Final Pilot Project Report-cloud

8/4/2019 Final Pilot Project Report-cloud

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Market Survey on Cloud Based Enterprise Solution Page 43

MARKET SURVEY ON PROSPECTS OF

CLOUD BASED ENTERPRISE SOLUTION

Submitted By:

Amit Singh - 10030241051

Ankur Shah - 10030241054

Prakhar Sharma - 10030241073

Rinshi Sahai - 10030241077

Sonam Dongre - 10030241087

Swati T.10030241089


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Certificate

This is to certify that a pilot study on Market Survey on Prospects of Cloud

Based Enterprise Solution is a bonifide work carried out by the below

mentioned students of 2st

semester I.T Business Management (ITBM) in the

partial fulfillment for the award of degress of Master of Business Administration

under my guidance during the year 2010-2012.The report is approved as it

satifies the academic requirements in respect of dissertation prescribed for the

MBA degree.

1.Amit Singh2.Ankur Shah3.Prakhar Sharma4.Rinshi Sahai5.Sonam Dongre6.Swati T.(Internal Evaluator) (External Evaluator) (Director)

Date:

Place:


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ACKNOWLEDGEMENT

We would like to express our gratitude and hearty appreciation to Prof.

Dr.Pransenjit Sen for his encouragement and valuable guidance in the

successful completion of the project work. The business plan would not have

come to a successful completion without his inspiring and constant advice.

We are also grateful to the administration of SCIT, Pune for facilitating the

opportunity to work on our dissertation and also thankful to Prof. S.V.K

Bharathifor providing us guidance.

Finally, we would like to sincerely thank our Director Dr. R. Raman, Symbiosis

Centre for Information Technology, Pune for giving us the opportunity to do the

pilot task.

It has been a wonderful and enriching experience working on this pilot project

and we will look forward to do the same in future.


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ABSTRACT

With the advent of internet, technology has reached new heights. One such

technology using the benefits of internet is Cloud Computing. The term cloudcomputing may not have existed a few decades ago but it finds its root way back

to mid 19th

century. Multibillion dollar companies have been shifting to cloud

computing and even mid-level enterprises have not been far behind in shifting

to Cloud computing. Eminent personalities in the world of IT are discussing how

cloud computing will revolutionize and change the way business is done. Cloud

computing is managing the explosion of modern information. By 2012,

Customers are expected to spend approximately 42 billion dollar on cloud

computing.The objective of this report is to study the trends of enterprise solutions

available in cloud and its future. Cloud Based Enterprise Solution (CBES) includes

all IT aspects to an enterprise present in cloud for example: a leather industry

also needs IT enabled project management tools, which is non core area for

leather industry. Cloud can be used to outsource this vertical without hassles of

IT setup. This report presents various such aspects of CBES from a vendors

perspective. Also it looks at the underlying technology which drives cloudcomputing and the benefits we derive out of it.

The analysis has been done on the basis of the online and literature survey

conducted in the month of January 2011 as a part of pilot project.


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CONTENTS

1 Table of Contents1. Scope and Aim .............................................................................................................................................................. 48

1.1. Scope of the project ................................................................................................................................................. 48

1.2. Aim of the project .................................................................................................................................................... 48

2. Assumptions ................................................................................................................................................................. 49

3. Methodology ................................................................................................................................................................ 49

3.1. Research Methodology ............................................................................................................................................ 49

3.2. Pilot Project Approach ............................................................................................................................................. 50

4. Literature Review ......................................................................................................................................................... 53

4.1. Cloud ........................................................................................................................................................................ 53

4.2. Services Provided by various Vendors: .................................................................................................................... 54

4.3. Pricing Strategy: ....................................................................................................................................................... 58

5. Survey and Analysis: ..................................................................................................................................................... 63

6. Scope of development in Small and Medium Business(SMB) Market: ...................................................................... 75

6.1. Recent News in SMB market .................................................................................................................................... 75

6.2. Survey conducted for SMB market by PeoplePerHour.com .................................................................................... 75

6.3. Survey conducted for SMB market by IBM .............................................................................................................. 75

7. Cloud Concerns and Solutions ...................................................................................................................................... 78

7.1. Integrity & confidentiality: ....................................................................................................................................... 78

7.2. Outsourcing contract with SLA: ................................................................................................................................ 78

7.3. Time stamped-forensic proof Logs:.......................................................................................................................... 79

7.4. Cost & Difficulty in migration: .................................................................................................................................. 79

8. Conclusion: ................................................................................................................................................................... 81

9. References .................................................................................................................................................................... 82

10. Appendix .................................................................................................................................................................. 84

Questionnaire: .................................................................................................................................................................. 84


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1.Scope and Aim1.1. Scope of the project

The survey conducted gives useful insight into vendors perspective of cloud

based enterprise solution. The secondary survey ensures the feasibility in real

time scenario. The pilot project is based on literature review, online survey

conducted in a span of three months. The analysis is done based on the results

of the surveys. Thus, due to limited sample size and limited resources, the

feasibility of the study is subjected to future trend of the cloud computing.

1.2. Aim of the projectCloud computing is the next big game changing milestone for IT. The cloud

computing technology can be exploited to provide enterprise based solutions

to the organizations. Also, it can automate various business processes like

payroll, human resource management, accounting etc. Thus our project tries

to understand the current market trend and analyze the future trends of the

cloud based enterprise solutions.


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2.AssumptionsFor the purpose of pilot project -

The respondent is aware of the cloud computing technology The respondent has given correct information

3.MethodologyThis part of documentation aims to describe methodologies used for various purposes. Research Methodology Pilot Project Approach3.1. Research Methodology

Primary as well as Secondary research strategies were used.

Primary research methodology of Questionnaire aims to find about various

aspects like Customer choices and Market trends.

In questionnaire design, there are multiple ways to phrase a particular

question. Closed-end, open-end, rating or ranking, single select or multiple

response formats are all valid question types that have a purpose in used

survey. The questionnaire was designed using close ended Questions. Close

Ended question format reduces the amount of cognitive stress placed on therespondent by limiting the choices they have to consider. By its very nature this

format is easier to analyze than open-ended or verbatim responses, thus

limiting the amount of cognitive stress placed on the analyst.

Surveys are about logic and order. Ensuring our surveys flow in a logical order is

one the best practices used. Lead the respondent off with a compelling

introduction that motivates them to participate (was mentioned in mail sent).


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Also, filter questions were used to ensure that only the respondents with the

knowledge of cloud computing responds to the survey.

Questionnaire is in APPENDIX.

Secondary research methodology was utilized to find out Market Needs, and

Trends as well as Growth of cloud computing was understood. Secondary

research methodology includes all other resources which did not directly

contribute but provided an insight and increased understanding of cloud

computing market. Review of various articles, news, blogs and plethora of

knowledge available through books and internet was used.

3.2. Pilot Project ApproachStandard techniques followed for any project implementation ensure the

success of project. Following are techniques used to fulfill the Pilot project.

Work Break down Structure:

The Work Breakdown Structure (WBS) is a tree structure, which shows a

subdivision of effort required to achieve an objective; for example a program,

project, and contract. The WBS may be hardware, product, service, or process

oriented.

A WBS can be developed by starting with the end objective and successively

subdividing it into manageable components in terms of size, duration, and

responsibility which include all steps necessary to achieve the objective.

The Work Breakdown Structure provides a common framework for the natural

development of the overall planning and control of a contract and is the basis

for dividing work into definable increments from which the statement of work

can be developed and technical, schedule, cost, and labor hour reporting can

be established.


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Regular Meetings:

The team meeting was held on weekly basis to ensure the progress and provide

direction to the pilot project. Every meeting was conducted by a team member

whose responsibilities are:

Meeting Agenda Decided. Meeting MOM taken. Meeting take away discussed. Next Meeting Agenda Decided.

Brain Storming:

It is a group creativity technique designed to generate a large number of ideas

for the solution of a problem.

There are four basic rules in brainstorming

Focus on quantity

Withhold criticism Welcome unusual ideas Combine and improve ideas

Process:

Participants who have ideas but were unable to present them areencouraged to write down the ideas and present them later.

The idea collector should number the ideas, so that the chairperson canuse the number to encourage an idea generation.

The idea collector should repeat the idea in the words he or she haswritten verbatim, to confirm that it expresses the meaning intended by

the originator.


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When many participants are having ideas; the one with the mostassociated idea should have priority. This is to encourage elaboration on

previous ideas.

During a brainstorming session, managers and other superiors may bediscouraged from attending, since it may inhibit and reduce the effect of

the four basic rules, especially the generation of unusual ideas

Brain storming technique was used to take decision. This techniqueensured un-biased decision making for all stages in Pilot Project.

Brainstorming is not just about generating ideas for others to evaluateand select. Usually the group will, in its final stage, evaluate the ideas

and selects one as the solution to the problem proposed to the group.

The solution should not require resources or skills the members of thegroup do not have or cannot acquire.

There must be a way to measure progress and success. This was madesure by WBS.

The steps to carry out the solution must be clear to all, and amenable tobeing assigned to the members so that each will have an important role.

There must be a common decision making process to enable acoordinated effort to proceed, and to reassign tasks as the project

unfolds.

There should be evaluations at milestones to decide whether the groupis on track toward a final solution.

There should be incentives to participation so that participants maintaintheir efforts.


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4.Literature Review4.1. Cloud

Cloud Computing has been dominant IT news over the past few years. Thisterm refers to any virtualized resources that are delivered as a service from

data centers over the internet and that are accessible from anywhere in the

world. All data and software applications that were originally located on

desktops and in corporate server rooms are now being swept up and installed

in the cloud or online resources.

A cloud is grouped into Private Cloudor Public Cloudbased on the location of

the data centre where the services are being virtualized, the For private cloud,

the data centre is built internally behind a firewall and not shared outside the

enterprise. Full control is retained by the organization. On the contrary, in

public cloud, the service providers manage the infrastructure and offer public

customers the ability to deploy and consume services over the Internet.

From the type of the services and its architectural point of view, there are

three layers of cloud computing: SaaS, PaaS, and IaaS.

Software as a Service (SaaS): Software as a service- service providerwill give your users the service of using their software, especially any

type of applications software. Example-Google (GOOG), Salesforce.com

(CRM), Net Suite (N)

Platform as a Service (PaaS): Platform as a service-service provideronly provides platform or a stack of solutions for your users. It helps

users saving investment on hardware and software. Google engine and

Force.com provide this type of service.

Infrastructure as a Service (IaaS): Infrastructure as a service- serviceprovider bears all the cost of servers, networking equipment, storage,

and back-ups. You just have to pay to take the computing service. And


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the users build their own application software. Amazon EC2 is a great

example of this type of service.

4.2. Services Provided by various Vendors:Companies/

Services

Microsoft Google

Software-as-Service Business Productivity Online Suit

(BPOS)

There are four different products in

BPOS

Microsoft Exchange Online Microsoft Office

Communications Online

Microsoft SharePoint Online Microsoft Live Meeting

In the Software as a Service

(SaaS) space Google is a

pioneer. Google's services in

this space are listed below.

Google email Google docs Picasa Google Calendar Google Group


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Companies/

Services

Microsoft Google

Platform-as-Service Microsoft Azure

It provides an operating system and

development platform to

access/develop applications on

Microsoft data centers.Microsoft Azure can be divided into

three components:

a. Windows Azure provides aWindows based environment

to access/develop

applications on Microsofts

data centers.

b. SQL Azure provides access toa relational database hostedat Microsofts data centers.

c. .Net Services (also calledFabric) provide access to

applications running on the

cloud.

Google AppEngine

It is a developer platform

hosted on Googles cloud. The

initial support on the

developer platform was forPython programming language

and support for Java is

available now. Google has

detailed documentation for

both Java and Python

development platform.

Deploying the code to a cluster

and running it is managed by

Google. The database availableis a non-relational database.

Database can be accessed with

GQL (Google Query Language).

GQL has SQL like syntax.

Google AppEngine enables

users to build a basic web

application very quickly.

Configuring and setting up an

application is quick and easy.


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Companies/

Services

Amazon Rackspace

Infrastructure-

as-a-Service

Amazon is a pioneer and market leader

in the area of Infrastructure-as-a-

Service. Amazon suite of products in

cloud computing space is calledAmazon web services.

Amazon S3 (Simple Storage Service)

was launched in March 2006. S3

provides data storage using a simple

web interface. Amazon launched S3 to

improve its server utilization and to

initiate another revenue stream. S3 has

been extremely successful due to its

low pricing and high stability. Typicaluses of S3 are web hosting, image

hosting, and as a back-up system. Some

popular sites that use Amazons S3 are

twitter, and slide share. S3FOX provides

a Firefox extension that allows a

Windows explorer like user interface to

upload/download files. CloudBerry also

offers a Freeware with Windows

Explorer style interface to manage

Amazon S3 accounts, files, and buckets.Free hosting reviews are available to

assist with making an informed web

hosting choice.

Amazon SimpleDB is non-relational

database hosted by Amazon. It was

launched in December 2007. The

database integrates well with other

Amazon AWS tools. Amazon SimpleDB

provides web service for runningqueries on structured data in real time.

Relation databases like Oracle and db2

are expensive. SimpleDB provides an

alternative database platform.

SimpleDB uses a basic string-based

query language. The syntax is

straightforward but different from SQL.

SimpleDB does not support some of the

standard SQL features like joins, full

text search, or sorting query results. No

upfront investment is required. The

Rackspace, formerly known as

Mosso, is a strong vendor in the

Infrastructure-as-a-Service space.

According to Rackspace, 40% ofFortune 100 companies host with

Rackspace.

The main products that Rackspace

offers are -

Cloud Drive offers file storage

similar to Amazon's S3. Rackspace.

A typical use of Storage-as-a-

Service is for taking online backup.

Rackspace Server Backup is a

product similar to Cloud Drive. It

allows Windows or Linux based

servers to be backed up. Rackspace

Server Backup encrypts,

compresses, and transfers data as

per defined calendar. Cloud Sites is

a web site hosting product that

allows web applications to scaleacross multiple servers based upon

the demand.

Cloud Servers provide complete

access to a server. The offering is

similar to Amazons EC2. The

number of server usage can be

changed over time and pricing is

done accordingly. Users get root

access to the Linux Servers.


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database is scalable and is accessible

through web services.

Amazon Elastic Compute Cloud (EC2)

provides computing servers on rent, a

kind of dedicated server hosting.

EC2 is the Amazon's core offering in the

Infrastructure-as-a-Service space. EC2 is

available with a web services interface.

The service is resizable, in the sense

that you can increase/decrease

computing capacity depending upon

your needs.

Amazon offers three types of virtualservers:

a. Small Instance (Default) 1.7 GBof memory and 160 GB of

instance storage.

b. Large Instance 7.5 GB ofmemory and 850 GB of instance

storage

c. Extra Large Instance 15 GB ofmemory and 1690 GB ofinstance storage.

There are more variants if you have

high-CPU or high-memory

requirements.

Operating Systems supported include

Windows Server 2003, Linux and

OpenSolaris. Also supported are

databases like Oracle 11g, MySQL andDB2, Application servers like Weblogic,

WebSphere.

Amazon also provides a Firefox

extension called Elasticfox that provides

a free web interface to manage EC2

servers.


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4.3. Generic Cloud based enterprise solution services Supply Chain Management CRM/Sales Management Discrete Production Process production Tool Management Maintenance Service Management Cost Planning and Control Financial Management Data Centre Application development Extendibility, Report Customization, Integration, Business Intelligence, Mobile

Computing, Security features

4.4. Pricing Strategy:

ERP Pricing Strategy:

Software ERP Modules (Finance, Sales Management) Licenses Operating System

RDBMS


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Hardware Server Network

Other Costs Technical implementation Back up (Disaster recovery)

Cloud Pricing Strategy:

Cloud computing has been a dominant IT news item over the past few years. The

companies with the help of cloud computing have found a way to increase capacity or

add capabilities on the fly without investing in new infrastructure, training new

personnel or licensing new software and pay for whatever they needed. According to

a survey by Gartner, the Software as a Service (SaaS) market is expected to grow to

18% by 2013. Cloud computing is an attractive proposition for SMEs. The SMEs can

make most of the technology available today at lower costs and lower risks. The

upfront investment is low, they dont need to invest in software / hardware, licensing

and renewal costs are kept to a minimum, total cost of ownership is reduced and they

only pay for what they use.

The three layers of cloud computing namely Saas, Paas and Iaas provide various

features to the organizations implementing cloud. The following describes the

features of the same:

Software as a service (SAAS): Cloud application services deliver software as aservice over the Internet, eliminating the need to install and run the application

on the customer's own computers and simplifying maintenance and support. In

the case of SaaS, the customers do not buy a license but rent the software.

Infrastructure as a service (IAAS): Cloud infrastructure services deliverscomputer infrastructure - typically a platform virtualization environment - as a

service. Rather than purchasing servers, software, data-center space or

network equipment, clients instead buy those resources as a fully outsourced

service. Suppliers typically bill such services on a utility computing basis and


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amount of resources consumed. Thus, the cost will typically reflect the level of

activity.

Platform as a Service (PAAS): Cloud platform services deliver a computingplatform or solution stack as a service, often consuming cloud infrastructure

and sustaining cloud applications. It facilitates deployment of applications

without the cost and complexity of buying and managing the underlying

hardware and software layers.

The basic pricing model for cloud based architecture is as follows:

Subscription-based: Customers are charged for the same fixed-price for everycertain time of period such monthly, quarterly, or annually for independentusage

SoftSummit survey (2008) predicted that the overall software vendors will

continue to offer this subscription model with an estimated growth of

approximately 10% by 2010.

Usage-based: Customers are charged based on their usage volume fromseveral measurable metrics e.g. amount of data transferred, the time spent by

customers in using the software, number of registered users accessing thesoftware, number of completed transactions while using the solution. This is

the reason why SaaS is also typical with pay-per-use basis.

Advertisement model: Customers pay no costs for using the solution while thevendors earn the revenue from advertisements of third parties that are

embedded on their web pages. For e.g. Google or Yahoo search engine and

Google Apps like Gmail etc.

Poor Billing System:

A poor billing and metering system may cause the vendors to lose their

customers, as the customers might feel cheated by the vendors. The billing and

metering system becomes important for the vendors to track their customers

usage and might also be useful for them to expand the potential of their

customer base, which is useful input for their future marketing strategy. Hence,

having an accurate metering and billing system that can handle the mechanism

and report overall usage is crucial.


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Service Level Agreements (SLA):

One of the key motivators for moving to cloud is the reduction of business risk.

This is identified by the service level agreement (SLA), which is a contract

between a vendor and its users which specifies the level of service that is

expected during its period. They can specify bandwidth availability, responsetimes for routine and ad hoc queries and response time for problem resolution

such as network down and machine failure. SLAs can be very general or

extremely detailed, including the steps to take in the event of a failure. For

example, if the problem persists after 30 minutes, a supervisor will be notified;

and when the problem stays after one hour, the account representative will be

contacted.

Price comparison between various Cloud Vendors:

Companies/

Parameters

Amazon Google Microsoft Rackspace

Billing terms Billed monthly

for compute

resources

consumed

Free quota for

ninety days and

then following a

price budget

Subscriptions

and pay-as-you-

go

Pay-as-you-

grow

Storagecharge

(IAAS)

Amazon S3:$0.150 per GB

permonth

Not Applicable Not Applicable $0.15 per GBper month

Data

transfer

charge

(IAAS)

Amazon S3:

$0.1 per GB

Not Applicable Not Applicable $0.22/GB

Servers

(IAAS)

1.7 GB/160GB

of at$0.085/hour

Not Applicable Not Applicable 256 MB/10GB

at$0.015/hour

Services Not

Applicable

Gmail, Google

docs, Picasa are

free for individual

users.

Organization using

Google docs and

GMAIL pay $50 per

Microsoft

Exchange Online

is priced at

$5/user/ month

Business

productivity

online suite at

Not

Applicable


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user per year for

using advanced

features.

$10/ user/

month

Operating

System anddevelopmen

t Platform

Not

Applicable

Google AppEngine

at $8/user/month

Microsoft Azure

$0.12cents/hour for

computing and

$0.15

cents/GB/month

for storage

Not

Applicable


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5.Survey and Analysis:5.1. Profiling :

Approx 24 respondents Aimed :

Professional Contacts Academia Contacts (Alumni & Professor contacts) Internet ( Facebook, Forums & Sites)

Received: Professional Responses

Cloud Architects Project Managers/Team Members(working on Cloud projects IBM/Zenith)

Academia Responses Cloud Enthusiasts

Internet Cloud Enthusiasts Director Cloud Writers/Vendors Architect

Questionnaire methodology was adopted to understand the market essence and likely

forward strategy of cloud providers. The survey was intended for audience who has real

knowledge of cloud deployment and one who are driving force for cloud services in their

area of influence. Survey had 10 questions which had 18 responses and following trends

were seen.

For Questionnaires, please refer to Appendix A.


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5.2. Survey Questions and ResultsQuestion1. Layer of the cloud which is most preferred by the client:

Results - Shows that most availed and preferred service is Software on cloud. Generic

reason for such response could be the ease of use and availability of such in market.

Also, the generic issues of security, interoperability etc is seen more in other

services.50% of respondents are already on SAAS, with IAAS with 28% followed by

PAAS at a close percentage of 22%.

28%

22%

50%

IAAS

PAAS

SAAS


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Question2. IT services/Applications supporting business processes which are most

likely to be on Cloud

Ranking Business Process Response

1 Accounting 28%

2 CRM/Sales Management 33%

3 Payroll 39%

4 Data Centre services 28%

5 Application development 33%

6 Project management 44%

7 Procurements / Purchasing 44%

8 Human Resources 33%


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Results -Cloud is seen as a place for other than core functionalities to be outsourced.

This question attempts to catch the key areas which are part of most of the industries

and can be put in cloud. The trend shows that procurement/purchasing, project

management are most likely to be on cloud services. Next cloud based on payroll,

CRM/Sales Management and accounting and data centre services being next.

PayrollHuman

Resources

Procureme

nts /

Purchasing

CRM /

Sales

Managem

ent

Accountin

g / Finance

Project

Managem

ent

Applicatio

n

Developm

ent

Data

Center

Services

8 2 6 4 2 2 2 1 1

7 0 3 8 1 1 1 3 1

6 1 1 1 1 1 8 2 2

5 1 1 1 3 2 2 6 2

4 3 3 2 2 1 0 2 5

3 7 1 1 2 3 1 1 1

2 1 2 0 6 3 1 2 3

1 3 1 1 1 5 3 1 3

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%


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Question3. Customers would prefer to purchase separate modules of an enterprise

solution from multiple cloud service providers

Results - Focus of this survey is CBES, intention of respondents is not to move to CBES

as a service and reasons could be the integration of various parts of enterprise on

cloud.

Q4. Clients reason to use Cloud based enterprise Solution

Ranking Reasons Response

1 Avoiding capital expenditure, Controlling

marginal profit and costs

33%

2 Flexibility and Scalability 33%

3 Absence of IT expertise 28%

4 Adding redundancy to increase availability

and resilience

33%

5 Optimization of IT infrastructure 39%

6 Improved computing capacity 28%

7 Business Continuity and Disaster Recovery 39%

44%

56%

Yes

No


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capabilities

8 Assessing feasibility of a new business

model

39%

Results - The responses received show that major driving force to move into cloud is

avoiding IT related capex. Flexibility, scalability and absence of IT expertise surprisingly

is also a reason. Capex saving is always a priority whereas also easy availability of best of

breed software on cloud is also a reason. Cloud provides all users with equal

opportunity to use best IT environment available that too at a lower cost.

Absence of

IT

expertise

Avoiding

capital

expenditur

e,Controlli

ng

marginal

profit and

costs

Flexibility

and

Scalability

Improved

computing

capacity

Optimizati

on of IT

infrastruct

ure

Assessing

feasibility

of a new

business

model

Business

Continuity

and

Disaster

Recovery

capabilities

Adding

redundanc

y to

increase

availability

and

resilience

8 1 1 1 2 2 7 1 2

7 1 1 1 0 3 2 7 3

6 2 1 2 5 0 1 4 2

5 1 2 3 2 7 1 0 2

4 3 1 3 3 1 0 2 6

3 5 4 1 1 2 3 1 1

2 2 3 6 3 1 1 1 1

1 3 6 1 1 2 3 2 0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


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Question5. Solution you see as the most suitable for a Small and Medium Enterprise

Client, according to this possible Cloud Computing taxonomy

Results - IT scenarios are changing because of cloud presence. There are various

flavors of cloud which a user can avail, Partner, Private, Public ways. Most preferred

way of users in cloud is private cloud. As recently cloud is an issue for all users and is

varied about it. Squaring the previous question which IT expertise and capex saving

were preferred, users should ideally move to Public cloud. Future trend to be noticed

is that the cloud industry has to mature into public cloud to suffice to previous

answers of users i.e. the driving forces. Inspite of 4 years of exponential growth, cloud

as an industry has to mature into comfortable positioning into public cloud. Next four

years, of cloud emergence should be able to move to partner and then public as in

when standards and maturity is seen.

17%

17%

44%

22%

A federation of clouds

provided by various

sources (partner,

private, etc)Partner Cloud (owned

and managed by a

trusted partner)

Public Cloud (owned

and managed by an

unrelated business)

Private Cloud (owned

and managed

internally)


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Question6. Main concerns of the clients towards using cloud computing

Ranking Reason Response

1 Loss of control of services and/or data 28%

2 Performance issues 33%

3 Availability of services and/or data 39%

4 Intra-clouds (vendor lock-in) migration 28%

5 Cost and difficulty of migration to the cloud 33%

6

Lack of liability of providers in case of security

incidents 44%

7 Confidentiality of corporate data 44%

8 Integrity of services and/or data 33%

Results - There are various scenarios which are applicable to moving of users into

cloud which cater to different problems/concerns of cloud. This question addresses

the issues that a client faces. Survey shows that clients are most bothered about

safety of their data and performance as an issue. Previous cases of loses of data seen

in EC2 and such situation trigger the concern.


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Question7. Features of SAAS services provided by your organization for cloud based

enterprise solution

This question focuses on vendor perspective of features in SAAS, trend shows that

scalability, pricing and easy web access is main focus of companies in SAAS.

0

2

4

6

8

10

12

14

16

18

20

Features of SAAS

Num

berofRespondents

Multi-Tenant

Web Accessed via web browser

Scalable

Pay per Consumption

Auto-up gradation of solution


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Question8. Features of PAAS services provided by your organization for cloud based

enterprise solution

This question shows that policies, plug and play services and standard features of

platform are also expected from cloud PAAS. Vendors are trying to provide easyplatform in cloud. Also, moving into cloud PAAS will see features of PAAS to change as

last Questions show that vendor is focusing now more on getting clients into cloud

rather than sustaining them.

0

2

4

6

8

10

12

14Ability to configure policies for working of

runtime framework

Compatibility between modules developed on

PAAS and local platform

Integration of modules developed across

multiple PAAS

Generic facilities such as source code control,application testing, staging, rollout and roll-back

Easy plug and play platform

NumberofResponses

Features of PAAS


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Question9. Features of IAAS services provided by your organization for cloud based

enterprise solution

This question focuses on features of IAAS, trends show that vendors are providing

much required backup and controlling power to client. IAAS being a niche area of all

three IAAS, PASS and SAAS. Trend shows that generic features are expected of IAAS.

Out of box feature are not intended of recent IAAS players.

02

4

6

8

10

12

14

16

18

20

Features of IAAS

NumberofRespondents

Backups

Load Balancing

Compatibility between multiple IAAS

vendors

Maximum level of control of IAAS by

customer

Easy to use without knowing the

underlying technology

Smooth transition between local and

cloud infrastructure


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Question10. Average/estimated time frame taken to shift the entire enterprise to

cloud

CBES prospects are incomplete without knowing the time frame for moving ofcomplete enterprise into cloud. This question intends to know the big picture of CBES

in company standpoint. IT industry scenario as cloud consumer is ready to change and

also other IT using companies. Question deals with industries which already have

cloud transition in place. 1000 employees are considered to move into

cloud at a very later stage.

0

2

4

6

8

10

12

14

< 100 employees 100-500 employees 500-1000 employees > 1000 employees

Less then a

year

1-2 Years

> 2 Years


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6.Scope of development in Small and Medium Business(SMB)Market:

6.1. Recent News in SMB market Siemens launches Cloud based unified communication solution for SMB

02/03/2011

TCS bets big on iON cloud for SMBs (2011) Series of studies conducted by AMI partners show Cloud-based solutions and RMIT

services to lead APAC SMB ICT spending growth in 2011 (08/02/2011)

Iron Mountain Brings Enterprise-Proven, Budget-Friendly, Cloud-Based Backup toSMBs

Zensar partners with Microsoft to launch Cloud based ERP solution for SMEs. Plansto transform 2000 SMEs through the hosted platform by Dec 2011

6.2. Survey conducted for SMB market by PeoplePerHour.com PeoplePerHour.com asked 1,300 small and medium-sized enterprises (SMEs)

about the technology and also found that 43 per cent are unsure of what cloud

computing is.

Around three-quarters of businesses do not currently use cloud computing models Major roadblock is the Infrastructure

6.3. Survey conducted for SMB market by IBM Midsize firms are increasing their investment in IT, striking a balance between

solutions that drive short term cost savings and those that enable revenue growth

and stronger customer relationships.

Most of the priorities can be solved by cloud solution


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As we can see, Major critical business priority among SMB is cost reduction

which can be achieved through cloud computing.

In survey on major IT implementations, area of cloud computing (66%),

virtualization (67%) and SAAS (65%) still have 50% projects which are only

planned and not implemented which mean it has lot of scope for development.


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As we can see in the survey, Cost reduction has been cited as the major reason

for companies shifting to cloud. The same result is also reflected by survey

conducted by us.


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7.Cloud Concerns and SolutionsThis section of report presents solutions that a vendor should provide to avoid concerns

of clients. Vendor as well as client can use this information presented to increase the

integrity of cloud services.

7.1. Integrity & confidentiality: Adequate & well communicated policies and practices of provider and

organization.

The security and privacy policies and practices of the cloud provider might not

be adequate or compatible with those of the organization. This can result in

undetected intrusions or violations due to insufficient auditing and monitoringpolicies by the cloud provider; lack of sufficient data and configuration integrity

due to a mismatch between the organization's and the cloud provider's policies

for separation of duty (i.e., clear assignment of roles and responsibilities) or

redundancy (i.e., having sufficient checks and balances to ensure an operation

is done consistently and correctly); and loss of privacy due to the cloud

provider handling sensitive information less rigorously than the organization's

policy dictates

7.2. Outsourcing contract with SLA:SLA Metrics should be defined for smooth transition of complete lifecycle of

cloud outsourcing. Industry accepted and used templates are available which

should be utilized for Cloud outsourcing.

Some Qs to be answered by SLAs for cloud are-

What if provider looses data? Who can see my information? How to handle data co-location? How to handle data-corruption? How easy is it to migrate data to another provider? Are we relying too much on SLAs?


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7.3. Time stamped-forensic proof Logs:Changing the logs is the easiest way for a cloud provider to cover its tracks in

case of an accident or misuse of power occurs. It is also the easiest way for

malicious software and users to do the same. To properly protect against thisrisk, the system logs and application logs must be signed in a way such that

there is undeniable, mathematical proof that they have not changed since the

system or application created them. Simple data hashing cannot address this

problem as the logs can be backdated. A time-based data signature is required

if one is to achieve forensic-quality logs. Generic encryption and security

concerns have to be addressed in CBES more effectively for maintaining

integrity.

CSA and other such organizations keen in establishing security standards.Cloud Service provider (CSP) should address

1. Viability Can CSP provide/meet organizations service levels for future?2. Transparency Certifications/Compliances like HIPPA for patient details

should provide reasonable transparency to the process.

3. Compliance Regulations are present in platforms like CSA (Cloud securityalliance) many more should be checked.

4. Risk Analysis and management Data flow, information cycle and genericdata risk handling should be in place.

Architecture and model designBase design of CSP should enable the secure transaction from cloud as well as

inside cloud. Details of model of CSP can ensure the data flow and interaction

standards for organization.

7.4. Cost & Difficulty in migration: Use of enterprise-class Internet application.

Many web 2.0 enabled applications are present which enable real time

movement of data into Cloud OS with sync from local OS like XEN and VMWare.

Testing availability of cloud eases difficulty of migration.In a typical enterprise-to-cloud migration process, a corporation will identifycandidate components based on drivers such business continuity, scalability or


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lower overall cost of ownership. The selection of cloud vendor then requires

moving service components such as database, application servers, ESBs, and

identity stores to the cloud environment. Once a full reference system is

deployed in the cloud, the behavior of the enterprise application interacting

with the cloud-based components has to be tested. Testing a reference systemdeployed in the cloud with a CSP enables an enterprise to evaluate the class of

servers, memory, CPU and storage behavior in a multi-tenant environment.

Payoff of between migration and usage to be known.Strategic move to cloud should be backed by financial analysis as other

corporate efforts. For e.g

For U.S. Navy,

Generates over 300 petabytes of information per day. >1000 petabytes of information storage requirement for forensic

operations.

Backblaze a cloud storage hardware provider reduced the cost from$826,000/petabytes (dells price) to $117,000/petabytes (Backblazes

price).

The 2010 cost of 300 petabytes is $35 million, or 12 cents pergigabyte. This is much less than the total costs of the legacy disk filesthat are in place for thousands of Navy servers. Huge savings are

therefore available immediately.

Cloud simulation and migration modelling.Cloud simulation and migration modelling provides a more efficient and nimble

alterative to building a full cloud-based reference infrastructure for evaluating

enterprise-to-cloud migration risks. Through enterprise-to-cloud migration

simulation, organizations can simulate services in the cloud prior toimplementation. Simulation enables enterprises to benefit by not having to

touch production code while eliminating the substantial time, capital and IT

staff resource expenses related to creating a distinct cloud test environment.

Simulation in hand with matrices like spin-up times check geographic

latency, outages application error stages, what-if study for various operational

scenarios ease the migration difficulties and also increase reliability.


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8.Conclusion: SAAS is the most preferred solution by clients Avoiding Capex, Flexibility, and absence of IT expertise forms the major reason for

shift to cloud.

Loss of services/data, Availability of services, Performance Issues form the majorconcern of client with respect to cloud computing.

SMB are moving towards cloud. Concerns need to be addressed with 3 way strategies: Client side, Vendor side and

Software provider side.


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9.Referenceshttp://www.thehindu.com/sci-tech/technology/article933554.ece?service=mobile

http://blog.dt.org/index.php/2009/02/security-for-cloud-based-enterprise-applications/

http://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns836/ns976/white_p

aper_c11-543729.html

http://www.cloudtweaks.com/2010/02/what-are-the-different-types-of-cloud-computing/

http://www.cloudtweaks.com/2010/03/mini-glossary-cloud-computing-terms-you-should-

know/

http://www.cloudtweaks.com/2010/03/understanding-cloud-and-devops-part-1-the-cloud/

http://it.tmcnet.com/topics/it/articles/149092-cloud-computing-wont-boost-productivity-

much-study-suggests.htm

http://informationweek.in/Cloud_Computing/11-02-

28/Infosys_converts_cloud_threat_into_opportunity.aspx

http://informationweek.in/Cloud_Computing/11-02-16/TCS_does_a_Nano_launches_cloud-based_iON_for_SMBs.aspx

http://itmanagement.earthweb.com/features/article.php/3927551/Cloud-Computings-

Enterprise-Challenges-Public-Private-Hybrid

http://blogs.forbes.com/microsoft/2011/03/08/roi-of-the-cloud-part-2-iaas/

http://www.cloudtweaks.com/2011/03/vmware-delivers-new-operations-model-for-cloud-

computing-environments/

http://www.cfodailynews.com/cfos-intrigued-confused-about-cloud-computing/

http://www.hostway.co.uk/news/virtualisation---the-cloud/three-quarters-of-smes-do-not-

use-cloud-computing-survey-reveals-800429238.html

http://www.channelweb.co.uk/crn-uk/news/2029027/parallels-smbs-cloud-consideration

http://www.channelprosmb.com/article/23386/Storage-Guardian-Introduces-Pay-As-You-

Compute-Model-in-the-Cloud/


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http://www.processor.com/editorial/article.asp?article=articles/P3303/13p03/13p03.asp&gui

d=

http://www.crn.com/news/cloud/229100045/cloud-computing-in-midmarket-smb-sectors-

creates-big-opportunties.htm;jsessionid=5fK9GN0LM7adSyUhPG0TNQ**.ecappj03

http://www.zdnetasia.com/reliability-remains-asia-s-smb-cloud-worry-62205876.htm

http://www.eweek.com/c/a/IT-Infrastructure/IBM-Reports-Most-SMBs-Upping-Their-IT-

Spending-for-2011-479712/

http://www.channelweb.co.uk/crn-uk/news/2029027/parallels-smbs-cloud-consideration

http://www.itbusinessedge.com/cm/blogs/vizard/degrees-of-hybrid-cloud-

computing/?cs=45724

http://www.itbusinessedge.com/slideshows/show.aspx?c=84778&slide=2


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10. AppendixQuestionnaire:


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Documents

Final Pilot Project Report-cloud