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Module 4: Cloud Computing &



Whatt iis cloud

l d computing?
ti ?
Business advantages
Issues and challenges
Utility Computing
Grid computing


The rise of the cloud is more than just another platform shift that
gets geeks excited. It will undoubtedly transform the IT industry, but
it will also profoundly change the way people work and companies
operate. - The Economist, Let it Rise, 10/23/08 (Sun Cloud
Computing 2009)
A pool of highly scalable, abstracted infrastructure, capable of
hosting end-customer applications, that is billed by consumption(Staten 2008, Forrester Research)
Cloud computing is the set of disciplines, technologies, and
business models used to render IT capabilities as on-demand
services (
Cloud Computing is the sum of SaaS and Utility Computing
(Armbrustet al. 2009)

Definitions (con)
Its one of the foundations of the next generation of computing. . ..
Its a world where the network is the platform for all computing,
where everything we think of as a computer today is just a device
that connects to the big computer were building. Cloud computing is
a great way to think about how well deliver computing services in
the future. Tim OReilly, CEO, OReilly Media (Sun Cloud
Computing 2009)
A Cloud is a type of parallel and distributed system consisting of a
collection of interconnected and virtualised computers that are
dynamically provisioned and presented as one or more unified
computing resources based on service-level agreements
established through negotiation between the service provider and
consumers (Buyyaet al. 2008)
Clouds are clearly next-generation data centerswith nodes
virtualized through hypervisor technologies such as VMs,
dynamically provisioned on demand as a personalized resource
collection to meet a specific service-level agreement, which is
established through a negotiation and accessible as a composable
service via Web 2.0 technologies(Buyyaet al. 2008)


What is Cloud Computing?

New computing paradigms have been proposed and
adopted, with the emergence of technological
h as cluster
l t computing,
id computing,
P2P computing, service computing, market-oriented
computing, and most recently Cloud computing(Buyyaet al. 2008)
Clouds provide on demand resources or services
over the Internet, usually at the scale and with the
reliability of a data center (Grossman 2008)
Y use what
h t you need
d and
d you pay ffor what
h t you use
e.g. Amazon S3 and Simple DB and Google App
Engine all charge based on storage, bandwidth, and
CPU time services run on shared infrastructure

Cloud Computing
Cloud computing gives an edge to enterprises
as they can add capabilities and increase
capacities on the fly without having to invest in
infrastructure, training or licenses. One of the
most important features of cloud computing is
automated management and reallocation of
resources. This means that a user can work on
a platform without worrying about adaptability,
scalability and elasticity.
Kaustubh Dhavse
Deputy Director of ICT practice at Frost & Sullivan


Cloud Computing 3.19 min.

Youtube Video

What is driving businesses to



Ranked Number 1

Ranked in Top 3

Cost saving



Uptime/High availability






Consumption-based pricing









Rapid deployment



(Cloud Computing Trends Report 2009)

Why Cloud Computing?

Cloud computing is more than pay by drink compute platforms it
is a convergence of two major interdependent IT trends (Sun Cloud
Computing 2009):
IT Efficiency - Minimise costs though virtualisation, improve
infrastructure resource deployment and utilisation
Business Agility - Maximise returns using IT as a competitive weapon
through rapid time to market, integrated application stacks, instant
machine image deployment, and petascale parallel programming

Example: The New York Times needed to convert 11 million articles

and images in its archive (from 1851 to 1980) to PDF. Their Internal
IT dept.
dept said it would take them seven weeks
weeks. In the meantime
meantime, one
developer using 100 Amazon EC2 simple Web service interface
instances running Hadoop (an open-source implementation similar
to MapReduce) completed the job in 24 hours for less than $300!
(, Self-service, Pro-rated Super Computing
(Sun Cloud Computing 2009)


Business Advantages
Cloud computing is a new and promising
paradigm delivering IT services as
computing utilities
Delivers higher efficiency, massive
scalability, and faster, easier software
It is
i about
b t new programming
i models,
d l new
IT infrastructure, enabling of new business

Use the cloud: best option for start-ups, research projects, Web 2.0
developers, or niche players who want a simple, low-cost way to
load and go
Leverage the cloud:
Development and testing: the easiest cloud use case for enterprises
Functional offloading: use the cloud for specific workloads
Augmentation: a new option for handling peak load or anticipated
spikes in demand for services
Experimenting: software evaluation can be performed in the cloud,
before licenses or support need to be purchased

Build the cloud: build private clouds to take advantage of the

i off resource pools
l and
d standardize
t d di th
i d
t and
deployment processes
Be the cloud: includes both cloud computing service providers and
cloud aggregators companies that offer multiple types of cloud
(Sun Cloud Computing 2009)


When to apply cloud computing?

Moving internal services to pay-as-you-go
Quick provisioning and de-provisioning of users and
Mobility advantages accessing your application or data
anytime, anywhere
Reducing specialised IT administration expertise
through cloud infrastructure
Improved economics due to shared infrastructure
Lightweight entry/exit service acquisition
The business, security, and privacy concerns of cloudhosted identities and data

Examples of Use

(Staten 2008)


Major Cloud Builders

(Staten 2008)

Why IT leaders will embrace

cloud computing
Separation of data from apps: front end applications will be
delivered in the Web browser while the backend will be
powered by highly-scalable
highly scalable databases
Front-end and backend databases: will be able to exist in
separate locations much more easily and effectively
Offline access for online apps: Web applications develop an
offline component in addition to the standard online
Ubiquitous mobile Internet access: making Internet access
virtually ubiquitous -or at least available anywhere you can
connectt to
t a cellll tower
Moving CAPEX to OPEX: allows a company to move much of
its infrastructure costs from being capital expenditure
(CAPEX) to being operating expenditure (OPEX)


Maturity Model
Stages of evolution for an enterprise data
t trying
t i to
t achieve
l d Ni
NirvanaJames Urquhart
Consolidation Abstraction Automation Utility Market


Steps in Maturity Model

Consolidation - reduce redundancy and wasted space and
equipment by measured planning of both architecture
(including facilities allocation and design) and process
Abstraction - occurs when data centers decouple the
workloads and payloads of their data center infrastructure
from the physical infrastructure itself, and manage to the
abstraction instead of the infrastructure.
Automation - comes into play when data centers
systematically remove manual labor requirements for run time
operation of the data center.
Utilit - is
i th
the stage
att which
hi h d
t centers
t d
concepts of self-service and metering.
Market - is achieved when utilities can be brought together
over the Internet to create an open competitive marketplace
for IT capabilities (an "Inter-cloud", so to speak)
Urquhart 2008


The Architectural Services

Layers of Cloud Computing
Software as a Service (SaaS) SaaS is at the highest layer
and features a complete application offered as a service,
ondemand via multitenancy - e.g.
e g Googles
Google s email services
Platform as a Service (PaaS) The middle layer, or PaaS, is
the encapsulation of a development environment abstraction
and the packaging of a payload of services, e.g. Commercial
examples include Google App Engine, which serves
applications on Googles infrastructure
Infrastructure as a Service (IaaS) IaaS is at the lowest
layer and is a means of delivering basic storage and compute
capabilities as standardized services over the network
networkcommercial example is Amazon Web Services, whose EC2
and S3 services offer bare-bones compute and storage
services (respectively)

(Sun Cloud Computing 2009)

Cloud computing services

Virtualization - Solves core challenges of data center

Higher utilization rates

Resource consolidation
Lower power usage/costs
Space savings
Disaster recovery/business continuity
Reduced operations costs

Operating System Virtualization

Platform Virtualization
Network Virtualization
Application Virtualization
(Sun Cloud Computing 2009)



Cloud computing services

Software Deployment
Software Packaging -The
The software
packaging of software components, data, server
and storage pools, and other cloud resources
makes efficient resource allocation, re-use, and
management possible
Machine Images - Machine images contain userspecific applications, libraries, data, and
associated configuration settings and are hosted
within the cloud e.g. Paid AMIs(Amazon Machine
Images) can be created by ISVs and stored on
Amazon Simple Storage Service (S3)
(Sun Cloud Computing 2009)

Major Obstacles-cloud computing

providers must overcome




High-level market-oriented cloud


(Buyya et al. 2008)

Market oriented Cloud


Cloud providers will need to consider and meet different QoS parameters of
each individual consumer as negotiated in specific SLAs.
Market-oriented resource management is necessary to regulate the supply
and demand of Cloud resources at market equilibrium, provide feedback in
terms of economic incentives for both Cloud consumers and providers, and
promote QoS-based resource allocation mechanisms that differentiate
service requests based on their utility
There are basically four main entities involved

Users/Brokers: Users or brokers acting on-their behalf submit service requests from
anywhere in the world to the Data Center and Cloud to be processed.
SLA Resource Allocator: The SLA Resource-Allocator
Resource Allocator acts as the interface between the
Data enter /Cloud service provider and external users/brokers.
VMs: Multiple VM scan be started and stopped dynamically on a single physical machine to
meet accepted service requests, hence providing maximum flexibility to configure various
partitions of resources on the same physical machine to different specific requirements of
service requests
Physical Machines: The Data Center comprises multiple computing servers that provide
resources to meet service demands.
(Buyya et al. 2008)



Cloud services

(Linthicum 2006)

Cloud Computing, the long-held dream of computing as a utility, has
the potential to transform a large part of the IT industry, making
software even more attractive as a service and shaping the way IT
hardware is designed and purchased.
Developers with innovative ideas for new Internet services no longer
require the large capital outlays in hardware to deploy their service
or the human expense to operate it
Cloud Computing refers to both the applications delivered as
services over the Internet and the hardware and systems software in
the datacenters that provide those services-referred to as Software
as a Service (SaaS).
The data center hardware and software is what we will call a Cloud
When a Cloud is made available in a pay-as-you-go manner to the
general public, we call it a Public Cloud-the service being sold is
Utility Computing
Private Cloud to refer to internal data centers of a business or other
organization, not made available to the general public.
(Armbrust et al. 2009)



Enterprises currently employ conservative IT strategies and are
unwilling to shift from the traditional controlled environments
Cloud computing uptake has only recently begun and many systems
are in the proof-of concept stage
Regulatory pressures also mean that enterprises have to be careful
about where their data gets processed, and therefore, are not able
to employ Cloud services from an open market.
Could be mitigated through SLAs that specify strict constraints on
the location of the resources
The state-of-the-art Cloud technologies have limited support for
market-oriented resource management and they need to be
extended to support: negotiation of QoS between users and
providers to establish SLAs; mechanisms and algorithms for
allocation of VM resources to meet SLAs; and manage risks
associated with the violation of SLAs.

(Armbrust et al. 2009)


(Armbrust et al. 2009)



Latency and bandwidth related issues associated with any
remote application
V i
iissues related
l t d tto multiple
lti l customers
ibl sharing
h i
the same piece of hardware
Having data accessible by third parties (such as the provider
of cloud services) may present security, compliance or
regulatory issues.
Clouds that provide on-demand capacity, portability and
interoperability is much more problematic
p Hadoop
p is by
y far the most prevalent
provides on-demand capacity, but, for example, it is not
straightforward for a Hadoop MapReduce application to run
on another on-demand capacity cloud that is written in C++

(Grossman 2008)


Transparency - The application delivery solution used to provide

transparent load-balancing services will need to be automated and
into the p
g workflow p
process such that resources can
be provisioned on-demand at any time.
Scalability - The "control node" often depicted in high-level diagrams of the
"cloud computing mega data center" will need to provide on-demand
dynamic application scalability.
Intelligent monitoring - If the number of concurrent users accessing a
service is reaching capacity, then the application delivery solution should be
able to not only detect that through intelligent monitoring but participate in
the provisioning of another instance of the service in order to ensure service
to all clients
Security - Cloud computing is somewhat risky in that if the security of the
cloud is compromised potentially all services and associated data within the
cloud are at risk. It should also provide full application security -from layer 2
to layer 7 -in order to thwart potential attacks at the edge. Network security,
protocol security, transport layer security, and application security should be
prime candidates for implementation at the edge of the cloud, in the control



SaaS & Cloud Computing

Similar to utility computing
Pay as you use
Service on demand
High availability
Disaster recovery

What is SaaS
SaaS = Software as a Service
It is a Deployment/Delivery model
Hosted and Managed by vendor
Delivered across the Internet

It is a Business Model: usage-based pricing (vs.

perpetual license model of on-premise software).
Per user per month
Per transaction
Per GB of storage per month
(Scio Consulting International 2009)



History of SaaS
Born during dot-com era (late 90s)
ASP (Application Service Provider)
Apps hosted/managed by Vendor
Remote access through VPN
Almost died with dot-com burst

Early SaaS companies born in early 00s

2003-2005 High-speed
g p
Internet g
growth =
trigger for SaaS
Feb 2009 reported annual
revenues of $1,000 Million USD
(Scio Consulting International 2009)

SaaS Evolution

(Scio Consulting International 2009)



How SaaS works

Network-based access to commercially
il bl software
Multi-tenancy (one-to-many)
Payment Model
Central Application Management
S ft

Control of Upgrade Process

(Scio Consulting International 2009)

Benefits for clients

Lower entry point
No large up-front
up front investment in
Software licenses
IT infrastructure

Lower operating/maintenance costs

Fast, easy deployment (Web browser)
Vendor maintains/upgrades application
No IT staff necessary to keep running

Consumption-based expenditure
Pay As You Go (OpEx vs CapEx)
Scale up/down as needed
(Scio Consulting International 2009)



Benefits for Users

Easy deployment/ramp up
Typically based on Web browser access
No additional hardware/software needed

Any time, Any where access

Outside the corporate firewall

Transparent updates
Support direct from Vendor
(Scio Consulting International 2009)

Benefits for Vendors

Economies of Scale
Derived from Multi-tenant architecture
B tt resource utilization
tili ti
Simplified maintenance

For a well designed app, operating costs per customer drop as

customer base grows

Better understanding of usage patterns

To drive innovation and enhancements

Faster release cycles to keep up with market and competition

De-facto access to Global market

(Scio Consulting International 2009)



Benefits for Vendors

Market Reach Catch the Long Tail
Traditional Model

(Scio Consulting International 2009)

Long Tail Continued

(Scio Consulting International 2009)



SaaS Stack

(Scio Consulting International 2009)

Challenges to be overcome
Federate: A plethora of heterogeneous storage systems exist,
creating a homogenous interface is a key step in federating
Share: Ensuring that distributed storage resource is shared
fairly among users and that no single user can deny access to
others, accidentally or otherwise
Security: Operating on non-trusted infrastructure requires the
use of cryptographic mechanisms in order to enforce
authentication and prevent malicious behavior
Reliability: Storage medium and network failures are
common in
i a global
l b l storage
f t t
d th
mechanisms of remote replicas and erasure codes need to be
employed to ensure that persistent reliable access to stored
data is achieved
(Yeo et al. 2006)



Utility Computing
Utility computing is the on demand delivery
off infrastructure,
i f t t
li ti
processes in a security-rich, shared,
scalable, and standards based computer
environment over the Internet for a fee.
Customers will tap into IT resourcesand
pay for themas easily as they now get their
electricity or water - IBM Global Services
(Adapted from Rappa 2004)

Utility computing
The amount of computer resources you use
is metered, and you
re charged for the usage.
The more you use, the more you pay
Youre renting the services you need from an
off-site area
Utility computing is an economic model in
which you request and pay for computing
services by the slice as you need them
(Grossman 2008)
Examples-Amazon's S3 and EC2 are based
upon a utility computing model



Difference in Utility and Cloud

From a hardware point of view, three aspects are new in Cloud
The illusion of infinite computing resources available on demand - thereby
eliminating the need for Cloud Computing users to plan far ahead for provisioning
The elimination of an up-front commitment by Cloud users - thereby allowing
companies to start small and increase hardware resources only when there is an
increase in their needs
Ability to pay for use of computing resources on a short-term basis as needed

Utility Computing - is when demand for a service varies with time. For example, a
web startup will need to support a spike in demand when it becomes popular,
followed potentially by a reduction once some of the visitors turn away
Cloud Computing - lets an organization pay by the hour for computing resources,
potentially leading to cost savings even if the hourly rate to rent a machine from a
cloud provider is higher than the rate to own one
Cloud based services can be run by an organization as a private cloud, can be
offered through a utility computing model (Grossman 2008)
(Armbrustet al. 2009)

Utility Business Model

The factors of user necessity, reliability,
usability, utilization, scalability, and
exclusivity, when taken together, shape the
business model for utility services
The utility model is based on metering usage
and constitutes a pay as you go approach.
Unlike subscription services, metered
services are based on actual usage rates
The provision of computing services is
increasingly driven by economies of scale
and the effective utilization of resources



When cloud computing is served with utility computing
it provides a number of benefits
reduced capital expense, low barrier to entry, and the
ability to scale up as demand requires, including support
for brief surges in capacity.
cloud based storage services can easily managed a PB
(Petabyte) of data, while managing this much data with a
traditional database is problematic.
Utility computing is less capital intensive, you pay for
y as yyou need it
Utility computing allows you to access capacity exactly
when you need it-e.g. for Web 2.0 applications, with a
utility computing model, 100 users can be served on one
day and next day 10,000 users can be served
(Armbrustet al. 2009)

Benefits for Providers

Providers can reallocate resources easily and
y to users that have the highest
Efficient usage of resources minimizes operational
costs for providers since they are now able to
serve a larger community of users without letting
unused resources g unutilized
Enables providers to achieve a better Return On
Investment (ROI) such as Total Cost of Ownership
(TCO) since shorter time periods are now required
to derive positive returns and incremental profits
can be earned with the gradual expansion of
infrastructure that grows with user demands
(Yeo et al. 2006)



Benefits for Users

Reduction of IT-related operational costs and complexities
Users no longer need to invest heavily or encounter difficulties
i b
ildi and
d maintaining
i t i i IT iinfrastructures
f t t
Computing expenditures can now be modeled as a variable
cost depending on the usage patterns of users, instead of as
a static cost of purchasing technologies and employing staff to
manage operations
Users neither need to be concerned about possible over-or
under-utilization of their own self-managed IT infrastructures
during peak or non-peak usage periods
Provides increased flexibility and ease for users to adapt to
their changing business needs and environments

(Yeo et al. 2006)

Major Industrial Solutions for

Utility Computing

(Yeo et al. 2006)



Grid computing
A Grid is an Internet-based network of
g p
y distributed computing
g resources
that users can share and aggregate to solve largescale problems-Madhu Chetty and Rajkumar
Buyya 2002 (Adapted from Yeo et al. 2006)
An infinite number of computing devices ranging
from high performance systems such as
supercomputers and clusters, to specialized
systems such as visualization devices
devices, storage
systems, and scientific instruments, are logically
coupled together in a Grid and presented as a
single unified resource to the user-Buyya et al
2001 (Adapted from Yeo et al. 2006)

Grid Computing Overview

A Grid user can easily use these globally
di t ib t d G
id resources b
by iinteracting
with a Grid resource broker
A Grid user perceives the Grid as a single
huge virtual computer that provides
immense computing capabilities, identical
to an Internet user who views the World
Wide Web as a unified source of content
(Yeo et al. 2006)



Applications soon to be
employed on Grids

Aircraft engine diagnostics

Earthquake engineering
Virtual observatory
Drug discovery
Digital image analysis
High energy physics
Multi-player gaming
(Yeo et al. 2006)

Grids can be primarily classified

into three types
Computational Grids aggregate
computational power of globally distributed
Data Grids emphasize on a global-scale
management of data to provide data access,
integration and processing through
distributed data repositories
Service Grids (also known as Utility Grids)
focus on user satisfaction by combining and
delivering services based on users needs
and requirements
(Yeo et al. 2006)



On-Demand assembly of
services in a Utility Grid

(Yeo et al. 2006)

Expected worldwide Grid


Expected worldwide Grid spending from year 2005 to 2010 in

billion dollars (Insight Research Corporation)
(Yeo et al. 2006)




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