Kroenke Umis10e Inppt 06

Using MIS
10th Edition
Chapter 6
The Cloud
Copyright © 2018 Pearson Education Ltd. 6-1

“How About $10 Per Terabyte?”
• Lease storage capacity from third party.

• All incoming data from drones automatically
uploaded.
• Average monthly storage costs cut at least 50%.
• Power savings, backup time saved, no new
hardware configuration.
• One-time set up and development costs.

Study Questions
Q6-1 Why are organizations moving to the cloud?
Q6-2 How do organizations use the cloud?
Q6-3 What network technology supports the cloud?
Q6-4 How does the Internet work?
Q6-5 How do web servers support the cloud?
Q6-6 How can Falcon Security use the cloud?
Q6-7 How can organizations use cloud services
securely?
Q6-8 2027?

Benefits of the Cloud
• The Cloud
– Elastic leasing of pooled computer resources over
the Internet
– Elastic
 Automatically adjusts for unpredictable demand
 Limits financial risks
– Pooled
 Same physical hardware
 Economies of scale

Where did the Cloud come from?
• The Mainframe Era (1960s–1980s)

– Large-scale high-speed centralized computers.
– Thin clients, no Internet, and no Cloud.
• The Client-Server Era (1990s–2000s)
– Allowed clients (users) to send requests across the
Internet to servers.
– Internet, but no modern cloud computing yet.

The Mainframe Era (1960s–1980s)
Figure 6-1 The Mainframe Era (1960s–1980s)

The Client-Server Era (1990s–2000s)
Figure 6-2 The Client-Server Era (1990s–2000s)

Where did the Cloud come from? (cont’d)
• The Cloud Computing Era (2008–Current)

– Applications, data, and processing power can be
used remotely.
– Accessed with a variety of devices including PCs,
thin clients, mobile devices, and IoT devices.

The Cloud Computing Era (2008–Current)
Figure 6-3 The Cloud Computing Era (2008–Current)

Why Do Organizations Prefer the Cloud?
• Lower costs – cheap processors, essentially free

data communication and storage.
• Ubiquitous access
• Improved scalability
• Elasticity
• Virtualization technology
• Internet-based standards enable flexible,
standardized processing capabilities.

Growth of Amazon Web Services
Figure 6-4 AWS Revenue Growth

When Does the Cloud Not Make Sense?
• When law or standard industry practice require

physical control or possession of the data.
– Financial institutions legally required to maintain
physical control over its data.

Why Is the Cloud Preferred to In-House
Hosting?
Cloud In-house
Positive:
Small capital requirements Control of data location
In-depth visibility of security and disaster
Speedy development preparedness
Superior scalability to growing or fluctuating demand

Known cost structure
Possibly best-of-breed security/disaster
preparedness
No obsolescence
Industry-wide economies of scale, hence cheaper
Focus on core business, not infrastructure
Figure 6-5 Comparison of Cloud and In-House Alternatives

Why Is the Cloud Preferred to In-House
Hosting? (cont'd)
Cloud In-house
Negative:
Dependency on vendor Significant capital required
Loss of control over data location Significant development effort
Little visibility into true security and disaster Difficult (impossible?) to accommodate
preparedness capabilities fluctuating demand
Ongoing support costs
Staff and train personnel
Increased management requirements
Annual maintenance costs
Cost uncertainties
Obsolescence
Figure 6-5 Comparison of Cloud and In-House Alternatives

Using the Cloud
• Resource Elasticity
– A car manufacturer runs an ad during the Academy
Awards.
– Doesn’t know if there will be a thousand, a million,
10 million, or even more site visits.
– Cloud vendor will programmatically increase server
capacity.
– The car manufacturer reduces costs substantially.

Example of a Video Banner Ad Customer
Figure 6-6 Example Video Banner Ad Customer

Pooling Resources
• Economies of scale
– Average cost decreases as size of operation
increases.
– Major cloud vendors operate enormous data
centers (Web farms).

Apple Data Center in Maiden, NC
• Billion-dollar facility
contains more than
500,000 sq. ft.
Figure 6-7 Apple Data Center in Maiden, NC

Source: Google Earth

Transportation as a Service (metaphor)
Figure 6-8 Transportation as a Service

Types of Cloud Service Offerings
Cloud Service Users Examples
Salesforce.com
Employees
SaaS iCloud
Customers
Office 365
Application Google App Engine

PaaS developers Microsoft Azure
Application testers AWS Elastic Beanstalk
Network architects
Amazon EC2 (Elastic Compute Cloud)
IaaS Systems
Amazon S3 (Simple Storage Service)
administrators
Figure 6-9 Three Fundamental Cloud Types

Comparison of Cloud Service Offerings
Figure 6-10 Cloud Service Offerings

Content Delivery Networks from Cloud
Vendors
• Content delivery network (CDN)

– Stores user data in many different geographical
locations and makes data available on demand.
– Specialized type of PaaS, but usually considered in
its own category.
– Minimizes latency.
– Used to store and deliver content seldom changed.

Traditional Server Content Distribution
Figure 6-11 Traditional Server Content Distribution

Distributed CDN Servers
Figure 6-12 Distributed CDN Servers

CDN Benefits
Figure 6-13 Benefits of Content Delivery Networks

Using Web Services Internally
Figure 6-14 Web Services Principles Applied to Inventory Applications

Types of Networks
Type Characteristic
Personal area network (PAN) Devices connected around a single person
Local area network (LAN) Computers connected at a single physical site

Computers connected between two or more
Wide area network (WAN)
separated sites
The Internet and internets Networks of networks
Figure 6-15 Basic Network Types

Cloudy Profit?
Ethics Guide
• Data broker (or data aggregator).

• Acquiring and analyzing market, buyer, and seller
data for real estate agents.
• Alliance transitioned data storage and processing
from own Web farm to the cloud.
• Improved speed and quality of data services at
fraction of prior costs, cut in-house hardware
support staff by 65%.
• Plowing money back into R&D.

Typical Small Office/Home Office (SOHO)
LAN
Figure 6-16 Typical Small Office/Home Office (SOHO) LAN

Abbreviations Used for Communications
and Computer Memory Speeds
• Communications equipment,
• K(ilo) = 1,000, not 1,024 (as for memory);
• M(ega) = 1,000,000, not 1,024 × 1,024;
• G(iga) = 1,000,000,000, not 1,024 × 1,024 ×
1,024.
 100 Mbps =100,000,000 bits per second.
• Communications speeds expressed in bits,
memory sizes in bytes.

LAN Protocol
• IEEE 802.3 • Bluetooth

 Wired LAN – Transmits data short
 10/100/1000 Mbps distances.
 Ethernet – Connect computer,
• IEEE 802.11 keyboard, mouse,
printer, smartphones,
– Wireless LAN
smartwatches,
– 802.11ac automobiles, sports
– Speeds up to 1.3 Gbps equipment, clothing.

Connecting Your LAN to the Internet
Important ISP functions:

1. Provide legitimate Internet address.
2. Provide gateway to Internet.
3. Pay access fees and other charges to
telecoms.
• WAN wireless average performance 1 Mbps, with
peaks of up to 3.0 Mbps.
• Typical wireless LAN 50 Mbps.

Summary of LAN Networks
Transmission Transmission Equipment Protocol

Type Topology Remarks
Line Speed Used Commonly Used
Switch
Common: Switches connect devices,
Local area UTP or optical NIC IEEE 802.3
10/100/1000 Mbps multiple switches on all but
network fiber UTP or (Ethernet)
Possible: 1 Gbps small LANs.
Local area optical
network Local area
UTP or optical Wireless IEEE 802.11n, Access point transforms
network
for nonwireless Up to 600 Mbps access point (802.11ac not yet wired LAN (802.3) to
with
connections Wireless NIC common) wireless LAN (802.11).
wireless
Personal: Upstream
DSL to 1 Mbps, DSL modem Can have computer and
modem to DSL telephone downstream to 40 DSL-capable DSL phone use simultaneously.
ISP Mbps (max 10 likely telephone line Always connected.
in most areas)
Connections
to the Cable Upstream to 1 Cable modem Capacity is shared with
Internet Cable TV lines Mbps other sites; performance
modem to to optical cable Downstream 300 Cable TV
Cable
varies depending on others’
ISP Kbps to 10 Mbps cable use.
Sophisticated protocols
Wireless
WAN 500 Kbps to 1.7 Wireless One of several enables several devices to
connection to
wireless Mbps WAN modem wireless standards use the same wireless
WAN
frequency.
Figure 6-17 Summary of LAN Networks

Postal System vs. the Internet
Steps to Send Package Postal System Internet Equivalent
1. Assemble package Package Packet
Person’s name (e.g., BigBank Inc. Domain name (e.g.,

2. Put name on package
or Jane Smith) www.BigBank.com)
3. Look up address Phone book DNS
Mailing address (e.g., 123 Park

4. Put address on package IP address (e.g., 10.84.8.154)
Ave, New York, NY, 10172)
5. Put registered mail sticker

Registered Mail TCP
on package
Airlines (e.g., Delta Air Lines, Inc.)

Carriers (e.g., Sprint Corp.)
6. Ship package Airports (e.g., Seattle-Tacoma
Routers
International Airport)
Figure 6-18 Comparison of the Postal System and the Internet

Public IP Addresses
• IPv4
– E.g. 137.190.8.10
– Dotted decimal notation
– Only about 4 billion addresses (not enough)
• IPv6
– E.g. 0:0:0:0:0:ffff:89be:80a
– Hexadecimal notation
– 340 undecillion addresses

Domain Name System (DNS)
• Domain name
 Unique name affiliated with a public IP address.
 Dynamic affiliation of domain names with IP
addresses.
 Multiple domain names for same IP address.
• URL (Uniform Resource Locator)
 Internet address protocol, such as http:// or ftp://.

Private vs. Public IP Addresses
• Public IP addresses
 Identifies a unique device on Internet.
 Assigned by ICANN (Internet Corporation for Assigned
Names and Numbers).
• Private IP addresses
 Identifies a device on a private network, usually a
LAN.
 Assignment LAN controlled.

IP Addressing: Major Benefits
• Public IP addresses conserved

– One public IP address per LAN.
• Using private IP addresses
– Eliminates registering public IP address with
ICANN-approved agencies.
– Protects against direct attack.

Domain Registry Company
Figure 6-19 GoDaddy Screenshot

Source: © 2015 GoDaddy Operating Company, LLC. All rights reserved.

Packets & Carriers
• Messages, broken into packets.

• TCP guarantees delivery of packets.
• Packets move across Internet, passing through
networks owned by telecom carriers.
• Peering agreements - Carriers freely exchange
traffic amongst themselves without paying access
fees.

Net Neutrality
• Net neutrality principle

– All data treated equally.
– Carriers should not be allowed to:
 Decide which sites load quickly
 Decide which apps are allowed on a network
 Decide which content is acceptable
• Problem: some people use more bandwidth than others.
– Netflix, for example, accounts for more than 30 percent
of all Internet traffic in North America between 9 PM and
12 AM

The Cloud Resides in the Internet
Figure 6-20 Using the Internet to Request a Web Page

Processing on a Web Server
• What happens when

you visit a Web site
and order something,
and pay for it?
Figure 6-21 Sample of Commerce Server Pages; Product Offer Pages

Source: Courtesy of Zulily Inc. Used by permission.

Three-Tier Architecture
Figure 6-22 Three-Tier Architecture

Watch the Three Tiers in Action! Sample of
Commerce Server Page
1. Commerce server requests shoe data

from DBMS.
2. DBMS reads from database, returns data
to commerce server.
3. Commerce server formats Web page with
data and sends html version of page to
user’s computer.
4. Customer places items in shopping cart.
5. Customer checks out, commerce server
program processes payment, schedules
inventory processing, arranges shipping,
Figure 6-23 Product Page email receipt to customer.
Source: Courtesy of Zulily Inc. Used by
permission

SOA Analogy: Approval Request
Interactions Among Three Departments
• CheckCustomerCredit
• ApproveCustomerCredit
• VerifyInventoryAmount
• AllocateInventory
• ReleaseAllocatedInventory
Figure 6-24 Approval Request Interactions Among Three Departments

Using SOA Principles, Each Department
Defines:
• CheckCustomerCredit
– ApproveCustomerCredit
• Inventory Department
– VerifyInventoryAmount
– AllocateInventory
– ReleaseAllocatedInventory
• Each department formally states data to receive with
request and data promised to return in response.
• Every interaction done exactly same way.

Using SOA Principles: Encapsulation
• No department needs to know who works in

another department, or how dept. accomplishes
work.
• Each department free to change personnel task
assignments, change processes for performing
services.
• Falcon Security could dynamically create 1,000
Inventory Departments and Sales Department with
no need to change anything it does.

SOA Principles Applied to Three-Tier
Architecture
• Services
– ObtainPartData
– ObtainPartImages
– ObtainPartQuantity
OnHand
– OrderPart
• JavaScript written to
invoke these
services correctly.
Figure 6-25 SOA Principles Applied to Three-Tier Architecture

Protocols Supporting Web Services
Figure 6-26 Protocols That Support Web Services

WSDL, SOAP, XML, and JSON
Standard for describing services, inputs, outputs, other data

WSDL (Web Services supported by a Web service. Documents coded machine
Description Language) readable and used by developer tools for creating programs
to access the service.
SOAP Protocol for requesting Web services and for sending
(no longer an acronym) responses to Web service requests.
XML Used for transmitting documents. Contains metadata to

(eXtensible Markup validate format and completeness of a document, includes
Language) considerable overhead.
Markup language used for transmitting documents. Contains
JSON little metadata. Preferred for transmitting volumes of data
(JavaScript Object between servers and browsers. While notation in format of
Notation) JavaScript objects, JSON documents can be processed by
any language.

Example XML and JSON Documents
Figure 6-27a Example XML Document

Figure 6-27b Example JSON Document

Falcon Security in the Cloud
• SaaS products Falcon Security could use.

– Google Mail
– Google Drive
– Office 365
– Salesforce.com
– Microsoft CRM OnLine
– many others . . .

PaaS Services from Amazon DBMS
Products with Elastic Cloud 2 (EC2)
• Falcon Security could use CDN to distribute

content worldwide and respond to leads generated
from advertising.
Amazon Relational A relational database service supporting MySQL,

Database Service (RDS) Oracle, SQL Server, or PostgreSQL
Amazon DynamoDB A fast and scalable NoSQL database service

Amazon ElastiCache A very fast in-memory cache database service
Amazon Redshift A petabyte-scale data warehouse

IaaS Services at Falcon Security
• Provides basic hardware in the cloud.

• May acquire servers to load operating systems.
• Considerable technical expertise and
management.
• Alternative: Use elastic data storage services.
• SaaS and PaaS provide more added value to
Falcon Security.

Organizations Using Cloud Services
Securely
Q6-7 How can organizations use cloud services securely?
Figure 6-28 Remote Access Using VPN; Actual Connections

Remote Access Using VPN: Apparent
Connection
Figure 6-29 Remote Access Using VPN; Apparent Connection

Private Cloud for Inventory and Other
Applications
Figure 6-30 Private Cloud for Inventory and Other Applications

Accessing Private Cloud over a Virtual
Private Network
Figure 6-31 Accessing Private Cloud over a Virtual Private Network

Using A Virtual Private Cloud
• Subset of a
Public Cloud
With Highly
Restricted,
Secure
Access
Figure 6-32 Using a Virtual Private Cloud (VPC)

The Cloud in 2027
Q6-8 2027?
• Cloud services faster, more secure, easier to use,

cheaper.
• Fewer organizations own their computing
infrastructure.
• More pooling of servers across organizations.
• Overall size of the cloud gets bigger.
• Individuals, small businesses, large organizations
obtain elastic resources at very low cost.
• Cloud fosters new categories of work.
The Cloud in 2027 (cont’d)
Q6-8 2027?
• Remote action systems

– Telediagnosis
– Telesurgery
– Telelaw enforcement
– Provide services in dangerous locations.
– Watch top-notch performers and performances.
• New cloud services
– Analytics as a Service (AaaS)
– Business Process as a Service (BPaaS)

Quantum Learning
So What?
• Machine learning is the ability of computers to

learn dynamically rather than being explicitly
coded.
– Based on the iterative generation of models.
– Adapts models and interprets them differently over
time.
– Allows the computer to identify patterns and other
insights independently.
– Quantum computing could advance machine
learning due to increased processing power.

From Anthem to Anathema
Security Guide
• Greater accessibility  data more accessible to

hackers.
80 million customers affected.
 Stole names, addresses, Social Security numbers,
and salaries.
 Stored in plain text.
 Lawsuits filed.
• Premera Blue Cross
 Bank-account and medical data of 11 million
customers.

Senior Network Manager
Career Guide
Rebecca Cengiz-Robbs at Carbonite

Q. What attracted you to this field?
A. “I was attracted to IT by the wide variety of disciplines and the
abundant opportunities, especially for women. After working as a
network administrator and being able to get exposure to storage,
backups, computing, security, and networking, I realized I liked
networking the best.”
Q. What advice would you give to someone who is
considering working in your field?
A. “In addition to technical skills and a good work ethic, I’d develop
emotional intelligence and build a personal network. Often in IT, it’s
who you know and how you get along with people that will help
you stand out and advance.”

Active Review
Q6-7 How can organizations use cloud services
securely?
Q6-8 2027?

FinQloud Forever … Well, At Least For The
Required Interval …
Case Study 6
• Securities and Exchange Commission (1937).

• Securities brokers' records must be stored on
media that cannot be altered.
• Interpreted to enable storage of records on read-
write medium, provided it includes software to
prohibit data alteration (2003).

Components of the FinQloud System
Case Study 6
Figure 6-33 Components of the FinQloud System

FinQloud Forever … (cont’d)
Case Study 6
• Creates “finger print” based on content of record.

• SEC specifically excludes extrinsic controls:
– Authentication, passwords, and manual procedures,
– Believes such systems could be readily misused to
overwrite records.
• When properly configured, meets requirements of
SEC’s Rule 17a-3) and similar rules of
Commodities Futures Trading Commission.

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Using MIS

Copyright © 2018 Pearson Education Ltd. 6-1

• Lease storage capacity from third party.

Copyright © 2018 Pearson Education Ltd. 6-2

Copyright © 2018 Pearson Education Ltd. 6-3

Copyright © 2018 Pearson Education Ltd. 6-4

• The Mainframe Era (1960s–1980s)

Copyright © 2018 Pearson Education Ltd. 6-5

Figure 6-1 The Mainframe Era (1960s–1980s)

Copyright © 2018 Pearson Education Ltd. 6-6

Figure 6-2 The Client-Server Era (1990s–2000s)

Copyright © 2018 Pearson Education Ltd. 6-7

• The Cloud Computing Era (2008–Current)

Copyright © 2018 Pearson Education Ltd. 6-8

Figure 6-3 The Cloud Computing Era (2008–Current)

Copyright © 2018 Pearson Education Ltd. 6-9

• Lower costs – cheap processors, essentially free

Copyright © 2018 Pearson Education Ltd. 6-10

Figure 6-4 AWS Revenue Growth

Copyright © 2018 Pearson Education Ltd. 6-11

• When law or standard industry practice require

Copyright © 2018 Pearson Education Ltd. 6-12

Superior scalability to growing or fluctuating demand

Figure 6-5 Comparison of Cloud and In-House Alternatives

Copyright © 2018 Pearson Education Ltd. 6-13

Figure 6-5 Comparison of Cloud and In-House Alternatives

Copyright © 2018 Pearson Education Ltd. 6-14

Copyright © 2018 Pearson Education Ltd. 6-15

Figure 6-6 Example Video Banner Ad Customer

Copyright © 2018 Pearson Education Ltd. 6-16

Copyright © 2018 Pearson Education Ltd. 6-17

Figure 6-7 Apple Data Center in Maiden, NC

Copyright © 2018 Pearson Education Ltd. 6-18

Figure 6-8 Transportation as a Service

Copyright © 2018 Pearson Education Ltd. 6-19

Cloud Service Users Examples

Application Google App Engine

Figure 6-9 Three Fundamental Cloud Types

Copyright © 2018 Pearson Education Ltd. 6-20

Figure 6-10 Cloud Service Offerings

Copyright © 2018 Pearson Education Ltd. 6-21

• Content delivery network (CDN)

Copyright © 2018 Pearson Education Ltd. 6-22

Figure 6-11 Traditional Server Content Distribution

Copyright © 2018 Pearson Education Ltd. 6-23

Figure 6-12 Distributed CDN Servers

Copyright © 2018 Pearson Education Ltd. 6-24

Figure 6-13 Benefits of Content Delivery Networks

Copyright © 2018 Pearson Education Ltd. 6-25

Figure 6-14 Web Services Principles Applied to Inventory Applications

Copyright © 2018 Pearson Education Ltd. 6-26

Personal area network (PAN) Devices connected around a single person

Local area network (LAN) Computers connected at a single physical site

Figure 6-15 Basic Network Types

Copyright © 2018 Pearson Education Ltd. 6-27

• Data broker (or data aggregator).

Copyright © 2018 Pearson Education Ltd. 6-28

Figure 6-16 Typical Small Office/Home Office (SOHO) LAN

Copyright © 2018 Pearson Education Ltd. 6-29

Copyright © 2018 Pearson Education Ltd. 6-30

• IEEE 802.3 • Bluetooth

Copyright © 2018 Pearson Education Ltd. 6-31

Important ISP functions:

Copyright © 2018 Pearson Education Ltd. 6-32