Cloud Computing


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Cloud Computing

  1. 1. White Paper Cloud Computing – Still a Long Way to Go About the Author Abstract/Executive summary The global recession has taught the IT world to strike the economical balance by optimizing their hardware, software, tools, hosting environment and services to render highly acceptable, dynamic, speedy and flexible support to the business to help them sustain, survive in one of the most difficult economic situations and still continue to create competitive advantages in market place. Sunil Tadwalkar is electrical engineering graduate, Although in global recession the IT organization’s primary objective is to keep the working as practice Head in Mahindra Satyam in lights on, it is not stopping them to look at other innovative approaches of using corporate solution group. Sunil has over 11 years of process automation, virtualization and cloud-computing to leverage from best experience in different capacities primarily in the areas of Program and Projects Management, Focused available technology to address the highly dynamic, and volatile business needs. Initiatives, Global Business Delivery, Quality and IT Such innovative approaches are meant for reducing the Total Cost of Ownership Consulting, service offerings, resource management, mentoring and training. He is certified PMP, CQA, (TCO) as well as cost of operation and maintenance (OPEX) of IT functions drastically ITIL, CMM, CMMi, PCMM, ISO9001, Tick-IT auditor. in a break through manner. As a result business dynamism, cost and technology is driving the next generation of IT services to be delivered. The world is becoming service centric and each of the IT component such as application, tool, storage, server purchased by the enterprise will need to demonstrate its value against the business dollar spent on each of them. Just in time service with lightening speed accompanied with enormous amount of elasticity is what business is expecting from IT to deliver from now onwards. Cloud computing is a logical evolution and innovated version of Information Technology delivered from a popular web enabled (Internet based) world to the entire business world and social community. In its nascent stage, cloud computing addresses the emerging need of Hosting, Managing and Delivering (HMD) software, application, platform and infrastructure in ever needed service format that too on the basis of consumption or usage. Most fascinating part of cloud is that, organizations can pay to cloud vendor on a pay as you go basis or pay per user or pay per transaction. With such a wonderful means of delivery without asking upfront any investment, it would not be surprising if there are big game plans already under way by Cloud Vendors to make cloud computing environment viable for every piece of technology, application, tool and hosting environment in an integrated and secured manner. The biggest Unique Selling Point (USP) of cloud computing is traded on the basis of its ability to quickly respond to demand spikes and host new business application faster without the need of internal IT department. The mind share of IT world is towards separating applications and services from the underlying infrastructure so that IT departments can be more flexible in supporting the business Inside the Issue: Abstract/Executive summary ..1 Introduction ..2 What is cloud computing? ..4 Cloud computing models ..5 Cloud representation as per need of organization ..6 Virtualization and cloud computing ..8 Compliance and Regulations on cloud computing ..9 Deploying cloud ..10 The IT players in Cloud computing ..12 Adoption of cloud ..13 How to get prepared for cloud computing services ..14 The cost of cloud computing services ..17 Some deployment stories ..18 What the IT world is gaining ..19 What are the existing and future challenges? ..21 Steps towards meeting the challenges ..22 In summary ..24 References ..25
  2. 2. White Paper Cloud computing offers huge revenue potential as a sky line business at a time when traditional wire line business is shrinking. Although for some aggressive IT organizations (such as BT) use of cloud computing services is at concluding stage of their pilot, for rest of the IT firms it is at the stage of starting of pilot or in the middle of running pilot. It is forecasted that in the next two years more than 16% of IT professionals in U.S., U.K., Germany, and Japan will plan to invest in cloud computing, according to a survey conducted by Harris Interactive and sponsored by Microsoft. It is also expected that around 10 to 30 % of the IT budget meant for building application and services to support the business will provide considerations for cloud computing environment. Technology and business work hand in hand for each other in many ways and both provide advantages and disadvantages to each other. Cloud computing is changing the way business is done by offering scalability, flexibility, speed of operation along with positive impact on CAPEX and OPEX. On the flip side since it encourages open standard like internet it makes the cloud customers difficult to exercise control with their cloud vendors. Moreover conformance to regulatory compliance and security standard, Data privacy, confidentiality and security are few questionable issues yet to get addressed. Cloud computing is changing Gartner predicts the market for cloud products and services will move from US$46.4 billion last year to US$150.1 billion in 2013. Also according to an October 2008 the way business is done by report from IDC, customer spending on IT cloud services (business applications, offering scalability, flexibility, application development/deployment, system infrastructure software, storage and speed of operation along with servers) will grow almost threefold by 2012, to $42 billion. IDC said the growth of cloud services "is being driven by the ease and speed with which users can opt with positive impact on CAPEX and better economic benefits especially in current economic condition." Gartner expects OPEX. a 21.3% revenue increase in 2009 to $56.3 billion, and Merrill Lynch forecasting a $160 billion market by the close of 2011. A new study commissioned by Avanade shows a 320% increase over the past nine months in respondents reporting that they are testing or planning to implement cloud computing. Each firm uses different definitions behind cloud computing, which helps explain the wide variances in market sizing estimates. The white paper elaborates on concept of cloud, types, and forms of deploying services, early adopted, cloud vendors, and tips on selecting vendors. Finally it touches on existing and future challenges. Introduction In last few years ,business spectrum and consumer pattern all over the globe has turnout to be highly demanding in nature with the recent addition of new challenges such as recession, economic meltdown etc. The survival of business is weighed on its ability to change rapidly along with business climate. CIOs and CEOs have been asked to get in to the habit of doing more with fewer resources by challenging their efficiencies, and productivity. They are also compelled to serve every new business requirement with innovation and idea which is never been implemented by any of their competitors. The IT functions which are amalgamated with business have started facing herculean task to manage with decreased trend in capital and operating cost along with demonstrable value, although there is steep increase in demand for new business processes to support. 2
  3. 3. White Paper The mantra of doing more and more with less resource has transpired technology experts to reinvent the wheel to deliver IT applications to the business. There's a shift away from building and owning IT assets to purchasing services as a way to reduce costs. Virtualization and cloud computing have been the new IT landscape which offers fundamentally faster, scalable and more cost-effective alternative to on-premises application development , deployment and servicing solutions which you can virtually avail from any location all over the globe. Cloud computing is transformational platform which hosts practically every piece of hardware, software, tool, applications without looking at its origin, color, community etc. The cloud computing has a store for accommodating every size of business IT function how so ever it is small, medium or large and yet take any transient load during spike demand. Due to this cloud computing is moving from its pilot stage to deployment and further to service the business as and when needed. Virtualization allows the There are some outstanding issues and challenges which cloud computing technology needs to address in next 5 years and they are relating to security and sharing of infrastructure to privacy of business data in remote 3rd party location, dreaded concerns about improve utilization rates; platform lock-in, worries about reliability/performance, transfer of data to third service automation and party, regulation etc. Cloud vendors are already addressing them on top priority and as the industry matures the solutions will be available to plug in those loop change management tools holes ensure IT processes are run in Cloud computing doesn't just have technology aspects but profound business aspects. a standardized way; and It's a new model for delivering and consuming IT more efficiently, in turn reducing non-differentiating business CAPEX and OPEX by making use of economies of scale. Many of the technologies services like email, payroll, to enable cloud computing are maturing. Virtualization allows the sharing of development and test are infrastructure to improve utilization rates; service automation and change management tools ensure IT processes are run in a standardized way; and non- being standardized and differentiating business services like email, payroll, development and test are being outsourced. standardized and outsourced. Any web-based tools and collaboration tools can be effectively hosted in the cloud. Visualization services over the Internet of complex data correlations can also be done in the cloud.SOA is a good way of preparing applications for delivery in the cloud. Cloud drives companies to accept standardization. One can look at IT landscape; what is not managed efficiently and what isn't providing a strategic service to the business, then develop a transformation plan for these services to move to the cloud. If you standardize the business processes and every new application by moving to cloud then the cost reduction will follow. Research and analysis firm Gartner has released the Hype Cycle report for 2009, which evaluates the maturity of 1,650 technologies and trends in 79 technologies. The report which covers new areas this year defines that the Cloud computing is the latest growing trend in the IT industry, stating it as 'super-hyped' Google Inc., Microsoft, Yahoo Inc. and a handful of other vendors will invest about $5 billion this year to build out the infrastructure to sell IT through the "cloud," according to Gartner Inc. by 2009.
  4. 4. White Paper What is cloud computing? Internet to cloud computing The invent of internet taught IT world how to use the front end of business application at the ease of browser but the control of data ,application, its storage and deployment was still resting in individual premises of every organization. It was a need of time that business house were looking for someone to help them in developing, installing, configuring, testing, staging, and running their hundreds of business application from SAP, Microsoft, and Oracle in failsafe environment with lesser time and headache which can minimize their cost of requiring office space, power, cooling, bandwidth, networks, servers, and storage etc. Business houses are increasingly focusing on core competencies and business priorities by handing over IT functions to third party vendors as much as possible. You don’t have to worry Cloud-Computing: a new mantra Cloud computing derives its name from cloud which represents data centers, about performance issue technologies, infrastructure and services delivered through internet.Cloud when business transactions computing is defined in many ways by many experts. For someone it is a set of goes up, it is automatically disciplines, technology and business models used to deliver IT capabilities (software, taken care of. Moreover you platforms, hardware) as an on-demand, scalable, elastic service. don’t have to worry about up For others cloud computing is, “A mode of delivering services on a scalable and gradation of your hardware, virtualized infrastructure using Internet technologies." It hosts customer’s business application in scalable platform and bill it as per usage or consumption. It’s a way software, tools or hosting of delivering business value by speeding –up efficiency and productivity environment for that matter. Cloud computing is a computing model that lets you access shared IT resources in service format as per your need ( hardware, software, tools and storage) over the Internet, without having the need of buying, installing, maintaining and managing them of your own. Eventually you don’t have to run your application on your own platform and with your own data centre. Just subscribe it, log in, customize it and start using. You will get billed as per the usage, that is all … you don’t have to contact your IT department to host the application. All this will cost you dramatically less and with greater performance. You don’t have to worry about performance issue when business transactions goes up, it is automatically taken care of. Moreover you don’t have to worry about up gradation of your hardware, software, tools or hosting environment for that matter. Risk of technology obsolescence is none. Cloud features The cloud really touched on several concepts: interoperability, workload redistribution, monitoring and scaling. Interoperability allows users to run the application anywhere which is built once. Workload redistribution enables movement of an existing process from one cloud to another in a seamless manner and relatively quick. Services delivered through cloud Cloud can deliver multiple services in mass scale ranging from communication, collaboration , training, social networking to hosting business applications more over cloud infrastructure can be used for online backup solutions and storage services, Cloud computing is a pay-per-use model for enabling available, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
  5. 5. White Paper Cloud computing models The dominant or proven services model on how computing services will be delivered in cloud is yet to get established since most of the services are getting tried and tested. Currently it leaves with numerous choices to those who are opting for cloud services. Various versions of models may emerge in near future with combination of multiple service packs suitable for every size of industry (such as small, medium and large). Also in the form of hardware, software or platform which can be hosted in cloud computing environment and serviced to IT customer. The service component is made available through on demand services model or subscription based model. Enterprise cloud computing model Today very few cloud computing solutions are enterprise ready since there are outstanding issues on movement of large volume of data and multiple applications on multiple platforms, data security, storage, and archiving information confidentiality, regulatory and change management as well as limitation on hosting of certain business applications ( not all)which needs to be addressed. Cloud has to turn out trustworthy for business class and critical application computing since all of them would be crossing the fire wall. Enterprise is also looking for stringent SLAs, bandwidth and extensive support (24X7) for critical applications. Flavors in cloud computing Cloud computing takes multiple routes and formats while delivering the services since it accommodates host of IT components such as infrastructure, platform, software’s etc. On a major scale the cloud services are delivered in three formats The beauty of IaaS is that, it such as Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service caters for any transient spike Infrastructure-as-a-Service in demand within no time Infrastructure-as-a-Service (IaaS) is one category of cloud computing offerings that without the need of making make basic computational resources — such as storage, disk space, and servers available as per service demand eliminating the need for installing physical machines extra provisions. at cloud customer’s premises. IaaS eliminates the need of capital expenditure towards buying the infrastructure components by the organizations when they want to deploy their large scale applications. Since IaaS service is available on the basis of pay-as-you-go, it allows companies to scale up and down as per their real-time business needs, rather than having to pay up front for entire infrastructure that may or may not get used. The beauty of IaaS is that, it caters for any transient spike in demand within no time without the need of making extra provisions. This is a very attractive proposition for the small and mid size businesses. The players who provide such services are Akamai ( for Net Storage and CDN services),Amazon ( for Elastic Compute Cloud/EC2 and Simple Storage Service/S3), Go Grid (Cloud Servers and Cloud Storage), Joyent (Accelerator). Platform-as-a-Service Platform-as-a-Service (PaaS) is one of the fast-growing service flavors of cloud computing which offers scalable, quickly and easily deployable web platform. Although large scale enterprises are running multiple business applications on multiple platforms, PaaS provides them solution for running their business application on every latest version of platform eliminating the need of buying multiple license software’s. The players who provide such services are Akamai (Edge Computing), Elastra and Right Scale (platform environments for Amazon’s
  6. 6. White Paper EC2 infrastructure), Google (App Engine), Microsoft (Azure), Oracle (SaaS Platform). In this case cloud will act as a functional platform model, where the user subscribes to the use of a set of functional services, rather than to a set of hardware capabilities. Cloud providers will make provision and move functions around their own cloud to meet the needs of dynamic workload. Many PaaS vendors have also created their own language to be used to link components together. Software-as-a-Service Cloud computing began with this service format of Software-as-a-Service (SaaS), where complete end-user applications are deployed, managed, and delivered over the Web. SaaS continues the cloud paradigm of low-cost, off-premise systems and on-demand, pay-per-use models, eliminating development costs and lag time. This gives organizations the agility to bring services to market quickly and frees them from dependence on internal IT cycles. The speed and ease with which SaaS applications are purchased and consumed has made this category of cloud computing offerings the most widely-adopted today. Important cloud SaaS vendors and services include, Adobe Web Connect, Cisco WebEx, Google Mail, Hotmail, Yahoo! Mail (communications applications) Demand ware (e-Commerce), Net Suite (Accounting, ERP, CRM, and e-Commerce), SAP Business by Design (HR, Finance and other ERP applications), Workday (HR, Finance, and Payroll). Cloud representation as per need of organization The internet or web based technology of cloud computing with objectives of sharing, optimizing its hardware, software and tools to multiple customers makes it impossible for organizations to maintain Confidentiality, security and privacy of data, Owning and managing a applications and business traits. This poses serious concern to the organization in private infrastructure is less maintaining their confined identity on cloud. To address this concern, the cloud cost-effective for a business, services are available in private and public domain and characterized as private or personal and public cloud but it increases the Private cloud organization's ability to The concept of private cloud emerged from the basic need of exclusiveness and manage and protect data. confidentiality in what organizations want to do while services are handled by the cloud vendors. The private cloud model allows an administrator to manage his technology infrastructure from a single point and assign resources as needed. Owning and managing a private infrastructure is less cost-effective for a business, but it increases the organization's ability to manage and protect data. This is especially important for businesses that have strict compliance regulations. A private cloud is the transformation of the data center into a modular, service oriented environment that makes the process of enabling users to safely procure infrastructure, platform and software services in a self-service manner. Most current private cloud computing environments consist of reliable, highly scalable services that are built on virtualized servers and provided as a service via the Internet. The services can be billed on the basis of amount of time used by a specific application or server by a particular department within the company. Some cloud vendors offer private cloud services as a virtual private cloud which offers a secure, scalable tunnel so that an organization can easily extend its available resources out into the cloud seamlessly, with little or no disruption in the network or application network architecture. Such cloud ensures no degradation of performance. There is some private cloud communities who can build Condominium
  7. 7. White Paper clouds and condominium fiber confined to their members only, who shares the resources to its members only to allow them to scale and use it for their close business users. Private cloud computing deployments can save cloud customers from 40% to 80% on physical space, cooling and utility costs. A well-planned private cloud can double or triple cloud customer's utilization and ROI of corporate assets. Personal cloud Based on the variety of computing needs the concept of cloud is further broken down from private to personal cloud, in which developers could use a personal cloud that would allow them to configure their local environment, develop and test web applications in multiple ways virtually from any location and they can copy the version on laptop to work offline when cloud services are down. Public cloud Public cloud is a cloud computing service available with virtually no boundaries on CIOs are waiting for cloud service scalability and resource tapping and is almost like internet service in terms services to get matured, of accessibility. It carries a serious concern of security and privacy of data. CIOs secured and SLAs to address are waiting for cloud services to get matured, secured and SLAs to address business business and compliance and compliance commitments before they opt for public cloud. Public cloud computing services are especially useful when you want to test application in public commitments before they opt cloud environment. Public cloud provides economics with large scale. for public cloud. Trade off between Public and private cloud Enterprise Organizations are looking at cloud computing opportunities by doing pilots and trials under internal and private cloud environment which is secured and can be controlled to some extent. The start-up SMBs use public cloud since investment is lowest. Internal and private cloud adoption will happen over the two years while public cloud computing and internetworking between public cloud services providers will be five to seven years of plan by then the security issues may get addressed. Public cloud is a favorable ground for open source which is supported by cloud vendors such as, LAMP, and AWS. Many of these internal private clouds are built on open source (Linux, MySQL, Eucalyptus) etc.) Combine cloud or switching over Cloud customers have an option of using an internal private cloud to manage the normal workload, with the capability to burst out to the public cloud for peak demand, and they don't have to manage that in-house. Such marriage between the public/ private clouds provides a hybrid solution and can be tried as a virtual lab at every organization. The future of the cloud is seen as a combination of private, traditional data centers, hosting, and public clouds. Cloud Optimization Services Although cloud computing services are based on aspects of performance, scale and reliability while delivering the robust services to enterprises. Economical model of peering may pose serious consequences. It may result in, overburden, packet loss, service degradation, slow and uneven performance of cloud-based applications. Such issues are addressed by certain cloud vendors with unique routing, communications, and application optimization technologies to accelerate IaaS, PaaS, and SaaS services across the cloud. Path Optimization technology monitors real- time Internet conditions to identify alternate paths over the Internet that are faster than default BGP-defined routes. In addition to accelerating the long-haul Internet
  8. 8. White Paper communications that are necessary for dynamic cloud applications and uncacheable content it also improves the reliability of these communications by routing around trouble spots, finding alternative paths that optimize connectivity. The greatest possible application performance and scalability are achieved when the application itself can be distributed to the edge of the cloud, close to the end users. Application instances are automatically created in different cities and regions based on real-time demand — something that cloud vendors such as Amazon EC2 and Google App Engine cannot do. This allows edge computing customers to enjoy truly maintenance-free scalability in addition to unparalleled end user performance. Edge computing is designed to work seamlessly within a hybrid cloud environment. By deploying content-centric application components — such as site search, surveys and contests, or page assembly — at the edge of the cloud, while running sensitive or transaction-oriented application components at the origin infrastructure, the application can be scaled and the end user experience can be optimized, while The greatest possible meeting the different business requirements of each application component. application performance and Securing Cloud Applications and Platforms Since the public cloud platforms are as vulnerable to Internet threats and service scalability are achieved when attacks as traditional Web sites and applications, some vendors (such as. Akamai) the application itself can be have developed network acts as a “secure perimeter” that eliminates public entry distributed to the edge of the points to cloud infrastructures, helping to keep malicious DDoS attacks, Internet cloud, close to the end users. worms, hacker threats, and attacks on application vulnerabilities outside the origin data center. Technologies such as DNS security, IP layer protection and access control, HTTP origin cloaking, and application request checking are also developed. By providing additional layer of security, you can completely ‘cloak’ a Web site from the public Internet by effectively removing the origin from the Internet accessible IP address space, or in-cloud Web Application Firewall can identify attacks in HTTP and SSL traffic before they get to application servers, protecting cloud services right from the edge of the cloud. Ensuring Site and Application Availability Cloud optimization services are so necessary — to provide resiliency from the many potential pitfalls preventing the successful delivery of cloud services to end users. Cloud optimization service includes Site Failover, offering multiple options for enterprise business continuity in case of origin or cloud server failure. Some vendors have developed cloud-based traffic management system that allows an enterprise to balance traffic between multiple entities based on a variety of business policy and Internet performance factors. These service options, combined with a 100% uptime SLA, enable enterprises to leverage cloud computing — in any form they wish — while maintaining the rock-solid availability their businesses demand. Virtualization and cloud computing Virtualization is the technology that gave birth to the current cloud computing by evolving IT infrastructure. It is backed –up with the concept of optimization and utilization of IT infrastructure in a shared environment so that multiple cloud customers can access the computing environment virtually from anywhere any time for their business application from the common source. Cloud computing has adopted and embedded the virtualization concept while making the IT infrastructure
  9. 9. White Paper flexible, scalable and available to the business users anywhere. Virtualization objectively aims at utilizing the CPU power to its fullest capacity in an efficient manner and by making it available to multiple users from multiple locations. Server virtualization and cloud computing are, in many respects, two sides of the same coin. Ideally, corporations and their IT departments can meld the two so that they work in a synergy to achieve their business goals. Compliance and Regulations on cloud computing Although cloud customers are seeking services from cloud vendors for data backup, storage, records management and availability of log files etc., however prima facie it is cloud customer’s responsibility to ensure that the legal, regulatory and audit obligations are fulfilled for the applicable IT services of that region and country. There are various laws and regulations applicable which include data privacy laws and Payment Card Industry Data Security compliance standard relating to credit card payments in cloud or a SAS 70 Type II audit which are applicable even if you are opting for services from cloud vendors. Cloud customers are subject to myriad laws or regulations such as SOX, 404 (in USA) that stipulate in what manner and how long data has to be kept and how do you ensure the audit and control of financial Computer scientists at NIST, in information. Countries like Germany and the U.K have specific regulations relating collaboration with industry to email The Federal Rules of Civil Procedure (FRCP) those U.S. lawyers must follow and government, are in civil cases require the disclosure of electronically stored information at an early stage of a case. EU's privacy restrictions and Massachusetts data protection act is producing a special host of such regulatory needs. Laws and regulation such as Markets in Financial publication that covers cloud Instruments Directive, or MiFID, (in the UK); JSOX (in Japan); or Corporate Law architectures, economics, Economic Reform Program, or CLERP 9 (in Australia)? security, and deployment If you have cloud customer’s data in the cloud, it is necessary to demonstrate the strategies. Some professors in controls that ensure compliance with published privacy policies and with the privacy and freedom of information regulations in force in all of the countries where you universities are working on a do business. Any kind of official records stored on cloud resources -- files, documents, framework for building emails, instant messages, memos, forms, scanned images, etc. along with its retention infrastructures that are more policies comply with Federal Rules of Civil Procedure in the case of a law suit, or accessible, reliable, efficient, with DoD 5015.2 record-keeping regulations? and yes, understandable. In fact, Gartner Inc. published a report sometime back stating that security, privacy and risk of compliance will prevent adoption of cloud computing in regulated industries and global companies through 2012. There are multiple bodies working in parallel to develop cloud computing, service portability and interoperability standards across the cloud platform. Computer scientists at NIST, in collaboration with industry and government, are producing a special publication that covers cloud architectures, economics, security, and deployment strategies. Some professors in universities are working on a framework for building infrastructures that are more accessible, reliable, efficient, and yes, understandable. A more holistic standard to cloud computing has been that of Cloudware, Cloudware is focused on streamlining things like database integration and replication into a cloud environment. A major systems-management standards body has formed a group dedicated to developing open management standards for cloud computing. The Distributed Management Task Force (DMTF), whose board includes representatives from companies such as AMD, Cisco, Citrix, EMC, HP, IBM, Intel, Microsoft, Novell, Red
  10. 10. White Paper Hat, Savvis, Sun and VMware announced the creation of the Open Cloud Standards Incubator (OCSI) group. The existing DMTF specifications including the Common Information Model (CIM), Open Virtualization Format (OVF), WBEM Protocols, member submissions and investigation of opportunities for collaboration with other industry standards bodies Addressing compliance requirements: There are multiple ways cloud vendors and cloud customers are trying to fulfill the compliance and regulatory requirements although there are issues relating to knowledge of where data lives, where it is stored and who has access to it • The cloud centers are equipped with SAS 70 certification and some capability for auditing. • A rigorous security process around cloud customer’s data is established and is being reviewed when loop holes are observed by some cloud vendors. Due to which, every new product that comes out will have security review when it comes out. • The enterprise cloud customers would generally integrate their own authentication and access control system with cloud vendors. There could be authentication at cloud vendor level or cloud customer level backed-up by heavy scrutinization. • If there are data breaches and potential loss of personally identifiable information, then the compliance officers considering the cloud will look at previous accidents. • Regular background checks of employees and their certification for performing certain tasks also helps in ensuring that authorized personnel are handling the policy tasks. These authorized personnel can work with cloud vendors key team members to draft the legal and security service agreements to ensure that protections exist and perform tasks related to sensitive data. • Some of the ways are to build indemnity or defense into the terms of services rendered by cloud vendor who ultimately has some liability in the case of a data breach and can get sued Deploying cloud Private cloud deployment Minimum six months of time Constructing and deploying a private cloud specific to the organization requires is essential to develop, pilot detailed estimation of total cost of ownership (TCO) The cost components such as and deploy the plan and cost of lease/rental facilities space, the cost consumptions of power, IT services, further perform the upgrades. selection and configuration of its deployment, production and test virtual servers backup and disaster recovery, storage and third-party management tools that are For large organizations, the crucial to support an on-demand cloud computing services model. Minimum six changeover to a private cloud months of time is essential to develop, pilot and deploy the plan and further perform may take a year or more. the upgrades. For large organizations, the changeover to a private cloud may take a year or more. Here are some specific points to be noted during private cloud deployment: 1. Prepare a comprehensive plan on which services to be sent to the private cloud, which to keep in-house and which are safe to leave outside the relatively safe confines of the firewall. 2. Construct a detailed blueprint of how you will manage the security aspects of your private cloud including authorization, authentication, access controls, isolation management, integrity and policy management and trusted virtual domains.
  11. 11. White Paper 3. Licensing of software databases and other tools need to be decided 4. Determine the exact cost of downtime and the level of uptime, performance and also prepare contingency plans. Set –up SLAs in collaboration with cloud vendor that addresses your business needs 5. Add suitable clauses if the conditions are not met. Remediation can consist of cash rebates or future service credits. 6. Set up suitable Operation Level Agreements (OLAs) to understand how everyone will work together to meet and maintain the company's service-level requirements. OLAs are designed to set forth a plan of operation and determine which person or group within the company is responsible for specific duties and systems. The OLAs will be an important adjunct to the SLAs for your private cloud computing environment. The cloud vendors will allow 7. Resources on internal application and storage infrastructure will be free once cloud-based storage and other content services are resumed. If you add some only authorized cloud caching to your local unified application delivery network then you can improve customers to create such a performance and further reduce the cost of serving that content because it will tunnel, and it needs to be only be accessed periodically, keeping your cloud-related resource consumption to a minimum. deployed on a platform that is 8. For large data transfers one can use WAN optimization and application able to be integrated into the acceleration techniques to improve the performance of large data transfers across provisioning process such that the Internet. The cloud vendors will allow only authorized cloud customers to the management of such create such a tunnel, and it needs to be deployed on a platform that is able to be integrated into the provisioning process such that the management of such external connectivity and external connectivity and access doesn’t end up consuming human operational access doesn’t end up cycles. consuming human 9. Point-to-point encrypted, optimized and accelerated tunnels are used for data transfer with additional Hardware, software with suitable configuration at both operational cycles. ends of the connection. 10. The process, costs and duties for discovery and preservation requirements need to be negotiated up front, and the appropriate protocols for maintaining attorney- client privilege should also be established at the outset. Services offered by Cloud vendors. In general most of the loud vendors will offer following services 1. Strategy Consulting Services. The cloud vendor helps its cloud customers take a strategic look at cloud services including preparation of business case and total cost of ownership (TCO.). Such services include consultation on which applications to migrate, when to migrate etc. 2. System Integration Services. This service is given to those cloud customers who are building private clouds for large enterprises. It provides expertise on integration between applications and the cloud environment. 3. Engineering Services. Software vendors that want to put their applications on the cloud will need someone to re-code it for multiple users. 4. Cloud solutions. The public cloud services such as e-mail, ERP, storage, back-up, and security in the cloud.
  12. 12. White Paper The IT players in Cloud computing Cloud computing encompasses everything from pay-as-you-go software subscriptions (Software as a Service, or SaaS) to platform to infrastructure that can be provisioned and scaled up or down as business needs dictate. Multiple players are available to provide services; some of the key players are listed in Table-1
  13. 13. White Paper Adoption of cloud Analysts survey shows that since last one year, adoption of cloud computing is on the rise, with 50 percent of Global 2000 companies already opting for cloud infrastructure or are planning to do so within a year. In another survey of 104 Global 2000 companies conducted by AppLabs, 30 percent of respondents were already using the cloud, while 20 percent said they were looking to move their applications onto it within the next 12 months. For the group not planning to adopt the infrastructure, 29 percent said lack of awareness deterred them from moving their applications to the cloud. Another 21 percent each cited security concerns and a dearth of technical expertise. Cost was a factor for 19 percent of respondents, while 10 percent said limited services held them back from jumping on the cloud bandwagon. Cloud computing paradigm is fast evolving "from a futuristic technology to a commercially viable alternative". Many Asian governments are committing to economic stimulus spending, while These two factors have laid their citizens are demanding for more responsive public services. These two factors the ground for countries in have laid the ground for countries in the region to transform themselves into digitized the region to transform cloud nations. "Singapore is among the most advanced and progressive public sectors themselves into digitized in the world in terms of ICT investments and vision, and the government are continuing to invest in IT to further transform the public sector." Springboard said cloud nations. US$14 billion had been earmarked by Singapore as governmental stimulus spending to spur the use of IT in the public sector so as to transform the nation's healthcare and transportation sectors as well as Adoption cloud is typically done by smart organizations with a wait-and-see attitude combined with proactive prototyping and a selection process that will help them select the best set of cloud computing services and tools. Early trials with non- mission critical applications will be a useful way to help everyone in the organization gets up to speed on cloud computing technologies and how they integrate with existing IT processes. Candidates for adopting cloud computing services? 1. Anybody with a need to make data and processing available to a large number of users is a good candidate. Workloads or applications with unpredictable or capacity requirements play well in the cloud computing model. Project such as a marketing campaign are well suited for hosting. 2. Software development organizations will be among the first because they have a vested interest in making it work. They can use a cloud-like environment for integration with other application components. And when they want to migrating environments to QA and onward 3. CDNs [Content Delivery Networks] service providers are most likely to adopt cloud. 4. Utilizing the cloud for requirements management is a better use of their time. "The important thing is we don't need to manage the back end, which is critical. 5. Application development and testing in the cloud is ideal proposition if you are looking at cutting infrastructure cost of build and test environment that replicates the production environment. It's the best way to use the cloud on a short-term rental capacity basis. If you are conducting large performance tests that simulate 400,000 people hitting that application, cloud provides the cheaper way to handle that kind of load.
  14. 14. White Paper 6. Autonomous applications, or ones that don't interact much with the back office, are also a good fit for cloud computing. 7. Public website hosting and content delivery What you cannot host on cloud 1. Those back-office applications which are not designed to scale on a cloud platform, because they may not be simple to administer since they often requires clustering which may be tricky on any platform 2. Cloud computing may not be suitable for outsourcing large data centers, according to a new report from McKinsey & Company How to get prepared for cloud computing services During planning phase 1. Business assessment and Strategic planning: Cloud customers need to have clear understanding of their business goal for moving towards cloud along with short and long term ROI. Also what will be the impact on bottom line and top line, what are the current Total Cost of Ownership (TCO) and how much it is expected to reduce by moving to cloud? The SWOT analysis is essential before finalizing the decision to move to cloud. Consulting and involving the finance department may be a right move. 2. Realize the hidden costs: Organization should check with cloud vendors for all hidden costs such as management, governance, and transition costs including staff training which may flare up at the later stage and hence need to be factored before moving to cloud services The IT team needs to prepare 3. Assessment of IT software assets and people: While assessing the IT assets, the questions such as, how will it affect Service-Oriented Architecture (SOA) a program charter, Reorganize strategy? How is disaster recovery plan impacted? What about backups and legally IT teams according to mandated data archiving policies? What is the risk profile for using cloud application functionality and computing services and what is the mitigation strategy? What is the potential for engage them during platform lock-in and how can it be avoided? Shall be addressed, prioritization of putting eligible standalone applications (e.g., sales promotion programs, emails, deployment, migration and HR benefits etc.) in the cloud is of prime importance and shall be thought by testing of application on cloud business users. The IT team needs to prepare a program charter, Reorganize IT although cloud vendors may teams according to application functionality and engage them during deployment, be doing part of it. migration and testing of application on cloud although cloud vendors may be doing part of it. 4. Knowledge transfer: The business and IT users have to be trained in cloud environment. Their familiarization to cloud concept, terminologies is of prime importance, moreover they will have to get convenience on the benefits of cloud. Also it is essential to understand what are the due diligence issues 5. Business continuity management: Before migrating the applications to cloud environment it is important that the entire environment for the cloud service is mapped out and a disaster recovery plan is set up
  15. 15. White Paper 6. Migration strategy: A clear strategy of which application should be migrated to cloud first and why shall be clearly documented. Best way to make a beginning is with non critical applications such as e-mails, content hosting. Core functions will probably stay in the corporate data center; but storage, legal, and disaster recovery are good things to move to the cloud 7. Prepare a back-out strategy: A plan for back out of cloud is essential even if it is not given by cloud vendor so that if you get in to serious issues with cloud vendor you should be able to continue with the business by restoring back your systems 8. Go for proactive prototype or pilot: It is essential to clearly establish the technical and commercial outcome of migrating the applications to cloud by conducting detailed pilot with one or two key business applications which may have lowest business risk. Such pilots should check the viability, performance and integration issues as well as service support capabilities of cloud vendors. Test your system around the clock to make sure that the service offerings being provided to you are top-notch and meet your goals. It is also very important for you to map out the network's architecture completely, so you always have an insider's view of the service. 9. Evaluate cloud vendor: While evaluating the cloud vendor, it is desirable to gather information from other organizations that have opted for services from cloud vendors being evaluated and make a comparative analysis of service performance, issues faced and potential risks. This will help in making informed decisions. It is helpful to talk to multiple cloud vendors too It is also very important for While evaluating, selecting and finalizing the cloud vendor following important aspects should be considered you to map out the network's architecture completely, so Technical scrutiny: you always have an insider's A careful analysis is essential while evaluating cloud vendors technically. Following areas are very important to check back with cloud vendors view of the service. • Data related: What type of business data will be preserved, in which format and which location? How is the data collection to be done? What will be the allowable duration for data? What are the confidentiality and privacy norms and how the data will be made available for compliance and regulatory requests? How data is encrypted? Does the cloud vendor use any sub-contractors or rely on any partnerships to process the data? Is the data backed up and if so, where are the backups stored? What is the frequency and periodicity of data back-up? What happens to copies of the data if the relationship is terminated or if the cloud vendor fails? Will the cloud vendor provide archival copies of the data to the customer? How will the cloud vendor react to legal inquiries about a customer's data set? What types of auditing tools are available? Do the administrators have to have access to the data? What tools are used to make sure the backup (or a copy of it) doesn't go on a CD or thumb drive but only through an approved system? • Which platforms are not supported and which configurations are not possible? • How database licensing would be handled, who will have licenses? • What is the scalability, redundancy and availability during staging and production
  16. 16. White Paper • What virus protection is there and how regularly are vulnerability scans and penetration tests run? • How often their systems will be backed up? Are the back-ups encrypted? Where are they stored • Can cloud vendor be able to respond to an e-discovery request? • What is the cloud vendor’s window for scheduled maintenance, when systems may not be available? How the infrastructure and services are utilized to provide persistent access to needed applications and data sets. Service Level scrutiny: • SLA related: What are the SLAs relating to reliability, performance, response time, security parameters, data privacy, reliability/availability and uptime, data and infrastructure transparency? Elaborate SLAs are the most effective way to achieve the business objectives. Does SLAs specifically addresses managerial issues , intra cloud quality of service, allowable downtime, specific performance levels, cost and time to recover from outages, provisions for lost data and any security breaches, as well as backup, disaster recovery and storage. Does service- level agreement guarantee a specific amount of uptime? How is the customer credited • Security service related: What security service assessments client has in place? or compensated for an Do the administrators have to have access to the data? What tools are used to outage? What level of make sure the backup (or a copy of it) doesn't go on a CD or thumb drive but redundancy is in place to only through an approved system? Ask for a description of the infrastructure, minimize outages? What the format in which the data is held, what happens to backup tapes, and whether or not you can have specific retention processes applied to your data. alternative methods of access are offered if there is an • Governance and compliance related: What governance and compliance standards are followed and complied with. What certifications cloud vendor has outage? obtained (such as ISO27001, BS25999, and ITIL)? Do they have a data back-up and retention process? • Communication and reporting related: What are the statuses reports, measures and analysis trends generated and delivered to cloud customers? What is the periodicity of service review? Which parameters are tracked, monitored and reported? • Service Failures: What arrangements cloud vendor has in view of equipment failures or power outages? How is a services outage defined? What tools are in place to determine the severity of the outage? How is the customer credited or compensated for an outage? What level of redundancy is in place to minimize outages? What alternative methods of access are offered if there is an outage? Business Level Scrutiny: • Customer references: Check out the references from similar cloud customers from whom the cloud vendor is providing services, check with them the problem faced and challenges during start-up and steady state position during service period. How long the cloud vendor is providing services • Intellectual property: How it is protected. What are the arrangements cloud vendor has towards its confidentiality
  17. 17. White Paper • Pricing structure: What is the pricing structure? Which costs are not included in basic services? Are charges based upon traffic, usage or storage limits? What are the minimum and maximum limits? What are the applicable taxes, duties, fees? Is there any type of price protection? Are there licensing fees above and beyond the service fees? During Implementation phase • Retain control over the application's environment. When you opt for services from cloud vendor. It is necessary to make sure that system is under the control of cloud customer. Create appropriate documentation, measures, and metric and keep records of all communication with cloud vendors along with issues, challenges faced. • Engage cloud vendors to deliver services to the remote offices. Cloud customers may not have IT staff at these locations, it will be much more cost effective to avail such services and integrate with your own systems. • Consider deals of shorter duration such as 1 to 3 years period renewal every year. This would make it easier to switch if your current provider is not aggressively looking for new and better ways to help the business and create Moreover scaling the IT value. requirements up and down is The cost of cloud computing services feasible with no extra Moving CAPEX to OPEX: One of the top motives of IT organizations moving to cloud environment is, its ability to bring down the Capital Expenditure (CAPEX) to investment since it will be minimal and use CAPEX to cater for operating expenditure (OPEX) based on based on consumption again. consumption or usage of IT services. Moreover scaling the IT requirements up and Capacity and volume down is feasible with no extra investment since it will be based on consumption requirements doesnot add any again. Capacity and volume requirements doesnot add any extra CAPEX. The OPEX can be tightly controlled by the cloud customers. extra CAPEX. The OPEX can be tightly controlled by the As cloud services grow the costs may shoot up over time. Cloud customers need to consider the cost of switching over to other cloud vendor and the costs of integration. cloud customers. Start-up cost of cloud services and cost during long run of services may be different. Services such as data back-up, storage, data access, archival, disaster recovery may cost additionally if not factored in basic services tariff Charging system On a small scale, charging per instance makes sense, in that you pay for the minimum capacity you need as you go. Large cloud customers think that the pricing models based on usage do not holds good for large businesses with heavy transaction volumes. But if you are a startup more concerned with gradual and affordable growth, such on demand pricing models make sense. The pay-as-you-go pricing model allowed us to grow little by little and use incremental services without up-front infrastructure investments.
  18. 18. White Paper Some deployment stories Several deployment stories of cloud customers are emerging with variety of services being hosted on cloud and indications on numerous business benefits. Table-2 lists some of them
  19. 19. White Paper What the IT world is gaining Cloud computing provides numerous advantages at business and technical level to cloud customers, few of them are listed below Business view • Cloud computing services have proved to be 5 to 7 times cost effective, according to the analysts report, study made at universities as well as from the implementation report of early adopters and in a deep recession, the lowest common denominator is cost. Any technology, proven or not, that promises to cut costs will get attention – whether IT likes it or not. Some low-criticality applications like email, promotional services on cloud computing will have positive impact to several users. • The computing power and storage capabilities of cloud infrastructure are amazing and for simple e-mail application as per Gartner if companies have to spend between 10 to 100 $ per user per month it can come down drastically to 1 to 5 $ per user per month. Cloud in this instance is really managed hosting. The challenge is to get enough compute capacity at a cost below what a company could stand up in internal virtual environments themselves. The challenge is to get • Most small and medium businesses simply don't have the time, expertise or enough compute capacity at a money necessary to buy, deploy and manage the computing infrastructure needed to run their solutions on their own. Cloud computing provides breather, since all cost below what a company IT services are available on subscription basis based on your consumption pattern could stand up in internal and you don’t have to go for buying any capital item. Services such as CPU virtual environments cycles, bandwidth, and application logins in the cloud will be reasonably cheap and extensively commoditized for the foreseeable future themselves. • Benefits for the business can be significant: faster project times to market, given that IT is not waiting for servers to open up to start testing a new application; the ability to tell a department that the new application it wants tested will take a couple of days or weeks vs. months; and of course, the knowledge that you will not have to expand your environment or even build one. • Since the service capacity, space, up and down scaling is all offered on the basis of pay as per your demand the Capital expenditure (Capex) will be nullified and will be transformed to an Operating expenditure (Opex) which will be essentially on usage basis and can be tightly controlled • It is possible to switch to other cloud vendor with minimum cost Technical View • Shared infrastructure will provide better hardware utilization since more cloud customers, applications, users and transactions can be realized per machine. • Automation and dynamic configuration enables self-service, rapid provisioning and flexible workload assignment. • With elastic scalability one can achieve fine-grained capacity and demand planning • Cloud provides comprehensive management of an application, hardware, software, network, tools, security and data
  20. 20. White Paper • The ability to back out if problems arise. • Users can work online and offline from many locations • Since the cloud environment has applications delivered through web browsers which will be front end and backend will be powered by highly-scalable databases hence it is possible to see Separation of data from apps and it can exist in separate locations much more easily and effectively. The opportunity here is to allow the front end apps running in the cloud to tunnel in and connect to the data of your own private data center. • Cloud computing applications in future may not be session-sensitive Web pages that deliver applications that are unavailable when there's an issue with Internet access or loses a user's form data when a backhoe accidentally cuts a fiber line. There will be an offline component in addition to the standard online component to the web application. Thus offline functionality stores the application locally and caches user data so that any interruptions to a Web session or connectivity outages allow users to continue to work uninterrupted. Then when Internet connectivity is restored, any work and changes made offline are simply synced up with the online version of the application. • The access to cloud applications will be feasible 24x7 through any mobile device anywhere since internet will be available through high speed mobile devices The specific benefits of cloud computing can be summarized in following way in Table-3
  21. 21. White Paper What are the existing and future challenges? Prima facie there are few key challenges which are prohibiting every organization to move to cloud although there are positive steps taken by the cloud vendors in addressing those issues. In fact analyst firm Gartner Inc. once published a report stating that security, privacy and compliance will prevent adoption of cloud computing in regulated industries and global companies through 2012 1. Cloud computing in its original state is not secure .Confidentiality ,protection and preservation of customers proprietary data coupled with need of meeting of regulatory and compliance standards are major obstacle preventing organizations to make all out movement to cloud. 2. The other concern being mixing of sensitive data with other cloud customers due to the use of Shared Web servers and practically every component of the OSI layers 1 through 7 is shared -- not just the application layer -- so the attack surface can be exponentially increased. Forensics investigations and any e-discovery requests may be difficult due to the complexities of the cloud. Security right from user authentication to transaction processing to back-end data access needs to be in place and is of prime importance. 3. Interoperability between two clouds for sharing data and information as well as seamless Integration between various applications is difficult to do currently. 4. Pricing model, ROI, customer centric performance based SLAs are some of the business level challenges which are not clear to the cloud customers. The other challenges faced by cloud customers are enclosed category wise in below Table-4
  22. 22. White Paper Steps towards meeting the challenges Some of the solutions which are being adopted by the cloud community are • Independent Third party audits, logging and monitoring systems will need to be enhanced, and incident response processes will undoubtedly. Cloud Vendor and cloud customers may have to sit together and implement some measures like role-based security and privileged access while embarking on cloud based services • The nonprofit entity like Cloud Security Alliance (CSA) is trying to promote the use of best practices for securing cloud computing and will educate practitioners on security aspects according to The CSA will address more than fifteen areas of security issues with prime focus on governance and operations. In parallel several organizations have also doing some research for securing data in the cloud. Both the Cloud Computing Alliance and the Open Cloud Manifesto have LinkedIn groups and can use some help, especially from security professionals working in large enterprises with service provider class networks. The cloud customers are expected to help cloud computing vendors address security in their software delivery model. Security vendors are already responding to the trend. VMware Inc. released APIs and next version of its OS for cloud computing to security vendors under its VMsafe program. Symantec Corp., McAfee Inc., Trend Micro Inc. and others are integrating security tools to address virtualization.
  23. 23. White Paper • There will be a need to establish a de facto standard or certification to allow cloud customers to understand the security level differences the cloud vendor may have. Standards like SAS 70 Type 2 have listed controls around confidentiality, integrity and availability of the data on systems. It recommends that service providers conduct regular third-party risk assessments and make the results available to customers. Other domains addressed in the report include compliance and audit, recommending service providers adhere to SAS 70 Type II audits and ISO 27001 certifications, as well as a greater uniformity in comprehensive certification scoping. Encryption and key management, storage issues, application security concerns and virtualization security problems are also addressed in detail. The other issues addressed are trusted relationships, federated services, auditable standards, third-party monitors, pseudo-clouds and other solutions. • Cloud Vendors like Google encrypts data in transit and gives admins the option to turn on SSL. The data is spread across multiple machines, so you don't have a single machine to attack like the typical environment; this model is more secure than the encrypted server model. Production data is not mixed with testing data, customer access is not mixed with developer access, and sensitive workloads are kept separate from open or promiscuous applications. Security patches are kept A unified approach that up to date, configurations are monitored for breaches, workarounds are applied for zero-day threats and malware detection systems are constantly updated. describes the Interoperability Virtual images, hard drives and backups are encrypted and password-protected. standards and its compliance • Some groups are working on a Private Virtual Infrastructure (PVI) in which, the requirements may be data center is "under the control of the information owner" while the fabric is essential. Vendors like Azure under the control of the operator (of the cloud service). The cloud vendor and runs non-.NET technologies cloud customer are required to share certain types of security information, and service level agreements (SLAs) along with the roles and responsibilities of all like PHP natively and parties in the agreement. Every service in the cloud must be able to report security developers can expose their properties, and that the properties must be cryptographically bound and signed. services over several Future Challenge standards, including REST and No long-term vision for cloud computing interoperability is visualized. So far the SOAP and developers can consensus among the cloud vendors on openness and interoperability in cloud computing is not yet well thought. A unified approach that describes the configure applications hosted Interoperability standards and its compliance requirements may be essential. on Azure to communicate Vendors like Azure runs non-.NET technologies like PHP natively and developers with end users via a browser, can expose their services over several standards, including REST and SOAP and developers can configure applications hosted on Azure to communicate with end on-premises servers or even users via a browser, on-premises servers or even other clouds. other clouds. Cloud computing change management Switching over to cloud computing environment brings in lots of change management issues with the organizations and it has to be a decision of whole company. On one side IT department may be resistant to do certain things because they are going to lose control, on the other hand business users may become aggressive because they may not have to contact internal IT department to host or change their application since it will be done by cloud vendors. The whole switchover program will call for systematic process to effect the changes by taking all stakeholders in to confidence.
  24. 24. White Paper Migration of application and data to cloud environment will require very clear cut policy, understanding and collaboration between senior management, business users, IT users ,finance department and customers because everyone will have vested interest. Every stakeholder has pros and cons in switching to cloud environment which will have to be justified and approved by management as a policy. Many times decoupling business processes from software applications will call for transformational change in the form of service-oriented architecture (SOA) and business process management (BPM).Also re-architecture of certain applications to take advantage of Web-oriented architectures preferred in cloud that exploit the distributed data and distributed processing model would require development team to restrategize and restructure the application. The changes in billing model, consumption pattern of IT services including compliance and regulatory fulfillment, back-up, and disaster recovery and business continuity management, data privacy will call for significant changes in organizations policy. In summary The new trend in innovations The future of cloud computing will bring in lot of maturity In today’s economy, with limited budgets and a highly dynamic market, it is critical and reliability in cloud to be able to refocus organizations resources and check the viable options with cloud computing which can provide expected benefits. computing along with better governance and security Without getting trapped in to the cloud hype cloud customers can start in experimentation and pilot mode in public cloud with non critical applications and models once technologies once the security and service level assurance related issues improves ,they can start functioning seamlessly migrate hosting environment and data centres to dedicated private cloud services. and reliably. With drastic The market right now is really a subset of the managed hosting business - which is improvements in WAN speed, a $9 to $10 billion a year that just continues to grow. The computing environment the future trend will of future will always be cloudy with variety of sizes and shapes touching each other, one can chose the right environment, tools and cloud vendor to prove that increasingly see the front end organization is always on 7th cloud in it computing. of applications separated from Widespread acceptance of virtualization environment and clouds will happen in the backend which has stages - a couple of issues associated with data security, interoperability, separation scalable databases. of service layer still need to get addressed. The new trend in innovations will bring in lot of maturity and reliability in cloud computing along with better governance and security models once technologies start functioning seamlessly and reliably. With drastic improvements in WAN speed, the future trend will increasingly see the front end of applications separated from the backend which has scalable databases. This may happen more easily and effectively even by allowing companies to host the data inside their own private data centers and simply allow the front end apps running in the cloud to tunnel in and connect to the data. There could be move towards development of offline component of web application in addition to the standard online component which stores the application locally and caches user data so that any hiccups to a Web session or connectivity outages allow users to continue to work uninterrupted when Internet connectivity is restored, any work and changes made offline are simply synced up with the online version of the application.