1 Cloud Computing Vijay Chettiar Eric Czarniecki Jimmy RoebkerJustin Rumao INFO600 Nov 6, 2013
2 Agenda Evolution of Cloud Computing Deployment ModelsFinancial Benefits of Cloud Computing Examples of Cloud Computing Advantages and Disadvantages of Cloud Computing Potential Issues Cloud Management Challenges Future of the Cloud Summary
3 Evolution Centralized Computing IBM and mainframe computersDistributive Computing Computer resources and management could now be spread out across an organization Consolidated Computing Data centers, server farms, and storage systems
4 What is Cloud Computing?First coined by Professor Ramnath Challappa in 1997 Amazon was the first major innovator Elastic Compute Cloud Service
5 Deployment Models Private CloudAvailable only to a single group or organization Could potentially be managed by a 3rd party Requires “hands on management”, which could somewhat limit the benefits Private Cloud Private cloud is an infrastructure operated solely by and for 1 single organization. This can be managed/hosted internally or by a 3rd party. Private cloud requires significant degree of engagement to manage it effectively and safely Requires a lot of resources It can improve business when used correctly Requires the users to buy, build and manage the cloud services This intensive level of hands on management negates the positive impact and concept of cloud computing
6 Deployment Models Public Cloud Cloud services are on a public networkArchitecture is similar to private cloud There are slightly higher security concerns than a private cloud Cannot connect directly to the cloud, must connect via the internet Examples: Amazon, Microsoft, and Google platforms Public Cloud Cloud services are provided over a public use network Architecturally there is little, or sometimes no, difference between public and private clouds Public clouds pose greater security threats Must decide if network can be trusted with sensitive data Public clouds include Amazon, Microsoft and Google Access is offered only via an internet connection – no direct connectivity to the cloud
7 Deployment Models Community CloudInfrastructure is shared through several organizations Could be managed either internally or by a 3rd party Cloud costs are spread over several users Community Cloud A community cloud shares the data infrastructure among several organizations These organizations will typically share some sort of common characteristics of concern (i.e. security, data usage, type of business, etc.) Community clouds can be either managed internally or by an external 3rd party The costs are spread over fewer users than a public cloud, but more users than a private cloud Thus, some of the cost savings of cloud computing are realized, but not to the full potential
8 Deployment Models Hybrid Cloud Composition of multiple cloud modelsOffers benefits of multiple cloud components Allows scaling of resources “Cloud Bursting” Lacks security and flexibility of private clouds Hybrid Cloud A hybrid cloud is composed of 2 or more types of clouds (private, public, or community) The clouds themselves remain unique but are tied together, therefore offering benefits of the different deployment models Most often the different clouds composing a hybrid cloud are maintained by different service providers This allows greater capacity of cloud services Organizations can use the different types of clouds for different purposes For example, sensitive data can be stored on a private cloud Other non-sensitive data can be stored on a public cloud The two clouds can connect and “speak” to each other, but the private data will remain private Public clouds can be used to meet temporary capacity needs that cannot be met by a private cloud Enables “Cloud Bursting” When a private cloud “bursts” into a public cloud to meet temporary demand spikes. An organization only pays for extra resources when they are needed Enables companies to create in-house data centers to support an “average” workload and utilize clouds (whether public or private) when the data demand increases Hybrid cloud usually requires on-site and off-site infrastructure
9 Financial Benefits Benefits to businesses and business owners:Fully Utilized Hardware Lower Paper Costs Lower People Costs Lower Capital Costs Economies of Scale Financial Benefits Fully Utilized Hardware Allows companies to obtain more computing power for similar sized investments Lower Paper Costs Lower People Costs Save on human capital resources due to managing data in the cloud, less hands on management Lower Capital Costs Similarly, companies save on hardware purchases and are able to utilize existing hardware to a higher capacity Economies of Scale
10 Financial Benefits 2009 study: cloud computing could save 50-67% of a lifecycle cost for 1000 server deployment Deloitte study: cloud deployments deliver higher ROI and shorter payback period than traditional “on-premise” networks Financial Benefits 2009 study: cloud computing saves 50-67% of a lifecycle cost for a 1000 server deployment Utilizing cloud capabilities spreads the costs over several business and organizations, depending on the deployment model chosen Deloitte study: cloud deployments deliver a higher Return on Investment and shorter payback period than traditional “on-premise” networks Since companies save on hardware and various other costs, their assets will return more earnings. Cloud investments recover their costs more efficiently than traditional data networking
11 Examples SaaS (Software-as-a-Service) 1. SaaS -- Software-As-A-Service a. Allows users to run existing online software applications b. Easiest way to cloud compute c. Where off-the-shelf applications are accessed over the internet d. Examples i. NetFlix: No video software to download, just login and start watching millions of videos that stream to the device of choice. ii. Google Apps: Applications that we commonly use in our daily life like GMail, Docs, Calendar, Sites, Contacts, Hangouts, etc iii. Zoho: Competitor to Google Apps and provides more collaboration tools like CRM, Reporting, Project Mgmt, etc. iv. DropBox, Box, SkyDrive for cloud file/photos/video storage v. Yahoo, SalesForce, and hundreds more e. SaaS Pros & Cons i. Advantages: All applications are either Free or can be paid via a subscription ii. SaaS applications are also accessible from any computer on the internet iii. Are excellent for collaborative working iv. Disadvantage: In a business, generic applications do not always suffice a business needs.
12 Examples PaaS (Platform-as-a-Service) 2. PaaS -- Platform-As-A-Service a. Allows users to create their own cloud applications using supplier-specific environment, tools and languages b. Examples i. AWS: Biggest player in this area and provides databases, VPC, storage needs, tools, services, software, etc. I use it on a regular basis. NetFlix is built on this platform ii. Google App Engine: Same platform as Google. Everything that AWS offers today. iii. Microsoft's Windows Azure i. SalesForce has an engine called Force.com c. PaaS Pros & Cons i. All PaaS engines allows users to create applications very rapidly at a very low cost ii. Storage and usage needs can be expanded dynamically without any downtime iii. Such applications may even be used privately within a single business or made available to use publicly iv. Disadvantage: Limits developers to just a handful of programming languages and tools provided by the PaaS provider v. Disadvantage: There is a risk of getting locked-in with a particular vendor since applications built on one platform may not work with other platform providers
13 Examples IaaS (Infrastructure-as-a-Service) a. Allows users to run any applications they please on cloud hardware of their own choice b. This means, any existing application from a company can be migrated over to the cloud to reduce IT overhead c. Providers of IaaS offer Servers -- Physical or Virtual, network equipment and datacenter space d. Virtual servers are shared among many other users/companies e. Server space that scales dynamically can be rented on an hourly or monthly basis f. Examples i. VMWare ii. RackSpace iii. AWS, GoGrid, CloudScaling, etc
14 Advantages Mobility Increased speed in responding to unforeseen eventsEasy to get latest and greatest updates Quick and simple adoption model Cost Efficiency Environmentally friendly Advantages: 1. Mobility: No longer can you use the excuse of being "off-grid". All applications are available all the time and from anywhere. Work from any computer, tablet, phone from anywhere, anytime without skipping a beat. You can leave the session at a particular point and pick up from the same place when accessing from another location/device. 2. Increased speed: With cloud deployments, capacity and location planning are no longer in the hands of the customer, but are the responsibility of the cloud vendor. This allows companies to respond quickly to any business changes that may arise unexpectedly because operations are handled by the cloud vendors. 3. Easy to get: Software updates and renewals are also handled by the cloud vendor and occur several times a year at no cost to the customer. This ensures that the user interface remains modern and up-to-date with business demands. 4. Adoption: Everybody today has used the standard web browsers. Most Cloud based services use the browser as a means to deliver. Adoption is much easier without the need for detailed training across the company. 5. Cost Efficiency: No Licencing fees, upgrades, technical skills, space constraints, infinite growth with less cost. 6. Environment: Fewer machines (virtual), consolidated climate control costs, efficient equipment
15 Disadvantages Limited control Security / Privacy concernsVendor dependency Disadvantages: 1. Security: Biggest concern. Think about it, the company basically stores its sensitive data and applications outside its premises and relies on someone else to take care of its integrity. 2. Dependency: Implicit dependency on the vendor. It is mostly difficult or impossible to migrate from a provider once you roll with them. Carefully choose the vendor you want to do business with. 3. Limited Control: Since applications and services run remotely, you have limited control over the function and execution of hardware and software. 4. Latency: Since everything resides outside your company building, speed could be a major concern on critical applications. 5. Integration: If all the software applications for a business are not on the cloud, then making cloud applications communicate its results with location applications and vice-versa could be a nightmare. 6. Internet: Cloud applications need internet in order to work and any internet downtime or unavailability can impact the business in a big time. Latency Integration Internet reliability
16 Issues: Security NASA’s Transition to the Cloud2008: Start of Nebula Project Combination of IaaS, PaaS, SaaS Billed as Open-Source 2010: Nebula replaces $1.5B of Data Outsourcing RFPs 2013: Study citing poor IT governance and risk-management practices Nebula integrates "open source components into a seamless, self-service platform…provides high-capacity computing, storage, and network connectivity and uses a virtualized, scalable approach to achieve cost and energy efficiencies." NASA’s Nebula was the first private cloud computing effort in federal govt Since then, NASA's cloud efforts have been stagnant, according to the audit, with the agency spending less than 1 percent – about $10 million – of its $1.5 billion IT budget on cloud computing. "We found that the Agency OCIO (Office of the Chief Information Officer) was not aware of all the cloud services NASA organizations had acquired or which service providers they used," the July 29 audit states. "In addition, only 3 of 15 Center and Mission Directorate Chief Information Officers we surveyed stated that coordination with the Agency OCIO was necessary before moving NASA systems and data to public clouds.” "We reviewed five NASA contracts for the acquisition of cloud-computing services and found that none came close to meeting recommended best practices for ensuring data security. As a result, the NASA systems and data covered by these five contracts are at an increased risk of compromise," the audit states.
17 Issues: Privacy Intuit & Mint.com 2006: Founded2009: Acquired by Intuit Users have to provide username and passwords to financial accounts to Mint in order to use service, which is cloud-based
18 Issues: Hidden Costs Symantec Study79% of CIOs concerned about hidden costs 64% experienced processing bottlenecks 51% have felt impact on brand perception/customer loyalty 35% experienced increased costs in problem solving due to a more complex environment 31% found that costs were higher than expected
19 Challenges Lack of Ownership Over HardwareHardware is oftentimes off-site, difficult to access Control of Information Incompatibilities
20 Challenges Differences in Computing ArchitectureServer-side may differ from client-side Complications, added costs may arise
21 Challenges Capacity ManagementMost underestimated problem of cloud computing Cloud is often seen as infinite, so no capacity plans created Not enough tools to determine resources needed
22 Challenges ChargebackConnection between virtual server and physical home is not clear Most platforms do not make chargeback easy An IT chargeback system is a method of accounting for technology-related expenses that applies the costs of services, hardware and software to the business unit in which they are used. IT chargeback systems are sometimes called “responsibility accounting” because this sort of accounting demonstrates which departments or individuals are responsible for significant expenses. In a chargeback program, it may be easy for the business units to start seeing the data center as just another utility service—one that exists solely for each business unit. This means it may become difficult to analyze technology trends, forecast services for the company, or even train staff adequately because there is no business unit willing to pay for that work.
23 The Future It is estimated that by 2015, over half of the world’s workload will be processed in the cloud
24 Current Innovations Use of Hybrid Clouds Big Data AnalyticsMerge public and private benefits to one provider Big data as a service Restructuring for Small Businesses Gamification Cloud providers are continually finding ways to lower playing field Cloud based applications that use game theory
25 Strategy Big Data and the Cloud - NASA
26 Top Cloud Companies Public Private
27 What do you think the future of the Cloud will hold?Summary Cloud computing is becoming increasingly prevalent and essential to businesses There are various ways to deploy and use the Cloud in business practice, and many advantages and disadvantages for each can be cited As the Cloud moves forward, the possibilities seem endless, but there are many challenges and issues to consider What do you think the future of the Cloud will hold?
28 References (Lots of Stats)