Cloud Computing in the Enterprise An Overview. For INF 5890 IT & Management Ben Eaton 24/04/2013

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1 Cloud Computing in the Enterprise An Overview For INF 5890 IT & Management Ben Eaton 24/04/2013

2 Cloud Computing in the Enterprise Background Defining the Cloud Issues of Cloud Governance Issue of Cloud Integration

3 Cloud Computing in the Enterprise Background Defining the Cloud Issues of Cloud Governance Issue of Cloud Integration

4 Emerging Phenomenon In Public Discourse

5 Emerging Phenomenon Forecast growth in industry revenues associated with Cloud Computing (Forrester): $61Bn for 2012 (Kirsker, 2012) Growing to $241Bn by 2020 (Dignan, 2011) Cloud represents a $3.3 trillion transformation that s going on in the computing world Microsoft are betting the company on cloud (Steve Ballmer CEO Microsoft 2011)

6 Gartner s Hype Cycle for 2012

7 There really is substance to the Cloud Gartner Says Worldwide Cloud Services Market to Surpass $109 Billion in 2012 Source: Gartner Newsroom Gartner 18/09/2012

8 Cloud Computing in the Enterprise Background Defining the Cloud Issues of Cloud Governance Issue of Cloud Integration

9 Cloud Computing Definition U.S. National Institute for Standards and Technology (NIST): Cloud computing is a model for enabling ubiquitous, 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 (Mell & Grance, 2011)

10 Technical Origins of Cloud Computing Computing as a service and accessing remote and distributed hardware and software resources over a network is not a new concept. 1960's notions of "computing utilities" (Cafaro & Aloisio, 2011; Kleinrock, 2005) Gradual development over next forty years, e.g. Distributed IT infrastructures in the 80's and 90's Application Service Provision (ASPs) in the 90's and 00 s However they were all constrained by a lack of computing power and network bandwidth. (Venters & Whitley 2012)

11 Technical Origins of Cloud Computing Factors conspired at the turn of the millennium to facilitate Cloud Computing: Rise of cheap computing power and network bandwidth The rise of large scale computing architectures and enabling technologies around Grid computing enabling affordable high power computing tasks Adaptation of these architectures for large data centres of commodity hardware to service the IT business needs of organisations such as Google, Amazon and Microsoft Commercialisation of their computing architectures in ways that could be sold as the first Cloud Computing services. (Venters & Whitley 2012)

12 In its most Basic Form It is a means of: outsourced shared-computing where resources are virtualised, distributed and pooled amongst external data centres accessed by users through the internet (Venters & Whitley 2012)

13 Key Components of Cloud

14 How is it delivered Service Models Customers may purchase: Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS)

15 Infrastructure as a Service (IaaS) Virtualisation of physical Compute Assets Storage Processing No control over underlying cloud infrastructure Control over ability to deploy and run software operating systems and applications E.g. Amazon Web Services (AWS) Used for: File Backup Temporary Processing Campaigns, Product Design

16 Platform as a Service (PaaS) Virtual development environment Develop & deploy applications for the Cloud No control over underlying Cloud infrastructure Control over deployed application e.g. provisioning and access E.g. Google App Engine, Microsoft Azure Used for: Startups quick way of deploying Cloud apps Enterprise productivity - apps for internal to the org Enterprise storefronts means of developing interface between business and public

17 Software as a Service (SaaS) Access to Service Providers Applications that execute on the Cloud Accessed via thin client interface such as a web browser (or smartphone app) No control over underlying Cloud infrastructure Minimal control over application settings E.g. Gmail, Google Docs, DropBox, Facebook, Evernote etc Uses: You name it

18 From: Developer Central - https://devcentral.f5.com/blogs/news/scalen-virtualization Virtualization

19 Multi Tenancy Architecture On-Premises Data Centre (e.g. Private Cloud) Off-Premises Data Centre (e.g. Public Cloud) From: Cloud Security Alliance - https://wiki.cloudsecurityalliance.org/guidance/index.php/cloud_computing_architectural_framework

20 Essential Characteristics On Demand Self Service Commoditised Measured Service Variable Cost Model, pay for capacity you use Resource Pooling High Utilisation & Economies of scale Rapid Elasticity Commission / Decommission Capacity Broad Network Access Accessibility over internet

21 Which meets Organisations desires to Simplify the management of their IT resources (hardware, middleware and software) resources Scale up (or down) available resource capacity dynamically on demand Reduce and simplify their costs Whilst ensuring levels of data security, service latency and service availability are at least maintained and preferably improved.

22 Deployment Models So far so good but Cloud can be deployed in different ways Public Private Hybrid Community Which have implications on the organisation

23 Public Cloud Multi-tenancy architecture open to all E.g: Amazon AWS, Google App Engine, Microsoft 365 etc Benefits of computing with: Significant Cost Savings (Economies of Scale, PAYG, Low Overheads) Hi Performance (Super computer power,latency) Very Flexible (switching on & off Virtualised Hardware and Software) Popular with Small Medium Businesses = Access to Power Comes at cost of loss of control Lack of transparency Sharing of computing assets Your competitor could be using the neighbouring VM how secure?

24 Private Cloud Not shared - operated solely for a single organization. Hosted / Non Hosted Solutions Benefit: Under enterprise control Whilst VM architecture essential, it will lack benefits of sharing: Cost; Scalability; Performance

25 Cloud Computing in the Enterprise Background Defining the Cloud Issues of Cloud Governance Issue of Cloud Integration

26 Governance Part I Concerns how enterprise IT department manages cloud services with different stakeholders such as:- With rest of the enterprise organisation With the State With Suppliers (Cloud Service Providers & Vendors) 26

27 Governance Part 2 With rest of the enterprise organisation Concerns managing cloud services in house E.g. sourcing; integration with portfolio; policies; usage; lifecycle How to prevent Lines of Business self provisioning their own services.. DropBox Demands IT changes its role and skill set With the State Compliance with local laws Data laws and regulations increasingly by industry vertical Compliance with international laws Complexity of competing jurisditions (customer, CSP, host) 27

28 Governance Part 3 Governance relationship between CSPs & customers Contractual relationship Can have similarities to outsourcing contract Tensions between the different parties Enterprises desire tight & tailored contracts offering Equivalence to In house systems Measures to minimise perceived risk (see next page) Commitment to detailed levels of service allowing enterprises to retain control Public CSPs desire loose & general contracts reflecting Commodised XaaS style services Risk Avoidance Minimum SLAs (a la Amazon) Outcome Enterprises naturally prefer to safety of private cloud Opportunity for CSBs to broker the risk of guaranteeing service. At a price. 28

29 Example Risks Geographic Risk Data Security Risks Contractual Risks Architectural Risk Ecosystem Risk Whose jurisdiction? Levels of latency What happens when you move CSP? What happens if your CSP goes bankrupt? Who does your CSP store your data with? How do they migrate your data? What is supplier power to change terms? How secure are multi tenancy architectures really? "Lock in" to vendors integrated cloud stack Vendors architectural bottlenecks Lack of community / network effects fail to take off Long & complex supply chain within ecosystem lack of visibility and control unpredictable outages - strong as your weakest link 29

30 Cloud Ecosystem PaaS CSP e.g. Google SaaS CSP e.g. Microsoft NIST Reference Architecture IaaS CSP e.g. Amazon Cloud Broker e.g. Jamcracker, Liaison Hardware Vendor e.g. HP Facility Provider e.g. Rackspace Cloud Carrier e.g. Akamai Cloud Service Management e.g. Vordel Cloud Security & Privacy e.g. Level 7

31 The Decision to go Public / Private How much control do you want to risk giving up? How much do you wish to spend / save? Core data / apps Customer / HR / Finance & Accounting Typically on Private Cloud Non Core data / apps Productivity / Supply Chain Management / Product Data Possibly on Public Cloud Unless you are SMB when it all goes on to Public Cloud

32 Cloud Computing in the Enterprise Background Defining the Cloud Issues of Cloud Governance Issue of Cloud Integration

33 Integration, Architecture & Standards Part 1 Integration of Cloud Services essential part of hybrid models of Cloud & migrating end-end legacy systems to the Cloud At the level of infrastructure, data, applications and management of cloud services Cloud architecture is seen as the key element of Cloud integration At the level of design rules and interfaces such as APIs A key debate concerns whether interfaces need to be standardised or not 33

34 Integration, Architecture & Standards Part 2 Formal (de jure) attempts at standardisation of cloud interfaces appear unsuccessful e.g. early attempts by Cloud Computing Interoperability Forum Some in industry think that it is too soon to standardise Dominant platform owners as a force against standardisation (obviously) Numerous informal standards are emerging De facto standards of major platform owners (Amazon, Google, Microsoft) Open Standards (e.g. OpenStack) of larger players in remainder of ecosystem (e.g. vendors like HP) Alternatives to standards are emerging (API translators acting as bridges) 3 rd party libraries. E.g. Red Hat s Delta Cloud Cloud Service Brokers Outlook Formal standards some way off De Facto & Open Standards continue to establish & compete Opportunities for intermediates like Cloud Service Brokers 34

35 Predictions in Cloud Market Industry still in early stages & immature Technology still evolving Enterprise perceptions of risk evolving Enterprises will continue to struggle to come to terms with public cloud But eventually perceived risks will be overcome Its benefits will outweigh its disadvantages Changing balance between SaaS / PaaS / IaaS SaaS will eclipse IaaS by value SaaS solutions will increasingly segment on verticals PaaS will grow and substitute sales of SaaS & IaaS 35

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