Chapter 1:

Cloud Computing Concepts

Semester 1 2022/2023
By
Assoc. Prof. Ts. Dr. Novia Admodisastro
Software Engineering & Information System Department
FSKTM, UPM
Topic Outline

• Definition of Cloud Computing

• Cloud Benefits
• Cloud Vendors
• Cloud Computing Related (e.g. utility, grid, virtualisation, SOA etc)
Course prerequisites

• General Required Knowledge

• IT technical knowledge

• IT business knowledge

• Preferred Knowledge

• Working knowledge of distributed systems

• Familiarity with general networking concepts

• Working knowledge of multi-tier architectures

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Section 1: Definition of Cloud Computing
Chapter 1: Cloud Computing Concepts
IT needs to address these business challenges

• Doing more with less

• Reduce capital expenditures and operational expenses
• Reducing risk
• Ensure the right levels of security and resiliency across all business data and
processes
• Higher quality services
• Improve quality of services and deliver new services that help the business
grow and reduce costs
• Breakthrough agility
• Increase ability to quickly deliver new services to capitalize on opportunities
while containing costs and managing risk

Cloud computing is one choice of models to address these challenges.

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Cloud computing delivers IT & business
benefits

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Cloud computing definition

• National Institute of Standards and Technology (NIST) definition:

“Cloud computing is a model for enabling ubiquitous, convenient, on-demand
network access to a shared pool of configurable computing resources (for
example, networks, servers, storage, applications, and services) that can be
rapidly provisioned and released with minimal management effort or service
provider interaction.”

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Cloud computing defined
• Cloud computing is the on-demand delivery of compute power, database,
storage, applications, and other IT resources via the internet with pay-as-you-
go pricing.

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Cloud computing defined
• Cloud provider owns and maintains the network-connected hardware
• You provision and use what you need

Cloud is a delivery and consumption model

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Infrastructure as software
Cloud computing enables you to stop thinking of your infrastructure as
hardware, and instead think of (and use) it as software.

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Traditional computing model

• Infrastructure as hardware
• Hardware solutions:
• Require space, staff, physical security,
planning, capital expenditure
• Have a long hardware procurement
cycle
• Require you to provision capacity by
guessing theoretical maximum peaks

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Cloud computing model

• Infrastructure as software
• Software solutions:
• Are flexible
• Can change more quickly, easily, and
cost-effectively than hardware
solutions
• Eliminate the undifferentiated heavy-
lifting tasks

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Section 2: Advantages of Cloud Computing
Chapter 1: Cloud Concepts Overview
Trade capital expense for variable expense

Capital

Data center investment Pay only for the amount

based on forecast you consume

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Massive economies of scale

Because of aggregate usage from all customers, Cloud can achieve

higher economies of scale and pass savings on to customers.

Cloud

Economies of scale Savings

© 2022, Amazon Web Services, Inc. or its affiliates. All rights reserved. 15
Stop guessing capacity

Overestimated Underestimated Scaling on

server capacity server capacity demand

© 2022, Amazon Web Services, Inc. or its affiliates. All rights reserved. 16
Increase speed and agility

Launch

Weeks between wanting resources Minutes between wanting

and having resources resources and having resources

© 2022, Amazon Web Services, Inc. or its affiliates. All rights reserved. 17
Stop spending money on
running and maintaining data centers

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Running data centers Business and customers

© 2022, Amazon Web Services, Inc. or its affiliates. All rights reserved. 18
Go global in minutes

© 2022, Amazon Web Services, Inc. or its affiliates. All rights reserved. 19
Section 3: Cloud Vendors
Chapter 1: Cloud Computing Concepts
Worldwide market share of leading cloud
vendors

Reference: [1]
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Cloud vendors service comparison

Reference: [2][3]

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Section 4: Cloud Computing Related
Chapter 1: Cloud Computing Concepts
Grid Computing
• Grid computing is a type of parallel and distributed system that enables the
sharing, selection, and aggregation of geographically distributed
"autonomous" resources dynamically at run-time depending on their
availability, capability, performance, cost, and users' quality-of-service
requirements.
• Grid computing is "a form of distributed computing and parallel computing,
whereby a 'super and virtual computer' is composed of a cluster of
networked, loosely-coupled computers acting in concert to perform very
large tasks." So the goal of grid computing is to divide a single and large task
among many loosely-coupled computers.
• Grid computing might run in a cloud computing environment. The main
difference is that, whereas grid computing is comprised of many computers
working together to achieve one goal, cloud computing is aimed to provide
computing resources for independent tasks.

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Utility Computing
• "Utility computing is the packaging of computing resources, such as
computation and storage, as a metered service similar to a traditional public
utility (such as electricity, water, natural gas, or telephone network). This
system has the advantage of a low or no initial cost to acquire hardware;
instead, computational resources are essentially rented. Customers with very
large computations or a sudden peak in demand can also avoid the delays that
would result from physically acquiring and assembling a large number of
computers."

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Utility Computing (cont.)
• "Utility computing relates to the business model in which application
infrastructure resources – hardware and/or software – are delivered.
• While cloud computing relates to the way we design, build, deploy and run
applications that operate in a visualized environment, sharing resources and boasting
the ability to dynamically grow, shrink, and self-heal."

• Utility Billing
• Subscription – magazines, newspapers
• Resource-based
• Utility – electricity, water

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Energy Savings in Cloud Computing
• Physical systems require energy even when they are not fully utilized.
Furthermore, this energy is turned into heat, which must be removed from the
Data Center. Additionally, energy may be more expensive in some places
than others.
• Maximizing CPU usage by allowing rapid consolidation of VMs to shut
down surplus systems results in savings on cooling. Multiple virtual assets
can share the same physical resources to better utilize energy. As
requirements diminish, even on an hourly basis, virtual assets can be
consolidated allowing physical assets to be shut down. Then when
requirements increase, physical assets can be brought online to meet demand.
• Cloud computing also allows for the ability to move visualized assets to run
on physical assets in a location where energy is cheaper (such as closer to a
generation station) or where cooling is easier. Virtual assets can be quickly
migrated to take advantage of changes in energy pricing/availability.

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Takeaway

• Cloud computing is the on-demand delivery of IT resources via the

internet with pay-as-you-go pricing.
• Cloud computing enables you to think of (and use) your infrastructure
as software.
• Almost anything you can implement with traditional IT can also be
implemented as an AWS cloud computing service.
• There are six benefits discussed of cloud computing.
• Businesses often seek to find the best cloud solution to fit their unique
organizational needs. A large part of this decision is selecting a cloud
service provider and major cloud service providers includes Amazon
Web Services (AWS), Microsoft Azure and Google Cloud Services.
• Cloud computing is based on several other computing areas such as
Grid Computing and Utility Computing.
External References

• [1]
https://www.statista.com/chart/18819/worldwide-market-share-of-lea
ding-cloud-infrastructure-service-providers/
• [2] https://blogs.vmware.com/cloudhealth/aws-vs-azure-vs-google/
• [3] https://www.comptia.org/content/articles/cloud-types-solutions-
and-vendors

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