- EngineeringWay


Shaping the great minds.

Thursday, 8 March 2018

What is the main revenue source of FreeCharge? Why are investors investing so much in this startup when ads can’t make sufficient revenue?

3/08/2018 09:50:00 pm
The mystery behind FreeCharge and the temptation of Indian mindset to go after 'Free' stuff.

How does FreeCharge work?
Besides the advertisements that you see on the website, FreeCharge would earn a percentage of the amount of recharge that you do from the operator (ex: Airtel etc) and a percentage of the amount of the coupon that you spend.
Freecharge earns a lot of commission on per coupon used or shopping done through the link provided in the coupon email. Commission margin ranges from 1% to 40% and above of total sell value .
Let us see this with an example:
So, you need to recharge your mobile, data card or DTH or whatever else you may have in mind.
You decide to do a recharge for 300 Rs and get Dominoes Pizza coupons for 300 Rs.
You would be happy thinking that you've literally got your mobile recharged for Rs 300 and you've got your money back in terms of coupons as well. Isn't that great?
No, it is not. Because that is how they make money.
The Fine Print
Now that you've got coupons for Rs 300, you might notice that you have coupons worth Rs 300 but also you have six coupons of Rs 50 each.
This is where the fineprint written in small letters in the coupons come into picture.
You walk in to a Dominoe's Pizza Store and realize the following things:
1. You need to spend a minimum of Rs 200 to get a discount of Rs 50.
2. You cannot use the coupon in combination with any other existing offers provided by Dominoes.
3. The product offerings at the Dominoes would also be priced in such a way that you would find it little difficult to buy something. Pizza might cost more than Rs 200 or you would have to buy 2 or 3 things to cross the limit of 200 Rs.

Anyway, the idea is that you might end up spending more than 200 Rs. You might go in with friends as well and hence, the revenue for Dominoes would only increase.
How does FreeCharge and Dominoes earn out of this?
Let us say, FreeCharge has a deal to get 10% of every coupon spent from Dominoes.
10% of Rs 50 = 5 Rs.
Final Revenue for Dominoes: 145 Rs. (200 - 50 - 5)
FreeCharge would also have a deal with the mobile operators as well and they would give say, 5% of the amount of recharge done.
5% of 300 = Rs 15.

The Final Equation:

You spend: Rs 300 on FreeCharge and get the service.
You get: Coupons of Rs 50 each and 6 of them.
You would have to spent a minimum of 200 for each coupon to be used.
Revenue Per Coupon for Dominoes = 200 - 50 (coupon value) - 5 (FreeCharge commission) =  Rs 145
Revenue Per Coupon for FreeCharge = Rs 5
If you use all the coupons then,
Revenue for Dominoes = 145 * 6 = Rs 870

Revenue for FreeCharge = 15 (from mobile operator) + (5*6) = Rs 45

Total money you would spend to avail all coupons: (200 - 50) * 6 coupons = Rs 900
This is how it works :)
Moral of the story:
One does not simply, get things for free !! The world isn't that kind !

Business and Earning, business guidance, business technology, company, earning, Freecharge, freecharge wallet, revenue source, startups, Ads, adsense

Sunday, 4 March 2018

How to start an internet service provider company in India? What are the minimum requirements?

3/04/2018 04:11:00 am
Starting an Internet Service Provider (ISP) business is not an easy task but if planned well and with access to right resources is not impossible either.
The biggest challenge to becoming an ISP in India is the huge amount of initial capital required for the licensing, equipment and infrastructure. Internet Network bandwidth, equipment cooling and power sources are all resources that have to be planned and executed properly.
  • Find a suitable building to use as the ISP’s data center :
First you will need a place to host your data center. To start with, it can be a small room but with raised floor. It will help you route the cables easily.
  • Purchase and install UPS (Power Backup Solutions), a diesel power generator (In case of power cuts) and other electrical equipments and mounting units
UPS and diesel generators will help you in case there is a power outage in the city you are in. You will also need to ensure that the data center has got proper cooling equipments so that the equipments do not get hot.
  • Arrange bandwidth with at least one or two upstream Internet service providers
Your ISP needs to have its network bandwidth in order to provide Internet services. You will need to purchase bandwidth which you will resell to your clients. If you want help in purchasing bandwidth, please contact Wiber Broadband to buy ISP bandwidth
  • Buy high-speed fiber optic lines to connect to the upstream Internet provider(s)
You will need to connect your Data Center to the ISP upstream so you will need to either buy fiber optic lines or use a Wireless Link.
  • Purchase, install and configure enterprise-grade ISP equipments (Routers, switches and computers for server purpose)
You will need good quality hardware in order to provide a good service. If you settle for low cost solution, you will often be dealing with slow performance complaints from your clients which obviously is the last thing you want to deal with.
  • Create a sales and support strategy
You will need to create a sales team and after sale support team in order to sell and maintain your services. 
  • Acquire Licenses
The Government of India has come up with one license for all telecom related services, known as a Unified License. Under unified license, the license holder can apply for ISP license for different areas. One must acquire a Unified License under which he will obtain Authorization for providing ISP services for a certain area. Hence, it must be understood that there is no separate ISP license as such. Instead, one must obtain ISP Authorization under the Unified License. 
This is the most important aspect of starting an ISP company in India. You will either need to apply for your own License (too costly and time consuming) or you can share a license with other partners and associates. That ways you will have to pay very little amount of money and can start an ISP legally.
  • Start Selling
Once you have done everything you can start selling and enjoy the returns on your investment.
The whole process takes from upto 21 days to 2 months depending on the planning, feasibility and a few other factors.

Friday, 2 March 2018

How to start business of renting servers? how to start, what to do, how to do and is it worth it?

3/02/2018 04:55:00 am
  • Some basic information to take into consideration:
  • The market size globally is huge.
  • Dedicated server marketWill reach 5.72 billion dollars in 20186.03 billion dollars in 2019 and 6.53 billion dollars in 2020.
  • Shared Hosting (Their providers usually use VPS, dedicated servers). In 2018, the market for shared hosting services is predicted to reach 18.7 billion U.S. dollars worldwide.
  • Competition in the web hosting industry (Shared, dedicated, VPS and cloud) is very aggressive. So be ready for that!
  • How do I start business of renting servers:
    • Perform an initial idea evaluation and market research to avoid time waste!
    • Starting a business requires a combination of different aspects: Technical skills, $$, marketing, team, passion, timing, … check this video: The single biggest reason why startups succeed
    • There are many people and businesses who enter the market and succeed, and others who fail and exit for different reasons.
    • In the web hosting, things are much easier that other markets where you need buildings, infrastructure, …
    • You have to take into consideration what kind of services do you want to sell (managed servers, unmanaged servers, …).
  • how to start, what to do, how to do
    • I suggest to start SMALL and expand as needed based on your context.
      • You can start as a reseller of other big brands (This will help you from the branding and marketing perspective). Select your partner carefully to make your journey easy!!
      • You can try the VPS servers and go to the dedicated servers, or take both based on on your potential to attract customers and create a profitable business.
      • If you already have what it takes, other businesses acquisition may be an option to consider. (It takes more funds, but may make other things easier instead of starting from scratch. You have to carefully evaluate the deals based on your business objective)
  • and is it worth it?
    • I will say Yes. If the existing providers are making money and are able to build good brands and exit the market buy acquisition, why not you?
    • It really requires a VERY VERY HARD WORK!
Hope this helps and good luck!

dedicated servers hosting

What will it cost one to have a startup like Uber?

3/02/2018 04:27:00 am
Sorry for sounding like a smartass, but…

Uber is worth about $51 billion dollars at the time of this writing. Lyft, which is like Uber, is worth $11 billion. So I would guess somewhere between $11 billion and $51 billion would be your cost for having a startup like Uber.

If you try to do it for less, you might still succeed, but you will much more likely fail. (Most startups fail). And if you fail, you won’t be like Uber or Lyft.

At its core, Uber is a glorified automated taxi dispatching service which uses the internet, public wireless data access, smart phones, and GPS to help connect drivers to passengers automatically and efficiently. The technology is not earth-shaking.

One key to Uber’s valuation is that they have a business model which pushes the financial risks of capital acquisition, capital depreciation, accidents, and fluctuating passenger demand off their books and onto Uber drivers while capturing the financial benefits of such a great service to themselves without sharing it with the drivers. If Uber actually had to buy their own cars and insurance, and put their drivers on salary they would be only a bit better than taxi companies.

Another key to their success is that they are serving markets controlled by rent-collecting monopolies (e.g. taxi companies) which often offer a very distasteful combination of high prices and poor service, thus making market entry very compelling.

If you can find a startup idea which pushes risks onto partners and subcontractors, and which breaks up a badly behaved monopolist, you might end up with similar success.


Saturday, 3 February 2018

Set Up Single Sign-On for Your Internal Users | Salesforce | SSO | Axiom

2/03/2018 11:36:00 pm
Single sign-on (SSO) is a session and user authentication service that permits a user to use one set of login credentials (e.g., name and password) to access multiple applications. The service authenticates the end user for all the applications the user has been given rights to and eliminates further prompts when the user switches applications during the same session. On the back end, SSO is helpful for logging user activities as well as monitoring user accounts.
Some SSO services use protocols such as Kerberos and the security assertion markup language (SAML). SAML is an XML standard that facilitates the exchange of user authentication and authorization data across secure domains. SAML-based SSO services involve communications between the user, an identity provider that maintains a user directory, and a service provider. When a user attempts to access an application from the service provider, the service provider will send a request to the identity provider for authentication. The service provider will then verify the authentication and log the user in. The user will not have to log in again for the rest of his session. In a Kerberos-based setup, once the user credentials are provided, a ticket-granting ticket (TGT) is issued. The TGT fetches service tickets for other applications the user wishes to access, without asking the user to re-enter credentials.

Configure Inbound SSO with a Third-Party Identity Provider

Let’s start configuring inbound SSO with a third-party identity provider.

The head of your IT department, Dharmik Patel, tells you to set up Salesforce users with SSO so that they can log in to your Salesforce org with their engineeringway network credentials. Here, we walk you through the steps to set up SSO for engineeringway Tech’s new employee, Darshil patel. You’ll set up inbound SSO using the Axiom Heroku web app as the identity provider.

Is this starting to sound difficult? It’s not, really. Let’s break it down into simple steps.
  1. Create a Federation ID for each user.
  2. Set up SSO settings in Salesforce.
  3. Set up Salesforce settings in the SSO provider.
  4. Make sure it all works.

Remember what the prerequisite is for SSO? That’s right, a custom domain. Because you’ve already completed the unit to set up your custom domain, you’re ready to go.

Step 1: Create a Federation ID

When setting up SSO, you use a unique attribute to identify each user. This attribute is the link that associates the Salesforce user with the external identity provider. You can use a username, user ID, or a Federation ID. We’re going to use a Federation ID.

No, a Federation ID isn’t owned by an interstellar shipping organization with nefarious designs. It’s basically a term that the identity industry uses to refer to a unique user ID.
Typically, you assign a Federation ID when setting up a user account. When you set up SSO on your production environment, you can assign the Federation ID for many users at once with tools like the Salesforce Data Loader. For now, let’s set up an account for engineeringway Tech’s new employee, Darshil patel.

  1. From Setup, enter Users in the Quick Find box, then select Users.
  2. Click Edit next to Darshil’s name.
  3. Under Single Sign On Information, enter the Federation ID: ceo@engineeringway.com.

Tip: A Federation ID must be unique for each user in an org. That’s why the username is handy. But if the user belongs to multiple orgs, use the same Federation ID for the user in each org.

Click Save.

Step 2: Set Up Your SSO Provider in Salesforce

Your service provider needs to know about your identity provider and vice versa. In this step, you’re on the Salesforce side providing information about the identity provider, in this case, Axiom. In the next step, you give Axiom information about Salesforce.
On the Salesforce side, we configure SAML settings. SAML is the protocol that Salesforce Identity uses to implement SSO.

Tip: You’re going to work in both your Salesforce Dev org and the Axiom app. Keep them open in separate browser windows so that you can copy and paste between the two.

  1. In a new browser window, go to http://axiomsso.herokuapp.com.
  2. Click SAML Identity Provider & Tester.
  3. Click Download the Identity Provider Certificate.
  4. You upload this certificate later to your Salesforce org, so remember where you save it.
  5. In your Salesforce org, from Setup, enter Single in the Quick Find box, then select Single Sign-On Settings.
  6. Click Edit.
  7. Select SAML Enabled.
  8. Click Save.
  9. In SAML Single Sign-On Settings:

           1.Click New.
           2.Enter the following values.

      • Name: DemoSSO
      • Issuer: http://axiomsso.herokuapp.com
      • Identity Provider Certificate: Choose the file you downloaded in step 3.
      • Request Signature Method: Select RSA-SHA1.
      • SAML Identity Type: Select Assertion contains the Federation ID from the User object.
      • SAML Identity Location: Select Identity is in the NameIdentifier element of the Subject statement.
      • Service Provider Initiated Request Binding: Select HTTP Redirect.
      • Entity ID: Enter your My Domain name, including “https.” Use the subdomain name that you set up in the “Customize Your Login Process with My Domain” unit. Copy and paste it from the browser address bar.

Before you click Save, confirm that the settings page looks something like:

Click Save and leave the browser page open.

Step 3: Link Your Identity Provider to Salesforce

Now that you’ve configured Salesforce to know about the identity provider (Axiom), you teach your identity provider about your service provider (Salesforce).

You fill in a few fields in the following Axiom form. Easy peasy. Because you’re supplying Salesforce SSO settings, keep two browser windows open, one for Salesforce and one for Axiom.

  1. Return to the Axiom web app. If you don’t have the app open in a browser window, go to http://axiomsso.herokuapp.com.
  2. Click SAML Identity Provider & Tester.
  3. Click generate a SAML response.
  4. Enter the following values. Leave the other fields as is.
      • SAML Version: 2.0
      • Username or Federated ID: ceo@engineeringway.com
      • Issuer: http://axiomsso.herokuapp.com
      • Recipient URL: Get the URL from the Salesforce SAML Single Sign-On Settings page. Don’t see it? It’s at the bottom labeled Salesforce Login URL.
      • Entity Id: The Entity ID from the Salesforce SAML Single Sign-On Settings page.

When you’re finished, the Axiom settings page looks something like:

Step 4: Make Sure It All Works

OK, now that everything’s all configured, let’s make sure that it works. A successful login will be the complete proof.
  1. In the Axiom settings browser window, click Request SAML Response. (It’s way down at the bottom.)
  2. Axiom generates the SAML assertion in XML. Does it look like language used by a robot communicating with desert outpost moisture evaporators? Look again. You can see that it doesn’t look all that bad. To get to the interesting information, scroll through the XML.

Click Login.

If everything’s OK, you’re logged in as Sia at your Salesforce home page. The Axiom application logs you in to your Salesforce org as the user with the assigned Federation ID.
Congratulations! You just configured Salesforce SSO for your users who are accessing Salesforce from another app.