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In 2011, regional SIs, VARs and distributors will be forced to better develop specialties by vertical industry and business solution to deliver the customer value required to survive.

Throughout 2010, Cloud computing was perceived as the future of enterprise IT; acceleration of cloud technology across emerging Indian market was mainly the result of favorable technology climate around virtualization, open standards, and standardized and commoditized IT infrastructure. In the channel community, while many showed their concerns around cloud computing; others remained optimistic and benefitted from the growing conventional technology.

In 2011, the cloud-related hype of 2009 and most of 2010 will steadily give way to a more sober, and realistic understanding of the relevance and applicability of cloud computing among organizations. The debate over public versus private versus hybrid approaches, which led to cloud-related market confusion over the past 12 months; in 2011 will actually serve to help organizations better understand and therefore position cloud-based approaches relative to existing IT initiatives. Channel is also expected to play a crucial role in

making IT decision makers educate on the distinction between internal versus external service deployments, and between dedicated and shared access. Over the next 12 months, we expect cloud computing to increasingly be considered alongside (and often compared to) other, related sourcing approaches, including those offered by more traditional outsourcing vendors and hosted service providers.

As per Springboard Research, Indian organizations are currently far more receptive to cloud-related marketing messages than other organizations in APEJ region. As per a recent Springboard study, only 19 percent of enterprises in India view cloud as over-hyped. In terms of overall spending, the public cloud market in AP remains dominated by software-as-a-service (SaaS) solutions. Among Indian organizations, SaaS offerings, storage and enterprise applications (BI, CRM, ERP, etc.) are the most widely adopted. Springboard Research expects this adoption to evolve significantly over the next 12

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