1. INTRODUCTION In the fast-paced, jargon-filled world of the Indian information technology industry, a new acronym is being marked in bold. "SMAC", the acronym for social, mobility, analytics and cloud, is not just the latest buzz word but it's also quickly becoming a business reality. Prevalence of social media, smart devices, and instant connectivity has radical altered expectations of customers. So while this year might be the year of recovery, growth in 2014 is going to be driven by the opportunity in SMAC -social, mobile, analytics, and cloud technologies. Moreover, integration and confluence of these Technologies will form the bedrock of future solutions.The emergence of new technologies over the past few years has resulted in a transformational change in the world around us. From the rise of social media with its over 1 billion subscribers worldwide, to the ubiquitous spread of mobile Phones and the resulting explosion of big data and big analytics, the world around us is changing faster than any one of us could ever imagine. Add to this the ever expanding presence of cloud computing in our life, and were probably witnessing the zenith of the technological age. India believes that four key technologies will hold the key to success for enterprises across the world. Social, Mobility, Analytics and Cloud (SMAC) are individual technologies and platforms which have risen during the past few years and have shown immense growth.The convergence on these technologies means dismantling the traditional business design: No longer is it required to keep people and information in the same location or to spend big money to support information sharing, communication and collaboration.SMAC based solutions, when offered and deployed as a SaaS based model, have given businesses are inopportunity to develop innovative solutions that ultimately lead to leveraging public IT infrastructure, lowering cost of ownership and deployment of innovative applications that not only improve enterprise decision making capabilities but also allows them to rollout new unprecedented business models and increase their each to customers.

2. PRINCIPLESMAC technologies are the new change agents in enterprise IT. When implemented, these technologies serve as a synergetic solution for digitally transforming an organization to be better equipped for the future of business. 3. HOW DOES SMAC WORKS

Fig3. Implementation of SMAC stack

Customers today do not spend money out of brand loyalty their forefathers once showed. Instead it now depends on information, reviews and, at times, practical demonstration where possible. This forced businesses to make analytics a part of their marketing strategy. A quick statistical analysis performance, cost and comparison to rival product is helping the consumer make a quick and informed decision. High and global availability of information and its compatibility with Various devices became cost effective with cloud technology.

4. SMAC STATISTICSAccording to various reports, the statistics of these four technologies enables to combine them and work together. From the rise of social media with its over 1 billion subscribers worldwide, to the ubiquitous spread of mobile phones and the resulting explosion of big data and big analytics, the world around us is changing faster than any one of us could ever imagine. Add to this the ever expanding presence of cloud computing in our life, and were probably witnessing the zenith of the technological age. KPMG in India believes that four key technologies will hold the key to success for enterprises across the world. These include:

Fig4.SMAC statistics 4.1 SOCIAL MEDIA A social media strategy has become a must for all enterprises, be it banks, retailers or the government. With over one billion individuals logged on to various social networks, people are now using social media for advice on what products to buy, where to shop and even regarding what firms they want to work with. While most enterprises use social media for their customer service function only, many firms have now started using social media in tandem with their sales and marketing functions. This in turn enables firms to use data generated by the customers effectively to service their larger pools of customers. Face book, LinkedIn, Twitter, Foursquare the new way how businesses and individuals are connecting with each other, globally. Enterprises are increasingly leveraging social media for customer engagement and brand building, as more and more individuals are becoming active Internet users and using social media. Further, the proliferation of smart devices and increasing mobile internet usage has supported the growth of active Internet users. Social media platforms are not only restricted to the social networking sites such as Face book and LinkedIn, rather extended to various forms of social media including YouTube, blogs, social bookmarking, geo-location sites, and daily deals. As the social media modes differ, so their application and priority from business to business. Moreover, changing business dynamics influences enterprise decision to select a social media platform. While daily deals lost its position, platforms like YouTube continues to be top preference of businesses followed by Face book, blogs, LinkedIn and Twitter. YouTube is the chart topper, however, collectively Face book, LinkedIn and Twitter signifies the importance of social networking in the social media world. Moreover, collectively the social networking sites nearly reach one in four, globally. The Social network users are expected to reach 1.73 billion this year, an 18 percent increase from 2012 driven by rising adoption in emerging countries.

Fig4.1. Social media 4.1. 2. Benefits of social media for businesses As per research firm Gartner, by 2015, India is pegged to have more Face book users than any other country in the world. With 1 in every 4 minutes online being spent on social networking, it becomes imperative for businesses to have a presence in the social media circuits. With the advent of smart phones and tablet PCs, people are staying connected to their friends and loved ones 24*7 through social networking apps along with the freedom of mobility. The users on social networking sites are creating tons of data by conversing, sharing images/videos, reviewing products and comparing before buying. All this data generated by the social network users, if analyzed can generate considerable insights for businesses. This is where Analytics comes in. Social media analytics has emerged as a powerful tool for uncovering customers entailments dispersed across countless online sources. As businesses feel the pressure to gain new insights from social media they require analytics expertise to transform this massive information into actionable insights. Social media analytics help organizations provide meaningful insights into the data created by social website users so they can improve customer satisfaction, identify patterns and trends, and makes matter decisions regarding marketing campaigns. Firms are investing heavily in software and hardware to study the online behavior of customers and trying to directly co-relate these with revenue streams. A pendulum shaped, countdown cover image of the OMG! Sale campaign as a teaser was uploaded on Face book A dedicated Citibank OMG! Sale event page was created The event link was shared on the brands Face book wall Interesting OMG! Videos were shared on Citibank Indias Face book wall Updates shared about the launch of the OMG! Sale Citibank card spends grew eight times over average daily spends at the 17 partner websites The average ticket size increased by 30% for the partner websites on Citibank cards Citibank India Fan page achieved the highest reach ever visits in 2012 20,95,104 and the highestvirality7.63% during the OMG! Sale This (social media) is perhaps the only medium through which one can engage and intrigue their consumers, create conversations and connect with them based on their preference.4.2 MOBILE Mobile devices have changed the way people access digital content. Smart phones and tablets have brought rich, digital content to the fingertips of consumers. Mobile banking has emerged as one of the most innovative products in the financial services industry. Shoppers are increasingly using their mobile devices for everything from browsing to comparing to buying products. Governments are also reaching out to their citizens, using mobile devices as anEfficientchannel. Enterprises must also jump on to the mobility bandwagon, and ensure that their applications are mobile ready.4.2.1 Key trends in mobility.Spread of BYOD: As more and smarter phones, tablets and other devices find their way into the hands of employees, the demand to use them at work will intensify. This trend will only accelerate in the years to come, and more and more enterprises are adopting a formal Bring Your Own Device (BYOD) policy.Employees are engaging in multiple work-related activities using their mobile devices; the three key activities include: a. Reading or viewing documents, spreadsheets, or presentations.b. Tablets are often used for analytics and modeling as well as to access web meetings and videoconferences.c. Accessing email, calendar, and intranet or employee portal sites lead the way for both devices.The concept of BYOD is playing an important role in enhancing productivity, agility, employee satisfaction and retention in the enterprise. With the proliferation of employee owned devices, ubiquitous information access and the growing influence of CXOs in technology Decisions, CIOs need to strike a balance between user expectations and enterprise requirements and institutionalize governance to secure business information while enhancing efficiencies.

Fig4.2.1. Mobile internet user in India, 2009 2015

4.2.2 RISE OF MOBILE APPS: The spread of smart phones has led to growth in the ecosystem of mobile applications. Ranging from simple apps dealing with mail, calendar, stock prices and weather to complex enterprise mobile apps, which enable users to access SCM, CRM and other analysis tools, mobile apps, have successfully caught the imagination of consumer as well as business users. The number of mobile app downloads are expected to touch 183 billion annually by 2015, from just 10 billion in 2010.Mobile apps will help in automating workflows, streamlining content discovery and build knowledge iteratively over time as employees and customers use an application. Spending on mobile enterprise business apps will more than double from USD 26 billion in 2012 to USD 53 billion in 2017. But this rapid growth has brought about its own set of challenges; firms are overwhelmed by choices of device type, operating system, operating system version; and application type.4.2.3. Mobility scenario in IndiaIndia has emerged as the second largest mobile market globally, behind only China. With over 870 million mobile subscribers, businesses are jumping on to the mobile opportunity. Moreover, the nation has also emerged as the third-largest Smartphone market (by shipments) . Both consumers and business buyers in India continue to harbor an aggressive appetite for mobile devices, adding to the already large collection of devices that are still in active use. Rising focus on the mobile web platform is affecting a number of business aspects, including ecommerce spending and online advertising.4.3 ANALYTICSEvery year, companies and individuals generate billions of gigabytes of data. Data, which properly analyzed and used in time, can emerge as an unbeatable competitive advantage. Enterprises need to recognize the prospect analytics. Represents and should adapt their IT strategy to capture such opportunities. Analytics can help retailers predict buying decisions of shoppers; it can help banks weed out fraudulent transactions; while governments can use analytics to provide services directly to their citizens. Predictive analytics has also been adopted across industries in various scenario building activities.Fig4. Analytical Environment:

Fig4.3. Big data analyticsCompanies have always kept large amounts of information. While its true that the amount of data in the world keeps growing, the real change has been in the ways that we access that data and use it to create value. Today, you have technologies like Hadoop, for example, that make it functionally practical to access a tremendous amount of data, and then extract value from it. The availability of lower-cost hardware makes it easier and more feasible to retrieve and process information, quickly and at lower costs than ever before. It is the convergence of several trendsmore data and less expensive, faster hardwarethats driving this transformation. The concept of analytics has been around for decades for firms that have been handling tons of transactional data over the yearseven dating back to the mainframe era. The world is moving from Traditional analytics to Predictive analytics and now increasingly towards Prescriptive analytics (where the decisions are driven by predictive models using business rules engines to help the companies to decide the next best action).The recent spurt in demand for analytics (as well as big data) can be attributed to two main factors: 4.3.1 Convergence of computing technologies: Analytics is the natural result of four major global trends: Moores Law (which basically says that technology always gets cheaper), mobile computing (that smart phone or tablet in your hand), social networking (Face book), and cloud computing. Moreover, traditional data management and analytics software and hardware technologies, open-source technology, and commodity hardware are merging to create new alternatives for IT and business executives to address this next generation.4.3.2 Exponential increase in data: Large volumes of transactional data have been around for decades for most big firms, but the flood gates have now opened with more volume , and the velocity and variety the three Vsof data that has arrived in unprecedented ways.4.3.3 Uses of analytics: We are witnessing the use of analytics in multiple industries. Companies are using analytics for everything from driving growth to reducing cost improving operational excellence to recruiting better people to completely transforming their business strategy. More recently, national and local governments across the world have started using analytics for optimizing public welfare programs, reducing traffic congestion in their cities and fighting crime.

Fig4.3.3. uses and services of analytics. The proliferation of the internet and the mobile era has increased the rate at which data is created and stored; hence, there is a need for tools and techniques to analyze data at an equal speed. 80% of the data available today is unstructured and includes raw text, audio/video files, click-stream data, blogs, social media, location coordinates, and weather patterns. Organizations are increasingly realizing that unstructured data, if analyzed, can provide a competitive edge. Need for large storage capacity. Need for quick retrieval of data. Enable informed decision making by effectively leveraging large datasets. Example:- Turn 12TB of tweets created each day into improved product sentiment analysis. Convert 350 billion annual meter readings to better predict power consumption. Big Data analytics is the process of applying advanced analytics and visualization techniques to large datasets to uncover hidden patterns and unknown correlations for effective decision making. Big Data analytics helps businesses make better decisions by analyzing large volumes of structured and unstructured data, predict and identify change and identify new opportunities such as new business segments, best suppliers, associate products and sales seasonality.

4.4. CLOUD COMPUTING Cloud buzzword in the todays evolving technology world is increasingly gaining traction among enterprises for its known benefits cost effectiveness, agility, and less capital intensive. With these benefits cloud computing has not been restricted for the use of enterprises, its reach has extended with consumerisation with the launch of various applications from a host of IT service providers.Cloud computing history trail from the era of mainframe computing, however, the latest form of the technology what we see today, started to emerge with the proliferation of Internet. In 1999, the arrival of Salesforce.com was one of the key milestones in the cloud computing history, which pioneered the concept of delivering enterprise applications via a simple website. The in 2002, Amazon Web Services launched a suite of cloud based services including storage, computation, and human intelligence. Since then the space has seen a significant increase in the number of cloud service providers with a host of solutions for different layers of the information technology ecosystem. Cloud computing services are provided through public cloud, private cloud, and hybrid cloud environments wherein public cloud services have a larger pie of the total market owing to their easy availability, accessibility, and low cost of adoption. Per Gartner, the public cloud services market is expected to grow 18.5 percent in 2013 to a reach USD 131.0 billion from USD 111.0 billion in 2012. The growth is driven by the emerging segment of Infrastructure-as-a-Service (IaaS), which includes cloud compute, storage and print services. IaaS segment is expected to grow 47.3 percent in 2013 to reach USD 9.0 billion.While IaaS is one of the fastest growing segments, cloud advertising is the most dominating, which held a share of 48.0 percent in 2012 followed by cloud business process services segment (BPaaS) with a 28 percent share, software as a service (SaaS) at 14.7 percent, cloud system infrastructure services (IaaS) at 5.5 percent, cloud management and security services at 2.8 percent, and cloud Platform-as-a-Service (PaaS) at one percent. In terms of geographic distribution North America is the dominating region with a share of 59 percent, however, the emerging geographies are India, Indonesia, Greater China and Latin America led by Argentina, Mexico and Brazil.

4.4.1 Cloud computing scenario in India:The public cloud computing in India is forecasted to grow 36 percent in 2013 to total US$443 million, up from US$326 million in 2012. On the contrary to global market, SaaS is the leading segment in India with a share of 36 percent in 2012, followed by the cloud business process services segment (BPaaS) which is the second-largest market. 4.4.2. Migration to Clouds The pace of cloud adoption shows no sign of slowing down as more and more functions are migrating to cloud services Apart from reduction in IT costs, benefits derived from migration to cloud in terms of innovation in processes, products & services across various sectors is also driving this growth AS per a survey by KPMG, 59% of providers say that cost reduction is the customersmain reason for using cloud. Other important reasons for shifting included Speed to adoption (31%), Business Process Transformation (30%) & improved interaction with customers (26%)

Fig4.4.1. cloud computing features

5. EVOLUTION OF IT The US$108billion Indian IT-BPM industry has been a global power house over the last decade. The first $100 billion revenues were achieved due to Indias arbitrage advantage but going forward as the linearity in the industry diminishes, the Indian IT companies will have to move up the value chain and provide their clients with quality solutions in addition to the low cost advantage. According to are cent survey by Gartner, Analytics, Mobile technologies and Cloud computing are the three top most priorities of CIOs world over and these services are set to change the face of the global IT-BPM market drastically over the course of the next few years. With more than 25% of the users online time beings spent on social networking sites like Face book, Twitter and Google+ ,social media is changing the way in which companies are interacting with their customers and is extensively being used by companies for brand building and customer engagement. Mobility services have brought the whole world to a tap of a finger and with services available on the go business efficiency has increased and interactions with customers and employees have become more informative, which in turn has resulted in increased revenues. Analytics has its root in the need to analyze at a being generated through social media, mobile app sand click stream. With 2.5 billion gigabyte of data being generated every day, firms are investing heavily on analytics to identify hidden trends and patterns, to gauge us to be likes and dislikes and use the insights obtained for superior decision making. With ever increasing data, the need to store it and the need to access it any time anywhere has paved the way for cloud computing (using software and hardware managed by third parties at a remote location) Although these technologies have been growing on their own during the past few years, the convergence of two or more of these presents the greatest opportunities The global analytics market is expected to reach $25 billion by 2015 and the global cloud market is expected to be ~$675 billion by 2020. Indian IT players need to capitalize on its already well established IT/BPM market presence by increasing their services portfolio beyond the typical IT offerings. Social, Mobile, Analytics and Cloud (better known as SMAC) presents an opportunity for players to increase their revenues by shifting into a higher margin business as compared to the commoditized traditional IT business. The domestic market of Mobility, Cloud & Analytics in India is also at a relatively nascent stage as compared to developed countries. Hence the opportunity lies in providing high end outsourcing services to developed countries and at the same time educating the domestic clients about the benefits of adopting SMAC solutions. As the market matures the small players are going to look at being acquired or forming alliances with larger players who would provide them the market presence, systems and processes, and big IT-BPM players would need to acquire smaller players in niche segments in order to develop domain expertise and also develop geographical presence. The next wave of M&A and Private Equity in IT is going to be dominated by SMAC.By 2020, the Indian IT industry is slated to collectively rake in over $225 billion (Rs 12.5 lakh crore) in revenue, thereby riding the wave of emerging technologies and new innovations, according to Nasscom. Experts feel that to reach this target, the traditional IT companies, which focus on cutting costs and managing IT infrastructure, need to move into higher-margin projects that help clients' businesses grow. These technologies also offer companies an opportunity to move to higher-margin business by offering solutions that help businesses grow instead of increasingly cutting margins for typical IT services contracts."If you don't do these things, then maybe you'll start falling out of the market," warned Biswajeet Mahapatra, research director at Gartner. Indian IT service providers traditionally provide services that support clients by creating and maintaining their software and hardware. Existing services are now becoming commoditized, forcing companies to seek newer projects that are transformative in nature and work closer to the client's business. The team Nagarajan heads at HCL Technologies was formed two years ago to identify disruptive technologies, invest ahead and create an ecosystem of partners and solution providers for the company.Similar efforts are underway at other technology companies at Infosys, the country's second-largest IT Company; Infosys Labs plays a key role in identifying new and emerging technologies. At Labs, the company looks at various technologies and figures out if it needs to do further research, build competency, invest in capabilities and prepare for commercialization. "Once the technology is ready to be productized, there is a smooth handshake between the Labs and my team," said Sanjay Purohit, senior vice-president, global head of Products, Platforms and Solutions At Infosys, the ambition is to get one-third of revenue from platform, product and solutions business, which presently account for only 6% of the company's business. There is a clear recognition of the fact that there is a fundamental disruption happening, says Anurag Srivastava, chief technology officer and senior vice-president for Wipro's Global IT Business Indian companies, which count the world's largest banks, retailers and Fortune 500 companies as clients have seen them demand solutions that leverage social, cloud, mobile and analytics.

Fig5. Evolution of IT5.1 NEW PRICING MODELS The current business climate has compelled customers to reevaluate their existing and new contracts with service providers, who, are moving to high-value, innovative service offerings like consulting, SMAC, which demands a different pricing paradigm. Indian IT companies have been pricing based on Time and Material (T&M) and Fixed Price (FP) models, which are linked to head count and effort spent. Nonlinear pricing models on the other hand, link clients expenses to their business outcomes or usage. Billing is no longer Based on effort and revenues are linked with productivity ensuring vendorsShare productivity gains with clients. This is fast emerging as a win-win proposition for both the client and the service provider as both parties share the risk.5.1.2 Global Social Network Users, Worldwide, 2011 2015 (Billion)

Fig5.12. Global social network usersSocial media platforms are not only restricted to the social networking sites such as Face book and LinkedIn, rather extended to various forms of social media including YouTube, blogs, social bookmarking, geo-location sites, and Daily deals. As the social media modes differ, so their application and priority from business to business. Moreover, changing business dynamics influences enterprise decision to select a social media platform.

6. A NEW WORK STYLE COMBINING Social, Mobile Analytics and CloudTodays customers and employees, particularly digital natives, are expecting a new style of commerce, content and collaboration thats social-, mobile-, analytics-, and cloud-enabled. Theyre looking for the same anytime, anywhere, and any device convenience that theyre familiar with in their personal lives through applications from companies such as Amazon and Face book. In Terms of device usage, the mobile elite in the workforce currently utilize three or more personal devices for work and this number will only increase as wearable devices such glasses and watches add to end user options.

Fig6. SMAC stacks to engage with customers.

In the SMAC era, the next generation of business applications needs to embrace this same approach to enhance the end user experience, and maximize convenience and productivity, as SMAC-enabled architectures become the preferred application paradigm and means of interaction.As part of this new architecture, IT departments will need a capability equivalent to a user experience engine to provide the SMAC technology integration, management and personalization layer providing a contextually-relevant experience to end users and supporting their new work style. Its notJust about mobile device management, mobile application management, and social platforms all in silos, but about integrating these capabilities into a seamless user experience.

7. REAL WORLD EXAMPLES OF SMAC1. Using SMAC in Retail Retailers is strategically deploying the SMAC Stack across key business processes to combine the best of virtual and physical retail shopping experiences. Now a customers mobile device can signal store management while theyre shopping. Advanced analytics arm associates with the right knowledge about that shopper so they can provide more valuable assistance. And customers can compare products, get information and redeem targeted offers from the Cloud while in store. 2. Medical device manufacturers are modernizing the remote monitoring process and minimizing office visits for both patients and clinicians. By deploying cloud-based mobility services that deliver full PDF reports via their iPad or iPhone, clinicians can provide instant remote care. The network also has the potential to use analytics to push out personalized insights, based on the patients response to treatment. 3. Corporate auditors can collect process and share critical product insights from a single device. With intelligent, powerful ipad applications, store visits become a lot more productive. Information about promotions, inventory, pricing, product placement and competitors is transferred digitally and stored in the Cloud for further analytics and processing. All of which drives smarter Marketing strategies to increases

8. SMAC DRIVEN GROWTH The Indian software industrys exports may grow by about 13% in fiscal year 2014 to $87 billion (around Rs.5.4 trillion today), driven by its ability to offer solutions that integrate new business models such as analytics and cloud-based Services, which are part of SMAC (cloud, mobile, analytics, big data and social media services) with traditional ones, according to Nasscoms Strategic Review 2014 report. Traditional services account for a major portion of the revenue of Indian information technology (IT) firms. Application, development and maintenance work alone accounts for 35-40% of the revenue of most IT firms. But with increased automation and platform-based services that can be Replicated across segments and non-linear initiatives, analysts agree that SMAC (social, mobility, analytics and cloud services products) will allow the IT industry to offer value to clients.These (SMAC) service lines will get to mainstream with deals becoming big and complex. Most clients see merit in combination of two or three technologies if not all four, said Sudin Apte, chief executive officer (CEO) and research Director of Offshore Insights. While certain elements of SMAC are possibly over-hyped or are re-classifications of traditional service lines, these present an attractive opportunity for Indian IT services companies over the next few years, Credit Suisse Research said in a 12 July report. SMAC technologies account for less than 10% of the total revenue of IT companies, but according to research firm International Data Corp.s (IDCs) estimate, Indian IT vendors will generate at least $225 billion in SMAC-related revenue in 2020. To put the figure in context, the aggregate full-year revenue of Indian IT services vendors is forecast to touch $118 billion in fiscal year 2014 and $130 billion by 2015. Wal-Mart set up Wal-Mart Labs to provide a supportive environment for testing new Ideas. This has helped Wal-Mart to create new products and services around social media, cloud, analytics and mobility for tapping into the next generation of consumers.The evolving technology industry has opened new gates for the Indian IT-BPO vendors in the form of nexus of four forces SMAC (Social Media; Mobility; Analytics; Cloud). As the enterprises globally adopt new technology formats for Operational efficiency, cost optimization and for additional business advantages, to address this and growth issues, Indian IT-BPO vendors can develop their SMAC strategies. SMAC collectively is considered to be a multi-billion dollar opportunity, globally for the IT-BPO vendors. The enterprises are increasingly adopting these technologies, as they become more agile with information sharing within organization and seek more insights about their customers to serve them better.SMAC has the potential to be a multibillion dollar opportunity in the Forth coming years

9. REFERENCES

http://www.cognizant.com/smac http://www.pwc.com/us/en/technology-forecast/2012/issue2/features/feature-creating-openeing-apis.jhtml http://www.informationweekin/informationweek/newsanalysis/287376/governance-2014- smac?utm_source=referrence_article http://survey.nassom.in/smac-new-buzzword-software-firms. http://www.infosys.com/flyapp/resources/Documents/mobile-application-testing-pdf

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