Cloud Computing
A New and Rapidly Adopted Model
for Information Technology and Business Services
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services
Table of Contents
Execut...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 3
“The Cloud,”is an ambi...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 4
Executive Summary:
Wha...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 5
Cost Savings due to ut...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 6
In today’s IT environm...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 7
This means no more exp...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 8
The act of virtualizin...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 9
Security:
Where Will Y...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 10
With the benefits men...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 11
Tech firms are not th...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 12
One can clearly see t...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 13
This Whitepaper was w...
Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 14
1.	 “About the Federa...
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Cloud computing whitepaper(2)

  1. 1. Cloud Computing A New and Rapidly Adopted Model for Information Technology and Business Services
  2. 2. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services Table of Contents Executive Summary: What is Cloud Computing? Elements of Cloud: Different Types of Cloud Technology Virtualization: Flexibility of the Cloud Security: Where Will Your Data Reside? Leaders: Who is Using Cloud Technologies? Conclusion: Enterprise IT Model You Can Afford? About the Author Works Citied 4 6 8 9 10 12 13 14
  3. 3. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 3 “The Cloud,”is an ambiguous term in an industry normally riddled with tech savvy acronyms. The word used to describe the most talked about and adopted technology today leaves decision makers wondering what exactly is“Cloud Computing?” Perhaps“The Cloud”refers to the physical image of the massive clusters of servers that are housed in data centers such as Google and Amazon’s 300,000 server data centers; or maybe it relates figuratively to the technology’s elasticity, enabling technical support for varying amounts of web traffic, storage and networks. Much like the clouds we see in the sky glide to fit the day’s weather, so does Cloud technology scale to fit the increasing demand for faster communication and technical reliability.
  4. 4. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 4 Executive Summary: What is Cloud Computing? Cloud Computing is a new delivery model for information technology (IT) and business services. The Cloud model enables convenient on-demand access to data servers and software that can be quickly provisioned with minimal management effort (2). The model is characterized by four main components: •“Pay Per Use”payment structure • Location independent • Rapid elasticity • On demand service and server usage This is a huge shift from traditional IT structures characterized by expensive hardware and software purchases, licenses, and software updates. In the traditional IT model, an IT department will spend 75% of its budget on maintenance (2) and the organization will spend massive chunks of money on software and hardware purchases. The Cloud model improves upon the traditional model by taking advantage of third party data centers that enable the organization to use the servers as needed and only pay for that which is used. This creates a greater separation between the user and the infrastructure and support processes. Thus the organization no longer has to worry about database backups, upgrades, and patches, which are now handled by the cloud provider (11). Such separation results in many benefits to the organization. These benefits include: The Cloud model enables convenient on-demand access to data servers and software that can be quickly provisioned with minimal management effort. Provisioning savings of 76% Hardware savings of 65% System Administration savings of 45% Software savings of 27%
  5. 5. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 5 Cost Savings due to utilization of pooled resources including: • Hardware savings of 65% through reduced infrastructure and improved utilization • Software savings of 27% from lower costs of ownership and licenses • System Administration savings of 45% from reduced system administration and operation costs • More efficient business processes with business application usage and open-source coding environments • An IT department focused on innovation instead of maintenance of hardware and software • Better and longer use of infrastructure • Mobility: Ability to work via any device at any time • Better security of data Provisioning savings of 76% in labor and management Research by IBM (11) Cloud computing is being adopted rapidly in both the commercial and government sectors with more than 90% of companies using or planning to use cloud computing technologies. (8) The Obama Administration’s“cloud first”policies require government agencies to use cloud services where possible for new IT developments. Federal agencies are looking to eliminate 800 data centers over the next four years (3) and aim to shift 25% of the government’s $80 billion in annual IT spending (3). The Chief Information Officer, Vivek Kundra stated that the Federal Cloud Computing Strategy was propelled by three driving forces: 1. The economies of scale regarding computing infrastructure 2. The ability to provide computing on demand 3. Ability go centralize vast collections of data for analytics (10) Such initiative and benefits make cloud computing hard to ignore and it is estimated that half of all federal agencies will be in the cloud within 12 months (3). Cloud computing is being adopted rapidly in both the commercial and government sectors with polls showing that more than 90% of companies and half of all federal agencies using or planning to use cloud computing technologies.
  6. 6. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 6 In today’s IT environment increasing data volumes are challenging the ability of most organizations to store and manage it all. Continuing to add more servers and storage systems creates large infrastructures that are extremely costly to scale, house, power and maintain (6). As stated above, advances in cloud technologies help solve these problems but first, one must understand the elements that make up this innovation. Software that is typically loaded on individual computers is instead loaded onto back-end servers usually located with a third party service provider. Using a simple interface, such as an Internet browser or remote desktop connection, users are able to access software from any device (4). Cloud services are presented in three ways: 1. SaaS/ Software as a Service: The provider’s application or software that is typically purchased for large upfront costs is instead run on a cloud infrastructure accessible on various devices through thin client interfaces such as a web browser. 2. IaaS/ Infrastructure as a Service: The provider offers fundamental computing resources such as processing, storage and networks to the organization. The organization can store and work via the third party’s cloud infrastructure and does not have to worry about underlying infrastructure of its own. 3. PaaS/ Platform as a Service: Provider takes elements of SaaS and IaaS and provides the customer the ability to deploy the cloud infrastructure and acquired apps and software via remote desktop connection or internet connection. (11) Elements of the Cloud: Different Types of Cloud Technology No more expensive server and back up purchases that only run at minimal capacity. No more extravagant upfront costs for software that has to be downloaded onto every computer and upgraded every couple years. No more hardware failures due to over usage.
  7. 7. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 7 This means no more expensive server and back up purchases that only run at minimal capacity. No more extravagant upfront costs for software that has to be downloaded onto every computer and upgraded every couple years. No more hardware failures due to over usage. An organization can now pay for the server and network space they use and rest assured that their data is safe and secure in an independent location run by professionals in the field. They can purchase software for a small monthly fee and no longer worry about expensive upgrades and hidden fees. Cloud technology will help bring the best infrastructure and software available to organizations that before could have never afforded this enterprise level of sophistication and support. “Cloud computing is as big a transformation as we have ever seen” - Satya Nadella/ President of Server & Tools Business at Microsoft “The fact that this resource is available to many users at highly economical rates is part of the excitement of cloud computing” - Charles Babcock/ Author of Management Strategies for the Cloud Revolution
  8. 8. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 8 The act of virtualizing computing power has removed IT complexity in areas of mobility and data security (11). It breaks the link between software and a particular piece of hardware, making the software mobile and capable of being accessed by different kinds of hardware. Systems and data can now be accessed through a wide range of devices available to the user. Instead of sitting in the office or lugging a heavy laptop around, one now has the option to work via a mobile device or newer technologies such as the IPAD. The devices no longer need the same level of processing, memory and storage capabilities that traditional software purchases require (11). This process gives way to not only advancement in security and mobility but also betters the implementation and training process of software by enabling the cloud provider to build and upgrade the software on a different server. Once the upgraded software is tested and all data is copied onto the upgraded server, a live migration can be performed in which the system is moved from one physical server to another without any interruptions to the organization’s daily business practices. This is an accepted and reliable data center technique and is leaps and bounds better than the traditional upgrade and implementation models. This same model is used to handle peeks in traffic in an organizations network, if the server is experiencing too much usage additional Virtual Machines can be fired up quickly to handle all traffic (2). “Virtualization has consolidated what used to require 10-12 physical servers into one” - Charles Babcock/ Author of Management Strategies for the Cloud Revolution “Last year was the first in which the industry created more virtual servers than purchased actual physical servers” - Robert Wahbe/ Corporate Vice President Server & Tools for Microsoft “Virtualization will allow organizations to take all resources, pull them together to dynamically provision and scale your software and only pay for what you are using” - Robert Wahbe/ Corporate Vice President Server & Tools for Microsoft Virtualization: Flexibility of the Cloud The Cloud breaks the link between software and a particular piece of hardware, making the software mobile and capable of being accessed by different kinds of hardware. Devices no longer need the same level of processing, memory and storage capabilities that traditional software purchases require.
  9. 9. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 9 Security: Where Will Your Data Reside? It is common for decision makers to become wary with the idea of not having their organization’s severs and data on premise. The act of handing such valuable information over to a third party can be intimidating. Though security levels of public clouds can be comparable to that of large enterprise organizations, it is now common belief that the cloud’s security is leaps and bounds better than most small organizations have today. Again, the power of the cloud gives smaller organizations the ability to afford and secure their IT environment on an enterprise level. The main security component of the cloud is that the data will no longer reside on the PC; it will instead be located in the cloud server center. When the computer is shut down the data will be kept in the cloud, not on the device. Thus when a computer is lost, dropped or crashes the data will remain secure in the cloud. All the data and work done before the crash can be accessed from any device, including a friend’s laptop, a new PC or even a mobile phone. No longer is your security and data reliant on your PC’s survival. Additionally, data centers are divided into different“availability zones”each being powered by different independent power suppliers (2). Often these centers are very far apart geographically so that failure in one center does not affect the data that is backed up in a backup center 1000 miles away running on a completely different power source than the one experiencing disaster. The systems will be transferred seamlessly to the backup center with only a few seconds of down time experienced by the end users. No longer are your servers and data reliant on the site’s safety, instead they are backed up in multiple locations throughout the country. Cloud providers have the best practices in data facility backup, and they also have firewalls and terminal protection and equip each virtual machine with its own firewall. (2). It is easy to see how leaders now acknowledge that putting data and software into the cloud is a much safer model than leaving important systems at the hands of small organization’s on-premise infrastructure and hardware. “70 to 80 percent of cloud computing risks are no different from the standard third-party outsourcing risks we’ve been tackling for years.” - Charles Babcock/Author of Management Strategies for the Cloud Revolution The main security component of the cloud is that the data will no longer reside on the PC; it will instead be located in the cloud server center. When the computer is shut down the data will be kept in the cloud, not on the device. Leaders now acknowledge that putting data and software into the cloud is a much safer model than leaving important systems at the hands of small organization’s on- premise infrastructure and hardware.
  10. 10. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 10 With the benefits mentioned above, it is no shock that almost all leaders in the IT community are making a switch to developing the cloud. According to research Co. IDC, spending on public cloud computing services will grow five times faster than all global IT spending in 2011 (7). Every major tech firm believes in the future of cloud computing and is investing heavily in its development including Microsoft, IBM, Google, Amazon, Dell and Hewlett Packard (2). Microsoft plans to spend 90% or 8.54 billion of its 9.6 billion annual research and development budget on cloud computing (9). Dell is shifting gears from being a personal computing and business computing supplier to becoming a cloud supplier as well and in 2009, Amazon.com’s use of network bandwidth in renting cloud computing infrastructure surpassed its bandwidth use in online retailing (2). Leaders: Who is Using Cloud Technologies? The Federal Government has been quick to see the advantages and has made significant steps in developments in cloud computing. Small Business Medium Business Large Business Federal Government State & Local Goverment 21% 21% 37% 29% 23% Percentage of organizations implementing or maintaining cloud computing:
  11. 11. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 11 Tech firms are not the only entities investing in the cloud. The Feder- al Government has been quick to see the advantages and has made significant steps in developments in cloud computing, appointing the first Chief Information Officer, Vivek Kundra, in 2009 to develop and oversee the Federal Cloud Computing Initiative whose mission statement is to drive the government wide adoption of cost effec- tive, green and sustainable federal cloud computing solutions (2) (1). Such developments include The General Services Administration (1) Apps.gov website that enables federal agencies to order from a menu of infrastructure as a service (IaaS) offerings from service providers. Such developments and initiatives towards the cloud are seeing results with the 2011 Federal Government’s Cloud Computing Survey showing a big jump in the use of cloud services, with 29% of respondents saying their agencies are using cloud services, up 10 points from last year and another 29% planning to begin using the cloud within 12 months; which means adoption should surpass the 50% mark in the year ahead (3). Even the European Commission is currently seeking views from citizens, businesses , public administrators and others parties on how to fully benefit from cloud computing which will feed into a European Cloud Computing Strategy that will be presented in 2012 (5). “I am excited about the potential benefits of Cloud Computing to cut costs, improve services and open up new business opportunities.” - Neelie Kroes/ European Commission Vice President of Digital Agenda
  12. 12. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 12 One can clearly see the importance of considering and planning a cloud strategy for you organization. The cloud offers enterprise level technology to small organizations at a cost they can afford. One of the cloud’s biggest allies is today’s economic climate. The economic downturn has made it hard for any organization to afford the software and IT environment needed to perform at its best. The cloud breaks down these economical barriers by enabling IT services to be obtained in small increments on a pay-as-you-go basis (11). When comparing traditional IT models to the cloud it becomes impossible to ignore this innovation: Conclusion: Enterprise IT Model You Can Afford The cloud breaks down these economical barriers by enabling IT services to be obtained in small increments on a pay-as-you-go basis. Almost every major IT firm is investing in development in the cloud, 90% of companies in America already use or plan to use cloud technology in some way and even the Federal Government is investing in cloud technology. For the first time, small organizations have the ability to have the best technology available on the market due to the incredible elasticity and economies of scale of the cloud environment. Do not get left behind, talk to others in your organization and start the process of forming a cloud strategy. It is a vital part of your organization’s future and success. “The cloud changes the economies of IT, suddenly IT can do a lot more to enable end users to get the software they want without requiring a lot more in budget or staff resources” – Forrest Norrod/ VP & GM of Dell’s Data Center Solution Unit “If you don’t get into the habit of making use of large amounts of resources, if you stick to the attitude that computing power is a scarce and precious resource, your company will be outflanked by those that figure out how to tap into the cloud” – Charles Badcock/ Author of Management Strategies for the Cloud Revolution TRADITIONAL MODEL CLOUD COMPUTING MODEL Labor Intensive Many different servers and computing hardware suplied by different manufactures Over invested in hardware to avoid machine failure All servers and computing hardware the same Tolerates hardware failures and routes work around them Ties together low cost parts and manages them as a single resource
  13. 13. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 13 This Whitepaper was written by UOS Global. UOS Global uses the power of the cloud to provide utility solutions to small government entities throughout America. State of the art software such as CUSI’s UMS.net utility billing software, Microsoft Office tools, GIS and asset tracking and IVR programs are set in a platform (PaaS) and delivered via a remote desktop that can be accessed on any computing device. UOS Global has 30 years in the meter reading and utility industry and is a partner to cities by providing them with, in addition to the platform, accurate training, outsourcing of operations such as bill printing and back office management if needed, and a trusted consultant to any utility issues the city may face. Our focus is to help make technology usable and reliable so it moves cities forward and doesn’t hold them back by helping maximize productivity and eliminate financial stress and uncertainty. UOS Global has developed a system to handle all utility needs so the staff can focus on their work by offering: Support: a network of genuinely sincere and accessible professionals dedicated to making your day less stressful Protection: disaster-proof data with security you can always depend on Quality: the best billing and collections software delivered to your city using cloud computing technology that lowers energy usage and eliminates hardware costs About the Author
  14. 14. Cloud Computing: A New and Rapidly Adopted Model for Information Tehcnology and Business Services 14 1. “About the Federal Cloud Computing Initiative | Info.apps.gov.”Home | Info.apps.gov. GSA. Web. 17 Aug. 2011. <http://www.info.apps. gov/node/2>. 2. Badcock, Charles. Management Strategies for the Cloud Revolution. United States: The McGraw Hill; 2010. 3. Biddick, Michael.“Cloud Computing’s Tipping Point -- InformationWeekCloud Computing’s Tipping Point - Government Blog.” InformationWeek | Business Technology News, Reviews and Blogs. Apr. 2011. Web. 17 Aug. 2011. <http://www.informationweek.com/news/ government/cloud-saas/229401691>. 4. “Cloud Computing Solutions by CDW.”CDW - Computers, Hardware, Software and IT Solutions for Business. CDW. Web. 29 July 2011. <http://www. cdw.com/content/solutions/cloud-computing. aspx>. 5. “Commission Seeks Views on How Best to Exploit Cloud Computing.”EHealthNews.eu - The First European EHealth News Portal. May 2011. Web. 17 Aug. 2011. <http://www.ehealthnews.eu/ research/2638-commission-seeks-views-on-how- best-to-exploit-cloud-computing>. 6. Davis, Susan.“Is Data Overload a Drag on Your Software Solution? | Cloud Computing Journal.”Cloud Computing Journal, 26 May 2011. Web. 29 July 2011. <http://cloudcomputing.sys- con.com/node/1849265>. 7. “Cloud Computing ETF: The SKYY’s The Limit.”Business Insider. 12 July 2011. Web. 29 July 2011. <http://www.businessinsider.com/cloud- computing-etf-the-skyys-the-limit-2011-7>. 8. Gardner, Dana.“Open Group Cloud Survey Shows a Lack of IT Preparedness, Especially on Measuring Cloud’s True Costs and Benefits | ZDNet.” Technology News, Analysis, Comments and Product Reviews for IT Professionals | ZDNet. 09 May 2011. Web. 17 Aug. 2011. <http://www.zdnet.com/blog/ gardner/open-group-cloud-survey-shows-a-lack- of-it-preparedness-especially-on-measuring- clouds-true-costs-and-benefits/4157>. 9. Harris, Derrick.“Microsoft Plans $8.6B in Cloud R&D, but Where Should It Go? — Cloud Computing News.”GigaOM — Tech News, Analysis and Trends. 08 Apr. 2011. Web. 17 Aug. 2011. <http://gigaom.com/cloud/microsoft-plans-8-6b- in-cloud-rd-but-where-should-it-go/>. 10. Page, Lewis.“DARPA Wants Weapons- grade Military Cloud Computing • The Register.” The Register: Sci/Tech News for the World. May 2011. Web. 17 Aug. 2011. <http://www.theregister. co.uk/2011/05/17/darpa_war_clouds/>. 11. Porta, M. & Karimi, A. etc. (2009, September). Capturing the Potential of Cloud, Works Cited

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