Enterprise Cloud Computing

By Dr. Atanu Rakshit Email: atanu.rakshit@iimrohtak.ac.in atanu.raks@gmail.com

Enterprise Cloud Computing

Text Book:
Cloud Computing Bible by Barrie Sosinsky, 2/e, Wiley Publication, 2013

Reference Material:
Building Applications in the Cloud by Christopher M. Moyer, Pearson, 2013 Cloud Computing Automating the Virtualized Data Center by Venkata Josyula, Malcolm Orr and Greg Page, Pearson, 2012 Cloud Computing Implementation, Management and Security by John W. Rittinghouse and James F. Ransome, CRC Press, 2010

Enterprise Cloud Computing Sessions Plan

Introduction to Cloud Computing Assessing the Value Proposition Cloud Computing Architecture Service and Application Types Abstraction and Virtualization Capacity Planning and Resource Optimization Understanding Service Oriented Architecture Moving Applications and Application Framework in Cloud Cloud Security Mobile Cloud Computing

Enterprise Cloud Computing

Cloud Value Proposition

Cloud Value Propositions

The Main attributes like scalability, elasticity, low barrier to entry, and a utility type of delivery are completely change how applications are created, priced, and delivered It shifts capital expenditures into operating expenditures. Decoupling growth from cash on hand or from requiring access to capital Service Level Agreements (SLAs) are an important aspect of cloud computing

Cloud Value Propositions

Cloud computing presents new opportunities to users and developers of a shared multitenant utility. The ability to access pooled resources on a pay-as-you-go basis provides a number of system characteristics that completely alter the economics of information technology infrastructures Any application or process that benefits from economies of scale, commoditization of assets, and conformance to programming standards benefits from the application of cloud computing. The various service models benefits the users of varies type

Cloud Value Propositions

Profit: The economies of scale can make this a profitable business. Optimization: The infrastructure already exists and isn't fully utilized. Strategic: A cloud computing platform extends the company's products and defends their franchise. Extension: A branded cloud computing platform can extend customer relationships by offering additional service options.

Cloud Value Propositions

Presence: Establish a presence in a market before a large competitor can emerge. Platform: A cloud computing provider can become a hub master at the center of many ISV's (Independent Software Vendor) offerings.

Cloud Value Propositions

Due to its scalability, cloud computing provides a means to do high-performance parallel batch processing that wasn't available to many organizations before.

The relative ubiquity of cloud computing systems also enables emerging classes of interactive mobile applications. Cloud computing also can provide access to multiple data sets that can support layered forms of information, the types of information you get when you view a mashup

Early Adopters and New Applications

Messaging and team collaboration applications Cross enterprise integration projects Infrastructure consolidation, server, and desktop virtualization efforts Web 2.0 and social strategy companies Web content delivery services Data analytics and computation

Early Adopters and New Applications

Mobility applications for the enterprise CRM applications Experimental deployments, test bed labs, and development efforts Backup and archival storage

Challenges and Obstacles

Subject Area Compliance Captive Policy-based Cloud Proprietary Challenge Compliance to laws and policies varies by geographical area. This requires that the cloud accommodate multiple compliance regimes. Data Privacy Bounded Shared with cloud To ensure data privacy in the cloud, additional security methods such as private encryption, VLANs, firewalls, and local storage of sensitive data is necessary. Monitoring Variable but under control Limited For private systems, any monitoring system the organization wishes to deploy can be brought to bear. Cloud computing models often have limited monitoring because it is vendor-defined.

Challenges and Obstacles

Subject Area Security Captive Restricted Cloud Federated Challenge The different trust mechanisms require that applications be structured differently and that operations be modified to account for these differences.

Service Level Agreements (SLAs)

Customized

Cloud specific

Cloud SLAs are standardized in order to appeal to the majority of its audience. Custom SLAs that allow for multiple data sources are difficult to obtain or enforce.Cloud SLAs do not generally offer industry standard chargeback rates, and negotiations with large cloud providers can be difficult for small users. Business risks that aren't covered by a cloud SLA must be taken into account.

Software Stack

Customized

Commoditized

The cloud enforces standardization and lowers the ability of a system to be customized for need.

Measuring Cloud Computing Cost

The cost of a cloud computing deployment is roughly estimated to be CostCLOUD = (UnitCostCLOUD x (Revenue CostCLOUD)) where the unit cost is usually defined as the cost of a machine instance per hour or another resource

Depending upon the deployment type, other resources add additional unit costs: storage quantity consumed, number of transactions, incoming or outgoing amounts of data, and so forth. Different cloud providers charge different amounts for these resources

Measuring Cloud Computing Cost

The costs associated with the cloud model are calculated rather differently. Each resource has its own specific cost and many resources can be provisioned independently of one another. In theory, therefore, the CostCLOUD is better represented by the equation: CostCLOUD = 1n(UnitCostCLOUD x (Revenue CostCLOUD))INSTANCEn +1n(UnitCostCLOUD x (Revenue CostCLOUD))STORAGE_UNITn +. 1n(UnitCostCLOUD x (Revenue CostCLOUD))NETWORK_UNITn + In practice, cloud providers offer packages of machine instances with a fixed relationship between a machine instances, memory allocation (RAM), and network bandwidth. Storage and transactions are unbundled and variable.

Quality of Service
Everything in cloud computing is delivered as service So quality of service is inevitable QoS has multiple aspects such as:
Response time Throughput Availability Reliability Security

QoS requirements for a Cloud - ideal

The QoS must system be able to manage several simultaneous services with a specific response time limitation for each service The QoS system must supply service differentiation in the service provider to the consumer consumer category The QoS system must support the grouping of interactions in sessions. The QoS system should not require modification in the system software of the servers

QoS requirements for a Cloud - ideal

The QoS system should be easy to configure The QoS system must be scalable to operate in both a single server and a cluster of servers The QoS system must provide protection against overloads and low utilization The QoS system may support dynamic negotiation of parameters

Service Level Agreement (SLA)

A Service Level Agreement (SLA) is the contract for performance negotiated between client and a service provider. Today with the advent of large utility-like cloud computing providers, most SLAs are standardized until a client becomes a large consumer of services. Some SLAs are enforceable as contracts, but many are really agreements that are more along the lines of an Operating Level Agreement (OLA) and may not have the force of law

Service Level Agreement, SLA

The SLA is a contract negotiated and agreed between a customer and a service provider Service provider is required to execute service requests from a customer within negotiated quality of service requirements for a given price Due to variable load, dynamically provisioning computing resources to meet an SLA and allow for an optimum resource utilization will not be an easy task

Service Level Agreement (SLA)

Availability of the service (uptime) Response times or latency Reliability of the service components Responsibilities of each party Warranties

Industry Relevance

IT has fallen behind the evolution curve of the business

Business Agility is Threatened: Of 1,150 global CEOs, 76% say the ability to adapt will be a key source of strategic advantage in 2009* Complexity is growing: CIOs see complexity as a threat to the very survival of their business Operation Costs Exceed HW Costs: CEOs view growth as a key focus area Operational costs far exceed the budgets for new hardware
* PricewaterhouseCoopers 11th Annual Global CEO Survey

Why does the market care - Drought and dry fields

resulting in serious challenges for IT today

Many applications are proprietary, slow, siloed & exhibit single points of failure but are too expensive to remand Complex, heterogeneous infrastructure create resource & data silos and recovery nightmares Enterprise data is largely distributed and rife with errors Infrastructure resources are highly underutilized PCs/Servers < 10% Storage < 50% Change is a cost prohibitive and time consuming process
IT has been driven by cost instead of value!

Importance

Why should we care - The gathering storm

Possibilities of Cloud Computing

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

Why should we care - The gathering storm

What is the Cloud Computing opportunity?

Next evolutionary step in computing with >30yrs of momentum Requires a new way of thinking, new processes, new skills, and new tools Enables the business to work around IT departments who are seen as part of the problem Companies will reduce IT operating costs and improve agility Clients should consider cloud computing as part of their blueprint refresh, application rationalization, and outsourcing activities Client should investigate cloud strategies with their systems management, application and outsourcing vendors

Why should we care - The gathering storm

What IT must do to compete

People
Adopt a service provider mentality Inform the business without involving them in issues Realign teams to present a unified relationship model to customers

Process
Provide services with appropriate service levels Support the user from their point of view Respond quickly, act efficiently

Technology
Pool technology resources Manage the resources to deliver the required service Automate wherever possible Incorporate technology resources beyond the company data center

Why should we care - The gathering storm

What disruptions will Cloud cause?

People
Alignment of roles & responsibiliti es to service delivery Staff training Reorganizatio n to adopt a service focus Update of success metrics Knowledge management

Process
Project planning Capacity planning and compute resource procurement Application prioritization Developing & managing service levels Technology Adoption (PoC, Pilot, Deploy) End-user support

Technology
Utility Computing architecture Identity management Data security Data management Systems management strategy Vendor evaluation & implementation

Strategy
Defining a Cloud enabled IT strategy Budgeting and project funding Standards and guidelines Reference architectures for SaaS, PaaS, and IaaS Enterprise architecture

Structure
Governance model Defining and implementing controls Identifying audit procedures

Cloud Computing is a disruptive technology which will transform how IT does business

Why should we care - The gathering storm

What new capabilities/models will IT gain?

Ability to overflow workload to external compute resources as needed when internal resources are maxed out Adopting in-network redundancy with automated recovery to eliminate disaster recovery risks and costs Data as a Service built on the concepts of Master Data Management and the Semantic Web Rapid deployment (SaaS) or development (PaaS) to meet the immediate needs of the business New models and tools for improving & evolving internal IT

Additional capabilities will emerge as more Cloud Computing gains momentum

Cloud Capabilities

Cloud cover

Cloud Computing Success Stories

GE - Global procurement hosting 500k suppliers and 100k users in six languages on SaaS platform to manage $55B/yr in spend - Reduced infrastructure cost by 30% in part by achieving 70% server utilization Bechtel

Washington DC - Google Apps used by 38k employees reducing costs to $50/user per year for email, calendaring, documents, spreadsheets, wikis, and instant messaging Eli Lilly - Using Amazon Web Services can deploy a new server in 3min vs 50days and a 64-node Linux cluster in 5min vs 100days - Using Amazon Storage to store 30-80GB/day of trading activity

NASDAQ

Others leaders include Hasbro, ESPN, Major League Baseball, New York Times and British Telecom

Cloud cover

Cloud Computing Success Stories

Cloud cover

New services will emerge

Data Warehousing & Business Intelligence as a Service Today companies are challenged to find and build in-house expertise in both technologies, and expertise directly correlates with value. A service would obviate the large investment in people and technology focusing expenditures on results Business Process Outsourcing as a Service Outsourcing business processes requires adoption for the outsourcer or migration for the customer. Service enablement obviates the need for platform changes focusing instead on pushing data through the process in a seamless stream Business Continuity & Disaster Recovery as a Service Clouds break the link between applications and hardware enabling lightening fast responses to outages and disasters without disruption. Billions of dollars spent provisioning just in case environments can be saved while improving service.

Where To Start

As part of an IT transformation adopting cloud would look something like this

1. Rationalize infrastructure & applications
Reduce the complexity by identifying redundant, outdated, or underperforming components and consolidate servers. Create a cloud architecture leveraging SOA for applications, utility computing for infrastructure, and ESB for integration with appropriate standards, governance, and reference architectures Identify the costs to support, update, and operate each application on a per user basis Target SaaS alternatives offering a better economic model than internal hosting. If not available target SOA alternatives.

2. Define the cloud architecture

3. Build cost profiles for each application

4. Identify and assess SaaS alternatives

Where do we start - the weather forecast

and this
5. Migrate infrastructure to a cloud bursting model
Further consolidate servers from just-in-case to average load provisioning using the internal pool of servers left over or an external IaaS provider to handle peak loads Identify systems management gaps and discuss with vendors Applications requiring significant development or new applications should be constructed on a SOA foundation with a particular focus on application virtualization Define a development roadmap which migrates retained applications to a cloud model through outsourcing (SaaS), replacement (SaaS or SOA), or development (SOA).

6. Build new applications on a SOA foundation

7. Create cloud enablement roadmap for retained applications

but there are many onramps to Cloud Computing:

External SaaS
Driver Quickly gain new capabilities Select best in class point solutions with already well defined integration methods (EDI) Requires Nothing Challenges Governance Data security, privacy, and ownership 3rd party SLAs Integrated support

External IaaS Driver

PaaS

Internal IaaS
Driver Agility Maximize efficiency Maximize ROA Requires Server virtualization Service level agreements Automated infrastructure provisioning and orchestration Integrated systems management suite Challenges Application silos

Internal SaaS Driver Agility Maximize reuse SOA Requires Internal IaaS Application virtualization Challenges Application monitoring tools

Driver Development Cloudbursting of external overflowing from internal to external facing web compute resources solutions Requires Storage on Understanding demand of SaaS New compute application intensive services and data models Requires Scheduler to move Challenges Integration to jobs to cloud backend Internet systems bandwidth Data security, Challenges privacy and ownership Security 3rd party SLAs

Q&A