2. What is Cloud Computing?
• “Cloud” is simply a metaphor for
the internet
• Users do not have or need
knowledge, control, ownership in
the computer infrastructure
• Users simply rent or access the
software, paying only for what
they use
• Simple Introduction to Cloud Comput
Compu
3. History of Cloud Computing
• Concept dating back to the 1960’s by John McCarthy, a
computer scientist, brought up the idea that "computation
may someday be organized as a public utility”
• Idea that revolutionized Cloud Computing: Moving from
clustering computing to grid computing
– Clustering
– Grid
• “In some ways, the cloud is a natural next step from the grid-
utility model,” said Frank Gens, an analyst at the research firm
IDC
4. The “Super Computer” in the
Sky
• Two ways of building a “super computer” with enough
power that users can plug into according to their needs
at a particular time:
– Blue Gene Approach
– Google's Approach
5. Early Leaders in the Industry
• In 2007, Microsoft made available free software,
www.live.com that connects its Windows operating
system to software services delivered on the Internet
• Launched in July 2002, Amazon Web Services provided
online services for other web sites or client-side
applications
• 3tera launched its AppLogic system in February, 2006
• IBM’s system introduced in the mid 2000’s is called Blue
Cloud
6. Potential Issues
• Data residency – time delay between data being
requested and delivered
• Security and confidentiality of data being stored outside
the company
• Business buy-in; convincing companies of the
infrastructure and reliability
7. Functionality
• Cloud computing is an emerging technology that is
revolutionizing IT infrastructures and flexibility, and
software as a service (SaaS)
• During this economic time of recession, there are huge
cost-reduction pressures and cloud computing allows
businesses to do just that by tapping into cloud
computing platforms on a pay-as-you-go basis
• Customer retention is vital, especially today in our
economy.
8. Functionality
• Software and applications are extremely costly. With
cloud, you rent so the heavy investment is forgone
• Cloud computing is a set of technologies and business
practices that enable companies of all sizes to build,
deploy, monitor and scale applications using resources
accessed over the internet
9. What Technologies is Cloud
Computing Replacing
• Cloud computing is replacing large Corporate Data
Centers and unnecessary, expensive private server
infrastructure.
• Web 2.0, SaaS, Enterprise and government users are
adopting cloud computing because it eliminates capital
investment in hardware and facilities as well as reduces
operations labor
11. • “Google 101”
– Network made up of millions of cheap servers, that would store
staggering amounts of data, including numerous copies of the world
wide web
– Makes search faster, helping ferret out answers to billions of queries in
a fraction of a second
• Google has invested more than $2 billion a year in data
centers for cloud computing.
• By far the leader in the technology
• Marissa Mayer, Vice President, Search Products & User
Experience, talks about Google Clouds, its product,
uncertainties and future expansions and ideas
– Click here for video
12. • Amazon Elastic Compute Cloud “Amazon EC2”
– web service interface that provides resizable computing capacity in a
cloud
– designed to make web-scale computing easier for developers
– reduces the time required to obtain and boot new server space from
weeks to minutes
– allows developers to pay only for capacity that they actually use
13. • “Azure”
– Internet-scale cloud computing and services platform hosted in
Microsoft data centers
– Provides a range of functionality to build applications that span from
consumer web to enterprise scenarios
– Designed to help developers quickly and easily create, deploy, manage,
and distribute web services and applications on the internet.
• Azure tutorial video
14. Scalable Pricing and Cloud
Computing
• Models of Pricing
– Free
– Subscription Model
– Pay Per Use
– Perpetual License
– Enterprise Unlimited License
• Click here for an example of Amazon's Pricing
15. What do these Services Offer
an Organization?
• Cloud computing will lead to increase in the
following categories:
– Virtualization
– Usability
– Standardization
– Scalability
16. Cloud Computing Usage
• Cloud Computing has 3 major uses:
– Infrastructure as a Service
– Platform as a Service
– Software as a Service
17. Infrastructure as a Service
• Defined as delivery of computer infrastructure as a
service
– Fully outsourced service so businesses do not have to purchase
servers, software or equipment
• Infrastructure providers can dynamically allocate
resources for service providers
– Service providers offer this service to end users
– Allows cost savings for the service providers, since they do not need to
operate their own datacenter
– Ad hoc systems allow quick customization to consumer demands
18. Platform as a Service
• Provides all the facilities necessary to support the
complete process of building and delivering web
applications and services, all available over the internet
• Infrastructure providers can transparently alter the
platforms for their customers’ unique needs
19. Software as a Service
• Defined as service-on-demand, where a provider will
license software tailored
• Infrastructure providers can allow customers’ to run
applications off their infrastructure, but transparent to the
end user
– Customers can utilize greater computing power while saving on
the following
– Cost
– Space
– Power Consumption
– Facility
• To see how Salesforce and Google come together watch
here
20. Cloud Computing Pros
• Reduced Hardware equipment for end users
• Improved Performance
• Lower Hardware and Software Maintenance
• Instant Software Updates
• Accessibility
• Less Expensive (Amazon example)
• Better Collaboration
• Pay for what you use
• Flexible
21. Cloud Computing Cons
• Security Issues (#1 concern)
• Internet connection
• Too many platforms
• Location of Servers
• Time for Transition
• Speed
23. Cloud is in the Infancy Stage
• Many companies are only using cloud computing for
small projects.
• The trust hasn’t been accepted
• Details such as licensing, privacy, security, compliance
and network monitoring need to be finalized for the trust
to be realized
24. Future Educational Uses
• An expansion of Microsoft live@edu
– View Video
• More useful spending of technology budgets
• Classroom collaboration
– View an example from AirSet.com Take a quick tour
• Office Web Applications
• Google Docs
– View Video
25. Future Personal Uses
• No more backing up files to thumb drives or syncing
computers together
• Services replace devices
• A single hard drive for the rest of a person’s life,
accessible anywhere with internet
26. Expansion
• Resources are expected to triple by 2012, from $16
billion to $42 billion
• Cloud computing is said to be the foundation of the next
20 years of IT technology
27. Recommendations
• Too early for large companies to migrate
– Migrate after adequate development time
• Good investment for small businesses
• Personal use will become more prevalent
Editor's Notes
Can add this link under tab points – you tube video for “cloud tech in plain english” http://www.youtube.com/watch?v=QJncFirhjPg Cloud computing is an internet based development combined with the use of computer technology
Clustering: computers were clustered together to form a single larger computer This allowed the user to configure the computers to talk with each other and the software would pick the best CPU for the job at hand. Grid: a concept thought up in the early 1990s Ian Foster and Carl Kesselman. They used the analogy of the electricity grid where users could plug in and pay for only what you use. It’s the same concept, only with software
Blue Gene Approach: creates a massive computer with thousands, even hundreds of thousands, of CPUs. IBM currently uses this technique The other approach, as adopted by Google, is to take hundreds of thousands of small, low cost, computers and hook them together in a “cluster” in such a way that they all work together as one large computer que
Microsoft - Tried to do this in 1995 Microsoft tried to add a free web browser, later blocked by the courts. Did this to fend of rivals such as Google, Salesforce.com, IBM and Amazon IBM - basic software needed for cloud computing and is open source, meaning that the code is freely available and can be modified by users
Data residency – obviously companies are going to want there data as quickly as possible and will go with the IT technology that provides this. Security – many companies have confidential information that CAN NOT be leaked! This can be information such as SS #’s, accounts, etc. but it can also include valuable client databases or special trade tricks that could be stolen and copied by the competition. Business buy-in: cloud technology needs to convince it’s prospective clients of privacy, affordability, structure and confidence of service issues.
Cloud technology quickly surpassing those old costly and inflexible ERP systems that quite commonly don’t fit the organizational needs. With cloud, you find a system that can be contoured to your business, can be edited and updated relatively easy and can be paid for on a pay as you go basis. This can reduce hundreds of thousands and even millions in lost IT projects. Cloud computing allows businesses to do this by accessing customer electronic data cheaply, supporting current and future business strategies, thus improving upon Customer Relationship ManagementCloud tech also allows for greater customer retention through less expensive sources.
Elimination of fixed maintenance and update cost of software. e
Servers not much more powerful then the PCs we have in our homes. First tested on university campuses Marissa Mayer, Vice President, Search Products & User Experience, talks about Google Clouds, its product, uncertainties and future expansions and ideas (click first video): http://video.google.com/videosearch?q=google+cloud+computing&emb=0&aq=0&oq=google+cloud+# -
First to sell cloud computing as a service. Smaller then competitors in cloud computing. Expertise in this area could give the online retailer a leg up in the next generation web services Click on link below to see amazons pricing and how to estimate your monthly bill using AWS Simple Monthly Calculator (click on this link under pricing on the site). http://aws.amazon.com/ec2/#pricing
-New to the cloud computing technology. -Microsoft is building massive data centers in Illinois and Siberia - Click on http://www.microsoft.com/azure/default.mspx to try out Azure videos and tutorials as well as a training kit for free!
Scalable pricing means a pricing scheme that provides the benefits of economies of scale. Free – sounds like best in regards to the customer’s perspective but: -does not include support: not an option for most mission critical applications -in terms of total cost of ownership (TCO), free products are not necessarily the cheapest option, i.e.: dependency on other products (and their license costs) or the need for integration and maintenance Subscription Model - you pay a fixed periodical fee, typically on an annual basis for infrastructure software -suitable for on-demand scalability as it provides the flexibility to grow or reduce cost based on the annual use of the product Pay Per Use - more flexible then subscription model as it gives you higher granularity -the usage can be a measure of CPU utilization or bandwidth utilization -Amazon EC2 uses this pricing model Perpetual License - used to buy licenses in advance and pay for support separately -usually 15-20% on top of the per CPU license -most commonly used model with commercial software products Enterprise Unlimited License - enables you to pay premium price in advance and gives you the freedom to use the software without any limit -fits to environment where you anticipate that over a fairly short period of time the usage of the product will become wide and therefore the pay-per use or any of the other models mentioned above will become more expensive
Service providers offer this service to end users Allows cost savings for the service providers, since they do not need to operate their own datacenter! Ad hoc systems allow quick customization to consumer demands
Click on the link to see salesforce.com and Google come together in a demo! http://www.zdnet.com.au/video/soa/Demo-of-Google-apps-on-Salesforce/0,2000065477,22450469p,00.htm
Since information is stored elsewhere and less processing power and hardrive space is needed end users are now able to buy cheaper and less equipment. This is a financial advantage since you wont need a high-powered (and accordingly high-priced) computer to run cloud computing’s web-based applications. Because the application runs in the cloud, not on the desktop PC, that desktop PC doesn’t need the processing power or hard disk space demanded by traditional desktop software. This way the computers are cheaper and require less hard drive space.(Miller, 2009) When a desktop PC doesn’t have to store and run a ton of software-based applications the computer will run at a more optimal level for the end user. (The apps are run from the cloud, instead.) With fewer bloated programs hogging the computer’s memory, users will see better performance from their PCs. Start up and all functions of the computer will be faster since there are not as many programs taking up the computers memory. (Miller, 2009) Cloud computing greatly reduces both hardware and software maintenance for organizations of all sizes. With less hardware (fewer servers, less PC’s) necessary in the organization, maintenance costs are immediately lowered. With software maintenance, all of the applications are based on other servers so there is no need for the IT to maintain the applications. You will also lower cost of installing the the applications since they will be based elsewhere. As well as gain the ability to only install applications and software on the computers that need it thus lowering licensing cost. (Miller, 2009) Another software-related advantage to cloud computing is that users are no longer faced with the choice between obsolete software and high upgrade costs. When the app is web-based, updates happen automatically and are available the next time the user logs in to the cloud. Whenever you access a web-based application, you’re getting the latest version—without needing to pay for or download an upgrade (Miller, 2009) Users can access the information they need from anywhere that has an internet connection since the information they need is stored out on the internet. This is very user friendly for people that travel a lot, telecommuters, people always on call etc. (Roque, 2009) Servers and datacenters are very expensive for companies to maintain. There are so many cost associated with the rent, upkeep of servers, cooling in the building, etc. The servers alone are expensive but then there is the cost to house and cool them, licensing cost, support cost, etc. With cloud computing this cost is cut significantly since someone else is hosting the server. Paying only for actual usage makes perfect sense for growth-oriented companies, especially startups. Jeff Barr, web services evangelist at Amazon, notes that he can’t name a single failed startup that used the company’s EC2 and S3 platforms for its core infrastructure. Specifically, Amazon charges 10 cents per compute-hour used and 15 cents per gigabyte of storage, Selipsky said. According to research by Forrester, that translates into about $70 to $150 per month for a fully utilized Amazon server, versus the average $400 a month that it costs an enterprise to run a server. (Betelho, 2008) Being able to collaborate on documents is very important to users. Imagine that you, a colleague in your West Coast office, and a consultant in Africa all need to work together on an important document. Before cloud computing, you had to email or snail mail the relevant documents from one user to another, and work on them sequentially. Not so with cloud computing. Now each of you can access the project’s documents simultaneously; the edits one user makes are automatically reflected in what the other users see onscreen. It’s all possible, of course, because the documents are hosted in the cloud, not on any of your individual computers. This helps with projects being completed faster as well as allowing people to work in different regions together without travel. (Miller, 2009) With cloud technology you only pay for the processing power that you need you are not paying for running servers that you are not using. If you hit peak times then you will simply pay for more server space instead of having those servers running all of the time. (Brown, 2008) Another good thing about cloud computing is how fast and easy it is to pull in resources from other servers to improve the performance of an application or website. This is great for companies looking to scale. Let’s say your site is slammed with traffic after a major announcement. With the cloud, you can simply deploy a few more servers to handle the load until the storm passes — and then draw back down later to keep costs under control. (Fisher, 2008)
The number one issue voiced by CIO’s has been around the issue of security. Sensitive company information will be stored in an area that is shared by everyone which includes company competitors. There is concern as to how well this data can be protected and how comfortable companies are with allowing sensitive documents outside of their control. (Krill, 2009). Some companies have to abide by certain laws to which requires them to keep information inside company walls and fire walls. This would prohibit companies from allowing this information outside. (Higginbotham, 2008) While it is a good thing to be able to access your information wherever there is an internet connection internet connection is not always guaranteed. If you have your information out in a cloud and can not establish an internet connection then you are out of luck until your internet is either back in service or you can go somewhere to find the internet. (Roque, 2009) Each service only allows users to use one platform or host and all the companies that have cloud technology currently use different platforms. This would require companies and users to have multiple clouds which could be a disaster for companies with data in different places. This also becomes an issue when trying to transfer information from one cloud to another. Some clouds do not support information that has been stored on another cloud. (Krill, 2009) Information is stored on servers all around the globe and some potential problems that could arise out of this are different national laws for information. One example that was given states that Canada is worried about storing data on servers based in the United States because under the U.S. Patriot act it can be accessed by the government. Big companies are cautious and conservative and with so much information it will take companies a while to conform to this new technology. The speed that these virtual servers sometimes run at when processing is sometimes much slower than physical servers. (Miller, 2009
Cloud technology is in its infancy, however, and enterprises would be wise to limit their efforts to small, targeted projects until the technology matures and vendors address a variety of potentially deal-breaking problems. (Weinberg, 2009) Cloud-computing services are on the rise but the security around them is not yet mature enough to trust, security experts have cautioned. “Identity-and-access control is one of the biggest factors in ensuring online services are secure”(Adrian Seccombe) "You could use SaaS to enhance how you manage identity and authentication," Seccombe said, but added "this is immature in most of the SaaS market". (Espiner, 2008) "The trouble is that SaaS rides roughshod over basic principles of security, traditionally, if you want to keep data safe you lock it away or keep it underground. Suddenly, you say I have to give it to a third party." (Espiner, 2008)
Rather than spend a major portion of our scarce technology dollars for the replacement of obsolete computers, so that we can run the latest software; why not run software from “the cloud” or from “virtualized servers”, and in the process become “device independent? Device independence allows us to choose the right device for the job whether it be a full desktop client, a thin client, a mini-notebook, laptop or iPod. - Bittman (Reilly, 2009) Rather than spend large percentages of our technology budgets on the technical support staff needed to maintain our traditional ‘distributed’, on-site, individual hard drive oriented networks, why not simplify our networks by “farming out” as many of our onsite resources as possible to “the cloud” or to “application servers”? - Bittman (Reilly, 2009) Office web applications – The ability to use microsoft office on any computer without each computer requiring a copy of microsoft office loaded on it. Google Docs is a hosted service where you can create, store and share documents, spreadsheets and presentations and online forms You can work on your own or collaboratively. You can also import docs from MS Office and Open Office.
Services replace devices – People won’t have to carry around devices such as hard drives, or intricate computers, all storage will be through a cloud service
Over the next five years, IDC expects spending on IT cloud services to grow almost threefold, reaching $42 billion by 2012 and accounting for 9% of revenues in five key market segments. More important, spending on cloud computing will accelerate throughout the forecast period, capturing 25% of IT spending growth in 2012 and nearly a third of growth the following year.
