Cloud Computing for Small & Medium Businesses
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This document provides an overview of cloud computing for small to medium-sized businesses, focusing on its benefits, costs, and different service models such as IaaS, PaaS, and SaaS. It discusses the evolution of cloud technologies, risk considerations, and compares major cloud service providers. The presentation aims to help business owners understand how to leverage cloud computing to meet various business needs effectively.
Cloud Computing for Small & Medium Businesses
- 1. 9/18/2015 Cloud Computing for Business – Quantopix Technologies, LLC 1 Cloud Computing for Business Al Sabawi, President/CEO
- 2. Provide independent overview of the basics of cloud computing for business. Target Audience This presentation is intended for small to medium size businesses (50-500 employees). It is meant to provide a non-technical and brief overview of cloud computing for business owners and operators. It will most benefit those who currently rely on in-house IT services and back office hardware and networking to manage basic business needs. Business needs such as Resource Planning (ERP), Customer Relations (CRM), Human Resources (HRM), Document Management, Internal and External Collaboration, and Customized Vertical Applications. Scope Discussion of cloud offerings & services, and types of cloud structures in the market. It touches on the Benefits, Cost, and Risks of migrating business computing to the cloud. Finally, a cursory review of major cloud service players and their services and cost models. Objectives 9/18/2015 Cloud Computing for Business – Quantopix Technologies, LLC 2
- 3. Presentation Overview Cloud Evolution In-House vs. On-Demand Computing Cloud Hardware Cloud Offering Clouds in Business Cloud Services Typical Applications Cloud Building Blocks Cloud Benefits Cloud Cost & Cost Models Cloud Cost Comparisons Cloud Risks Cloud Major Providers Discussion and Q&A Definitions Cloud Computing for Business – Quantopix Technologies, LLC 39/18/2015
- 4. Cloud Evolution Leveraging the collective power of many small and cheap computers to perform large tasks that otherwise needs a mainframe to run Progression of Cloud Computing Server Farms: UNIX & Windows servers for hire. No intelligence built into efficient utilization CPUs, Memory, Data Storage, or Networking. Rudimentary sharing of resources. Distributing Computing: Multiple computers can cooperate to complete a task. A task is broken into multiple operations. Each operation is given to a different computer (node). One designated node will collect and respond with the results. Use of Message Passing Interface (MPI) Technology Cluster Computing: Multiple computers (nodes) are connected through a high-speed physical network (Typically fiber-optic) in a single location. Managed as a unit. Utilize distributed computing infrastructure to schedule and load balance task among its resources. Virtualization: Multiple users are allocated a portion of CPUs and Memory. Each can run a different operating system and software stack. This allowed dividing the power of the whole cluster into different logical portions and allocating each to a different computing need/account/software etc. Software Stack: Operating System + Software Tools + Basic Applications. Pre-Configured ,compatible, and fully tested software to meet a computing objective. Cloud Instance: A virtual server made up of multiple CPUs, Memory, Disk Storage, and Networking Capabilities. It behaves as a single physical server as far as the software is concerned Ultra-fast Interconnect: 10Gb Ethernet, InfiniBand. Connecting CPUs in separate physical servers in a very high speed network so that data sharing does not impact performance. Demand for Supercomputing Capabilities: From US Government (DARPA, NSA, Science Research Facilities, Weather Monitoring & Forecasting etc.) Massive Parallel Processing from racks of CPUs sharing fast memory, storage, and connected via fiber optics. Specialized operating system allowing tasks to run in parallel and scale in a semi-linear way. Cloud Computing for Business – Quantopix Technologies, LLC 49/18/2015 Key Technologies
- 5. In-House vs. on-Demand •Perpetual Catchup: Fast changing HW & SW. What is best for your business now will change next year •HW will become obsolete within 1 year. Little or no resale value •IRS 5 years depreciation rule •Expertise & Talent renewals cost •Training and re-training of staff •Software licensing and auditing •Inventory management •Capacity Planning: More guessing than science •Security safeguards •Full cost of Backup and Restore •Build vs. Buy Decision: Build a custom system in- house or buy an off-the-shelf solution and mange it in- house. •Timely monitoring and resolution •You are in FULL CONTROL! In-House IT Model •Result oriented: What is best for my business now? Limited or no commitment to HW or infrastructure •Reduce or eliminate CapX (CPUs, Data Storage, Networking, Wiring, Backup/Restore) •Reduce IT Staffing, fixed cost, overhead •Build OR Buy OR Rent Decision: Renting HW, SW, and Network from a Private Cloud Provider for a limited time. No long term commitment •Pay for what you use for the time you use it (By hour, day, week, month, year) •Low migration cost: Scale up or down resources for little or no cost •More Compatibility and low testing cost •Automated Backup & Restore is part of cloud infrastructure •Access to expertise whose core business is Cloud IT •Security tools and safeguards already setup •Analytics for your data, network traffic, resource usage •LIMITED CONTROL over the systems relative to in- house IT On Demand Model Cloud Computing for Business – Quantopix Technologies, LLC 59/18/2015
- 6. Cloud Hardware Rack-Mounted Servers Flexible with more configuration options. More cost effective for large/growing computing needs. Blade-Mounted Servers Mostly Plug & Play. Server blades are plugged into a Blade Center where they instantly connect to power supply, network, and storage. Minimal configuration required. Suitable for departmental computing or small business. Rack-Mounted Blade-Mounted Cloud Computing for Business – Quantopix Technologies, LLC 69/18/2015
- 7. Cloud Offerings Bare Metal Dedicated physical servers with dedicated storage. User is fully responsible for all configuration and software installations/setup. Just like renting the physical hardware. This is not considered a cloud. Private Cloud Virtualized Servers (Hypervisor) . Not visible to public. Accessed through Virtual Private Network (VPN) protocol only. No public login or public web. Encrypted and Authenticated Traffic. Requires VPN software support on user’s devices. Some providers may Public Cloud Virtualized Servers (Hypervisor). Visible to public (DNS Listed). Open web and mobile applications. Used for web servers, e-commerce, customer service, publications & news etc. Hybrid Cloud Virtualized Servers (Hypervisor). Combination of Public and Private. Allows for a unified administration of data. Internal business apps instantly access public data for monitoring and analytics. Cloud Computing for Business – Quantopix Technologies, LLC 79/18/2015
- 8. Clouds in Business 9/18/2015 Cloud Computing for Business – Quantopix Technologies, LLC 8 58%29% 7% Private Cloud Public Cloud Hybrid Cloud *Survey by Right Scale 79% of users are Multi-Cloud users
- 9. Cloud Services Cloud Computing for Business – Quantopix Technologies, LLC 99/18/2015 • Bare Metal Hardware, Provisioned Public Cloud, Private Cloud, Storage, Networking, IT Support. Infrastructure as a Service (IaaS): Control over much of the cloud configurations • Abstracted and configured to develop and deploy customer applications (Desktop, Web Based, or Mobile) Platform as a Service (PaaS): Control over the development environment. Programming Languages Support • Dedicated and optimized for a specific business software. ERP, CRM, HR, Accounting, Financial, Project Management, Collaboration, etc. Examples: Office 360, SAP Business One) Software as a Service (SaaS): Control over specific software • Database Engines and File Repositories with Analytics tools Data as a Service (DaaS): Managing and Analyzing Data
- 10. Typical Applications External Use Company Website Customer Applications : Web Apps/e-Commerce, Mobile/Tablet Apps, Social Apps News Feeds: For other sites to extract articles Data Feeds/Sharing: Structured or Unstructured data files External Application Program Interface (API): Third party Apps can call to interact with your service Marketing Campaigns Internal Use (Company Intranet) Company Software Applications: ERP, CRM, Accounting, HR, Email, Calendar, Project Management, Resource Management etc. Data Crunching: Analysis, Computation (Scientific/Engineering) Batch Processing Development and Test Databases Repository Collaboration and File Sharing Limited/Special Use Two or more organizations or businesses can share apps or data while working on joint projects typically for a limited time. Cloud Computing for Business – Quantopix Technologies, LLC 109/18/2015
- 11. Cloud Building Blocks The Instance A cloud instance is a “virtual” server. It is equivalent to a back office server. Most providers offer a menu of Instances. Options include CPU Types, CPU speed, number of CPUs/Instance, Cache Memory, etc.) Instances offered are typically configured for Large, Medium, or Basic Business needs. Also specialized for Data Storage, Web Servers, or Computation Intensive needs. Instances can be customized with storage, networking capabilities, and software stack/tools. A customized instance’s image (compressed file) can be saved for re-installation Resource Sharing Multiple instances of the same image can be created to distribute the workload Multiple instances can share same file systems and networking Multiple instances can run same software Load Balancing A load balancing software monitors the CPUs and invoke the least busy instance to handle incoming workload. Job Scheduling Scheduling of tasks/workload to run by time and sequence Administration Single point of administration. Auto turn on/off of instances. Management console Cost Charges for use by instance by the hour/day/month etc. Cloud Computing for Business – Quantopix Technologies, LLC 119/18/2015
- 12. Cloud Benefits Relegation of IT to specialists at the Cloud Provider Technology Options: Mix & Match performance, bandwidth, memory, storage, tools, and services Scalability on Demand: Scale up and down on short notice to accommodate business needs Predictable Cost & Performance. Providers have historical data to use as guide. Allows for much accurate prediction of performance and cost Little or No Downtime. Services for Backup, Restore, and Tuning are typically offered in many packages Virus and Malware protection is usually, but not always, built into base services. Most offer “Analytics” services to monitor traffic and databases or collect data from users clicks and inputs. Cloud Computing for Business – Quantopix Technologies, LLC 129/18/2015
- 13. Cost by Instance Type: CPU Speed, Number of CPUs, Provisioned Memory , Image Type Charge Per Instance Running. Minimum charge for off Instances Instance Run Time based charge: Business Hours (e.g. On at 8pm, Off at 5pm) 24/7 Storage Cost Per Gigabyte Networking Type (IP4, IP6) and Band Width (Basic, Medium, High) Security Safeguards (Encryption Type, Security model, etc.) Provisioning Time Management: The right instance for the right task running for the time needed. Cloud Cost & Cost Models Cloud Computing for Business – Quantopix Technologies, LLC 139/18/2015
- 14. Cloud Cost Comparisons 9/18/2015 Cloud Computing for Business – Quantopix Technologies, LLC 14 • Accurate comparison between offerings is never is simple: • Pre-Packaged instances are different among providers • Performance can vary widely • Storage cost varies • Use 3rd party tools to estimate/manage cost: • PlanForCloud.com: http://www.planforcloud.com/ • RightScale.com: http://www.rightscale.com/
- 15. Cloud Risks Security Trusting the Provider to protect your data. Check the provider’s policies and safeguards against “snooping” by employees and contractors. Check how access is monitored and audited. External hacking safeguards: Encryption levels, Authentication of users, enforcing for user privileges Denial of Service (DoS) Attacks: When hackers overload your servers with requests resulting in degradation or halting of response. Undetected Software Bugs Happens when performance in not monitored Can lead to high consumption of CPU time (runaway processes) or filling up allocated disk space. Cloud Computing for Business – Quantopix Technologies, LLC 159/18/2015
- 16. Cloud Major Providers Infrastructure as a Service (Iaas) Amazon Web Services (AWS): Biggest and most versatile services Rackspace IBM SoftLayer Microsoft Windows Azure Google Compute Engine (GCE) HP Enterprise Converged Infrastructure Platform as a Service (PaaS) Engine Yard Red Hat OpenShift Amazon Web Services (AWS) Google App Engine (GAE) Microsoft Windows Azure Heroku Software as a Service (SaaS) SAP: ERP, CRM, Inventory, Financials, Operational Tracking, Human Resources SalesForce: ERP, CRM, Inventory, Collaborations, Projects NetSuite: ERP, CRM, Financials Oracle Cloud: Databases, ERP, CRM, HR, Analytics Microsoft Dynamics Data as a Service (DaaS) Oracle: Databases, Document Repository, Management and Analytics tools Cloud Computing for Business – Quantopix Technologies, LLC 169/18/2015
- 17. Discussion Q&A 9/18/2015 Cloud Computing for Business – Quantopix Technologies, LLC 17
- 18. Definitions Hypervisor or Virtual Machine Monitor (VMM): Allows the hardware to emulate multiple computer systems at the same time by creating Virtual Machines. It can partition the physical CPU usage, Memory, Networking, and other resources to emulate separate systems. ERP (Enterprise Resources Planning): Integrated Business Management software package for managing product manufacturing, inventory, sales, delivery and service etc. CRM (Customer Relationship Management): Integrated Customer Relation software package for managing customer contacts, leads, proposals, sales and maintenance history, contracts, issues and resolutions etc. Software Stack: Integrated Software Package that includes a level of the Operating System, File System, Networking, and Database Support. It also includes admin and trouble shooting tools. A software stack is typically made up of compatible releases of software intended to work together. Cloud Computing for Business – Quantopix Technologies, LLC 189/18/2015
Editor's Notes
- #6: Building a customized system: Compatibility issues, updates synchronization, testing and verification cost. Hiring or contracting of talents for a short term only.