The Strategy of IT Interprise in the

Cloud Computing Era

Presented by: Nguyen Dieu Linh

 Contents
 Information system strategy of the cloud computing era
 Core/context analysis
 Mission-critical/ Non mission- critical analysis
 The current challenges of cloud computing
 Current form of service level agreement
 Social infrastructure required for reliable cloud
 Do you have solution to get confidence
 Small and medium enterprise actively use SaaS
 Internet venture individual developer arriving the ideal era
 Private cloud

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 Information system strategy of the cloud computing
era

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 Objectives of Cloud Computing
• Core objectives and principles that cloud
computing must meet to be successful:
– Security
– Scalability
– Availability
– Performance
– Cost-effective
– Acquire resources on demand
– Release resources when no longer needed
– Pay for what you use
– Leverage others’ core competencies
– Turn fixed cost into variable cost
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 Software as a Service (SaaS)
• Applications (word processor, CRM, etc.) or application services (schedule,
calendar, etc.) execute in the “cloud” using the interconnectivity of the
internet to propagate data
• Custom services are combined with 3rd party commercial services via
orchestration to create new applications
• Requires investment to build an enabling layer with governance, security
and data management functionality
• May require integration with back-office systems
• Pay-as-you-go model

SaaS will disrupt the application management functions for both internal IT and
outsourcers
Slide
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 Benefits of consuming SaaS
Management the risks of software acquisition :
traditionally, cost much for buying, integrating and
maitaining the software, now it is SaaS’s job less
time and cost
Managing IT focus – not taking much time on
updating software and some IT job focus on high
value activities and support the business goals of the
enterprise

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 Platform as a Service (PaaS)
• Applications are built in the “cloud” on the platform using a variety of
technologies
• Simplifies orchestration of cloud services
• Development, testing, and production environments (servers, storage,
bandwidth, etc.) are billed monthly like hosting
• Pay-as-you-go model
• Environments scale up & down at the click of a button
• Concerns include code & data privacy, security and scalability

PaaS will disrupt the application development and management functions for
internal IT
 Infrastructure as a Service (IaaS)
• Compute resources (processors, memory, storage, bandwidth, etc.)
are provided in an as-needed, pay-as-you-go model
• Able to provide from single server up to entire data centers
• Creates new opportunities such as Cloud bursting: shifting usage
spike traffic to alternate resources
• Infrastructure scales up and down quickly to meet demand
• Built on a utility computing architecture to host a SOA application
layer

IaaS will disrupt the infrastructure management functions for both internal IT
and outsourcers
 Individual
Enterprise HaaS PaaS SaaS

Application Application Application Application

Platform Platform Platform Platform

Infrastructure Infrastructure Infrastructure Infrastructure

In both its ownership and control can
be
Cost much more reluctant
Greater operating load
High Scalability
Operation in the provider
Operating in a discretionary
Provider
Be dedicated(tan tuy, danh rieng) to application Quick to use
development High Scalability
Operating in a discretionary(lam theo y minh) Operating in a discretionary Provider
Provider
Depend on providers concerned

large Range of controlling itself small

high Cost low

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 Core/Context Analysis
IT enterprise must separate core and context activities
Core activities differentiate from its competition
Context activities consist everything else needed for
the business to operate
++ businesses accelerate their adoption of on-
demand applications

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 Core/Context Analysis
 Goeffey A. Moore points out, organizations should be
looking to build “core,” because that is the unique
intellectual property of the organization, and to then
buy “context.” They need to understand, how do I get
the lowest-cost provision of something that doesn’t
make a huge difference to my product or service
 The “context” applications are not less important, but …
you should be looking to understand how that could be
done in terms of lower-cost provisioning.

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 Mission Critical Analysis
Mission activities: directly produce the output of the
organization
Non –mission ativities: indirectly support the mission
activity

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 Core/Context Analysis

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 Core/Context Analysis

Differentiate Standardize
(deploy) (manage)

Experiment Outsource
(invent) (offload)

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 Core/Context Analysis

Enterprise SaaS

PaaS
HaaS SaaS

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 The current challenges of cloud
computing

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 10 Challenges [Above the Clouds]
(Index: Performance Data-related Scalability Logisitical)

 Availability of Service: Use Multiple Cloud Providers; Use Elasticity;

Prevent DDOS
 Data Lock-In: Enable Surge Computing; Standardize APIs
 Data Confidentiality and Auditability: Deploy Encryption, VLANs,
Firewalls: Geographical Data Storage
 Data Transfer Bottlenecks: Data Backup/Archival; Higher BW Switches;
New Cloud Topologies; FedExing Disks
 Performance Unpredictability: QoS; Improved VM Support; Flash
Memory; Schedule VMs
 Scalable Storage: Invent Scalable Store
 Bugs in Large Distributed Systems: Invent Debuggers; Real-time
debugging; predictable pre-run-time debugging
 Scaling Quickly: Invent Good Auto-Scalers; Snapshots for Conservation
 Reputation Fate Sharing
 Software Licensing: Pay-for-use licenses; Bulk use sales
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 Challenges
Security
Data location
Access log management
Performance
Portability
Software license
Data backup

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 Security Is the Major Challenge

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 1. Security
• Clouds typically have a single security architecture but
have many customers with different demands
• Cloud security issues may drive and define how we adopt
and deploy cloud computing solutions
• Highly sensitive data is likely to be on private clouds
where organizations have complete control over their
security model
• It is still unclear how safe out-sourced data is and when
using these services ownership of data is not always clear

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 2. Do not know about data location
Advantages
• Can acess anywhere, anytime
• Don’t need to know about data location
Disadvantages:
• Trusting vendor’s security model
• Where is the data stored and who is securing it
• Inability to respond to audit requirements
• Indirect administrator accountability
• Loss of physical control
• Data retention / backup standards
• Redundancy / Disaster Recovery

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 3. Acess log management
Amazon CS3 provide access log management

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 4. Performance
Depend on the infrastructure of provider
The distance between the business and the service is
greater than from a local data center
Increasing of services place in for efficiency

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 5. Portability
Portability is made by no need to maintain a complex
system, infrasture can not change from a platform
to another platform

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 6. Software license
Individual pay much for software if they want to use
cloud services

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 7. Data backup issue
1. Is the backup software platform optimized for cloud backup or is it just an
update of an old tape-based backup application?
2. Does the software support backup to multiple cloud storage providers?
3. Does the backup solution align the value of customer data with the cost of
protecting it?
4. Does the backup software meet federal data security standards?
5. Does the backup software support hybrid cloud backup?

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 Current Shape of Level Service
Agreement

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SLA – Service Level Agreement
• Contract between customers and service providers of the level of service to be
provided
• Contains performance metrics (e.g., uptime, throughput, response time)
• Problem management details
• Documented security capabilities
• Contains penalties for non-performance
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 Providers’ SLA
Provider’s Name Category SLA Penalty
Google/Google Apps SaaS Utilization Service period of 3-15 days
Premier Edition 99.9%/month after the end of the free
additional services
Amazon.com/Amazon HaaS/Storage Utilization Charges do not meet the
S3 99.9%/month SLA of the month after the
next 10-25% of available
credit to pay the fees have to
pay
Salesforce.com/Salesfor HaaS/Storage Standard contract Standard contract or
ce or
Oracle/Siebel CRM on SaaS/CRM Utilization If you use 15 minutes of
Demand 99.5%/quarter continuous downtime SLA,
you pay a fee of one minute
….. …… …… …..
….. …… …… …..

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 The important of Service Level Agreement
IT enterprise need to focus on creating meaningful SLA as way of
monitoring, managing, incentivizing efficiency at operational and
technique levels
SLAs may include:
Performance parameters
Location of data
Metrics for events
Backup/recovery and contuinty requirements
Quality of service
Cost
Reliability
Refresh circle(releases/versions)
Pernalties for non-achievement of the above

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 Measuring the reliability
Almost SaaS provider support status information in
the provider's service health dashboard

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 Small and medium enterprise actively use SaaS
Google Apps: provide mail box for free, also have filter
tools(don’t need maintainance)
Google also support calendarshare schedule
Microsoft: Word, excel

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 Internet venture individual developer arriving the ideal era
Internet Venture or personal use SaaS, PaaS don’t
need to think about internet or network infrastruture
Can build company with smaller resource than before
Google support more than 5000 000 accessories for
free
Internet ventures host Cloud services
Developer develop cloud services
Now the time for their development

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 Amazon S3 service
The Amazon S3 SLA provide a service commit of 99.9%
calculated for a monthly billing cycle.
Error rate:
Monthly Uptime Percentage
Service Credit
For a given billing month, if the service commitment(dieu rang
buoc) goes below 99.9% up to 99%, a 10% service credit
percentage is given; If it goes below 99%, a 25% service credit
percentage is given. Service credit is define as the payment of
month. The service credit given as part of the SLA, is
adjustable in the subsequent month bills. There are exclusions
for the calculation of un-availability of service.

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 Private cloud
 A private cloud is a cloud computing infrastructure created by an organization for its own internal
use, rather than using someone else’s infrastructure (e.g., Amazon EC2).
 Some vendors have used the terms to describe offerings that emulate
cloud computing on private networks.
 These offerings capitalise on data security, corporate governance, and reliability
concerns during this time of transition from a product to a functioning service based
industry supported by competitive marketplaces.
 They have been criticized on the basis that users "still have to buy, build, and manage
them" and as such do not benefit from lower up-front capital costs and less hands-on
management, essentially "[lacking] the economic model.

Private Cloud Public Cloud

Cloud Cloud
definition/ definition/
governance governance
controlled by controlled by
enterprise provider
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 Private cloud
the most efficient and powerful infrastructures for
"cloud" support capabilities, high utilization and
lowest total costs become imperative.
Amazon, Google, Yahoo, IBM, HP, EMC, Sun and
Microsoft are all building huge cloud compute
capabilities. Large enterprises and governments that
also seek high performance and lowest costs will and
should seek to emulate these providers and
create "private cloud" datacenters where it
makes sense.

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 Question

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