INTRODUCTION
Cloud
computing is a model of computing in which computer processing, storage,
software, and other services are provided as a pool of virtualized resources
over a network, primarily the Internet. These clouds of computing resources can
be accessed on an as-needed basis from any connected device and location. The
term "Cloud Computing" has appeared on the radar screen of
information systems/information technology and business professionals over the
last few years. The term "Cloud" refers to the Internet and
"Computing" refers to the use of technology.
In 2009 the US National
Institute of Standards and Technology (NIST) Information Technology Laboratory
developed a considered and well-written definition distilled from a number of
perspectives. 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. This cloud model promotes availability and is composed of five
essential characteristics. The essential characteristic are on demand self
services, ubiquitous network access, location independent resource pooling,
rapid elasticity and measured services. Cloud computing consists of three
different types of services. The types are infrastructure as a service,
platform as a service and software as a service. Deployment models are private
cloud, community cloud, public cloud and hybrid cloud. The emerging cloud abstracts
infrastructure complexities of servers, applications, data, and heterogeneous
platforms.
The NIST definition
arguably comes closest to capturing in a minimal number of words all of the
essential ideas of cloud computing. Some other definitions below are more
industry or commercially oriented. For example, Wikipedia states that “Cloud
computing describes a new supplement, consumption and delivery model for IT
services based on the internet, and it typically involves the provision of
dynamically scalable and often virtualised resources as a service over the
internet. Others have suggested that cloud computing is a general term for
anything that involves delivering hosted services over the internet. Cloud
computing have lot of potential to explore the telecom industry.
Characteristics
The
Working Group has identified four major drivers of cloud computing :
1. Everything As A Service
Service-oriented architectures
define standard interfaces and protocols (e.g. for discovery, quality, and data
transfer) to allow developers to utilise information tools and functions as
services that users can access without
knowledge of, or control over, their internal workings. Services in the cloud
can be set up to form business workflows. The advent of XML in the nineties and
standards, such as BPEL in the early 2000s, fuelled this growth.
2. Availability Of Broadband
Both the reach and capacity of
Internet Protocol networks are drivers of cloud computing. Moreover, as
capacity grows, more demanding types of data can be used in commerce,
entertainment, government, and business. In the early days of the web, data and
an occasional image were retrieved by web browsers. Today users routinely
download music and short video clips. However, full-length movies at high
quality are still beyond most broadband connections.
3.
Warehouse-Size Data Centres
Another driver of cloud computing
is an evolution from small, distributed, data-oriented computing centres (e.g.
1000 node3, one petabyte 4) to more cost-effective, very large scale commercial
cloud services (e.g. 100,000 node, 100 petabyte). This is likely to continue.
4.
Energy Efficiency
In some data centres, only 30 per
cent of the electric power is used by the IT equipment, with the remaining 70
per cent going to cooling, backup, etc. The last few years has seen rapid
learning in warehouse-size data centres on the design of cooling systems
(Google, 2009), environment monitoring (Liu, 2007), and backup with the result
that power utility efficiency is improving.
SWOT ANALYSIS
Strength
1.
Shared computer resources
Instead
of wasting precious and costly computing power, an inherent drawback
of the current client server model, cloud computing allows for a more
efficient and affordable use of computing resources.
2.
Cost savings
The end
user is no longer burdened with the expense of maintaining and updating
servers, data centres and software. Instead, the cloud computing provider
carries these IT costs, while organisations simply pay a low monthly
subscription fee.
3.
No licensing
The
all-in one package based upon a subscription fee does away with complicated and
expensive software licences that need managing and updating regularly.
4.
Reduced reliance on external
consultants
The
provider now handles the updates and installation of software patches –
dangerous security loop holes. Conflicts in software incompatibility is no
longer your problem so there’s no need for external IT consultants to
troubleshoot your business systems.
5.
Mobility
Data
stored in the cloud can be accessed from virtually anywhere with an internet
connection.
6.
Flexibility
The
second a company needs more bandwidth than usual, a cloud-based service can
instantly meet the demand because of the vast capacity of the service’s remote
servers. In fact, this flexibility is so crucial that 65% of respondents to an
InformationWeek survey said “the ability to quickly meet business demands” was
an important reason to move to cloud computing.
7.
Disaster
recovery
When
companies start relying on cloud-based services, they no longer need complex
disaster recovery plans. Cloud computing providers take care of most issues,
and they do it faster. Aberdeen Group found that businesses which used the
cloud were able to resolve issues in an average of 2.1 hours, nearly four times
faster than businesses that didn’t use the cloud (8 hours). The same study
found that mid-sized businesses had the best recovery times of all, taking
almost half the time of larger companies to recover.
8.
Automatic
software updates
In 2010,
UK companies spent 18 working days per month managing on-site security alone.
But cloud computing suppliers do the server maintenance – including security
updates –themselves, freeing up their customers’ time and resources for other
tasks.
9.
Cap-Ex
Free
Cloud
computing services are typically pay as you go, so there’s no need for capital
expenditure at all. And because cloud computing is much faster to deploy,
businesses have minimal project start-up costs and predictable ongoing
operating expenses.
10. Increased
collaboration
Cloud
computing increases collaboration by allowing all employees – wherever they are
– to sync up and work on documents and shared apps simultaneously, and follow
colleagues and records to receive critical updates in real time. A survey by
Frost & Sullivan found that companies which invested in collaboration
technology had a 400% return on investment.
11. Work from anywhere
As long
as employees have internet access, they can work from anywhere. This
flexibility positively affects knowledge workers' work-life balance and
productivity. One study found that 42% of working adults would give up some of
their salary if they could telecommute, and on average they would take a 6% pay
cut.
12. Document control
According
to one study, "73% of knowledge workers collaborate with people in
different time zones and regions at least monthly". If a company doesn’t
use the cloud, workers have to send files back and forth over email, meaning
only one person can work on a file at a time and the same document has tonnes
of names and formats. Cloud computing keeps all the files in one central
location, and everyone works off of one central copy. Employees can even chat
to each other whilst making changes together. This whole process makes
collaboration stronger, which increases efficiency and improves a company’s
bottom line.
13. Security
Some
800,000 laptops are lost each year in airports alone. This can have some
serious monetary implications, but when everything is stored in the cloud, data
can still be accessed no matter what happens to a machine.
14. Competitiveness
The cloud
grants SMEs access to enterprise-class technology. It also allows smaller
businesses to act faster than big, established competitors. A study on disaster
recovery eventually concluded that companies that didn’t use the cloud had to
rely on tape backup methods and complicated procedures to recover – slow,
laborious things which cloud users simply don’t use, allowing David to once
again out-manoeuvre Goliath.
15. Environmentally friendly
Businesses
using cloud computing only use the server space they need, which decreases
their carbon footprint. Using the cloud results in at least 30% less energy
consumption and carbon emissions than using on-site servers. And again, SMEs
get the most benefit: for small companies, the cut in energy use and carbon
emissions is likely to be 90%.
Weakness
1.
Legacy
systems
Small and medium-sized organisations are more likely
to embrace the benefits of the cloud than larger companies which may have complicated
legacy systems.
2.
User
attitude and control
Organisations will still need to have ‘control’ over
data and information to meet business, legal and regulatory requirements. For
many, the idea of giving up control of the hardware that carries business
critical data and outsourcing confidential customer data to a third party is an
unsettling concept.
3.
Global
economy
All segments of the cloud computing market –
Software as a Service (SaaS), Infrastructure-as-a-service (IaaS) and Platform
as a Service (PaaS) - will be influenced by the overall state of the economy
and global demand for IT services.
Opportunities
1.
Agility
and flexibility
Smaller firms are nimble and thus more easily able
to move to the cloud and take advantage of cloud computing many cost-saving
benefits.
2.
Growth
in cloud services
Cloud services will continue to grow with increasing
competition from both established players and new entrants. Some observers
estimate that the cloud market will top $270 billion in 2020 with SaaS offering
more growth opportunities than any other segment
3.
Consolidation
in legal and regulatory environment
We will see the publication of more business
guidance from law makers and regulators over the next few years. The UK
Information Commissioner has already published his Guide to Keeping Personal
Information Online and the European Commission is currently looking into
providing standard contracts for cloud services.
Threats
1. In house IT Personnel
Many
IT professionals will need to re-invent themselves as organisations do away
with expensive IT Departments.
2. Data Protection
European
Union (EU) law states that organisations can only transfer data outside the EU
if that country’s data protection laws are adequate (to European standards).
With cloud computing, you don’t know where in the world your data is held even
though you are still liable for it.
3. Ediscovery
Should
a court or tribunal require your organisation to produce data or information
(e.g. to defend allegations of breach of contract or for an employment
disciplinary), can it retrieve them easily and guarantee that they meet
evidential standards?
4. Security
How
secure is your data? What track record does you cloud supplier have in the
technology markets. No type of data storage system is risk free and for
that reason, absolute security is impossible.
QUESTION
QUESTION
1 : What business benefits do cloud computing services provide?
What problems do they solve?
Answer:
Answer:
Cloud computing has become a standard method of
software operation for many businesses. It offers many significant advantages,
such as a potential cost savings, ease of sharing data and applications, quickly
find the desired information,
automatic backups, reduced support and maintenance costs and improve the efficiencies.
In the case they give us an example which uses cloud
computing at the marketplace that is Amazon. Amazon they use the Web services
division (AWS) to get flexible computing power and data storage. This cloud
application helps Amazon get a large amount of computing resources. According
to the customer provided information, the AWS can help Amazon separate,
allocate and arrange these resources. The AWS also can help Amazon’s computing
resources. On the one hand, Cloud computing has brought a lot of convenience
for Amazon, making them save costs and increase profits.
Moreover, cloud computing let Amazon spend more time
on other work which had more value. Because of that using cloud computing can
store large amounts of data and information, many companies are using cloud
computing. Cloud computing helps us build a large database, and can help us to
quickly find the desired information. This improves the work efficiency. “Big
Data analytical techniques are being used to deliver more detailed data and
deliver it quicker”(Top 10 business reasons to move to the cloud). Another
example for using the cloud is that it can help the company save cost, like the
Outback company who used the cloud “to avoid taxing in-house system
unnecessarily”. In the case, the Zynga Company uses cloud computing to
automatic backup data and transmits data. “Storing information in the cloud
gives you almost unlimited storage capacity” (Cloud Computing - Is it Really
All That Beneficial?). Cloud computing also can reduce support and maintenance costs by storing large
amount of data and information as backup to improve the efficiencies.
When a new game is in the test phase and the company
is not sure how many customers, they use the Amazon cloud. “Then once game
traffic stabilizes and reaches a steady number, they would move the game on to
their private zcloud”. This cloud transfer can help the Zynga Company solve the
space storage problems, and only pay for the resources it ends up using. Using
the cloud to transfer one game’s large data is easier than using other old
applications. In the case, the InterContinental company use the cloud to provide
customers with more convenient services. According to use the cloud, the
InterContinental company lets their customers receive data faster if the data is
located on a server that is physically close to them. With the development of
society, more and more multinational companies are using the cloud, not only
because of cost savings, but because people worldwide can access the cloud,
provided they have an Internet connection(10 benefit of the cloud computing).
QUESTION
2 : What are the disadvantages of cloud computing?
Answer:
Answer:
Using the cloud computing, the two major
disadvantages are security and reliability. In this case study, Amazon's cloud
service has shown significant outages in 2011 and 2012, causing serious
consequences. There are many large sites are using Amazon's cloud computing, so
Amazon's cloud computing failure will not only affect Amazon, but also spread to many other
companies and have a great impact on them. It also because the user loses
control over the software application and becomes dependent on the provider to
maintain, update and manage it. If something goes wrong, the user does not have
direct access to the software and must depend on the provider to fix the
problem. If the provider is unresponsive or unable to fix the problem quickly,
the user can experience significant issues. According to the Paris
International Group of a report, after investigation they found that each year
there are about ten hours or more the server fails. Even this small amount of downtime
can lead to large revenue losses for firms that need 24/7 availability.
Another important issue is security. “By leveraging
a remote cloud based infrastructure, a company essentially gives away private
data and information, things that might be sensitive and confidential. It is
then up to the cloud service provider to manage, protect and retain them, thus
the provider’s reliability is very critical.”(Advantages and Disadvantages of
Cloud Computing – Cloud computing pros and cons) In addition to these two major
drawbacks, another drawback is that cloud computing is prone to attack. “Store
information in the cloud could make your company vuln erable to external hack attacks and threats.”
As we know, the Internet is virtual, so we do not know what is safe. Cloud
computing can also bring substantial risks in the privacy and confidentiality
areas. By using a cloud system, your company’s sensitive data and information
will be stored on third-party servers, and you will probably have very limited
knowledge or control regarding this information. If the provider has inadequate
security or encryption systems or procedures, or if a breach of these systems
or procedures occurs for any reason, your company’s private and confidential
data may become compromised. This could have devastating effects, and could
cause legal problems for your company if third party confidential information
(for example, customer information) is compromised.
QUESTION
3 : How do the concepts of capacity planning, scalability, and TCO
apply to this case? Apply these concepts both to Amazon and to subscribers of
its services.
Answer:
Answer:
Capacity planning is defined as the process of
predicting when a computer hardware system becomes saturated to ensure that
adequate computing resources are available for work of different priorities and
that the firm has enough computing power for its current and future needs.
Indeed, Amazon must plan its future needs to be capable of providing sufficient
computing power for both AWS and Amazon retail services, a lack of which will
result in the a fore mentioned rejection by subscribers.
Related to capacity planning is scalability, which
is defined as the ability of a computer, product, or system to expand to serve
a large number of users without breaking down. Scalability is a ability of a
system, network or process to handle a growing amount of work in capable manner
or its ability to be enlarged to accommodate that growth. Scalability relates
to both Amazon and AWS subscribers. Amazon must be able to provide its
customers with services that are scalable, as it claims to do on its website:
“Take advantage of our massive compute capacity and storage to build whatever
kinds of applications your business demands, no matter how fast it grows or how
big it gets”.
Total Cost Ownership (TCO) is a financial estimate
intended to help buyer and owners determine the direct and indirect cost of a
product or system. Amazon must provide hardware capacity planning and
scalability. With the development of information technology, Amazon will have
more and more customers. Not just Amazon, but Amazon's customer requires a
large database to store a variety of data and information. This will help the
company grow. Amazon must bear the total TCO of its services, while Amazon is
also needed to maintain the profitability of the company. However, the
services' subscribers benefit from not having to worry about these issues.
QUESTION
4 : What kinds of businesses are most likely to benefit from using
cloud Computing? Why?
Answer:
As information technology and social development, there have been more and more companies need cloud services. First, the information Internet companies need to use cloud services, such as Facebook, Google, Instagram, Blogspot, Ebay, etc. Because the cloud computing can store large information, and share the information. Second, large multinational corporations, one of the advantages about the cloud computing is that people from around the world can get a faster connection. Cloud services can help employees of multinational corporations to establish good communication channels and share the company's resources. This saves the cost of the work to help multinational companies, improve work efficiency. Meanwhile, cloud computing is not perfect, it is sometimes also appear outage. Therefore, it is recommended to use cloud computing company “would be a major risk consider using another computing service as a backup.” Enterprise-class business cloud services can be hugely beneficial, even for quite small businesses. If data security, complete technical management and maintenance, including user support, and high availability and reliability of the cloud-based software applications are important to your business, then integrated cloud services will be an excellent fit. The business can have very sophisticated and highly available IT, which can be flexibly provisioned and accessed from any device at any time for a monthly fixed price per user – it dispenses with the need for upfront capital expenditure on IT related hardware, software and overheads.
Answer:
As information technology and social development, there have been more and more companies need cloud services. First, the information Internet companies need to use cloud services, such as Facebook, Google, Instagram, Blogspot, Ebay, etc. Because the cloud computing can store large information, and share the information. Second, large multinational corporations, one of the advantages about the cloud computing is that people from around the world can get a faster connection. Cloud services can help employees of multinational corporations to establish good communication channels and share the company's resources. This saves the cost of the work to help multinational companies, improve work efficiency. Meanwhile, cloud computing is not perfect, it is sometimes also appear outage. Therefore, it is recommended to use cloud computing company “would be a major risk consider using another computing service as a backup.” Enterprise-class business cloud services can be hugely beneficial, even for quite small businesses. If data security, complete technical management and maintenance, including user support, and high availability and reliability of the cloud-based software applications are important to your business, then integrated cloud services will be an excellent fit. The business can have very sophisticated and highly available IT, which can be flexibly provisioned and accessed from any device at any time for a monthly fixed price per user – it dispenses with the need for upfront capital expenditure on IT related hardware, software and overheads.
Microsoft and Google are focusing on ‘commodity
cloud services:’ basic functionality limited customisation potential. Their
business model is based on user bases of millions of users at very low prices.
In fact, competition will be almost exclusively on price, which means levels of
customer service and support may be low. The offerings from these companies can
without question meet the needs of some businesses, but they shouldn’t be seen
as a universal solution. These companies have created much greater awareness of
the cloud model for IT but, at the same time, they have also created an
expectation that all cloud services will be very low cost. The reality is that
enterprise-class sophistication and customised services that will fit perfectly
with developed business processes will cost substantially more than basic
‘out-of-the-box’ software functionality that can’t integrate with other parts
of a company’s IT infrastructure.
CONCLUSION
The use of cloud
computing utility has increased significantly in recent years and it appears to
be a natural evolution of the data centre to execute computing and storage in a
more scalable way. With such a significant increase, the market is growing
quickly and more companies are providing new services with better features,
including isolated services.
With greater
flexibility, lower infrastructure cost, and lower operations overhead, there’s
a lot to love about a move to a cloud architecture and with private and hybrid
cloud options offering all the control and transparency an organization could
want, there’s no reason to fear cloud computing anymore. We
predict cloud computing will grow, so developers should take it into ac-count.
Regardless of whether a cloud provider sells services at a low level of abstraction
like EC2 or a higher level like AppEngine, we believe computing, storage, and
networking must all focus on horizontal scalability of virtualized resources
rather than on single node performance.
This case study is very helpful for me. Thank you sister Nadia.
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