Table of Contents

Introduction History of Cloud Computing Characteristic of Cloud computing Layers of Cloud Computing Deployment models

Clouds and ManyCore: The Revolution: Dan Reed, Microsoft Research - Slides Video

Introduction
Cloud computing is Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand, like the electricity grid. Cloud computing is a paradigm shift following the shift from mainframe to clientserver in the early 1980s. Details are abstracted from the users, who no longer have need for expertise in, or control over, the technology infrastructure "in the cloud" that supports them.[1] Cloud computing describes a new supplement, consumption, and delivery model for IT services based on the Internet, and it typically involves over the-Internet-provision of dynamically scalable and often virtualized resources.[2][3] It is a byproduct and consequence of the easeof-access to remote computing sites provided by the Internet.[4] The term "cloud" is used as a metaphor for the Internet, based on the cloud drawing used in the past to represent the telephone network,[5] and later to depict the Internet in computer network diagram as an abstraction of the underlying infrastructure it represents.[6] Typical cloud computing providers deliver common business applications online that are accessed from another Web service or software like a Web browser, while the software and data are stored on servers. Most cloud computing infrastructure consists of services delivered through common centers and built on servers. Clouds often appear as single points of access for all consumers' computing needs. Commercial offerings are generally expected to meet quality of service (QoS) requirements of customers, and typically include SLAs.[7] The major cloud-only service providers include Salesforce, Amazon and Google.[8]
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History of Cloud Computing

The underlying concept of cloud computing dates back to 1960s, when John McCarthy opined that "computation may someday be organized as a public utility". Almost all the modern day characteristics of cloud computing (elastic provision, provided as a utility, online, illusion of infinite supply), the comparison to the electricity industry and the use of public, private, government and community forms was thoroughly explored in Douglas Parkhill's, 1966 book, "The Challenge of the Computer Utility". The actual term "cloud" borrows from telephony in that telecommunications companies, who until the 1990s primarily offered dedicated point-to-point data circuits, began offering Virtual Private Network (VPN) services with comparable quality of service but at a much lower cost. By switching traffic to balance utilization as they saw fit they were able to utilise their overall network bandwidth more effectively. The cloud symbol was used to denote the demarcation point between that which was the responsibility of the provider from that of the user. Cloud computing extends this boundary to cover servers as well as the network infrastructure.[22] Amazon played a key role in the development of cloud computing by modernizing their data centers after the dot-com bubble, which, like most computer networks, were using as little as 10% of their capacity at any one time just to leave room for occasional spikes. Having found that the new cloud architecture resulted in

significant internal efficiency improvements whereby small, fast-moving "twopizza teams" could add new features faster and easier, Amazon started providing access to their systems through Amazon Web Services on a utility computing basis in 2006.[23] In 2007, Google, IBM, and a number of universities embarked on a large scale cloud computing research project.[24] By mid-2008, Gartner saw an opportunity for cloud computing "to shape the relationship among consumers of IT services, those who use IT services and those who sell them",[25] and observed that "[o]rganisations are switching from company-owned hardware and software assets to per-use service-based models" so that the "projected shift to cloud computing ... will result in dramatic growth in IT products in some areas and significant reductions in other areas."[26]

Characteristic

Autonomic computing "computer systems capable of self-management".

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Clientserver model Clientserver computing refers broadly to any distributed application that distinguishes between service providers (servers) and service requesters (clients).[11] Grid computing "a form of distributed computing and parallel computing, whereby a 'super and virtual computer' is composed of a cluster of networked, loosely coupled computers acting in concert to perform very large tasks" Mainframe powerful computers used mainly by large organizations for critical applications, typically bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.[12] Utility computing the "packaging of computing resources, such as computation and storage, as a metered service similar to a traditional public utility, such as electricity";[13] Peer-to-peer a distributed architecture without the need for central coordination, with participants being at the same time both suppliers and consumers of resources (in contrast to the traditional clientserver model).

Layers of Cloud Computing

Client See also: Category:Cloud clients

Clients Application Platform Infrastructur e Server

A cloud client consists of computer hardware and/ or computer software that relies on cloud computing for application delivery, or that is specifically designed for delivery of cloud services and that, in either case, is essentially useless without it. Examples include some computers, phones and other devices, operating systems and browsers.[38][39][40][41][42] [edit] Application See also: Category:Cloud applications

Cloud application services or "Software as a Service (SaaS)" deliver software as a service over the Internet, eliminating the need to install and run the application on the customer's own computers and simplifying maintenance and support. Key characteristics include:[43]

Network-based access to, and management of, commercially available (i.e., not custom) software

Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics Centralized feature updating, which obviates the need for downloadable patches and upgrades.

[edit] Platform See also: Category:Cloud platforms Cloud platform services or "Platform as a Service (PaaS)" deliver a computing platform and/or solution stack as a service, often consuming cloud infrastructure and sustaining cloud applications.[44] It facilitates deployment of applications without the cost and complexity of buying and managing the underlying hardware and software layers.[45][46] [edit] Infrastructure See also: Category:Cloud infrastructure Cloud infrastructure services or "Infrastructure as a Service (IaaS)" delivers computer infrastructure, typically a platform virtualization environment as a service. Rather than purchasing servers, software, data center space or network equipment, clients instead buy those resources as a fully outsourced service. The service is typically billed on a utility computing basis and amount of resources consumed (and therefore the cost) will typically reflect the level of activity. It is an evolution of virtual private server offerings.[47] [edit] Server The servers layer consists of computer hardware and/or computer software products that are specifically designed for the delivery of cloud services, including multi-core processors, cloud-specific operating systems and combined offerings

Development Modes Cloud computing types [edit] Public cloud Public cloud or external cloud describes cloud computing in the traditional mainstream sense, whereby resources are dynamically provisioned on a finegrained, self-service basis over the Internet, via web applications/web services, from an off-site third-party provider who shares resources and bills on a finegrained utility computing basis.[29] [edit] Community cloud A community cloud may be established where several organizations have similar requirements and seek to share infrastructure so as to realize some of the benefits of cloud computing. With the costs spread over fewer users than a public cloud (but more than a single tenant) this option is more expensive but may offer a higher

level of privacy, security and/or policy compliance. Examples of community cloud include Google's "Gov Cloud".[51] [edit] Hybrid cloud See also: Cloud storage gateway A hybrid cloud environment consisting of multiple internal and/or external providers[52] "will be typical for most enterprises".[53] By integrating multiple cloud services users may be able to ease the transition to public cloud services while avoiding issues such as PCI compliance.[54] Another perspective on deploying a web application in the cloud is using Hybrid Web Hosting, where the hosting infrastructure is a mix between Cloud Hosting for the web server, and Managed dedicated server for the database server. [edit] Private cloud The concept of a Private Computer Utility was first described by Douglas Parkhill in his 1966 book "The Challenge of the Computer Utility". The idea was based upon direct comparison with other industries (e.g. the electricity industry) and the extensive use of hybrid supply models to balance and mitigate risks. Private cloud and internal cloud have been described as neologisms, however the concepts itself pre-dates the term cloud by 40 years. Even within modern utility industries, hybrid models still exist despite the formation of reasonably well functioning markets and the ability to combine multiple providers. Some vendors have used the terms to describe offerings that emulate cloud computing on private networks. These (typically virtualisation automation) products offer the ability to deliver some benefits of cloud computing whilst mitigating some of the pitfalls. These offerings capitalise on data security, corporate governance, and reliability concerns during this time of transition from a product to a functioning service based industry supported by competitive marketplaces. They have been criticized on the basis that users "still have to buy, build, and manage them" and as such do not benefit from lower up-front capital costs and less hands-on management[53], essentially "[lacking] the economic model that makes cloud computing such an intriguing concept".[55][56]

Cloud computing is a technology that uses the internet and central remote servers to maintain data and applications. Cloud computing allows consumers and businesses to use applications without installation and access their personal files at any computer with internet access. This technology allows for much more efficient computing by centralizing storage, memory, processing and bandwidth. A simple example of cloud computing is Yahoo email or Gmail etc. You dont need a software or a server to use them. All a consumer would need is just an internet connection and you can start sending emails. The server and email management software is all on the cloud ( internet) and is totally managed by the cloud service provider Yahoo , Google etc. The consumer gets to use the software alone and enjoy the benefits. The analogy is , 'If you only need milk , would you buy a cow ?' All the users or consumers need is to get the benefits of using the software or hardware of the computer like sending emails etc. Just to get this benefit (milk) why should a consumer buy a (cow) software /hardware ?

Cloud computing is broken down into three segments: "applications," "platforms," and "infrastructure." Each segment serves a different purpose and offers different products for businesses and individuals around the world. In June 2009, a study conducted by VersionOne found that 41% of senior IT professionals actually don't know what cloud computing is and two-thirds of senior finance professionals are confused by the concept, [1] highlighting the young nature of the technology. In Sept 2009, an Aberdeen Group study found that disciplined companies achieved on average an 18% reduction in their IT budget from cloud computing and a 16% reduction in data center power costs.[2]

Cloud Computing Segments

Applications: It's all On Demand
So far the applications segment of cloud computing is the only segment that has proven useful as a business model.The Cloud Wars: $100 Billion at Stake, Published by Merrill Lynch, May 7, 2008</ref> By running business applications over the internet from centralized servers rather than from on-site servers, companys can cut some serious costs. Furthermore, while avoiding maintenance costs, licensing costs and the costs of the hardware required to run servers on-site, companies are able to run applications much more efficiently from a computing standpoint.

On Demand software services come in a few different varieties which vary in their pricing scheme and how the software is delivered to the end users. In the past, the end-user would generally purchase a servers and is accessed by the end user over the internet. While this is the most common platform for On Demand software services, there are also some slightly different offerings which can be described as a hybrid of these two platforms. For instance, a program through which the end user pays a license fee, but then accesses the software over the internet from centralized servers is considered a hybrid service.

Who is Offering On Demand Software? - The companies below are already established in the On-

Demand software or SaaS business. These companies charge their customers a subscription fee and in return host software on central servers that are accessed by the end user via the internet.

Salesforce.com (CRM) Google (GOOG) NetSuite (N) Taleo (TLEO) Concur Technologies (CNQR) Info Technologies (IT) canadasoftware.net (nexgen)

Who is Offering Traditional Software? - The following companies have established themselves as

traditional software providers. These companies sell licenses to their users, who then run the software from on premise servers.

SAP AG (SAP) Oracle (ORCL) Blackbaud (BLKB) Lawson Software (LWSN) Blackboard (BBBB)

Platforms:
Many of the companies that started out providing On Demand application services have developed platform services as well. The platform segment of cloud computing refers to products that are used to deploy internet. NetSuite, Amazon, Google, and Microsoft have also developed platforms that allow users to access applications from centralized servers.

In July 2008, HP, Yahoo! (YHOO), and Intel (INTC) announced a joint cloud computing research project called the Cloud Computing Test Bed. The companies are jointly designing and producing the internet based testing utilizing HP hardware and Intel processors.[3]

Active platforms - The following companies are some that have developed platforms that allow end

users to access applications from centralized servers using the internet. Next to each company is the name of their platform.

Google (GOOG) - Apps Engine Amazon.com (AMZN) - EC2 Microsoft (MSFT) - Windows Live Terremark Worldwide (TMRK) - The Enterprise Cloud Salesforce.com (CRM) - Force.com NetSuite (N) - Suiteflex Rackspace Cloud - cloudservers, cloudsites, cloudfiles Metrisoft - Metrisoft SaaS Platform [1] - SUN Oracle direct link

Infrastructure:
The final segment in cloud computing, known as the infrastructure, is very much the backbone of the entire concept. Infrastructure vendors environments (such as Google gears) that allow users to build applications. Cloud storage, such as Amazon's S3, is also considered to be part of the infrastructure segment.

Major Infrastructure Vendors - Below are companies that provide infrastructure services:

Google (GOOG) - Managed hosting, development environment International Business Machines (IBM) - Managed hosting SAVVIS (SVVS) - Managed hosting Terremark Worldwide (TMRK) - Managed hosting Amazon.com (AMZN) - Cloud storage Rackspace Hosting (RAX) - Managed hosting & cloud computing

What does a Shift Towards Cloud Computing Mean?

So who is affected by a paradigm shift in the computing industry? The shift would affect companies a few different sub-industries including software companies, internet service providers and hardware manufacturers. Companies in each of these industries will face significant change if cloud computing is to be the next step for

the industry. While it is relatively easy to see how the main software and internet companies will be affected by such a shift, how companies in the internet and hardware will be affected is slightly more dificult.

Comparisons Characteristics In general, Cloud computing customers do not own the physical infrastructure, instead avoiding capital expenditure by renting usage from a third-party provider. They consume resources as a service and pay only for resources that they use. Many cloud-computing offerings employ the utility computing model, which is analogous to how traditional utility services (such as electricity) are consumed, whereas others bill on a subscription basis. Sharing "perishable and intangible" computing power among multiple tenants can improve utilization rates, as servers are not unnecessarily left idle (which can reduce costs significantly while increasing the speed of application development). A side-effect of this approach is that overall computer usage rises dramatically, as customers do not have to engineer for peak load limits.[14] In addition, "increased high-speed bandwidth" makes it possible to receive the same response times from centralized infrastructure at other sites.[citation needed] Economics Cloud computing users can avoid capital expenditure (CapEx) on hardware, software, and services when they pay a provider only for what they use. Consumption is usually billed on a utility (resources consumed, like electricity) or subscription (time-based, like a newspaper) basis with little or no upfront cost. Other benefits of this time sharing-style approach are low barriers to entry, shared infrastructure and costs, low management overhead, and immediate access to a broad range of applications. In general, users can terminate the contract at any time (thereby avoiding return on investment risk and uncertainty), and the services are often covered by service level agreements (SLAs) with financial penalties.[15][16] According to Nicholas Carr, the strategic importance of information technology is diminishing as it becomes standardized and less expensive. He argues that the cloud computing paradigm shift is similar to the displacement of electricity generators by electricity grids early in the 20th century.[17] Although companies might be able to save on upfront capital expenditures, they might not save much and might actually pay more for operating expenses. In situations where the capital expense would be relatively small, or where the organization has more flexibility in their capital budget than their operating budget, the cloud model might not make great fiscal sense. Other factors impacting the scale of any potential cost savings include the efficiency of a company's data center as compared to the cloud vendor's, the company's existing operating costs, the level of adoption of cloud computing, and the type of functionality being hosted in the cloud.[18][19] Among the items that some cloud hosts charge for are instances (often with extra charges for high-memory or high-CPU instances); data transfer in and out; storage (measured by the GBmonth); I/O requests; PUT requests and GET requests; IP addresses; and load balancing. In some cases, users can bid on instances, with pricing dependent on demand for available instances.[citation
needed]

[edit] History The underlying concept of cloud computing dates back to 1960s, when John McCarthy opined that "computation may someday be organized as a public utility". Almost all the modern day characteristics of cloud computing (elastic provision, provided as a utility, online, illusion of infinite supply), the comparison to the electricity industry and the use of public, private, government and community forms was thoroughly explored in Douglas Parkhill's, 1966 book, "The Challenge of the Computer Utility". The actual term "cloud" borrows from telephony in that telecommunications companies, who until the 1990s primarily offered dedicated point-to-point data circuits, began offering Virtual Private Network (VPN) services with comparable quality of service but at a much lower cost. By switching traffic to balance utilization as they saw fit they were able to utilise their overall network bandwidth more effectively. The cloud symbol was used to denote the demarcation point between that which was the responsibility of the provider from that of the user. Cloud computing extends this boundary to cover servers as well as the network infrastructure.[22] Amazon played a key role in the development of cloud computing by modernizing their data centers after the dot-com bubble, which, like most computer networks, were using as little as 10% of their capacity at any one time just to leave room for occasional spikes. Having found that the new cloud architecture resulted in significant internal efficiency improvements whereby small, fast-moving "two-pizza teams" could add new features faster and easier, Amazon started providing access to their systems through Amazon Web Services on a utility computing basis in 2006.[23] In 2007, Google, IBM, and a number of universities embarked on a large scale cloud computing research project.[24] By mid-2008, Gartner saw an opportunity for cloud computing "to shape the relationship among consumers of IT services, those who use IT services and those who sell them",[25] and observed that "[o]rganisations are switching from company-owned hardware and software assets to per-use service-based models" so that the "projected shift to cloud computing ... will result in dramatic growth in IT products in some areas and significant reductions in other areas."[26] [edit] Cloud Storage Main article: Cloud Storage Cloud Storage is a model of networked Computer data storage where data is stored on multiple virtual servers, generally hosted by third parties, rather than being hosted on dedicated servers. Hosting companies operate large data centers; and people who require their data to be hosted buy or lease storage capacity from them and use it for their storage needs. The data center operators, in the background, virtualize the resources according to the requirements of the customer and expose them as virtual servers, which the customers can themselves manage. Physically, the resource may span across multiple servers.

[edit] The Intercloud Main article: Intercloud The Intercloud[57] is an interconnected global "cloud of clouds"[58][59] and an extension of the Internet "network of networks" on which it is based[60]. The term was first used in the context of cloud computing in 2007 when Kevin Kelly opined that "eventually we'll have the intercloud, the cloud of clouds. This Intercloud will have the dimensions of one machine comprising all servers and attendant cloudbooks on the planet."[58]. It became popular in 2009[61] and has also been used to describe the datacenter of the future[62]. The Intercloud scenario is based on the key concept that each single cloud does not have infinite physical resources. If a cloud saturates the computational and storage resources of its virtualization infrastructure, it could not be able to satisfy further requests for service allocations sent from its clients. The Intercloud scenario aims to address such situation, in fact, each cloud can use the computational and storage resources of the virtualization infrastructures of other clouds. Such form of pay-for-use introduces new business opportunities among cloud providers. Nevertheless, the Intercloud raises many challenges concerning cloud federation, security, interoperability, QoS, monitoring and billing.[citation needed] It should be noted that the concept of a competitive utility computing market which combined many computer utilities together was originally described by Douglas Parkhill in his 1966 book, the "Challenge of the Computer Utility". This concept has been subsequently used many times over the last 40 years and is identical to the "InterCloud". [edit] Issues [edit] Privacy The Cloud model has been criticized by privacy advocates for the greater ease in which the companies hosting the Cloud services control, and thus, can monitor at will, lawfully or unlawfully, the communication and data stored between the user and the host company. Instances such as the secret NSA program, working with AT&T, and Verizon, which recorded over 10 million phone calls between American citizens, causes uncertainty among privacy advocates, and the greater powers it gives to telecommunication companies to monitor user activity.[63] While there have been efforts (such as US-EU Safe Harbor) to "harmonise" the legal environment, providers such as Amazon still cater to major markets (typically the United States and the European Union) by deploying local infrastructure and allowing customers to select "availability zones."[64] [edit] Compliance In order to obtain compliance with regulations including FISMA, HIPAA and SOX in the United States, the Data Protection Directive in the EU and the credit card industry's PCI DSS, users may have to adopt community or hybrid deployment modes which are typically more expensive and may offer restricted benefits. This is how Google is able to "manage and meet additional government policy requirements beyond FISMA"[65][66] and Rackspace Cloud are able to claim

PCI compliance.[67] Customers in the EU contracting with Cloud Providers established outside the EU/EEA have to adhere to the EU regulations on export of personal data[68]. Many providers also obtain SAS 70 Type II certification (e.g. Amazon[69], Salesforce.com[70], Google[71] and Microsoft[72]), but this has been criticised on the grounds that the hand-picked set of goals and standards determined by the auditor and the auditee are often not disclosed and can vary widely.[73] Providers typically make this information available on request, under nondisclosure agreement.[74] [edit] Legal In March 2007, Dell applied to trademark the term "cloud computing" (U.S. Trademark 77,139,082) in the United States. The "Notice of Allowance" the company received in July 2008 was cancelled in August, resulting in a formal rejection of the trademark application less than a week later. Since 2007, the number of trademark filings covering cloud computing brands, goods and services has increased at an almost exponential rate. As companies sought to better position themselves for cloud computing branding and marketing efforts, cloud computing trademark filings increased by 483% between 2008 and 2009. In 2009, 116 cloud computing trademarks were filed, and trademark analysts predict that over 500 such marks could be filed during 2010.
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[edit] Open source Open source software has provided the foundation for many cloud computing implementations. [76] In November 2007, the Free Software Foundation released the Affero General Public License, a version of GPLv3 intended to close a perceived legal loophole associated with free software designed to be run over a network.[77] [edit] Open standards See also: Category:Cloud standards Open standards are critical to the growth of cloud computing. Most cloud providers expose APIs which are typically well-documented (often under a Creative Commons license[78]) but also unique to their implementation and thus not interoperable. Some vendors have adopted others' APIs[79] and there are a number of open standards under development, including the OGF's Open Cloud Computing Interface. The Open Cloud Consortium (OCC) [80] is working to develop consensus on early cloud computing standards and practices. [edit] Security Main article: Cloud computing security

The relative security of cloud computing services is a contentious issue which may be delaying its adoption.[81] Some argue that customer data is more secure when managed internally, while others argue that cloud providers have a strong incentive to maintain trust and as such employ a higher level of security.[82] The Cloud Security Alliance is a non-profit organization formed to promote the use of best practices for providing security assurance within Cloud Computing.[83] [edit] Sustainability Although cloud computing is often assumed to be a form of "green computing", there is as of yet no published study to substantiate this assumption. [84] [edit]