X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian IT: This 'cloud' has a golden lining! - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jun 22, 2010

    Indian IT: This 'cloud' has a golden lining!

    Cloud computing is one of the new tech industry buzzwords. And, it has taken our Indian players literally by storm. But what do these two words put together mean, and what potential does it have in India?

    A walk in the clouds: Understanding cloud computing
    The whole world is moving to low-cost models. From no frills airlines to self-service restaurants and now to pay-as-you go computing. Cloud computing users avoid heavy capital expenditure by renting its usage from a third-party provider. It's similar to buying electricity from the grid rather than producing your own!

    In simple terms, cloud computing is an easy and cost effective way to access data and applications via the internet. One doesn't need to drag around a heavy briefcase or even load ones email inbox with attachments. Data required can be accessed through a web browser. Both data and software are securely stored on a remotely on a server. Resources are accessed based on dynamic needs and the payment is only made for services used. For the IT industry, this model helps increase capacity without investing in new infrastructure, training, or software licensing.

    What's in it for India?
    According to a study by Zinnov Research, over 300,000 jobs will be available in India by 2015 in the cloud services sector. This currently equals the total number of employees in both TCS and Infosys! Steve Ballmer, Microsoft's CEO believes that India will lead the way both in terms of consumption and implementation of these services. Microsoft Azure, the company's venture in this space is gaining traction with Indian companies like Wipro, Infosys, TCS, HCL Technologies, and NIIT. So far, the most enrollments for these cloud services came from, guess where? India.

    The new model will even save marketing and travel costs plus increase visibility for our major tech companies. Earlier one had to physically go to meet clients and conduct software demonstrations. Soon, all one needs to do is write software code and upload it in a 'cloud'. If a client is interested in it, he just needs to click a button and test the application. He doesn't need to download or install it, preventing unauthorized use or piracy. If the client is interested, he can purchase the software online. This is similar to if you had to test drive a car. Except, you can do it virtually.

    Case study: TCS is banking the unbanked
    According to our deputy RBI governor, K C Chakrabarty all villages will have banking services by 2015. TCS has subscribed to this vision by introducing a concept called 'banking in a box'. Until recently, small banks did not have customised banking solutions. They mostly have large networks in semi urban or rural areas with inadequately trained staff. Far flung locations, lack of connectivity, and multiple languages also added to the unfavorable mix.

    TCS used cloud technologies to develop a specialised service. Thus is based on its central cloud platform. It is now running in over 2,000 branches across India. A number of banks were able to take advantage of shared infrastructure and resources. High fixed costs were eliminated and maintenance costs reduced by sharing application services. TCS, manages the whole infrastructure and updates it regularly for a monthly fee.

    Public sector banks have often been criticized for their outdated technology and inefficiency. This solution can however increase efficiency, provide greater compliance, risk management, and increase customer satisfaction. New services like ATMs, SMS and internet banking can also be implemented. Around 52% of India's population comes in the unbanked category. This platform will enable financial inclusion of this large population and save them from the clutches of moneylenders.

     

     

    Equitymaster requests your view! Post a comment on "Indian IT: This 'cloud' has a golden lining!". Click here!

    3 Responses to "Indian IT: This 'cloud' has a golden lining!"

    raova

    Jun 24, 2010

    Recently concluded spectrum auction has made broadband costly as per Mr Sunil Mittal, Bharathi CMD anyway, so we need to how this cloud computing reaches this unbanked population.

    Like 

    smile

    Jun 23, 2010

    So, to conclude, the most essential ingrediants for the development of our villages are 'cloud' and '3G'.

    Like 

    Sankar

    Jun 22, 2010

    All this talk about cloud computing and its advantages seems to miss the point of lack of "last mile solution" in villages.

    If all services are available using a "web" like interface, we still need "web" access at every access point and India is still a long way from getting it.

    Unless 3G picks up to the extent where anyone can do "web" on their mobile, this is still a far cry from what we really need. - Access to banks - physical or virtual.

    Like 
      
    Equitymaster requests your view! Post a comment on "Indian IT: This 'cloud' has a golden lining!". Click here!
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Ankit Shah's First Five Insider Recommendations (The 5 Minute Wrapup)

    Aug 5, 2017

    How to get exclusive insider recommendations from Ankit Shah.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE IT


    Aug 18, 2017 (Close)

    S&P BSE IT 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS