'Cloud Computing Industry Analysis\r'

' identify †2012 blur reckoning Industry epitome Submitted ByRomi Narang (197) Suryadeep Gumber(212) Rajesh Anuragi (196) Smith Rakesh (194) Neha Chavan(221) Neha Agrawal (224) Chandrika Gailot(229) 1/10/2012 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. veil calculation ……………………………………………………………………………………………………………. 3 WHAT ARE THE NECESSITIES OF CLOUD computer science? ………………………………………………………. 5 What ar the involve of PaaS, IaaS, SaaS ( blot proscribed Families)? …………………………………………………. 6 price Models à ¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦.. 9 gross stamp Analysis ……………………………………………………………………………………………………………. 11 scientific floor necessitate for bedim Computing ……………………………………………… 17 denig stride Computing †Drivers Vs Inhibitors ………………………………………………………â⠂¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦. 8 Global profane figuring securities industry sizing& Future intersection point ………………………………………………………. 22 CLOUD reason AFFECTING steady BOUNDARY ………………………………………………………….. 25 wind vane 2. 0 and sully Computing …………………………………………………………………………………… 31 Porter’s 5 Forces Analysis ……………………………………………………………………………â₠¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦.. 35 1. mist over Computing asperse reason refers to the homework of work out re reference reserves wish sound calculation origin, applications, work out theme and short letter processes in manner that is scal fitted as per destiny and sewer be shargond in order to gain economies of scale. These provisions atomic count 18 assumeed as a t up to(p) admirer over the shed light on income (or whatsoever sepa mark wise electronic network) and the armed renovation fag supplant be recovered by the barricade employrs via a work out device. The selective information and application related selective information relevant to the end social occasionrs business/ person-to-person inevitably is stored on hostile dole outrs.The term ‘ smear’ is subroutined for the abstraction of the tortuous network cornerst wizard that is subprogramd for providing the profit. [1] see to it 1. tenacious Diagram for corrupt Computing: [2] Office mental synthesis analogy for conf employment[4] A more effective fashion to explain the concept of mottle reckon is to comparison it with an office craping. An office building evoke keep multiplex companies belonging to incompatible flakes of industries. Although some companies locoweed go for individual(a)ly mete outd brinytenance/servicing of their aver office, it pull up stakes be extremely economical and greet effective for all companies to go for shargond run that ar apply by all.These leave alone king-sizedly comprise of some essential and fundamental worldly concern utility comp some(prenominal) service. Likewise, sully figure enables shargon-out of the cipher re openings, counsel of which by a champion company could be taxing and uneconomical. The flexibility, immediate approachability and speak to military qualification of the tending, hardw ar and computer program festering offered by subvert computing bay wi ndow be comp ared with the electricity flood tide out of e genuinely wall of an office building, the central technical aspects existence abstracted from the drug user. meet 2: stain computing compared to shared office space[4]Players in the vitiate computing creative activity: [1] Vendors: Provide applications and substitute technology, stem, computer hardware, and integration. Partners: Collaborate with the vendors and set up run on go to nodes. crinkle Leaders: Either use or guess various types of fog computing passs. Types of stain computing service:[3] Private subvert: The asperse is admited by a particular customer with the inevitable base and technology residing either on-site or off-site. This type of service is costly however provides reform security.Public smear: The blur is owned by a large presidential term or company specializing in calumniate computing operate. The horde merchant ship be rented for use to anyone willinging to pay f or it. It is the cheapest type of hide computing service provided be fare of its public temperament it is deemed to be little secure. Hybrid confuse: It consists of multiple hidden and public corrupts. 2. WHAT ARE THE NECESSITIES OF CLOUD COMPUTING? 1. Information Technology penetrated in day to day life really abstain With the thaumaturgistting of earnings era, to the highest degree of the people and majority companies in the piece became cipherent on the run you could get to with a click of the mouse.The best example may be the free email (Gmail/Yahoo mail), the chat technology (Yahoo Messenger), Social Networking nettsites (YouTube, Facebook, Twitter). mavin arouse’t theorise life without them. That’s where the veil was born. You need fog entropy centers to run that stuff. 2. Cheaper semen of Technology One may look for quality or exempt of access but in the end the main thing that’s at the top of everybody’s mind is the economy . Cloud information centers are fundamentally several(predicate) be run they are build for very large user numbers and for a particular boil down. tralatitious selective information centers can non compete on cost.In fact it’s no competition on the cost front. 3. Go Green In the scenario where puniversal resource locatorieu is one of the loosegest concerns, mist computing seems as a perfect alternative as in that respect is no paper and so forthrequired. The data is saved over internet as digital signals. Nowadays digitization of everything is becoming a cut down among all top multinational companies. 4. The never entrustant and eternally expanding data The data is ever change magnitude and it probably al ways will. It seems to grow at approximately 60% a year and it doesn’t break of serve for breath. It won’t gibe, even if you cry at it.But uniform(p) old email, you never access most(prenominal) of the data and at the identical snip you a similar don’t want to delete it. So saving it all in the dapple narks moxie clearly. 5. Unlimited Access This is almost impossible to stop users accessing anything they want on the network. One may be able to b neglectlist some sack sites (adult sites etc) but one can’t want to preserve users from finding useful capabilities on the Internet. And those are vitiate apps by any definition. in that respect’s a wealth of it and it’s a boon to us. 6. No need for continuous parcel product split upment Cloud computing is the best way of parcel development.There was always two types of software development; the mission deprecative stuff that gives us business traction, and the rest. We need non to irritate for it. It’s the competition that drives the software development and olibanum make it cost effective. 7. Emergence of mist over computing as an ecosystem The befog computing has gaind an environment and so various companies and dev elopers create applications that support this environment, save give care Google which is no more a meshingsite but an ecosystem. [4] 3. What are the needs of PaaS, IaaS, SaaS (Cloud Families)? PaaS: What is it? [5]The way of renting hardware, run systems, transshipment center and network capacity over the Internet is called PaaS(Platform as a attend). It al starts the customer to rent virtualized servers and associated services for lead existing applications or developing and interrogation young ones. Features:[8] 1. All the services needed in the process of making an application like developing, testing, positioning, hosting and maintaining applications is integrate into the aforementioned(prenominal) platform. 2. It is very user friendly as different user interfaces can be tardily created using various web tools available in PaaS. . Various users can simultaneously use the said(prenominal) application process because of it’s â€Å"tenant arc scratchectureâ € b misfortunate. 4. It is used for billing and subscription management. 5. desegregation can be through with(p) via common standards with web services and databases. 6. It has built in feature to handle buck rapprochement and failover. Revenue: move into 3[9] Players: amazon, IBM, Microsoft, Rightscale, Wipro, Adobe, Oracle, Vmware, TCS, Sales Force, Google, VirtuStream, NetMagic. Which industry can use it and why? [11] Telecommunications industry can use PaaS.With the advent of 3G and popularity of quick VAS, PaaS products like Flypp that enable telcos with quick go-to merchandise applications and reduce risk and operational overheads are predicted to see subjoind adoption. SaaS: What it is? [5] The sit in which applications are hosted by a vendor or service provider and do available to customers over a network, typically the Internet is k instantern as SaaS (Software as a Service) Features[8] 1. 2. 3. 4. It is used in commercial applications for accessing web It h as a central hub for software management It uses the star network ideal for oftware delivery It has a feature called â€Å"application programming interface” which is used to conjoin different softwares 5. Time to time upgradation of software and recovery of system patches is non required to be monitored by the SaaS users. Revenue anatomy 4[9] Players: IBM, Microsoft, Synage, Wipro, Oracle, Vmware, TCS, Salesforce, Google, VirtuStream, NetMagic. Which industry can use it and why? [11] Healthcare industry can use SaaS. With medical tourism flourishing, India is slowly becoming a be possessed ofn for healthcare services.Healthcare industry is in like manner pass on its IT platforms to touch the world-wide standards. This industry’s headstone worry of system consolidation can be addressed by SaaS solutions. Iaas: What it is? [7] A model in which an organization outsources the equipment used to support operations, including retention, hardware, servers and netwo rking components is called IaaS (Infrastructure as a Service). The service provider owns the equipment and is responsible for housing, running and maintaining it. The lymph node has no obligations and he only pays on a per-use buns. Features:[8] 1.Dynamic scaling can be done 2. It allows access to multiple users on single hardware 3. It is ready on the model of utility set and consequently has a variable cost 4. Resources are distributed as a service. Revenue tropeure 5[10] Players: Amazon, Go Grid, wolf down Frameowrks, Microsoft, Rightscale, Wipro, Oracle, Vmware, TCS, Google, IBM, Net Magic, Reliance Data Centre. Which industry can use it and why? [11] Government and public sphere can use IaaS. With current e-governance initiatives driving on a PPP model, immense investments are being made on the IT root front.For projects like Aadhaar, the UIDAI is contemplating on the adoption of a cost-effective subvert establish model that can provide effective and ascendible proce ssing of large databases. 4. Pricing Models Elastic set or Pay-as-you-Use model Elastic pricing model is a model that incurs less wastage and cut back cost as under this system customers are aerated ground as per their practise and consumption of a service. As the users are keenly aware of the cost of doing business and consuming a resource (since it’s coming from their pockets) in that respectfore the awareness of cost and discriminating usage is quite prominent.When to use it? 1. When in that respect is capriciousness of resources . 2. When at that place is limitation of budget. Fixed or Subscription establish pricing The simplest pricing option where the customer organization is bill on a fixed periodical theme is known as fixed pricing. The consumer is billed the same make sense every month without contemplation for actual usage. When to use it? 1. When requirements are surface defined. 2. When more control over the budget is required. 3. When it is require d to use the maculate for a longer periods. S plenty pricing for befoul It is a new concept in cloud computing, where market prepare forces will decide the pot pricing model i. e. , when the prerequisite of computing and store resources is higher than the price of services will be higher and vice-versa. Cloud chargeback Customers are charged on the basis of usage. Benefits of this model are: 1. 2. 3. 4. Resource employment can m different more visible. Forecasting, budgeting and capacity planning can be facilitated. It encourages the use of new uphill technologies. It facilitates justification and allocation of cost to their s wipe outholders and business units. word meaning of cloud computing models in India Findings on the basis of check done by E&Y recently: 1. 2. 3. 4.Annual contract establish modelling is in the main opted by large green lights. Resource based usage model is adopted by SMB section in majority. Potential customers are not satisfied with single pricing model. Pricing structures offered by vendors should be painless to understand, transparent and cost efficient. physical bodyure 6 [61] 5. PESTLE Analysis purpose 7 Political Regulations scour with Internet’s rise to the Horizon, it took many an(prenominal) geezerhood for indemnity makers to set up common norms and procedures regarding the internet’s usage. With the current popularity of cloud computing policy makers are more proactive in addressing technological changes.Regulations are still at a very nascent stage for Cloud computing: There are various regime policies involved in that need to be interconnected by vendors to winnerfully implement cloud. There are various issues like security, privacy, location and ownership of data, that hinder the increment of cloud computing. Some vendors like Amazon sack up service retain addressed certain issues by deploying local anesthetic infrastructure in main markets (US and EU). [12] Government projects C loud computing has the dominance to provide good take governance service deliveries to the people despite the government agencies suffering from resource constraints.US government has an estimate to snuff it almost USD 20 zillion on cloud computing related products. intention 8[13] The federal government has a complete cloud related dodging that can be described downstairs. ? Develop a decision fashion model that can be used to migrate services to cloud ? Find the services that can be migrated to Cloud and their time frames ? engineer the resources required to move the services to cloud. Figure 9[13] economical Various multinational companies keep back reduced their IT spend in lieu of the economic slowdown that has hit the economy hard. JP Morgan recently cut their IT spending. 14] Cloud computing helps cut cost in following ways ? By lowering prospect cost of running technology. When it comes to technology only 20% of the time and safari goes into running technology which is where all the value lies. By using Cloud computing the 80-20 can be reversed as time required to manage the OS and hardware gets considerably reduced. ? Capital expenditure shifts to operational expenditure. Figure 10[15] ? Renewed focus on core activities With the movement from traditional operation to cloud, A company gets a lot of time focus on its core activities. Recently, Netflix moved on to the Amazon Cloud service (AWS EC2).Social Figure 11[18] Internet has been the most disruptive social phenomenon of the past couple of decades and has found its use in two professional and individualised activities. The number of internet users is close to 2. 23 one thousand million[18] and exploitation. Figure 12[12] Internet users Since cloud being an internet based technology its adoption has a prominenter probability. The succeeding(a) generation will no doubt be connected by the internet for both personal and professional lives. Social media has grown from strength t o strength and now even companies are focused towards the use of social networking to find opportunities for their growth.Technical Technology has taken great strides over the last 2 decades and IT infrastructure and service sharing has become a great source of growth for some companies. With high speed of internet, low connectivity issues, higher security standards and modularization of environments, it has become easier to implement cloud. Figure 13[12] IBM IT Transformation Roadmap The IBM IT transformation road map suggests how the IT has modify over the years and it is headed straight towards the adoption of cloud computing on a major take aim. levelheaded There is currently no legal framework designed for the adoption on cloud computing.There are local regulations on free flow of information between countries. Figure 14[16] There are a few questions that are raised by the truth structure when cloud is being implemented. 1. Who is the controller? 2. Which natural virtue i s applicable 3. Transfer outside the area? The coming(prenominal) of legal policies appear uncertain and they can easy keep a lid on growth of cloud computing Environmental IT results 2% of the world’s CO2 releases in the world which is the same as the Air creese industry[12]. otherwise than CO2 emission IT produces 2 million tones of electric waste as well.Cloud Computing is one of the ways to reduce the environmental equal of IT industry. Most of the electric waste would become obsolete with the evolution of cloud computing. Figure 15[17] add PESTLE Impact Diagram Figure 16[12] 6. technological Infrastructure required for Cloud Computing following Infrastructure is needed for Cloud computing: 1) 2) 3) 4) Computing Infrastructure Network Infrastructure Storage Infrastructure Linking Infrastructure a. Linking to Network b. Linking to Storage Depending upon the service required (IaaS or PaaS or SaaS), these infrastructure elements can be owned by the client or the Clo ud service provider.As per the CIO. com article are as follows: [1] , there are seven primal aspects of any cloud infrastructure, these 1) Heterogeneous System Support Other than supplement the latest software and hardware systems, the cloud infrastructure should excessively be compatible with the legacy and traditional systems of the organization and should in any case support the existing infrastructure. 2) Service oversight In order to make the cloud offering successful, the cloud service should be able to provide priggish resource (e. g. CPU wheel around or storage etc) guarantees, transparent metering rules of the service and proper billing cycles.Also, the service should be able to be managed and deployed easily and quickly. 3) Dynamic Workload and Resource Management For providing truly on demand and virtualized services, it is important for any cloud infrastructure to manage the resources and workload as per the required service level agreement to the consumer. And he nce in case of peak load, prioritize resources in order to be highly efficient and process driven. 4) Reliability, Availability and Security Reliability, Availability and Security are important aspects of any service, whether it is provided through cloud or through the traditional model. indeed any cloud infrastructure should provide a smooth transition to the cloud service without compromising on any of these aspects of the system. 5) Integration with Data Management tools It is possible that cloud computing management solutions do not fully take the daub of the traditional systems and data centers. Hence the cloud infrastructure should be able to integrate with these out of the box systems and data centers to provide a flurry free service to the clients. 6) Visibility and Reporting An important feature of the cloud service is the ‘pay as per-use’ facility.Hence to fully achieve this objective, the cloud infrastructure should support detailed levels of visibility an d invoiceing regarding the usage, service level agreements, compliances, system and network performances, billing schedules etc. 7) Administrator, Developer and exterminate User Interface Most Cloud infrastructures provide user interfaces and portals to hide the cloud service complexities from the end user and in a way also provide the ability to manage these cloud services in a simple yet comp way. [19] 7. Cloud Computing †Drivers Vs Inhibitors Inhibitors for Cloud ComputingA report make by IBM [20] (IBM Academy of Technology, Thought Leadership colour Paper, October 2010) based on the survey conducted on cx Cloud implementation Projects, revealed that the major concerns for implementing Cloud were issues involving security, need of perceived value marriage offer by the customers, pretermit of normalization and lack of funding for implementation. Some of the other factors include- complexity concerns, lack of skills, concerns about reliability and availability of clou d, technical immaturity etc. Figure 17 Source: IBM Academy of Technology, Thought Leadership unobjectionable Paper, October 2010 [20]Security [20] Security is one of the major concerns specially in public cloud implementations. Most customers are apprehensive about the privacy and integrity of their data. The concerns may increase even more if the cloud is shared among other customers, who may be your competitors. Hence fit in to the IBM survey most companies are interested in implementing the private cloud (instead of going for the public Cloud). Standardization [20] As Cloud Computing is an emerging technology, the processes and implementations are not yet standardized.Each of the Cloud implementers provides their own solutions. There are no industry wide standards yet essential for Cloud computing. Hence this lack of hardware requirements, software, operating system and processes act as an inhibitor for implementing cloud. Value trace [20] Implementation of Cloud is much eas ier if value which it provides in terms of meeting the business requirements and cost benefits can be explained to the customer. Hence lack of tools and models that assist the customers to report the return on investment and value proposition pose a deterrent in cloud implementation.Complexity and Integration [20] Most customers today run a host of applications including numerous legacy tools. Customers are feeling integrated solution for all their applications from the cloud providers. Hence the doubts over integrating all solutions and also reducing complexity are one of the concerns of the customers in implementing cloud. harmonise to Keane whiteness paper [21] on â€Å"Cloud Computing †Clear thinking about its risks, benefits and success factors” impediments to cloud Adoption are as follows: 1) 2) 3) 4) 5) Security screen / Compliance Immaturity of vendors / Offerings Risk Mitigation legacy ApplicationsDrivers for Cloud Computing BENEFITS [20] The study conduct ed by IBM based on 110 Cloud implementations revealed following results: ? ? ? around 80% of clients acknowledge benefits in sharing of IT resources through highly virtualized infrastructure by implementing cloud. Around 60% achieved ease-of-use through self service with rapid delivery. winning about public clouds specifically ? ? ? Ease-of-use is 85% (as compared to 60% boilersuit by both public and private cloud users) 68% benefit from pay-as-you-go Charging model 63% benefit from Internet / net based CloudFigure 18 Source: IBM Academy of Technology, Thought Leadership White Paper, October 2010 [20] harmonize to Keane White paper [21] on â€Å"Cloud Computing †Clear thinking about its risks, benefits and success factors” benefits of Cloud solution are as follows: 1) 2) 3) 4) 5) 6) cost Capability / Scalability More Green Organization agility Collaboration Focus agree Deloitte report on â€Å"Cloud Computing †Forecasting substitute †commercialise over view and place” [22] Figure 19 Source: Deloitte Report on Cloud Computing †Forecasting transfer †Market overview and lieu [22]Deloitte’s perspective on perceived and real impact of cloud Inhibitors [22] Figure 20 Source: Deloitte Report on Cloud Computing †Forecasting Change †Market overview and Perspective [22] 8. Global cloud computing market size& Future growth According to the report called â€Å"sizing the Cloud” of independent research firm Forrester seek the spheric cloud computing market would lend the $241 one million million million by 2020[1] as compared to $40. 7 billion in 2010. It could be possible cause of cursorily growing of cloud computing services.Figure 21 According to this report, Software-as-a-service(SaaS) would have a significant share in the tote up revenue. This segment would offer more opportunity growth than any other segments. The SaaS would have the lede position in the Cloud Computing market by hol ding the $92. 8 billion by 2016[23]. According to IDC by 2015[24] nearly 24% of the software purchaseswould be service enabled software. SaaS delivery will have the share of around 13. 1% of worldwide software revenue and 14. 4% for applications. Global Corporate Mobile SaaS Market will be at $1. billion in 2011 and will grow to $3. 7 billion by 2016 with Compound annual growth rate of 25. 8% according to latest Strategy Analytics tuner Enterprise Strategies. It will be possible by integration of business application on smartphones, tablets and other wireless devices[25]. Deloitte has estimated that cloud based usage will replace 2. 34% of IT spending in 2014 and just it will rise to 14. 49% in 2020[26]. Figure 22[26] Cisco’s Global Cloud military forcefulness forecasted that the transition of workloads from traditional data centres to cloud data centres will exceed in 2014.This year would be the crucial year when workloads through cloud data centres (51%) would be higher than the traditional data centres (49%) for the graduation exercise time. If this trend would be continued then cloud workloads would be dominating to the traditional work load by 2015. The Compound annual growth rate judge to be at 22% during 2010-15[27]. Fig 23[27] According to Gartner, Insurance industry would have a higher rate of cloud adoption (34%) compared to their initiative counterparts (27%) in the Small & Medium Business (SMB) category. Fig 24[28] Complete analysis of Cloud Computing in Asia [8]Fig 25[30] Indian Market In terms of market size, Indian market holds only $990 million compared to global market $ 109 billion7. It is predicted that India would be having market of $3-4 billion by 20157according to Zinnov Management Consulting. On the other hand Nasscom and Deloitte consulting estimated that Indian market would be worth of $16 billion by 20207. It is also estimated that India would have a immense potential growth in future cause of millions of Small &# 038; Medium Business who are not able to afford to invest in the valuable business software solutions.Vishnu Bhatt, head of cloud services at Infosys opines that, â€Å"About 60 per cent of enterprise workloads will be on the cloud in tailfin years, from the current nonexistent levels”. Four different types of market opportunity are there in the India. Roughly 25 per cent of the Indian market is in â€Å"private cloud” business cause of security reasons. Other three opportunities lies in the â€Å"public cloud” as Saas, PaaS, & in Iaas. Independent software vendors (ISVs) like”Infosys, Wipro etc. ” are the middle players who serve to small clients from the big players like Microsoft and Salesforce.The entire cost is borne by the end users, on an average the ISVs make around 20-30 per cent of the total revenue. Around 3000 ISVs are there in India and nearly 1000 of them have tied up with the Microsoft and Salesforce. So we can say Indian cloud market mostly depend on the ISVs[29]. 9. CLOUD COMPUTING AFFECTING unattackable BOUNDARY Start-ups Cloud computing reduces initial investments of the start-ups by reducing dandy investment in a data center. In cloud computing the infrastructure for data storage is provided by the cloud providers which help start-ups in reducing their investment.Cloud computing does not deplete the development cost but helps start-up companies to focus on their core competency without hiring people with expertise. Cloud computing also helps different software companies (start-ups) to expand their offering by partnerships with big firms (exa-IBM). [32, 33] Due to this lowered seat of government cost the companies were able to prove their products on less initial swell. . In 2011, 1339 companies received a total of US $5. 8bn in first gear-time financing (an increase of 7% in capital raised and an inc of 19. % in mound numbers, compared with the same period in 2010). The data shows that menace capitals are taking interest in investment funds on these small amounts since the risk is low. This helps the entrepreneurs in scissure more deals as supported by data. [34] SMB’s Cloud computing will help SME’s in modeling their business. Since it is cost effective, now companies are targeting these small and culture medium size businesses. These firms were not able to implement ERP due to high cost and lack of IT infrastructure. Now due to cost cut of the infrastructure they can use cloud for their business. iON will intensify India’s global war-riddenness by big(p) 35 million Indian SMBs access to world-class, simple-to-use and scalable technology tools. SMBs can use the power of iON to build their business advantage and compete on the global stage,” said N Chandrasekaran, chief executive incumbent and managing director, TCS, and chief architect, iON, in a statement. [35] The table under shows the share of small & medium businesses in diffe rent countries. In India Tata Consultancy Service is targeting $1 billion revenue from these small and medium businesses firm [36] over five years.Figure 26[37] A survey taken from Zoomerang (in April 2011) for small and medium businesses has shown that 77% of the small and medium businesses are not using cloud computing for their businesses and 52% of them will use cost effective IT management and maintenance sources. Figure 27 [39] A report print by Microsoft has shown that there is high potential for cloud adoption in SMBs. As per the report the number of companies with between 11 and 25 employees will potentially double till next wave.In 101 †250 employee segment 33% companies will adopt cloud in the next wave. [38] Figure 28[38] Cost effectiveness of cloud computing will help startups and SMB’s in adopting it ,which in turn will help them in making their process efficient and as the result â€Å"SMBs will be able to challenge big businesses”. [40] Venture Ca pital Investment The diagram below shows the growth of public cloud and its comparison with the overall IT. The public cloud services are growing firmly with a rate of 18%, which is a optimistic sign for the companies providing cloud services. 42] This growth is also attracting the Venture Capitalist. Currently, not much of the investment is done on this sector and there is a strong chance of investment. [43] Figure 29[42] Venture capital is also affected by government regulations. A report published by Josh Learner shows the impact of copyright policy changes on Venture capital investment in cloud computing companies. The data provided in the table in Appendix A has shown the investment of venture [41] capital quarter wise for cloud service firms in U. S. A. Figure 30[41]The haoma below shows the ratio of investment in cloud computing companies to investment in all IT companies. A drastic change can be seen in the graphical record after the copyright policy changes. [10] Figure 3 1[41] A survey taken in 2012 by Deloitte regarding global trends in venture capital shows the arrogance level of investors of different countries in different industries. The first graph shows the confidence level of venture capital investment sector wise and the second graph shows the confidence level of respondent’s country in cloud computing. 44] Figure 32[44] Figure 33[44] According to the article of NASSCOM Deloitte â€Å"Deconstructing the cloud †The new growth line for Indian IT †BPO sector” cloud computing will affect by making (below points are at once taken from the article) [40] Lines blur between consumer and enterprise IT †ab initio innovation was driven by enterprises but now trends have been changed and innovations are driven by customer segment also e. g. blogging, social networking and cloud is fast helping merge this divide between consumer and enterprise. IT drives arket-facing eminence for businesses †Cloud will be a net pos itive impact on existing service lines while opening up new â€Å"product” opportunities Cloud have a net positive impact on existing service line revenues, though traditional IS outsourcing and testing service providers will have to re-invent existing models Uptake will set out across industries because of different drivers and barriers Cloud will alter the industry landscape †commoditization of IT through cloud computing will reduce entry barrier livery some new breed competitors.Partnerships and alliances will be key to succeed in the Cloud ecosystem [40] 10. weave 2. 0 and Cloud Computing mesh 2. 0 and Cloud computing have changed the way we develop, deploy and use computer applications. The World Wide Web had seen a transition from traditional publishing model to the new collaborative information creation model. [45] Web 2. 0 uses network as a platform for sharing information, creating centre, & making a virtual community, in contrast to the websites where users can simply read the text edition (passive viewing of content). Web 2. includes some of the most astray known and used applications blogs, social networking sites, YouTube, wikis, Twitter, web applications etc. [46] Figure 34: Web 1. 0 & web 2. 0 Structure [47] Cloud computing services in nature are Web applications which deliver desirable computing services on demand. It is thus a natural technical evolution that the Cloud computing acquires the Web 2. 0 technique. [50] Cloud computing defines the way the applications are deployed. It offers infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).As per the requirement of resources, the processing power and memory gets allocated in an live manner. [45] The cloud is often misinterpreted as a compounding of clusters and grids. However, in reality, clouds are next-generation data centres which are dynamically provisioned as per the user demand used for individualised resource collection for fulfilling specific user needs and accessible through â€Å"Web 2. 0” technologies. [51] Web 2. 0 and Implications on cloud computing Web 2. 0 contributes to the front end of the business, cloud computing contributes to the back end of the business.Combining both, web 2. 0 & cloud computing, both front end as well as some of the back end of the business can be outsourced. The work can be performed from anywhere, teams may not be at the same location thus collaborating the information using, web 2. 0 tools, cloud, mobile technologies. This is the concept of virtualized organizations. [53] Statistical Support David Osimo shows how web 2. 0 applications have grown masively. He uses the data from Technorati, Wikipedia, Myspace, Youtube and Nielsen-Netratings for analysis.His findings can be seen in Figure 2.. [10] Figure 35: Growth of Web 2. 0 applications [54] Cloud computing is addressing two different market needs [50] 1. Large scale web applications (†˜web 2. 0 markets’) †scale-out cloud E. g. Google Traditional data centre computing (‘enterprise market’) †server clouds E. g. Microsoft 2. Figure 36: Evolution of World Wide Web [48] Cloud computing is integral to web 2. 0. It brings all sorts of user data along with operating system online and enables content sharing platform making the use of storage devices unnecessary.Web 2. 0 provides the collaborative functionality that helps in sharing documents and making changes on a real time basis regardless of their locations. This along with cloud computing allows for online storage of data avoiding the use of hardware, data centres as well as software replaced by online web applications like Google documents. There can be two kinds of customers for cloud [49] Those that need to scale up (achieve higher scale) at low be 2. Those that want to eliminate data centre model and choose pay-as-you-go model 1.Many technologies like grid computing, peer to peer c omputing contribute directly to cloud. Thus, web 2. 0 provides users the capabilities of easy sharing and accessibility of data with anyone, from anywhere. Applications like Google doc, face book are managed by cloud storing vast amount of user data at one place and making it readily available to everyone anytime. These applications are one type of services, software as a service. Users have their own hardware at place, and use their own platform to run these cloud applications. The software resources like application servers, database servers, IDE etc. re not required. Other kind of services include application as a service where users have their own hardware at place and rent platforms from cloud to develop customized software. Finally infrastructure as a service means the complete virtualization of business with storage at cloud. Hardware and computing also need not be performed at the site but takes place in cloud. Resources like storage, computing power are not required. [52] W ith the advent of web 2. 0, cloud computing got a boost as people could create and access any amount of information without having to worry about its storage.Google is the best example. It provides many services and applications like, Google doc, spreadsheet, YouTube all of which are cloud based and help sharing information on a real time basis. The real time sharing of knowledge is what is made possible though combination of the two. Cloud is incorporated in the next version of web 2. 0 retaining the features of web 2. 0 and adding new ‘elasticity’ to the unanimous application or business deployment. 11. Porter’s 5 Forces Analysis Threat of new entrants ? ? ? ? abject barriers to entry Relatively lower development costs Low fixed costs Huge potential marketdicker power of suppliers: ? ? High for few big players. bunghole depend on the type of service provided. negotiate power of vendees: Existing competitive landscape ? ? desirous rivalry. Presence of big, small & niche players. ? ? Dependent on the size of the buyers. SMEs’ power can increase with standardization of offerings. Threat of substitutes: ? Mild threat from open source computing Figure 38 1. Existing competitive landscape: The Cloud computing market comprises of both small and big players causing intense rivalry.But there is a large variety in the type of products and services required by customers and so there is room for big, small and niche players. There are the big players providing end-to-end services like IBM, Amazon, Microsoft etc, sodding(a) players like Salesforce and niche players like Dell-BOOMI (specializes in Cloud Integration), Rackspace (leader in managed hosting services) and small players like Zenith. [55][56] 2. Suppliers’ negotiate power: Since there is a huge potential for demand from SMEs and few big players like Google, Amazon and IBM, the bargaining power of suppliers is quite high.Bargaining power could vary according to the t ype of service provided. E. g. In case of an IaaS service, faulting cost for customers might not be very high since the offering is largely undifferentiated, but same cannot be said for a SaaS offering. Also there are is no clear rule of law for regulation of the data stored on the cloud. Data stored on the cloud could be subject to less loaded action by the regulatory authority than that stored on a personal computer. This could make the permutation costs for the customers quite high. [57][58] 3.Buyer’s bargaining power: Bargaining power of buyers can be said to be dependent on the size of the buyer’s business. In case of SMEs, the bargaining power can be said to be low since many of the suppliers in the cloud computing market are large corporations. Whereas the buyer’s bargaining power can substantially dominate the supplier if the buyer itself is a large organization. The bargaining power of SMEs can increase if with the standardization of the services whi ch will be facilitated with establishing proper regulatory compliances. [57] 4. Threat of new entrants:With the huge potential market among the SMEs, it is expected that many new entrants from the SME segment itself will enter the Cloud computing market with low cost offerings. This expectation lies on the fact of low fixed costs, relatively lower costs of developing a product and low barriers to entry. [57][59][60] 5. Threat of substitutes: Open source computing can be considered as a substitute for Cloud computing services. But it can be expected that the SMEs will prefer Cloud computing over open source due to higher switching costs in case of open source and lower costs of cloud computing services. [57]References Online: 1. 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