month (HT 2009). These services are mainly targeted to SMEs. India also has anumber of local cloud providers (Table 2). In July 2009, VMware opened a cloudcenter in Pune (eeherald.com 2009). Likewise, the U.S. Company, Parallelsannounced a plan to establish cloud operations in India . The SaaS vendor,Salesforce.com, which started its operations in 2005, is focusing on cities such asBangalore, Gurgaon and Mumbai and is taking measures to create cloudawareness. Salesforce.com¶s clients include big companies such as Bharti AXAGeneral Insurance, eBay India, Sify Technologies, Polaris Software Labs, LodhaGroup, Servion, Maytas Properties, HCL, Sasken Communication Technologies,Ocimum Biosolutions, and state owned National Research DevelopmentCorporation (NRDC) (Srikanth 2009). The Indian offshoring industry is probablythe prime example of an industry that is likely to feel the impact of cloudcomputing. The demand for cloud related services is especially high in theoffshoring industry and technology hubs such as Bangalore and Delhi (EconomicTimes 2009).
L EFFICIENCY: PRODUCTIVITY
Operational efficiency is related to the costs of accomplishing corporatefunctions. Anecdotal evidence from developing countries such as China, India andSouth Africa indicates that adoption of the cloud may lead to productivity andefficiency gains. As noted earlier, cloud has enabled some South African callcenters to increase productivity by 20% (Firth 2009). The Indian cloud Provider, Netmagic reported that the company¶s cloud services helped its clients cut costs by25-30% (Abrar 2009). Microsoft claimed that its cloud services offered in Indiawould help reduce IT costs by 10 -50% . Likewise, the cloud-based model hashelped Chinese software start-ups access to infrastructures and data centers and