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Submitted in Partial fulfillment of the requirements for the award of Degree Master of Business Administration (MBA)

Submitted by:
Ankur Gupta

Under Guidance of:
Mr. R.K.Sharma

Bharati Vidyapeeth Institute Of Management & Research New Delhi 2011 – 2013


As a part of course curriculum of my MBA program we are asked to undergo 6-8 weeks summer training in any organization so as to give us exposure to practical management & to get in familiar with various activities taking place in an organization. Indian economy has undergone a radical transformation in the last 3 decade. The discoveries & invention in various fields of life is perhaps being the reasons for this transformation. The marketing strategy in India which was practiced in the olden days has either been charged or been refined so as to adjust with the dynamic world. Keeping in mind the development & eagerness, the need for comprehensive study of IT market was felt, and to fulfill this need, this study has been undertaken by me. The purpose of the study too knew the cloud computing scenario in India. In order to achieve the above objective, primary and secondary data have been collected from direct meeting and through internet. Last but not the least, I have tried my level best to enrich the project & make it an excellent one by contributing my efforts in a great manner for the study.



Completing a task is never a one-man effort. It is often the result of valuable contribution of a member or individuals in a direct or an indirect manner, which helps in shaping and achieving an objective. Here I cannot resist the temptation of expressing my sincere thanks to those who have contributed greatly for accomplishing this task. I would like to express my gratitude to Mr. Vivek (sales manager) for his attention, support and providing me an opportunity to complete my project on the topic ―Cloud Computing and awareness among general public ‘‘ The learning during the project was immense & invaluable. My work basically included the study of various IT companies and understanding about their services. The present report is an amalgamation of my thoughts and my efforts to study the present IT scenario. Further a detailed study has been done to know about the different kind of products that IT companies use in present scenario. Last but not the least I would like to thank my parents for the support without which this project could never have been in the present form.

Ankur Gupta


Chapter 1 Industry History


The industry also generated employment for almost 70. he said: ―There is no reason for us to be worried. SAP. India‘s software body Nasscom is confident of a 16-18 per cent growth rate of the country‘s information technology (IT) industry in FY‘12. the industry‘s contribution to India‘s GDP has grown significantly from 1. Global giants like Microsoft.2% in 1999-2000 to around 4.000 people in over 100 firms.8% in financial year ‗06. The growth momentum attained by the overall economy since the late 1990s to a great extent can be owed to the IT sector. Performance Of IT Sector In Financial Year 2011-12 In India Despite economic uncertainties in the US and Europe. 5|Page . and Lenovo have already established their captive centers in India. a Nasscom and Crisil report noted that India is positioned as a knowledge services powerhouse. with the sector slated to bring in about $68-70 billion in revenue. and has been estimated to cross 5% in FY07.. Indian IT companies have globally established their superiority in terms of cost advantage. Growth in the domestic market is estimated at 15-17 per cent. availability of skilled manpower and the quality of services. As for the business process outsourcing (BPO) industry. These companies recognize the advantage India offers and the fact that it is among the fastest growing IT markets in the Asia-Pacific region. Correspondingly. This assumes significance as the industry body had presented a conservative outlook of 16-18 per cent growth in IT exports in 2011-12 in the wake of the slow economic recovery in the US and uncertainty in the European region in February this year. They have been enhancing their global service delivery capabilities through a combination of organic and inorganic growth initiatives.9billion global industry. with revenues of about $1920 billion. with 70 per cent share of the $2. We have spoken to customers and they are looking at expanding into geographies and bringing newer solutions to the market‖.Overview of the IT Industry The Information Technology (IT) sector in India holds the distinction of advancing the country into the new-age economy. Though Nasscom president Som Mittal maintained a cautious outlook.. Perceptible is the transformation since liberalization – India today is the world leader in information technology and business outsourcing. The sector has been growing at an annual rate of 28% per annum since FY01. Oracle. well supported by a liberalized policy regime with reduction in telecommunication cost and import duties on hardware and software.

In fact. India is now a power to reckon with.‖ said Nasscom president Som Mittal. and Hardware.4% in the software and services exports in FY06. Thanks to the success of the IT industry.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5. followed by Canada and Philippines. In addition to fuelling India‘s economy. to reach $16. The Indian information technology industry has played a key role in putting India on the global map. While IT Services accounted for 34% of the total revenue generated by the domestic market in FY06. the industry has grown 16 times in size.7% share and the software products and engineering services segment with 16. The exports market is dominated by the IT services market holding a share of 56. accounting for over 37 per cent of the total global sourcing BPO revenues.8 bn.9% share. IT-enabled Services and Business Process Outsourcing (ITeS-BPO). according to NASSCOM. R&D and Software Products segments together accounted for 10% of the revenue. Industry Structure The size of the Indian IT industry.―In the last decade. System Integration. the apex body for software services in India. followed by the ITeS-BPO segment with 26. the revenue of the information technology sector has risen from 1. The domestic IT market is broadly divided into the following four segments: IT Services. direct and indirect employment creation is estimated at 4.5 million. contributed 7%.8 per cent in FY 2008-09. India is the leading BPO destination. The ITeS-BPO segment. According to the National Association of Software and Service Companies (NASSCOM). on the other hand. the Engineering Services. IT 6|Page . India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM). The exports market constitutes the largest segment accounting for 75% of the total revenue generated by the Indian software industry.9 billion (including domestic) in FY‘11. has been estimated to be around US$ 47. The Indian IT industry can be broadly divided into two markets: domestic market and exports market. software segment which includes engineering and Research & Development (R&D) services.

from the earlier few million dollars worth exports in early 1990s. The enormous base of skilled manpower is a major draw for global customers. contributing nearly 78 per cent to the total software and services revenue of US$ 59. Despite the uncertainty in the global economy.6 billion.  IT-BPO exports (including hardware exports) grew by 16 per cent from US$ 40. 7|Page . TCS and Wipro—have seen revenue growth from all important sources of income: from the North American and European regions. As per NASSCOM's latest findings:  Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71. over 1. the software and services segment accounted for US$ 59. A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008.6 billion. India has the second largest English-speaking scientific professionals in the world.9 billion in FY 2007-08 to US$ 47. BPO.Consulting.3 billion in FY 2008-09. Of this. According to NASSCOM software and services exports (including exports of IT services.7 billion in aggregate revenue (including hardware).785 computer software professionals every year. India's most prized resource is its readily available technical work force. Application Management. which train more than 67. the top three IT majors— Infosys. It is estimated that India has over 4 million technical workers. second only to the US. Software testing. growing at an annual rate of 30 per cent per annum. The government expects the exports turnover to touch US$ 80 billion by 2011. engineering services and R&D and software products) reached US$ 47 billion in FY 2008-09. Infrastructure Management Services. Service-oriented architecture and Web services. in the financial services vertical and from application maintenance and development (ADM) offerings between fiscal years 2008 and 2009.832 educational institutions and polytechnics.

IT industry will attract Foreign Direct Investment (FDI) of U.1 million units in 2009. as the existing IT infrastructure evolves both in terms of technology and depth of penetration. software products. Employment Generation and IT led Economic Growth. 8|Page . India's personal computer (PC) market is likely to grow by 13.a front-runner and bring the benefits of electronics to every walk of life.2 million jobs in IT by 2008.1 billion in FY 2007-08. domestic IT market (including hardware) reached US$ 24. and e-businesses thus creating a number of opportunities for Indian companies. According to research firm Gartner. Further. IT Exports will account for 35% of the total exports with potential for 2.3 per cent.S. All of these segments have opportunities in foreign and as well as in domestic markets. The laptop market is expected to grow by 37 per cent in 2009 to 3. annual revenue projections for ' India IT Industry ' in 2008 are US $ 87 billion and market openings are emerging across four broad sectors. $ 4-5 billion. Such growth in the software and services sector has been achieved because of spectacular growths in some segments. According to sources. Sources estimates    IT services will contribute over 7. a growth of 5.5 % of the overall GDP. IT enabled services. The master control of 'Indian IT Industry' is in the hands of Department of Information Technology (DOT) which aims to make ' India IT Industry '.69 million units and constitute a third of the total PC market. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50 million-US$ 100 million up for grabs. a Global IT Super Power by 2008 . it is focused on Creation of Wealth.7 per cent to 11.Domestic Markets India's domestic market has also become a force to reckon with. According to NASSCOM. IT services. aided by a surge in demand for laptops.3 billion in FY 2008-09 as against US$ 23.

Number and quality of training facilities. Increase utilization of Internet. Domestic software market. Availability of technical work force. Market capitalization of IT shares will be around U.S. R&D. $ 225 billion. venture creators and incubation to promote           Electronics and hardware manufacturing. Use of IT to increase productivity. Use of IT as a means of generating employment. India‘s IT Industry (US$ bn) 9|Page . 'IT Industry India ' is a knowledge industry that will help take the Indian economy to a new horizon and further change the ' Scenario of Indian IT Industry' fueling India's economic growth. Government of India (GOI) has taken major steps towards promoting ' India IT Industry '. With the formation of a new ministry for IT. It has taken steps to promote angel investors. Development of local language softwares. Increase PC penetration.

IT Services Exports Indian IT Services exports grew from US$ 10 bn in FY05 to US$ 13. 10 | P a g e . Human resource and other high-end knowledge-based processes account for 2% and 8-10% respectively. posting a growth of 36%. Overseas companies operating in sectors like high–tech. Within the ITeS-BPO segment. registering a growth of 33. Revenue from ‗projects‘ dominated the IT Services exports with a share of 58%. Customer Interaction Services (CIS) account for nearly India‘s IT Exports XIV 45-50% of the total ITeS-BPO services exports while finance & accounting contributes for the remaining 40-45%.4%. and is further expected to reach US$ 18. The Software product. India is well positioned in the engineering and R&D services segment.3 bn in FY06. Apart from Indian companies offering these services. heavy machinery.1 bn in FY07. automobile. with outsourcing and support & training activities accounting for 33% and 9% respectively. several foreign companies (both captive and third party) are also setting up base in India to provide these services. Engineering services and R&D segment contributes around 17% of the software and services exports. telecommunications. aerospace. construction and industrial products are looking at off-shoring their engineering and R&D related work to India.

Today.Few important characteristics of the Indian IT sector include:   Export intensive: Ever since the industry‘s evolution. A large number of these companies are unorganized players Emerging Trends in the Indian IT Services Industry While the global IT players are aggressively scaling up their operations in India. testing. consulting and engineering designing. exports has been the major contributor to the industry. due to the advantages that the Indian industry offers. offering a wide range of software products and services. the Indian IT companies are also preparing to tap the global market. business process management and IT infrastructure services.000 companies which operate in the IT space in India. Concentration on Low-End Services: Low-end services such as customized software services and maintenance have been the key strength of the Indian IT companies. Fragmented Industry: D&B‘s in-house database has identified over 8.   Labour Intensive Industry: The very nature of the services offered by the industry makes human resources a significant driver for the industry. These new services include IT consulting. which in a way allows the IT companies to de-risk their business from pricing pressures and enter into newer areas which provide them higher growth and profitability. companies are expanding their service offerings from application development and maintenance to high end services like testing. 11 | P a g e . These companies are now however moving up the value chain offering end-to-end solutions to clients. New Service Offerings The Indian IT companies are expanding their service offerings to provide a complete basket of services to their clients. The companies are witnessing significant change with regard to their service offerings and geographical concentration. The global delivery model has not only facilitated the companies in delivering quality of work but also helped them to control costs.

Growing presence of MNCs Cost arbitrage and the availability of a large talent pool has attracted several MNCs to India. Capgemini and Oracle among others have not only increased their headcounts in India but also outperformed their global performance in terms of revenue growth. including the British Telecom-Tech Mahindra deal which was worth US$ 1 bn. with a market share of 25% in the Asia Pacific region. Some of the major global companies like Intel. As per the data compiled by Technology Partners International (TPI). IBM and CSC are cutting jobs abroad and shifting their base to India.Larger Deal Size Indian IT companies have successfully scaled up operations and made a mark in the global outsourcing market.7 bn in 2006. the Pearl Insurance-TCS deal (£ 486 mn). 12 | P a g e . Their Indian operations are witnessing strong growth as compared to their global business. the Skandia-HCL Technologies deal (US$ 200 mn) and the Kimberly-Clark-TCS deal (US$ 100 mn). evident from the large deals bagged by the Indian IT companies in the past one year. Most of the deals bagged by the major companies were in the Banking and Financial Service space which reiterates the growth in this vertical. the Asia Pacific region witnessed a significant increase in total deals amounting to US$ 10 bn in 2006 from US$ 6.1 bn in 2005. Indian companies bagged contracts (above US$ 25 mn) worth US$ 2. Big players like IBM. Accenture.

1 bn US$ 1. However. 13 | P a g e . After the US. Europe is also emerging as an important market for the Indian IT industry.7 bn Rs 1 bn Investment in its third Over next three years phase of expansion DELL -Manufacturing South India Cognizant Technologies US$200 mn Till 2009 plant in Emerging Market: In terms of geographical contribution. Mergers and acquisitions has been one of the routes that the Indian companies have adopted to enhance their presence in European markets.Investment Plans of MNCs in India Company IBM Investment US$ 6 bn Plan Investment to be made in the next three years Intel Cisco Microsoft SAP More than USS 1 bn US$ 1. Indian companies are looking at the European region as a potential market for exports and also to expand their global presence. the US continues to remain the key market for Indian IT companies.1% in FY06. considering the fact that the share of exports to Europe from India increased from 22.2% of the software and services (including BPO) exports from India.2% in FY03 to 25. accounting for 67.

are also emerging as promising segments for the Indian IT companies. the Indian IT companies are on a hiring spree which indicates their bullishness on their order flows. utilities. limitations in domestic infrastructure and competition from other global players offering manpower at low cost like China. Concerns for the Indian IT Industry Though demand conditions have been optimistic. healthcare. 14 | P a g e .New End-users: In terms of user industries. the Indian IT sector is exposed to certain risks which may deter growth.. NASSCOM opines that there will be a shortage of half a million people in the IT and ITeS segments by 2009. Together. and the trend is expected to continue further. the manufacturing sector can provide large number of deals/assignments to the Indian players. domain expertise. The Indian IT companies are also vying for inorganic growth. anticipated slowdown in the US economy. the BFSI and hi-tech/telecommunication industries remain the leading verticals for the Indian IT companies. increasing activities of global MNCs in India will make difficult employee retention for Indian companies. retail. Though these verticals have good growth potential. service offerings. etc. As a result. With an industry attrition level hovering around 20-25% (often higher for smaller players). While the BFSI sector has the potential to provide large size contracts to the IT companies. An appreciating rupee. shortage of skilled manpower. with a quest for newer geographical areas. All the major players have increased their manpower by 15-50%. Presently. companies are likely to offer an increase of 10-15% in salaries in the coming years. Besides. customers and markets. Philippines and Vietnam can have a negative impact on the performance of the Indian IT companies. these sectors account for 58% of the Indian IT-ITeS exports. other sectors such as manufacturing. the companies are expected to scale up their operations.

Unless the Government defers the withdrawal of tax incentives which is due to expire after 2009. IT companies operating out of the Software Technology Parks of India (STPIs) are likely to witness an increase in their tax liabilities.On the financial front. Key Positives & Negatives for the Indian IT Industry Positives Growth in IT spending Negatives Rupee Appreciation Opening up of newer geographies like Slowdown in the US economy Europe Strong volume growth Increase in offshore spending Wage inflation Higher Attrition rate M&A to Increase reach. Philippines & Vietnam 15 | P a g e . clients and Lack of proper infrastructure offerings Setting training and development centers to Competition from low cost countries. which may reduce their profitability further. wage inflation of 10-15% and forex fluctuation can reduce the top line as well as the bottom line of the companies. train fresh entrants China.

2 Company Profile 16 | P a g e .Chapter .

The portfolio spans the following product categories:           Mainframe Security/Identity and Access Management Cloud Virtualization and Automation IT Management SaaS Service Assurance Service and Portfolio Management EcoSoftware Recovery Management and Data Modeling Nimsoft In 210 CA Technologies embraced the Cloud Strategy by launching the unique concept of IT Supply Chain. 4Base Technology. formerly CA. Project and Portfolio Management. Cassatt. Recovery Management. 2010). NetQoS. Inc. and has more than 700 patent applications pending. allowing a company to manage and secure dynamically both physical and virtual environments and to deliver more flexible IT servic 17 | P a g e . is one of the largest independent software corporations in the world. Oblicore. and Computer Associates International. CA holds more than 400 patents worldwide. as well as virtualization and cloud. distributed. Network Management. Cloud Computing. Specialties Service Management.4 billion US$ in revenue for fiscal year 2010 (ending March 31. Headquartered in Islandia. Nimsoft. CA Technologies posted $4. 2010) and maintains 150 offices in more than 45 countries. Security Management. Inc. Mainframe. Storage Management. Arcot Systems. mainframe environments. New York. (NASDAQ: CA).200 people (March 31.900 engineers. Data Modeling. the company creates software which runs in mainframe. including 5. The company employs 13. CA Technologies claims that its software is used by a majority of the Forbes Global 2000 companies. virtualized and cloud environments. and Hyperformix. Virtualization Software products CA offers software products and services for distributed computing. Although the company once sold anti-virus and Internet security programs for consumer personal computers.CA Technologies. Inc. In 2010 the company acquired eight companies to support its cloud strategy: 3Tera.. Application Performance Management. it is primarily known for its commercial mainframe computer and distributed computing applications since the spinoff of their security products into Total Defense. Service Assurance.

working with faculty to enhance curriculum. The organization posted US$280M in revenue for fiscal year 2010 (ending March 31. CA is working with many universities to enable and promote innovation—including funding university research projects in specific areas. to new directions for products. 18 | P a g e . With a presence in over 25 countries. technologies and methodologies. 2010) CA Labs CA Labs was established in 2005 to strengthen relationships between research communities and CA. and education plan. and providing opportunities to interact with CA research and development experts. to best practices. professional associations and government on various projects that relate to CA products. CA Labs has been working closely with universities. technology roadmap. Through a variety of University Relations programs. CA Services works with businesses of all sizes to develop implementation.CA Services CA Services is a services organization within CA Technologies employing over 1. The results of these projects vary from research publications.200 consultants.

Product innovations ongoing. We would be a small player. Some staff have experience of end-user sector. Products have required accreditations. Direct delivery capability. convenient computer/Internet access Local control and flexibility Integration of computing in curricula Successful integrated administrative computing End-user sales control and direction. Processes and IT should cope. Limited budget. Customer service staff need training. responsive administration of computing Well-maintained network Universal. Need more sales people. Have customer lists. Better product life and durability. competitors. 19 | P a g e . Spare manufacturing capacity. Some gaps in range for certain sectors. No pilot or trial done yet. Management is committed and confident.SWOT analysis Strengths                   Flexible. Can serve from existing sites. Superior product performance vs. No direct marketing experience. Weakness                  Financial strain for small departments Inefficient interdepartmental resource sharing No instructional computing centre or support personnel Staff turnover No career path and limited training for systems administrators Insufficient backup for systems administrators No on-campus high performance facilities Customer lists not tested. Right products. quality and reliability. Management cover insufficient. Delivery-staff need training.

20 | P a g e . New specialist applications. Can surprise competitors. Could distract from core business. Profit margins will be good. Support core business economies. Could extend to overseas. Vulnerable to reactive attack by major competitors. Could seek better supplier deals. Environmental effects would favor larger competitors. End-users respond to new ideas. Threats          Limited lifespan of hardware and software Legislation could impact. Local competitors have poor products. Market demand very seasonal. Possible negative publicity. Retention of key staff critical. Existing core business distribution risk.Opportunities           Continuing increase in the speed and power of information technology Enormous Could develop new products.

3 Introduction To Cloud 21 | P a g e .Chapter .

somewhat levels the playing field. Nonetheless. It forces competition based on ideas. with no way to push it out to other companies or users who might be willing to pay for additional compute cycles. You use only what you need and pay for only what you use. today. Cloud computing gained attention in 2007 as it became a popular solution to the problem of horizontal scalability. rather than computing resources. You don't have to care about how things are being maintained behind the scenes in the cloud. You can access any of the resources that live in the "cloud" at any time and from anywhere across the Internet. Resources your applications and IT systems constantly need (to meet growing demands for storage. This transformation of computing and IT infrastructure into a utility. and they will come. Development Platforms and Hardware. and databases) are essentially commoditized." In most cases. 22 | P a g e . The unused computing power wasted away. which is available to all. including Software. not all of these characteristics are truly present on the market.Cloud computing can be loosely defined as using scalable computing resources provided as a service from outside your environment on a pay-per-use basis. Had associated energy costs. The cloud is responsible for being highly available and responsive to the needs of your application. abstracted IT capabilities. It was frequently a case of "Build it. The Cloud is a collection of Internet-based services providing users with scalable. messaging systems. Cloud computing derives from the common depiction in technology architecture diagrams of the Internet. excess computing capacity can be put to use and be profitably sold to consumers. successful companies spent precious time and resources building infrastructures that in turn provided them a competitive advantage. Required someone to babysit the servers. this approach:    Left large tracts of unused computing capacity that took up space in big data centers. illustrated as a cloud. Cloud computing is a paradigm shift in how we architect and deliver scalable applications. Cloud computing has also been called utility computing or grid computing. With cloud computing. or IP availability. You can rent this infrastructure from the vendor that provides the best price and service. computing resources. In the past.

abstracted IT services progressed over the decades with the advent and adoption of technologies such as Internet Service Providers (ISP – where servers were located at the Internet access point). Companies that are knowledgeable and prudently adopt Cloud computing will recognize significant benefits. paying customer). configure. While ASPs managed the offsite infrastructure for a customer. is that the computing capacity varies immediately and transparently with the customer‘s needs. with associated costs. Co-Location. and deploy fixed quantities of computing equipment. the step from ASP to Cloud computing is subtle yet disruptively important. 23 | P a g e . Other IT services historically offered include Time Sharing Systems. and Application Service/ Infrastructure Providers (ASP – where infrastructure was rented to a customer at an offsite location. the hardware had to be scaled up or down with an associated delay and up-front investment. while those that do not will be left ‗a step behind‘ and see their competitors pull ahead as a result of lower operational costs and increased flexibility and deployment capabilities. and clients no longer must plan. The pursuit of centralized. from Software-as-a-Service to Storage on demand. lead-times. and Outsourcing. the concepts and advantages were understood and relentlessly pursued through to this day. As with any evolution. ASP customers were required to declare the quantity of compute and storage capacity needed up front. Hosting. but used most of the time by the one. The Cloud symbol that permeates virtually all Cloud computing literature is more than 50 years old. If the customer‘s computing needs grew or contracted. At that time. they were bound to the concept that the infrastructure capacity was predetermined and inflexible.History Of Cloud The Cloud is not as new as it seems. as indeed are the concepts that were recognized as early as the 1950s in the work done by AT&T in the area of telephony networking. AT&T had already begun to develop an architecture and system where data would be located centrally and accessed by businesses through redesigned telephones and an updated telephone network. and financial risks. While the service did not materialize. Indeed. from this evolution we find ourselves at the cusp of a significant transformation in Information Technology. One of the main principles of Cloud computing.

24 | P a g e .

customers. Facebook. and will eventually displace established competitors. Today it is only subtly disruptive. creating market segments that were previously not being served by on premise incumbents 25 | P a g e . With the common acceptance of applications like Gmail. are poised to change the way enterprises deploy and manage their IT assets and business processes. and "new market disruption": • Low end disruption: the performance of on premise applications now often overshoots the needs of customers leaving room for Cloud providers to enter markets by providing sufficient functionality • New market disruption: Cloud solutions fit new or emerging needs. with the distinction not always very clear: Personal applications of Cloud computing provide the most universally accessible understanding of the Cloud. Gmail. Business Cloud applications were carried to the CXO‘s attention with the advent.Cloud Today Cloud computing encompasses an increasingly broad array of uses deeply embedded in both our personal and professional lives. Hotmail. have become leaders in the Cloud computing industry and are poised to expand into and dominate the Business Cloud application market. Disrupting the game The trend of moving to the Cloud is a logical evolutionary step made possible through the mass adoption and capabilities of the internet and virtualization. These former start-ups. that has taken root initially in simple applications at the bottom of the market and is relentlessly moving ‗up market‘. Indeed. growth and acceptance of companies such as salesforce. such as Google. eBay and Amazon. Cloud computing is a disruptive innovation. which deliver business value with a reduced IT footprint. governments and regulators. Business Clouds. to take but one example. but it will impact all IT players over and NetSuite. changing the game for all actors: software vendors. Its impact on enterprise Information Technology over the upcoming decade will be enormous given its advantages. MySpace we are already familiar with the advantages. Consumer Cloud applications were born out of the dot-com bubble at the turn of the century and have matured into fully accepted services connecting consumers to buyers. to whom the details of the underlying software and hardware are completely and purposefully obscured. offers virtually limitless space to its users. system integrators. both through "low-end disruption". We believe it will prove to be disruptive.

mobile phone). Cloud computing systems typically use REST-based APIs. Reliability is improved if multiple redundant sites are used. without users having to engineer for peak loads.) o Peak-load capacity increases (users need not engineer for highest possible load-levels) o Utilisation and efficiency improvements for systems that are often only 10– 20% utilised. and consistent and loosely coupled architectures are constructed using web services as the system interface.         26 | P a g e . users can connect from anywhere. Applications can be easily migrated from one physical server to another. electricity.g. Scalability and Elasticity via dynamic ("on-demand") provisioning of resources on a fine-grained. Performance is monitored. etc. Pricing on a utility computing basis is fine-grained with usage-based options and fewer IT skills are required for implementation (in-house). The e-FISCAL project's state of the art repository contains several articles looking into cost aspects in more detail. As infrastructure is off-site (typically provided by a third-party) and accessed via the Internet. which makes welldesigned cloud computing suitable for business continuity and disaster recovery. as infrastructure is typically provided by a third-party and does not need to be purchased for one-time or infrequent intensive computing tasks. Application programming interface (API) accessibility to software that enables machines to interact with cloud software in the same way the user interface facilitates interaction between humans and computers. Virtualization technology allows servers and storage devices to be shared and utilization be increased. Device and location independence enable users to access systems using a web browser regardless of their location or what device they are using (e. most of them concluding that costs savings depend on the type of activities supported and the type of infrastructure available in-house. self-service basis near real-time. This is purported to lower barriers to entry.Characteristics Cloud computing exhibits the following key characteristics:  Agility improves with users' ability to re-provision technological infrastructure resources. Multitenancy enables sharing of resources and costs across a large pool of users thus allowing for: o Centralization of infrastructure in locations with lower costs (such as real estate. PC. Cost is claimed to be reduced and in a public cloud delivery model capital expenditure is converted to operational expenditure..

. load carrier clouds . Maintenance of cloud computing applications is easier. Infrastructure as a service (IaaS) In this most basic cloud service model. raw (block) storage.  Service Models Cloud computing providers offer their services according to three fundamental models:Infrastructure as a service (IaaS). the Internet can be used or . Local area networks including IP addresses are part of the offer. etc. but concerns can persist about loss of control over certain sensitive data. cloud providers offer computers – as physical or more often as virtual machines –. In addition. Private cloud installations are in part motivated by users' desire to retain control over the infrastructure and avoid losing control of information security. and networks. 27 | P a g e . firewalls . Security is often as good as or better than other traditional systems. and software as a service (SaaS) where IaaS is the most basic and each higher model abstracts from the details of the lower models. However. increased security-focused resources. and the lack of security for stored kernels. in part because providers are able to devote resources to solving security issues that many customers cannot afford.dedicated virtual private networks can be configured. platform as a service (PaaS). IaaS providers supply these resources on demand from their large pools installed in data centers. Security could improve due to centralization of data. For the wide area connectivity. the complexity of security is greatly increased when data is distributed over a wider area or greater number of devices and in multi-tenant systems that are being shared by unrelated users. because they do not need to be installed on each user's computer and can be accessed from different places. user access to security audit logs may be difficult or impossible.

When we talk about IaaS functioning. it is simply a facility given to the business enterprises that offers users the leverage of extra storage space in servers and data centers. Cloud providers typically bill IaaS services on a utility computing basis. Moreover. which does all the work. The cloud users do not manage the cloud infrastructure and platform on which the application is running. In this model. at pay-per-use service. This eliminates the need to install and run the application on the cloud user's own computers simplifying maintenance and support. storage space etc. cost will reflect the amount of resources allocated and consumed. What makes a cloud application different from other applications is its elasticity. To accommodate a large number of cloud users. database. cloud providers deliver a computing platform and/or solution stack typically including operating system. and web server. IaaS is a branch of cloud computing that has gathered attention among the entrepreneurs largely with the prime motive to make their business environments more organized and in sync with the ongoing operational activities of organizations. Test Environment as a Service. that is. cloud applications can be multitenant. It is common to refer to special types of cloud based application software with a similar naming convention: desktop as a service. it is not a machine that we are talking about. Platform as a service (PaaS) In the PaaS model. cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. programming language execution environment. any machine serves more than one cloud user organization. business process as a service. communication as a service. Load balancers distribute the work over the set of virtual machines. This can be achieved by cloning tasks onto multiple virtual machines at run-time to meet the changing work demand. With some PaaS offers. cloud users then install operating system images on the machines as well as their application software. servers. the underlying compute and storage resources scale automatically to match application demand such that cloud user does not have to allocate resources manually. Software as a service (SaaS) In this model. This process is inconspicuous to the cloud user who sees only a single access point. that is. Infrastructure-as-a-Service or IaaS Cloud is a platform through which businesses can avail equipment in the form of hardware. it is the cloud user who is responsible for patching and maintaining the operating systems and application software. 28 | P a g e . Application developers can develop and run their software solutions on a cloud platform without the cost and complexity of buying and managing the underlying hardware and software layers.To deploy their applications.

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). Generally.Deployment models Cloud Computing Types Public cloud Public cloud applications. so only some of the cost savings potential of cloud computing are realized. compliance. community or public) that remain unique entities but are bound together. and other resources are made available to the general public by a service provider. 30 | P a g e . Hybrid Cloud architecture requires both on-premises resources and off-site (remote) server based cloud infrastructure. Hybrid cloud Hybrid cloud is a composition of two or more clouds (private. offering the benefits of multiple deployment models. storage. whether managed internally or by a third-party and hosted internally or externally. companies and individuals are able to obtain degrees of fault tolerance combined with locally immediate usability without dependency on internet connectivity. Community cloud Community cloud shares infrastructure between several organizations from a specific community with common concerns (security. etc. The costs are spread over fewer users than a public cloud (but more than a private cloud). public cloud service providers like Microsoft and Google own and operate the infrastructure and offer access only via Internet (direct connectivity is not offered). These services are free or offered on a pay-per-use model. jurisdiction. By utilizing "hybrid cloud" architecture.

security and certainty of in-house applications.Hybrid clouds lack the flexibility. whether managed internally or by a third-party and hosted internally or externally. They have attracted criticism because users "still have to buy. build. and manage them" and thus do not benefit from less hands-on management. essentially "lacking the economic model that makes cloud computing such an intriguing concept" 31 | P a g e . Private cloud Private cloud is cloud infrastructure operated solely for a single organization. Hybrid cloud provides the flexibility of in house applications with the fault tolerance and scalability of cloud based services.

and greater focus on core competencies In the following sections we will detail these drivers and show how. beyond these advantages. The key factors for overcoming the present inibitors will be to gain users‘ trust on security and compliance. and perhaps just as important to Cloud computing‘s advancement. Moreover. greater flexibility. the industry will need to align perceptions of the Cloud drivers and in hibitors more realistically. and promote a new way of thinking. Cloud computing service providers will need to address a number of remaining inhibitors to achieve mainstream adoption in the coming years. a mindshift in the IT industry despite the resistance to change.Cloud computing has clear advantages – capitalizing on these and overcoming remaining inhibitors will allow its mainstream adoption. Cloud computing exhibits obvious advantages linked to its characteristics: • The pay-as-you-go model and multi-tenancy lead to increased ROI with quicker payback and lower upfront investment • High abstraction and immediate scalability lead to accelerated deplo yment. 32 | P a g e .

Businesses are demanding transparency in costs and better responsiveness to new opportunities. only to find that they have increased their operating complexity and costs. and poor agility are the key drivers of cloud computing. rightsized infrastructure. inconsistent availability. organizations are realizing that high availability is no longer an optional service attribute. sometimes only to discover that the promised cost savings never materialized or the service quality and operational responsiveness suffered. There is a cyclical trend to outsource. and created new phenomena such as Virtual Machine sprawl.The Advent of Cloud Computing High operational costs. and a low-cost but highly responsive operating model. but regulatory compliance and service criticality prevents them from moving all but the most commoditized services to Public Clouds. low system utilization. sometimes this overhead reduces agility as well. With the emergence of Cloud Computing. What organizations need is an IT architecture that provides highly-reliable services. Businesses are attracted to the idea of pay-per-use and right sizing. Many organizations embraced IT Service Management and IT best practices to reduce the risk. IT has a new option that reduces costs while improving resiliency and agility. Organizations are continuously looking for ways of mitigating these issues. Organizations have poured money into hardware redundancy to improve availability. however. 33 | P a g e . With the growing reliance on IT to operate their businesses. Businesses now understand that there are more effective operating models and they are demanding and the same level of effectiveness from their own IT organizations. Others have embraced emerging technologies such as virtualization. CIOs and CTOs are looking for ways to right-size their IT organizations.

Pragmatic use of Cloud capabilities as part of an overall IT strategy can enhance IT‘s effectiveness in addressing critical business needs and add to IT‘s overall value to the business. collaboration technologies. 34 | P a g e . software. and e-mail or choose to operate a private infrastructure Cloud to improve operations of their legacy applications. It is indeed a powerful extension of existing architectures and technologies. delivery.Business Opportunities Cloud computing puts new tools in the hands of the CIO for addressing the changing business needs by providing them with very valuable and effective architectural. and infrastructure as standardized. For example. a CIO may decide to purchase Cloud-based shared business processes/software services. Businesses may choose to either give out commercial contracts for these services or provide them internally. Cloud Computing is not a panacea for all IT woes. and sourcing options. which enables delivery of hardware. Despite the hype that surrounds it. such as CRM. modular services.

DHS and GSA. A subset has been defined for the FIPS 199 low categorization and the FIPS 199 moderate categorization. Compliance In order to obtain compliance with regulations including FISMA. which recorded over 10 million phone calls between American citizens. Using a cloud service provider (CSP) can complicate privacy of data because of the extent to which virtualization for cloud processing (virtual machines) and cloud storage are used to implement cloud service. lawfully or unlawfully. FedRAMP consists of a subset of NIST Special Publication 800-53 security controls specifically selected to provide protection in cloud environments. Providers typically make this information available on request. users may have to adopt community or hybrid deployment modes that are typically more expensive and may offer restricted benefits. providers such as Amazon still cater to major markets (typically the United States and the European Union) by deploying local infrastructure and allowing customers to select "availability zones. but this has been criticised on the grounds that the hand-picked set of goals and standards determined by the auditor and the auditee are often not disclosed and can vary widely. the Data Protection Directive in the EU and the credit card industry's PCI DSS. The JAB is responsible for establishing accreditation standards for 3rd party 35 | P a g e . causes uncertainty among privacy advocates. Many providers also obtain a SAS 70 Type II audit. The FedRAMP program has also established a Joint Acceditation Board (JAB) consisting of Chief Information Officers from DoD. and SOX in the United States. Customers in the EU contracting with cloud providers outside the EU/EEA have to adhere to the EU regulations on export of personal data. Federal Agencies have been directed by the Office of Management and Budget to use a process called FedRAMP (Federal Risk and Authorization Management Program) to assess and authorize cloud products and services. Instances such as the secret NSA program. 2011 defining how federal agencies should use FedRAMP. thus.S. They could accidentally or deliberately alter or even delete some info. The point is that CSP operations. under non-disclosure agreement. or in the same data center or even within the same provider's cloud. While there have been efforts (such as US-EU Safe Harbor) to "harmonise" the legal environment. HIPAA. This can lead to legal concerns over jurisdiction. This is how Google is able to "manage and meet additional government policy requirements beyond FISMA" and Rackspace Cloud or QubeSpace are able to claim PCI compliance. can monitor at will. and Verizon.Issues Privacy The cloud model has been criticised by privacy advocates for the greater ease in which the companies hosting the cloud services control. working with AT&T. U. and the greater powers it gives to telecommunication companies to monitor user activity. customer or tenant data may not remain on the same system." Cloud computing poses privacy concerns because the service provider may access the data that is on the cloud at any point in time. the communication and data stored between the user and the host company. Federal CIO Steven VanRoekel issued a memorandum to federal agency Chief Information Officers on December 8.

An alternative perspective on the topic of cloud security is that this is but another. More information available from GSA at Legal As can be expected with any revolutionary change in the landscape of global computing. Physical control and the ability to visually inspect the data links and access ports is required in order to ensure data links are not compromised. Open standards Most cloud providers expose APIs that are typically well-documented (often under a Creative Commons license) but also unique to their implementation and thus not interoperable. This delivers great incentive to cloud computing service providers to prioritize building and maintaining strong management of secure services Security issues have been categorised into sensitive data access. the Free Software Foundation released the Affero General Public License. Physical control of the Private Cloud equipment is more secure than having the equipment off site and under someone else‘s control. one prominent example being the Hadoop framework. The federal agency consuming the service will still have the final responsibility for final authority to operate. accountability. The relative security of cloud computing services is a contentious issue that may be delaying its adoption. with a view to delivering interoperability and portability. The JAB will also review authorization packages and may grant provisional authorization (to operate). Security As cloud computing is achieving increased popularity. Open source Open-source software has provided the foundation for many cloud computing implementations. everything from trademark infringement. privacy. a version of GPLv3 intended to close a perceived legal loophole associated with free software designed to be run over a network. It is the very nature of cloud computing-based services.organizations who will perform the assessments of cloud solutions. In November 2007. security concerns to the sharing of propriety data resources. private or public. Issues barring the adoption of cloud computing are due in large part to the private and public sectors' unease surrounding the external management of security-based services. Some vendors have adopted others' APIs and there are a number of open standards under development. although quite broad. bug exploitation. certain legal issues arise. case of "applied security" and that similar security principles that apply in shared multi-user mainframe security models apply with cloud security. management console security. and multi-tenancy 36 | P a g e . account control. malicious insiders. that promote external management of provided services. The effectiveness and efficiency of traditional protection mechanisms are being reconsidered as the characteristics of this innovative deployment model can differ widely from those of traditional architectures. concerns are being voiced about the security issues introduced through adoption of this new model. data segregation. recovery.

to use of multiple cloud providers. a small compromise on energy consumption reduction could result in high carbon footprint reduction. it is highly likely that more criminals will try to find new ways to exploit vulnerabilities in the system. and builds higher assurance into auditing to strengthen compliance. However. from cryptography. To help mitigate the threat. This includes password cracking and launching attacks using the purchased services. Sweden and Switzerland. Sustainability Although cloud computing is often assumed to be a form of "green computing". establishes trusted foundation to secure the platform and infrastructure. 37 | P a g e . In 2009. and improving virtual machine support and legal support. Cloud computing offers many benefits. Energy efficiency in cloud computing can result from energyaware scheduling and server consolidation. standardisation of APIs. In areas where climate favors natural cooling and renewable electricity is readily available. but it also is vulnerable to threats. Siting the servers affects the environmental effects of cloud computing. there is no published study to substantiate this assumption. the environmental effects will be more moderate. particularly public key infrastructure (PKI). a banking Trojan illegally used the popular Amazon service as a command and control channel that issued software updates and malicious instructions to PCs that were infected by the malware. such as Finland. are trying to attract cloud computing data centers. in the case of distributed clouds over data centers with different source of energies including renewable source of energies. As the uses of cloud computing increase. Abuse As with privately purchased hardware. There are many underlying challenges and risks in cloud computing that increase the threat of data being compromised. customers can purchase the services of cloud computing for nefarious purposes. (The same holds true for "traditional" data centers.issues. Solutions to various cloud security issues vary.) Thus countries with favorable conditions. Security concerns must be addressed in order to establish trust in cloud computing technology. cloud computing stakeholders should invest heavily in risk assessment to ensure that the system encrypts to protect data.

Chapter .4 Research Methodology 38 | P a g e .

averages.RESEARCH METHODOLOGY 1. pilot survey has been done 3. Sampling Type: Non Probability Convenience Sampling b. Research design: Exploratory design. Lack of cooperation from respondents b. percentages. Sample size: 30 c. Objectives: To Study awareness and usage of Cloud Computing among management students 2. Lack of time 39 | P a g e . Limitations: a. etc were used to analyze the data presented in the form of pie charts and bar graphs and spss. Sources of data and Data collection: Primary Data: Respondents were approached and data was collected through the use of questionnaires and schedules. 6. 5. Sampling unit: MBA Students 4. Sampling a. Analysis techniques: Measures of central tendency.

Do you use any of cloud services : Yes No ( ) ( ) If Yes Then 3. Do you know what is cloud Computing? Yes No ( ) ( ) 2.: E-mail: _____________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ 1. Cloud You Use of: Google Apple Microsoft Others ( ( ( ) ) ) ( ) 40 | P a g e .QUESTIONAIRE Demographic Data Contact Person: _____________________________________________________ Age: Address: Phone No.

4. What do you consider while opting for Cloud ? Storage Price ( ) ( ) 7. What are the issues you feel that in the way of cloud success in India? Privacy Security Compliance Suitability ( ) ( ) ( ) ( ) Price ( ) 41 | P a g e . Which service of cloud you use? IAAS PAAS SAAS ( ) ( ) ( ) 6. From how many years you are using services of your Existing cloud provider? 1 Year 3 Year ( ) ( ) 2 Year 4 Year ( ) ( ) 5.

Whenever feasible.Research By CA Technologies & Ponemon (Cloud Securities) This section provides the most important findings of our cloud provider study. we provide a simple graph to illustrate the result. A tabular presentation may be provided as an alternative illustration when the result is too complex to graph. Further. 42 | P a g e . The majority does not believe their cloud services include the protection of sensitive data. These findings indicate that respondents overwhelmingly believe it is the responsibility of users of cloud computing to ensure the security of cloud resources they provide. only 19 percent of US cloud providers and 18 percent of European cloud providers strongly agree or agree that their organization perceives security as a competitive advantage in the cloud marketplace. Attributions about cloud computing security Bar Chart 1 reports cloud providers’ agreement with three attributions about cloud computing security.

In April 2009. Unique in the UK. In June 2011. which is capable of running Google App Engine applications at scale on a multitude of infrastructures. the TrustCloud research project was started by HP Labs Singapore to address transparency and accountability of cloud computing via detective. funded by the European Commission's 7th Framework Programme. vendors and government organisations are investing in research around the topic of cloud computing:  In October 2007.development of HPCCLoud Performance Analysis Toolkit which was funded by CIM-Returning Experts Programme . The team identified the need for monitoring data life cycles and transfers in the cloud. the St Andrews Cloud Computing Co-laboratory was launched. data-centric approaches encapsulated in a five-layer TrustCloud Framework. telecommunications standards. Shajulin Benedict. the TClouds (Trustworthy Clouds) project was started. In December 2010.under the coordination of Prof. to analyze the integration challenges and opportunities between cloud services and traditional U. UC Santa Barbara released the first open source platform-asa-service.Many universities. leading to the tackling of key cloud computing security issues such as cloud data leakages. the Telecommunications Industry Association developed a Cloud Computing White Paper. cloud accountability and crossnational data transfers in transnational clouds. Dr. The project's goal is to research and inspect the legal foundation and architectural design to build a resilient and trustworthy cloud-of-cloud infrastructure on top of that. focusing on research in the important new area of cloud computing. The project also develops a prototype to demonstrate its results. the Academic Cloud Computing Initiative (ACCI) was announced as a multi-university project designed to enhance students' technical knowledge to address the challenges of cloud computing.4       43 | P a g e . StACC aims to become an international centre of excellence for research and teaching in cloud computing and will provide advice and information to businesses interested in using cloud-based services In October 2010. In July 2011. In April 2009. the High Performance Computing Cloud (HPCCLoud) project was kicked-off aiming at finding out the possibilities of enhancing performance on cloud environments while running the scientific applications .S. AppScale.

declining fixed-line revenues. Telcos can enable an ecosystem of partnerships that comprises themselves. managed services providers. Almost all telcos are pinning their hopes on the growing mobile value-added services (MVAS) market as source of significant incremental revenue generation and increasing mobile revenue per user.   44 | P a g e . September 2011  It’s hard being a telecommunications company in India these days. After the Great Recession of 2008. Telcos are well-positioned to tap into this opportunity as they have invested substantially in bandwidth creation. customer satisfaction. Telcos also have the infrastructure in place for accelerated cloud adoption. and SMBs are increasingly optimistic about their prospects for the next couple of years. This optimism is expected to encourage SMBs to focus on key business imperatives such as customer acquisition. Although the MVAS market presents an attractive market opportunity given In dia’s demographics and market size. market sentiment has been improving. and independent software vendors to effectively address the SMB market in India. telcos in India face challenges on a number of fronts: an intensively competitive market with a large number of players. and currently the market has excess capacity. India is also estimated to achieve the highest SMB IT expenditure growth rate of 24 percent. In India. with more than 50 percent of the expenditure expected to be dedicated to hardware. cloud computing lowers barriers to growth by lowering technology costs and upfront investments. and onerous regulatory oversight spurred by recent telecom scandals. SMBs in India represent over 97 percent of all businesses and will drive a significant portion of IT spending in India over the forthcoming decade. telcos in India would be prudent to systematically address the cloud computing services market for the small. IT services firms. declining mobile revenue per user and minutes of usage due to the nature of the customer being acquired. Although India presents one of the fastest growing mobile and broadband markets in the world. increasing mobile customer churn brought about by mobile number portability.and medium-sized business (SMB) segment in India as a another source of incremental revenue generation. an effort to improve high-speed connectivity and an emerging SMB segment that is investing in IT are drivers for growing market opportunity for cloud computing. and employee efficiency and productivity. by Srinivasan Ramaswamy and Arun Goyal. cloud infrastructure providers. Such services include multimedia messaging and global positioning applications.For Telcos in India. For the SMB segment. the Cloud Has a Silver Lining Indian telecommunications companies that are leaders in the IT vendor ecosystem are more likely to be the beneficiaries of the emerging cloud opportunity. however they have limited experience with addressing the SMB segment of the market.

cloud infrastructure providers. Even though current IT adoption remains dismal. 45 | P a g e . and is expected to reach a figure of about US$1. Telcos need to leverage the IT vendor ecosystem (managed services providers.084 million by 2015. Presently. while Platform-as-a-Service (PaaS) and Infrastructure-asa-Service (IaaS) markets cumulatively would touch $434 million. and international regulatory norms. Experts believe that SaaS will be adopted by most companies in the next few years at some level or the other. According to a study by Zinnov Management Consulting. and independent software vendors) that is looking to tap the growing market for IT and cloud services in the SMB space. IT services firms. SMBs in India contribute more than 60 percent to the Indian GDP while their spending on IT is only 30 percent of India’s total IT spending. there is a changing value perception. retail and manufacturing companies constitute 55 percent of the SMB universe. SMBs in these cities are very well positioned to be tapped using the right cloud ecosystem. As components of the overall cloud market. driving the need for greater cloud awareness and its benefits. Software-as-a-Service (SaaS) has witnessed the most rapid uptake until now. indicating that penetration of these solutions is still at an embryonic stage. with nearly 70 percent of the business coming from the SMB space. less than two percent of SMBs have deployed some aspects of enterprise applications. and customer management applications. the total market of cloud computing in India stands at US$110 million today. SMBs in India do not have access to IT staff that can understand and drive IT adoption and deployment in their organizations. Indian SMBs realize the need for technology to grow their business. SaaS in India is likely to reach a mark of $650 million by 2015. collaboration. Presently. Currently. Furthermore. document management. the SaaS market is estimated to be about US$50 million. further catalyzed by business mandates by larger clients. especially in content management. global buyers. with southern and western India accounting for nearly 65 percent of their presence.   Tenfold increase in cloud opportunity  In India. As the emerging markets growth story percolates down from larger to smaller cities.

Wipro and NetMagic have launched cloud offerings in the market. but they are still at a very nascent stage and likely to evolve gradually. and IBM have crystallized their cloud offerings and are now in the process of educating current and potential customers on the benefits of cloud services. Given their formidable strategic assets and their strong relationships with SMBs. Cloud infrastructure providers such as Oracle. Telcos have the potential to play a powerful role in the new cloud ecosystem. telcos must understand where in the new cloud ecosystem they can play successfully and gain competitive advantage in this fast evolving market.  46 | P a g e . such as reseller and application aggregators and integrators. At present. Microsoft. A few players like Tata Communications. higher-value roles. the Indian market does not have a mature ecosystem that supports cloud services. To succeed. telcos need to fully leverage their strategic assets through a nexus of partnerships to expand into new.