Cloud Computing Introduction
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1 Cloud Computing Introduction Prof. Dr. Thomas M. Bohnert Prof. Dr. Marcel Graf
2 Content Basic Concepts Motivation and Value Proposition Definition of Cloud Computing Examples and Swiss Perspective 2
3 Starting Point Assume you are responsible for providing IT-Services (e.g. you are Head of IT, CIO, CTO, etc) 3
4 Considerations Capital Expenses (CAPEX) Expenditures creating future benefits. Incurred when a business spends money either to buy fixed assets CAPEX is a cost which cannot be deducted in the year in which it is paid or incurred and must be capitalized Examples acquiring fixed, and in some cases, intangible assets repairing an existing asset so as to improve its useful life upgrading an existing asset if its results in a superior fixture starting or acquiring a new business 4
5 Considerations Operational Expenses (OPEX) Ongoing cost for running a product, business, or system Day-to-day expense Operating expenses is the sum of a operating expenses for a period of time (e.g. month or year) Examples license fees and / or rental fees maintenance and repairs attorney fees and legal fees utilities, such as telephone, subscriptions, etc Insurance, property management, including a resident manager travel and vehicle expenses 5
6 Considerations Total Cost of Ownership (TCO) CAPEX + OPEX = TCO ICT related CAPEX ICT related OPEX Computer hardware and programs Rented space (hosting, data center) Network hardware and software Electricity (for related equipment, Server hardware and software cooling, backup power) Workstation hardware and software Testing costs, downtime, outage Installation and integration of and failure expenses hardware and software Backup and recovery process Purchasing research Technology training Maintenance, warranties and support Audit (internal and external) licenses Information technology personnel 6
7 Considerations How much ICT is needed? 7
8 Considerations ICT consumption models 8 Source: Swisscom
9 Considerations Concept of Busy Hour How much capacity to provide? TCO RoI Source: Characterization of the busy-hour traffic of IP networks based on their intrinsic features, J García-Dorado, J Hernández, J Aracil, J López de Vergara, S Lopez-Buedo 9
10 Considerations Evolution of business vs evolution of ICT Source: Amazon 10
11 Considerations In an ideal world... Source: Amazon 11
12 Considerations What kind of ICT do I need? 12
13 Considerations Very many choices... 13
14 Considerations How much ICT do I need? Knowledge, skill, ability, capability, capacity,... Hardware, Infrastructure, Platform, Application, Can I consume ICT when I needed it? Now, tomorrow, in one year,... Does ICT grow with my demands? From start-up, to SME, to enterprise,... Does ICT shrink with my demands? Seasons, financial crisis, retirement,... Can I pay for those ICT I actually use? Per day, per hour, per KByte, per Mbit/sec,... 14
15 Conclusions How much ICT do I need? Knowledge, skill, ability, capability, capacity,... Hardware, Infrastructure, Platform, Application, Can I consume ICT when I needed it? Now, tomorrow, in one year,... Does ICT grow with my demands? From start-up, to SME, to enterprise,... Does ICT shrink with my demands? Seasons, financial crisis, retirement,... Can I pay for those ICT I actually use? Per day, per hour, per KByte, per Mbit/sec,... Use service from ICT provider/expert On-demand, self-service Elasticity Elasticity Metered service, pay-as-you-go 15
16 Cloud Computing Definition Cloud Computing Principles: On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider. Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations). Resource pooling (multi-tenancy). The provider s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth. Rapid elasticity. Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time. Measured service (pay-as-you-go). Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service. Source: The NIST Cloud Computing Definition 16
17 Cloud Computing Definition Cloud Computing Service Models: Software as a Service (SaaS). The capability provided to the consumer is to use the provider s applications running on a cloud infrastructure. The applications are accessible from various client devices through either a thin client interface, such as a web browser (e.g., web-based ), or a program interface. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly configuration settings for the application-hosting environment. Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, and deployed applications; and possibly limited control of select networking components (e.g., host firewalls). Source: The NIST Cloud Computing Definition 17
18 Cloud Computing Definition Meanwhile, many additional services appeared Database as a Service, Integration as a Service, Games as a Service, etc Basically specific Services within a Service Model, instead of being a novel Service Model (category) itself Exception: Function as a Service (FaaS) Novel Service Model, also known as Server-less Computing Providers: AWS Lambda, Azure Functions, Cloud Functions, Manta, etc AWS: Serverless computing allows you to build/run applications without caring about provisioning, scaling, and managing any servers and supports virtually any type of application/service. In short: Submit your code (self-service), the provider runs it for you (on-demand) and charges on usage basis (pay-per-use) 18
19 Cloud Computing Definition Cloud Computing Service Models - User Mapping FaaS Source: 19
20 Cloud Computing Definition On Premises Infrastructure (as a Service) Container Virtualization Platform (as a Service) Function (as a Service) Software (as a Service) Applications Applications Applications Applications Applications Applications Data Data Data Data Data Data Runtime Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Middleware Middleware O/S O/S OS-level Virtualization O/S O/S O/S Virtualization Virtualization OS Virtualization Virtualization Virtualization Servers Servers Servers Servers Servers Servers Storage Storage Storage Storage Storage Storage Networking Networking Networking Networking Networking Networking Runt ime Runt ime You Manage Vendor Manages 20
21 Cloud Computing Definition Cloud Computing Deployment Models: Private cloud. The cloud infrastructure is provisioned for exclusive use by a single organization comprising multiple consumers (e.g., business units). It may be owned, managed, and operated by the organization, a third party, or some combination of them, and it may exist on or off premises. Community cloud. The cloud infrastructure is provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be owned, managed, and operated by one or more of the organizations in the community, a third party, or some combination of them, and it may exist on or off premises. Public cloud. The cloud infrastructure is provisioned for open use by the general public. It may be owned, managed, and operated by a business, academic, or government organization, or some combination of them. It exists on the premises of the cloud provider. Hybrid cloud. The cloud infrastructure is a composition of two or more distinct cloud infrastructures (private, community, or public) that remain unique (separate) entities, but are bound together by standardized or proprietary technology that enables data (storage) and application (compute) portability between the entities. Source: The NIST Cloud Computing Definition 21
22 Cloud Computing Definition Cloud Computing Deployment Models: Private Cloud (IaaS/PaaS/SaaS) Single User (Private, Cooperation) Community Cloud (IaaS/PaaS/SaaS) User Group (Private, Cooperation) Public Cloud (IaaS/PaaS/SaaS) Any User (Private, Cooperation) Hybrid (public and private) Cloud (IaaS/PaaS/SaaS) Single User/ Any User (Private, Cooperation) 22
23 Cloud Computing Definition Source: The NIST Cloud Computing Definition 23
24 Cloud Computing Definition: European View Source The Future of Cloud Computing, Opportunities for European Cloud Computing beyond Expert Group Report, January
25 Cloud Computing Definition - Beyond NIST Cloud Brokering Interlocutor that re-sells (brokers) Cloud Computing Services Virtual Private Cloud (VPC, by AWS) Provider-specific form of Hybrid Cloud Cloud Bursting A specific form of using a Hybrid Cloud. If resources in the public part are exceeded, use additional ones from a public provider Mobile Cloud ( Cloud Computing for delivering Telecom Services via Network Function Virtualization Cloud Regions/ Cloud Cells, Availability Zones See next slides Edge Computing See next slides More: 25
26 Cloud Computing Definition - Cloud Regions / Cells AWS Global Infrastructure The AWS Cloud operates 44 Availability Zones within 16 geographic Regions around the world. A Region is a physical location in the world where we have multiple Availability Zones. Each Amazon region is designed to be completely isolated from the other Amazon regions. This achieves the greatest possible fault tolerance and stability. An Availability Zones consist of one or more discrete data centers, each with redundant power, networking and connectivity, housed in separate facilities. These Availability Zones offer you the ability to operate production applications and databases which are more highly available, fault tolerant and scalable than would be possible from a single data center. 26
27 Cloud Computing Definition - Cloud Regions / Cells 27
28 Edge computing - The Future of Cloud (?) Drivers: Increased data generation at edge (IoT) Need for rapid response times in many applications Compute/storage in large DC complemented with more modest compute/storage closer to end user Microdatacentres Not just CDN (although related) Although need is recognized many questions remain Data location/jurisdiction Defining characteristics: VR requires 10ms latency Ownership and economic drivers being a key one Significant early/exploratory activity Lambda@Edge, Multi-access Edge Computing Consortium, TSM-ClComp-EN Cloud ComputingAzure Stack 28
29 Case Study: Amazon AWS Amazon Web Services started in 2006/2007 with two services, EC2 (virtual machines) and S3 (object storage). It is considered the first real cloud computing offering. In 2015 Gartner estimated that of total installed public cloud capacity Amazon holds 90% and Microsoft 5%. 2017: AWS $15B annual revenue, growing 42% year-over-year Amazon introduces new services in AWS at a very rapid pace. 29
30 Case Study: Amazon AWS
31 AWS - Cloud Pricing Models To maximize utilization of their infrastructure cloud providers offer different pricing models. Example AWS: It offers three instance models that differ in their availability and their pricing structure On-Demand Instances Reserved Instances Pay-by-the hour Start and stop as you wish Pay a yearly upfront fee and receive a discount on the hourly charge Start and stop as you wish Spot Instances Bid for unused EC2 capacity Mention your Spot Price and if the market rate is less than your Bid, you get your instance Instance automatically terminates if your Spot Price becomes less than the current market rate 31
32 AWS - Service Level Agreements Amazon EC2 Service Level Agreement "AWS will use commercially reasonable efforts to make Amazon EC2 and Amazon EBS each available with a Monthly Uptime Percentage (defined below) of at least 99.95%, in each case during any monthly billing cycle (the Service Commitment ). In the event Amazon EC2 or Amazon EBS does not meet the Service Commitment, you will be eligible to receive a Service Credit as described below. [...] To receive a Service Credit, you must submit a claim" The SLA includes an availability objective (99.95%) If objective not met, customer may receive credits on future usage (no refund, no indemnity) Customer has to monitor the service to detect outages and submit a claim, will not be notified by the service provider Monthly Uptime Percentage Service Credit Percentage Less than 99.95% but equal to or greater than 99.0% 10% Less than 99.0% 30% 32
33 Case Study: Microsoft Azure
34 Gartner Magic Quadrant for IaaS 34
35 Cloud Computing Market 35
36 Cloud Computing Market 36
37 Global Cloud Computing Market Cloud Companies 37
38 Swiss Perspective Many more: , HP to open Cloud Service Center in the Greater Zurich Area 38
39 Swiss Perspective 39
40 Annex 40
41 Cloud Computing Reality Check Cloud, we ve done this 20 years ago... Source: 41
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