vcs cloud computing overview 120910

An Overview to

Cloud Computing

1

Copyright © 2010 Deloitte Development LLC. All rights reserved.

Agenda and Objectives

Introduction

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Module / Lesson Objectives

Introduction Introduce facilitators and learning objectives

Module 1: About Cloud Computing Describe Cloud Computing is the associated features and

benefits

Module 2: Types of Clouds Identify Cloud Types and Cloud Services

Module 3: Typical Cloud Architecture Identify the key characteristics and components of the Cloud

Computing architecture

Module 4: Security & Risk Describe the security, risk and compliance issues that need

to be considered and provides a risk-based approach to

addressing them

Module 5: Compliance Identify compliance regulations and data governance

requirements to Deloitte service offerings

Module 6: Governance Describe IT Governance and the need for standardized

processes

Module 7: Why Deloitte? Distinguish between the different services Deloitte offered to

support cloud computing and why clients should choose

Deloitte

Module 8: Summary Summarize lessons learned and answer remaining

questions

Module 1: About Cloud Computing


Upon completing this module, you will be able to:

Describe Cloud Computing is the associated features

and benefits

Duration: 5 minutes

4

Learning Objectives



• In the simplest of terms, Cloud Computing is an Internet-based

shared computing paradigm, somewhat like an electricity grid:

‒ Internet-based computing

‒ Shared resources

‒ Shared software

‒ Shared platforms and infrastructure

‒ Available on-demand

• Cloud Computing… this is the future of computing, it is cutting

edge, it is out there right now and clients are asking about it:

‒ Future of computing

‒ Cutting edge

‒ Out there, right now

‒ Clients are asking about it

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Cloud Computing Description

Copyright © 2010 Deloitte Development LLC. All rights reserved.6


Key Characteristics of Cloud Computing

Standardized Standardized IT services configurations are

implemented in order to leverage the capabilities

of cloud computing.

Easily Accessible Easy access via the Internet from any computer:

Cloud services can be conveniently accessed by

using a standard Web browser

Available On-demand Cloud computing is highly available and

scalable: Replication is part of the cloud

framework.

Scalable Capabilities are easily scaled, and can be

automatically adjusted to meet demand

Pay As You Go Pay only for what you use and only while you

use it

Self-servicing Full customer self-service: customers can

provision, manage, and terminate services

themselves


• If you access multiple servers, you need to only request access; you don’t have

to complete the actual server setup.

• Costs are lower. Public Cloud computing customers do not own the physical

infrastructure, thus avoiding capital expenditure (CapEx) by contracting for the

service from a third-party provider.

• You can release a capability if you are no longer using the resource, while

retaining the configuration in a library for future use.

• You always have the most updated applications and setup.

• As your requirements grow, the cloud expands with you.

• Cloud user groups and communities help to drive the face of the future.

Feedback from early adopters changes the technology.

• The importance of on-demand is that you pay for only what you use, as

opposed to traditional infrastructure.

• Maintenance is easier since the host cloud environment is maintained by the

provider.

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Benefits of Cloud Computing



Evolution of Cloud Computing

1998-2002 Application Service Providers:

• Applications were designed with

the mindset of a dedicated

operating environment.

• Bandwidth and hardware

limitations led to performance,

reliability, and scalability issues.

Today • Network and hardware

advancements make remote

enablement of pieces of

critical business processes

viable.

• The global economic

recession led to an increased

role of the business in

software selection and cost

reduction.

2003-2006 Grid Computing:

• ―The network is the computer‖ –

though famously promoted by

hardware, database, and systems

software providers, the lack of

multi-tenancy application

architectures and related security

capabilities undermined these

impressive technical advances.

• The market was crowded with

contradictory approaches.

Challenges post 2010.

Today • Underlying computing,

storage, and data layers are

increasingly abstracted from

the consumer, shifting to a

true utility model.

• Proliferation of supported

infrastructure, platform, and

software offerings built around

cloud principles.

• Continued hardware

advances are improving

performance, bandwidth, and

scalability.



Evolution of Cloud Computing, Cont’d.

2008-Onwards Cloud Commercialization:

• Cloud computing is coming to the market in waves of capabilities –

capabilities that improve as the technology matures

• Cloud computing is a multi-faceted concept without universally

accepted definitions.

• Organizations are awash with partial and inaccurate understanding of

cloud computing – causing confusion and barriers.

• Suppliers have rebranded products as cloud computing – diluting the

marketplace.

• Definitions for the types of clouds, disposition of cloud services, and

business models are gaining traction.

• Free-market principles are forcing fringe products from the space, with

higher-tier products gaining share.

• Emergence of ―capability clouds ‖ offering clearly packaged services

with direct business relevance and value i.e. Cloud solutions.

Module 2: Types of Clouds



Identify Cloud Types and Cloud Services

Duration: 10 minutes

11

Learning Objectives




What is a “Cloud”?

Public Cloud Cloud computing services from vendors that can be

accessed across the Internet or a private network,

using systems in one or more data centers, shared

among multiple customers, with varying degrees of

data privacy control.

Private Cloud Computing architectures that are built, managed, and

used internally; uses a shared services model with a

common pool of virtualized computing resources.

Data is controlled within the enterprise.

Hybrid Cloud A combination of public cloud services, private cloud

computing architectures, and classic IT infrastructure.

This forms a hybrid model that uses the best-of-breed

technologies to meet specific needs.



Public Cloud

Attributes

• Quick startup time

• No capital investment required

• Allows outsourcing of non-core functions to a service

provider

• Leverages highly scalable vendor infrastructure

• Uses a standardized software stack

• Lower initial fees, variable costs, billed by usage

Benefits

• On-demand access to a shared pool of resources,

applications, and data

• Procurement and expandability is easy

• Accessibility to public clouds

• Interfaces with public cloud services


There is no specific reference architecture for Public Cloud, given that it’s a

service abstraction. All the major vendors do it differently at the physical

architecture level.

Public clouds offer dynamically provisioned resources on a self-service basis over the Internet

via web applications/web-services from an off-site service provider who shares resources and

charges on a fine-grained utility computing basis. In this model, service providers manage the

infrastructure and resource pools which can be paid for and used by any customer.

14

Public Cloud Logical Model




Private Cloud

Attributes

• Quick startup and flexibility of resource allocation

• Requires capital investment

• On-premise data and systems

• Good choice when possible to leverage existing staff and

investments

• Cost savings through leveraging virtualization and grid

technology

Benefits

• Business units may share costs

• More efficient use of CapEx and corporate resources

• pay as you go versus costs up front, and only while

resources are needed

• Expenses become part of business units operating

expenses (OpEx) rather than capital expenditure up front

(CapEx)


Private Cloud Logical Model


Enterprise Data Center

Virtualized Servers Databases/Storage

Load Balancing

User Interface

User Interface

Reference DepositoryComputing Resource

Manager

Firewall

Internet

User Interface

Front-End Application

User Interface

High Speed

Ethernet

User Access Management – Intrusion ManagementU

ser

Acc

ess

Man

agem

ent –

Intr

usio

n M

anag

emen

t Preconfigured

TemplatesStandard Operating

Procedures

VPN

VPN

Private Cloud Computing

Logical Model



Hybrid Cloud

Attributes

• More flexibility in providing IT services while at the same

time maintaining more control over business services and

data

• Quick startup

• Integration of cloud types adds complexity

• Allows ―best of both worlds‖ for control of data and reduction

of non-core focus

• Allows selection of scalable vendor infrastructure

• Allows internal control

• Allows fine-grained sourcing of most appropriate technology

and cost profiles

• Integration may constrain savings potential

Benefits

• More control over security

• Advantages on cost savings from Public Cloud use


Hybrid Cloud Logical Model


Enterprise Data Center

Virtualized Servers Databases/Storage

Load Balancing

User Interface

User Interface

Reference DepositoryComputing Resource

Manager

Firewall

Internet

User Interface

Front-End Application

User Interface

High Speed

Ethernet

User Access Management – Intrusion ManagementU

ser

Acc

ess

Man

agem

ent –

Intr

usio

n M

anag

emen

t Preconfigured

TemplatesStandard Operating

Procedures

VPN

VPN

Private Cloud Computing

Logical Model

Hybrid Cloud leverages the same logical model as the Private Cloud.



Cloud Services

Service type

categoryDescription of the different service categories

Software-as-a-

Service (SaaS)

• A model of software deployment whereby a provider licenses an

application to customers for use as a service on demand

• SaaS software vendors may host the application on their own web

servers or download the application to the consumer device, disabling it

after use or after the on-demand contract expires

Platform-as-a-

Service (PaaS)

• The delivery of a computing platform and solution stack as a service

• Facilitates the deployment of applications without the cost and complexity

of buying and managing the underlying hardware and software layers

• Provides all of the facilities required to build and deliver web applications

and services entirely from the Internet

Infrastructure-

as-a-Service

(IaaS)

• The delivery of computer infrastructure (typically a platform virtualization

environment) as a service

• Rather than purchase servers, software, data center space ,or network

equipment directly, clients instead buy those resources as a fully

outsourced service

• Service is typically billed on a utility computing basis with the cost

reflecting the amount of resources consumed

Module 3: Typical Cloud Architecture



Identify the key characteristics and components of the

Cloud Computing architecture


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Learning Objectives



• Data Center architecture and capacity:

‒ Reduces costs of purchasing servers, software, data center space, or network

equipment.

‒ Billing and how customers are billed is impacted. Cost reflects the level of

activity.

‒ Scalability

• Architecture transformation and evolution:

‒ Network-based access to, and management of, commercially based software

‒ Centralized feature updating

• Policy-based management of IT platforms

• Technology implications

• Managing operational risks—depending on the cloud solutions

operational activities that are managed from central provider locations

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Key Characteristics



Basic Features of Cloud Computing

Architecture and Services

Front-End Portal

Application

Provisioning of services begins immediately once an end-user defines and

submits their service choices, except those services that require IT

administrator approval.

Service Options

Service Options an End-User Could Define Within the Front-End Portal

include:

• Environment

• Virtual Server

• Storage

Compute

Resource

Manager

The Compute Resource Manager provides IT administrator’s deep visibility

and control into their virtual environments and underlying infrastructure,

while allowing for automatic IT service provisioning with little human

interaction necessary. The four key functions of the Compute Resource

Manager are:

• Define infrastructure service templates workflows, and automation scripts

• Allocate and provision infrastructure services

• Monitor active infrastructure services

• Decommission and repurpose infrastructure services

Computing

Resources

The servers, storage, and network resource pool

Load Balancing Used for maintaining and balancing loads on provisioned resources

• Backup

• Network

• Database



Cloud Flow

Differences of

the Private

Cloud vs.

Public Cloud

• How does the user interact with the cloud: ordering, monitoring

what you use, billing, releasing what you don’t use.

• Location/use of firewall will distinguish private from public.

Effort to

Deploy, Run,

and Manage

Applications

• Owned by you and configured as a cloud services model, or is it

owned by cloud service providers and you are just renting them?

• In the case of private clouds clients may have to build out the

four pieces and parts. There is no standard path around building

out these pieces. They can all evolve over time. Flow is relevant

when you define a new environment.

Module 4: Security & Risk



Describe the security, risk and compliance issues that

need to be considered and provides a risk-based

approach to addressing them


26

Learning Objectives



Concerns over integrity and information security continues to slow

the adoption of cloud services.

• Security, risk, and compliance concerns are top reasons cited for delaying cloud

adoption.

• On the other hand, cloud solutions can potentially provide better security

protection, risk management, and compliance.

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Cloud Concerns


New risks have been introduced to Cloud Computing that include:

• Identity and access management

• Vulnerability management

• Network, system, and application security

• Encryption

• Privacy and data protection

• Monitoring

• Incident management

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New Security Risks


There are many other risks that one has to consider when

implementing cloud. These include:

• Business continuity, disaster recovery, and availability

• Asset management

• Human risks (e.g. malicious insider at cloud provider)

• Electronic discovery

• Financial controls

• Vendor management

• Vendor lock-in

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Risks to Consider When Implementing Cloud


The platform for compliance is under continuous change and

requires detailed attention.

• Complexity in complying with multi-jurisdictional data laws because of lack of

knowledge of data location

• Lack of transparency impediment to monitoring compliance

• Evolving cloud standards, regulations, and compliance enforcement landscape

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Compliance Within Cloud


There are many benefits of a risk-based approach to address

security, risk, and compliance which includes:

• Risk assessment

• Risk management system/solution

• Implementation of specific controls or remediation

• Internal audits and external assurance

• Ongoing monitoring and improvement

31


Benefits of a Risk-based Approach

Module 5: Compliance



Identify compliance regulations and data governance

requirements to Deloitte service offerings

Duration: 5 minutes

33

Learning Objectives



There are many legal requirements for providing cloud services that

include:

• Overview regulations and data governance requirements

• Internal compliance requirements

• Privacy laws

• Compliance with local laws and regulations

34


Legal Compliance


Data protection is critical to the viability of cloud services. It provides

the following for cloud services:

• Protecting data against theft, loss and misuse

• Tax implications

• Auditing and monitoring

• Data integration hub

• Master data management strategy

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Data Governance

Module 6: Governance



Describe IT Governance and the need for standardized

processes

Duration: 5 minutes

37

Learning Objectives



The primary objective of IT Governance and Controls is to ensure the

investments an organization makes in Cloud Computing create business

value, mitigate related risk, and align with the organization’s overall IT

and business strategy.

38


IT Governance and Controls


When implementing Cloud Computing there are some key questions

to consider in relation to security and risk.

• What is Cloud Computing governance?

• Why is it important?

(You have to think about this differently and re-define the governance structure

as it applies to IT structure and services.)

• Does the Cloud Computing model continue to align with existing IT governance

and business objectives?

• Should you take a traditional approach and change it to account for on-demand

service provision and chargeback?

• What tools need to be monitored?

(These will need to be put in place and this is where the investment comes in.)

• Is the governance defined for the cloud computing model as well as the

organizational structure?

39


Things to Consider

Module 7: Why Deloitte?



Distinguish between the different services Deloitte

offered to support cloud computing and why clients

should choose Deloitte

Duration: 5 minutes

41

Learning Objectives



Unmatched global capabilities across technology and business

consulting, financial advisory services, and tax and risk management:

‒ Vendors only look at niche market and their vertical Deloitte looks at a solution

holistically. Deloitte provides an unbiased opinion, based on our exposure to

market capabilities.

‒ Deloitte is an integrator—can model solutions to the size of business and

required business solution. Vendors are just ―one note.‖

‒ Deloitte can create a test pathway of implementation and prevent obstacles by

testing.

‒ Avoid vendor locking, not vendor specific.

‒ Synthesizing cloud computing trends. Cut through the fluff. Get the real story.

‒ Can leverage Deloitte collaboration with industry standards.

‒ Deloitte actually has its own cloud—so, we walk the walk.

42


Our Value Proposition


Deloitte provides various best-in-class service offerings, including:

• Cloud strategy, integration, and migration

• Data governance

• Security, risk, and compliance

• Tax strategies

43


Service Offerings

Module 8: Summary


Cloud Computing Resources

Module 8: Summary

Other Cloud Computing courses in this series:

• Introduction to Cloud Computing (e-Learning)

• Public Cloud Computing (Virtual Classroom)

• Private Cloud Computing (Virtual Classroom)

• Security, Risk, and Compliance in the Cloud (Virtual Classroom)

• Cloud Computing Governance (Virtual Classroom)

• Selling Cloud Services (Virtual Classroom)

For additional information, please contact:

DeWayne Holmes

[email protected]

+1 916 712 0258

Chris Weitz

[email protected]

+1 408 315 6289

Erik Marvik

[email protected]

+1 415 713 2505

mailto:[email protected]


Lessons learned from this session include:

• Cloud Computing is Internet-based shared

computing paradigm, meaning shared software,

platform, and infrastructure resources are made

available on demand.

• The major types of Clouds are Public, Private, and

Hybrid.

• The three cloud service type categories are

Software-as-a-Service (SaaS), Platform-as-a-Service

(PaaS), and Infrastructure-as-a-Service (IaaS).

• Security, risk, and compliance concerns are top

reasons cited for delaying cloud adoption.

• IT Governance and Controls provides the means to

carefully limit risks and maintain a controlled

environment.

• Deloitte provides unmatched Cloud Computing global

capabilities across technology and business

consulting, financial advisory services, and tax and

risk management:

46

Lessons Learned

Module 8: Summary


Questions

47

Module 8: Summary

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