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Cloud Computing Course
What is Cloud Computing?
Cloud computing is ubiquitous. It is the most talked about topic nowadays. Businesses talk about adopting
cloud software and solutions to reduce operational cost. We use emails which are stored somewhere in a remote
location. We upload our pictures to a website that stores them in cloud storage (e.g. iCloud). Our files are stored
in Amazon Cloud drive. Our videos are uploaded to YouTube. In today’s world, it is tough to imagine a
scenario where cloud computing has not touched our lives. So what exactly is cloud computing?
Cloud computing is a term used to signify a way of accessing software, infrastructure, and computing power
from a location other than our own. The resources usually reside in someone else’s computer or distant data
centres. Nowadays the reach of cloud computing is so vast that the resources are located in a different country
and continent that often we have no clue of the exact location. Think of the emails in your Gmail inbox. The
emails do not reside in our computers. Google serves these emails from the servers that reside in any of the data
centres located in Americas, Asia, or Europe.
All the elements inside the cloud – applications, platform, and infrastructure – are oblivious to the end users. All
the users need is the access devices such as laptops, phones, tablets, etc. and network connectivity to the cloud
that is mostly provided by Cloud service providers.
Definitions for Cloud Computing
Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources,
software, and information are provided to computers and other devices as a utility (like the electricity grid)
over a network (typically the Internet) – Wikipedia
Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be
rapidly provisioned and released with minimal management effort or service provider interaction.
The National Institute of Standards and Technology (NIST)
“Cloud Computing”, by definition, refers to the on-demand delivery of IT resources and applications via the
Internet with pay-as-you-go pricing. – Amazon
…the practice of using a network of remote servers hosted on the Internet to store, manage, and process data,
rather than a local server or a personal computer. – Google
According to NIST, the cloud computing model is composed of five essential characteristics, three service
models, and four deployment models.

Characteristics Service Models Deployment Models

On-demand self-service Software as a Service (SaaS) Public Cloud

Broad network access Platform as a Service (Paas) Private Cloud
Resource pooling Infrastructure as a Service Community Cloud
Rapid elasticity Hybrid Cloud
Measured service

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Cloud Computing History
Cloud computing is the result of evolution of a number of key technology concepts such as virtualization, grid
computing, multi-tenancy, scalability, and the exponential increase in computing power and storage.
Even though the origin of cloud computing is not exactly known, the analogy of cloud computing has been
existed since 1950s when mainframe computers became available to perform high-volume computing
processing. Mainframes were costly and bulky to use.
Therefore to make more efficient use of them, a practice evolved that allowed a number of thin clients (or static
computer terminals) to share the computing power of mainframes. And this is how ―resource pooling‖ and
―time-sharing‖ – key terms associated with cloud computing – came into common parlance.
The 1990s saw telecommunication service providers using virtual private network (VPN) to manage their
network bandwidth effectively. Depending on the demand load, they would switch the traffic to the available
servers. This process happened at the infrastructure and data centre level without the users being aware of it.
The telecommunication service providers began to use the cloud symbol to demarcate the boundary between the
network service providers and the users. In other words, it is akin to saying to end users, ―You do not need to
know where and how you get the network bandwidth as long as it is available to you uninterrupted. Leave it to
us.‖ In essence, this is where the concept of Infrastructure-as-a- Service took roots.
The decade of 2000s saw the actual emergence and evolution of Cloud computing to its present form. Scientists
and technologists explored ways to extend Cloud computing beyond applications and platforms. Technology
companies made major breakthroughs in their Cloud products and services. This decade saw the introduction
and popularization of ―pay-as-yougo‖ pricing model. Gartner predicted that Cloud computing would change the
relationship between consumers and providers of IT services. It also observed that ―organizations are switching
from company-owned hardware and software assets to per-use service-based models‖ so that the ―projected
shift to computing…will result in dramatic growth in IT products in some areas and significant reductions in
other areas.‖
Major cloud technology innovations were made in this decade. In 2008, OpenNebula came out with open-
source software for deploying private and hybrid clouds. In 2008, Rackspace – another major player in Cloud
space – launched OpenStack, an open-source cloud software. In 2011, IBM launched SmartCloud framework to
support Smarter Planet.
Companies such as Microsoft, Amazon, and Oracle also came out with your own Cloud products and services.
Today most of the technology companies have some presence in the Cloud market space. Today Cloud
computing has become so ubiquitous that people are no longer talking about the potential or implementation-
challenges of Cloud. The talk of the town is how Cloud platforms can be used for the next generation
innovations such as Big Data, Internet of Things, Mobility, Analytics, Digitization, and Advanced Research.
Characteristics of Cloud Computing
Cloud computing has a variety of characteristics, with the main ones being:
• Shared Infrastructure — Uses a virtualized software model, enabling the sharing of physical services, storage,
and networking capabilities. The cloud infrastructure, regardless of deployment model, seeks to make the most
of the available infrastructure across a number of users.

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• Dynamic Provisioning — Allows for the provision of services based on current demand requirements. This is
done automatically using software automation, enabling the expansion and contraction of service capability, as
needed. This dynamic scaling needs to be done while maintaining high levels of reliability and security.
• Network Access — Needs to be accessed across the internet from a broad range of devices such as PCs,
laptops, and mobile devices, using standards-based APIs (for example, ones based on HTTP). Deployments of
services in the cloud include everything from using business applications to the latest application on the newest
smart phones.
• Managed Metering — Uses metering for managing and optimizing the service and to provide reporting and
billing information. In this way, consumers are billed for services according to how much they have actually
used during the billing period.
Cloud Computing Service Models
Cloud Providers offer services that can be grouped into three categories.
1. Software as a Service (SaaS): In this model, a complete application is offered to the customer, as a service
on demand. A single instance of the service runs on the cloud & multiple end users are serviced. On the
customers‟ side, there is no need for upfront investment in servers or software licenses, while for the provider,
the costs are lowered, since only a single application needs to be hosted & maintained. Today SaaS is offered by
companies such as Google, Salesforce, Microsoft, Zoho, etc.
2. Platform as a Service (Paas): Here, a layer of software, or development environment is encapsulated &
offered as a service, upon which other higher levels of service can be built. The customer has the freedom to
build his own applications, which run on the provider‟s infrastructure. To meet manageability and scalability
requirements of the applications, PaaS providers offer a predefined combination of OS and application servers,
such as LAMP platform (Linux, Apache, MySql and PHP), restricted J2EE, Ruby etc. Google‟s App Engine,
Force.com, etc are some of the popular PaaS examples.
3. Infrastructure as a Service (Iaas): IaaS provides basic storage and computing capabilities as standardized
services over the network. Servers, storage systems, networking equipment, data centre space etc. are pooled
and made available to handle workloads. The customer would typically deploy his own software on the
infrastructure. Some common examples are Amazon, GoGrid, 3 Tera, etc.
Cloud Computing Deployment Models
1. Public Cloud
Public clouds are owned and operated by third parties; they deliver superior economies of scale to customers, as
the infrastructure costs are spread among a mix of users, giving each individual client an attractive low-cost,
―Pay-as-you-go‖ model. All customers share the same infrastructure pool with limited configuration, security
protections, and availability variances. These are managed and supported by the cloud provider. One of the
advantages of a Public cloud is that they may be larger than an enterprises cloud, thus providing the ability to
scale seamlessly, on demand.
2. Private Cloud
Private clouds are built exclusively for a single enterprise. They aim to address concerns on data security and
offer greater control, which is typically lacking in a public cloud. There are two variations to a private cloud:

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On-premise Private Cloud: On-premise private clouds, also known as internal clouds are hosted within one‟s
own data center. This model provides a more standardized process and protection, but is limited in aspects of
size and scalability. IT departments would also need to incur the capital and operational costs for the physical
resources. This is best suited for applications which require complete control and configurability of the
infrastructure and security.
Externally hosted Private Cloud: This type of private cloud is hosted externally with a cloud provider, where
the provider facilitates an exclusive cloud environment with full guarantee of privacy. This is best suited for
enterprises that don‟t prefer a public cloud due to sharing of physical resources.
3. Hybrid Cloud
Hybrid Clouds combine both public and private cloud models. With a Hybrid Cloud, service providers can
utilize 3rd party Cloud Providers in a full or partial manner thus increasing the flexibility of computing. The
Hybrid cloud environment is capable of providing on-demand, externally provisioned scale. The ability to
augment a private cloud with the resources of a public cloud can be used to manage any unexpected surges in
workload.
4. Community Cloud
The cloud infrastructure is shared among a number of organizations with similar interests and requirements.
This may help limit the capital expenditure costs for its establishment as the costs are shared among the
organizations. The operation may be in-house or with a third party on the premises.

Cloud Computing Companies

Many companies are delivering services from the cloud. Some notable examples include the following:
• Google — Has a private cloud that it uses for delivering Google Docs and many other services to its users,
including email access, document applications, text translations, maps, web analytics, and much more.
• Microsoft — Has Microsoft® Office 365® online service that allows for content and business intelligence
tools to be moved into the cloud and Microsoft currently makes its office applications available in a cloud.
• Salesforce.com — Runs its application set for its customers in a cloud, and its Force.com and Vmforce.com
products provide developers with platforms to build customized cloud services.
• Amazon Web Services (AWS) — It provides a cloud computing platform for all business sizes. AWS helps
business organization to choose their own computing platform as in need of the organization and pay for what
they use. Services provided AWS are:- Amazon Elastic compute cloud, Amazon Simple Storage services,
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Amazon Virtual Private Cloud, Amazon Cloud front, Amazon Relational Database and Amazon Simple Queue
services.
Communications in the Cloud
For service developers, making services available in the cloud depends on the type of service and the device(s)
being used to access it. The process may be as simple as a user clicking on the required web page, or could
involve an application using an API accessing the services in the cloud. Telcos are starting to use clouds to
release their own services and those developed by others, but using Telco infrastructure and data. The
expectation is that the Telco’s communications infrastructure provides a revenue generating opportunity.
Using the Communications Services
When in the cloud, communications services can extend their capabilities, or stand alone as service offerings, or
provide new interactivity capabilities to current services.
Cloud-based communications services enable businesses to embed communications capabilities into business
applications, such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM)
systems. For ―on the move‖ business people, these can be accessed through a smartphone, supporting increased
productivity while away from the office.
These services are over and above the support of service deployments of VoIP systems, collaboration systems,
and conferencing systems for both voice and video. They can be accessed from any location and linked into
current services to extend their capabilities, as well as stand alone as service offerings.
In terms of social networking, using cloud-based communications provides click-to-call capabilities from social
networking sites, access to Instant Messaging systems and video communications, broadening the interlinking
of people within the social circle.
Accessing through Web APIs
Accessing communications capabilities in a cloud-based environment is achieved through APIs, primarily Web
2.0 RESTful APIs, allowing application development outside the cloud to take advantage of the communication
infrastructure within it.

These APIs open up a range of communications possibilities for cloud-based services, only limited by the media
and signaling capabilities within the cloud. Today’s media services allow for communications and management
of voice and video across a complex range of codecs and transport types. By using the Web APIs, these
complexities can be simplified and the media can be delivered to the remote device more easily. APIs also
enable communication of other services, providing new opportunities and helping to drive Average Revenue per
User (ARPU) and attachment rates, especially for Telcos.

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Media Server Control Interfaces
When building communications capabilities into the ―core of the cloud,‖ where they will be accessed by another
service, the Web 2.0 APIs can be used, as well as a combination of SIP or VoiceXML and the standard media
controlling APIs such as MSML, MSCML, and JSR309. The combinations provide different capability sets, but
with MediaCTRL being developed in the Internet Engineering Task Force (IETF), it is expected that
MediaCTRL will supersede MSML and MSCML and have an upsurge in availability and more developments
after it is ratified. JSR309 is a notable choice for those seeking Java development, as it provides the Java
interface to media control.
This is an example of accessing services in the cloud through Web 2.0 and media control interface APIs.

Whether businesses are deploying communications services for access from outside of or within the cloud, the
environment is one that supports the speedy development and rollout of these capabilities.
Communications Scalability
To deliver on the scalability requirements for cloud-based deployments, the communications software should be
capable of running in virtual environments. This allows for easily increasing and decreasing session densities
based on the needs at the time, while keeping the physical resource requirement on servers to a minimum.
Applications of Cloud Computing
Cloud Computing is one of the most dominant field of computing resources online because sharing and
management of resources is easy using cloud. These properties have made it an active component in the
following fields as follows.
E-Learning
It is a new trend in the field of education that provides an attractive environment for students, faculty members,
and researchers. Students, faculty members, researchers can connect to the cloud of their organization and
access data and information from there.
Enterprise resource planning (ERP)
Use of Cloud in ERP comes into existence when the business of any organization grows. The work of managing
applications, human resources, payroll etc becomes expensive and complex. To overcome it service providers
can install ERP in the cloud itself.
E-Governance
Cloud computing can improve the functioning of a government by improving the way it provides the services to
its citizens, institutions and cooperation with other governments. This can be done by expanding the availability

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of environment, making environment more scalable and customized. It also cut off the burden of managing,
installing and upgrading applications.

Benefits of Cloud Computing

The following are some of the possible benefits for those who offer cloud computing-based services and
applications:
1. Cost Savings - Companies can reduce their capital expenditures and use operational expenditures for
increasing their computing capabilities. This is a lower barrier to entry and also requires fewer in-house
IT resources to provide system support.
2. Scalability/Flexibility - Companies can start with a small deployment and grow to a large deployment
fairly rapidly, and then scale back if necessary. Also, the flexibility of cloud computing allows
companies to use extra resources at peak times, enabling them to satisfy consumer demands.
3. Reliability - Services using multiple redundant sites can support business continuity and disaster
recovery.
4. Maintenance - Cloud service providers do the system maintenance, and access is through APIs that do
not require application installations onto PCs, thus further reducing maintenance requirements.
5. Mobile Accessible - Mobile workers have increased productivity due to systems accessible in an
infrastructure available from anywhere.
Challenges of Cloud Computing
The following are some of the notable challenges associated with cloud computing, and although some of these
may cause a slowdown when delivering more services in the cloud, most also can provide opportunities, if
resolved with due care and attention in the planning stages.
1. Security - One of the biggest challenges of cloud computing is its perceived security risks. There is a
general notion that anything hosted on cloud is not safe and secure; they are vulnerable to hackings and
data compromise.
2. Data Privacy and Integrity - As users, we are mostly concerned with data privacy. How do we know
that our sensitive personal information is not sold by the cloud service provider to a third-party?
3. Lack of Standards - Clouds have documented interfaces; however, no standards are associated with
these, and thus it is unlikely that most clouds will be interoperable. The Open Grid Forum is developing
an Open Cloud Computing Interface to resolve this issue and the Open Cloud Consortium is working on
cloud computing standards and practices. The findings of these groups will need to mature, but it is not
known whether they will address the needs of the people deploying the services and the specific
interfaces these services need. However, keeping up to date on the latest standards as they evolve will
allow them to be leveraged, if applicable.

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4. Management Capabilities - Despite there being multiple cloud providers, the management of platform
and infrastructure is still in its infancy. Features like „Auto-scaling‟ for example, are a crucial
requirement for many enterprises. There is huge potential to improve on the scalability and load
balancing features provided today.
5. Disaster Recovery - It is a concern of enterprises about the resiliency of cloud computing as data may
reside in multiple servers and geographical locations. In such a situation, what is the disaster recovery
plan if any of the servers go down? What if we lose data at a point in time due to server failure?
Organizations therefore are extremely concerned on the disaster recovery plan.
6. Regulatory and Compliance Restrictions - In some of the European countries, Government
regulations do not allow customer's personal information and other sensitive information to be
physically located outside the state or country. In order to meet such requirements, cloud providers need
to setup a data center or a storage site exclusively within the country to comply with regulations. Having
such an infrastructure may not always be feasible and is a big challenge for cloud providers.
7. Continuously Evolving - User requirements are continuously evolving, as are the requirements for
interfaces, networking, and storage. This means that a ―cloud,‖ especially a public one, does not remain
static and is also continuously evolving.

How does Cloud Computing Work?

As mentioned earlier, Cloud computing model is created so that customers pay only for usage; not for
investment in hardware, software licenses, upgrades, maintenance fees, and man-power cost to run the service
in-house. A major reason for this shift is the increasing commoditization of IT. Internet has become cheaper and
available everywhere, cost of IT platforms have reduced substantially, hardware could be commoditized,
storage has become cheaper, virtualization technologies have become common and affordable, increasing
adoption of open source software, abstraction for the users, and lastly increased standardization of IT.
Additionally there has been a constant pressure to cut IT costs (largely because in most organizations, IT is still
a cost centre rather than a profit centre).
From an architectural standpoint, Cloud computing includes dynamic delivery of capabilities (or services) in the
form of applications (Software as a Service), Platform services (Platform as a Service), and Infrastructure
services (Infrastructure as a Service).

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Cloud service provides expose these services mostly through a web interface. All the consumers need to do is
have a stable internet connect, and subscribe to these services. Basically they are leasing the services and return
them when they no longer need them.
Cloud Computing Pricing Model
The pricing of Cloud Computing is based on amount of resources allocated. This makes Cloud pricing
constitute a significant portion of variable pricing. Think of Cloud pricing model similar to the utility services
you consume. You pay electricity bill for the number of units you consumed, or the amount of your water
consumption bill is proportionate to the amount of consumption. The bill varies as per your consumption. While
the pricing of Cloud computing is similar in concept, there is a slight variance as compared to the utility service
pricing. The shift from fixed-price model to variable-price model mainly happened due to the fact that not all
users have the same need; hence charging them for units they don’t consume is not considered fair. Cloud
Computing pricing varies according to its various models. A SaaS model will be priced differently than an IaaS
model. The table below shows the key components of Cloud pricing based on the Cloud service model.

Cloud computing pricing consists of two main approached – fixed and dynamic. In fixed pricing, the customer
the same amount at all times. This includes the pay-per-use model, in which the customers pay for the amount
they consume of a product or the amount of time they use a certain service. In dynamic pricing, the pricing
varies according to the level of consumption, service features, Quality of Services (QoS), etc. A new pricing
model that is being increasingly adopted is the market-dependent pricing; this pricing depends on the real-time
market conditions such as bargaining, auctioning, demand behavior, and yield management.
Note the key drivers of Cloud Computing pricing are on-demand self-service, range of network access, speed of
elasticity, resource pooling, and quality of service. The most important factors that influence pricing in cloud
computing are:
• Initial Costs: This is the initial setup costs the service provider spends to buy resources.
• Contract Period: This is the period the customer will lease resources from the service provider. Longer the
contract period, lower is the subscription price.
• Quality of Service: This is the quality of service the service provider guarantees to meet. This is the mostly
debated component of Cloud pricing. Better the QoS guaranteed, higher is the pricing.
• Age of resources: This is the age of the resources employed by the service provider. The older the resources
are, the lower the price charged will be.

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• Cost of maintenance: This is the amount the service provider spends to maintain the cloud service. In general
terms, the cloud pricing model consists of three main components: actual cloud pricing approach, Quality of
Service (QoS), and Utilization/Contract Period.
As mentioned earlier, Cloud computing pricing models have undergone tremendous innovation and changes in
recent years. Partly due to the fact that a Cloud service provider’s incoming cash flow may decrease because of
consumers’ preference for pay-per-use mechanism, industry has come up with various Cloud pricing model.
The table below provides a quick summary of these models.

In short, the underlying theme of Cloud computing pricing is ―pay-as-you-go‖ model. It is advised to
prospective consumers of Cloud Computing services that they should negotiate adding Quality of Service (QoS)
attributes to the pricing set by Cloud service providers.
This will ensure that the pricing is not biased towards the service provider; and they have a pressure to deliver
on consistent performance and Quality of Service.

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How to Choose a Cloud Computing Service
Cloud computing is right solution for you depends on various factors:
• Total Cost of Ownership (TCO): Since cost savings is one of the most important decision factors for opting
for Cloud solution, it needs to be assessed what impact it would have on the TCO. A thorough TCO analysis
needs to be done. It has been observed that the actual value (value realized after adopting Cloud) vs. Perceived
value (expected value perceived before adopting Cloud) is quite marginal for some organizations if other non-
tangible factors are considered (e.g. data security, implementation ease, support availability, Quality of Service,
etc.).
• Data Security: Data security is still one of the top fear factors for enterprises. There have been ample
evidences of breach of data security in recent years. The high profile Sony hack is now famous in the industry.
In 2014, JP Morgan Chase saw 80 million records breached for use of identity theft. In the same year, Apple
iCloud was a victim of hacking of major celebrity accounts, leading to the release of private photos and videos
to public domain. If your business involves dealing with mission critical accounts and sensitive confidential
customer information, conduct proper risk assessment and evaluation of cloud service provider. Perform proper
and regular risk assessments to identify where the cloud service provider stores and transmits valuable data. In
such cases, opting for private cloud could be a better option than public cloud.
• Compliance and Governance: Cloud computing gets increasingly complex (for both Cloud service providers
and consumers) when it comes to legal, regulatory and compliance issues. There are a host of regulations to deal
with. There are government regulations such as Sarbanes-Oxley and European Union Data Protection Act, and
industry regulations such as PCI DSS for payment cards, and HIPAA for healthcare. Additionally there are geo-
specific regulations such as country and state laws to deal with. Therefore before embarking on a Cloud solution
(for service consumers), evaluate how creating and implementing measures to comply with the regulations is
going to add to the existing workload. Check with your service providers where Cloud data centres are located;
and ascertain whether the regulations permit storing data outside the country. For example, the EU Data
Protection Act mandates keeping personal information within the European Union. If an organization is storing
health-related information regardless of which industry it belongs to, then it is subjected to HIPAA. Hence work
closely with your cloud service provider to identify all legal and regulatory requirements, and the steps to meet
these regulations. Even if you are dealing with a third-party provider, subject them to the same contractual
clauses as you would do for your primary supplier. After all, non-compliance could be costly. The Payment
Card Industry (PCI) can impose fines of up to $100,000 per month for violations to its compliance.
• Ease of Integration: Determine how easy it is to integrate the cloud solution to your existing IT landscape.
Check for interoperability with your corporate applications, custom applications, in-house developed solutions,
and non-standard interfaces.
• Service Level Agreements (SLA): A carefully-crafted SLA is paramount to receiving the right Quality of
Service (QoS). Not that by adopting cloud services, you are giving up control of your ability to manage
availability, performance, maintainability, and timely support as you would have with your in-house
infrastructure. Therefore negotiate the process, control mechanisms, and SLAs tightly with your service
provider to guarantee consistent QoS.

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Next Generation Cloud Computing
The next generation of cloud computing will be the confluence of three key cloud capabilities.
(a) ability to build and deploy quickly in Cloud environment (Platform as a Service)
(b) ability to work from anywhere and anytime using cloud solutions (Software as a Service)
(c) availability of host of next generation Cloud services (e.g. Data as a Service).

Next generation cloud computing will bring in enormous amount of benefits to end users. End users will
increasingly use more personal cloud services such as putting personal data in the cloud. Organizations will
realize that employees no longer maintain personal folders in their office workstations; employees just put
everything in cloud (e.g. Google drive, Apple iCloud) by leveraging BYOD (Bring Your Own Device) policies
that corporates extend. Therefore employers will be compelled to explore ways to incorporate personal cloud
services in the enterprise environment.

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