ATENEO DE DAVAO UNIVERSITY

School of Engineering and Architecture

AY 2017 – 2018

BUSINESS PLAN PROPOSAL:

bīt Savers

In Partial Fulfilment of the Course Requirements in

Elective 3 (ChE 300)

Prepared by:
BAGUIO, Fonseca D.
ESPAÑOLA, Jyzl M.
NACUA, Adrian Josef O.
PEN, Sherilynn G.
VIDANES, Julia Maris I.

Submitted to:
Engr. Albert B. Jubilo

February, 2017
 Executive Summary

The proposed business, bīt Savers – Cloud Computing Services, is a cloud computing-
based business which aims to solve the data storage needs of modern Filipinos. The company
offers the data storage services to individuals or institutions that require data storage but do
not have the capital or physical space to host the necessary hardware.

Dedicated users such as schools, hospitals, and offices which need to store large
amounts of data have the benefit of not investing on the IT infrastructure hardware and not
hiring in the necessary people to maintain it. Therefore allowing them to focus their financial
and intellectual resources on the critical aspects of their business.

Casual users such as students who only need a minimum amount of storage space
could also benefit from our cloud computing services by giving them a cheaper, safer, and
more convenient way of storing their personal documents, files, pictures, movies, music,
games and the like.

bīt Savers utilize an Infrastructure as a Service (IaaS) business model. In IaaS model,
users can configure processing, storage, networks and other fundamental computing
resources required for running applications and install the operating system and applications
required. In exchange for our service, a pay-per-use method is used which is based on the of
amount and length of time the storage is used. Cloud billing is broken down to exact figures
to allow users to see how much of the service they’ve used. This provides users with
transparency.

The company’s current competitors are cloud computing services offered by

multinational companies such as Microsoft, Amazon, and Google. This gives bīt Savers the
advantage in the country by being the first ever local company that offers such services. Other
than that, the company could take advantage of the Philippines growing number of
competent IT graduates who will serve as the foundation of the business’ operational
backbone.

Lastly, the company will utilize a pricing strategy that will allow them to save up to
80% in storage costs when compared to traditional methods. This will allow bīt Savers to reap
in the profits of an untapped digital market.
1. Proposed Business Undertaking Title

bīt Savers – Cloud Computing Services

2. Vision and Mission Statement

Vision

To be a competitive cloud-computing provider by offering resilient storage and

computing services to local institutions and companies

Mission

To help businesses and individuals in meeting their demands and achieving

their full potential by managing their digital resources and workloads

To deliver a viable, flexible, and affordable data management services to

people and businesses in the Philippines

3. Introduction

Nowadays, cloud computing is continuously receiving a lot of attention, both

from the publications and the users, from individuals at home to the government; but
its concepts and terminologies used to define it needs further clarification. Cloud
computing is a service where users can subscribe and obtain networked storage space
and computer resources. Furthermore, cloud computing has several different types of
services and applications being provided in the internet cloud. One requirement on
how to access the cloud is having internet connection. The cloud eliminates the need
for user to be in the same location as where the user stored the data. This means that
information, documents, etc. housed in the cloud is possible to access anywhere and
anytime as long there is internet connection.

In the Philippines, cloud computing will be expected to account for thirteen

(13) percent of the total Philippine IT services in the market by the year 2020, a report
made by BMI research. In addition, there is an average annual growth rate of 31.7%
forecasted over the five-year period to 2020 from 2015.

Cloud computing offers the opportunity to turn IT into a more responsive,

more effective business service and source of innovation. The cloud provides many
options for the everyday computer users, large or small businesses. It presents several
benefits and opportunities that include cost reduction, business growth, business
agility, and rapid business innovation.
4. Background and Rationale

Cloud Computing technology allows individuals, corporations, and even

governments to store and process information and data without having to build an in-
house IT division containing the necessary hardware and software. Cloud computing
also allows customers to have instant access to their stored data through the internet.
This allows organizations to focus their resources in improving and managing their
business instead of spending resources on computer infrastructure and maintenance.

bīt Savers’ main goal is to provide cloud computing services to customers who
need to data storage but don’t have the space or capital to create or expand their own
IT infrastructure. We host the infrastructure components traditionally present in an
in-house data center which includes the necessary servers, storage and networking
hardware, and IT experts to supervise the network. This will help them in avoiding or
minimizing their IT infrastructure costs.

Aside from data storage, bīt Savers also provide other services to consumers
such as detailed billing, data log access, load balancing, and data backups, replication,
and recovery. This allows organizations to know what, when, and how much data we
are processing for them while ensuring its safety from deletion.
All services provided by our company is conducted in a Private Cloud which
prevents any public or third-party access, ensuring the security of highly sensitive
information.

5. Economic Opportunities

Transforming Information Technology and Business

“Bit Savers” offers economic opportunities for social revolution and business
in the Philippines. This is a cloud technology that will help in modernizing Information
and Communication Technology (ICT). It will help restructure the ICT that will result to
an effective business service that will support business sectors to flourish. Developed
processes and systems will be offered for businesses to make them more competitive.
This cloud will basically help businesses in the Philippines to reshape and transform
businesses through speed, flexibility, efficiency, and competitiveness. It will present
various opportunities for businesses that will help the economy.

Business Growth

The capability of Bit Savers to deliver increased operational efficiency and

competitiveness will ensure that the costumers gain and succeed in their journey. This
cloud computing technology will help different sectors in the country such as retail,
manufacturing, financial services, utilities & telecoms, etc. will easily scale up their
operations and support the sector’s goals. Bit Savers will also help innovate new
 services and products that will generate additional revenues for Filipino
entrepreneurs. The technology will help business sectors to save thousands of pesos
because of its cost effectiveness. Thus, instead of depending on systems and software
that are costly and requires so much time to build-up, “Bit Savers” will simplify and
efficiently support every need of a business. It will really help promote in the
development of businesses in our country. Lastly, global investors will be attracted
and invest which will help the economy of the Philippines grow as well.

Employment

When business in the Philippines will really develop and grow, more and more
jobs will be offered in the country. More people will earn and spend, thus, increasing
the money circulation in the marketplace. These employment opportunities will lead
to economic growth and prevent stagnation. Bit Savers will contribute to a healthier
economy and will also allow more businesses to flourish.

6. Business Model
bīt Savers utilize an Infrastructure as a Service (IaaS) business model.
In IaaS model, users can configure processing, storage, networks and other
fundamental computing resources required for running applications and install the
operating system and applications required. Users are not fully authorized to manage
and control the physical infrastructure. However, users can control the system at the
level of storage and operating system and manage specific network components.
In exchange for our service, a pay-per-use method is used which is based on
the of amount and length of time the storage is used. Cloud billing is broken down to
exact figures to allow users to see how much of the service they’ve used. This provides
users with transparency.

bīT
Savers

Client Infrastructure
+ System
Access to Storage
7. Market and Competitors

One of the loudest buzz today both in the business and virtual world is the
cloud computing technology. There is growing collection of applications dedicated to
cloud computing for on demand IT delivery with the key objective of cost savings. Due
to the large applications of this technology, many people or companies are investing
in this kind of business. In our fast-changing world today, where people are more
technologically, virtually, and scientifically inclined, people or individuals, groups,
corporations, companies, business, and the likes with large data resorts to investing
and using it. Though there are a lot of cloud computing companies that are currently
on the go in the market, there are still room for other aspiring cloud computing
services since people are increasingly and more persuaded to use the technology due
to the advantages and efficiency of using this kind in handling, accessing, and storing
data and applications.

Through the cloud, virtual computing resources such as data storage and
server capacity are made available to end-users via the web, allowing these to be
accessed and used anytime, anywhere without having to make any outright software
license or hardware purchases and worry about depreciation in the long run. With
cloud computing, users subscribe to servers, storage or applications, and pay monthly
only for what is used, as opposed to buying these expensive items in one go.

According to IDC the public cloud computing market is on pace to double over
the next four years, climbing from around $70 billion in 2015 to more than $141 billion
by 2019. That huge market offers a tremendous opportunity for those companies that
establish themselves as leaders in the cloud computing space. The demand for cloud
computing services during these days and the succeeding years are evidently high,
making bit Savers a possible competitive cloud computing business in the future.

Currently, the major and very well-known corporations providing cloud

computing services worldwide or the so-called “cloud leaders” are the following:

a) Amazon Web Services - Amazon Web Services (AWS) is the undisputed

market leader in cloud computing. According to Amazon's most recent
quarterly financial report, AWS generated $2.9 billion in revenue for the
quarter ending June 30, 2016, up from $1.8 billion during the same quarter last
year.

b) Microsoft Azure - In its fiscal 2016 Q4 report, the company said that its
"Intelligent Cloud" revenue increased 5 percent to reach $6.7 billion.
 c) IBM Cloud - Although it hasn't always been considered one of the "big three"
cloud computing vendors, IBM's cloud business has been coming on strong. In
its most recent quarterly report, IBM said that its "cloud-as-a-service revenue
was up 50 percent," and had an annual run rate of $6.7 billion.

d) Google Cloud Platform - Google doesn't break out its cloud computing
numbers, so it's very difficult to tell how much revenue its Cloud Platform
generates. In a recent report, Synergy estimated that Google is fourth in the
IaaS and PaaS market with a 4 percent share of the market. The report also
noted that Google's cloud revenue is climbing rapidly, surging 108 percent
year-over-year in 2015.

And a lot more such as the Alibaba cloud, Vitrustream, Century link, Rackspace,
Oracle, Skytap, Joyent, NTT communications and the Fujitso. In the Philippines, there
are many known cloud computing companies including the Fujitso Inc, IBM and others
such as the Globe Telecom, and ArcusIT. To compete with the recurring services, bit
Savers will try to provide secured and efficient software in which the costumers would be
very willing to take part to our - bit Savers services.

8. Marketing Aspect

Nowadays, a lot of people are buying external hard drives to use it for the
storage of their electronic data. The data ranges from important files such as
documents and presentations to files for leisure such as movies, music, and games. An
external hard drive with a capacity of 1 terabyte costs around P2000; that is, P2.00 per
gigabyte.

bīt Savers provides an alternative to external hard drives. Specifically, it offers

storage using a cloud computing system. Despite its similar function with the external
hard drive, bīt Savers only charges P400 for storing 1 terabyte of data. It becomes 80%
cheaper, relative to external hard drives, because it only costs P0.40 per gigabyte.

The other advantages of getting the services of bīt Savers is its safety in terms
of the reduction of risks such as theft and physical damage. We utilize data
redundancy systems to create backups of the customer’s stored data. This allows for
quick data recovery in the event of data corruption.

President Rodrigo Duterte’s newly signed law, Republic Act No. 10929 entitled
as the “Free Internet Access Program”, requires public spaces like hospitals, transport
terminals, government offices, schools, and parks to have a working internet
connection. This is advantageous for bīt Savers users since it allows them to access
their stored data virtually anywhere.
9. Management Aspect

bīt Savers – Cloud Computing Services will be corporation with three (3) initial
board of directors. The number of board members will increase as the company grows.
The board of directors will be the ones who will appoint the network and computer
system administrator. The admin will be the one responsible in coordinating the
multiple employees of the company to achieve its goals.

a) Job Description and Requirments

The duties, qualifications, and salaries for each employee to be hired in the
company are presented below.

Duties and
Position Qualifications Salary
Responsibilities
 Determine what the
organization needs in a  Degree field of
network and computer information
system before it is set up technology,
 Install all network computer science,
hardware and software or desktop support
and make needed  Interpersonal and
upgrades and repairs problem-solving
 Maintain network and skills; familiarity
computer system security with Windows and
and ensure that all Mac operating
systems are operating systems and servers
correctly and Cisco and
Network and
 Collect data in order to Microsoft products
Computer
evaluate the network’s or  At least two (2)
System
system’s performance years of experience
Administrator PHP 22,000/
and help make the in ICT related fields
month
system work better and
faster
 Add users to a network
and assign and update
security permissions on
the network
 Solve problems when a
user or an automated
monitoring system
informs them that a
problem exists
  Bachelor's degree in
 Provide technical support computer science or
and assistance for information systems
software, hardware and in order to work as
Computer computer systems for a computer systems
System the smooth operation of technician. PHP
Technician the cloud computing  Interpersonal, 18,000/month
system. problem-solving,
time management,
analysis, and
communication
skills
 Assess and provide  Bachelor’s degree in
advice on a company's Computer Science,
cloud infrastructure and Cyber Security or a
its networks and systems related technical
Information security. They address field.
Security security requirements in  Strong oral and PHP
Specialist cases were data is communication 20,000/month
migrated to public skills, a curious,
clouds. analytical mind and
the ability to solve
complex technical
problems.
 Provide technical
assistance to computer  Bachelor's degree in
users. Computer Science
 Answer questions or or related field, or
resolve computer equivalent practical
problems for clients in experience required
Customer/User person, or via telephone  Handle customer
Support or electronically. inquiries, resolve PHP
Specialist  May provide assistance disputes, inform 15,000/month
concerning the use of customers of
computer hardware and available products
software, including and services
printing, installation,
word processing,
electronic mail, and
operating systems
 The number of employees may increase as the business grows and additional
positions may be created such as sales manager and marketing manager to improve
the overall performance of the business.

b) Employee Benefits

The employee’s benefits given by the company are based on the requirements
of the Philippine Labor Code. The government have mandated benefits for employees
such as the Social Security System, PhilHealth, and Pag-IBIG. Employees are provided
with this benefit starting on the first day of their employment.

The company will also provide 13th month pay and overtime pay which are
stated under legislation. Furthermore, the company also grants the employees their
right not to report to work as may be provided by the law and as the rules prescribed
in Rule XVI of Executive Order No. 292. The employees may take a Leave of Absence,
specifically a Vacation Leave, Sick Leave, Paternity Leave, and Maternity Leave.

10. Financial Aspect

The calculations for the financial aspect is based on the following assumptions:

a) The first customers of bīt Savers comes from the population of AdDU
students which are about 8000 students.
b) Each student requires 1TB of space for storage of their school
documents, movies, music, games, and other file formats. This equates
to 8000TB of data to be stored.
c) bīt Savers will charge its users P400 per TB of storage used.
 INCOME STATEMENT
Revenue
Storage Demand 8000 TB
Pricing Strategy PHP 400.00 / TB
GROSS PROFIT PHP 3,200,000.00
EXPENSES
Single Payments
Physical Servers and VM-ware Licensing PHP 82,400.00
Storage Area
Networks PHP 28,890.00
Network Switches PHP 50,958.00
Server Cabinets and
PDU's PHP 16,000.00
System FTE's for Environmental Control PHP 1,125,000.00
Subtotal PHP 1,303,248.00
Recurring Payments
Rent of Space PHP 180,000.00
Power Consumption PHP 108,000.00
Salaries and Wages PHP 900,000.00
Subtotal PHP 1,188,000.00
TOTAL EXPENSES PHP 2,491,248.00

NET INCOME PHP 708,752.00

DEPRECIATION
Depreciable PHP 1,220,848.00

Salvage Value PHP 122,084.80

Depreciation
Expense PHP 219,752.64

CASH FLOW
Net Income PHP 708,752.00
Depreciation Expense PHP (219,752.64)

CASH BALANCE PHP 488,999.36

 BALANCE SHEET

ASSETS
Current Assets
Cash PHP 488,999.36
Accounts Receivables PHP 266,666.67
Fixed Assets PHP 1,483,248.00
TOTAL ASSETS PHP 2,238,914.03

LIABILITIES
Accounts Payable
Other Payables
Total L PHP 638,914.03
OWNER'S EQUITY PHP 1,600,000.00
TOTAL L IABILITIES &
EQUITY PHP 2,238,914.03

Financial Analysis

Based from the projected financial data, the company will be able to produce
a net income of PHP 708,752.00 on its first year of operation. Due to this, the
company will also have a positive cash flow to support and maintain normal
operation.

This indicates that the pricing strategy that will be employed by the company
is sufficient to support its financial need and create substantial profits.

11. Conclusion

The annual increase in demand for data storage and the improving accessibility
of Filipino citizens to the internet coincides with the potential of cloud computing
services. bīt Savers offers its users with resilient data storage services which is
cheaper, safer, and more accessible than traditional storage devices. The company’s
main goal is to be the first choice for cloud-computing services here in the Philippines.

The technology for achieving such feat is readily accessible and does not have
any IP restraints. There is also a huge market in Davao City alone due to people’s
increasing data storage demands. The manpower requirement for running the
business could easily be satisfied due to the high number of qualified IT professionals
in our country. Lastly, the pricing strategy that will be employed is deemed to be
sufficient to cover for operational costs and create substantial profit. All in all, it could
 be concluded that establishing bīt Savers – Cloud Computing Services is highly
feasible.

References:

http://searchcloudcomputing.techtarget.com/definition/Infrastructure-as-a-Service-IaaS

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https://www.rappler.com/nation/177540-duterte-free-wifi-internet-law

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