Cloud Computing and Its Impact on Indian IT

8/6/2019 Cloud Computing and Its Impact on Indian IT

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Cloud Computing and its Impacton Indian IT Industry

By

Rupesh Wagh(IMB2009007)

Vineet Katiyar(IMB2009011)

Prabhat Mishra(IMB2009059)


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Sr.

No

Literature Author Paper Tilled Year

1. IT can be seen as enabler toimprove productivity in business

A.S.

Bharadwaj

A resource-based perspective on

information technology capability

and firm performance: an empirical

investigation

2000

2. Explosive growth of data has givenrise to interdisciplinary research inrecent years

MicrosoftCorp

white Paper on The Power of

Client Plus Cloud Computing to

Democratize Research2010

3. Even in business the complexdependence on cross functional

and cross organizational

collaboration with flexibility, is

increasing day by day.

Deloitte. White Paper on Cloud computingforecasting change

4. Cloud computing could be adisruptive technology for traditional

software companies as well as for

corporations IT systems.

Ajit Kambil Journal of Business Strategy, Ahead in the clouds

2009

5. This new model of infrastructure

sharing is being widely adopted bythe industries

K. Hartig What is cloud computing? 2008


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Sr.

No

Literature Author Paper Tilled Year

6. The pattern of disruptive

technologies, in most of the case

shows that market leader had

failed in assessing the potential of

disruption and keep on focusing

on current customers and their

needs, ignoring new market with

new customers.

Joseph L.

Bower and

Clayton M.

Christensen

Disruptive innovation: Disruptive

Technologies: Catching the Wave

Article in HARVARD BUSINESS

REVIEW JanuaryFebruary 1995

1995


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Methodology

We had tried to

analyze our study of

Indian IT sector based

on the financial

performance of the

companies considered

in last five years in

first part then we

tried to analyze the

financial performance

of cloud computing

based on major cloud

service providers.

The paper is an

exploratory research

based on case study.

The analysis is based

on identifying the

trends and patterns of

growth of cloud by

mapping the financial

data(based on

geography and serviceline) of Indian IT firms

to the data of the

cloud service

providers .

In the later part we

tried to investigate if

Disruptive innovation

in the form of cloud


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Indian IT Majors

Major Geography of operation is America for all of the fourcompanies followed by Europe.

Application development & maintenance service line hasshowed a continuous gap from total revenue in the

considered period, even a decline in the case ofWipro(after FY 2008).

Major sector for revenue contribution for three of the fourcompanies is BFSI.

Manufacturing & processing sector percentage share has

decreased in the case of three out of four companies. Infrastructure Services has gain momentum in its

percentage share in all of four companies.

factsheet


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Cloud Titans

We have chosen 5 cloud based business service providers and

tried to understand the current scenario of cloud market for

different services such as CRM, ERP, SCM,CCC etc.

we found that major geographies of the business for all of thecompanies are America.

All of the above companies have highest growth rate in

America.

SaaS Market is growing with faster than sustainable IT sector

growth rate.

factsheet


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Analysis


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Case study & Analysis

Cloud is more about receiving IT services as a commodity than technology.

Cloud organizations are creating first level of disruption on service delivery model which is on-demand &

pricing channel which is pay as you go. It is enabling new services which were not possible earlier due tolimitations of on-premise applications

The second level of disruption would be taking place at the organizational level where orchestrated loosely

coupled ecosystem of cloud will be changing IT architecture of organizations

At the third Level of disruption the expertise gained at both in terms of start-ups and orchestrators of largescale business ecosystems, cloud serving organizations will now be in a strong position to deliver full range of

capabilities required to replace an existing on-premise infrastructure, subsequently restructuring the IT indstry.

Major sectors where IT Indian organizations focus are BFSI, Telecom, Manufacturing & Processing, etc


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Nature of Disruptive

Innovation

Our analysis is also based upon the assumptionsthat application development revenue by IndianIT industry is purely dependent upon on-premiseenterprise applications and revenue is

proportional to technology improvement.


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Currently significant investments have been made by traditional mega vendor such as EMC2, IBM, etc to

build the infrastructure required . Indian companies have a long way to acquire these capacities

Traditional mega vendor such as Microsoft, Oracle and SAP etc. have their ecosystem which contains

patents, trademarks and APIs.

Majority of the corporate users preferred traditional mega vendors for SaaS service than new players

Cloud computing privacy rights in India are absent which invites security breaches

Policies adopted by Obama government like Tax Code Revision and putting restrictions on outsourcing

have affected all Indian IT Companies after the global slowdown.


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Findings

Cloud services are more than just hype and current industrial trends are quitereceptive for cloud computing (KPMG Netherlands).

Cloud services are gaining fast momentum in geographies like America andEurope which are served by Indian IT biggies.

At present the major vendors of cloud services are from America, theyhavegained both technological and economical advantages over Indian IT Industry.

Both Political & Legal Framework is in support for the US based Companiesthan the Indian IT Companies.


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Limitations

Although detailed analysis of the results have been done,

results mayhave been refined further if larger set of data

were made available.

Depiction of precise relationship between patterns of profits

made by Indian IT industry, its growth and advancement of

global cloud computing services was not possible.

Quantitative method of drawing to the conclusion is not

available.


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Conclusion

The Indian IT industry as analyzed from the current available trend and input is not at

a variable point, as the cloud and its related technologies are yet to encroachedverticals in which Indian IT companies have specialized and diversified.

A key consideration in Indian IT industry is the cash cow (BFSI sector) which through

the current level of analysis and projected trend is the least vulnerable one under thetransformation going on because of the adaption of cloud computing.

Finally Indian IT industry presently is not under any major threat of losing significant

business to cloud operators but the Indian companies are suggested to take up cloudinitiative to encounter the future threat.


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This paper will help to study the Indian IT business and economy with respect toimpact of cloud computing. Any individual or organization intends to study the impactof new technologies on the current market can refer this paper for future work.

The paper aimed to make a comparative study on cloud market growth and the Indian ITindustry. The conclusions were achieved on the basis of our extensive study from literate

survey, financial data of the leading India IT giants and cloud leaders worldwide. This study

also included a case study approach.

Future Scope

Discussion


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References

Microsoft Office


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Thank you

Documents

Cloud Computing and Its Impact on Indian IT