IT Management report writing help on Company strategy of Hitachi Limited and cloud computing
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Write a report on Company strategy of Hitachi Limited and also discuss about cloud computing??
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EXECUTIVE SUMMARY
The real challenge in today’s high-technological world is to provide faster flexible services without investing a huge amount on the front. Every organization, today, is competing with one another over the challenge of providing faster flexible services. In such an era, cloud computing has emerged to the top of mind of most organization and the way cloud computing helps in improving and strengthening business with lower IT cost has driven out the interest of many organization.
The paper outlines the challenges that exist in the telecommunication and networking industry and how organizations have overcome those challenges using cloud computing solutions to become more flexible and adaptable to market demands in a cost effective manner by optimizing supply chain for strengthening their business resulting in successful growth. For this paper, the research is mainly focus on two organizations namely Hitachi and AAPT in Australia.
AN INTRODUCTION
1.1Company Overview: –
Hitachi Ltd, a parent company of Hitachi group formed in 1910, is a Japanese multinational company having it’s headquarter in Tokyo, Japan. Hitachi is a diversified company having multiple business segments including Information and Telecommunication system, Electrical systems, telecom systems, Component devices, Construction and Financial Services. The company has more than 30,000 employees who are working for the vision to meet the expectation of society and customers in every era of technology (Hitachi, 2012).
AAPT, a subsidy of Telecom New Zealand, is one of the largest Telecommunication Company in Australia. AAPT is one of the only three companies in Australia that owns and operates its own national voice and data network. AAPT creates a unique picture in the minds of its customers by providing highest quality solutions in Telecommunication to meet the expectations of its customers. AAPT provides business solutions in various segments including Fixed Telephony, Mobile Telephony, Internet Access, Leased Lines and Data Transmission. AAPT has more than 2,000 employees who are working to deliver unique network solutions in Telecommunication to make a classic experience of its customers. AAPT has won the 2012 CeBIT.AU business award for its outstanding delivery service in information and telecommunication industry (AAPT, 2012).
1.2Cloud Computing: –
Cloud computing solution may be defined as applications that are delivered as services over the internet. These applications can either be client or server applications that are offered over the internet. The basic architecture of Cloud Computing is shown below:
To run a cloud computing services, datacenter hardware and system software are needed. The datacenter hardware and system software is known as Cloud. Cloud Computing services are consumed either through web browser or Application Programming Interface (API). The API provides virtualized resources that can be added or withdrawn as per the request posted through the interface. This architecture provides scalability and flexibility of cloud application without having any impact or changes on the interface to the end user. The cost for cloud computing is very low because the consumer uses the infrastructure of cloud computing from a third party on rental basis (Velte & Velte, 2009).
CLOUD COMPUTING: TRANSITIONAL SHIFT
In the era of technology, cloud computing has boost the business for many organization including the IT industry. Many organizations who wished to support their business processes used to face the trouble of buying all the necessary ingredients to support IT and decide on software platform on which the functionality would be obtained. Moreover, companies used to pay huge amount for the initial investment and then pay for the maintenance for the hardware and software.
However, with the emergence of Cloud Computing, organizations need to invest money in purchasing software applications, platform services and infrastructural services. This transition is possible because of Internet as Internet is now served as an IT resource that is available everywhere. Moreover, the Internet is increasingly used as a platform which extracts information from the physical plane and provides it where it is needed. As a result, it reduces cost of obtaining IT services.
Further, cloud computing is growing at a rapid speed commanding the global market in the region approximately USD 60 million. Cloud computing helps telecommunication organization in reducing cost and generating revenues. A major share of revenue is generated from Business Processes as a Service (BPaaS). Cloud computing also offers Software as a Service (SaaS), such as office tools or CRM as well as Infrastructure and Platform Solutions (IaaS/PaaS) providing computing and data storage. The overall market for cloud computing is estimated to grow from USD 5.8 Billion to USD 20.72 Billion by the year 2014 (Yankee, 2012).
CLOUD COMPUTING: A COMPETITIVE ADVANTAGE
Cloud computing solutions have created a unique presence in the minds of many enterprises with innovative, feasible business models and solutions. Studies have discovered that approximately 25 per cent of all IT services will be delivered in the form of cloud computing solutions. Cloud computing solution is a technology with the focus of providing multi-client capability with access to Internet anywhere across the globe. Cloud computing solutions have open doors for telecommunication companies in creating major business opportunities to reduce cost, generate new revenue and differentiate in the cloud ecosystem with network services (IBM Global Business Service, 2012).
With the introduction to cloud computing solutions, the traditional linear value chain for IT services, extending from consulting, design, and implementation to maintenance of the application has changed. As a result, the cost of transaction is reduced with the cloud computing new price and service models. Moreover, using a professional IT service in the cloud will give birth to a large number of small, innovative enterprises that will have the capability of creating new IT services with minimum capital requirement.
Cloud computing solutions have provided the facility to easy-to-use basic IT services and infrastructure as Web services. This has allowed telecommunication companies to expand their scope of value-addition beyond traditional connectivity services. Also, unlike traditional connectivity services where quality and privacy were the main issues, the cloud computing solutions have taken great care towards the privacy, security and quality of network so as to meet the customer expectations. This adds to the position of telecommunication companies as an important aspect by adding incremental value to broadband network services. Further, the user experience is enlightened by the fact that such cloud computing services do not require heavy commitment or expenses by the consumer, nor are limited by the device used (enStratus, 2012).
Cloud based solutions that deliver relevant services to drivers through appropriate channels prior to and during the trip will be valued. Mobile solutions already exist today that leverage mobile phones’ location-based capabilities to engage the consumer based on their specific geographic location, and these will become increasingly important, tailored and sophisticated. Cloud computing companies operate on a pay-as-you-use model, or in other words, a demand-only model. As a business availing of cloud computing services, you only pay for the services you require and use. This works out to be much cheaper than acquiring equipment you hardly use (IBM Global Business Service, 2012).
HITACHI: NETWORKING FOR CLOUD COMPUTING
With the enhancement in cloud computing, data in corporate world is increasingly accumulated in data centers, which is making a trend for the use of cloud computing services based around these data centers. This trend is catering demands for data centers to achieve greater reliability and operational performance.
The basic requirements for networks include the following: –
- Handle the rapid growth in traffic resulting from the consolidation of computing
- Ensure the reliability needed for using services over a network
- Improve data center operations to maintain reliable operation, including fault response, operational monitoring, and the introduction, migration, and reconfiguration of cloud services.
To cope with the growth of traffic consolidated around data centers, progress is being made on standardizing low-latency, lossless Ethernet communications and LAN/SAN integration techniques for achieving better maintenance and operational characteristics by reducing the number of IT devices, Hitachi is working on the supply of network equipment, including the next generation of Ethernet switches.
Further, Hitachi is also working on supplying network solutions to improve data center operational performance and maintenance as well as improving functions for interoperation between data centers to allow for data center backup and situations in which IT equipment from different data center is used.
With the growth of the cloud computing services, telecommunication companies are required to provide communication services with improved levels of reliability. However, in order to achieve the required result, telecommunication companies face the issue of Internet and telephony services becoming more and more complex as each of them have system-specific transport system. Moreover, with Internet Protocols (IP) networks being largely distributed, communication services have limited ability to provide guaranteed quality services. Hence, Hitachi is using the Multi-protocol Label Switching packet-based transport method to overcome the challenges faced by telecommunication companies by proving end-to-end guaranteed quality services.
It is estimated that the trend towards cloud computing will enhance the use of IT systems globally by improvising the efficiency of cloud services for creating new business opportunities. Data centers provide the infrastructure for cloud services and Hitachi is working on the networks they use internally as well as the network carrier that supports them.
APPT: NETWORKING FOR CLOUD COMPUTING
The main focus of using cloud computing is to avoid the cost and hassles of managing IT services and infrastructure. Further, the benefits for using cloud computing is to have an effective and efficient work place, freedom to use IT services and to have a secure platform. APPT is working and has successfully achieved the benefits of using cloud computing. AAPT cloud services include:
- AAPT Business Application
- Content Delivery Network (CDN)
- AAPT Co-Location
The trend of cloud computing has helped telecommunication companies transform their business, enabling a seamless evolution from being simple network providers to taking on the role of integrated cloud service providers for experience and efficiency. AAPT cloud computing services has helped many organizations in Australia in addressing the business value of cloud adoption, implementation scenarios and the technical implications of cloud along with their impact on the enterprise.
AAPT is one of Australia’s leading Telecommunication company and has provided cloud computing solutions, which enable operators to improve their customer experience, operational efficiency, expand their services, assure privacy and security as well as optimize their network for guaranteed quality services.
CONCLUSION
The telecom industry is focused on making the most of global operations, globalizing products and brands and deeply changing the mix of capabilities, knowledge and assets. As telecom companies add new capabilities and enter new market segments, they face increased challenges: ever-growing complexity and the cost of managing IT assets. Cloud computing solutions have provided the facility to easy-to-use basic IT services and infrastructure as Web services. This has allowed telecommunication companies to expand their scope of value-addition beyond traditional connectivity services. Also, unlike traditional connectivity services where quality and privacy were the main issues, the cloud computing solutions have taken great care towards the privacy, security and quality of network so as to meet the customer expectations. This adds to the position of telecommunication companies as an important aspect by adding incremental value to broadband network services. Further, the user experience is enlightened by the fact that such cloud computing services do not require heavy commitment or expenses by the consumer, nor are limited by the device used. Cloud computing solution is a technology with the focus of providing multi-client capability with access to Internet anywhere across the globe. Cloud computing solutions have open doors for telecommunication companies in creating major business opportunities to reduce cost, generate new revenue and differentiate in the cloud ecosystem with network services. Cloud Computing has the attributes to help companies in the telecom industry in meeting business challenges through the combination of low capital investment costs, standard applications and platforms, quick deployment and lower running costs.
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