BUSINESS ENTREPRENEURSHIP DEVELOPMENT
Submitted to: Submitted by:
Mr. M A KHAN PARAS PAREEK
(DEPT. OF CSE) (12ESOCS710)
EXPERIMENT NO. 1
Business entrepreneurship development
Meaning and definition of an entrepreneur
Meaning and definition of an entrepreneurship
Qualities of a good entrepreneur
1. Meaning and definition of an entrepreneur:-
The word entrepreneur has come from the France word “entreprendra” which means to
undertake, to pursue opportunities to fulfill needs and wants through innovation to undertake
business. In the year 1725 the word entrepreneur was first brought into economics by a social
scientist named Richard cantilion, the expert who invented the theory of entrepreneurship was
David mc cellion in 1961.
There is various definition of entrepreneur:-
a) According to America heritage dictionary: ”Entrepreneur is a person who organizes
operates and assumes the risk of business venture”
b) The dictionary of social science: has defined entrepreneur from functional viewpoint.
According to it “entrepreneur is a person 1) who exercise the function or 2) initiating
coordinating controlling or institute major change in a business enterprise and or 3)
bearing those risk of operation which arise from the dynamic nature of society and
imperfect knowledge of the future which can cast through transfer calculation or
c) According to encyclopedia Britannica: “Entrepreneur as the individual who bears the
risk of operating a business in the face of uncertainty about future condition and who is
rewarded accordingly by his profit or losses.
d) Richard cotillion says: Entrepreneur is the agent who purchased the means of
production for combination into marketable product. So we can say that entrepreneur a
person who takes risk for establishing a new venture or business in order to create utility
for the welfare of human being as well as for him or herself. She or He is always a person
who seeks out opportunities and takes o challenges.
2. Meaning and definition of entrepreneurship:
Entrepreneurship is considered as of assuming the risk of an entrepreneur.
a) According to natheal h. leff: entrepreneurship is the capacity for innovation investment
and expansion new market product and techniques.
b) Webster highlights: entrepreneurship as economic venture organizing and risk taking
c) Joshep a Schumpeter: describe entrepreneurship is the force of creative destruction
whereby established way of doing things are destroyed by the creating of new and better
ways to get things done.
d) According to S. S. kanaka: Entrepreneurship is a process involving various actions to be
taken to establish and enterprise. From the functional view point entrepreneurship is
defined as the combination of activities such as perception of market opportunities
gaining command over scarce resources purchasing input producing and marketing of
product responding to competition and maintaining relation with political administration
and public bureaucracy for concession licenses and taxes etc.
3. Qualities of good entrepreneur:-
To become a successful as an entrepreneur in its business life, a businessman should possess a
quite a number of essential qualities. Those are noted below
Moderate risk taking: an entrepreneur always takes calculated risk to operate
Hard work: an entrepreneur is very much hard worker, he or she always busy
with various types work.
Accountability: a successful entrepreneur is accountable well as his associates
always accountable to him.
Educated in real sense: successful entrepreneur is educated in real sense .he
tries to implement his organizational objectives through his education.
Analytical mind: a successful entrepreneur is analytical minded. He scrutinizes
every activity on the organization.
Dynamic leadership: a successful entrepreneur is always dynamic to operate the
Presence of mind: a successful entrepreneur is always at present of mind he is
always aware of activities that to happening in the organization and around him
Accommodative: a good entrepreneur has the capacity to make his own place at
Courageous and tactful: Corsages and techniques is very much essential for a
Maker of right decision: A successful entrepreneur makes right decision in right
time in right place
Foresighted: a successful entrepreneur foresights the future and take decision
Right perception of things: A successful entrepreneur things in a right way
Enjoy simple life: A successful entrepreneur always deals a simple life a general
people of the society
Strong desired to success: A successful entrepreneur have a strong desire to
success. he is driven by the desire to success
Innovation: innovation is the process of making new something. A successful
entrepreneur is innovative
Self confidence: A successful entrepreneur is self confidence. does not really on
other for decision or fate
Goal setting: a successful entrepreneur set the goal
Keen observation: A successful entrepreneur always observes the origination
Sociable: A successful entrepreneur is sociable person
Loves to work; A successful entrepreneur is very much addicted to work
Loves new ideas: A successful entrepreneur loves new ides of the organization
Team builder: A successful entrepreneur builds a suitable team
Clean understanding: A successful entrepreneur clearly understands every
Ability to conceptualize: A successful entrepreneur is able to conceptualize the
Other: the other qualities are patience, optimistic, strategist, etc.
EXPERIMENT NO. 2
Relationship between entrepreneur and entrepreneurship.
Different types of entrepreneurs.
Factors of entrepreneurship development.
Cause of success and failure of and an entrepreneur.
1. Relationship between entrepreneur and entrepreneurship:-
1 It is a person It is a process
2 It is an organizer It is an organization
3 Entrepreneur is an innovator Entrepreneurship is an innovation
4 Entrepreneur is a risk bearer Entrepreneurship is a risk bearing
5 It is a motivator It is a motivation
6 Entrepreneur is a creator Entrepreneurship is a creation
2. Different types of entrepreneurs:-
On the basis of nature Clarence dayhop classified entrepreneurs into four categories these
a) Innovative entrepreneurs:
An innovative entrepreneur in one, who introduces new goods, inaugurates new method
of production, discovers new market and recognizes the enterprise. It is important to note
that such entrepreneurs can work only when a certain level of development is already
achieved and people look forward to change and improvement.
b) Imitative entrepreneurs:
These types of entrepreneurs creatively imitate the innovative technical achievement
made by another firm. Imitative entrepreneurs are suitable for underdeveloped countries
as it is hard for them to bear the high cost of innovation.
c) Fabian entrepreneurs:
Fabian entrepreneurs are characterized by very great caution and skepticism to
experiment any change in their enterprises. They usually do not take any new challenge.
They imitate only when it becomes perfectly clear that failure to do not so would result in
a loss of the relative position in the enterprise
d) Drone entrepreneurs:
They are characterized by a refusal to adopt any change even at cost of severely reduction
Some other types of entrepreneurs:
a) Solo operators:
These are the entrepreneurs who essentially work alone and if needed at all employ a few
employees. In the beginning most of the entrepreneurs start their enterprises like them.
b) Active partners:
Active partners are those entrepreneurs who start or carry on an enterprise as a joint
venture. It is important that all of them actively participate in the operations of the
Such entrepreneurs with their competence and creativity innovate new products. Their
basic interest lies in research and innovative activities.
d) Buyers’ entrepreneurs:
These are the entrepreneurs who do not like to bear much risk. They do not take the risk
of production but take the risk of marketing a product i.e. wholesaler and retailer.
e) Life timers:
These entrepreneurs believe business as an integral part of their life. These entrepreneurs
actually inherit their family business i.e. goldsmith, potter etc.
f) Challengers: These are the entrepreneurs who initiate business because of the
challenges it presents. They believe that `NO risk, No gain`. When one challenge seems
to be met, they begin to look for new challenges.
3. Factors of entrepreneurship development:-
(A) Personal factors:
1. · Ability to cope with the situation
2. · Age
3. · Education
4. · Personality
5. · Intrapersonal communication ability
6. · Achievement motivation
7. · Self-confidence
8. · Competence
9. · Emotion
10. · Understanding capacity
(B) Environmental factors:
1. Socio-cultural factors:
· Rural-urban orientation
2. Political and legal factors:
· Govt. legal bindings
· Govt. policies
· Rules and laws related to the industry and business
(C) Institutional factors:
1. · Financial institution
2. · Training and development institution
3. · Consulting firms
4. · Incubators organization (old & pioneer)
5. · Research organization
(D) Micro factors
1. · Enterprise itself
2. · Suppliers
3. · Intermediaries
4. · Customers
5. · Competitors
6. · Public
(E) Macro factors:
1. · Demographic factors
2. · Economic factors
3. · Physical factors
4. · Technological factors
5. · Cultural/social factors
1. · Venture capital
2. · Experience entrepreneurs
3. · Technically skilled labor force
4. · Supplier‟s accessibility
5. · Proximity to universities
6. · Availability of land facilities
7. · Accessibility of transportation
8. · Favorable loan and financial policies
9. · Availability of supportive
10. · Attractive living condition
11. · Capital intensiveness
12. · Research and development activities
13. · Capital inventiveness
14. · Proximity to corporate head quarters
15. · Competitive situation
4. Causes of successes and failure of an entrepreneur:
An entrepreneur may sometime become successful and sometime becomes failure. There are some
causes of such success and failure. They are noted below:
1 .Selection of business:
It is an important aspect. That means an entrepreneur has to determine what type business he is
going to start. Form various points of view the feasibility of the business should be tested.
2. Proper planning:
Proper planning may also important. For planning, planning premises like political, economic,
social premised should be considered first. The steps of planning should be followed properly.
3. Initial capital:
If the initial capitals are not an optimal level the organization would fall. So whether the enterprise
is big or small the initial capital should be sufficient enough.
4. Determination 0f market demand:
Through research the demand in the market should be identified. Both for long term and short term
it should be considered.
5. Marketing of product:
If the promotion policy, channel of destitution, transportation is not good the enterprise would fall.
6. Education and experience:
One of the important tasks of the entrepreneurs is to select right person for the right post because
the success of an enterprise depends on the right selection of employees.
7. Joint initiative:
One may have much money and another may have more merit. Through joint initiative it can be
balanced. But sometime for joint initiative misunderstanding arise, or sometimes corruption occur
which may result in fall of enterprise.
8. Employment: Recruitment and appointment should be properly done. Those who have
specialized skill should be appointed to that specialized job. Inefficient, corrupted employees may
be responsible for fall of business.
9. Location of business:
Site selection is an important factor. While starting a new business, an entrepreneur should think
about the location of the business. In this case, many factors should be considered such as
availability of raw materials, proper communication system, availability of labor, marketing
facilities and so on.
10. Qualities of management:
The management must have a minimum quality to success otherwise it would fall.
These are the common causes for which one enterprise may become successful and another may
Creating a business plan
Roll of entrepreneurship in economic development
1. Creating a business plan:-
A comprehensive business plan is crucial for a start-up business. It defines the entrepreneur‟s
vision and serves as the firm‟s resume. There are many reasons for writing a business plan:
To convince oneself that the new venture is worthwhile before making a significant
financial and personal commitment.
To assist management in goal-setting and long-range planning.
To attract investors and get financing.
To explain the business to other companies with which • it would be useful to create an
alliance or contract.
To attract employees.
A business plan can help an entrepreneur to allocate resources appropriately, handle unexpected
problems, and make good business decisions. A well-organized plan is an essential part of any
loan application. It should specify how the business would repay any borrowed money. The
entrepreneur also should take into account all startup expenses and potential risks so as not to
However, according to Andrew Zacharakis, a common misperception is that a business plan is
primarily used for raising capital. Zacharakis, a professor of entrepreneurship at Babson College,
suggests that the primary purpose of a business plan is to help entrepreneurs gain a deeper
understanding of the opportunity they envision. He explains: “The business plan process helps
the entrepreneur shape her original vision into a better opportunity by raising critical questions,
researching answers for those questions, and then answering them.” Some entrepreneurs create
two plans: a planning document for internal use and a marketing document for attracting outside
investment. In this situation, the information in each plan is essentially the same, but the
emphasis is somewhat different. For example, an internal document intended to guide the
business does not need detailed biographies of the management. However, in a plan intended for
marketing, the background and experience of management may be the most important feature
A standard business plan is usually about 40 pages in length. It should use good visual
formatting, such as bulleted lists and short paragraphs. The language should be free of jargon and
easy to understand. The tone should be business-like and enthusiastic. It should be strong on
facts in order to convince people to invest money or time in the new venture.
The basic elements of a standard business plan include:
Table of Contents
Market and Competition
Marketing and Selling Strategy
The executive summary is the cornerstone of a good plan. This is the section that people read in
order to decide whether to read the rest. It should concisely summarize the technical, marketing,
financial, and managerial details. More importantly, it needs to convince the reader that the new
venture is a worthy investment. The company description highlights the entrepreneur‟s dream,
strategy, and goals. The product/service section should stress the characteristics and benefits of
the new venture. What differentiates it from its competition? Is it innovative? The financial
components of a new venture‟s business plan typically include three projections: a balance sheet,
an income statement, and a cash-flow analysis. These require detailed estimates of expenses and
sales. Expenses are relatively easy to estimate. Sales projections are usually based on market
research, and often utilize sales data for similar products and services produced by competitors.
Writing a business plan may seem overwhelming. However, there are ways to make the process
more manageable. First, there are many computer software packages for producing a standard
business plan. Numerous books on entrepreneurship have detailed instructions, and many
universities sponsor programs for new businesses.
2. Roll of entrepreneurship in economic development:-
The industrial health of a society depends on the level of entrepreneurship existing in it. A country
might remain backward not because of lack of natural resources or dearth of capital [as it is many
times believed] but because of lack of entrepreneurial talents or it inability to tap the latent
entrepreneurial talents existing in that society. Entrepreneurs historically have altered the direction
of national economies, industry or markets- Japan, Singapore, Korea, Taiwan to name a few.
a) Entrepreneurship and economic development:
Entrepreneurship is basically concerned with creating wealth through production of goods and
services. This results in a process of upward change whereby the real per capita income of a
country rises overtime or in other words economic development takes place. Thus entrepreneurial
development is the key to economic development. In fact it is one of the most critical inputs in the
economic development of a region. It speeds up the process of activating factors of production
leading to a higher rate of economic growth, dispersal of economic activities and development of
backward regions. If a region is unable to throw up a sufficient number of entrepreneurs then alien
entrepreneurs usually step in to provide goods and services needed by the people. However the
profits earned by these entrepreneurs are usually not ploughed back but repatriated to their place of
origin. As a result development in that region cannot take place. Dr. M.M. Akhori refers to this
practice as „The Leech Effect‟. The above reiterates the importance of entrepreneurship
development for fuelling economic growth of a region.
Entrepreneurship begets and also injects entrepreneurship by starting a chain reaction when the
entrepreneur continuously tries to improve the quality of existing goods and services and add new
ones. E.g. when computers came into the market there was continuous improvement in the models,
their functions etc. like first generation computers, personal computers, laptops, palmtops etc. Not
only had this fostered the development of the software industry, computer education institutes,
computer maintenance and stationery units etc. but also other industries like banking, railways,
education, travel, films, medical and legal transcriptions, business process outsourcing [BPOs] etc.
In this manner by harnessing the entrepreneurial talent a society comes out of traditional lethargy
to modern industrial culture. India needs entrepreneurs to capitalize on new opportunities and to
create wealth and new jobs.
b) Entrepreneurship and education:
Towards the end of the sixties, two significant contributions were made in the field of
entrepreneurship .One was that there is a positive linkage between entrepreneurship and economic
development and the other was regarding the emergence of a strong hypothesis that
entrepreneurship can be developed through planned efforts1. Consequently planners realized that
absence of a strong entrepreneurial base acts as a serious handicap in the industrial development of
a region. The identification and development of first generation entrepreneurs through
Entrepreneurial Development Programs is an important strategy. There is a growing realization
that presence of resources and favorable government policies cannot automatically manufacture
economic development. It is the entrepreneurial spirit of the people, which can transform the
economy of that region. Both the quantity and quality of entrepreneurs are of utmost significance
for achieving the goal of economic development. The myth that entrepreneurs are born with some
innate traits is fortunately no longer held. You will learn more about this in the lesson on
motivation. Many research studies have brought out that entrepreneurship can be taught and
learned. Entrepreneurship is a discipline and like all disciplines it has models, processes and case
studies, which can help an individual to study this subject. The necessary competencies required of
a successful entrepreneur can be acquired through training and development. Numerous courses in
entrepreneurship are being taught all over the world in schools and colleges, seminars and
conferences are being organized and EDPs are being conducted. The thinking today is why just
create managers why not create people who can absorb managers. One can acquire the traits and
learn the skills for becoming an entrepreneur e.g. a person can learn to be achievement oriented,
self- confident, perseverant etc. which are all part of the characteristics of a successful
entrepreneur. Usually the model used for entrepreneurial education has three phases:
a. Stimulatory phase:
This phase involves planned publicity for opportunities, motivation training and
help and guidance in selection of product or service.
b. Support Phase:
This provides help in registration of units, arrangement of finance as well as
land, sheds, power, water, common facility centre‟s etc. Help is also provided in
marketing of products.
c. Sustenance Phase: Once the enterprise is set up the enterprise is set up then help is
provided for modernization, diversification, additional finance etc.
Experiment No: 4
Aim: - Make a company profile in tally and discuss it in detail
Apparatus: - tally 9 or tally 72
Company profile:- The company creation screen appears as shown:-
The detailed explanation of each field as following:-
The data path where you want the company to be created is specified in the Directory field. This
field is skipped by default when you create the company in the data path given in the Tally.INI
file. If you want to change it, use the Backspace key and modify it to the path required.
Enter the name of the company whose books are being opened. If you are a professional
accountant and are maintaining the books of our clients, give the client company`s name.
3 Mailing Name and Address:-
In addition to the company name, tally provides the facility to enter the mailing name field. It
displays the company name by default; you may change it as required, if the mailing name is
different from the company name. The mailing name and address details are picked up for
inclusion I any report that needs the company name and address as heading. For example:
balance sheets, statement of accounts, and so on.
Mailing and contacts details
Mailing name : ABC Company
Address : 12/24 Karol bag
4 State: - you can select the appropriate state from the predefined list.
5 PIN CODE: - specify the postal area code of the specified address.
6 Telephone: - Enter the Telephone number.
7 Mobile No: - Enter the mobile number of the company.
8 E-mail Address:-Enter the E-mail address that will be used to e-mail documents, reports and
data from Tally.
9 Currency: - currency symbol is the symbol of the base currency, that is, that currency that will
be used to maintain the books of account.
Tally 9 displays a drop down for the type of company with two option accounts only and
accounts with Inventory. Select accounts only if you do not have any inventory transactions
(suitable for professionals and corporate officers). However, at a later date (if required) you can
choose to alter the information as accounts with Inventory, also select it to maintain both
financial accounts and inventory.
11 financial years from:-
In most countries, the books of accounts of a company are maintained for a stipulated period
like, 12 months, 15 months, and so on. This stipulated period is referred to as the Financial
Year. The stipulated period of the financial year is 12 months in most countries. Tally.ERP 9
automatically considers 12 months from the date you give here as the Financial Year.
For example, if you enter April 1, 2008 as the date, the Financial Year will be from April to
March ending with March 31, 2009. If you enter October 1, 2008 as the Financial Year From
then the financial year will be from October 2008 to September 2008 ending with 30th of
September every year.
12 Books Beginning From:-
Tally.ERP 9 presumes that you wish to maintain books from the beginning of the financial year.
Hence, Tally.ERP 9 displays the date given in Financial Year from field automatically.
For example, if your company is established on August 19, 2008, the opening balances for all the
accounts can be given as on August 19, 2008 even though the Financial Year given is April 1,
2008 (April to March financial year). The company's books will begin on August 19, 2008 and
close on March 31, 2009, which ensures smooth transition to the next year.
13 Tally Vault Password
Tally Vault is an enhanced security system, which allows for encryption of the company data.
Encryption involves converting normally accessible Tally information into unrecognizable
information, which can only be reconverted by authorized persons.
Give a password here and repeat the same in the Repeat field. This basically results in the
creation of an encrypted company whose information is not accessible to users other than the
Password Strength indicator is available in Tally.ERP 9 from Release 4.5 onwards. Now,
strength is displayed while creating / altering passwords under Security Control, Tally Vault, and
Control Centre. Also when Password Policy is enabled, Password Strength is indicated in the
Change Password screen that appears for first time login.
Let us understand the logic used by Tally.ERP 9 to ascertain a password‟s strength. This logic
consists of two sets of conditions to be applied.
Use Security Control?
Set this to Yes, if you want to initiate a password-protected system to control access to
Tally.ERP 9 data. Else, set this to No.
If you opt for security control, Tally.ERP 9 offers a comprehensive password based access
control to different features of Tally.ERP 9 based on authority lists created by the Administrator.
For more information refer Data Management in Tally.ERP 9.
Name of Administrator, Password, Repeat
Assuming the Tally Vault Password and Use Security Control is set to yes enter the Name of
Administrator, Password and Repeat in the respective fields.
Use Tally Audit Features:-
Tally Audit allows the administrator or an auditor profile user to track changes in accounting
information. If you wish to use this facility, select yes. Tally Audit will be available only to the
administrator/auditor, through Display of Statements of Accounts. For more information refer
Data Management in Tally.ERP 9.
Disallow opening in Educational mode?
Set this option to yes, if you don't want the company to be opened in Educational mode of
Tally.ERP 9. Else, set this to No.
On accepting the company creation screen, if you have specified Tally Vault password,
Tally.ERP 9 prompts you to enter the Tally Vault password as appears:
Then Tally.ERP 9 prompts you to enter the Name of User and Password (if any). After
verification Tally.ERP 9 imports the latest statutory masters. Wait till the screen shows that
100% of import is complete. This completes the Company Creation process in Tally.ERP 9.
An explanation on the fields on the bottom of the Company creation screen follows:
14 Base Currency Information:-
The Base Currency Information is found in the bottom frame of the Company creation Screen.
Base Currency is the currency in which your accounts would be maintained. Financial statements
are prepared in the base currency by default and these are normally required to be submitted to
local statutory authorities. The Base Currency information in Tally.ERP 9 varies with the
country selected for Statutory Compliance.
You can record transactions and raise invoices in foreign currency; and also maintain bank
accounts or ledgers in foreign exchange, when required.
Base Currency Symbol:-
The currency symbol given earlier in the Company Creation screen is displayed here
Tally.ERP 9 uses this currency symbol in reports, wherever necessary.
15 Formal Name:-
Formal Name is the full name of the currency specified.
The Formal Name for the base currency is set to Indian Rupees for Indian Companies.
16 Number of decimal places:-
The number of decimal places for the base currency is set to 2, by default. However, you have
the option of specifying up to 4 decimal places. Indian currency has 2 decimal places whereas
certain other countries require 3 decimal places and so on.
17 Is Symbol Suffixed to Amounts:-
For countries, which specify the symbol after the amount (value) – this facility is provided. For
example, Yen is specified after the amount (5000 Yen) unlike in India where the symbol is
specified before the amount (Rs.5000)
18 Symbol for Decimal Portion: - Enter the symbol for decimal portion.
19 Show Amounts in Millions:-
This is useful for companies, which require reporting the financial statements in millions. This is
possible only if allow Multi-Currency is enabled in F11: Accounting Features.
20 Put a space between Amounts and Symbol:-
This facility is provided to users who require a space between the amount and the symbol.
However, putting a space between the amount and symbol could give an opportunity for misuse
incase of cheque printing. Hence, the flexibility to turn this option on and off as required is
21 Decimal Places for Printing Amounts in Words:-
You can specify the number of decimal places for printing the amount in words. This number
should be equal to or lesser than the number specified in Number of Decimal places field in
company creation or currency master screen which will appear in Invoice and Cheque printing
For example, if the currency is expressed up to 3 decimal places, the numeric to be printed in
words can be restricted to 2 decimal places.
EXPERIMENT NO. 5
Aim: - make a group discussion report.
Objective: - CLOUD COMPUTING
Cloud Computing is a virtualized compute power and storage delivered via platform-agnostic
infrastructures of abstracted hardware and software accessed over the Internet. These shared,
on-demand IT resources, are created and disposed of efficiently, are dynamically scalable
through a variety of programmatic interfaces and are billed variably based on measurable
usage, the word cloud is used as a metaphor for the “the internet” so the phrase Cloud
computing means “a type of internet based computing”, where different services such as
servers, storage and applications are delivered to an organization‟s computers and devices
through the internet, and it relies on sharing computing resources rather than having local
servers or personal devices to handle applications as well as delivers computer services over
the internet which allows individuals and businesses to use software and hardware, managed
by third parties at remote locations. It adds three storage as private, public and hybrid and three
services infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and software-as-a-
service (SaaS), includes online file storage, social networking sites, webmail, online business
applications and also provides a shared pool of resources, including data storage space,
networks, computer processing power, and specialized corporate and user applications that
allows access to information and computer resources from anywhere that a network connection
Keywords: Cloud computing, business model, cloud services, cloud storages, cloud providers,
1. Cloud computing:-
• With traditional desktop computing, we run copies of software programs on our own
computer. The documents we create are stored on our own pc.
• Although documents can be accessed from other computers on the network, they can‟t be
accessed by computers outside the network. This is PC-centric.
• With cloud computing, the software programs one use aren‟t run from one‟s personal
computer, but are rather stored on servers accessed via the Internet.
• If a computer crashes, the software is still available for others to use. Same goes for the
documents one create; they‟re stored on a collection of servers accessed via the Internet.
• Anyone with permission can not only access the documents, but can also edit and
collaborate on those documents in real time.
• In cloud computing, the word cloud (also phrased as "the cloud") is used as a metaphor
for "the Internet," so the phrase cloud computing means "a type of Internet-based
computing," where different services such as servers, storage and applications are
delivered to an organization's computers and devices through the Internet.
• Cloud Computing is a type of internet based computing where different services such as
servers, storage and application are delivered to an organisation‟s computer or devices
through internet. It is also a type of computing that relies on sharing computing resources
rather than having local servers or personal devices to handle applications.
• Cloud Computing is document centric - documents are not stored in ones individual
computer but on a server which can be accessed by any one via internet.
• Examples of cloud computing includes:-
• Online file storage
• Social networking sites
• Webmail and online business app
2. Why we need cloud computing
It is very important for us to know about it. Because it is user centric, task centric, accessible,
programmable, intelligent and powerful also.
3. Milestone of cloud computing:-
Milestone of Cloud Computing
Launch of Amazon web services
The arrival of Salesforce.com
Google App / Azure
2008 - 2009
The first milestone for Cloud Computing
Launches of Google App
Engine/Windows Azure Beta
4. Cloud services:-
Cloud Service Layers - Characteristics
• Sometimes free; easy to use; good consumer
adoption; proven business models
• You can only use the application as far as what it is
Software as a
• Developers can upload a configured applications and it
“runs” within the platform’s framework;
• Restricted to the platform’s ability only; sometimes
dependant on Cloud Infrastructure provider
Platform as a
• Offers full control of a company’s infrastructure; not
confined to applications or restrictive instances
• Sometimes comes with a price premium; can be
complex to build, manage and maintain
a Service (IaaS)
5. Cloud storage:-
PUBLIC CLOUD –
A form of cloud storage where the enterprise and storage service provider are separate
and the data is stored outside of the enterprise's data center. With public cloud storage, or
external storage clouds, enterprises and small businesses offload their data storage and
archival / backup needs to a third-party cloud storage service provider, freeing them from
the expensive costs of having to purchase, manage and maintain on-premises storage
hardware and software resources
PRIVATE CLOUD –
The phrase used to describe a cloud computing platform that is implemented within the
corporate firewall, under the control of the IT department.
A private cloud is designed to offer the same features and benefits of public cloud
systems, but removes a number of objections to the cloud computing model including
control over enterprise and customer data, worries about security, and issues connected to
HYBRID CLOUD –
A combination of public cloud storage and private cloud storage where some critical data
resides in the enterprise's private cloud while other data is stored and accessible from a
public cloud storage provider. Hybrid cloud storage combines the advantages of
scalability, reliability, rapid deployment and potential cost savings of public cloud
storage with the security and full control of private cloud storage.
Lower-Cost Computers for Users -
Since applications run in the cloud, not on the desktop PC, so desktop PC does no need the
processing power or hard disk space demanded by traditional desktop software.
Lower Software Costs –
Instead of purchasing expensive software applications, we can get most of what we need for
Instant Software Updates –
Another advantage to cloud computing is that you are no longer faced with choosing between
obsolete software and high upgrade costs. When the application is web-based, updates happen
Unlimited Storage Capacity –
Cloud computing offers virtually limitless storage of nearly hundreds of Kbytes.
Increased Data Reliability
It is data centric so even if our PC crashes, all your data is still out there in the cloud, still
Universal Access to Documents -
That is not a problem with cloud computing, because you do not take your documents with you.
Instead, they stay in the cloud, and you can access them whenever you have a computer and an
Latest Version Availability
The cloud always hosts the latest version of our documents; it will automatically update it
without user‟s knowledge.
Improved Performance –
Computers in a cloud computing system boot and run faster because they have fewer programs
and processes loaded into memory.
Easier group collaboration:
Sharing documents leads directly to better collaboration. Many users do this as it is an important
advantages of cloud computing
Device independence -
We are no longer tethered to a single computer or network. Even on moving to a portable device,
our applications and documents are still available.
Improved document format compatibility.
You do not have to worry about the documents you create on your machine being compatible
with other users' applications or Isothere are potentially no format incompatibilities when
everyone is sharing documents and applications in the cloud.
Requires a constant Internet connection-
• Cloud computing is impossible if there is no Internet connection.
• A dead Internet connection means no work and in areas where Internet
connections are few or inherently unreliable, this could be a deal-breaker.
Does not work well with low-speed connections:
• Web-based applications require a lot of bandwidth to download, as do
• Each cloud systems uses different protocols and different APIs
• It may not be possible to run applications between different cloud based
Features might be limited:
• This situation is bound to change, but today many web-based applications
simply are not as full-featured as their desktop-based applications.
• For example, we can do a lot more with Microsoft PowerPoint than with
Google Presentation's web-based offering.
Stored data might not be secure:
• With cloud computing, all your data is stored on the cloud but
unauthorized users can gain access to our confidential data.
Stored data can be lost:
• Theoretically, data stored in the cloud is safe, replicated across multiple
Why cloud is a boon for and entrepreneur?:
Cloud Computing holds a unique distinction among all the IT inventions in the past two
decades, in the sense it really simplifies the concept of enabling business capability through
Information Technology resources, by a Self Service, Net work Enabled provisioning
mechanism. This ensures that the Information Needs for business are now available as a
service which can be consumed and can be served to various consumers.
So if we carefully analyze the adoption of Cloud, the major Drivers of Cloud Computing or
not the Developer or IT Community but the underlying business itself. With the following
points hold the key for its adoption.
IT (Information Technology), is unable to match the Speed at which the business
wanted to innovate
Time To Market of new Services and Capabilities is a great concern for business
While there are established IT shops around the world, the Capital Expenditure
(CAPEX) and Operational Expenditure (OPEX) are high such that the underlying
services provided by the business have to eat the cost, resulting in non competitive
Business is unable to pick and choose the business processes they wanted to adopt to
the changing market scenarios
Business demand is fluctuating, World Economy is at cross roads, Political and natural
disasters add further instability. Current IT does not allow businesses to expand and
shrunk on demand.
The above points clearly highlight that Cloud Computing is a real enabler for Business rather
Challenges faced by entrepreneurs:
The very definition of entrepreneurship is about achieving business capabilities through
innovation and business transformation. However becoming an entrepreneur is not an easy
one, various studies have indicated the following challenges for entrepreneurs , we have also
analyzed some of the promises of Cloud that can help the Entrepreneurs.
Challenges For Entrepreneur Cloud Computing Value Proposition
Financial Constraints and low
investments at least initially. While
this could be a global phenomenon
more risk minded the culture the
spending patterns will be questioned
more by the
Cloud service models aims at getting started with the
minimal infrastructure with the minimal possible
spending. Example is the major IaaS providers and their
Lack of Infrastructure, especially IT
Related infrastructure setup,
especially things like setting up net
works, firewall, storage etc.
IaaS (Infrastructure As A Service) abstracts the
complexities of setting up the complex infrastructure and
enables them for entrepreneurs. An important factor is the
availability of Map Reduce/ Hadoop and other High
Performance Compute infrastructure that lets the complex
problem solving to be taken up by almost any one even
without proper infrastructure.
Global competition and lack
of global methodologies
and solutions to support.
So far small entrepreneurs does not have a good
visibility of Global best practices and methods that they
can leverage to compete effectively with global
competitors. However viewing all the solutions from a
network enabled repository, and SaaS (Software As A
Service) market place makes the solution scope
of entrepreneurs wide open and make it global.
While the above are basic tenants of Cloud Computing that is obviously useful
Entrepreneurs, We are seeing some truly new roles that are not available before, let us
analyze those options
Cloud reference architecture
The National Institute of Standards and Technology (NIST) is an agency of the U.S. Department
of Commerce has recently created a Cloud Reference Architecture. While this is a standard
body for USA, however this has a far reaching impact across the IT industry , similar
Reference Architectures for Cloud also created by IT majors like HP, IBM with very similar
through process . The Cloud Reference Architecture identifies the major actors, their activities
and functions in Cloud Computing.
This Reference Architecture identifies five major Actors:
1. Cloud Consumer: Which is the entity that uses a service created by a Cloud
2. Cloud Provider: Entity which creates services available over Cloud that can be
consumer by the consumers.
3. Cloud Carrier: An intermediary that provides connectivity and transport.
4. Cloud Auditoria party that can conduct independent assessment of cloud services,
information System operations, performance and security of the cloud implementation.
5. Cloud Broker: An entity that manages the use, performance and delivery of cloud
services, and negotiates relationships between Cloud Providers and Cloud Consumers.
Entrepreneurs as Cloud Brokers:
As evident from the previous discussions due to the constraints, it may take a while for the
new Entrepreneurs to play the role of a Cloud Provider or a Cloud Carrier. Even though the
tenants of Cloud Computing will facilitate them quickly to become one. However several of
the innovative Entrepreneurs have a huge potential to play the role of Cloud Brokers.
As cloud computing evolves, the integration of cloud services can be too complex for cloud
consumers to manage. A cloud consumer may request cloud services from a cloud broker,
instead of contacting a cloud provider directly. A cloud broker is an entity that manages the use,
performance and delivery of cloud services and negotiates relationships between cloud providers
and cloud consumers.
This role helps entrepreneurs to provide services to consumers without any significant capital
or human investment. Cloud Brokers can achieve this by multiple means.
Service Inter mediation:
In this scenario an entrepreneur can purchase service from a provider and value add it by
enhancing with specific capabilities and provide them to consumers. For example a SaaS
service provider may provide compliance solutions, however a Service broker can ensure state
specific reporting based on the larger compliance data.
In this scenario an entrepreneur can purchase services from multiple providers roll them up
into a new service to be available for consumers. This could be a typical Credit approval
scenario of multiple services from Banks, Credit Rating Agencies and third parties can be
aggregated to provide a larger service.