Cloud Computing Introduction                      Part 2
Understanding Cloud Computing
What is Virtualization?Virtualization, in its broadest sense, is any effort where aphysical component is abstracted to cre...
Virtualization Architecture in the CloudVirtualization enables 4 out of 5 of the essential characteristics ofCloud Computi...
Service Models•   Infrastructure as a Service•   Platform as a Service•   Software as a Service
Challenges to SaaSWhile SaaS can be beneficial, they have a few challenges, andthese are especially important for customer...
10 Laws of Behavioral Cloudonomics                              Law 6: Desiring the    Law 1: Risk and loss      status qu...
SaaS—An Application Software as a Service extensively utilizes concepts from: • Service-Oriented   Architecture • Web Serv...
Software as a Service (SaaS)                A software application is offered as a                 service via an Internet...
Virtualization and the CloudConcerns from a business perspective:•   License Management•   Service Levels•   Network Manag...
SummarySoftware as a Service (SaaS) is one possible and rapidlygrowing solution for meeting a business’s application needs.
Benefits of Cloud Computing• Speed• Cost Efficiency• Control• Capacity• Environmental Factors• Equality• Agility and Respo...
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Introduction to Cloud Computing part 2


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The Art of Service created a short series of 4 presentations to introduce the various cloud computing concepts. this is part 2 covering SaaS and Virtualization.

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  • Hi and Welcome to this program from The Art of Service\n\nWelcome to the first program in the Cloud Computing Certification series. This course will help you to understand the different components of cloud computing and how the services that utilize “the cloud” could be managed effectively. \n
  • A useful analogy to use in understanding cloud computing is the utility service for electricity. A strong comparison was first introduced by Douglas Parkhill in 1966 which mentions many of the characteristics of modern-day cloud computing \n\nAt the start of the industrial Revolution, most manufacturing companies were creating their own energy. When power plants came, however, a ‘Grid’ was formed that delivered electricity to houses and plants. This gird interconnected the different power plants to each other and provided power redundancy. Residential and businesses were charged for what they used. Initially there was a lot of resistance. Some arguments were that it was:\n Too expensive\n Not secure enough\n Not stable / available enough\n\nBut nowadays everybody accepts the electricity delivery method as normal... The idea is that storage and processing power will be delivered in a similar fashion. There will be large organisations creating and managing the IT service where everybody else uses the output from the Internet, a “grid” of networks. IT connectivity becomes a utility, just like power.\n\nOnly when you consider disaster situations and how to minimise the damage done or how to recover quickly from them you will consider electricity as something you need to generate and manage yourself. (via diesel generators or other solutions) as you can not assume that electricity is a given in a disaster situation. \n\nMany references discuss the cloud model as a form of utility computing, referring by analogy to the electric power grid. Generating assets move in and out of the grid seamlessly and all the user knows is that the light goes on when the switch is flipped and the bill comes every month for the kilowatts consumed.\n
  • Cloud computing uses a high degree of virtualization to support the applications they are hosting. Virtualization is the primary ingredient for providing the elasticity which is essential in cloud solutions. \n\nREAD SLIDE\n\nThere are two reasons for employing virtualization:\nBreaking up the physical, such as partitioning a hard drive into multiple volumes\nCombining resources, such as creating a single virtual hard drive out of several different physical drives.\n\nThe truth is that almost anything can be virtualized in a computing environment, including access, applications, CPUs, hard drives, data, clouds, datacenters, even virtual entities. The primary benefits of virtualization are:\nCentralized Administration – allows multiple physical components to be managed as a single component, making administration easier, effective, and efficient across large data centers. \nLoad Balancing – a technique for directing service requests to resources as a way to optimize performance, utilization, and workloads, as well as provide fault tolerance. \nCost optimization – allows more activity to be performed on fewer physical assets: in dedicated environments, utilization of 30% on five servers was considered normal, but virtualization will create a single logical drive running greater than 60% on two servers, reducing the need and cost for three servers\n
  • READ SLIDE\n\nAs seen in the diagram, the architecture for virtualization is layered. The diagram shows an instance of virtualization for a single physical computer allowing multiple virtual computers to run. Starting with the shared hardware, an operating system is installed. This layer does not need exist and when it does not, the architecture is considered bare-metal, because the Virtual Machine Monitor communicates directly with the system hardware. \n\nThe Virtual Machine Monitor (VMM) is sometimes referred to as the hypervisor. The hypervisor is software what allows individual virtual machines (VMs) to run using the same hardware. Each virtual machine will run its own operating system, applications, and services to make it seem like a standalone machine. \n\nThe hypervisor is a powerful tool: install it on multiple computers (shared hardware) and you have the resources for more VMs to exist. Change the hardware layer to storage devices, servers, or network components and you can create a virtualized environment for the entire infrastructure. \n
  • There are three service models defined by NIST:\nInfrastructure as a Service – the customer is provided the processing, storage, network, and fundamental resources capable to enable the deployment and operation of arbitrary software, including operating systems and applications. The underlying infrastructure is managed and controlled by the service provider, while the customer has control of everything running on top of the infrastructure.\nPlatform as a Service – the customer is provided the capabilities to deploy customer-created or acquired applications into the cloud infrastructure using provider-supported programming languages, libraries, services, and tools. The underlying infrastructure is managed and controlled by the service provider, but the customer has control over the deployed applications and limited control over application-hosting configurations.\nSoftware as a Service – the customer is provided the use of the provider’s application running on the cloud infrastructure. The application is accessible through a thin client, such as a web browser, or a program interface. The underlying infrastructure and applications are managed and controlled by the provider. The customer may have limited control over user-specific application configuration settings. \n\n(Diagram from Security Guidance for Critical Areas of Focus in Cloud computing ver 2.1, Cloud Security Alliance: December 2009)\n
  • In many situations, a company may find themselves using cloud solutions for a part of their IT solutions or may decide to completely adopt a cloud solution on a private basis. These are a few of the major concerns for customers of a SaaS solution.\n\nAccounting/charging usage: what is being metered can greatly impact the cost and accounting of a service. For private clouds, the costs associated with licenses is fixed but the charge to the user is based on a subscription formula or usage model. The meter will determine the ability of the provider to recoup fixed and variable costs associated with maintaining the environment. For businesses, the usage charge may require a level of detail to adequately identify the departments and individuals using the could. \n\nRegulations/compliance: both the business using the cloud and the service provider supporting the cloud may be required to comply to some regulatory entity. For the business, they may need assurance that the use of the cloud application will not adversely impact their compliance. For the service provider, their size and location may subject them to the laws and policies of several geographical-based entities. As a result, they may need to comply to several regulations, some of which may seem contradictory. \n\nData Privacy/security: in order to ensure data privacy, a service provider must employ additional security methods, such as private encryption, VLANs, firewalls, and secure local storage. A business that is concerned with privacy of data should research potential service providers and determine what security mechanisms are in place.\n\nMonitoring: monitoring of the infrastructure is the responsibility of the service provider and will typically be vendor-specific. Because of this, the service provider may not be able to provide the level of monitoring detail the business requires or they will resist using any monitoring system the business itself supports. \n\nLarge file transfers: While customers benefit from being able to access the cloud from any location, this also means that WAN connections are in use. While this is normally not a problem, it is when vary large data sets are being transferred, such as replication or staging of information. These types of transfers are typically accommodated better using a LAN connection to local resources. Despite this, cloud solutions are generally more reliable and faster; in private clouds, the transfer of large data sets should be known and planned.\n\nReliability/reputation: the quality of the cloud is shared by everyone and, therefore, any disruption to the service is shared by everyone. Generally, cloud solutions are more reliable. \n\nTrust relationships: In security, different trust relationships are handled differently in the application and require the application to be structured differently. In many situations, a business adopting a cloud will have to modify their operations to adjust to how the application is structured to handle these relationships. This is especially important when the cloud is interfacing with another system or process. \n\nService Level Agreements: service providers standardize their SLAs based on attracting the majority of customers; therefore, customized SLAs are difficult to obtain and enforce. In may be difficult to identify the proper fit between customer and supplier. \n\nSoftware stack: service providers will standardize everything, including their software stack. The more standardization that is in place, the harder it will be to customize the application in the future.\n\nStorage: how storage is handled within an enterprise on-premise infrastructure and a cloud provider’s public infrastructure will likely be drastically different. If data storage is a concern, the customer must research how storage is handled and adjust their own operations to resolve any issues. \n\nVendor Lock-in: this is especially important for businesses that are increasing their use of a cloud, particularly when moving from SaaS to PaaS to IaaS. A SaaS application may not be transferable to a higher layer of the cloud, especially if different vendors are used. PaaS solutions have the highest level of vendor lock-in.\n \n
  • Any person with experience in IT service management understands the importance and challenges of organizational change. Cloud computing doesn’t make things easier in this respect. Joe Weinman, who wrote the original 10 Laws of Cloudonomics, attempted to address the issue of organizational change in June 2010 with the 10 Laws of Behavioral Cloudonomics:\n\nLaw #1: People are risk averse and loss averse \n\nLaw #2: People prefer a flat-rate\n\nLaw #3: People have an inherent need to control their environment and remain anonymous\n\nLaw #4: People fear change\n\nLaw #5: People value what they own over what they are given \n\nLaw #6: People prefer the status quo and invest accordingly\n\nLaw #7: People prefer instant gratification and discount future risk\n\nLaw #8: People prefer free things\n\nLaw #9: People need status\n\nLaw #10: People are incapacitated by choice\n
  • Software as a Service is an application located within a cloud environment. While any application sits within a cloud environment, SaaS are specifically designed to leverage the virtualization used within the cloud, as well as design concepts associated to Service-Oriented Architecture. SaaS is typically constructed as a Web application but not all Web applications are SaaS.\n\nSOA is a method for organizing and utilizing basic functionality and capabilities delivered by interchangeable services. The power of an SOA design is the ability to make slight adjustments to the construction or sequence of services to create new application features without impacting the integrity of the application. \n\nAlong with SOA is the use of Web Services, a catalog of capabilities in the form of services that enable communication between the various components of a Web application. \n
  • Software as a Service (SaaS) is a software deployment opportunity where an application is hosted into the Internet environment. Once there, the application is available to users throughout the Internet without any need for the user to install or run the application on their own computer. As a result, the user does not have to be concerned with maintaining the software, its operations, or support. SaaS is a pay as you use service, meaning that initial purchase of software and its license is not required, rather the charge is a continuous charge, usually monthly, to use the application without any contract. \n \nFor software vendors, SaaS is an attractive solution because of the promise of stronger protection of its online intellectual property and an ongoing revenue stream. They can host the application on its own web server or allow it to be handled by a third-party application service provider (ASP). As a result, the term “software-as-a-service” is sometimes diluted as it has two meanings. It can speak to the application itself and the environment hosting the environment. The second situation is also referred to as a platform and is sometimes interchanged with platform-as-a-service. To combat this problem, some have started to use the terms “SaaS” and “SaaS platform” to distinguish between the two situations. \n\nRemember add-on development platforms from the last slide. is a SaaS application and is the PaaS. As soon as a developer creates an add-on for SaleForce, they could potentially repackage the entire application and market it as a different application with SaleForce as its core “engine”. These enhanced and repackaged SaleForce-based SaaS applications are typically found in a market place run by Salesforce called AppExchange. For NetSuite, the marketplace is called This is the “SaaS platform” previously mentioned.\n\nFor most end-users, the mechanics “behind the cloud” is not important as long as they can access and use the application effectively. For business management, the mechanics may provide a list of concerns and assurances about the product being used. It is important for the business to understand the actual scope of the service provider. Are they a true SaaS provider who provides the entire application and infrastructure required to support the business or are they a “software vendor” offering an application on another service provider’s infrastructure? The answer will influence many of the terms within the service level agreement. \n\nThe answer is also important for determining the “proper” interface for the business. For the end-user, accessing the application from the user interface is all that is required. But for a business, some other processes may require a “back office” interface to allow other systems used by the business to communicate with the SaaS application. Like other service models, this interface is defined by the Cloud API. However, in a situation with a software vendor using another provider’s infrastructure, is the Cloud API provided by the software vendor, the service provider, or both. \n
  • In a cloud environment, the management and control of the application and its underlying infrastructure is the responsibility of the service provider and not the business. As a result, the customers are shielded from the actual requirements for managing the virtualized environment hosting the application. Despite the level of transparency possible, a responsible business manager will attempt to understand some basic issues. Service providers will should highlight these concerns in any agreement.\n\nLicense Management – applications have licenses which associate fees to physical servers, not virtual servers. While the subscription or usage charge for the application will usually incorporate the cost of the license, the constraints of the licenses may cause some problems in using and managing the application in a virtual environment. If looking to host an application in a cloud environment, understanding and addressing these constraints with the service provider is appropriate. \n\nService Levels – virtualization actually complicates and simplifies the infrastructure simultaneously, depending on your perspective. The complication comes from the complexity of supporting many more virtual machines than physical machines. The simplification is the result of managing several devices are managing the hypervisor. When it comes to service levels, it is better to side with managing a complex environment; a business should ensure that service levels are in place for the infrastructure (virtualized environment) and the application. \n\nNetwork Management – The skills, knowledge, and tools required to run or utilize a virtualized network is much greater than a physical network. Businesses looking to create applications for a cl\noud environment or develop their own cloud should understand how the application and the virtualized environment will interact, including how the network will be monitored and managed. The hypervisor can still limited in some functions of datacenter management therefore, there are numerous products for managing the physical and virtual components of a network. \n\nWorkload Administration – load balancing and other workload administration activities are based on policies that are typically configurable. How the policies are set will determine how resources are provisioned and the circumstances for provisioning. Management should approve of these policies.\n\nSecurity – Security will always be an issue in the current computing world. Understanding the strength of security and how it the infrastructure and application are protected should be understood.\n\nCapacity planning – This is particularly important for business supporting their own cloud environments: planning and provisioning hardware resources is a critical component of ensuring that the application can grow and be better utilized. \n
  • READ SLIDE\n\nThe solution is not right in every situation nor should it be taken on without serious planning. Done effectively, SaaS can provide an extensive value to the business processes through its reliability, availability, and administrative ease at a low cost.\n
  • Some of the major reasons why organizations would choose to migrate to the cloud include:\n\nSaving money;\nBudgets used more effectively;\nOptimized hardware resources and assets;\nSaving time;\nScalability; and\nReduced number of internal IT problems.\n\n\nSpeed\n \nTime and energy is often spent on defining the right infrastructure, hardware, and software in order to deliver the services required. Cloud Computing delivers faster application development speed, allowing resources to be shared among different people. \n \nCost-Efficiency\n \nThe goal of Cloud Computing is to make the cost of resources less expensive than what you can provide for and manage yourself. Cloud Computing eliminates the set-up and maintenance costs of an application delivery network, allowing for greater flexibility and scaling. Organizations utilizing Cloud Computing do not bear the costs of idle hours and therefore do not waste their IT resources, including both infrastructure components such as hardware, software, power and space and people resources that manage and secure the systems. \n \nControl\n \nWhile some may argue that Cloud Computing takes away an element of control, the control that is gained must also be recognized. With your data in the cloud, it can be accessed from anywhere. An individual does not need to be in the office to access files, but can work with them from any mobile device such as a laptop, iPhone or BlackBerry. Cloud Computing allows control of whenever and wherever business occurs.\n \nCapacity\n \nCurrent supercomputers handle tens of trillions of computations per second. Cloud Computing aims to apply such power to business services, allowing computing capacity to rise dramatically. The further benefit here is that it can be tapped into through an Internet connection, rather than being provided by local infrastructure. \n \nEnvironmental Factors\n \nServers can be shared or virtualized for operating systems and applications in the cloud, resulting in fewer servers. Fewer servers then mean less required space and therefore less power. In a climate that offers ambient or natural cooling, Cloud Computing minimizes energy usage.\n \nEquality\n \nThe capabilities of Cloud Computing mean that small businesses can benefit in the same way as large corporations. Without needing to fund and take the time to build their own infrastructures, Cloud Computing allows smaller companies to tap into the infrastructure of larger corporate giants. \n \nAgility and Responsiveness\n \nOne of the most pressing issues facing many IT service providers stems from the time, effort, risks and costs associated with managing large changes to their services and architecture. Whether as a result of complex interdependency in IT services, lack of development and test environments, a vendor lock-in or requirement for uninterrupted service, a lack of agility and responsiveness to handle business change is seen as one of the primary reasons to investigate Cloud Computing platforms for many organizations. The promise of being able to provision and access significant resources on demand that was previously (financially) impossible is highly alluring to many smaller organizations when compared with the traditional in-sourced or out-sourced offerings.\n \n
  • Well done again for completing this program, we wish you the best of luck for your next program, and every success in your furture Cloud Computing career!\n
  • Introduction to Cloud Computing part 2

    1. 1. Cloud Computing Introduction Part 2
    2. 2. Understanding Cloud Computing
    3. 3. What is Virtualization?Virtualization, in its broadest sense, is any effort where aphysical component is abstracted to create a virtualrepresentation of the physical.
    4. 4. Virtualization Architecture in the CloudVirtualization enables 4 out of 5 of the essential characteristics ofCloud Computing:• On-demand self service• Resource pooling• Rapid elasticity• Measured service
    5. 5. Service Models• Infrastructure as a Service• Platform as a Service• Software as a Service
    6. 6. Challenges to SaaSWhile SaaS can be beneficial, they have a few challenges, andthese are especially important for customers looking to createprivate cloud solutions.• Accounting/charging usage • Reliability/reputation• Regulations/compliance • Trust relationships• Data Privacy/security • Service level agreements• Monitoring • Software Stack• Large file transfers • Storage • Vendor lock-in
    7. 7. 10 Laws of Behavioral Cloudonomics Law 6: Desiring the Law 1: Risk and loss status quo aversion Law 7: Desire instant Law2: Flat-rate bias gratification Law 3: Need for control Law 8: Everything is and anonymity better when its free Law4: People fear Law 9: Pride of change ownership Law 5: Value of Law 10: Incapacitated ownership over gifts by choice
    8. 8. SaaS—An Application Software as a Service extensively utilizes concepts from: • Service-Oriented Architecture • Web Service Design
    9. 9. Software as a Service (SaaS) A software application is offered as a service via an Internet connection. Infrastructure Storage Application Platform Functionality Application User Interface CLOUD API CLOUD API
    10. 10. Virtualization and the CloudConcerns from a business perspective:• License Management• Service Levels• Network Management• Workload Administration• Security• Capacity Planning
    11. 11. SummarySoftware as a Service (SaaS) is one possible and rapidlygrowing solution for meeting a business’s application needs.
    12. 12. Benefits of Cloud Computing• Speed• Cost Efficiency• Control• Capacity• Environmental Factors• Equality• Agility and Responsiveness
    13. 13. Thank you