CLOUDING COMPUTING FOR SMALL AND MEDIUM ENTERPRISES

AGENDA
What is Cloud Computing Type of Services

Deployment Models
Major Service Providers Benefits for SME Case Study Challenges Future Roadmap Conclusion

WHAT IS CLOUD COMPUTING

Simply Stated, it is a computing sold as a commodity paid for on demand and as consumed.
The notion is to move services, applications, infrastructure on the internet. It is a solution that is delivered as a service rather than a product. It relies on sharing computing resources rather than having local servers.

TYPE OF SERVICES
Software as a Service Most common form of Cloud Computing. Wide variety of services from enterprise resource planning to web-based email. Gartner Group estimated by 2015 $21 Billion Dollars Sales for SAAS. EXAMPLE; SAP, Oracle, Microsoft Online Service Portfolio.
Platform as a Service A service for developers or implementers to create their own SAAS. Essentially development, software or various applications that one can customize for their organization. Example; Google Apps, Sales Force. Infrastructure as a Service Provides virtual server instance with necessary infrastructure to support. Example; Amazon EC2.

DEPLOYMENT MODELS
Public Service providers own and manages everything. Availability to general public via internet. Could be free or could be pay-per-use model. Examples; Google Mail, Google Docs, Cisco Webex. Private Exclusive use for a particular group/organization Can be managed internally or third-party. Can be hosted on premises or externally. Higher security, regulatory compliance, higher performance and customization. Example; Shared Company Car, 2-1-1 Service.

DEPLOYMENT MODELS
Community Infrastructure shared by many organizations and support a specific shared concerns or needs, (Security requirement, mission, compliance) Most useful Could be managed by organization internally or third party Premised or off premises based Examples; BEA, IBM, Microsoft, Tibco worked together on Web Service Reliable Messaging, HL7. Hybrid
It is a combination of public and private deployment models Made to cater to a larger consumer base than private deployment model Meets internal needs of organizations or industry Examples: Windows Azure, VMware vCloud.

NIST WORKING DEFINITION OF CLOUD COMPUTING

MAJOR SERVICE PROVIDERS

Amazon Introduced the offering called EC2 on Aug 25, 2006. Developed by a team in Cape Town, South Africa, lead by by Chris Pinkham. It uses Xen virutalization. Pay-per-use model, as low as $0.03 per hour & even a free-tier for 1 year. Linux, Open Solaris, Windows FreeBSD, NetBSD to name some OS. Used by thousand of organization, most suitable for SMB for example, Reddit, Netflix, Foursquare, Quora, Springpad and etc. Google Biggest name after Amazon Offerings: Google cloud storage, Google App Engine and Google prediction API Price per GB ranges from $0.095 to $0.12 Used by smaller organizations

MAJOR SERVICE PROVIDERS

IBM Offerings: SmartCloud Application Services, IBM SAP Managed Application Services, The Enterprise service and IBM Lotus Domino applications. Major competition will be from HP CloudSystem IBM AIX Unix and Linux, and IBM System z mainframes are some of the power systems that are running Serves over 19 million users Price per instance: as high as $0.46/hour and as low as $0.10/hour .

BENEFITS FOR SMALL AND MEDIUM ENTERPRISES

Pay for only the services being used

Eliminates need for heavy front loaded IT investment Scalable resources on demand All it needs is a simple rental agreement and fast internet access Every dollar spent less on technology is a dollar more for core business services

CASE STUDY
Example 1 Backend Processing
Service: Amazon RDS 26 Cores, 96 GB RAM, 1 TB Disk Total Elapsed Time: 5 minutes to create PaaS 6 minutes to load data 5 minutes to run proprietary algorithm 3 minutes to download results 2 minutes to shutdown PaaS Total Cost: $3.14 USD including Oracle 11g EE License, Support, Monitoring and Report and Portability $502.40 to run proprietary algorithm for all business objects across province of Ontario

CASE STUDY
Example 2 Web Application
Service: Amazon EC2, Amazon CloudWatch, Amazon Cloud Scale, Amazon Elastic Load Balancing Need: Run application for 400,000 simultaneous users for 10 weeks from 5pm to midnight Monday to Saturday Peak: 100 independent servers (LAMP) 13 weeks out of 208 for 7 hours a day. Low: 4 independent servers (LAMP)

Provision: 4 + Auto scale to 100 AS NEEDED.

Cost at 4: $0.08/hr + $0.025/hr = $282.24/month Cost at 100: $0.08/hr + $0.025/hr = $7,056/month Included: Security, Patching, Monitoring, Compliance HIPPA, SOX, SAS 70

CHALLENGES IN THE CLOUD

Trusting vendors security model Customer inability to respond to audit findings Obtaining support for investigations Indirect administrator accountability Proprietary implementations cant be examined Loss of physical control

FUTURE ROADMAP
In order to encourage the adoption of cloud computing, the Service Providers need to take following measures: Need to seriously address the security and privacy concerns of their customer specifically for the geography they operate into Provide proof of their financial stability

Continued investment commitment in advanced technologies

CONCLUSION
In this rapidly changing era, cloud computing will be a beneficial tool for companies which are considering expansion using low cost but scalable computing resources. Cloud computing is the new big innovation that is already altering the landscape of IT and the business environment The prediction is that in the near future , thanks to cloud computing , a firms IT communications will be viewed as a utility expense similar to that of an electricity or water bill.