Computing and IT in the Workplace

CT006-1

Cloud Computing
 At the end of this section, YOU should be able to:

Explain important concepts in Cloud Computing

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 • Cloud Computing

• Deployment Models
• Service Models
1. SaaS - Software as a Service
2. PaaS – Platform as a Service
3. IaaS – Infrastructure as a Service
• Cloud Cost Management
– CapEx vs. OpEx – Capital Expenditure vs. Operational
Expenditure

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 What is Cloud?
• Network or Internet that is present at a
remote location
• Provides services over a network i.e. public or
private networks such as WAN, LAN, VPN
• e-mail, web conferencing, customer
relationship management (CRM) all run in the
cloud

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• Refers to manipulating, configuring and accessing
applications online
• Offers online data storage, infrastructure and
applications
• Virtualized Computing Platform
• Scalable use of computing resources
• Pay-per-Use concept
Note: Infrastructure - a combined set of hardware,
software, networks, technology, devices, facilities, etc. to
develop, test, deliver, monitor, control or support IT
services
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• Deployment models define the type of access to the cloud i.e.
how the cloud is located
• Cloud can have any of the four types of access: Public, Private,
Hybrid and Community

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 1. Public Cloud
• Allows systems/services to be easily accessible to the public.
May be less secure because of its openness e.g. e-mail
2. Private Cloud
• Allows systems/services to be accessible within an
organization. Increased security because of its private nature
3. Community Cloud
• Allows systems/services to be accessible by group of
organizations
4. Hybrid Cloud
• A mixture of public and private cloud. Critical activities are
performed using private cloud while the non-critical activities
are performed using public cloud
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• Service Models are the
reference models on which
the Cloud Computing is
based
• Categorized into three basic
service models:
1. Infrastructure as a Service
(IaaS)
2. Platform as a Service
(PaaS)
3. Software as a Service
(SaaS)
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• Infrastructure as a Service (IAAS)
IaaS provides access to fundamental resources such as
physical machines, virtual machines, virtual storage, e.g.
servers

• Platform as a Service (PAAS)

PaaS provides the runtime environment for applications,
development & deployment tools e.g. DB, Web/Application
Server, Deployment Tools

• Software as a Service (SAAS)

SaaS model allows to use software applications as a service to
end users e.g. Email, Games, CRM
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1. Access applications as utilities over the Internet
2. Manipulate and configure applications online at any time
3. It does not require to install a specific piece of software to
access or manipulate cloud application
4. Offers online development and deployment tools,
programming runtime environment through PAAS
5. Resources are available over the network that provides
platform independent access to any type of users
6. Offers on-demand self-service, resources can be used
without interaction with the cloud service provider
7. Highly cost effective as it operates at higher efficiencies with
greater utilization. It just requires an Internet connection.
8. Offers load balancing that makes it more reliable
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Benefits of Cloud Computing

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Risks of Cloud Computing
1. Security & Privacy
• The biggest concern. Data and infrastructure
management is provided by a third-party
• A huge risk to handover sensitive data to Cloud
Service Provider (CSP)
• Security breach results in loss of clients and
business
2. LOCK-IN
• Difficult to switch from one CSP to another
• Results in dependency of service
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Risks of Cloud Computing

3. Isolation Failure
• Failure of isolation mechanism that separates
storage, memory, routing belonging to different
users (tenants)
4. Management Interface Compromise
• In case of public cloud provider, the customer
management interfaces are accessible through
the Internet

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Risks of Cloud Computing

5. Insecure or Incomplete Data Deletion

• Data requested for deletion may not get deleted
owing to:
a) Extra copies of data are stored but are not
available
b) Disk destroyed also stores data from other
tenants

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 Cloud Cost Management
• Adopting a pay-as-you-go model means
the organization’s cashflow has changed
• Revenue and cash expenditure are on a usage
basis such as time, volume or component
• Moving from CAPEX to OPEX model uses
operational expenses not capital
• Cloud Computing seeks to generate revenue
while driving capital costs down through greater
efficiencies of working capital and OPEX
changes
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CAPEX vs. OPEX

1. Capital expenditure - major investments in goods,

appears on the balance sheet
• Depreciates over the life of the asset e.g. office car,
furniture
2. Operating expenditure appears on the profit and loss
account
• On going expenses e.g. sales, utility bills

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CAPEX vs. OPEX
• Companies are challenged to determine the right
resource requirements to migrate to the cloud
• Most do not wish to pay fixed fee to maintain DCs
owing to peak seasons i.e. surge in transactions
• Committing to one-time capital expenditure and a
yearly depreciation is not cost-effective
• Bottom-line: Pay only for what is used
• CSPs allow companies to adopt a “pay as they go” or
OPEX model
• Companies can use Cloud resources/expertise, pay
for what is used and realize potential cost benefits
throughout the year.
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 Question and Answer Session

Q&A

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