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Does Infosys results signals the cloudburst before the deluge for Indian IT Industry ?

Last week I was in Bangalore at Electronic city and outside the venerable Infy campus and there was hardly any activity outside the campus, I remember the same Infy campus  entrance a few years ago which used to bustle like a fish market.
At the airport as I moved up the escalator I saw this advertisement positioned in a way that one could not miss it , see the picture below


Today the Infy results were out and the domino affect was not only Infy  stock prices but all IT stocks  which has brought gloom in the market.

I remember this article written more then a year ago by Arun Mysore and I applaud him for getting it right.

"Noted Indian offshore vendor Infosys released its annual results this week. In the last fiscal year 39% of its revenue came from application development and maintenance, 26% from consulting and package implementation, 7.2% from system integration and 7.2% from infrastructure management.
 The key question before vendors like Infosys is what would happen to these revenue streams when cloud transforms the traditional ways of setting up IT infrastructure and running apps."
You can read the full article by clicking on the link below :
http://jaxenter.com/how-exactly-will-cloud-impact-outsourcing-10936.html

Maybe we must now ask the Indian IT companies to share their cloud computing strategy and their projected revenue numbers from cloud related work in their guidance.
Indian  Companies which adopt the cloud will be around in the next five years, the others will be absorbed by the winners at throwaway prices for their ready to use campus and resources.
Today's Infosys results signals the cloudburst before the deluge in sinking the once poster boy Indian IT  industry.

Comments

  1. This post is not targeted at Infy other India owned companies that will be impacted by cloud computing include:
    {Source:http://www.indiatechonline.com/dq-top20-rankings-2009-10-302.php+}
    You may disregard the companies which are US owned since they already run cloud services or have a clear game plan to take their customers to the cloud.
    The Top 20
    1 TCS
    2 Wipro
    3 Infosys Technologies
    4 Hewlett-Packard India (US owned)
    5 Cognizant Technology Solutions (US owned)
    6 IBM India (US owned)
    7 HCL Infosystems
    8 HCL Technologies
    9 Ingram Micro India (US Owned)
    10 Redington
    11 Oracle India (US owned)
    12 Cisco Systems India (US owned)
    13 Dell India (US owned)
    14 Intel India (US owned)
    15 Accenture India (US owned)
    16 Tech Mahindra
    17 SAP India (US/Europe owned)
    18 MphasiS (US owned)
    19 Microsoft India (US owned)
    20 Patni Computer System (US owned)

    ReplyDelete
  2. One of the vertices Infy is focusing today, is Cloud. (As per the COO's statement today). Maybe, the intervention into this space could have been much earlier.

    US companies, including Amazon, have been running Cloud for quite a while.

    ReplyDelete
  3. Finally Infosys changes guard, hopefully KVK will transform Infy the way he did ICICI !

    ReplyDelete

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