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Cloud Computing Business Analytics

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  • Cloud Orchestration Services is a best-of-breed approach for cloud services integration that provides clients with service level management, remote monitoring, reporting, auditing and data transparency
    Cloud Software as a Service (SaaS). The capability provided to the to use the provider’s applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such consumer is as a Web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings.
    Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider (e.g., java, python, .Net). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, or storage, but the consumer has control over the deployed applications and possibly application hosting environment configurations. Google App Engine, Microsoft Azure Services
    Cloud Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly select networking components (e.g., firewalls, load balancers).
  • Reserved Instances give you the option to make a low, one-time payment for each instance you want to reserve and in turn receive a significant discount on the hourly usage charge for that instance.
    Spot Instances allow customers to bid on unused Amazon EC2 capacity and run those instances for as long as their bid exceeds the current Spot Price. The Spot Price changes periodically based on supply and demand, and customers whose bids meet or exceed it gain access to the available Spot Instances.
  • Cc

    1. 1. Cloud Computing (Amzn EC2): Business Analytics
    2. 2. AGENDA • Overview • Cloud-computing paradigms • Costs using traditional hosts • Costs using Cloud Infrastructure • Cloud Adoption Strategy(Market) • Pros-Cloud Computing Option • Proposed Strategy • Q&A • Appendix
    3. 3. OVERVIEW o The future of business is collaboration, and the future of collaboration is in the cloud o Cloud computing technology is bringing sweeping changes to enterprise IT  Offers a new technological, operational, and business model approach  Radically increases scalability, elasticity  Dramatically reduces deployment and operational costs
    4. 4. CLOUD COMPUTING
    5. 5. COSTS USING TRADITIONAL HOSTS Base Annual Depreciation Cost $30,000 Overhead(30 hosts) $6,000 Total Annual Fixed costs $36,000 Year 1 Year2 Year 3 90,000 60,000 30,000 FixedCosts($) Total Fixed Costs Write down value
    6. 6. COSTS USING CLOUD INFRASTRUCTURE • Forecasted using High-Memory Amazon EC2 Instances at price of 0.72 per hour • Equivalent to 3 core servers hosted traditionally. Additional monitoring charges might be applicable. • Peak load forecast=(0.72*24*30)*(30/3 instances for 30K users) • Current user base approximated at 30K,22K,15K etc reducing sequentially.
    7. 7. COSTS USING CLOUD INFRASTRUCTURE Costs calculated using per hour costs of $0.72 for an Amazon EC2 instance, 24*7 usage Month 1 Month2 Month3 Month4 Month5 5,000 4,000 3,000 2,000 1,000 AmazoncloudCosts ($) Month 1 Month 2 Month 3 Month 4 Month 5 Total Concurrent Users 30,000 23,000 15,000 11,250 7,500 Floating Costs $5,184 $3,888 $2,592 $1,944 $1,296 $14,904
    8. 8. CLOUD ADOPTION STRATEGY Application category • Analysis and reporting • Business management • Business operations • Engineering • Employee productivity Organizational Change Management • Early Adopter • Fast follower • Cloud skeptic
    9. 9. PROS - CLOUD COMPUTING OPTION • Reduced upfront CAPEX costs. • Significant reduction in overhead costs , cycle time for Hardware procurement and eventual build of traditional hosts. • Auto Scaling for unprecedented usage increase/decrease • With a 99.95% availability, the Amazon EC2 option would be a reliable option to reduce costs • With Instances in US, Europe and APAC having variable pricing the user load can be allocated to specific regions • Even with 2 major titles being released per year the total cloud costs would not exceed $30K. Significant saving compared to a traditional host.
    10. 10. PROPOSED STRATEGY • A viable option is to use the Reserved and Spot Instances considering that some new titles will be released annually. The remaining portion can be done on a pay-as-you-go model .  Note: Reserved instances are 1/3rd the price for normal pay-as-you- go models. Savings still more than traditional hosts with annual commitments. • Cloud-bursting approach to divide the work so that part of the task could be done in the cloud if there are less number of titles released every year.
    11. 11. Q&A • Roundtable Q&A
    12. 12. APPENDIX o New York Times(Fortune 500 who used Amazon Cloud) • Used EC2 and S3 to convert 15 million scanned news articles to PDF (4TB data) • Took 100 Linux computers 24 hours (could have taken months on NYT computers • “It was cheap experimentation, and the learning curve isn't steep.” – Derrick Gottfrid, Nasdaq

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