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Introduction to Cloud Computing

Agenda
Fundamental Cloud Terminology & Concept Specific characteristics that define a cloud

Cloud Service Models


Cloud Deployment models Benefits, Challenges and Risks of Cloud computing Key Growth drivers Key Inhibitors Business Value & ROI Emerging cloud computing trends & Innovations

Cloud Computing

Cloud Computing - Definition

A model for enabling convenient, on-demand network access to a shared pool


of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. NIST *

Years of works and 15 Drafts National Institute of Standards and Technology

Cloud Computing - Definition

The cloud is on-demand , dynamically provisioned and shared IT resources accessible on the Internet

NIST Model

Cloud Computing

NIST Model Essential Characteristics

NIST has identified five essential characteristics of cloud computing:

On-demand service,
Broad network access, Resource pooling, Rapid elasticity, and Measured service

NIST Model Essential Characteristics


On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each services provider.

NIST Model Essential Characteristics


Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).

NIST Model Essential Characteristics

Resource pooling. The providers computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand.

NIST Model Essential Characteristics


Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.

NIST Model Essential Characteristics


Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability1 at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.

Cloud Computing

NIST Model Deployment Models

Hybrid

Private

Community

Public

NIST Deployment Models


Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise.

NIST Deployment Models


Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations).It may be managed by the organizations or a third party and may exist on premise or off premise.

NIST Deployment Models


Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.

NIST Deployment Models


Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).

Cloud Computing

NIST Service Models

NIST Service Models


Software as a Service (SaaS). The capability provided to the consumer is to use the providers applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email).The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings.

NIST Service Models


Platform as a Service (PaaS). The capability provided to the consumer is the ability to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations.

NIST Service Models


Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).

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Benefits
Cost

Storage

Flexibility

Green

Mobility

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Limitations
Security

Risk
Market Maturity

Data Location

Vendor Lockin Poor or Nonexistent SLAs

Privacy

Internet Dependency

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Key Growth Drivers

Cost, agility and scalability are currently driving the Enterprise Cloud adoption

Key Growth Drivers in ~5 years

Innovation, competitive and mobility will become critical adoption drivers in 5 yrs

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Key Inhibitors

security currently tops the list of Enterprise Cloud adoption inhibitors

Key Inhibitors

Complexity and interoperability will become critical inhibitors

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Supply-side savings. Large-scale data centers (DCs) lower costs per server. Demand-side aggregation. Aggregating demand for computing smoothens overall variability, allowing server utilization rates to increase. Multi-tenancy efficiency. When changing to a multitenant application model, increasing the number of tenants (i.e., customers or users) lowers the application management and server cost per tenant.

Cloud Computing
Supply-side savings.

As required computing power measured in MIPS (million instructions per second) increased, cost declined rapidly

Cloud Computing - Supply-Side Economies of Scale


Cost of Power Power Usage Effectiveness (PUE)6 tends to be significantly lower in large facilities than in smaller ones In addition, research has shown that operators of multiple data centers are able to take advantage of geographical variability in electricity rates, which can further reduce energy cost.

Cloud Computing - Supply-Side Economies of Scale


Infrastructure labor Costs Cloud computing significantly lowers labor costs at any scale by automating many repetitive management tasks, larger facilities are able to lower them further than smaller ones. While a single system administrator can service approximately 140 servers in a traditional enterprise,8 in a cloud data center the same administrator can service thousands of servers.

Cloud Computing - Supply-Side Economies of Scale


Security and Reliability Often cited as a potential hurdle to public cloud adoption, increased need for security and reliability leads to economies of scale due to the largely fixed level of investment required to achieve operational security and reliability. Large commercial cloud providers are often better able to bring deep expertise to bear on this problem than a typical corporate IT department, thus actually making cloud systems more secure and reliable

Cloud Computing - Supply-Side Economies of Scale


Buying Power

Operators of large data centers can get discounts on hardware purchases of up to 30 percent over smaller buyers

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Demand-side savings.

The overall cost of IT is determined not just by the cost of capacity, but also by the degree to which the capacity is efficiently utilized. Workloads are highly variable over time, often demanding large amounts of resources one minute and virtually none the next. This opens up opportunities for utilization improvement via demand-side aggregation and diversification.

Cloud Computing - Demand-Side Economies of Scale

We distinguish five sources of variability and assess how they might be reduced: Randomness Time-of-day patterns Industry specific variability Multi-resource variability Uncertain growth patterns

Cloud Computing - Demand-Side Economies of Scale

Randomness. End-user access patterns contain a certain degree of randomness. For example, people check their email at different times. To meet service level agreements, capacity buffers have to be built in to account for a certain probability that many people will undertake particular tasks at the same time. If servers are pooled, this variability can be reduced.

Cloud Computing - Demand-Side Economies of Scale

Time-of-day patterns. There are daily recurring cycles in peoples behavior: consumer services tend to peak in the evening, while workplace services tend to peak during the workday. Capacity has to be built to account for these daily peaks but will go unused during other parts of the day causing low utilization. This variability can be countered by running the same workload for multiple time zones on the same servers or by running workloads with complementary time-of-day patterns (for example, consumer services and enterprise services) on the same servers.

Cloud Computing - Demand-Side Economies of Scale

Industry-specific variability. Some variability is driven by industry dynamics. Retail firms see a spike during the holiday shopping season while U.S. tax firms will see a peak before April 15. There are multiple kinds of industry variability some recurring and predictable (such as the tax season or the Olympic Games), and others unpredictable (such as major news stories). The common result is that capacity has to be built for the expected peak (plus a margin of error). Most of this capacity will sit idle the rest of the time. Strong diversification benefits exist for industry variability.

Cloud Computing - Demand-Side Economies of Scale


Multi-resource variability. Compute, storage, and input/output (I/O) resources are generally bought in bundles: a server contains a certain amount of computing power (CPU), storage, and I/O (e.g., networking or disk access). Some workloads like search use a lot of CPU but relatively little storage or I/O, while other workloads like email tend to use a lot of storage but little CPU. While its possible to adjust capacity by buying servers optimized for CPU or storage, this addresses the issue only to a limited degree because it will reduce flexibility and may not be economic from a capacity perspective. This variability will lead to resources going unutilized unless workload diversification is employed by running workloads with complementary resource profiles.

Cloud Computing - Demand-Side Economies of Scale


Uncertain growth patterns. The difficulty of predicting future need for computing resources and the long lead-time for bringing capacity online is another source of low utilization. For startups, this is sometimes referred to as the TechCrunch effect. Enterprises and small businesses all need to secure approval for IT investments well in advance of actually knowing their demand for infrastructure. Even large private companies face this challenge, with firms planning their purchases six to twelve months in advance. By diversifying among workloads across multiple customers, cloud providers can reduce this variability, as higherthan-anticipated demand for some workloads is canceled out by lower-than-anticipated demand for others.

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The combination of supply-side economies of scale in server capacity (amortizing costs across more servers), demand-side aggregation of workloads (reducing variability), and the multi-tenant application model (amortizing costs across multiple customers) leads to powerful economies of scale.

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Cloud services will enable IT groups to focus more on innovation while leaving non-differentiating activities to reliable and cost-effective providers. Cloud services will enable IT leaders to offer new solutions that were previously seen as either cost prohibitive or too difficult to implement. This is especially true of cloud platforms (Platform as a Service), which significantly reduce the time and complexity of building new apps that take advantage of all the benefits of the cloud.

Cloud Computing

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