Cloud Computing

Introduction and
Awareness

Walt Lammert
Agenda
• Why Cloud Computing?
• What do Cloud Architectures and Delivery Models look
like?
• What are the benefits and challenges of Cloud
Computing?
• What are key takeaways?

2
Cloud Services

• Due to technology advances, cloud services are a

recent alternative to providing providing IT services
• Cloud services are characterized by
− Inherent elasticity and scalability
− Self-service capabilities
− Consumption based pricing model
− Shared infrastructure
− Virtualized environment

3
Cloud Computing Characteristics
• Elastic and scalable:
– Quickly provision and de-provision IT services; cloud service appears
infinitely scalable.
• Self-service:
– Ability to use cloud services as the need arises; self-service increases
IT agility to match the pace of business.
• Consumption-based pricing model:
– Providers charge customers based on amount of the service
consumed. Customers pay for only the IT services they use, thereby
increasing IT ROI.
• Shared infrastructure/software:
– Providers leverage the infrastructure or application software to service
multiple consumers; multi-tenancy is vital to driving down infrastructure
and application software costs.
• Virtualized and dynamic:
– Virtualization creates a dynamic environment for quick resource
provisioning and better resource management

4
Why Cloud? What’s the Value to the Enterprise?

Source: CA
5
Real World Examples of Cloud Value

11 million articles
4 TB data
100 virtual servers
24 hours
6 Source: Animoto Source: New York Times
Agenda
• Why Cloud Computing?
• What do Cloud Architectures and Delivery Models look
like?
• What are the benefits and challenges of Cloud
Computing?
• What are key takeaways?

7
Cloud Computing’s Distinguishing Attributes

8
Cloud Architecture Fundamentals
Self-service portal
development framework (PaaS)

Source: Forrester
9
Cloud Tiers
Software
as a Service
(SaaS)

Platform as a
Service (PaaS)

Infrastructure
as a Service (IaaS)

10 Source: Cloud Security Alliance

Infrastructure as a Service Infrastructure
as a Service (IaaS)

Virtual or physical hardware resource offered as a service

• Many different and growing implementations, but most utilize server

virtualization as an underlying technology
• Enablers are software vendors who develop virtualization software that is
used to create hardware infrastructure services (VMware, Citrix, 3Tera,
etc.)
• Providers are vendors who utilize an enabling vendor’s technology to
create IaaS (Amazon, Rackspace, Verizon, AT&T, GoGrid, etc.)
• Two categories of providers are evolving
– service infrastructure (e.g. Amazon)
– cloud centers (e.g. GoGrid, Rackspace)

11
Platform as a Service Platform as a
Service (PaaS)

Externally managed application platform for building and

operating applications and services

• PaaS environment supplies:

– Runtime and/or development frameworks
– Supporting infrastructure capabilities (authentication, authorization,
session management, transaction integrity, reliability, etc)
– Development tools for working with the supplied frameworks
• PaaS vendor categories:
– Microsoft .NET (Azure)
– Open Source (Force.com, Google App Engine, Longjump, Bungee
Connect, etc.)

12
Software as a Service Software
as a Service
(SaaS)
A pre-built application in the cloud

• This category is similar to the the services offered by Application

Service Providers in the late 90s.
• As technology matured during the early 2000s, non critical and
consumer applications became prevalent including web
conferencing, e-mail, collaboration, and productivity suites
• Currently there are enterprise level applications being offered
including ERP, marketing and sales
• The use of multi-tenancy, the pay-as-you-go model and the ability to
provision on demand differentiates SaaS from the early ASPs
• Current examples – Salesforce.com, Netsuite, Google Apps,
Success Factors, Workday, etc.

13
Who Controls the Compute Environment?

14
Source: Burton Group
Cloud Computing Models

Private (internal) cloud

Source: Burton Group
•
– Cloud infrastructure inside the enterprise
– Full organizational control
– Low risk
• Public cloud
– Cloud infrastructure outside the organization
– Limited organizational control
– Higher risk
• Hybrid
15 – Combination of public and private (internal) cloud models
Agenda
• Why Cloud Computing?
• What do Cloud Architectures and Delivery Models look
like?
• What are the benefits and challenges of Cloud
Computing?
• What are recommendations for next steps?

16
Cloud Benefits
• Increased IT agility with on-demand, self-service business models
– Using the cloud, IT organizations can quickly provision IT resources
whenever business demands, especially for short-term IT resource
needs
• Faster ROI through better resource management
– Pay as you go: IT organizations pay for only the IT services they use,
enabling better resource tracking, budget forecasting, and faster
return on IT investments
• Offers additional expert IT staff
– Cloud computing business models require providers to hire, train,
and retain highly skilled employees to ensure service quality

17
Cloud Benefits (cont’d)
•Improves business continuity by providing inexpensive
disaster recovery
– Rather than using a co-location facility or a new data center, IT
organizations will backup data to the cloud.
•Increases mobile workforce access to IT services
– Internet-based clouds (public and private) provide greater IT
service access to mobile workforce than internally hosted IT
services accessed via VPN
• Open source software
– The ability to add large number of instances without licensing cost is
one of the great enablers of cloud computing

18
Cloud Drawbacks and Concerns
• SLAs – Currently there are poor or non-existent service-
level agreements (SLAs)
• Security and risk – control of critical corporate data in
the cloud as well as privacy issues are a concern
• Vendor lock-in - lack of cloud interoperability,
proprietary data models, and poor application
portability can make cloud migration difficult
• Market immaturity - vendor flux and poor service
implementations creates uncertainty
• Application/workload suitability – most applications
have not been architected for clouds

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Characteristics of Cloud Suitable Applications
• Service oriented/service abstraction
• Loose coupling
• Non latency sensitive
• Horizontal scalability
• Standard web protocols and interfaces

20
Cloud application maturity
Examples of applications that could be hosted in the cloud today:
– Sharepoint blog and wiki
– Exchange e-mail
– The landing page for marketing's latest mega-promotion
– The company external Web site
– Test/development servers
– Data storage for e-mail archives, backups, log retention
– A minimal remote disaster-recovery capability
Applications that probably need dedicated infrastructure:
– The corporate ERP system
– Enterprise data warehouse
– Credit card processing services
– Designs of latest secret R&D project
– Applications that require specialized hardware or operating systems
not available in the cloud

21
A Mixed Computing Environment will continue to exist
for most Enterprises, but…

Source: Microsoft
22
…the impact of Cloud Computing will be as dramatic
as E-Business was a decade ago

IaaS

23 Source: OpenCrowd PaaS SaaS

Cloud Computing woke the sleeping giant again!

Source: Microsoft

24
Cloud Commercial Considerations

25 Source: Information Week

Agenda
• Why Cloud Computing?
• What do Cloud Architectures and Delivery Models look
like?
• What are the benefits and challenges of Cloud
Computing?
• What are key takeaways?

26
Key Takeaways 27

• Develop a cloud strategy now

– Build a target cloud architecture (internal/external/hybrid) that
aligns with the strategy
– Consider the need for service oriented architectures
– Consider security and regulatory compliance in all cloud
architectures
– Support industry standards to enhance interoperability
• Evaluate your organization’s ability to consume the cloud
– Determine processes, applications and infrastructure that can be
moved to the cloud and those that cannot
– Cloud will likely change business processes - IT cannot change
those processes alone and will require support from business
process owners, partners, and suppliers
• Match cloud vendor offerings with application needs
– Use a tool such as the Cloud Advisory Tool and a business impact
analysis

27
Key Takeaways (cont’d) 28

• Calculate cloud costs vs. internal costs

– Compare cloud costs to hosting the same service internally
including operational costs (e.g. energy or personnel) and capital
costs (e.g. servers, storage, and software)
– Monitor cloud costs closely and watch for hidden charges
– Consider the need to manage multiple cloud vendor relationships
• Comprehend vendor lock-in consequences before adoption
– Have an exit strategy
– Be wary of cloud providers with proprietary development
interfaces
• Take initial steps
– Take initial steps towards public cloud with low risk applications
– Use the cloud to offload applications and infrastructure that are
not core.
• Safeguard your data
– Data is a primary business asset. Before putting data into the
28 cloud, clearly identify any potential risks to data