1. SYNOPSIS FOR DISSERTATION
A Study on
―THE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR START OF INDIA
SME’S
Submitted in Partial Fulfillment of the Requirements of
AIMA for the Award of the Degree of,
PGDM (Finance) programmer.
With Reference to
BRIDGADE ROAD, BANGALORE
Under organizational Guidance. Institutional Guidance.
Mr.Vidyut Barua . Prof. Laxmi
Sales Manager, Tata Communication Senior Faculty
Brigade Road AIMS,
Bangalore.
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2. Prepared and submitted by
HARICHANDRA KUMAR
PGDM (FINANCE)
REG. NO-421010186.
(2010—2011)
January-December
ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES.
1st Cross, 1st Stage, Peenya,
Bangalore – 560058.
DECLARATION
I,HARICHANDRA KUMAR here by declare that this Industrial research
Report titled, ―THE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR
START OF INDIA SME’S, BANGALORE‖ is based on organization study
conducted by me under the guidance of MR. KIRAN KS. This is for the
purpose of partial fulfillment of the requirement for the degree of Post Graduate
Diploma in Management (PGDM).
Name of the guide: Prof. Kiran Ks Name of the student : HARICHANDRA
KUMAR
Signature: Signature :
Date:
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3. WORKING TITLE
“THE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR START OF
INDIA SME’S
CLOUD COMPUTING
Cloud computing refers to the on-demand provision of computational resources (data,
software) via a computer network, rather than from a local computer. Users or clients can
submit a task, such as word processing, to the service provider, without actually possessing
the software or hardware. The consumer's computer may contain very little software or data
(perhaps a minimal operating system and web browser only), serving as little more than a
display terminal connected to the Internet. Since the cloud is the underlying delivery
mechanism, cloud based applications and services may support any type of software
application or service in use today.
In the past, both data and software had to be stored and processed on or near the computer.
The development of Local Area Networks allowed for a system in which multiple CPUs and
storage devices may be organized to increase the performance of the entire system. In an
extension to that concept, cloud computing fundamentally allows for a functional separation
between the resources used and the user's computer, usually residing outside the local
network, for example, in a remote datacenter. Consumers now routinely use data intensive
applications driven by cloud technology which were previously unavailable due to cost and
deployment complexity. In many companies employees and company departments are
bringing a flood of consumer technology into the workplace and this raises legal compliance
and security concerns for the corporation.
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4. COMPANY PROFILE
The Tata Communications portfolio includes transmission, IP, converged voice, mobility,
managed network connectivity, hosted data center, communications solutions and business
transformation services to global and Indian enterprises & service providers as well as,
broadband and content services to Indian consumers. The Tata Global Network encompasses
one of the most advanced and largest submarine cable networks, a Tier-1 IP network,
connectivity to more than 200 countries across 400 PoPs and more than one million square
feet data center space. Tata Communications serves its customers from its offices in 80 cities
in 40 countries worldwide. Tata Communications has a strategic investment in South African
operator Neotel, providing the company with a strong anchor to build an African footprint.
The number one global international wholesale voice operator and number one provider of
International Long Distance, Enterprise Data and Internet Services in India, the company was
named "Best Wholesale Carrier" at the World Communications Awards in 2006 and was
named the "Best Pan-Asian Wholesale Provider" at the 2007 Capacity Magazine Global
Wholesale Telecommunications Awards for the second consecutive year.
Becoming the leading integrated provider to drive and deliver a new world of
communications, Tata Communications became the unified global brand for VSNL, VSNL
International, Teleglobe, Tata Indicom Enterprise Business Unit and CIPRIS on February 13,
2008.
Tata Communications Ltd. is a part of the $67.4 billion Tata Group; it is listed on the
Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed
on the New York Stock Exchange (NYSE: TCL).
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5. PURPOSE OF STUDY
To analyze the broadband industry in Bangalore city.
AIM
To suggest wais and means to improve the services and benefits to the SME’s
Customers.
OBJECTIVES
To provide a general overview of cloud computing including:
• How could affect my future business
• Is the cloud for me and my business
• What are some of the issues I should consider
• Why should this be important to me
5 ESSENTIAL CLOUD CHARACTERISTICS
• On-demand self-service
• Broad network access (Internet)
• Resource pooling
– Location independence
• Rapid elasticity
• Measured service
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6. Additional Cloud Characteristics
Cloud computing often leverages:
– Massive and Rapid scalability
– Homogeneity
– Virtualization
– Resilient computing
– Low cost software
– Geographic distribution, (many datacenters)
– Service orientation
– Advanced security technologies
Cloud Deployment Models
• Private Cloud (a.k.a. Internal Cloud)
– enterprise owned or leased
• Community Cloud (a.k.a. External Cloud)
– shared infrastructure for specific community
• Public cloud (a.k.a. External Cloud)
– Sold to the public, mega-scale infrastructure
• Hybrid cloud
– composition of two or more clouds
Cloud Service Models
• Cloud Software as a Service (SaaS)
– Use provider’s applications over a network
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7. • Cloud Platform as a Service (PaaS)
– Deploy customer-created applications to a cloud
• Cloud Infrastructure as a Service (IaaS)
– Rent processing, storage, network capacity, and other fundamental computing
resources
– To be considered “cloud” services are deployed on top of cloud infrastructure
that has the key characteristics
ISSUE OF THE CLOUD
• Security (number 1 concern)
• Performance
• Availability
• Lack of Standards
• Inability to Customize
• Hard to Integrate with current in-house IT
• Regulatory requirements
• Note enough suppliers yet
ANLYZING CLOUD SECURITY
• Clouds are massively complex systems that can be reduced to simple primitives that
are replicated thousands of times
• These complexities create many issues related to security as well as all aspects of
Cloud computing
• Clouds typically have a single security architecture but have many customers with
different demands
• Cloud security issues may drive and define how we adopt and deploy cloud
computing solutions
• Highly sensitive data is likely to be on private clouds where organizations have
complete control over their security model
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8. MORE ON SECURITY
• Trusting vendor’s security model
• Where is the data stored and who is securing it
• Inability to respond to audit requirements
• Indirect administrator accountability
• Loss of physical control
• Data retention / backup standards
• Redundancy / Disaster Recovery
• Handling Compliance
o GLBA, HIPAA, SOX, PCY
o State laws
o International – EU Data Protection Directive
o FTC Scrutiny
SAS 70 Audits
OBJECTIVE OF CLOUD COMPUTING
• Core objectives and principles that cloud computing must meet to be successful:
– Security
– Scalability
– Availability
– Performance
– Cost-effective
– Acquire resources on demand
– Release resources when no longer needed
– Pay for what you use
– Leverage others’ core competencies
– Turn fixed cost into variable cost
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9. CLOUD BASED SERVICE EXAMPLE
• Peer to Peer
– BOINC, Skype
• Web Apps
– Facebook, Twitter, YouTube
• Security as a Service
– MessageLabs, Purewire, ScanSafe, Zscaler
• Software plus services
– Microsoft Online Services
– Software as a Service
– GoogleApps, Salesforce, SpringCM
– Storage
– Content Distribution
– BitTorret, Amazon CloudFront
– Sychronisation
– LiveMesh
CLOUD ECONOMICS
• Estimates vary widely on possible cost savings
o “If you move your data center to a cloud provider, it will cost a tenth of the
cost.” – Brian Gammage, Gartner Fellow
• Use of cloud applications can reduce costs from 50% to 90% - CTO of Washington
D.C.
• IT resource subscription pilot demonstrated a 28% cost savings - Alchemy Plus cloud
(backing from Microsoft)
• “Using Cloud infrastructure saves 18% to 28% before considering that you no longer
need to buy peak capacity” – George Reese, founder Valtira and enStratus
• When implementing Cloud you must consider other costs which may not be apparent
today.
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10. CLOUD COMPUTING:THE NEXT BIG WAVE IN SME’s MARKET
The basic idea of cloud computing is quite simple. In general terms, cloud computing can be
described as a web architecture that allows users to work and save information online. The
aim is to move all of the applications installed on our computers to a remote location. In other
words, to do away with a number of standard components, including operating systems and
hard disks, and make them accessible through an online desktop accessed via a standard
browser.
Gartner defines cloud computing as a style of computing where massively scalable IT-
enabled capabilities are delivered as a service to external customers using Internet
technologies. One IT-related function can be a software application. If the software
application is written in such a way that it is "massively scalable," then SaaS is considered a
form of cloud computing (SaaS).
Instead of data being stored on the PC, it is stored on a server on the Internet. User does not
know, or care, where that server is located. in fact, the data might be scattered across a bunch
of servers. It's all up in the sky someplace. Hence the term "cloud".
Cloud computing transforms computer processing, data storage, and software
applications, allowing them to be delivered as a utility. Just like people tap into
existing infrastructure for water or power, companies can now tap into a variety of
services - applications, platforms, raw computing power and storage - all via the
Internet.
CLOUD COMPUTING FOR SMEs
Small to medium sized enterprises (SMEs ) are the primary market for several channel
partners. Even for an industry prone to hype, the buzz surrounding cloud computing is sky-
high. There is no doubt that few sectors have generated more interest than cloud computing.
The vendors are reinventing their technology strategies with cloud offerings. Cloud
computing is being offered by such vendors as Google, Salesforce, HP, IBM, Microsoft, and
many others. And cloud computing promises to be providing cost-cutting offerings that are
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11. strongly appealing to SMEs. After all the more popular cloud computing gets, the less
hardware SMEs will need to buy.
According to the estimates by IDC, public cloud services will outpace traditional IT spending
over the next five years, representing $$55 billion in 2014 by 2014. According to Gartner
worldwide cloud services revenue would surpass $56.3 billion last year, a 21.3 percent
increase over 2008 revenue of $46.4 billion. By 2013, Gartner forecasts the market will reach
$150.1 billion.
There are 3.5 million SMEs out there in India. A growing number of SMEs in India are
getting to grips with the cloud computing technology because of its ability to cut costs and
reduce the need for capital equipment - both hardware and software.
"The adoption of cloud computing has certainly increased in India and is the fastest growing
technology as coded by few analysts. Cloud computing is the next logical stage in the
adoption of virtualization and the transformation of IT," says Ganesan Arumugam, Director -
Partners, VMware India & SAARC. VMware is the global leader in virtualization solutions
from the desktop through the datacenter to the cloud.
According to Cisco, cloud applications offer SMEs more than just peace of mind - they offer
flexibility as well. This is a critical component of an overall growth strategy, as businesses
often find themselves at a point where they need to spin up (or spin down) resources to match
customer needs.
When it comes to the cloud, IBM immediately comes to mind. Its Smart Business Cloud
services and solutions are the case in point. With its combination of services and systems,
which comprises public and private clouds and cloud-based versions of some of IBM's most
popular applications, IBM is looking to the cloud for everything from analytics and software
and services delivery to services such as storage management and cloud-based e-mail,
scheduling and contact information.
The India Software Lab team at IBM India, have set up a dedicated Cloud Centre, where they
bring in partners, system integrators, clients and prospects to understand and better utilize the
cloud offerings and its benefits.
With the rapidly evolving models of IT, HP is rapidly a ushering a new era in cloud
computing across its portfolio of products.
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12. RESEARCH METODOLOGY
STEP 1: SAMPLING METHOD
The proposed research will use random sampling method to collect data through a pre
tested questionnaire.
STEP 3: AREA OF STUDY
The research would be carried out with the SME’S of
INDIRANAGAR,MALLESHWARM AND BRIGADE ROAD.
STEP 4: RESEARCH PERIOD
Research work will be carried out for 45 days
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13. QUESTIONNAIRE
Dear respondent,
I HARICHANDRA KUMAR a project trainee of TATA Communications will be glad
if you will take some time out and the following questions as regards to usage and
acceptance of services of Cloud Computing among the Indian Small and Medium
enterprises.
Thank you.
NAME:
AGE:
NAME OF THE ENTERPRISE:
DESIGNATION:
MAILING ID:
PHONE NO:
Which broad Band you use?
Tata Airtel BSNL
Reliance Others
What is broadband used for?
_________________________________
What Factors you consider while Taking Broad Band?
Speed Charges
Brand Others Specify ……………
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14. Do you Know about cloud computing?
Yes No
Have you used before any Broad Band?
Yes No
Are you aware of TATA Communication?
Yes No
Do your enterprises maintain a server or it rents it out?
Owns server
Rents the facility
<Please specify the name of the service provider>
How much expenditure does the enterprise incur while availing the currently used
facility?
------------------------------------------------------------------------------------------
Cloud computing offers different email architecture (as listed below). Choose the best
service as regards to your enterprise’s needs.
On premise email
Hosted mail
Hosted support services
Split domain email
Cloud computing is always cheaper for midsized companies?
YES [ ] NO [ ]
Is your enterprise willing to SWITCH to cloud computing?
YES [ ] NO [ ]
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15. The benefits of cloud computing goes beyond cost (the benefits listed below). Rank
the scale of 1 to 4, as regards to importance from the point of view of enterprise
needs.
Rapidly provision new users [ ]
Allocate valuable IT professionals to more business centric projects [ ]
Always run the latest software and configuration without upgrade hassles [ ]
Shift the financial burden from upfront capital expense to ongoing operating expense
[]
Thank you.
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