An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of?
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Transcript of An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of?
An Introduction to Cloud Computing - Part 2 - What Does a Cloud Environment Consist of?
Mark Morley, Industry Marketing Director
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Three Layers of Cloud Computing
Business Applications
ApplicationInfrastructure
Compute & Storage
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Infrastructure-as-a-Service
• Delivers computer infrastructure,
typically platform virtualisation as a
service. Its an evolution of virtual
private server offerings
– Includes servers, memory and storage that
allow a customer to scale up or down as
required
– Infrastructure can be used by customers to
run their own software with only the amount
of resource that is needed at a given
moment in time
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Platform-as-a-Service
• Delivers a computing platform and/or
solution stack as a service, often
consuming cloud infrastructure and
sustaining cloud applications.
– Allows users to use the clouds to develop
new applications without the need to have
the software or infrastructure purchased in-
house
– Essentially provides anything to support
how a company builds and delivers web
applications and services in the cloud
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PaaS: A New Continent Emerging
By 2015, most enterprises will have part of their run-the-business software functionally executing in the cloud, using PaaS
By 2015, cloud-based solutions will be growing at a faster rate than on-premises solutions
By 2015, most enterprises using PaaS services or technologies will have a hybrid environment in which internal and external services are combined
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From Both Large and Small Companies
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Software-as-a-Service
• Delivers software over internet
without the need to install
applications on the customer’s own
computers
– SaaS applications are run from one
centralised location, which means that the
software can be accessed from any location
over the internet
– Centralised management of applications
helps to simplify maintenance
– Applications consumed on a pay-as-you-go
basis
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Benefits of Cloud Infrastructures
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Benefits of Cloud Based B2B Integration
Global Accessibility
Scalability
Consistent User Experience
Low Cost
Easy to Maintain
Rapid Deployment
Flexibility
Central Authentication
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Traditional IT versus Cloud Computing
Traditional IT Cloud Computing
Speed to market
Enterprise applications take months or years to design, code, test and deploy
Cloud provider is responsible for on-going development and clients simply use the most up to date application available
Speed to Value
Applications may need to be de-bugged and continually upgraded
Cloud providers conduct all development and testing leaving the client to simply benefit from its usage
Speed to ROI
Even with significant capital investment, many companies never get to realise the expected ROI
Subscription based model allows a client to pay for the service they actually use and is a highly predictable operational expense
Managing TCO
Cost of on-going support and maintenance can be over five times the initial license fee
All on-going support and maintenance costs are rolled into the subscription fee
Managing Innovation
Technology deployment is always at least one step behind the business need, eg a system has to be developed based on the business need
Cloud applications allow companies to quickly scale up solutions to business issues using ‘plug and play’ modules which can be utilised as and when required
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Financial Benefits of Cloud Computing
Factor On-premise Cloud-Computing
Expenditure Type Capital expenditure Operating expense
Cash Flow Servers and software are purchased up front
Payments are made as the service is provided
Financial RiskEntire financial risk is taken upfront, with uncertain return
Financial risk is taken monthly and is matched to return
Income Statement
Maintenance and depreciated capital expense
Maintenance expense only
Balance SheetSoftware and hardware are carried as a long-term capital asset
Nothing appears on the balance sheet
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Pre-CloudState
B2B in the Cloud
B2B
KeepCurrent
Multi-Cloud Strategy
(Includes B2B in the Cloud)
Strategic
Cloud Shared R&D
75%
10%
15%
70%
6%
24%
+4%+20%
45%
6%
49%
Off-Budget Benefits
Strategic Business Benefit
% of Enterprise IT Budget Allocation(Percentages estimated for illustration purposes only)
Innovations funded by Cloud Partners
Innovations Self-Funded by Enterprise IT
Expanding Business Impact with
Innovations Funded by Cloud Partners
The Cloud Multiplier Effect How do you do more with less?
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Not Forgetting the Green Benefits of Cloud Environments...
Lower power consumption requirements
Less computer/network equipment packaging to dispose of
Minimises travel requirements for IT implementation teams
Increased availability of information on lower power devices
Less paper flowing across the supply chain
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Thank You
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