"Business Development Proposal (BDP)maintain good partnership with companies and enhance communication with themand build network 2. Key Activities: As Cloud UK is a start-up company, it has to target more number ofcustomers by providing low cost and high quality solutions. Cost analysis can be doneby referring to competitor rates and QoS (Quality of Service). To achieve successCloud UK should hire highly trained engineers / employees. HR, Marketing Engineeris a part of recruitment process. To attract more clients, Cloud UK can provide free 30days trial for personal users’ of cloud services. Such attractive plans are to be highlycommercialized.3. Value Proposition: Value addition features of Cloud UK that makes it different fromother Cloud services company are providing High quality services at low – cost, freetrial plans, 24 / 7 support, highly reliable, secured and flexible services, free loadbalancing features etc4. Customer Relationship: Being a Start up company, Cloud UK’s treasure is its clients.Building good customer relationship with all clients, expanding business network etcare primary goals in customer relationship5. Customer Segments: As already discussed, Cloud UK’s potential clients are personalusers, MNC companies, Government bodies and small and medium scale industriesworldwide. 6. Key Resources: Key resources that Cloud UK currently has are Job site / premises,IaaS and SaaS services from Amazon Web services and Salesforce respectively,Customer details, Servers and Technology7. Distribution Channels: To reach customers or clients, the available distributionchannels are electronic media (telephone, video calling, e – mails etc) and bydeveloping networking with people personally 8. Cost structure: Cost structure is to provide low cost services until Cloud UK getsgood recognition in markets and then eventually decide on service costs36 Business Development Proposal (BDP)9. Revenue Statements: After successful completion of 2 years, high revenue will beexpected and thus further acquiring of PaaS services is planned. In future expansionof business can be done by providing Big Data services to clients. Core StrategyCloud UK’s Core Strategy can be defined in three different categories:- Mission Statement: Cloud UK’s mission is to provide services related to Cloudcomputing such as hosting various applications, services based on emails, storage ofdata, information sharing etc. Business model developed for Cloud UK is supposed toincrease number of clients, provide good services and solutions to customers, expandbusiness at greater extent, competitive rates in market etc- Product / Market Scope: Cloud UK will initially concentrate on providing IaaS andSaaS solutions only. In future, implementation of PaaS services and Big Data servicesis decided. - Basis of Differentiation: Free trial versions, free 24 / 7 support, low cost and highquality solutions, Integrated Power management (New.itstrategists.com, 2011) andfree load balancing services will be provided by Cloud UK. (Kaiser, 2008)Competitive Advantage and SustainabilityCompetitive AdvantageCloud UK’s Competitive Advantages are: competitors such as VMHosts, Flexiant,Commensus PLC provide services to clients at very high costs. (Mason and Brown, 2015)Thus, Cloud UK takes this as a competitive advantage and provides same services at lowcost. After detailed assessment on Cloud UK’s own strengths and weaknesses, it was foundthat Cloud UK’s strengths are low cost, high quality solutions, free support and maintenanceto clients etc. (Kurihara, n.d.) These strengths are enough to serve customer needs in market.Thus, Competitive Advantages of Cloud UK are same as its value added features. SustainabilityBusiness Sustainability is defined as a process in which organisations carry out managing ofrisks such as social and environmental, opportunities and financial statistics. A sustainable37 Business Development Proposal (BDP)cloud computing business model in Cloud UK ought to have the capacity of converting newadvances in technology into a service value recommendation. (Sustainability is the Key:Cloud Computing Business Models, n.d.)Sustainability practices that Cloud UK will follow are:- Stakeholder engagement: Cloud UK will learn from clients, workers and theirsurrounding group. Engagement involves sharing of messages, as well asunderstanding resistance, discovering shared belief and including stakeholders in jointchoice making; - Environmental administration frameworks: These frameworks give the structures andcourses of action that help install ecological effectiveness into Cloud UK company’sway of life and eliminate risks. The most generally perceived standard worldwide isISO 14001, however various other industry-particular and Country - particularprinciples exist; Cloud UK initially will follow standards of ISO 14001 and lateradapt other principles if necessary- Life cycle investigation: In future for expansion of business, Cloud UK will take ahuge jump forward ought to efficiently examine the ecological and social effect of theproducts they utilize and create through life cycle examination, which measures theprecisely effects. Cloud UK plans to stay more Sustainable so that Company can attract more customers andcan also retain existing skilled and talented employees. Thus, there is very less exposure tovarious risks such as reputation and financial risks. Hence, Cloud UK Company can be moreadaptive and innovative. (Lexicon.ft.com, n.d) As Cloud UK will be a start up company, it isimportant to maintain reputation in markets and finances should be managed carefully. Resource NeedsResource needs of Cloud UK can be categorised into five different sectors. They areexplained below:1. Financial Resources: Financial resources is one of the most important factor neededto start Cloud UK business. Basic costs needed to start Cloud UK company are:purchase of work – site or office, registration of business name, website domain38 Business Development Proposal (BDP)registration, legal and regulatory tasks, recruitment and training of employees, officeinfrastructure, business cards etc. Initially all the three partners (CEO and his othertwo partners) will invest together for registration process. Later they can apply forbank loans depending on feasibility. 2. Human Resources: Employees is one of the reasons for a company’s success. CloudUK will recruit few experienced experts with track records of inside their domain ofmastery guarantees that the mission and objectives of the organization will becompleted effectively and with competence. Fresher’s, experienced employees,marketing managers, HRD (Human Resource Department) etc are a part ofrecruitment in Cloud UK company.3. Physical Resources: This particular type of resource involves acquiring a properworkplace, purchase of desktops, setting up networks, purchasing cloud relatedservices and many other resources such as telephones, marketing tools etc.(Henderson, 2015)4. Employee Training: After the process of recruitment, the next important resource tobe obtained is to provide proper technical training to employees in workplace.Training will be based on the services that Cloud UK will be providing to theirclients. Apart from technical training, employees recruited for support / customer carealso will be given training in their domain5. Consultation: This is yet another important resource necessary for setting up CloudUK business. Cloud UK partners will have to seek continuous consultation fromexperts who are professionals in setting up start – up companies. Essential Networks and Partnerships:Cloud UK will have to be connected to agencies for recruitment of employees, cloud servicecompanies (Amazon Web Services and Salesforce), consultants, training agencies etc. Also,Cloud UK will have to build good networking with their clients and other customers in orderto retain them and gain more customers. In addition, Cloud UK should be an active memberin all possible social – networking sites to expand business opportunities. (Miller, 2015)Partnerships:39 Business Development Proposal (BDP)- Training agencies- Cloud services providing companiesSummary Business Model Canvas:Figure shows the Business Model Canvas for Cloud UK Company. (Osterwalder, 2005)Figure Business Model Canvas for Cloud UK Company40 Business Development Proposal (BDP)Chapter – 5Evaluation of business development planOnce detailed Feasibility Analysis is carried out, the next step is to develop a business planfor the service provider and then planning per service cost.(1) Developing a business plan for the service provider: For Cloud UK to become anemerging and successful cloud computing company, developing a perfect businessplan is an essential part of business setup. There are nine steps to approach a businessplan. Figure 5.1 shows the Approach to Business Plan for Cloud Computing services.Figure 5.1 Approach to Business Plan for Cloud Computing services(2) Planning cost per service: Cost of services is an important factor for a successfulbusiness plan. To calculate cost of services for Cloud UK Company, in depthknowledge of per service cost is necessary. The costing method used in this case isTime – driven and activity – based method. Reasons to use this particular method forCloud UK are: simplified form, less time consuming and cost investment is less whencompared to other traditional methods. 41 Business Development Proposal (BDP)Figure 5.2 Evaluation of Cost Per Service for Cloud UK- Taking into account a commercial operation of Cloud service, a number of parametersare collected. These parameters range from executive management to facilities. - Compilation of resources list is carried out and each resource cost is calculated perGB- When a set of services are required, a list is made consisting of all activities that arenecessary to accomplish a particular service. Depending on the resource consumptionfor each activity, cost of per activity is estimated- Next the services cost is calculated by listing the activities that are necessary for theservice execution- Once the cost per service is obtained, the delivery volume expected is calculated.Thus, by multiplying cost of service with delivery volume, the cost of delivery isobtained.(Effective Planning for Cloud Service Providers, 2012)42 "