Cloud computing is a set of services that provide infrastructure resources using internet media and data storage on a third party server. SMEs are said to be the lifeblood of any vibrant economy. They are known to be the silent drivers of a nation's economy. SMEs of India are one of the most aggressive adopters of ERP Packages. Most of the Indian SMEs have adopted the traditional ERP Systems and have incurred a heavy cost while implementing these systems. This paper presents the cost savings and reduction in the level of difficulty in adopting a cloud computing Service (CCS) enabled ERP system. For the study, IT people from 30 North Indian SMEs were interviewed. In the cloud computing environment the SMEs will not have to own the infrastructure so they can abstain from any capital expenditure and instead they can utilize the resources as a service and pay as per their usage. We consider the results of the paper to be supportive to our proposed research concept.
Deep Dive into Scope of cloud computing for SMEs in India.
Cloud computing is a set of services that provide infrastructure resources using internet media and data storage on a third party server. SMEs are said to be the lifeblood of any vibrant economy. They are known to be the silent drivers of a nation’s economy. SMEs of India are one of the most aggressive adopters of ERP Packages. Most of the Indian SMEs have adopted the traditional ERP Systems and have incurred a heavy cost while implementing these systems. This paper presents the cost savings and reduction in the level of difficulty in adopting a cloud computing Service (CCS) enabled ERP system. For the study, IT people from 30 North Indian SMEs were interviewed. In the cloud computing environment the SMEs will not have to own the infrastructure so they can abstain from any capital expenditure and instead they can utilize the resources as a service and pay as per their usage. We consider the results of the paper to be supportive to our proposed research concept.
Today is the age of information technology. The facets of work and personal life are moving towards the concept of availability of everything online. Understanding this trend, the big and giant web based companies like Google, Amazon, Salesforce.com came with a model named "Cloud Computing " the sharing of web infrastructure to deal with the internet data storage, scalability and computation (Kambil,2009). According to the definition by NIST "Cloud computing is a model for on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction".
Cloud computing is an online service model by which hardware and software services are delivered to customers depending upon their requirements and pay as an operating expense without incurring high cost (Bandyopadhyay et al, 2009). Basically cloud computing is a set of services that provide Infrastructure resources using Internet media and data storage on a third party server. It has three dimensions known as Software level service, Platform level service, Infrastructure service (Fox, 2009).
The main cloud computing attributes are pay per use, elastic self provisioning through software, simple scalable services, virtualized physical resources (Tucker). Models, such as cloud computing based on Virtual technologies enables the user to access storage resources and charge according to the resources access (Marcos et al, 2009). Cloud computing platforms are based on utility model that enhances the reliability, scalability, performance and need based configurability and all these capabilities are provided at relatively low costs as compared to the dedicated infrastructures (Wyld, 2009). Benefits provided by cloud computing ranges from cost savings to speed and flexibility to enhanced performance (Veverka,2010).This new model of infrastructure sharing is being widely adopted by the industries (Hartig,2008). Industries experts predicts that cloud Computing has bright future in spite of changing technology that faces significant challenge (Leavitt, 2009). The report from IDC says that due to the emergence of cloud computing, IT marketplace is undergoing a change and it expects that investment on cloud services will reach to $42 billion by 2012.
India is growing at faster pace in information technology sector thereby showing a great potential for the cloud computing services. According to Springboard Research report (Jan 2009) SAAS India i.e. software as a service in India will register a compounded annual growth rate of 76% in the time period of 2007-2011. Cloud computing services has huge opportunity in Indian market due to the large number of Small and Medium businesses (SMBs) which is at around 35 million and they want easy to use , reliable and scalable application that helps them to grow and expand their business. This makes India as the fastest growing SAAS market in Asia Pacific region. According to Jeremy Cooper, VP-Marketing (APAC), Salesforce.com ‘software as a service’ provider started its services in India in September 2005 and since then the adoption rate of cloud computing is increasing .Seeing SAAS success on September 2008 IBM launched cloud computing center in India at Bangalore. This center will cater to the increasing demand of web based infrastructure sharing services. IBM India collaborated with IIT Kanpur to come up with some new developments in computing that will help in academic advancement. Bharti Airtel has launched the cloud computing services with their NetPc model and other giant companies like Reliance Communications, TCS, HCL technologies, Wipro, Netmagic, Verizon, Novatium etc. have also launched cloud computing services in India.
SMEs are said to be the lifeblood of any vibrant economy. They are known to be the silent drivers of a nation’s economy. SMEs are leading the way for entering new global markets and for innovations in the emerging economic order. In India 95% of the industrial units are SMEs which give over 50% of the industrial output (Popli and Rao, 2009).Thus SMEs form the backbone of the Indian economy.
SMEs of India are one of the most aggressive adopters of ERP Packages. Online services are better suited for small industries whereas large enterprises face more problems in implementation because of their complex functionalities and data security concerns (Dubey and Wagle, 2007). Small and Medium businesses have sufficient IT budgets to buy the bandwidth and pay as per their need and usage. The main problem faced by the S.M.E.‘S when it comes to traditional ERP implementation is that their requirements are limited while the product offered always exceeds their specifications in every way (including the costs). This gap between the SMEs Requirements and the traditional ERP’s specifications needs to be analyzed by the companies (traditional ERP providers) and the SMEs. It is not possible for the traditional ERP p
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