A special Task Report on The market opportunity of Tata Communications cloud computing services among small & medium

size business units in Bangaluru

By

Sainath biradar Registration No: 11SKCMA003 Under the Guidance of

Prof. Ramesh Ayyar

EMPOWERING MINDS

Acharya Institute of Management & Sciences

1st Cross, 1st Stage, Peenya Industrial Area Bangalore 560 058 2011 - 2013

DECLARATION

I,Sainath biradar hereby declare that this special task Report titled The market opportunity of Tata Communications cloud computing services among small & medium size business units in Bangaluru is based on the original study conducted by me under the guidance of Prof.Ramesh Ayyar. This report has not been submitted earlier for the award of any other degree / diploma by Bangalore University or any other University.

Place: Bangalore Date : Sainath Biradar

CERTIFICATE FROM THE GUIDE

Certified that this special task Report titled The market opportunity of Tata Communications cloud computing services among small & medium size business units in Bangaluruis based on an original study conducted by Sainath Biradar III Semester MBA under my guidance. This report has not formed the basis for the award of any other degree / diploma by Bangalore University or any other University.

Place: Bangalore Date:

Prof. Ramesh Ayyar (Assistant professor, AIMS)

Acharya Institute of Management and Sciences 1st Cross, Peenya I stage, Bangalore - 560058

CERTIFICATE

Certified that this Organisation Study Report titled An organizational study of Tata Communication Ltd. Bangaluru is based on the study conducted by Sainath Biradar of III Semester MBA under the guidance of Prof. Ramesh Ayyar This report is based on the original study undergone and has not formed the basis for the award of any other degree/diploma by Bangalore University or any other University.

Prof. Ramesh Ayyar (Assistant professor, AIMS)

Dr. Kerron. G. Reddy CEO and Principal

Place: Bangalore Date:

Place: Bangalore Date:

Acknowledgement

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. Inputs from such helping hands are

always like very essential because more often or not certain mistakes which go unnoticed from our eyes. I am thankful to Dr. Kerron G Reddy, Principal and CEO of Acharya Institute of Management and Sciences, who had provided all the required facilities to carry out the dissertation project work and nurturing my skills to execute the requirements. I am heartily thankful to my guide Prof.Ramesh Ayyar (Assistant professor, AIMS)) Acharya Institute of Management and Sciences whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I offer my regards and blessings to all my Professors of AIMS who supported me in any respect during the completion of the dissertation project. I sincerely thank Mr. Bidyut Bikash Baruah (Business Development Manager, Tata Communication) for his expert direction, guidance, support, suggestions and information provided which were of utmost importance for the successful completion of the project. Last but not the least I thank my dear parents, teachers and friends who have been source of support, strength, inspiration and encouragement for whatever I am today.

Sainath Biradar Date:

Contents
Title Page No.

Introduction

5 Company Profile

Product profile

Statement of the problem Objective of the study Research methodology Literature review Sampling Analysis & Interpretation of data Findings Suggestions Conclusion Bibliography Annexure

10

11 11 12 13 16 26 27 28 29 I

LIST OF TABLES

Table No. 1

Title of Table Response of SMEs on cloud computing application

Page No. 13

Table showing how many of respondents knows the Tata Communications products

15

Table showing that the respondents switching to cloud computing:

16

Response of SMEs whether cloud service is cheaper or not:

17

Response of SMEs on the existing type of business mail solution:

18

LIST OF CHARTS Chart No 1 Title of Chart Response of SMEs on cloud computing application Page No.

Table showing how many of respondents knows the Tata Communications products

Table showing that the respondents switching to cloud computing:

Response of SMEs whether cloud service is cheaper or not:

Response of SMEs on the existing type of business mail solution:

Response of SMEs on the version of Google Apps. used:

Response of SMEs on the server used:

The market opportunity of Tata Communications cloud computing services among small & medium size business units in Bangaluru Introduction In just the past few years, cloud computing has moved from novel idea, to industry standard and for good reason. Whether we are looking for security or scalability, the cloud is fast becoming the solution of choice for hosting. The best part is anyone can make the switch; we dont have to be in the Fortune 500 to start reaping the benefits of the cloud. In the old days of hosting, upgrading your server was a pain! A professional would be required to physically go to your data center (assuming your web server wasnt located under the stairs of your home), install new hardware or software, and pray that everything went well. It was risky business. Luckily, things have changed. From the comfort of our favorite coffee shop, cloud hosts (Google) allow us to leave the IT nerd at home, and upgrade our server as needed. Whether our site is just sustaining heavy, consistent growth, or a new product has pushed our server to the limits, its never been easier to allocate additional resources to your server.

Anyone whos gone into the data center at 3am to perform server maintenance can stand behind the principle; we may not find a cheaper, easier solution. The main advantages of cloud computing are as follows

Reliable Data Reduced Downtime Low Start Costs Cloud Computing Solutions are available all the time

Tata Communications has come up with Think Big Solutions for small and medium business units. These are divided into three major categories
1. Connect to internet 2. Collaborate online 3. Equip your office

Reason to choose SMB (Small and medium business units) is as follows:

The number of SMEs is more Competition is low compare to big enterprise Wide reach in the market

Importance of Cloud-Computing In just the past few years, cloud computing has moved from novel idea, to industry standard and for good reason. Whether we are looking for security or scalability, the cloud is fast becoming the solution of choice for hosting. The best part is anyone can make the switch; we dont have to be in the Fortune 500 to start reaping the benefits of the cloud.

Cloud computing conceptual diagram

In the old days of hosting, upgrading your server was a pain! A professional would be required to physically go to your data center (assuming your web server wasnt located under the stairs of your home), install new hardware or software, and pray that everything

went well. It was risky business. Luckily, things have changed. From the comfort of our favorite coffee shop, cloud hosts (Google) allow us to leave the IT nerd at home, and upgrade our server as needed. Whether our site is just sustaining heavy, consistent growth, or a new product has pushed our server to the limits, its never been easier to allocate additional resources to your server. Anyone whos gone into the data center at 3am to perform server maintenance can stand behind the principle; we may not find a cheaper, easier solution. The main advantages of cloud computing are as follows

Reliable Data Reduced Downtime Low Start Costs Cloud Computing Solutions are available all the time

Tata Communications has come up with Think Big Solutions for small and medium business units. These are divided into three major categories
4. Connect to internet 5. Collaborate online 6. Equip your office

Reason to choose SMB (Small and medium business units) is as follows:

The number of SMEs is more Competition is low compare to big enterprise Wide reach in the market

Company profile Tata Communications Limited

The global reach and industry expertise of Tata Communications drives and delivers a new

world of communications. The company leverages its Tata Global Network, vertical intelligence and leadership in emerging markets to deliver value-driven, globally managed solutions. Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide. Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic

investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), and Nepal (United Telecom Limited). Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)

Product profile New Cloud computing Products by Tata Communications InstaCompute:

InstaCompute is a cloud based service that offers computing power on demand. It works on the Infrastructure as a service (IaaS) delivery model. IaaS is infrastructure delivered as a service, instead of managed in-house. Users can provision processing capacity, storage, networking and other fundamental computing resources and access them over the Internet or a Virtual Private Network instead of using equipment based in their premises. Key characteristics of our InstaCompute solution:
1. On Demand:

Automatic provisioning that takes place in minutes instead of traditional model which required days & weeks.

2. No Maintenance:

All hardware and network components of the service are monitored and maintained by Tata Communications, leaving customer free to concentrate only on his applications and services.
3. Dedicated Support Team:

24x7x365 support team reachable by Email, Phone or Web

4. Dedicated Support Team:

24x7x365 support team reachable by Email, Phone or Web

5. Measured Service:

Optimize service based on metering. Resource usage can be monitored, controlled and reported
6. Rapid Elasticity:

Quick, elastic provisioning, to scale up or down as per business demand

Statement of the problem Tata communications realized the cloud computing opportunity in the SME sector in India. Tata Communications developed few services which will not only provide solution for various needs but also lower the cost of operation. The aim of the task is to study the market opportunity of Tata Communications cloud computing services among small and medium size business units in Bangaluru. The statement of the problem could be generalized as:

To find out awareness of cloud computing infrastructure among the SME units in Bangaluru.

Objectives of the study

To find out the opportunities for cloud computing applications offered by TATA

Communications in SME market in Bangalore. To know the customers inclination towards the new technology SaaS and IaaS. To find out popularity of Google Apps so that future business potential of InstaOffice can be predicted. Future potential of cloud server like InstaCompute. Scope of the study The scope of this report is restricted to Bangalore unit of Tata Communication which deals with SME units. The scope of the study comprises the various tools used to collect information and of effort has been made to collect primary date through questionnaire. The whole study deals with the market opportunity of Tata Communications cloud computing services among small and medium size business units in Bangaluru. Research methodology The methodology adopted for the study was as follows: Data was collected from personal interview with the IT managers of the SME units and then analyzed to understand the need Tata Communications products among small and medium size business units.

Literature review Once the research problem is formulated, the researcher undertakes an extensive literature survey. The literature survey conducted here includes various websites from internet. The research to be conducted was The market opportunity of Tata Communications cloud computing services among small and medium size business units in Bangaluru. The details about the different products have been collected from websites like tatacommunication.com/smb and www.cloudtweaks.com/2011/08/small-businesses-gaincompetitive-advantage-with-cloud-computing Sources of data

Primary Source: The primary data comprises information survey of data collected directly from SMES in Bangalore with the help of structured questionnaires.

Secondary Source: The secondary data collected from Internet and references from Library, Journals, Magazines and Newspapers.

Sampling Sampling can be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words it is the process of obtaining information about an entire population by examining only a part of it. The process of sampling is used for various reasons Sampling saves time and money. It is usually less expensive and produces results at faster speed. It provides more accurate information. It enables to estimate the sampling errors and thus assists in obtaining information concerning characteristics of population. It also enables greater speed of collection of data.

The ultimate test of sample design is how well it represents the characteristics of the population it purports to represent. In measurement terms the sample must be valid which depends upon

Accuracy It is the degree to which biasness is absent from the sample. Precision It represents how well the sample represents the population in all respect.

Sample design A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units from which inferences about the population is drawn. Sampling design is determined before the collection of the data. Several decisions have to be taken in context to the decision about the appropriate sample selection so that accurate data is obtained and efficient results are drawn. In this study area sampling design is adopted. Here the SME units are divided into different cluster in area wise. Sample size: It indicates the number of SME units would be surveyed. Here the sample size is 20 respondents Limitations of the Study Every research work suffers from some inherent and some universal limitations that reduce the accuracy of the research. The actual Acceptance is influenced by the expertise of the sales personnel who is interacting with the prospective customer. The sample size also influences the quality of conclusions because a small sample may not present a correct measure of market pulse. Also a large sample taken over a large geographical area may ignore the regional variations. Such variations may be the key to specialized marketing and hence, more closings. The study does not cover the effect of future marketing efforts on the customer. Study conducted only on the SME units situated in Bangalore. Maximum care was taken while collecting the data so that personal bias is nullified but it cannot be ruled out completely

ANALYSIS AND INTREPRETATION

Response of SMEs on cloud computing application Total number of respondents 20

Already using cloud services Already using and showing interest on Tata Communications cloud services Not interested

10 4 6

The cloud computing technology is new to the Indian market but its fast growing and is on its way to find the proper recognition. There were various reactions from SMES in various sectors in the market. Approaching SMES located in various parts of Bangalore and getting their responses was tough and involved a lot of labor. The responses from various SMES were categorized into three different types. The SMES which come under the category of already using cloud services are those which have already been using the cloud computing applications and are following the technological advancements. These are 80% of the total survey. This shows that the SMEs are well-known about the benefit of the various cloud computing services. There is enough room for those who want to get business from the SME market. The second category is Already using and showing interest on Tata Communications cloud services and the SMES which fall under this category are the ones which have an idea about the applications or using the application and showing interest on Tata Communications various cloud services. This category has good number of SMES in it. They form to be 20% of the total pie.

The third category is Not interested. The SMES which fall under this category are aware of the fifth generation technology but are not willing to adopt it due to various reasons. They may find a need of this advanced technology later and may go for it. They form to be 30% of the total surveyed SMES. This shows that there are many industries that are yet to adopt the advanced style of doing business.

Table showing how many of respondents knows the Tata Communications products Total number of respondents Aware about Tata Communications products Not aware about Tata Communications products 20 10 4

Interpretation:

70% of the respondents are aware about Tata Communications products. 30% of the respondents are uses Tata Communications products.

Table showing that the respondents switching to cloud computing: Total number of respondents Willing to switch to cloud computing Not switching to cloud computing in near future 6 2 4

Response of SME's willing to switch on cloud computing

33%

67%

Willing to switch to cloud computing

Not switching to cloud computing in near future

Interpretation:

Major respondents do not want to switch to cloud computing as the investment already made to set up the physical infrastructure was very high.

Response of SMEs whether cloud service is cheaper or not: Total number of respondents Cloud service is cheaper Cloud service is not cheaper 20 16 4

Response of SM E'S W hether cloud service is cheaper or not

20%

80%

C loud serv is cheaper ice

C loud serv is not cheaper ice

Interpretation:

Major respondents (80%) told the service is cheaper.

Response of SMEs on the server used: Total number of respondents Physical server Rent the facility 20 7 13

R o se o S E o th server u esp n f M s n e sed

35%

65%

Ph sical serv y er

R t th facility en e

Interpretation: 65% of the SME rent the server facility as setting up owns server is very costly, hence we can say Tata Communications InstaCompute (cloud server facility) has great market potential.

FINDINGS, SUGGESTIONS & CONCLUSION

Suggestion
1. Small and medium scale industries are already knew the benefit of cloud services.

2. Majority of the market players in SME units are known about Tata Communications products and services.
3. Major respondents agreed that cloud service is cheaper.

4. Majority of small and medium scale industries are used to Google Apps. 5. Physical server is costly so the major number companies already opted physical

server infrastructure does not want to shift to cloud service. 6. Major portion of companies has opted for rented server facility. Findings
7. Small and medium scale industries are already knew the benefit of cloud services.

8. Majority of the market players in SME units are known about Tata Communications products and services.
9. Major respondents agreed that cloud service is cheaper. 10. Majority of small and medium scale industries are used to Google Apps. 11. Physical server is costly so the major number companies already opted physical

server infrastructure does not want to shift to cloud service. 12. Major portion of companies has opted for rented server facility. 13. Awareness of the cloud computing products and services already there among Small and medium scale industries, all it needs for success are a. b. c. Customization Competitive price Value addition

14. Promotional activities required for the cloud service and other products. 15. Tata Communications should project itself as end to end service provider.

Conclusion

Now a day, we can find a large number of competitors for any advanced applications and services in the market. Every existing and new entrant service provider wants to have a competitive edge in the market. Now that the cloud computing applications have come into existence and are proving to be advanced, faster, cost saving, user friendly, reliable, secure, and supportive for the businesses, it is to be observed and studied how the market absorbs them. Customer service, like any aspect of business, is a practiced art that takes time and effort to master. The company can think from the point of view of customers. What would the company want from their business if they were the client? How would the company want to be treated? Treat customers like friends and they'll always be with Tata Communications. The other advantages of Tata Communications are as follows: End to end service provider Technical superiority Strategic tie up with big names in the industry(GOOGLE, CISCO)

SME units are said to be the lifeblood of any vibrant economy. They are known to be the silent drivers of a nations economy. SME units of India are one of the most adopters of ERP packages. Tata Communications has rightly identified the opportunity to grow further.

CHAPTER 6 BIBLIOGRAPHY

BIBLIOGRAPHY 1. BOOKS

Rajagopal, ed. Marketing Dynamics:Theory and Practices. New Delhi: New Age International Publishers, 2007 C.R. Kothari, ed. Research Methodology: Methods and Techniques. New Delhi: New Age International Publishers, 2004

2. Website:

tatacommunication.com/smb http://www.cloudsurfing.com/site/4428-Google-Apps/competitors http://www.grotal.com/Bangalore/Cloud-Computing-C67