Complete (Cloud Computing)

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Dissertation ReportOn

CLOUD COMPUTINGS EFFECT ON ENTERPRISES

in terms of Cost and Security

Faculty Guide:

Ms. Kokil Jain Submitted By:

Akhilesh Agarwal

A1802010373Section C/MBA(IB)


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AMITY INTERNATIONAL BUSINESS SCHOOL, AMITY UNIVERSITY

Masters in Business Administration - International Business

CLOUD COMPUTINGS EFFECT ON ENTERPRISES

in terms of Cost and Security

Dissertation Report submitted March, 2012

Size: 64 Pages

Supervisor: Ms. Kokil Jain.

Examiners: Mr. Ajeet Sharma, Ms. Madhu Khurana.

Abstract

Innovations are necessary to ride the inevitable tide of change. Most of enterprises arestriving to reduce their computing cost through the means of virtualization. This demand of

reducing the computing cost has led to the innovation of Cloud Computing. Cloud

Computing offers better computing through improved utilization and reduced administration

and infrastructure costs. Cloud Computing is the sum of Software as a Service (SaaS) and

Utility Computing.

Cloud Computing is still at its infant stage and a very new technology for the enterprises.

Therefore, most of the enterprises are not very confident to adopt it. This research paper

tackles this issue for enterprises in terms of cost and security. In this paper I discuss the

benefits and drawbacks an enterprise can have while they adopt Cloud Computing in terms of

Cost and Security.

In the end, concluding that Cloud Computing is better for medium and small sized enterprises

as compared to large enterprises in terms of both cost and data security.

Key words:

Cloud Computing, SaaS, IaaS, PaaS, Elasticity, Cost, Security.


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TABLE OF CONTENTS

1. INTRODUCTION ..5

.

2. RESEARCH METHODOLOGY...6

2.1. Objectives of the study6

2.2. Sample design& Sample size.62.3. Limitations......................................................................................................6

2.4. Scope of the study...............................................................................................................7

3.CLOUD COMPUTING THE CONCEPT..........................................................83.1 Comparison........................................................................................................................... 10

3.2 Implementation.................................................................................................................... 103.3 Characteristics...................................................................................................................... 10

4. HISTORY......................................................................................................................................13

5. POLITICAL ISSUES..................................................................................................................14

6. LEGAL ISSUES..14

7. ARCHITECTURE..15

8. COMPONENTS..16

9. STANDARDS ...19

10. CLOUD COMPUTING SERVICE MODELS20

11. TYPES.22

12. ROLES IN CLOUD COMPUTING.24

13. COST FACTOR.25

13.1. Key characteristics26

14. SECURITY FACTOR ...27

14.1. Key characteristics28

15. COMPANIES.29

16. CLOUD COMPUTING PROS/CONS W.R.T. TO COST & SECURITY30


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17. LIMITATIONS OF CLOUD COMPUTING32

18. BENEFITS38

19. RISK MITIGATION40

20. DISCUSSIONS ..41

21. CASE STUDY...43

22. QUESTIONNAIRE RESULT.46

23. CONCLUSION.62

24. REFERENCES.64


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1. Introduction

Imagine yourself in the world where the users of the computer of todays internet world dont

have to run, install or store their application or data on their own computers, imagine theworld where every piece of your information or data would reside on the Cloud (Internet).

As a metaphor for the Internet, "the cloud" is a familiar clich, but when combined

with "computing", the meaning gets bigger and fuzzier. Some analysts and vendors define

cloud computing narrowly as an updated version of utility computing: basically virtual

servers available over the Internet. Others go very broad, arguing anything you consume

outside the firewall is "in the cloud", including conventional outsourcing.

Cloud computing comes into focus only when you think about what we always need: a

way to increase capacity or add capabilities on the fly without investing in new infrastructure,

training new personnel, or licensing new software. Cloud computing encompasses anysubscription-based or pay-per-use service that, in real time over the Internet, extends ICT's

existing capabilities.

Cloud computing is at an early stage, with a motley crew of providers large and small

delivering a slew of cloud-based services, from full-blown applications to storage services to

spam filtering. Yes, utility-style infrastructure providers are part of the mix, but so are SaaS

(software as a service) providers such as Salesforce.com. Today, for the most part, IT must

plug into cloud-based services individually, but cloud computing aggregators and integrators

are already emerging.


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2. RESEARCH METHODOLOGY

There are two main data sources for the research study- secondary and primary. To collect the

data for this research study, both primary and secondary sources were used. One of the

cardinal rules in data collection is to exhaust all secondary data sources before conducting aprimary study. The operational features of secondary data are that it already exists and is

easily available. Secondary data can be quite versatile and is used for many purposes. To

collect secondary data, at first, the researcher reviewed articles related to research objectives

that appeared in the literature. Key journals and proceedings were systematically scanned for

any articles related to the research topic. In addition to that, search for the key words in peer

reviewed journals were undertaken. This search led to articles in other related journals. To

conduct an empirical investigation, a survey was conducted, using a questionnaire. At first,

the items to be included in the questionnaire were decided. Next, the survey was conducted to

collect the data and then analysed and interpreted to find the answers to the research

objectives. The survey for data collection was carried out in the month of Dec - Mar of 2012.

The questionnaire was developed based on literature, deriving issues pertinent to the researchobjectives. The questionnaire was pre-tested in a pilot study to fine the questionnaire. The

pilot study was conducted among a convenience sample of four people consisting of

colleagues and industry guide, to evaluate how well the questionnaire was framed and

understood. Based on the pilot study and feedback from the participants, some items were

reworded to improve clarity.

OBJECTIVES OF THE STUDY:

1. To study the effect of cloud computing technology on an Enterprise.

2. To study the factors which encourage or discourage an enterprise from opting

cloud computing technology, i.e. Cost & Security.

SAMPLE DESIGN & SAMPLE SIZE:

As the survey is about the understanding the Effect of Cloud Computing on

Enterprises, the research was specifically designed for technical people who work in

IT departments. The sample size was small because of the sensitivity of the topic &security reasons. Therefore only few respondents share their views, suggestions,

information and their experience.


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LIMITATIONS:

Sample size was small because it was quiet difficult to reach highly professionalstechnocrats for the survey on this sensitive topic of Cloud Computing.

Various statistical techniques as learned have been implemented and conclusions as

best possible have been drawn making few assumptions as and when required.

SCOPE OF THE STUDY:

This study refined the factors that will influence an enterprise using cloud computing

technology in India and revealed the impact of Cost & Security on an enterprise business. A

few paramount implications of the study are outlined here.

Findings of this study indicate that the study is quite informative and useful for both

general public and companies indulge in cloud technology. They can understand the

dimensions reflecting benefits and risk of cloud computing and impact of all these

factors on an enterprise.

Findings of this study also indicate that it is worthwhile for an enterprise to take note

of the results of this study before going for actual implementation of cloud computing

technology.


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3. Cloud computing- The Concept

Cloud computing is Internet ("cloud") based development and use of

computer technology ("computing"). It is a style of computing in which dynamically scalable

and often virtualized resources are provided as a service over the Internet. Users need not

have knowledge of, expertise in, or control over the technology infrastructure "in the cloud"

that supports them.

Cloud computing is 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.- U.S. National Institute of Standards and Technology (NIST)

Cloud computing means using number of computer servers through a network, which appears

as they are one single coherent computer. Cloud computing in recent times is one of the

fastest emerging technology trend. The goal behind opting for Cloud computing is to save

huge costs on building IT infrastructure. This papers elaborates the evolution of Cloud

computing and how the cloud computing has been adopted by various enterprises. Cloud

computing has been adopted in almost all the enterprise in todays world. This paper also

explores on the technical description of the Cloud computing and its effect on Enterprise in

terms of Cost & Security.

Cloud computing can also be referred to as the practice of using a network of remote servers

hosted on the Internet to store, manage, and process data, rather than a local server or

personal computer.

Cloud computing can benefit an organization by saving costs on IT infrastructure,

Scalability, Automatic updates, Remote access, Reliability, Skilled vendors etc. 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. The services are termed as Software as a Service (SaaS). The datacenter

hardware and software is referred to as Cloud.

As per a Forrester Report (Dec 2008) more than 70% of IT budget is spent on maintenance of

current IT infrastructure instead of adding new one. In order to better utilize the IT budget

companies are opting for cloud computing.


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Cloud computing differs from the client-server model by providing services from a

server that are executed and managed by a client's web browser, with no installed

client version of an application required. Centralization gives cloud service providers

full control on the versions of the browser-based applications provided to clients, whichremoves the continuous need for version upgrades or manages individual licenses of client

computing devices.

The concept incorporates infrastructure as a service (IaaS), platform as a service (PaaS) and

software as a service (SaaS) as well as Web 2.0 and other recent technology trends which

have the common theme of reliance on the Internet for satisfying the computing needs of the

users. Examples of SaaS vendors include Salesforce.com and Google Apps which provide

common business applications online that are accessed from a web browser, while the

software and data are stored on the servers.


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3.1 Comparison:

Cloud computing is often confused with grid computing ("a form of distributed 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"), utility computing (the

"packaging of computing resources, such as computation and storage, as a metered service

similar to a traditional public utility such as electricity") and autonomic computing

("computer systems capable of self-management").

Indeed many cloud computing deployments as of 2009 depend on grids, have autonomic

characteristics and bill like utilitiesbut cloud computing can be seen as a natural next step

from the grid-utility model. Some successful cloud architectures have little or no centralized

infrastructure or billing systems whatsoever, including peer-to-peer networks like Bit Torrent

and Skype and volunteer computing like

3.2 Implementation:

The majority of cloud computing infrastructure as of 2009 consists of reliable services

delivered through data centers and built on servers with different levels of virtualization

technologies. The services are accessible anywhere that has access to networking

infrastructure. The Cloudappears as a single point of access for all the computing needs of

consumers. Commercial offerings need to meet the quality of service requirements of

customers and typically offer service level agreements. Open standards are critical to the

growth of cloud computing and open source software has provided the foundation for manycloud computing implementations.

3.3 Characteristics:

On-Demand:

A basic condition that a cloud computing provider must fulfill is the ability to deliver

computing resources whenever the customer needs them. From the customers point of

view the available computing resources are nearly infinite (i.e., the customer is not

limited the set of servers located at one site and it is the responsibility of the cloud

computing provider to have sufficient resources to satisfy the requirements of all their

customers).


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Utilizing computing resources on-demand is one of the most desired capabilities for a

large number of enterprises because it eliminates the need for planning ahead, purchasing,

and installing the resources they will require at some point in the future. This enables the

customer to avoid making an unnecessary upfront investment in servers. Furthermore,

when comparing cloud computing with the traditional model of owning the servers, cloudcomputing will helps avoid the costs of having underused resources. Effectively the

cloud computing vendor is doing what firms such as EDS did when it started to run

service bureaus - by combining the needs of multiple firms the service bureau is able to

take advantages of the effects of resource pooling.

Consequences of this feature of on-demand computing resources are a lowering of the

entry barriers to some business models, as software vendors can develop applications

without worrying beforehand of provisioning for a specific number of customers and then

bearing with the risk of greater success than planned, leading to the service not being

available or, worse, having very few users and a large capital expense caused bypurchasing resources that are very underutilized.

Pay-per-use:

Another new aspect of cloud computing is application of an usage based billing model.

The customer pays only for short term use of processors or storage, for example this

usage could be metered in increments of hours or days; converting what would have been

capital expenses (CAPEX) into operational expenses (OPEX).

We can see that the concept of cloud computing is strongly related to the idea of

utility computing. In both cases the computing resources are being provided on-demand,

much as electricity, water, or gas are supplied by a utility company; but in the case of

computing resources the waste product is largely heat and after some time scrap

computing equipment - hence the customer is essentially renting these computing

resources. However, unlike a traditional rental agreement where the resources would be

physically located at the customers premises, in the case of cloud computing the

resources are simply somewhere in the cloud - rather than in a single physical location.

Further note that unlike the case for water and gas, which when they are not used areavailable for later use - not using processor cycles of a computer does in fact waste these

cycles - since they will not be available for usage later. Therefore it is advantageous for a

cloud computing provider to accept business to utilize all (or nearly all) of these cycles.


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Rapid Elasticity:

Based upon the specific of a service level agreement, the cloud provider scales up or down

the resources that are provided to meet the customers changing needs. This service level

agreement must define the response time for the cloud provider to adapt to the customersneeds. Such an agreement is needed by the cloud provider, because the cloud provider

does not in fact have infinite resources, so depending upon the service level agreement the

cloud provider has to find a set of allocations of resources that satisfy the current demands

of the aggregate of their users while meeting the various service level agreements of these

costumers - otherwise the service level agreement may specify a penalty that the cloud

provider has to pay to each customer for not meeting the relevant service level agreement.

Maintenance and Upgrading:Because the cloud provider rather than the customer maintains the computing resource,

there is an effective outsourcing of maintenance tasks. Thus the cloud provider maintains

and updates the resources, whether the resource is hardware or software. Therefore all

repairs and replacement of the underlying hardware resources are transparent to the cus-

tomer, as they do not affect the customers experience. While this might be true in the ideal

case, there may be short intervals when a customers image is migrated from one hardware

platform to another in order to perform maintenance or repair of a given physical platform,

during this period of time the customer might not have any of the resources associated with

this image available.


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4. History

The Cloud is a term with a long history in telephony, which has in the past decade, been

adopted as a metaphor for internet based services, with a common depiction in network

diagrams as a cloud outline.

The underlying concept dates back to 1960 when John McCarthy opined that "computation

may someday be organized as a public utility"; indeed it shares characteristics with service

bureaus which date back to the 1960s. The term cloudhad already come into commercial use

in the early 1990s to refer to large ATM networks. By the turn of the 21st century, the term

"cloud computing" had started to appear, although most of the focus at this time was on

Software as a service (SaaS).

In 1999, Salesforce.com was established by Marc Benioff, Parker Harris, and his fellows.

They applied many technologies of consumer web sites like Google and Yahoo! to business

applications. They also provided the concept of "On demand" and "SaaS" with their realbusiness and successful customers. The key for SaaS is being customizable by customer

alone or with a small amount of help. Flexibility and speed for application development have

been drastically welcomed and accepted by business users.

IBM extended these concepts in 2001, as detailed in the Autonomic Computing Manifesto --

which described advanced automation techniques such as self-monitoring, self-healing, self-

configuring, and self-optimizing in the management of complex IT systems with

heterogeneous storage, servers, applications, networks, security mechanisms, and other

system elements that can be virtualized across an enterprise.

Amazon.com played a key role in the development of cloud computing by modernizing theirdata centers after the dot-com bubble and, having found that the new cloud architecture

resulted in significant internal efficiency improvements, providing access to their systems by

way of Amazon Web Services in 2005 on a utility computing basis.

2007 saw increased activity, with Google, IBM, and a number of universities embarking on a

large scale cloud computing research project, around the time the term started gaining

popularity in the mainstream press. It was a hot topic by mid-2008 and numerous cloud

computing events had been scheduled.

In August 2008, Gartner Research observed that "organizations are switching from company-

owned hardware and software assets to per-use service-based models" and that the "projectedshift to cloud computing will result in dramatic growth in IT products in some areas and in

significant reductions in other areas."


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5. Political Issues

The Cloudspans many borders and "may be the ultimate form of globalization." As such it

becomes subject to complex geopolitical issues: providers must satisfy myriad regulatory

environments in order to deliver service to a global market. This dates back to the early days

of the Internet, where libertarian thinkers felt that "cyberspace was a distinct place calling for

laws and legal institutions of its own"; author Neal Stephenson envisaged this as a tiny island

data haven called Kinakuta in his classic science-fiction novel Cryptonomicon.

Despite efforts (such as US-EU Safe Harbor) to harmonize the legal environment, as of 2009

providers such as Amazon Web Services cater to the major markets (typically the United

States and the European Union) by deploying local infrastructure and allowing customers to

select "availability zones." Nonetheless, there are still concerns about security and privacy

from individual through governmental level, e.g., the USA PATRIOT Act and use of national

security letters and the Electronic Communication Privacy Act's Stored Communications Act.

6. Legal Issues

In March 2007, Dell applied to trademark the term "cloud computing" (U.S. Trademark

77,139,082) in the United States. The "Notice of Allowance" it received in July 2008 was

canceled on August 6, resulting in a formal rejection of the trademark application less than a

week later.

On 30 September 2008, USPTO issued a "Notice of Allowance" to CGactive LLC (U.S.Trademark 77,355,287) for "CloudOS". A cloud operating system is a generic operating

system that "manage[s] the relationship between software inside the computer and on the

Web", such as Microsoft Azure. Good OS LLC also announced their "Cloud" operating

system on 1 December 2008.

Richard Stallman, founder of the Free Software Foundation, believes that cloud computing

endangers liberties because users sacrifice their privacy and personal data to a third party. In

November 2007, the Free Software Foundation released the Affero General Public License, a

version of GPLv3 designed to close a perceived legal loophole associated with free software

designed to be run over a network, particularly software as a service. An application service

provider is required to release any changes they make to Affero GPL open source code


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7. Architecture

Cloud architecture, the systems architecture of the software systems involved in the delivery

ofcloud computing, comprises hardware and software designed by a cloud architectwho

typically works for a cloud integrator. It typically involves multiple cloud components

communicating with each other over application programming interfaces, usually web

services.

This closely resembles the UNIX philosophy of having multiple programs doing one thing

well and working together over universal interfaces. Complexity is controlled and the

resulting systems are more manageable than their monolithic counterparts.

Cloud architecture extends to the client, where web browsers and/or software applications

access cloud applications.

Cloud storage architecture is loosely coupled, where metadata operations are centralized

enabling the data nodes to scale into the hundreds, each independently delivering data to

applications or user.


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8. Components

Cloud Computing Components

Applications Facebook Google Apps SalesForce Microsoft Online

Client Browser(Chrome) Firefox Cloud Mobile (Android iPhone) Netbook(EeePC MSI Wind) Nettop (CherryPal Zonbu)

Infrastructure BitTorrent EC2 GoGrid Sun Grid 3tera

Platforms App Engine Azure Mosso SalesForce

Services Alexa FPS MTurk SQS

Storage S3 SimpleDB SQL Services

Standards Ajax Atom HTML 5 REST


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8.1 Client

A cloud client consists of computer hardware and/or computer software that relies on

cloud computing for application delivery, or that is specifically designed for delivery of cloud

services and that, in either case, is essentially useless without it. Examples include some

computers, phones and other devices, operating systems and browsers

8.2 Application

Cloud application services or "Software as a Service (SaaS)" deliver software as a

service over the Internet, eliminating the need to install and run the application on the

customer's own computers and simplifying maintenance and support.

People tend to use the terms SaaS and cloud interchangeably, when in fact they

are two different things.

8.3 Platform

Cloud platform services or "Platform as a Service (PaaS)" deliver a computing

platform and/or solution stack as a service, often consuming cloud infrastructure and

sustaining cloud applications.

It facilitates deployment of applications without the cost and complexity of buying

and managing the underlying hardware and software layers.

8.4 Infrastructure

Cloud infrastructure services, also known as "Infrastructure as a Service (IaaS)",

delivers computer infrastructure - typically a platform virtualization environment - as aservice.

Rather than purchasing servers, software, data-center space or network equipment,

clients instead buy those resources as a fully outsourced service.

Suppliers typically bill such services on a utility computing basis and amount of

resources consumed (and therefore the cost) will typically reflect the level of activity. IaaS

evolved from virtual private server offerings.

8.5 Service

Acloud service includes "products, services and solutions that are delivered and consumed inreal-time over the Internet". For example, Web Services ("software system[s] designed to

support interoperable machine-to-machine interaction over a network") which may be

accessed by other cloud computing components, software, e.g., Software plus service, or end

users directly.


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Specific examples include:

Identity (OAuth, OpenID)

Integration (Amazon Simple Queue Service)

Payments (Amazon Flexible Payments Service, Google Checkout, PayPal)

Mapping (Google Maps, Yahoo! Maps) Search (Alexa, Google Custom Search, Yahoo! BOSS)

Others (Amazon Mechanical Turk)

8.6 Storage

Cloud storage involves the delivery of data storage as a service, including database-like

services, often billed on a utility computing basis, e.g., per gigabyte per month. For example:

Database (Amazon SimpleDB, Google App Engine's BigTable datastore)

Network attached storage (MobileMe iDisk, Nirvanix CloudNAS)

Synchronization (Live MeshLive Desktop component, MobileMe push functions)

Web service (Amazon Simple Storage Service, Nirvanix SDN)


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9. Standards

Cloud standards, a number of existing, typically lightweight, open standards, have facilitated

the growth of cloud computing, including:

Application:o Communications (HTTP, XMPP)o Security (OAuth, OpenID, SSL/TLS)o Syndication (Atom)

Client:o Browsers (AJAX)o Offline (HTML 5)

Implementations:o Virtualization (OVF)

Platform:o Solution stacks (LAMP)

Service:o Data (XML, JSON)o Web Services (REST)

Storage:

o Database(Amazon Simple DB, Google App Engine BigTable Datastore)

o Network attached storage (MobileMe iDisk, Nirvanix CloudNAS)

o Synchronization (Live Mesh Live Desktop component, MobileMe push

functions)

o Web service (Amazon Simple Storage Service, Nirvanix SDN)


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10. Cloud Computing service models

Cloud computing can be classified by the model of service it offers into one of three different

groups. These will be described using the XaaS taxonomy, first used by Scott Maxwell in

2006, where X is Software, Platform, or Infrastructure, and the final "S" is for Service.

It is important to note, as shown in Figure 2.1, that SaaS is built on PaaS, and the latter on

IaaS. Hence, this is not an excluding approach to classification, but rather it concerns the

level of the service provided. Each of these service models is described in a following

subsection.

Figure: Cloud computing service models

10.1 IaaS (Infrastructure as a Service):

The capability provided to the customer of IaaS is raw storage space, computing, or network

resources with which the customer can run and execute an operating system,

applications, or any software that they choose. The cloud customer is not able to control the

distribution of the software to a specific hardware platform or change parameters of the

underlying infrastructure, but the customer can manage the software deployed (generally

from the boot level upward).

E.g. Amazon Web Services.


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10.2 PaaS (Platform as a Service):

In the case of PaaS, the cloud provider not only provides the hardware, but they also provide

a toolkit and a number of supported programming languages to build higher level services

(i.e. software applications that are made available as part of a specific platform). The usersof PaaS are typically software developers who host their applications on the platform and

provide these applications to the end-users.

E.g. Facebook platform, Google App-engine.

10.3 SaaS (Software as a Service):

The SaaS customer is an end-user of complete applications running on a cloud infrastruc-ture and offered on a platform on-demand. The applications are typically accessible through

a thin client interface, such as a web browser. The customer does not control either the

underlying infrastructure or platform, other than application parameters for specific user

settings.

E.g. Google Apps, Web-based email, Facebook applications.


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11. Types

11.1 Community Cloud:

A community cloud may be established where several organizations have similar

requirements and seek to share infrastructure so as to realize some of the benefits of cloudcomputing. The cost can be shared by the organisations taking part. This option may offer a

higher level of privacy, security, and/or policy compliance. In addition, it can be economic

and attractive as the resources (storage, workstations) used and shared in the community have

reached their return of investment. Examples of community clouds include Google's Gov

Cloud.

11.2 Private cloud:

Douglas Parkhill first described the concept of a "private computer utility" in his 1966 book

The Challenge of the Computer Utility.

Private cloud sometimes also termed as internal cloud are implementations that some vendors

use these days to describe Cloud computing on private networks. A private cloud is a system

or collection of many systems that provide hosted access to all the systems and applications

that are internal to an organization.


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11.3 Public cloud:

Public cloud or external cloud describes cloud computing in the traditional way, where

resources are dynamically provided on a fine-grained, self-service basis over the

Internet. It is as termed as pay as you go manner and service is sold as Utility

computing.

11.4 Combined Cloud:

Two clouds joined together are more correctly called a "combined cloud". A combined Cloud

Computing Environment consists of multiple internal and/or external providers, that are

generally used by Enterprises.

11.5 Hybrid cloud:

The main responsibility of the IT department in a non-IT company is to deliver servicesto the business. With the growing use of cloud computing (both private and public)

and the fact that IT departments must also provide services by traditional, in-house

methods, this gave rise to the term called hybrid cloud computing. Hybrid cloud is

also called hybrid delivery by the major vendors including HP, IBM, Oracle, VMware

and Fujitsu who offer technology to manage the complexity in managing the

performance, security and privacy concerns that are results of mixed delivery

methods. Hybrid delivery is expected to become the norm in data centers.


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12. Roles

12.1 Provider

A cloud computing provideror cloud computing service providerowns and operates livecloud computing systems to deliver service to third parties. The barrier to entry is also

significantly higher with capital expenditure required and billing and management creates

some overhead. Nonetheless, significant operational efficiency and agility advantages can be

realized, even by small organizations, and server consolidation and virtualization rollouts are

already well underway. Amazon.com was the first such provider, modernizing its data centers

which, like most computer networks, were using as little as 10% of its capacity at any one

time just to leave room for occasional spikes. This allowed small, fast-moving groups to add

new features faster and easier, and they went on to open it up to outsiders as Amazon Web

Services in 2002 on a utility computing basis.

12.2 User

A user is a consumer ofcloud computing. The privacy of users in cloud computing has

become of increasing concern. The rights of users are also an issue, which is being addressed

via a community effort to create a bill of rights.

12.3 Vendor

A vendor sells products and services that facilitate the delivery, adoption and use ofcloud

computing.For example:

Computer hardware (Dell, HP, IBM, Sun Microsystems)o Storage (Sun Microsystems, EMC, IBM)o Infrastructure (Cisco Systems)

Computer software (3tera, Hadoop, IBM, RightScale)o Operating systems (Solaris, AIX, Linux including Red Hat)o Platform virtualization (Citrix, Microsoft, VMware, Sun xVM, IBM)


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13. Cost/Economics

Cloud computing users can avoid capital expenditure (CapEx) on hardware, software and

services, rather paying a provider only for what they use. Consumption is billed on a utility

(e.g. resources consumed, like electricity) or subscription (e.g. time based, like a newspaper)

basis with little or no upfront cost. Other benefits of this time sharing style approach are low

barriers to entry, shared infrastructure and costs, low management overhead and immediate

access to a broad range of applications. Users can generally terminate the contract at any time

(thereby avoiding return on investment risk and uncertainty) and the services are often

covered by service level agreements with financial penalties.

According to Nicholas Carr the strategic importance of information technology is

diminishing as it becomes standardized and cheaper. He argues that the cloud computing

paradigm shift is similar to the displacement of electricity generators by electricity grids early

in the 20th century.


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13.1. Key Characteristics: Cost is greatly reduced and capital expenditure is converted to operational

expenditure. This lowers barriers to entry, as infrastructure is typically provided by a

third-party and does not need to be purchased for one-time or infrequent intensivecomputing tasks. Pricing on a utility computing basis is fine-grained with usage-based

options and minimal or no IT skills are required for implementation.

Device and location independence enable users to access systems using

a web browser regardless of their location or what device they are using, e.g., PC,

mobile. As infrastructure is off-site (typically provided by a third-party) and accessed

via the Internet the users can connect from anywhere.

Multi-tenancyenables sharing of resources and costs among a large pool of

users, allowing for:

o Centralization of infrastructure in areas with lower costs (such as real estate,

electricity, etc.)

o Peak-load capacity increases (users need not engineer for highest possible

load-levels)

o Utilization and efficiency improvements for systems that are often only 10-

20% utilized.

Scalability via dynamic ("on-demand") provisioning of resources on a fine-grained, self-service basis near real-time, without users having to engineer for peak

loads. Performance is monitored and consistent and loosely-coupled architectures are

constructed using web services as the system interface.


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14. Security

The relative security of cloud computing services is a contentious issue which may be

delaying its adoption. Issues barring the adoption of cloud computing are due in large part to

the private and public sectors unease surrounding the external management of security based

services. It is the very nature of cloud computing based services, private or public, that

promote external management of provided services. This delivers great incentive amongst

cloud computing service providers in producing a priority in building and maintaining strong

management of secure services.

Organizations have been formed in order to provide standards for a better future in

cloud computing services. One organization in particular, the Cloud Security Alliance is a

non-profit organization formed to promote the use of best practices for providing security

assurance within cloud computing.

GOOGLE

The leader in cloud computing.

Google offers several services including e-mail and document creating applications.

Google claims its services are 99.99% reliable.

Though users have experienced downtime.

Bugs and glitches always occur with new technology.

AMAZON

o Amazon offers companies data storage services.

o Companies only have to pay for the storage they use.

o More and more companies are starting to trust cloud computing services and turn

begin to store their data in the clouds.

o It appeals to companies because it eliminates time employees spend on maintaining

this data and eliminates maintenance.

MICROSOFT

The cloud computing industry is predicted to hurt the software business.

Therefore Microsoft is taking a stand and developing cloud computing services of

their own, Azure.


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cannot afford. Providers typically log accesses, but accessing the audit logs

themselves can be difficult or impossible.

Sustainabilitycomes about through improved resource utilization, more efficientsystems, and carbon neutrality. Nonetheless, computers and associated infrastructure

are major consumers of energy.

14.2 Companies:

Providers including Amazon, Microsoft, Google, Sun and Yahoo exemplify the use of cloud

computing. It is being adopted by individual users through large enterprises including

General Electric, L'Oral, and Procter & Gamble.


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15. Cloud Computing Pros and Cons

w.r.t.Cost & Security

15.1 Pros:

Lower computer costs.

Improved performance.

Reduced software costs.

Instant software updates.

Unlimited storage capacity.

Increased data reliability.

Universal document access.

Latest version availability.

Improved document format compatibility.


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15.2 Cons:

Can be slow

Features might be limited

Stored data might not be secure

Stored data can be lost

Requires a constant Internet connection

Does not work well with low-speed connections

HPC Systems

General Concerns


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16. Limitations of Cloud Computing

Cloud computing is widely recognized as a revolutionary IT concept and with differentofferings can fit the needs of very diverse customers, ranging from large enterprises, small

start-ups, to end-users. Some cloud based applications, such as Gmail, have had great suc-

cess; but as the diversity of the offerings grows so does the reluctance to trust some services

or to trust more sensitive data to off-site computers. This is easily observed at the enterprise

level when decision makers in the information technology departments of companies and

organizations keep rejecting a move to the cloud. At present most organizations are only

willing to outsource applications that involve less sensitive information. According to a

survey of more than 500 chief executives and IT managers of 17 countries they still trust

existing internal systems over cloud-based systems due to the fear about security threats

and loss of control of data and systems. The ones that do agree to move to the cloud

still demand third party risk assessments or at least ask the cloud providers questions such

as:

Who will have access to the data and applications and how will that be monitored?

What security measures are used for data transmission and storage?

How are applications and data from different customers are kept separate?

Where, in terms of geographical location, will be the data stored? Could the choice of the

location affect me?

Can these measures and details be stipulated in a service level agreement?

All these customer worries can be translated into what can be identified as the main

obstacles to the adoption and growth of cloud computing. Each of these obstacles are

examined in the following subsections.

16.1 Availability of service:Outages of a service become a major worry when customers have deposited all their

information in the cloud and might need it at anytime. Given that the customer management

interfaces of public clouds are accessible via Internet, there is an increased risk of failure

when compared to traditional services since there are more weak points in the chain of

elements needed to access the information or application.


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For instance, web browser vulnerabilities could lead to service delivery failures. A feasible

means to obtain a high degree of availability would be using multiple cloud computing

providers.

Cloud providers are well aware of these risks and today provide more information

about the current state of the system, as this is something that customers are demanding.

Salesforce for instance shows the real-time average response time for a server transaction at

Trust.salesforce.com. Amazon has implemented a service dashboard that displays basic

availability and status history.

16.2 Data lock-in:

As some people, such as GNU creator Richard Stallman have advised, the use of proprietary

cloud-based applications could end up in situations where migration off the cloud to another

cloud or to an in-house IT environment would be nearly impossible. The reason for the

current poor portability and limited interoperability between clouds is the lack of

standardized APIs. As a consequence migration of applications between clouds is a hard task.

An evolution towards standardized APIs would not only overcome this risk by allowing SaaS

to develop software services interoperable in all clouds, but would provide a firm basis to

progress towards hybrid computing models.

Google is the only cloud provider truly advancing to achieve a more standard environment

and they even have an initiative, called Data Liberation Front [36], to support users movingdata and applications in and out of their platform.

16.3 Data segregation:

A direct consequence of the multi-tenant usage mode, where different customers virtual

machines are co-located in the same server or data is on the same hard disks, is the question

of isolation. How should the cloud securely isolate users? This class of risks includes issues

concerning the failure of mechanisms to separate storage or memory between different users(i.e., such a failure would enable information to leak from one customers VM to another

customers VM). There are a number of documented vulnerabilities in different commercial

hypervisors that have been exploited to gain access to one or more customers virtual

machines. Another type of attack whose feasibility has been reported is a side-channel attack.


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A case study carried out by MIT and University of California at San Diego on the Amazon

EC2 service considered this style of attack an actual threat, and they demonstrated this attack

by successfully overcoming the following:

Determining where in the cloud infrastructure a specific virtual machine instance is

located.

Determining if two instances are co-resident in the same physical machine.

Proving that it is possible for an adversary to launch on purpose instances that will be

co-resident with another users instances.

Proving that it is possible to take advantage of cross-virtual machine information

leakage once co-resident.

They were able to successfully perform all the previous steps given that patterns can be found

in the mapping of virtual machine instances into physical resources (for example, byexamining internal and external IP addresses of a large number of different types of

instances). In their tests they could launch co-resident instances with a 40% probability of

success. They state that the only certain way to avoid this threat is to require exclusive

physical resources, something that ultimately customers with high privacy requirements will

begin to ask for.

16.4 Privilege abuse:

The threat of a malicious insider with a privileged role (e.g. a system administrator) isinherent to any outsourced computation model. Abuse by insiders could impact and damage

the customers brand, reputation, or directly damage the customer. Note that these same type

of attacks can be carried out by internal employees in a traditional (i.e., non-cloud)

computing infrastructure.

Cloud customers should conduct a comprehensive assessment of any potential cloud

provider, specifying human resource requirements (i.e. stating who will have access to their

data and what level of access they will have) and requiring transparency measures. Additional

trust systems that would not require the customer to blindly trust the provider would be

useful.


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16.5 Scaling resources:

The ability of scaling up or down resources to meet workload is one of the most desired cloud

computing advantages. However, this great advantage can lead to service failures if it is not

well implemented or if a maximum response time is not agreed upon beforehand. A webapplication developer who hosts its service on a cloud may see how the response time

steadily increases when the usage of the application also increases - because the cloud does

not scale up resources quickly enough.

On the other hand, scaling must be limited by some threshold. This threshold would stop the

continuous increase in the allocation of resources to prevent the cloud provider from

suffering a denial of service attack because the customers application was malfunctioning. In

either case the customer could be billed for service that they did not want.

Existing service level agreements determine quality of service requirements, but not in terms

of response time in response to workload variations. There are proposed solutions in service

level agreements (SLA) for scalability implemented through statistical machine learning.

16.6 Data security and confidentiality:

The distributed nature of the cloud model necessarily involves more transits of data over

networks, thus creating new challenging security risks. The confidentiality of the data must

be assured whether it is at rest (i.e. data stored in the cloud) or in transit (i.e. to and from the

cloud). It would be desirable to provide a closed box execution environment where the

integrity and confidentiality of the data could be verified by its owner. While encryption is

an answer to securely storing data in the cloud, it does not fit that well with cloud-based

processing. This later problem occurs because generally the cloud both stores data and

applications running on the cloud operate on this data. In most cases the data has to be

unencrypted at some time when it is inside the cloud. Some operations would be simply

impossible to do with encrypted data and, furthermore, doing computations with the

encrypted data would consume more computing resources (and more money, in

consequence).

There are recent steps towards dealing with this issue. One is the Trusted Cloud

Computing Platform , which aims to apply the Trusted Computing model (developed in 2003

by Intel, AMD, HP, and IBM) to the cloud. However the scope of this initiative is to protect

against malicious insiders, inside the cloud provider organization.

Another project of the Microsoft Cryptography Group is a searchable encryption mech-

anism introduced by Kamara and Lauter in. The underlying process in this system is basedon a local application, installed on the users machine, composed of three modules: a data

processor, a data verifier, and a token generator. The user encrypts the data before uploading


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it to the cloud. When some data is required, the user uses the token generator to generate a

token and a decryption key. The token is sent to the cloud, the selected encrypted file(s) are

downloaded, and then these files are verified locally and decrypted using the key. Sharing is

enabled by sending the token and decryption key to another user that you want to collaborate

with. The enterprise version of the solution consists of adding a credential generator to

simplify the collaboration process.

Other relevant projects are also being conducted. One example is a recently published PhD

dissertation from Stanford University done by Craig Gentry in collaboration with IBM. This

research proposes A fully homomorphic encryption scheme. Using their proposed

encryption method data can be searched, sorted, and processed without decrypting it. The

innovation here is the refreshing mechanism necessary to maintain low levels of noise.

Although successful, both initiatives have turned out to be still too slow and result it very low

efficiency. As a result, they are not commercially utilized yet.

16.7 Data location:

In addition to the topology of the cloud network, the geographic location of the data also

matters in some cases. Knowing datas location is fundamental to securing it, as there might

be important differences between regulatory policies in different countries. A customer could

be involved in illegal practices without even noticing, as some governments prosecute

companies that allow certain types of data to cross geographical boundaries. Cloud

computing customers must tackle this issue by understanding the regulatory requirements for

every country they will be operating in. Not only the datas location, but the path the data

follows may also matter. According to Forresters Cloud Privacy Heat map a possibleconclusion is that it can be hard for an application operator to deploy applications at a

minimum distance from the users (i.e., there may be locations where the data must travel to

that require following a non-optimal path because the ideal path crosses countries with

restrictive laws).

Currently there are cloud providers that leave the choice of the datacenter location to the user.

For instance, Amazon offers two locations in the US and one in Europe. Very likely, other

providers will add to Amazons region choice offer as the location of data is an increasing

important requirement of potential customers.

16.8 Deletion of data:

Closely related with the isolation issues that the multi-tenant architecture can entail is the fact

that the user can erase data upon request. A user of a public cloud may require his data to be

deleted, i.e., completely removed from the cloud. As this can only be entirely done by

erasing, repeatedly re-writing the disk sectors with random data, and possibly formatting the

servers hard disk, this could turn out to be impossible to do at the service providers

environment. As noted earlier in the discussion of a side-channel attack, a malicious user

could later take advantage of remaining data. Even with multiple cycles of re-writing the

sectors which previously held the file it may be possible to access the "erased" data, but the


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probability can be reduced - however, this is at a quite high cost in time and disk I/O and may

not be completely successful.

In the latest report about cloud computing by the European Network and Information

Security Agency (ENISA) it has been suggested that if encryption were applied to data at

rest, the level of this risk would be considerably lower.

16.9 Recovery and back-up:

Cloud providers should have an established plan of data back-up in the event of disaster

situations. This may be accomplished by data replication across different locations and the

plan must be addressed in the service level agreement.

16.10 The Offline cloud:

Being completely dependent upon an Internet connection might turn out to be impossible or

highly risky for some users who need an application (or data) to be available at all times. This

creates a bigger problem if the user is moving and the quality of the connection can change,

hence in some situations relying on a Internet service provider is simply not an option.

The so-called pure Cloud computing model causes this impediment. This model is based

on the fact that the most used software application nowadays is the web browser and that

today complete applications can be delivered as a service through the Internet and all of theend-users interaction can occur through a web browser. An obvious conclusion is to build a

web based OS. In this approach the web browser acts as the interface to the rest of the system

and hardware, such as hard disks or powerful processors, would not be needed locally

anymore.


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17. Benefits

Figure: Comparisons of various Infrastructure solutions Source: www.iitweb.bloomu.edu

17.1 High availability:

Any web application should be available to legitimate visitors from across the globe.

An efficient Cloud creates and spans multiple access points at various geographic

locations around the globe. The Cloud provider must effectively receive and route

incoming requests to the appropriate virtualized application on the cloud on behalf of its

customers.

Google and Microsoft replicate each application instance to multiple physical locations.

AT&T Synaptic Hosting spans multiple locations for its enterprise customers.

17.2 Service on demand:

Cloud enables service on demand. We have use resources for as small as couple of

hours and pay for them accordingly. This the key advantage of the Cloud.


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Example: Lets consider the case of a University website. The web site doesnot expect much

traffic normally. But during the display of the exam results, the traffic may

increase exponentially. But the increase of traffic happens only once or twice a year during

the results so it is not wise for the management to buy huge infrastructure. In such a situation

Cloud could really help where the university can hire infrastructure for a weeks time and justpay a small cost.

17.3 Security:

Security could improve due to centralization of data, increased security-focused resources,

etc. As the Cloud is maintained by the Cloud provider enterprises need to be involved in

security. The Cloud provider has the professionals who would further secure the Cloud.

SME's may not be able to hire highly paid security profesionals, so its better for them to hire

resources on Cloud.

17.4 Maintenance:

Maintenance cloud computing applications is not difficult, since they need not to be

installed on user's computer. Due to this it is easy to support and to update because

the changes can be done to clients instantly. Cloud infrastructure services or

"Infrastructure as a Service (IaaS)" provides computer infrastructure as a virtual

platform, as a service. Rather than purchasing servers, software, data center space or

network equipment, clients instead buy those resources as a fully outsourced service.

17.5 Reduced Costs:

Users of cloud need not to pay any upfront amount. They have to pay incrementally for the

services they use, saving huge costs.

17.6 Flexibility and Automation:

Cloud computing offers more flexibility that traditional methods. Cloud is able to to change

rapidly in response to the different need to different users.


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18. Risk Mitigation

Corporations or end-users wishing to avoid not being able to access their dataor even

losing itshould research vendors' policies on data security before using vendor services.

One technology analyst and consulting firm, Gartner, lists seven security issues which one

should discuss with a cloud-computing vendor:

1. Privileged user accessinquire about who has specialized access to data and aboutthe hiring and management of such administrators.

2. Regulatory compliancemakes sure a vendor is willing to undergo external auditsand/or security certifications.

3. Data locationsask if a provider allows for any control over the location of data.4. Data segregationmake sure that encryption is available at all stages and that these

"encryption schemes were designed and tested by experienced professionals".5. Recoveryfind out what will happen to data in the case of a disaster; do they offercomplete restoration and, if so, how long that would take.

6. Investigative Supportinquire whether a vendor has the ability to investigate anyinappropriate or illegal activity.

7. Long-term viabilityask what will happen to data if the company goes out ofbusiness; how will data be returned and in what format.

In practice, one can best determine data-recovery capabilities by experiment: asking to get

back old data, seeing how long it takes, and verifying that the checksums match the originaldata. Determining data security is harder. A tactic not covered by Gartner is to encrypt the

data yourself. If you encrypt the data using a trusted algorithm, then regardless of the service

provider's security and encryption policies, the data will only be accessible with the

decryption keys. This leads to a follow-on problem: managing private keys in a pay-on-

demand computing infrastructure.


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19. Discussions

Thoughts against Cloud Computing:

Although Cloud computing is considered as a useful emerging utility, but it is not appreciated

and encouraged by some of the scholars in the industry. Thoughts of some of those people are

listed below.

According to Larry Ellison, The interesting thing about Cloud Computing is that we have

redefined Cloud Computing to include everything that we already do. . . . I dont

understand what we would do differently in the light of Cloud Computing other than change

the wording of some of our ads.

As per Andy Isherwood, A lot of people are jumping on the [cloud] bandwagon, but I have

not heard two people say the same thing about it. There are multiple definitions out there of

the cloud.

Richard Stallman, known for his advocacy of free software , thinks Cloud Computing is a

trap for users. If applications and data are managed in the cloud, users might become

dependent on proprietary systems whose costs and service terms may changed unilaterally

and adversely.

Richard Stallman used really harsh words for Cloud. He states that, Its stupidity. Its worse

than stupidity: its a marketing hype campaign. Somebody is saying this is inevitable and

whenever you hear somebody saying that, its very likely to be a set of businesses

campaigning to make it true.

People favoring Cloud Computing:

Thought by some of the pioneers of the industry are against the concept of Cloud computing

but there are large number of people who still thinks that Cloud computing is one one of the

most useful emerging technology and provides a solution not only to SME's and new starters

but also to big players.

Brad Jefferson in the favor of Cloud Computing States that, Cloud computing is really a no -

brainer for any start-up because it allows you to test your business plan very quickly for little

money. Every start-up, or even a division within a company that has an idea for something

new, should be figuring out how to use cloud computing in its plan.


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Mark benoiff, CEO of www.salesforce.com one of the biggest supporters of Cloud

computing said, The cloud services companies of all sizesThe cloud is for everyone. The

cloud is a democracy.

Vivek Kundra, Federal CIO of United states of America said, There was a time when every

household, town, farm or village had its own water well. Today, shared public utilities give

us access to clean water by simply turning on the tap; cloud computing works in a similar

fashion. Just like water from the tap in your kitchen, cloud computing services can be turned

on or off quickly as needed. Like at the water company, there is a team of dedicated

professionals making sure the service provided is safe, secure and available on a 24/7 basis.

When the tap isn't on, not only are you saving water, but you aren't paying for resources you

don't currently need.

Small businesses will now have the ability to use the same tools and techniques that larger

companies enjoyed for years. They can leverage Web 2.0/ Social Media tools to connect with

prospects / customers, build their brand, and use Enterprise 2.0 tools to automate systemswithin their workplace using free, inexpensive and simple tools.

Sahil Parikh CEO - Synage


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20. Case Study

This section presents the current cloud computing offers, distinguishing them basing on the

level of abstraction (i.e. the level of service) presented to the programmer and the level of

management of the resources.

20.1 Amazon Web Services (AWS):

AWS refers to the services offered by Amazon to cover the entire service spectrum. Amazon

is the only provider to the date with products in all three classes. AWS includes a number of

components:

Amazon Elastic Compute Cloud (EC2): The IaaS product of Amazon is the leader in

its class. It supplies customers with a pay-as-you-go resource that can include storage

or computation. EC2 has a web interface for requesting virtual machines as server

instances. An EC2 instance seems like physical hardware and its relatively low level

of abstraction (i.e. by definition, IaaS have low levels of abstraction when compared

to PaaS or SaaS. Customers have the chance to increase or decrease the number of

server instances, then AWS reacts by scaling the number of instances up or down.

Server instances are available in three different sizes; each one having a different

amount of memory, computing power, and bandwidth.

Amazon Simple Storage Service (S3) implements a dynamically scalable storage ser-

vice which can be used to host applications that are subsequently offered to end-users.

Amazon SimpleDB realizes a database (DB) and provides it as a web service.

Developers store and query data items via web services requests. Amazon liberates

these developers from worrying about the databases internal complexity.

20.2 Rackspace:

Rackspace offers infrastructure as a service (IaaS), named Cloudservers, or a platform as aservice, Cloudsites, to host web applications with scaling needs. Rackspace also provides

Cloudfiles, a storage service, which can be combined with a content delivery network

(CDN) service. This latter service competes directly with the CDN from Amazon, called

Cloudfront, but Rackspace, unlike Amazon, does not charges for bandwidth consumption

between the storage service and the CDN.


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20.3 GoGrid:

GoGrid provides infrastructure as a service (IaaS), standing as a direct competitor to

Amazon or Rackspace. GoGrid offers a competitive service consisting on dedicated hosted

servers in their cloud facilities. Thus they are a provider of virtual or physical infrastructure

on-demand, unlike Amazon (who only supplies virtual infrastructure on-demand). Addition-ally, GoGrid complements the offer of dedicated infrastructure with an hybrid environment

that enables users of their dedicated hosting service to request virtual resources to handle

usage spikes.

20.4 Salesforce:

Salesforce (software as a service (SaaS)), is one of the pioneers in cloud computing.

Salesforces first and still main product is a Customer Relationship Management (CRM) web

service. Salesforce has focused on enterprise customers and has added new applications on

top of its CRM. While earlier Salesforce only offered SaaS class products, in 2002 Salesforce

shifted towards the PaaS market with the release of their Force.com platform that allows

developers to develop applications that will execute natively on their Salesforce platform or

be integrated with third party services. In the case of Force.com, Salesforce is responsible for

scaling up or down the platform as needed, thus making the addition of new physical

resources transparent to the user.

The Force.com development environment is based on the Eclipse integrated development

environment (IDE) and uses a new programming language called APEX. APEX is closely

related to C# and Java. Force.com also provides non-programmers with tutorials and models

to enable them to compose business web applications in a visual way.

20.4 Google App Engine:

Googles Platform as a service (PaaS) product is a platform to develop and host webapplications on Googles servers. The user can leverage Googles distributed and

scalable file systems (BigTable and File System), along with technologies used by Googles

wide range of web applications (e.g, Gmail, Docs, Google Reader, Maps, Earth, or Youtube).

Although in the beginning the only programming language supported was Python,

presently there is also support for Java, and it is forecasted that other programming


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languages will be allowed in the future. In a move towards connecting both clouds, Google

and Salesforce have recently provided libraries that allow the developer to access the others

web services application programming interface (API) from applications. Once installed, the

application can seamlessly make web service API calls of the other service, hence integrating

applications hosted on both clouds.

20.5 Microsoft Windows Azure:

Microsofts Platform as a service (PaaS) service is called Windows Azure. This is a very new

(commercially it became available starting in February 2010) cloud platform offering that

provides developers with on-demand computing and storage to host, scale, and manage web

applications on the Internet using Microsofts datacenters.

The Azure Services platform currently runs only .NET Framework applications, but

Microsoft has indicated that a large range of languages will be supported. Indeed, two

software development kits (SDKs) have already been made available for interoperability

with the Azure Services platform that enable Java and Ruby developers to integrate their

application with .NET services.

20.6 Sun Cloud:

Sun Microsystems (now Oracle) in March 2009 introduced a cloud service to competeagainst Amazon EC2 in the field of IaaS. It is uncertain what the future of this service

is today. After the merger with Oracle, it was announced that the Sun Cloud service will

no longer be available, but it is unclear if another Cloud product will be released instead.


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21. QUESTIONNAIRE RESULT

Q1). How many employees does your company have?

1

49 0 0%50 249 1 17%

250 or more 5 83%

Q2). Which industry sector does your company belong to?

ICT 2 33%

Manufacturing 1 17%

Trade 1 17%

FinancialServices

2 33%

Government 0 0%

Other 0 0%

Q3). Company location?

Local company 2 33%

Local companywith the foreignaffiliates

2 33%

Part of aninternationalcorporation

2 33%

Q4). Have you used, or are you planning to use CloudComputing services?

Yes 6 100%

No 0 0%

Q5). Is your organization using any of the following Cloud


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Computing services?

Cloud Computingused in the past,but projects havebeendiscontinued

0 0%

None at present,and not planningwithin the next 12months

0 0%

None at present,but planningwithin the next 12months

1 17%

Running a pilot

project at present

3 50%

Running aproductionsystem atpresent

2 33%

IaaS:

Cloud Computingused in the past,but projects havebeendiscontinued.

0 0%

None at present,and not planningwithin the next 12months.

1 17%

None at present,but planningwithin the next 12months.

1 17%

Running a pilot

project at present.

0 0%

Running aproduction systemat present.

4 67%

PaaS:


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Cloud Computingused in the past,but projects havebeendiscontinued.

0 0%

None at present,and not planningwithin the next 12months.

0 0%

None at present,but planningwithin the next 12months.

4 67%

Running a pilotproject at present.

1 17%

Running aproduction systemat present.

1 17%

Q6). What percentage of your IT operational expenditure isconstituted by Cloud Computing services (i.e. SaaS, IaaSand PaaS together)?

1 25% 6 100%

26 50% 0 0%

51 75% 0 0%

76 100%

0 0%

Q7). What percentage each Cloud Computing service type(i.e. SaaS, IaaS and PaaS) represents? [NOTE: Answers'total must be 100% ]


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10% 0 0%

20& 0 0%

30% 1 17%

40% 3 50%

50% 2 33%

60% 0 0%

70% 0 0%

90% 0 0%

100% 0 0%

IaaS

10% 0 0%

20& 1 17%

30% 1 17%

40% 2 33%

50% 2 33%

60% 0 0%

70% 0 0%

90% 0 0%

100% 0 0%

PaaS


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10% 1 17%

20& 2 33%

30% 1 17%

40% 2 33%

50% 0 0%

60% 0 0%

70% 0 0%

90% 0 0%

100% 0 0%

Q8). What types of processes do you support with CloudComputing services?

SaaS 5 83%

IaaS 5 83%

PaaS 4 67%

People may select more than onecheckbox, so percentages mayadd up to more than 100%.

Non- Mission Critical processes

SaaS 5 83%

IaaS 5 83%

PaaS 4 67%


Q9). How many Cloud Computing service providers do you

have? - # local service providers

0 0 0%

1 0 0%

2 3 50%

3 1 17%

3+ 2 33%


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Q9). How many Cloud Computing service providers do youhave? - # global service providers

0 1 17%

1 1 17%

2 0 0%

3 0 0%

3+ 4 67%

IaaS - # local service providers

0 0 0%

1 0 0%

2 3 50%

3 1 17%

3+ 2 33%

IaaS - # global service providers

0 1 17%

1 1 17%

2 0 0%

3 2 33%

3+ 2 33%

PaaS - # local service providers

0 0 0%

1 0 0%

2 3 50%

3 1 17%

3+ 2 33%


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PaaS - # global service providers

0 1 17%

1 1 17%

2 0 0%

3 0 0%

3+ 4 67%

Q10). What types of SaaS services have you used, or areplanning to use in the near future?

Analytics 6 100%

Collaboration(e.g. officeapplications)

5 83%

Communication(e.g. email)

5 83%

ContentManagement

4 67%

Finance &Administration

3 50%

HumanResources

2 33%

IT Management 5 83%

Marketing 2 33%

Productivity &Resources

2 33%

Supply &Logistics

2 33%

CRM/Sales 2 33%

Service &Support

2 33%

People may select more than onecheckbox, so percentages may addup to more than 100%.

At present


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Analytics 5 83%

Collaboration (e.g.office applications)

3 50%

Communication

(e.g. email)

4 67%

ContentManagement

4 67%


5 83%

Human Resources 3 50%

IT Management 1 17%

Marketing 4 67%


1 17%

Supply & Logistics 2 33%

CRM/Sales 5 83%

Service & Support 3 50%

People may select more than onecheckbox, so percentages may addup to more than 100%.

Within the next 12 months

Analytics 6 100%

Collaboration (e.g.office applications)

6 100%

Communication(e.g. email)

6 100%

ContentManagement

6 100%


6 100%

Human Resources 6 100%

IT Management 6 100%

Marketing 6 100%


5 83%

Supply & Logistics 6 100%

CRM/Sales 6 100%

Service & Support 6 100%People may select more than one


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checkbox, so percentages mayadd up to more than 100%.

Q11). Have you used, or are planning to use in the nearfuture IaaS services?

Compute(serverinstances) (e.g.Amazon EC2)

4 67%

Storage (e.g.Amazon S3)

5 83%

Database (e.g.AmazonSimpleDB)

3 50%


At present

Compute (serverinstances) (e.g.Amazon EC2)

2 33%

Storage (e.g.Amazon S3)

6 100%

Database (e.g.Amazon

SimpleDB)

5 83%


Within the next 12 months

Compute (serverinstances) (e.g.Amazon EC2)

5 83%

Storage (e.g.

Amazon S3)

6 100%

Database (e.g.AmazonSimpleDB)

5 83%


Q12). Which PaaS services do you use?


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Force.com 4 67%

Microsoft Azure 3 50%

Google AppEngine

6 100%

ZOHO Creator 0 0%

WorkXpress 1 17%

WolfFrameworks

0 0%


Other please specify

Q13). What were your main motivations for adopting Cloud

Computing?

Cost reduction(TCO)

6 100%

Improved ROI 6 100%

Improved supportfor businessprocesses

6 100%

Betterresponsiveness

to changingrequirements

5 83%

Rapidimplementation

5 83%

Improvedscalability(elasticity)

4 67%


IaaS


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Cost reduction(TCO)

5 100%

Improved ROI 5 100%

Improved support

for businessprocesses

4 80%

Betterresponsiveness tochangingrequirements

5 100%

Rapidimplementation

5 100%

Improvedscalability

(elasticity)

4 80%


PaaS

Cost reduction(TCO)

5 83%

Improved ROI 5 83%

Improved support

for businessprocesses

5 83%

Betterresponsiveness tochangingrequirements

6 100%

Rapidimplementation

5 83%

Improvedscalability(elasticity)

4 67%


Q14). How did you evaluate the suitability of CloudComputing for your organization?

Using our ownresearch

5 83%

Based on arecommendation

of serviceprovider/system

6 100%


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integrator


Q15). What were your main concerns before deciding toadopt Cloud Computing?

High Cost 5 83%

Securityconcerns

5 83%

Governanceconcerns

5 83%

Lack of controlover resources

5 83%

Lack ofavailability ofsuitableservices

4 67%

Concerns aboutserviceavailability

5 83%

Network speedissues

4 67%

Dependence on

external serviceprovider

4 67%

Legalconstraints

4 67%


IaaS


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High Cost 5 83%

Security concerns 5 83%

Governanceconcerns

4 67%


4 67%

Lack ofavailability ofsuitable services

5 83%


5 83%

Network speedissues

5 83%

Dependence onexternal serviceprovider

4 67%

Legal constraints 5 83%


PaaS

High Cost 5 83%

Securityconcerns

5 83%

Governanceconcerns

5 83%


4 67%


5 83%


4 67%

Network speedissues

5 83%


5 83%


People may select more than onecheckbox, so percentages may


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add up to more than 100%.

Q16). What are your main concerns now, i.e. after adoptingCloud Computing?

High Cost 5 83%

Securityconcerns

5 83%

Governanceconcerns

5 83%


4 67%


4 67%


4 67%

Network speedissues

5 83%


6 100%


People may select more than one


IaaS

High Cost 4 67%

Securityconcerns

3 50%

Governanceconcerns

3 50%


4 67%


2 33%


3 50%

Network speedissues

4 67%

Dependence on 6 100%


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external serviceprovider


People may select more than one


PaaS

High Cost 5 83%

Securityconcerns

3 50%

Governanceconcerns

3 50%

Lack of controlover resources 4 67%


5 83%


2 33%

Network speedissues

6 100%


4 67%



Q17). How would you characterize the result of theimplementation of Cloud Computing in your organization?

Not

Applicable

0 0%

Total Failure 0 0%

PartialFailure

0 0%

Success, butlimitedbenefits

2 33%

Success,benefits asexpected

2 33%


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Success,exceededexpectations

2 33%

IaaS

Not Applicable 0 0%

Total Failure 0 0%

Partial Failure 0 0%

Success, butlimited benefits

2 33%

Success, benefitsas expected

2 33%


2 33%

PaaS

Not Applicable 0 0%

Total Failure 0 0%

Partial Failure 0 0%

Success, butlimited benefits

1 17%

Success, benefitsas expected

4 67%


1 17%


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22. CONCLUSION

Companies have to pick and choose and be careful with what data they allow to be out

there in a cloud.

Cloud computing can be a useful resource to help companies save money but can also

have downfalls.

The average citizen doesn't want their personal information unprotected and available.

As companies perfect their cloud computing services, I think that more companies

will be open to using these services.

This service will provide new inventive ways to use computers and provide services.

By eliminating the problems of traditional application development, cloud computing

technology frees you to focus on developing business applications that deliver true value to

your business (or your customers). The platform lets IT innovate while avoiding the costs and

headaches associated with servers, individual software solutions, middleware or point-to-

point connections, upgradesand the staff needed to manage it all.

Cloud Computing Brings Possibilities..

Increases business responsiveness

Accelerates creation of new services via rapid prototyping capabilities Reduces acquisition complexity via service oriented approach

Uses IT resources efficiently via sharing and higher system utilization

Reduces energy consumption

Handles new and emerging workloads

Scales to extreme workloads quickly and easily

Simplifies IT management

Platform for collaboration and innovation

Cultivates skills for next generation workforce


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The results states that the utility of the Cloud matches the need of the todays Business.

Because of the dynamic changing environments, the workload can shrink or grow very fast

which causes a problem for the enterprise to scale up or down immediately. Moreover the

features that were used by the Technical giants and not affordable by small enterprises due to

heavy pricing can now be made available to them. Cloud does not suit well to the Financialenterprise that have sensitive data and are not willing to disclose it to the th

Documents

Complete (Cloud Computing)