Cloud Computing

CLOUD COMPUTINGCloud computing is a model for enabling convenient, on-demand networkaccess to a shared pool of configurable computing resources (e.g., networks,servers, storage, applications, and services) that can be rapidly provisionedand released with minimal management effort or service providerinteraction.

Cloud computing provides computation, software, data access, and storageservices that do not require end-user knowledge of the physical location andconfiguration of the system that delivers the services.Cloud computing providers deliver applications via the internet, which areaccessed from a web browser, while the business software and data are

store on servers at a remote location.

Delivery Models

Cloud software as a service (SaaS) : Use the provider’s applications running on a cloud infrastructure.

Software running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser.

• Cloud platform as a service (PaaS) : User-createdapplications running on a cloud infrastructure.

• Cloud Infrastructure as a service (IaaS)Processing, storage, networks, and other fundamental computing

resources running on cloud infrastructure

Deployment Methods• Private cloud (Internal Cloud) : The cloud infrastructureis operated solely for a single organization.

• Public Cloud : The cloud infrastructure is made available to the general publicor a large industry group and is owned by an organization selling cloud services.

• Community Cloud : The cloud infrastructure is shared by severalorganizations and supports a specific community that has shared concerns. It may be

managed by the organizations or a third party and may exist on-premises or off-premises.

• Hybrid Cloud : The cloud infrastructure is a composition of two or moreclouds (private, community, or public) that remain unique entities but are bound

together by standardized or proprietary technology that enables data and application portability.

Distributed vs. Grid vs. Cloud

Rent based on usage only

Rent Servers & Hosting costs whether used or no t

Buy Servers & Co lo costs whether used or no t

Pricing m odel

High - v irtua lizedLowLow“Green”

No contrac ts , usage based, no upfront costs

Costly , sometimes month/year contrac ts , no CapEx

High CapExCost

Ins tant, F lexible , Pay-per-usage

Slower, somewhat flexible , Costly

S lowest, R igid & CostlyScalability

MinutesDays to W eeksW eeks to MonthsTim e

CloudGridDistributed

Advantages

1 .Flexibility2. Disaster recovery3. Automatic software updates4. Cap-Ex Free5. Increased collaboration6. Work from anywhere7. Document control8. Security9. Competitiveness10. Environmentally friendly

• Cloud Servers and Network Hardware are much Higher Quality:

Cloud solution providers cannot afford equipment failure, so very high quality equipment is used and all of it is highly redundant within the data center.

• No expenditures on expensive hardware :Cloud solutions do not require the outright

purchase of server hardware, network storage, backup systems, disaster recovery systems, power or cooling systems, data center or utility costs. When a business moves to a cloud environment they eliminate the need for servers and the physical space needed to house those servers.

• UPS battery failure (55 percent)• Accidental / human error (48 percent)• UPS capacity exceeded (46 percent)• Cyber attack (34 percent)• IT equipment failure (33 percent)• Water incursion (32 percent)• Weather related (30 percent)• Heat related/CRAC failure (29 percent)• UPS equipment failure (27 percent)• PDU/circuit breaker failure (26 percent)

• No need for the Upfront Capital Expense of Infrastructure Software – Cloud computing eliminates the need for the upfront capital requirement of purchasing software like Windows Server, SQL Server, Application and Database Servers, Client Access Licenses, Middleware, SharePoint, Citrix Server and client licenses … etc. These costs are paid in the monthly fees for the cloud environment and support.

• Fewer Expensive Software Upgrades – Many software manufacturers are including free software upgrades for applications that are hosted in the cloud and are paid as a subscription within the monthly cloud environment fees. This means no expensive software upgrades and none of the interruption that software upgrades create in businesses.

Shining Examples of Cloud Computing in Action

• 1. Through cloud cost flexibility, online marketplace gains access to more powerful analytics online

• 2. Greater business scalability enables online video retailer to meet spikes in demand.

• 3. Greater market adaptability provides online entertainment platform the ability to reach any type of customer device

• 4. Masked complexity enables access to services, no matter how intricate the technology they’re built on

Issues over Cloud Computing

Cross Border Legal Issues

• Cloud Cloud inherently being statelessand serves located in different locationsand countries creates issues related toconflict of laws, applicable law andjurisdiction.• Cross-border data flow, potentiallyconflicting regulations, applicableregulations

Privacy and Security• Multi-tenant architecture• Data from different user are usually stored on

a single virtualserver• Multiple virtual servers run on a single physical

server• Data security depends upon the integrity of

the virtualization

IPR and Ownership Issues

• Trade Secret Protection. As third partiesmight have access to data, which can bedetrimental to trade secrets of a company.• Companies should have non-disclosureagreements with the vendor.• Ensure that no rights in IPR are transferredto the vendor.

Hacking of cloud vendor

In the event that cloud vendor system ishacked, does the owner of the data has theright to move against the vendor forclaiming lost profits.

Legal and practical liability forforce majeure events

• What happens to the owner’s data in caseof a disaster? How much is the vendorliable for the recovery and restoration ofthe data?• What are the back-up mechanisms forrecovery of the data?

Jurisdictional Issues• In cloud services location of data is usually uncertain. The owner of data is not

aware of the country where the data is stored. The physical location of the data raises the question of law to be governed and jurisdiction. Its important to be aware of the prevailing law in that particular nation.

• What if a dispute arises, what will be the place of jurisdiction. The owner of the datashould be aware of the country’s court system which will govern the conflict arosebetween the parties.

• For eg. The owner is based at India and cloud service provider is based in the US. The vendor would prefer jurisdiction of American Court. But can the owner afford to contest the matter in American court.

Riskallocation/mitigation/insurance

• No vendor offers a 100% guarantee. Themost trusted vendor can also fail.• Replication of data should be done andapplication should be available at multiplesites.

Top Cloud Service providers

1. Amazon • There's no question who the most important

cloud player is: Amazon. Amazon basically invented the IaaS market

Amazon's cloud offers a huge array of choices. It does everything from provide a bit of cloud storage for a few pennies a month to renting supercomputer-strength power for $5,000 an hour.

2. VMware

• It offered software called vCloud for building clouds.

• It is one of the biggest players in the cloud software market, competing against a tech called OpenStack (run by a consortium of vendors, including IBM, Rackspace, HP) and Citrix.

3. Microsoft

Windows Azure is an open and flexible cloud platform that enables

you to quickly build, deploy and manage applications across a global

network of Microsoft-managed datacenters. This is a PaaS cloud popular with the many developers who

already write apps using Microsoft's coding tools. Microsoft just expanded Azure into the IaaS market, even letting users run Linux on its cloud, and promising to match Amazon's low prices.

SQL Server database to Microsoft Office 365.

4. SalesForce.com

• The name Salesforce.com is almost synonymous with cloud computing. Salesforce.com proved that the world wants to buy software-as-a-service.

• In 2012, Salesforce pushed into a bunch of new areas, spending more than $1 billion to acquire Radian6(social media engagement software)

Some Service providers forSaaS – Software as a Service

Some Service providers for DaaS – Data as a Service

Some Service providers for PaaS– Platform as a Service

Some Service providers for IaaS – Infrastructure as a Service

Some Service providers for NaaS – Network as a Service

examples

• Government can take advantage of cloud computing is India’s Unique Identification (UID) project. The UID aims to provide a positive change to the lives of the people at the bottom rung of the economic pyramid simply by providing a real time service for the verification of the identity of any Indian resident through biometrics or demographic information. The UID’s advantage is that it’s a generalized online service that is accessible by a wide variety of national, state, and local government authorized agencies as well as private businesses. The previous e-governance systems were limited in comparison, having been dependent on individual ministries and lacked standardization.

• India’s UID Authority has already collected the biometric and demographic information from over 200M people,

• 1. By 2015, end-user spending on cloud services could be more than $180 billion

• .2. It is predicted that the global market for cloud equipment will reach $79.1 billion by 2018

• .• 3. If given the choice of only being able to move one application to the cloud,

25% of respondents would choose storage• .• 4. By 2014, businesses in the United States will spend more than $13 billion on

cloud computing and managed hosting services • .• 5. Throughout the next five years, a 44% annual growth in workloads for the

public cloud versus an 8.9% growth for “on-premise” computing workloads is expected

• 6. 82% of companies reportedly saved money by moving to the cloud• .• 7. More than 60% of businesses utilize cloud for performing IT-related

operations• .• 8. 14% of companies downsized their IT after cloud adoption• .• 9. 80% of cloud adopters saw improvements within 6 months of

moving to the cloud • .• 10. 32% of Americans believe cloud computing is a thing of the future

• 11. There’s an estimated 1 Exabyte (1 000 000 000 000 000 000 bytes).of data stored in the cloud

• .• 12. More than half of survey respondents say their organization currently

transfers sensitive or confidential data to the cloud• .• 13. Cisco forecasts that global data center traffic will triple from 2.6 zettabytes in

2012 to 7.7 zettabytes annually in 2017, representing a 25 percent CAGR• .• 14. Global data center traffic will grow threefold (a 25 percent CAGR) from 2012

to 2017, while global cloud traffic will grow 4.5-fold (a 35 percent CAGR) over the same period

• .• 15. From 2012 to 2017, data center workloads will grow 2.3-fold; cloud

workloads will grow 3.7-fold

• 16. 2014 is the first year the majority of workloads will be on the cloud as 51% will be processed in the cloud versus 49% in the traditional IT space

• .• 17. 545 cloud services are in use by an organization on average• .• 18. 56% of survey respondents trust the ability of cloud providers to

protect the sensitive and confidential data entrusted to them• .• 19. 59% of all new spending on cloud computing services originates from

North American enterprises, a trend projected to accelerate through 2016

• .