Cloud Computing

12/10/2010

Cloud Computing Table of Contents

Cloud Computing .......................................................................................................................................... 3 Introduction ............................................................................................................................................... 3 Cloud Computing ...................................................................................................................................... 4 Architectures ............................................................................................................................................. 6 Public cloud. ......................................................................................................................................... 6 Private cloud. ........................................................................................................................................ 6 Hybrid cloud. ........................................................................................................................................ 7 Current Business Issues & Proposed Solution .......................................................................................... 8 Security. ................................................................................................................................................ 8 Data Privacy. ........................................................................................................................................ 9 Internet Dependence. ............................................................................................................................ 9 Availability. ......................................................................................................................................... 10 Recommendations ................................................................................................................................... 11 Scalability. .......................................................................................................................................... 11 Savings. ............................................................................................................................................... 12 Agility. ................................................................................................................................................. 13 Disaster Recovery. .............................................................................................................................. 13 Bibliography ............................................................................................................................................... 15

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Cloud Computing Introduction Implementation of traditional company applications have always been viewed by companies as an expensive and time consuming proposition such as hosting servers, applications and other hardware and software inside their data centers. These solutions for companies take enormous amount of time, resources and capital to come to an agreeable solution. Agreeably so, it not only requires hardware and software but requires teams of experts to plan, install, configure, test and secure them. All this can be solved by a concept known as Cloud Computing. Cloud Computing is the term everyone is now hearing about. Cloud computing concept has been in the works for a quite a few years, but is now finally gaining momentum. Cloud computing is any service that is hosted or delivered via the Internet. It is essentially managed and provided by a service provider. In other words all that is required by a consumer is a computer and an Internet access and everything else that is, applications, servers, and IT infrastructure will be managed by a service provider. It enables businesses of all types from small to big corporations who cannot invest a lot of money in IT infrastructure an ability to grow using a service provider because cloud computing uses more than just the internet. In this case internet is the carrier but there are a whole lot of other technologies involved such as storage, virtual servers, disaster recovery, web servers, applications, hardware and software which will be discussed later that are necessary to make cloud computing work. The idea of an "intergalactic computer network" was first introduced in the sixties by J.C.R. Licklider, who was responsible for enabling the development of ARPANET (Advanced Research

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Projects Agency Network) in 1969. The inception of this technology started from Mr Licklider and some may argue that it was John McCarthy who in sixties also proposed the idea of computation being delivered as a public utility. Combined these two foresights led to the actual development of cloud computing which did not happen until the late 90s. In 1999, salesforce.com came up with the idea of Enterprise applications being delivered via the Internet using a website (Mohamed, 2009). Cloud computing is a wave of the future as it provides a deployment model where applications and infrastructure needs of companies are full filled by a provider as a service. Cloud model enables companies and organizations to reduce infrastructure costs by allowing them to grow or shrink their infrastructure based on their needs. Cloud Computing The goal of cloud computing is to provide scalable access to computing resources and IT services. Hoffmann and Jordan (2009) explain that cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the internet. Basically there are three major components. Applications: These are the day to day tools you use to run your organization (e.g. Skype, Google apps (maps etc), salesforce.com etc). In the cloud computing terminology SaaS (Software as a Service) is a cloud model where vendor supplies the hardware infrastructure and software and where consumer interacts with that using a front end portal. Platform: These are the tools vendors use to build applications for organizations (e.g. Amazon web services, Facebook etc). Platform as a service (PaaS) is a cloud model

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where the provider provides product development tools and software which a developer uses to develop applications using the providers platform. Infrastructure as a Service: Pieces of common functionality that you can mash up with your internal organizational applications (e.g. Google checkout, Google maps, PayPal etc). This is also referred sometimes as utility computing in a cloud model. In this model the provider provides virtual server instances with unique IP addresses and blocks of storage on demand. Customers use providers application program Interface (API) to start, stop, access, and configure their virtual servers and storage. This is pay as you go model where you pay for as much capacity as needed. In the world of cloud computing technology whether it is SaaS, IaaS or PaaS the question often comes up as to why a particular organization care about it. The simple answer to that is cloud computing benefits organizations of any size; small, medium or large as they have access to the same technology in the cloud (Hoffmann & Jordan, 2009). Cloud computing brings on a whole new mindset for how IT solutions are created. The one good thing about it is that it does not rely on heavy infrastructure back in your server room or data centers. This infrastructure is offloaded to the service provider who manages and hosts it. This provides organizations with the ability to roll out and modify applications faster, cheaper, with minimum training, and less maintenance compared to many traditional models. This model not only necessitates a heavy investment in real estate to house the needed hardware and software but also require resources to manage it and depending on the organization or business it can get very expensive. Cloud computing has already proven worthy of attention from established enterprises and start-ups alike. Most businesses are looking at cloud computing with more than just idle curiosity

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(Kommalapati, 2010). Microsoft made a huge bet on cloud computing by releasing their Windows Azure platform and the necessary supporting services for building and running industrial-strength services in the cloud. Microsoft is really promoting their Azure platform (Kolakowski, 2010). Architectures

Even though cloud computing is an emerging technology there are essentially two types of cloud computing architectures; public cloud and private cloud. Public cloud. Public cloud as the name suggests is cloud architecture that is easily accessible by the public or better yet by public via Internet that most people have access to. In the public cloud emerging devices with a browser such as cell phones, iPod touch, laptops etc can access the data provided by a public cloud simply with a browser interface with broadband or wireless connection. This form of cloud computing offers businesses of all sizes options of immensely reducing their infrastructure and maintenance costs. The service providers provide the needed infrastructure, applications and maintenance to offer this service which means cost savings and create business competitiveness for their respective companies. Private cloud. Private clouds follows the same principle as the public cloud but it is essentially not offered to public it is a technology or infrastructure that is behind a firewall. It basically provides access to its infrastructure to only people who belong inside the firewall. Once you are inside the firewall it works the same as a public cloud. For companies that want to protect their

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sensitive data can use the service providers that offer a private cloud. It also provides the

flexibility of reduced infrastructure and maintenance costs. Companies of all size depending on their line of business can implement a private cloud infrastructure. This type of infrastructure is for the type of companies who do not want to expose their data and information due to internet security risks as they want to protect their data. Hybrid cloud. This model is as the name suggests a conglomeration of the 2 architectures mentioned above. This type of architecture serves companies that want both needs served. They can have data and applications on the public cloud to serve the public and keep the sensitive and protected data inside the firewall on a private cloud. The success of cloud computing is largely based on the effective implementation of its architecture. In cloud computing, architecture is not just based on how the application will work with the intended users. It requires an intricate interaction with the hardware which is very essential to ensure uptime of the application. These two components (hardware and application) have to work together seamlessly or else cloud computing will not work. If the application fails, the hardware will not be able to push the data and implement certain processes (Cloud Computing Architecture). On the other hand, hardware failure means stoppage of operations. For that reason, precaution has to be taken so that these components will be working as expected and necessary fixes has to be implemented immediately for prevention as well as quick resolution. The architectures described above make it easy for companies to easily change their virtual

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environments or infrastructure to meet demands that are easy to implement, faster and cost efficient. Current Business Issues & Proposed Solution When it comes to cloud models there are certain aspects of the model that many

companies are concerned about some of which are Security, Data privacy, Internet dependence and availability. Security. For any organization or company security of their data and information is the number one priority. While having remote servers is not a new concept but recent development of having cloud models as a path forward for doing business warrants a careful look at data security. When it comes to reasons given as to why organizations avoid cloud computing, security is the top reason. Putting your business-critical data in the hands of an external provider still sends shivers down the spines of most CIOs. In adopting this model as a way forward for doing business companies have to rely on security features that remote providers are providing and guaranteeing. It is no different than the company deploying security solutions provided by a vendor. Companies need to adopt a practical approach in implementing such models. They need to rigorously screen the vendor that is offering them the solutions as a provider. Only by giving up some control over the data can companies get the cost economies that are available. There are many staggering statistics that companies have such as; one performed by (Intellectual Property Breaches Plague 32 Percent of Surveyed Companies), that states about 58% companies believe that the threat of a breach comes from inside a company. Companies have to decide whether the security within the company is more secure than what the cloud providers provide? Based on the

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facts mentioned above, companies data and information is actually equally protected as it would be if they housed this information on their own servers in their data centers. Data Privacy. Data in the cloud model has to physically exist on servers and in data center type locations. It can be housed locally in a specific country or can be globally housed. It all depends on who the providers are and how they operate in terms of their presence. If they are local to the business environment they operate in then they might have setups in countries where their cost of operations are much less cheaper than the environment they operate in. Hence the issue of data location and privacy can become a concern for companies. This is especially important for companies that do business across national boundaries, as different privacy and data management laws apply in different countries. Another data issue to address is: What happens to your data in a legal entanglement? What if you miss paying a bill, or decide not to pay a bill for various reasons, like dissatisfaction with the service? Do you lose access to your data? In such situations or business models companies can include legal clauses and agreements in place where proper safeguards are put in place to prevent a provider from withholding access to your data. Internet Dependence. There are also concerns about cloud computing and its physical capability to deliver via the Internet with quality and performance. Due to these issues companies often have concerns with the reliability of Internet connections that is what happens if they lose their Internet connections. Most applications that are investigating or leaning towards a cloud model will not

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have their existing systems and applications designed to work in a cloud environment and hence will have cost associated to design their applications to work more efficiently in a cloud environment. So organizations will have to factor in the cost of moving to the clouds without having to have infrastructure and hardware to invest in. So from a strategic perspective there will be a cost benefit moving to the cloud. Coming back to the concerns about Internet dependency and latency in a cloud model, according to an article published by IBM engineers states that even though Internet dependence and latency is a major concern for organizations in adopting a cloud solution, there are variety of protocol innovations that have appeared in the market place to address these concerns (DeCusatis & Bundy, 2009). Organizations considering investing in cloud computing will certainly have to factor in costs for improving the network infrastructure required to run applications in the cloud. On the plus side, bandwidth continues to increase and protocols are there to handle these concerns. Availability. One of the most common concerns regarding cloud computing is the potential for downtime. This is a critical issue for most businesses that rely on availability to continue their operations 24 X 7. Every second of unavailability can affect not only their revenue but their reputation as a business. Imagine an online retailer such as Amazon being down or not available. Providers of cloud services need to deliver on their uptime guarantees as it is crucial to the success of their clients they provide service to. According to an article (Ensuring High Service Levels in Cloud Computing, 2009) of nimsoft Service Level Agreements (SLAs) and accountability will be vital for any company who plans on adopting this model. Since the assets and infrastructure will not be owned by companies establishing sound monitoring practices from

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the outset will bring significant long term benefits. Many companies thinking of adopting cloud computing will look at the service-level agreements (SLAs) to give them some comfort about availability. Surprisingly, some cloud providers dont even offer SLAs and many others offer inadequate SLAs (in terms of guaranteed uptime.) Cloud providers will need to get serious about offering credible SLAs if the growth of cloud computing is not to stall. Increased competition will help and will push the early entrants to provide greater assurance to their customers. Recommendations Scalability. Cloud computing is the way forward for most companies as it is scalable. The elasticity that a cloud provides is one of the key benefits. Scalability is the ability for a platform to expand or contract based on needs of a business. The concept of physical to a virtual infrastructure is an important element that this model offers. The benefit that a companys virtual infrastructure can grow within minutes rather than months in a traditional model to acquire, configure and implement hardware is not only cumbersome but an expensive move (Ellis, 2010). Cloud gives companies scalability as well as an edge over competition and yet keep their balance sheets stronger. According to Ellis (2010) companies like Bluelock and others provide extensive solutions in the cloud computing technology. The ability of the platform to expand and contract based on capacity needs, and the changing model associated with this, are key elements that distinguish cloud computing from other forms of hosting. Another elasticity that a cloud offers is on the application front. Imagine a web application that in the beginning is used by a few users and rapidly gains popularity. You may have started with a small server to handle the load, in a cloud environment when it gains

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momentum you can easily expand the server or servers to meet the growing user demands. At the software level cloud computing allows developers and IT operations to develop, deploy and run applications that can easily grow capacity, work fast and never or at least rarely fail, all without any concern as to the nature and location of the underlying infrastructure. One shouldnt forget the advantage cloud computing can offer new and small businesses that has the potential to grow but may not have the huge budget to foot the bill on infrastructure cost. Savings. Businesses and organizations small or large are very conscious about how they invest and what value a particular investment is going bring them. In the old way of doing things, a large investment is made early in the project prior to system build out, and well before the business benefits are realized. Cloud computing offers a significant benefit as it does not require a heavy investment but yet offers the same value to businesses as a traditional model would bring without requiring a large capital investment. A cloud based solution essentially is moving from a capital investment to an operational expense. Cost is not only a driver for companies moving from traditional models to a cloud based model it will be seen as one of the big factor in moving towards it. When a true comparison is done as in the case of preferred hotel group as mentioned in the article Cost savings as a Driver for Cloud Computing where they moved from a modest data center to a enterprise cloud environment with 10 virtual servers. According to their senior IT manager of operations If you go to the board, is it an easier sell to say we need to spend $200,000 in capital costs and $10,000 a month? Or just pay a $10,000 implementation cost and $16,000 per month?

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(Miller, 2008). And when the other advantages are taken into account then cloud computing can really stack up as a viable option. Agility. One of the understated advantages of cloud computing is that it enables an organization to be more agile. Most cloud providers employ infrastructure software that can easily add, move or change an application with very little, if any, intervention by cloud provider personnel. This dynamic, elastic nature of cloud computing is what gives it a big advantage over an in house data centre. Cloud computing allows organizations to react more quickly to market conditions and to scale up and down as needed. New applications can be quickly released with lower up-front costs. This flexibility offered by cloud computing enables innovative ideas to be rapidly tried and tested without the need to divert existing IT staff from their daily routine. Disaster Recovery. With cloud computing, the burden of managing technology is managed by the provider. It is their responsibility to provide built-in data protection, fault tolerance, self-healing and disaster recovery. To this point, choosing a quality or trusted provider is the key. Also, as mentioned in previous points, for successful solutions companies need to be tightly engaged with these providers and have detailed SLAs covering their concerns to make sure companies promises to their clients are delivered. By doing this not only a provider is tested to the ability to answer what if type scenarios but it builds a stronger relationship between the provider and organizations implementing cloud solutions (McKay, 2010). Additionally, because cloud service providers replicate their data, even the loss of one or two data centers will not result in lost data. Cloud

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computing provides a high level of redundancy at a price point traditional managed solutions cannot match.

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Bibliography Cloud Computing Architecture. (n.d.). Retrieved November 2010, from Exforsys Inc: http://www.exforsys.com/tutorials/cloud-computing/cloud-computing-architecture.html

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DeCusatis, D. C., & Bundy, T. (2009, October 27). Limiting Latencies in the Cloud . Retrieved November 2010 , from HPC wire: http://www.hpcwire.com/specialfeatures/cloud_computing/news/Limiting-Latencies-in-theCloud-65657792.html Ellis, J. (2010, November 11). Thinking Differently about Scalability with Cloud Computing. Retrieved November 2010, from vmware: http://blogs.vmware.com/vcloud/2010/11/thinkingdifferently-about-scalability-with-cloud-computing.html Ensuring High Service Levels in Cloud Computing. (2009). Retrieved November 2010, from nimsoft: http://www.nimsoft.com/whitepapers/downloads/Nimsoft-cloud-service-levels.pdf Hoffmann, R., & Jordan, R. (2009, June 18). Cloud Computing 101: What You Need to Know. Retrieved November 2010, from NTEN: http://www.nten.org/blog/2009/06/18/cloud-computing101-what-you-need-know Intellectual Property Breaches Plague 32 Percent of Surveyed Companies. (n.d.). Retrieved November 2010, from PR Newswire: http://www.prnewswire.com/news-releases/intellectualproperty-breaches-plague-32-percent-of-surveyed-companies-51625747.html Kolakowski, N. (2010, January 30). Microsoft Promoted Azure, Office 2010 During Earnings Call, But Dodged Mobile. Retrieved November 2010, from eWEEK:

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http://www.eweek.com/c/a/Windows/Microsoft-Promoted-Azure-Office-2010-During-EarningsCall-But-Dodged-Mobile-508838/ Kommalapati, H. (2010, February). Windows Azure Platform for Enterprises. Retrieved November 2010, from MSDN Magazine: http://msdn.microsoft.com/enus/magazine/ee309870.aspx McKay, D. (2010, November 10). Disaster Recovery and The Cloud: A Recipe for Success. Retrieved November 2010, from Security Week: http://www.securityweek.com/disasterrecovery-and-cloud-recipe-success Miller, R. (2008, Novmeber 25). Cost Savings as a Driver for Cloud Computing. Retrieved November 2010, from Data Center Knowledge: http://www.datacenterknowledge.com/archives/2008/11/25/cost-savings-as-a-driver-for-cloudcomputing/ Mohamed, A. (2009, March 27). A history of cloud computing. Retrieved November 2010, from Computer Weekly: http://www.computerweekly.com/Articles/2009/06/10/235429/A-history-ofcloud-computing.htm