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Cloud Computing



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  • Jeff Bezos’ quote: Kevin Marks quote: video interview
  • The Cloud is a term that borrows from telephony. Up to the 1990s, data circuits (including those that carried Internet traffic) were hard-wired between destinations. Subsequently, long-haul telephone companies began offering Virtual Private Network (VPN) service for data communications. Telephone companies were able to offer VPN based services with the same guaranteed bandwidth as fixed circuits at a lower cost because they could switch traffic to balance utilization as they saw fit, thus utilizing their overall network bandwidth more effectively. As a result of this arrangement, it was impossible to determine in advance precisely which paths the traffic would be routed over. The term "telecom cloud" was used to describe this type of networking, and cloud computing is conceptually somewhat similar. The underlying concept of cloud computing dates back to 1960 , when John McCarthy opined that "computation may someday be organized as a public utility "; indeed it shares characteristics with service bureaus that date back to the 1960s. Ramnath K. Chellappa defined it as a computing paradigm where the boundaries of computing will be determined by economic rationale rather than technical limits . [21] The term cloud had already come into commercial use in the early 1990s to refer to large Asynchronous Transfer Mode (ATM) networks. [22] By the turn of the 21st century, the term "cloud computing" began to appear more widely, [23] although most of the focus at that time was limited to SaaS. In 1999, was established by Marc Benioff , Parker Harris, and their associates. They applied many technologies developed by companies such as Google and Yahoo! to business applications. They also provided the concept of "On demand" and SaaS with their real business and successful customers. The key for SaaS is that it is customizable by customers with limited technical support required. Business users have enthusiastically welcomed the resulting flexibility and speed. In the early 2000s, Microsoft extended the concept of SaaS through the development of web services . IBM detailed these concepts in 2001 in the Autonomic Computing Manifesto , which described advanced automation techniques such as self-monitoring, self-healing, self-configuring, and self-optimizing in the management of complex IT systems with heterogeneous storage, servers, applications, networks, security mechanisms, and other system elements that can be virtualized across an enterprise. Amazon played a key role in the development of cloud computing by modernizing their data centers after the dot-com bubble which, like most computer networks , were using as little as 10% of their capacity at any one time just to leave room for occasional spikes. Having found that the new cloud architecture resulted in significant internal efficiency improvements whereby, small, fast-moving "two-pizza teams" could add new features faster and easier, Amazon started providing access to their systems through Amazon Web Services on a utility computing basis in 2005 . [24] In 2007 , Google , IBM , and a number of universities embarked on a large scale cloud computing research project. [25] By mid-2008, Gartner saw an opportunity for cloud computing "to shape the relationship among consumers of IT services, those who use IT services and those who sell them", [26] and observed that "[o]rganisations are switching from company-owned hardware and software assets to per-use service-based models" so that the "projected shift to cloud computing ... will result in dramatic growth in IT products in some areas and in significant reductions in other areas." [27]
  • The term "cloud computing" is being loosely applied and defined differently, and it's creating a lot of confusion in the market, according to Gartner, Inc. Analysts say it is imperative to understand these different perspectives and set the proper expectations to obtain the anticipated benefits. Gartner defines cloud computing as a style of computing in which massively scalable IT-related capabilities are provided "as a service" using Internet technologies to multiple external customers. However, there have been different perceptions of what is included in cloud computing. "The term cloud computing has come to mean two very different things: a broader use that focuses on 'cloud,' and a more-focused use on system infrastructure and virtualization," said David Mitchell Smith, vice president and Gartner Fellow. "Mixing the discussion of 'cloud-enabling technologies' with 'cloud computing services' creates confusion." The two prevalent views of cloud computing are as follows: -The cloud is an idea that derives from the perspective of the Internet/Web/software as a service (SaaS). The focus is more on cloud than computing with the emphasis placed on access to services from elsewhere (that is, from the cloud). This cloud is a global-class phenomenon and a high-level concept that can refer to a range of services extending from system infrastructure (for example, compute services and storage services) through applications (for example, CRM) and business processes (for example, payroll services). Gartner's definition is along these lines, with the off-premises nature of cloud services being the point of reference, and applicability to intraenterprise use as a secondary effect. -The second popular interpretation is a use of technologies, including virtualization and automation, that focuses more on the computing than on the cloud aspect, with emphasis placed on the technologies that enable the creation and delivery of service-based capabilities. This perspective is an extension of traditional data center approaches and can be applied to entirely internal enterprise systems with no use of external off-premises capabilities provided by a third party. "Although these perspectives are different, there is a connection between them. Any provider of cloud computing services must have an environment that includes an infrastructure to support their delivery. Virtualization often is used to implement this underlying infrastructure to support delivery of the cloud computing services," Mr. Smith said. "Cloud system infrastructure services are a subset of cloud computing, but not the entire picture." Gartner recommends that users clearly separate the consideration of cloud computing and cloud computing services from the use of cloud computing-related concepts and technologies for the creation of internal systems. Both perspectives (services and technologies) are valuable and should be pursued; however, they are two separate but related initiatives. Gartner analysts will provide additional analysis on cloud computing during the upcoming Gartner Symposium/ITxpo 2008, taking place October 12-16 in Orlando, Florida. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. More than 6,000 senior business and IT strategists will gather for the insights, tools and solutions they need to ensure their IT initiatives are key contributors to and drivers of their enterprise's success. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. They rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency. Additional information is available at .
  • Peer-to-peer / volunteer computing ( BOINC , Skype ) Web applications ( Facebook , Twitter , YouTube ) Security as a service ( MessageLabs , Purewire , ScanSafe , Zscaler ) Software as a service ( Google Apps , Salesforce , SpringCM ) Software plus services ( Microsoft Online Services ) Storage [Distributed] Content distribution ( BitTorrent , Amazon CloudFront ) Synchronisation ( Live Mesh )
  • Avoid CapEx on hardware, software, and service Usually billed as a utility or subscription with little or no upfront or cancellation costs Shared infrastructure and cost Low management overhead Immediate access to a large range of apps Services covered by SLA


  • 1. An Overview of Cloud Computing Presented by: Nicholas Kottyan CEO, DataChambers, LLC 336-499-7220 [email_address] November 18, 2009 ARMA Presentation November 18, 2009
  • 2. Agenda
    • Objective
    • History of Cloud Computing
    • Definitions
    • Cloud Characteristics, Types and Deployment Models
    • Issues
    • Clouds vs. Traditional
    • Recap - Economics - Next Steps
    • Q & A
    November 18, 2009
  • 3. November 18, 2009 Objective
    • To provide a general overview of cloud computing including:
    • How could affect my future business
    • Is the cloud for me and my business
    • What are some of the issues I should consider
    • Why should this be important to me
  • 4. Origin of the term “Cloud Computing”
    • “ Comes from the early days of the Internet where we drew the network as a cloud… we didn’t care where the messages went… the cloud hid it from us” – Kevin Marks, Google
    • First cloud around networking (TCP/IP abstraction)
    • Second cloud around documents (WWW data abstraction)
    • The emerging cloud combines the infrastructure complexities of servers, applications, data, and heterogeneous platforms
    November 18, 2009
  • 5. Summarized History
    • 1960 - John McCarthy opined that "computation may someday be organized as a public utility"
    • Early 1990s – The term “cloud” comes into commercial use referring to large networks and the advancement of the Internet.
    • 1999 – is established, providing an “on demand” SaaS (Software as a Service).
    • 2001 – IBM details the SaaS concept in their “Autonomic Computing Manifesto”
    • 2005 – Amazon provides access to their excess capacity on a utility computing and storage basis
    • 2007 – Google, IBM, various Universities embark on a large scale cloud computing research project
    • 2008 – Gartner says cloud computing will “shape the relationship among consumers of IT services, those who use IT services and those who sell them”
    November 18, 2009
  • 6. Definition
    • Lots of confusion
    • Several different “loosely applied” definitions
    • a style of computing in which massively scalable IT-related capabilities are provided "as a service" using Internet technologies to multiple external customers
    November 18, 2009
  • 7. Definition Continued
    • an internal or external “cloud enabled” service offering
    • the provision of dynamically scalable and often virtualized resources as a service over the Internet.
    • a general term for anything that involves delivering hosted services over the Internet.
    November 18, 2009
  • 8.
    • Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. (NIST Definition, National Institute of Standards and Technology)
    • This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.
    Definition Continued November 18, 2009
  • 9. 5 Essential Cloud Characteristics
    • On-demand self-service
    • Broad network access (Internet)
    • Resource pooling
      • Location independence
    • Rapid elasticity
    • Measured service
    November 18, 2009
  • 10.
    • Cloud computing often leverages:
      • Massive and Rapid scalability
      • Homogeneity
      • Virtualization
      • Resilient computing
      • Low cost software
      • Geographic distribution, (many datacenters)
      • Service orientation
      • Advanced security technologies
    Additional Cloud Characteristics November 18, 2009
  • 11.
    • Private Cloud (a.k.a. Internal Cloud)
      • enterprise owned or leased
    • Community Cloud (a.k.a. External Cloud)
      • shared infrastructure for specific community
    • Public cloud (a.k.a. External Cloud)
      • Sold to the public, mega-scale infrastructure
    • Hybrid cloud
      • composition of two or more clouds
    Cloud Deployment Models November 18, 2009
  • 12.
    • Cloud Software as a Service (SaaS)
      • Use provider’s applications over a network
    • Cloud Platform as a Service (PaaS)
      • Deploy customer-created applications to a cloud
    • Cloud Infrastructure as a Service (IaaS)
      • Rent processing, storage, network capacity, and other fundamental computing resources
      • To be considered “cloud” services are deployed on top of cloud infrastructure that has the key characteristics
    Cloud Service Models November 18, 2009
  • 13. Issues with the Cloud
    • Security (number 1 concern)
    • Performance
    • Availability
    • Lack of Standards
    • Inability to Customize
    • Hard to Integrate with current in-house IT
    • Regulatory requirements
    • Note enough suppliers yet
    November 18, 2009
  • 14.
    • Clouds are massively complex systems that can be reduced to simple primitives that are replicated thousands of times
    • These complexities create many issues related to security as well as all aspects of Cloud computing
    • Clouds typically have a single security architecture but have many customers with different demands
    • Cloud security issues may drive and define how we adopt and deploy cloud computing solutions
    • Highly sensitive data is likely to be on private clouds where organizations have complete control over their security model
    Analyzing Cloud Security November 18, 2009
  • 15. More on Security
    • Trusting vendor’s security model
    • Where is the data stored and who is securing it
    • Inability to respond to audit requirements
    • Indirect administrator accountability
    • Loss of physical control
    • Data retention / backup standards
    • Redundancy / Disaster Recovery
    • Handling Compliance
      • State laws
      • International – EU Data Protection Directive
      • FTC Scrutiny
      • SAS 70 Audits
    November 18, 2009
  • 16.
    • Core objectives and principles that cloud computing must meet to be successful:
      • Security
      • Scalability
      • Availability
      • Performance
      • Cost-effective
      • Acquire resources on demand
      • Release resources when no longer needed
      • Pay for what you use
      • Leverage others’ core competencies
      • Turn fixed cost into variable cost
    Objectives of Cloud Computing November 18, 2009
  • 17. Cloud Based Service examples
    • Peer to Peer
      • BOINC, Skype
    • Web Apps
      • Facebook, Twitter, YouTube
    • Security as a Service
      • MessageLabs, Purewire, ScanSafe, Zscaler
    • Software plus services
      • Microsoft Online Services
    • Software as a Service
      • GoogleApps, Salesforce, SpringCM
    • Storage
      • Content Distribution
        • BitTorret, Amazon CloudFront
      • Sychronisation
        • LiveMesh
    November 18, 2009
  • 18. Clouds vs. Traditional Hosting
    • Three distinct characteristics that differentiate clouds from traditional hosting
      • It is sold on demand
        • Typically by the minute or the hour
      • It is elastic
        • A user can have as much or as little of a service as they want at any given time
      • The service is fully managed by the provider
        • The consumer needs nothing but a personal computer and Internet access
    November 18, 2009
  • 19. Cloud Economics November 18, 2009
    • Estimates vary widely on possible cost savings
      • “ If you move your data center to a cloud provider, it will cost a tenth of the cost.” – Brian Gammage, Gartner Fellow
    • Use of cloud applications can reduce costs from 50% to 90% - CTO of Washington D.C.
    • IT resource subscription pilot demonstrated a 28% cost savings - Alchemy Plus cloud (backing from Microsoft)
    • “ Using Cloud infrastructure saves 18% to 28% before considering that you no longer need to buy peak capacity” – George Reese, founder Valtira and enStratus
    • When implementing Cloud you must consider other costs which may not be apparent today.
  • 20. Recap
    • Clouds
      • Provide internet based services
      • Available on demand
      • And fully managed by the provider
      • There is no one “Cloud”. There are many models and architectures
    • Clouds let you
      • Avoid CapEx on hardware, software, and service
      • Share infrastructure and cost
      • Lower management overhead
      • Access a large range of apps
    • Many questions still remain!!!
    November 18, 2009
  • 21.
    • Questions?
    November 18, 2009 Thanks for the opportunity present this subject!! Nicholas L. Kottyan [email_address]