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Introduction to Cloud Computing

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Damian T. Gordon
Damian T. Gordon

Cloud computing provides on-demand access to shared computing resources via the internet on a pay-per-use basis. It offers several benefits including simplified customer acquisition, elastic demand that scales with usage, and utility pricing where customers only pay for what they use. However, security, lack of standardization, and unclear legal responsibilities if a provider fails present challenges. Cloud computing impacts businesses by challenging traditional IT practices and acting as either a disruptive innovation or additional outsourcing option.

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Cloud Computing: An Introduction
Introduction to Cloud Computing
Introduction to Cloud Computing
What is Cloud Computing? • Technologies facilitating a new service- oriented consumption and delivery model of information systems (as utilities) • Essentially, a new kind of IT/IS outsourcing option for businesses Virtual Environment Physical Device Physical Device
Technology Convergence • Computing-as-a-service is not new idea – dates to 1960s and IBM’s Service Bureau • Back then, and like many emerging technologies, computing was relatively expensive, so sharing made sense • Moore’s Law sees the exponential increase in price performance and ushers in the device- centric era which has dominated, especially since the 1980s
Technology Convergence • But despite the allure of its perceived autonomy, device-centric computing is problematic – cost and complexity of management • Fast-forward to 2000s. Cheap, ubiquitous broadband networks ushers in the Internet- dominated era and sees cloud computing emerging as a significant contender
Where did it come from?
Introduction to Cloud Computing
Introduction to Cloud Computing
1994
History of Cloud Computing • Originally, Amazon, Google, Microsoft and others had built large computing infrastructures to support their core business needs • But excess capacity during non-peak demand times, innovative resource scheduling and large economies of scale gives rise to a new business opportunity
History of Cloud Computing • Reselling excess capacity as packaged, on- demand services, using lightweight customer acquisition and provisioning models • Now, no longer just about excess capacity but a business in its own right • Cloud is dominated by de-facto standards which has emerged from the rapid successful operationalisation and commercialisation of these computing services
Cloud Computing Models
Defining Cloud Computing • The US National Institute of Standards and Technology (NIST) proposes the following definition for cloud computing:
Defining Cloud Computing • “Cloud computing is 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.”
Defining Cloud Computing • NIST also says the cloud model promotes availability and is composed of: 5 4 3
Defining Cloud Computing • NIST also says the cloud model promotes availability and is composed of: 5 4 3 Essential Characteristics Deployment Models Service Models
Five (5) Essential Characteristics
Five (5) Essential Characteristics Online Self-service Broad Network Access Resource Pooling Rapid Elasticity Measured Service
Five (5) Essential Characteristics • 1. On-Demand Self-Service • A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.
Five (5) Essential Characteristics • 2. Broad Network Access • Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).
Five (5) Essential Characteristics • 3. Resource Pooling • The provider’s computing resources are pooled to serve multiple consumers using a multi- tenant model, with different physical and virtual resources dynamically assigned and re- assigned according to consumer demand.
Five (5) Essential Characteristics • 3. Resource Pooling (cont.) • There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth.
Five (5) Essential Characteristics • 4. Rapid Elasticity • Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.
Five (5) Essential Characteristics • 5. Measured Service • Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.
Five (5) Essential Characteristics • Also • Resiliency- By virtue of a given cloud deployment’s size, its service can survive interruption or loss of some physical components without loss of function • Redundancy - More availability, and better protection against loss or damage • Resolution - Automatic and dynamic resolution of resource identities and addresses – by necessity of design and scale • Ubiquity - Regardless of scope (public or private), the cloud is expected to be available within that scope
Four (4) Deployment Models Public Cloud Private Cloud Community Cloud Hybrid Cloud
Four (4) Deployment Models • 1. Public Cloud • A public cloud deployment makes it possible for anybody to access systems and services, and that makes it less secure as it is open to everyone. It is one in which cloud infrastructure services are provided by the entity that delivers the cloud services, not by the consumer. It is a type of cloud hosting that allows customers and users to easily access systems and services.
Four (4) Deployment Models • 2. Private Cloud • A private cloud deployment is the opposite of the public cloud deployment model. It’s a single customer. There is no need to share your hardware with anyone else. The distinction between private and public clouds is in how you handle all of the hardware. It is also called the “internal cloud” and it refers to the ability to access systems and services within a given border or organization.
Four (4) Deployment Models • 3. Community Cloud • A community cloud deployment allows systems and services to be accessible by a group of organizations. It is a distributed system that is created by integrating the services of different clouds to address the specific needs of a community, industry, or business. It is generally managed by a third party or by the combination of one or more organizations in the community.
Four (4) Deployment Models • 4. Hybrid Cloud • A hybrid cloud deployment bridges the public and private worlds with a layer of proprietary software, and it gives the best of both worlds. With a hybrid solution, you may host the app in a safe environment while taking advantage of the public cloud’s cost savings. Organizations can move data and applications between different clouds using a combination of two or more cloud deployment methods, depending on their needs.
Three (3) Service Models IAAS PAAS SAAS
Three (3) Service Models • 1. IAAS • Infrastructure as a Service (IaaS) on-demand access to cloud-hosted physical and virtual servers, storage and networking - the backend IT infrastructure for running applications and workloads in the cloud. • DigitalOcean, Linode, Rackspace, Amazon Web Services (AWS), Cisco Metapod, Microsoft Azure, Google Compute Engine (GCE)
Three (3) Service Models • 2. PAAS • Platform as a Service (PaaS) is on-demand access to a complete, ready-to-use, cloud- hosted platform for developing, running, maintaining and managing applications. • AWS Elastic Beanstalk, Windows Azure, Heroku, Force.com, Google App Engine, Apache Stratos, OpenShift
Three (3) Service Models • 3. SAAS • Software as a Service (SaaS) is on-demand access to ready-to-use, cloud-hosted application software. • Google Workspace, Dropbox, Salesforce, Cisco WebEx, Concur, GoToMeeting
SAAS PAAS IAAS
The Good, the Bad, and the Interesting of Cloud Computing
THE GOOD
Simplified Customer Acquisition • Per-usage tariffs on the infrastructure or platforms • Non-intermediated, automated self- provisioning over the internet • Homogenised packaging, pricing and delivery of services
Elastic Demand • Get and pay for what you need when you need it (within reason) • Making it operational expense (Opex) rather than capital expense (Capex) intensive • Allows low-risk experimentation or agile demand fulfilment for out-of-the-ordinary IT requirements
Utility Pricing • Utility pricing • Don’t pay for what you are not using • But pay a little more when you are • Consumer-style billing for everyone
Developer Ecosystem • APIs • Tools • Low-friction entry points (often free to get hooked) • Theoretically easy portability and extractability but not always so in practice
THE BAD
Security Issues • There is a lack of transparency of data location, access permission, soundness of security architectures. • These are significant security challenges.
Missing or poor SLAs • Service-level agreements (SLAs) are important to establish clear commitments between a service provider and a customer. • SLAs are common in the telecommunications industry and provide corporations with a guarantee that certain standards will be upheld.
Lack of Industry Standardisation • No ISO, DMTF, IEEE, etc. • De facto standards by virtue of commercial success
No Real Contracts or Guarantees • In particular, what happens if a provider goes bust? Or if they get bought out. • There are a range of legal issues, here’s an older dissertation on this topic: • http://www.damiantgordon.com/Researc h/Dissertations/AlanHarris.pdf
THE INTERESTING
Business Impact • Cloud deployments challenge many existing business processes and the traditional IT/IS architectures and practices that support them • Cloud can be viewed as a disruptive innovation • Cloud can also be considered as another outsourcing option -- build-or-buy decision
Business Impact • IT/IS leaders and managers cannot ignore this trend in their planning and strategy development • But there are always many snake-oil merchants all too willing to exploit on unsuspecting or poorly educated CIOs – cloud washing
Business Impact • Cloud is creating new markets (for services) and is disrupting an existing market (proprietary infrastructure investment) • Cloud has many obvious disadvantages compared to owned technologies (e.g. security, reliability, risk of vendor lock-in)
Business Impact • But the disruptive innovation model demonstrates how apparently inadequate technologies can initially satisfy basic customer needs and then succeed even more over time
Business Impact • Incumbent suppliers (e.g. Dell, HP, IBM, Oracle) are trying to re-focus their business but can they be successful quickly?
Business Impact • Cloud has enabled the creation of new businesses which may otherwise not exist • Could be entire new start-ups or new business units within existing companies • Cloud’s low friction, low cost acquisition model changes the game
Business Impact • Facilitates a relatively risk-free trial-and- error approach to the marketplace – significant capital commitment not necessarily required to validate an idea • Published cloud tariffs allows rough cost- estimates to be made
Business Impact • Staffing Considerations: • The risk of losing existing IT skills which may not be a problem if they are not core to the business activity – but it is rarely that simple • Existing and new staff may require different kinds of training • Pressures to reduce or redeploy headcount – risks to retention of key staff • Each consideration may tempt managers to postpone important decisions around cloud
Business Impact • Market Considerations: • Regulatory framework in which the business might operate (e.g. banking or pharmaceuticals) • Customer attitudes towards their data • Competitors’ stance and relative adoption of cloud technology and whether this has or has not led to any perceived advantage
Introduction to Cloud Computing

More Related Content

Introduction to Cloud Computing

  • 4. What is Cloud Computing? • Technologies facilitating a new service- oriented consumption and delivery model of information systems (as utilities) • Essentially, a new kind of IT/IS outsourcing option for businesses Virtual Environment Physical Device Physical Device
  • 5. Technology Convergence • Computing-as-a-service is not new idea – dates to 1960s and IBM’s Service Bureau • Back then, and like many emerging technologies, computing was relatively expensive, so sharing made sense • Moore’s Law sees the exponential increase in price performance and ushers in the device- centric era which has dominated, especially since the 1980s
  • 6. Technology Convergence • But despite the allure of its perceived autonomy, device-centric computing is problematic – cost and complexity of management • Fast-forward to 2000s. Cheap, ubiquitous broadband networks ushers in the Internet- dominated era and sees cloud computing emerging as a significant contender
  • 7. Where did it come from?
  • 10. 1994
  • 11. History of Cloud Computing • Originally, Amazon, Google, Microsoft and others had built large computing infrastructures to support their core business needs • But excess capacity during non-peak demand times, innovative resource scheduling and large economies of scale gives rise to a new business opportunity
  • 12. History of Cloud Computing • Reselling excess capacity as packaged, on- demand services, using lightweight customer acquisition and provisioning models • Now, no longer just about excess capacity but a business in its own right • Cloud is dominated by de-facto standards which has emerged from the rapid successful operationalisation and commercialisation of these computing services
  • 14. Defining Cloud Computing • The US National Institute of Standards and Technology (NIST) proposes the following definition for cloud computing:
  • 15. Defining Cloud Computing • “Cloud computing is 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.”
  • 16. Defining Cloud Computing • NIST also says the cloud model promotes availability and is composed of: 5 4 3
  • 17. Defining Cloud Computing • NIST also says the cloud model promotes availability and is composed of: 5 4 3 Essential Characteristics Deployment Models Service Models
  • 20. Five (5) Essential Characteristics • 1. On-Demand Self-Service • A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.
  • 21. Five (5) Essential Characteristics • 2. Broad Network Access • Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).
  • 22. Five (5) Essential Characteristics • 3. Resource Pooling • The provider’s computing resources are pooled to serve multiple consumers using a multi- tenant model, with different physical and virtual resources dynamically assigned and re- assigned according to consumer demand.
  • 23. Five (5) Essential Characteristics • 3. Resource Pooling (cont.) • There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth.
  • 24. Five (5) Essential Characteristics • 4. Rapid Elasticity • Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.
  • 25. Five (5) Essential Characteristics • 5. Measured Service • Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.
  • 26. Five (5) Essential Characteristics • Also • Resiliency- By virtue of a given cloud deployment’s size, its service can survive interruption or loss of some physical components without loss of function • Redundancy - More availability, and better protection against loss or damage • Resolution - Automatic and dynamic resolution of resource identities and addresses – by necessity of design and scale • Ubiquity - Regardless of scope (public or private), the cloud is expected to be available within that scope
  • 28. Four (4) Deployment Models • 1. Public Cloud • A public cloud deployment makes it possible for anybody to access systems and services, and that makes it less secure as it is open to everyone. It is one in which cloud infrastructure services are provided by the entity that delivers the cloud services, not by the consumer. It is a type of cloud hosting that allows customers and users to easily access systems and services.
  • 29. Four (4) Deployment Models • 2. Private Cloud • A private cloud deployment is the opposite of the public cloud deployment model. It’s a single customer. There is no need to share your hardware with anyone else. The distinction between private and public clouds is in how you handle all of the hardware. It is also called the “internal cloud” and it refers to the ability to access systems and services within a given border or organization.
  • 30. Four (4) Deployment Models • 3. Community Cloud • A community cloud deployment allows systems and services to be accessible by a group of organizations. It is a distributed system that is created by integrating the services of different clouds to address the specific needs of a community, industry, or business. It is generally managed by a third party or by the combination of one or more organizations in the community.
  • 31. Four (4) Deployment Models • 4. Hybrid Cloud • A hybrid cloud deployment bridges the public and private worlds with a layer of proprietary software, and it gives the best of both worlds. With a hybrid solution, you may host the app in a safe environment while taking advantage of the public cloud’s cost savings. Organizations can move data and applications between different clouds using a combination of two or more cloud deployment methods, depending on their needs.
  • 33. Three (3) Service Models • 1. IAAS • Infrastructure as a Service (IaaS) on-demand access to cloud-hosted physical and virtual servers, storage and networking - the backend IT infrastructure for running applications and workloads in the cloud. • DigitalOcean, Linode, Rackspace, Amazon Web Services (AWS), Cisco Metapod, Microsoft Azure, Google Compute Engine (GCE)
  • 34. Three (3) Service Models • 2. PAAS • Platform as a Service (PaaS) is on-demand access to a complete, ready-to-use, cloud- hosted platform for developing, running, maintaining and managing applications. • AWS Elastic Beanstalk, Windows Azure, Heroku, Force.com, Google App Engine, Apache Stratos, OpenShift
  • 35. Three (3) Service Models • 3. SAAS • Software as a Service (SaaS) is on-demand access to ready-to-use, cloud-hosted application software. • Google Workspace, Dropbox, Salesforce, Cisco WebEx, Concur, GoToMeeting
  • 37. The Good, the Bad, and the Interesting of Cloud Computing
  • 39. Simplified Customer Acquisition • Per-usage tariffs on the infrastructure or platforms • Non-intermediated, automated self- provisioning over the internet • Homogenised packaging, pricing and delivery of services
  • 40. Elastic Demand • Get and pay for what you need when you need it (within reason) • Making it operational expense (Opex) rather than capital expense (Capex) intensive • Allows low-risk experimentation or agile demand fulfilment for out-of-the-ordinary IT requirements
  • 41. Utility Pricing • Utility pricing • Don’t pay for what you are not using • But pay a little more when you are • Consumer-style billing for everyone
  • 42. Developer Ecosystem • APIs • Tools • Low-friction entry points (often free to get hooked) • Theoretically easy portability and extractability but not always so in practice
  • 44. Security Issues • There is a lack of transparency of data location, access permission, soundness of security architectures. • These are significant security challenges.
  • 45. Missing or poor SLAs • Service-level agreements (SLAs) are important to establish clear commitments between a service provider and a customer. • SLAs are common in the telecommunications industry and provide corporations with a guarantee that certain standards will be upheld.
  • 46. Lack of Industry Standardisation • No ISO, DMTF, IEEE, etc. • De facto standards by virtue of commercial success
  • 47. No Real Contracts or Guarantees • In particular, what happens if a provider goes bust? Or if they get bought out. • There are a range of legal issues, here’s an older dissertation on this topic: • http://www.damiantgordon.com/Researc h/Dissertations/AlanHarris.pdf
  • 49. Business Impact • Cloud deployments challenge many existing business processes and the traditional IT/IS architectures and practices that support them • Cloud can be viewed as a disruptive innovation • Cloud can also be considered as another outsourcing option -- build-or-buy decision
  • 50. Business Impact • IT/IS leaders and managers cannot ignore this trend in their planning and strategy development • But there are always many snake-oil merchants all too willing to exploit on unsuspecting or poorly educated CIOs – cloud washing
  • 51. Business Impact • Cloud is creating new markets (for services) and is disrupting an existing market (proprietary infrastructure investment) • Cloud has many obvious disadvantages compared to owned technologies (e.g. security, reliability, risk of vendor lock-in)
  • 52. Business Impact • But the disruptive innovation model demonstrates how apparently inadequate technologies can initially satisfy basic customer needs and then succeed even more over time
  • 53. Business Impact • Incumbent suppliers (e.g. Dell, HP, IBM, Oracle) are trying to re-focus their business but can they be successful quickly?
  • 54. Business Impact • Cloud has enabled the creation of new businesses which may otherwise not exist • Could be entire new start-ups or new business units within existing companies • Cloud’s low friction, low cost acquisition model changes the game
  • 55. Business Impact • Facilitates a relatively risk-free trial-and- error approach to the marketplace – significant capital commitment not necessarily required to validate an idea • Published cloud tariffs allows rough cost- estimates to be made
  • 56. Business Impact • Staffing Considerations: • The risk of losing existing IT skills which may not be a problem if they are not core to the business activity – but it is rarely that simple • Existing and new staff may require different kinds of training • Pressures to reduce or redeploy headcount – risks to retention of key staff • Each consideration may tempt managers to postpone important decisions around cloud
  • 57. Business Impact • Market Considerations: • Regulatory framework in which the business might operate (e.g. banking or pharmaceuticals) • Customer attitudes towards their data • Competitors’ stance and relative adoption of cloud technology and whether this has or has not led to any perceived advantage