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Management Information System
Tropic: Assignment on Cloud Computing
Md Mustafizur Rahman
Departmentof Business Administration
Departmentof Business Administration
Northern University Bangladesh
Submission Date: 18-08-2015
Sl No Name ID
01 S.M. Al-Shahriar BBA 120304790
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Table of content
Sl Name of Content Page No
01 Title fly 1
02 Title Page 2
03 Table of content 3
04 Introduction 4-5
05 Topic definition 6-8
06 Issues/Consideration 9-13
07 Potential impact 14-16
08 Conclusion 17
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Cloud computing is a model for enabling ubiquitous network access to a shared pool of
configurable computing resources. Cloud Computing, the long-held dream of computing as a
utility, has the potential to transform a large part of the IT industry, making software even more
attractive as a service and shaping the way IT hardware is designed and purchased. Developers
with innovative ideas for new Internet services no longer require the large capital outlays in
hardware to deploy their service or the human expense to operate it. They need not be concerned
about over- provisioning for a service whose popularity does not meet their predictions, thus
wasting costly resources, or under- provisioning for one that becomes wildly popular, thus
missing potential customers and revenue. Moreover, companies with large batch-oriented tasks
can get results as quickly as their programs can scale, since using 1000 servers for one hour costs
no more than using one server for 1000 hours. This elasticity of resources, without paying a
premium for large scale, is unprecedented in the history of IT.
Cloud computing and storage solutions provide users and enterprises with various capabilities to
store and process their data in third-party data centers. It relies on sharing of resources to achieve
coherence and economies of scale, similar to a utility (like the electricity grid) over a network. At
the foundation of cloud computing is the broader concept of converged infrastructure and shared
Cloud computing, or in simpler shorthand just "the cloud", also focuses on maximizing the
effectiveness of the shared resources. Cloud resources are usually not only shared by multiple
users but are also dynamically reallocated per demand. This can work for allocating resources to
users. For example, a cloud computer facility that serves European users during European
business hours with a specific application (e.g., email) may reallocate the same resources to
serve North American users during North America's business hours with a different application
(e.g., a web server). This approach should maximize the use of computing power thus reducing
environmental damage as well since less power, air conditioning, rack space, etc. are required for
a variety of functions. With cloud computing, multiple users can access a single server to retrieve
and update their data without purchasing licenses for different applications.
The term "moving to cloud" also refers to an organization moving away from a traditional
CAPEX model (buy the dedicated hardware and depreciate it over a period of time) to the OPEX
model (use a shared cloud infrastructure and pay as one uses it).
Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs,
and focus on projects that differentiate their businesses instead of on infrastructure. Proponents
also claim that cloud computing allows enterprises to get their applications up and running faster,
with improved manageability and less maintenance, and enables IT to more rapidly adjust
resources to meet fluctuating and unpredictable business demand. Cloud providers typically use
a "pay as you go" model. This can lead to unexpectedly high charges if administrators do not
adapt to the cloud pricing model.
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The present availability of high-capacity networks, low-cost computers and storage devices as
well as the widespread adoption of hardware virtualization, service-oriented architecture, and
autonomic and utility computing have led to a growth in cloud computing. Companies can scale
up as computing needs increase and then scale down again as demands decrease.
Cloud vendors are experiencing growth rates of 50% per annum
WHO'S WHO IN CLOUD COMPUTING
Some of the companies researching cloud computing are big names in the computer industry.
Microsoft, IBM and Google are investing millions of dollars into research. Some people think
Apple might investigate the possibility of producing interface hardware for cloud computing
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The interesting thing about Cloud Computing is that we’ve redeﬁned Cloud Computing to
include everything that we already do.... I don’t understand what we would do differently in the
light of Cloud Computing other than change the wording of some of our ads.
Larry Ellison, quoted in the Wall Street Journal, September 26, 2008
These remarks are echoed more mildly by Hewlett-Packard’s Vice President of European
Software Sales: A lot of people are jumping on the [cloud] bandwagon, but I have not heard two
people say the same thing about it. There are multiple deﬁnitions out there of “the cloud.”
Andy Isherwood, quoted in ZDnet News, December 11, 2008
Richard Stallman, known for his advocacy of “free software”, thinks Cloud Computing is a trap
for users—if applications and data are managed “in the cloud”, users might become dependent
on proprietary systems whose costs will escalate or whose terms of service might be changed
unilaterally and adversely: It’s stupidity. It’s worse than stupidity: it’s a marketing hype
campaign. Somebody is saying this is inevitable — and whenever you hear somebody saying
that, it’s very likely to be a set of businesses campaigning to make it true.
Richard Stallman, quoted in The Guardian, September 29, 2008
I don’t need a hard disk in my computer if I can get to the server faster… carrying around these
non- connected computers is byzantine by comparison.
Steve Jobs, 1997
Moving to the cloud. Running in the cloud. Stored in the cloud. Accessed from the cloud: these
days is seems like everything is happening “in the cloud”. But what exactly is this nebulous
The short answer is that it's somewhere at the other end of your internet connection – a place
where you can access apps and services, and where your data can be stored securely. The cloud
is a big deal for three reasons:
*It doesn't need any effort on your part to maintain or manage it.
*It's effectively infinite in size, so you don't need to worry about it running out of capacity.
*You can access cloud-based applications and services from anywhere – all you need is a device
with an Internet connection.
Cloud computing is a topic that many find confusing. It isn’t, though, as confusing as it sounds.
In fact, most of those who claim not to understand the subject are part of the majority that use it
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In basic terms, cloud computing is the phrase used to describe different scenarios in which
computing resource is delivered as a service over a network connection (usually, this is the
internet). Cloud computing is therefore a type of computing that relies on sharing a pool of
physical and/or virtual resources, rather than deploying local or personal hardware and software.
It is somewhat synonymous with the term ‘utility computing’ as users are able to tap into a
supply of computing resource rather than manage the equipment needed to generate it
themselves; much in the same way as a consumer tapping into the national electricity supply,
instead of running their own generator.
Cloud computing is defined as a type of computing that relies onsharing computing resources
rather than having local servers or personal devices to handle applications. Cloud computing is
comparable to grid computing, a type of computing where unused processing cycles of all
computers in a network are harnesses to solve problems too intensive for any stand-alone
In cloud computing, the word cloud (also phrased as "the cloud") is used as a metaphor for "the
Internet," so the phrase cloud computing means "a type of Internet-based computing," where
different services — such as servers, storage and applications —are delivered to an
organization's computers and devices through the Internet.
Cloud Computing refers to both the applications delivered as services over the Internet and the
hardware and systems software in the data centers that provide those services. The services
themselves have long been referred to as Software as a Service (SaaS), so we use that term. The
datacenter hardware and software is what we will call a Cloud.
In the simplest terms, cloud computing means storing and accessing data and programs over the
Internet instead of your computer's hard drive. The cloud is just a metaphor for the Internet. It
goes back to the days of flowcharts and presentations that would represent the gigantic server-
farm infrastructure of the Internet as nothing but a puffy, white cumulonimbus cloud, accepting
connections and doling out information as it floats.
Cloud computing is a general term for anything that involves delivering hosted services over the
Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service
(IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). The name cloud was
inspired by the symbol that's often used to represent the Internet in flowcharts and diagrams.
What cloud computing is not about is your hard drive. When you store data on or run programs
from the hard drive, that's called local storage and computing. Everything you need is physically
close to you, which means accessing your data is fast and easy, for that one computer, or others
on the local network. Working off your hard drive is how the computer industry functioned for
decades; some would argue it's still superior to cloud computing, for reasons I'll explain shortly.
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The cloud is also not about having a dedicated network attached storage (NAS) hardware or
server in residence. Storing data on a home or office network does not count as utilizing the
cloud. (However, some NAS will let you remotely access things over the Internet, and there's at
least one NAS named "My Cloud," just to keep things confusing.)
For it to be considered "cloud computing," you need to access your data or your programs over
the Internet, or at the very least, have that data synchronized with other information over the
Web. In a big business, you may know all there is to know about what's on the other side of the
connection; as an individual user, you may never have any idea what kind of massive data-
processing is happening on the other end. The end result is the same: with an online connection,
cloud computing can be done anywhere, anytime.
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History of cloud computing
Origin of the term
The origin of the term cloud computing is unclear. The expression cloud is commonly used in
science to describe a large agglomeration of objects that visually appear from a distance as a
cloud and describes any set of things whose details are not inspected further in a given context.
Another explanation is that the old programs to draw network schematics surrounded the icons
for servers with a circle, and a cluster of servers in a network diagram had several overlapping
circles, which resembled a cloud.
In analogy to above usage the word cloud was used as a metaphor for the Internet and a
standardized cloud-like shape was used to denote a network on telephony schematics and later to
depict the Internet in computer network diagrams. With this simplification, the implication is that
the specifics of how the end points of a network are connected are not relevant for the purposes
of understanding the diagram. The cloud symbol was used to represent the Internet as early as
1994, in which servers were then shown connected to, but external to, the cloud.
References to cloud computing in its modern sense appeared as early as 1996, with the earliest
known mention in a Compaq internal document.
The popularization of the term can be traced to 2006 when Amazon.com introduced the Elastic
During the mid-1970s, time-sharing was popularly known as RJE (Remote Job Entry); this
terminology was mostly associated with large vendors such as IBM and DEC. IBM developed
the VM Operating System (first released in 1972) to provide time-sharing services [via virtual
In the 1990s, telecommunications companies, who previously offered primarily dedicated point-
to-point data circuits, began offering virtual private network (VPN) services with comparable
quality of service, but at a lower cost. By switching traffic as they saw fit to balance server use,
they could use overall network bandwidth more effectively. They began to use the cloud symbol
to denote the demarcation point between what the provider was responsible for and what users
were responsible for. Cloud computing extends this boundary to cover all servers as well as the
As computers became more prevalent, scientists and technologists explored ways to make large-
scale computing power available to more users through time-sharing. They experimented with
algorithms to optimize the infrastructure, platform, and applications to prioritize CPUs and
increase efficiency for end users.
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The New Millenium: 2000s
Since 2000 cloud computing has come into existence. In early 2008, NASA's Open Nebula,
enhanced in the RESERVOIR European Commission-funded project, became the first open-
source software for deploying private and hybrid clouds, and for the federation of clouds. In the
same year, efforts were focused on providing quality of service guarantees (as required by real-
time interactive applications) to cloud-based infrastructures, in the framework of the IRMOS
European Commission-funded project, resulting in a real-time cloud environment. 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" and observed that "organizations
are switching from company-owned hardware and software assets to per-use service-based
models" so that the "projected shift to computing ... will result in dramatic growth in IT products
in some areas and significant reductions in other areas."
Microsoft Azure became available in late 2008.
In July 2010, Rackspace Hosting and NASA jointly launched an open-source cloud-software
initiative known as Open Stack. The Open Stack project intended to help organizations offer
cloud-computing services running on standard hardware. The early code came from NASA's
Nebula platform as well as from Rackspace's Cloud Files platform.
On March 1, 2011, IBM announced the IBM Smart Cloud framework to support Smarter Planet.
Among the various components of the Smarter Computing foundation, cloud computing is a
On June 7, 2012, Oracle announced the Oracle Cloud. While aspects of the Oracle Cloud are still
in development, this cloud offering is posed to be the first to provide users with access to an
integrated set of IT solutions, including the Applications (SaaS), Platform (PaaS), and
Infrastructure (IaaS) layers.
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Cloud Computing Architecture
When talking about a cloud computing system, it's helpful to divide it into two sections: the front
end and the back end. They connect to each other through a network, usually the Internet. The
front end is the side the computer user, or client, sees. The back end is the "cloud" section of the
The front end includes the client's computer (or computer network) and the application required
to access the cloud computing system. Not all cloud computing systems have the same user
interface. Services like Web-based e-mail programs leverage existing Web browsers like Internet
Explorer or Firefox. Other systems have unique applications that provide network access to
On the back end of the system are the various computers, servers and data storage systems that
create the "cloud" of computing services. In theory, a cloud computing system could include
practically any computer program you can imagine, from data processing to video games.
Usually, each application will have its own dedicated server.
A central server administers the system, monitoring traffic and client demands to ensure
everything runs smoothly. It follows a set of rules called protocols and uses a special kind of
software called middleware. Middleware allows networked computers to communicate with each
other. Most of the time, servers don't run at full capacity. That means there's unused processing
power going to waste. It's possible to fool a physical server into thinking it's actually multiple
servers, each running with its own independent operating system. The technique is called server
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virtualization. By maximizing the output of individual servers, server virtualization reduces the
need for more physical machines.
If a cloud computing company has a lot of clients, there's likely to be a high demand for a lot of
storage space. Some companies require hundreds of digital storage devices. Cloud computing
systems need at least twice the number of storage devices it requires to keep all its clients'
information stored. That's because these devices, like all computers, occasionally break down. A
cloud computing system must make a copy of all its clients' information and store it on other
devices. The copies enable the central server to access backup machines to retrieve data that
otherwise would be unreachable. Making copies of data as a backup is called redundancy.
Cloud Computing Applications
The applications of cloud computing are practically limitless. With the right middleware, a cloud
computing system could execute all the programs a normal computer could run. Potentially,
everything from generic word processing software to customized computer programs designed
for a specific company could work on a cloud computing system.
Why would anyone want to rely on another computer system to run programs and store data?
Here are just a few reasons:
Clients would be able to access their applications and data from anywhere at any time.
They could access the cloud computing system using any computer linked to the Internet.
Data wouldn't be confined to a hard drive on one user's computer or even a corporation's
It could bring hardware costs down. Cloud computing systems would reduce the need for
advanced hardware on the client side. You wouldn't need to buy the fastest computer with
the most memory, because the cloud system would take care of those needs for you.
Instead, you could buy an inexpensive computer terminal. The terminal could include
a monitor, input devices like a keyboard and mouse and just enough processing power to
run the middleware necessary to connect to the cloud system. You wouldn't need a large
hard drive because you'd store all your information on a remote computer.
Corporations that rely on computers have to make sure they have the right software in
place to achieve goals. Cloud computing systems give these organizations company-wide
access to computer applications.
Cloud computing gives companies the option of storing data on someone else's hardware,
removing the need for physical space on the front end.
Corporations might save money on IT support. Streamlined hardware would, in theory,
have fewer problems than a network of heterogeneous machines and operating systems.
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If the cloud computing system's back end is a grid computing system, then the client
could take advantage of the entire network's processing power. On a grid computing
system, the client could send the calculation to the cloud for processing. The cloud
system would tap into the processing power of all available computers on the back end,
significantly speeding up the calculation.
Cloud Computing Concerns
Perhaps the biggest concerns about cloud computing are security and privacy. The idea of
handing over important data to another company worries some people. Corporate executives
might hesitate to take advantage of a cloud computing system because they can't keep their
company's information under lock and key.
Privacy is another matter. Cloud computing companies will need to find ways to protect client
privacy. One way is to use authentication techniques such as user names and passwords. Another
is to employ an authorization format -- each user can access only the data and applications
relevant to his or her job.
Some questions regarding cloud computing are more philosophical. Does the user or company
subscribing to the cloud computing service own the data? Does the cloud computing system,
which provides the actual storage space, own it? Is it possible for a cloud computing company to
deny a client access to that client's data? Several companies, law firms and universities are
debating these and other questions about the nature of cloud computing.
How will cloud computing affect other industries? There's a growing concern in the IT industry
about how cloud computing could impact the business of computer maintenance and repair. If
companies switch to using streamlined computer systems, they'll have fewer IT needs. Some
industry experts believe that the need for IT jobs will migrate to the back end of the cloud
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Advantages of Cloud Computing
Cloud computing offers numerous advantages both to end users and businesses of all sizes. Let’s
visit some of the most important advantages of cloud computing and discuss them in more detail.
Those will include both a company’s and an end-user’s perspective.
This is the biggest advantage of cloud computing, achieved by the elimination of the investment
in stand-alone software or servers. By leveraging cloud’s capabilities, companies can save on
licensing fees and at the same time eliminate overhead charges such as the cost of data storage,
software updates, management etc.
Convenience and continuous availability
Public clouds offer services that are available wherever the end user might be located. This
approach enables easy access to information and accommodates the needs of users in different
time zones and geographic locations. Moreover, service uptime is in most cases guaranteed,
providing in that way continuous availability of resources.
Backup and Recovery
The various cloud providers offer reliable and flexible backup/recovery solutions. In some cases,
the cloud itself is used solely as a backup repository of the data located in local computers.
Cloud is environmentally friendly
The cloud is in general more efficient than the typical IT infrastructure and It takes fewer
resources to compute, thus saving energy.
Regarding performance, the systems utilize distributed architectures which offer excellent speed
of computations. Again, it is the provider’s responsibility to ensure that your services run on
cutting edge machinery.
Quick deployment and ease of integration
A cloud system can be up and running in a very short period, making quick deployment a key
benefit. On the same aspect, the introduction of a new user in the system happens
instantaneously, eliminating waiting periods. Furthermore, software integration occurs
automatically and organically in cloud installations.
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Increased Storage Capacity
The cloud can accommodate and store much more
data compared to a personal computer and in a way
offers almost unlimited storage capacity. It
eliminates worries about running out of storage
space and at the same time It spares businesses the
need to upgrade their computer hardware, further
reducing the overall IT cost.
Device Diversity and Location Independence
Cloud computing services can be accessed via a
electronic devices that are able to have access to the internet. These devices include not only the
traditional PCs, but also smartphones, tablets etc. With the cloud, the “Bring your own device”
(BYOD) policy can be easily adopted, permitting employees to bring personally owned mobile
devices to their workplace.
There is no limitation of place and medium. We can access our applications and data anywhere
in the world, making this method very attractive to people.
Smaller learning curve
Cloud applications usually entail smaller learning curves since people are quietly used to them.
Users find it easier to adopt them and come up to speed much faster. Main examples of this are
applications like GMail and Google Docs.
Disadvantages of Cloud Computing
As made clear from the above, cloud computing is a tool that offers enormous benefits to its
adopters. However, being a tool, it also comes with its set of problems and inefficiencies. Let’s
address the most significant ones.
Security and privacy in the Cloud
Security is the biggest concern when it comes to cloud computing. It is then up to the cloud
service provider to manage, protect and retain them, thus the provider’s reliability is very critical.
The various stories of data loss and password leakage in the media does not help to reassure
some of the most concerned users.
Technical Difficulties and Downtime
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Certainly the smaller business will enjoy not having to deal with the daily technical issues and
will prefer handing those to an established IT company, however you should keep in mind that
all systems might face dysfunctions from time to time. Outage and downtime is possible even to
the best cloud service providers.
Limited control and flexibility
Third party virtual environments, companies and users have limited control over the function and
execution of the hardware and software. Moreover, since remote software is being used, it
usually lacks the features of an application running locally.
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According to Gartners Hype cycle, cloud computing has reached a maturity that leads it into a
productive phase. This means that most of the main issues with cloud computing have been
addressed to a degree that clouds have become interesting for full commercial exploitation. This
however does not mean that all the problems listed above have actually been solved, only that
the according risks can be tolerated to a certain degree. Cloud computing is therefore still as
much a research topic, as it is a market offering. What is clear through the evolution of Cloud
Computing services is that the CTO is a major driving force behind Cloud adoption. The major
Cloud technology developers continue to invest billions a year in Cloud R&D; for example, in
2011 Microsoft committed 90% of its $9.6bn R&D budget to Cloud. Additionally, more
industries are turning to cloud technology as an efficient way to improve quality services due to
its capabilities to reduce overhead costs, downtime, and automate infrastructure deployment.
Despite its disadvantages and the fact that it is still in an infant age, cloud computing remains
strong and has great potential for the future. Its user base grows constantly and more big players
are attracted to it, offering better and more fine-tuned services and solutions. We can only hope
that the advantages will further grow and the disadvantages will be mitigated, since cloud
computing seems to have made IT a little bit easier. At past cloud computing was a buzz phrase
that only computer scientists, engineers and a few tech journalists used. It's now well on its way
to becoming a household term. We see cloud computing applications everywhere. Smartphone
apps use cloud computing technology to let you store and access data that normally wouldn't fit
on your handheld device. Research institutions use cloud computing to house massive libraries of
information. And video game companies are experimenting with ways to let you access state-of-
the-art games without requiring a hefty investment in a gaming rig. It can be difficult to tell when
a particular computing model will take off, but I think we can make the note that cloud
computing is a huge success.
Happy cloud computing!
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