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.

Prepared and submitted by

| 1

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:

WORKING TITLE

“THE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR START OF

INDIA SME’S

| 2

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.

| 3

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).

| 4

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

| 5

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

• Cloud Platform as a Service (PaaS)

– Deploy customer-created applications to a cloud

• Cloud Infrastructure as a Service (IaaS)

| 6

– 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

| 7

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

| 8

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.

| 9

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

strongly appealing to SMEs.  After all the more popular cloud computing gets, the less

hardware SMEs will need to buy. 

| 10

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. 

| 11

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

| 12

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 ……………

Do you Know about cloud computing? Yes No

| 13

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 serverRents 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 emailHosted mailHosted support servicesSplit domain email

Cloud computing is always cheaper for midsized companies?

YES [ ] NO [ ]

Is your enterprise willing to SWITCH to cloud computing?

YES [ ] NO [ ]

| 14

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.

| 15