Cloud Computing
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Cloud computing has the potential to revolutionize businesses globally and in developing countries like Bangladesh. While cloud adoption is growing, there are still challenges to implementation in Bangladesh due to concerns over security, costs, and infrastructure limitations. Local IT experts believe cloud computing can be beneficial if proper investments are made in infrastructure and education to increase awareness of the technology. Cloud services may be most applicable for small businesses and applications like marketing, customer relationship management, and online ordering systems.
Cloud Computing
- 1. Copyright ©2014 ShARE. All Rights Reserved What is the global position of cloud computing and can it revolutionize todays business? 31 December 2015 IHP BY : MD. Shafiqul Islam Shuvo Confirmed Member Business Strategy ShARE : DU
- 2. Copyright ©2014 ShARE. All Rights Reserved 2 This IHP is supported by three interviews and one survey MD. Abdul Hakim Ziaur Rahman Peter HJ van Eijk • Executive – marketing and digital innovation. Golden Trade International Bangladesh. • Experienced in IT marketing for long 12 years • CEO, Soft Tech IT park. • Experienced in digital communication • Global personality for cloud computing • Experienced over 30 years in cloud computing Information about peoples perception on the use of cloud computing in their business-December 2015 Sample size 20 Total Response 20 15 5 Possible to implement Not possible to implement
- 3. Copyright ©2014 ShARE. All Rights Reserved 3 • Cloud computing is a new way of operating todays computers blended with the power of the internet. Cloud applications will account for 90% of worldwide mobile data traffic by 2019, compared to 81% at the end of last year. • There has been many controversies regarding the cloud computing especially about its security and real time processing ability as it is possible by the offline systems. • Cloud computing can be very costly as well as very difficult to implement in the developing countries. But the new emerging IT firms are making it look possible to implement the idea of cloud computing even in a developing country like Bangladesh. • Major companies of the developed world have moved to cloud based database system and they seemed to be very much satisfied with it. Some local initiatives are seen in Bangladesh as well. Specially China and Japan are now focusing only on the cloud based computing. • Googles cloud based Chrome OS and Microsoft with its Office 365 and other cloud based services marked a great importance for this new trend in the technology. But these are still not that much widely used by the peoples living in countries with the poor internet connectivity. • But the widespread availability of cheap broadband connectivity and Wi-Fi devices along with the on the go mobile 3G and 4G internet it is just a matter of time for the cloud technology to surpass traditional built in software based computing. • Of course the security issues are still a matter of concern but this is a very small opportunity cost of implementing more efficient way of doing business that is always for good. Executive Summary
- 4. Copyright ©2014 ShARE. All Rights Reserved 4 Advantages of cloud based computing that are not at all available in the traditional businesses. A typical business and a cloud based business are not at all same. They have differences in every aspects. When a cloud based business is there the opportunities are endless. It even provides maximum coverage of the potential customers which is not even thinkable in the context of the traditional brick and wall businesses. Also the power of cloud based data analytics is a blessing for todays rock solid competitions. The businesses are ever global so as the customers. Getting to know them strategically is a major shift. Source: Global Cloud Report 2015, EU • Great Support - Cloud based services provide a great customer support than traditional ones • Get Locations - It can also provide point to point direction via Google Maps to customers • Online Chat - Chatting online with the potential customers is also able in cloud apps • Accurate Services - Providing accurate services to the customers has never been easier • Perfect Ads - Based on CRM data analytics apps giving ads based on customers tastes is possible • Best Tools - Yes it provides the best apps and tools needed for a complete business solution
- 5. Copyright ©2014 ShARE. All Rights Reserved 5 Cloud computing has been growing all over the world and a huge amount of investment is visible regarding global growth in cloud computing 61% 16% 14% 3% 3% 2% 1% North America Western Europe Asia/Pacific Japan Latin America Eastern Europe Middle East & Africa Regional share of Global growth rate in cloud computing from 2012-2016 ($23 billion) • The cloud computing market is growing at a compound annual growth rate (CAGR) of 22.8% from 2014 to 2018, and will reach $127.5B by 2018.** • Enterprise spending on SaaS applications is approaching 30% of all application spending, and is currently growing at a 17.6% CAGR from 2013 to 2018.**** • By 2018, 62% of all CRM software will be cloud-based, with USA cloud giant Salesforce solidifying its market leadership position and creating better customer values to the companies using their apps. **Source: State of the Cloud Report 2015. Forbes
- 6. Copyright ©2014 ShARE. All Rights Reserved 6 It is the power of cloud computing that is now the only focus of big tech giants but this is not still a matter of great concern for small firms • In recent years the social media concept changed the way people do their businesses and interact with each other. So the tech giants are providing free of cost social media marketing ground for almost all the companies out there. As a result big companies don’t feel the necessity of building their own clouds rather go for the already available ones. • Alibaba.com has understood this idea very well and they have started to bring a lot of free cloud based services to China. As a result it got huge popularity in China and very recently it has entered into USA cloud market to look for better customers. Oracle social media cloud is a new dimension to the way we actually want to deal with everyone in this sophisticated business world. Social cloud mainly delivers the true power of social medias into the palm of user by the smart apps. Source: The economist, 2014 September issue
- 7. Copyright ©2014 ShARE. All Rights Reserved 7 USA is now pioneering the cloud based customer relationship management and has the best companies providing it. • Salesforce.com the #1 admired software company in the world that started its journey 16 years back from today is now just in simple word a cloud based company. • Microsoftcloud.com is the one single portal today that represent how well software-as-a-service phenomenon can be nurtured in a day to day life. • Oracle has almost seven different categories of SaaS packages that are well designed to meet the demands of almost every typical business. • Amazon.com most advanced online retailing company with the cloud in its core business process. 0 1 2 3 4 5 CRM HR Saas Cloud service providers go head to head in USA salesforce microsoft google
- 8. Copyright ©2014 ShARE. All Rights Reserved 8 Cloud Computing is now the common trend in Chinese Businesses • China is on the fast track of adopting platform innovation, big data technologies, mobility and e-commerce • Internet giants will expand from their existing SMB SaaS offerings to a broader set of business applications and services. This will position them as strong cloud services providers, along with telecommunications carriers, IT companies and network equipment providers. • The map covers the major three players of cloud computing in China.
- 9. Copyright ©2014 ShARE. All Rights Reserved 9 Cloud based Marketing Business Navigation Social Engagement Cloud Advertising Five common uses of cloud computing in a typical business process Cloud computing can be seen as a five step process for a business organization and can be modified as required Five steps that we have illustrated above can be regarded as how Software-as-a-service (SaaS) program of cloud computing can be used in the modern businesses. Starting with the typical social cloud marketing to Cloud advertising, cloud computing has the big advantage of combining the biggest challenges of firms into a single server. Online CRM and Order Processing Source: HBR 2015, August issue
- 10. Copyright ©2014 ShARE. All Rights Reserved 10 Cloud is new but it is very common in different names to the peoples Still the corporate cultures in small and medium enterprises are not in favor of cloud computing Messages • IT based education is mandatory • Consciousness about the new and ever changing cloud computing technology. • IT infrastructure and govt. support is poor in Bangladesh. Quotes “Actually the concept although is very new to us but we do believe that people are already very familiar with most common cloud services in a very different way. But the change in the whole concept will depend on IT education also.” - Ziaur Rahman, CEO, Soft Tech “I think our company is very secured with the present system. Cloud based CRM and other applications are very costly for us and we are not guaranteed about the security issues regarding it. But if the govt. gives subsidy and the infrastructural development is done properly then of course we will give a try.” - Abdul Hakim, Marketing Executive, Golden Trade Int. BDSource: ** ShARE interview Cloud computing is a new idea to Bangladesh but IT experts do believe that proper utilization of infrastructure and cost effectiveness can be game changer • Implementing the cloud services is a matter of huge primary cost. • Most of the businesses can avail pirated software at the lowest cost so they don’t feel the necessity of going over cloud based applications or software's. • Govt. itself is not that adapt to handle security related issues concerning the cloud computing that’s why peoples are also negative in their opinions.
- 11. Copyright ©2014 ShARE. All Rights Reserved 11 Interview with Peter HJ van Eijk on the current situation of cloud computing in a developing country like Bangladesh and future potentialities of cloud services What is your view regarding cloud computing in Bangladesh? “Well thank you for this important question. This week I wrapped up training new instructors for Cloud Essentials and Virtualization Essentials in Dhaka, Bangladesh. At first glance there is little doubt that this country can benefit. After all, cloud computing and virtualization promises lower cost and faster deployment than traditional IT. And developing countries have little money to spend and no time to lose.” In Which areas do you think Bangladesh can work on regarding cloud? “Well before I answer this question I would like to point to the recent initiative of Bangladesh govt. regarding G cloud. I think ministry for ICT has taken a very good step regarding the issue. Bangladesh already has a network of computer classrooms at the regional level. A new government network is scheduled to bring Internet connectivity to more than 14.000 offices. Half the people have mobile phones already and smartphones are on the rise. I have been told that there is a successful process of local teachers producing local content for their students. So this one of thousand potential areas where the cloud computing can be implemented.” Can local software companies can do anything regarding this issue? “Definitely as I’ve mentioned you earlier the huge amount of content on education is needed. I foresee a model where private companies, with some government support, develop innovative local learning solutions to tap into teacher generated content to improve learning efficiency for local students.” Source: ** ShARE interview
- 12. Copyright ©2014 ShARE. All Rights Reserved 12 Q&A