UNIT – I

CLOUD SERVICE MANAGEMENT FUNDAMENTALS

Cloud Ecosystem, The Essential Characteristics, Basics of Information Technology Service
Management and Cloud Service Management, Service Perspectives, Cloud Service Models,
Cloud Service Deployment Models
CLOUD SERVICE MANAGEMENT FUNDAMENTALS
Cloud computing is the on-demand delivery of IT resources over the Internet with pay-as-you-go
pricing. Instead of buying, owning, and maintaining physical data centers and servers, you can access
technology services, such as computing power, storage, and databases, on an as-needed basis from a
cloud provider.

Who is using cloud computing

• Organizations of every type, size, and industry are using the cloud for a wide variety of use
cases, such as data backup, disaster recovery, email, virtual desktops, software development
and testing, big data analytics, and customer-facing web applications.

• For example, healthcare companies are using the cloud to develop more personalized
treatments for patients.

• Financial services companies are using the cloud to power real-time fraud detection and
prevention. And video game makers are using the cloud to deliver online games to millions
of players around the world.

Cloud Computing History

• Mainframe – 1950
• Virtualization – 1970s
• Internet by ARPANET – 1980s
• Salesforce (CRM) – 1999
• AWS(IAAS – EC2,S3,RDS) – 2006
• GAE(PAAS) – 2008
• Windows Azure (OS) – 2008
Benefits of cloud computing
• Agility: The cloud gives you easy access to a broad range of technologies so that you can
innovate faster and build nearly anything that you can imagine. You can quickly spin up
resources as you need them–from infrastructure services, such as compute, storage, and
databases, to Internet of Things, machine learning, data lakes and analytics, and much more.

• Elasticity: With cloud computing, you don’t have to over-provision resources up front to
handle peak levels of business activity in the future. You can scale these resources up or down
to instantly grow and shrink capacity as your business needs change.

• Cost savings: pay for IT as you consume it.

• Deploy globally in minutes :With the cloud, you can expand to new geographic regions and
deploy globally in minutes. For example, AWS has infrastructure all over the world, so you
can deploy your application in multiple physical locations with just a few clicks. Putting
applications in closer proximity to end users reduces latency and improves their experience.
Cloud Ecosystem
• A cloud ecosystem is defined as a complex system of cloud services, platforms, and
infrastructure used for the storage, processing, and distribution of data and applications
through the Internet.

• It consists of multiple parts: cloud providers, software developers, users, and other services,
which are integrated into a prolific and adaptable architecture for computing assets.

• This ecosystem enhances the ability of businesses and individuals to lease computational
solutions at will, in line with flexibility, innovation and cost sensitivity in the digital frontier.

Cloud Ecosystem Components

• Cloud Providers: These are the main ones that provide infrastructures, platforms, and
software or services through the World Wide Web. Some notable players that offer cloud
computing services include AWS, Microsoft Azure, GCP, and IBM Cloud, among others.

• Users: Customers include businesses, organizations, developers, and individuals that use
cloud services intending to host their applications, store data, or use virtual machines.

• Developers: Technologists also known as developers are essential for the construction and
deployment of applications in cloud systems. They use cloud systems for developing,
integrating, and implementing software applications with the support of the opportunities
given by the cloud.

• Third-party Service Providers: These are companies or individuals that operate in the same
value chain as cloud service providers but perform different roles. They can offer security
services for cloud environments, management or monitoring of cloud services as well as
advisory services to improve the efficiency of cloud solutions.

• Regulatory Bodies: This notion is true as regulatory bodies that encompass the provision and
utilization of cloud services exercise appropriate oversight and govern compliance with data
protection and relevant regulations.

• Partners and Resellers: The value-added resellers and partnerships are important in
extending the market coverage of the cloud providers through providing services, solutions,
and support to customers. They frequently deliver specialized services concerning geographic
regions in addressing the varying demands of users.
 • Integration Partners: Integration partners are dedicated to the integration of different
aspects of cloud services, and various applications to improve their usage in the cloud, making
them effective in usage of the available resources.

• End Users: Consumers request, use and receive direct value from cloud services, seeking to
obtain applications, data, and services from existing online clouds for their purposes, such as
software applications, streamed content, or subscription services.

Cloud Deployment Models

Public cloud
• Public clouds are owned and operated by third-party cloud service providers, which deliver
computing resources like servers and storage over the internet.

• Microsoft Azure is an example of a public cloud. With a public cloud, all hardware, software,
and other supporting infrastructure is owned and managed by the cloud provider. You access
these services and manage your account using a web browser.
Private cloud :
• A private cloud refers to cloud computing resources used exclusively by a single business or
organization.

• A private cloud can be physically located on the company’s onsite datacenter. Some
companies also pay third-party service providers to host their private cloud.

• A private cloud is one in which the services and infrastructure are maintained on a private
network.

Hybrid cloud :
• Hybrid clouds combine public and private clouds, bound together by technology that allows
data and applications to be shared between them.

• By allowing data and applications to move between private and public clouds, a hybrid cloud
gives your business greater flexibility and more deployment options and helps optimize your
existing infrastructure, security, and compliance.
 Types of cloud services
IaaS(Infrastructure as a service)
• Instead of purchasing computer hardware, storage devices, and networking services
directly, IaaS allows you to rent them from a 3rd party.

• After that, you can configure the operating systems and applications you want, and
scale the infrastructure up or down based on their processing and storage
requirements.

• This helps users to maintain cost-effective control of their computing platform.

• Pros of IaaS
• Hardware infrastructure costs are low or zero, including servers, storage, networking
services, and other related systems. As a startup, you won't need to invest in costly
infrastructure.
 • Scalability is excellent. This is especially true of cloud-based solutions, which give
you access to more tools to help you scale your apps.

• Cons of IaaS

• IaaS does not always have the lowest overall cost of ownership (TCO), and the team
would be responsible for the size of the IT management.

• The cost of IaaS is difficult to estimate. IaaS is appealing because of its scalability but
assumes higher-than-average costs. Users can forget to switch off instances, resulting
in higher costs.

PaaS : Platform as a service (PaaS)

• refers to cloud computing services that supply an on-demand environment for developing,
testing, delivering, and managing software applications.

• PaaS is designed to make it easier for developers to quickly create web or mobile apps,
without worrying about setting up or managing the underlying infrastructure of servers,
storage, network, and databases needed for development.

• PaaS providers control infrastructure, operating systems, software upgrades, and storage
requirements for developers, saving them time

Pros of PaaS

• It enables administrators a great deal of control over the platform software and the
applications created with it.

• These cloud platforms also support and enable multiple programming languages, allowing
developers to work on a variety of projects.

Cons of PaaS

• You just have control of what is installed on the platform, and if there is a system failure, the
program will be lost.

• There may be unpredictably high charges, especially as the service develops.

• You have less leverage over the customers and less versatility.

• To get the most out of PaaS, you might need some basic coding skills.

SaaS : Software as a service (SaaS)

 • It is a method for delivering software applications over the internet, on demand and typically
on a subscription basis.

• With SaaS, cloud providers host and manage the software application and underlying
infrastructure, and handle any maintenance, like software upgrades and security patching.

• Users connect to the application over the internet, usually with a web browser on their phone,
tablet, or PC.

Pros of SaaS

• There's no need to download anything since it's already working on your browser. All you
have to do now is sign up for an account. There are also applications for mobile devices.

• You can use the application on any laptop, and all you have to do is log into your account.

• The app will be accessible to any of your employees or associates without the need to update
it. All employees will have access to the app and will be able to sign in.

Cons of SaaS:

You don't have any leverage over the software's architecture. You're reliant on it if there's a system
failure

.
 The Essential Characteristics of Cloud Computing
On-demand self-service:
With the advent of AWS, Microsoft Azure, Google Cloud, and other public cloud platforms, it is now
possible to access the IT tools much more quickly.
• Also don’t need to provision the servers, databases, or other computing capabilities yourself,
and you can get started without understanding the underlying technology.
Resource pooling:
• Multi-tenant architectures enable cloud providers to accommodate numerous users
simultaneously, abstracting workloads from the underlying hardware.
• Customers share applications or infrastructure while maintaining privacy and security, though
they might not know the exact location of their resources. Custom hardware and abstraction
layers enhance security and resource accessibility.
Scalability and rapid elasticity
• Clouds facilitate easy addition or removal of compute, storage, and networking assets,
optimizing workload performance and preventing bottlenecks.
• Traditional on-premises architectures lack this flexibility, leading to idle resources during
low-activity periods. Enables swift provisioning and release of cloud services, offering
practically unlimited capabilities to scale based on demand. Users can engage with these
resources anytime and scale usage, capacity, and costs without additional contracts or fees.
Pay-per-use pricing:
• This characteristic shifts IT spending from capital expenses (Capex) to operational expenses
(Opex) with per-second billing, emphasizing economies of scale. Careful resource
management is crucial to avoid overspending, as dynamic usage demands optimization of
virtual machines (VMs).
Measured service:
• Cloud computing monitors resource utilization (e.g., VMs, storage, processing) to calculate
usage, aligning with the pay-per-use model for billing transparency and efficiency.
Resiliency and availability:
• Cloud providers employ redundancy techniques and availability zones to minimize downtime
and single points of failure.
• Enterprises can extend workloads across zones for added resilience, though contingency plans
remain necessary.
Security:
• Cloud vendors prioritize security, leveraging expert teams and advanced measures. However,
the shared responsibility model necessitates users to manage application-level security.
• Understanding the delineation between provider and user responsibilities is crucial to avoid
data exposure.
Broad network access:
• Cloud's pervasive accessibility allows data upload and retrieval from anywhere with internet
access, appealing to enterprises with diverse operating systems and devices. Cloud providers
monitor access metrics to ensure quality of service and adherence to service-level agreements.
IT service management(ITSM)
• Information technology service management (ITSM) is the practice of planning,
implementing, managing and optimizing the end-to-end delivery of information technology
services to meet user needs and business goals.

• ITSM helps businesses improve the user experience and gain greater productivity from IT
infrastructure.

• ITSM can also help organizations drive business strategies, maintain compliance with
regulatory and organizational requirements and reduce risk by embedding controls into IT
service design, delivery and management.

• ITSM relies on software tools, automation and proven procedures. If a customer contacts a
service desk to report a problem with a computer workstation, request a new license or ask
for access to a software asset, ITSM outlines the process and guides the workflow that will
fulfill these requests.

• IT teams customize their approach to ITSM based on customer needs and business initiatives.

• By implementing repeatable, consistent and predictable services, with a clear set of

procedures and systems, ITSM can increase IT system efficiency and productivity.

• Promotes flexibility : As technology evolves and changes, IT demands also change. Strong
ITSM practices help organizations manage changes in a way that is easily understood,
efficient and minimally disruptive.

• Enforces standardization: ITSM frameworks offer standardized protocols and practices that
reduce the ad hoc nature of older IT strategies. Standardization allows for the easier and more
precise creation of a knowledge base and helps employees learn and use a common language
that can be extended to any IT-related tasks.

• Improves visibility: ITSM promotes transparency and gives stakeholders greater visibility
into IT processes. Many platforms include self-service features that provide stakeholders with
the information and tools needed to resolve issues without assistance from IT personnel.

• Drives process efficiency: ITSM provides a well-established, easy-to-follow procedure for

such requests(Eg:Request for new laptop)
• The exact workflow varies due to an organization’s specific needs, but the idea is to make
service desk requests trackable through request tickets, which are then routed to the
appropriate team, instead of being handled on an ad hoc case-by-case basis.

• This improves service delivery by reducing uncertainty: the customer or client who needs a
new laptop knows exactly what to do to secure their new equipment and where in the process
their request stands.

• Accelerates response times : ITSM systems use automation to process and assign requests

ITSM frameworks

ITSM frameworks can help guide an organization as it begins the task of modernizing,
optimizing and streamlining IT.

The following are the important ITSM framework:

• Information Technology Infrastructure Library (ITIL)
• DevOps
• COBIT (Control Objectives for Information and Related Technologies)
• ISO/IEC 20000
• Microsoft Operations Framework (MOF)
Information Technology Infrastructure Library (ITIL)
• The British government created ITIL in the 1980s. At its inception, they were looking for a
set of standards to improve IT performance. Axelos owns ITIL. In 2019, they released the
latest version, ITIL 4, which takes a more holistic and adaptable approach to ITSM.
• ITIL’s primary focus is on optimizing the efficiency and effectiveness of IT processes,
ensuring that IT services are reliable, scalable, and responsive to the ever-changing demands
of the business and its customers.
• It consists of a series of stages (Service Strategy, Service Design, Service Transition, Service
Operation, and Continual Service Improvement) and associated processes that guide
organizations in delivering and managing IT services.
• Service Strategy : This stage involves identifying customer needs and determining the
services that the IT service provider will offer to meet those needs.
• Service Design: Service Design is the stage where the great ideas and goals from Service
Strategy are turned into a concrete plan. It’s like being an architect—creating detailed
blueprints to make the vision for a building a reality.
 • Service Transition: The Service Transition stage manages the process of moving new or
changed services into the live environment. In this stage, the focus is on ensuring a smooth
and controlled transition of services from development to production.
• Service Operation: The Service Operation stage is about of delivering and supporting IT
services on a day-to-day basis.
• Continual Service Improvement (CSI) : This stage is designed to ensure that IT services
continue to meet the evolving needs of the business and deliver value over time.

Benefits of the ITIL Service Lifecycle

• The ITIL service lifecycle has many benefits for modern IT service management:
• Practical and organized: The lifecycle provides a clear plan for managing IT services from
start to finish.
• Clear roles and responsibilities: Each stage of the lifecycle outlines specific roles and
responsibilities, ensuring accountability and efficiency.
• Focuses on continuous improvement: The lifecycle encourages ongoing efforts to improve
IT services, keeping organizations flexible and able to adapt to changes.
• Aligns with business needs: Starting with Service Strategy, the lifecycle ensures that IT
services support the organization’s overall goals.

DevOps
• DevOps is a mindset which focuses on decreasing time to market based on smaller and more
frequent releases, consistency and risk reduction.
• DevOps use orchestration and automation to replace human activities in infrastructure
provisioning, integration, testing, and deployment.
• Despite the importance of tools to enable automation, these capabilities do not imply a true
DevOps environment.
 • A true DevOps organization is dependent on the adoption of its core principles including
culture, sharing, lean and AGILE, and measurement in addition to automation.

COBIT (Control Objectives for Information and Related Technologies)

• COBIT is an IT governance framework created in 1996 by the Information Systems Audit
and Control Association (ISACA).
• It provides guidance for businesses that seek to use IT services to minimize risk, help ensure
compliance with regulatory mandates and achieve better business outcomes and can be
especially useful for organizations that have significant interactions with governance.
ISO/IEC 20000
• The first international standard for service management, ISO/IEC 20000 was created in 2005
and is used by organizations around the world.
• ISO/IEC 20000-1 is an internationally required standard that provides the framework for
implementing Service Management System (SMS) in your organization.
Microsoft Operations Framework (MOF)
The Microsoft Operations Framework (MOF) provides guidance that enables organizations to
achieve mission-critical system reliability, availability, supportability, and manageability of
Microsoft products and technologies

Cloud Services Management

• Cloud service management refers to the processes, tools, and policies that organizations use
to effectively manage their cloud computing environments. This includes both the technical
and administrative aspects of cloud services, such as provisioning, monitoring, securing, and
optimizing cloud resources.
• The goal is to ensure that cloud services align with business needs while minimizing risks,
controlling costs, and ensuring performance.
Business Support
Customer Management in Cloud Service Management:
• Customer management in cloud service management involves overseeing customer
relationships, onboarding, support, and overall satisfaction with the cloud services provided.
• Customer Onboarding: The process of introducing new customers to the cloud platform.
This includes account setup, resource provisioning, and training for using cloud services.
• Service Delivery & Support: Ongoing communication and troubleshooting, managing
service tickets, and delivering customer support (through tools like Zendesk or Freshdesk).
• Account Management: Regular touchpoints to ensure that customers are utilizing the cloud
services to their full potential and solving issues as they arise.
• Usage Tracking & Alerts: Monitoring how much of the cloud infrastructure (e.g., storage,
bandwidth, VMs) customers are using to ensure they aren’t over- or under-using resources.
• Tools/Technologies: Salesforce, Zendesk, HubSpot, ServiceNow (for service
management).

Contract Management in Cloud Service Management

• Cloud service providers typically have service agreements with customers that define the
terms and conditions of cloud service usage, including SLAs (Service Level Agreements) and
compliance commitments.
 • Service Level Agreements (SLAs): Cloud contracts usually include SLAs that guarantee
uptime, data security, support response times, etc. Managing and tracking these SLAs is
critical for customer satisfaction.
• Renewals & Upgrades: Cloud services are often subscription-based, so automating renewals,
upgrading contracts based on the customer’s growth, and offering customizations or
additional resources is key.
• Legal Compliance: Cloud service contracts must comply with data privacy regulations like
GDPR, CCPA, and industry-specific standards (e.g., HIPAA for healthcare). Managing these
requirements is a part of contract lifecycle management.
Inventory Management in Cloud Service Management
• In cloud environments, "inventory" refers to the cloud resources (virtual machines, storage,
network, services, etc.) being provisioned and managed.
• Resource Tracking: Keeping track of all virtual resources deployed (servers, storage volumes,
databases, etc.) is vital to ensure proper allocation, prevent overprovisioning, and manage
costs.
• Elastic Scaling: Cloud services often need to scale resources up or down depending on
customer demand. Inventory management helps track these changes and optimize resource
allocation.
• Tagging & Categorization: Resources should be tagged and categorized properly to monitor
usage, costs, and to facilitate better management.
• Tools/Technologies: AWS Management Console, Azure Resource Manager, Google Cloud
Console, Terraform (for infrastructure as code).
Accounting & Billing in Cloud Service Management
• Cloud providers offer services on a pay-as-you-go basis, subscription models, or usage-based
pricing. Accurate billing and accounting are essential for managing revenue, customer
invoicing, and ensuring profitability.
• Usage-based Billing: Many cloud services (like AWS, Google Cloud, and Azure) charge
customers based on the amount of resources used, such as computing power, storage, or
bandwidth.
• Subscription Billing: For recurring billing models (SaaS, PaaS), businesses need to track
subscription periods, tiered pricing, and any changes in the customer’s service plan.
• Cost Management & Optimization: Managing and forecasting customer usage to optimize
costs, offering customers detailed usage reports, and adjusting pricing based on consumption.
• Tools/Technologies: Chargebee, Zuora, AWS Cost Explorer, Google Cloud Billing,
Microsoft Azure Cost
Reporting & Auditing in Cloud Service Management
• Performance & SLA Reporting: Reporting cloud performance metrics such as uptime, system
availability, and response times against the defined SLAs.
• Security & Compliance Audits: Monitoring the compliance of cloud services with regulations
such as GDPR or industry standards like ISO 27001. Regular security audits and vulnerability
assessments are critical.
• Usage & Cost Reporting: Detailed usage reports and cost breakdowns help customers track
their consumption, avoid surprises in billing, and optimize their infrastructure use.
• Audit Trails: Maintaining detailed logs of user activity, resource provisioning, and system
changes for auditing purposes and ensuring compliance with security standards.
• Tools/Technologies: AWS CloudTrail, Google Cloud Audit Logs, Azure Monitor, Tableau,
Power BI, CloudHealth.
Pricing & Rating in Cloud Service Management
• Cloud pricing models can be complex, involving multiple service tiers, pay-as-you-go
models, and enterprise discounts. Setting the right prices and accurately rating services is
crucial to ensure competitiveness and profitability.
• Tools/Technologies: AWS Pricing Calculator, Azure Pricing Calculator, Google Cloud
Pricing Calculator, ProfitWell, Chargebee.

Provisioning & Configuration

• Rapid Provisioning in Cloud Service Management: Quick deployment of cloud resources
such as virtual machines (VMs), storage, databases, and other services. The ability to
provision resources on-demand is a key benefit of cloud computing and supports scalability
and agility.
 • Resource Changing in Cloud Service Management: Altering the type, size, or
configuration of cloud resources in response to changing business needs. This flexibility
allows businesses to optimize their cloud infrastructure in real time.
• Monitoring & Reporting in Cloud Service Management: It is crucial for ensuring the
availability, performance, and security of cloud services. These processes help businesses
track usage, optimize performance, and meet compliance requirements.
• Metering in Cloud Service Management: Metering is the process of tracking the usage of
cloud resources to ensure customers are billed accurately for what they use. It also helps in
managing costs and optimizing resource allocation.

Portability & Interoperability