Cloud Computing - Hot or Not

What is cloud computing? Different meanings for different people? Who uses it, and what for? Who are the main industry players? What are the risks and the opportunities? »
Ian Prince

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Cloud Computing
Hot or Not?
What?
PaaS
IaaS
SaaS
Amazon Web Services
Elastic Computer Service - (EC2)
not so hot
- lower costs
- growth, consolidations
- decline in bare-metal "classic" hosting
- bottom-up demand growth: netbooks, mobiles, (social-)media, ...
- local players: latency, enforcable contracts, legislation
- standardization, interoperability: libcloud.org, cloudkick.com
- cloud-washing
- cloud markets (ec2 spot prices)
- hybrid iaas architectures in large businesses
- disasters
next?
HOT!
easy
cheap
flexible
virtualization
Open Source
Ubiquitous internet
Commodity Hardware
Tech-push reasons
- security: already an issue (laptops, intranets, usb sticks, shadow IT). Requires proactivity.
- legal aspects (EU: http://en.wikipedia.org/wiki/Data_Protection_Directive)
- loss of control/ownership/privacy (Facebook). Richard Stallman: "It's worse than stupidity: it's a marketing hype campaign" (source Guardian)
- lock-in (api-equivalents, data portability (Cloud Computing Manifesto)
Google App Engine
Microsoft Azure
Cloud’s customers 
•Startups 
–Web-based business, SaaS, collaboration services, widget 
providers, mobile services, social networking 
•Gaming and entertainment companies 
–Driving a lot of use of Amazon EC2 
•Small businesses 
–Online businesses, online presence, collaboration, enterprise 
integration 
•Enterprises 
–R&D projects, quick promotions, widgets, online collaboration, 
partner integration, social networking, new business ventures
Examples AWS
Delivering nostalgia: The New York Times 
http://timesmachine.nytimes.com/
• Objective: 
– Make all public domain articles from 1851-1922 available free of charge 
– 11M articles to be scanned, assembled and PDF’d 
• Approach: 
– Batch process all 11M articles 
– Required hundreds of servers; 
up to 4TBs 
• Solution: 
– Amazon EC2 and S3 
•100 EC2 Instances 
•4TBs of S3 capacity 
– All 11M articles processed in <24 hours 
•Total cost: $240 
• Now hosting TimesMachinevia EC2/S3 
“I was using some very new and not totally proven pieces of technology, on a project that was 
very high profile and on a inflexible deadline…but clearly it worked out.” 
“…it is highly addictive. We have already completed the S3 / EC2 portion of another project 
and I have ideas for countless more.” 
Source: Open Code http://open.blogs.nytimes.com/2008/05/21/the-new-york-times-archives-amazon-web-services-timesmachine/
SmugMug–online photo exchange
10 terabytes of new images each month since 2006
"The company saved roughly $500,000 in planned disk drive expenditures in 2006 and cut its disk storage array costs in half."
"Our customers are comforted to know their photos are made safe by two companies and at least three datacenters in three states; and Amazon S3 has removed the worries around our limited staff numbers, room in our datacenter, and high storage costs"
market-pull factors
Multimedia
google apps for business (Gmail, Google Docs, IM, GAE)
tiktrac.com (timesheets)
staction (project management)
backpack (project management)
prezi.com (slides)
blogger.com (blogging)
Evernote (note-sharing)
Jungle Disk, rsync.net (backup)
Amazon EC2 (application/web hosting, IaaS)
Slicehost/Rackspace (application/web hosting, IaaS)
Cloud computing is Internet-based computing, where technological capabilities are maintained off premises and delivered on demand as a service via the internet, not unlike a public utility.

source: wikipedia
Demo
Slicehost
Amazon
Slicehost
GoGrid
Linode
software development and testing
Why (now)?
impacts
business continuity
capacity handling
netbooks
tablets
smartphones
software evolution
transparent software updates
continual software updates  (SAAS)
- good for customers (more features quicker)
- good for software developers 
-more controlled environment
- transparent hardware / architecture updates (PAAS)
- example: amazon persistent sessions elastic load balancing
time-to-market
budget constraints
Examples
social media
Features
In general, cloud computing customers do not own the physical infrastructure, instead avoiding capital expenditure by renting usage from a third-party provider. They consume resources as a service and pay only for resources that they use. Many cloud-computing offerings employ the utility computing model, which is analogous to how traditional utility services (such as electricity) are consumed, whereas others bill on a subscription basis. Sharing "perishable and intangible" computing power among multiple tenants can improve utilization rates, as servers are not unnecessarily left idle (which can reduce costs significantly while increasing the speed of application development). A side-effect of this approach is that overall computer usage rises dramatically, as customers do not have to engineer for peak load limits.[12] In addition, "increased high-speed bandwidth" makes it possible to receive the same response times from centralized infrastructure at other sites
2. Multi-tenancy
tele-working
start-up competivity
new economics
batch processing
3 types
new breed of businesses
shadow IT
service budget
e.g. mass mailing
security?
integration?
legal compliance (GAAP/ITIL, ...)
usb sticks!
http://www.slideshare.net/randybias/challenges-embracing-cloud-storage-presentation


Saas Business Models
Ad-supported
Fremium
Rich Internet Applications
AJAX
3. Scalability
4. Cost (upfront / operational)
6. Device/Location independance
1. Metering (pay what you use)
8. Reliability (outages rare)
7. Maintenance
5. Agility (no contracts)
fast deployment

collaboration
distance working
http://prezi.com/7itpbql0ckfa
http://www.infosysblogs.com/microsoft/2009/07/guide_to_cloud.htm
http://www.infosysblogs.com/microsoft/2009/07/guide_to_cloud.htm
http://www.tolerance.ca/ Article.aspx?ID=80125&L=en

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