© 2003-10, OrangeScape Technologies Limited. Confidential 1

Cloud completes the software insanity model

Mani Doraisamy

Co-founder & Chief Technology Officer, OrangeScape

© 2003-10, OrangeScape Technologies Limited. Confidential 2

Agenda: 15 * 3 = 30 minutes

Cost of Transaction

Cost of Clone

Time to Transact

© 2003-10, OrangeScape Technologies Limited. Confidential 3

Cost of a Cola!

Why can’t “Sugared water”cost

“Sugar + Water + some electricity bill” ?

+

+

© 2003-10, OrangeScape Technologies Limited. Confidential 4

Cost of a Cola -> Cost of Transaction

Demand chain(for distribution)

Supply chain (for procurement)

© 2003-10, OrangeScape Technologies Limited. Confidential 5

Transaction cost on Cloud = Zero!

Cloud is both the “fuel” & the “brand ambassador”

IaaS

PaaS

You are here!

SaaS

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SaaS

Time to transact on Cloud = Zero!

When all hell breaks loose ...& your customers are standing on your head …

Slashdot effect

IaaS/PaaS

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Cost of clone = Zero!

= atleast “raw material” cost

= “raw material” cost is Zero– Platforms (JEE), Databases (MySQL)

-> Open source -> Freemium -> Free (Powering engines of Cloud)

© 2003-10, OrangeScape Technologies Limited. Confidential 8

Summary: Why is this insane?

Where? What? Future?

Supply chain Cost of procurement is Zero

Cost of running a company is very low

Cost of raw material is Zero

Demand chain Cost of distribution is Zero

Cloud is the new distribution network.You don’t need be a Microsoft or IBM to reach your customers

• Individuals/Small teams experiment idea in the open • Customers expect everything free (atleast try & buy)• Business model –> Taking chances (All I spend is my

effort)

© 2003-10, OrangeScape Technologies Limited. Confidential 9

Shoot your questions!

Twitter: @manidoraisamyBlog: http://manidoraisamy.blogspot.com