1. Applications of Cloud Computing
1
Cloud service providers provide various applications in the field of art, business,
data storage and backup services, education, entertainment, management, social
networking, etc.
The most widely used cloud computing applications are given below -
2. 2
• The objective of this course is to provide the comprehensive
knowledge of Cloud Computing concepts, technologies, and
applications by introducing and researching state-of-the-art in Cloud
Computing fundamental issues, technologies, applications and
implementations.
• Introduce the concepts of Cloud Computing to understand the
Services &Storage. Gain knowledge of Resource Management and
Security in Cloud.
• Another objective is to expose the students to frontier areas of Cloud
Computing and information systems, while providing sufficient
foundations to enable further study and research.
Course Objective
3. 3
• The student should have basic knowledge of fundamental of
networking, distributed computing system.
• Web technology, web services and server concept and
knowledge of information and cyber security
Prerequisite and Recap
4. Brief Introduction about the Subject with Videos
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Cloud Computing is the delivery of computing services such as servers, storage, databases,
networking, software, analytics, intelligence, and more, over the Cloud (Internet).
Cloud Computing provides an alternative to the on-premises datacentre. With an
on-premises datacentre, we have to manage everything, such as purchasing and installing
hardware, virtualization, installing the operating system, and any other required
applications, setting up the network, configuring the firewall, and setting up storage for data.
After doing all the set-up, we become responsible for maintaining it through its entire
lifecycle.
But if we choose Cloud Computing, a cloud vendor is responsible for the hardware purchase
and maintenance. They also provide a wide variety of software and platform as a service. We
can take any required services on rent. The cloud computing services will be charged based
on usage.
https://www.youtube.com/watch?v=M988_fsOSWo&t=4s
https://www.youtube.com/watch?v=JYq1AQkMdhE
https://www.youtube.com/watch?v=iSG_72VNBVs&t=55s
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• Introduction to cloud computing
• Evolution of cloud computing
– Desktop computing
– client server computing
– cluster computing
– grid computing
– cloud computing
• Underlying Principles of Parallel Computing
• Distributed Computing
• Characteristics of cloud computing
– Elasticity in Cloud
– On Demand Provisioning
• EC2 Instances and its types
• Cloud Economics
Unit Content
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Topic Objective
Cloud computing
To Understand the cloud computing and why is
it required
Evolution of
cloud computing
Study about evolution of various computing
techniques
Parallel and
distributed
computing
Knowledge about parallel and distributed
computing
Characteristics Analysis of importance of cloud computing
Topic Objective
7. What Happened Before the Cloud Technology Emerged?
✔ What was the approach to run an IT application or business projects
in traditional model of computing?
Buy stacks of servers and
other hardware components
Maintain and upgrade
the servers
Recruit network professional
Major Disadvantages of Traditional Computing:
✔ Increase in expenditure cost.
✔ Poor scalability and flexibility based on varying traffic.
✔ Resources underutilization because most of the time servers are idle.
✔ Maintenance overhead.
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8. ▪ In the simplest terms, “cloud computing makes IT resources as
subscription oriented services wherein from third party service providers
you simply rent the computing capability whatever you need for how
long you need and pay for what you have consumed”.
▪ Real-time Example of Cloud Computing: For Backup and recovery Google
provides Dropbox, Google Drive and Amazon provides S3.
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Concept of Cloud Computing
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• Cloud computing is the on demand delivery of compute power
database storage, application and other IT resources through a cloud
service platform via internet with pay as you go.
• Cloud Computing provides us a means by which we can access the
applications as utilities, over the Internet.
• It allows us to create, configure, and customize applications online.
Example- cloud service platform
• Amazon web service
• Microsoft Azure
• Alibaba
• Google
• oracle
Introduction to cloud computing(CO1)
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• The term Cloud refers to a Network
or Internet.
• - In other words, we can say that
Cloud is something, which is
present at remote location.
• - Cloud can provide services over
network, i.e., on public networks or
on private networks, i.e., WAN,
LAN or VPN.
• - Applications such as e-mail, web
conferencing, customer relationship
management (CRM),all run in
cloud.
Cloud(CO1..)
11. The National Institute of Standards and Technology (NIST) has a more
comprehensive definition of cloud computing. It describes cloud computing
as "a model for enabling ubiquitous, convenient, on-demand network access
to a shared pool of configurable computing resources (e.g., networks,
servers, storage, applications and services) that can be rapidly provisioned
and released with minimal management effort or service provider
interaction."
Cloud Computing Definition
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12. Why cloud computing(CO1)
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• Small as well as large IT companies, follow the traditional methods to
provide the IT infrastructure. That means for any IT company, we
need a Server Room that is the basic need of IT companies.
• In that server room, there should be a database server, mail server,
networking, firewalls, routers, modem, switches, QPS (Query Per
Second means how much queries or load will be handled by the
server), configurable system, high net speed, and the maintenance
engineers.
• To establish such IT infrastructure, we need to spend lots of money.
To overcome all these problems and to reduce the IT infrastructure
cost, Cloud Computing comes into existence.
13. • Traditional Computing
– Buy & Own
• Hardware, System
Software, Applications
often to meet peak needs.
– Install, Configure, Test,
Verify
– Manage
– Finally, use it
• Cloud Computing
– Subscribe
– Use
– $ - pay for what you use,
based on QoS
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Why cloud computing(CO1)
14. Parallel Computing (CO1)
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• Parallel computing is a type
of computation in which
many calculations or the
execution of processes are
carried out simultaneously.
• Large problems can often be
divided into smaller ones,
which can then be solved at the
same time.
• It saves time and money as
many resources working
together will reduce the time.
15. Evolution of cloud computing (CO1..)
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Distributed Systems:
• It is a composition of multiple independent systems but all of
them together are depicted as a single entity to the users.
• The purpose of distributed systems is to share resources and
also use them effectively and efficiently.
• Distributed systems possess characteristics such as
scalability, concurrency, continuous availability,
heterogeneity, and independence in failures.
16. Distributed Computing (CO1)
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• A distributed computer system
consists of multiple software
components that are on multiple
computers, but run as a single
system.
• The computers that are in a
distributed system can be
physically close together and
connected by a local network, or
they can be geographically distant
and connected by a wide area
network
• Such systems are independent of
the underlying software
17. Client/Server computing (CO1)
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• In client/server computing, a server takes requests from client
computers and shares its resources, applications and/or data with the
clients on the network
• a client is a computing device that initiates contact with a server in
order to make use of a shareable resource.
• A server may serve multiple clients at the same time while a client is in
contact with only one server.
• Both the client and server usually communicate via a computer
network but sometimes they may reside in the same system.
19. Client/Server computing (CO1)
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Characteristics of Client Server Computing:
• The client server computing works with a system of request and
response. The client sends a request to the server and the server
responds with the desired information.
• The client and server should follow a common communication
protocol so they can easily interact with each other. All the
communication protocols are available at the application layer.
• A server can only accommodate a limited number of client requests
at a time. So it uses a system based to priority to respond to the
requests.
• An example of a client server computing system is a web server. It
returns the web pages to the clients that requested them.
20. Parallel vs Distributed Computing
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Parallel Computing Distributed Computing
Many operations are performed
simultaneously.
System components are located at
different locations.
Single computer is required. Uses multiple computers.
Multiple processors perform multiple
operations.
Multiple computers perform multiple
operations.
It may have shared or distributed
memory
It only supports distributed memory
Improves the system performance. Improves system scalability, fault
tolerance and resource sharing
capabilities.
Processors communicate with each
other through bus.
Computer communicate with each other
through message passing.
22. Evolution of cloud computing (CO1..)
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Mainframe computing:
• Mainframes which first came into existence in 1951 are highly
powerful and reliable computing machines.
• These are responsible for handling large data such as massive
input-output operations.
• Even today these are used for bulk processing tasks such as online
transactions etc.
• These systems have almost no downtime with high fault tolerance.
• After distributed computing, these increased the processing
capabilities of the system. But these were very expensive.
24. Cluster vs Grid Computing
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Cluster Computing
A cluster computer refers to a network of same type of computers whose
target is to work as a same unit. Such a network is used when a resource
hungry task requires high computing power or memory. Two or more
same types of computers are clubbed together to make a cluster and
perform the task.
Grid Computing
Grid computing refers to a network of same or different types of
computers whose target is to provide a environment where a task can be
performed by multiple computers together on need basis. Each
computer can work independently as well.
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Key Cluster Computing Grid Computing
Type Nodes or computers has to be of
same type, like same CPU, same OS.
Cluster computing needs a
homogeneous network
Nodes or computers can be of same or
different types. Grid computer can have
homogeneous or heterogeneous
network.
Task Computers of Cluster Computing are
dedicated to single task and they
cannot be used to perform any
other task.
Computers of Grid Computing can
leverage the unused computing
resources to do other tasks.
Location Computers of Cluster computing are
co-located and are connected by
high speed network bus cables.
Computers of Grid Computing can be
present at different locations and are
usually connected by internet or a low
speed network bus.
Topology Cluster computing network is
prepared using a centralized
network topology.
Grid computing network is distributed
and have a de-centralized network
topology.
Cluster vs Grid Computing
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Key Cluster Computing Grid Computing
Task
Scheduling
A centralized server controls the
scheduling of tasks in cluster
computing.
In Grid Computing, multiple servers
can exist. Each node behaves
independently without need of any
centralized scheduling server.
Resource
Manager
Cluster Computing network has a
dedicated centralized resource
manager, managing the
resources of all the nodes
connected.
In Grid Computing, each node is
independently managing each own
resources.
Autonomy In Cluster computing network,
whole system works as a unit.
In Grid computing network, each node
is independent and can be taken down
or can be up at any time without
impacting other nodes.
Cluster vs Grid Computing
27. Utility Computing
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• Utility computing is a service provisioning model. This service
provisioning modeling provides computing resources and infrastructure
management to the customer as per their demand.
• The customers are charged for them as you go basis without any
upfront cost. The utility model maximizes the efficient use of resources
while minimizing the associated cost.
• Utility computing has an advantage that there will be a low initial cost
to acquire computer resources.
• The customer can access the infinite amount of computing solution
with the help of the internet or a virtual private network. The provider
will perform the backend infrastructure and computing resources
management.
28. Continue
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• On the basis of above computing, there was emerged of cloud
computing concepts that later implemented.
• At around in 1961, John MacCharty suggested in a speech at MIT that
computing can be sold like a utility, just like a water or electricity
• In 1999, Salesforce.com started delivering of applications to users
using a simple website.
• The applications were delivered to enterprises over the Internet, and
this way the dream of computing sold as utility were true.
29. Cloud Service Providers
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• 2002- Amazon launched Amazon Web Services (AWS) providing services like
storage, computation and even human intelligence.
• 2006- Amazon launched Amazon Web Services (AWS) with Elastic Compute
Cloud (EC2) which allows users to launch computing resources on
pay-per-use.
• 2008- Google launched its Google App Engine (GAE) Platform-as-a-Service
(PaaS), allowing developers to host web applications in its managed data
centers.
• 2010- Microsoft, entered the cloud market with the launch of its cloud
computing platform Azure.
• 2011- IBM launched Smart Cloud then renamed it as IBM's Bluemix and
launched in 2014 for the academic organizations concerning to PaaS services.
• 2011- IIT Delhi launched Baadal cloud for Infrastructure-as-a-Service (IaaS)
services.
• 2013- C-DAC Chennai launched Meghdoot cloud platform for IaaS services
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Characteristics of cloud computing(CO1)
• On-demand self-service:
Cloud computing resources can be provisioned without human
interaction from the service provider. In other words, the user can
provision additional computing resources (storage space, virtual
machine instances, database instances etc.) as needed without going
through the cloud service provider.
• Broad network access:
Cloud computing resources are available over the network and can be
accessed by diverse customer platforms. It other words, cloud services
are available over a network—ideally high broadband communication
link—such as the internet, or in the case of a private clouds it could be
a local area network (LAN).
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• Multi-tenancy and resource pooling:
Cloud computing resources are designed to support a multi-tenant
model. Multi-tenancy allows multiple customers to share the same
applications or the same physical infrastructure while retaining privacy
and security over their information.
Resource pooling means that multiple customers are serviced from the
same physical resources. Providers’ resource pool should be very large
and flexible enough to service multiple client requirements and to
provide for economy of scale. When it comes to resource pooling,
resource allocation must not impact performances of critical
applications.
Characteristics of cloud computing(CO1)
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Characteristics of cloud computing(CO1)
• Rapid elasticity and scalability:
One of the great things about cloud computing is the ability to quickly provision
resources in the cloud as users need them. And then to remove them when they
don’t need them. Cloud computing resources can scale up or down rapidly and, in
some cases, automatically, in response to business demands. It is a key feature of
cloud computing. The usage, capacity, and therefore cost, can be scaled up or
down with no additional contract or penalties.
• Measured service:
Cloud computing resources usage is metered and users pay accordingly for what
they have used. Resource utilization can be optimized by leveraging
charge-per-use capabilities. This means that cloud resource usage—whether
virtual server instances that are running or storage in the cloud—gets monitored,
measured and reported by the cloud service provider. The cost model is based on
“pay for what you use”—the payment is variable based on the actual consumption
by the user.
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Cloud Elasticity Cloud Scalability
Elasticity is used just to meet the
sudden up and down in the workload
for a small period of time.
Scalability is used to meet the static
increase in the workload.
Elasticity is used to meet dynamic
changes, where the resources need can
increase or decrease.
Scalability is always used to address the
increase in workload in an organization.
.
Elasticity is commonly used by small
companies whose workload and
demand increases only for a specific
period of time.
Scalability is used by giant companies
whose customer circle persistently
grows in order to do the operations
efficiently.
It is a short term planning and adopted
just to deal with an unexpected
increase in demand or seasonal
demands.
Scalability is a long term planning and
adopted just to deal with an expected
increase in demand.
Elasticity vs Scalability
35. Advantages of Cloud Computing
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1. Cost efficiency: The biggest reason behind companies shifting to Cloud
Computing is that it takes considerably lesser cost than any on-premise
technology. Now, companies need not store data in disks anymore as the
cloud offers enormous storage space, saving money and resources.
2. High speed: Cloud Computing lets us deploy the service quickly in fewer
clicks. This quick deployment lets us get the resources required for our system
within minutes.
3. Excellent accessibility: Storing information in the cloud allows us to access it
anywhere and anytime regardless of the machine making it a highly accessible
and flexible technology of the present times.
4. Back-up and restore data: Once data is stored in the cloud, it is easier to get
its back-up and recovery, which is quite a time-consuming process in
on-premise technology.
5. Manageability: Cloud Computing eliminates the need for IT infrastructure
updates and maintenance since the service provider ensures timely,
guaranteed, and seamless delivery of our services and also takes care of all
the maintenance and management of our IT services according to the
service-level agreement (SLA).
36. 1. Vulnerability to attacks: Storing data in the cloud may pose serious
challenges of information theft since in the cloud every data of a
company is online. Security breach is something that even the best
organizations have suffered from and it’s a potential risk in the cloud as
well. Although advanced security measures are deployed on the cloud,
still storing confidential data in the cloud can be a risky affair.
2. Network connectivity dependency: Cloud Computing is entirely
dependent on the Internet. This direct tie-up with the Internet means
that a company needs to have reliable and consistent Internet service as
well as a fast connection and bandwidth to reap the benefits of Cloud
Computing.
3. Downtime: Downtime is considered as one of the biggest potential
downsides of using Cloud Computing. The cloud providers may
sometimes face technical outages that can happen due to various
reasons, such as loss of power, low Internet connectivity, data centers
going out of service for maintenance, etc. This can lead to a temporary
downtime in the cloud service.
36/2
Disadvantages of Cloud Computing
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37. • 4. Vendor lock-in: When in need to migrate from one cloud platform
to another, a company might face some serious challenges because
of the differences between vendor platforms. Hosting and running
the applications of the current cloud platform on some other
platform may cause support issues, configuration complexities, and
additional expenses. The company data might also be left vulnerable
to security attacks due to compromises that might have been made
during migrations.
• 5. Limited control: Cloud customers may face limited control over
their deployments. Cloud services run on remote servers that are
completely owned and managed by service providers, which makes it
hard for the companies to have the level of control that they would
want over their back-end infrastructure.
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Disadvantages of Cloud Computing
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1. Which is/are true regarding cloud computing?
(a) It does not provide ubiquitous access
(b) It provides on-demand network access
(c) Resources can not be used with no management effort
(d) None of these
Quiz
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2. Which of the following option is a service provided by AWS?
(a) EC10
(b) EC2
(c) EC3
(d) None of the above
Quiz
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3. Which is the biggest are of concern in cloud computing?
(a) Security
(b) Scalability
(c) Elasticity
(d) On Demand Provisioning
Quiz
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Cloud provisioning means allocating a cloud service provider’s resources
to a customer. It is a key feature of cloud computing. It refers to how a
client gets cloud services and resources from a provider.
3 Cloud Provisioning Types
• Advanced Cloud Provisioning
Also known as “post-sales cloud provisioning,” customers get the
resources upon contract or service signup. They sign formal contracts
with the cloud service provider. The provider then prepares and delivers
the agreed-upon resources or services. The customers are charged a flat
fee or billed every month.
• Dynamic Cloud Provisioning
Also referred to as “on-demand cloud provisioning,” customers are
provided with resources on runtime. In this delivery model, cloud
resources are deployed to match customers’ fluctuating demands.
Cloud Provisioning
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Deployments can scale up to accommodate spikes in usage and down
when demands decrease. Customers are billed on a pay-per-use basis.
When this model is used to create a hybrid cloud environment, it is
sometimes called “cloud bursting.”
• User Cloud Provisioning:
In this delivery model, customers add a cloud device themselves. Also
known as “cloud self-service,” clients buy resources from the cloud
service provider through a web interface or portal. The model usually
involves creating a user account and paying for resources with a credit
card. The resources are quickly spun up and made available for use
within hours, if not minutes. An example of this includes an employee
purchasing cloud-based productivity applications via Microsoft 365 or G
Suite.
Cloud Provisioning
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Cloud provisioning has several benefits that are not available with
traditional provisioning approaches, such as:
Scalability: The traditional information technology (IT) provisioning model
requires organizations to make large investments in their on-premises
infrastructure. That needs extensive preparation and forecasting of
infrastructure needs since on-premises infrastructures are often set up to
last for many years. The cloud provisioning model, meanwhile, lets
companies simply scale up and down their cloud resources depending on
their short-term usage requirements.
Speed: Organizations’ developers can quickly spin up several workloads
on-demand, so the companies no longer require IT administrators to
provide and manage computing resources.
Cloud Provisioning Benefits
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Cost savings: While traditional on-premises technology requires large
upfront investments, many cloud service providers let their customers
pay for only what they consume. But the attractive economics of cloud
services presents challenges, too, which may require organizations to
develop a cloud management strategy.
Cloud Provisioning Benefits
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Like any other technology, cloud provisioning also presents several
challenges, including:
Complex management and monitoring: Organizations may need
several provisioning tools to customize their cloud resources. Many
also deploy workloads on more than one cloud platform, making
viewing everything on a central console more challenging.
Resource and service dependencies: Cloud applications and workloads
often tap into basic infrastructure resources, such as computing,
networking, and storage. But public cloud service providers offer
higher-level ancillary services like serverless functions and machine
learning (ML) and big data capabilities. Such services may carry
dependencies that can lead to unexpected overuse and surprise costs.
Cloud Provisioning Challenges
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Policy enforcement: User cloud provisioning helps streamline requests
and manage resources but requires strict rules to make sure unnecessary
resources are not provided. That is time-consuming since different users
require varying levels of access and frequency. Setting up rules to know
who can provide which resources, for how long, and with what budgetary
controls can be difficult.
Cloud Provisioning Challenges
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4. Which of the following is not a cloud computing platform?
(a) Microsoft Azure
(b) Amazon EC2
(c) IBM Deep Blue
(d) Google 101
Quiz
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5. Which are essential characteristics of cloud computing?
(a) On-demand self service
(b) Resource pooling
(c) Rapid elasticity
(d) None of these
(e) All of the above
Quiz
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6. What is Cloud Computing replacing?
a) Corporate data centers
b) Expensive personal computer hardware
c) Expensive software upgrades
d) All of the above
Quiz
50. EC2 Instances
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• An Amazon EC2 instance is a virtual server in Amazon's
Elastic Compute Cloud (EC2) for running applications on the
Amazon Web Services (AWS) infrastructure.
• AWS is a comprehensive, evolving cloud computing platform;
EC2 is a service that enables business subscribers to run
application programs in the computing environment. It can
serve as a practically unlimited set of virtual machines (VMs).
• Amazon provides various types of instances with different
configurations of CPU, memory, storage and networking
resources to suit user needs. Each type is available in various
sizes to address specific workload requirements.
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Instances are created from Amazon Machine Images (AMI).
The machine images are like templates. They are configured
with an operating system (OS) and other software, which
determine the user's operating environment. Users can
select an AMI provided by AWS, the user community or
through the AWS Marketplace. Users also can create their
own AMIs and share them.
EC2 Instances
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• Operating system: EC2 supports many OSes, including Linux,
Microsoft Windows Server, CentOS and Debian.
• Persistent storage: Amazon's Elastic Block Storage (EBS) service
enables block-level storage volumes to be attached to EC2 instances
and be used as hard drives. With EBS, it is possible to increase or
decrease the amount of storage available to an EC2 instance and
attach EBS volumes to more than one instance at the same time.
• Elastic IP addresses: Amazon's Elastic IP service lets IP addresses be
associated with an instance. Elastic IP addresses can be moved from
instance to instance without requiring a network administrator's
help. This makes them ideal for use in failover clusters, for load
balancing, or for other purposes where there are multiple servers
running the same service.
Features of EC2 Instances
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Features of EC2 Instances
Amazon CloudWatch: This web service allows for the monitoring of AWS
cloud services and the applications deployed on AWS. CloudWatch can be
used to collect, store and analyze historical and real-time performance
data. It can also proactively monitor applications, improve resource use,
optimize costs and scale up or down based on changing workloads.
Automated scaling: Amazon EC2 Auto Scaling automatically adds or
removes capacity from Amazon EC2 virtual servers in response to
application demand. Auto Scaling provides more capacity to handle
temporary increases in traffic during a product launch or to increase or
decrease capacity based on whether use is above or below certain
thresholds.
Bare-metal instances: These virtual server instances consist of the
hardware resources, such as a processor, storage and network. They are
not virtualized and do not run an OS, reducing their memory footprint,
providing extra security and increasing their processing power.
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• Amazon EC2 Fleet: This service enables the deployment and
management of instances as a single virtual server. The Fleet
service makes it possible to launch, stop and terminate EC2
instances across EC2 instance types with one action. Amazon EC2
Fleet also provides programmatic access to fleet operations using
an API. Fleet management can be integrated into existing
management tools. With EC2 Fleet, policies can be scaled to
automatically adjust the size of a fleet to match the workload.
• Pause and resume instances: EC2 instances can be paused and
resumed from the same state later on. For example, if an
application uses too many resources, it can be paused without
incurring charges for instance usage.
Features of EC2 Instances
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Instance types are grouped into families based on target
application profiles. These groups include the following:
• General purpose: A general purpose instance is a VM that
is designed to handle a variety of workloads. General
purpose instances are optimized to have a high number of
CPU cores, on-demand storage and memory. Some
common use cases for general purpose instances include
web server hosting and software development and
testing.
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• Compute optimized: Compute optimized instances are used to run
big data applications that require large amounts of processing
power and memory on the AWS cloud. These instances are designed
and optimized for running computational and data-intensive
applications that require fast network performance, extensive
availability and high input/output (I/O) operations per second
(IOPS). Examples of types of applications includes scientific and
financial modeling and simulation, machine learning, enterprise
data warehousing and business intelligence.
• Graphics processing unit (GPU):These instances provide a way to
run graphics-intensive applications faster than with the standard
EC2 instances. Systems that rely on GPUs include gaming and design
work. For example, Linux distributions often take advantage of GPUs
for rendering graphical user interfaces, improving compression
speeds and speeding up database queries.
Types of EC2 Instances
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• Memory optimized: Memory optimized instances use a high-speed,
solid-state drive to provide ultra-fast access to data and deliver high
performance. These instances are ideal for applications that require
more memory and less CPU power, including open source databases,
real-time big data analytics and in-memory caches.
• Storage optimized: Storage optimized instances are ideal for
applications that require high I/O performance, such as NoSQL
databases that store and retrieve data in real time. They're also well
suited for memory-intensive applications such as data processing, data
warehousing, analytics workloads and log processing.
• Micro: A micro instance is meant for applications with low throughput.
The micro instance type can serve as a small database server, as a
platform for software testing or as a web server that does not require
high transaction rates.
Types of EC2 Instances
58. Cloud Economics
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Cloud economics is the study of the benefits, costs, and
principles of cloud computing. It refers to the knowledge
about the financial aspects of cloud computing.
Cloud economics involves understanding:
• The total cost of ownership for cloud computing
• The benefits of cloud computing over on-premises models
• Cost optimization strategies when operating in the cloud.
Cloud economics is not just about costs in actual monetary
terms, but also about the opportunity costs of the cloud and
the peculiarities of managing costs in a highly dynamic
environment.
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Cloud Economics: Key Areas
Cloud total cost of ownership (TCO): TCO is the total cost of adopting,
operating, and provisioning cloud infrastructure. TCO is helpful for
understanding return on investment.
Businesses have always performed TCO analysis for traditional IT
infrastructure. However, performing TCO analysis for cloud computing can be
challenging because the environment is inherently more complex and
dynamic than on-premises environments.
Getting an accurate TCO for cloud computing means capturing the purchase
price of on-premises vs. cloud solutions as well as the intangible costs of
either solution. In practice, this means:
• Calculating the cost of your current IT infrastructure
• Estimating the total cost of cloud adoption (including migration costs)
• Quantifying the intangible benefits of the cloud
The overall goal is to achieve a lower TCO compared to on-premises
infrastructure, but it can also be about justifying a higher TCO by listing the
intangible benefits associated with the cloud, such as agility and greater
speed to market.
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CAPEX to OPEX switch
Cloud computing uses a different pricing model from traditional
computing and this affects how businesses account for cost. The move
from capital expenses (CAPEX) to operating expenses (OPEX) is a key
difference, and it affects how businesses gauge profitability in the
cloud.
In traditional IT environments, computing costs are predictable and
relatively fixed. A business pays for the computing capacity it needs
upfront and uses the capacity over time. Calculating the total cost of
ownership in this setup is fairly straightforward. In contrast, cloud
providers adopt a pay-as-you-go model and most services do not
require any upfront commitment.
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The implication is that your business will have variable cloud computing
bills that depend on the services you use and how they are consumed.
While this model may save your business upfront capital expenditure, it
can become a huge financial suck if resources are not managed properly.
When moving to or operating in the cloud, it is important to develop and
implement cloud cost optimization strategies that will help regulate your
cloud costs. For example, CloudZero’s cost intelligence platform helps
you track the cost of migrating to AWS and thereafter provides insights
that help you reduce your AWS bill.
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Cloud Economics: Key Areas
Elasticity:
With on-premises systems and traditional IT environments, there’s a
cost associated with anticipating demand. Traditional IT
environments are built to anticipate peaks, which means you buy and
maintain excess computing capacity in anticipation of those peak
days. For most businesses, that’s a significant cost for something
that’s rarely — if ever — used.
Cloud computing eliminates the need for over-provisioning because
you pay only for what you use. Cloud computing platforms, such as
AWS, dynamically allocate resources to projects and processes,
ensuring that a business has the right amount of resources it needs at
any given time. This increases cost efficiency and allows businesses to
optimize resource usage.
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Cloud Economics: Key Areas
This elasticity is one of the most appealing aspects of cloud computing
and a major selling point when making a case for switching to the cloud.
On-demand pricing:
On-demand pricing is a fundamentally different economic approach to
computing power. Outside of the cloud, you’d buy a fixed amount of
computing capacity or a physical server that you own. But in the cloud,
you switch to on-demand pricing, so your costs become elastic.
This means cloud costs can quickly spiral out of control if you are not
monitoring them regularly and making data-driven decisions.
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7. Which of these companies is not a leader in cloud computing?
a) Google
b) Microsoft
c) Amazon
d) Blackboard
Quiz
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9. What is the disadvantage of cloud computing?
(a) It requires constant internet connection.
(b) It does not support group collaboration.
(c) It provides limited storage.
(d) None of these
Quiz
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10. Cloud computing is a distributed computing model.
(a) True
(b) False
Quiz
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11. Which of the following a company must consider before moving
towards cloud computing?
(a) Employee Satisfaction
(b) Potential cost reduction
(c) Information Sensitivity
(d) All of these
Quiz
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12. What is Cloud computing?
(a) Way to organize computers
(b) Lightweight software
(c) Computing resources that can be accessed on demand
(d) World Wide Web
Quiz
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Youtube/other Video Links:
NPTEL/ Youtube/ Faculty Video Link:
• https://acloud.guru/
• https://nptel.ac.in/courses/106/105/106105223/
• https://nptel.ac.in/courses/106/104/106104182/
• https://nptel.ac.in/courses/106/105/106105167/
• https://aws.amazon.com/
Faculty Video Links, Youtube & NPTEL Video
Links and Online Courses Details
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1. Which of the following best describes cloud computing?
(a) It is always going to be less expensive and more secure than
traditional computing
(b) The data can be accessed from any computer in the world using
internet connection
(c) Few companies are investing in the technology as it is very risky
MCQs
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2. Which of the following computing resources are provided by the
cloud computing model?
(a) Servers
(b) Storage
(c) Applications
(d) All of the above
MCQs
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3. Which of the following is not true about distributed systems?
(a) It is a composition of multiple independent systems
(b) all the systems together are depicted as a single entity to the users.
(c) The computers that are in a distributed system can be arranged
physically close together and connected by a local network
(d) Systems cannot be located at geographically distant locations
MCQs
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4. Which of the following is true about client server systems?
(a) a server is a computing device that initiates contact with a client in
order to make use of a shareable resource.
(b) In client/server computing, a server takes requests from client
computers and shares its resources, applications and/or data with the
clients on the network
(c) A client may serve multiple servers at the same time while a server
is in contact with only one client.
MCQs
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5. Which of the following is not true about cluster computing?
(a) Computers of Cluster Computing are dedicated to single task and
they cannot be used to perform any other task.
(b) Cluster computing network is prepared using a decentralized
network topology.
(c) Cluster Computing network has a dedicated centralized resource
manager, managing the resources of all the nodes connected.
MCQs
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6. Which of the following is true about grid computing?
(a) Nodes or computers has to be of same type, like same CPU, same
OS.
(b) Distributed Computing network has a dedicated centralized resource
manager, managing the resources of all the nodes connected.
(c) Nodes or computers can be of same or different types. Grid
computer can have homogeneous or heterogeneous network.
MCQs
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7. Which of the following is not a characteristic of Cloud
Computing?
(a) On Demand Service
(b) Resource Pooling
(c) Rapid Elasticity
(d) Offline Services
(e) Measured Services
MCQs
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8. Match the following
(1) Advanced Cloud
Provisioning
(i) On Demand Cloud Provisioning
(2) Dynamic Cloud
Provisioning
(ii) Cloud Self Service
(3) User Cloud
Provisioning
(iii) Post sales Cloud Provisioning
(a) (1)(i), (2)(ii) and (3)(iii)
(b) (1)(iii), (2)(i) and (3)(ii)
(c) (1)(ii), (2)(i) and (3)(iii)
MCQs
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9. Which type of EC2 instance can be used in Real Time
Applications?
(a) Compute Optimized
(b) Memory Optimized
(c) Storage Optimized
(d) Micro
MCQs
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10. Which type of EC2 instance can be used for graphic intensive
applications?
(a) Compute Optimized
(b) Memory Optimized
(c) Storage Optimized
(d) Graphical Processing Unit
MCQs
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• Define cloud computing.
• Write short notes on “on demand self service” and “elasticity of
demand”.
• Discriminate between cluster computing and grid computing.
• List out essential characteristics of cloud computing.
• Explain cloud computing evolution in terms of computing
technique.
• Identify the need of cloud computing with example.
• Discuss the services of various cloud vendors.
• Discuss advantages and disadvantages of cloud computing.
Expected Questions for Exam
82. Unit Recap
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• cloud computing is the on-demand availability of computer system
resources, especially data storage and computing power over the
internet.
• there are number of vendors provide different services to the user over
internet.
• Amazon web service, Microsoft azure, oracle, salesforce, alibaba are
the popular vendors.
• cloud computing technique emerged after various computing
techniques.
• Cloud computing is a combination of grid and utility computing.
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• There are number of features of cloud computing like on demand self
service, resource pooling, multi tenancy, rapid elasticity, security etc.
• Elastic Compute Cloud (EC2) is a service provided by Amazon Web
Services (AWS), which allows users to launch computing resources on
pay-per-use.
• Various types of EC2 instances can be created as per the requirement
e.g. general purpose, compute optimized, memory optimized, storage
optimized, micro etc.
• Cloud economics is the study of the benefits, costs, and principles of
cloud computing. It refers to the knowledge about the financial
aspects of cloud computing.
Unit Recap