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TCS unveils iON cloud-computing based solution for SMBs


Tata Consultancy Services Ltd (TCS) yesterday entered a business, which it says could potentially grow into a billion dollars venture - a cloud computing offering to small and medium businesses or SMBs.
The largest of India's software companies, looks to offering 30-40 per cent savings in IT budgets to SMBs, with its cloud computing offering.
According to analysts, however, TCS seems to be entering into a segment that is already crowded from a service provider perspective, but has not yet seen any significant business deals as regards technology adoption.
The offering has been operating in a pilot phase for a year now with around 130 client, according to TCS chief executive N Chandrasekaran, who plans to ramp up of the customer base to at least 1,000. He added that current revenues from the services were negligible, but over the next five years the company had hopes of generating at least a billion dollars in revenue.  
This revenue would be included under TCS' ambitious target of earning 10 per cent of its revenues from non-linear initiatives, seeking to de-link revenue growth from head count.
The new cloud offering would combine individual hardware and software components offering solutions to  address specific requirements of SMBs, who can pay for the services on a monthly basis as they would for a typical utility service like electricity or cooking gas.
The USP of the offering is that SMBs would be freed from the burden of having to maintain and update an in-house IT infrastructure. Such infrastructure always carries the risk of becoming obsolete in the face of continuously evolving technology.
According to TCS, the offering is unique and more comprehensive than such service available in the market.
Analysts say through SMBs do in fact represent a prime market for cloud-based services, actual number of adoptions have been below expectations.
It may be pointed out that less than six months ago, enterprise networking and telecommunications firm Tata Communications - a Tata Group company had in an announced a tie up with Google to offer a similar services priced on a similar ''pay-as-you-go'' model called Insta Compute.
Unveiling iON, the cloud computing platform-based solution for SMBs, Chandrasekaran said, ''We have already run a pilot and have over 130 clients today...we want to increase the number of clients in India to 1,000, preferably in one year.
According to TCS, iON, would address the entire spectrum of an SMB's technology needs including business solutions such as HR, finance, inventory, domain-based ERP solutions to basic applications – e-mail, document management and web site services. The company added that the solution was pre-configured with hardware, network and software and backed by business, technical and consulting services.
Being a pay-per-use cloud based solution, it also frees SMBs from having to invest in IT assets or to retain scarce IT talent.

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