SMEs IT Infrastructure

Management, Adoption Of The

Clouds

St. Xavier’s College, Kolkata

Department Of Logistics & Supply Chain
Management
Submitted & Presented By
Nirmalya Fadikar
Roll No. 15
“Our planet is getting smarter. IT infrastructure is
reaching a breaking point. As the planet gets smarter,
demands on IT will grow.” IBM Smart Planet.
A new era is here
o Information technology is changing rapidly, and now forms an invisible layer that
increasingly touches every aspect of our lives. Power grids, traffic control,
healthcare, water supplies, food and energy, along with most of the world's
financial transactions, now depend on information technology.
o An emerging IT delivery model—cloud computing—can significantly reduce IT
costs & complexities while improving workload optimization and service delivery.
Cloud computing is massively scalable, provides a superior user experience, and
is characterized by new, internet-driven economics.
o The first six decades of Information Technology (IT) have witnessed startling
evolution across several dimensions like:
Infrastructure paradigms like centralized computing, personal computing, client-
server computing, the Internet and mobile computing. Technology abstractions
like operating systems, database and transaction processing, application
components and service oriented architectures. Application domains like personal
productivity and collaboration, industry-specific platforms and enterprise
applications. Service models like infrastructure services, application management
services, systems integration and consulting services.
 Indian SMEs The Road Ahead
• With India’s vast cultural diversity, geographical expanse and entrepreneurial spirit,
Small and Medium Enterprises ( SMEs) have always played a vital role in the growth
of India’s economy.
• SMEs have over a 45 percent share in manufacturing output in India, producing over
6000 value added products.
• They contribute nearly 40% in the overall export from country.
• They are one of the biggest employment-providing sectors after agriculture,
accounting for employment to about 60 million skilled and unskilled people.
• Indian SMEs are facing tough competition from their global counterparts due to
liberalization, change in manufacturing strategies, tarbulent and uncertain market
scenarios and need to adopt certain strategies for growth.
• The growth rate for SMEs has always been higher than the rate of growth of the
industrial sector as a whole. To maintain the same momentum and to be competitive,
they will incrisingly need to learn and imbibe the process of innovation, in their day to
day working.
• For India to achieve a growth rate over 8%, it is imperative that the industrial sector
as well as the SMEs grows at a faster pace.
 SMEs IT Infrastructure
• The IT spends of small and medium enterprises ( SMEs) are increasing by astounding
amounts each year.
• Industry trends show that not only are SMEs increasingly spending more on
hardware, but are also looking for innovative solutions that help them in reducing
overall costs.
• A 2008 AMI- Partners report stated that in 2008 SMEs in India were set to spend US
$ 9.7 billion on IT, which was up 22 % from 2007.
• Every business will have a set of critical business applications, like ERP, CRM or plain
old accounting software, which would form a major part of its IT usage and
infrastructure.
• By outsourcing IT functions, an SME can save time, effort and money that can be put
back into the core functions of the company.
• Depending on budget and need there is a whole range of new innovative cloud
based applications that can be used, from different sets of ERP, CRM, groupware,
office suites, to conferencing applications.
 Cloud – The Next Generation Of IT Infrastructure
• Cloud Computing Defined
“It’s one of the foundations of the next generation of computing. . .. It’s a world where the
network is the platform for all computing, where everything we think of as a computer
today is just a device that connects to the big computer we’re building. Cloud computing is
a great way to think about how we’ll deliver computing services in the future.”
—Tim O’Reilly, CEO, O’Reilly Media
• National Institute of Standards and Technology (NIST)-
“Cloud computing is a model for enabling convenient, on-demand network access to a
shared pool of configurable computing resources (for example, networks, servers, storage,
applications, and services) that can be rapidly provisioned and released with minimal
management effort or service provider interaction. This cloud model promotes availability
and is composed of five essential characteristics, three service models, and four
deployment models.”
• An architecture emerged: massively scaled, horizontally distributed system resources,
abstracted as virtual IT services and managed as continuously configured, pooled resources.
This architectural model was immortalized by George Gilder in his October 2006 Wired
magazine article titled “The Information Factories.”
 Cloud Computing – TCS perspectives
 A Cloud is a set of IT infrastructure optimisation techniques rolled into one and
offered as a shared service to its customers. A Cloud Computing model is generally
characterised by:
• A true on-demand computing paradigm
• Decoupling of application design and development from deployment
• Automated system deployment and scaling
• A pay-per-use pricing model
• Flexible access models
Cloud Computing services offer three key benefits:
Cloud services offer an illusion of the availability of infinite compute resources on-demand,
and thereby eliminate the need for Cloud users to plan ahead for provisioning.
Cloud services eliminate any up-front commitment by Cloud users, thereby allowing
companies to start small and increase hardware resources only when there is an increase in
their needs. Thus, companies can deploy a service and scale on demand without taking the risk
to build or provision a data centre for an unknown future service demand. This not only
eliminates the upfront capital investment for Cloud users, but also transfers the risk of over-
provisioning (under utilisation) and under-provisioning (saturation) to Cloud providers.
The ability to pay for use of computing resources on a short-term basis as needed (for
example, processors by the hour and storage by the day) and release them when they are no
longer useful leads to significant economic benefits.
 Classification Of Cloud
Public clouds
Private clouds
Hybrid clouds
Future OF Cloud Infrastructure
CLOUD Infrastructure Offerings
CLOUD Infrastructure Layout
Corporate Viewpoint
 ERP and Cloud Computing Trends
Because of tightening budgets IT manager are looking for more affordable, high
powered enterprise systems and ERP software solutions such as the web based ERP
applications. IT managers in many cases are finding cloud computing applications easier
to use and deploy thus further reducing the time and cost of meeting specific business
needs with robust, on demand ERP Cloud Computing technologies.

In a nutshell, the key benefits delivered by Cloud Computing ERP applications are a
faster time to value, minimal to zero capital outlays, minimal operational and
maintenance costs, fewer required IT resources (both on the front end and the back
end), and an easier implementation and integration.
Business Intelligence in the Clouds
 The convergence of the Cloud, Open Source, and specialized analytic databases
has brought a new world of possibilities to businesses. No longer are dedicated
hardware and software required to meet ad hoc or unpredictable BI requirements.
The combination of these technologies running in the cloud will enable
organizations to:

• Create analytical sandboxes on demand to optimize response to sudden market

changes
• Offload expensive processing from overburdened data warehouses and avoid
costly upgrades
• Prototype new proof-of-concept BI applications without purchasing and
implementing new data center infrastructure
• Run full business intelligence and data warehousing for existing cloud applications
entirely in the cloud.
Get started with the new Business Intelligence Solution in the Cloud.

On-Demand: Ready at a moment's notice for on-premise or cloud applications

Elastic: BI infrastructure that expands and contracts with your requirements
Affordable: no large upfront costs, pay as you go
 Vision for Next Generation CLOUD
Computing Services
 Next generation enterprise computing services
environment should:
• Support high-level specifications of IT service definitions,
their Service Level Objectives (SLO) and business priorities.
• Support automated provisioning, allocation and
optimization of resource allocations based on these
specifications to meet these SLO requirements.

• Achieve low cost.

Next Generation Computing Services
 To meet these objectives, the design of an enterprise
computing environment should be driven by the
following principles:
• Right sizing: The infrastructure provisioned for delivering services should be just as large
as required—overprovisioning (under utilization) and under-provisioning (saturation)
should be avoided. Note that each infrastructure component is a multi-dimensional
resource. For instance, a server is a resource with three dimensions: compute capacity,
memory size and IO/network bandwidth. Similarly, a storage device is a twodimensional
resource (with storage capacity and read/write bandwidth as the two dimensions). The
infrastructure should be provisioned and configured with the right amount of resource on
each of these dimensions. Over provisioning on any dimension increases the cost.

• Diversity reduction: Diversity is defined with respect to the hardware and software stacks
supported within an infrastructure. When the diversity is greater, the overhead and cost of
maintaining the infrastructure is higher.

• Sharing: The computational demands of most services fluctuate significantly over time.
Thus, sharing or multiplexing the resources available within a data centre is a key principle
in reducing the overall footprint and the total cost of operating the environment.
• Elasticity: To enable an enterprise to benefit from using shared computing resources across
applications and business units, one must allow resources allocated to an application to grow
and shrink with demand. Further, applications should be architected to operate correctly and
efficiently in the presence of such fluctuations in resource allocations. Lastly, charging users (or
business units) based on the actual usage of resources (pay-asyou- use charging model) is
essential to promote elasticity. The charging model should also consider a finer granularity of
pay-per-use based on computation, storage and communication utilisation.

• Agility: An enterprise IT environment should leverage emerging technologies rapidly as well

as support rapid deployment of new applications and services to meet business demands.
Predictive: To drive most of the above principles and optimisation techniques, an enterprise
must rely upon predictive analytics on the data collected from its operational environment. To
support such analytics, the IT environment must be well instrumented and monitored to collect
data about infrastructure and application inventory, workload, performance, reliability, among
others.

Whereas these principles are relatively well understood, the design of enterprise computing
environments that satisfy the principles poses a significant challenge. Cloud Computing has an
important role to play in this.
Cloud Taxonomy
 The Cloud Taxonomy consists of 4 layers, 8 sub-layers,
and a variety of areas to address.
 The IaaS layer contains the following sub-layers:
• Physical Infrastructure – This addresses the elements of physical infrastructure such as
processors, storage, memory, network and devices.
• Logical Infrastructure – This is the backbone for Cloud infrastructure. Areas to address
include techniques for virtualization such as hypervisors, virtual operating systems, and
other logical elements such as utility computing and compute- grids.
 The PaaS layer contains the following sub-layers, which enable the building of true Cloud
applications:
• Abstractions – Building a Cloud application requires a review of almost every computing
paradigm to devise tools and techniques for exploiting the Cloud infrastructure. This sub-
layer also provides APIs to the higher layers to exploit the infrastructure. Some of the areas
to address will include programming techniques, file system, integration patterns,
techniques for data consistency, transactions.
• Enablers and Frameworks – These address the domain-independent tools and techniques
for building applications in the Cloud. These are reusable components for the higher-level
layers. Some of the areas to address will be Software Development Lifecycle tools, domain-
agnostic platforms, and common IT applications such as workflows.
The SaaS layer contains the following sub-layers and addresses the unique needs of the
customers by providing domain-specific software as a service. This contains the following sub-
layers:
• Domain Components – These address the domain-specific tools and techniques for building
applications on a Cloud. These are reusable business components. Areas to address will
include mashups, widgets, business services, domain-specific platforms such as mobile
application platforms, and so on.

• Applications – This sub-layer addresses various application offerings, horizontal and

domain applications that can be provided in a SaaS mode.

 The Cloud Services layer provides the unique services needed to truly disrupt business
models, and bring out the true value of Cloud Computing to enterprises.
Services – This sub-layer looks at the various service offerings provided by the IT vendors,
including advisory (consulting), migration, application development, and deployment.

Business Models – This sub-layer is unique to the Cloud. Areas to address will encompass
business concerns of consumers and providers, including the type of Cloud (private or public
or hybrid or federated), innovative pricing models, costing models, and innovative strategic
platforms. This area offers flexibility and provides infinite possibilities in disrupting the
business of IT.
 Cloud Security Challenges
• Trusting vendor’s security model
• Customer inability to respond to audit findings
• Obtaining support for investigations
• Indirect administrator accountability
• Proprietary implementations can’t be examined
• Loss of physical control; Data dispersal and international privacy laws
• Need for isolation management
• Multi-tenancy
• Logging challenges
• Data ownership issues
• Quality of service guarantees
• Dependence on secure hypervisors
• Attraction to hackers (high value target)
• Possibility for massive outages
• Encryption needs for cloud computing
 Recent Cloud Computing market activities
 Amazon Web Services
• Leading the industry with newer services,
• Added value 3rd party vendor market growing .
• Open Source of their API rumored.
 Microsoft
• Azure strategy growing, Office Live, Dynamics Live, etc.. And other key applications moved to
the cloud .
 Google
• AppEngine strategy, plus Google Apps being pushed more to the Enterprise.
 IBM
• Blue Cloud strategy, opening up Cloud Computing data centers in 13 areas in the world.
• Hybrid Cloud Computing strategy: （ Public Cloud （ Smart Business Test Cloud ） と Private
Cloud （ Cloud Burst) ）
 Oracle
• AWS EC2 sublicense, QWS S3 data backup service
• Acquisition of Coherence, Sun, BEA, Hyperion, Virtual Iron
 VMWare
• VMS-OS annoucement -- Cloud Computing infrastructure technology
• V Sphere announcement -- Cloud Computing business stratetgy
• Salesforce.com

Force.com business model available through Amazon Web Service, Google AppEngine

Force.com API open interface

 Ten things to consider before
deploying a cloud
• Time is always an issue.
• Hardware needs are huge.
• The process is difficult.
• Network speed can be a pain.
• Cost is a deal breaker.
• Image (s) is (are) everything.
• Reliability will bring you down.
• Security is not on duty.
• Environmentally unsound.
• Platform agnosticism is not a religion.
Ramco OnDemand ERP
Ramco Advantages
According to 2009 Global Survey of Cloud Computing
 Real-World Cloud Computing Applications
• Coca-Cola Enterprises uses a Cloud-based system to streamline operations with
merchandisers in the field.
• Nasdaq uses Amazon’s S3 Cloud Service to deliver historical stock and mutual fund
information, rather than add the load to its own database and computing infrastructure.
• Animoto, a small start-up which decided to use Amazon's Cloud Services, was able to keep
up with soaring demand for its service and scale up from 50 instances to 3,500 instances
over a three day period.
• Times wanted to place scanned images covering a 60-year period (15 million news
stories)online. After being repeatedly turned down by the CIO for the use of six servers,
the newspaper moved four terabytes into Amazon’s S3, ran all the software over a
weekend on EC2 for $25, and then launched its product in a matter of minutes.
• Mogulus streams 120,000 live TV channels over the Internet and owns no hardware
except for the laptops it uses. It handled all of the election coverage for most of the large
media sites. Its CEO states that he could not be in business without IaaS.
 An Indian Scenario
“ The domestic cloud computing market is expected to touch $1.08 billion by 2015 from $110
million currently” By research firm Zinnov .
 Conclusion
• Firms must utilize every tool at their disposal to compete successfully. Cloud computing technology,
when utilized in a thoughtful, measured way, can help firms increase flexibility and maximize resource
allocation. Whether a data storage solution, an analytics tool, a desktop management solution, or an
ERP solution - the cloud can provide the low-cost, low-maintenance infrastructure to manage a myriad
of IT resources.

• Cloud platforms don’t yet offer the full spectrum of an on-premises environment. For example, business
intelligence as part of the platform isn’t common, nor is support for business process management
technologies such as full-featured workflow and rules engines. This is all but certain to change,
however, as this technology wave continues to roll forward.

• Cloud platforms aren’t yet at the center of most people’s attention. The odds are good, though, that this
won’t be true five years from now. The attractions of cloud-based computing, including scalability and
lower costs, are very real. If you work in application development, whether for a software vendor or an
end user, expect the cloud to play an increasing role in your future. The next generation of application
platforms is here.

• The demand for cloud computing resources is predicted to grow. According to a Gartner study, by 2011,
40 percent of early technology adopters will purchase IT infrastructure as a service.