● Self-Service support

● Service Function
● Service Economics
● Service chain Entity

DEPARTMENT OF INFORMATION
TECHNOLOGY

CCS336 CLOUD SERVICE

MANAGEMENT

UNIT -2

CLOUD SERVICE STRATEGY

✔ Cloud Strategy
Fundamentals

✔ Cloud Strategy
Management
Framework

✔ Cloud Policy - Key

Driver for Adoption

✔ Risk Management

✔ IT Capacity and
Utilization

✔ Demand and Capacity

matching - Demand
Queueing

✔ Change Management

✔ Cloud Service
Architecture
● Service Consumption
● Service usage and Billing
● Service Security
● Service monitoring and Control
1. Service Consumption: (how much bandwidth data is consumed)

- Service consumption is based on the usage of cloud resources based on entitlement or subscription.

- Parameters: It includes

a. Offering (type of service models used)

b. Consumption component (the way the resources are used – Pay-as-you-Go-, reserved instances,
spot instances, subscription, free tier, etc..)

c. Consumption method – Effective organization of resources (optimization)

d. Consumption pre-requisite (well structured, efficient goals)

2. Service Usage and Billing

- It is used to generating bills for the resources used based on predefined policies.

- Functionalities involved:

a. Metering – measuring and tracking of resource usage

b. Billing – Generating invoice

c. Unit of Measurement – Specific metrics used to measure the resource consumption

d. Instrumentation - process of adding monitoring, tracking, and measurement capabilities to various

components and services
3. Service Security

- It offers security of cloud-based services, resources, and data

- It includes

a. Consumer access

b. Authentication and authorization

c. Entitlement / usage permission

4. Service monitoring and Control

- It includes

a. Monitoring boundary

b. Instrumentation

c. Map – Graph representation about utilization of resources status, health and performance.
5. Self-Service

- It enables auto-fix scripts / automation, access to knowledge nuggets

6. Service support

- It covers SLA commitments, resolver groups and product owners.

7. Service Function

- It includes
✔ Service name 8. Service Economics
✔ Function ▪ Status
✔ Description ▪ Utility
▪ Warranty
 - It deals with the principles, costs and benefits of cloud computing.

- It includes
✔ Cost management
✔ Cost model
✔ Charge back / show back
9. Service chain Entity

- It defines a sequence or combination of interconnected cloud services or resources that work together to
deliver a specific functionality or application.

- It includes
✔ Creator
✔ Provider
✔ Supporter
✔ Integrator
✔ Orchestrator
✔ Aggregator
✔ Consumer
✔ Payer
1.CLOUD STRATEGY FUNDAMENTALS (C311.2, PO 1,4,11)

❖ Strategy: It involves setting goals and priorities, determining actions to achieve the goals, and
mobilizing resources to execute the actions.
❖ Cloud strategy: It is the plan an organization follows to host its IT infrastructure in a cloud
environment.

❖ GOAL:

1. Optimize the business outcomes (speed, resilience[elasticity] and agility) (or) Ensure Effective
performance of the infrastructure
2. Enable distributed based cloud architecture for different services
3. Growing the public to improve the skills internally
4. Minimize the risks and challenges
❖ It refers to the core principles and considerations that organizations should take into account when
adopting and implementing cloud technologies.
❖ Cloud Strategy must support (cloud management)
a. Cost
b. Service level
c. Functionalities
❖ CLOUD STRATEGY PRINCIPLES:

a. Trust
b. Enablement
c. Enterprise Risk
d. Capability
e. Cost-benefit
f. Accountability
❖ FUNDAMENTAL ASPECTS FOR STRATEGY FORMULATION

1. Business Objectives and Alignment - align the cloud strategy with the overall business strategy to
ensure that technology decisions are in line with the company's direction.
2. Workload Assessment - Evaluate existing applications and workloads to determine which ones
are suitable for migration to the cloud.
3. Selection of suitable Deployment Models
4. Selection of suitable Service Models to align with the business goals
5. Security and Compliance - Security strategy that addresses data protection, access control,
encryption, and compliance requirements specific to your industry and jurisdiction.
6. Data Management and Governance – Define how data will be managed, stored, and accessed in
 the cloud. Establish data governance policies to ensure data quality, privacy, and compliance.
7. Cost or financial Management
8. Migration Plan
9. Vendor Selection - Evaluate and choose a cloud service provider based on factors such as service
offerings, pricing, geographic availability, reliability, and support.
10. Performance and Scalability
11. Resilience and Disaster Recovery
12. Training and Skill Development
13. Change Management and Training
14. Performance Monitoring and Management
15. Continuous Improvement
16. Communication and Reporting
❖ MAIN PHASES:

1. Strategy Phase
- It is the initial and foundational part of strategy steps.
- It sets the foundation for successful cloud adoption by aligning technology decisions with business goals and
considering the organization's unique needs and challenges
2. Planning Phase
- Perform the problem analysis & risk analysis for switching to cloud technology
- Steps:
a. Development of Business Architecture
b. Development of IT Architecture
c. QOS development requirement
d. Development of Transformation plan
3. Deployment Phase

❖ STRATEGY LIFE CYCLE :

1. Planning for utilizing cloud technology

2. Capabilities of an enterprise
3. Target architecture require
4. Transition planning & gap analysis
5. Planning to implement cloud
6. Governance & significance of SOA (Service-Oriented Architecture)

2.CLOUD STRATEGY MANAGEMENT FRAMEWORK (C311.2, PO 1,3,5,10)

❖ Definition: It is a structured approach that guides organizations through the process of developing,
implementing, and managing their cloud strategies.
❖ It provides a systematic way to align business objectives, technology decisions, and operational
 considerations when adopting and utilizing cloud services.
❖ It is essential for providing a structured, consistent, and effective approach to managing cloud
services.
❖ It helps organizations mitigate risks, optimize resources, ensure security and compliance, and align
cloud strategies with business objectives in a rapidly evolving technological landscape.
❖ NEED FOR CLOUD SERVICE FRAMEWORK:

1. Need common standard ad practices (wide range of services, technologies and providers)
2. Complexity management (hybrid or multi-cloud setups)
3. Efficiency
4. Scalability
5. Security and compliance
6. Training and onboarding (easy)
7. Change management (adopt with new technologies in cloud)
8. Resource management
❖ COMPONENTS OF CLOUD STRATEGY MANAGEMENT FRAMEWORK:

1. Assessment and Analysis - Workload assessment (identify current IT landscape, business needs)
2. Business Objectives and Alignment (vision and objectives)
3. Selection of suitable Deployment Models
4. Selection of suitable Service Models to align with the business goals
5. Governance and policies (security, compliance, data management and budgeting)
6. Data Management and Governance – Define how data will be managed, stored, and accessed in
the cloud. Establish data governance policies to ensure data quality, privacy, and compliance.
7. Cost Management
8. Migration Plan
9. Vendor Selection - Evaluate and choose a cloud service provider based on factors such as service
offerings, pricing, geographic availability, reliability, and support.
10. Performance and Scalability
11. Resilience and Disaster Recovery
12. Training and Skill Development
13. Change Management and Training
14. Performance Monitoring and Management
15. Continuous Improvement
16. Communication and Reporting

❖ FRAMEWORK ARCHITECTURE:
3.CLOUD POLICY (C311.2, PO 1,3,4,11)
❖ Cloud security policy: It is formal guidelines companies adhere to that help ensure safe and secure operations
in the cloud. (or) set of rules, guidelines, and principles that an organization establishes to govern the use,
management, and security of cloud computing resources and services.

❖ It is an essential part of your cloud security strategy and helps your organization properly store and protect your critical data
assets.

❖ Cloud policies are designed to ensure that organization's business goals.

❖ Entire Life cycle: A cloud policy is applicable throughout the entire lifecycle of cloud adoption.

❖ Guidance: It serves as a guiding document that outlines the rules, guidelines, and best practices for
using, securing, and managing cloud resources effectively.

❖ Not adopting cloud policy: If not adopting a cloud policy can result in a lack of consistency, security
vulnerabilities, compliance risks, inefficiencies, and missed opportunities.
❖ POLICY ENSURES

a. Confidentiality
b. Integrity
c. Availability of data stored
d. Accessing of data
e. Manipulation of data
❖ KEY ASPECTS:

a. Data Security and Privacy: - Access control and authentication

 b. Access and Identity Management – user access controls
c. Resource Provisioning and Management
d. Cost Management
e. Vendor Management – selection of CSP
f. Disaster Recovery and Business Continuity
g. Change Management
h. Cloud Service Adoption
i. Monitoring and Incident Response
j. Training and Awareness

4.RISK MANAGEMENT (C311.2, PO 1,3,4,11)

❖ Risk management: Risk management in cloud services management involves identifying, assessing, mitigating,
and monitoring potential risks associated with using cloud computing resources and services.

❖ Effective Risk Management: Proactive risk control

❖ Life Cycle: It needs to be applied throughout the entire lifecycle of cloud services management, from the initial
planning and assessment phases to ongoing operations and monitoring.

❖ Continuous process: Risk management is a continuous and integral part of cloud services management.

❖ Risk management life cycle: It is a structured process that organizations follow to identify, assess, mitigate,
monitor, and respond to risks.

❖ DIFFERENT RISK MANAGEMENT PROCESS:

a. Identify the risk

b. Analyze the risk

c. Evaluate the risk (ranked based on the severity)

d. Solve the risk

e. Monitor or review the risk

❖ TYPES OF RISK IN CLOUD COMPUTING:

a. Data breach - unauthorized access to the confidential data of an organization

b. Cloud vendor security risk – CSP cloud security and risk mitigation affects organization growth

c. Availability - Any internet connection loss disrupts the cloud provider's services, making the services
inoperative

d. Compliance - The service provider might not follow the external audit process, exposing the end user to
security risks

❖ STEPS INVOLVED IN RISK MANAGEMENT:

1. Risk Identification – identify the potential risk

2. Risk Assessment

3. Risk Mitigation Strategies - Develop strategies to mitigate or reduce identified risks

 4. Data security (encryption techniques)

5. Compliance and governance - policy

6. Vendor risk management - evaluate the security practices and certifications of CSP

7. Data Loss Prevention

8. Service availability

9. Change Management – It ensures that updates, changes, and configurations are carefully planned and
tested to avoid disruptions.
10. Business continuity - ensure that critical applications and data can be restored in the event of a disaster.
11. Incident Response

12. Cost management

13. Continuous Monitoring
14. Audit and reporting
15. Employee training and awareness
16. Establish Service Level Agreements (SLA) with CSP
❖ BENEFITS OF RISK MANAGEMENT:

a. Forecast probable issues (identify the risks – helps to implementing appropriate control strategies)

b. Increase the scope of growth

c. Business process improvement

d. Better budgeting

❖ BEST PRACTICES FOR RISK MANAGEMENT:

a. Better selection of CSP

b. Deploy Technical safeguards to monitor the activities of the consumers

c. Establish effective control strategies

d. Optimize cloud service model

5. KEY DRIVER FOR ADOPTION (C311.2, PO 1,3,5,10)

❖ It is the strategically move taken by an organization in order to bring the services at one common platform
pertaining to the responsibilities of an organization, with the motive to clear the cost, access the cloud storage,
mitigates the risk factors and deliver scalable services.

❖ It plays a pivotal role in shaping the strategy, benefits, and outcomes of adopting cloud services.

❖ Business Drivers:

a. Capacity Planning - Estimates the production capacity (storage, infrastructure, hardware, software,
availability of resources) needed for its products to cope with the ever-changing demands in the
market. It depends on
o Level of demand

o Cost of production
 o Availability of funds

b. Cost Reduction

c. Organizational Agility - the process by which an organization will adapt and evolve to sudden changes
caused by internal and external factors.

❖ Drivers to cloud adoption:

1. Security

2. Cost Saving or cost Efficiency

3. Efficiency

4. Flexibility and Scalability

5. Rapid Recovery

6. Increased Convenience – easy accessing

7. Speed and Productivity

8. Strategic Value [competitive edge to businesses - business agility and customer satisfaction]

9. Multi-tenancy (multiple customer share the underlying models)

10. Service and innovation (use many API and use flexible cloud tools and environments to build new and
innovative applications and process)

11. Standards

12. Sustainability

13. Rapid deployment – Cloud services enables fast provisioning of resources and deployment of
applications. (reduce time for the product enter into market)

14. Access to advanced technologies

15. Reduced IT Management Burden

16. Competitive advantage

❖ key drivers for cloud service adoption are not defined clearly, an organization may face various challenges and uncertainties
when transitioning to the cloud.

❖ Consequences of not well-defined key drivers:

a. Lack of strategic alignment

b. Unpredictable outcome

c. Inefficient resource utilization

d. Inconsistent decision making

e. Missed opportunities

f. Security and compliance risk

g. Limited adoption to advanced technologies

h. Difficult in vendor selection

6.IT Capacity and Utilization (C311.2, PO 1,4,5,10)

❖ Capacity of cloud: It defines the amount of resources, such as CPU, memory, disk space, network
 bandwidth, and concurrent users that the cloud provider can allocate to for the applications and
services.
❖ IT Capacity plan: IT defines the resources necessary to meet the organization's service requirements.
❖ Issues of no proper capacity planning: It leads to performance problems, unnecessary hardware
expenditures, and user dissatisfaction.
❖ Factors for measuring capacity plan: capacity plan is derived from the current and future utilization
for holding, storing and accommodating the software services.
❖ Survey report: servers' average utilization in the traditional data center is between 5% and 20%.
❖ Capacity management: It involves planning, monitoring, and optimizing IT resources to ensure that
they meet current and future demands while avoiding underutilization or over provisioning.
❖ Utilization: It defines the percentage of time that a component is actually occupied, as compared with
the total time that the component is available for use.
o Example: Assume for an instance if a CPU processes transactions for a total of 40 seconds during
a single minute then what is the utilization factor?
Utilization factor in percentage = 40/60*100 = 2/3 = 67%
❖ Role of Cloud Capacity Management:
a. It reduces the excess capacity occupied by the services
b. It helps to increase the business growth
c. It reduces the cost of the service
❖ IT capacity
a. Planning for Capacity - It helps ensure that the organization has the right amount of
resources to handle demand.
b. Resource Provisioning – Over provisioning (allocating more resources than necessary) and
under provisioning (allocating fewer resources than needed) can both have negative impacts
on cost and performance.
❖ IT utilization
- Utilization rates indicate how much of the available capacity is being actively used.

- Resource monitoring: Tracking metrics such as CPU usage, memory

consumption, storage usage, and network bandwidth
- Optimization: Reallocating resources to achieve better efficiency and
performance.
❖ Benefits of Effective capacity and Utility management:
a. Cost efficiency
b. Performance optimization
c. Scalability
d. Flexibility - Easy to align with business needs
 e. Resource allocation based on priority
f. Proactive Problem Detection
g. Data driven decision (effective resource allocation)

7.DEMAND AND CAPACITY MATCHING (C311.2, PO 1,4,5,11)

❖ Goal: Ensure the available resources are efficiently utilized to meet customer demand without causing
supply shortages or excessive resource wastage.
❖ It is a fundamental concepts in cloud computing.

❖ Demand: The amount of computing resources that users require at any given time.
❖ Need for Demand and capacity utilization:

a. Efficient allocation of resources

b. Optimizing cost (cost management)
c. Maintain better performance
d. Improve customer satisfaction
e. Inventory management
❖ Parameters for deciding the demands:

a. User activity
b. Application usage
c. Business operations
❖ General Methods:

a. Adjusting capacity to match demands

b. Altering demands to match available capacity
❖ Strategies for demand and capacity matching:

a. Capacity expansion / reduction

b. Flexible operations (adjust output more easily to match changing demand)
c. Demand Forecasting
d. Lead Time management – quickly responds to demands
e. Buffer stocks – Maintain buffer stocks to manage temporary demands
f. Collaboration – supply chain management
g. Pricing strategies - Dynamic pricing strategies can be used to influence demand during peak periods or to
stimulate demand during low-capacity periods

❖ Demand Forecasting: It is the process of estimating the future demand for a service or product on
historical data, market trends, customer behavior, and other factors.
❖ Different forecasting models:

a. Based on varying detail (business needs)

 b. Time
c. Type of data storage
❖ Capacity management: It is the process of planning, allocating, and adjusting the resources of a
business to match the demand for its products or services

❖ Key aspects define the relationship between demand and capacity matching:

a. Balancing demand and supply

b. Efficient resource utilization
c. Customer satisfaction
d. Revenue generation
e. Cost control
f. Risk management
g. Technology and innovation - Automation, data analytics, and AI-driven forecasting can
enhance decision-making.

❖ Challenges:

a. Uncertainty in demand prediction

b. Investment costs for expanding capacity requires investment
c. Lead Time: Rapidly adjusting capacity might not be feasible due to lead times for
equipment, hiring, or training.
d. Seasonality (fluctuations in demands - maintain consistency throughout the year is
not feasible)

8. DEMAND QUEUEING (C311.2, PO 1,3,4,11)

❖ Demand Queuing: It refers to the practice of organizing and prioritizing incoming requests for cloud
resources or services in a systematic manner when the available resources are currently insufficient to
fulfill all requests immediately.
❖ Excessive queuing can lead to long waiting times and user dissatisfaction.

❖ Need for effective queue strategies: It is need to fine-tune their queuing strategies and ensure that
resource capacity is adjusted to meet the overall demand over time.
❖ Balance: Need to create a balance between demand queuing and providing timely access to resources
for effective management.
❖ Essential tool: It ensures fair and organized access to resources during times of high demand,
promoting a balanced and efficient service environment.
❖ Need for Queuing Strategies: It helps to manage the situations when the demand for
resources temporarily exceeds the available capacity.
❖ Size of the Queue: It defines the balance between demand and capacity
❖ Size of the queue is measured by counting the number of requests or tasks that are currently waiting
 in line to be processed or fulfilled by the cloud service provider.

❖ Situation suitable for implement queuing strategies:

a. Incoming request for accessing resources

b. Limited capacity of the resources available
c. The number of requests exceed the available resources capacity
d. Prioritization of request
e. Resource allocation based on criteria
f. Monitoring and metrics
❖ Services associated with Queuing:

a. Monitoring and metrics

b. Notification and feedback
c. Load balancing
d. Prioritization
❖ Advantages:

a. Resource optimization
b. Fairness (FIFO order)

c. Performance stability
d. Reduced service failure (minimize the rejection of services)
❖ Challenges faced if queue mechanism is not implemented:

a. Service rejection
b. Unpredictable access
c. User dissatisfaction
d. Missed business opportunities
e. Inefficient resource utilization
f. Lack of prioritization
g. Unpredictable performance
h. Loss of business opportunities
i. Negative impact in revenue
j. Reduced customer loyalty

9.CHANGE MANAGEMENT (C311.2, PO 1,3,5,10)

❖ Definition of change: The addition, modification, or removal of anything that could have a direct or
indirect effect on services.
❖ Definition: It is the methodology and processes used by organizations to plan and manage these
changes (or) the process responsible for controlling the lifecycle of all changes, enabling beneficial
 changes to be made with minimum disruption to IT services (or) deliver critical updates to products
while simultaneously minimizing disruption to user workflow (or) it is a structured process of
planning, implementing, and tracking changes to cloud-based systems, applications, and services
while minimizing disruption to business operations and ensuring the integrity and security of the
environment.
❖ Condition for consistent change management: The changes must be beneficial and the minimum
disruption to IT services.
❖ Managed activities: It refers to a set of policies and actions that ensure change is properly managed
throughout every stage of the process.
❖ Survey report: Effective change management strategy allows 93% of organizations to successfully
achieve predefined objectives.
❖ Complexity of implementing the changes: Complex due to the dynamic and interconnected nature of
cloud services.
❖ Need for change management:

a. Maintain control
b. Maintain Stability
c. Maintain security
d. Maintain compliance
❖ Stable and Reliable: It is crucial for maintaining a stable and reliable cloud environment, ensuring
data security and compliance, and facilitating the seamless evolution of cloud-based solutions as
business needs evolve.
❖ Duration of change management: It depends on,

a. Complexity of the change

b. Scope of the cloud environment
c. Organization's processes
d. Level of coordination required.
❖ Need for Rollback: Yes required if any risks happen due to the changes
❖ Basic types of change management:

a. Routine updates and patches

b. Configuration change
c. Upgradation in resource scaling
d. Migration and deployment
e. New feature implementation (new functionality)
f. Service decommissioning (removing feature)
g. Data management
h. Security enhancement
 i. Vendor changes
j. Disaster recovery and business continuity
k. Process and work flow changes

❖ Outline or steps involved in change management:

a. Change identification and request (new feature / existing, configuration change or security)
b. Change evaluation – assess the potential impact [Evaluate technical feasibility, risk analysis,
benefits, costs and alignment with business goals]
c. Change planning – develop a plan for implementing the change (it involves defining the
scope, setting priorities, allocating resources and creating timeline)
d. Testing and validation
e. Communication and stakeholder management - Keep all relevant stakeholders informed
about the upcoming change
f. Change deployment – implement the changes in the production based on plan (requires
careful execution to minimize disruptions to ongoing operations)
g. Monitoring and feedback – identify or detect any anomalies, performance degradation or
security issues introduced due to the changes if any
h. Issue Resolution – Address the issue (rollback needed in necessary)
i. Documentation and knowledge management
j. Post- change review
❖ Advantages of Change Management:

a. Continuous improvement
b. Adopt to new technology and innovation
c. Improve vendor relationship
d. Adopt to new infrastructure
e. Helps to improve the security
f. Minimize user impact
g. Helps to reduce the risks

10.CLOUD SERVICE ARCHITECTURE (C311.2, PO 1,3,4,5,10)

❖ Cloud service: It refers to various internet based information technology resources.

❖ Cloud Service architecture:

(or)