"Business Models in Cloud Computing": Assignment-1

Business Module In Cloud Computing
ASSIGNMENT-1
Report on
Business Models in Cloud computing
Submitted By:Bhartendu Kumar (2K12A15 ) Biswajit Maity (2K12A16) Debabrata Mallik (2K12A17)
Submitted to:Prof. VIKAS KUMAR
TITLE
content
Introduction What is Cloud Grid computing or cloud computing Benefits of using cloud computing Is the Cloud Model Reliable or not Infrastructure as a Service (IaaS) Platform as a Service (PaaS) API as a service (APIaaS) Conclusion References
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Introduction
The term cloud appears to have its origins in network diagrams that represented the internet, or various parts of it, as schematic clouds. Cloud computing was coined for what happens when applications and services are moved into the internet cloud. Cloud computing is not something that suddenly appeared overnight; in some form it may trace back to a time when computer systems remotely time-shared computing resources and applications. More currently though, cloud computing refers to the many different types of services and applications being delivered in the internet cloud, and the fact that, in many cases, the devices used to access these services and applications do not require any special applications .Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service
(PaaS) and Software-as-a-Service (SaaS). The name cloud computing was inspired by the cloud symbol that's often used to represent the Internet in flowcharts and diagrams. A cloud service has three distinct characteristics that differentiate it from traditional hosting. It is sold on demand, typically by the minute or the hour; it is elastic -- a user can have as much or as little of a service as they want at any given time; and the service is fully managed by the provider (the consumer needs nothing but a personal computer and Internet access). Significant innovations in virtualization and distributed computing, as well as improved access to high-speed Internet and a weak economy, have accelerated interest in cloud computing. A cloud can be private or public. A public cloud sells services to anyone on the Internet. (Currently, Amazon Web Services is the largest public cloud provider.) A private cloud is a proprietary network or a data center that supplies hosted services to a limited number of people. When a service provider uses public cloud resources to create their private cloud, the result is called a virtual private cloud. Private or public, the goal of cloud computing is to provide easy, scalable access to computing resources and IT services.
Infrastructure-as-a-Service like Amazon Web Services provides virtual server instance API to start, stop, access and configure their virtual servers and storage. In the enterprise, cloud computing allows a company to pay for only as much capacity as is needed, and bring more online as soon as required. Because this pay-for-what-you-use model resembles the way electricity, fuel and water are consumed; it's sometimes referred to as utility computing. Platform-as-a-service in the cloud is defined as a set of software and product development tools hosted on the provider's infrastructure. Developers create applications on the provider's platform over the Internet. PaaS providers may use APIs, website portal or gateway software installed on the customer's computer. Force.com, (an outgrowth of Salesforce.com) and Google Apps are examples of PaaS. Developers need to know that currently, there are not standards for interoperability or data portability in the cloud. Some providers will not allow software created by their customers to be moved off the provider's platform. In the software-as-a-service cloud model, the vendor supplies the hardware infrastructure, the software product and interacts with the user through a front-end portal. SaaS is a very broad market. Services can be anything from Web-based email to inventory control and database processing. Because the service provider hosts both the application and the data, the end user is free to use the service from anywhere.
What is cloud?
The term cloud has been used historically as a metaphor for the Internet. This usage was originally derived from its common depiction in network diagrams as an outline of a cloud, used to represent the transport of data across carrier backbones (which owned the cloud) to an endpoint location on the other side of the cloud. This concept dates back as early as 1961, when Professor John McCarthy suggested that computer time-sharing technology might lead to a future where computing power and even specific applications might be sold through a utilitytype business model. This idea became very popular in the late 1960s, but by the mid-1970s the idea faded away when it became clear that the IT-related technologies of the day were unable to sustain such a futuristic computing model. However, since the turn of the millennium, the concept has been revitalized. It was during this time of revitalization that the term cloud computing began to emerge in technology circles.
Grid Computing or Cloud Computing

Grid computing is often confused with cloud computing. Grid computing is a form of distributed computing that implements a virtual supercomputer made up of a cluster of networked or Internet worked computers acting in unison to perform very large tasks. Many cloud computing deployments today are powered by grid computing implementations and are billed like utilities, but cloud computing can and should be seen as an evolved next step away from the grid utility model. There is an ever-growing list of providers that have successfully used cloud architectures with little or no centralized infrastructure or billing systems, such as the peer-to-peer network Bit Torrent and the volunteer computing initiative SETI@home.Service commerce platforms are yet another variation of SaaS and MSPs. This type of cloud computing service provides a centralized service hub that users interact with. Currently, the most often used application of this platform is found in financial trading environments or systems that allow users to order things such as travel or personal services from a common platform (e.g., Expedia.com or Hotels.com), which then coordinates pricing and service delivery within the specifications set by the user.
Benefits of Using a Cloud Model

Because customers generally do not own the infrastructure used in cloud computing environments, they can forgo capital expenditure and consume resources as a service by just paying for what they use. Many cloud computing offerings have adopted the utility computing and billing model described above, while others bill on a subscription basis. By sharing computing power among multiple users, utilization rates are generally greatly improved, because cloud computing servers are not sitting dormant for lack of use. This factor alone can reduce infrastructure costs significantly and accelerate the speed of applications development.A beneficial side effect of using this model is that computer capacity increases dramatically, since customers do not have to engineer their applications for peak times, when processing loads are greatest. Adoption of the cloud computing model has also been enabled because of the greater availability of increased high-speed bandwidth. With greater enablement, though, there are other issues one must consider, especially legal ones.
Cloud computing exhibits the following key characteristics:
Agility improves with users' ability to re-provision technological infrastructure resources.
Application programming interface (API) accessibility to software that enables machines to interact with cloud software in the same way the user interface facilitates interaction between humans and computers. Cloud computing systems typically use REST-based APIs.
Cost is claimed to be reduced and in a public cloud delivery model capital expenditure is converted to operational expenditure. This is purported to lower barriers to entry, as infrastructure is typically provided by a third-party and does not need to be purchased for one-time or infrequent intensive computing tasks. Pricing on a utility computing basis is fine-grained with usage-based options and fewer IT skills are required for implementation
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(in-house). The e-FISCAL project's state of the art repository contains several articles looking into cost aspects in more detail, most of them concluding that costs savings depend on the type of activities supported and the type of infrastructure available in-house.
Device and location independence enable users to access systems using a web browser regardless of their location or what device they are using (e.g., PC, mobile phone). As infrastructure is off-site (typically provided by a third-party) and accessed via the Internet, users can connect from anywhere.
Virtualization technology allows servers and storage devices to be shared and utilization be increased. Applications can be easily migrated from one physical server to another.
Multitenancy enables sharing of resources and costs across a large pool of users thus allowing for:
Centralization of infrastructure in locations with lower costs (such as real estate, electricity, etc.)
Peak-load capacity increases (users need not engineer for highest possible load-levels)
Utilisation and efficiency improvements for systems that are often only 1020% utilised.
Reliability is improved if multiple redundant sites are used, which makes well-designed cloud computing suitable for business continuity and disaster recovery.
Scalability and elasticity via dynamic ("on-demand") provisioning of resources on a finegrained, self-service basis near real-time, without users having to engineer for peak loads.
Performance is monitored and consistent and loosely coupled architectures are constructed using web services as the system interface.
Security could improve due to centralization of data, increased security-focused resources, etc., but concerns can persist about loss of control over certain sensitive data, and the lack of security for stored kernels. Security is often as good as or better than other traditional systems, in part because providers are able to devote resources to solving security issues that many customers cannot afford. However, the complexity of security is greatly increased when data is distributed over a wider area or greater number of devices and in multi-tenant systems that are being shared by unrelated users. In addition, user access to security audit logs may be difficult or impossible. Private cloud installations are in part motivated by users' desire to retain control over the infrastructure and avoid losing control of information security.
Maintenance of cloud computing applications is easier, because they do not need to be installed on each user's computer and can be accessed from different places.
Is the Cloud Model Reliable or not

The majority of todays cloud computing infrastructure consists of time tested and highly reliable services built on servers with varying levels of virtualized technologies, which are delivered via large data centers operating under service-level agreements that require 99.99% or better uptime. Commercial offerings have evolved to meet the quality-of-service requirements of customers and typically offer such service-level agreements to their customers. From users perspective, the cloud appears as a single point of access for all their computing needs. These cloud-based services are accessible anywhere in the world, as long as an Internet connection is available. Open standards and open-source software have also been significant factors in the growth of cloud computing.
What about Legal Issues When Using Cloud Models
1. Notify individuals about the purposes for which information is collected and used. 2. Give individuals the choice of whether their information can be disclosed to a third party. 3. Ensure that if it transfers personal information to a third party, that third party also provides the same level of privacy protection 4. Allow individuals access to their personal information. 5. Take reasonable security precautions to protect collected data from loss, misuse, or disclosure. 6. Take reasonable steps to ensure the integrity of the data collected 7. Have in place an adequate enforcement mechanism.
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Business Models in Cloud computing
There are many types of public cloud computing: Infrastructure as a service (IaaS), Platform as a service (PaaS), Software as a service (SaaS) Storage as a service (STaaS) Security as a service (SECaaS) Data as a service (DaaS) Business process as a service (BPaaS) Test environment as a service (TEaaS) Desktop as a service (DaaS) API as a service (APIaaS)
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Infrastructure as a Service (IaaS)
According to the online reference Wikipedia, Infrastructure-as-a-Service (IaaS) is the delivery of computer infrastructure (typically a platform virtualization environment ) as a service . IaaS leverages significant technology, services, and data center investments to deliver IT as a service to customers. Unlike traditional outsourcing, which requires extensive due diligence, negotiations and infinitum, and complex, lengthy contract vehicles, IaaS is centered around a model of service delivery that provisions a predefined, standardized infrastructure specifically optimized for the customers applications .Simplified statements of work and la carte servicelevel choices make it easy to tailor a solution to a customers specific application requirements .IaaS providers manage the transition and hosting of selected applications on their infrastructure. Customers maintain ownership and Management of their application(s) while off-loading hosting operations and infrastructure management to the IaaS provider. Provider-owned implementations typically include the following layered components:
Computer hardware (typically set up as a grid for massive horizontal scalability)
Computer network (including routers, firewalls, load balancing ,etc.)
Internet connectivity (often on OC 192 backbones)
Platform virtualization environment for running client- specified virtual machines
Service-level agreements
Utility computing billing
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Rather than purchasing data center space, servers, software, network equipment, etc., IaaS customers essentially rent those resources as a fully outsourced service. Usually, the service is billed on a monthly basis, just like a utility company bills customers. The customer is charged only forresources consumed. The chief benefits of using this type of outsourced service include:
Ready access to a preconfigured environment that is generally ITIL-based(The Information Technology Infrastructure Library [ITIL] is a customized framework of best practices designed to promote quality computing services in the IT sector.)
Use of the latest technology for infrastructure equipment Secured, sand-boxed (protected and insulated) computing platforms that are usually security monitored for breaches
Reduced risk by having off-site resources maintained by third parties
Ability to manage service-demand peaks and valleys
Lower costs that allow expensing service costs instead of making capital investments
Reduced time, cost, and complexity in adding new features or capabilities
Examples of IaaS include: Amazon Cloud Formation (and underlying services such as Amazon EC2), Rack space Cloud, Google Compute Engine, and Right Scale.
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Platform as a Service (PaaS)
Delivers virtualized servers on which customers can run existing applications or develop new ones without having to worry about maintaining the operating systems, server hardware, load balancing or computing capacity. These vendors provide APIs or development platforms to create and run applications in the cloud e.g. using the Internet. Managed Service providers with application services provided to IT departments to monitor systems and downstream applications such as virus scanning for e-mail are frequently included in this category. Well known providers would include Microsoft's Azure, Salesforce's Force.com, Google Maps, ADP Payroll processing, and US Postal Service offerings.
Software as a Service (SaaS)
Is the most widely known and widely used form of cloud computing. It provides all the functions of a sophisticated traditional application to many customers and often thousands of users, but through a Web browser, not a locally-installed application. Little or no code is running on the Users local computer and the applications are usually tailored to fulfill specific functions. SaaS eliminates customer worries about application servers, storage, application development and related, common concerns of IT. Highest-profile examples are Salesforce.com, Google's Gmail and Apps, instant messaging from AOL, Yahoo and Google, and VoIP from Vonage and Skype.
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Storage as a Service (STaaS)

Storage as a service (STaaS) is a business model in which a large service provider rents space in their storage infrastructure on a subscription basis. The economy of scale in the service provider's infrastructure allows them to provide storage much more cost effectively than most individuals or corporations can provide their own storage. Examples are different file uploading sites like www.mediafire .com, filetube.com etc.
Security as a service (SECaaS)
Security as a service (SECaaS) is a business model in which a large service provider integrates their security services into a corporate infrastructure on a subscription basis more cost effectively than most individuals or corporations can provide on their own, when total cost of ownership is considered. These security services often include authentication, anti-virus, anti-
malware/spyware, intrusion detection, and security event management, among others. Examples is Panda cloud anti virus
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Data as a service (DaaS)
Data as a service, or DaaS, is a cousin of software as a service. Like all members of the "as a Service" (aaS) family, DaaS is based on the concept that the product, data in this case, can be provided on demand to the user regardless of geographic or organizational separation of provider and consumer. Additionally, the emergence of service-oriented architecture (SOA) has rendered the actual platform on which the data resides also irrelevant. This development has enabled the recent emergence of the relatively new concept of DaaS.
Pricing models
There are hundreds of DaaS vendors on the web and the pricing models by which they charge their customers fall mainly into two major categories-
Volume-based model which has two approaches: Quantity-based pricing: This is the simplest model to implement. The vendors charge their customers based on the amount of data they want to use. Subscriptions for an unlimited amount of data are referred to as the fire-hose approach.
Pay per call: in this approach vendors charge for each call from the customer to the API. Data type-based model: in this model vendors charge based on the type or attribute of data that customer needs. For example, geographic, financial and historical data necessary for customer business are examples of types of data upon which pricing may be based. Some vendors such as Microsoft Azure store the data in three different types (blobs, queues and tables).
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Hoovers, a Dunn & Bradstreet company, offer business data. On its own, its a hodgepodge of names, titles, addresses and other company information
Business process as a service (BPaaS)
Business process as a service (BPaaS) is an application delivered as a service that is used by business process service-provider personnel, who are performing activities on behalf of the service recipient. It's a service that combines the Business Process Outsourcing (BPO) with the Software as a Service (SaaS) models. BPaaS is a model for businesses outsource traditional business services. The difference with BPaaS over BPO is that BPaaS emphases on the end results versus operational activities. Where typical BPO programs will have the client focusing on daily operational tasks to deliver the outcome, BPaaS focuses on service level agreements (SLA) and Key Performance Indicators (KPI) as the measure of operational service and success. Different BPO & KPOs use this model to serve their customers.
Test Environment as a service (TEaaS)
Test Environment as a service (TEaaS) sometimes referred to as "on-demand test environment," is a test environment delivery model in which software and its associated data are hosted centrally (typically in the (Internet) cloud) and are typically accessed by users using a thin client,
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normally using a web browser over the Internet. The vast majority of TEaaS solutions are based on a multi-tenant architecture. With this model, a single version of the application, with a single configuration (hardware, network, operating system), is used for all customers ("tenants"). To support scalability, the application is installed on multiple machines (called horizontal scaling). In some cases, a second version of the application is set up to offer a select group of customers with access to pre-release versions of the applications (e.g., a beta version) for testing purposes. This is contrasted with traditional software, where multiple physical copies of the software each potentially of a different version, with a potentially different configuration, and oftentimes customizedare installed across various customer sites. Prominent Indian IT companies like Wipro, Infosys use this models to test its own & other companies softwares.
Desktop as a service (DaaS)
Desktop virtualization (sometimes called client virtualization, as a concept, separates a personal computer desktop environment from a physical machine using the clientserver model of computing. Virtual desktop infrastructure, sometimes referred to as virtual desktop interface.(VDI) is the server computing model enabling desktop virtualization, encompassing the hardware and software systems required to support the virtualized environment.Many enterpriselevel implementations of this technology store the resulting "virtualized" desktop on a remote central server, instead of on the local storage of a remote client; thus, when users work from their local machine, all of the programs, applications, processes, and data used are kept on the server and run centrally. This allows users to run an operating system and execute applications from a Smartphone or thin client which exceed the user hardware's ability to run. VMWARE virtualization soft wares provides this kind of service.
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API as a service (APIaaS)
API as a service is a service platform that enables the creation and hosting of APIs (application programming interfaces). These API's normally provide multiple entry points for API calls ranging from REST, XML web services or TCP/IP. Examples of API Services:
1. Photos can be shared from sites like Flickr and Photobucket to social network sites like Facebook and MySpace.
2. Content can be embedded, e.g. embedding a presentation from SlideShare on a LinkedIn profile.
3. Content can be dynamically posted. Sharing live comments made on Twitter with a Facebook account, for example, is enabled by their APIs.
4. Video content can be embedded on sites which are served by another host.
5. User information can be shared from web communities to outside applications, delivering new functionality to the web community that shares its user data via an open API. One of the best examples of this is the Facebook Application platform. Another is the Open Social platform.
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Conclusion
The future for cloud computing is bright. The big names in computers are throwing lots of resources into this. Dell sees a huge market for cloud computing in the future, upwards of $1 billion a year in a few more years. HP, Intel and more are throwing resources into this, and it looks like cloud computing might be the next big thing after UMPCs.
Networks aren't ready for mass roll out yet, and connection speeds aren't yet up to handling this much data. But even Amazon sees a bright future in cloud computing. They have recently released a beta program called Amazon Web Services. The whole idea behind it is resizable computing power. When you need the power, it's there, but when you don't, you can scale back. The bang for the buck with the Amazon program is the highest; it is almost a pay-asyou-go plan for computing cycles.
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References:
1. www.wikipedia.org
2. www.infoworld.com
3. www.slideshare.net
4. www.4shared.com
5. www.educause.edu
6. www.ladenterprizes.com
7. www.mhprofessional.com
8. www.johnseelybrown.com
9. www.wikinvest.com
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Business Module In Cloud Computing