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Mgmt 178 - Week 9 Presentation

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Magdalene Jayarethinam

on 17 March 2014

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Transcript of Mgmt 178 - Week 9 Presentation

Strategic Implications of Emerging IT Platforms: Public Cloud Services

Case Study: Netflix
“The competitive necessity for business agility…requires that all businesses prepare to adopt public cloud services” (Mooney, Ross, and Phipps 3).
Choosing a reputable vendor is vital
Advantages / Disadvantages of Public Cloud Services
Amazon Web Services
What is AWS?
Cloud services provider
Key benefit of using AWS:
Opportunity to replace capital infrastructure expenses with lower costs that scale with business.
Benefits of AWS
agility and instant elasticity
open and flexible
low cost
Common uses
Application hosting
Backup, storage, databases
Content delivery
High performance computing
On-demand workforce
Search engines
Web hosting
Media and entertainment hosting

Example: IMDb
Most popular source for TV, movie and celeb content.
More than 100 million unique visitors per month
Why AWS?
Quick search queries
Distribute content close to user base to get faster search results
Well-Known Users of AWS
Reddit Lionsgate
Scribd 9Gag
Spotify Netflix
Lamborghini CDC
Vodafone foursquare
AWS Cloud Outage
59 minute outage in August 2013
Netflix, Heroku, Pinterest, Mashable, Instagram, Vine, and many other companies went down.
Cause: Severe thunderstorms and massive power outages
North Virginia
Outages of 2013
Dropbox (twice), Facebook, Microsoft (twice), Google Drive, CloudFlare, Twitter...to name a few!

Benefits for IMDb
No maintenance
Ultra fast, scalable, and reliable search worldwide
Hosting latest movie trailers
Public Cloud Services
Disadvantages / Risks
The BIMmers

Cloud Computing
Works Cited/Consulted
Happened again a month later
Partnering with AWS
Engineers focus on product innovation
Software for streaming from any device developed & deployed using AWS's services
Netflix.com, Xbox, PS3, Wii, AppleTV, iPhone, and iPad
Increasing growth = software layers must handle horizontal scaling
Cost-effective and reliable
Search engines, recommendation systems, A|B testing infrastructure, streaming servers, encoding software, huge data stores, caching architectures, various SQL and NoSQL solutions
General Benefits
No need to worry about storage space
Quick and easy access to information
Easy to update and maintain
Christmas Eve 2012 Outage
AWS Elastic Load Balancer (ELB)
Data deleted accidentally
Netflix streaming went down for 7 hours
Took 2 hours to figure out problem
Problem was solved the following day
Lessons Learned
Changed access-control of ELB
Modify recover process to make it faster
Isolate to more regions so that outages will not affect all
Maybe running Netflix in more than 1 AWS region?
Dependent on internet connection
Data Integrity, Security, Privacy
Hybrid models: compatibility issues
Difficulty switching providers
Long-term viability
“…the combined downtime at 13 major cloud service providers [was]
568 hours
since 2007—with an economic impact on customers of at least
$71.7 million
” (Kopytoff).
Security Concerns
Third party certifications and audits
Hybrid model
sensitive data in-house
non-sensitive data in cloud
Model for enabling on-demand network access to a shared pool of computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction

Top 5 cloud computing services

1. Email on the go
2. Data Storage over Wi - Fi
3. Collaboration work
4. Virtual office
5. Processing power

75% of businesses utilize these services

Bhuvan Potluri, Magdalene Jayarethinam, Samah Malik, Patricia Mora

By next year, corporate spending on these services will exceed $70 billion
Advanced Benefits
Frees up IT Executives
Encourages Innovation
Although there are many benefits,
companies must be aware of the disadvantages.

"About AWS." About AWS. N.p., n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/about-aws/>.
"All AWS Case Studies." Amazon Web Services, Inc. Amazon Web Services, Inc., n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/solutions/case-studies/all/>.
"AWS Case Study: IMDb." Amazon Web Services. Amazon Web Services, n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/solutions/case-studies/imdb/>.
"AWS Case Study: Netflix." Amazon Web Services. Amazon Web Services, n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/solutions/case-studies/netflix/>.
"AWS Case Study: Pinterest." Amazon Web Services. Amazon Web Services, n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/solutions/case-studies/pinterest/>.
"AWS Security Center." AWS Security Center. Amazon Web Services, n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/security/>.
"AWS Solutions." Amazon Web Services. Amazon Web Services, n.d. Web. 24 Feb. 2014. <http://aws.amazon.com/solutions/aws-solutions/>.
Barr, Alistair. "AWS, the Popular Cloud Computing Service, Went down on Friday Morning." USA Today. Gannett, 13 Sept. 2013. Web. 24 Feb. 2014. <http://www.usatoday.com/story/tech/2013/09/13/amazon-cloud-outage/2810257/%2520>.
Bort, Julie. "The 10 Most Important Companies In Cloud Computing." Business Insider. Business Insider, Inc, 20 Apr. 2013. Web. 24 Feb. 2014. <http://www.businessinsider.com/10-most-important-in-cloud-computing-2013-4?op=1>.
Ciancutti, John. "Four Reasons We Choose Amazon’s Cloud as Our Computing Platform." The Netflix Tech Blog. Netflix, 14 Dec. 2010. Web. 24 Feb. 2014. <http://techblog.netflix.com/2010/12/four-reasons-we-choose-amazons-cloud-as.html>.
"Cloud Computing: Benefits and Disadvantages." Cloud Computing. UNC Law Cyberspace Law, Spring 2010. Web. 24 Feb. 2014. <http://www.unc.edu/courses/2010spring/law/357c/001/cloudcomputing/benefits.html>.
Cockcroft, Adrian. "A Closer Look At The Christmas Eve Outage." The Netflix Tech Blog. Netflix, 31 Dec. 2012. Web. 24 Feb. 2014. <http://techblog.netflix.com/2012/12/a-closer-look-at-christmas-eve-outage.html>.
Helhoski, Anna. "Brands Use Facebook Outage For Twitter Marketing." Social Media Strategies Summit Blog. N.p., 22 Oct. 2013. Web. 24 Feb. 2014. <http://socialmediastrategiessummit.com/blog/brands-use-facebook-outage-for-twitter-marketing/>.
Iansiti, Marco, and Alain Serels. "Microsoft Server & Tools." Harvard Business School 4 Apr. 2013: 1-21. Print.
Kaplan, James, Chris Rezek, and Kara Sprague. "Protecting Information in the Cloud." McKinsey & Company Insights & Publications. McKinsey & Company, Jan. 2013. Web. 19 Feb. 2014. <http://www.mckinsey.com/insights/business_technology/protecting_information_in_the_cloud>.

Works Cited/Consulted (cont...)
Kopytoff, Verne. "The Cloud Carries Risks, Too." Bloomberg Business Week. Bloomberg, 07 Aug. 2012. Web. 24 Feb. 2014. <http://www.businessweek.com/articles/2012-08-07/the-cloud-carries-risks-too>.
Kosner, Anthony Wing. "Amazon Cloud Goes Down Friday Night, Taking Netflix, Instagram And Pinterest With It." Forbes. Forbes Magazine, 30 June 2012. Web. 24 Feb. 2014. <http://www.forbes.com/sites/anthonykosner/2012/06/30/amazon-cloud-goes-down-friday-night-taking-netflix-instagram-and-pinterest-with-it/>.
Mariappan, Kavitha. "What Cloud Customers Can Learn From High-Profile Power Outages." Innovation Insights. Wired, 11 Apr. 2013. Web. 24 Feb. 2014. <http://insights.wired.com/profiles/blogs/what-can-cloud-customers-learn-from-a-recent-high-profile-power#axzz2u2CnU6nH>.
McKendrick, Joe. "9 'Worst Practices' To Avoid With Cloud Computing." Forbes. Forbes Magazine, 29 Jan. 2014. Web. 24 Feb. 2014. <http://www.forbes.com/sites/joemckendrick/2014/01/29/9-worst-practices-to-avoid-with-cloud-computing/>.
Mendoza, Dorrine, and Doug Gross. "Amazon Outage Takes down Reddit, Foursquare, Others." CNN. Cable News Network, 01 Jan. 1970. Web. 24 Feb. 2014. <http://www.cnn.com/2012/10/22/tech/web/reddit-goes-down/>.
Mooney, John G., Jeanne W. Ross, and Jarrod Phipps. "Embrace the Inevitable: Six Imperatives to Prepare Your Company for Cloud Computing." MIT CISR Research Briefing Oct. 2012: 1-3. Print.
Peppard, Joe. "Unlocking the Performance of the Chief Information Officer (CIO)." California Management Review Summer 2010: 73-99. Print.
Shagin, Abby. "The Risks And Benefits Of Cloud Computing." SAP Business Innovation. SAP, 25 Oct. 2012. Web. 24 Feb. 2014. <http://blogs.sap.com/innovation/cloud-computing/risks-and-benefits-of-cloud-computing-020025>.
Shrum, Sandy, and Paul Murray. "Common Risks of Using Business Apps in the Cloud." US-CERT. United States Computer Emergency Readiness Team, 2012. Web. 21 Feb. 2014. <http://www.us-cert.gov/sites/default/files/publications/using-cloud-apps-for-business.pdf>.
Skok, Michael. "Five Myths about the Cloud." Washington Post. The Washington Post, 03 Jan. 2014. Web. 23 Feb. 2014. <http://www.washingtonpost.com/opinions/five-myths-about-the-cloud/2014/01/03/dd826052-7191-11e3-8b3f-b1666705ca3b_story.html>.
Stone, Brad. "Another Amazon Outage Exposes the Cloud's Dark Lining." Bloomberg Business Week. Bloomberg, 26 Aug. 2013. Web. 20 Feb. 2014. <http://www.businessweek.com/articles/2013-08-26/another-amazon-outage-exposes-the-clouds-dark-lining>.
Warren, Christina. "YouTube Was Down for 30 Minutes and the World Didn't Collapse." Mashable. N.p., 18 Nov. 2013. Web. 24 Feb. 2014. <http://mashable.com/2013/11/18/youtube-down-2013/>.
"What Is Cloud Computing." Amazon Web Services, Inc. Amazon Web Services, Inc., n.d. Web. 23 Feb. 2014. <http://aws.amazon.com/what-is-cloud-computing/>.
"Why Move to the Cloud? 10 Benefits of Cloud Computing." Salesforce.com. Salesforce.com, n.d. Web. 24 Feb. 2014. <http://www.salesforce.com/uk/socialsuccess/cloud-computing/why-move-to-cloud-10-benefits-cloud-computing.jsp>.
Williams, Bill. "The Economics of Cloud Computing: An Overview For Decision Makers." NIST Definition of Cloud Computing. N.p., 30 July 2012. Web. 24 Feb. 2014. <http://www.ciscopress.com/articles/article.asp?p=1925617&seqNum=2>.
Winkler, Vic. "Cloud Computing: Risk Assessment for the Cloud." TechNet Magazine. Microsoft, Jan. 2012. Web. 24 Feb. 2014. <http://technet.microsoft.com/en-us/magazine/hh750397.aspx>.
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