Monday, February 22, 2010

India's Wipro heads for cloud computer era

At Bangalore-based Wipro Technologies, India's third largest information technology outsourcing company, an important experiment is under way.

About 500 employees are hooked up to a central computing "cloud" - a collection of shared servers and software - in a pilot programme to study the potential of a trend that could change the way the outsourcing industry works.

The pilot found that, whereas in the past, an employee at an outsourcing company might take about 43 days to set up a new project, including sourcing servers and hiring staff, it can take about 36 minutes to set up on a cloud network, says Girish Paranjpe, Wipro co-chief executive. With just a password, all the necessary computing power and software is available on the cloud.

"The potential is huge," says Mr Paranjpe.

Cloud computing - in which customers ultimately buy computing power and services and applications over the internet from a third party - is poised to become the new battlefield between Indian and global IT outsourcing companies.

Indian groups Tata Consultancy Services, Infosys Technologies and Wipro, lead an industry that expects to report revenue from services exports of $56bn by March 2011, up 13 per cent on a year earlier. Opposite them is the global outsourcing sector, including US-based IBM and Accenture and France's Cap Gemini.

Until now, the typical customer of these firms has kept much of its IT hardware in-house and bought and maintained its own software. Within large companies, different divisions will have their own servers and hardware, leading to duplication and an excess of computing power across the organisation.

Wipro calculates that because of this the world's servers are running at only 27 per cent capacity.

Source : http://www.ft.com/cms/s/0/78be97c0-1f52-11df-9584-00144feab49a.html

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