Cloud Computing

Retail Sector

Group 10

Kshitij Gupta (8)
Pratik Bansal (28)
Pradeep Kumar Sharma (32)
Deepank Paliwal (43)
Prateek Bahl (57)
Prateek Sachdeva (58)
ACKNOWLEDGEMENT
We feel immensely pleased in presenting this report as a part of our project in Information Technology
for Business Decision.
We would like to extend our word of thanks to Ms. Deepali for throwing light on the different aspects of
IT, the formal and hence providing us an adequate path for the completion of this report.
We would also like to thank all the seniors who had given their opinions regarding all the queries that
we had during the course of this research.



















Table of Contents
Cloud Computing .......................................................................................................................................... 4
Characteristics ............................................................................................................................................... 4
Service Models .............................................................................................................................................. 5
Deployment Models...................................................................................................................................... 6
Real-time Insight ........................................................................................................................................... 8
Increased Savings .......................................................................................................................................... 8
1. Optimize your foundation .................................................................................................................. 10
2. Create a seamless Platform ................................................................................................................ 11
3. Engage Customers ............................................................................................................................... 11
4. Innovate and Learn ............................................................................................................................. 11
New Applications .................................................................................................................................... 12
Strategic Applications ............................................................................................................................. 12
Legacy Applications ................................................................................................................................. 12
Example 1: WalMart ............................................................................................................................... 13
So why did Walmart start considering Cloud Computing 2011? ............................................................ 13
Benefits from Cloud Computing: ............................................................................................................ 14
Future Scope of Cloud Computing in WalMart: ...................................................................................... 15
Example 2: Innovator case study: 3M Visual Attention Service ............................................................. 15
Challenge................................................................................................................................................. 15
Cloud-enabled business model: .............................................................................................................. 15
Business results: ...................................................................................................................................... 16
Example 3:Disruptor case study: Comcast Xcalibur ................................................................................ 16
Challenge................................................................................................................................................. 16
Cloud-enabled business model ............................................................................................................... 16
Business results ....................................................................................................................................... 17
Security Issues faced by Cloud computing .............................................................................................. 18
Data Integrity .......................................................................................................................................... 18
Data Theft ............................................................................................................................................... 18
Privacy Issues .......................................................................................................................................... 19
Infected Application ................................................................................................................................ 19
Data Loss ................................................................................................................................................. 19
Data Location .......................................................................................................................................... 19
Security on Vendor level ......................................................................................................................... 19
Security on User level ............................................................................................................................. 19
Legacy issue in implementation .............................................................................................................. 19





Introduction
Cloud Computing
The term cloud appears to have its origins in network diagrams that represented the internet,
or various parts of it, as schematic clouds. Cloud computing was coined for what happens
when applications and services are moved into the internet cloud. Cloud computing is not
something that suddenly appeared overnight; in some form it may trace back to a time when
computer systems remotely time-shared computing resources and applications. More currently
though, cloud computing refers to the many different types of services and applications being
delivered in the internet cloud, and the fact that, in many cases, the devices used to access
these services and applications do not require any special applications. Many companies are
delivering services from the cloud. Some notable examples as of 2010 include the following:
Google has a private cloud that it uses for delivering many different services to its users,
including email access, document applications, text translations, maps, web analytics, and much
more.
Microsoft Has Microsoft Sharepoint online service that allows for content and business
intelligence tools to be moved into the cloud, and Microsoft currently makes its office
applications available in a cloud.
Salesforce.com runs its application set for its customers in a cloud, and its Force.com
and Vmforce.com products provide developers with platforms to build customized cloud
services.
But, what is cloud computing? The following sections note cloud and cloud computing
characteristics, services models, deployment models, benefits, and challenges.
Characteristics
Cloud computing has a variety of characteristics, with the main ones being:
Shared Infrastructure Uses a virtualized software model, enabling the sharing of physical
services, storage, and networking capabilities. The cloud infrastructure, regardless of
deployment model, seeks to make the most of the available infrastructure across a number of
users.
Dynamic Provisioning Allows for the provision of services based on current demand
requirements. This is done automatically using software automation, enabling the expansion
and contraction of service capability, as needed. This dynamic scaling needs to be done while
maintaining high levels of reliability and security
Network Access Needs to be accessed across the internet from a broad range of devices
such as PCs, laptops, and mobile devices, using standards-based APIs (for example, ones based
on HTTP). Deployments of services in the cloud include everything from using business
applications to the latest application on the newest smartphones.
Managed Metering uses metering for managing and optimizing the service and to provide
reporting and billing information. In this way, consumers are billed for services according to
how much they have actually used during the billing period. In short, cloud computing allows
for the sharing and scalable deployment of services, as needed, from almost any location, and
for which the customer can be billed based on actual usage.
Service Models
Once a cloud is established, how its cloud computing services are deployed in terms of business
models can differ depending on requirements. The primary service models being deployed (see
Figure 1) are commonly known as:
Software as a Service (SaaS) Consumers purchase the ability to access and use an
application or service that is hosted in the cloud. A benchmark example of this is
Salesforce.com, as discussed previously, where necessary information for the interaction
between the consumer and the service is hosted as part of the service in the cloud. Also,
Microsoft is expanding its involvement in this area, and as part of the cloud computing option
for Microsoft
Office 2010, its Office Web Apps are available to Office volume licensing customers and Office
Web App subscriptions through its cloud-based online Services
Platform as a Service (PaaS) Consumers purchase access to the platforms, enabling them
to deploy their own software and applications in the cloud. The operating systems and network
access are not managed by the consumer, and there might be constraints as to which
applications can be deployed.
Infrastructure as a Service (IaaS) Consumers control and manage the systems in terms of
the operating systems, applications, storage, and network connectivity, but do not themselves
control the cloud infrastructure .Also known are the various subsets of these models that may
be related to a particular industry or market. Communications as a Service (CaaS) is one such
subset model used to describe hosted IP telephony services. Along with the move to CaaS is a
shift to more IP-centric communications and more SIP trunking deployments. With IP and SIP in
place, it can be as easy to have the PBX in the cloud as it is to have it on the premise. In this
context, CaaS could be seen as a subset of SaaS.
Deployment Models
Deploying cloud computing can differ depending on requirements, and the following four
deployment models have been identified, each with specific characteristics that support the
needs of the services and users of the clouds in particular ways..
Private Cloud cloud infrastructure has been deployed, and is maintained and operated for
a specific organization. The operation may be in-house or with a third party on the premises.
Community Cloud cloud infrastructure is shared among a number of organizations with
similar interests and requirements. This may help limit the capital expenditure costs for its
establishment as the costs are shared among the organizations. The operation may be in-house
or with a third party on the premises.
Public Cloud cloud infrastructure is available to the public on a commercial basis by a cloud
service provider. This enables a consumer to develop and deploy a service in the cloud with
very little financial outlay compared to the capital expenditure requirements normally
associated with other deployment options.
Hybrid Cloud cloud infrastructure consists of a number of clouds of any type, but the clouds
have the ability through their interfaces to allow data and/or applications to be moved from
one cloud to another. This can be a combination of private and public clouds that support the
requirement to retain some data in an organization, and also the need to offer services in the
cloud.






Cloud computing in retail world
With cloud technology already gaining adherents throughout the IT community, it is only a
matter of time before cloud computing becomes commonplace in the business and economic
sectors. The retail sector is fast becoming affected by the potentialities presented by cloud
computing.

There has been a considerable amount of buzz about businesses running software, like
customer relationship management (CRM), accounting, human resources, and other office
applications, in the cloud. Big-name companies such as Amazon, Salesforce.com, Microsoft, and
Google are also making the move to cloud computing. Instead of implementing their
complicated applications themselves with their own IT departments, businesses can opt to run
the apps on a shared data center. In SaaS (Software as a Service), which is one of the main
offerings of cloud computing, applications can be provided on demand, over the Internet. With
all the noise being made about the benefits of cloud computing for big business, retailers seem
to be left behind. The Association for Retail Technology Standards, the standards division of the
National Retail Federation (NRF-ARTS), released a report called "Cloud Computing for Retail" to
provide guidance for obtaining the benefits of this computer technology. The ARTS
Cloud Computing Workgroup, at their ARTS Users' Meeting, also had a whitepaper intended to
bust myths around cloud computing in retail.

However, a cloud-based killer app for the retail industry has yet to emerge, which is probably
what is preventing retailers from enthusiastically joining the cloud computing bandwagon. At
an International Data Corporation (IDC) conference about cloud computing, the retail industry
had many attendees, but they told IDC that they were still investigating cloud computing and
were not yet ready to buy. They also expressed their interest in the concept of the private
cloud, which is just another way of saying that they want to use the technologies behind cloud
computing to operate their own clouds for their businesses, possibly because they have issues
with the security of data in the public cloud.

David Dorf, the director of technology strategy for Oracle Retail, advises retailers to choose
cloud computing for apps that are not mission critical, like expense reporting or invoice
matching, so perhaps the killer app that cloud computing needs to become more attractive to
retail will be involved with the more generic processes such as these. There are already some
products trying to leverage the cloud computing wave for retail, like an e-commerce cloud
platform that lets retailers integrate social networking features into product detail pages on
their websites.




Impact of Cloud Computing on Retailers

Internet-based computing has a number of implications for businesses. Among other things,
retailers are empowered to improve their production and services while, at the same time,
giving them opportunities to cut back on expenses.

Real-time Insight

How does a business get an accurate picture of its business performance at any given point?
The traditional practice of business analysis, depending on how the data is gathered, provides
information that may come in hours or days after data extraction. Now, this information isnt as
real-time as we think it is. This information is something that actually happened several hours
ago, which implies the consequent risks of possessing stale data.

With the emergence of cloud computing as an avenue for accessing business applications on
the time, real-time analytics provide retailers with real-time insight into the current
performance of business operations in comparison to key performance indicators. Aside from
real-time insight, this application is beneficial for retailers because it allows predictive
modeling, which can improve the effectiveness of business operations. Using real-time insight,
retailers can fine-tune customer programs as necessary and immediately address problems
with supply chain, merchandising, or marketing departments of their operations, among others.
For example, using real-time inventory data, a retailer can re-organize the supply chain to
ensure that the right product is delivered at the right time. Not only does real time analytics
allow easy and time-saving inventory, it also cuts costs for extra inventories, which means more
money for his business.
Increased Savings

Retail cloud computing helps retailers monitor and immediately address deficient operations,
thereby saving them any further costs due to deficient merchandise. On top of that, cloud
computing decreases company expenditures, translating to further increased savings for the
retailer. Randi Levin, the chief technology officer of the City of Los Angeles, recently revealed
how cloud computing has helped her city save millions of dollars in information technology
costs. Several more government agencies are implementing cloud computing and have
achieved as much as 50% in savings associated with IT operations. If this works for large cities,
imagine the billions of dollars in cost savings this can give retailers. Maintaining hundreds of
computers and managing an IT department are not only demanding responsibilities, but they
are also very expensive accounts. Cloud computing allows retailers to manage these critical
applications centrally, thereby reducing both costs and complexity.

























Implementation across Retail Sector

Cloud-based solutions for both consumer and business applications are achieving higher
profiles, and they are already being used by a growing number of retailers to support their most
important business functions including the mission-critical point of sale.
Unlike many other technologies that retailers have had to adapt to meet their business needs,
cloud computing was designed specifically with the cost conscious, data-deluged retail
enterprise in mind.
For retail CIOs seeking a quick ROI payback from any proposed new initiative, adopting cloud-
based solutions offers almost immediate cost savings. Not only is there less need for up-front
capital investment in hardware, software and deployment, but these on demand solutions are
typically available on a per-usage basis. Operating in a highly seasonal industry, retailers have
typically had to make IT investments sufficient to support their busiest times. In contrast, per-
usage pricing opens the door for retailers to literally use as much of an application as they need
at any given time, achieving savings during less busy times. In addition, this pricing model
allows retailers to move many IT costs from the capital expenditures budget line to the
operating expenditures line.

Planning For Cloud
Getting business value from a cloud strategy requires planning. Cloud computing is mature
enough to allow for specific guidance to retailers about leveraging the cloud. Using this four
step approach can ensure that you are ready to maximize business value from your cloud
investment.



1. Optimize your foundation

When we look at how cloud computing can help the retail enterprise we always advocate
starting with an intelligent retail foundation. Just as you would not select your product
assortment until you know what kind of retail store you will operate, so it is that there are
some foundational aspects of your business that make sense to cloud enable first. Early
considerations for cloud computing includes solutions such as:
Supplier collaboration
Forecasting
Point of Service
Operations

2. Create a seamless Platform

The next step is to connect all of your consumer experiences to the foundation. These
consumer touch points include:
Retail store or others
Web
Catalogue
Customer call centre

Each of these touch points will need to take advantage of the foundation of information that is
provided to the right device; based on the use case. This is where the foundational return on
investment begins to take shape. By connecting these experiences retailers are able to:
Achieve a seamless relationship with their customers.
Take advantage of the best cloud enabled device for the job.
Enable associates to be well informed with critical customer service information such as
product availability and specifications.

3. Engage Customers

Customer Engagement is often the goal for any cloud based strategy. At this point we have
enabled the business to support a single view of the customer across all touch points which
enables a differentiated experience through aspects such as:
Loyalty
Digital Signage targeted or customized by demographic
Interactive in-store applications
Personalized shopping experiences including promotions

4. Innovate and Learn

Finally augmentation or growth of the entire retail business model is possible which enables the
business to explore additional channels, social media connection and consumer mobility
options which can drive differentiation for a brand.







Identify Your Cloud type
After addressing the considerations related to moving towards a cloud model, the next step is
to identify the profile of the candidate applications. Defining the application profile will further
define the approach to cloud enabling an application.

New Applications
New applications that are targeted at a broad consumer base or that need to be consumed by
employees wherever they engage consumers are definite candidates for cloud based delivery.
With this, you still have the choice to provide the compute and the data either on premises or
on a platform as a service (PaaS) offering such as Windows Azure.

Strategic Applications
Applications in the Strategic category consist of solutions that you want to enable for broader
access; but are part of your core line of business application offerings. Applications such as
labour scheduling or merchandise forecasting may benefit from cost savings in a multi-tenant
environment while allowing high scalability for peak times. Again, there is choice on whether
you provide that scalability on premises or in the cloud. The main objective is to ensure that the
applications are cloud ready and can run in a virtualized, scalable environment.

Legacy Applications
Legacy applications that require complex integration with other internal systems and/or have
very sensitive information may be best served by a private cloud environment that is highly
scalable yet is only accessible from a secure device.
Selecting an Approach
With the information about basic considerations and the application profile, selecting an
approach to modernizing an application becomes clearer. The simplest form of selection is to
align application type to a specific cloud approach.

Type of Application Cloud Type Examples
New Application Public Cloud Loyalty, Promotions
Strategic Application Hybrid Cloud Store Operations, Clientelling
Legacy Application Private Cloud LOB Apps,Financials







Examples of Cloud Implementation

Example 1: WalMart

WalMart before using Cloud Computing:
$421.849 billion annual sales 2010
In 15 countries, 8500 Stores worldwide
2.1 million associates worldwide, Walmart employs 1% of America
US stores visited by 100 million customers every week. In other words, 1/3 of America
goes to Walmart every week!!
1million customer transactions every hour
databases estimated > 2.5 petabytesthe equivalent of 167 times the books in
Americas Library of Congress
So why did Walmart start considering Cloud Computing 2011?

WalMart uses cloud computing to analyze its sales data.
#1 strategic
technology initiative
Dangerous to not
have a cloud strategy
Gartner
The organization specifically adopted cloud based applications to visualize sales data
and enhance its analysis for operations in china.
To meet Walmarts massive processing/storage capacity requirements
Provide a flexible application development environment
Provide information on the cloud architecture
Allow for secure access to data outside of the corporate firewall
Fast and easy scalability
An environment that supports rapid application deployment
Rapid application response times
An environment that supports data quality and integrity
An environment that places control in the hands of trained IT professionals
A secure deployment and operational environment
Accessibility to and integration of in-house applications and data
A cost-effective solution for Walmart and their vendors
Business intelligence capabilities
A platform suited to mobile applications and accessibility
Walmart is looking to create a best-in-class global e-commerce platform to power anytime,
anywhere shopping for our customers. The Platform team has been working tirelessly to build
the tools to help our developers deliver big site changes faster, explains Walmart Public
Relations Director Ravi Jariwala.

Benefits from Cloud Computing:
Through adoption of cloud technology in this area of the business, the organization has
been able to cut it operational costs by 75% with elimination of need for new servers.
With its abundance of prior experience in the retailing and distribution sector, in
addition to its cloud computing and other cutting-edge technologies, WalMart China
was quick to adopt new sales data visualization system.
The organization has even announced its plans for development of a cloud-based sales
data visualization system for three of its Chinese sales centers in Shanghai, Shenzhen
and Dalian. The new system will begin operations in September 2013.
Deployment of the new cloud based system has facilitated customer interactions for
WalMart.
The retailer can process status of orders rapidly, in addition to enhancing the sharing
and analysis of information and standardizing business processes that previously relied
on individual employee skills.
Cost-Effective for Walmart and their Vendors - Without the need for application
servers and database servers onsite, customers can save an average of $8,000 for
startup hardware costs, depending on the number of users and the customers
processing needs. by Chechelkonogov, Chief Technology Officer, Acumatica.
Accessibility and Integration of In-House Based Applications and Data
Secure Deployment and Operational Environment
Rapid Application Response Times
Flexibility in Application Development
Future Scope of Cloud Computing in WalMart:
This will enable the company to develop more competitive sales activities.
In addition, the system will allow WalMart to view local information, including data by
region and business category, in real time from the companys headquarters so as to
quickly and seamlessly respond to changing consumer needs.
Moreover, by employing a cloud platform for the system, the company can avoid having
to maintain new servers, network devices and other ICT assets. This, in turn, will reduce
costs, including operational costs, by 75% (compared to building an on-premise system).

Example 2: Innovator case study: 3M Visual Attention Service

The 3M Visual Attention Service is an online scanning tool that scientifically analyzes design
effectiveness based on how the average human eye responds. VAS marries vision science with
technology to help designers, marketers and other communicators test the visual impact of
their content and increase the probability that viewers will notice the most important elements
of a design.
Challenge
Since the global design community is made up of copious small design organizations, 3M
needed to make the new capability accessible from anywhere, affordable to many and available
as needed during a design project. By delivering VAS using cloud technology, 3M is able to offer
the service on a continuous basis without requiring customers to install special software to use
it. Hosting the solution via cloud also helps the company ensure the latest version is always
available for customers.
Cloud-enabled business model:
3Ms cloud-enabled business model allows it to offer a new solution, known as VAS, to a new
audience the creative design community. The cloud-based offering allows 3M to transform its
role in the product development value chain by closely integrating with a global network of
designers. The affordable, flexible, cloud-based, pay-as-you-go model allows the company to
deliver VAS in a fast, user-friendly manner that fits into a designers existing design process.
Business results:
By hosting VAS via cloud, 3M achieved:
A highly scalable environment important during peak design times
A low up-front investment and a flexible pay-as-you-go pricing model to help significantly
reduce hosting costs and optimize profits
The ability to attract new customers with an innovative solution while facilitating tighter
integration within the product design ecosystem.
Example 3:Disruptor case study: Comcast Xcalibur
Comcast Corporation is a leading media, entertainment and communications company. It
operates cable systems and develops, produces and distributes entertainment, news, sports
and other content for global audiences. It is also one of the nations largest video, high-speed
Internet and phone providers to residential and business customers.
Challenge
In 2011, Comcast piloted Xcalibur, its next generation cloudbased TV platform that aims to
revolutionize the way people watch TV. Xcalibur moves the company beyond the delivery of
channels and video via set top boxes that use digital television technology to leveraging cloud
architecture that delivers live TV service to any Internet-connected device. Leveraging Internet
Protocol (IP) technology, the company can update its guide and add features more easily and
cheaply. It also helps Comcast meet the demands of connected customers to watch TV
wherever they want and access content sources more seamlessly.
Cloud-enabled business model
The cloud-based platform shifts the ability to control content into the cloud. It enables live
video feeds that serve the evergrowing numbers and types of mobile and connected devices.
Customers can find content tailored to their needs in new ways, for example, by using an iPad
app to choose channels, on demand videos and Xfinity online streaming videos. They can then
watch their selected content when and where they want whether on TV, tablet or other
device. This personalized TV experience, combined with a powerful search engine and Internet
apps to access non-TV content, as well as the ability to share via social media channels, allows
Xcalibur to create a radically different customer value proposition, with the potential of
attracting entirely new customer segments in the future.
Business results
The Wall Street Journal cited this move to the cloud as evidence of a new phase in how
Internet technologies are transforming television. Benefits thus far to Comcast include:
Meeting customer demands for easier access to TV and other Internet-enabled content
Delivering content to more devices than before
Creating new apps faster and more cheaply
Making UI changes more quickly and easily





Challenges faced in Cloud computing in
Retail Industry
The advantages of cloud computing may be very appealing but nothing is perfect. Cloud got many issues
legacy systems are not ready for the cloud prohibits modern applications such as mobility and social
media.
Security Issues faced by Cloud computing
When it comes to Security, cloud really suffers a lot. The vendor for Cloud must make sure that the
customer does not face any problem such as loss of data or data theft. There is also a possibility where a
malicious user can penetrate the cloud by impersonating a legitimate user, there by infecting the entire
cloud thus affecting many customers who are sharing the infected cloud. Some of the problem which is
faced by the Cloud computing are: -
1. Data Integrity
2. Data Theft
3. Privacy issues
4. Infected Application
5. Data loss
6. Data Location
7. Security on Vendor level
8. Security on user level
Data Integrity
When a data is on a cloud anyone from any location can access those datas from the cloud. Cloud does
not differentiate between a sensitive data from a common data thus enabling anyone to access those
sensitive datas. Thus there is a lack of data integrity in cloud computing.
Data Theft
Most of the cloud Vendors instead of acquiring a server tries to lease a server from other service
providers because they are cost affective and flexible for operation. The customer doesnt know about
those things, there is a high possibility that the data can be stolen from the external server by a
malicious user.
Privacy Issues
The Vendor must make sure that the Customer Personal information is well secured from other
operators. As most of the servers are external, the vendor should make sure who is accessing the data
and who is maintaining the server thus enabling the vendor to protect the customers personal
information.
Infected Application
Vendor should have the complete access to the server for monitoring and maintenance, thus preventing
any malicious user from uploading any infected application onto the Cloud which will severely affect the
customer.
Data Loss
Data loss is a very serious problem in Cloud computing. If the vendor closes due to financial or legal
problems there will be a loss of data for the customers. The customers wont be able to access those
datas because data is no more available for the customer as the vendor shut down.
Data Location
When it comes to location of the data nothing is transparent even the customer dont know where his
own datas are located. The Vendor does not reveal where all the datas are stored. The Datas wont
even be in the same country of the Customer, it might be located anywhere in the world.
Security on Vendor level
Vendor should make sure that the server is well secured from all the external threats it may come
across. A Cloud is good only when there is a good security provided by the vendor to the customers.
Security on User level
Even though the vendor has provided a good security layer for the customer, the customer should make
sure that because of its own action, there shouldnt be any loss of data or tampering of data for other
users who are using the same Cloud.
Legacy issue in implementation
One of the most challenging cases to consider is the fact that legacy systems are not ready for the cloud.
This shortcoming also prohibits you from taking advantage of modern applications such as mobility and
social media. By transforming your legacy systems you have a modern platform to address the
increasing demands of the technology savvy shopper.
Legacy modernization can have a significant impact on a retailers ability to compete in todays market.
The effort to modernize requires a unique discipline within the IT ecosystem. The effort to modernize
applications and keep the business logic intact has become a critical enabler to reduce operational costs
and improve operational efficiency.

References

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved
=0CD4QFjAB&url=http%3A%2F%2Fdownload.microsoft.com%2Fdownload%2F0%2F5%2
F2%2F052E36E8-A901-4E4E-BDBD-
A25424EAAD4B%2FJourney%2520to%2520Cloud%2520Whitepaper_Final.pdf&ei=9YUp
Ur-
gK4TJiAesxYGoDg&usg=AFQjCNFbGc9fhnVX35wB9gHhOPRcJQtCzw&bvm=bv.51773540,
d.aGc
http://www.verizonenterprise.com/resources/thoughtleadership/tl_cloud-based-
technology-identifying-key-opportunities-for-retail_en_xg.pdf
http://www-304.ibm.com/easyaccess3/fileserve?contentid=215289