloud
computing adoption for enterprises within Thailand.
Section
4-C Part III
7 Conclude upon the feasibility of cloud computing adoption within Thailand
and provide recommendations for improving the environment for continued
growth of the industry.
Section
4-C Part III
*Implications refer to knowledge and understanding, perspective, adoption trends, benefits, and challenges.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Section 1- B: Background
The following section will set the context of the study by providing a
description of technological foundations underlying the development of cloud
computing. Additionally, the significant elements of the information technology and
banking environment within Thailand will be discussed thus setting the underlying
premise for this study.
Section 1-B Part I: Evolution of Cloud Computing and Market Forecast
Due to significant hype, a large amount of confusion is present regarding the
subject of cloud computing. The concept is often misconstrued as the development
of a new technology rather than a computing innovation that has evolved over time
from pre-existing platforms. The conceptualization of cloud computing is accurately
articulated through IBM’s statement, “cloud computing is an important topic.
However, it is not a revolutionary new development, but an evolution that has taken
place over several decades” (IBM, 2009). The essence of the cloud is derived from
the convergence of previously existing concepts and technology platforms that have
contributed considerably to its formation (D.Zissis, D.Lekkas, 2011): grid computing,
virtualization, utility computing and the internet. The components of each of these
technologies have contributed to the characteristics that have built the foundation of
cloud computing.
In the early 1990’s, grid computing emerged as a network of high
performance computers interconnected via fast data communication links that were
applied to support complex calculations and data intensive applications that were
scientific in nature (Merrill Lynch, 2008). Grid computing is specifically defined as “a
hardware and software infrastructure that provides dependable, consistent,
pervasive and inexpensive access to high-end computational capabilities” (D.Zissis,
D.Lekkas, 2011). The principal of grid computing is the transference of workloads to
available computing resources (IBM, 2009). Hence similar to the cloud, the
foundation of Grid computing is the division of processing amongst computers
enabling speed and scalability (Harris, Alter, 2010). Although the similarities between
grid and cloud computing are noted, it seems to be accepted that cloud computing
evolved from the concept of grid computing (D.Zissis, D.Lekkas, 2011).
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Cloud computing is empowered by virtualization technology which has existed
since 1967 (D.Zissis, D.Lekkas, 2011). Virtualization is the proliferation of resources
through the method of partitioning physical hardware or software into multiple logical
(virtual) versions (TechTarget, 2011). This technology is an important element of the
cloud as it facilitates the essential characteristics of cloud computing: location
independence, resource pooling, and rapid elasticity (D.Zissis, D.Lekkas, 2011).
According to Merrill Lynch, the factor that differentiates the cloud from grid
computing is its leverage of virtualization to “maximize computing power.”
Virtualization resolves some of the problems faced by grid computing through the
separation the logical from the physical. (Merrill Lynch, 2008). Furthermore, grid
computing achieves high resource utilization through the allocation of multiple
servers to a single task. In contrast, the virtualization aspect of cloud computing
allows one server to achieve multiple tasks simultaneously (D. Harris, 2008).
Therefore, virtualization facilitates the aspects of multi-tenancy, on-demand resource
allocation, and consumption based billing which are significant to the cloud model.
These aspects of the cloud are closely related to concept of utility computing.
Utility computing is a concept that leverages the dynamic service provisioning
model in which the service provider makes computing resources available to the
consumer as needed. Thus charging them for the resources utilized rather than a flat
rate for consumption. Similar to other on-demand computing platforms, this
computing model seeks to optimize the efficient use of resources and minimize cost.
The word utility alludes to other services such as electrical power that are
provisioned based upon the fluctuating demands of the consumer and leverages a
pay-per-use or metered billing model (TechTarget, 2011).
Although the platforms mentioned above are important to the rise of cloud
computing perhaps the internet is the most prominent contributing factor to the cloud.
The initial concept of cloud computing was born during the mid-1990’s along with the
emergence of the internet. As the internet became faster, cheaper, reliable and more
accepted the development of web applications such as Salesforce.com began to
emerge. This was first model of the cloud computing known as software as a service
(SaaS). The significance of the web to cloud computing is illustrated by the name of
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the concept which “was inspired by the cloud symbol that is often used to represent
the Internet in flow charts and diagrams” (D.Zissis, D.Lekkas, 2011).
As previously stated, the platforms described above have made significant
contributions to the fundamental characteristics of cloud computing. These platforms
“represent the increasing trend toward the external deployment of IT resources:
computational power, storage or business applications and obtaining them as
services” (D.Zissis, D.Lekkas, 2011), thus the evolution of cloud computing. The
chart below summarizes the connection between each technology platform and its
relationship to the characteristics of the cloud. For further detail in regards to the
definition of each characteristic refer to section 2-B, the cloud computing framework,
on page 17.
Figure 2 - Cloud Computing Platform Technologies
Platform Cloud Computing Characteristics
Grid Computing Scalability, Elasticity
Virtualization Multi – tenancy
Utility Computing On Demand, Pay-per-use/as you go,
Service Delivery Model, Outsourced
Internet Web Centric, Internet Delivery, Ubiquity
The evolution of cloud computing is not solely remarkable based upon the
convergence of technological platforms providing dynamic capabilities over the web.
The movement toward the leverage of cloud computing has created a sizeable
emerging global market for the information technology industry. Studies have
reported considerable growth prospects within the cloud industry. “Gartner Research
expects cloud computing to be a $150 billion dollar business by 2014, and according
to AMI partners, small and medium businesses are expected to spend over $100
billion on cloud computing by 2014” (S. Marston et al, 2011). Widespread trends
such as these have considerable impacts upon the stakeholders within the industry:
consumers, regulators, integrators, and providers of the cloud thus warranting in-
depth investigation within different environments.
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Section 1-B Part II: Thailand Country Overview
Thailand is a developing economy (IMF, 2010)
located in the midland of South East Asia. The
continent is bordered by: Myanmar to the west and
northwest, Laos to the east and northeast, Cambodia
to the east and Malaysia to the south. The capital city
of Thailand is Bangkok the business hub of the
country and therefore the central location of various
banking and telecommunications companies.
According to DataMonitor, “Thailand is a major
international financial center, with an integrated
banking system network. The banking sector plays a
significant role in the economy with estimated
financial sector assets 200% of Gross Domestic
Product (GDP). According to Bank of Thailand, the
overall banking system was strong, due to domestic
economic expansion and recovery in the first quarter
of 2010.” According to Bangkok bank, the country’s GDP
growth amounted to 8% during 2010 (Bangkok Bank, 2010). The banking industry
within Thailand has remained historically strong and stable. As of 2007, there were
a total of 37 banks within the country: 17 of these banks are foreign banks, 15 are
Thai commercial banks and 5 are specialized public state-owned banks. The
banking sector in Thailand is dominated by various major players which include:
Bangkok Bank, Kasikorn bank, and Siam Commercial bank. Furthermore, Standard
Charter, Hong Kong and Shanghai Banking Corporation (HSBC), and Citibank
represent foreign banks with major branches in the Central Business District
(DataMonitor, 2010).
Similar to its economy, Thailand has a developing information technology
communications (ICT) environment with many growth opportunities. Although
Thailand’s telecommunications infrastructure has expanded, the delay in the
formation of the National Telecommunications Commission (NTC) has hampered the
pace of ICT development (DataMonitor, 2010). In 2009, the Economist Intelligence
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Figure 3 - Map of Thailand
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Unit (EIU) released a global IT industry competitiveness benchmarking report
ranking the IT environments of 66 countries based upon 26 indicators. These
indicators were grouped into 6 overarching categories. These categories consisted
of a balance of quantitative and qualitative indicators: overall business environment,
IT infrastructure, human capital, legal environment, research and development
(R&D) environment, and the support of IT industry development. The countries were
rated on a scale from 1 to 66, 1 being the highest rating. Within the study, Thailand’s
overall IT industry competitiveness score ranked 49 th globally. The significant themes
underlying support for this rating can be derived from the country’s scores within the
IT infrastructure, IT human capital, and the support for the IT industry segments of
the study. Thailand’s IT infrastructure score is rated 50 th, its human capital score is
rated 43rd and support for IT industry development is rated 29 th globally. Although
Thailand’s overall IT infrastructure score declined since 2008, the country displayed
overall improvement in regards to laptop/desktop penetration which rose from 6.9 to
13.9 machines per every 100 people. Additionally, Thailand’s mobile penetration is
highly favorable as well at 91.9% of the population. However, broadband
connections represent a less favorable ratio at 2.2 per 100 people. In regards to
human capital, Thailand is experiencing a shortage of highly skilled labor force with a
critical lack of talent in the fields of software engineering, technicians, and IT
managers. In a survey conducted by Grant Thornton in 2008, 68% of Thai
companies reported the lack of skilled workforce as a significant concern (EIU,
2009).
Although considerable opportunity for improvement exists, positive indicators
can be identified within Thailand’s ICT environment. The country’s registered internet
users have increased 49% within a two year period between 2009 and 2011 from 4.8
to 11.37 million users. The growth in internet access will influence companies to
invest in e-commerce. In 2008, Thailand’s National Statistical Office identified a
noteworthy annual increase in computer users from 15.4 million in 2006 to 16 million
in 2007. The highest density of these users is within Bangkok according to the
Ministry of Information and Communication Technology (DataMonitor, 2010). In
recognition of the ICT improvement opportunities, the government has implemented
several initiatives to foster the maturity of the ICT industry. Two of the most
significant initiatives established were Software Park Thailand and the ICT 2009-
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2013 Master plan (EIU, 2009). Software Park is a Thai government agency within the
National Science and Technology Development agency established to foster growth
within the domestic Thai software industry (Fernquest, 2009). Furthermore, the ICT
plan developed focuses on the improvement of six areas including IT human capital
and ICT infrastructure (EIU, 2009). Although delayed, the NTC tasked with
overseeing Thailand’s ICT industry liberalization was formed in 2004 and has
proceeded with its duty to issue licenses to telecom providers (DataMonitor, 2010).
In order to foster the continued development of Thailand’s ICT maturity, it is
noted by the EIU that the country will need to additionally address legal and
regulatory issues related to intellectual property rights, data privacy and protection,
cybercrime and spam. In addition to regulation, the government will need to adopt a
“market driven” approach to effectively facilitate ICT maturity. Overall, it is suggested
that Thailand’s technology environment should evolve toward ICT market leaders in
innovation as opposed to late adopters or followers of technology trends (EIU, 2009).
The opportunity to embrace ICT market leadership currently exists within the
emerging cloud computing trend. Through understanding the implications of the
cloud that are specific to Thailand, a tailored plan can be developed for successful
adoption within its major industries. Additionally, the most suitable cloud
implementation model can be identified accounting for the unique environmental
factors within the country thus contributing to successful adoption. Adoption of the
cloud has the potential to contribute to the country’s ICT competitiveness, and
overall growth and development.
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Chapter 2: Cloud Computing Literature Review
Section 2-A - Introduction
The purpose of the literature review chapter is to set the wider context of cloud
computing through the discussion of existing literature. In pursuit of this objective,
prior studies will be analyzed to identify the common themes and areas of
opportunity for further investigation. Thus alluding to how this study supplements
prior work completed within this topic area.
Many recent publications have investigated the emerging cloud computing
phenomenon from an extremely broad approach often covering a wide spectrum of
variables: country, industry, sector and organizational size. Therefore, the
conclusions offered while valuable are limited by generalization providing the
opportunity for a more focused and in depth study. In addition, the previous studies
conducted are significantly focused within North America and Europe thus excluding
coverage within Thailand and greater South East Asia. Hence a knowledge gap
exists providing an opportunity for additional examination within the under-
represented area. This literature review will identify and analyze the overarching
themes asserted by prior research to build a premise for the primary research
conducted within this dissertation. The following section will explore existing
academic and practitioner literature published on the topic of cloud computing
drawing attention to the predominant subsequent themes:
Cloud Computing Conceptual Framework: Section 2-B discusses the
fundamental components and core concept of cloud computing proposed by
existing publications emphasizing the ambiguity that exists within the
definition. This section will analyze the literature in efforts to understand the
trends related to the assertions regarding the cloud computing concept
leveraging this as a basis for the definition formulated in this study.
Cloud Computing Theoretical Underpinning: Section 2-C explores the
applicable business management implications through academic models and
theoretical underpinnings adopted by previous authors to understand the
context of the cloud computing industry.
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Global Trend Analysis: Section 2-D will summarize the trends and
significant empirical findings and ideas introduced within previous research
efforts conducted by notable professional consulting firms.
Literature Findings and Conclusions: Section 2-E will provide a summary
of findings and conclusions related to the previous literature explored and the
foundations that have been established as the platform for this study.
Numerous texts related to the topic of cloud computing have been published and
were reviewed for this study. During the review process per the author’s discretion,
the most prominent articles supporting the significant themes mentioned above were
selected as a sample to be included in this literature review. The review sample size
of 15 articles includes publications from industry experts within notable consulting
firms such as Accenture and the World Economic Forum. In addition, academic
journals such as the journal of Decision Support Systems are also represented within
the review.
Section 2-B: Cloud Computing Conceptual Framework
Research Objective 1: Review existing academic literature to derive the definition and framework of cloud computing.
The appropriate definition of cloud computing is a debated topic amongst
academics and practitioners therefore proving to be an extremely complex and
ambiguous concept. The ambiguity of cloud computing is illustrated by the lack of a
generally accepted definition within the industry. Recent studies have identified more
than twenty two definitions (P. Callewaert et al, 2010) represented by the variety of
descriptions offered within each piece of literature published. The National Institute
of Technology (NIST) published a draft document in January of 2011 which sets out
a framework for describing cloud computing. The purpose noted within the
publication “is to enhance and inform the public debate on cloud computing” (P. Mell,
T.Grance, 2011). The framework, referenced in Figure 4, delineates three main
components of the cloud computing definition: characteristics, service models, and
deployment models (P.Mell, T.Grance, 2011). These categories are commonly
leveraged in literature when discussing the model of cloud computing and will be
explored in the subsequent sections. The conclusions drawn within the following
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sections will formulate a foundation for the definition of cloud computing asserted
within this study.
Figure 4 - Cloud Computing Framework
Cloud Computing Characteristics:
The concept of cloud computing encompasses a myriad of characteristics
therefore creating an extremely nebulous model (P. Callewaert et al, 2010).The 15
articles leveraged for this literature review were analyzed to identify the most
significant trends in relation to the characteristics asserted by academics and
industry experts within the field. The articles analyzed are noted in the Bibliography
section within appendix 6. Three approaches were leveraged for the analysis
undertaken based upon the composition of each article analyzed. Fourteen of the
fifteen articles either offered a definition of cloud computing or a direct listing of
characteristics. One of the fifteen articles consisted of direct quotes from a survey of
21 IT professionals on their personal definition of cloud computing. For each
definition or listing of characteristics offered within the 14 articles, the words and
phrases were analyzed and interpreted to identify prominent overarching concepts.
After categories were established, the content of each of the 14 articles was
analyzed for representation within these categories. A similar method was leveraged
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Cloud Computing
Characteristics
Deployment Models
Service Models
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for each of the 21 quotations within the survey published on the Cloud Computing
Journal webpage.
Figure 5 - Cloud Computing Characteristic Trends
1 2 3 4 5 6 7 8 9 10 11 12
1 2 3 4 5 6 7 8 9 10 11 12
34%
66%
40%
9%
31%
14%
3% 3%
51%
6% 3%
31%
Cloud Computing Characteristic Trends
Percentage
Figure 6 - Cloud Computing Characteristic Inventory
Key Characteristic # %1 Multi-tenancy 12 34%2 Scalability, Elasticity, On-Demand 23 66%3 Pay Per Use/Pay as You Go 14 40%4 External Data Storage 3 9%5 Service Delivery Model 11 31%6 Little or No Capital Investment,
Economies of scale, Cost Effective 5 14%
7 Rapid Acquisition and Deployment 1 3%8 Programmable 1 3%9 Web Centric, Internet Delivery, Ubiquity 18 51%10 Resiliency, Continuity, Reliability 2 6%11 Sustainability 1 3%12 Next Generation Grid,
Virtualization, & Utility Computing11 31%
Cloud Computing Characteristic Inventory Notes:
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Total of 15 articles reviewed (14 articles with one definition of cloud
computing. 1 article with 21 quotations of IT professionals regarding
the definition of the cloud).
Total of 35 definitions = (14 definitions of cloud computing + 21
quotations from IT professionals on the definition from their viewpoint).
# represents the total number times each characteristic appears within
the 35 definitions.
% represents the percentage of appearances = total number of
appearances / total number of definitions.
Based upon the assessment the following five characteristics, ranked in statistical
order, were identified as the foundation of cloud computing:
Scalability, Elasticity, On-Demand (66%): This refers to the flexible
provisioning of computing resources. According to NIST, this characteristic
enables capabilities to be rapidly and elastically allocated. Furthermore, this
allows resources to be quickly increased and decreased (P.Mell, T.Grance,
2011) according to fluctuating demands. The term “on demand” references
cases where provisioning is facilitated automatically without human interaction
or unilaterally through the consumer independently of the service provider
(P.Mell, T.Grance, 2011). In the consumer’s perspective this provides the
illusion of dynamic infinite resource availability and eliminates the necessity
for users to plan in advance for provisioning (Armbrust et al, 2009).
Web Centric, Internet Delivery, Ubiquity (51%): This aspect of cloud
computing describes the delivery and access methods of cloud computing.
The delivery of capabilities over the network (D.Zissis, D.Lekkas, 2011) is
fundamental to the cloud. Access to the resources in the cloud is achieved
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through devices such as mobile phones, laptops, and PDAs (D.Zissis,
D.Lekkas, 2011).
Pay per Use/Pay as you go (40%): This terminology describes the
foundational expense model of public cloud derived from the capability to
elastically scale and measure resource allocation. At a high level public cloud
refers to 3rd party vendor delivery of computing services. This concept will be
described in further detail in subsequent sections. Similar to the existing utility
model, the cost of services is directly correlated with consumption of
resources. As public cloud is becoming increasingly prevalent across the
personal, consumer and business computing realms “some works have
perceived the likelihood of cloud computing becoming the fifth utility after
electricity, water, gas, and telephone” (S.C. Misra, A. Mondal, 2011).
Multi-tenancy (34%): This aspect of cloud computing refers to the sharing of
resources between different users (M. Chung, J. Hermans, 2010). This is
facilitated through the pooling of physical and virtual resources which are
dynamically assigned and reassigned according to consumer demands. Cloud
services provided are location independent as the customer generally does
not have complete knowledge or control over the exact location of the
resources provided (P.Mell, T.Grance,2011).
Service Delivery Model (31%): This describes the cost structure and delivery
methods of public cloud whereby computing capabilities are delivered as a
service over the network. As a result, costs models are shifted away from
capital expense and toward operating expense. A 3 rd party vendor owns and
maintains computing resources therefore billing subscribers for usage. Thus,
users purchase capabilities rather than resources (R. Dowler, 2010) hence
adhering to a service delivery model.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Next Generation Grid, Virtualization, and & Utility Computing (31%): This
refers to the evolution of cloud computing described within the section 1-B
part I on page 10. As described previously, this attribute is derived from the
convergence of capabilities offered by the previous technology platforms.
Cloud Service Delivery and Deployment Models: In contrast to the vast
divergence of cloud computing characteristics, the types of core service delivery and
deployment models are strongly correlated throughout published literature. This
indicates less variability in relation to the definition of these two components of cloud
computing. Three of the four defined cloud service delivery models are generally
accepted within the concept of cloud computing: Software as a Service (SaaS),
Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). This is
illustrated by the 100% representation of these models within the literature reviewed.
One additional service model introduced, Process as a Service (Praas) received
minimum recognition in comparison to the three models previously noted. Similarly,
cloud computing deployment types consist of three commonly accepted models:
public, private and hybrid. Although private cloud is generally accepted, whether it is
appropriate to categorize this model as cloud computing has been debated amongst
various parties in the field. This is a result of the lack of a generally accepted
definition within the industry as highlighted within earlier sections. Additionally, the
community and government cloud deployment models are mentioned conservatively
within the literature published.
Similar to the OSI network model, a layer concept is leveraged to depict the service
delivery framework of the cloud. The subsequent cloud service delivery model
definitions are proposed by the International Systems Audit Control Association
(ISACA):
Figure 7 - Cloud Service Delivery Framework
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SaaS: “Capability to use the provider’s applications running on cloud
infrastructure. The applications are accessible from various client devices
through a thin client interface such as a web browser (e.g., web-based e-
mail)” (ISACA, 2011).
PaaS: “Capability to deploy onto the cloud infrastructure customer-created or
acquired applications created using programming languages and tools
supported by the provider” (ISACA, 2011).
IaaS: “Capability to provision processing, storage, networks and other
fundamental computing resources, offering the customer the ability to deploy
and run arbitrary software, which can include operating systems and
applications. IaaS puts these IT operations into the hands of a third party”
(ISACA, 2011).
PraaS: This is in reference to leverage of cloud applications for business
process (G.Harris, E.Alter, 2010). An example of this is the integration of an
organization’s complete human resource process across multiple applications
serviced from the cloud. It is probable that the close relationship of this
concept to SaaS is the reason for the minimal recognition amongst other the
other platforms.
Similar to the pre-existing concept of the intranet versus the internet, public, private,
and hybrid cloud refer to internal and external access concepts.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
IaaS
PaaS
SaaS
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Private: “The cloud infrastructure is operated for a private organization. It may
be managed by the organization or a third party, and may exist on premise or
off premise” (D.Zissis, D.Lekkas, 2011).
Public: “The cloud infrastructure is made available to the general public or a
large industry group and is owned by an organization selling cloud services”
(D.Zissis, D.Lekkas, 2011).
Hybrid: “The cloud infrastructure is a composition of two or more clouds
(private, community, or public) that remain as unique entities, but are bound
together by standardized or proprietary technology, that enables data and
application portability” (D.Zissis, D.Lekkas, 2011).
Community/Government: “The cloud infrastructure is shared by several
organizations and supports a specific community that has communal
concerns (e.g. mission, security requirements, policy, and compliance
considerations). It may be managed by the organizations or third party, and
may exist on premise or off premise” (D.Zissis, D.Lekkas, 2011).
Section 2-C Theoretical Underpinning of the Cloud Computing
Research objective 2: Identify management implications of cloud computing to lay the foundation for the framework of analysis
The anomaly of cloud computing can be articulated through a variety of
strategic and change management theories, models and frameworks. This is
because change and strategy is the foundation of the emerging cloud movement. In
order to leverage the cloud, enterprises must strategically and effectively implement
change within their IT departments to derive the prospective benefits of cloud
computing. The theories and models discussed within this section will described the
business management implications of the cloud.
The resource based model of competitive advantage summarizes the
foundation of the cloud computing trend. This theory asserts the connection between
an organization’s resources and its performance. Furthermore, this model argues
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that above-average profitability is derived from the effective deployment of superior
or unique resources that allows the firm to have lower costs or better products as
opposed to tactical maneuvering or product positioning (Burnes, 2009). In alignment
with the resource based model, many organizations are leveraging cloud computing
in order to effectively deploy resources. Therefore, enabling the enterprise to lower
costs as well as release improved products. This anomaly is discussed in further
detail within the strengths section of the SWOT analysis below.
SWOT Analysis:
The Decision Support Systems journal leverages the S.W.O.T. analysis to
describe the characteristics and implications of cloud computing. These themes are
categorized into strengths, weakness, opportunities and threats. The section below
discusses the analysis offered by this journal along with related commentary from
other academic authors and industry publications.
Figure 8 - Cloud S.W.O.T. Analysis
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Strengths (Benefits, Drivers):
*Scalability, resource usage efficiency, ROI, cost-benefits maximization, cost reduction
A significant correlation is present between the characteristics, strengths and
drivers of cloud computing. Similar to the numerous characteristics there are also
various strengths attributed to the cloud. Many of the characteristics can similarly be
categorized as strengths and therefore drivers of cloud computing. As depicted by its
prominence within the characteristic analysis in section 2-B, immediate scalability is
a significant strength of cloud. From the service provider and consumer
perspectives, this provides a potential opportunity for a sizable return on investment
(ROI). As noted by Misra and Mondal in the Mathematical and Computer Modeling
Journal, “profitability depends on the amount of utilization of the existing resources.
A very large number of very underutilized (too much over provisioning) server
resources leads to a large amount of wastage and hence makes it suitable for using
cloud services” (S.C.Misra, A. Mondal, 2011). The underutilization of computing
resources is a problematic issue within enterprises. According to the Decision
Support Systems journal, in 2000 on average organizations “spent over 45% of
capital equipment budgets on IT however, only 6% of the server capacity was
utilized.” The article expounds upon the issue of return on capital investment
illustrated within the example by offering a hypothetical cost-benefit analysis. The
author assumes that the life-span of an average server is 3 years. Furthermore, the
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Strengths*Scalability *Resource usage efficiency* Return On Investment (ROI)*Cost-benefits maximization*Cost reduction
Weaknesses*Delivery on expected ROI *Data security and privacy*Business continuity
Opportunities*Developing economies to leap frog old technology*Small & medium business technology leverage
Threats*Resistance to IT Change *Data security, privacy issues, legal and regulatory issues
Cloud SWOT
Page 27
author asserts that the infrastructure and energy cost alone over the lifetime of a
server significantly exceeds the initial purchase price (S. Marston et al, 2011).
Therefore, this results in a negative return on investment. The cloud model presents
the opportunity to increase the ROI by facilitating the efficient leverage of existing
resources through scalability. As mentioned earlier, this attribute of the cloud
enables IT organizations the flexibility to dynamically allocate resources and services
in alignment with variable demand requirements (S. Marston et al, 2011). This
capability maximizes utilization through the free flow of resources within the
enterprise. Therefore, this facilitates the ability to derive increased benefits from IT
capital expenditures thus optimizing the ROI.
The benefit of scalability extends beyond efficient resource utilization and into
the reduction of capital and labor expenditures. Furthermore, the capability to scale
resources facilitates the multi-tenancy attribute of the cloud. As previously noted, this
refers to the ability to share existing resources amongst multiple parties. This
decreases the capital necessary to meet consumer needs therefore resulting in
reduced capital acquisition. Reduced acquisition results in the reduction of overall IT
costs.
From an IT spending perspective, according to Microsoft Corporation in figure
9 the average company spends more than half (53%) of their budget on
infrastructure. Less significant portions of spending are composed of existing
application maintenance (36%) and new application development (11%). Existing
application maintenance “includes update and patching labor, end user support, and
license fees paid to the vendor.” Therefore, the most significant cost savings for
organizations employing scalability and multi-tenancy is in relation to infrastructure
(Microsoft, 2010) through the reduction of capital acquisition such as servers. In
addition to reduced capital acquisition costs, labor costs are also significantly
decreased as these costs are directly related to the capital requirements. This is due
to the reduction of labor requirements needed to design, procure, build and maintain
hardware and software platforms (IBM, 2009).
Figure 9 - IT Average Spend
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(Microsoft, 2010)
The benefits mentioned above are applicable to all cloud deployment models:
public, private, and hybrid. However, organizations leveraging the public cloud are
able to further exploit the benefits of cost reduction through outsourcing. Enterprises
that leverage public cloud contract out their IT operations to a 3 rd party vendor. Thus
transforming the company’s IT solutions into a service based delivery model.
Furthermore, the service based model of public cloud allows enterprises to “treat IT
as an operational expense” (S. Marston et al, 2011) through the virtual elimination of
up front capital expenditures, labor and maintenance costs associated with IT.
Furthermore, the public cloud offers a consumption based billing model, known as
pay-per-use, which allows consumers to pay only for the resources utilized. In
addition to cost reduction, the public cloud alleviates the company’s IT department of
responsibility thus allowing the organization to shift focus to value added activities
such as software development.
The strengths of the cloud model offers a plethora of benefits not mentioned
within this review such as improvement of communication and collaboration,
business process standardization, and the improvement of analytical capabilities.
However, as the cloud computing industry is in the initial stage of growth the central
focus is on tangible ROI and cost saving benefits. This is evident through the heavy
focus upon the cost reduction component of the cloud within academic journals and
industry reports thus the focus within the literature review for this study. As the
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market matures, it is reasonable to assume that cost benefits will eventually become
subject to the law of diminishing returns therefore the focus will shift to other benefits
such as those previously mentioned.
W eakness (Inhibitors):
*Delivery on expected ROI, data security and privacy, business continuity
Although the cloud offers the potential for cost savings it is not always the
most economical. Misra and Mondal propose within the Mathematical and Computer
Modeling journal that from an infrastructure perspective the potential benefits of
scalability are contingent upon the resource composition of the organization. The
significant economic benefits of cloud computing that are reported by various parties
are only applicable in the case that the IT resources of the organization are large and
substantially under-utilized. Conversely, as articulated by Misra and Mondal “small
yet perennially well utilized servers would not be economical if taken to the clouds”
(S.C.Misra, A. Mondal, 2011).
In addition to delivery upon expected ROI, a myriad other issues will serve as
inhibitors to the cloud. These mainly relate to the leverage of the public cloud. Two
prominent issues that must be resolved relating to the viability of the public cloud are
concerning data control and business continuity. As noted in various articles,
organizations are “wary” of the implications regarding the “loss of physical control”
over data that is put into the cloud (S. Marston et al, 2011). This can pose various
data privacy and security risks that can be damaging to the client organization if data
is compromised. An ongoing survey conducted by IDC research firm cites that
almost 75% of IT executives and CIO’s are primarily concerned with security
followed by performance and reliability (Wired.com, 2009). Additionally,
organizations are equally concerned about “entrusting mission-critical applications”
to the cloud fearing that providers will not be able to uphold the “high quality service
and availability guarantees that are demanded in such environments” (S. Marston et
al, 2011).
O pportunities (Benefits/Drivers):
*Developing economies to leap frog old technology, small & medium business technology leverage
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Perhaps the most significant opportunities within the cloud computing industry
are noted within the journal authored by Misra and Mondal. This is the potential for
developing economies to reap the benefits of advanced information technology
without the significant up front investments that have hindered past efforts. It is
projected that the anomaly of cloud computing within developing nations may have
an impact on computing similar to the impact of mobile phones upon the
communications (S.C. Misra, A. Mondal, 2011). This is commonly known as the
“Leap Frog” effect referring to the ability of developing countries to surpass the
stages of previous technology with emerging technology innovations. In addition, a
substantial opportunity exists in the cloud market in relation to small and medium
enterprises. According to AMI partners, small and medium business cloud computing
spend is project to amount to over $100 billion by 2014 (S.C. Misra, A. Mondal,
2011). This is due to the opportunity facilitated through the cloud for smaller
organizations to command larger technology solutions in comparison to their
budgetary constraints.
Threats (Inhibitors):
*Resistance to IT Change, data security, privacy issues, legal and regulatory issues
The fundamental threat to the cloud computing industry is user acceptance
and adoption due to many issues and concerns. Although cloud computing has been
widely accepted amongst small and medium enterprises, large organizations are
hesitant to embrace the change due to concerns such as data privacy and security.
In addition, industry level issues exist that also threaten the development of the cloud
on a global scale. The lack of national and international standards presents a
considerable challenge in relation to cloud adoption. However, perhaps the biggest
challenge that will impede cloud adoption is regulatory issues at the local, national,
and international level. Aside from data security, privacy, and regulatory concerns, IT
organizations may resist change due to the feeling that cloud computing is a threat to
their corporate cultures or job security (S. Marston et al, 2011).
Lewin’s Force Field Model
Deloitte leverages Lewin’s Force Field change management model as a
platform to describe the fundamental issues underlying the emergence of cloud
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computing. Therefore, the company identifies the key forces driving and inhibiting the
movement of enterprises to the cloud.
Figure 10 - Cloud forces of Change
(P. Callewaert et al, 2010)
As discussed in the S.W.O.T. analysis, Deloitte’s model incorporates the cloud
characteristics into the drivers and inhibitors of cloud computing creating a depiction
of the relationship between the four factors. The characteristics of the cloud enable
the following benefits thus serving as drivers of change:
Increased ROI through quicker payback on capital expenditures.
Lower upfront investment costs.
Optimization of efficient resource usage through scalability or multi-tenancy.
Transfer of cost to a vendor.
Accelerated deployment of applications driving quicker to market solutions.
Greater flexibility and scalability of IT resources such as server and software
utilization thus driving cost savings and ROI.
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Facilitation of the company’s ability to focus on core competencies due to the
outsourcing model of the public cloud.
Conversely, the characteristics of the cloud are also related to the inhibitors of
change. For example, the transition to the outsourced (highly abstracted) public
cloud model is inhibited by factors such as data security, control and compliance
issues. Therefore, these factors contribute to the resistance to IT change.
Section 2-B summarizes the considerable ambiguity and diversity within the
definition of cloud computing. Furthermore, the chapter highlights the divergence of
definitions and conceptual frameworks within the cloud industry. The theoretical
frameworks in section 2-C discusses the significant management implications related
to cloud computing thus alluding to the major drivers and inhibitors of change.
Furthermore, the main contribution of section 2-C is the foundation for understanding
the anomaly of cloud computing from a business management perspective. The
S.W.O.T analysis brings forth the concept that cloud computing is an industry rather
than a technology. Therefore cloud computing can be analyzed through strategic
frameworks to derive the strengths, weakness, opportunities, and threats related to
the characteristics of the cloud. Furthermore, this concept will allow organizations to
analyze cloud computing from a strategic perspective facilitating the ability to
understand and strategically implement the cloud platform in such a way that will
enhance the organization’s competitiveness. Lewin’s forces of change theory,
describes the change management concepts fundamental to understanding the
shifting technology paradigm resulting from the rise of cloud computing. This study
argues that this model is paramount to understanding the implications of the cloud
computing paradigm from both the generalized and detailed approach. Therefore,
this model will be leverage throughout the rest of this study to bring forth the analysis
and conclusions within this dissertation.
Although section 2-C alludes to the implications of cloud computing, section 2-
D will summarize industry reports studying and measuring the impact of
phenomenon of cloud computing described in section 2-C. These studies investigate
the global implications of the cloud computing industry in relation to: adoption trends,
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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drivers and inhibitors thus an analysis of these reports will serve as a platform for the
primary research completed within Thailand.
Section 2-D: Global Cloud Computing Research Trends
Research objective 3: Identify the significant implications of cloud computing upon enterprises within North America and Europe via secondary research.
The emergence of the cloud computing has resulted in various global research
studies in order to investigate and understand this trend across multiple variables:
countries, sector, industry, and organizational size. The objectives of published
research efforts have been to understand:
The global cloud computing adoption trends.
The drivers (benefits) and inhibitors (challenges) of cloud computing.
These studies have leveraged surveys and interviews of various sample sizes
across the breath of variables mentioned above as the fundamental research
method. Summarizations of two studies are included within this section as a
representation of the common research trends regarding the content, structure and
conclusions of the cloud computing industry reports published. Additionally, these
studies were used as a platform to identify the trends in countries outside of S.E.
Asia thus serving as a platform to identify areas of research in this study relating to
cloud computing within Thailand.
2010 World Economic Forum (WFM) Study
In 2010, a report was released by a research partnership between the World
Economic Forum (WFM) and Accenture. This report discussed the findings resulting
from the initial phase of a 3 year research project. This initiative stemmed from a
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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directive posed by the IT Governors at the 2009 annual World Economic Forum
meeting in Davos, Switzerland. The overarching objective of the research
undertaken is “to develop a set of collaborative actions and identify policy and
industry recommendations that could steer the healthy development of cloud
computing.” In support of this, the study would specifically “develop a set of industry
and public policy recommendations that could help mitigate the uncertainties and
accelerate the benefits of cloud computing.” Furthermore, the project set out to
answer common questions held by stakeholders of the cloud globally (World
Economic Forum, 2010)
1. “What are cloud computing’s most important current and potential future
benefits for industry, governments, and society”? ( Drivers/Benefits)
2. “What might derail cloud computing’s progress”? (Inhibitors/Challenges)
3. “Are the overall benefits worth the risk”?
The research methods employed within the first stage of project consisted of
workshops, surveys and interviews conducted with cloud computing stakeholders
(“IT industry, corporate buyers of IT, government regulators, investors, academics,
journalists, and others”). The study covered North America, Europe, the Middle East,
Africa, and Asia Pacific (Japan and China exclusive of S.E. Asia). However, with
further analysis detailed below the research is substantially focused upon North
America and Europe. The overall objective of the WFM study was to obtain diverse
insights regarding the potential impacts of cloud computing thus identifying the key
drivers and enablers of the cloud as well as the barriers to its development (World
Economic Forum, 2010)
Figure 11 - WFM Survey Respondents
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(World Economic Forum, 2010)
Figure 11 above displays the demographics
of the participants in the WFM study. Three
significant anomalies are noted within the
data represented by the pie charts exhibited
above. These imply a considerable bias
within the conclusions derived from the
study. The combined percentage of North
American and European participants
accounted for 74%, slightly less than ¾, of
the sample population. Conversely, the
combined representation of non-western
world participants represented a total of
27%. Thus, this suggest a substantially western developed country perspective on
the topic of cloud computing. Furthermore, the American data represents 52% of the
total 74% western contribution. Hence 70% of the western world data segment is
from the United States. Consequently, the western developed country perspective on
cloud computing is substantially attributed to the United States.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Europe & America
74%
Asia 24%
Middle East2%
Africa1%
Respondent Geographic Rep-resentation
Figure 12 - WFM Study Demographics Analysis 1
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70%
30%
Western Developed Country Comparison
America
Europe
Figure 13 - WFM Study Demographics Analysis 2
In addition, within the organizational type pie chart cloud service provider
respondents are disproportionately represented amongst the other categories. More
specifically, a considerable disparity is especially prevalent between service provider
and cloud users. Cloud service providers represent nearly ½ of the respondents
(46%) within the study in contrast users are a mere 16% of the total population.
A large representative sample of cloud service providers within the population
of respondents suggests a substantial conflict of interest as well as a bias
perspective within the results of the study. Furthermore, this presents a challenge in
the pursuit of the objective to understand the “most important current and potential
future benefits for industry, governments, and society” as well as the balance
between the net benefit and risk (World Economic Forum, 2010). Due to the
incentive of sales, the cloud service providers may have the propensity to embellish
the benefits and diminish the risks. Consequently this may have a potentially
negative impact on the conclusions drawn from the study. In addition, the
comparative disparity of government/regulatory, academic, and client organizations
represented in the research jeopardizes the ability to effectively establish a set
applicable industry and public recommendations. As the collection of data is mainly
service provider oriented, this may also result in significant issues that are
overlooked due to the lack of perspective from the industry and client point of view.
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The criticisms summarized in this paragraph highlight the overarching issue of
imbalanced representation within the study.
Although the critical analysis of this report indicates a substantially
imbalanced representation of data influencing the conclusions, the diversity
regarding the unique implications of cloud computing is noted in the report. As the
report articulates, “According to this research, the barriers to adopting cloud
computing vary both by region of the world (North America, Europe, and Asia
Pacific) and by “stakeholder” group (user, government, and IT vendors)” (World
Economic Forum, 2010). Furthermore, the limited research gathered representing
countries outside of the western developed markets acknowledges the different
implications of cloud computing due to the unique conditions within these
environments. As articulated by the WFM report, “Emerging markets have their own
unique enablers and barriers to cloud computing” (World Economic Forum, 2010).
This is illustrated through the research finding that identifies the lack of connectivity
as a significant issue within developing economies in contrast to the security and
privacy concerns highlighted by western developed nations (World Economic Forum,
2010). These observations noted by the WFM warrant the need for additional
investigation into the Asian developing economies based upon unique conditions
within this region. Furthermore, these statements quoted from the WFM report
support the argument proposed above regarding the demographic representation
issue identified within the study.
WFM Key Findings:
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Definition, Knowledge, Understanding &
Perspective:
In a WFM focus group discussion 46%
of service providers noted that they believed a
lack of understanding of cloud computing by
customers is a “very serious” concern. The
report highlights the need for initiatives to
educate customers on the benefits of the
cloud (World Economic Forum, 2010).
(World Economic Forum, 2010)
Adoption Trends:
According to the WFM, cloud computing will have the most impact upon the
IT, telecommunications and media industries. Thus it is it can be assumed that
adoption trends will be considerably high in these industries (World Economic
Forum, 2010).
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Figure 14 - WFM Cloud Understanding Chart
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Figure 15 - WFM Cloud Impact by Industry
(World Economic Forum, 2010)
Benefits, Drivers:
As discussed in numerous reports a myriad of potential benefits exists related
to the cloud. The WFM has created a diagram that effectively illustrates a virtually
holistic picture of the potential benefits related to the cloud.
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Figure 16 - WFM Study Cloud Benefits
(World Economic Forum, 2010)
The study further explores the significance of cloud computing benefits globally from
the national and organizational perspectives.
From a global perspective the report concludes that companies of all sizes
and government institutions in both established and emerging economies will
achieve new levels of productivity and innovation. The report asserts that the cloud
will be the source of new jobs and will assist national progression through
addressing major healthcare, education and other societal issues. Additionally WFM
argues that the cloud will be a platform for emerging economies to “leapfrog to
higher levels of technological development through providing immediate and
affordable access to next generation applications, tools, and infrastructure.”
Therefore cloud computing is expected to have a substantial impact on the pace of
economic development in emerging economies (World Economic Forum, 2010).
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From an organizational perspective, “as expected, survey participants said the
major benefit of cloud computing is reducing IT costs – a large and often increasing
expense in every company but especially information intensive organizations such
as financial services and media.” Although participants of the study identified
lowering cost as a significant benefit, the ability to create new products and services,
and innovation were cited as the biggest advantage of cloud computing by
respondents (World Economic Forum, 2010).
Figure 17- WFM Study Most Significant Cloud Benefits
(World Economic Forum, 2010)
The following describes the benefits that were deemed as most important by the
participants within the study:
“Dramatically accelerating the way companies create new products and
services through enabling product development by allowing professionals
around the world to collaborate more effectively and access more powerful
and economical computer resources” (World Economic Forum, 2010).
“Increasing the ability of organizations to mine their data for important trend
information, such as customers’ changing needs and competitors moves in
the marketplace” (World Economic Forum, 2010).
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“Leveling the playing field between large and small companies by giving
companies of all sizes access to information technology that previously was
affordable for only the largest firms” (World Economic Forum, 2010).
Challenges, Inhibitors:
According WFM research, the barriers to adopting cloud computing vary by
both region of the world (North America, Europe, and Asia Pacific) and by
stakeholder group (user, government, and IT vendors). In North America and Europe
data security and privacy are the biggest barriers to cloud adoption. Conversely,
unlike their American counterparts, Europe cites vendor lock-in as amongst its most
significant barriers to adoption. However, North American does not view vendor lock-
in to be as significant of a barrier to adoption as compliance. On the contrary, Asia-
Pacific notes different barriers as significant inhibitors of cloud computing adoption.
The root cause of this divergence can be contributed to the differing environments of
each country (World Economic Forum, 2010).
Figure 18 - WFM Cloud Challenges by Country
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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(World Economic Forum, 2010)
Below is a comparison of how each country rates the significance of each barrier on a scale from 1- 4.
Figure 19 - WFM Top Cloud Challenges Rating by Country
Barrier Security Privacy Compliance Vendor-Lock inAmerica 1 2 3 4Europe 2 1 4 3Asia-Pacific 4 2 1 3
(World Economic Forum, 2010)
Overall, for clients of the cloud the biggest concern regarding cloud computing
related to security and data privacy. Placing private records in the public cloud
increases the risk of unauthorized access to confidential data. Sixty percent of
respondents to the WFM study cited security, privacy, and confidentiality concerns
as barriers to cloud adoption (World Economic Forum, 2010).
.
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Figure 20 - WFM Study Cloud Challenges
(World Economic Forum, 2010)
In addition to the barrier mentioned above, emerging economies also identified the lack of connectivity as a major challenge to cloud adoption.
Accenture Study:
In 2010, Accenture with the assistance of the Chinese Institute of Electronics
conducted an 18 month study to “discover the diverse ways organizations in the
Americas, Europe, Asia, and Australia are making and saving money through cloud
computing” (Harris and Alter, 2010). The data within the report consisted of:
Accenture’s Global Cloud Computing Survey (Harris and Alter, 2010).
Conversations with more than 40 executives and experts both in and outside
of Accenture (Harris and Alter, 2010).
Review of articles, studies and blog postings published by academic,
business and technology journals, websites, and research organizations
(Harris and Alter, 2010).
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The survey consisted of answers from 669 IT executives and other senior executive
decision makers within organizations in 9 countries within over 20 industries (Harris
and Alter, 2010). Similar to the WFM study the demographic representation in this
study is largely North American and European. Thirty percent, approximately 1/3, of
the representation in this research is attributed to the American demographic.
Figure 20- Accenture Study Respondent Demographic Analysis 1
30%
22%15%
9%
8%8%
7%
Demographic Represenation 1United States Europe China AustraliaBrazil Singapore Japan
*percentages have been rounded
Figure 21 - Accenture Study Respondent Details 1
Number Country Participants Percentage
1 United States 201 30%2 China 103 16%
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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3 Australia 60 9%4 Brazil 54 8%5 Singapore 51 8%6 France 50 8%7 Germany 50 8%8 Japan 50 8%9 United Kingdom 50 8%
10 Total 664 100%
*percentages have been rounded to the nearest whole number.
*Total number of participants by country was noted in the study.
The following major demographic domains are represented within this study:
North America (U.S) and South America (Brazil)
Europe (France, Germany, United Kingdom)
Australia
Asia Pacific (China and Japan)
South East Asia (Singapore)
A large representation within this study is also attributed to the European
demographic at 22%, approximately ¼ of the study. Consequently, the combined
North American and European representation is equivalent to 52%, slightly above ½, of the total population.
United States30%
Europe22%
China15%
Australia9%
Brazil8%
Singapore8%
Japan7%
Demographic Representation 2
Figure 22- Accenture Study Respondent Demographics Analysis 2Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Page 47
*percentages have been rounded to the nearest whole number.
The Accenture study reflects the same fundamental issue of the WFM study
with a representation that is partial to the North American and European perspective.
This lends to conclusions that are oriented toward the western developed world
perspective.
In contrast to the heavily western demographic focus, there is an absence of
concentration in relation to industry as illustrated within the figure below.
Figure 23 - Accenture Study Industry Respondents
(Harris and Alter, 2010)
Accenture Key Finding:
Adoption Trends:
The chart below describes the adoption trends reported by Accenture
according to country displaying percentage of respondents that have adopted cloud
computing in some respect. The graph segments the respondents that have
deployed cloud computing for critical applications versus those who have
implemented the cloud for non-critical applications. The United States has the
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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greatest overall adoption percentage (42%) for deployment across critical and non-
critical applications.
By Country & Region:
Figure 24 - Accenture Study Cloud Adoption Trends by Country
(Harris and Alter, 2010)
The following conclusions were derived based an analysis of the data above. The
chart describes the overall adoption trends (critical and non-critical) for each
overarching geographic region.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Figure 25 - Accenture Study Cloud Adoption Trends by Region
Country Participant Ratio PercentageUnited States 84/201 42%
*Europe 80/150 53%
South America 37/54 67%
*Asia Pacific 40/153 26%
S.E. Asia 26/51 52%
Australia 30/60 50%
*percentages have been rounded to the nearest whole number.
*Ratio = (number of country participants using cloud/total number of country participants)
*Europe:
Figure 26 - Accenture Study Europe Region Cloud Adoption
Country Participant Ratio PercentageFrance 34/50 68%
Germany 33/50 65%
UK 13/50 26%*percentages have been rounded to the nearest whole number.
*Asia
Figure 27 - Accenture Study Asia Region Cloud Adoption
Country Participant Ratio PercentageChina 11/103 11%
Japan 29/50 60%*percentages have been rounded to the nearest whole number.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Based upon this analysis the overall global cloud computing adoption rate is
relatively substantial with an average of 48% across the all regions. South America
(67%) has the highest adoption rate while conversely the lowest adoption rate exists
within the Asia Pacific region (26%).
By Industry:
Figure 28 - Accenture Study Cloud Adoption by Industry
Figure 29 – Accenture Study Industry Cloud Adoption Trend Statistical details
Industry Total PercentageFinancial Services 50%
Health & Public Services 43%
High Tech and communications 45%
Products 43%
Resources 41%
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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*percentages have been rounded to the nearest whole number.
According the Accenture report, the high technology and communications
sector generally displays an above average interest in leveraging private cloud
computing. This is due to the interest in using the cloud to develop and provide cloud
services. In addition, IT firms often have large IT infrastructures that result in high
costs therefore this has led to the industries increased interest in the cloud. In
relation to financial services, Accenture asserts that this sector displays high interest
in cloud adoption. Certain aspects of the cloud are most significant in particular to
the financial services industry therefore driving cloud adoption:
As the financial services industry is information intensive the increased data
analytics capability offered by the cloud is an attractive benefit.
Scalability to meet spikes in demand on websites and internal systems.
75% of executives acknowledge that clouds enable processes that are not
otherwise cost-effective and feasible.
By Cloud Computing Model:
As displayed within the chart below, the average percentage of respondents
within this study leveraging the cloud ranges between 40- 50% (sum of critical and
less critical applications use) thus this indicates a relatively strong adoption trend
across all platforms.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Figure 30 - Accenture Study Cloud Platform Adoption Trends
Benefits, Drivers:
According to the Accenture study, the following are the most significant
benefits driving cloud computing adoption. The rank was based upon the most (very)
important category defined within the chart below:
1. Reducing/avoiding cost of maintaining own IT infrastructure (36%)
2. Reducing up-front IT costs/capital expenditures (35%)
3. Providing standardized, efficient business process (29%)
4. Providing IT services where IT infrastructure, resources or labor is limited
(28%)
5. Changing business processes more rapidly (27%)
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Figure 31 - Accenture Study Cloud Benefits
Challenges, Inhibitors:
According to the Accenture study, the following are the most significant
challenges inhibiting cloud computing adoption. The challenges were ranked based
upon the percentage of participants that categorized the factor within the very
concerned category:
1. Data security/privacy/confidentiality issues (44%)
2. Reliability/uptime/business continuity issues (30%)
3. Compliance with legal, regulatory and auditing requirement (29%)
4. Integration with existing system (25%)
5. Legal or regulatory ambiguity (24%)
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Figure 32 - Accenture Study Cloud Computing Challenges
As expected, data security, privacy, and confidentiality was the top rated issue
amongst participants in the study. A country comparison was conducted to analyze
the level of concern regarding this issue. The following countries rated data security,
privacy and confidentiality as their top concern – (very concerned):
United Kingdom (59%)
United States (50%)
China (59%)
Singapore (49%)
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Figure 33 - Accenture Study Cloud Challenges by Country
Section 2-E: Literature Review Findings and Conclusions
The subsequent sections will summarize the literature review findings and
conclusions as well as discuss the relationship between the literature review analysis
and the primary research conducted in chapter 3. Furthermore, this section will
describe the framework for the primary research analysis derived from secondary
research analysis.
Based upon the cloud computing literature analyzed within the above sections
the following overarching themes were identified.
Figure 34 - Literature Review Themes
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
# Themes Description
1 Concept/Definition What is cloud computing?
2 Adoption TrendsWho is adopting cloud computing and how is it being
leveraged?
3 Benefits, Drivers
What are the drivers of cloud computing adoption?
What are the benefits enterprises are deriving from
cloud computing?
4 Challenges, InhibitorsWhat factors are acting as barriers to cloud computing
adoption and implementation?
Page 56
Theme 1: Conceptual Framework, Definition
Research Objective 1: Review existing academic literature to derive the definition of cloud computing.
As identified within section 2-B, the definition of cloud computing is a very
nebulous concept. This is attributed to the complex conceptual framework of the
cloud as well as the confusion that exists within the industry regarding the
appropriate definition. As mentioned previously, a study completed by Deloitte cited
22 different definitions of cloud computing therefore the industry has not identified a
generally accepted cloud definition. The following is a sample of definitions that
exists by recognized academics and industry experts:
Decision Support Systems Journal: “The emergence of the phenomenon
commonly known as cloud computing represents a fundamental change in the
way information technology (IT) services are invented, developed, deployed,
scaled, updated, maintained and paid for” (S. Marston et al, 2011).
“More specifically cloud computing is the product of the convergence of two
overarching technology trends, IT efficiency and business agility” (S. Marston
et al, 2011).
NIST: “Cloud computing is a model for enabling ubiquitous, convenient, on-
demand network access to a shared pool of configurable computing
resources (e.g., networks, servers, storage, applications, and services) that
can be rapidly provisioned and released with minimal management effort or
service provider interaction. This cloud model promotes availability and is
composed of five essential characteristics, three service models, and four
deployment models” (P. Mell, T.Grance, 2011).
Journal of Network and Computer Applications: “Gartner defines cloud
computing as “ a style of computing where massively scalable IT-enable
capabilities are delivered ‘as a service ’ to external customers using internet
technologies” (S. Subashini, V Kavitha, 2011).
Accenture: “Dynamic provisioning of IT capabilities, whether hardware,
software or services, from a third party over the network” (D. Benton, W
Negm, 2011).
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Based upon these definitions and the analysis in Section 2-B, this study will
leverage the following concept and definition of cloud computing based upon the
literature review analysis. Furthermore, the concept and framework described below
will be leveraged to judge the knowledge and understanding of cloud computing as
well as for the discussion of adoption trends within Thailand. The concept and
definition of cloud computing is very complex and depend upon a particular parties
leverage of the various components within the framework. During primary research
if parts of the following concepts are alluded to by participants, this will be
considered having knowledge and understanding of cloud computing.
The definition is comprised of two fundamental components, concept and framework.
Concept:
Cloud computing is a concept of computing or “a style of computing” (S. Subashini, V
Kavitha, 2011) that has evolved from the convergence of previous technology
platforms. The cloud “represents a fundamental change in the way information
technology (IT) services are invented, developed, deployed, scaled, updated,
maintained and paid for. The cloud enables “dynamic provisioning of IT capabilities,
whether hardware, software or services over the network” (D. Benton, W Negm,
2011). The fundamental concept of the cloud is the product of the convergence of
two overarching technology trends, IT efficiency and business agility” (S. Marston et
al, 2011).
Framework:
Cloud computing “is a model for enabling ubiquitous, convenient, on-demand
network access to a shared pool of configurable computing resources that can be
rapidly provisioned and released. The framework of the cloud encompasses five
essential characteristics, three service models, and four deployment models” (P.
Mell, T.Grance, 2011). These “IT enabled capabilities are delivered ‘as a service’
using internet technologies” (S. Subashini, V Kavitha, 2011).
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In light of the debate, this paper takes the stance that public and private
implementation models are considered cloud computing due to the fact that
characteristics of the cloud can be obtained in both models. Furthermore, for this
paper the three service delivery and implementation models mentioned above are
considered the part of the cloud framework as they have been generally accepted
amongst all literature reviewed for this study.
Theme 2: Global cloud computing adoption and leverage Trends
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Multi-tenancy
Characteristics
Service Models
SaaS
Paas
IaaS
Scalability, Elasticity, On Demand
Pay-per-use
Pay-as-you-go
Service delivery model
Web Centric
Next Generation Grid, virtualization, & Utility
Computing
Deployment Models
Hybrid
Private
Public
Page 59
As illustrated within the studies, relatively substantial adoption rates across all
cloud computing service delivery and implementation models exists for most of the
countries represented. Conversely, low cloud adoption exists within the Asia pacific
region compared to other regions of the world represented within the WFM study.
Although adoptions rates are low within Asia Pacific, Japan displays a substantial
adoption rate of 60% indicating a substantial adoption rate within this country. The
Accenture study touches briefly on S.E. Asia discussing adoption rates within
Singapore which displays a significant level of cloud adoption according to the
respondents of this study. In relation to industry, the financial services and
telecommunications industry display significant interest in cloud reflected by
substantial adoption trends within these industries.
Based upon these findings this study will seek to discover the adoption trends of the
diverse cloud computing implementation and service delivery models within Thailand
specifically within the financial services and telecommunications industry. These
trends will then be compared with the country and industry adoption trends
mentioned above discovered via secondary research.
Theme 3: The drivers and inhibitors of cloud computing
Benefits & Drivers
The following three benefits were cited in the WFM study as the top
drivers/benefits of the cloud: new product and services enablement, collaboration
and information sharing, reduced costs. The Accenture study further segments the
benefit of cost reduction into the following which are rated as top benefits by the
participants:
1. Reducing/avoiding cost of maintaining own IT infrastructure
2. Reducing up-front IT costs/capital expenditures
The Accenture study also brought forth the following additional benefits cited as most
important.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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3. Providing standardized, efficient business process
4. Providing IT services where IT infrastructure, resources or labor is limited
5. Changing business processes more rapidly
As argued within the WFM and Accenture study, cloud computing will have
the following impacts upon each of the parties mentioned. The cloud will facilitate
new levels of productivity and innovation for companies of all sizes, government
institutions, emerging and established economies (World Economic Forum, 2010)
through increased communication and collaboration capabilities. In particular to
emerging economies, the cloud will facilitate the “leap frog” effect allowing these
countries to surpass older primitive technology and leverage newer state of the art IT
capabilities. At a national level, research found that the cloud will create new jobs,
national growth and progress enabling countries to address major societal issues
such as healthcare and education. The WFM and Accenture studies argue that the
cloud will have the greatest impact on the media, IT and financial industries. Within
the IT industry, cloud will enable companies to relieve heavy cost burdens from
infrastructure as well as facilitate new business opportunity through the ability to
develop and provide cloud to external clients. Within information intense industries
such as media and financial servers the cloud also alleviates high cost burdens
however additional benefits are also associated with cloud computing within these
industries. The financial services industry has additionally noted increased data
analytics capability, scalability to meet varying demands, and the enablement of new
business process as benefits of the cloud. From an organizational size perspective,
cloud computing is a break thru for small and medium organization allowing them to
command IT resources that may not be able to leverage due to resource constraints.
Based upon the most significant drivers/benefits identified from the North American,
European, and Asia-Pacific perspective the following factors will be investigated
within Thailand to determine the similarities and differences within this environment.
1. Cost Reduction
Reducing/avoiding cost of maintaining own IT infrastructure
Reducing up-front IT costs/capital expenditures
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2. Scalability of IT resources to meet varying demands
3. Enablement of new products, services, business processes
4. Increased collaboration and information sharing
5. Providing standardized, efficient business process
6. Increased Data analytics capability
The telecommunications and financial services industry will be analyzed within
Thailand based upon the justification presented within chapter 1 of this study. In
addition, the findings in previous studies highlight the telecommunications and
financial services industries as high adopters and significant benefiters of the cloud
thus further supporting the investigation within Thailand.
Inhibitors and challenges:
As noted within the WFM study, barriers to adopting cloud computing vary by region
and stakeholder. In general, the top challenges/concerns noted within the Accenture
study are noted within the table below rated by country.
Figure 36 - Cloud Computing Challenges Country Rating
Barrier Security Privacy Compliance Vendor-Lock inAmerica 1 2 3 4Europe 2 1 4 3Asia-Pacific 4 2 1 3
In addition to these countries, security, privacy, and compliance issues was also
cited as a main concern within Singapore.
The following challenges were generally cited as most significant by participants in
the Accenture study:
1. Data security/privacy/confidentiality issues
2. Reliability/uptime/business continuity issues
3. Compliance with legal, regulatory and auditing requirement
4. Integration with existing system
5. Legal or regulatory ambiguity
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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Additional issues noted within the WFM study were ICT challenges for emerging
economies and lack of knowledge and understanding from the client perspective.
Based upon the significant challenges/inhibitors identified from the North American,
European, and Asia-Pacific perspective the following factors will be investigated
within Thailand to determine the similarities and differences within this environment.
1. Data security/privacy/confidentiality issues
2. Reliability/uptime/business continuity issues
3. Compliance with legal, regulatory and auditing requirement
4. Integration with existing system
5. Legal or regulatory ambiguity
6. ICT environment challenges
7. Knowledge and understanding of cloud computing
Literature critique:
As discussed within section D, studies published on cloud computing are
North American and European focused. This is illustrated within the WFM and
Accenture study. Within the WFM study, 74% of participants were from North
America or Europe. Similarly, within the Accenture study 52% of the respondents
represented America or Europe. Although the Asian demographic has received
some attention within studies it is very limited in scope. For example, within the WFM
report Asia represented a mere 24% of the study. The limited research that does
examine Asia focuses upon Asia Pacific (Japan and China) excluding S.E. Asia.
Those studies that include S.E. Asia limit the research to Singapore. Although
Singapore is technically considered S.E. Asia by geographic location the country’s
characteristics are aligned with the western developed nations. Furthermore,
Singapore is one of the four Asian Tigers with unique qualities such as an advanced
technology, infrastructure, and efficient government. Due to this fact, Singapore
represents an anomaly in S.E. Asia and is not an adequate representation of the
overall trends. In addition, these research reports are heavily generalized and
covering a wide range of variables: industry, country, sector and organizational size
within a single study. Therefore, the conclusions offered from prior research are from
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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a generalized “one size fits all” perspective. Furthermore, the findings of prior
research are primarily applicable to North America and Europe.
Figure 37 - Literature Review Studies Coverage
To address the gaps within previous research, this study will examine
the identified implications (adoption trends, benefits, and drivers) of cloud computing
of previous research within Thailand specific to large enterprises within banking and
telecommunications industries. Furthermore, the research will examine the banking
industry from the public and private sector. The study will leverage an exploratory
qualitative research analysis approach in order to explore and identify the
overarching trends of cloud computing within S.E. Asia utilizing Thailand as a
platform for discovery. The following framework derived from the analysis of
secondary research above will be leveraged within the analysis of primary research
findings to determine the indicators of cloud computing trends within Thailand and
greater S.E. Asia.
Framework for Primary Research Analysis:
The following framework developed from the secondary research analysis above will
be leveraged for the analysis of the primary research conducted in Thailand. Eleven
of the factors are the most significant drivers and inhibitors of cloud computing
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Prior Cloud Computing Literature and StudiesGeneralalized: industry, country, sector, organizational size
Current Disseration Research More focused: Thailand, Banking and Telecommunications, Public & Private
Sector, Large organizations
Future StudiesIncreased Focus
Page 64
identified from the North American and European perspective. The additional 2
(highlighted in green) of the 13 factors below were briefly noted as challenges within
the WFM study for emerging economies. These factors will be tested in Thailand to
determine their applicability and for the discussion of findings.
Figure 38 - N. American and European Cloud Computing Change Model
Benefits (Drivers) Challenges (inhibitors)
Note: Knowledge and understanding will be measured through the cloud computing concept and framework defined within Theme 1 of the conclusion on page 57.
As depicted in the above framework above, the benefits outweigh the
challenges from the North American and European perspective of cloud computing.
Through primary research, it will be determined if this is the same case for Thailand.
Additionally, the research will aim to answer the following questions derived from the
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Data Security, Privacy, Confidentiality IssuesReliability, Uptime, Business continuity
Compliance with legal, regulatory, auditing
Integration with existing systems
Legal and regulatory ambiguity
ICT environment challenges
Knowledge and Understanding
Cost ReductionScalability to meet varying demands
Enablement of new products, services, and business processes
Increased collaboration and communications
Standardized and efficient business
Increased Data analytics
North American and European
Cloud Computing Change Factors
Page 65
gaps identified through the assessment of secondary research. These will be
answered by the primary research conducted within this study:
How do IT managers define cloud computing within Thailand? What is their
knowledge, understand and perspective on the trend?
Who is adopting cloud computing (adoption trends) within Thailand and how
are they leveraging it?
What are the drivers (benefits) and inhibitors (challenges) of cloud computing
adoption for enterprises within Thailand?
The analysis of secondary research has identified the significant implications
of cloud computing upon enterprises in North America and Europe as discussed
within the objectives of the research mentioned in chapter 1 of this report. Chapter 3
will discuss the research methodology employed to collect primary date based upon
the factors identified within the secondary research analysis. Chapter 4 will discuss
the findings of the primary research and will analyze the findings of the research
based upon the analysis framework described above. The chapter will then conclude
upon the analysis and provide recommendations.
Chapter 3 Research Methodology:
Section 3-A: Introduction
The subsequent sections within this chapter briefly describe the research
strategy chosen to investigate the identified problem. This will be discussed within
the general context of research theory and philosophy with a focus on primary data
collection methods employed within the study. In the discussion of data collection,
justification will be presented for the methods leveraged within the research project.
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Section 3-B: Research Aims
The following research question previously defined within the introduction
section will be answered with through the primary research conducted within this
study as well as the completion of objectives 3 within the findings section and 4
within the analysis section of Chapter 4
Overarching Research Question:
Based upon the significant implications of cloud computing on the technology
environment within North America and Europe, what are its implications within
Thailand?
Figure 39 - Dissertation Objectives Completed
# Objective Coverage Status1 Review existing academic literature to derive the
definition and framework of cloud computing.
Section
2-B
2 Identify management implications of cloud computing to
lay the foundation for the framework of analysis.
Section
2-C
3 Identify the significant implications of cloud computing
upon enterprises within North America and Europe via
secondary research.
Section
2-D
4 Based upon the factors identified, conduct primary
research to identify the implications of cloud computing
upon banking and telecom enterprises within Thailand.
Section
4-C Part I &
Part II
5 Compare and contrast the Thailand, North American and
European cloud computing implications.
Section
4-C Part III
6 Conclude upon the critical success factors and key
challenges of cloud computing adoption for enterprises
within Thailand.
Section
4-C Part III
7 Conclude upon the feasibility of cloud computing
adoption within Thailand and provide recommendations
for improving the environment for continued growth of the
Section
4-C Part III
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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industry.
*Implications refer to knowledge and understanding, perspective, adoption trends, benefits, and challenges.
Section 3-C Research Strategy
Section 3-C Part I - Research Approach and Methodology
The approach of this study is exploratory in nature, it was undertaken to “find out
what is happening, to seek new insights; to ask questions and to assess a
phenomena in new light” (M. Saunders et al, 2009). More specifically, this research
was undertaken to “explore” and “seek new insights” through the assessment of the
cloud computing phenomenon within Thailand and greater South East Asia area that
has not yet been thoroughly investigated. Therefore, the research methods selected
for this project are in accordance with the exploratory nature of the study. “The three
principal avenues to conducting exploratory research are:
A search of literature;
Interviewing ‘experts’ in the subject;
Conducting focus group interviews.”
(M. Saunders et al, 2009)
The research methodology for this analysis consisted of qualitative methods
leveraging a sampling approach that is not based upon probability. As defined by
Christina Quinlan within the Business Research Methods text, “in the non-probability
approach the sample is selected to represent the population. The emphasis in non-
probability sampling is on the capacity of a relatively small number of cases to clearly
and comprehensively illustrate the phenomenon under investigation” (Quinlan,
2011). For this study, samples were selected within the Thailand banking and
telecommunications industry based upon the method defined within the previous
statement. The characteristics of each sample such as industry and market share
were used as criteria to determine the capacity to clearly and comprehensively Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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represent the cloud computing trends within the industry. This technique is in
alignment with the purposive sampling approach. This method enables the
researcher to use discretion in the selection of cases supporting the research
questions and objectives. This sampling approach is often leveraged with small
sample sizes that are deemed “particularly informative” (M. Saunders et al, 2009)
based upon specific criteria. This method is also known as judgmental sampling
therefore highlighting the researcher’s judgment within the sampling approach. The
purposive sampling approach cannot be considered statistically representative of the
total population. However, critical case sampling was leveraged as the technique
“focuses on selecting those cases on the basis of making a point dramatically or
because they are important” M. Saunders et al, 2009).
Section 3-C Part II – Data Collection Method: Population and Sample Selection
Data Collection Method:
As the study is exploratory in nature, semi-structured interviews were conducted
with senior management within the target banking and telecommunications
organizations identified in the sample selection below. “In an exploratory study, semi-
structured interviews may be used in order to understand the relationships between
variables, such as those revealed from a descriptive study.” Descriptive studies
present a precise depiction of people, events, or situations. These studies can be
leveraged as a predecessor to explanatory research projects (M. Saunders et al,
2009). In support of the exploratory research approach employed within this study,
variables described within the conclusion section of the literature review in chapter 3
were identified through secondary research analysis. Furthermore, academic
journals and descriptive studies of the cloud computing industry were analyzed for
overarching themes. The variables and themes identified through the analysis of
secondary research were leveraged to develop the research questions for the semi-
structure interviews and the framework for analysis.
Face to face semi-structured interviews were chosen based upon the ability to
facilitate the discretionary flow of conversation and ideas within constructs of the
themes defined by the interview questions. The less structured approach
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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appropriately facilitates the flexibility for the researcher to explore the research topic
within a new context.
Industry and Country selection:
As highlighted within the background section of the dissertation, the banking
sector is highly important to Thailand’s economy with financial assets accounting for
200% of the country’s GDP (DataMonitor, 2010). Therefore, due to its importance
within the Thai economy it is reasonable to presume that the sector’s technology
trends are a strong indication of the country’s overall IT landscape. The significance
of the banking sector justified its selection for this research study. In addition, the
banking sector within Thailand is the most developed amongst its S.E. Asian peers
thus warranting focus within this study. Furthermore, the telecommunications
industry was selected as well due to its developed state within Thailand. It is also
expected that since IT is the fundamental base for the telecommunications that this
industry would be the most probable earlier adopters and indicators of new trends.
Due to government regulations explained within chapter 1, Thailand and specifically
these industries are the most conducive to the growth of cloud computing within S.E.
Asia.
Sample Selection:
Banking:
According to DataMonitor, as of 2007 a total of 37 banks existed in Thailand.
20 of these banks are Thai banks within the public and private sector (DataMonitor,
2010). More specifically, the Thai banking population is segmented into 15
commercial banks and 5 public banks. For this study, foreign banks were excluded
due to the stipulation that wholly subsidiaries cannot operate more than 1 branch in
Thailand. This makes it difficult to adopt cloud computing in Thailand, unless a
corporate strategy is implemented at a global level. Similarly, foreign banks
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
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operating jointly-ventures in Thailand were excluded from the study based upon the
same reason. These exclusions reduced the eligible population from 20 to a total of
8 banks for this study.
Public banks: The aim for this segment of the population is 2 out of 5 banks
representing 40% sampling. The 2 banks named below represent 60% of the
government banking market share.
Krung Thai Bank: The largest government bank, and no 4 overall in the
banking industry in Thailand.
Thai Military Bank: The 2nd largest government bank and 6 overall in
Thailand.
Thai private banks: The aim is to conduct interviews with 3 out of 8 banks
therefore a 38 % representative sample of banks within the private sector.
These two banks combined command over 70% of the private banking market
share.
Bangkok Bank: The number 1 ranked private bank overall in the Thai
banking industry.
Kasikorn Bank: The number 2 ranked private bank within Thailand.
Siam Commercial Bank: The number 3 ranked private bank in
Thailand.
Telecommunication: The aim for this segment of the study is 3 of the 4 Thai
telecommunication operators representing 85% sampling.
Advance Info System: Joint venture with Singtel. The number 1
telecommunication operator in Thailand.
DTAC: Joint Venture with Telenor. The number 2 telecommunication
operator in Thailand
TRUE: The number 3 telecommunication operator in Thailand.
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Section 3-C Part III – Ethics and Limitations
Ethics: During the pursuit of data collection the appropriate ethical conduct must be
adhered to. The collection of primary data poses a variety of ethical issues:
Privacy of participants
The voluntary nature of the study as well as the right to withdraw partially or
completely from the process.
Consent and deception
Confidentiality
Reactions of the participants to data collection methods. (i.e.
embarrassment, stress, discomfort, harm).
(Saunders et al, 2009).
These issues were weighed and considered in relation to their applicability to the
study at hand. Steps were taken in order to appropriately adhere to proper ethical
standards. In consideration of consent and deception, each participant was sent an
interview request form that included an information sheet providing detailed
information about the study to ensure clarity regarding the nature of the study In
addition, a consent form was also provided within the email and during the meeting
session. All questions the participant asked in regards to the research were
answered prior to the meeting. Consent was obtained through two avenues, a
confirmation email with a scheduled appointment as well as a signed copy of the
consent form during the meeting. During the study and within the consent form, the
interviewee was informed of the following:
The nature of the study was voluntary and participants had the right to
withdraw during the interview session at any point in time.
Any request regarding the privacy of participants and confidentiality of any
information provided would be respected by the researcher.
The reactions of participants were monitored by the researcher during the
interview for any indication of discomfort (mainly to do with confidentially)
with the questions asked. If this was noted, the interviewee was reminded
of the above statements.
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Limitations: The following were identified as constraints within this study.
Limited S.E. Asia geographic coverage: The aim of this study is to draw
conclusions upon the cloud computing adoption trends and implications within
S.E. Asia’s banking and telecommunications sector. Although Thailand serves
as a strong indicator of these trends and implications as justified in previous
sections, it is not a comprehensive depiction of the S.E. Asia demographic. In
order to provide this, a more extensive study would need to be completed.
Consequently, due to the time and resource allotment available for this
research project a scope this broad was feasible.
Confidentiality & Willingness to Participate: Due to corporate non-disclosure
policies, some organizations were un-willing to participate within the study
thus reducing the achievable sample size. Additionally, company
representatives that did participate within the study were hesitant to share
specific information directly related to cloud computing within their
organization. To compensate for this cloud computing trends were discussed
at the industry and sector level within Thailand.
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Chapter 4 Analysis and Findings:
Section 4-A Introduction:
The following sections explore the primary research derived from the
methodology described in chapter 3. As discussed above, interviews were
conducted in a semi-structured format to facilitate the exploratory nature of the study.
Semi-structured interviews fostered the free flow of conversation and ideas within the
guidance of the cloud computing topics defined within the set interview questions.
Section 4-B Primary Research:
Interviews were conducted with the following participants listed below representing
the target banking and telecommunication organizations defined within the sample
defined in section 3-C part II.
Figure 40 - Interview Participant Listing
# Name Title Company Industry Sector1 Dr. Piyapan
TayanithiExecutive
Vice PresidentBangkok Bank Banking Private
2Dr. Sahanon Tungbenchasirikul
AVP
Commercial
Banking
Strategy Manager
Siam
Commercial
Bank
Banking Private
3Mr. Andrew McBean
Partner DigitalJuice
Group, DTAC
Telecom Private
4 AnonymousSenior Executive
Vice President
3rd Party ITO
Service
Provider
Banking Public
*(AVP) Assistant Vice President
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The individuals mentioned above were interviewed for this research based
upon their background and credibility, relationship to the target organization,
availability and inclination to participate. Refer to Appendix 1 for a detail regarding
the background of each participant within the study. At the time of the interview, Mr.
Andrew Mc Bean is a recent Vice President at DTAC as of the previous year (2010)
and has spend 25 years within the IT and telecommunications thus knowledgeable
about the recent trends of telecommunications within Thailand. Refer to Appendix 1
for more detail on Mr. Andrew Mc Bean’s background.
Supplementary Research Avenues:
In order to supplement the interview research, a seminar was attended an
event put on through the ICT committee of the American Chamber of Commerce
Thailand. The speakers were from the Association of Thai ICT industry (ATCI). This
seminar assisted in providing insight into the overall Thailand ICT environment.
Section 4-C Findings and Analysis:
The main points discussed in this section are aligned with the issues
previously identified within the Literature conclusion and findings as well as within
the defined objectives of the research previously mentioned above.
Section 4 - C Part I – Interview Findings:
Research Objective 4: Based upon the factors identified, conduct primary research to identify the implications of cloud computing upon banking and telecom enterprises within Thailand.
The following section will summarize the significant themes and ideas
identified within the interview sessions conducted and will be further analyzed based
upon the framework developed for analysis within the literature review section.
Interview # 1 Findings June 9, 2011
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Name Title Company Industry Sector
Dr. Piyapan Tayanithi Executive
Vice PresidentBangkok Bank Banking Private
Definition, Knowledge, Understanding & Perspective:
Throughout the interview session, Dr. Piyapan referenced his organization’s
definition and perspective of cloud computing through a variety of statements. The
following 5 statements summarize the significant overarching concepts that Dr.
Piyapan expressed in reference to the definition of cloud computing.
“Cloud computing is how we manage our IT resources and are able to offer
them to the user.”
“Cloud computing is not a technology per se, it’s just a concept that embraces
the many components that have been in market already.”
“In terms of mainframe, I think it’s not much different from what we have seen
in the past. I think the concepts are not new but they are just being used in a
different context.”
Cloud computing is basically the same concept as mainframe, originally, but I
think they try to provide an abstract or encapsulation of diversity of the IT
resources so that the perception or the look from the user point of view is
simply you use just one computer facility or resources.”
The definition of cloud computing according to Bangkok bank was derived from the
key statements noted above:
Definition: Cloud computing relates to management of IT resources that are
provided to the user. It is an encapsulation of diverse IT resources presented
to the user a unified IT resource or facility. It is not a new technology but a
concept that embraces many technological components that already exists
within the market such as mainframe computing in a new context.
Based upon this definition and the references to other factors throughout the
interview to cloud models such as private and public cloud as well as service delivery
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model references displayed a solid grasp on the underlying concept of cloud
computing.
In statement below, Dr. Piyapan expressed his perception of cloud computing
describing it as a “passing trend”:
“It’s a fashion to occur and will not last forever. I think it’s just a new
alternative for people to consider. That doesn’t mean it’s going to replace the
existing practice.”
Adoption Trends, Benefits & Drivers:
Limited Private Cloud adoption, no public or hybrid adoption: During the
discussion of private versus public cloud adoption trends within Thailand and the
private banking sector Dr Piyapan noted that private cloud is a more attractive option
to Thai banking companies. He further discussed that the cloud has not been
adopted in his company and he does not foresee it being widely adopted soon within
the Thai banking sector.
“I think in Thailand, it’s more attractive to begin with (adopt) private cloud
mainly within the organization more so than the public cloud.”
Change Management Issues: He explained that the change required to leverage
the private cloud is an easier transition than change to the public cloud. This is
because within the private cloud change is only related to the management of
internal IT resources. He noted that a small number of banking organizations within
Thailand have adopted limited aspects of the private cloud. This is achieved through
internal outsourcing where organizations set up an external IT company that is still
owned by the bank.
“So far what at least I have seen in Thailand. People who call themselves to
move toward the private cloud is more on the people that set up a new IT
shop from the one that they didn’t have before. For example, they set up a
new business and then this the way that they move forward.”
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“Some company borrow the concept outsource. They set up a new company
but that company is basically either wholly owned basically split from
department into company affiliate. Then they have some 3 rd party come in to
help run it.”
Pay-per-use, pay-as–you-go is not adopted in Thailand: Conversely, Dr.
Piyapan discussed that the “pay as you go” service characteristic of the public cloud
has not been adopted within Thailand. He termed this as “charge back” defining the
concept as the “metering and accounting of the resources used” which is the main
component within the public cloud. Dr. Piyapan explained that the concept of
outsourcing, the underlying factor of public cloud computing, is different in Thailand
as opposed to in America and Europe. He highlighted that it is not common for
businesses within Thailand to outsource their IT services to external 3rd part vendors
such as IBM and Microsoft.
Customer is driver of cloud computing: In reference to benefits and drivers of
the cloud, Dr Piyapan stressed that the consumer is the driving force behind
changes in technology within the bank. Therefore, the bank would not change to
cloud without a transformation within consumer expectations driving the requirement.
He did make brief reference to flexibility, standardization, and consolidation of IT as
possible benefits of the cloud.
Challenges:
ICT Maturity: In relation to the cloud computing adoption within Thailand, Dr
Piyapan noted ICT maturity as one of the significant inhibitors.
“You may have heard that one of the obstacles would be on the
telecommunication. We try to move away from the fix line and try to
promote mobile communication. But it has to get regulatory approval. It has
been pending for many years so 3G cannot get start according to the
schedule. That makes many applications related to technology including the
idea to make good use of the public cloud not so attractive in terms of
justifying your investment.”
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Change Management Issues: Dr Piyapan cited change management issues
such as the cost to switch to the cloud and user acceptance as challenges with
adopting the cloud. He gave the example of the need to automate previously manual
business processes that would present a cost to moving to the cloud. In relation to
user acceptance, he discussed how the attitude of the IT department head may
possibly impede the change due to the managers need to feel in control of his
department and IT processes.
Security, Confidentiality, Privacy: In addition, he made references in the
interview to concerns about security privacy, and confidentiality as inhibitors to public
cloud adoption.
Reliability, Uptime and Business Continuity: Furthermore, he highlighted
concerns with business continuity and SLA enforcement issues related to
outsourcing to a service provider.
Complexity and customization of business processes in large enterprises: He additionally discussed that for large business public cloud adoption is difficult due
to the amount of customization and complexity within various business processes.
He gave the example that various banking applications are highly complex and
customized to the particular company thus not viable or beneficial to leverage on the
cloud. Multiple companies could not have access to on application due to the
dramatic differences in needs.
High Cost of Outsourcing: The major challenge Dr. Piyapan noted regarding the
adoption of the public cloud is the lack of cost-benefit due to the low cost of labor in
Thailand.
“I think that the cost base of base of the Thai business is much lower than in
the U.S. The personnel cost is much lower in Thailand and we don’t spend on
technology in a big way like U.S. banks or U.S. companies.”
Culture Factors: Furthermore, He discussed that there are differences in the
culture regarding the viewpoints and leverage of IT between the U.S. and Asia. He
explained from his view point that the U.S. is a fast adopter of IT trends and “big
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spender” on technology. Conversely, Asia is more conservative in relation to IT
spending and adoption.
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Interview # 2 Findings June 12, 2011
Name Title Company Industry Sector
Dr. Sahanon
Tungbenchasirikul
AVP
Commercial Banking
Strategy Manager
Siam Commercial
Bank
Banking Private
Definition, Knowledge, Understanding & Perspective:
The following quote illustrates the ambiguity of the cloud computing concept
which has created a disparity across the industry in relation to the definition of the
cloud.
“Cloud computing is the program or the software that our bank as a service
provider must develop. The customer can use that software or that program to
facilitate their business. They do not need to invest in anything. The bank will
do it for them.”
Furthermore, this interview displayed that cloud computing can be defined from two
different perspectives, consumer and enterprise. Different implications are applicable
within these realms of cloud computing. Although the information provided within this
interview was valuable, it was outside the scope of this study as the research is
focused upon the implications of cloud computing within the business management
realm from an organizational view point.
Supplementary Research Findings:
During the ICT committee ACHAM meeting, two major themes were re-
confirmed in relation to this study. These themes were the challenges presented by
the lack of Thailand’s ICT maturity and information technology skill sets. Therefore,
these challenges are currently significant inhibitors of the overall growth of cloud
computing within Thailand.
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Interview # 3 Findings June 16, 2011
Name Title Company Industry Sector
Andrew Mc Bean Partner DigitalJuice - Previous
DTAC employee
Telecom Private
Adoption Trends, Benefits & Drivers:
No Cloud Adoption Models in Telecommunications industry: During the
interview, Mr. Andrew Mc Bean cited that cloud computing has not been adopted
within Thailand’s telecommunications industry. This is due to various barriers that he
noted during the session.
Challenges:
ICT Maturity: As noted with Dr. Piyapan’s interview, Mr. Andrew Mc Bean ICT
also described that Thailand’s ICT maturity presents a significant challenge for cloud
computing.
High Cost of Outsourcing: In agreement with Dr. Piyapan’s interview, Mr. Mc
Andrew Bean discussed that the cost efficiency models for outsourcing within the
public cloud do not make sense in Asia the same way they do in Europe or America.
This is due to the cheaper cost of labor in Thailand. He cited that the minimum wage
in Thailand is 6,000 Baht approximately 200USD which is significantly less than the
average cost of a North American or European employee employed by Microsoft or
IBM which are large sellers of public cloud in Thailand.
Culture Factors: In addition, Mr. Mc Bean noted that resistance to outsourcing is
a cultural issue. This is due to “Power, politics, and people wanting to keep their
domains.” He expanded upon this by explaining that status, title, and size of team
managing is very important in Thailand. He stated that these factors are even more
important than salary. Therefore the overarching issue here is a change
management relating to the resistance to change due to cultural issues.
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Undervalued perception of IT: Another significant challenge that Mr. Mc Andrew
Bean noted within Thailand related to cloud computing is the “under-appreciation” of
IT as a strategic differentiator. He explained that executives and decision makers in
Thailand do not think of technology as strategic as it thought of in US and Europe.
As a result of the under-appreciation of IT the country lacks in IT skill sets as.
“People in Thailand look upon IT as a necessary evil, rather than investing in
IT as a strategic differentiator to the business. European and U.S. companies
view IT strategically “how can I use technology to get more money” In
Thailand view IT as a cost to the business the more it can be minimize the
better. IT is not a strategic differentiator.”
Knowledge, understanding, perspective: Another significant issue with cloud
computing adoption Mr. Andrew Mc. Bean noted was the fact that a good
understanding of concept is not highly prevalent within Thailand therefore companies
are not prone to adopting the cloud.
Change Management Issues: Mr. Andrew Mc. Bean noted the fundamental
concept of cloud computing is change management. In order for cloud computing to
be adopted the “benefit of the change must out-weigh the fear of the change”
According Mr. Andrew Mc. Bean’s the benefits of the cloud do not outweigh the
challenges thus inhibiting the movement toward the cloud within Thailand.
Complexity and customization of business processes in large enterprises: Mr. Andrew Mc. Bean also cited the complexity and customization needs of large
enterprises as an inhibitor to cloud adoption stating “the bigger the company, the
more difficult to take replicable parts and put them into the cloud.”
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Interview # 4 June 29, 2011
Name Title Company Industry Sector
Anonymou
s
Senior Executive
Vice President
3rd Party ITO
Service Provider Banking Public
Background:Due corporate non-disclosure policies an anonymity agreement was made in
regards to the release of information directly related to the individual and organization
interviewed. Therefore, documentation of this interview will refer implicitly to the
organization, its cloud computing trends and any other applicable information provided
during the interview.
Definition, Knowledge, Understanding & Perspective:The interviewee defined the organization’s definition of cloud computing as
computing resources that are in the cloud accessible through the internet on demand.
They described the provision of cloud services within three levels Iaas, Saas, and Paas.
Furthermore, the individual made reference to the idea that cloud computing is not a
new technology. They expressed their opinion that cloud technology has existed for a
long period of time prior to the emergence of the current trend. Later within session, the
made reference to the potential for limited use of private cloud while alluding to their
viewpoint that private cloud is not cloud computing. Thus from their perspective, the
definition of cloud computing excludes the terms of private and hybrid deployment
models.
This definition provided as well as multiple other references during the interview
indicated the interviewee has a solid grasp on the concept of cloud computing.
Adoption Trends, Benefits & Drivers:
Page 84
Cloud Computing not widely adopted in the Public and Private banking industry. Private IaaS cloud under investigation for adoption in the public banking industry.
In reference to cloud computing adoption trends, the individual affirmed that
cloud computing has not been widely adopted within the public or private banking sector
or within Thailand in general. Within the banking industry, the interviewee stated that
they did not project the wide-spread adoption of cloud computing within the near future.
They specifically referenced that SaaS and PaaS service delivery models are not likely
to be widely adopted due to the factors cited within the challenges segment of the
interview summary below. The interviewee did view the Iaas model as being more
suitable possibility for adoption within large Thailand banking enterprises. They made
reference to a current initiative to investigate the option of all Thai government banks to
adopt a private IaaS solution across the industry in efforts to optimize the benefits of
sharing resources. However as previously noted, the participant stated that this was not
cloud computing as it would be in the private realm. In relation to SaaS, the interviewee
indicated an example of the very limited use of the model which has been leveraged
within the industry. A particular public banking company is able to access their human
resource application over the web. They also sighted that it may be beneficial to
leverage some standardized applications such as Microsoft office to reduce the cost of
software licenses. However, as previously mentioned the interviewee did not foresee
much more growth beyond this point of adoption.
Cost Savings for Small & Medium business: When asked about what benefits the
individual perceived that could be derived from cloud computing, they discussed the
aspect of cost-savings through the public cloud. However, the interviewee highlighted
this benefit as a possibility mainly for small and medium enterprises leveraging public
cloud.
Challenges:
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High Outsourcing Cost: The individual explained that cost savings for large
companies such as their own was very small. They cited the low cost of labor within
Thailand as the key contributing factor to significantly reducing the cost-benefit value
proposition acclaimed by many service providers. They further expanded upon this idea
by explaining that multiple service providers such as Microsoft, IBM, and Cisco have
spoken to Thai public banks about the public cloud however feasibility is not plausible
as the service is very expensive compared to the current in-house IT solution. Thus the
interviewee felt that in any respect, cloud computing adoption in Thailand would be
mainly private cloud.
ICT Maturity: At the beginning of the session, the interviewee noted that the
maturity of the ICT environment within Thailand is a challenge to the development of
cloud computing.
Complexity and customization of business processes in large enterprises: In
relation to SaaS cloud model, the interviewee noted that many bank applications are
generally very large and highly customized therefore cloud would not be a solution
viable to host these applications.
Disaster Recovery, Business Continuity, Data Privacy and Security: At an
industry level, the participant referenced banking regulatory requirements and
concerns relating to disaster recovery, business continuity, security, and privacy as
inhibitors for public cloud adoption. They emphasized the issues of disaster recovery
and business continuity relating to the enforcement and non-compliance with service
level agreements (SLA).
Over generalized Solutions: The participant concluded the interview by stating
that the success of cloud computing globally and within Thailand will be contingent
upon the ability for service providers to find a niche market. Currently solutions are
over generalized across the market place.
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Section 4 - C Part II – Analysis of Findings:
Research Objective 4: Based upon the factors identified, conduct primary research to identify the
implications of cloud computing upon banking and telecom enterprises within Thailand.
For the following section, interview numbers 1, 3, and 4 will be analyzed based
upon the analysis framework set forth within the conclusion of the literature review. As
described previously, interview number 2 will not be analyzed as it is outside of the
scope of this study relating to cloud computing from an organizational perspective
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Figure 41 - Interview #1 Analysis Private Banking Sector Analysis
Benefits (Drivers) Challenges (Inhibitors)
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
IT investment easier to justify (ROI)
Customer Driven
Flexibility
Standardization, Consolidation
ICT Maturity
Change Management issuesHigh Outsourcing Cost
Complexity and customization of business processes in large enterprisesSecurity, Confidentiality, Privacy
Reliability, Uptime & Business Continuity
Cultural Factors
# Cloud Characteristics Comments
1 Scalability, Elasticity, On Demand Benefit not derived in Thailand due to limited cloud adoption.
2Pay-per-use, Pay-as-you-go
Not adopted due to the cost barriers of public cloud (service providers).
3Service delivery model, Web Centric
Referenced in the interview as an aspect of the cloud.
4 Multi-tenancy Not referenced in interview as an aspect of the cloud.
5Next Generation Grid, virtualization, & Utility Computing
Referenced in interview as an aspect of the cloud.
# Cloud Service Delivery Models1 SaaS Not adopted2 PaaS Not adopted3 IaaS Limited adoption# Cloud Implementation Models1 Private Limited Adoption 2 Public Not Adopted 3 Hybrid Not Adopted
Page 88
Figure 42 - Interview #2 Analysis Telecommunications Industry
Benefits (Drivers) Challenges (Inhibitors)
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Opportunity to “leap frog” over old technology
ICT Maturity
High Outsourcing Cost
Cultural Factors
Knowledge, understanding, perspective
Undervalued perception of IT
Low IT Skill sets
Change Management Issues
# Cloud Characteristics Comments1 Scalability, Elasticity, On Demand Benefit not derived in Thailand due to
non-adoption trend of the cloud.
2 Pay-per-use, Pay-as-you-go Not adopted due to cost barriers of public cloud (service providers)
3 Service delivery model, Web Centric
N/A – Cloud model not adopted in Thailand. Limited understanding in Thailand.
4 Multi-tenancy Benefit not derived in Thailand due to non-adoption trend of cloud.
5 Next Generation Grid, virtualization, & Utility Computing
N/A – Cloud model not adopted in Thailand. Limited understanding in Thailand.
# Cloud Service Delivery Models1 SaaS Not leveraged2 PaaS Not leveraged3 IaaS Not leveraged# Cloud Implementation Models1 Private Not adopted2 Public Not adopted3 Hybrid Not adopted
Page 89
Figure 43 - Interview #3 Analysis Public Banking Sector Analysis
Benefits (Drivers) Challenges
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Cost Saving for SME business
High Outsourcing Cost
ICT Maturity
Complexity and customization of business processes in large enterprises
Disaster Recovery, Business Continuity,
Data Security and Privacy
Over-generalized solutions
# Cloud Characteristics Comments1 Scalability, Elasticity, On Demand N/A – Cloud model not adopted in Thailand
2 Pay-per-use, Pay-as-you-go Not adopted due to cost barriers of public cloud (service providers)
3 Service delivery model, Web Centric
N/A – Cloud model not adopted in Thailand
4 Multi-tenancy N/A – Cloud model not adopted in Thailand
5 Next Generation Grid, virtualization, & Utility Computing
N/A – Cloud model not adopted in Thailand
# Cloud Service Delivery Models
1 SaaS Not leveraged, Described as a cloud aspect. Not likely to be adopted.
2 PaaS Not leveraged, Described as a cloud aspect. Not likely to be adopted.
3 IaaS Not leveraged, Described as a cloud aspect. Likely to be adopted in the future.
# Cloud Implementation Models
1 Private Limited adoption, not part of the cloud from the interviewee’s perspective.
2 Public Not adopted
3 Hybrid Not adopted, not part of the cloud from the interviewee’s perspective
Page 90
Section 4 – C Part III – Conclusions and Recommendations
Research objective:
5. Compare and contrast the Thailand, North American and European cloud computing implications.
6. Conclude upon the critical success factors and key challenges of cloud computing adoption for enterprises within Thailand.
7. Conclude upon the feasibility of cloud computing adoption within Thailand and provide recommendations for improving the environment for continued growth of the industry.
Conclusions: From the primary research completed, it can be concluded that the implications
of cloud computing in Thailand are very different than those within North America and
Europe. Moreover, it was discovered from the indicators investigated within the finance
and telecommunications industry that there is a sharp divergence in the cloud
computing implications between the three regions. This is due to the unique factors
within Thailand that significantly impact the technology environment and thus influence
the adoption trends, benefits (drivers) and challenges (inhibitors).
As illustrated, the challenges of cloud computing currently outweigh the benefits
of within Thailand. This is in contrast to North America and Europe where the benefits
outweigh the challenges. Therefore due to this, adoption of cloud computing is not
prevalent in Thailand conversely to the significant adoption rate of the cloud across all
platforms within North America and Europe. Furthermore, within Thailand adoption of
the cloud is limited to isolated incidents of private cloud within large banking and
telecommunications organizations.
Dissimilar to North America and Europe, a major factor inhibiting the
development of cloud computing is the lack of ICT maturity within Thailand.
Furthermore, a main driver of technology adoption is a mature ICT environment. At this
time, ICT is more advanced within North America and Europe thus facilitating cloud
computing adoption. As noted within the WFM report, this inhibiting factor of the cloud in
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011
Page 91
Thailand is more aligned with its peer emerging economies. Furthermore, this issue is
not noted in a vast majority of “global” reports as the focus is upon North America and
Europe.
Perhaps the most astounding inhibiting factor of cloud computing in Thailand is
the high cost of outsourcing related to the public cloud. This is due to the low cost of
labor in Thailand in comparison to the high cost of labor in North America and Europe.
Therefore, this is major divergence from the cost savings benefits that are vastly
reported and praised within research as a key benefit of cloud computing. Furthermore,
common service providers of the cloud such as IBM and Microsoft are more expensive
than in-house IT within Thailand therefore diminishing a major benefit of the public
cloud.
Interestingly, other inhibitors that have significant influence on cloud adoption
are more intangible and have not been identified within previous reports:
Cultural factors
Knowledge, understanding, perspective
Value of IT
Naturally, the cultural factors within Thailand, North America, and Europe are different.
The implications of culture upon cloud computing are most dramatic upon the public
cloud due to the differing perceptions related to outsourcing. For example, the notion of
power and politics within Thailand are vastly different. In the perspective of a North
American or European manager, power is derived from title and salary. Conversely, in
Thailand power is associated with the size of the team a person manages in addition to
the title. The size of a person’s team is even more important to a manager than salary.
Outsourcing via the public cloud can reduce the size of the IT team required
dramatically and therefore, a Thai organization with a culture based upon these
principals will naturally resist the change. Furthermore the from the viewpoint of a North
American or European firm, outsourcing is associated with increasing efficiencies and
thus an overall benefit to the company. Conversely, within Thai companies this is
viewed as a deficiency within the company. Therefore, this is a discredit to the skills and
abilities of the firm.
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In addition to the difference in culture regarding the perceptions of outsourcing,
there is also a differing general perception of information technology between the three
regions. As previously discussed North American and European firms regard the
concept of IT as a significant strategic differentiator. Conversely, in Thailand IT is
viewed as a “necessary evil.” Therefore, IT is not as highly valued strategically in
Thailand as it is within North America and Europe. The foundational premise of cloud
computing is strategic IT management thus one of the reasons that may be impacting
slow adoption within Thailand.
Another inhibitor to Thailand cloud adoption is knowledge and understanding.
This can stem from two causes. Compared to North America and Europe, the ICT
environment and cloud industry within Thailand are in the initial stages thus the benefits
of the cloud have not been completely realized. Additionally, this could also be an effect
of the limited IT skill sets and expertise present within Thailand.
While there a number of differences regarding the inhibitors of cloud computing in
Thailand, two similar themes have been identified:
Security, Confidentiality, and Privacy
Reliability, Uptime, Business Continuity
These challenges are also associated with the fundamental risk of information
technology. Therefore, this may be the underlying reason for the similarities in these
themes.
Due to the current environment, the benefits and drivers of cloud computing are
not substantially recognized within Thailand as they are within North America and
Europe. The main opportunity for Thailand regarding the cloud computing environment
is the ability for the country to “leap frog” over historical primitive technology into current
state of the art IT through the leverage of the cloud. This would advance the country’s
ICT competitiveness and thus the growth and progress of the nation. In order to
accomplish this, the issues mentioned above inhibiting the growth of cloud computing
would need to be addressed to enhance the feasibility of cloud adoption within Thailand.
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Recommendations: First and foremost, the maturity of the ICT environment and disparity in IT human
capital will need to be addressed through further investment within these areas
through public initiatives.
In regards to public cloud, service providers in Thailand will need to find avenues
to reduce the higher cost associated with outsourcing therefore reducing the
disparity between the cost and benefit. This may be achieved through two
avenues. From a foreign company perspective, a possible option would be to
leverage the recruitment of Thai employees. This would facilitate the reduction of
labor cost thus allowing these service providers to reduce the overall cost of
public cloud. Secondly the similar to Software Park, the government could invest
in the growth of Thai owned cloud service providers therefore facilitating the
availability of public cloud services at attractive costs within Thailand. Other
benefits from this may also include national growth opportunities in areas such as
employment, IT human capital and the overall advancement of ICT within
Thailand.
To address the issues of knowledge, understanding, and perspective
(culture/change management), iniatives will need to be taken to facilitate the
understanding of the benefits of cloud computing with Thailand. This will have to
occur through the adoption of private cloud before public cloud is seen as viable
or beneficial. Cloud service providers in Thailand may need to change approach
selling cloud by offering services through a different avenue. More specifically,
providers could offer consultancy service educating organization about the
benefits of cloud and assisting the development of internal private cloud models.
As private cloud is already beginning to be adopted organizations will be more
apt to accept the change. Once Thai companies begin to understand the
beneficial implications of cloud services, the transition to public cloud will become
more conceivable.
Appendix 1: Interviewee Backgrounds
Participant # 1 Dr. Piyapan Tayanithi
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Dr. Piyapan Tayanithi is currently an Executive Vice President of Bangkok
Bank Public Company Limited. Starting his career at the Computer Center of
Siam Cement Public Company Limited in 1983, Dr. Tayanithi joined the Treasury
Division of Bangkok Bank in 1992 and later worked in the Office of the President,
before being transferred to the Audit and Control Division and Research
Department, respectively. Dr. Tayanithi graduated from Chulalongkorn
University, Thailand with B.E. in Computer Engineering with honors. He received
M.S. in Computer Science, Management, and Industrial Engineering and Ph.D. in
Decision Support, all from Georgia Institute of Technology, USA.
Participant # 2 Dr. Sahanon Tungbenchasirikul
Dr. Sahanon is an AVP of Commercial Banking Strategy at Siam Commercial Bank
PCL. He has been with the company for almost 3 years. Dr. Sahanon holds a PHD from
the University of Manchester in Business Administration.
Participant # 3 Mr. Andrew McBean
Mr. Andrew McBean owns his a consulting firm within Thailand. As of last year, Mr.
Andrew Mc.Bean had worked with DTAC as a senior VP of the Strategy and Business
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development. Furthermore, He has worked 20 years in IT and Telecommunications
management roles spending a considerable time in Asia within these roles. Mr. McBean
also has a diverse background in Microsoft, IBM, and DTAC and has worked in 12
years in Asia (Japan, Indonesia, and Thailand).
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Appendix 2: Interview Questions
Version 1: These questions were originally created to facilitate discussion within the interview sessions.
Knowledge, Understanding & Perspective:
1. How does your organization define cloud computing?
2. Do you think cloud computing is a long term technology solution or just a short
term trend?
3. Do you think cloud computing is an important technology solution for enterprises
in Thailand?
Adoption Trends:
1. Has your organization implemented cloud computing?
Implemented Cloud Computing:
2. If so, describe the cloud computing model(s) and services that have been
implemented/adopted within your organization?
3. Which was the main driver(s) of your decision to adopt cloud computing?
4. How does your organization leverage Cloud Computing within its day to day
business activities?
5. Does your organization use Cloud Computing for any core services? (e.g.
applications, processes, storage)
6. Has Cloud Computing been formally incorporated into your Corporate Strategy
(business and IT)?
Has not implemented Cloud Computing
1. Why hasn’t your organization adopted cloud computing as of yet?
2. Is your organization willing to adopt cloud computing for you in the future? If not,
why?
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3. If so, how would your organization be willing to adopt and leverage cloud
computing?
4. Is your organization currently investigating the possibility of adopting cloud
computing?
Benefits & Drivers:
1. What does your organization perceive as the most important benefits of Cloud
Computing?
Has implemented Cloud Computing
2. Prior to the implementation of cloud computing, what accounted for the largest
portion of your organizations IT budget (spending) within the past 5 years?
3. Prior to implementation cloud computing, what were the benefits that
organization anticipated?
4. Post implementation, what benefits has your organization actually received from
of cloud computing?
5. How does your organization measure the benefits it has received from cloud
computing?
Challenges:6. 14. What are your organizations main concerns regarding the implementation of
cloud computing?
7. 15. Does your organization have an IT department that possesses adequate
knowledge and skill sets to effectively implement and manage Cloud Computing?
8. 16. If not, what type of knowledge is your IT department lacking?
9. 17. What other obstacles has your organization experienced regarding the
adoption and implementation of cloud computing?
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Version 2: This version of questions was developed due to confidentiality and
disclosure concerns expressed by organizations solicited for interview participation.
Perspective on Cloud Computing:
1. How does your organization define cloud computing?
2. Do organizations in Thailand think cloud computing is an important technology
solution for the future?
Adoption Trends:
3. At what stage is Thailand in cloud computing adoption?
a. Introduction, Growth, Maturity
4. Is the adoption/implementation of cloud computing common within Thailand?
5. Overall, what type organizations have adopted or are considering cloud
computing adoption within Thailand?
a. Please describe industry, sector, organizational size
6. Are many organizations currently considering the possibility of
adopting/implementing cloud computing?
7. What are the main driver(s) or reason for cloud computing adoption in Thailand?
a. For example – Cost reduction, increased storage, flexibility etc.
8. Describe the common cloud computing model(s) and services being considered
or adopted within Thailand?
a. For example – Public, Private Cloud. Software as a Service, Infrastructure
as Service etc
9. How are organizations that have adopted cloud computing using it?
a. For example- application deployment, data analytics, data storage etc.
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10. Post implementation, what benefits do organization commonly receive from of
cloud computing?
Challenges:
14. Do Thai organizations tend to have an IT department that possesses adequate
knowledge and skill sets to effectively implement and manage cloud computing? If
not, what type of knowledge is lacking?
15. What are the main concerns and challenges regarding the implementation of
cloud computing for Thai organizations?
Any additional comments:
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Appendix 3: Primary Research Dissertation Information Sheet
The following information sheet was included within each interview email request to
ensure the participant was educated regarding the nature of the study.
Dissertation Research Study
Topic of Study: Implications of Enterprise Cloud Computing Adoption within Thailand
Justification: Cloud computing is a prominent emerging information technology trend
across the globe. It is not a new technology but rather new avenue in which technology
is leveraged. On demand access to computing resources through the web such as
infrastructure, platforms, and software is central to the cloud. Benefits such as cost
savings, flexibility and agility are reported as attracting many organizations to the cloud
by many professional research firms. In a survey conducted in 2010 by KPMG, 60% of
respondents indicate they were already using cloud computing or would be in the short
term. Many similar surveys have been conducted to measure the implications of cloud
computing across the globe. However, the focus has been on North America and
Europe excluding South East Asia. Therefore, there is a gap in knowledge in regards to
the trends in South East Asia and more specifically Thailand. This study aims to
address this gap. The results of this research will provide a valuable knowledge source
for clients and providers of cloud computing within Thailand. In addition, the study will
add to the emerging knowledge base of cloud computing.
Dissertation Research Questions:
What factors contribute to the success and challenges of enterprise cloud
computing adoption within Thailand?
How do these compare globally?
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Objectives:
Identify implications of Cloud Computing adoption upon enterprises globally via
secondary research.
Based upon the factors identified, conduct a primary research to identify the
implications of Cloud Computing adoption upon enterprises within Thailand.
Compare and contrast the implications of Cloud Computing upon Thailand
enterprises identified via primary research versus implications of Cloud
Computing identified within secondary research reports.
Conclude on critical factors for success and key challenges of cloud computing
adoption for enterprises within Thailand.
* Implications refer to adoption trends, benefits, and challenges of cloud computing.
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Appendix 4: Interview Consent Form (Sample)
The following form was leveraged to obtain consent from each of the participants in the
study.
Interview Consent, Ethics and Confidentially Form
Title of Study: Implications of Cloud Computing Adoption within Thailand
Name and Position of Researcher: Erica C. Davis - St Mary’s University Graduate
MBA Student
Erica C. Davis is an international graduate MBA student studying with St Mary’s
University in Twickenham, London, as part of the Mountbatten Study Abroad Internship
program. She is completing a term with Naresuan University in Bangkok, Thailand for
her thesis study. Upon completion, Erica will receive her Masters in International
Business degree.
Confidentiality: The information collected during this interview is for the purpose of
academic study. If an audio recording is agreed to, the recording and any other
information deemed confidential by the interviewee will be kept confidential and will not
be disclosed. Any recordings will only be accessed by Erica C. Davis and the university
of which she is undertaking her study. A copy of research will be made available to
interviewee upon request.
1. I agree to be interviewed for the purposes of the student assignment named
above.
2. The purpose and nature of the interview has been explained to me. I confirm that
I have read and understood the information sheet (Research Overview document
attached to the interview request email) for the above study and have had the
opportunity to ask questions.
a. Any questions I have asked about the purpose and nature of the interview
and assignment have been answered to my satisfaction.
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3. I understand that my participation is voluntary and that I am free to withdraw at
any time without giving a reason.
4. I agree to the interview being audio recorded. Choose (Y)/ (N).
5. Choose a), b) or c)
a. I agree my name may be used for the purposes of the assignment only
and not for publication.
OR
b. I understand the student my wish to pursue publication at a later date and
my name may be used.
OR
c. I do not wish for my name to be used or cited, or my identity otherwise
disclosed, in the assignment or any publication.
Name of participant: Date: 6/9/2011 Signature:
Name of Researcher: Date: 6/9/2011 Signature:
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Appendix 5: Bibliography
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Bangkok Bank, (2011) Bangkok Bank 2010 Annual Report [Online] Bangkok Bank.
Available at:
<http://www.bangkokbank.com/Bangkok%20Bank/About%20Bangkok%20Bank/For
%20Shareholders/Annual%20Report/Pages/Default.aspx >
Benton, B., Negm, W., (2010) Banking on the Cloud. [Online] Accenture. Available at:
<http://www.accenture.com/SiteCollectionDocuments/PDF/
Accenture_Banking_Cloud_Computing.pdf > [Accessed June 2010].
Burnes, B., 2009. Managing Change. 5th ed. London: Prentice Hall.
Chung, M., Hermans, J., From Hype to Future, KMPG’s 2010 Cloud Computing Survey.
[Online] KPMG. Available at:
< http://www.slideshare.net/eburon/cloud-computing-survey-2010-kpmg>
DataMonitor., (2010) Country Analysis Report Thailand – In-depth PESTLE Insights.
[Online] DataMonitor. Available at: < www.DataMonitor.com > [Accessed June 2010].
Economic Intelligence Unit. (2009) EIU IT Competitiveness Study 2009.Bangkok,
Thailand, June 21, 2011.
Fernquest, J., (2009) Reuters Software: Perhaps the largest software company in
Thailand. Reuters. Available at:
<http://www.readbangkokpost.com/business/technology/
reuters_software_perhaps_the_l.php>
Harris, D., Why ‘grid’ doesn’t sell, 2008.
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Harris, J., & Alter, A., (2010) Cloudrise: Rewards and Risks at the Dawn of Cloud
Computing. [Internet] Accenture. Available at:
<http://www.accenture.com/siteCollectionDocuments/PDF/
Accenture_Cloudrise_Rewards_and_Risks_at_the_Dawn_of_Cloud_Computing.pdf >
[Accessed May 2010].
IBM., (2009) Seeding the Clouds: Key Infrastructure Elements for Cloud Computing.
[Online] IBM. Available at:
< http://www-935.ibm.com/services/in/cio/pdf/oiw03022usen.pdf>
ISACA., (2009) Cloud Computing: Business Benefits with Security, Governance and
Assurance Perspectives [Internet] ISACA. Available at: <www.ISACA.com>
Mell, P. & Grance, T., (2011) The NIST Definition of Cloud Computing (Draft). [Internet]
NIST. Available at:
<http://csrc.nist.gov/publications/drafts/800-145/Draft-SP-800-145_cloud-definition.pdf>
[Accessed June 2010].
Merrill Lynch, The cloud wars: $100+billion at stake, Merrill Lynch, 2008.
Microsoft, (2010) The Economics of the Cloud.[ Internet] Microsoft. Available at:
< http://www.microsoft.com/presspass/presskits/cloud/docs/The-Economics-of-the-
Cloud.pdf>
Misra, S., Mondal, A., (2011).Identification of a company’s suitability for the adoption of
cloud computing and modeling its corresponding Return on Investment. Mathematical
and Computer Modeling, 53, pp. 504-521.
P. Callewaert et al., (2010) Cloud Computing Forecasting Change. [Internet] Deloitte.
Available at:
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< http://www.deloitte.com/assets/Dcom-Belgium/Local%20Assets/Documents/EN/
Services/Consulting/dcom-be-en-cloud-market-overview-perspective.pdf > [Accessed
June 2010].
Quinlan, C., 2011.Business Research Methods: Cengage Learning EMEA.
S. Marston et al. (2011) Cloud computing – The business perspective. Decision Support Systems [E-Journal] 51, pp. 176 – 189. Available from:
< www.elsevier.com/locate/dss > [Accessed June 2010].
Saunders et al. 2009. Research Methods for Business students.5th ed. England:
Prentice Hall.
SearchDataCenter.com, 2011.Definition Grid Computing [Online] Available at:
< http://searchdatacenter.techtarget.com/definition/grid-computing>
SearchDataCenter.com, 2011.Definition Virtualization [Online] Available at:
< http://searchservervirtualization.techtarget.com/definition/virtualization >
SearchDataCenter.com, 2011.Definition Utility Computing [Online] Available at:
<http://searchdatacenter.techtarget.com/definition/utility-computing>
Subashini, S., Kavitha., V. (2011) A survey on security issues in service delivery models
of cloud computing. Journal of Network and Computer Applications [E-Journal] 34,
pp. 1-11. Available from: < www.elsevier.com/locate/dss > [Accessed June 2010].
Wired.com, The Future of cloud computing: A Long-Term Forecast. [Internet]
Available at:
<http: //www.portfolio.com/views/columns/dual-perspectives/2009/03/09/A-Long-Term-
Forecast/.> [Accessed June 2010].
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World Economic Forum. (2010) Exploring the Future of Cloud Computing: Riding The
Next Wave of Technology Driven Transformation.[Internet] World Economic Forum
Available from:
<http://www3.weforum.org/docs/WEF_ITTC_FutureCloudComputing_Report_2010.pdf>
[Accessed June 2010].
Zissis, D., Lekkas, D., (2010) Addressing cloud computing security issues. Future Generation Computer Systems. [E-Journal] Available at:
< www.elsevier.com/locate/dss > [Accessed June 2010].
McBean, Andrew. (2011) Interview on Thailand Cloud Computing in the
Telecommunications Industry
Dr. Piyapan (2011) Interview on Thailand Cloud Computing in the Private Banking
Industry.
Senior VP, (2011) Interview on Thailand Cloud Computing in the Public Banking
Industry.
Dr. Sahanon, (2011) Interview on Thailand Cloud Computing in the Private Banking
Industry.
Erica C. Davis Masters Dissertation Cloud ComputingJuly 11, 2011