Cloud computing

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It deals with cloud computing and it's effect on economy.

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Cloud computing

  1. 1. CLOUDCOMPUTING AND ITS IMPACT ON ECONOMY !!
  2. 2. Flow Of Presentation• What is cloud computing• Deployment Models• Cloud Economics• Limitations and Security issues• Cloud In news• Pfizer Case Study• Conclusion
  3. 3. What Is Cloud Computing ?• Cloud computing is internet based computing where virtual shared servers provide infrastructure, platform, devices, and other resources and hosting to customers on a pay as you use basis.• All information that a digitized system has to offer is provided as a service in the cloud computing model.• Users can access these services without having a previous know how on managing the resources involved.• Customers do not own the physical infrastructure , rather they rent the usage from a third party provider.• They consume resources as a service and pay only for resources that they use.
  4. 4. For eg : One way to think of cloud computing is to consider your experience with email. Your email client, if it is Yahoo!, Gmail, Hotmail, and so on, takes care of housing all of the hardware and software necessary to support your personal e-mail account.
  5. 5. The cloud makes it possible for you to access yourinformation from anywhere at any time. While a traditional computer setup requires you to be in the same location as your data storage device, the cloud takes away that step.
  6. 6. Deployment Models Of Cloud
  7. 7. Cloud Economics• Cloud technology standardizes and pools IT resources and automates many of the maintenance tasks done manually today. Cloud architectures facilitate elastic consumption, self- service, and pay-as-you-go pricing.• Cloud also allows core IT infrastructure to be brought into large data centres that take advantage of significant economies of scale in two areas:• Supply-side savings. Large-scale data centres (DCs) lower costs per server.• Demand-side aggregation. Aggregating demand for computing overall variability, allowing server utilization rates to increase.
  8. 8. Supply-Side Economies of Scale• Cloud computing combines the best economic properties of mainframe and client/server computing. Cloud computing is not a return to the mainframe era but in fact offers users economies of scale and efficiency that exceed those of a mainframe, coupled with modularity and agility beyond what client/server technology offered, thus eliminating the trade-off.
  9. 9. • Infrastructure labour costs: While cloud computing significantly lowers labour costs at any scale by automating many repetitive management tasks, larger facilities are able to lower them further than smaller ones.• This allows IT employees to focus on higher value-add activities like building new capabilities and working through the long queue of user requests every IT department contends with.• Security and reliability: Often cited as a potential hurdle to public cloud adoption, increased need for security and reliability leads to economies of scale due to the largely fixed level of investment required to achieve operational security and reliability.• Large commercial cloud providers are often better able to bring deep expertise to bear on this problem than a typical corporate IT department, thus actually making cloud systems more secure and reliable.
  10. 10. Demand-Side Economies of Scale• Overall cost of IT determined not just by the cost of capacity, but by the degree to which the capacity is efficiently utilized. need to assess the impact of demand aggregation on costs of actually utilized resources (CPU, network, and storage).• Each application runs on its own physical server. Utilization of servers has traditionally been extremely low, around 5 to 10%.• The primary benefit of virtualization is that fewer servers are needed to carry the same number of workloads.• A key economic advantage of the cloud is its ability to address variability in resource utilization.. The larger the pool of resources, the smoother the aggregate demand profile, the higher the overall utilization rate, and the cheaper and more efficiently the IT organization can meet its end-user demands.
  11. 11. Overall impact• The combination of supply-side economies of scale in server capacity (amortizing costs across more servers), demand-side aggregation of workloads (reducing variability), and the multi- tenant application model (amortizing costs across multiple customers) leads to powerful economies of scale.
  12. 12. • Fig. shows the output for a workload that utilizes 10 % of a traditional server. The model indicates that a 100,000-server data centre has an 80% lower total cost of ownership (TCO) compared to a 1,000- server data centre.• What impact will the Cloud Economics we described have on the IT budget?• Cloud impacts infrastructure costs, costs of supporting and maintaining existing applications, and new application development costs . The supply-side and demand-side savings impact mostly the infrastructure portion, which comprises over half of spending
  13. 13. Elasticity is a game-changer !
  14. 14. How cloud computing can cut costs for your small business ? Smaller Lower Upfront Energy BillsInvestment Free Yourself Maximize Put Busy Worker Work onProductivity Autopilot
  15. 15. Limitations and Security IssuesAvailability Data PrivilegeOf Service Security Abuse Scaling Data UnpredictableResources Location Performance Lack Of Knowledge
  16. 16. Cloud In News• Over half of the NGOs plan to move IT into the cloud :• A survey by non-profit group TechSoup Global found that 53% of 10,500 respondents plan to move a "significant portion" of their IT to the cloud within three years. (NGOs) from 88 countries -- also found that 90% of respondents worldwide are using at least one cloud computing application. 47% of respondents said that cost-related changes and ease of setup would be the greatest motivators for moving their IT to the cloud. 79% saying that the greatest advantage of cloud is easier software or hardware administration. However, the non-profit group added that more education is needed to support and take full advantage of the benefits of cloud computing regarding costs, productivity and collaboration.
  17. 17. • India government to convert data centres into clouds• The Indian government has unveiled plans to convert its states data centre into privately run, pay-as-you-go clouds. To address issues typically faced by different departments at the state, such as long IT infrastructure procurement cycles, under utilisation of resources, need for dynamic scalability, appropriate disaster recovery of applications and data and for simplifying IT infrastructure provisioning and availability to line departments ... it would be required to leverage the benefits of cloud-enabled services in State Data Centres. IT companies like HP, IBM, Cisco and Dell" have been invited to tender for the projects.
  18. 18. Pfizer Case Study• Problem faced : used regimented approach to data integration using standard ETL tools. Ended up taking longer and costing than planned. Was not able to meet the customer’s demand.• Solution : Data Virtualization : Simple and flexible. It allowed rapid prototyping of solutions and hence ensured on time delivery of the product to the customers. Easy and user friendly interface. Integration of data requires only basic SQL knowledge. Learning the intricacies was a problem initially.
  19. 19. CONCLUSION• Our take :• We are experiencing a disruptive moment in the history of technology, with the expansion of the role of the internet and the advent of cloud-based computing.• Despite the proliferation of cloud services which can improve the functioning of large organizations, there has not been much enterprise adoption of the cloud. Cloud computing services are used by more then 80% of the users.• However awareness of the term is less then 40% with even lower level of comprehension. Even though the most popular cloud services are social networking, e-mail and online shopping. But people do not realize they are using it.• Even though the previously explained benefits cannot be ignored , questions like How reliable are such services? What about privacy? Dont I lose too much control? remain unanswered..
  20. 20. THANK YOU !!!

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