Knowledge Management Series. Cloud Computing

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1 Knowledge Management Series Cloud Computing

2 Cloud Computing G BALU ASSOCIATES Knowledge Management Series ISSUE-3 VOL 2 October/ 2012 CLOUD COMPUTING The Business Solution Headway Trends in Cloud Computing Business Opportunity Enabling Growth Ambitions and Green Economy Sunny Outlook for Cloud Computing Editorial Cloud Computing! The world is embracing advanced technologies in various fields. Cloud Computing has continued to grow exponentially and set trends; indeed a breakthrough as compared to previous year. Cloud technology helps the businesses to grow by providing the functional depth of a large-scale business management solution. Giant and small companies can efficiently leverage for cloud computing services and reap bountifully from the service. Chiefly, cloud security is at the forefront in 2012 and it helps to prevent security breaches more efficiently. This publication brings out the latest development taking place in the Indian market, trends & business opportunities all over the world. Raja Gopalan.B Partner Risk Advisory & Compliance Services Practice rajagopalan@gbaca.in Headway With 2012 well underway, a few new trends in cloud computing have already been identified. At all levels of implementation, cloud hosting continues to dominate the industry. More than mere storage space, these hosted solutions now offer software-as-a-service (SaaS) and even platform-as-a-service (PaaS) functionality for business. As more business is accomplished using cloud computing technology, many companies are developing a higher comfort level with these advanced systems and are willing to entrust more of their operations to professional cloud computing providers. The next revolution in IT and the big switch in IT is shifting the paradigm of classical computing to cloud environment. In Classical computing buying and owning the system software, hardware, application software to meet the peak needs. In Cloud computing environment the storage of data and faster evaluation of CPU utilization and provides subscription of the data storage and pay per use of service as per the quality of services.

3 Page 3 Trend in Cloud Computing Here are the Seven hottest trends in Cloud Computing for 2012 : Optimizing the Cloud: With storage space at a premium in the cloud environment, the need to optimize, compress and reduce the amount of data stored on the cloud will become increasingly important from a cost standpoint. Web hosting providers will continue to expand their cloud services to include these new trends and better serve the needs of their customers. Overall, this year is expected to see increased adoption of Cloud Computing services and an added focus on security, optimization and disaster recovery plans. These changes should make cloud computing an even more appealing choice for modern businesses. Disaster Recovery Services: Many web hosting providers are already offering disaster recovery services in the cloud environment. These new services promise faster recovery and reduced disruptions to ongoing operations for companies affected by major environmental events. Many companies will opt for these services and the relatively cheap insurance they offer against prolonged service interruptions caused by tornadoes, earthquakes, floods and hurricanes. Security: Security is a perennial issue in the cloud computing industry and will continue to receive in-depth scrutiny in Expect to see new methods for encrypting logins, preventing unauthorized access and increasing the overall level of security for information stored on the cloud. A number of newer companies have begun offering expert consultations and security services directly to cloud hosting providers, allowing them to offer a higher degree of security for their corporate clients. Super-sizing the cloud: Enterprise resource planning (ERP) systems are one of the fastest growing segments in the cloud computing industry. These all-in-one business solutions provide a full line of services for companies including sales management, inventory tracking, accounting and customer service. By administering these systems in the cloud environment, companies can enjoy unparalleled access to their business infrastructure from anywhere with an Internet connection. This convenient access is one of the strongest selling points for cloud ERP implementations and is expected to lead to further adoptions in Packing Pricing: Cloud hosting providers will continue to offer a la carte pricing to allow companies to purchase only the level of service they need, but most web hosting providers will also offer packages incorporating the most popular cloud computing services. Scheduled backups and upgrades, virtual private server arrangements and full-scale infrastructure environments will be available in custom packages designed to suit the needs of business. These customized cloud environments will provide even more choices and more scalability for corporate customers.

4 Page 4 Mobile access: The ability to manage cloud-hosted solutions using tablet computers, smart phones and other mobile devices will continue to attract attention in the coming year. Health care providers were among the first adopters of this new technology, as mobile cloud computing offers unmatched convenience in accessing electronic health record management systems in the hospital setting. Many experts believe that 2012 may be the year that this mobile accessibility goes wide in the industry and becomes an integral and expected part of the cloud computing package. Programming platforms: Programming platforms are likely to break through to a wider audience in These advanced integrated systems provide a fully functional environment for programmers in a wide range of software design fields. Rather than simply running applications and providing storage space, these cloud solutions offer programmers a safe and functional sandbox for testing their designs and fine-tuning applications for a wide range of operating systems. The increased availability of cloud virtual private server arrangements will make these solutions even more versatile by providing multiple operating system environments for testing and implementation. Developing Countries in Cloud Computing Developed countries account for most of the supply and consumption of cloud computing services, and have been at the forefront of international policymaking on cross-border data flows. Yet governments and private parties in many developing countries are eager to expand those countries role as suppliers and consumers of cloud computing services. They see cloud computing and other IT service industries as potential sources of high-paying jobs and drivers of economic growth both directly, through the success of firms providing IT services, and indirectly, via the spillover benefits to other industries of increased access to advanced technology. Some countries may also hope to reduce dependence on Foreign Service providers for strategic reasons. In a country where diversity is ingrained in all aspects of economy, this is one characteristic that stands out. Cloud computing is one of such technologies that fit into the pulse of the Indian culture. Cloud computing technology enables companies to convert capital expenditure related into operational expenditure thereby deriving absolute value for money. Through cloud environment, companies can focus on their business and avoid the added cost and complexity of an IT infrastructure and staff without compromising on business deliverables. Cloud solutions are modified to enable processes outsourcing by driving sustainable cost savings, comprehensive contract management, provide superior supplier management, and help ensure rapid time to value. Sales professionals in India, who are perpetually on the go, covering huge Indian topography and beating the traffic and congestion, can now collaborate on business opportunities through cloud based Customer Relationship Management (CRM). This cloud application helps them with real-time information updates, and a new user experience. Add a mobile phone to these capabilities and organisation will have a truly mobile workforce. With the help of cloud application, it manages business travel, from planning to expenses reimbursements.

5 Page 5 Business Opportunities Cloud Computing! The world is embracing advanced technologies in various fields. Cloud Computing has continued to grow exponentially and the trends witnessed in the past years, are quite different from the modern ones. Cloud Computing trends in 2012 are indeed a breakthrough. From 2011, mainstream continues and is being witnessed in 2012 in many businesses. There is a great movement towards mainstreaming because popular services from major consumer players have been validated. The importance of having a Cloud Computing strategy is becoming more obvious on a daily basis, as it moves from an interesting to a must have technology for a lot of companies, with significant proportions actively pursuing a Cloud Computing strategy. This growth is based on real business opportunities and the significant potential that the Cloud Computing business and delivery model presents. Cloud Computing is not just about cost. It can provide a platform for a business to achieve its ambitions of having an inclusive IT system that covers the entire supply chain and its customers, enabling and generating business growth more effectively. Large enterprises have invested millions of dollars in these systems, but Cloud Computing offers much of that capability at a fraction of the price and to a much wider audience, therefore also supporting innovative ideas for new Internet services, such as full Cloud web security services that free smaller companies from the need to purchase security software. A massive Expansion In Cloud Adoption A massive expansion in cloud adoption in 2012 in various markets across different parts of the globe has also been witnessed and is set to grow enormously in the future. Regional businesses especially in Asian markets have witnessed a massive expansion to cloud adoption. This is attributed to wealthy experience in IT services and the urge to gain global market shares by different players. Asia has a large population density and the largest broadband subscriptions. UK and US also shown enormous support and ability to embrace cloud based computing. Today, North America and parts of Western Europe happens to share landline broadband and mobile services is seen as a great year of cloud computing. This is because consumers are competing for the best cloud based storage options in the market. There have also been enhanced or rather competitive cloud storage platforms, some of the leading providers are Amazon, Apple and Microsoft which are offering quality storage platforms that have led to the growth of cloud computing. However, clients ought to choose the best depending on the size of their business when reselling or consuming cloud computing services.

6 Page 6 Enabling Growth Ambitions and Green Economy Indian economy is increasingly going global and witnessing a healthy co-existence of large as well as small and medium-sized enterprises striving for growth. While on one hand the financial muscle of the large organizations deepens their penetration in the demand pyramid, on the other, it s the innovation muscle that helps nimble, agile and aggressive SMB companies to cater to the upper-end of the demand pyramid. This flux in the market has created a strong competition and has resulted in the need for solutions that are quick to deploy, low on Total Cost on Ownership (TCO) and high on Return on Investment (ROI). Cloud computing is an excellent example of technology that fits this requirement. Small businesses and midsize companies need to ensure growth while conducting business in a smart, lean, and cost-effective way. This means streamlining customer-facing business processes while scaling them across organizational and international boundaries. Cloud technology helps small businesses and midsize companies by providing the functional depth of a large-scale business management solution. With the growing economy and companies growing organically and inorganically, the need to comply with regulations and ensure hygiene is becoming a top priority for any organisation. The speed of growth is such that Chief Information officers need a system to work immediately and something that can grow in pace with the company s new ventures. Many companies are adopting cloud solution as a subsidiary enterprise resource planning (ERP) system. The powerful solution meets functional and industry requirements, provides deep integration with ERP used at headquarters and is easily deployable, simpler to manage and easier to change. Yet it also satisfies corporate requirements, which typically include regulatory transparency, operational metrics visibility, use of centralized business functions, and key data rollup. With growth and industrialization, India is increasingly becoming susceptible to environmental impacts. It is the responsibility of corporate India to safeguard the future of its next generations. Governments have slowly and steadily started laying rules for environmental compliance. It is critical for a global organization to accurately measure, mitigate, and monitor greenhouse gas emissions and other environmental impacts, such as solid waste and water. In the cloud, there are applications that can cost-effectively assess your total carbon emissions inventory across all scopes, provide transparency into your sustainability initiatives, establish a comprehensive inventory of carbon emissions and achieve cost savings by identifying opportunities for energy, waste, and emissions reductions within and outside operational boundaries. Becoming a green enterprise is the only sustainable direction for a company if it wants to succeed. India is, therefore, uniquely suited to really take advantage of cloud computing to achieve its goals for the future.

7 Page 7 Sunny Outlook For Cloud Computing The Government should take a holistic view of this sector and formulate policies to safeguard its interests by enabling a level playing field. The Government has been mulling ways to deliver e-governance services through cloud-based IT services. This has opened up a whole new market for IT players. As cloud projects can enable quick and easy delivery of IT resources, it can help accelerate growth in the SME segment and generate employment. A carefully deliberated cloud strategy is a must to ensure the country accrues maximum benefits while minimizing risks. In essence, the Government should play a pivotal role in helping Indian entities take advantage of the cloud revolution for economic growth. One of the biggest challenges posed by the cloud s fluid architecture is data security, which calls for amendments in current laws to prescribe security measures. Another key factor for the success of cloud-based products and services is the availability, location, security and quality of data centres. This is a key requirement for projecting our capabilities to global clients. To develop the sector further, cloud should be categorized as infrastructure similar to telecom and education. Infrastructure development should become a key government initiative that will provide the land, power, technology and human resources to establish India as a data management hub. Currently, India lags developed countries in data centres. The economic benefits of hosting data management centres are huge, and the cloud policy should provide the vision for it. It should also take into account data sovereignty and governance issues, and study global practices in resolving jurisdictional conflicts. It should look into the changes needed in an organization's security practices to facilitate periodic review/ audit of critical cloud infrastructure. Last but not the least, the Government should focus on accelerating the adoption of cloud computing in India, especially for e-governance projects, by providing tax breaks or other incentives to cloud players. This will enable Indian companies to develop an effective cloud ecosystem and prove our credentials to the world.

8 Page 8 G.BALU ASSOCIATES, an Indian Audit & Assurance Firm by nature, is continuously working on these kinds of publications in all respective core areas and ensure that these are personalized to its clients. We shall be glad to convey that these alerts and developments taking place globally, either past or present, find place in our website in the category of archives or new as the case may be. We would also love to hear from you any comments or suggestions, which we strongly believe as worthy inputs. As always, Knowledge sharing has been our Success Mantra, we are pleased to share the knowledge about all aspects which are pertinent to the business of the company. Knowledge Management Team No.4A,Venketesa Agraharam Road, Mylapore, Chennai Tamil Nadu, INDIA Phone:+91(44) (44) Website: Knowledge@gbaca.in DISCLAIMER These knowledge management series are only meant for private circulation and may only be considered as a reference for issues related to which these topics address to and for no other purpose. The information is taken from sources believed to be reliable. It does not provide legal opinions, nor does it contain or purport to contain any specific legal, compliance, accounting, tax or any other advice under any other law for the time being in force in and outside India on the topics covered. All best practices, templates, specimens, sample clauses, circulars from various statutory bodies in and outside India, agreements and other documents are provided strictly for reference and information purposes only, and do not constitute legal, compliance, accounting, tax or any other advice on the matters covered therein. G Balu Associates cannot accept any responsibility for any loss whatsoever kind including loss or revenue, anticipated savings or profits, loss of goodwill or for any indirect or consequential loss whatsoever to any person using these documents, or acting or refraining from action as a result of the material in this publication. It is further understood that recipients of these series of articles will obtain their own legal and other relevant professional advice, in accordance with their specific interests, needs, and circumstances.