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  • 1. SYNOPSIS FOR DISSERTATION A Study onTHE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR START OF INDIASMES Submitted in Partial Fulfillment of the Requirements of AIMA for the Award of the Degree of, PGDM (Finance) programmer. With Reference to BRIDGADE ROAD, BANGALOREUnder organizational Guidance. Institutional Guidance.Mr.Vidyut Barua . Prof. LaxmiSales Manager, Tata Communication Senior FacultyBrigade Road AIMS,Bangalore. ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 1
  • 2. Prepared and submitted by HARICHANDRA KUMAR PGDM (FINANCE) REG. NO-421010186. (20102011) 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 researchReport titled, THE UTILITY CLOUD COMPUTING AS A COST CUTTING FORSTART OF INDIA SMES, BANGALORE is based on organization studyconducted by me under the guidance of MR. KIRAN KS. This is for thepurpose of partial fulfillment of the requirement for the degree of Post GraduateDiploma in Management (PGDM).Name of the guide: Prof. Kiran Ks Name of the student : HARICHANDRAKUMARSignature: Signature :Date: ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 2
  • 3. WORKING TITLE THE UTILITY CLOUD COMPUTING AS A COST CUTTING FOR START OF INDIA SMESCLOUD COMPUTINGCloud 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 cansubmit a task, such as word processing, to the service provider, without actually possessingthe software or hardware. The consumers computer may contain very little software or data(perhaps a minimal operating system and web browser only), serving as little more than adisplay terminal connected to the Internet. Since the cloud is the underlying deliverymechanism, cloud based applications and services may support any type of softwareapplication 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 andstorage devices may be organized to increase the performance of the entire system. In anextension to that concept, cloud computing fundamentally allows for a functional separationbetween the resources used and the users computer, usually residing outside the localnetwork, for example, in a remote datacenter. Consumers now routinely use data intensiveapplications driven by cloud technology which were previously unavailable due to cost anddeployment complexity. In many companies employees and company departments arebringing a flood of consumer technology into the workplace and this raises legal complianceand security concerns for the corporation. ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 3
  • 4. COMPANY PROFILEThe Tata Communications portfolio includes transmission, IP, converged voice, mobility,managed network connectivity, hosted data center, communications solutions and businesstransformation services to global and Indian enterprises & service providers as well as,broadband and content services to Indian consumers. The Tata Global Network encompassesone 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 squarefeet data center space. Tata Communications serves its customers from its offices in 80 citiesin 40 countries worldwide. Tata Communications has a strategic investment in South Africanoperator 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 ofInternational Long Distance, Enterprise Data and Internet Services in India, the company wasnamed "Best Wholesale Carrier" at the World Communications Awards in 2006 and wasnamed the "Best Pan-Asian Wholesale Provider" at the 2007 Capacity Magazine GlobalWholesale Telecommunications Awards for the second consecutive year.Becoming the leading integrated provider to drive and deliver a new world ofcommunications, Tata Communications became the unified global brand for VSNL, VSNLInternational, 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 theBombay Stock Exchange and the National Stock Exchange of India and its ADRs are listedon the New York Stock Exchange (NYSE: TCL). ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 4
  • 5. PURPOSE OF STUDYTo analyze the broadband industry in Bangalore city.AIMTo suggest wais and means to improve the services and benefits to the SMEsCustomers.OBJECTIVESTo 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 me5 ESSENTIAL CLOUD CHARACTERISTICS On-demand self-service Broad network access (Internet) Resource pooling Location independence Rapid elasticity Measured service ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 5
  • 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 technologiesCloud 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 cloudsCloud Service Models Cloud Software as a Service (SaaS) Use providers applications over a network ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 6
  • 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 characteristicsISSUE 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 yetANLYZING 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 ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 7
  • 8. MORE ON SECURITY Trusting vendors 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 AuditsOBJECTIVE 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 ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 8
  • 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.ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 9
  • 10. CLOUD COMPUTING:THE NEXT BIG WAVE IN SMEs MARKETThe basic idea of cloud computing is quite simple. In general terms, cloud computing can bedescribed as a web architecture that allows users to work and save information online. Theaim is to move all of the applications installed on our computers to a remote location. In otherwords, to do away with a number of standard components, including operating systems andhard disks, and make them accessible through an online desktop accessed via a standardbrowser.Gartner defines cloud computing as a style of computing where massively scalable IT-enabled capabilities are delivered as a service to external customers using Internettechnologies. One IT-related function can be a software application. If the softwareapplication is written in such a way that it is "massively scalable," then SaaS is considered aform of cloud computing (SaaS).Instead of data being stored on the PC, it is stored on a server on the Internet. User does notknow, or care, where that server is located. in fact, the data might be scattered across a bunchof servers. Its 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 SMEsSmall to medium sized enterprises (SMEs ) are the primary market for several channelpartners. 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. Cloudcomputing is being offered by such vendors as Google, Salesforce, HP, IBM, Microsoft, andmany others. And cloud computing promises to be providing cost-cutting offerings that are ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES, PEENYA, BANGALORE | 10
  • 11. strongly appealing to SMEs. After all the more popular cloud computing gets, the lesshardware SMEs will need to buy.According to the estimates by IDC, public cloud services will outpace traditional IT spendingover the next five years, representing $$55 billion in 2014 by 2014. According to Gartnerworldwide cloud services revenue would surpass $56.3 billion last year, a 21.3 percentincrease 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 aregetting to grips with the cloud computing technology because of its ability to cut costs andreduce the need for capital equipment - both hardware and software."The adoption of cloud computing has certainly increased in India and is the fastest growingtechnology as coded by few analysts. Cloud computing is the next logical stage in theadoption of virtualization and the transformation of IT," says Ganesan Arumugam, Director -Partners, VMware India & SAARC. VMware is the global leader in virtualization solutionsfrom the desktop throug...