Cloud economics for hospitality start-ups in india

Research Questions 5 1. Rationale of the Study 6 2. CHAPTER TWO: LITERATURE REVIEW 7 2. Introduction 7 2. Hospitality Industry of India 7 2. Introduction Starting from the time when federal states across the world supported startups with the help of government-led initiatives, a great revolution in the startup sector has significantly increased. India is seen to be one of the top industries in adopting the startup investment strategies capitalizing on promising industries both locally and internationally. The country has further enhanced different policies that create business-friendly environments. The hospitality industry in India is not excluded from being among the top sectors to capitalize on the international startup investments. It is clear that most of these startups are revolutionary aiming to change how firms across different sectors adopt the investment channels provided.

Venture capitalists and angel investors are potentially looking forward to making significant investments in startup next generation hospitality service providers. They have analyzed the sector and seemingly merged different players such as hotels, food and beverage industry, lifestyle and travels (Dikaiakos et al. p. Such merging will be responsible for maintaining a standard to the startups and measure that they proceed to their final stage of implementations. Technology-driven trends have been considered to be the driving components of investment in the hospitality sector. It is through such considerations that the whole process is considered to be structured. India being a leading industry with innovative capability, it is important to know the different components that have been considered in the business investment channels.

Despite the effectiveness of cloud computing and its economics, there are several computing costs beyond instant installation price that startups incur. The unforeseen costs are too much a thought that most startups suffer in the course of implementation. According to Talukder, and Zimmerman (2010 p. How start-ups can utilize cloud computing technology? ii. What are the economic impacts of implementing cloud computing in start-ups in the hospitality industry? iii. What would the impact on the Indian startup if the utilization of cloud computing can be done? iv. What recommendations can be made regarding the adoption of cloud economics to the start-ups? 1. Rationale of the Study The issue of this research is to clarify about the importance of cloud computing and its economics behind it on the start-up industry of India.

p. One of the most prominent technologies which the start-up hospitality companies are using is cloud computing. The technology will be understood and the economic benefits the technology is creating for the firms will also be evaluated with the assistance of the literature review. Hospitality Industry of India In India, the hospitality industry has been considered as a large umbrella of industry comprising of several divisions of the business such as travel by air and road, hotel operations, food and beverage, the different forms of entertainment associated with travelling and tourism attractions. With regards to India’s hospitality sector, it was anticipated by Sanjeev (2016) that sector undertakes the business which has become the greatest source of income. Figure 1: Indian Tourism and Hospitality Industry Analysis, source: India, Hospitality and Analysis, 2019 The hospitality and tourism sector have become a key industry in India’s economy since it is playing a crucial role for bringing in the growth of various Indian Brands.

Jauhari, and Sanjeev (2012 p. has projected that this sector is considered to be responsible for the creation of the employment for a many people. There have been reported increase in the number of employed persons as far as start-ups is concerned. The hospitality industry in the country has become so much optimistic in nature as the hotel chains are thinking about plans of expansion and a large number of start-ups are being set up. The establishment of startups indicated that there were a number of development possibilities which made sure that key insights had been considered. It was another way to fully understand the various adoption of opportunities to better improve the way businesses are undertaken. it would provide key insights that are necessary along the way and would make sure that the best possible undertakings had been considered.

The establishments of startups were a great way through which various undertakings had been considered and effectively done to make sure that the best possible considerations were effectively completed. Startup Company The latest trend in India is the growth of startup establishments has taken a high acceleration in the country and beyond. It is a great deal through which different undertakings have not been completed. There is a great knowledge that should be established which will ensure that the best possible undertakings will be completed in due course. Hospitality Startup The funding of the hospitality startups in India has become a concern to the way in which the process is considered and undertaken. In line with the study of Ahmad (2015 p.

concerning hospitality industry startup, there are small scale hotel property that gives greater options for the new guests. It is a great consideration that has sufficiently helped in completing different approaches that are effectively relevant in the way in which business is completed. In the given deal, it was the first time that series C crossed the $1 billion mark. Also, series H broke the mark which was a great improvement in the ways in which the projects were being funded. Such an implementation and improvement were a great consideration to the effectiveness of the process. It ensured that the relevant and most effective approaches towards investment had been considered in due course. have pointed out that the different forms of technologies which have entered into the domain of hospitality business are via the medium of the social media handle of the business organizations.

The facilities which can be used with the help of information and communication technology are automatic check-ins or automatic reservation or booking by the companies. The customers of the present age have the tendency of the utilization of different platforms of technology. It was argued by Ip, (Cronin, 2017 p. when the customers find a hospitality industry provider to operate in the traditional ways then their attractiveness towards the service provider decreases. What start-up industries require is to have the most effective and necessary components that helps them to restructure a great framework to start their operations. they have been able to accomplish this move through the introduction of various vendors dealing with cloud economics restructure. The cloud economics vendors ensure that the right establishments and project appraisals have been enhanced even though there might be a number of challenges that they might face.

What makes every process effective is the way in which they have considered the most important steps to make sure that the right channels are followed. India’s cloud economics vendors help to generate the various excitements among American technology leaders and innovators. Different cloud vendors organizations are coming up in India taking up the IT industry at a great speed. The rate at which different cloud vendors outlets are developing indicates the manner in which India is becoming a digital hub in the 21st century. It is true that a lot of organizations have started adopting the new technology in most of their processes. IT costs have been reduced significantly among the different organizations. In India, there are different aspects that ensures the right IT adoption have been effectively undertaken.

The IBM offers the following elements in India; • IBM smart cloud entry and enterprise • IBM smart business desktop • Lotus live portfolio • Cloud service provider framework • Smart cloud managed backups Cisco Systems The Cisco systems have become the leading IT cloud computing providers in India having most of their processes across the country. They have gained greater reputation from the way in which they handle various IT services making sure that clientele needs have been prioritized. The organization is known for having one of the greatest comprehensive portfolios of technology which provides a wide range of storage access, virtualization process and self-service capabilities. There are different aspects that ensure the right aspects ensure proper access to the services have been provided. This is one of the major vendors in India with great provision of different services.

The pricing strategy of cloud technology is seen to vary according to the people in use of the given technology at certain specific times. It all depends with the way in which different undertakings are considered and shown the right proponents (Talukder, and Zimmerman, 2010 p. There are other great undertakings that should be made to make sure that the best possible considerations have been fulfilled. The hospitality industry being in question is faced with a great deal of issues that needs to be considered. Research firm Gartner evaluates that by the year 2018, the public cloud spending in India reached over $2 billion which was a great rise from $638 million. Figure 4: Cloud computing Source: Nazir et al. Economics of the cloud One of the most powerful forces responsible for shaping the transformation in the industry is the power of economics.

It was stated in a discussion made by Talukder, and Zimmerman (2010 p. the emergence of the service of cloud computing is bringing a transformation in the economics related to IT. With the assistance of the polling IT resources and its standardization, cloud technology is automating the maintenance of the task which has been previously done manually (Talukder, and Zimmerman, 2010 p. If these business organizations were to implement technologies their own for getting reliability and security then it would have to invest a huge sum of money. On the other hand, it was expressed by Weinman (2016) that if the responsibility of the implementation of similar technology is to be provided to the cloud computing organization it can be obtained at a considerably low investment with maximum efficiency.

Buying Power: According to Lee (2018 p. there are different new approach to savings which has helped start-up industries to come up with a reliable design to undertake most of their processes. the savings can help them be in a position to make significant purchase at the same time without encountering significant challenges. For example, when different considerations have been made, it can be considered that the business variability will have to go through significant changes and highlights in time. Different seasons give different highlights to the way in which things are done and ensure that the right proponents have been made in the right channel. The capacity is needed to be built for the purpose of meeting this expected peak time of business.

On the other hand, it was argued by Singh (2016) that during the lean period of business the wastage of resources are experienced by this business. Therefore, for the purpose of the creation of economic of scale during this period of time there is the necessity of a flexibility of resource allocation which can be obtained from by the provision of cloud computing service provided by an external cloud service provider. For instance, some operation of the hotel industry might require a lot of CPU but negligible storage or some might only require storage. Therefore, a non-virtual resource leads to wastage of resources. This gap has been met with the application of virtual mode of cloud computing which does not provide these facilities in bundles.

Multi-tenancy efficiency leading to Economies of Scale Figure 8: Cloud Multi-tenancy (source: Nazir et al. According to the study which was done by Karunakaran, Krishnaswamy and Sundarraj, (2013) it was known that when multiple of tenants are hosted by a cloud computing service provider, the administrative costs are spread and there is a reduction of cost per user of data center. Source: Mell and Grance, 2009) The SaaS model is creating convenience for usability such as communication, Enterprise Resource Management, Customer Relationship Management or Email. The PaaS is used for the purpose of building web application, ore database application. On the contrary, the convenience of migration is obtained from IaaS where conveniences of storage, server, network, system management and security are obtained. Direct booking from customers As stated by Alzua-Sorzabal, Gerrikagoitia and Torres-Manzanera (2013) management of big information is necessary for effective cloud computing program.

Most of the hotel businesses considered ought to pay great attention for its commissions to different travel agencies. They need to approach those cloud-based hotel management system providers which is associated with Indian hospitality business. The way in which this choice can be made has still not been answered and remains a gap in the literature. Transformation of guest experience According to Alzua-Sorzabal, Gerrikagoitia and Torres-Manzanera (2013), the internet has become one of the greatest tools within the tourism sector promoting effectiveness and best principle concerns through cloud computing considerations. The customers expectation from the hospitality industry stating that the travelers of the modern day are expecting more out of a hotel stay. The demands of the customers are increasing and they are demanding a personalized experience.

Architecture of Hospitality management system from the perspective of cloud computing Although the implementation of cloud computing has been done in the business segment the adoption of the cloud computing technology has recently taken place in the hospitality specially in the developing country of India. The organization which is taking major interest in this segment is majorly being done by the start-up companies in the country. Online system service The point of view that has been presently by Tao et al. stated that the IT systems which are placed in the system of cloud computing is providing a bundle of online services which is made available to the business organization such as the hotel operators, restaurant business and the travel agent throughout the day and at any geographical location.

The system can also orchestrate dedicated services. These newly created companies do not have a significant amount of information in the business sector of hospitality business. When the companies are availing the cloud computing service provided by a large organization then it can make the utilization of the data base that is already available with the organizations of cloud computing. In addition, different perspectives that have been formed is time consuming and cannot be relied upon for effectiveness in the investment approach. There is need to undertake further research that will help change the intention of study by clarifying the impact that is being established by cloud economics. Online database system The unstructured and structured database system is placed in the cloud network is crucial source of information for a multiple of information.

it was pointed out that the cloud computing service are based on the framework of internet. On the occasion of any outrage occurring in the internet connection the operations of the hospitality industry can be affected in a negative manner. If inconveniences in the internet occur during a crucial business processing hour then the start-up company might lose a considerable amount of business. As a result of this the company will suffer economic loss. However, the comment of Cérin et al. Lack of the personal data of the customers can lead to the loss of client of the company and can also harm the customers of the company in the way of facing legal issues. On the other hand, the reason of the economic losses being suffered by the hospitality business when working in the cloud platform has been contradicted by Ngo, Demchenko and de Laat (2016).

The authors have stated that presently the system of cloud computing has been come much sophisticated. The level of development of the cloud computing has been such that the security features are being implemented at in each and every stages of deployment. The framework of cloud computing is such that the access of each resource is provided to the individuals who are authorized. The cloud service provider must be a company who uses the best and latest practices of cloud security and it must ensure security procedures and policies are being regularly reviewed and checked. Other considerations are the prevention of data exfiltration, integration of strategies of prevention and response and make the application of security features for open source software (Chandra, Challa and Hussain, 2014).

The hospitality company can setup strong password, rotate and review access keys as well as access credentials. Limited flexibility and control Ngo, Demchenko and de Laat (2016) has commented regarding on the implementation of cloud economics that the flexibility of the organization decreases when the operations of the hostility business is relying on the cloud service providing company. The authors have pointed out that the end user license of the cloud provider and their management policies may impose limitations or restrictions upon the hospitality business entity. Moreover, if the hospitality company compromises the different minute considerations during this period of shifting the hospitality company such as the hotels, restaurants or the travel and tourism company might expose themselves to different types of privacy and security vulnerabilities.

Conversely, it was argued by Gupta, Seetharama and Raj (2013) that this dependency on a particular cloud vendor can be reduces with the help of the execution of multiple of steps. The start-up company of hospitality industry should take the attitude of implementing the best practices of cloud architecture such as the having the opportunity of improving performance and availability, reduction of performance bottleneck and decoupling layers. If these best practices are implemented then the chances of facing difficulty from shifting from one cloud provider to another cloud provider do not become difficult. Moreover, if the vendors are properly understood then the lock-in challenges can be avoided. This application is used by the boutique hotels, resorts, hostel or lodges and by the small hotel of various countries of the world.

It manages the rooms of multiple of hotel properties throughout the world and in this way, it maximizes their revenue via seasonal rates, event management and self-service check-in kiosk. As pointed out by Rodriguez, Diaz and Cleaver (2012) the hotel management system Frontdesk facilitates customized easy to handle interface with personalized profiles of the guests, hospitality companies and travel agents that are exported for the marketing campaigns. The implementation of secure server and data encryption is done for the restriction of user privileges. Namjoshi and Gupte (2009) has given a different opinion providing knowledge of better cloud-based dashboard software which are Hotelogix PMS developed by Hotelogix and Maestro PMS. These data are needed to be transferred into the database of a third party from which the data is to be retrieved each time it is needed to be manipulated.

As argued by Agrawal, Das and El Abbadi (2011) the startup company faces the concern of the dependability on the internet connection to store and fetch this large amount of data. It was future argued that different types of additional costs might be faced by the company such as the cost of the infrastructure for networking, monthly cost of bandwidth and bandwidth cost for the cloud provider. The consideration that the start-up company can make to identify their suitability on the cloud platform are the amount of data with which the hospitality company need to work regularly and the frequency with which data is to be collected (Jin et al. The choice of the cloud computing vendor must be made in such a manner that the vendor would be providing different alternative options of pushing the data in the cloud platform and will not charge additional expenses for uploading and downloading the data to and from the hard drives or any other media.

The way in which a perfect balance can be found still requires comprehensive research work to be conducted. Leading cloud vendors Some of the cloud vendors who are leading the market and are providing services to most of the start-up firms are Amazon, Google cloud, Microsoft. Microsoft’s cloud is leading the market and the company’s two cloud offerings are known as Microsoft Azure and Microsoft Office 365. Microsoft is also ventured into the integration of cloud with block-chain technology-based identity system for storing the identity of users which would allow them to control their access to data which is enabling the company gain high level of security at allow cost. The name of the cloud service provided by the company Amazon is Amazon Web Service and it acts as the backbone of Amazon in addition to providing service to other companies.

As stated by Ibrahim, He and Jin (2011) this characteristic of pay-as-you-go system makes the cloud adoption economically beneficial for start-ups. Thus, cloud computing helps the start-up companies in the reduction of business cost due to the elimination of wastage of resources. Conceptual Framework 2. Summary With the help of the data collected from the above research a vast knowledge has been obtained related to the topic of the research. The various facets of the hospitality industry of India were known and the different ways in which the start-up companies of India are adopting the technology will be known.  Journal of Hospitality & Tourism Education, 27(1), pp. Alzua-Sorzabal, A. Gerrikagoitia, J. K. and Torres-Manzanera, E. Residents’ perceptions of community tourism impacts.  Annals of tourism research, 32(4), pp.

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