Cloud Computing

New Cutting Edge to Business

Redefining the IT Business
Debashish Das
Abstract
Cloud computing technology has been a new buzzword in the IT industry and
expecting a new horizon for coming world. It is a style of computing which is
haing dynamically scalable irtualized resources proided as a serice oer the
Internet. It reduces the time re!uired to procure heay resources and boot
new serer instances in minutes" allowing one to !uic#ly scale capacity" both
up and down" as ones re!uirement changes. Neertheless the technology is hot
in the mar#et and is ready to cater to the small and medium business segment.
$s per one of the estimates from %artner" by year &'(&" &') of enterprise
mar#et e*mail seats will be deliered ia Cloud. $s per another estimate from
%artner" +oftware as a +erice is forecast to hae a compound annual growth
rate of (,) through &'(( for CR-" ER. and +C- mar#ets in +-B segment. /hile
the enterprises are exploring the possibilities of adopting this technology" it is
imperatie for these enterprises to critically ealuate the feasibility of this
technology for their speci0c businesses.
The typical characteristic of this technology1
Cloud computing customers do not generally own the physical infrastructure
sering as host to the software platform in !uestion. Instead" they aoid capital
expenditure by renting usage from a third*party proider. The entire onus lies on
the serice proider who owns the huge scalable and ariable host of
infrastructure" software and bundle of other serices. Cloud computing
consumers consume resources as a serice and pay only for resources that they
use. -any cloud*computing o2erings employ the utility computing model" which
is analogous to how traditional utility serices 3such as electricity4 are
consumed" while others bill on a subscription basis. +haring 5perishable and
intangible5 computing power among multiple tenants can improe utilization
rates" as serers are not unnecessarily left idle 3which can reduce costs
signi0cantly while increasing the speed of application deelopment4.
This article proides brief details about the cloud computing with an oeriew of
#ey features to gie a glimpse about the new focused technology.
Look up on few facts:
What is Cloud
Computing?
Cloud computing is emerging at the conergence of three ma6or trends 7
serice orientation" irtualization and standardization of computing through the
Internet. Cloud computing enables users and deelopers to utilize serices
without #nowledge of" expertise with" nor control oer the technology
infrastructure that supports them. The concept generally incorporates
combinations of the following1
Infrastructure as a serice
3Iaa+4 .latform as a serice
3.aa+4 +oftware as a serice
3+aa+4
8sers aoid capital expenditure 3CapEx4 on hardware" software" and serices
when they pay a proider only for what they use. Consumption is billed on a
utility 3e.g. resources consumed" li#e electricity4 or subscription 3e.g. time based"
li#e a newspaper4 basis with little or no upfront cost.
Cloud
Vendors
There are many companies who are into the mar#et o2ering arious ranges of
serices on Cloud Computing. The ma6or players are 9mware" +un -icrosystems"
Rac#space 8+" IB-" $mazon" %oogle" -icrosoft" and :ahoo. Cloud serices are
also being adopted by indiidual users through large enterprises including
9mware" %eneral Electric" and .rocter ; %amble. The endor hosts and manages
the infrastructure re!uired with the respectie technology.
Cloud as a Service to
Customer
The cloud computing that are eoling as a serice in the cloud are being
proided by big enterprises with a heay inestment with resource and
technology which are accessed by others ia the internet. The resources are
accessed in this manner as a serice < often on a subscription basis. The users of
the serices being o2ered often hae ery little #nowledge of the technology
being used. The users also hae no control oer the infrastructure that supports
the technology they are using.
There are six different forms that hae been consolidated so far to understand
how the serices are being proided to the customers1
!
SaaS
This types of cloud computing deliers a single application through the browser to
thousands of customers using a multitenant architecture. =n the customer side" it
means no upfront inestment in serers or software licensing> on the proider
side" with 6ust one app to maintain" costs are low compared to conentional
hosting. +aa+ is also common for ?R apps and has een wor#ed its way up the
food chain to ER." with players such as /or#day. $nd some who could hae
predicted the sudden rise of +aa+ des#top applications" such as %oogle $pps and
@oho =ffice.
"! #tilit$
computing
The idea is not new" but this form of cloud computing is getting new life
from $mazon.com" +un" IB-" and others who now o2er storage and irtual
serers that IT can access on demand. Early enterprise adopters mainly use
utility computing for supplemental" non*mission*critical needs" but one day" they
may replace parts of the datacenter. =ther proiders offer solutions that help
IT create irtual datacenters from commodity serers" such
as ATeraBs $ppCogic and Cohesie Dlexible Technologies
Elastic +erer on Eemand. Ci!uid ComputingBs Ci!uidF o2ers similar capabilities"
enabling IT to stitch together memory" IG=" storage" and computational capacity
as a irtualized resource pool aailable oer the networ#.
%! Web services in the cloud closel$ related
to SaaS
/eb serice proiders offer $.Is that enable deelopers to exploit functionality
oer the Internet" rather than deliering full*blown applications. They range from
proiders o2ering discrete business serices ** such as +tri#e Iron and Hignite **
to the full range of $.Is offered by %oogle -aps" $E. payroll processing" the 8.+.
.ostal +erice" Bloomberg" and een conentional credit card processing
serices.
&! 'latform as a service (Another SaaS
variation)
This type of cloud computing delier deelopment enironments as a serice.
:ou build your own applications that run on the proiderBs infrastructure
and are deliered to your users ia the Internet from the proiderBs serers. Ci#e
Cegos" these serices are constrained by the endorBs design and capabilities" so
you donBt get complete freedom" but you do get predictability and pre*
integration. .rime examples include Coghead and the new %oogle $pp Engine.
Dor extremely lightweight deelopment" cloud*based abound" such as :ahoo
.ipes or Eapper.net.
*! +S' ,managed service
providers-
=ne of the oldest forms of cloud computing" a managed serice is basically an
application exposed to IT rather than to end*users" such as a irus scanning
serice for e*mail or an application monitoring serice 3which -ercury" among
others" proides4. -anaged security serices deliered by +ecure/or#s" IB-" and
9erizon fall into this category" as do such cloud*based anti*spam serices as
.ostini" recently ac!uired by %oogle. =ther o2erings include des#top
management serices" such as those o2ered by CenterBeam or Eerdream.
.! Service commerce
platforms
$ hybrid of +aa+ and -+." this cloud computing serice offers a serice hub
that users interact with. TheyBre most common in trading enironments" such as
expense management systems that allow users to order trael or secretarial
serices from a common platform that then coordinates the serice deliery and
pricing within the specifications set by the user. Thin# of it as an automated
serice bureau. /ell* #nown examples include Rearden Commerce and $riba.
/enefit of Cloud
Computing
There is a lot of benefit for the business loo#ing for the serice from the cloud
serice proider. $part from the bundle of suits they hae to o2er" it focus all
an escape from huge inestment into IT infrastructure and operating cost.
0educe 0untime and 0esponse
time
Dor applications that use the cloud essentially for running batch 6obs" cloud
computing ma#es it straightforward to use (''' serers to accomplish a tas# in
(G(''' the time that a single serer would re!uire. The New :or# Times example
cited preiously is the perfect example of what is essentially a batch 6ob whose
run time was shortened considerably using the cloud. Dor applications that
need to o2er good response time to their customers" refactoring applications so
that any C.8* intensie tas#s are farmed out to Iwor#erJ irtual machines can
help to optimize response time while scaling on demand to meet customer
demands. The $nimoto application cited preiously is a good example of how the
cloud can be used to scale applications and maintain !uality of serice leels.
+inimise
1nfrastructure 0isk
IT organizations can use the cloud to reduce the ris# inherent in purchasing
physical serers. /ill a new application be successfulK If so" how many serers
are needed and can they be deployed as !uic#ly as the wor#load increasesK If
not" will a large inestment in serers go to wasteK If the applicationJs success is
short*lied" will the IT organization inest in a large amount of infrastructure that
is idle most of the timeK /hen pushing an application out to the cloud"
scalability and the ris# of purchasing too much or too little infrastructure
becomes the cloud proiderJs issue. In a growing number of cases" the cloud
proider has such a massie amount of infrastructure that it can absorb the
growth and wor#load spi#es of indiidual customers" reducing the 0nanci al ris#
they face. $nother way in which cloud computing minimizes infrastructure
ris# is by enabling surge computing" where an enterprise data center 3perhaps
one that implements a priate cloud4 augments its ability to handle
wor#load spi#es by a design that allows it to send oerflow wor# to a public
cloud. $pplication lifecycle management can be handled better in an
enironment where resources are no longer scarce" and where resources can
be better matched to immediate needs" and at lower cost.
Lower cost of
entr$
+ince the infrastructure is rented" not purchased" the cost is controlled" and the
capital inestment can be zero. In addition to the lower costs of purchasing
compute cycles and storage Lby the sip"M the massie scale of cloud proiders
helps to minimize cost" helping to further reduce the cost of entry.
$pplications are deeloped more by assembly than programming. This rapid
application deelopment is the norm" helping to reduce the time to mar#et"
potentially giing organizations deploying applications in a cloud enironment a
head start against the competition.
1ncreased pace of
innovation
Cloud computing can help to increase the pace of innoation. The low cost of
entry to new mar#ets helps to leel the playing field" allowing start*up
companies to deploy new products !uic#ly and at low cost. This allows small
companies to compete more effectiely with traditional organizations whose
deployment process in enterprise data centers can be significantly longer.
Increased competition helps to increase the pace of innoation 7 and with
many innoations being realized through the use of open source software" the
entire industry seres to benefit from the increased pace of innoation that
cloud computing promotes.
2ree from software licensing3up
gradation3maintenance
Cloud computing frees up user from any further licensing of the software or from
up gradation and maintenance. $ll the serices are proided by the serice
proiders. No longer haing to worry about constant serer updates and
other computing issues" goernment organizations will be free to concentrate on
innoation.
A mobile
profile
+ince all is accessible through internet" it will be accessible globally. It will be too
much beneficial for a small and medium sized enterprise that is not willing to
inest a lot in networ# setup and wish to free from maintenance.
An interim evaluation for the
/usiness
In cloud computing models" customers do not own the infrastructure they are
using> they basically rent it" or pay as they use it. The loss of control is seen as
a negatie" but it is generally out*weighed by seeral posities. =ne of the ma6or
selling points of cloud computing is lower costs. Companies will hae lower
technology*based capital expenditures" which should enable companies to focus
their money on deliering the goods and serices that they specialize in. +till
there are #ey features for consideration before one tal# for the need of the
business. +ince entire gamut of serices is aailable in the mar#et one has to be
ery choosey and do lots of self ealuation before drawing a final plan for the
business.
1. In which stage of your business life cycle you are planning to scale for
the serice of cloud computingK
2. /hat business line you need to support and how much is the
re!uirement os for your business.
3. ?ow much cost effectie it can be when you rent the sericesK
N. /hich type of serice is going to be beneficial for youK
O. /hat is the organization preferred technology" deelopment platform and
business that re!uire for this type of sericeK
P. Is your organization haing the capabilities to handle these serices" as
these serices needs lot of competency to handle it as there are lots of
mechanism with different layers of serice present in them.
7. ?ow much ris# is associated with the data dependency when it is a #ept
in others infrastructureK
8. ?ow much performance and bandwidth is re!uired to use this type of
serice
with comparison to the current business needsK Is the company able to
cope it up with the existing bandwidth to its business needsK
There is no limit for the ealuation" and consideration should be made with
respect to the current business in one is" with respect to the multiple factors with
responsieness towards sta#e holders and business needs" financial goals"
inestment capabilities" profitability" future planning" industrial growth" serice
proiders o2erings etc. =ne can only earn the adantage through the new
technology only if they are able to do a correct feasibility study to mitigate the
business need.
Disadvanta
ge
$s any technology is a boon for an ealuation as the history is eidence" there
are disadantages too which cannot be ignored. Eespite a fact cloud
computing has so many features which can be awaiting a new horizon there are
also #ey factors which cannot be ignored. Dew hae been summed up below1
Cac# of connectiity causes ('') downtime" whereas with traditional
applications" lac# of connectiity allows for some local function to continue
until connectiity is restored.
The lac# of industry*wide standards means that a usage surge can easily
oerwhelm capacity without the ability to push that usage to
another proider.
Companies proiding computing serices will oer*sell these serices
similar to how bandwidth is oer*sold based on aerage or 5pea#5 usage"
instead of 5maximum5 usage. I+.Bs typically operate at multiples of O to ("
where they sell
O times more than they hae in capacity" assuming users will not use
more than &') of their allotted resources. This wor#s" until there is a
popular :ouTube ideo that eeryone wants to see at the same time....
resulting in outages. Cloud computing is een more ulnerable to the
pea#*usage problem than internet bandwidth.
5Eenial of serice5 attac#s" currently common" become easier. /hatBs
more they become harder to trace" as compromised 5cloud resources5
can be leeraged to launch the attac#s" rather than compromised
5indiidual pcBs5. Cloud computing is ulnerable to massie security
exploits. Currently" when a system is bro#en into" only the resources of
that system are compromised. /ith cloud computing" the damages
caused by a security breach are multiplied exponentially.
By 5centralising5 serices" cloud computing increases the li#elihood that a
systems failure becomes 5catastrophic5" rather than 5isolated5.
No political approach has been made till date to control the uncontrolled
factors to bring the serice under the boundary lines of trust and owner
ship" as these serices are beyond country lines.
Conclusio
n
The #ey motie to publish this paper is to gie a glimpse of understanding on
cloud computing as a technology for a new era. Its potential is considered so ast
that it is surely going to gie up a new dimension for the generation to come. +o"
in the long run" most of the companies 3large" mid size or small4 do not
want to hae the oerhead cost associated with running a large IT department
that is solely inoled in sustaining existing enterprise application. Carge
companies do not hae the ris# tolerance to start using cloud computing
immediately. -ost CE=Js and top IT Executies in large organizations will wait
for the technology to mature before putting een the most non*essential
applications on someone elseJs serers. It gies a new aspect to do a business
without owing so much. The concept is so new that wor# is still going on to
cater the world with the best way for the companies haing a technology
appetite. There is a big push for cloud computing serices by seeral big
companies. $mazon.com has been at the forefront of the cloud computing
moement. %oogle and -icrosoft hae also been ery publicly wor#ing on cloud
computing o2erings. +ome of the other companies to watch for in this field are
:ahooQ" IB-" Intel" ?. and +$.. +eeral large uniersities hae also been busy
with large scale cloud computing research pro6ects. There is no end to the
eolution until one stops thin#ing. In the future" more cloud adoption is certain"
this year alone the moe to the cloud by many business has been phenomenal"
so much so that some cloud business hae grown by oer &''). Carge endors
see this as the growing model for software and serices in the future so more
focus by the endors is a2orded. Eo not be surprised if the cloud bursts with
offerings oer the next &N months.
Acknowledgement
-y special than#s to Nitin Roshi for initiating me to come up with this document
and my dearest friend +udipa +ar#ar $stt. -gr Technical writing for her reiew
comments.
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