What is Cloud Computing?

The Cloud refers to the many data centers located throughout the world that house the hardware necessary to offer cloud services.

Cloud computing refers to the delivery of computing services over a proprietary network or the Internet.


Cloud Computing Services


Examples: Application, Monitoring, Content, Collaboration, Communication, Finance.

Platforms : Object Storage, Identity, Runtime, Queue, Database.

Infrastructure : Compute, Block Storage, Network.
  • The capacity of the service is scalable and elastic.
  • Scalability refers to the service provider’s ability to increase or decrease the amount of resources allocated to the users’ applications and data.
  • Elasticity refers to how quickly those resources can be allocated.

The main characteristics of a cloud service:

  • On-demand: provided as part of a standard package that includes everything the user needs.
  • The user can start using the service immediately with the service provider.
  • Changes are configured by the user, no code modification is required.
  • The service is available anytime, anywhere via standard web browsers and Rich Internet Application (RIA) on desktops, laptops, smart phones, tablets or any other type of hand held device.
  • It should not require installing any application or plug-in or purchasing additional hardware or software licenses to use the service.
  • The collective resources of the provider are pooled through multi-tenancy.
  • Basically software is installed once on a server and then its data and configuration settings are partitioned virtually.
  • So that multiple entities operate in isolation of each other while sharing the same physical resources, like storage, processing power and memory.
  • Service must allocate resources dynamically and rapidly, based on the demands of the application.
  • Lastly, public cloud services are paid for by the user on a pay-as-you-go basis.

What is the difference between On-Premise versus On the Cloud?

  • The biggest characteristic difference between on-premise solutions and cloud solutions include– how they are accessed.
  • On-premise solutions are installed on a user’s computers.
  • On the other hand cloud solutions are accessed via the internet, and typically hosted by a third-party vendor.
  • The second big difference is the “pay as you go” or on-demand usage service model (cloud) and the traditional upfront capital expenditure (on-premise).
  • For accounting purposes sometimes one of the more enticing aspects of using cloud services is the low cost/low entry point.
  • Clouds offerings are generally platform neutral (any browser) and clients have the ability to scale resources both up and down as needed, also known as “rapid elasticity”.
  • Resource pooling is yet another attractive characteristic of cloud offerings, as clients share resources, allowing the cloud vendor to distribute the cost savings to all of its clients (multi-tenancy).

No need to worry about upfront costs:

  • Investing in licensing, IT resources or infrastructure enhancements can be costly for any organization.
  • For small and mid-size organizations that have smaller budgets to work with, Cloud technologies can provide additional options that will help positively impact the bottom line.
  • With Cloud technologies, you leverage the software-as-a-service (SAAS) subscription model and benefit from a convenient and predictable monthly fee that eliminates setup fees, licensing costs, consulting services and other fees.

No need to worry about upgrades, patches or staffing resources:

  • For the deployment and management of Application servers locally at the place of business (on-premise), you have to plan for routinely scheduled maintenance that will help to ensure optimal performance.
  • Using a cloud platform allows business owners to concentrate on running their business more efficiently rather than managing their technology environment for optimum performance, scalability.

No need to worry about security:

  • For most organizations, their business data is their most important asset.
  • Cloud solutions provide improved security, compliance, and manageability with effective planning. And they allow every member of the organization instant internet mobility and access to their business data 24/7, no matter the location.
  • Hence you can move your focus from technology management to business management.

No need to hire or train IT personnel:

  • One of the largest investments an organization are the costs associated with internal resources and training.
  • Cloud solutions provide business owners a better way to manage their technology because they no longer have to worry about integration and deployment, performance or security.

No need to worry about long deployment times:

  • One of the biggest advantages Cloud computing technologies provide from their on-premise counterpart is the ability to deploy quicker.
  • This is especially advantageous to small and mid-size business owners that need a fast time to value in order to achieve lower total-cost-of-ownership.
  • Cloud implementations are generally easier to integrate as the infrastructure is already in place and business owners no longer have to manage or plan for resources.

No need to worry about scalability:

Cloud technologies provide greater flexibility than on-premise systems, as businesses only pay for what they use, can easily scale to meet additional need and never have to make added investments to the infrastructure.

No need to worry about unknown service fees:

With cloud technologies, you leverage the subscription model and a convenient, fixed monthly fee structure that overrides expenses related to maintenance, cost of licensing, and consulting or service fees.

No need to worry about time to value:

  • No matter the size, implement enterprise resource planning (ERP) solutions to address business need and to improve bottom-line results.
  • Cloud solutions deliver lower total-cost-of-ownership (TCO), time to value than on-premise solutions if the technology maps directly to the business need.

No need to worry about managing your technology:

  • For many organizations, managing their technology often requires a team of experts.
  • Choosing cloud technologies puts their focus back on running their business instead of managing their technology and allows the organization to become more prosection.
  • Types of Cloud Computing

Cloud computing services fall into three categories:

  • Infrastructure-as-a-Service (IaaS)
  • Platform-as-a-Service (PaaS)
  • Software-as-a-Service (SaaS)
  • Infrastructure-as-a-Service (IaaS)

An IaaS provider satisfies its customers’ needs for computing resources by supplying servers, block storage, networking components and other hardware like firewalls and load balancers.

All the resources across the data center are pooled to provide on-demand access.

The service provider may also provide the operating system and some applications with which users build their own customized software images.

The provider is responsible for the equipment and the customer is responsible for the applications running on the equipment.


Infrastructure-as-a-Service (IaaS)

Customers are billed using a utility model, whereby the resources are made available to them as per their need and they are charged based on actual usage.

IaaS is also used by application developers to test new software before it is released and when a lot of resources are required to process large batches of data.


Platform-as-a-Service (PaaS)

A PaaS provider supplies an environment in which software developers can build and deliver web-based applications and services over the Internet.

Once the application is built, it runs on the provider’s servers and it is delivered to the users via the Internet.

Like IaaS, the cost of PaaS is determined by actual usage.


Platform-as-a-Service (PaaS)
The advantages of using a PaaS provider:

  • Operating systems can be changed easily to ensure compatibility

  • Development teams from all over the world can work together on a project

  • Development costs are greatly reduced

  • Examples of PaaS providers are

  • Microsoft Windows Azure

  • Bungee Labs

  • Work press

  • Force.com (part of Salesforce.com)

  • Google App Engine

  • Crunch Base and Oranges cape.

Software-as-a-Service (SaaS)

A SaaS provider hosts software applications and the data stored therein.

No part of the software resides on the user’s computer. Rather, users access the software over the Internet and typically pay for it with a subscription.

The advantages of a SaaS:

Users do not have to pay huge licensing fees.

They don’t need massive amounts of storage in-house, or have to worry about backing up data.

Another plus is that specially trained IT staff is not required to maintain or update the service or software as that is maintained by the vendor.

Examples of SaaS:

Business applications like Salesforce.com

NetSuite

Cornerstone on Demand

Google Apps

Office 365 by Microsoft

Other types of SaaS

Service commerce platforms combine characteristics of SaaS and MSP.

Managed Service Providers (MSP) is a sub-category of SaaS.

Some companies contract with MSPs to manage various internal systems, like telephony and computer networks.

Cloud-based MSPs tend to focus on subscription – based infrastructure management services.

Vendors sell automated solutions for businesses to buy and sell goods and services.

Their software is integrated with the systems of both buyers and sellers, helping them manage spending, process purchase orders and payments, negotiate contracts, manage their supply chain and control costs.

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