Cloud Computing

Cloud computing

Service types -1 • Cloud computing is configurable use of shared computing resources that are delivered as a service over a network (typically the Internet). The name comes from “cloud” that represents internet infrastructure.  Infrastructure as a service (IaaS): Cloud providers offer computers, virtual machine image library, raw (block) and file-based storage, firewalls, load balancers, IP addresses, virtual local area networks (VLANs), and software bundles. Examples are Amazon Cloud Formation, Google Compute Engine.  Platform as a Service (PaaS): Cloud providers deliver a computing platform typically including operating system, programming language execution environment, database, and web server. Examples are Amazon Elastic Beanstalk, Google App Engine.  Software as a service (SaaS): Cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. There is no need to install, run and maintain the application on the cloud user's own computers. Examples are Google Apps, Salesforce.com and Microsoft Office 365.

Service types -2  Storage as a service (STaaS): Cloud service provider rents space in their storage infrastructure on a subscription basis.  Security as a service (SECaaS): Cloud service provider offers security services such as authentication, anti-virus, anti-malware/spyware, intrusion detection, and security event management.  Data as a service (DaaS): This is a SaaS extension. Data can be provided on demand, as Service oriented architecture (SOA) has rendered data platform irrelevant.  Test Environment as a service (TEaaS): Software and its associated test data are hosted in cloud. Users access them using a thin client (web browser over the Internet).  IT as a service (ITaaS): In-house, enterprise IT organizations may offer any or all of above services. • End users access cloud-based applications through a web browser, lightweight desktop or mobile app while the business software and user's data are stored on servers at a remote location.

History • Earlier in 1990, telecom companies offered virtual private networks that better utilized network bandwidth at low cost, by switching traffic. Cloud computing extends this to cover servers and network infrastructure. • John McCarthy opined in the 1960s that "computation may someday be organized as a public utility.“ Herb Grosch postulated that the entire world would operate on dumb terminals powered by about 15 large data centres. Grosch's law in 1965 stated that computers added economy as the square root of the increase in speed -- that is, to do a calculation 10 times as cheaply you must do it 100 times as fast. • Amazon launched Amazon Web Services as utility computing in 2006. IBM announced Smarter Computing framework in 2011. • Cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand. • Cloud computing relies on sharing of resources to achieve economies of scale similar to a utility (like the electricity grid) over a network.

Characteristics -1 • Agility improves with users' ability to re-provision technological infrastructure resources. • Cloud computing systems typically use REST-based Application programming interfaces. REpresentational State Transfer (REST) is a style of software architecture for distributed systems. This allows loose coupling among origin servers, gateways, proxies and clients on World Wide Web. • Capital expenditure is converted to operational expenditure, with usage-based options. • Device and location independence enable users to access systems using a web browser regardless of their location or device (e.g., PC, mobile phone). • Virtualization allows servers and storage devices to be shared and utilization be increased. Applications can be easily migrated from one physical server to another.

Characteristics -2 • Multi-tenancy enables sharing of resources and costs across a large pool of users thus allowing for centralized infrastructure, better utilization and efficiency. • Reliability is improved if multiple redundant sites are used, providing for business continuity and disaster recovery. • Performance is monitored, and consistent and loosely coupled architectures are constructed using web services as the system interface. • Maintenance of cloud applications is easier, because they do not need installation on each user's computer. • Cloud engineering encompasses diverse areas such as systems, software, web, performance, information, security, platform, risk, and quality engineering. • Deployment models can be public, private, community, or hybrid. Public cloud can be free or pay-per-use model. Private cloud is for single organization, whether managed internally or by 3rd party. Hybrid cloud composes of 2 or more clouds.

Bajaj Finance Case •    •   

Customer Different risk-return profile High volume growth (6 million) Quick loan approval Company Aging IT application lacking accuracy, consistency and scalability In-house CRM using MS Excel and Access Need for new CRM to manage back and front offices, improve loan turnaround time and handle promotion campaigns  Offer personal loan to customers with good payment record

Cloud computing solution • Cloud computing  Saves capital cost and maintenance efforts on outsourced IT infrastructure (Initial cost: 15 lakhs)  Access data and software services (SaaS) using internet  300 salespersons used Salesforce.com in 2009  Quicker roll out of new products and services across distribution  Integrated call centre application dialer, credit bureau, mobile services and GoogleMaps (customer locations)  Better uptime (2 x 15 minutes during 9 months)  Better throughput (from 1500 to 8500 loan applications per day, one transaction per 4 seconds)  SMS to dealers on loan approval  Loan turnaround time reduced from 45 to 4 minutes