Enterprise Cloud Computing

By Dr. Atanu Rakshit Email: atanu.rakshit@iimrohtak.ac.in atanu.raks@gmail.com

Enterprise Cloud Computing
• Text Book:
– ‘Cloud Computing Bible’ by Barrie Sosinsky, 2/e, Wiley Publication, 2013

• Reference Material:
– ‘Building Applications in the Cloud’ by Christopher M. Moyer, Pearson, 2013 – ‘Cloud Computing – Automating the Virtualized Data Center’ by Venkata Josyula, Malcolm Orr and Greg Page, Pearson, 2012 – ‘Cloud Computing Implementation, Management and Security’ by John W. Rittinghouse and James F. Ransome, CRC Press, 2010

Enterprise Cloud Computing • Sessions Plan
– – – – – – – – – – Introduction to Cloud Computing Assessing the Value Proposition Cloud Computing Architecture Service and Application Types Abstraction and Virtualization Capacity Planning and Resource Optimization Understanding Service Oriented Architecture Moving Applications and Application Framework in Cloud Cloud Security Mobile Cloud Computing

Enterprise Cloud Computing Cloud Value Proposition .

and delivered • It shifts capital expenditures into operating expenditures. elasticity. priced.Cloud Value Propositions • The Main attributes like scalability. and a utility type of delivery are completely change how applications are created. low barrier to entry. • Decoupling growth from cash on hand or from requiring access to capital • Service Level Agreements (SLAs) are an important aspect of cloud computing .

commoditization of assets. • The various service models benefits the users of varies type . and conformance to programming standards benefits from the application of cloud computing.Cloud Value Propositions • Cloud computing presents new opportunities to users and developers of a shared multitenant utility. • The ability to access pooled resources on a pay-as-you-go basis provides a number of system characteristics that completely alter the economics of information technology infrastructures • Any application or process that benefits from economies of scale.

• Strategic: A cloud computing platform extends the company's products and defends their franchise. . • Optimization: The infrastructure already exists and isn't fully utilized. • Extension: A branded cloud computing platform can extend customer relationships by offering additional service options.Cloud Value Propositions • Profit: The economies of scale can make this a profitable business.

.Cloud Value Propositions • Presence: Establish a presence in a market before a large competitor can emerge. • Platform: A cloud computing provider can become a hub master at the center of many ISV's (Independent Software Vendor) offerings.

• Cloud computing also can provide access to multiple data sets that can support layered forms of information. the types of information you get when you view a mashup .Cloud Value Propositions • Due to its scalability. • The relative ubiquity of cloud computing systems also enables emerging classes of interactive mobile applications. cloud computing provides a means to do high-performance parallel batch processing that wasn't available to many organizations before.

and desktop virtualization efforts • Web 2.0 and social strategy companies • Web content delivery services • Data analytics and computation .Early Adopters and New Applications • Messaging and team collaboration applications • Cross enterprise integration projects • Infrastructure consolidation. server.

test bed labs. and development efforts • Backup and archival storage .Early Adopters and New Applications • Mobility applications for the enterprise • CRM applications • Experimental deployments.

any monitoring system the organization wishes to deploy can be brought to bear. . VLANs. Cloud computing models often have limited monitoring because it is vendor-defined. Monitoring Variable but under control Limited For private systems.Challenges and Obstacles Subject Area Compliance Captive Policy-based Cloud Proprietary Challenge Compliance to laws and policies varies by geographical area. Data Privacy Bounded Shared with cloud To ensure data privacy in the cloud. This requires that the cloud accommodate multiple compliance regimes. and local storage of sensitive data is necessary. firewalls. additional security methods such as private encryption.

Custom SLAs that allow for multiple data sources are difficult to obtain or enforce. Business risks that aren't covered by a cloud SLA must be taken into account. and negotiations with large cloud providers can be difficult for small users. .Challenges and Obstacles Subject Area Security Captive Restricted Cloud Federated Challenge The different trust mechanisms require that applications be structured differently and that operations be modified to account for these differences. Service Level Agreements (SLAs) Customized Cloud specific Cloud SLAs are standardized in order to appeal to the majority of its audience. Software Stack Customized Commoditized The cloud enforces standardization and lowers the ability of a system to be customized for need.Cloud SLAs do not generally offer industry standard chargeback rates.

number of transactions. incoming or outgoing amounts of data. other resources add additional unit costs: storage quantity consumed. and so forth. Different cloud providers charge different amounts for these resources .Measuring Cloud Computing Cost The cost of a cloud computing deployment is roughly estimated to be CostCLOUD = Σ(UnitCostCLOUD x (Revenue – CostCLOUD)) where the unit cost is usually defined as the cost of a machine instance per hour or another resource Depending upon the deployment type.

Each resource has its own specific cost and many resources can be provisioned independently of one another. cloud providers offer packages of machine instances with a fixed relationship between a machine instances. 1nΣ(UnitCostCLOUD x (Revenue – CostCLOUD))NETWORK_UNITn + … In practice. In theory.Measuring Cloud Computing Cost The costs associated with the cloud model are calculated rather differently. memory allocation (RAM). Storage and transactions are unbundled and variable. the CostCLOUD is better represented by the equation: CostCLOUD = 1nΣ(UnitCostCLOUD x (Revenue – CostCLOUD))INSTANCEn +1nΣ(UnitCostCLOUD x (Revenue – CostCLOUD))STORAGE_UNITn +. therefore. . and network bandwidth.

Quality of Service • Everything in cloud computing is delivered as service • So quality of service is inevitable • QoS has multiple aspects such as: – Response time – Throughput – Availability – Reliability – Security .

QoS requirements for a Cloud . • The QoS system should not require modification in the system software of the servers .ideal • The QoS must system be able to manage several simultaneous services with a specific response time limitation for each service • The QoS system must supply service differentiation in the service provider to the consumer – consumer category • The QoS system must support the grouping of interactions in sessions.

QoS requirements for a Cloud .ideal • The QoS system should be easy to configure • The QoS system must be scalable to operate in both a single server and a cluster of servers • The QoS system must provide protection against overloads and low utilization • The QoS system may support dynamic negotiation of parameters .

most SLAs are standardized until a client becomes a large consumer of services.Service Level Agreement (SLA) • A Service Level Agreement (SLA) is the contract for performance negotiated between client and a service provider. • Some SLAs are enforceable as contracts. but many are really agreements that are more along the lines of an Operating Level Agreement (OLA) and may not have the force of law . • Today with the advent of large utility-like cloud computing providers.

dynamically provisioning computing resources to meet an SLA and allow for an optimum resource utilization will not be an easy task . SLA • The SLA is a contract negotiated and agreed between a customer and a service provider • Service provider is required to execute service requests from a customer within negotiated quality of service requirements for a given price • Due to variable load.Service Level Agreement.

Service Level Agreement (SLA) • • • • • Availability of the service (uptime) Response times or latency Reliability of the service components Responsibilities of each party Warranties .

Industry Relevance .

76% say the ability to adapt will be a key source of strategic advantage in 2009* • Complexity is growing: – CIO’s see complexity as a threat to the very survival of their business • Operation Costs Exceed HW Costs: – CEO’s view growth as a key focus area – Operational costs far exceed the budgets for new hardware * PricewaterhouseCoopers’ 11th Annual Global CEO Survey .IT has fallen behind the evolution curve of the business… • Business Agility is Threatened: – Of 1.150 global CEO’s.

siloed & exhibit single points of failure but are too expensive to remand • Complex. slow.Why does the market care . heterogeneous infrastructure create resource & data silos and recovery nightmares • Enterprise data is largely distributed and rife with errors • Infrastructure resources are highly underutilized – PCs/Servers < 10% – Storage < 50% • Change is a cost prohibitive and time consuming process IT has been driven by cost instead of value! .Drought and dry fields …resulting in serious challenges for IT today… • Many applications are proprietary.

Importance .

Why should we care .The gathering storm Possibilities of Cloud Computing • Increases business responsiveness • Accelerates creation of new services via rapid prototyping capabilities • Reduces acquisition complexity via service oriented approach • Uses IT resources efficiently via sharing and higher system utilization • Reduces energy consumption • Handles new and emerging workloads • Scales to extreme workloads quickly and easily • Simplifies IT management • Platform for collaboration and innovation • Cultivates skills for next generation workforce .

new processes. new skills. application and outsourcing vendors . application rationalization. and outsourcing activities • Client should investigate cloud strategies with their systems management.The gathering storm What is the Cloud Computing opportunity? • Next evolutionary step in computing with >30yrs of momentum • Requires a new way of thinking. and new tools • Enables the business to work around IT departments who are seen as part of the problem • Companies will reduce IT operating costs and improve agility • Clients should consider cloud computing as part of their blueprint refresh.Why should we care .

Why should we care .The gathering storm What IT must do to compete People • Adopt a service provider mentality • Inform the business without involving them in issues • Realign teams to present a unified relationship model to customers Process • Provide services with appropriate service levels • Support the user from their point of view • Respond quickly. act efficiently Technology • • • • Pool technology resources Manage the resources to deliver the required service Automate wherever possible Incorporate technology resources beyond the company data center .

Why should we care .The gathering storm What disruptions will Cloud cause? People • Alignment of roles & responsibiliti es to service delivery • Staff training • Reorganizatio n to adopt a service focus • Update of success metrics • Knowledge management Process • Project planning • Capacity planning and compute resource procurement • Application prioritization • Developing & managing service levels • Technology Adoption (PoC. Pilot. Deploy) • End-user support Technology • Utility Computing architecture • Identity management • Data security • Data management • Systems management strategy • Vendor evaluation & implementation Strategy • Defining a Cloud enabled IT strategy • Budgeting and project funding • Standards and guidelines • Reference architectures for SaaS. and IaaS • Enterprise architecture Structure • Governance model • Defining and implementing controls • Identifying audit procedures Cloud Computing is a disruptive technology which will transform how IT does business . PaaS.

The gathering storm What new capabilities/models will IT gain? • Ability to overflow workload to external compute resources as needed when internal resources are maxed out • Adopting in-network redundancy with automated recovery to eliminate disaster recovery risks and costs • Data as a Service built on the concepts of Master Data Management and the Semantic Web • Rapid deployment (SaaS) or development (PaaS) to meet the immediate needs of the business • New models and tools for improving & evolving internal IT Additional capabilities will emerge as more Cloud Computing gains momentum .Why should we care .

Cloud Capabilities .

ESPN. calendaring. Major League Baseball. New York Times and British Telecom .Using Amazon Web Services can deploy a new server in 3min vs 50days and a 64-node Linux cluster in 5min vs 100days .Using Amazon Storage to store 30-80GB/day of trading activity •NASDAQ Others leaders include Hasbro. documents.Cloud cover Cloud Computing Success Stories •GE . and instant messaging •Eli Lilly . spreadsheets.Global procurement hosting 500k suppliers and 100k users in six languages on SaaS platform to manage $55B/yr in spend . wikis.Reduced infrastructure cost by 30% in part by achieving 70% server utilization •Bechtel •Washington DC .Google Apps used by 38k employees reducing costs to $50/user per year for email.

Cloud cover Cloud Computing Success Stories .

and expertise directly correlates with value. • • • • . Service enablement obviates the need for platform changes focusing instead on pushing data through the process in a seamless stream Business Continuity & Disaster Recovery as a Service Clouds break the link between applications and hardware enabling lightening fast responses to outages and disasters without disruption. Billions of dollars spent provisioning “just in case” environments can be saved while improving service.Cloud cover New services will emerge • • Data Warehousing & Business Intelligence as a Service Today companies are challenged to find and build in-house expertise in both technologies. A service would obviate the large investment in people and technology focusing expenditures on results Business Process Outsourcing as a Service Outsourcing business processes requires adoption for the outsourcer or migration for the customer.

Where To Start .

governance. Create a cloud architecture leveraging SOA for applications. and reference architectures Identify the costs to support. update. If not available target SOA alternatives. or underperforming components and consolidate servers.As part of an IT transformation adopting cloud would look something like this… 1. outdated. and operate each application on a per user basis Target SaaS alternatives offering a better economic model than internal hosting. utility computing for infrastructure. and ESB for integration with appropriate standards. Rationalize infrastructure & applications – Reduce the complexity by identifying redundant. 2. Build cost profiles for each application – 4. Identify and assess SaaS alternatives – . Define the cloud architecture – 3.

replacement (SaaS or SOA). Create cloud enablement roadmap for retained applications – . Build new applications on a SOA foundation – – 7. Migrate infrastructure to a cloud bursting model – Further consolidate servers from just-in-case to average load provisioning using the internal pool of servers left over or an external IaaS provider to handle peak loads Identify systems management gaps and discuss with vendors Applications requiring significant development or new applications should be constructed on a SOA foundation with a particular focus on application virtualization Define a development roadmap which migrates retained applications to a cloud model through outsourcing (SaaS). 6. or development (SOA).Where do we start .the weather forecast …and this… 5.

privacy. and ownership • 3rd party SLA’s • Integrated support External IaaS Driver PaaS Internal IaaS Driver • Agility • Maximize efficiency • Maximize ROA Requires • Server virtualization • Service level agreements • Automated infrastructure provisioning and orchestration • Integrated systems management suite • Challenges • Application silos Internal SaaS Driver • Agility • Maximize reuse • SOA Requires • Internal IaaS • Application virtualization Challenges • Application monitoring tools • Driver • Development • Cloudbursting – of external overflowing from internal to external facing web compute resources solutions • Requires • Storage on • Understanding demand of SaaS • New compute application intensive services and data models Requires • Scheduler to move • Challenges • Integration to jobs to cloud backend • Internet systems bandwidth • Data security. Challenges privacy and ownership • Security • 3rd party SLA’s .…but there are many onramps to Cloud Computing: External SaaS • Driver • Quickly gain new capabilities • Select best in class point solutions with already well defined integration methods (EDI) • Requires • Nothing • Challenges • Governance • Data security.

Q&A .