Cloud Computing for SMEs
Cloud Computing for SMEs
Overview:
Comparisons:
Cloud computing derives characteristics from, but should not be confused with:
    The key characteristic of cloud computing is that the computing is "in the
cloud" i.e. the processing (and the related data) is not in a specified, known or
static place(s). This is in contrast to a model in which the processing takes place in
one or more specific servers that are known. All the other concepts mentioned are
supplementary or complementary to this concept.
Generally, 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. In addition, "increased high-speed bandwidth" makes
it possible to receive the same. The cloud is becoming increasingly associated
with small and medium enterprises (SMEs) as in many cases they cannot justify or
afford the large capital expenditure of traditional IT. SMEs also typically have less
existing infrastructure, less bureaucracy, more flexibility, and smaller capital
budgets for purchasing in-house technology. Similarly, SMEs in emerging
markets are typically unburdened by established legacy infrastructures, thus
reducing the complexity of deploying cloud solutions.
Economics
Cloud computing users 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 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.
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 private factory
power generators by utility power plants early in the 20th century.
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 economic sense. Other factors having an
impact on the scale of 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. Additionally, companies can usually depreciate equipment,
such as computers, where services cannot be written off in the same fashion.
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 GB-month), 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.
Architecture
History:
The underlying concept of cloud computing dates back to the 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 Park hill’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 utilize 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. The first scholarly use of the term “cloud computing” was in a 1997
lecture by Ramnath Chellappa.
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 more easily, Amazon initiated a
new product development effort to provide cloud computing to external customers,
and launched Amazon Web Service (AWS) on a utility computing basis in 2006.
In 2007, Google, IBM and a number of universities embarked on a large scale
cloud computing research project.  In early 2008, Eucalyptus became the first open
source AWS API compatible platform for deploying private clouds. In early
2008, Open Nebula, enhanced in the RESERVOIR European Commission funded
project, became the first open source software for deploying private and hybrid
clouds and for the federation of clouds. In the same year, efforts were focused on
providing QoS guarantees (as required by real-time interactive applications) to
Cloud-based infrastructures, in the framework of the IRMOS European
Commission funded project. 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" and observed that "organizations 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."
Key features:
Introduction:
"Computation may someday be organized as a public utility".
 The actual term "cloud" borrows from telephony in that telecommunications
companies.
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.
Helps to use applications without installations.
Access the personal files at any computer with internet access.
This technology allows much more efficient computation by centralizing storage,
memory, and processing and band width.
Based on a study conducted in June 2009 by version one, 41% of IT senior
professionals doesn’t have sound knowledge on cloud computing.
In September 2009, Aberdeen Group found that 18% reduction in there IT budget
and a 16% reduction in data center power costs.
The underlying concept of cloud computing dates back to 1960, when John
McCarthy opined that "computation may someday be organized as a public
utility"; indeed it shares characteristics with service bureaus that date back to the
1960s.
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.
Cost is claimed to be greatly reduced and capital expenditure is converted to
operational expenditure. Device and location independence enable users to access
systems using a web browser regardless of their location or what device they are
using.
Cloud computing is an emerging computing technology that uses the internet and
central remote servers to maintain data and applications.
5. Layers
The Internet functions through a series of network protocols that form a stack of
layers, as shown in the figure (or as described in more detail in the OSI model).
Once an Internet connection is established among several computers, it is possible
to share services within any one of the following layers.
Client:
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.
Application:
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. People
tend to use the terms ‘SaaS’ and ‘cloud’ interchangeably, when in fact they are two
different things. Key characteristics include
Application as a service:
    Platform:
    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. It facilitates deployment of
    applications without the cost and complexity of buying and managing the
    underlying hardware and software layers.
Infrastructure:
Server:
Deployment models:
   1. Public cloud
   2. Community cloud
   3. Hybrid cloud
   4. Private cloud
        These are the basic models available in the cloud concept.
Public cloud:
Public cloud or external cloud describes cloud computing in the traditional main
stream sense, whereby resources are dynamically provisioned on a fine-grained,
self-service basis over the Internet, via web applications/web services, from an off-
site third-party provider who bills on a fine-grained utility computing basis.
   A public cloud may be established where several organizations have similar
    requirements
   Public clouds are run by third parties, and applications from different
    customers are likely to be mixed together on the cloud’s servers, storage
    systems, and networks
  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".
Hybrid cloud:
There is some confusion over the term "hybrid" when applied to the cloud - a
standard definition of the term "Hybrid Cloud" has not yet emerged. The term
"hybrid cloud" has been used to mean either two separate clouds joined together
(public, private, internal or external), or a combination of virtualized cloud server
instances used together with real physical hardware.
 The most correct definition of the term "hybrid cloud" is probably the use of
physical hardware and virtualized cloud server instances together to provide a
single common service. Two clouds that have been joined together are more
correctly called a "combined cloud".
A combined cloud environment consisting of multiple internal and/or external
providers "will be typical for most enterprises".By integrating multiple cloud
services users may be able to ease the transition to public cloud services while
avoiding issues such as PCI compliance.
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
and managed dedicated servers - this is most commonly achieved as part of a web
cluster in which some of the nodes are running on real physical hardware and some
are running on cloud server instances.
A hybrid storage cloud uses a combination of public and private storage clouds.
Hybrid storage clouds are often useful for archiving and backup functions,
allowing local data to be replicated to a public cloud.
   Hybrid clouds combine both public and private cloud models
Private cloud:
Douglas Park hill first described the concept of a "private computer utility" 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 themselves pre-date 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 virtualization automation) products offer the ability to host
applications or virtual machines in a company's own set of hosts.
 These provide the benefits of utility computing -shared hardware costs, the ability
to recover from failure, and the ability to scale up or down depending upon
demand.
Private clouds have attracted criticism because users "still have to buy, build, and
manage them" and thus do not benefit from lower up-front capital costs and less
hands-on management, essentially "[lacking] the economic model that makes cloud
computing such an intriguing concept". 
Enterprise IT organizations use their own private cloud(s) for mission critical and
other operational systems to protect critical infrastructures.
   Are built for the exclusive use of one client
   providing the extreme control over data, security, and quality of service
   The company owns the infrastructure and has control over how applications
    are deployed on it.
7.Cloud engineering:
Cloud engineering is the application of a systematic, disciplined, quantifiable, and
interdisciplinary approach to the ideation, conceptualization, development,
operation, and maintenance of cloud computing, as well as the study and applied
research of the approach, i.e., the application of engineering to cloud.
Private clouds have attracted criticism because users "still have to buy, build, and
manage them" and thus do not benefit from lower up-front capital costs and less
hands-on management.
   8. 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.
After award of the BPA(s), the Quoter shall be responsible for the deliverable
products on firm-fixed price basis within the schedules contained in the individual
task orders.
Deliverables listed below should be accessible via online interface not later than 10
days after the end of the calendar month and available for up to one year after
creation. The information shall be available in comma separated values (CSV) file
format. The Quoter shall provide non-cumulative monthly reports for the items
described in the table below for.
10. Issues:
   1. Privacy
   2.   Compliance
   3.   Legal
   4.   Open source
   5.   Open standards
   6.   Security
   7.   Availability and performances
   8.   Sustainability and sitting
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.
   While there have been efforts (such as US-EU Safe Harbor) to "harmonize" 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.
Legal:
Open source:
Open source software has provided the foundation for many cloud computing
implementations. 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.
Below provides GSA’s minimum requirements for a Moderate Impact Cloud
Computing (CC) Infrastructure as a Service (IaaS) Offering.
 In CC, security responsibilities are shared between the Quoter and the Consumer,
in this case a Federal Government Agency.
The Quoter is responsible for provisioning, securing, monitoring, and maintaining
the hardware, network(s), and software that support the infrastructure and present
Virtual Machines (VMs) and IT resources to the consumer.
On its part, the Consumer Agency is responsible for the security of the “guest”
Operating System (OS) and any additional software, up to and including the
applications running on the guest OS.
Open standards:
Most cloud providers expose APIs which are typically well-documented (often
under a Creative Commons license) but also unique to their implementation and
thus not interoperable.
Some vendors have adopted others' APIs and there are a number of open standards
under development, including the OGF'sOpen Cloud Computing Interface.
The Open Cloud Consortium (OCC) is working to develop consensus on early
cloud computing standards and practices.
In a Web Hosting scenario, the Quoter is responsible for securing, monitoring, and
maintaining the infrastructure as described above, plus the Web Server software
and supporting software (i.e., any data base management systems.)
 The Consumer Agency is responsible for securing and maintaining the web
application.
 If individual (named) user access is required, the specific Service Level
Agreement shall document who is responsible for creating, and maintaining user
accounts.
Security:
The relative security of cloud computing services is a contentious issue which may
be delaying its adoption. 
Issues barring the adoption of cloud computing are due in large part to the private
and public sectors unease surrounding the external management of security based
services.
 It is the very nature of cloud computing based services, private or public, that
promote external management of provided services.
 This delivers great incentive amongst cloud computing service providers in
producing a priority in building and maintaining strong management of secure
services.
Organizations have been formed in order to provide standards for a better future in
cloud computing services. One organization in particular, the Cloud Security
Alliance is a non-profit organization formed to promote the use of best practices
for providing security assurance within cloud computing.
The Office of Management and Budget (OMB) Circular A-130, Management of
Federal Information Resources, requires Federal agencies to plan for security.
The Government and the Contractor will work in good faith to establish an
Interconnection Security Agreement (ISA) and/or a Memorandum of
Understanding (MOU) as provided in the National Institute of Standards and
Technology (NIST) Special Publication 800-47, Security Guide for
Interconnecting Information Technology Systems, Section D.7 - Security
Requirements.
The scope of this RFQ focuses on IaaS service offerings available within a public
cloud deployment model. The implementation is a Moderate Impact System as
defined in National Institute of Science and Technology (NIST) Federal
Information Processing Standard (FIPS) Publication 199 (Section D7. – Security
Requirements).
The Horizontal functional areas represent the core “computing” capabilities that
enable different levels of Cloud Computing, while the vertical functional areas
illustrate the management and business capabilities needed to wrap-around the core
components to enable business processes with Cloud Computing. For example,
Reporting and Analytics offer the ability to perform key reporting and business
intelligence analytics and therefore are not core Cloud Computing components;
however, analytics offer significant business capabilities that can harness the
power of the data that will reside within the Cloud Computing environment.
GSA Cloud Computing Storefront
The initial acquisition of these services will be facilitated by GSA through the
GSA Cloud Computing Storefront Site – which will enable Government
purchasers to buy (using a credit card or other acceptable payment option) IaaS
service offerings as needed through a common Web Portal, such as apps.gov,
which will be managed and maintained by GSA.
                                                                                                                             Federal
                                                                                                                            Agency n
                                                                                                         1
                                                                 3
                                                                              GSA Cloud
                              Based on Federal Agency’s selection,            Storefront                 Federal Agencies inquire and procure IaaS
                              the GSA Cloud Storefront enables the           (Web Portal)                service through the GSA Cloud Storefront
                              procurement of IaaS services with the
                              vendor.
                                                                                     2
                                                            The GSA Federal Cloud Storefront provides the
                                                            predefined IaaS service offering options from the
                                                            supported IaaS vendors based on the submitted
                                                                    inquires from the Federal Agency
Tasks
The requirements focus on IaaS service offerings, specifically for Storage Services,
Virtual Machines (VM), and Cloud Web hosting service.
Requirements have been established for each of the IaaS functional components
within the Federal Cloud Framework described above as required (mandatory).
The Government shall retain ownership of any user created/loaded data and an
application hosted on vendor’s infrastructure, and maintains the right to request
full copies of these at any time.
The Quoter shall provide a Cloud Computing solution that aligns to the following
“Essential Characteristics” as defined in the National Institute of Standards and
Technology (NIST) Working Definition and described in Table 1 below:
4. Rapid elasticity   Capabilities can be rapidly and      The Quoter shall support
                      elastically provisioned to           service provisioning and
                      quickly scale up and rapidly         de-provisioning times
                      released to quickly scale down.      (scale up/down), making
                      To the consumer, the capabilities    the service available
                      available for provisioning often     within near real-time of
                      appear to be infinite and can be     provisioning request.
                      purchased in any quantity at any
                      time.
DR and        15.The Quoter shall ensure the security of the services and data
COOP             hosted at their facilities by providing DR (Disaster
                 Recovery) and COOP (Continuity of Operations)
                 capabilities.
Integration Requirements
 LAN/WAN          33.The Quoter ‘s Local Area Network (LAN) shall not impede
                     data transmission.
35.IP Addressing:
 Data Center         36.The Quoter shall provide data center facilities including
 Facilities             space, power, physical infrastructure (hardware). Upon
                        request from the Government, the hosting Quoter shall
                        provide access to the hosting facility for inspection.
The IaaS Service Offering Requirements have been divided into three distinct Lots:
The following sections describe the service, service options, service attributes, and
service units for the three Lots.
12. Research:
Some have come to criticize the term as being either too unspecific or even
misleading.
CEO Larry Ellison of Oracle Corporation asserts that cloud computing is
"everything that we already do", claiming that the company could simply "change
the wording on some of our ads" to deploy their cloud-based services.
Forrester Research VP Frank Gillett questions the very nature of and motivation
behind the push for cloud computing, describing what he calls "cloud washing" in
the industry whereby companies relabel their products as cloud computing
resulting in a lot of marketing innovation on top of real innovation.
GNU's Richard Stallman insists that the industry will only use the model to deliver
services at ever increasing rates over proprietary systems, otherwise likening it to a
"marketing hype campaign.
See also
     Cloud backup
     Cloud engineering
     Cloud gaming
     Data center
     Green computing
     High-performance computing
     List of cloud computing providers
Open Data Center Alliance
   14. Conclusion:
   Cloud computing is a better way to run your business..
   Finally, cloud apps don’t eat up your valuable IT resources, so your CFO
    will love it.
   This lets you focus on deploying more apps, new projects, and innovation
  Future personal uses:
   No more backing up files to thumb drives or syncing computers together
   Services replace devices
   A single hard drive for the rest of a person’s life, accessible anywhere with
     internet
  Future educational uses:
   An expansion of Microsoft live@edu
               View Video
   More useful spending of technology budgets
   Classroom collaboration
         View an example from AirSet.com Take a quick         tour
   Office Web Applications
   Google Docs
           View Video
Cloud computing is a simple idea, but it can have a huge impact on your
business.
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