Cloud Computing

Unit-2
 Cloud Architecture
• Cloud computing, which is one of the demanding technologies of the
current time and which is giving a new shape to every organization by
providing on demand virtualized services/resources.
• Starting from small to medium and medium to large, every organization
uses cloud computing services for storing information and accessing it
from anywhere and anytime only with the help of internet.
• Transparency, scalability, security and intelligent monitoring are some of
the most important constraints which every cloud infrastructure should
experience.
• The cloud architecture is divided into 2 parts:
Frontend

Backend
• Architecture of cloud computing is the combination of both SOA (Service
Oriented Architecture) and EDA (Event Driven Architecture). Client
infrastructure, application, service, runtime cloud, storage, infrastructure,
management and security all these are the components of cloud
computing architecture.
:
Frontend of the cloud architecture refers to the client side of cloud
computing system. Means it contains all the user interfaces and applications
which are used by the client to access the cloud computing
services/resources. For example, use of a web browser to access the cloud
platform.

• Client Infrastructure – Client Infrastructure is a part of the frontend

component. It contains the applications and user interfaces which are
required to access the cloud platform. In other words, it provides a
GUI( Graphical User Interface ) to interact with the cloud.
 Frontend
Frontend of the cloud architecture refers to the client side of cloud
computing system. Means it contains all the user interfaces and
applications which are used by the client to access the cloud computing
services/resources. For example, use of a web browser to access the cloud
platform.

• Client Infrastructure – Client Infrastructure is a part of the frontend

component. It contains the applications and user interfaces which are
required to access the cloud platform. In other words, it provides a
GUI( Graphical User Interface ) to interact with the cloud.
 Backend
• Backend refers to the cloud itself which is used by the service provider. It
contains the resources as well as manages the resources and provides
security mechanisms. Along with this, it includes huge storage, virtual
applications, virtual machines, traffic control mechanisms, deployment
models, etc.
• Application –
Application in backend refers to a software or platform to which client accesses.
Means it provides the service in backend as per the client requirement.

• Service –
Service in backend refers to the major three types of cloud based services
like SaaS, PaaS and IaaS. Also manages which type of service the user accesses.

• Runtime Cloud-
Runtime cloud in backend provides the execution and Runtime
platform/environment to the Virtual machine.

• Storage –
Storage in backend provides flexible and scalable storage service and management
of stored data.
• Infrastructure
Cloud Infrastructure in backend refers to the hardware and software components of
cloud like it includes servers, storage, network devices, virtualization software etc.
• Management
Management in backend refers to management of backend components like application,
service, runtime cloud, storage, infrastructure, and other security mechanisms etc.
• Security
Security in backend refers to implementation of different security mechanisms in the
backend for secure cloud resources, systems, files, and infrastructure to end-users.
• Internet
Internet connection acts as the medium or a bridge between frontend and backend and
establishes the interaction and communication between frontend and backend.
• Database

Database in backend refers to provide database for storing structured data, such as SQL
and NOSQL databases. Example of Databases services includes Amazon RDS, Microsoft
Azure SQL database and Google CLoud SQL.

• Networking

Networking in backend services, provides networking infrastructure for application in

the cloud, such as load balancing, DNS and virtual private networks.

• Analytics

Analytics in backend service provides analytics capabilities for data in the cloud, such
as warehousing, business intelligence and machine learning
 Benefits of Cloud Computing

Architecture
Makes overall cloud computing system simpler.
 Improves data processing requirements.

 Helps in providing high security.

 Makes it more modularized.

 Results in better disaster recovery.

 Gives good user accessibility.

 Reduces IT operating costs.

 Provides high level reliability.

 Scalability.
 Cloud Infrastructure
• Cloud Infrastructure which comes under the backend part of cloud
architecture represents the hardware and software component such as
server, storage, networking, management software, deployment software
and virtualization software etc.
• Cloud infrastructure has more capabilities of providing the same services
as the physical infrastructure to the customers. It is available for private
cloud, public cloud, and hybrid cloud systems with low cost, greater
flexibility and scalability.
• Cloud infrastructure consists of servers, storage devices, network, cloud
management software, deployment software, and platform virtualization
Components of Cloud
Infrastructure
• Hypervisor: It is a firmware or low-level program that acts as a Virtual
Machine Manager. It allows to share the single physical instance of cloud
resources between several tenants.
• Management Software: It helps to maintain and configure the
infrastructure and monitors and optimizes resources, data, applications
and services.
• Deployment Software: It helps to deploy and integrate the application on
the cloud and helps in building a virtual computing environment.
• Network: It is the key component of cloud infrastructure. It allows to
connect cloud services over the Internet. It is also possible to deliver
network as a utility over the Internet, which means, the customer can
customize the network route and protocol.
• Server: The server helps to compute the resource sharing and offers other
services such as resource allocation and de-allocation, monitoring the
resources, providing security etc.
• Storage: Cloud keeps multiple replicas of storage. If one of the storage
resources fails, then it can be extracted from another one, which makes
cloud computing more reliable.
• Fundamental constraints that cloud infrastructure should implement are:
• Transparency: Virtualization is the key to share resources in cloud
environment. But it is not possible to satisfy the demand with single
resource or server. Therefore, there must be transparency in resources,
load balancing and application, so that we can scale them on demand.
• Scalability: Scaling up an application delivery solution is not that easy as
scaling up an application because it involves configuration overhead or
even re-architecting the network. So, application delivery solution is need
to be scalable which will require the virtual infrastructure such that
resource can be provisioned and de-provisioned easily.
• Intelligent Monitoring: To achieve transparency and scalability, application
solution delivery will need to be capable of intelligent monitoring.
• Security: The mega data center in the cloud should be securely
architected. Also, the control node, an entry point in mega data center,
also needs to be secure.
 Types of Cloud
There are the following 4 types of cloud that you can deploy according to
the organization's needs-
 Public Cloud
 Private Cloud
 Hybrid Cloud
 Community Cloud
 Public Cloud
• Public cloud is open to all to store and access information via the Internet
using the pay-per-usage method.

• In public cloud, computing resources are managed and operated by the

Cloud Service Provider (CSP).

• Example: Amazon elastic compute cloud (EC2), IBM Smart Cloud

Enterprise, Microsoft, Google App Engine, Windows Azure Services
Platform.
 Advantages of Public Cloud
There are the following advantages of Public Cloud -
 Public cloud is maintained by the cloud service provider, so do not need to
worry about the maintenance.
 Public cloud is easier to integrate. Hence it offers a better flexibility approach
to consumers.
 Public cloud is location independent because its services are delivered
through the internet.
 Public cloud is highly scalable as per the requirement of computing resources.
 It is accessible by the general public, so there is no limit to the number of
users.
 Disadvantages of Public Cloud
 Public Cloud is less secure because resources are shared publicly.
 Performance depends upon the high-speed internet network link to the
cloud provider.
 The Client has no control of data.
 Private Cloud
• Private cloud is also known as an internal cloud or corporate cloud. It is
used by organizations to build and manage their own data centers
internally or by the third party. It can be deployed using Open source
tools such as Open stack and Eucalyptus.
• Examples – HPE, Dell, VMware, etc.
 Advantages of Private Cloud
 Private cloud provides a high level of security and privacy to the users.
 Private cloud offers better performance with improved speed and space
capacity.
 It allows the IT team to quickly allocate and deliver on-demand IT
resources.
 The organization has full control over the cloud because it is managed by
the organization itself. So, there is no need for the organization to depend
on anybody.
 It is suitable for organizations that require a separate cloud for their
personal use and data security is the first priority.
 Disadvantages of Private Cloud
 Skilled people are required to manage and operate cloud services.
 Private cloud is accessible within the organization, so the area of
operations is limited.
 Private cloud is not suitable for organizations that have a high user base,
and organizations that do not have the prebuilt infrastructure, sufficient
manpower to maintain and manage the cloud.
 Hybrid Cloud
• Hybrid Cloud is a combination of the public cloud and the private cloud.
we can say:

• Hybrid Cloud = Public Cloud + Private Cloud

• Hybrid cloud is partially secure because the services which are running on
the public cloud can be accessed by anyone, while the services which are
running on a private cloud can be accessed only by the organization's
users.

• Example: Google Application Suite (Gmail, Google Apps, and Google

Drive), Office 365 (MS Office on the Web and One Drive)
 Advantages of Hybrid Cloud
 Hybrid cloud is suitable for organizations that require more security
than the public cloud.
 Hybrid cloud helps you to deliver new products and services more
quickly.
 Hybrid cloud provides an excellent way to reduce the risk.
 Hybrid cloud offers flexible resources because of the public cloud and
secure resources because of the private cloud.
 Disadvantages of Hybrid Cloud
 In Hybrid Cloud, security feature is not as good as the private cloud.
 Managing a hybrid cloud is complex because it is difficult to manage
more than one type of deployment model.
 In the hybrid cloud, the reliability of the services depends on cloud
service providers.
 Community Cloud
• Community cloud allows systems and services to be accessible by a
group of several organizations to share the information between the
organization and a specific community. It is owned, managed, and
operated by one or more organizations in the community, a third
party, or a combination of them.

• Example: Health Care community cloud

 Advantages of Community Cloud
 Community cloud is cost-effective because the whole cloud is being
shared by several organizations or communities.
 Community cloud is suitable for organizations that want to have a
collaborative cloud with more security features than the public cloud.
 It provides better security than the public cloud.
 It provides collaborative and distributive environment.
 Community cloud allows us to share cloud resources, infrastructure, and
other capabilities among various organizations.
 Disadvantages of Community
Cloud
 Community cloud is not a good choice for every organization.
 Security features are not as good as the private cloud.
 It is not suitable if there is no collaboration.
 The fixed amount of data storage and bandwidth is shared among all
community members.
Basis of Difference Private Cloud Public Cloud
Private Clouds tend to cost more than Public Clouds tend to cost less than Private
Public Clouds for reserving/constructing Clouds, as you use pre-made data centers.
Cost
the data center.

Connection is possible only via a private Connection is open on the internet,

network, which makes them extremely making them more vulnerable and less
Security
secure secure.

Very high performance because of private Performance is moderate

Performance networks

Reliability Reliability is very high Low to Moderate Reliability

Hosted by the company on their Hosted by the Provider
Architecture infrastructure

Limited Scalability, you may need to Practically Unlimited Scalability since the
Scalability upgrade/expand the hardware. cloud provider has near infinite resources.

Servers Dedicated Servers Shared Servers

Your enterprise owns the infrastructure, Very little control, as the computers are
Control hence very high control. shared between enterprises
Parameter Public Cloud Private Cloud Hybrid Cloud Community Cloud

Host Service provider Enterprise Enterprise Community (Third party)

(Third party) (Third party)

Users General public Selected users Selected users Community members

Access Internet Internet, VPN Internet, VPN Internet, VPN

Owner Service provider Enterprise Enterprise Community

 Cloud Computing Life Cycle
• A cloud life cycle developed by a group of organizations using an open-
innovation approach encompasses nine steps that can be followed for
both the migration to cloud computing and perpetual management of
public cloud-based services.
In sequential order, the four phases of the cloud computing life cycle are as
follows:
• Architect: This phase begins with the analysis and preparation of the
cloud scheme. Usually, an organization will only commit a nominal
amount of resources in order to decide if they should go forward with
comprehensive development.
• Engage: This phase involves choosing a cloud service provider that can
provide the necessary services. A lot of organizations decide to stop at this
stage whenever the suitable cloud services are not offered, or because
they do not have the assurance that any cloud provider can deliver the
required service.
• Operate: This phase comprises the execution of and regular management
of the cloud service.
• Refresh: This phase includes the continued appraisal of cloud services
provided.
The Conceptual Reference
Model
• The NIST cloud computing reference model defines five major actors:
1. Cloud consumer
2. Cloud provider
3. Cloud carrier
4. Cloud auditor and
5. Cloud broker.
 Economics of Cloud Computing
• The main drivers of cloud computing are economy of scale and simplicity
of software delivery and its operation. In fact, the biggest benefit of this
phenomenon is financial: the pay-as-you go model offered by cloud
providers.
• Economics of Cloud Computing is based on the PAY AS YOU GO method.
Users/Customers must have to pay only for their way of the usage of the
cloud services. It is definitely beneficial for the users. So the Cloud is
economically very convenient for all. Another side is to eliminate some
indirect costs which is generated by assets such as license of the software
and their support. In the cloud, users can use software applications on a
subscription basis without any cost because the property of the software
providing service remains to the cloud provider
Economical background of the cloud is more useful for developers in the
following ways:
• Pay as you go model offered by cloud providers.
• Scalable and Simple.

• In particular, cloud computing allows:

1. Reducing the capital costs associated to the IT infrastructure
2. Eliminating the depreciation or lifetime costs associated with IT capital
assets
3. Replacing software licensing with subscriptions
4. Cutting the maintenance and administrative costs of IT resources
• In the case of a small startup, it is possible to completely leverage the
cloud for many aspects, such as:
• IT infrastructure
• Software development
• CRM and ERP
 What is Capital Cost
• It is cost occurred in the purchasing infrastructure or the assets that is
important in the production of goods. It takes a long time to generate
profit.
• In the case of start-ups, there is no extra budget for the infrastructure
and its maintenance. So cloud can minimizes expenses of any small
organization in terms of economy.
• It leads to the developers can only focus on the development logic and
not on the maintenance of the infrastructure.
There are three different Pricing Strategies that are introduced by Cloud
Computing: Tiered Pricing, Per-unit Pricing, and Subscription-based Pricing.
These are explained as following below.
Tiered Pricing: In this model, cloud services are offered in several tiers, each
of which offers a fixed computing specification and SLA at a specific price
per unit of time. This model is used by Amazon for pricing the EC2 service,
which makes available different server configurations in terms of computing
capacity (CPU type and speed, memory) that have different costs per hour
• Per-unit Pricing: The model is based upon the unit-specific service
concept. Data transfer and memory allocation include in this model for
specific units. This model is more suitable to cases where the principal
source of revenue for the cloud provider is determined in terms of units of
specific services, such as data transfer and memory allocation. In this
scenario customers can configure their systems more efficiently according
to the application needs. This model is used, for example, by GoGrid,
which makes customers pay according to RAM/hour units for the servers
deployed in the GoGrid cloud.
• Subscription-based Pricing: This is the model used mostly by SaaS
providers in which users pay a periodic subscription fee for use of the
software or the specific component services that are integrated in their
applications.
• All of these costs are based on a pay-as-you-go model, which constitutes a
more flexible solution for supporting the delivery on demand of IT
services.
• This is what actually makes possible the conversion of IT capital costs into
operational costs, since the cost of buying hardware turns into a cost for
leasing it and the cost generated by the purchase of software turns into a
subscription fee paid for using it.
 Economics of Private Cloud
Organizations see similar benefits when they deploy data reduction in their private
cloud environments. Private cloud deployments are selected over public because they
offer the increased flexibility of the public cloud model but keep privacy and security
under their own control.
• Supply-Side Savings: Large scale data centers lower costs per servers.
• Multi-tenancy efficiency: Increasing the number of tenants (ie. Customers or users)
lowers the application management and server cost per tenant.
• Infrastructure labour costs: By automating many repetitive management tasks, larger
facilities are able to lower them further than smaller ones.
• Security and Reliability: Large commercial cloud providers are often better able to
bring deep expertise to bear on this problem than a typical corporate IT department.
• Buying Power: Operators of large data centers can get discounts on hardware
purchases of up to 30 percent over small buyers.
 Economics of the Cloud
• The main drivers of Cloud Computing are:
Economy of Scale
Simplicity of Software Delivery

• In fact, the biggest benefit of this phenomenon is financial: the pay-as-

you-go model offered by Cloud providers.
• In particular, Cloud Computing allows:
• Reducing the capital costs associated to the IT infrastructure.
• Eliminating the depreciation or lifetime costs associated with IT capital
assets.
• Replacing software licensing with subscriptions.
• Cutting down the maintenance and administrative costs of iT resources.
• A capital cost is the cost occurred in purchasing an asset that is useful in
the production of goods or the rendering of services. Capital costs are
one-time expenses that are generally paid upfront and that will
contribute over a long term to generate profit.
• The IT infrastructure and the software are capital
 Economies of scale: public vs.
private clouds
• Economies of scale refer to the cost advantages that organizations
experience when increasing their production levels. In the context of cloud
computing, public and private clouds offer different pathways to achieving
these economies. Here’s a comparison of both:
 Public Clouds
• Advantages:
1. Shared Resources: Public cloud providers (like AWS, Azure, and Google
Cloud) pool resources across multiple customers, allowing for optimized
infrastructure usage and reduced costs per unit.
2. Cost Distribution: Costs for infrastructure, maintenance, and upgrades are
spread across a large user base, leading to lower prices for individual users.
3. Rapid Scalability: Public clouds allow businesses to quickly scale resources
up or down as needed without the overhead of physical hardware,
facilitating economies of scale in variable workloads.
4. Lower Initial Investment: Companies can access advanced computing
resources without significant upfront capital expenditure, which is
beneficial for startups and smaller businesses.
• Disadvantages:
1. Less Control: Users have less control over infrastructure and
configurations, which might lead to inefficiencies for specific use cases.
2. Variable Costs: While initial costs are lower, unpredictable usage can lead
to higher expenses over time.
• Private Clouds
• Advantages:
1. Custom Optimization: Private clouds are tailored to the specific needs of
an organization, allowing for optimized performance and potential
efficiencies that may not be possible in a shared environment.
2. Enhanced Security: Greater control over security measures and
compliance can lead to cost savings associated with managing risks,
especially for regulated industries.
3. Stable Costs: Although private clouds often require higher upfront
investment, they can lead to predictable long-term costs if infrastructure is
well-managed.
• Disadvantages:
1. Higher Initial Costs: Setting up a private cloud typically involves
significant capital investment in hardware and software.
2. Underutilization Risk: If workloads fluctuate significantly, resources in a
private cloud may remain underutilized, leading to inefficiencies and
wasted expenditure.
3. Maintenance Overhead: Organizations are responsible for maintaining
their infrastructure, which can lead to higher operational costs compared
to public clouds.
• Conclusion
• Public Cloud: Generally better for businesses seeking low costs,
flexibility, and rapid scalability, particularly for variable workloads.
Economies of scale are achieved through resource sharing and large-
scale infrastructure.
• Private Cloud: More suitable for organizations with specific security,
compliance, or performance needs. While the initial investment is
higher, long-term efficiencies can be realized if managed effectively.
Choosing between public and private clouds ultimately depends on the
organization’s specific needs, including budget, control, compliance,
and scalability requirements. Some businesses even adopt a hybrid
approach, leveraging both models to maximize benefits and minimize
drawbacks.
 Economics of Private Cloud
The economics of private cloud computing involve various factors that
organizations need to consider when deciding whether to build and
maintain their own private cloud infrastructure. Here are some key aspects:
Initial Investment vs. Ongoing Costs
• Capital Expenditure (CapEx): Setting up a private cloud typically requires
significant upfront investment in hardware, software, and networking
infrastructure.
• Operating Expenses (OpEx): Ongoing costs include maintenance, power,
cooling, and personnel for managing the infrastructure.
Cost Efficiency
• Resource Utilization: Private clouds can optimize resource use through
virtualization, leading to lower costs per workload compared to traditional
environments.
• Scaling Costs: While scaling up can be costly in terms of hardware, it can
also provide savings by avoiding over-provisioning.

Control and Customization

• Organizations have more control over their environment, enabling
customization that can lead to better performance for specific workloads.
• Compliance with industry regulations can be easier to manage in a private
cloud.
Security and Compliance
• Private clouds can provide enhanced security measures tailored to an
organization's needs, potentially reducing risks and compliance costs.
• However, ensuring robust security can also increase operational
complexity and costs.

Total Cost of Ownership (TCO)

• Organizations should calculate TCO by factoring in all costs over the
expected lifecycle of the private cloud, including hardware refresh cycles,
software licenses, and personnel costs.
Comparison with Public Cloud
• Private clouds often have a higher TCO compared to public cloud
solutions, especially for variable workloads where public cloud pricing can
be more attractive.
• However, for predictable workloads or sensitive data, a private cloud
might provide better long-term value.

Flexibility and Agility

• While private clouds can be less flexible than public clouds in terms of
scaling, they allow for quick deployment of internal resources.
Hybrid Approaches
• Many organizations opt for a hybrid cloud strategy, balancing the benefits
of private and public clouds to optimize costs and performance.