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Cloud Database Management System

IS508E group NO.6 project

Group NO.6 members: PENG Yu KALAI Kumaraguru KUTTIKKAT VENUGOPAL Sreehari

Contents
General business case ............................................................................................................... 1 Introduction and problems ....................................................................................................... 1 The existing technology ............................................................................................................ 2 Challenges of Implementation: ................................................................................................. 9 Reference: ............................................................................................................................... 10

General business case
Thanks to the successful management, the business of the company expands very fast. However, the database management system cannot withstand the quickly and greatly increased work load, the break-down frequency increases, which make the decision-making efficiency and customer experience drop. The company tries to turn around this bad trend and poses two solutions: one is to update the present DBMS including hardware, software and human resource; the other one is to make use of SQL Azure from Microsoft to set up cloud environment and transfer the DBMS there. After cost analysis, we find that to reach the same efficiency standard, the cost of first solution is 9 times of the second solution, and the second solution has merits such as capability, flexibility and elasticity, so we suggest implementing the second solution: Cloud DBMS, SQL Azure.

Introduction and problems
We are an express company in North America. We transport the parcels for customers. We have good performance and with the blooming online shopping, our business expands very fast. Recently, a large online retailer just outsources its express service to us. Our daily express order increases by 2 times more than before. Our IT department, where there are three employees. They are in charge of maintaining the database management system (DBMS) and the website providing order reacceptance and parcel tracing service. Because of the expansion of business and the outsourcing contract, the requests for placing orders and tracing parcels on the website soar 4 times than before. The present web server cannot support such huge data stream, sometimes it crashes, and this influences the clients experience and the business terribly. In front of these greatly increased clients, parcels and tracking information needs, our present database management system is not responsive and powerful enough to meet the searching, ordering, processing and indexing requirement. Now there are two solutions to these problems. One solution is to buy software, update the hardware and recruit more employers to strengthen the present DBMS; however, this is another problem brought by this solution. The online shopping is seasonal fluctuating, which means that in official holidays, such as the national day, thanks giving day, charismas day, New Year day and so on, the online shopping activities are much more intensive than usual. Correspondently, the express orders and requests for parcel tracing also rise greatly. Here is the problem, how should we equip the present database management system, to meet the peak amount of requests or to meet the usual amount of requests. If we choose to meet the peak amount of requests, the investment will sure much bigger than that of meeting the normal amount of requests, and when the holiday passes, the capacity of system will
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be left unused, this is a waste of resources and investment; if we choose to meet the usual amount of requests, the limited capacity of system during the holidays will cause bad customer experience, which will bring the loss of orders and clients, moreover, the profit of the orders in holidays takes big proportion of the annual profit, and this makes the result worse. The other solution is to make use of the cloud computing technology, which means to set up DBMS on the cloud computing platform, and move all the present data to cloud DBMS. The cloud DBMS service is scalable and flexible, it can adjust the capability according to our needs, and then we do not have to face the dilemma system configuration problems. After talking with the responsible of IT department, we make a consensus that the cloud DBMS is a better choice than the in-house DBMS. Not only the cloud DBMS will give more powerful performance, it requires less labor support and it simplifies the future investment and improvement process for the DBMS. Then we will present the cloud DBMS technology and make a comparison between cloud DBMS and in-house DBMS. We will also show the advantage and disadvantage of cloud DBMS, the cost and time to implement. An analysis of the cloud service market will report for the sake of choosing a proper cloud service supplier. The challenges in the implementation will not be neglected.

The existing technology
DBMS
A DBMS is the software that is installed on a physical server and stores and manages databases. It can run databases from multiple software. For example, it could manage the databases for the accounting system, the CRM and the ERP. Each system would then be on a separate database in the DBMS. The main objective of a DBMS is to provide error-free data and to keep a good level of performance. Since databases need live information, the modern DBMS are very powerful in managing a lot of users and processing huge amount of data.

Cloud DBMS
Cloud database management system (CDBMS) is a distributed database that provides computing as a service rather than a product. It is the distribution of resources, software, and information between multiple devices through a network which is commonly the internet. It is expected that this number will grow significantly in the future.

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Benefits of cloud database over traditional database
Lower upfront costs Cloud computing significantly reduces capital expenditure of a company to deploy DBMS application. The part of the upfront costs reduced mainly includes expenses for hardware, user licenses, and implementation, excluding user training and customization. Lower operating costs Cloud-based DBMS reduces operating costs for energy, maintenance, configuring, upgrades, and other IT staff costs and efforts. This benefit is generally considered as a growing significance for SMEs using traditional DBMS. Rapid implementation Rapid implementation is generally agreed to be among the best advantages of cloud-based DBMS. It could also help to facilitate cloud services providers in reducing the time to deliver new products in certain types of businesses. Scalability Resource pooling and rapid resource elasticity of cloud-based DBMS make the infrastructure capacity highly elastic. That in turn enables faster time to market, high level of strategic flexibility and improved competitiveness. This feature is reported as a possible advantage that is particularly relevant for SMEs in competing with large rivals. Focus on core competencies DBMS cloud and other business applications allow focusing resources that would be used to maintain an IT department in other key areas of the business. Thus it reduces pressure of internal IT department which enables it to focus on servicing core competencies. Access to advanced technology Cloud-based applications often enable access to specialized technology and advanced computing resources that otherwise would not have been accessible to SMEs. Rapid updates & upgrades Cloud-based DBMSs usually get faster updates and new functionality than traditional DBMSs Improved accessibility, mobility, and usability Unlike Traditional Database system, Cloud based database applications could be easily accessed through any internet connected device, therefore it is accessible anywhere any time.
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Improved system availability and disaster recovery In many cases SaaS providers ensure measures such as backup routines, fallback and recovery procedures, conditioned power etc. of higher quality than most SMEs do in-house.

Disadvantages (shortcomings) of traditional database system
High cost Installing new database system may require investment in hardware and software. The DBMS requires more main memory and disk storage. Moreover, DBMS is quite expensive. Therefore, a company needs to consider the overhead cost of implementing a new database system. Training new personnel When an organization plans to adopt a database system, it may need to recruit or hire a specialized data administration group, which can coordinate with different user groups for designing views, establishing recovery procedures, fine tuning data structures to meet the organization requirements. Hiring such professionals is expensive. Explicit backup and recovery A shared corporate database must be accurate and available at all times. Therefore, a system using online updating requires explicit backup and recovery procedures. System failure When a computer system containing the database fails, all users have to wait until the system is functional again. Moreover, if DBMS or application program fails a permanent damage may occur to the database.

Cost, time, feasibility estimates and justification of investmen
This part will present the cost, time and feasibility of in-house DBMS and cloud DBMS, and compare them to make the justification of the final choice, cloud DBMS. In order to decide the cost of strengthening the in-house database management system (in-house DBMS), there are several elements need to be concerned. 1. The infrastructure cost. For the servers, we will choose 2 HP ProLiant BL460c Gen8 E5-2640v2 2.0GHz 8-core 2P 48GB-R P220i/512 FBWC servers to avoid system breaking down, each one cost 4314$, so the total cost is 8628$; For the hard drive, we choose Seagate expansion 4TB, 3 pieces, 154$ for each, so the total cost is 462$; For the new recruited 3 IT employees, we will prepare new
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desk top computers for each one; We choose DELL Optiplex 3020, each costs 519$, the total cost is 1557$. The infrastructure cost for DBMS is 10647$. When we have these hardware, they will cost 20% of the initial price as the maintenance fee, which is 2129.4$/year. 2. The cost of new database management system (DBMS). There are several mainstream DBMS on the market, IBM’s DB2, Microsoft ’s SQL Server and Oracle’s Oracle. There is no need to compare the technical difference among those three DBMS, because all these main engines have been around for many years and have undergone constant development. If any of these were truly incompetent in normal usage, it would long ago have been weeded out. That's another way of saying that all of these engines are highly competent; more than capable of running 90 to 95% of the database applications that we are likely to throw at them. So, we will assume to choose Microsoft ’s SQL Server, because its relatively lower price and it ’s more compatible with our present operating system, Windows. We take SQL Server 2012 standard edition. There are two licensing models, per processor licensing and server/CAL licensing. As our IT department is small and they are the only persons in the company who need access to manipulate the DBMS, and including the new recruited 3 employees, there are 6 employees in IT department, so we choose server/CAL model. What ’s more, each server running SQL Server requires a license, so 8 Licenses are needed, each license cost 898$, the total cost is 7184$. The license need to be renewed each year to get the new features, the renewal fee is 25% of the license price, so each year we have to pay 1796$ to renew the license annually. 3. Human resource cost. As it is referred above, the present three employees are not capable of maintaining the DBMS, not even saying after the new equipment arrives. More IT employees are needed to strengthen the efficiency of the department. Three more software development engineers are planned to be recruited; the national average salary of this post is 63000$ per year, and we take this average figure, the human resource cost will be 189000$ per year. 4. Time consumed of implementation and integration of new software, new hardware and new staff. The lead time of software and hardware can be 1 week, and to install, adjust and test them may take 3 weeks, the recruitment process can last for 1 month. Time also needed for the new employees to get familiar with the whole information system of the company, it will take 3-4 weeks in an urgent situation. If we begin the preparation activities, such as ordering software, hardware and recruiting IT engineers, at the same time, the whole process will take 2 months.

Here is a summary of in-house DBMS solution:
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DBMS software Human Time cost cost resource cost In-house 10647$ first buy, 7184$ first time, 189000$/year 2 months 2129.4$/year 1796$/year after DBMS after For the cloud database management systems management (cloud DBMS), we will compare the same elements that we do in the in-house DBMS. 1. Hardware cost. Because we choose cloud DBMS service, which means to choose a cloud service provider, we would occur a monthly payment; we would not need to purchase the hardware itself nor would we need to purchase the windows servers operating system. And we would also avoid the extra 20% maintenance fee of hardware and software discussed previously, because all the activities related to this item are performed by the cloud service provider; 2. Cloud DBMS cost. Here we have two choices, Amazon RDS and SQL Azure. Both of them are among the biggest cloud DBMS service providers in the world. As both SQL Azure and SQL Server are products of Windows, they are compatible very well. Recently, Amazon RDS also announced the support to SQL Server. Then we will compare the monthly pricing of Amazon RDS and SQL Azure respectively. SQL Azure pricing:
Service
SQL Server License(SQL Azure) 10GB instance Storage Tx inbound(ingress) Tx outbound(egress) Total Estimated Database Cost

Hardware cost

Price 0 45.96 0.1 0 0.1
Per GB per month, first5GB free per month per month per GB

Unit 0 1 10 0 10

Cost 0 45.96 1 0 0
46.96

10 Web Role Instances(Web) 2 Web Role Instances Tx outbound to Internet Total Estimated Web & Middle-Tier Servers

0.12 0.24 0.12

per hour per hour per GB per month, first 5GB free

7200 1440 1000

864 345.6 119.4
1329

Reporting Services Total Estimated Reporting Services Cost

0.16

per GB

720

115.2
115.2

Total Monthly Cost(SQL Azure)

1491.16

Amazon RDS pricing:
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Service
SQL Server License On-Demand SQL Server RDS Small Instance Storage I/O Rate Tx inbound(ingress) Tx outbound(egress) Total Estimated Monthly Database Cost

Price 0 0.65 0.1 0.1 0 0.12
Per GB per month, 1 GB free
st

Unit 0
per hour per month per GB per million requests

Cost 0 468 1 0.1 0 1.08
470.18

720 10 1 10 10

10 EC2 Small On-Demand Instances(Web) 2 EC2 Medium On-Demand Instances (Middle-Tier) Tx outbound to Internet Total Estimated Monthly Web & Middle-Tier Servers

0.115 0.23 0.12

per hour per hour per GB per month, 1 GB free
st

7200 1440 1000

828 331.2 119.88
1279.08

SQL Server 2012 License (express edition) 1 EC2 Small On-Demand Instance Tx outbound to Internet Total Estimated Monthly Reporting Services Cost

0 0.115 0.12
per hour per GB

0 720 1

0 82.8 0.12
82.92

Total Monthly Cost(Amazon RDS)

1832.18

To compare the pricing in the tables above, SQL Azure offers a less expensive service with a price advantage of about 18%. The total yearly cost of SQL Azure is 17898.92$. However, we still need to buy the license of SQL Server. In order to deploy in cloud environment, the enterprise edition is needed, the price is 6874$ with the license renewal fee 1718.5$. It is interesting to notice that the major difference of price is relate to the database platform price, which is monthly database price, as shown in the graph below. Because both SQL Azure and SQL Server are products of Microsoft, Microsoft is able to offer a great price break. There is also no doubt that SQL Azure will be compatible with SQL Server. From the economic and function aspect, SQL Azure is a better choice than Amazon RDS.

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1400 1200 1000 800 600 400 200 0 Monthly databse cost Monthly servers cost Monthly reporting cost Amazon RDS SQL Azure

3. Human resource cost. Because we do not buy the servers or exterior storage device, there is no need to recruit extra IT engineers to test and maintain this equipment. After the implementation of SQL Azure, the efficiency of IT department will be hugely increased and the work load will not be as heavy as before, because the cloud service provider will be in charge of the maintenance of DBMS. So there is no human resource cost for this solution; 4. Time cost. As there is no hardware to buy, to install or to test, the implementation time will largely decrease. When we get SQL Server and SQL Azure, only installation, configuration and data migration are needed, these activities will be finished in one week, and it will take another week for the present IT employees to get used to the new DBMS, so the total time cost is two weeks. Here is the summary of cloud DBMS solution: Hardware cost Cloud DBMS 0$ DBMS software Human Time cost and cloud cost resource cost 24772.92$ first time, 0$ 2 weeks 19617.42$/year after

If we merge the summary tables of the two solutions, it is easy to tell which solution is better: DBMS software Human Time cost cost resource cost In-house 10647$ first buy, 7184$ first time, 189000$/year 2 months 2129.4$/year 1796$/year after DBMS
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Hardware cost

Cloud DBMS

after 0$

24772.92$ first time, 0$ 19617.42$/year after

2 weeks

To reach a more practical and continuous vision, we make three-year cost analysis as following: Year 1 206831$ 24772.92$ Year 2 192925.4$ 19617.42$ Year 3 192925.4$ 19617.42$ Total 592681.8$ 64007.76$

In-house DBMS Cloud DBMS

The three-year total cost of In-house DBMS is 9 times of that of Cloud DBMS. Although the human resource cost takes a big proportion, it is evident that the company has to recruit more IT engineers when the devices increase, the company has no other choice but to do that.

Challenges of Implementation:
The speed of data transfer is a barrier to the performance of the cloud database. This affects the performance of the cloud database. The requests sent to the database are very fast, but the time taken to save data from data center depends on the speed of the internet. The solution to this challenge is that to have faster speed cables, but that cost very high and the purpose of having a cloud database will unwanted. The business workload and the query work load. In query workload, it depends on the number of queries, and it is not known how many users will be there who will be creating queries to the database. When In the business workload, we can get an estimate about the time that will be required while on the other pointer, we cannot estimate about the time of query workload. Challenges of big data. About previous years ago, most of the data composed by organization consisted of transaction data that could appropriate into rows and columns of relational database management system. Later then, there has been an explosion of data from web traffic control, email messages and social media as well as machine generated data from sensor. These data may be unstructured or semis structured and are not suitable for relational database products that organize data in the form of rows and columns. So now one solution is that we use the word big data to define these dataset with capacities so huge that they are outside the ability of typical DBMS to store, analyze and capture.
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Privacy and security. Privacy has been the most important issue when it comes to cloud database software as a service. The cloud computing is a more advanced in terms of the availability to the users and hackers who like to interruption into the system. The privacy in the cloud database is the very important thing that saves the record of the customers of the companies. The companies cannot afford to outflow out the information that is stored in their database. If there is encryption of data in database, then it is quite easy to store in a secure way.

Reference:
1. Aljaz Zrnec, Dejan Lavbic, ‘Comparison of cloud vs. Tape backup performance and cost with Oracle Database’, JIOS, VOL. 35, NO.1 (2011); 2. Yvette E. Gelogo, Sunguk Lee, ‘Database Management System as a Cloud Service’, International Journal of Future Generation Communication and Networking, Vol. 5, No. 2, June, 2012; 3. Daniel J. Abadi, ‘Data Management in the Cloud: Limitations and Opportunities’, IEEE Computer Society Technical Committee on Data Engineering, 2009; 4. Mike Chapple, ‘Microsoft SQL Server 2012: Choosing the Correct Edition’, http://databases.about.com/od/sqlserver/a/sql_server_2012_licensing.htm; 5. Herve Roggero, ‘Sample Pricing Comparison: On-Premis vs. Private Hosting vs. Cloud Computing ’, http://geekswithblogs.net/hroggero/archive/2013/02/25/sample-pricing-compar ison-on-premise-vs.-private-hosting-vs.-cloud-computing.aspx; 6. HP, ‘Servers’, http://h71016.www7.hp.com/ctoBases.asp?oi=E9CED&BEID=19701&SBLID=&Pro ductLineId=431&FamilyId=3530&LowBaseId=38904&LowPrice=%242%2C057%2E 00; 7. John Treadway, ‘Amazon RDS vs. SQL Azure: The Birth of the DBMS Utility‘, http://cloudbzz.com/2009/10/27/amazon-rds-vs-sql-azure-the-birth-of-the-dbms -utility/; 8. Paul DeGroot, ‘Why Your Microsoft Enterprise Agreement Renewal Costs May Explode Over The Next Three Years’, http://70.32.90.244/blog/microsoft-enterprise-agreement/microsoft-enterpriseagreement-negotiations/why-your-microsoft-enterprise-agreement-renewal-cost s-may-explode-over-the-next-three-years/;

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