SUMMER INTERNSHIP REPORT ON

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

1|Page

Preface
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.

2|Page

ACKNOWLEDGEMENT

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

3|Page

Chapter 1 Industry History

4|Page

Overview of the IT Industry

The Information Technology (IT) sector in India holds the distinction of advancing the country into the new-age economy. The growth momentum attained by the overall economy since the late 1990s to a great extent can be owed to the IT sector, well supported by a liberalized policy regime with reduction in telecommunication cost and import duties on hardware and software. Perceptible is the transformation since liberalization India today is the world leader in information technology and business outsourcing. Correspondingly, the industrys contribution to Indias GDP has grown significantly from 1.2% in 1999-2000 to around 4.8% in financial year 06, and has been estimated to cross 5% in FY07. The sector has been growing at an annual rate of 28% per annum since FY01. Indian IT companies have globally established their superiority in terms of cost advantage, availability of skilled manpower and the quality of services. They have been enhancing their global service delivery capabilities through a combination of organic and inorganic growth initiatives. Global giants like Microsoft, SAP, Oracle, and Lenovo have already established their captive centers in India. These companies recognize the advantage India offers and the fact that it is among the fastest growing IT markets in the Asia-Pacific region.

Performance Of IT Sector In Financial Year 2011-12 In India

Despite economic uncertainties in the US and Europe, Indias software body Nasscom is confident of a 16-18 per cent growth rate of the countrys information technology (IT) industry in FY12, with the sector slated to bring in about $68-70 billion in revenue. Growth in the domestic market is estimated at 15-17 per cent, with revenues of about $1920 billion. 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. Though Nasscom president Som Mittal maintained a cautious outlook, he said: There is no reason for us to be worried... We have spoken to customers and they are looking at expanding into geographies and bringing newer solutions to the market. As for the business process outsourcing (BPO) industry, a Nasscom and Crisil report noted that India is positioned as a knowledge services powerhouse, with 70 per cent share of the $2.9billion global industry. The industry also generated employment for almost 70,000 people in over 100 firms.
5|Page

In the last decade, the industry has grown 16 times in size, to reach $16.9 billion (including domestic) in FY11. In addition to fuelling Indias economy, direct and indirect employment creation is estimated at 4.5 million, said Nasscom president Som Mittal. In fact, India is the leading BPO destination, accounting for over 37 per cent of the total global sourcing BPO revenues, followed by Canada and Philippines.

Industry Structure
The size of the Indian IT industry, according to NASSCOM, has been estimated to be around US$ 47.8 bn. The Indian IT industry can be broadly divided into two markets: domestic market and exports market. The exports market constitutes the largest segment accounting for 75% of the total revenue generated by the Indian software industry. The domestic IT market is broadly divided into the following four segments: IT Services, software segment which includes engineering and Research & Development (R&D) services, IT-enabled Services and Business Process Outsourcing (ITeS-BPO), and Hardware. While IT Services accounted for 34% of the total revenue generated by the domestic market in FY06, the Engineering Services, R&D and Software Products segments together accounted for 10% of the revenue. The ITeS-BPO segment, on the other hand, contributed 7%. The exports market is dominated by the IT services market holding a share of 56.4% in the software and services exports in FY06, followed by the ITeS-BPO segment with 26.7% share and the software products and engineering services segment with 16.9% share. The Indian information technology industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has risen from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.8 per cent in FY 2008-09. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT

6|Page

Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. The government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum, from the earlier few million dollars worth exports in early 1990s. As per NASSCOM's latest findings: Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71.7 billion in aggregate revenue (including hardware). Of this, the software and services segment accounted for US$ 59.6 billion. IT-BPO exports (including hardware exports) grew by 16 per cent from US$ 40.9 billion in FY 2007-08 to US$ 47.3 billion in FY 2008-09. Despite the uncertainty in the global economy, the top three IT majors Infosys, TCS and Wiprohave seen revenue growth from all important sources of income: from the North American and European regions, in the financial services vertical and from application maintenance and development (ADM) offerings between fiscal years 2008 and 2009. A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. According to NASSCOM software and services exports (including exports of IT services, BPO, engineering services and R&D and software products) reached US$ 47 billion in FY 2008-09, contributing nearly 78 per cent to the total software and services revenue of US$ 59.6 billion.

7|Page

Domestic Markets India's domestic market has also become a force to reckon with, as the existing IT infrastructure evolves both in terms of technology and depth of penetration. According to NASSCOM, domestic IT market (including hardware) reached US$ 24.3 billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 per cent. 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. Such growth in the software and services sector has been achieved because of spectacular growths in some segments. According to research firm Gartner, India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 million units in 2009, aided by a surge in demand for laptops. The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units and constitute a third of the total PC market. The master control of 'Indian IT Industry' is in the hands of Department of Information Technology (DOT) which aims to make ' India IT Industry ', a Global IT Super Power by 2008 - a front-runner and bring the benefits of electronics to every walk of life. Further, it is focused on Creation of Wealth, Employment Generation and IT led Economic Growth. According to sources, annual revenue projections for ' India IT Industry ' in 2008 are US $ 87 billion and market openings are emerging across four broad sectors, IT services, software products, IT enabled services, and e-businesses thus creating a number of opportunities for Indian companies. All of these segments have opportunities in foreign and as well as in domestic markets. Sources estimates IT services will contribute over 7.5 % of the overall GDP. IT Exports will account for 35% of the total exports with potential for 2.2 million jobs in IT by 2008. IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion.

8|Page

Market capitalization of IT shares will be around U.S. $ 225 billion.

With the formation of a new ministry for IT, Government of India (GOI) has taken major steps towards promoting ' India IT Industry '. It has taken steps to promote angel investors, venture creators and incubation to promote Electronics and hardware manufacturing. R&D. Increase PC penetration. Increase utilization of Internet. Domestic software market. Development of local language softwares. Use of IT to increase productivity. Use of IT as a means of generating employment. Availability of technical work force. Number and quality of training facilities.

'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.

Indias IT Industry (US$ bn)

9|Page

IT Services Exports Indian IT Services exports grew from US$ 10 bn in FY05 to US$ 13.3 bn in FY06, registering a growth of 33.4%, and is further expected to reach US$ 18.1 bn in FY07, posting a growth of 36%. Revenue from projects dominated the IT Services exports with a share of 58%, with outsourcing and support & training activities accounting for 33% and 9% respectively.

Within the ITeS-BPO segment, Customer Interaction Services (CIS) account for nearly Indias IT Exports XIV 45-50% of the total ITeS-BPO services exports while finance & accounting contributes for the remaining 40-45%. Human resource and other high-end knowledge-based processes account for 2% and 8-10% respectively. The Software product, Engineering services and R&D segment contributes around 17% of the software and services exports. India is well positioned in the engineering and R&D services segment. Apart from Indian companies offering these services, several foreign companies (both captive and third party) are also setting up base in India to provide these services. Overseas companies operating in sectors like hightech, telecommunications, automobile, aerospace, heavy machinery, construction and industrial products are looking at off-shoring their engineering and R&D related work to India.

10 | P a g e

Few important characteristics of the Indian IT sector include: Export intensive: Ever since the industrys evolution, exports has been the major contributor to the industry. 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. These companies are now however moving up the value chain offering end-to-end solutions to clients. Labour Intensive Industry: The very nature of the services offered by the industry makes human resources a significant driver for the industry. Fragmented Industry: D&Bs in-house database has identified over 8,000 companies which operate in the IT space in India, offering a wide range of software products and services. 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, due to the advantages that the Indian industry offers, the Indian IT companies are also preparing to tap the global market. The companies are witnessing significant change with regard to their service offerings and geographical concentration. Today, companies are expanding their service offerings from application development and maintenance to high end services like testing, consulting and engineering designing. The global delivery model has not only facilitated the companies in delivering quality of work but also helped them to control costs.

New Service Offerings

The Indian IT companies are expanding their service offerings to provide a complete basket of services to their clients. These new services include IT consulting, testing, business process management and IT infrastructure services, 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.

11 | P a g e

Larger Deal Size

Indian IT companies have successfully scaled up operations and made a mark in the global outsourcing market, evident from the large deals bagged by the Indian IT companies in the past one year, including the British Telecom-Tech Mahindra deal which was worth US$ 1 bn, the Pearl Insurance-TCS deal ( 486 mn), the Skandia-HCL Technologies deal (US$ 200 mn) and the Kimberly-Clark-TCS deal (US$ 100 mn). Most of the deals bagged by the major companies were in the Banking and Financial Service space which reiterates the growth in this vertical. As per the data compiled by Technology Partners International (TPI), 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$ 2.7 bn in 2006, with a market share of 25% in the Asia Pacific region.

Growing presence of MNCs

Cost arbitrage and the availability of a large talent pool has attracted several MNCs to India. Big players like IBM, Accenture, Capgemini and Oracle among others have not only increased their headcounts in India but also outperformed their global performance in terms of revenue growth. Their Indian operations are witnessing strong growth as compared to their global business. Some of the major global companies like Intel, IBM and CSC are cutting jobs abroad and shifting their base to India.

12 | P a g e

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$ 1.1 bn US$ 1.7 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, the US continues to remain the key market for Indian IT companies, accounting for 67.2% of the software and services (including BPO) exports from India. However, Europe is also emerging as an important market for the Indian IT industry, considering the fact that the share of exports to Europe from India increased from 22.2% in FY03 to 25.1% in FY06. After the US, Indian companies are looking at the European region as a potential market for exports and also to expand their global presence. Mergers and acquisitions has been one of the routes that the Indian companies have adopted to enhance their presence in European markets.

13 | P a g e

New End-users:
In terms of user industries, the BFSI and hi-tech/telecommunication industries remain the leading verticals for the Indian IT companies. Together, these sectors account for 58% of the Indian IT-ITeS exports. Though these verticals have good growth potential, other sectors such as manufacturing, retail, healthcare, utilities, etc., are also emerging as promising segments for the Indian IT companies. While the BFSI sector has the potential to provide large size contracts to the IT companies, the manufacturing sector can provide large number of deals/assignments to the Indian players. Presently, the Indian IT companies are on a hiring spree which indicates their bullishness on their order flows. All the major players have increased their manpower by 15-50%, and the trend is expected to continue further. As a result, the companies are expected to scale up their operations. The Indian IT companies are also vying for inorganic growth, with a quest for newer geographical areas, service offerings, domain expertise, customers and markets.

Concerns for the Indian IT Industry

Though demand conditions have been optimistic, the Indian IT sector is exposed to certain risks which may deter growth. An appreciating rupee, anticipated slowdown in the US economy, shortage of skilled manpower, limitations in domestic infrastructure and competition from other global players offering manpower at low cost like China, Philippines and Vietnam can have a negative impact on the performance of the Indian IT companies. Besides, increasing activities of global MNCs in India will make difficult employee retention for Indian companies. NASSCOM opines that there will be a shortage of half a million people in the IT and ITeS segments by 2009. With an industry attrition level hovering around 20-25% (often higher for smaller players), companies are likely to offer an increase of 10-15% in salaries in the coming years.

14 | P a g e

On the financial front, wage inflation of 10-15% and forex fluctuation can reduce the top line as well as the bottom line of the companies. 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, which may reduce their profitability further.

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, clients and Lack of proper infrastructure offerings Setting training and development centers to Competition from low cost countries, train fresh entrants China, Philippines & Vietnam

15 | P a g e

Chapter - 2 Company Profile

16 | P a g e

CA Technologies, Inc. (NASDAQ: CA), formerly CA, Inc. and Computer Associates International, Inc., is one of the largest independent software corporations in the world. Headquartered in Islandia, New York, the company creates software which runs in mainframe, distributed, virtualized and cloud environments. Although the company once sold anti-virus and Internet security programs for consumer personal computers, it is primarily known for its commercial mainframe computer and distributed computing applications since the spinoff of their security products into Total Defense. CA Technologies claims that its software is used by a majority of the Forbes Global 2000 companies. CA Technologies posted $4.4 billion US$ in revenue for fiscal year 2010 (ending March 31, 2010) and maintains 150 offices in more than 45 countries. The company employs 13,200 people (March 31, 2010), including 5,900 engineers. CA holds more than 400 patents worldwide, and has more than 700 patent applications pending. In 2010 the company acquired eight companies to support its cloud strategy: 3Tera, Nimsoft, NetQoS, Oblicore, Cassatt, 4Base Technology, Arcot Systems, and Hyperformix.

Specialties
Service Management, Service Assurance, Network Management, Project and Portfolio Management, Security Management, Storage Management, Data Modeling, Application Performance Management, Recovery Management, Mainframe, Cloud Computing, Virtualization

Software products
CA offers software products and services for distributed computing, mainframe environments, as well as virtualization and cloud. 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, 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

CA Services
CA Services is a services organization within CA Technologies employing over 1,200 consultants. With a presence in over 25 countries, CA Services works with businesses of all sizes to develop implementation, technology roadmap, and education plan. The organization posted US$280M in revenue for fiscal year 2010 (ending March 31, 2010)

CA Labs
CA Labs was established in 2005 to strengthen relationships between research communities and CA. CA Labs has been working closely with universities, professional associations and government on various projects that relate to CA products, technologies and methodologies. The results of these projects vary from research publications, to best practices, to new directions for products. Through a variety of University Relations programs, CA is working with many universities to enable and promote innovationincluding funding university research projects in specific areas, working with faculty to enhance curriculum, and providing opportunities to interact with CA research and development experts.

18 | P a g e

SWOT analysis
Strengths

Flexible, responsive administration of computing Well-maintained network Universal, convenient computer/Internet access Local control and flexibility Integration of computing in curricula Successful integrated administrative computing End-user sales control and direction. Right products, quality and reliability. Superior product performance vs. competitors. Better product life and durability. Spare manufacturing capacity. Some staff have experience of end-user sector. Have customer lists. Direct delivery capability. Product innovations ongoing. Can serve from existing sites. Products have required accreditations. Processes and IT should cope. Management is committed and confident.

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. Some gaps in range for certain sectors. We would be a small player. No direct marketing experience. Need more sales people. Limited budget. No pilot or trial done yet. Delivery-staff need training. Customer service staff need training. Management cover insufficient.

19 | P a g e

Opportunities

Continuing increase in the speed and power of information technology Enormous Could develop new products. Local competitors have poor products. Profit margins will be good. End-users respond to new ideas. Could extend to overseas. New specialist applications. Can surprise competitors. Support core business economies. Could seek better supplier deals.

Threats
Limited lifespan of hardware and software Legislation could impact. Environmental effects would favor larger competitors. Existing core business distribution risk. Market demand very seasonal. Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to reactive attack by major competitors.

20 | P a g e

Chapter - 3 Introduction To Cloud

21 | P a g e

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. You use only what you need and pay for only what you use. You can access any of the resources that live in the "cloud" at any time and from anywhere across the Internet. You don't have to care about how things are being maintained behind the scenes in the cloud. The Cloud is a collection of Internet-based services providing users with scalable, abstracted IT capabilities, including Software, Development Platforms and Hardware. Nonetheless, today, not all of these characteristics are truly present on the market. Cloud computing derives from the common depiction in technology architecture diagrams of the Internet, or IP availability, illustrated as a cloud. Cloud computing gained attention in 2007 as it became a popular solution to the problem of horizontal scalability. The cloud is responsible for being highly available and responsive to the needs of your application. Cloud computing has also been called utility computing or grid computing. Cloud computing is a paradigm shift in how we architect and deliver scalable applications. In the past, successful companies spent precious time and resources building infrastructures that in turn provided them a competitive advantage. It was frequently a case of "Build it, and they will come." In most cases, this approach:

Left large tracts of unused computing capacity that took up space in big data centers. Required someone to babysit the servers. Had associated energy costs.

The unused computing power wasted away, with no way to push it out to other companies or users who might be willing to pay for additional compute cycles. With cloud computing, excess computing capacity can be put to use and be profitably sold to consumers. This transformation of computing and IT infrastructure into a utility, which is available to all, somewhat levels the playing field. It forces competition based on ideas, rather than computing resources. Resources your applications and IT systems constantly need (to meet growing demands for storage, computing resources, messaging systems, and databases) are essentially commoditized. You can rent this infrastructure from the vendor that provides the best price and service.

22 | P a g e

History Of Cloud
The Cloud is not as new as it seems. The Cloud symbol that permeates virtually all Cloud computing literature is more than 50 years old, 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 that time, 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. While the service did not materialize, the concepts and advantages were understood and relentlessly pursued through to this day. The pursuit of centralized, 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), and Application Service/ Infrastructure Providers (ASP where infrastructure was rented to a customer at an offsite location, but used most of the time by the one, paying customer). Other IT services historically offered include Time Sharing Systems, Co-Location, Hosting, and Outsourcing. As with any evolution, the step from ASP to Cloud computing is subtle yet disruptively important. While ASPs managed the offsite infrastructure for a customer, they were bound to the concept that the infrastructure capacity was predetermined and inflexible; ASP customers were required to declare the quantity of compute and storage capacity needed up front. If the customers computing needs grew or contracted, the hardware had to be scaled up or down with an associated delay and up-front investment. One of the main principles of Cloud computing, from Software-as-a-Service to Storage on demand, is that the computing capacity varies immediately and transparently with the customers needs, and clients no longer must plan, configure, and deploy fixed quantities of computing equipment, with associated costs, lead-times, and financial risks. Indeed, from this evolution we find ourselves at the cusp of a significant transformation in Information Technology. Companies that are knowledgeable and prudently adopt Cloud computing will recognize significant benefits, 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.

23 | P a g e

24 | P a g e

Cloud Today
Cloud computing encompasses an increasingly broad array of uses deeply embedded in both our personal and professional lives, with the distinction not always very clear: Personal applications of Cloud computing provide the most universally accessible understanding of the Cloud. With the common acceptance of applications like Gmail, Hotmail, Facebook, MySpace we are already familiar with the advantages. Indeed, Gmail, to take but one example, offers virtually limitless space to its users, to whom the details of the underlying software and hardware are completely and purposefully obscured. 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. These former start-ups, such as Google, eBay and Amazon, have become leaders in the Cloud computing industry and are poised to expand into and dominate the Business Cloud application market. Business Cloud applications were carried to the CXOs attention with the advent, growth and acceptance of companies such as salesforce.com and NetSuite. Business Clouds, which deliver business value with a reduced IT footprint, are poised to change the way enterprises deploy and manage their IT assets and business processes.

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. Its impact on enterprise Information Technology over the upcoming decade will be enormous given its advantages. We believe it will prove to be disruptive, changing the game for all actors: software vendors, system integrators, customers, governments and regulators. Cloud computing is a disruptive innovation, that has taken root initially in simple applications at the bottom of the market and is relentlessly moving up market, and will eventually displace established competitors. Today it is only subtly disruptive, but it will impact all IT players over time, both through "low-end disruption", 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, creating market segments that were previously not being served by on premise incumbents

25 | P a g e

Characteristics
Cloud computing exhibits the following key characteristics:

Agility improves with users' ability to re-provision technological infrastructure resources. 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. Cloud computing systems typically use REST-based APIs. Cost is claimed to be reduced and in a public cloud delivery model capital expenditure is converted to operational expenditure. This is purported to lower barriers to entry, as infrastructure is typically provided by a third-party and does not need to be purchased for one-time or infrequent intensive computing tasks. 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, most of them concluding that costs savings depend on the type of activities supported and the type of infrastructure available in-house. Device and location independence enable users to access systems using a web browser regardless of their location or what device they are using (e.g., PC, mobile phone). As infrastructure is off-site (typically provided by a third-party) and accessed via the Internet, users can connect from anywhere. Virtualization technology allows servers and storage devices to be shared and utilization be increased. Applications can be easily migrated from one physical server to another. 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, electricity, etc.) 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. Reliability is improved if multiple redundant sites are used, which makes welldesigned cloud computing suitable for business continuity and disaster recovery. Scalability and Elasticity via dynamic ("on-demand") provisioning of resources on a fine-grained, self-service basis near real-time, without users having to engineer for peak loads. Performance is monitored, and consistent and loosely coupled architectures are constructed using web services as the system interface.

26 | P a g e

Security could improve due to centralization of data, increased security-focused resources, etc., but concerns can persist about loss of control over certain sensitive data, and the lack of security for stored kernels. Security is often as good as or better than other traditional systems, in part because providers are able to devote resources to solving security issues that many customers cannot afford. However, 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. In addition, user access to security audit logs may be difficult or impossible. Private cloud installations are in part motivated by users' desire to retain control over the infrastructure and avoid losing control of information security. Maintenance of cloud computing applications is easier, because they do not need to be installed on each user's computer and can be accessed from different places.

Service Models
Cloud computing providers offer their services according to three fundamental models:Infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) where IaaS is the most basic and each higher model abstracts from the details of the lower models.

Infrastructure as a service (IaaS)

In this most basic cloud service model, cloud providers offer computers as physical or more often as virtual machines , raw (block) storage, firewalls , load balancers, and networks. IaaS providers supply these resources on demand from their large pools installed in data centers. Local area networks including IP addresses are part of the offer. For the wide area connectivity, the Internet can be used or - in carrier clouds - dedicated virtual private networks can be configured.

27 | P a g e

To deploy their applications, cloud users then install operating system images on the machines as well as their application software. In this model, it is the cloud user who is responsible for patching and maintaining the operating systems and application software. Cloud providers typically bill IaaS services on a utility computing basis, that is, cost will reflect the amount of resources allocated and consumed. Infrastructure-as-a-Service or IaaS Cloud is a platform through which businesses can avail equipment in the form of hardware, servers, storage space etc. at pay-per-use service. Moreover, 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. When we talk about IaaS functioning, it is not a machine that we are talking about, which does all the work, it is simply a facility given to the business enterprises that offers users the leverage of extra storage space in servers and data centers.

Platform as a service (PaaS)

In the PaaS model, cloud providers deliver a computing platform and/or solution stack typically including operating system, programming language execution environment, database, and web server. 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. With some PaaS offers, 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, cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. The cloud users do not manage the cloud infrastructure and platform on which the application is running. This eliminates the need to install and run the application on the cloud user's own computers simplifying maintenance and support. What makes a cloud application different from other applications is its elasticity. This can be achieved by cloning tasks onto multiple virtual machines at run-time to meet the changing work demand. Load balancers distribute the work over the set of virtual machines. This process is inconspicuous to the cloud user who sees only a single access point. To accommodate a large number of cloud users, cloud applications can be multitenant, that is, any machine serves more than one cloud user organization. It is common to refer to special types of cloud based application software with a similar naming convention: desktop as a service, business process as a service, Test Environment as a Service, communication as a service.

28 | P a g e

29 | P a g e

Deployment models

Cloud Computing Types

Public cloud
Public cloud applications, storage, and other resources are made available to the general public by a service provider. These services are free or offered on a pay-per-use model. Generally, public cloud service providers like Microsoft and Google own and operate the infrastructure and offer access only via Internet (direct connectivity is not offered).

Community cloud
Community cloud shares infrastructure between several organizations from a specific community with common concerns (security, compliance, jurisdiction, etc.), whether managed internally or by a third-party and hosted internally or externally. The costs are spread over fewer users than a public cloud (but more than a private cloud), so only some of the cost savings potential of cloud computing are realized.

Hybrid cloud
Hybrid cloud is a composition of two or more clouds (private, community or public) that remain unique entities but are bound together, offering the benefits of multiple deployment models. By utilizing "hybrid cloud" architecture, companies and individuals are able to obtain degrees of fault tolerance combined with locally immediate usability without dependency on internet connectivity. Hybrid Cloud architecture requires both on-premises resources and off-site (remote) server based cloud infrastructure.

30 | P a g e

Hybrid clouds lack the flexibility, security and certainty of in-house applications. Hybrid cloud provides the flexibility of in house applications with the fault tolerance and scalability of cloud based services.

Private cloud
Private cloud is cloud infrastructure operated solely for a single organization, 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

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, greater flexibility, and greater focus on core competencies In the following sections we will detail these drivers and show how, beyond these advantages, Cloud computing service providers will need to address a number of remaining inhibitors to achieve mainstream adoption in the coming years. The key factors for overcoming the present inibitors will be to gain users trust on security and compliance, and promote a new way of thinking, a mindshift in the IT industry despite the resistance to change. Moreover, and perhaps just as important to Cloud computings advancement, the industry will need to align perceptions of the Cloud drivers and in hibitors more realistically.

32 | P a g e

The Advent of Cloud Computing

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

33 | P a g e

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, delivery, and sourcing options. For example, a CIO may decide to purchase Cloud-based shared business processes/software services, such as CRM, collaboration technologies, and e-mail or choose to operate a private infrastructure Cloud to improve operations of their legacy applications. Despite the hype that surrounds it, Cloud Computing is not a panacea for all IT woes. It is indeed a powerful extension of existing architectures and technologies, which enables delivery of hardware, software, and infrastructure as standardized, modular services. Businesses may choose to either give out commercial contracts for these services or provide them internally. Pragmatic use of Cloud capabilities as part of an overall IT strategy can enhance ITs effectiveness in addressing critical business needs and add to ITs overall value to the business.

34 | P a g e

Issues
Privacy
The cloud model has been criticised by privacy advocates for the greater ease in which the companies hosting the cloud services control, thus, can monitor at will, lawfully or unlawfully, the communication and data stored between the user and the host company. Instances such as the secret NSA program, working with AT&T, and Verizon, which recorded over 10 million phone calls between American citizens, causes uncertainty among privacy advocates, and the greater powers it gives to telecommunication companies to monitor user activity. 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. The point is that CSP operations, customer or tenant data may not remain on the same system, or in the same data center or even within the same provider's cloud. This can lead to legal concerns over jurisdiction. While there have been efforts (such as US-EU Safe Harbor) to "harmonise" the legal environment, 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." Cloud computing poses privacy concerns because the service provider may access the data that is on the cloud at any point in time. They could accidentally or deliberately alter or even delete some info.

Compliance
In order to obtain compliance with regulations including FISMA, HIPAA, and SOX in the United States, the Data Protection Directive in the EU and the credit card industry's PCI DSS, users may have to adopt community or hybrid deployment modes that are typically more expensive and may offer restricted benefits. 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. Many providers also obtain a SAS 70 Type II audit, 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. Providers typically make this information available on request, under non-disclosure agreement. Customers in the EU contracting with cloud providers outside the EU/EEA have to adhere to the EU regulations on export of personal data. U.S. 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. Federal CIO Steven VanRoekel issued a memorandum to federal agency Chief Information Officers on December 8, 2011 defining how federal agencies should use FedRAMP. FedRAMP consists of a subset of NIST Special Publication 800-53 security controls specifically selected to provide protection in cloud environments. A subset has been defined for the FIPS 199 low categorization and the FIPS 199 moderate categorization. The FedRAMP program has also established a Joint Acceditation Board (JAB) consisting of Chief Information Officers from DoD, DHS and GSA. The JAB is responsible for establishing accreditation standards for 3rd party
35 | P a g e

organizations who will perform the assessments of cloud solutions. The JAB will also review authorization packages and may grant provisional authorization (to operate). The federal agency consuming the service will still have the final responsibility for final authority to operate. More information available from GSA at

Legal
As can be expected with any revolutionary change in the landscape of global computing, certain legal issues arise; everything from trademark infringement, security concerns to the sharing of propriety data resources.

Open source
Open-source software has provided the foundation for many cloud computing implementations, one prominent example being the Hadoop framework. In November 2007, the Free Software Foundation released the Affero General Public License, a version of GPLv3 intended to close a perceived legal loophole associated with free software designed to be run over a network.

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. Some vendors have adopted others' APIs and there are a number of open standards under development, with a view to delivering interoperability and portability.

Security
As cloud computing is achieving increased popularity, concerns are being voiced about the security issues introduced through adoption of this new model. 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. An alternative perspective on the topic of cloud security is that this is but another, although quite broad, case of "applied security" and that similar security principles that apply in shared multi-user mainframe security models apply with cloud security. The relative security of cloud computing services is a contentious issue that may be delaying its adoption. Physical control of the Private Cloud equipment is more secure than having the equipment off site and under someone elses control. 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. 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. It is the very nature of cloud computing-based services, private or public, that promote external management of provided services. 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, data segregation, privacy, bug exploitation, recovery, accountability, malicious insiders, management console security, account control, and multi-tenancy
36 | P a g e

issues. Solutions to various cloud security issues vary, from cryptography, particularly public key infrastructure (PKI), to use of multiple cloud providers, standardisation of APIs, and improving virtual machine support and legal support. Cloud computing offers many benefits, but it also is vulnerable to threats. As the uses of cloud computing increase, it is highly likely that more criminals will try to find new ways to exploit vulnerabilities in the system. There are many underlying challenges and risks in cloud computing that increase the threat of data being compromised. To help mitigate the threat, cloud computing stakeholders should invest heavily in risk assessment to ensure that the system encrypts to protect data; establishes trusted foundation to secure the platform and infrastructure; and builds higher assurance into auditing to strengthen compliance. Security concerns must be addressed in order to establish trust in cloud computing technology.

Sustainability
Although cloud computing is often assumed to be a form of "green computing", there is no published study to substantiate this assumption. Siting the servers affects the environmental effects of cloud computing. In areas where climate favors natural cooling and renewable electricity is readily available, the environmental effects will be more moderate. (The same holds true for "traditional" data centers.) Thus countries with favorable conditions, such as Finland, Sweden and Switzerland, are trying to attract cloud computing data centers. Energy efficiency in cloud computing can result from energyaware scheduling and server consolidation. However, in the case of distributed clouds over data centers with different source of energies including renewable source of energies, a small compromise on energy consumption reduction could result in high carbon footprint reduction.

Abuse
As with privately purchased hardware, customers can purchase the services of cloud computing for nefarious purposes. This includes password cracking and launching attacks using the purchased services. In 2009, 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.

37 | P a g e

Chapter - 4 Research Methodology

38 | P a g e

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

39 | P a g e

QUESTIONAIRE
Demographic Data
Contact Person: _____________________________________________________ Age: Address: Phone No.: E-mail: _____________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

1. Do you know what is cloud Computing?

Yes No ( ) ( )

2. Do you use any of cloud services :

Yes No ( ) ( )

If Yes Then 3. Cloud You Use of:

Google Apple Microsoft Others ( ( ( ) ) )

( )

40 | P a g e

4. From how many years you are using services of your Existing cloud provider?
1 Year 3 Year ( ) ( ) 2 Year 4 Year ( ) ( )

5. Which service of cloud you use?

IAAS PAAS SAAS ( ) ( ) ( )

6. 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

Research By CA Technologies & Ponemon (Cloud Securities) This section provides the most important findings of our cloud provider study. Whenever feasible, 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. Attributions about cloud computing security Bar Chart 1 reports cloud providers agreement with three attributions about cloud computing security. 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. The majority does not believe their cloud services include the protection of sensitive data. Further, 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.

42 | P a g e

Many universities, vendors and government organisations are investing in research around the topic of cloud computing:

In October 2007, 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. In April 2009, UC Santa Barbara released the first open source platform-asa-service, AppScale, which is capable of running Google App Engine applications at scale on a multitude of infrastructures. In April 2009, the St Andrews Cloud Computing Co-laboratory was launched, focusing on research in the important new area of cloud computing. Unique in the UK, 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, the TClouds (Trustworthy Clouds) project was started, funded by the European Commission's 7th Framework Programme. 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. The project also develops a prototype to demonstrate its results. In December 2010, the TrustCloud research project was started by HP Labs Singapore to address transparency and accountability of cloud computing via detective, data-centric approaches encapsulated in a five-layer TrustCloud Framework. The team identified the need for monitoring data life cycles and transfers in the cloud, leading to the tackling of key cloud computing security issues such as cloud data leakages, cloud accountability and crossnational data transfers in transnational clouds. In July 2011, 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 - development of HPCCLoud Performance Analysis Toolkit which was funded by CIM-Returning Experts Programme - under the coordination of Prof. Dr. Shajulin Benedict. In June 2011, the Telecommunications Industry Association developed a Cloud Computing White Paper, to analyze the integration challenges and opportunities between cloud services and traditional U.S. telecommunications standards.4

43 | P a g e

For Telcos in India, 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. by Srinivasan Ramaswamy and Arun Goyal, September 2011

Its hard being a telecommunications company in India these days. Although India presents one of the fastest growing mobile and broadband markets in the world, telcos in India face challenges on a number of fronts: an intensively competitive market with a large number of players, declining fixed-line revenues, increasing mobile customer churn brought about by mobile number portability, declining mobile revenue per user and minutes of usage due to the nature of the customer being acquired, and onerous regulatory oversight spurred by recent telecom scandals. 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. Such services include multimedia messaging and global positioning applications. Although the MVAS market presents an attractive market opportunity given In dias demographics and market size, telcos in India would be prudent to systematically address the cloud computing services market for the small- and medium-sized business (SMB) segment in India as a another source of incremental revenue generation. 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. India is also estimated to achieve the highest SMB IT expenditure growth rate of 24 percent, with more than 50 percent of the expenditure expected to be dedicated to hardware. For the SMB segment, cloud computing lowers barriers to growth by lowering technology costs and upfront investments. After the Great Recession of 2008, market sentiment has been improving, 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, customer satisfaction, and employee efficiency and productivity. In India, 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. Telcos are well-positioned to tap into this opportunity as they have invested substantially in bandwidth creation, and currently the market has excess capacity. Telcos also have the infrastructure in place for accelerated cloud adoption; however they have limited experience with addressing the SMB segment of the market. Telcos can enable an ecosystem of partnerships that comprises themselves, managed services providers, cloud infrastructure providers, IT services firms, and independent software vendors to effectively address the SMB market in India.

44 | P a g e

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

Tenfold increase in cloud opportunity

In India, retail and manufacturing companies constitute 55 percent of the SMB universe, with southern and western India accounting for nearly 65 percent of their presence. As the emerging markets growth story percolates down from larger to smaller cities, SMBs in these cities are very well positioned to be tapped using the right cloud ecosystem.

45 | P a g e

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

46 | P a g e