Delineation Of Pipeline Coating Defects Company Engineering Essay

Delineation Of Pipeline Coating Defects Company Engineering Essay The business sector of corrosion monitoring and control solutions we provide expertise in consultation, evaluation, design and installation of cathodic protection systems. With established field assessment techniques and specialized equipment such as CIPS/DCVG survey equipment. Engineers collect record and analyze field data efficiently so that clients are able to run safe and highly optimized systems. Corrosion solutions are provided in a cost effective and with highly professionalism to enable clients to enhance their facilities integrity management systems. Introduction: The external inspections using DCVG-direct current voltage gradient technique was performed on this pipeline on March 10th 2011 to March 24th 2011.Cathodic protection and coating are complementary to each other and when applied together, result in reliable corrosion mitigation. Cathodic design presupposes certain coating breakdown criterion for the given type of coating and given environment. If coating break down exceeds beyond the maximum percentage limit presupposed by the CP system design, cathodic protection may become ineffective. To ensure the effective cathodic protection and effective corrosion control, it is desired to access the condition of the coating of the underground pipeline. Exposing the pipeline by excavation all along the length, for this purpose is impractical. Various methods have been evolved for the assessment of coating condition without excavation. One of the methods is Direct current voltage gradient survey. Safety: The site activities were performed as per the applicable safety procedures. Work permit was obtained prior to commencing of site activities. The HSE requirements were explained by PCML engineer to the site team. All personnel safety gears such as safety boots, coverall. Hard hat, googles etc were used during the site work. Codes and standards: The measured potentials and performance of the cathodic protection system, equipment and materials shall comply with the requirements PTS and NACE standards code and other authority having jurisdiction over the system. NACE RP-O502-2002 Pipeline external corrosion Direct Assessment Methodology. NACE RP-0169-96 control of External corrosion of underground or submerged metallic Piping systems. NACE RP-05-75 Design, installation, operation and maintenance of impressed current Deep ground bed. The scope of work performed in this project is in accordance to industry standards has been maintained to ensure international codes of practice in corrosion control. The criteria used for protective potentials of buried steel are indicated in NACE international national association of corrosion engineerà ¢Ã¢â€š ¬Ã¢â€ž ¢s standards. Pipeline details: The pipeline has the following physical characteristics and these details shall be applied to design the cp system. GSPC on shore gas pipeline Length : 67km Coating : three layer polyethylene Service : gas Source station : poc (chain age 10 km) Destination station : metering station (chain age 67 km) Introduction to DCVG coating survey equipment: The direct current voltage gradient (DCVG) pipeline coating survey test equipment is version 9, and is the most technologically advanced version of the equipment that can be traced directly back to the original invention of the technique in Australia by john mulvany. With the equipment described in this document, through experience in its use and interpretation, it is possible to gather with a reasonable degree of confidence the following information about the pipeline being inspected. Coating fault epicenter location to within a 15cm circle, which means that excavation costs can be reduced. The approximate severity of the coating fault can be established so that coating faults can be prioritized for repair. The approximate corrosion behavior of individual coating faults can be established to ease identification of those coating faults that do not have sufficient cathodic protection. DCVG technique does not however detect metal loss but identifies sites where metal loss is possible. Identification of where coating faults gets its cathodic protection from, cp that the vulnerability of coating fault to being unprotected if a CP source becomes inoperable can be established. Identification of coating faults that are discharging or picking up DC Traction interference so that more effective mitigation technique can be implemented. Establish the effectiveness of insulating flanges. Identification of interfering structures that robs CP from the pipeline. Identification of defective test probes at which pipe to soil potentials are routinely monitored. Rapidly establish sections of pipeline that have a larger number of coating faults by studying the rate of decay of the DC voltage gradient signal on the pipeline. The data gathered by DCVG technique is not absolute but relative and is influenced by a series of parameters such as soil resistivity, depth of burial etc whose effects must be taken into account to improve the accuracy of any data. Typical applications of DC voltage Gradient Technology: Shown below are some typical applications of DC voltage gradient technology to evaluate the protective coatings and cathodic protection on buried pipelines. It has to be remembered that the protective coating on a buried pipeline is premier corrosion protection mechanism but all coatings have coating faults in them. To control corrosion of steel exposed at coating faults, cathodic protection is used. Cathodic protection is supportive technique. The relationship between cathodic protection and protective coatings is important and since DCVG studies this relationship and provides valuable information to control corrosion. Typical Applications are: Evaluate pipeline coatings to define rehabilitation requirements. Define weakness in the cathodic protection system. Validate that the pipeline has been constructed with minimum coating faults. Investigate interference effects. Establish effectiveness of insulating flanges and other methods of pipeline isolation. Provides data for operating license validation. Surveying complex pipeline networks not possible by other methods. Surveying under concrete and asphalt in city streets. Capable of surveying under over head power lines. Electrical continuity checking of mechanically jointed pipelines. Principle of the DCVG Technique: When DC is applied to a pipeline in the same way as cathodic protection (CP) the current flow through the soil to steel exposed at coating faults generates a voltage gradient in the resistive soil. The larger the current flowing the greater the soil resistivity and the closer to the coating fault location all give rise to larger voltage gradient. In general larger the defect, bigger the current flow and hence the voltage gradient, which is used to size coating faults so they can be prioritized for repair. In the DC voltage gradient technique the DC signal impressed on to the pipeline is pulsed at a frequency of 1.25 hertz. The DC signal can be impressed on top of the existing CP system of the pipeline or the CP system itself can be utilized by inserting a special switch or interrupter into one of the output cables from the nearest transformer rectifier. Only one transformer rectifier nearest to the survey area needs to be interrupted at any one time, thus the limitations of the other over line surveys where all DC influences have to be switched at precisely the same time does not apply for coating fault location. For more precise and intensive studies it is advisable to interrupt synchronously a number of rectifiers that are affecting the area being surveyed. For fault location the pulsing DC signal can even be imposed at a test post using batteries or a portable DC generator and temporary ground bed. Unique feature of DC voltage gradient technique is that the pulsed signal is irregular in shape i.e. switched ON for 0.45 sec of a cycle and OFF for 0.8 sec of a cycle. The irregular pulse allows the direction of current flow to be determined and compared to all other DC influences at an individual coating fault, enabling the degree of protection against corrosion at individual faults to be determined at the time of survey. To monitor the voltage gradient in the soil the technique utilizes measuring on a sensitive and especially constructed milli voltmeter, the difference in voltage between two copper/copper sulphate half cells placed in the soil at ground level. When spaced one meter a part in a voltage gradient one half cell will adopt a more positive potential than the other which enables the direction of current flow which caused the voltage gradient to be established. In surveying a pipeline the operator walks over the pipeline route testing for pulsating voltage gradient at regular intervals. As coating fault is approached the surveyor will observe the milli voltmeter needle begin to respond to the pulse, pointing in the direction of current flow which should always be towards the coating fault on the pipeline. When the coating fault is passed the needle direction completely reverses and slowly decreases in amplitude as the surveyor moves away from the defect. By retracing to the coating fault a position of the electrodes can be found where the needle shows no deflection in either direction (a null). The coating fault is then sited midway between the two electrodes this procedure is then repeated at right angles to the first set of observations, and where the two midway positions cross is the location of the voltage gradient epicenter. The coating fault epicenter location is then pegged. In order to determine various characteristics about a defect, such as severity shape, corrosion behavior etc. Various electrical measurements around the epicenter and from epicenter to remote earth are made for detailed interpretation. Survey Switch (Interrupter): The survey switch utilizes a solid state device to switch the applied DC at one of two speeds determined by the position of the STD/SLOW switch. The STD/SLOW switch has two positions which represent: STANDARD (STD) setting 0.45seconds ON followed by 0.9 seconds OFF SLOW setting 0.9 seconds ON followed by 1.8 seconds OFF The STANDARD setting of the switch is used for normal surveying to find coating faults. This speed of switching matches the typical response time of a survey operative. The SLOW switch position is used in conjunction with a digital voltmeter for pipe to soil potential measurements or current measurements via an inline calibrated shunt. The interrupter is connected in series into either the negative or positive cables from the DC source being interrupted. The negative cable is preferred. This is setup so that the cable coming from the transformer/rectifier is connected to the BLACK terminal on the interrupter and the cable from the pipe is connected to the RED terminal on the interrupter. Danger : under no circumstances should the terminals of the interrupter be directly connected across the terminals of the DC power source/ transformer rectifier as this will short out the power source and do serious damage to the interrupter and the DC power source. Also do not under any circumstance connect the DC interrupter terminals to an AC source. Survey meter: Survey Meter: The dominant visible feature of the survey meter is the analogue meter movement. The meter has a center zero needle position. This means that with voltage across the meter input, the needle rests at mid scale irrespective of the range switch position. The survey meter has the following voltage ranges 10mv, 25mv, 50mv, 100mv, 250mv, 1v, 2.5v, 4v. the voltage range of the meter can be selected using the voltage range switch sited on right hand side of the meter front panel. The range switches correspond to various ranges or multiples of the ranges on the analogue meter scale. The 10mv on the voltage range corresponds to the zero to ten milli-volts full scale deflection on the analogue meter (plus or minus 5mv about the center rest position of the meter needle). The 25mv on the voltage range corresponds to the zero to ten milli-volts full scale deflection on the analogue meter (plus or minus 12.5mv about the center rest position of the meter needle). The 50mv on the voltage range corresponds to the zero to ten milli-volts full scale deflection on the analogue meter (plus or minus 25mv about the center rest position of the meter needle). When not in use the range switch should be turned to the 4-volt range to minimize any chance of meter damage. Probes and Handles: The standard probes used with the DC voltage gradient equipment are especially adapted approximately one meter long copper/copper sulphate reference electrodes. The probes are lightweight, high strength tubes fixed at one end to an insulated stainless steel stud that provides both electrical and mechanical connection to the probe handle. The other end of the probe electrode contains a conductive wooden plug to make electrochemical contact between the soil and the copper sulphate solution/copper electrode. The wooden plug is a push fit into its plastic holder with PTTE tape used a washer. The plastic holder screws onto the probe using a flat rubber washer as the seal. Only one probe handle is switched on and used at any one time during the survey. The other is used as a spare. Plain handles that have no bias are available since only one bias handle is used at any one time for surveying. The probe handle has a built in bias that is controlled via an ON/OFF/Range switch and a Bias adjustment potentiometer. Preparing Equipment For Survey: Battery charging: Generally the DCVG meter and the interrupter will require charging more frequently than the handles. Each equipment will require separate continues charging for two days if the batteries are entirely flat. When operating several sets in order to ensure all components parts of the equipment sets are adequately maintained it is advisable to number each component and set up a charging register to keep a tally of what equipment has been charged when and for how long. Probes: A wooden probe tip should first be wrapped around its cylindrical section with white PTFE tape applying sufficient to ensure the wooden tip is a firm push fit into the probe tip holder. All the three holders should and tips should be soaked in portable water overnight. Water uptake causes the wood to expand and give a liquid tight seal. The copper/copper sulphate probes are filled with copper sulphate solution. The probe is filled almost full of copper sulphate solution through the probe tip holder end. The presoaked tip and holder plus washer are screwed onto the probe to make a liquid tight seal, the probe is inverted to correct position and the handle is screwed. Surveying Setting up DCVG signal: The most important parameter in ensuring an accurate survey and in determining the survey speed is the amplitude of DCVG pulsed signal. It is worth to spend time during setting up the DCVG signal is atleast 150mv and no larger than 1500mv. As the signal amplitude or strength vary along a pipeline, the signal strength at start(drain point) should be 1500mv and that at the other should be at least 150mv. A rapid decay of signal as described as above measured at two locations say would be an indication of poor coating on the pipeline. The presence of many coating faults or some large drain on the CO system can be expected. Whereas good coating would show very little attenuation of signal amplitude. The signal strength or amplitude is the difference between ON and OFF potentials measured on the pipe to remote earth, whilst the interrupter is switching ON and OFF the applied DC source. The amplitude is measured on the DCVG meter as the pulse size, the milli volts size of pulse is determined by measuring the difference in extremities of the pulsing meter needle using the bias and range switches to bring the full pulse onto the meter dial. The pulse amplitude at test posts measured to remote earth in not the same as the difference between ON and OFF pipe to soil potentials measured only at the test post. To get full value and meaning from DCVG measurements, the ideal source is CP system itself set at the same level of output as normal operation. Some adjustment to the TR unit output might be required if signal levels are inadequate. Rectifier: If there is no CP system installed then a temporary CP system must be setup. Ideally maximum of 50 amperes should be installed. A temporary ground bed may be steel poles inserted into the soil, or any steel structure such as a fencing post, overhead power line earthing systems, scrap, steel pipe, etc. caution need to be exercised in order not to burn out the interrupter. The interrupter should be connected into the electrical circuit as shown in the fig, utilizing short wire of optimum 10mm in cross section. The black terminal of the interrupter should be connected to the cable going to the pipeline. The polarity connection in important, if connected around the wrong way the interrupter will not switch the DC output if this happens just reverse the terminal connections on the interrupter. The interrupter should be inserted with the transformer rectifier set in its lowest output setting and the transformer rectifier mains electricity switch in the OFF position. For TR with a known output that is less than 25 amperes, after the interrupter has been inserted and the interrupter switch set to the ON position and interrupting speed switch to standard, the TR should be switched on and the output slowly increased to give normal output or higher to give an adequate DCVG signal. Poor temporary anode setup is the usual cause of inadequate signal. With a temporary setup where the DC source are batteries, a welding set or rectifier with no ammeter it is important that the following procedure is followed in order not to damage the interrupter by passing too much current. Adjustment to ensure good signal require trail and error and patience but extra time spent in setting up the signal will give greater confidence in the quality of the survey, which is usually achieved at a greater speed than on pipelines with a poor signal. Measurement of the signal level at test posts are carried out in exactly the same way as ,measurements made to measure pipe to soil potentials, except there are two measurements in this case : From the copper wire or test post terminal to the soil alongside the test post. From the soil position alongside the test post to remote earth. Assembling the DCVG equipment: Thr reference probes previously filled with cu/cuso4 solution and fitted with tips are screwed onto the probe handles. The meter strap is placed around the neck and waist so that the meter fits snugly on the operator. The connecting leads are fitted into the meter and into the probes to interconnect the two probes to the meter. The meter function switch is then turned ON and the range switch adjusted from 4volts to 1000mvolts. With the probe tips placed in the soil the bias to the right hand probe is switched ON. The bias to the left hand probe is not switched on, it is a spare available if needed, also to increase the amount of bias available should that from one handle not be sufficient because of large background DC in the soil. Move to the test point at which the signal is to be measured. With right hand probe make contact with the soil and with the left hand probe or with the plug end of the left hand cable, make connection to the test point wire. Adjust the right hand bias control knob and meter range switch until the full extent of the meter needle deflection is visible on the meter scale. Adjust the meter range until the deflection cane be read accurately . if for example the meter is on the 1000mv range and the mater needle deflection is from 225mv in the OFF position to 850 mv in the ON position , the signal on the pipeline at the test post is 850-225=625milli volts. Having measured the pipe to soil signal strength there is another measurement that to remote earth which must be added to that from pipe to soil to give the full signal strength at the test post. In measurement to remote earth the probes are used like a set of dividers by starting at the soil position at the test post and moving away at right angles, summing the voltages observed for each position of the half cells. Remote earth is reached when two or more readings small in size are the same. The signal strength should be noted at every test post and all other potential monitoring points along the pipeline route. Measurements must be taken at either end of a section under Overline To Remote Earth Potential Measurement. Survey as well as the distance apart, as these readings are required for calculating pipe to remote earth potential. Similar measurements to that described above are taken from the coating fault epicenter at ground level to remote earth at every coating fault and are used in calculating the coating fault severity. Operating instructions: Finding a defect: Adjust the meter a range switch to the 100mv range, and ensure that only one handle bias switch is ON adjusted to position 3. This is all that is necessary for normal surveying. Place the probes one in front of the other. Contact the soil with the probes approximately at 1.5 to 2meter spacing. Turn the bias control potentiometer to bring the needle of the meter onto the scale. Keep the needle on the meter scale the whole time the probes are in contact with the soil. Look for the meter needle to be flicking in response to the pulsed DC. Lift the probes srep out from the test point at which the signal strength was previously measured. Move forward 2 paces and contact the ground with the probes. Use the bias if necessary to bring the meter needle onto the scale. Look dor a needle deflection. If there is no deflection then step out another 2 paces and then bring the needle onto the scale with the bias control. If there is a deflection observes the needle to see which direction the coating fault lies. If you are unsure either change to a lower meter scale or move the probe forward along the pipeline. The meter needle points to the probe, which is nearest to the defect. The interrupter if OFF for longer than for what it is ON and when it is ON the current normally flows through the ground towards the defect. It is the size and direction of the needle flick or swing that you are interested in. it may be possible that the coating fault is small and lies behind you so correct identification of direction of the needle swing. If you observe a deflection lift the probe which is closest to the coating fault and move it 0.5meter towards the defect. Bring the second probe forward and place it where the first probe used to be keep moving forward in this manner. As you move towards the defect the amplitude of deflection will increase so there may be a need to change to a higher range required. When the coating fault is passed the needle deflection completely reverses and slowly decreases as you move away from the defect. Retrace the steps to the suspected coating fault position where the change in meter needle direction occurs. At the approximate null position with the probes at about 1,5 meters apart observe any meter deflection. If the deflection is from left to right move the left probe 15cm to the right hand probe. At the point of no deflection, the coating fault location lies midway between the two probe locations. Scratch a mark on the ground at the midway position. Turn through 90 degrees to work across the pipeline direction. Stand facing the mark in the ground and repeat the coating fault location process described above. At the new null position mark the midway position between the probes on the ground to cross the first mark. Recheck the first mark by turning back to the original position and checking for the null. Where the two lines cross is above the centre of the coating fault voltage gradient and is called the coating epicenter. As a final check that the location is correct, place one probe at the epicenter and the other about 1.5 meters away placed in turn at the four points of the compass. At each of the four locations the meter needle should indicate a direction towards the coating fault epicenter. If this is not the case then the epicenter has been incorrectly located or the coating fault location is at one end of a long crack in the pipe coating. Determining the Coating Fault Severity: Coating fault severity which is related to its geometric size although there are other influencing factors is determined from electrical measurements taken at the coating fault epicenter. The size/importance or severity of a coating fault titled %IR is calculated by expressing the over line to remote earth potential as a percentage of the actual pipe to remote earth potential (the signal amplitude) on the pipeline at the defect Once all information about a coating fault has been logged continue surveying along the pipeline route. A special but common type of voltage gradient encountered during the surveying has a long sausage shape generated by longitudinal crown cracking in coal tar, ruffling in tapes, and micro porosity in asphalt coatings or where many small coating faults occur in close proximity. Whilst this type of coating fault is often missed during CIPS or Pearson surveys, their presence can readily be recognized by DC voltage gradient technology because such coating fault have strong lateral voltage gradients. Coating fault size shape and location on the pipeline: A good indication of a coating fault size, shape and location around the circumference of a pipeline can be gained by plotting of the equipotential lines of the voltage gradient at a coating fault in the soil surface. Start by plotting at a plotting at a point equivalent to 30% of the over line to remote earth potential. Track the equipotential line by the nulling method around the coating fault epicenter all way back to the start point placing markers on the way. The line will indicate the size and shape of the coating fault. The distance from the epicenter to the pipe centre line as determined by a pipe locator will determine whether a coating fault is on the bottom, side or top of the pipeline but this is an awkward way of determining this. A small discrete coating fault on the top of the pipe will appear as a circular is potential shape. The same sized coating fault on the bottom of the pipe will appear as an ellipse, distorted to one side of the pipe center line. Because the effect the pipe itself has in distorting the isopotential lines from the pipe centre line, it is easier to determine the location of a coating fault around the circumference of a pipeline on large diameter pipelines than on the smaller diameter pipelines. Some examples of isopotential plots of coating faults of different shape on a pipeline are shown in figure An alternative way of determine the orientation of a coating fault is to carry out the four points of the compass readings at each location keeping the probe spacing the same for all four measurements. If the coating fault is on the top of the pipe all four readings will be of similar amplitude. If the two readings to the side are much larger than those taken down the length of the pipeline then the coating fault is on the bottom segment of the pipeline. If one side reading is larger than the other then the coating fault is on that side of the pipeline. Calculating the severity of coating faults: The relative severity of a coating fault is expressed by the term %IR, which is calculated using the following formula: Fault epicenter to remote earth * 100 Coating fault severity (%IR) = - Calculated pipe to remote earth OLRE*100 In short version, %IR = - P/RE Calculation of the pipe to remote earth potential is an important figure needed to calculate the severity importance (%IR) value for a defect. To be able to calculate the severity of defects it is necessary to know the distance of defects and the DCVG signal strengths at test posts either side of the sector being surveyed. The pipe to remote earth potential (P/RE) is calculated as follows P/RE = S1- dx(S1-S2) D2-D1 S1= signal at upstream test post in = 800mv S2= signal at downstream test post in = 300mv D1= distance of upstream test post =0m D2= distance of downstream test post=1000m dx= distance between upstream test post and defect = 400m the severity (% IR ) is calculated as over line to remote earth from the figure is 130milli volts pipe to remote earth calculated above in 12.0 from figure given then % IR 130 * 100 %IR = =21.7 600 Deciding Which Coating Fault To Excavate And Repair: The coating fault grading is 0-15%IR characterized as a small coating faults. Such coating faults can usually be left unrepaired provided the CP system of the pipeline is in good condition and there are not too many small coating faults in close proximity. 15-35%IR characterized as medium coating faults. These may need repair usually within normal maintenance activities 35-70%IR characterized as medium large coating faults. These faults need to be excavated for inspection and repair in order to fix what could be considered a significant coating fault. 70-100%IR characterized as large coating faults. These coating faults should be excavated early for inspection and repair. The characterizations of coating faults given above are only one input but a very important input to the excavation and repair decision. Other important factors are shape and method of coating failure, corrosion behavior, soil PH and resistivity, presence of hydrogen sulphide in the soil, operating temperature, age. Coating type, leak and metal loss history etc. DCVG data for on shore pipeline: SNO Chainage (Km) ON (-mv) OFF(-mv) Potential Swing(-mv) OLRE(mv) Signal Strength (mv) %IR Remarks 1 0+000 1650 1091 550 2 0+300 20 587.50 3.404

Citibank – Performance Evaluation

INDIAN INSTITUTE OF MANAGEMENT LUCKNOW Written Executive Communication PROJECT REPORT Citibank – Performance Evaluation Submitted to – Dr. Payal Mehra Date – 26/10/2012 Submitted By Group 8, Section C Anuradha Tyagi (PGP28128) Aditya Singh (PGP28158) Bholendra P. Singh (PGP28143) K. Aditya Das (PGP28139) Vishal Raju (PGP28155) Shweta J. (PGP28159) Table of Contents 1. Abstract2 2. Brief Overview of the current situation3 3. Strategy for Case Analysis5 4. Case Analysis6 5. Recommendations9 6. Implementation11 7. References12 AbstractFrits Seegers, President of Citibank California was put in a tough spot when he had to evaluate James McGaren. Mr. McGaren had for long been a good performer, but with the new performance evaluation criteria that take customer satisfaction into consideration, he fared â€Å"below par†. It is now up to Mr. Seegers to take a call on James, should he be given an â€Å"above par† or a â€Å"below par† rating and how wi ll this be communicated to him. Brief Overview of the current situation James McGaran is the manager of the flagship office of Citibank in the Los Angeles area which also happens to be the most important of Citibank’s 31 branches.He has been a veteran not just in the banking sector but also at Citibank. He had delivered impressive financial results for four years in a row exceeding expectations every single year. But when customer satisfaction was included as a decision parameter in when it comes to evaluation, it was evident that James did not fare very well on that front. The new criteria for employee evaluation are as follows: * Financial Measures: Focus was on total revenue and profits * Strategy Implementation: Tracks revenue from a particular segment relevant to the Bank’s strategy. Customer Satisfaction: Surveys were conducted. Emphasis was laid on long term association. * Control Measures: Based on banks internal control processes. If rating < 4, bank is said t o be at risk. * People and Standards: Focused on the efforts of the manager to develop and communicate with peers/ employees. Based on the employees performance in these factors a rating was given, the various ratings that can be given were â€Å"Par†, â€Å"Below Par† and â€Å"Above Par†. Finally, a global rating and overall rating for the manager was awarded.Due to the change in performance evaluation criteria, two major complications flared up: First and foremost, Lisa Johnson has to decide the rating of James. According to bank’s rule an employee can be given above par rating if and only if he is performing at par in all the criteria. John has been excellent at five performance measurement statistics but lags in one i. e. customer satisfaction. So as per the rules he can be given â€Å"at par† rating at best. But Lisa believes that John deserves an above par rating because of his excellent work when it comes to revenues.Secondly, if Lisa decid es to give him an â€Å"at par rating†, she has to decide the best possible way to communicate her decision. She has to inform him in such a way so that it does not have any negative effect on James. Lisa wants James to stay with the company and she has to make sure that the message is communicated properly. It is clear that James will not accept a â€Å"below par† rating and at this juncture, Citibank cannot afford to lose an employee of James’ stature. This is a typical Human Resources related situation which has to be dealt with extreme caution, else there can be dire consequences.Should James’ ego be hurt, there is a good chance he will quit the company and with his credentials, he should not have much trouble getting another job. At the same time, should he be given an â€Å"above par† rating, it would go against the long term vision of the company. Strategy for Case Analysis This case focuses on the performance evaluation James McGaran. Thoug h the performance evaluation parameters adopted in Citi is highly quantified, the performance of Mr McGaran is better measured qualitatively. With a consistent â€Å"above par† rating Mr.McGaran has been a model employee. His financials were outstanding- 20% above target. His strategy implementations were highly rated. It was his branch that generated highest revenue and made the greatest margin contribution to the business. The only area he lagged was â€Å"customer satisfaction† rating. James McGaran was extremely sensitive towards his ratings. He had worked hard to improve the customer satisfaction rating during the last quarter. He felt that extremely disappointed that even with fabulous financial results his rating had suffered due to customer satisfaction.The customer satisfaction rating depends on many factors like the location of the bank, the kind of customer it catered to etc. Mr McGaran’s branch was in Los Angeles. It catered to some really high profi le people. The expectation of such demanding clientele from the branch would be comparatively higher. Besides the customer rating also involved Citibank services rating over and above the branch rating. Hence, judging it on completely quantitative factor wouldn’t provide a completely objective rating. Case Analysis Analyzing James on the new parameter is a very difficult task.As James is the manager of the most challenging branch with highly demanding clientele, it is difficult for him to be the best on all the parameter specially customer service. In five out of six parameters James has been rated above par and it is only the customer service where he has been rated below par. Now as per the new parameters he cannot be rated above par overall. But the question is whether it is rational to not rate him above par. Now if we closely analyze the bank headed by James it is clearly visible that it is one of the most demanding banks in the region not only among Citibank branches bu t also among rivals.The no. of employees at the bank are just sixteen while the clientele of the bank ranges from Households on one end to sophisticated Business customers on the other and Mom and pop store to the sophisticated retail store on the other. Now this diverse clientele has equally diverse customer service requirements. Customer service requirements of one are different from those of the others. So with a employee bas of just sixteen employees it was practically impossible for the branch to provide a very high level of customer service to the clientele.What made things worse for James was that his branch was to bear the blame for the lack of customer services for services such as ATM for which branch was not responsible but the Citibank as a whole was responsible. To add to the woes of James, one of the employee was absent for the third quarter. So very little was in the hands of the James to improve the services of the branch. The huge size of clientele was also causing problem for the branch of James as the no of branches of Citibank were significantly lower than the rivals, so the no. f clients per employee were very large and hence customer service for his branch was very bad. The biggest hurdle in the promotion of James was that other managers were looking at James. If Seeger gave any benefit to James then the other managers would also demand the same benefits and as such the entire performance evaluation system may fail. Also there was a fear that other managers may not take the new performance evaluation system seriously and the sole objective of the bank may to provide relationship banking may fail.But Seeger also knows that the performance of James was remarkable and that he should be awarded for it but at the same time he was not meeting the criterion. Also Seeger had a fear that if James is not awarded than he may be demoralised to excel at the bank and bring those above expectation financial results. Now analyzing, the new scheme propose d by Seeger to evaluate the performance of the managers. The new Scheme fails to count various factors. The new scheme has various pros and cons. Analyzing these pros and cons it is very clear that the scheme is falling short of perfectly evaluating the performance of the managers.As the scheme says that out of six parameters if the manager performs below par in even only one parameter his overall rating cannot be above par. The scheme takes an account on the downside of the performance but does not account for the excellent performance on the other fronts. Let us take the case of James, he was rated excellent in five out of six parameters but still he was not rated above par because his performance in one parameter was below par. The scheme concentrated on the downside of the performance but not on the upside.In fact the scheme became a tool to punish the managers rather than rewarding them. In place of this the bank should have weighted all the six parameters with a minimum perfor mance limit in all. In this case one could compensate the lack of performance in one parameter by excelling in other parameters. The other major shortcoming of the policy was that the policy talked of minimum performance levels. But it failed to talk about exceptional performances. As financial performance of James branch was higher than what was expected of the branch. The bank was failing to reward this exceptional performance.This was highly demoralising for James as he is not rewarded for his financial performances as that was improving the bottom-line of the company. Also one of the problems that was there with customer satisfaction was that the branch was not responsible for all the services as some services like ATM were provided centrally by the Citibank. And so the branch was not responsible for any lack of service but it was held accountable for that. Also another serious issue was that the bank targeted relationship banking but the number of clients per employee were very large as compared to the rivals.The situation was worse in the case of James as he had a very diverse clientele and only sixteen employees so it was very difficult for him to perform above par in the Customer service parameter. On analyzing it is very clear that the bank’s performance evaluation scheme has many shortcomings which have to be taken care of else the deserving manger would rather be punished than getting rewarded. And if this policy implemented as it is, it may lead to demoralization of employees and fall in overall performance of the company. RecommendationsSince five of the six performance measures in James’ year-end evaluation were â€Å"above par†, the customer satisfaction rating was the only one that caused a significant challenge and had substantial financial repercussions for James’ year-end bonus, which was a significant part of his base salary. Based on his customer satisfaction scores, which was â€Å"below par† according t o the banks written guidelines, his total evaluation could be only â€Å"on par† in spite of the fact that he excelled in five other performance areas. In this backdrop two alternatives exist for the company: Implement Lisa’s decision:According to Lisa the evaluation could cause James to consider leaving the company, not even so much because of the reduced bonus, but also because of the feeling of being treated unfairly or not being valued by the company. She recognized that losing James would be a significant loss for the bank, notwithstanding the fact that it would be hard to find as qualified and dedicated manager as James for the particular branch wherein he brought about a dramatic improvement in customer satisfaction score in the fourth quarter from 54 to 72 and took personal pride in successfully running the hardest branch in the division.Not only would it be a substantial financial shortfall in total annual compensation for James, but it would also deal a blow to his self-esteem. She was in favor of providing the due to James even though the branch couldn’t perform under customer service parameter. The outcome of the decision would have been: a. Awarding of ‘above par’ rating to James b. Overriding the system and provide James with a bonus of 30% The decision will reward James’s hard work and commitment towards the organization and will provide him the boost and motivation to perform better. However, there are cons to the decision which are much critical than the gains: a.Resentment among other 30 Branch Managers will develop and they will also demand the compensation even though they weren’t able to achieve all the parameters. Thus achievement in any five parameters of the six will led them to demand the same level of compensation even though the efforts and results are not in commensuration with James one. This is attributable because of the range provided in the Performance evaluation sheet. b. Undue f avor or biased decision will harm company’s management team reputation and will act as a precedent for deviating from defined standards. c. The very motive of the bank to improve upon the customer atisfaction level in the branches will be defeated as there wouldn’t be an incentive or motivation for James to achieve the parameters as laid down in the performance scorecard. Follow standard norms and communicate openly detailing company’s objective and concern: This alternative also serves as our recommendation for the company to adopt in this particular case. As James is not only ambitious, highly qualified employee but also a mature person. He should be briefed by both the officials in a special meeting to explain company’s position and adopting a decision to remain consistent across the bank.Even though he delivered an exceptional performance, the customer survey was the sole reason to give him an overall par rating which led to lowering of his bonus. He should be recognized and rewarded suitably for his overall excellent performance and management should express concern of their inability and problem to reward his actual contribution by rating him above par. All the reasons cited above should be duly explained to him and also future steps to be taken by the management for the improvement of the performance scorecard should also be mentioned accordingly so that his future results are not jeopardized.He should be assured of the best possible addressing of his requests and branch issues by providing him the highest priority in the issues concerned. Implementation This is the first year the balanced scorecard was implemented. Thus, the shortcoming of the scorecard is to be addressed so that all the areas are measured appropriately. Management should review the survey and get some input from Branch Managers on what indicators are more suited towards customer satisfaction which are totally under the control of th branch and not externall y linked.As a token of valuing James performance highest priority is to be assigned to his requests and he should be guided properly in the area of customer satisfaction There may be possibility of balancing other exceptional achievements with other areas and keeping rewards for some of the essential parameters separately. This will act as an additional incentive for people to always perform to the best of their capabilities. References * http://hbr. org/product/citibank-performance-evaluation/an/198048-PDF-ENG * Dr. Payal Mehra (2012),  Business Communication for Managers, Pearson Education

Cloud Computing Industry Analysis

Report – 2012 Cloud Computing Industry Analysis Submitted ByRomi Narang (197) Suryadeep Gumber(212) Rajesh Anuragi (196) Smith Rakesh (194) Neha Chavan(221) Neha Agrawal (224) Chandrika Gailot(229) 1/10/2012 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Cloud Computing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 WHAT ARE THE NECESSITIES OF CLOUD COMPUTING? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 What are the needs of PaaS, IaaS, SaaS (Cloud Families)? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 Pricing Models †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 PESTLE Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 Technological Infrastructure required for Cloud Computing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17 Cloud Computing – Drivers Vs Inhibitors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦. 8 Global cloud computing market size& Future growth †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 22 CLOUD COMPUTING AFFECTING FIRM BOUNDARY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 25 Web 2. 0 and Cloud Computing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 31 Porter’s 5 Forces Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 35 1. Cloud ComputingCloud computing refers t o the provision of computing resources like computing power, applications, computing infrastructure and business processes in manner that is scalable as per requirement and can be shared in order to gain economies of scale. These provisions are delivered as a service over the internet (or any other electronic network) and the service can be accessed by the end users via a computing device. The data and application related information relevant to the end users business/personal needs is stored on remote servers.The term ‘cloud’ is used for the abstraction of the complex network infrastructure that is used for providing the service. [1] Figure 1. Logical Diagram for Cloud Computing: [2] Office building analogy for cloud[4] A more effective way to explain the concept of cloud computing is to compare it with an office building. An office building can accommodate multiple companies belonging to different types of industries. Although some companies can go for privately manag ed maintenance/servicing of their own office, it will be extremely economical and cost effective for all companies to go for shared services that are used by all.These will mostly comprise of some essential and fundamental utility services. Likewise, Cloud computing enables sharing of the computing resources, management of which by a single company could be taxing and uneconomical. The flexibility, immediate availability and cost effectiveness of the maintenance, hardware and platform development offered by cloud computing can be compared with the electricity coming out of every wall of an office building, the underlying technical aspects being abstracted from the user. Figure 2: Cloud computing compared to shared office space[4]Players in the Cloud computing world: [1] Vendors: Provide applications and enabling technology, infrastructure, hardware, and integration. Partners: Collaborate with the vendors and provide support services to customers. Business Leaders: Either use or eval uate various types of cloud computing offerings. Types of Cloud computing services:[3] Private Cloud: The cloud is owned by a particular customer with the required infrastructure and technology residing either on-site or off-site. This type of service is costly but provides better security.Public Cloud: The cloud is owned by a large organization or company specializing in cloud computing services. The cloud can be rented for use to anyone willing to pay for it. It is the cheapest type of cloud computing service but because of its public nature it is deemed to be less secure. Hybrid Cloud: It consists of multiple private and public clouds. 2. WHAT ARE THE NECESSITIES OF CLOUD COMPUTING? 1. Information Technology penetrated in day to day life very fast With the starting of Internet era, most of the people and majority companies in the world became dependent on the services you could get to with a click of the mouse.The best example may be the free email (Gmail/Yahoo mail), the chat te chnology (Yahoo Messenger), Social Networking websites (YouTube, Facebook, Twitter). One can’t imagine life without them. That’s where the cloud was born. You need cloud data centers to run that stuff. 2. Cheaper source of Technology One may look for quality or ease of access but in the end the main thing that’s at the top of everybody’s mind is the economy. Cloud data centers are fundamentally different because they are built for very large user numbers and for a particular focus. Traditional data centers cannot compete on cost.In fact it’s no competition on the cost front. 3. Go Green In the scenario where environment is one of the biggest concerns, cloud computing seems as a perfect option as there is no paper etc required. The data is saved over internet as digital signals. Nowadays digitization of everything is becoming a trend among all top multinational companies. 4. The never ending and always expanding data The data is ever increasing and it probably always will. It seems to grow at about 60% a year and it doesn’t pause for breath. It won’t stop, even if you cry at it.But like old email, you never access most of the data and at the same time you also don’t want to delete it. So saving it all in the cloud makes sense clearly. 5. Unlimited Access This is almost impossible to stop users accessing anything they want on the Internet. One may be able to blacklist some web sites (adult sites etc) but one can’t want to prevent users from finding useful capabilities on the Internet. And those are cloud apps by any definition. There’s a wealth of it and it’s a boon to us. 6. No need for continuous software development Cloud computing is the best way of software development.There was always two types of software development; the mission critical stuff that gives us business traction, and the rest. We need not to worry for it. It’s the competition that drives the software developm ent and thus making it cost effective. 7. Emergence of cloud computing as an ecosystem The cloud computing has created an environment and hence various companies and developers create applications that support this environment, just like Google which is no more a website but an ecosystem. [4] 3. What are the needs of PaaS, IaaS, SaaS (Cloud Families)? PaaS: What is it? [5]The way of renting hardware, operating systems, storage and network capacity over the Internet is called PaaS(Platform as a Service). It allows the customer to rent virtualized servers and associated services for running existing applications or developing and testing new ones. Features:[8] 1. All the services needed in the process of making an application like developing, testing, deploying, hosting and maintaining applications is integrated into the same platform. 2. It is very user friendly as different user interfaces can be easily created using various web tools available in PaaS. . Various users can simultane ously use the same application process because of it’s â€Å"tenant architecture† feature. 4. It is used for billing and subscription management. 5. Integration can be done via common standards with web services and databases. 6. It has built in feature to handle load balancing and failover. Revenue: Figure 3[9] Players: Amazon, IBM, Microsoft, Rightscale, Wipro, Adobe, Oracle, Vmware, TCS, Sales Force, Google, VirtuStream, NetMagic. Which industry can use it and why? [11] Telecommunications industry can use PaaS.With the advent of 3G and popularity of Mobile VAS, PaaS products like Flypp that enable telcos with faster go-to market applications and reduce risk and operational overheads are predicted to see increased adoption. SaaS: What it is? [5] The model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet is known as SaaS (Software as a Service) Features[8] 1. 2. 3. 4. It is used in commercial applications for accessing web It has a central hub for software management It uses the star network model for oftware delivery It has a feature called â€Å"application programming interface† which is used to link different softwares 5. Time to time upgradation of software and recovery of system patches is not required to be monitored by the SaaS users. Revenue Figure 4[9] Players: IBM, Microsoft, Synage, Wipro, Oracle, Vmware, TCS, Salesforce, Google, VirtuStream, NetMagic. Which industry can use it and why? [11] Healthcare industry can use SaaS. With medical tourism flourishing, India is slowly becoming a haven for healthcare services.Healthcare industry is also advancing its IT platforms to touch the global standards. This industry’s key worry of system consolidation can be addressed by SaaS solutions. Iaas: What it is? [7] A model in which an organization outsources the equipment used to support operations, including storage, hardware, servers and netwo rking components is called IaaS (Infrastructure as a Service). The service provider owns the equipment and is responsible for housing, running and maintaining it. The client has no obligations and he only pays on a per-use basis. Features:[8] 1.Dynamic scaling can be done 2. It allows access to multiple users on single hardware 3. It is based on the model of utility pricing and hence has a variable cost 4. Resources are distributed as a service. Revenue Figure 5[10] Players: Amazon, Go Grid, Wolf Frameowrks, Microsoft, Rightscale, Wipro, Oracle, Vmware, TCS, Google, IBM, Net Magic, Reliance Data Centre. Which industry can use it and why? [11] Government and public sector can use IaaS. With current e-governance initiatives driving on a PPP model, immense investments are being made on the IT infrastructure front.For projects like Aadhaar, the UIDAI is contemplating on the adoption of a cost-effective cloud based model that can provide effective and scalable processing of large databas es. 4. Pricing Models Elastic pricing or Pay-as-you-Use model Elastic pricing model is a model that incurs less wastage and lower costs as under this system customers are charged based as per their usage and consumption of a service. As the users are keenly aware of the cost of doing business and consuming a resource (since it’s coming from their pockets) therefore the awareness of cost and selective usage is quite prominent.When to use it? 1. When there is Unpredictability of resources . 2. When there is limitation of budget. Fixed or Subscription based pricing The simplest pricing option where the customer organization is billed on a fixed monthly basis is known as fixed pricing. The consumer is billed the same amount every month without consideration for actual usage. When to use it? 1. When requirements are well defined. 2. When more control over the budget is required. 3. When it is required to use the cloud for a longer periods. Spot pricing for cloud It is a new concep t in cloud computing, where market forces will decide the pot pricing model i. e. , when the demand of computing and storage resources is higher than the price of services will be higher and vice-versa. Cloud chargeback Customers are charged on the basis of usage. Benefits of this model are: 1. 2. 3. 4. Resource utilization can become more visible. Forecasting, budgeting and capacity planning can be facilitated. It encourages the use of new emerging technologies. It facilitates justification and allocation of cost to their stakeholders and business units. Adoption of cloud computing models in India Findings on the basis of survey done by E&Y recently: 1. 2. 3. 4.Annual contract based modelling is mostly opted by large enterprises. Resource based usage model is adopted by SMB segment in majority. Potential customers are not satisfied with single pricing model. Pricing structures offered by vendors should be easy to understand, transparent and cost efficient. Figure 6 [61] 5. PESTLE A nalysis Figure 7 Political Regulations Even with Internet’s rise to the Horizon, it took many years for policy makers to set up common norms and procedures regarding the internet’s usage. With the current popularity of cloud computing policy makers are more proactive in addressing technological changes.Regulations are still at a very nascent stage for Cloud computing: There are various government policies involved in that need to be incorporated by vendors to successfully implement cloud. There are various issues like security, privacy, location and ownership of data, that hinder the growth of cloud computing. Some vendors like Amazon Web Services have addressed certain issues by deploying local infrastructure in main markets (US and EU). [12] Government projects Cloud computing has the potential to provide good level government service deliveries to the people despite the government agencies suffering from resource constraints.US government has an estimate to spend al most USD 20 billion on cloud computing related products. Figure 8[13] The federal government has a complete cloud related strategy that can be described below. ? Develop a decision framework that can be used to migrate services to cloud ? Find the services that can be migrated to Cloud and their time frames ? Calculate the resources required to move the services to cloud. Figure 9[13] Economic Various multinational companies have reduced their IT spending in lieu of the economic slowdown that has hit the economy hard. JP Morgan recently cut their IT spending. 14] Cloud computing helps cut costs in following ways ? By lowering opportunity cost of running technology. When it comes to technology only 20% of the time and effort goes into running technology which is where all the value lies. By using Cloud computing the 80-20 can be reversed as time required to manage the OS and hardware gets considerably reduced. ? Capital expenditure shifts to operating expenditure. Figure 10[15] ? Ren ewed focus on core activities With the movement from traditional operation to cloud, A company gets a lot of time focus on its core activities. Recently, Netflix moved on to the Amazon Cloud service (AWS EC2).Social Figure 11[18] Internet has been the most disruptive social phenomenon of the past couple of decades and has found its use in both professional and personal activities. The number of internet users is close to 2. 23 billion[18] and growing. Figure 12[12] Internet users Since cloud being an internet based technology its adoption has a greater probability. The future generation will no doubt be connected through the internet for both personal and professional lives. Social media has grown from strength to strength and now even companies are focused towards the use of social networking to find opportunities for their growth.Technical Technology has taken great strides over the last 2 decades and IT infrastructure and service sharing has become a great source of growth for so me companies. With high speed of internet, low connectivity issues, higher security standards and modularization of environments, it has become easier to implement cloud. Figure 13[12] IBM IT Transformation Roadmap The IBM IT transformation road map suggests how the IT has transformed over the years and it is headed straight towards the adoption of cloud computing on a major level. LEGAL There is currently no legal framework designed for the adoption on cloud computing.There are local regulations on free flow of information between countries. Figure 14[16] There are a few questions that are raised by the law structure when cloud is being implemented. 1. Who is the controller? 2. Which law is applicable 3. Transfer outside the country? The future of legal policies appear uncertain and they can easily keep a lid on growth of cloud computing Environmental IT contributes 2% of the world’s CO2 emissions in the world which is the same as the Airline industry[12]. Other than CO2 emi ssion IT produces 2 million tones of electric waste as well.Cloud Computing is one of the ways to reduce the environmental impact of IT industry. Most of the electric waste would become obsolete with the evolution of cloud computing. Figure 15[17] Total PESTLE Impact Diagram Figure 16[12] 6. Technological Infrastructure required for Cloud Computing Following Infrastructure is needed for Cloud computing: 1) 2) 3) 4) Computing Infrastructure Network Infrastructure Storage Infrastructure Linking Infrastructure a. Linking to Network b. Linking to Storage Depending upon the service required (IaaS or PaaS or SaaS), these infrastructure elements can be owned by the client or the Cloud service provider.As per the CIO. com article are as follows: [1] , there are seven important aspects of any cloud infrastructure, these 1) Heterogeneous System Support Other than leveraging the latest software and hardware systems, the cloud infrastructure should also be compatible with the legacy and traditi onal systems of the organization and should also support the existing infrastructure. 2) Service Management In order to make the cloud offering successful, the cloud service should be able to provide proper resource (e. g. CPU cycle or storage etc) guarantees, transparent metering rules of the service and proper billing cycles.Also, the service should be able to be managed and deployed easily and quickly. 3) Dynamic Workload and Resource Management For providing truly on demand and virtualized services, it is important for any cloud infrastructure to manage the resources and workload as per the required service level agreement to the consumer. And hence in case of peak load, prioritize resources in order to be highly efficient and performance driven. 4) Reliability, Availability and Security Reliability, Availability and Security are important aspects of any service, whether it is provided through cloud or through the traditional model.Hence any cloud infrastructure should provide a smooth transition to the cloud service without compromising on any of these aspects of the system. 5) Integration with Data Management tools It is possible that cloud computing management solutions do not fully take the place of the traditional systems and data centers. Hence the cloud infrastructure should be able to integrate with these out of the box systems and data centers to provide a hassle free service to the clients. 6) Visibility and Reporting An important feature of the cloud service is the ‘pay as per-use’ facility.Hence to fully achieve this objective, the cloud infrastructure should support detailed levels of visibility and reporting regarding the usage, service level agreements, compliances, system and network performances, billing schedules etc. 7) Administrator, Developer and End User Interface Most Cloud infrastructures provide user interfaces and portals to hide the cloud service complexities from the end user and in a way also provide the ability to manage these cloud services in a simple yet comprehensive way. [19] 7. Cloud Computing – Drivers Vs Inhibitors Inhibitors for Cloud ComputingA report published by IBM [20] (IBM Academy of Technology, Thought Leadership White Paper, October 2010) based on the survey conducted on 110 Cloud implementation Projects, revealed that the major concerns for implementing Cloud were issues involving security, lack of perceived value proposition by the customers, lack of standardization and lack of funding for implementation. Some of the other factors include- complexity concerns, lack of skills, concerns about reliability and availability of cloud, technical immaturity etc. Figure 17 Source: IBM Academy of Technology, Thought Leadership White Paper, October 2010 [20]Security [20] Security is one of the major concerns specially in public cloud implementations. Most customers are worried about the privacy and integrity of their data. The concerns may increase even more if the cloud is sh ared among other customers, who may be your competitors. Hence according to the IBM survey most companies are interested in implementing the private cloud (instead of going for the public Cloud). Standardization [20] As Cloud Computing is an emerging technology, the processes and implementations are not yet standardized.Each of the Cloud implementers provides their own solutions. There are no industry wide standards yet developed for Cloud computing. Hence this lack of hardware requirements, software, operating system and processes act as an inhibitor for implementing cloud. Value Proposition [20] Implementation of Cloud is much easier if value which it provides in terms of meeting the business requirements and cost benefits can be explained to the customer. Hence lack of tools and models that assist the customers to calculate the return on investment and value proposition pose a deterrent in cloud implementation.Complexity and Integration [20] Most customers today run a host of app lications including numerous legacy tools. Customers are looking integrated solution for all their applications from the cloud providers. Hence the doubts over integrating all solutions and also reducing complexity are one of the concerns of the customers in implementing cloud. According to Keane White paper [21] on â€Å"Cloud Computing – Clear thinking about its risks, benefits and success factors† impediments to cloud Adoption are as follows: 1) 2) 3) 4) 5) Security Privacy / Compliance Immaturity of vendors / Offerings Risk Mitigation Legacy ApplicationsDrivers for Cloud Computing BENEFITS [20] The study conducted by IBM based on 110 Cloud implementations revealed following results: ? ? ? Around 80% of clients acknowledge benefits in sharing of IT resources through highly virtualized infrastructure by implementing cloud. Around 60% achieved ease-of-use through self service with rapid delivery. Taking about public clouds specifically ? ? ? Ease-of-use is 85% (as com pared to 60% overall by both public and private cloud users) 68% benefit from pay-as-you-go Charging model 63% benefit from Internet / Web based CloudFigure 18 Source: IBM Academy of Technology, Thought Leadership White Paper, October 2010 [20] According to Keane White paper [21] on â€Å"Cloud Computing – Clear thinking about its risks, benefits and success factors† benefits of Cloud solution are as follows: 1) 2) 3) 4) 5) 6) Cost Capability / Scalability More Green Organization Agility Collaboration Focus According Deloitte report on â€Å"Cloud Computing – Forecasting Change – Market overview and Perspective† [22] Figure 19 Source: Deloitte Report on Cloud Computing – Forecasting Change – Market overview and Perspective [22]Deloitte’s perspective on perceived and real impact of cloud Inhibitors [22] Figure 20 Source: Deloitte Report on Cloud Computing – Forecasting Change – Market overview and Perspective [22] 8. Global cloud computing market size& Future growth According to the report called â€Å"Sizing the Cloud† of independent research firm Forrester Research the global cloud computing market would fetch the $241 billion by 2020[1] as compared to $40. 7 billion in 2010. It could be possible cause of rapidly growing of cloud computing services.Figure 21 According to this report, Software-as-a-service(SaaS) would have a significant share in the total revenue. This segment would offer more opportunity growth than any other segments. The SaaS would have the leading position in the Cloud Computing market by holding the $92. 8 billion by 2016[23]. According to IDC by 2015[24] nearly 24% of the software purchaseswould be service enabled software. SaaS delivery will have the share of around 13. 1% of worldwide software revenue and 14. 4% for applications. Global Corporate Mobile SaaS Market will be at $1. billion in 2011 and will grow to $3. 7 billion by 2016 with Compound annual growt h rate of 25. 8% according to latest Strategy Analytics Wireless Enterprise Strategies. It will be possible by integration of business application on smartphones, tablets and other wireless devices[25]. Deloitte has estimated that cloud based usage will replace 2. 34% of IT spending in 2014 and further it will rise to 14. 49% in 2020[26]. Figure 22[26] Cisco’s Global Cloud Index forecasted that the transition of workloads from traditional data centres to cloud data centres will exceed in 2014.This year would be the crucial year when workloads through cloud data centres (51%) would be higher than the traditional data centres (49%) for the first time. If this trend would be continued then cloud workloads would be dominating to the traditional work load by 2015. The Compound annual growth rate expected to be at 22% during 2010-15[27]. Fig 23[27] According to Gartner, Insurance industry would have a higher rate of cloud adoption (34%) compared to their enterprise counterparts (27 %) in the Small & Medium Business (SMB) category. Fig 24[28] Complete analysis of Cloud Computing in Asia [8]Fig 25[30] Indian Market In terms of market size, Indian market holds only $990 million compared to global market $ 109 billion7. It is predicted that India would be having market of $3-4 billion by 20157according to Zinnov Management Consulting. On the other hand Nasscom and Deloitte consulting estimated that Indian market would be worth of $16 billion by 20207. It is also estimated that India would have a huge potential growth in future cause of millions of Small & Medium Business who are not able to afford to invest in the expensive business software solutions.Vishnu Bhatt, head of cloud services at Infosys says that, â€Å"About 60 per cent of enterprise workloads will be on the cloud in five years, from the current nonexistent levels†. Four different types of market opportunity are there in the India. Roughly 25 per cent of the Indian market is in â€Å"private c loud† business cause of security reasons. Other three opportunities lies in the â€Å"public cloud† as Saas, PaaS, & in Iaas. Independent software vendors (ISVs) like†Infosys, Wipro etc. † are the middle players who serve to small clients from the big players like Microsoft and Salesforce.The entire cost is borne by the end users, on an average the ISVs make around 20-30 per cent of the total revenue. Around 3000 ISVs are there in India and nearly 1000 of them have tied up with the Microsoft and Salesforce. So we can say Indian cloud market mostly depend on the ISVs[29]. 9. CLOUD COMPUTING AFFECTING FIRM BOUNDARY Start-ups Cloud computing reduces initial investments of the start-ups by reducing capital investment in a data center. In cloud computing the infrastructure for data storage is provided by the cloud providers which help start-ups in reducing their investment.Cloud computing does not eliminate the development cost but helps start-up companies to foc us on their core competency without hiring people with expertise. Cloud computing also helps different software companies (start-ups) to expand their offering by partnerships with big firms (exa-IBM). [32, 33] Due to this lowered capital cost the companies were able to prove their products on less initial capital. . In 2011, 1339 companies received a total of US $5. 8bn in first-time financing (an increase of 7% in capital raised and an inc of 19. % in deal numbers, compared with the same period in 2010). The data shows that Venture capitals are taking interest in investing on these small amounts since the risk is low. This helps the entrepreneurs in cracking more deals as supported by data. [34] SMB’s Cloud computing will help SME’s in modeling their business. Since it is cost effective, now companies are targeting these small and medium size businesses. These firms were not able to implement ERP due to high cost and lack of IT infrastructure. Now due to cost cut of t he infrastructure they can use cloud for their business. iON will enhance India’s global competitiveness by giving 35 million Indian SMBs access to world-class, simple-to-use and scalable technology tools. SMBs can use the power of iON to build their business advantage and compete on the global stage,† said N Chandrasekaran, chief executive officer and managing director, TCS, and chief architect, iON, in a statement. [35] The table below shows the share of small & medium businesses in different countries. In India Tata Consultancy Service is targeting $1 billion revenue from these small and medium businesses firm [36] over five years.Figure 26[37] A survey taken from Zoomerang (in April 2011) for small and medium businesses has shown that 77% of the small and medium businesses are not using cloud computing for their businesses and 52% of them will use cost effective IT management and maintenance sources. Figure 27 [39] A report published by Microsoft has shown that ther e is high potential for cloud adoption in SMBs. As per the report the number of companies with between 11 and 25 employees will potentially double till next wave.In 101 – 250 employee segment 33% companies will adopt cloud in the next wave. [38] Figure 28[38] Cost effectiveness of cloud computing will help startups and SMB’s in adopting it ,which in turn will help them in making their process efficient and as the result â€Å"SMBs will be able to challenge big businesses†. [40] Venture Capital Investment The diagram below shows the growth of public cloud and its comparison with the overall IT. The public cloud services are growing strongly with a rate of 18%, which is a positive sign for the companies providing cloud services. 42] This growth is also attracting the Venture Capitalist. Currently, not much of the investment is done on this sector and there is a strong chance of investment. [43] Figure 29[42] Venture capital is also affected by government regulatio ns. A report published by Josh Learner shows the impact of copyright policy changes on Venture capital investment in cloud computing companies. The data provided in the table in Appendix A has shown the investment of venture [41] capital quarter wise for cloud service firms in U. S. A. Figure 30[41]The figure below shows the ratio of investment in cloud computing companies to investment in all IT companies. A drastic change can be seen in the graph after the copyright policy changes. [10] Figure 31[41] A survey taken in 2012 by Deloitte regarding global trends in venture capital shows the confidence level of investors of different countries in different industries. The first graph shows the confidence level of venture capital investment sector wise and the second graph shows the confidence level of respondent’s country in cloud computing. 44] Figure 32[44] Figure 33[44] According to the article of NASSCOM Deloitte â€Å"Deconstructing the cloud – The new growth fronti er for Indian IT – BPO sector† cloud computing will affect by making (below points are directly taken from the article) [40] Lines blur between consumer and enterprise IT – Initially innovation was driven by enterprises but now trends have been changed and innovations are driven by customer segment also e. g. blogging, social networking and cloud is fast helping merge this divide between consumer and enterprise. IT drives arket-facing differentiation for businesses – Cloud will be a net positive impact on existing service lines while opening up new â€Å"product† opportunities Cloud have a net positive impact on existing service line revenues, though traditional IS outsourcing and testing service providers will have to re-invent existing models Uptake will vary across industries because of different drivers and barriers Cloud will alter the industry landscape – commoditization of IT through cloud computing will reduce entry barrier bringing s ome new breed competitors.Partnerships and alliances will be key to succeed in the Cloud ecosystem [40] 10. Web 2. 0 and Cloud Computing Web 2. 0 and Cloud computing have changed the way we develop, deploy and use computer applications. The World Wide Web had seen a transition from traditional publishing model to the new collaborative information creation model. [45] Web 2. 0 uses network as a platform for sharing information, creating content, & making a virtual community, in contrast to the websites where users can simply read the text (passive viewing of content). Web 2. includes some of the most widely known and used applications blogs, social networking sites, YouTube, wikis, Twitter, web applications etc. [46] Figure 34: Web 1. 0 & web 2. 0 Structure [47] Cloud computing services in nature are Web applications which deliver desirable computing services on demand. It is thus a natural technical evolution that the Cloud computing acquires the Web 2. 0 technique. [50] Cloud compu ting defines the way the applications are deployed. It offers infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).As per the requirement of resources, the processing power and memory gets allocated in an elastic manner. [45] The cloud is often misinterpreted as a combination of clusters and grids. However, in reality, clouds are next-generation data centres which are dynamically provisioned as per the user demand used for personalized resource collection for fulfilling specific user needs and accessible through â€Å"Web 2. 0† technologies. [51] Web 2. 0 and Implications on cloud computing Web 2. 0 contributes to the front end of the business, cloud computing contributes to the back end of the business.Combining both, web 2. 0 & cloud computing, both front end as well as some of the back end of the business can be outsourced. The work can be performed from anywhere, teams may not be at the same location thus collaborating the inf ormation using, web 2. 0 tools, cloud, mobile technologies. This is the concept of virtualized organizations. [53] Statistical Support David Osimo shows how web 2. 0 applications have grown masively. He uses the data from Technorati, Wikipedia, Myspace, Youtube and Nielsen-Netratings for analysis.His findings can be seen in Figure 2.. [10] Figure 35: Growth of Web 2. 0 applications [54] Cloud computing is addressing two different market needs [50] 1. Large scale web applications (‘web 2. 0 markets’) – scale-out cloud E. g. Google Traditional data centre computing (‘enterprise market’) – server clouds E. g. Microsoft 2. Figure 36: Evolution of World Wide Web [48] Cloud computing is integral to web 2. 0. It brings all sorts of user data along with operating system online and enables content sharing platform making the use of storage devices unnecessary.Web 2. 0 provides the collaborative functionality that helps in sharing documents and making c hanges on a real time basis regardless of their locations. This along with cloud computing allows for online storage of data avoiding the use of hardware, data centres as well as software replaced by online web applications like Google documents. There can be two kinds of customers for cloud [49] Those that need to scale up (achieve higher scale) at low costs 2. Those that want to eliminate data centre model and choose pay-as-you-go model 1.Many technologies like grid computing, peer to peer computing contribute directly to cloud. Thus, web 2. 0 provides users the capabilities of easy sharing and accessibility of data with anyone, from anywhere. Applications like Google doc, face book are managed by cloud storing huge amount of user data at one place and making it readily available to everyone anytime. These applications are one type of services, software as a service. Users have their own hardware at place, and use their own platform to run these cloud applications. The software re sources like application servers, database servers, IDE etc. re not required. Other kind of services include application as a service where users have their own hardware at place and rent platforms from cloud to develop customized software. Finally infrastructure as a service means the complete virtualization of business with storage at cloud. Hardware and computing also need not be performed at the site but takes place in cloud. Resources like storage, computing power are not required. [52] With the advent of web 2. 0, cloud computing got a boost as people could create and access any amount of information without having to worry about its storage.Google is the best example. It provides many services and applications like, Google doc, spreadsheet, YouTube all of which are cloud based and help sharing information on a real time basis. The real time sharing of knowledge is what is made possible though combination of the two. Cloud is incorporated in the next version of web 2. 0 retain ing the features of web 2. 0 and adding new ‘elasticity’ to the whole application or business deployment. 11. Porter’s 5 Forces Analysis Threat of new entrants ? ? ? ? Low barriers to entry Relatively lower development costs Low fixed costs Huge potential marketBargaining power of suppliers: ? ? High for few big players. Can depend on the type of service provided. Bargaining power of buyers: Existing competitive landscape ? ? Intense rivalry. Presence of big, small & niche players. ? ? Dependent on the size of the buyers. SMEs’ power can increase with standardization of offerings. Threat of substitutes: ? Mild threat from open source computing Figure 38 1. Existing competitive landscape: The Cloud computing market comprises of both small and big players causing intense rivalry.But there is a large variety in the type of products and services required by customers and so there is room for big, small and niche players. There are the big players providing end -to-end services like IBM, Amazon, Microsoft etc, pure players like Salesforce and niche players like Dell-BOOMI (specializes in Cloud Integration), Rackspace (leader in managed hosting services) and small players like Zenith. [55][56] 2. Suppliers’ bargaining power: Since there is a huge potential for demand from SMEs and few big players like Google, Amazon and IBM, the bargaining power of suppliers is quite high.Bargaining power could vary according to the type of service provided. E. g. In case of an IaaS service, switching cost for customers might not be very high since the offering is largely undifferentiated, but same cannot be said for a SaaS offering. Also there are is no clear rule of law for regulation of the data stored on the cloud. Data stored on the cloud could be subject to less stringent action by the regulatory authority than that stored on a personal computer. This could make the switching costs for the customers quite high. [57][58] 3.Buyer’s bargain ing power: Bargaining power of buyers can be said to be dependent on the size of the buyer’s business. In case of SMEs, the bargaining power can be said to be low since many of the suppliers in the cloud computing market are large corporations. Whereas the buyer’s bargaining power can substantially dominate the supplier if the buyer itself is a large organization. The bargaining power of SMEs can increase if with the standardization of the services which will be facilitated with establishing proper regulatory compliances. [57] 4. Threat of new entrants:With the huge potential market among the SMEs, it is expected that many new entrants from the SME segment itself will enter the Cloud computing market with low cost offerings. This expectation lies on the fact of low fixed costs, relatively lower costs of developing a product and low barriers to entry. [57][59][60] 5. Threat of substitutes: Open source computing can be considered as a substitute for Cloud computing servi ces. But it can be expected that the SMEs will prefer Cloud computing over open source due to higher switching costs in case of open source and lower costs of cloud computing services. [57]References Online: 1. Hurwitz et al. , (2010) Cloud Computing for Dummies [online]. Wiley Publishing Inc. NJ. http://books. google. co. in/books? id=_TvnVbFSYsQC&lpg=PP1&ots=u7GJ5I6STG&dq=cloud% 20computing&pg=PT10#v=onepage&q=cloud%20computing&f=false http://www. google. co. in/url? source=imglanding&ct=img&q=http://files. messe. de/007/medi a/04bilder/aufloesungsunabhaengig/2011_3/cb11bielastischrechnen. jpg&sa=X&ei=jqxJULO WHsHrrQeVuoDICA&ved=0CAkQ8wc4kgI&usg=AFQjCNFaG0Yc_Ym8Uya7F3ei130cbaQbVQ 2. Jamsa, K. Cloud Computing: SaaS, PaaS, IaaS, Virtualization, Business Models, Mobile, Security and More [online].Jones & Barlette Learning, Wall Street, Burlington. http://books. google. co. in/books? id=msFk8DPZ7noC&lpg=PP1&ots=oW3KUl1HDm&dq=clou d%20computing&pg=PR2#v=onepage&q=cloud%20computing&f=fa lse 4. Trends and technologies in the CRM world. [online] http://www. allthingscrm. com/cloudcomputing/the-importance-of-cloud-computing. html (Accessed 5 September 2012) 3. 5. Search Cloud Computing. [online] http://searchcloudcomputing. techtarget. com/definition/Platform-as-a-Service-PaaS (Accessed 5 September 2012) 6. Search cloud computing. [online] http://searchcloudcomputing. echtarget. com/definition/Software-as-a-Service (Accessed 5 September 2012) 7. Search cloud computing. [online] http://searchcloudcomputing. techtarget. com/definition/Infrastructure-as-a-Service-IaaS (Accessed 5 September 2012) 8. Ben, K. (2012) ‘understanding the cloud computing stack: Saas,IaaS,PaaS’ *online+ http://www. rackspace. com/knowledge_center/whitepaper/understanding-the-cloudcomputing-stack-saas-paas-iaas (Accessed 5 September 2012) 9. Deloitte,(2009) Cloud Computing – Forecasting Change – Market overview and Perspective. [online]https://www. deloitte. om/assets/D comGlobal/Local%20Assets/Documents/ TMT/cloud_-_market_overview_and_perspective. pdf (Accessed 6 September 2012) 10. Morgan Stanley,(2011) Cloud Computing takes off. [online] http://www. morganstanley. com/views/perspectives/cloud_computing. pdf (Accessed 6 September 2012) 11. Frost& Sullivan, Cloud Computing Services. [online] http://corporate. sify. com/uploads/CloudServices-F-S. pdf (Accessed 6 September 2012) 12. Callewaert, Robinson and Blatman, 2010 Market overview and Perspective: Cloud computing. Deloitte. https://www. deloitte. com/assets/DcomGlobal/Local%20Assets/Documents/TMT/cloud

Analysis Of Katherine Mansfield s Life - 1212 Words

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