CCS336 CLOUD SERVICES MANAGEMENT

UNIT II CLOUD SERVICE STRATEGY

Cloud Strategy Fundamentals

A cloud strategy outlines how an organization plans

to adopt, implement and manage cloud
technologies to achieve its business goals. It serves
as a blueprint for decision-making, ensuring cloud
adoption aligns with the organization's objectives,
resources, and risk appetite
Importance of Cloud Strategy

• Saves Costs: Avoids overspending on unnecessary resources.

• Improves Efficiency: Makes services faster and more reliable.

• Supports Innovation: Helps organizations use modern tools like

artificial intelligence or big data analysis.

• Manages Risks: Protects data and ensures privacy.

Cloud Strategy Management Framework

A Cloud Strategy Management Framework

provides a structured approach for planning,
implementing, managing, and optimizing cloud
adoption to align with an organization’s business
objectives. It helps organizations achieve their
goals while addressing challenges such as cost,
security, and compliance.
Benefits of a Cloud Strategy Management Framework

• Alignment: Ensures cloud adoption supports business goals.

• Efficiency: Optimizes cloud resources and reduces costs.

• Security: Protects sensitive data and ensures compliance.

• Scalability: Prepares for future growth and demand.

• Risk Mitigation: Reduces potential risks and challenges.

Cloud Policy

A cloud policy is a set of rules, guidelines, and best

practices that govern the usage, management, and
security of cloud computing resources within an
organization. It acts as a framework to ensure that
cloud services are used efficiently, securely, and in
compliance with legal, regulatory, and business
requirements.
Key Features of a Cloud Policy

Data Security and Privacy:

• Defines encryption standards, access controls, and secure storage mechanisms.

• Ensures compliance with data protection regulations such as GDPR or HIPAA.

Access Management:

• Establishes role-based access controls (RBAC) and multi-factor authentication

(MFA) to prevent unauthorized access.

Resource Allocation and Usage:

• Sets rules for provisioning and de-provisioning cloud resources.

• Provides guidelines to prevent resource wastage and optimize costs.
Cost Management:
• Includes policies for budget tracking, cost analysis, and cost-saving practices.
• Defines who can approve expenditures related to cloud services.

Compliance and Auditing:

• Ensures that cloud services meet regulatory and industry standards.
• Regularly audits cloud usage to detect and address compliance issues.

Backup and Recovery:

Outlines procedures for regular data backups and disaster recovery strategies.

Incident Response:
Defines processes to handle security breaches, data loss, or service outages.
Importance of Cloud Policies

• Security: Protects sensitive data and systems from unauthorized access or

breaches.

• Efficiency: Optimizes the use of cloud resources and minimizes wastage.

• Compliance: Ensures adherence to laws and industry standards.

• Cost Control: Prevents unnecessary expenditures and promotes financial

accountability.

• Governance: Provides clear guidelines for managing cloud services across the
organization.
Key Drivers for Cloud Adoption

Cloud adoption is driven by the growing need for businesses to be agile, efficient,
and competitive.
Here are the key factors that encourage organizations to adopt cloud computing:
• 1. Cost Efficiency
• 2. Scalability and Flexibility
• 3. Innovation and Modernization
• 4. Speed and Agility
• 5. Reliability and Business Continuity
• 6. Enhanced Security
• 7. Collaboration and Accessibility
• 8. Sustainability
Risk management
• Risk management in cloud computing is the process of identifying, analyzing, and
mitigating potential risks associated with adopting and using cloud services. It
ensures that an organization's cloud infrastructure and services are secure,
compliant, and resilient while minimizing disruptions to business operations.
Process of Risk Management

Risk management is a cyclically executed process comprised of a set of activities for

overseeing and controlling risks. Risk management follows a series of 5 steps to
manage risk, it drives organizations to formulate a better strategy to tackle
upcoming risks.
These steps are referred to as Risk Management Process and are as follows:
• Identify the risk
• Analyze the risk
• Evaluate the risk
• Treat the risk
• Monitor or Review the risk
Types of Risks 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

Benefits of Risk Management:
 a. Forecast probable issues

 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

IT Capacity and Utilization
IT capacity and utilization in the cloud refers to the amount of resources a cloud
provider can allocate to a user's applications and services, and how efficiently
those resources are used.
Capacity:
The maximum amount of IT resources available in the cloud.
Includes virtual machines (VMs), storage, network bandwidth, and more.

Utilization:
The percentage of available capacity that is actively used.
Helps measure how efficiently cloud resources are being consumed.

Elasticity:
The ability to scale resources up or down based on real-time demand.
A critical feature of cloud computing.

Resource Optimization:
Ensures workloads run efficiently while minimizing costs.
Demand and Capacity Matching
Demand and capacity matching in cloud computing
is the process of adjusting the amount of resources
available to meet customer demand.
Techniques for Demand and Capacity Matching

Auto-Scaling:
Automatically adjusts the number of virtual machines, containers, or resources
based on real-time demand.
Examples: AWS Auto Scaling, Azure Scale Sets, Google Cloud Autoscaler.

Dynamic Resource Allocation:

Allocates resources dynamically to workloads as needed, such as memory, storage,
or CPU.

Load Balancing:
Distributes workloads across multiple servers or regions to prevent bottlenecks and
ensure resource utilization.
Capacity Planning:
Analyzes historical usage data to predict future demand.
Helps plan resource allocation during peak periods (e.g., holidays, end-of-quarter
spikes).

Demand Forecasting:
Uses analytics and machine learning to predict future resource demands based on
usage trends and business needs.

Cloud Bursting:
Uses public cloud resources to handle unexpected spikes in demand while
maintaining base workloads on private infrastructure.
Demand queuing
• Demand queuing is a strategy for managing cloud
services that uses queuing theory to allocate
resources and respond to changing demand. It
helps to ensure that cloud services are reliable
and perform consistently, even when demand is
high.
Change Management
• Change Management in cloud computing refers to the structured approach used to
plan, implement, monitor, and review changes to cloud-based systems, services, and
infrastructure. It ensures that changes are made efficiently, securely, and with
minimal disruption to the organization’s operations.
Importance of Change Management in Cloud Computing

1.Ensures Business Continuity: Minimizes downtime and disruptions caused by

changes.

2.Reduces Risks: Identifies and mitigates risks before changes are implemented.

3.Improves Resource Allocation: Ensures resources are used efficiently during and
after changes.

4.Enhances Security: Ensures changes do not introduce vulnerabilities or

compliance issues.

5.Facilitates Scalability: Helps organizations adapt quickly to changing business

needs.
Cloud service architecture
• Cloud service architecture refers to the
design and framework for delivering cloud-
based services. It encompasses all
components and layers required to provide
scalable, reliable, and efficient cloud
services. These services can be categorized
into three primary models: IaaS
(Infrastructure as a Service), PaaS
(Platform as a Service), and SaaS
(Software as a Service).
Key Components of Cloud Service Architecture

1. Infrastructure Layer:

Provides the foundation of physical and virtual resources.

2. Platform Layer:

Provides tools and frameworks for developers to build and deploy applications.

3. Application Layer:

Delivers applications directly to end-users via the internet.

Working of Cloud Service Architecture
User Interaction:
End-users, businesses, and developers interact with cloud services through
interfaces like web browsers, APIs, or mobile apps.
Resource Allocation:
Based on user demand, resources are allocated dynamically using virtualization
and orchestration technologies.
Service Delivery:
Services are delivered to users with scalability, reliability, and security ensured
by the underlying infrastructure.
Data Flow:
Data flows seamlessly between users and the cloud, managed by load balancers
and content delivery networks (CDNs).