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3 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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Cloud Computing

Jonathan Weitz

Bus: 550

June 3, 2013

Agenda


Scope of case file(s)


Case 1: What is Cloud Computing?


Modeling the Cloud


Cloud Economics


Case 2: Economics of Cloud Computing US Gov.


Thoughts, Comments, Questions

Cases


Modeling
the Economic Impact of Cloud Computing


Australian Information Industry Association


Lays a foundation of what cloud computing is , how it is
constructed and the potential economic costs and benefits
of a shift in ideology from traditional computing to “Cloud
Computing



Economics of Cloud Computing


Addresses the economic implications of US government
mirgration

to a Cloud Based network for Information
Technology


What is the Cloud?


Cloud computing relies on sharing resources in order to
achieve economies of scale and gain
greater
coherence.


Maximizes the effectiveness as compared to traditional
computing.


Example idea:


C
loud facility
which serves European users during European
business hours with a specific application (
eg
. email) while
the same resources are getting reallocated and serve North
American users during
local business
hours with another
application (
eg
. web server).


Traditional Computing

THE CLOUD

Modelling

the Cloud


Cloud computing has four
deployment

types:


Private


Exclusive use by a single organization (may be
outsourced to a 3
rd

part provider, but sole use is for the single
org.)


Public


For use by multiple organizations on a shared basis
nad

hosted by a 3
rd

part provider (Amazon & Google Apps)


Community


For use by a group of related organizations


Hybrid


A single
oganization

adopts a private and
blupic

model cloud to use the benefits of both applications

Service Models for Cloud Computing


Software
as a
service


Google
Apps


Platform
as a
service


Microsoft
Office
365


Infrastructure
as a
service


Amazon
EC2 & S3

Cloud Benefits

Cloud Computing Economic Benefits


Most identifiable economic benefit of cloud computing is
direct cost savings, which occur from changes within the
organization and the data centers that house the IT
infrastructure.


Supply Side


Large scale data centers lower cost due to
superior buying power


Demand Side


Allowing multiple users across varying
industries regions & time zones allowing for server utilization


Multi
-
user efficiency


Increasing # of users lowers server cost
per tenant


Data center efficiency


Advanced data center designs
reduce power loss and improved cooling

Case Study: Economics
of Cloud
Computing US Gov.


Public Cloud Adopters:
most likely early adopters


Department migrates to an IT public cloud


Low
level of mission, bureau, (
Dep

of Commerce, Labor, EPA, Dep. of
transportation)


Assumptions: Transition will occur over 3 years, workload is
constant


Hybrid Cloud: middle adopters


Department
builds a private cloud solution to handle majority of its IT load but uses a
public
solutions for low sensitivity apps


Dep

of Agriculture,
Dep

of Education, NSF


75
% of
the IT server workload will migrate to
private and 25 % will
be transitioned to
public cloud steadily over 3 years


Private Cloud: Late adopters


Department or agency build own private solution or joins in an interagency
cloud


Broad mission sensitivity


Transition
will occur over 3 years, workload is constant



Case Study:
Economics of Cloud
Computing US Gov.


Economic analysis to investigate potential savings of the
federal plan by focusing on a proprietary cost model of
United States Government IT programs


Metrics used for Analysis:


B
enefit
-
to
-
cost ratio’s (BCR)


Net
p
resent value (NPV)


Discounted payback period (DPP)

Case Study:
Economics of Cloud
Computing US Gov. Cont.


Benefit
-
to
-
cost ratio’s (BCR)


C
alculated by each cloud
scenario’s discounted net benefits
less the
cloud’s discounted one
-
time investment costs.
(Absolute metric)


Greater then 1.0 indicates the economic benefit vs. the SQ (status quo
environment
)


Net
p
resent value (NPV)


calculated as each cloud scenario’s discounted net benefits divided by
its discounted investment costs.

(Relative economic metric)


Discounted payback period (DPP)


R
eflects
the number of
years
it takes for each scenario’s accumulated
annual benefits to equal its total investment costs.

Economics of Cloud Computing


Net benefits and
payback for
agencies for
hybrid is more
similar to private
cloud then public.


Based on the
75/25 percent
previous
assumption.

Sensitivity Analysis


Primary
factors driving economic benefit:


Reduction in hardware


Length of cloud migration
schedule


Public cloud benefit continues to increase BCR as servers migrated



Impact of Migration Schedule on
Economics


Better to group
smaller existing
data centers into a
larger cloud rather
then several smaller
clouds


As BCR decreases,
DPP increases with
transition time.


Take Home: Economics of Cloud
Computing US
Gov


Cloud computing offers potentially significant savings to
federal agencies by reducing their expenditures


Benefits come with risks and practicalities to consider:


Will take 2
-
3 years for most agencies to transition


Once implemented, it could take as long as 4 years to reach
enough savings to offset initial investments


Only an estimate, not based on a reliable estimate of
government spending of an overall dollar figure


My thoughts: Science and IT

THANK YOU!

Question 1


What are the types of
service
models for cloud
computing

A.
Software as a service

B.
Platform as a service

C.
Infrastructure as a service

D.
All of the Above

Question 2


Early adopters are more likely to be grouped into which
deployment cloud type

A.
Public

B.
Hybrid

C.
Private

D.
Community

Question 3


Which are benefits of transitioning to a cloud
environment

A.
Long term savings

B.
Flexibility

C.
Efficiency

D.
All of the above