Prospect of adopting cloud computing in Indian manufacturing industry

Chia sẻ: _ _ | Ngày: | Loại File: PDF | Số trang:9

Thêm vào BST

Báo xấu

21
lượt xem 1
download

Download Vui lòng tải xuống để xem tài liệu đầy đủ

In this paper, I would first compare two related computing paradigms – On premise Computing and Cloud computing in. Discuss the importance of Cloud to Manufacturing Industry in India and study the prospect of the Adoption of Cloud Computing in Indian Manufacturing Industry.

Chủ đề:

Bình luận(0) Đăng nhập để gửi bình luận!

Lưu

Nội dung Text: Prospect of adopting cloud computing in Indian manufacturing industry

Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. PROSPECT OF ADOPTING CLOUD COMPUTING IN Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) INDIAN MANUFACTURING INDUSTRY 1 Prof. Supriya Santosh. Wagh Volume 6, Issue 6, June (2015), pp. 48-56 Article ID: 10120150606006 International Journal of Management (IJM) IJM IAEME: http://www.iaeme.com/IJM.asp ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) ©IAEME 1 Research Scholar, Dr. D.Y. Patil University, Pune, Maharashtra, India ABSTRACT Innovations are necessary to ride the predictable wave of change. Most of enterprises are striving to reduce their computing cost through the means of virtualization. This demand of reducing the computing cost has led to the innovation of Cloud Computing. Cloud Computing offers better computing through improved utilization and reduced administration and infrastructure costs. Cloud Computing is the sum of Software as a Service (SaaS) and Infrastructure as a service (IaaS) and Platform as a Service (PaaS). In this paper, I would first compare two related computing paradigms – On premise Computing and Cloud computing in. Discuss the importance of Cloud to Manufacturing Industry in India and study the prospect of the Adoption of Cloud Computing in Indian Manufacturing Industry. Keywords: Cloud Computing, SAAS, IAAS, PAAS, IT budget, On-premise Computing, Manufacturing Industry. 1. INTRODUCTION CLOUD OVERVIEW With the rapid development of processing and storage technologies and the success of the Internet, computing resources have become cheaper, more powerful and more available than ever before. This technological trend has enabled the realization of a new computing model called cloud computing, in which resources are provided as general utilities that can be leased and released by users through the Internet in an on-demand fashion. Cloud computing is of growing interest to companies around the globe, but many are finding greater costs and greater obstacles to the adoption of cloud computing than they anticipated. www.iaeme.com/ijm.asp 48 editor@iaeme.com
Prospect off Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh,, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com com) Fig 1.1.Cloud 1.1 Computing Overview Source: www.wikipedia.org 1.1 Definition There are many definitions of cloud computing. In 2009 the US National Institute of Standards and Technology (NIST) Information Technology Laboratory developed a considered and well-written written definition distilled from a number of perspectives. NIST DEFINITION OF CLOUD COMPUTING Cloud computing is a model for enabling convenient, on-demand on demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models. The emerging cloud abstracts infrastructure complexities of servers, applications, data, and heterogeneous platforms. [10] www.iaeme.com/ijm.asp 49 editor@iaeme.com
Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) The NIST definition identifies essential characteristics, service models and deployment models. Table 1.1 Summary of cloud computing features Essential characteristics Service models Deployment models On-demand self-service Software as a service (SaaS) Private cloud Broad network access Platform as a service (PaaS) Community cloud Resource pooling Infrastructure as a service(IaaS) Public cloud Rapid elasticity Hybrid cloud Measured Service Chart 1.1 Cloud Service Model & Deployment Models Source: KPMG India Cloud Publication: Changing the ecosystem 1.3. Service Model Following are the service models to categories the cloud services: SOFTWARE AS A SERVICE (SAAS) Cloud consumers release their applications on a hosting environment, which can be accessed through networks from various clients (e.g. web browser, PDA, etc.) by application users. Cloud consumers do not have control over the Cloud infrastructure that often employs a multi-tenancy system architecture, namely, different cloud consumers' applications are organized in a single logical environment on the SaaS cloud to achieve economies of scale and optimization in terms of speed, security, availability, disaster recovery, and maintenance. Examples of SaaS include SalesForce.com, Google Mail, Google Docs, and so forth. PLATFORM AS A SERVICE (PAAS) PaaS is a development platform supporting the full "Software Lifecycle" which allows cloud consumers to develop cloud services and applications (e.g. SaaS) directly on the PaaS cloud. Hence the difference between SaaS and PaaS is that SaaS only hosts completed cloud applications whereas PaaS offers a development platform that hosts both completed and in-progress cloud applications. This requires PaaS, in addition to supporting application hosting environment, to possess development infrastructure including programming environment, tools, configuration management, and so forth. Example of PaaS is Google AppEngine. www.iaeme.com/ijm.asp 50 editor@iaeme.com
Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) INFRASTRUCTURE AS A SERVICE (IAAS) Cloud consumers directly use IT infrastructures (processing, storage, networks, and other fundamental computing resources) provided in the IaaS cloud. Virtualization is extensively used in IaaS cloud in order to integrate/decompose physical resources in an ad-hoc manner to meet growing or shrinking resource demand from cloud consumers. The basic strategy of virtualization is to set up independent virtual machines (VM) that are isolated from both the underlying hardware and other VMs. Notice that this strategy is different from the multi-tenancy model, which aims to transform the application software architecture so that multiple instances (from multiple cloud consumers) can run on a single application (i.e. the same logic machine).Example of IaaS is Amazon's EC2. DATA STORAGE AS A SERVICE (DAAS) The delivery of virtualized storage on demand becomes a separate Cloud service - data storage service. Notice that DaaS could be seen as a special type IaaS. The motivation is that on- premise enterprise database systems are often tied in a prohibitive up-front cost in dedicated server, software license, post-delivery services, and in-house IT maintenance. DaaS allows consumers to pay for what they are actually using rather than the site license for the entire database. In addition to traditional storage interfaces such as RDBMS and file systems, some DaaS offerings provide table- style abstractions that are designed to scale out to store and retrieve a huge amount of data within a very compressed timeframe, often too large, too expensive or too slow for most commercial RDBMS to cope with. Examples of this kind of DaaS include Amazon S3, Google BigTable, and Apache HBase, etc. Fig 1.2. Cloud Computing Service Model Source: http://en.wikipedia.org/wiki/Cloud_computing www.iaeme.com/ijm.asp 51 editor@iaeme.com
Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) 1.4 Deployment Model Four cloud deployment models have been defined in the Cloud community: PRIVATE CLOUD The cloud infrastructure is operated solely within a single organization, and managed by the organization or a third party regardless whether it is located premise or off premise.Private Cloud an option for many firms. Organizations always require full control over mission-critical activities that reside behind their firewalls. COMMUNITY CLOUD Several organizations jointly construct and share the same cloud infrastructure as well as policies, requirements, values, and concerns. The cloud infrastructure could be hosted by a third- party vendor or within one of the organizations in the community. PUBLIC CLOUD This is the dominant form of current Cloud computing deployment model. The public cloud is used by the general public cloud consumers and the cloud service provider has the full ownership of the public cloud with its own policy, value, and profit, costing, and charging model. Many popular cloud services are public clouds including Amazon EC2, S3, Google AppEngine, and Force.com. HYBRID CLOUD The cloud infrastructure is a combination of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds). Organizations use the hybrid cloud model in order to optimize their resources to increase their core competencies by margining out peripheral business functions onto the cloud while controlling core activities on-premise through private cloud. Amazon Web Services (AWS) has recently rolled out a new type of deployment model - VIRTUAL PRIVATE CLOUD (VPC), a secure and seamless bridge between an organization’s existing IT infrastructure and the Amazon public cloud. This is positioned as a mixture between Private Cloud and Public Cloud. It is Public because it still uses computing resources pooled by Amazon for the general public. However, it is virtually private for two reasons. Firstly, the connection between IT legacy and the cloud is secured through a virtual private network, thereby having the security advantage of Private Cloud. In fact, all corporate security policies still apply to resources on the cloud even though it is on the Public Cloud. Second, AWS will dedicate a set of 'isolated' resources to the VPC. However, this does not mean users have to pay these isolated resources up-front. Users still enjoy "pay-per-use" on these isolated resources. VPC represents a perfect balance between control (Private Cloud) and flexibility (Public Cloud). www.iaeme.com/ijm.asp 52 editor@iaeme.com
Prospect off Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh,, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com com) Source: http://en.wikipedia.org/wiki/Amazon_Virtual_Private_Cloud 1.5 Cloud Computing Characteristics On-demand self-service:: Depending on customers’ needs, cloud users can configure and deploy cloud services themselves using cloud service catalogues, without the help of the service Provider. Internet Accessibility: Once there is network connectivity, cloud users can access cloud service through standard mechanisms irrespective of time and place. Pooled Resource: Resources such as storage, processing, memory, and network bandwidth of service providers are pooled to serve multiple consumers using a multi-tenant tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. Elastic Capacity: Capabilities can be elastically provisioned and released as and when needed. This enables users to rapidly respond to demands in a very effective way. Measured service: Cloud systems automatically control and optimize resource resour use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, Processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for for both the provider and consumer of the utilized service. ADVANTAGES OF CLOUD COMPUTING Specifically, cloud computing offers the following key advantages: • It dramatically lowers the cost of entry for smaller firms trying to benefit from compute-intensive compu business analytics. These computational exercises typically involve large amounts of computing power for relatively short amounts of time, and cloud computing makes such dynamic provisioning of resources possible. • It can provide an almost immediate access access to hardware resources, with no upfront capital investments for users, leading to a faster time to market in many businesses. Treating IT as an operational expense (in industry-speak, industry employing an ‘Op-ex’ex’ as opposed to a ‘Cap-ex’ ‘Cap model) also helps in dramatically ramatically reducing the upfront costs in corporate computing. The cloud becomes an adaptive infrastructure that can be shared by different end users, each of whom might use it in very different ways. The users are completely separated from each other, and an the flexibility of the infrastructure allows for computing loads to be balanced on the fly as more users join the system. system www.iaeme.com/ijm.asp 53 editor@iaeme.com
Prospect off Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh,, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com com) 2. CLOUD VS ON-PREMISE PREMISE COMPUTING Source: http://en.wikipedia.org/wiki/Cloud_computing The key aspects of IT infrastructure, hardware, facilities, and administration have traditionally been the domain of IT departments within each company. Dedicated personnel install and configure servers, routers, firewalls, and other devices in support of their respective employers. This equipment requires dedicated housing as well as environmental controls, emergency power, and security systems to keep it functioning properly. Finally, every company allocates additional space where IT personnel work to support support the infrastructure that is in place. Every aspect of IT infrastructure has evolved on its own, yet-until yet now - has not moved toward integration. For example, a company purchases software it needs and then purchases a server to run it. If data storage is necessary for files or databases, disk arrays and hard drives are added into the mix to accommodate the needs of the company. A local network is maintained to provide employees access to IT resources, and high speed internet connectivity for voice and data is added to the company account as necessary. Practically speaking, each IT system has its own management system, with some systems requiring the addition of a specialized worker to the staff. Infrastructure as a service takes the traditional components ts of IT infrastructure, takes them off site, and offers them in one unified, scalable package to companies who can manage them through one management interface. Infrastructure as a service results in IT services that easily conform to the changing requirements require of a business. Because the infrastructure does not reside on the premises, obsolete equipment, upgrades, and retrofits no longer play a role in the company's decision to adopt new technology [4] Table 2.1 Summary of the comparison of IT system used in in manufacturing industry. Characteristics On-Premise Cloud Computing Renting as-per--use without taking Ownership Buying of software, Hardware etc ownership. Upfront investments and costs for local Cost Pay-per-use se or pay-per-period pay installation/maintenance incl. licenses. Subscribe, plug in and use: no Buys, installs, develops, implements IT Function need for an IT function and no and maintains their own software concern of updates Expertise In-house house software expertise needed for Usage expertise required needed control and maintenance www.iaeme.com/ijm.asp 54 editor@iaeme.com
Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) 3. PROSPECT OF ADOPTING CLOUD COMPUTING IN MANUFACTURING INDUSTRY IN INDIA. As Cloud Computing is still in its infancy in India, current adoption is associated with numerous benefits. The manufacturing sector plays an important role in the Indian economy, both as a significant contributor to GDP, as well as a source of employment to a large section of the Indian population. Consisting largely of medium and small sized enterprises, the Indian manufacturing sector is highly fragmented. it is estimated that SMEs account for 45 percent of industrial output. The rest comes from either the large companies (domestic companies and MNCs operating in india) or the micro enterprises spread all across the country. A large part of the MSMEs are present in clusters spread across the country. CURRENT IT ADOPTION AND BUYING BEHAVIOR: On an aggregate level, the larger companies have higher adoption of it, as compared with smaller businesses. The current it needs and buying behavior are summarized below: Large enterprises: this segment can be divided into two parts i) Late adopters of IT (old set–ups with greater dependence on legacy systems) ii) Early adopters. while the former are focusing largely on having the basic systems upgraded, the latter are looking at enhancing their operations through greater application of it over and above the standard ERP and CRM solutions. In terms of the need for IT, most of the IT purchase is based on smaller contracts and large outsourcing deals. SMEs: This segment accounts for about 45 percent of the country’s total manufacturing output, but does not spend much on IT. They tend to use IT only for the most critical applications, based on the respective industries they operate in. Most of them do not have a complete ERP implementation in place, and tend to use only the parts of it that are most critical to their functioning. Being cost sensitive, SMEs prefer to use the cheaper local versions of ERP software. The buying, therefore, is largely through local vendors. Micro–enterprises: The smallest of the companies use IT primarily for document processing and management. The IT system in automotive companies needs to be linked to those of their vendors (ancillaries) so that just–in–time delivery can be ensured. Most manufacturers are price sensitive, and hence have typically not spent much on IT. Most companies in this sector spend less than a percent of their revenues on IT. BUSINESS TRENDS DRIVING IT ADOPTION Operational improvements: Indian manufacturing companies are facing challenges from foreign players that are setting up shops in the country, as well as from new domestic players arriving on the scene. In the face of this competition, it is important for industry players to move toward better and more efficient processes, and to bring about these changes, greater use of technology is inevitable Cost optimization: In the light of the recent slump in demand, as well as the massive influx of cheaper products from other low–cost countries, Indian companies are actively looking at ways to reduce their operational costs and discretionary spending. www.iaeme.com/ijm.asp 55 editor@iaeme.com
Prospect of Adopting Cloud Computing In Indian Manufacturing Industry, Prof. Supriya Santosh. Wagh, Journal Impact Factor (2015): 7.9270 Calculated by GISI (www.jifactor.com) Government initiatives promoting use of technology: The Government is taking steps to make the sector more competitive by setting up the NMCC (national manufacturing competitiveness council).It has also taken specific steps to give a fillip to the use of technology in this sector I) Reducing duties or providing subsidies for technology upgrades in pharmaceutical, textile and food processing companies. II) Introducing schemes for technology development in MSMEs, sensitizing smes to it and emerging trends like cloud CONCLUSION Adoption of Cloud Computing is Low–cost solutions and delivery for MSMEs. Considering that this is a highly price sensitive segment, cloud based solutions for both applications as well as infrastructure could well be the answer to the demands of MSMEs. Shared applications and infrastructure will provide them access to the IT at affordable rates. subscription based deployment models (SaaS—Software as a Service) for various applications, including ERP, could be the way forward for MSMEs. This helped them increase productivity, shorten sales cycle and improve decision making due to greater visibility and insight. Greater infrastructure outsourcing by larger companies: a large number of the bigger enterprises still manage their IT in–house. As they look for cheaper alternatives, many of them, particularly those with higher IT adoption and multiple locations, will find it cheaper to outsource their IT infrastructure. Private Cloud could also be a potential area of investment. Hero motocorp, for example, has put its entire dealer management system on the cloud At its highest level of impact, cloud computing is ushering in an era in which enterprises themselves will become virtual. Corporations will manage complex ecosystems of cloud providers, IT suppliers and business process outsourcers as well as a host of other parties, both internal and external. REFERENCE 1. “5 Essential Characteristics of Cloud Computing, Giving Meaning to Cloud Computing Jargon By Eric Chabrow, October 25, 2011 http://www.inforisktoday.com/5-essential-characteristics- cloud-computing-a-4189 (12/11/2014). 2. “Cloud Computing-A New Way To Roll Out E-Governance Projects In India” by International Journal of Computer Engineering and Technology (IJCET), ISSN 0976-6367 Volume 4, Issue 2, March – April (2013). 3. Ministry of Communication and Information technology web Site, Government of India, www.mit.gov.in. 4. http://cloudstoragestrategy.com/2010/01/cloud-storage-for-the-enterprise---part-2-the-hybrid- cloud.html By Steve Lesem . 5. http://aws.amazon.com/security/. 6. http:// www.wikipedia.org/ 7. http:// www.ibtimes.com/articles/33477/20100708/car-sales-indian-auto-industry.htm. 8. Gartner Hype Cycle for Cloud Computing, 2009. 9. KPMG India Cloud Publication: Changing the ecosystem. 10. http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf. 11. S.K. Gupta, Dr. R.V. Singh, Dr. V.K. Mahna, Rajender Kumar, “Lean Implementation In Manufacturing Industry: A Case Study” International Journal of Industrial Engineering Research and Development (IJIERD), Volume 3, Issue 1, 2012, pp. 13 - 20, ISSN Online: 0976 - 6979, ISSN Print: 0976 – 6987. www.iaeme.com/ijm.asp 56 editor@iaeme.com