Cloud Basics
Cloud Basics
Understand the concepts around cloud computing and why organizations use the
cloud.
Explore the five essential characteristics of cloud computing.
Examine essential service and deployment models within cloud concept architecture.
Learn about cloud brokers and why they are an important part of cloud
deployments.
This first module of the course focuses on basic cloud computing concepts, key structural
aspects, and the accelerating pace of adoption.
Information technology has gone through important changes over the years. In order to
understand where we are, it’s important to understand where we have been. This short
history will help you appreciate why cloud computing is fundamentally different than
traditional IT.
For our purposes, the first age of computing was the 1970s, when the focus was on big
infrastructure—mainframes, big point-to-point networks, centralized databases, and big
batch jobs. Toward the end of the decade, terminals evolved into personal computers, while
networks went from hierarchical to decentralized, with a broader, generally more numerous
collection of servers, and storage scattered throughout an organization.
While batch work still existed, many programs became interactive through this age,
eventually gaining more advanced visual interfaces along the way. Infrastructure tended to
be associated with particular applications and important applications generally demanded
enterprise-grade (read: expensive) infrastructure. This period also saw the rise of databases.
Databases were important to business because they held the business data that was
manipulated by the applications in the execution of business processes. This data was
typically structured, hierarchical, and tightly linked to the associated business processes.
Changes in business processes required changes in the underlying database tables and logic.
This approach therefore demanded prior knowledge of all aspects of those processes.
Business applications were written as tightly coupled interfaces to the data-laden backend,
application state found a home in the server, and client-server architectures became central
to business.
2). Computing Second Age
The second age heralded the rise of the internet—Sun, Cisco, Mosaic (which became
Netscape), Web 1.0, eBay, Yahoo, baby.com, and the first internet bubble. It also drove the
development and near-ubiquity of easy-to-use, visually attractive devices that could be used
by nearly everyone.
The biggest technical contribution of the second age was in the network itself. In being
forced to deal with the possibility of massive network failures caused by a nuclear attack,
researchers endowed their invention with the ability to self-organize, to seek out alternate
routes for traffic, and to adapt to all sorts of unforeseen circumstances. The single point of
failure that was typical of mainframe-inspired networks was removed, and in one fell swoop
the biggest technological barrier to scaling was eliminated.
Businesses moved quickly in exploiting the new internet, immediately grasping the inherent
value of leveraging their tightly coupled client-server applications over the network. As local
area networks grew to globally-connected wide area networks, network latency and
application timeouts made tightly coupled client-server business applications more and
more unreliable.
The third age saw the explosion of data and wireless mobility. Email and social media made
unstructured data more important than structured data. Early in the second age Yahoo
started “indexing the internet,” which for some time was mostly manually constructed.
While this was sufficient for a while, it soon became apparent that manually built indices
could never keep up with the growth of the internet itself. Several other indexing efforts
began—including AltaVista, Google, and others—but it was Google where everything came
together.
Google realized that the precipitous drop in the cost of storage and rise in the importance of
unstructured data had simultaneously reduced the business effectiveness of highly
structured databases and associated structured query languages. They revolutionized
internet search by automating it with map-reduce, no-SQL, and AppEngine, an early
platform-as-a-service. Amazon Web Services innovated business infrastructure though the
use of “brutal standardization” and API-driven infrastructure-as-a-service. Salesforce.com
rode their Force.com PaaS to becoming the world’s first billion-dollar software-as-a-service
company. With these business models as proof points, cloud computing was born as an
economic model.
Growth of the wireless network, rapid adoption of mobile devices, widespread use of
browsers (thin clients) as the business application interface, and the use of virtualization to
improve resource utilization made traditionally-designed, tightly coupled applications
almost useless. Software developers quickly adopted Representational State Transfer (ReST)
and created loosely-coupled applications where transaction state was moved to the client
and no-SQL proved its business value processing unstructured data. With these
reverberations, cloud computing was reborn as an operational model.
The economics of data storage led to the use of content-addressable storage, flat storage
architectures, and internet scaling. With infinite scalability and consistent responsiveness,
database design and database tuning were no longer required.
Here is a list of several resources from organizations that offer cloud computing standards.
Visit those resources that appeal/apply to you.
1). Introduction
Cloud computing is often thought of as a technology, but another way to define it would be
as a paradigm shift in the business and economic models for Information Technology (IT).
Provisioning and consuming IT services through cloud computing can lead to a significant
cost savings. This cost savings is realized through the pooling of configurable computing
resources.
According to the National Institute of Standards and Technology (NIST), resource pooling is
one of five essential characteristics of cloud computing. Different physical and virtual
resources are dynamically assigned and reassigned, according to consumer demand.
Note: Resource pooling defines the ability of a cloud to serve multiple consumers using a
multi-tenant model.
For the cloud service provider, cloud computing economics depends on the expected
consumption characteristics of the targeted customer population. The cloud provider seeks
to predict these factors, then balance the minimum amount of physical IT resources to
service a maximum level of demand.
Properly balancing these factors across a well-characterized user group can lead to ~30%
savings in IT resources. This enables the near-real-time modification of the underlying
physical infrastructure required for the delivery of the desired “illusion of infinite resources”
that is synonymous with a cloud computing user’s experience.
Cloud service providers bring massive economies of scale to computing and deliver
computing resources on demand. Before cloud computing, companies had to make ever-
growing capital expenditures (CapEx) in computing resources to implement new information
systems, and to accommodate potential peak loads. This led to overcapacity and
underutilization.
Cloud computing services are consumed using a variable operation expenditure (OpEx)
model, which:
Cloud computing lowers prevailing prices by driving the industry away from highly-
customized independent architectures and towards:
Pooled resources
Shared architectures
Flat-rate pricing models
Pay-per-use pricing models
5). IT Governance using Enterprise IT
Acquisition requirements are delineated using the traditional request for proposal (RFP) or
request for quote (RFQ), and vendor selection is driven by vendor compliance with the
specified requirements and a negotiated price.
When enterprises opt to use managed service providers for information technology,
compliance with enterprise-imposed IT governance is typically required. The cost of
delivering a compliant solution is generally recouped by the provider during a mutually-
agreed minimum service period.
Cloud service providers fund and build their infrastructure based on the forecasted
requirements of an IT marketplace segment and a forecasted penetration into that market,
not a specific marketplace customer. Service offering line sheets and pricing models are set
based on CSP investment, marketplace uptake of their service offerings, and realized CSP
profit. IT governance is typically a shared model, within which CSP responsibilities are
generally fixed and consistent across all CSP customers.
Any enterprise-consuming CSP services must conduct sufficient due diligence in order to:
A 2009 Booz Allen Hamilton study concluded that a cloud computing approach could save
from 50%-67% on the lifecycle cost for a 1,000-server deployment. A separate Deloitte study
confirmed that cloud computing deployments delivered greater investment returns with a
shorter payback period when compared to the traditional on-premises option.
These studies prove that when implemented properly, the IT service delivery model can
drastically reduce the operations and maintenance cost of IT infrastructures.
Businesses must always deal with the disparity between the capacity to produce products
and deliver services—which is fixed in the short term—and the demand for those products
and services—which is almost always variable at any time scale. Customer demand in just
about any circumstance is volatile.
While some tactical measures can be taken to alleviate some scenarios, cloud-computing
models have been shown capable of economically solving the so-called “demand dilemma”
when applied to cloud computing-compatible business models.
Conversely, if capacity is sized to the baseline, there will be insufficient resources to handle
spikes.
Transactions not served represent demand for the products or services that the business
would have monetized, resulting in lost revenue or lost worker productivity.
Public cloud adoption has historically delivered significant enterprise IT cost savings through
significantly reduced capital expenditures, staff level reductions, and increased operational
efficiencies. These well-documented results are driven primarily by the public cloud service
provider’s ability to deliver a continuously improving level of service at lower cost and
higher profit margins.
Consistency in these trends is reinforced by global scale, very low marginal cost to deliver
services to additional customers, and steadily improving CSP operational efficiencies. A
public cloud service provider ROI model example is shown here.
14). Cloud Computing Return on Investment
Cloud economic savings can be measured through the following key performance indicators
(KPIs):
The ROI model can also include operational metrics, such as the speed of cost reduction,
optimizing cost of capacity, optimizing ownership use. Business value can also be gleaned
from process time reductions, product quality improvements, and customer experience
enhancements.
KPIs should have defined metrics based on either ISO 27004, relevant ISO publications,
negotiated Service Level Agreements or NIST Special Publication 800-55. Within each ROI
domain, targeted values should address:
Cultural changes are also almost inevitable because these transitions normally result in
some unique mixture of traditional enterprise IT, services from a managed service provider,
and cloud service consumption.
When updating enterprise IT governance, corporate executives will have the task of
codifying a proper middle ground among these very different operating models.
16). Which of the following essential characteristics of cloud computing most directly
affects the economic model for Information Technology?
That is correct!
Provisioning and consuming IT services through cloud computing can lead to a significant
cost savings. This cost savings is realized through the pooling of configurable computing
resources, also known as resource pooling.
17). A cloud service provider must learn to balance which two factors:
That is correct!
The cloud provider must balance the minimum amount of physical IT resources to service a
maximum level of demand. Properly balancing these factors across a well-characterized user
group can lead to ~30% savings in IT resources.
Choose an option for each and select the submit button. Review your answers and then
continue to the next module.
d). Cloud Concepts and Characteristics
1). Module Overview
Using the NIST model, this module examines the five essential characteristics, three service
models, and four deployment models of cloud concept architecture.
Module Objectives:
Amazon Web Services (2013. May 6). What is cloud computing? [Video file].
https://www.youtube.com/watch?v=jOhbTAU4OPI
Please view this short video produced by Amazon Web Services, explaining the basics of
cloud computing. From May of 2013.
Microsoft Learning (2010, December 15). Cloud computing: What is cloud computing?
[Video file]. https://www.youtube.com/watch?v=uYGQcmZUTaw
Please watch this short video produced by Microsoft Windows Azure, explaining the basics
of cloud computing and describing one real-world scenario. From December 2010.
What Is Cloud Computing? What It Means & Why It’s Smart Business
Cloud-based services for businesses are web-based applications that run on servers located
in remote locations, rather than in-house. When a company or organization talks about
‘moving to the cloud,’ this marks a shift from dedicated hardware (which depreciates over
time) and software (which is costly and cumbersome to upgrade), to a shared cloud
computing infrastructure or software-as-a-service (SaaS) that lets you outsource the
upkeep, improvement and storage of these applications while simply paying-as-you-go.
Because cloud-based applications run on the web, IT departments can implement these
programs and onboard everybody in their company in a relatively short time, while their
management and maintenance is primarily taken care of by the SaaS provider. Basic
infrastructural software engineering often isn’t a task worthy of the people staffing an IT
department, and cloud computing allow them to instead devote energy to meaningful
problem solving. When IT is freed-up from tending to low-value projects, they can focus on
strategic activities that add significant value to the company’s intellectual property and,
ultimately, the company’s bottom line.
Cloud computing was originally the domain of early adopters looking to innovate their IT,
but today it’s become a backbone of even the Fortune 500, other major international
organizations, universities and some branches of national governments. Why? Cloud
infrastructure can be seamlessly and quickly integrated into existing enterprise applications;
it simply places another layer on either traditional, but also other cloud-based, software.
Another important feature of SaaS is the ability to easily scale its reach within an
organization, because its implementation doesn’t require inordinate integration
requirements — IT personnel can often onboard new users and machines in just a matter of
clicks. This ‘low-risk’ deployment is, in part, due to the cloud’s efficacy at eliminating
traditional software and hardware from your infrastructure.
The benefits of the cloud are oft-extolled, but concerns about security, particularly for
enterprise cloud solutions, warrant further consideration here. It can be the case that
certain in-house administrators might lack extensive IT training, particularly in the realm of
security. When these professionals are called-upon to implement data security standards
for infrastructure development, steep learning curves might be involved. For SaaS providers,
whose very business is to adhere to security procedures and policies for the benefit of their
clients, security is a preeminent aspect of their development framework for cloud
computing.
For CIOs or other IT decision makers, who must make high-stakes decisions around security,
it’s important to ask for validation and verification of data encryption standards before
contracting with them, gathering sufficient basic knowledge about how a cloud computing
service manages security. Another valid concern within organizations is how people interact
with cloud-based applications. Encourage people to create complex, and thus substantially
more secure, passwords in order to further maximize security when using a cloud-based
service.
Reading: What is Cloud Computing? What It Means and Why It's Smart Business
Ezeep, Inc. (2019). What is cloud computing? What it means & why it’s smart business.
Ezeep Technology. © 2019 ezeep, Inc. https://www.ezeep.com/what-is-the-cloud-what-
cloud-computing-means-why-it-matters-for-your-business/
This article on ezeep.com explains why using cloud computing can be a smart business
decision.
Using the NIST model, this module examines the three service models and four deployment
models of cloud concept architecture.
Module Objectives:
Dining table
Plate, fork, knife
Oven
Cake Pan
Flour
Sugar
Managed by you
One way to remember the cloud computing service models is to think about ways you could
go about making a cake. One way to make it would be to bake it at home, using your own
ingredients, the oven in your own kitchen, then serving it in your own dining room with your
own plates and napkins. This is similar to Traditional IT, which required that each
organization purchase and maintain their own IT infrastructure.
Another way to make that cake would be to get a little help from Betty Crocker or Duncan
Heinz, and choose to purchase a pre-made mix. You would still use some of your own
ingredients, such as eggs or butter, and of course still cook it in your own kitchen and serve
it in your own dining room. This is similar to Infrastructure as a Service, in that some of the
process is managed by a vendor who provides their product for your use and charges a
price.
Bake it at home (Traditional IT) Buy Cake Mix, Bake it at Home (IaaS)
Dining table Dining table
Plate, fork, knife Plate, fork, knife
Oven Oven
Cake Pan Cake Pan
Flour Flour
Sugar Sugar
Managed by you
Managed by a vendor
Managed by you
Managed by a vendor
There is yet another way to make that cake – to dine out! To move the entire cake-eating
process to someone else’s dining room, along with the baking and serving and of course the
dishes. In this scenario, the entire process is managed by a vendor. You only need to choose
from the menu, pay and enjoy! This is very similar to Software as a Service.
Bake it at home Buy Cake Mix, Bake Buy a Cake, Serve it Dine at a Restaurant that
(Traditional IT) it at Home (IaaS) at Home (PaaS) Serves Cake! (SaaS)
Dining table Dining table Dining table Dining table
Plate, fork, knife Plate, fork, knife Plate, fork, knife Plate, fork, knife
Oven Oven Oven Oven
Cake Pan Cake Pan Cake Pan Cake Pan
Flour Flour Flour Flour
Sugar Sugar Sugar Sugar
Managed by you
Managed by a vendor
Now that we have examined the division of responsibility in baking a cake, it’s time to apply
the metaphor to IT environments. Take a look at the chart shown here. On the next few
pages you will need to identify these environments by identifying how these responsibilities
would be managed – either by you (or your company) or by a vendor.
Managed by you
Managed by a vendor
Traditional IT is like baking a cake at home. Remembering our metaphor, indicate who
would manage each level in a Traditional IT environment – you/your organization or a
vendor.
Indicate who would manage each level in a Traditional IT environment – you/your
organization or a vendor.
5). Categorize Cloud Services by Service Model
Classify each Cloud Service Provider to it's correct Service Model. If you are unfamiliar with
the Provider, feel free to browse the internet and research these popular Cloud Service
Providers.
Choose an option for each and select the submit button.
This module presents the changing definition of cloud brokers and examines why they are
an important part of cloud deployments.
Module Objectives:
Dell Technologies (n.d.). Cloud computing services. Dell EMC Glossary. © 2019 Dell Inc.
https://www.dellemc.com/en-us/glossary/cloud-computing-services.htm
Please review this succinct description of cloud computing services offered by Dell
Technologies, which includes glossary terms and definitions.
Watts, S. (2017, August 21). Cloud Service Brokerages: How CSB’s Fit in a Multi-Cloud World
[Blog post]. Retrieved from https://www.bmc.com/blogs/cloud-service-brokerages-how-
csbs-fit-in-a-multi-cloud-world/.
In this article from bmcblogs, writer Steven Watts discusses cloud service brokerages,
types of cloud brokers, and the benefits of using a cloud broker. Published in August of
2017.
5). What is Cloud Computing? Everything You Need to Know About the Cloud,
Explained
Reading: What is Cloud Computing? Everything You Need to Know About the Cloud,
Everything Explained
Ranger, S. (2018, December 13). Updated: An introduction to cloud computing right from
the basics up to IaaS and PaaS, hybrid, public, and private cloud, AWS and Azure. ZDNet. ©
2019 CBS Interactive. All rights reserved. https://www.zdnet.com/article/what-is-cloud-
computing-everything-you-need-to-know-from-public-and-private-cloud-to-software-as-a/
Please read this article on ZDnet, introducing cloud computing with IaaS and PaaS, hybrid,
public, and private cloud.
The URL of the Article is saved in the Same Folder (Current Folder)
6). 2019 Cloud Security Report by Cybersecurity Insiders
The URL of the PDF File is saved in the Same Folder (Current Folder)
Erl, T., Puttini, R., & Mahmood, Z. (2013). Cloud computing: Concepts, technology &
architecture. Upper Saddle River, NJ: Prentice Hall. ©2013 Arcitura Education Inc. ISBN-13:
9780133387513 (ePub); 9780133387520 (print).
http://ptgmedia.pearsoncmg.com/images/9780133387520/samplepages/0133387526.pdf
DOI: 10.1145/2632434.2632462
Rountree, D., Castrillo, I., & Jiang, H. (Eds.). (2013). The basics of cloud computing:
Understanding the fundamentals of cloud computing in theory and practice. Amsterdam,
Netherlands: Syngress, an imprint of Elsevier. Copyright (c) 2014 Elsevier Inc. All rights
reserved. ISBN-13: 978-0124059320.
https://www.sciencedirect.com/book/9780124059320/the-basics-of-cloud-computing
The URL of the PDF File is saved in the Same (Current) Folder.