Copyright © 2011 Tata Consultancy Services Limited

23rd September 2011

SMBs Time to Grow BigLeveraging the new Channel

iON SolutionsPRESENTATION

• Introduction

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 2 -

TCS Small and Medium Business SolutionsAgenda

iON SolutionsPRESENTATION

• Worldwide ICT spend in the SMB market segment is growing at 3 times that of large companies

• Global Software as a Service market is growing at 25% CAGR

- 3 -

Worldwide SMB SpendWorldwide SMB Spend

1.04

2.47

2010 2015

Trill

ion U

SD

Indian SMB SpendIndian SMB Spend

11.9

48.5

2010 2015B

illio

n U

SD

Source: AMI, TCS Research Desk

Small is Big • 95% of Indian firms are SMBs

Small is Untapped • 60% of SMBs in India still do not have any ICT infrastructure

Small is Ready • Broadband Explosion; 9.5 million connections

"The needs of this market are unique and requires focused attention“, but what are the hindrance…

TCS Small and Medium Business SolutionsSMB is a large untapped segment

iON SolutionsPRESENTATION

• Introduction-

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 4 -

TCS Small and Medium Business SolutionsAgenda

iON SolutionsPRESENTATION

Current Challenges faced by SMB’s

Financial

Technological

Operational

Risk

• Investments in ICT are depriving cash for Core Business Operations• “Pay First – Use Later” models are forcing to pay for the cost of failed ICT implementations• The Cost to Maintain IT consumes 65% to 75% of total ICT spend

• Rapid Technology Obsolescence is leading to spiraling cost to run ICT operations• Lack of Technology expertise is depriving adoption of fit for purpose ICT systems• Lack of integration across ICT systems is preventing information driven business decisions

• Inability to retain ICT Talent is disrupting effective ICT management• Lack of single accountable partner for ICT leading to poor service level commitments

• Lengthy implementation cycle of traditional models resulting in loss of market share to new entrants leveraging ready to use technology• Lack of credible ICT solutions is increasing the risk of non compliance to statutory needs

iON SolutionsPRESENTATION

• Introduction- Exciting Market Opportunity

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 6 -

TCS Small and Medium Business SolutionsAgenda

7

What is Cloud?, What is its relevance?

• A style of computing in which scalable and elastic IT-enabled

capabilities are delivered as a service to external customers

using Internet technologies

Cloud Computing

• Scalable and Elastic

• Shared

• Metered–by-use

• Service based

• Delivered over Internet

Key Attributes

Service offering

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

• IT-as-a-Service

8

Private Cloud A private cloud infrastructure is owned or leased by a single

organization and is operated solely for its businessCommunity Cloud The community cloud is shared by several organizations and

supports a specific community that has shared concerns. For Eg: small businesses operating in a cluster often serve the same market, and have similar compliance requirements

Public Cloud The public cloud is owned by a service provider organization

that offers cloud services to the general public or to a large industry group. For Eg: Amazon Web Services and Rack Services

Hybrid Cloud The hybrid cloud is a composition of two or more clouds that

remain independent but are bound together by standard or proprietary technology that enables data and application exchange

Cloud Models

Deployment Model

iON SolutionsPRESENTATION

• Introduction- Exciting Market Opportunity

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 9 -

TCS Small and Medium Business Solutions Agenda

iON SolutionsPRESENTATION- 10 -

TCS Small and Medium Business SolutionsBuilt a unique business model to address SMB needs

We studied the business challenges of SMBs to redefine the ICT Consumption Model

IT-as-a-ServiceIT-as-a-Service

On-Demand Business Capability to drive Service Level Efficiencies

On-Demand Business Capability to drive Service Level Efficiencies

Pre-built Compliance Processes for Security and Statutory requirements

Pre-built Compliance Processes for Security and Statutory requirements

Cloud Computing technology for maximum Cost Efficiency

Cloud Computing technology for maximum Cost Efficiency

Pre-Integrated Suite of Hardware, Network and Software

Pre-Integrated Suite of Hardware, Network and Software

Embedded Business Process for Quick Start and subsequent configurations

Embedded Business Process for Quick Start and subsequent configurations

Opex based Build-as-you-Grow and Pay-as-you-Use business model

Opex based Build-as-you-Grow and Pay-as-you-Use business model

iON SolutionsPRESENTATION

• Introduction- Exciting Market Opportunity

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 11 -

TCS Small and Medium Business SolutionsAgenda

iON SolutionsPRESENTATION

TCS Small and Medium Business SolutionsDeveloped innovative IPR by working with select customers

- 12 -

Desktop/Laptops

PrintersOn Premise

ServersAll System Software

CRM F&A HRMS Payroll Projects

Business Analytics

Document Mgmt

Online Presence

Mgmt

Enterprise Intranet Mgmt

Messaging Solution

Network Connectivity

Data Center Hosting

Network Devices

Manufacturing

Retail Wellness Prof. Services

L5P Biz ServicesReward-

RecognitionVirtual

Community

L5

L4

L3

L2

L1

L6Software Solution Network Solution Hardware

Solution

Office Mgmt

Solution

Assessment

Education

P&I

iON SolutionsPRESENTATION

• Introduction- Exciting Market Opportunity

• Challenges for the SMB Industry

• Is Cloud an answer, what is its relevance?

• iON-Pay-per-Use Business Model

• Integrated Solution leveraging Cloud Computing

• Key Value Proposition for SMB

- 13 -

TCS Small and Medium Business SolutionsAgenda

iON SolutionsPRESENTATION

TCS Small and Medium Business SolutionsDifferentiate through an integrated Value Proposition

- 14 -- 14 -

BusinessBusiness

• Growth and Reach

• TCO reduction (35-40% lower than traditional license model)

• Service Level, Compliance and Productivity efficiencies

SolutionSolution

OrganizationOrganization

• Fit-for-purpose solutions relevant to SMBs

• Standardized solutions with high degree of configurability

• Perpetual beta model (No Obsolescence) ensuring business agility

• Global experience & India advantage

• Integrated end-to-end, best in class IT solutions

• Delivery robustness by ensuring high service levels

Experience of CertaintyExperience of Certainty

Copyright © 2011 Tata Consultancy Services Limited

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