3. Introduction
Cloud computing as a style of computing in which scalable and
elastic IT-enabled capabilities are delivered as a service using
Internet technologies. -Gartner
3
Scalability means managing increase/shrinkage in demand
over time.
Elasticity means on-demand service. Consume what you need
and when you need.
If you are observing a spike in traffic/demand of your product,
increase the computing power and storage at that particular
time. If you are observing a decrease in demand, down size
the resources at that specific time.
1%
7%
13%
44%
35%
Relevance of Cloud Computing
It is important
but not critical
Don’t know No direct
Contribution
Makes
Contribution,
but not
understood
It is critical to
business
strategy and
success
Online survey, TNS Infratest
4. Types of Cloud Service Model
Cloud Computing
Service Model
Software as a
Service
Platform as a
Service
Infrastructure as a
Service
• Providing computing
infrastructure such as virtual
server space, bandwidth,
network connections, IP
addresses, and load
balancers
• It is about hosting.
• Example: Amazon Web
Services (AWS), Cisco
Metapod, Microsoft Azure,
Google Compute Engine
(GCE)
• It is similar to middleware
• Automatically and
transparently configures
servers in the background
• Typically includes operating
system, programming
language execution
environment, database, web
server.
• Example: AWS Elastic
Beanstalk, Windows Azure,
Heroku, Force.com
• Deliver software over the
Internet
• Instead of installing and
maintaining applications,
users access them via the
Web
• Applications feature a multi-
tenant architecture with the
same infrastructure and
code base
• Example: Google docs,
Gmail, Microsoft office365
4
5. Cloud Readiness Test
5
While cloud computing is revolutionary, it may not be the perfect solution for all situations. Below questionnaires will help in deciding
Q1. Does your start up need custom hardware/software?
If answer is Yes, find out specific hardware configuration is been provided by any cloud provider or not. Custom software normally
can’t be installed.
Q2. Does your start up work with large amount of data?
Data transfer is a variable cost and it may lead to very high cost. So a cost benefit analysis is required before moving to cloud.
Q3. Are you planning to undergo any compliance/certification for product?
Normally, before entering a particular sector or region, organization undergo compliance certification (e.g. HIPPA & PCI DSS, FERPA,
and US EU Safe Harbor). If you are planning for undergoing any such compliance then proper due diligence is required.
Q4. Does the cost of cloud computing exceeds building in-house/outsourcing/virtualized/Co-location?
Proper Cost benefit analysis, hidden cost analysis and opportunity cost analysis required
These questions should cause careful thought prior to adopting or avoiding the cloud.
6. Total Cost of Ownership (TCO)
6
It is the process of evaluating cloud against other models of computing such as on premises, virtualized and Co-location
TCO Evaluation Methodology
• Acquisition cost
• Operating cost
• Decommissioning and retiring system
• Comparing direct and indirect cost
• Opportunity cost (Time you can spent on
your business if cloud provider takes care
of infrastructure)
Acquisition and Operating Cost includes
• Server cost (hardware + software)
• Storage cost (hardware + system admin)
• Network cost (hardware + n/w admin)
• IT labor cost
7. Why move to Cloud
7
Organizations across sectors get hold up in the upfront
price of software and fail to aware about the total cost of
ownership (additional hardware, support, etc.).
Healthcare companies often invest nearly above 70-75%
of their IT budgets on maintaining internal infrastructure.
Cloud services enables you to pay for the resources usage.
It will help to take advantage of scale and reliability, two
things that most startups can’t afford internally.
Cloud enables other digital technologies such as social
media, mobility, big data and advanced analytics.
Reactively scale up and down cloud based resources
that have random or cyclical demand increase, paying
only for what you use and when you use; simplify
geographical expansion and load distribution; It also
helps to avoid building expensive physical private
webserver and application servers
10
Reasons
Total cost of
ownership
Mobility
High
Availability
Ease of
Management
Disaster
Readiness
No Server
Maintenance
Scalable
Computing
Enabler of
your
business
goals
Fast to
Market
Security
8. Cloud Deployment Model - Benefits & Risk
8
Cloud Deployment
Model
Private Cloud Public Cloud Hybrid Cloud
• Cloud infrastructure is
provisioned for exclusive
use and it may exist on or
off premises
• Good option for
organization that already
own datacenter and
developed IT infrastructure
and have particular needs
around security or
performance
• Risk: Migration of data and
application
• Cloud infrastructure is
provisioned for open use
and exist on the premises
of the cloud provider
• Risk: Data and processing
environment are not under
control of enterprises,
which for applications or
data with a security
requirement may raise
concerns
• Cloud infrastructure is a
composition of two or
more distinct cloud
infrastructures
• It combines benefits of the
controlled environment in
private clouds and rapid
elasticity of public clouds
• Risk: seamless integration
between the Private and
the Public cloud
9. How to move to Cloud
9
Leadership Team
Initially leadership/management team should take decision how the product/application will be deployed at client’s end. E.g.
will it be deployed on premise or on cloud or on both.
Code preparation
Once management team has decided that the application will be deployed on cloud or both on cloud or on premises the
application development needed to betaken care. Application is cloud ready if it can be seamlessly deployed on cloud. For
example while developing application we need to take care about file system, avoid OS specific features, keeping remote
store for temporary information.
Infrastructure Architecture
Once the application is cloud ready we need to decide we need to go for public/private/hybrid cloud. Then what should be
the architecture, should there be public subnet/both public private subnet. How different components (e.g. web server, app
server, database, load balancer) will interact with each other. What should be the type and sizes of the instance/component.
Security
Security is a very vital aspect. We need to take measures so that we can make sure somebody outsider can’t access the
data/application. For example authorizing a particular IP for accessing, password need to be hashed/salted.
Testing
Preparing a test environment mirroring to the production and testing the application end to end before go live.
10. Cloud Infrastructure Architecture
10
VPC with single public subnet
Recommend if you need to run a
single-tier, public-facing web
application, such as a blog or a
simple website
VPC with public and private subnet
Recommend if you want to run a public-
facing web application, while
maintaining back-end servers that aren't
publicly accessible. Example is a multi-
tier website, with the web servers in a
public subnet and the database servers
in a private subnet
VPC with public and private
subnet and hardware VPN access
Recommend if you want to extend
your network into the cloud and also
directly access the Internet from your
VPC.
11. Use Cases
11
Use Case 1: Worried about hosting applications/website?
Host your Website/application on Cloud with less cost and
minimal effort
Use Case 2: Need Proof of concept before building complex
infra?
For applications which require complex infrastructure for testing
environment, there cloud can be used as an eliminator. It is a cost
effective alternative for proof-of concept services try out without
capital investment
User Case 3: Facing shortage of infrastructure?
For load or performance testing, instead of real machines, cost
effective cloud solutions can be used
User Case 4: Looking for protecting your business?
As part of disaster recovery plan, cloud infrastructure/environment can
be stand as a hot standby (live replica of files and data)
