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Abstract

The case is set in mid-2009, about six months before the scheduled worldwide launch of Microsoft Azure. The group director of cloud computing for Microsoft India is mulling over the relative merits and demerits of launching Azure simultaneously in India with the rest of the world. Cloud computing is a paradigm shift in the information technology (IT) industry that fundamentally changes the way software and services are delivered to an end-user’s desktop. Cloud computing enables shared resources - software, hardware and information - to be provided to consumers on demand, charging them based on usage. Azure is Microsoft’s offering in this space, providing software and infrastructure as a service and also a platform to develop new applications on a pay-per-use model. Microsoft has always made its products available to users in the traditional license model, and Azure would be a paradigm shift not only in terms of technology but also in terms of the business model - from a one-time license fee and periodical maintenance contracts to a pay-as-you-use flexible model. The director had to decide whether the nascent Indian market was ready to adopt this new technology and business model. He also had to decide which segments of the Indian industry Microsoft Azure should target. There were a lot of reasons - presence of a strong IT development community, increasing IT adoption trends across Indian industries and presence of a very big potential customer base in terms of the small and medium enterprises (SMEs) - why the Indian market looked very lucrative. On the flip side, there were concerns such as poor current IT adoption, highly rampant piracy, low-to-average availability of infrastructure (essential to the success of Azure), such as electricity and broadband penetration in India, and the unique ‘do-it-for-me’ attitude of the Indian businessperson, which translated to significant initial costs in terms of time and effort required to increase awareness.
Location:
Size:
Large
Other setting(s):
2009

About

Abstract

The case is set in mid-2009, about six months before the scheduled worldwide launch of Microsoft Azure. The group director of cloud computing for Microsoft India is mulling over the relative merits and demerits of launching Azure simultaneously in India with the rest of the world. Cloud computing is a paradigm shift in the information technology (IT) industry that fundamentally changes the way software and services are delivered to an end-user’s desktop. Cloud computing enables shared resources - software, hardware and information - to be provided to consumers on demand, charging them based on usage. Azure is Microsoft’s offering in this space, providing software and infrastructure as a service and also a platform to develop new applications on a pay-per-use model. Microsoft has always made its products available to users in the traditional license model, and Azure would be a paradigm shift not only in terms of technology but also in terms of the business model - from a one-time license fee and periodical maintenance contracts to a pay-as-you-use flexible model. The director had to decide whether the nascent Indian market was ready to adopt this new technology and business model. He also had to decide which segments of the Indian industry Microsoft Azure should target. There were a lot of reasons - presence of a strong IT development community, increasing IT adoption trends across Indian industries and presence of a very big potential customer base in terms of the small and medium enterprises (SMEs) - why the Indian market looked very lucrative. On the flip side, there were concerns such as poor current IT adoption, highly rampant piracy, low-to-average availability of infrastructure (essential to the success of Azure), such as electricity and broadband penetration in India, and the unique ‘do-it-for-me’ attitude of the Indian businessperson, which translated to significant initial costs in terms of time and effort required to increase awareness.

Settings

Location:
Size:
Large
Other setting(s):
2009

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