1 CSE 423: VIRTUALIZATION & CLOUD COMPUTING

3/29/2022

by
Mr. Ajay Kumar Badhan
Assistant Professor
M.TECH[CST], B.TECH [CSE]
Email: [email protected]
Personal Blog: https://ajaykumarbadhan.wordpress.com/

Preferred Text Book

 Cloud Computing Bible: Barrie Sosinky – 1st Edition, Wiley India Pvt. Ltd.
 Cloud Computing: Fundamentals, Industry Approach & Trends by Rishabh Sharma, Wiley
 Cloud Computing: Principles & Paradigms by Raj Kumar Buyya, James Broberg, Andrzej
Goscinski, Wiley
@Mr. Ajay Kumar Badhan
2 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS

CONTENT
CLOUD COMPUTING TECHNOLOGIES AND APPLICATIONS

 Modern Application Methodologies

 Cloud based high-performance computing clusters

 Diving into Infrastructure as a Service (IaaS)

 Exploring Platform as a Service (PaaS)

 Understanding Software as a Service (SaaS)

 Different Cloud Providers

 Comparison of Services

 Resource Management

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3 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS

CONTENT

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4 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS

INTRODUCTION
 When you begin to leverage cloud services, you must have a clear understanding of how that
resources will be managed by that provider.
 The company has to manage the underlying infrastructure that the user is using (along with its
multitude of other customers).
 It includes the physical servers, networks, and storage as well as other virtual servers.
 Someone has to manage the databases and applications that are running on top of this infrastructure.
 The cloud is a complex environment and many parties may be part of the cloud service delivery
model.
 The parties include the cloud infrastructure provider, a SaaS provider, and the own set of
developers and delivery team.
 The vast majority of cloud applications take advantage of request/response communication
between clients and stateless servers.

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5 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS

INTRODUCTION
Stateless Server
 A stateless server does not require a client to first establish a connection to the server. Instead, it
views a client request as an independent transaction and responds to it.
 The advantages of the stateless server are obvious. Recovering from a server failure requires
considerable overhead for a server that maintains the state of all its connections.
 A stateless system is simpler, more robust, and scalable. The IT department needs to enable
administration systems that let them monitor every dimension of the service they are getting.
 A client does not have to be concerned with the state of the server.
 If the client receives a response to a request, that means that the server is up and running, if not,
it should resend the request later.

@Mr. Ajay Kumar Badhan

6 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
GOVERNING THE CLOUD
Introduction
 Make sure that the assets are managed in a way that meets the business objectives. This is where
governance comes in.
 Governance is about making good decisions regarding performance predictability and requiring
accountability
 An overarching principle behind governance is trust. All parties involved in the cloud, the cloud
provider, and other services providers must be able to trust that each party will do what it’s
supposed to in accordance with established policies and procedures.
IT Governance
 Ensures that IT assets (system, processes, and so on) are implemented and used accordingly to
agreed-upon policies and procedures
 Ensures that these assets are properly controlled and maintained
 Ensures that these assets are providing value to the organization (actually supporting your
organization strategy and business goes)

@Mr. Ajay Kumar Badhan

7 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
GOVERNING THE CLOUD
IT Governance
 It defines who is responsible for what and who is allowed to take actions to fix whatever needs
fixing. Governance also sets down which policies people are responsible for and put in place means
to determine whether the responsible person or group has, in fact, acted responsibly and done the
right thing.
 Cloud governance is the shared responsibility between the user of the cloud services and the
cloud providers.
 Understanding the boundaries of responsibilities and defining an appropriate governance
strategy within the organization requires a careful balance

IT Governance Policies Includes

 Standards for the design of infrastructure
 Monitoring of Infrastructure & Applications
 Security Policies
 Programming Standards

@Mr. Ajay Kumar Badhan

 8 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
IDENTITY MANAGEMENT
Identity Management
 It is a very broad topic that applies to most areas of the data center.
 Important in protecting the cloud environment because the cloud is about sharing and virtualizing
physical resources across many internal users you must know who has access to what services.
 The primary goal is managing personal identity information so that access to computer resources,
applications, data, and other services is controlled properly.
 It is one of the areas of IT security that offers genuine benefits beyond reducing the risks of
security breaches.
Benefits:
 Identity management helps prevent security breaches and plays a significant role in helping the
company meet IT security compliance regulations i.e. keeping the customer or company financial
data safe from unauthorized access.
 The key task of the IAM system is to authenticate that an entity is who or what it’s supposed to be.
The most basic authentication happens when a person ensures username and password on the login
screen. The IAM checks a database to make sure they must match as per records. Modern

@Mr. authentication solutions provide the most sophisticated approaches to better protect assets
Ajay Kumar Badhan
9 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
TYPES OF IAM AUTHENTICATION
Types
1. Single Sign-On
 It increases productivity and reduces friction for users.
 With one set of login credentials (Username & Password) entered one time, an individual can
access multiple applications, switching between them seamlessly.

2. Multifactor Authentication (MFA)

 It adds another layer of protection by requiring users to present two or more identifying
credentials in addition to the username to gain access to applications.
 Example: the user might be asked to enter a username and password and a temporary code sent
by email or text message.

@Mr. Ajay Kumar Badhan

10 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
TYPES OF IAM AUTHENTICATION
Types
3. Risk-based Authentication
 It is also known as adaptive authentication, a risk-based authentication solution that prompts a
user for MFA only when it detects the presence of higher risks.
 Example: when the user’s location is different from what is expected, based on IP address, or
malware is detected.

 The process or framework for collecting and analyzing identity data across an organization is called
identity governance
 Having a robust identity governance program can help you meet regulatory requirements and control
risk to your organization.

@Mr. Ajay Kumar Badhan

 11 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
TYPES OF IAM AUTHENTICATION

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12 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
CASE STUDY

 In the diagram, a developer runs an application on an EC2 instance that requires access to the S3
bucket that is named photos. An administrator creates the IAM role and attaches the role to the
EC2 instance.
 The role includes a permissions policy that grants read-only access to the specified S3 bucket.
 It also includes a trust policy that allows the EC2 instance to assume the role and retrieve the
temporary credentials.
 When the application runs on the instance, it can use the role's temporary credentials to access the
photos bucket. The administrator does not need to grant the application developer permission to
access the photos bucket, and the developer never needs to share or manage credentials.

@Mr. Ajay Kumar Badhan

13 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
CLOUD-BASED HIGH PERFORMANCE COMPUTING
CLUSTER
 Cloud computing helps democratize High-Performance Computing by placing powerful
computational capabilities in the hands of more researchers, engineers, and organizations who may
lack access to sufficient on-premises infrastructure.
 The cloud’s flexibility and scalability offer virtually unlimited capacity, eliminating wait times and
long job queues.
 With HPC in the cloud, organizations only pay for the capacity they use, and there’s no risk of on-
premises infrastructure becoming obsolete or poorly utilized.
HPC CLUSTER
 It is a collection of many separate servers (computers), called nodes, which are connected via
a fast interconnect.
 There may be different types of nodes for different types of tasks.
 All cluster nodes have the same components as a laptop or desktop: CPU cores, memory, and disk
space. The difference between a personal computer and a cluster node is in the quantity, quality,
and power of the components.
 Users log in from their computers to the cluster head node using the ssh program.
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14 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
CLOUD-BASED HIGH PERFORMANCE COMPUTING
CLUSTER

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15 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
COMPONENTS

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16 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
CONSIDERATION WHILE CHOOSING A CLOUD SERVICE
MODEL
1. There are many factors that go into choosing the right service model. Decision-makers should
consider the feasibility of each cloud service model based on the following five categories:
a. Technical
b. Financial
c. Strategic
d. Organization
e. Risk
2. The technical category focuses on areas like performance, scalability, security, regulation, business
continuity, disaster recovery, and so on. Performance and scalability requirements are critical for
deciding between PaaS and IaaS service models

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17 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
CLOUD SERVICES

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18 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
INFRASTRUCTUER AS A SERVICE (IaaS)
1. Infrastructure as a Service (IaaS) is the delivery of computer hardware (servers, networking
technology, storage, and data center space) as a service. It may also include the delivery of operating
systems and virtualization technology to manage the resources.
2. The IaaS customer rents computing resources instead of buying and installing them in their own data
center. The service is typically paid for on a usage basis. The service may include dynamic scaling
so that if the customer winds up needing more resources than expected, he can get them immediately
(probably up to a given limit).
3. Clients can use infrastructures, for example, hardware, servers, computing, storage, networking
constituents, and functioning systems in on-demand cornerstone other than buying them.
Examples of the IaaS sub-services:
1. DBaaS: Database access and use of database administration system as a service
2. STaaS: Data Storage as a service, comprising of database-like services
3. CCaaS: Compute Capacity (CPUs) as virtual services are founded on on-demand usage

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19 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
INFRASTRUCTUER AS A SERVICE (IaaS)
Key Advantages of IaaS:
1. Save Money  IaaS converts capital expenditure into operational expenses. Thus one does not
have to upfront send money on infrastructure.
2. Increased Flexibility  Dynamic scale up and scale down ensures flexibility in resources and
pay-as-you-go services provide flexibility in using the services.
3. Increased Focus  With IaaS, the IT workforce can focus more on results and value adds rather
than infrastructure working and maintenance.
IaaS Pricing & Billing:
1. Pay-per-use Model  Metered Service i.e. pay for the infrastructure services that applications are
using. Usually, charges are based on throughput but some vendors charge for server time as well.
2. Flat rate Model  Flat rate on a monthly, quarterly, or annual basis for subscribed configuration

@Mr. Ajay Kumar Badhan Source: Infrastructure as a Service | IAAS - javatpoint

20 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
INFRASTRUCTUER AS A SERVICE (IaaS)
Services:
1. Compute  Computing as a Service includes virtual central processing units and virtual main
memory for the VMs that is provisioned to the end-users.
2. Storage  IaaS provider provides back-end storage for storing files.
3. Network  Network as a Service (NaaS) provides networking components such as routers,
switches, bridges for the VMs
4. Load Balancer  It provides load balancing capabilities at the infrastructure level/

@Mr. Ajay Kumar Badhan Source: Infrastructure as a Service | IAAS - javatpoint

21 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
INFRASTRUCTUER AS A SERVICE (IaaS)
Benefits:
1. Allows IT to shift Focus  With the fast accessibility of IaaS services, an organization can
leverage and focus its time and assets on innovative applications and solutions
2. Hassle-Free Service  Every infrastructure constituent is supplied as a service.
3. Utility Service  IaaS pursues a utility service form—pay per use/pay per proceed subscription-
based model.
4. Dynamic Scaling  Scales up and down the infrastructure services depending on the usage
application. It is best for the applications where there are important spikes in the usage of
infrastructures.
5. Multiple Tenants  Service supplying comprises of multiple users accessing the identical
infrastructure.
6. Investment Cap  Highly beneficial for businesses with limited capital to invest in hardware and
infrastructure.

@Mr. Ajay Kumar Badhan Source: Infrastructure as a Service | IAAS - javatpoint

22 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
INFRASTRUCTUER AS A SERVICE (IaaS)
When to Use IaaS:
1. If an application or service has performance or scalability requirements that require the
developers to manage memory, configure database servers and application servers to maximize
throughput, specify how data is distributed across disk spindles, manipulate the operating system,
and so on, then you should leverage IaaS. If you don’t need to worry about those things, then you
should consider PaaS.
2. Another reason for leveraging IaaS over PaaS is related to mitigating risks of downtime. When a
PaaS provider has an outage, the customer can only wait for the provider to fix the issue and get the
services back online. The same is true for SaaS solutions.

@Mr. Ajay Kumar Badhan Source: Infrastructure as a Service | IAAS - javatpoint

23 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
PLATFORM AS A SERVICE (PaaS)
1. The next level up on the stack is PaaS. IaaS is to infrastructure, PaaS is to the applications.
2. PaaS sits on top of IaaS and abstracts much of the standard application stack–level functions and
provides those functions as a service. For example, developers design high-scaling systems.
3. It is an expanded version of SaaS, where encompassing programs applications are established and
accessed by clients over the Internet.
4. PaaS has some advantages for programs developers. Some of them are recorded as follows:
a. An off location programs development
b. Working on heterogeneous stages without bothering up-gradation
c. Initial and ongoing charges are minimized as the infrastructures are not bought
d. Combination of development programming minimizes the overall costs

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24 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
PLATFORM AS A SERVICE (PaaS)
1. Platform as a service (PaaS) is a combination of computing phases and guarantees deployment of
applications without the cost and complexity of buying and managing inherent hardware and
software. Some examples of PaaS are as follows:
a. Google’s AppEngine, which is based on Python
b. Force.com from SalesForce, based on the SalesForce SaaS infrastructure and Apex language
c. Bungee Connect: visual development studio based on Java
d. LongJump: based on Java/Eclipse
e. Winemaker: A studio based on Java and hosted at EC2
2. PaaS must offer some type of development language so
professional developers (and in some cases users) can add
value.
3. These environments need a way to monitor and measure
resource use and to track the overall performance of the
vendor’s platform.

@Mr. Ajay Kumar Badhan

25 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
PLATFORM AS A SERVICE (PaaS)
4. Almost all PaaS platforms are based on a multi-tenancy architecture (which lets multiple clients
run their copy separately from each other through virtualization) so that each customer’s code or data
is isolated from others.
5. A PaaS environment needs to support the development lifecycle and the team development process,
including testing.
6. A PaaS platform needs to include services interfaces such as SOAP (Simple Object Access Protocol)
and XML (eXtensible Markup Language), among others.
7. A PaaS platform must be able to deploy, manage, test, and maintain the developed applications.
Characteristics of PaaS
1. Every phase is acted as a service.
2. Provides services needed to support the entire lifecycle of construction and consigning WWW
applications.
3. Provides services to establish, check, own and sustain applications in the identical IDE.
4. Service provisioning encompasses concurrently, i.e., multiple users use the identical IDE.
5. Being a cloud, it pursues cloud service form, i.e., pay per use/pay per proceed model.
@Mr. Ajay Kumar Badhan
26 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
PLATFORM AS A SERVICE (PaaS)
Characteristics of PaaS Contd…
6. PaaS decreases TCO (total cost of ownership), as there is no need to purchase all the frameworks,
programs, devices, and kits required to construct, run and deploy the application.
7. In-built scalability and elasticity to supply similar effectiveness.
8. It is flawless for agile programs development methodologies.
9. It assists in the fast building of applications in the cloud by supplying the essentials.

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27 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
SOFTWARE AS A SERVICE (SaaS)
Introduction
1. It is a software distribution model in which a cloud provider hosts applications and makes them
available to end-users over the internet.
2. In this model, an Independent Software Vendor (ISV) may contract a third-party cloud provider to
host the application. Or, with larger companies, such as Microsoft, the cloud provider might also be
the software vendor.
Why Use SaaS?
1. No upfront payment
2. Web browser is sufficient to access the application
3. Quick deployment or it is readily established for use
4. Better scalable
5. Multi-tenant makes SaaS highly efficient
Two Key events converged to create the model that is known as Software as a Service
1. First, the Internet became a commercial platform.
2. Second, software costs and complexities became so difficult that running, upgrading, and
managing software become too complex for many companies to manage. This was especially true
for small- and medium-sized companies that didn’t want the expenses of managing all the
components.

@Mr. Ajay Kumar Badhan

28 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
SOFTWARE AS A SERVICE (SaaS)
Characteristics of SaaS
1. SaaS applications likewise support what is conventionally known as application customization.
2. The application can be customized to a stage where it was conceived on a set of predefined
configuration options.
3. SaaS applications are revised more often than customary software. This is endowed by the following
factors:
a. The application is hosted centrally, so new add-ons can be put in place without installing new
software.
b. The application has a single configuration, developing and checking faster.
c. The application vendor has access to all clientele data, expediting conceive and regression
testing.
d. The solution provider has access to client demeanor inside the application (usually by WWW
analytics), making it simpler to recognize areas where there is scope for improvement.

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29 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
SOFTWARE AS A SERVICE (SaaS)
Some of the SaaS Applications

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30 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
COMPARISION OF SERVICES
Google App Windows
Amazon AWS Force.com Rack space Go Grid
Engine Azure
Cloud PaaS PaaS
PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
Operating Runtime Operating Software Operating Operating
System 1. Java Runtime System 1. Unlimited System System
1. Red Hat Environment 1. Windows real-time 1. Linux 1. Windows
Enterprise 2. Python Server database 2. Mac OS Server 2003
Linux Runtime 2008 customizati X 2. Windows
2. Windows Environment 2. Windows 7 on 3. Windows Server 2008
Server 3. Go Runtime 3. Windows 2. Programma 3. Cent OS 5.1
3. Oracle Environment Vista ble user Software 4. Cent OS5
Enterprise Features 4. Windows interface 1. Hadoop .3
Platform
Server 1. XMPP Azure 3. Real time 5. Redhat
Supported
4. OpenSolaris 2. URL Fetch Software websites Linux 5.1
5. Ubuntu Linux 3. Mail 1. Hadoop 4. Real time 6. Redhat
6. Debian 4. Memcache mobile Linux 5.4
7. Amazon – 5. Blobstore deployment Software
Linux 6. Cloud SQL 5. Hadoop 1. Hadoop
Software Software
1. IBM DB2 1. Hadoop
2. Microsoft SQL 2. External Server
Server 2005 like AppServer

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

31 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
Google App
Amazon AWS Windows Azure Force.com Rack space Go Grid
Engine
Cloud PaaS PaaS
PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
Any 1. Java 1. VB. NET 1. Apex 1. .Net 1. Java
2. Python 2. C# 2. Java 2. Python 2. PHP
3. Go 3. PHP 3. VB.Net 3. PHP 3. PERL
Language 4. BASIC 4. PERL 4. Java 4. C#
Supported 5. JAVA 5. PHP 5. Ruby 5. Python
6. Python 6. Python 6. Ruby
7. .NET 7. Ruby
8. Node.js 8. AJAX
1. Auto Scaling 1. Google 1. Windows Azure 1. Apex Lang. 1. BeanStalk 1. GoGrid
Tools Secure Data Platform code editor 2. Cloudvox cloud
2. AWS Mgm. Connector 2. Windows Azure 2. Enhanced 3. Paperclip control
Console 2. Windows SDK Metadata – command
3. JavaScript Azure 3. Microsoft Visual Support cloudfiles line
Cloud 4. Java S3 software Studio 2008 3. Upgrade 4. Olark Live 2. .Net API
Services & 5. Manager for developmen 4. Windows 7 Wizard Website SDK
Tools Amazon t kit Training kit 4. Chatter API Chat 3. Cloud
CloudFront 3. Windows 5. Mobile SDK 5. Force.com 5. Vanilla Wizards
Azure 6. Force.com open source
platform Migration cross cloud
tool

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

32 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
Amazon AWS Google App Engine Windows Azure Force.com Rack space Go Grid

Cloud PaaS PaaS

PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
1. MySQL 1. It does not 1. SQL Azure 1. Not 1. MySql 1. MSSQL
support external Applicabl 2. Microsoft 2008
database, but e SQL Workgroup
Integrated
provides datastore 3. Oracle 2. MSSQL
DB
of its own. 2008
Supported
Standard

1. Amazon S3 1. Automatic 1. Blobs: Two 1. In the 1. Infinite 1. Horizontal

– No limit on Scaling is built in types of blobs unlimited scalability server
the number with App Engine are stored in edition scaling
of objects 2. No matter how Windows Azure 2. Vertical
stored in a many you Storage, block server
Maximum bucket have/how much and page block scaling
Limits 2. Amazon EC2 data the 2. Page blobs can 3. Server
– volume application stores. be upto 1TB parking
sizes ranging 3. A single storage
from 1GB to can contain
1TB upto 100 TB of
blocks

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

 33 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
Amazon AWS Google App Engine Windows Azure Force.com Rack space Go Grid
Cloud PaaS PaaS
PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
Support for 1. Amazon 1. Not 1. Not 1. Not
Human Mechanical 1. Not Available 1. Not Available Available Available Available
only tasks Turk
1. Amazon S3 1. 99.9% 1. 100% 1. 100%
available percentag Network uptime,
with a e uptime uptime which
monthly guarantee means
Service
uptime 2. 1 hour 2. Network
Level
2. Amazon EC2 1. 100% uptime 1. 99.9% uptime hardware outage:
Agreement
available replaceme None
Availability
with an nt 3. Packet loss
Annual guarantee <0/1%
uptime 4. Latency
<5ms
1. Premium 1. Free support is 1. Developer 1. Basic 1. 24X7X365 1. Free 24/7
support - available support is support, days Live phone
Support silver 24X7X365 from charged on a Premium support support
Pricing 2. Gold support onsite cloud per support support and 2. Free 24/7
Policy is available hosting experts incident basis. with Expertise premium
administr support
ation

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

34 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
Google App
Amazon AWS Windows Azure Force.com Rack space Go Grid
Engine
Cloud PaaS PaaS
PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
1. Urgent – 1hrs 1. Basic 1. 24x7x365 1. Emergency
2. High – 4 business Support – online live cases – 30
hrs 2 chat & toll minutes
Support
3. Normal – 1 business free phone 2. Server down
Response 1. Not Available 1. Not Available
business day days support 3. Packet loss
Time
4. Low – 2 business 2. Premier hacked by 4. Routing
days Support – fanatical issues
2 hrs support
Prepaid 1. Available 1. Available 1. Available 1. available 1. Available 1. Available
plan
availability
1. Amazon flexible
payment service
and Amazon Dev 1. No
1. No special 1. No special 1. No special
Special Pay 1. No special special
Service Service Service
payment 2. Also provides a Service Service
available available available
Service consolidated available available
billing feature
that designates
one AWS account

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

 35 PART -I: CLOUD COMPUTING TECHNOLOGIES & APPLICATIONS
Google App Windows
Amazon AWS Force.com Rack space Go Grid
Engine Azure
Cloud PaaS PaaS
PaaS PaaS IaaS IaaS
Services IaaS IaaS
FEATURES
1. EC2
Virtualizati 1. Not 1. Modified 1. Not 1. Xen
modifies Xen 1. Xen Virtualization
on Platform Available Hypervisor Available Virtualization
virtualization

1. Multi server hosting

1. Control Panel
control panel to
1. Web is custom
Control 1. Web based 1. Web based 1. Web based manage servers,
based built for the
Panel Interface Interface Interface scale web
Interface Rackspace
applications &
cloud
Networks
Age of 1. Since
Service 1. Since early 1. Since July 1. Since
October 1. Since 2006 1. March 2008
2006 2008 2007
2008

1. US Safe
1. SAS70 Type Harbor
Industry
II 1. US Safe 1. US Safe 2. SAS 70 1. US Safe 1. SAS Type II
Regulatory
2. HIP AA Harbor Harbor Type II & Harbour 2. Safe Harbor Policy
Compliance
3. SOX Sys trust
Certified

@Mr. Ajay Kumar Badhan Source: Torry Harris Whitepaper

 1 CSE 423: VIRTUALIZATION & CLOUD COMPUTING

3/29/2022

by
Mr. Ajay Kumar Badhan
Assistant Professor
M.TECH[CST], B.TECH [CSE]
Email: [email protected]
Personal Blog: https://ajaykumarbadhan.wordpress.com/

Preferred Text Book

 Cloud Computing Bible: Barrie Sosinky – 1st Edition, Wiley India Pvt. Ltd.
 Cloud Computing: Fundamentals, Industry Approach & Trends by Rishabh Sharma, Wiley
 Cloud Computing: Principles & Paradigms by Raj Kumar Buyya, James Broberg, Andrzej
Goscinski, Wiley
@Mr. Ajay Kumar Badhan
2 PART -II: CLOUD ECONOMICS

CONTENT
CLOUD ECONOMICS

 Developing an Economic Strategy

 Exploring the Cost

 Laws of Cloudonomics

 Cost Estimation

@Mr. Ajay Kumar Badhan

3 PART -II: CLOUD ECONOMICS

CONTENT

@Mr. Ajay Kumar Badhan

4 PART -II: CLOUD ECONOMICS

INTRODUCTION
 It is the study of cloud computing costs, benefits, and the economic principles that underpin them
Developing an Economic Strategy
1. Reducing operating costs and optimizing IT environments are pivotal to understanding

and being able to compare the cost models behind provisioning on-premise and cloud-
based environments.
2. The pricing structures used by public clouds are typically based on utility-centric pay-

per-usage models, enabling organizations to avoid up-front infrastructure investments.

3. These models need to be assessed against the financial implications of on-premise

infrastructure investments and associated total-cost-of-ownership (TCO) commitments

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5 PART -II: CLOUD ECONOMICS

INTRODUCTION

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6 PART -II: CLOUD ECONOMICS

ELABORATION
Visibility on Cloud Inventory
1. As per the survey of IT professionals, 75% report, they lack visibility of their cloud

resources.
2. The lack of visibility of resources in the cloud can lead to poor management of those

resources.
3. Effective cloud cost management begins with an in-depth analysis of the entire

infrastructure. And if some resources in the cloud are going unused due to lack of
awareness, but the organization is still paying for them, cloud costs will climb
unnecessarily – and cut into the infrastructure savings and other financial benefits the
cloud can bring.
4. Admins who have access to a single pane of glass and detailed Resource Dashboards

are equipped to better organize, manage, and optimize that ecosystem across all accounts,
clouds, departments, and teams.
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7 PART -II: CLOUD ECONOMICS

ELABORATION
Cost Analytics
1. Complete visibility on the cloud services used, the actual usage patterns, and trends is the first step.
2. No matter your cloud environment, in addition to tracking what you have spent, it is important to
project what you will be spending.
3. You need consolidated as well granular details in the form of interactive graphical and tabular
reports across multiple dimensions, time frames in a multi-cloud environment to correlate data for
analysis and reporting against business objectives.
Role-Based Access
1. Permit users to actively manage the infrastructure after setting an Enterprise-wide mechanism that
clearly defines permissions and accessibility within the platform.
2. Limit the data and actions visible to users by organizations and roles and identify who launched,
terminated, or changed infrastructure, and what they did to take corrective action and control
costs.

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8 PART -II: CLOUD ECONOMICS

ELABORATION
Controlled Stack Templates
1. A crucial characteristic of any DevOps team is to enable teams more autonomy over-provisioning
resources without the red tape and extensive time delay of traditional IT environments.
2. If it is implemented without the accompanying automation and process best practices, decentralized
teams have the potential to produce convoluted and non-standard security rules, configurations,
storage volumes, etc., and therefore drive up costs.
3. Using predefined stack templates, Administrators can bake in security, network, and instance
family/size configurations, so that the process of deploying instances is not only faster but aligned
with the Departmental user’s roles and privileges and ensures only specific Resources are
provisioned.

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9 PART -II: CLOUD ECONOMICS

ELABORATION

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10 PART -II: CLOUD ECONOMICS

ELABORATION
Automated Alerts & notifications
1. Stay on top of day-to-day changes in your environment and participate in the critical decision by
sharing standard and custom-built reports with details on cost, usage, performance with stakeholders.
2. Automated alerts and notifications about authorization failures, budget overruns, cost spikes,
untagged infrastructure result in increased visibility and accountability.
Budgets
1. Define and allocate budgets for Departments, cost centers, projects and ensure approval
mechanisms to avoid cloud cost overrun by sending out alerts when thresholds are breached.
2. We can use the Show-back report to charge-back Departments for their cloud usage and limit the
cloud cost and use of resources.
3. This alignment of cost with value ensures the anticipated business benefit once the cloud resources
are in production.

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 11 PART -II: CLOUD ECONOMICS

ELABORATION
Policy-Based Governance
1. Using cloud-based governance tools the user can track cloud usage and costs and alert administrators
when the total usage for the account is greater than a certain value or when the total usage for a
vendor-specific product is greater than a certain value helps control cost.
2. Schedule operational hours to automatically shut down & start virtual machines, and automated
events that alert administrators on volumes that have been disassociated from Virtual machines
(standalone VMs) for more than a set number of days.
3. In short, make use of integrated data sources, metadata, or custom tags to define a set of rules that
lead to improved cost management, reporting, and optimization.

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12 PART -II: CLOUD ECONOMICS

EXPLORING THE COSTS

Up-Front Costs
1. These are associated with the initial investments that organizations need to make in order to fund the

IT resources they intend to use.

2. It includes

a. The costs associated with obtaining the IT resources.

b. Expenses required to deploy and administer them.

3. Up-front costs for the purchase and deployment of on-premise IT resources tend to be high.

Example: Hardware, Software, and the labor required for deployment.

4. Up-front cost for the leasing of cloud-based IT resources tends to be very low.

Example: The labor cost required to assess and set up a cloud environment

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13 PART -II: CLOUD ECONOMICS

EXPLORING THE COSTS

On-Going Costs
1. On-going cost represents the expenses required by an organization to run and maintain the IT
resources it uses.
2. The Ongoing costs for the operation of on-premise IT resources can vary. Examples include
licensing fees, electricity, insurance, and labor.
3. The Ongoing costs for the operation of cloud-based IT resources can also vary, but often exceed the
ongoing costs of on-premise IT resources (especially over a longer period of time).
4. Example: Virtual hardware leasing fees, bandwidth usage fees, licensing fees, and labor.

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14 PART -II: CLOUD ECONOMICS

LAWS OF CLOUDONOMICS
Joe Wienman of AT&T Global Services has concisely stated the advantages that cloud computing offers
over a private or captured system. A summary of Weinman’s “10 Laws of Cloudonomics” and his
interpretation is:
1. Utility services cost less even though they cost more.
Utilities charge a premium for their services, but customers save money by not paying for services
that they aren't using.
2. On-demand trumps forecasting.
The ability to provision and tear down resources (de-provision) captures revenue and lowers costs.
3. The peak of the sum is never greater than the sum of the peaks.
Enterprises deploy capacity to handle their peak demands. Under this strategy, the total capacity
deployed is the sum of these individual peaks. However, since clouds can reallocate resources across
many enterprises with different peak periods, a cloud needs to deploy less capacity.
4. Aggregate demand is smoother than the individual.
Aggregating demand from multiple customers tends to smooth out variation. Therefore, Clouds get
higher utilization, enabling better economics.
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15 PART -II: CLOUD ECONOMICS

LAWS OF CLOUDONOMICS
5. Average Unit Costs are Reduced by Distributing Fixed Costs over more units of Output
The average unit cost is reduced by distributing fixed costs over more units of output. The more
number of cloud providers can therefore achieve economics of scale
6. Superiority in Numbers is the most important factor in the result of a combat
Weinman argues that a large cloud’s size has the ability to repel botnets and DDoS attacks better
than smaller systems do.
7. Space-Time is a Continuum
The ability of a task to be accomplished in the cloud using parallel processing allows real-time
businesses to respond quickly to business conditions and accelerates decision making providing a
measurable advantage.
8. Dispersion is the inverse square of Latency
Latency, or the delay in getting a response to a request, requires both large-scale and multi-site
deployments that are a characteristic of cloud providers. Cutting latency in half requires four times
the number of nodes in a system.

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16 PART -II: CLOUD ECONOMICS

LAWS OF CLOUDONOMICS
9. Don’t Pull all your Eggs in One Basket
The reliability of a system with “n” redundant components and reliability of “r” is 1-(1-r)n.
Therefore, when a data center achieves the reliability of 99 percent, two redundant data centers have
the reliability of 99.99 percent (four nines) and three redundant data centers can achieve reliability of
99.9999 percent (six nines). Large cloud providers with geographically dispersed sites worldwide,
therefore, achieve reliability rates that are hard for private systems to achieve.
10. An Object at Rest tends to stay at Rest
A data center is a very large object. Private data centers tend to be located in places where the
company or unit was founded or acquired. Cloud providers can site their datacenters in what are
called “greenfield sites.”
A greenfield site is one that is environmentally friendly: locations that are on a network
backbone, have cheap access to power and cooling, where land is inexpensive, and the environmental
impact is low. A network backbone is a very high-capacity network connection.

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17 PART -II: CLOUD ECONOMICS

COST ESTIMATION
Introduction
1. Usually a commodity is cheaper than a specialized item, but not always.
2. Depending upon the situation, the user can pay more for public cloud computing than for owning and
managing the private cloud, or for owning and using the software as well.
3. That's why it's important to analyze the costs and benefits of your own cloud computing scenario
carefully and quantitatively.
4. The cost of a cloud computing deployment is roughly estimated to be:

Where:
a. UnitCost  It is usually defined as the cost of a machine instance per hour or another resource
5. Depending upon the deployment type, other resources add additional unit costs: storage quantity
consumed, number of transactions, incoming or outgoing amounts of data, and so forth.
6. Different cloud providers charge different amounts for these resources, some resources are free for
one provider and charged for another, and there are almost always variable charges based on resource
sizing.
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18 PART -II: CLOUD ECONOMICS

COST ESTIMATION
Introduction
7. To compare your cost-benefit with a private cloud, you will want to compare the value you determine
in the equation above with the same calculation:

8. Notice the additional term for Utilization added as a divisor to the term for CostDATACENTER. This
term appears because it is assumed that a private cloud has the capacity that can't be captured, and it
is further assumed that a private cloud doesn't employ the same level of virtualization or pooling of
resources that a cloud computing provider can achieve.

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