Cloud Computing

A
Industrial/Field Project Report

submitted

in partial fulfilment

for the award of the degree of

Master of Technology

in department of Computer Science

with specialization in Computer Science

Supervisor Submitted By

Dr. Pratap Singh Patwal, Ashish Kumar Goyal

HOD, CSE Roll no: 20ELDCS600

LIET-Alwar

Department of Computer Science & Engineering

Laxmi Devi Institute of Engineering & Technology, Alwar

Bikaner Technical University

Jan 2022

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 Candidate’s Declaration

I hereby declare that the Industrial/Field Project, which is being intern in the field, entitled “Cloud
Computing ” in partial fulfilment for the award of Degree of “Master of Technology” in Department
of Computer Science & Engineering with Specialization in Computer Science Engineering , and
submitted to the Department of Computer Science & Engineering, Laxmi Devi Institute of
Engineering & Technology, Alwar, Bikaner Technical University is a record of my own Learning and
internship carried under the Guidance of Dr. Pratap Singh Patwal , HOD(CSE) : Laxmi Devi institute
of Engineering & Technology, Alwar.
I have not submitted the matter presented in this field work report anywhere for the award of any
other Degree.

Student Name: Ashish Kumar Goyal

Branch: CS
Roll no: 20ELDCS600
Laxmi Devi Institute of Engineering & Technology, Alwar

Counter Signed by
Guide Name: DR. Pratap Singh Patwal
Designation: HOD
Department: Computer Science & Engineering Department
Laxmi Devi Institute of Engineering & Technology, Alwar

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 CERTIFICATE

II

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 DOMAIN CERTIFICATE

III

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 ABSTRACT

Cloud computing is the latest of computing paradigms. It promises to change the way people use
computing resources. Using Internet as the backbone, cloud computing asserts that it is possible to
provide computing as a “utility” to end users “as and when needed” basis. Cloud computing has a
potential to serve users of all kinds: individual users, institutions, industry at large. This report
covers issues such nature and scope of cloud computing, its applications, business rationale etc.
Cloud computing is a business model that harnesses the web as the ultimate business platform.
Cloud computing is impregnated with immense potential for array of practical applications. Cloud
computing intends to make the Internet the ultimate home of all computing resources- storage,
computations, applications and allow end user (both individuals and business) to avail these
resources in quantities of her choice, location of their preferences, for duration of their liking.
In
other world web become the provision store for all your computing needs. A business model built
on this paradigm offers these resources as services either on pay per use basis or rental basis. The
model is expected make computing needs available via web on retail basis and is called cloud
computing. Cloud computing intends to make the Internet the ultimate home of all computing
resources- storage, computations, applications and allow end user to available them in quantities of
her choice, location of their preferences, for duration of their liking. In other world web become the
provision store for all your computing needs.

IV

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 Table Contents

1. Introduction ........................................................................................................................... 1
1.1 Cloud Computing Architecture: ........................................................................................ 2
1.2 Hosting a cloud: ................................................................................................................ 2
1.3 Benefits of Cloud Hosting: ................................................................................................ 3

2. Cloud Based Services ........................................................................................................... 3

3. Types of Cloud ...................................................................................................................... 6

3.1 Types of Cloud .................................................................................................................. 6
3.2 Sectors that use community clouds are: ............................................................................ 9

4. Virtualization in Cloud Computing and Types ................................................................... 9

4.1 BENEFITS OF VIRTUALIZATION ........................................................................................ 10
4.2 Types of Virtualizations: .................................................................................................. 10

5. Hypervisor ............................................................................................................................ 11
5.1 Types of Hypervisors – .................................................................................................... 12
5.2 Choosing the right hypervisor: ....................................................................................... 12
5.3 HYPERVISOR REFERENCE MODEL: .................................................................................. 13

6. Characteristics of Cloud Computing ................................................................................. 14

7. Popular Cloud Applications: A Case study ....................................................................... 14

8. Issues in Cloud Computing ................................................................................................ 18

9. Anatomy of Cloud Computing ........................................................................................... 19

9.1 Provisioning and Configuration Module: ........................................................................ 20
9.2 Monitoring and Optimization: ........................................................................................ 20
9.3 Metering and Chargeback: ............................................................................................. 20
9.4 Orchestration: ................................................................................................................ 20
9.5 Configuration Management Database (CMDB): ............................................................. 20
9.6 Cloud Life cycle Management Layer (CLM): ................................................................... 20
9.7 Service CatLog: ............................................................................................................... 20

10. Cloud Computing Services in Financial Market ............................................................ 20

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 10.1 Role of Cloud Computing in Financial Market – ............................................................. 21
10.2 Features of Cloud Computing Services: ......................................................................... 21
10.3 The key Benefits of Cloud Computing are:..................................................................... 21

11. Economics of Cloud Computing ...................................................................................... 22

Conclusion ............................................................................................................................... 24

VI

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 List of Figures

Fig 1.1 Three layers of Cloud Computing ........................................................................ 2

Fig 3.1 Public Cloud ............................................................................................................. 6

Fig 3.2 Private Cloud ........................................................................................................... 7

Fig 3.3 Hybrid Cloud ............................................................................................................ 8

Fig 3.4 Community Cloud.................................................................................................... 8

Fig 4.1 Virtulize Environment ............................................................................................. 9

Fig 4.2 Type of virtulzations.............................................................................................. 10

Fig 7.1 Windows Azure component architecture ............................................................ 17

VII

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 1. Introduction
Cloud computing is a recently developing paradigm of distributed computing. Though it is not a
new idea that emerged just recently. In 1969 L. Kleinrock anticipated, “As of now, computer
networks are still in their infancy. But as they grow up and become more sophisticated, we
will probably see the spread of ’computer utilities’ which, like present electric and telephone
utilities, will service individual homes and offices across the country.” His vision was the true
indication of today’s utility-based computing paradigm. One of the giant steps towards this
world was taken in mid 1990s when grid computing was first coined to allow consumers to
obtain computing power on demand. The origin of cloud computing can be seen as an
evolution of grid computing technologies. The term Cloud computing was given prominence
first by Google’s CEO Eric Schmidt in late 2006 (mayb e he coined the term) [6]. So, the
birth of cloud computing is very recent phenomena although its root belongs to some old ideas
with new business, technical and social perspectives. From the Archi- textural point of view
cloud is naturally built on an existing grid-based architecture and uses the grid services and
adds some technologies like virtualization and some business models.
In brief cloud is essentially a
bunch of commodity computers networked to- gather in same or different geographical locations,
operating together to serve several customers with different need and workload on demand
basis with the help of virtualization. Cloud services are provided to the cloud users as utility ser-
vices like water, electricity, telephone using pay-as-you-use business model. These utility services
are generally described as XaaS (X as a Service) where X can be Software or Platform or
Infrastructure etc. Cloud users use these services provided by the cloud providers and build
their applications in the internet and thus deliver them to their end users. So, the cloud users
don’t have to worry about installing, maintaining hardware and software needed. And they also
can afford these services as they must pay as much, they use. So, the cloud users can reduce their
expenditure and effort in the field of IT using cloud services instead of establishing IT infrastructure
themselves. Cloud is essentially provided by large, distributed data centers. These data centers
are often organized as grid and the cloud is built on top of the grid services. Cloud users are
provided with virtual images of the physical machines in the data centers. This virtualization is
one of the key concepts of cloud computing as it essentially builds the abstraction over the
physical system. Many cloud applications are gaining popularity day by day for their availability,
reliability, scalability, and utility model. These applications made distributed computing easy
as the critic aspects are handled by the cloud provider itself. Cloud computing is growing now-
a-days in the interest of technical and business organizations, but this can also be beneficial for
solving social issues.
In the recent time E-Governance is being implemented in developing
countries to improveefficiency and effectiveness of governance. This approach can be improved
much by using cloud computing instead of traditional ICT. In India, economy is agriculture
based and most of the citizens live in rural areas. The standard of living, agricultural
productivity etc. can be enhanced by utilizing cloud computing in a proper way. Both
applications of cloud computing have the is technological as well as social challenges to
overcome in this report we would try to clarify some of the ideas – Why is cloud computing a
buzzword today? i.e., what are the benefits the provider and the users get using cloud? Though
its idea has come long back in 1990 but what situation made it indispensable today? How is
cloud built? What differentiates it from similarterms like grid computing and utility computing?

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 Though cloud computing now-a-days talks about business enterprises not the non-
profit organizations; how can this new paradigm be used in the services like e-governance and
in social development issues of rural India? In Simplest terms, cloud computing means storing
and accessing the data and programs on remote servers that are hosted on internet instead of
computer’s hard drive or local server. Cloud computing is also referred as Internet based
computing.

1.1 Cloud Computing Architecture:

Cloud computing architecture refers to the components and subcomponents required for
cloud computing. These components typically refer to:

• Front end (fat client, thin client).

• Back-end platforms (servers, storage)
• Cloud based delivery and a network (Internet, Intranet, Inter cloud).

1.2 Hosting a cloud:

There are three layers in cloud computing. Companies use these layers based on the service
they provide.

• Infrastructure
• Platform
• Application

At the bottom is the foundation, the infrastructure where the people start and begin to build.
This is the layer where the cloud hosting lives.

Fig 1.1 Three layers of Cloud Computing

Now, let’s have a look at hosting say you have a company and a website, and the website has
a lot of communications that are exchanged between members. You start with a few members
talking with each other and then gradually the numbers of members increase. As the time passes,
as the number of members increases, there would be more traffic on the network and your
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 server will get slow down. This would cause a problem. A few years ago, the websites are put
in the server somewhere, in this way you must run around or buy and set number of
servers. It costs a lot of money and takes lot of time. You pay for these servers when you
are using and as well as when you are not using. This is called hosting. This problem is
overcome by cloud hosting. With Cloud Computing, you have access to computing power
when you needed. Now, your website is put in the cloud server as you put it on dedicated
server. People start visiting your website and if you suddenly need more computing power, you
will scale up according to the need.

1.3 Benefits of Cloud Hosting:

a) Scalability: With Cloud hosting, it is easy to grow and shrink the number and size of
servers based on the need. This is done by either increasing or decreasing the
resources in the cloud. This ability to alter plans due to fluctuation in business size and
needs is a superb benefit of cloud computing especially when experiencing a sudden
growth in demand.
b) Instant: Whatever you want is instantly available in the cloud.
c) Save Money: An advantage of cloud computing is the reduction in hardware cost.
Instead of purchasing in-house equipment, hardware needs are left to the vendor. For
companies that are growing rapidly, new hardware can be a large, expensive, and
inconvenience. Cloud computing alleviates these issues because resources can be
acquired quickly and easily. Even better, the cost of repairing or replacing equipment is
passed to the vendors. Along with purchase cost, off-site hardware cuts internal power
costs and saves space. these issues because resources Large data centres can take up
precious office space and produce a large amount of heat. Moving to cloud
applications or storage can help maximize space and significantly cut energy
expenditures.
d) Reliability: Rather than being hosted on one single instances of a physical server,
hosting is delivered on a virtual partition which draws its resource, such as disk space,
from an extensive network of underlying physical servers. If one server goes offline it
will have no effect on availability, as the virtual servers will continue to pull resource
from the remaining network of servers.
e) Physical Security: The underlying physical servers are still housed within data centres
and so benefit from the security measures that those facilities implement to prevent
people accessing or disrupting them on-site.

2. Cloud Based Services

Cloud Computing can be defined as the practice of using a network of remote servers hosted on the
Internet to store, manage, and process data, rather than a local server or a personal computer.
Companies offering such kinds of cloud computing services are called cloud providers and typically
charge for cloud computing services based on usage. Types of Cloud Computing

Most cloud computing services fall into three broad categories:

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 • Software as a service (Saas)
• Platform as a service (PaaS)
• Infrastructure as a service (IaaS)
• Anything as a service (XaaS)
These are sometimes called the cloud computing stack because they are built on top of one
another. Knowing what they are and how they are different, makes it easier to accomplish your
goals.

a) Software as a Service (SaaS): Software-as-a-Service (SaaS) is a way of delivering services

and applications over the Internet. Instead of installing and maintaining software, we simply
access it via the Internet, freeing ourselves from the complex software and hardware
management. It removes the need to install and run applications on our own computers or
in the data centres eliminating the expenses of hardware as well as software
maintenance. SaaS provides a complete software solution that you purchase on a pay-as-
you-go basis from a cloud service provider. Most SaaS applications can be run directly from
a web browser without any downloads or installations required. The SaaS applications are
sometimes called Web-based software, on-demand software, or hosted software.

Advantages of SaaS:
• Cost-Effective: Pay only for what you use.
• Reduced time: Users can run most SaaS apps directly from their web browser without
needing to download and install any software. This reduces the time spent in installation
and configuration and can reduce the issues that can get in the way of the software
deployment.
• Accessibility: We can Access app data from anywhere.
• Automatic updates: Rather than purchasing new software, customers rely on a SaaS
provider to automatically perform the updates.
• Scalability: It allows the users to access the services and features on-demand. The
various companies providing Software as a service are Cloud9 Analytics, Salesforce

Cloud Switch, Microsoft Office 365, Eloqua, drobox, and Cloud Tran.

b) Platform as a Service: PaaS is a category of cloud computing that provides a platform and
environment to allow developers to build applications and services over the internet. PaaS
services are hosted in the cloud and accessed by users simply via their web browser. A PaaS
provider hosts the hardware and software on its own infrastructure. As a result, PaaS frees
users from having to install in-house hardware and software to develop or run a new
application. Thus, the development and deployment of the application take
place independent of the hardware. The consumer does not manage or control the
underlying cloud infrastructure including network, servers, operating systems, or storage,
but has control over the deployed applications and possibly configuration settings for the
application-hosting environment.
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 Advantages of PaaS:
• Simple and convenient for users: It provides much of the infrastructure and other IT
services, which users can access anywhere via a web browser.
• Cost-Effective: It charges for the services provided on a per-use basis thus eliminating
the expenses one may have for on-premises hardware and software.
• Efficiently managing the lifecycle: It is designed to support the complete web
application lifecycle: building, testing, deploying, managing, and updating.
• Efficiency: It allows for higher-level programming with reduced complexity thus, the
overall development of the application can be more effective.

The various companies providing Platform as a service are Amazon Web services, Salesforce,
Windows Azure, Google App Engine, cloud Bess and IBM smart cloud.

c) Infrastructure as a Service: Infrastructure as a service (IaaS) is a service model that

delivers computer infrastructure on an outsourced basis to support various operations.
Typically, IaaS is a service where infrastructure is provided as an outsource to enterprises
such as networking equipment, devices, database, and web servers. It is also known
as Hardware as a Service (Haas). IaaS customers pay on a per-user basis, typically by the
hour, week, or month. Some providers also charge customers based on the amount of
virtual machine space they use. It simply provides the underlying operating systems,
security, networking, and servers for developing such applications, services, and for
deploying development tools, databases, etc.

Advantages of IaaS:
• Cost-Effective: Eliminates capital expense and reduces ongoing cost and IaaS customers
pay on a per-user basis, typically by the hour, week, or month.
• Website hosting: Running websites using IaaS can be less expensive than traditional
web hosting.
• Security: The IaaS Cloud Provider may provide better security than your existing
software.
• Maintenance: There is no need to manage the underlying data centre or the
introduction of new releases of the development or underlying software. This is all
handled by the IaaS Cloud Provider.

The various companies providing Infrastructure as a service are Amazon web services, blue stack,
IBM, Open stack, Rack space, and VMware.

d) Anything as a Service: Most of the cloud service providers nowadays offer anything
as a service that is a compilation of all the above services including some additional
services.

Advantages of XaaS:

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 • As this is a combined service, so it has all the advantages of every type of cloud service.

3. Types of Cloud
Cloud computing is Internet-based computing in which a shared pool of resources is available over
broad network access, these resources can be provisioned or released with minimum management
efforts and service provider interaction.

3.1 Types of Cloud

a) Public Cloud: Public clouds are managed by third parties which provide cloud services over
the internet to the public, these services are available as pay-as-you-go billing models. They
offer solutions for minimizing IT infrastructure costs and become a good option for handling
peak loads on the local infrastructure. Public clouds are the go-to option for small
enterprises, which can start their businesses without large upfront investments by
completely relying on public infrastructure for their IT needs. The fundamental
characteristics of public clouds are multitenancy. A public cloud is meant to serve multiple
users, not a single customer. So, the cloud users don’t have to worry about installing,
maintaining hardware and software needed. And they also can afford these services as
they must pay as much, they use. So, the cloud users can reduce their expenditure and
effort in the field of IT using cloud services instead of establishing IT infrastructure
themselves. Cloud is essentially provided by large, distributed data centres. This
virtualization is one of the key concepts of cloud computing as it essentially builds the
abstraction over the physical system. A user requires a virtual computing environment that
is separated, and most likely isolated, from other users.

Fig 3.1 Public cloud

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 b) Private cloud: Private clouds are distributed systems that work on private infrastructure
and provide the users with dynamic provisioning of computing resources. Instead of a pay-
as-you-go model in private clouds, there could be other schemes that manage the usage of
the cloud and proportionally billing of the different departments or sections of an
enterprise.

Fig 3.2 Private Cloud

Advantages of using a private cloud are:

• Infrastructure ensuring SLAs: Private cloud provides specific operations such as
appropriate clustering, data replication, system monitoring, and maintenance, and
disaster recovery, and other uptime services.

• Compliance with standard procedures and operations: Specific procedures must be

put in place when deploying and executing applications according to third-party
compliance standards. This is not possible in the case of the public cloud.

• Customer information protection: In the private cloud security concerns are less since
customer data and other sensitive information do not flow out of private infrastructure.

c) Hybrid cloud: A hybrid cloud is a heterogeneous distributed system formed by combining

facilities of public cloud and private cloud. For this reason, they are also
called heterogeneous clouds. A major drawback of private deployments is the inability to
scale on-demand and efficiently address peak loads. Here public clouds are needed. Hence,
a hybrid cloud takes advantage of both public and private to clouds, there could be other
schemes that manage the usage of the cloud and proportionally billing of the different
departments or sections of an enterprise.

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 Fig 3.3 Hybrid Cloud

d) Community cloud: Community clouds are distributed systems created by integrating the
services of different clouds to address the specific needs of an industry, a community, or a
business sector. In the community cloud, the infrastructure is shared between organizations
that have shared concerns or tasks. The cloud may be managed by an organization or a third
party.

Fig 3.4 Community Cloud

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 3.2 Sectors that use community clouds are:
✓ Media industry: Media companies are looking for quick, simple, low-cost ways for
increasing the efficiency of content generation. Most media productions involve an
extended ecosystem of partners. In particular, the creation of digital content is the outcome
of a collaborative process that includes the movement of large data, massive compute-
intensive rendering tasks, and complex workflow executions.

✓ Healthcare industry: In the healthcare industry community clouds are used to share
information and knowledge on the global level with sensitive data in the private
infrastructure.

✓ Energy and core industry: In these sectors, the community cloud is used to cluster a set of
solution which collectively addresses management, deployment, and orchestration of
services and operations.

4. Virtualization in Cloud Computing and Types

Virtualization is a technique of how to separate a service from the underlying physical delivery
of that service. It is the process of creating a virtual version of something like computer hardware. It
was initially developed during the mainframe era. It involves using specialized software to create a
virtual or software-created version of a computing resource rather than the actual version of the
same resource. With the help of Virtualization, multiple operating systems and applications can run
on same machine and its same hardware at the same time, increasing the utilization and flexibility
of hardware.
In other words and organizations at one time. It does this by assigning a logical name
to a physical storage and providing a pointer to that physical resource on demand. The term
virtualization is often synonymous with hardware virtualization, which plays a fundamental role in
efficiently delivering Infrastructure-as-a-Service (IaaS) solutions for cloud computing. Moreover,
virtualization technologies provide a virtual environment for not only executing applications but
also for storage, memory, and networking.

Fig 4.1 Virtualize Environment

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 The machine on which the virtual machine is going to be built is known as Host Machine and that
virtual machine is referred as a Guest Machine.

4.1 BENEFITS OF VIRTUALIZATION

• More flexible and efficient allocation of resources.
• Enhance development productivity.
• It lowers the cost of IT infrastructure.
• Remote access and rapid scalability.
• High availability and disaster recovery.
• Pay peruse of the IT infrastructure on demand.
• Enables running multiple operating systems.

4.2 Types of Virtualizations:

• Application Virtualization
• Network Virtualization
• Desktop Virtualization
• Storage Virtualization
• Server Virtualization
• Data virtualization

Fig 4.2 Type of virtualizations

a) Application Virtualization: Application virtualization helps a user to have remote access

of an application from a server. The server stores all personal information and other
characteristics of the application but can still run on a local workstation through the
internet. Example of this would be a user who needs to run two different versions of the
same software. Technologies that use application virtualization are hosted applications and
packaged applications.

b) Network Virtualization: The ability to run multiple virtual networks with each has a

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 separate control and data plan. It co-exists together on top of one physical network. It can
be managed by individual parties that potentially confidential to each other. Network
virtualization provides a facility to create and provision virtual networks—logical switches,
routers, firewalls, load balancer, Virtual Private Network (VPN), and workload security
within days or even in weeks.

c) Desktop Virtualization: Desktop virtualization allows the users’ OS to be remotely stored

on a server in the data centre. It allows the user to access their desktop virtually, from any
location by a different machine. Users who want specific operating systems other than
Windows Server will need to have a virtual desktop. Main benefits of desktop virtualization
are user mobility, portability, easy management of software installation, updates, and
patches.

d) Storage Virtualization: Storage virtualization is an array of servers that are managed by a

virtual storage system. The servers aren’t aware of exactly where their data is stored, and
instead function more like worker bees in a hive. It makes managing storage from multiple
sources to be managed and utilized as a single repository. storage virtualization software
maintains smooth operations, consistent performance, and a continuous suite of advanced
functions despite changes, break down and differences in the underlying equipment.

e) Server Virtualization: This is a kind of virtualization in which masking of server resources

takes place. Here, the central server (physical server) is divided into multiple different virtual
servers by changing the identity number, processors. So, each system can operate its own
operating systems in isolate manner. Where each sub-server knows the identity of the
central server. It causes an increase in the performance and reduces the operating cost by
the deployment of main server resources into a sub-server resource. It’s beneficial in virtual
migration, reduce energy consumption, reduce infrastructural cost, etc.

f) Data virtualization: This is the kind of virtualization in which the data is collected from
various sources and managed that at a single place without knowing more about the
technical information like how data is collected, stored & formatted then arranged that data
logically so that its virtual view can be accessed by its interested people and stakeholders,
and users through the various cloud services remotely. Many big giant companies are
providing their services like Oracle, IBM, At scale, Cdata, etc.

It can be used to performing various kind of tasks such as Data-integration, Business-integration,

Service-oriented architecture data-services, and searching organizational data

5. Hypervisor
A hypervisor is a form of virtualization software used in Cloud hosting to divide and allocate the
resources on various pieces of hardware. The program which provides partitioning, isolation or
abstraction is called virtualization hypervisor. The hypervisor is a hardware virtualization
technique that allows multiple guest operating OS to run on a single host system at the same
time. A hypervisor is sometimes also called a virtual machine manager.

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 5.1 Types of Hypervisors –
a) TYPE-1 Hypervisor:
The hypervisor runs directly on the underlying host system. It is also known as “Native
Hypervisor” or “Bare metal hypervisor”. It does not require any base server operating
system. It has direct access to hardware resources. Examples of Type 1 hypervisors include
VMware ESXi, Citrix XenServer and Microsoft Hyper-V hypervisor.

Pros & Cons of Type-1 Hypervisor:

• Pros: Such kind of hypervisors are very efficient because they have direct access to
the physical hardware resources (like Cpu, Memory, Network, Physical storage).
This causes the empowerment the security because there is nothing any kind of
the third-party resource so that attacker couldn’t compromise with anything.

• Cons: One problem with Type-1 hypervisor is that they usually need a dedicated
separate machine to perform its operation and to instruct different VMs and
control the host hardware resources.

b) TYPE-2 Hypervisor:
A Host operating system runs on the underlying host system. It is also known as ‘Hosted
Hypervisor”. Such kind of hypervisors doesn’t run directly over the underlying hardware
rather they run as an application in a Host system (physical machine). Basically, software
installed on an operating system.

Pros & Cons of Type-2 Hypervisor:

• Pros: Such kind of hypervisors allows quick and easy access to a guest
Operating System alongside the host machine running. These hypervisors
usually come with additional useful features for guest machine. Such tools
enhance the coordination between the host machine and guest machine.

• Cons: Here there is no direct access to the physical hardware resources so

the efficiency of these hypervisors lags in performance as compared to the
type-1 hypervisors, and potential security risks are also there an attacker
can compromise the security weakness if there is access to the host
operating system so he can also access the guest operating system.

5.2 Choosing the right hypervisor:

Type 1 hypervisors offer much better performance than Type 2 ones because there’s no
middle layer, making them the logical choice for mission-critical applications and workloads. But
that’s not to say that hosted hypervisors don’t have their place – they’re much simpler to set up,
so they’re a good bet if, say, you need to deploy a test environment quickly. One of the best ways
to determine which hypervisor meets your needs is to compare their performance metrics. These
include CPU overhead, amount of maximum host and guest memory, and support for virtual
processors. The following factors should be examined before choosing a suitable hypervisor:
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 a) Understand your needs: The company and its applications are the reason for the data
centre (and your job). Besides your company’s needs, you (and your co-workers in IT) also
have your own needs. Needs for a virtualization hypervisor are:
a. Flexibility
b. Scalability
c. Usability
d. Availability
e. Reliability
f. Efficiency
g. Reliable support

b) The cost of a hypervisor: For many buyers, the toughest part of choosing a hypervisor is
striking the right balance between cost and functionality. While several entry-level
solutions are free, or practically free, the prices at the opposite end of the market can be
staggering. Licensing frameworks also vary, so it’s important to be aware of exactly what
you’re getting for your money.
c) Virtual machine performance: Virtual systems should meet or exceed the performance
of their physical counterparts, at least in relation to the applications within each server.
Everything beyond meeting this benchmark is profit.

d) Ecosystem: It’s tempting to overlook the role of a hypervisor’s ecosystem – that is, the
availability of documentation, support, training, third-party developers, and consultancies,
and so on – in determining whether a solution is cost-effective in the long term.

e) Test for yourself: You can gain basic experience from your existing desktop or laptop.
You can run both VMware vSphere and Microsoft Hyper-V in either VMware Workstation
or VMware Fusion to create a nice virtual learning and testing environment.

5.3 HYPERVISOR REFERENCE MODEL:

There are 3 main modules coordinates to emulate the underlying hardware:

a) DISPATCHER:
The dispatcher behaves like entry point of the monitor and reroutes the instruction of

the virtual machine instance to one of the other two modules.

b) ALLOCATOR:
The allocator is responsible for deciding the system resources to be provided to the virtual
machine instance. It means whenever virtual machine tries to execute an instruction that
results in changing the machine resources associated with the virtual machine, the
allocator is invoked by the dispatcher.

c) INTERPRETER:
The interpreter module consists of interpreter routines. changing the machine resources
associated with the virtual machine, the allocator is invoked by the dispatcher. These are
executed, whenever virtual machine executes a privileged instruction.
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 6. Characteristics of Cloud Computing
There are basically 5 essential characteristics of Cloud Computing.
a) On-demand self-services: The Cloud computing services does not require any
human administrators, user themselves are able to provision, monitor and manage
computing resources as needed.

b) Broad network access: The Computing services are generally provided over standard
networks and heterogeneous devices. it is provided to him, and it is scale out as soon
as its requirement gets over.

c) Rapid elasticity: The Computing services should have IT resources that are able to
scale out and in quickly and on as needed basis. Whenever the user requires services,
it is provided to him, and it is scale out as soon as its requirement gets over.

d) Resource pooling: The IT resource (e.g., networks, servers, storage, applications, and
services) present are shared across multiple applications and occupant in an
uncommitted manner. it is provided to him, and it is scale out as soon as its
requirement gets over. Multiple clients are provided service from a same physical
resource.

e) Measured service: The resource utilization is tracked for each application and
occupant; it will provide both the user and the resource provider with an account of
what has been used. This is done for various reasons like monitoring billing and
effective use of resource.

7. Popular Cloud Applications: A Case study

Applications using cloud computing are gaining popularity day by day for their high
availability, reliability, and utility service model. Today many cloud providers are in the IT
market. Of those Google App-Engine, Windows Azure and Amazon EC2, S3 are
prominent ones for their popularity and technical perspective.

a) Amazon EC2 and S3 Services

Amazon Elastic Computing (EC2) is one of the biggest organizations to pro- vide
Infrastructure as a Service. They provide the computer architecture with XEN virtual
machine. Amazon EC2 is one of the biggest deployments of XEN architecture to date. The
clients can install their suitable operating system on the virtual machine. EC2 uses
Simple Storage Service (S3) for storage of data. Users can hire suitable amount CPU
power, storage, and memory without any upfront commitment. Users can control the
entire software stack from kernel upwards. The architecture has two components one is
the EC2 for computing purposes and S3 isfor storage purposes.

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 • Simple Storage Service: S3 can be thought as a globally available distributed
hash table with high-level access control. Data is stored in name/value pairs.
Names are like UNIX file names and the value can be object having size up-to 5
GB with up-to 4K of metadata for each object. All objects in Amazon’s S3
must fit into the global namespace. This namespace consists of a “bucket name”
and an “object name”. Bucket names are like usernames in traditional email
account and provided by Amazon on first come first serve basis. An AWS
(Amazon Web Services) account can have maximum of 100 buckets. Data to S3
can be sent by SOAP based API or with raw HTTP “PUT” com- mands. Data
can be retrieved using SOAP HTTP or BitTorrent. While using BitTorrent the S3
system operates as both tracker and the initial seeder. There are also some tools
available which enables the users to view S3 as a remote file system. Upload
download rate from and to S3 is not that much exiting. One developer from
Germany reported experiencing 10-100 KBps. This rate can go up-to 1-2 MBps on
the higher side depending on the time of the day. Although the speed is not that
much fascinating it is good enough for delivering web objects and for backup
purposes although for doing computation it is not suitable. Amazon S3 has a
very impressive support for privacy, integrity, and short-term availability. Long
term availability is unknown as this depends on the internal commitment of
Amazon data centres. Data privacy can be obtained by encrypting the data to be
stored. But this encryption is to be done by the user before storing the data in
S3. One can use SSL with HTTPS to connect to S3 for more security, but this
usage of SSL increases upload/download time also. Data integrity can be
achieved by checking end to end MD5 checking. When an object is stored into
S3 then it returns MD5 of that object. One can easily check it with previously
computed hash value to guarantee data integrity. Short term availability
depends upon the Amazon’s connectivity and load on its server at that instant.
Once the data is in the S3 then it is Amazon’s responsibility to take care of its
availability. They claim that the data is backed up on multiple hard drives in
multiple data centres but doesn’t guarantee this by any Service Level
Agreement. Every AWS account has an Access Key ID, and a Secret Key the ID
is of 20 characters and the Key is a 41-character string. When signing HMAC is
first computed for the sign request parameters using that Key. And in the
Amazon server that HMAC is again computed and compared with the value
previously computed in the client side. These requests also include timestamp to
prevent replay attacks.

• Elastic Compute Cloud: As the name implies EC2 rents cloud of computers to
the users with flexibility of choosing the configuration of the virtual machine-like
RAM size, local disk size, processor speeds etc. Machines that deliver EC2
services are virtual machines running on top of XEN platform. Users can store a
disk image inside S3 and create a virtual machine in EC2 using tools provided by
Amazon. This virtual machine can be easily instantiated using a java program
and can also be monitored. As EC2 is based on XEN it supports any Linux
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 distribution as well as other OSs. Amazon does not promise about reliability of
the EC2 computers. Any machine can crash at any moment, and they are not
backed up. Although these machines generally don’t crash according to the
experience of the users, but it is safe to use S3 to store information which is
more reliable and replicated service. EC2 security model is like that of S3. The
only difference is that the commands are signed with an X 509 private key.
But this key is downloaded from AWS account, so the security depends
fundamentally on theAWS username and password.

b) Google App-Engine
Google App-Engine is a platform for developing and deploying web applications in
Google’s architecture. This provides Platform as a Service to the cloud users. In 2008
Google App-Engine was first released as beta version. Languages supported by Google
App-Engine are python, java, and any extension of JVM languages. App- Engine requires
developers to use only languages which are supported by it, and this is also applied with
APIs and frameworks. Now Google App-Engine allows storing

and retrieving data from a Bigtable non-relational database. App Engine applications
are expected to be request-reply based. Google App- engine provides automatic scalability,
persistent data storage service. Data store features a query engine and transaction
capabilities. These applications are easy to scale as traffic and data storage need to
grow so the cloud user doesn’t have to worry about the spikes in the traffic or data.
These applications are generally suitable for social networking start-ups, event-based
websites catering to seasonal events or institutions (schools, colleges, universities,
government agencies) etc.

c) Windows Azure
Windows Azure is an intermediate in the spectrum of flexibility vs programmer
convenience. These systems use .NET libraries to facilitate language independent
managed environment. This service falls under the category of Platform as a Ser- vice.
Though it is actually in between complete application framework like Google App-
Engine and hardware virtual machines like EC2. Azure applications run on machines in
Microsoft data centres. By using this service customers can use it to run applications and
store data on internet accessible machines owned by Microsoft. windows Azure platform
provides three fundamental components - compute com- ponent, storage component
and fabric component.

• The Fabric: All Windows Azure application and all the data stored in Azure Storage
live are physically happen inside some of the data centers handled by Microsoft. In
the data center’s the set of machines dedicated to Azure are organized into a fabric.
These machines are managed by fabric controller. These are replicated in five to
seven machines. These controllers are aware of every Windows Azure application
running in that fabric and owns all the resources like computers, switches, load
balancers etc. Controllers monitors, decides which resources to allocate to new

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 applications looking at the configuration file with the application. They also monitor
the running applications

• The Compute Service: The primary goal of this platform is to support many
simultaneous users. (Microsoft also said that they would use Azure to build their
SaaS applications which motivated many potential users.) To allow applications to
scale out Microsoft uses multiple instances of that applications on virtual machines
provided by Hypervisor. Developers use Windows Azure portal through Web
browser and use Windows live ID to sign in into his/her hosting account or storage
account or both.

– Web role instance: As the name implies this type of instance can accept HTTP
or HTTPS requests. For this facility Microsoft uses IIS (Internet Information
Services) as a web server inside the VM provided. Developers can build applications
using ASP.NET, Windows Communication Foundation (WCF) or any other .NET
technology or native codes also like C++. PHP or java-based technologies also
supported in Azure.

– Worker role instance: This type of instances is very similar to that of Web role
instances. But unlike the Web role instances these don’t have IIS configured. They
can be configured to run executable of users’ right. Worker role instance is more
likely to function like a background job. Web role instances can be used to accept
request from the users and then they can be processed by Worker role instances
in a later point of time. For a compute intensive work many Worker role instances
can run in parallel.

– Logging: and monitoring of Azure applications is made easy by provision of ap-

plication wide log. a developer can collect performance related information like
measure of CPU usage, store crash dumps in the storage. Azure doesn’t give the
developer the freedom to use his/her own VM image for Windows Azure. The
platform maintains its own Windows. So

Fig 7.1 Windows Azure component architecture

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 – The Storage Service: Applications running in Azure uses storage of different types:
o Blobs: This is used for storing binary data in a simple hierarchy. Blobs
can have associated metadata with them. A user account can have
oneor more containers and these containers have one or more
o Storage tables: Blobs provide mechanisms for unstructured data but
for more structured purposes tables are more suitable. These tables
are nothing like tables in a traditional database. They are stored in a
group of entities. These tables can be accessed by using ADO.NET Data
Services. SQL is not preferable for scale out issues.
o Queue: This is not a structure like tables or blobs to store data, but
these queues are used to store messages about tasks to be performed by
Worker role instance. These tasks are written by Web role instances on
receiving request from clients. A Worker role instance waiting on that
queue can read the message and perform the task it specifies.

All data in the Windows Azure storage is replicated three times for providing fault
tolerance. Azure also keeps backups in geographically distributed data centers.
Windows Azure storage can be accessed by any Windows Azure ap- plication as well
as any application hosted at another cloud platform. All the blobs, tables, queues are
named using URIs and can be accessed by HTTP methods calls. Some applications
have inherent need for relational databases. This is provided in the form of SQL Azure.
This is built on Microsoft SQL Server. This data can be accessed via ADO.NET or by
other Windows data access interfaces.

8. Issues in Cloud Computing

Cloud Computing is a new name for an old concept. The delivery of computing services from a
remote location. Cloud Computing is Internet-based computing, where shared resources, software,
and information are provided to computers and other devices on demand. Major issues in Cloud
Computing are:

a) Privacy: The user data can be accessed by the host company with or without permission.
The service provider may access the data that is on the cloud at any point in time. They
could accidentally or deliberately alter or even delete information.

b) Compliance: There are many regulations in places related to data and hosting. To comply
with regulations (Federal Information Security Management Act, Health Insurance
Portability and Accountability Act, etc.) the user may have to adopt deployment modes
that are expensive.

c) Security: Cloud-based services involve third-party for storage and security. Can one
assume that a cloud-based company will protect and secure one’s data if one is using their
services at a very low or for free? They may share users’ information with others. Security
presents a real threat to the cloud.

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 d) Sustainability: This issue refers to minimizing the effect of cloud computing on the
environment. Citing the server’s effects on the environmental effects of cloud computing,
in areas where climate favours natural cooling and renewable electricity is readily
available, the countries with favourable conditions, such as Finland, Sweden, and
Switzerland are trying to attract cloud computing data centres. But other than nature’s
favours, would these countries have enough technical infrastructure to sustain the high-
end clouds?

e) Abuse: While providing cloud services, it should be ascertained that the client is not
purchasing the services of cloud computing for a nefarious purpose. In 2009, a banking
Trojan illegally used the popular Amazon service as a command-and-control channel that
issued software updates and malicious instructions to PCs that were infected by the
malware So the hosting companies and the servers should have proper measures to
address these issues.

f) Higher Cost: If you want to use cloud services uninterruptedly then you need to have a
powerful network with higher bandwidth than ordinary internet networks, and if your
organization is broad and large so ordinary cloud service subscription won’t suit your
organization. Otherwise, you might face hassle in utilizing an ordinary cloud service while
working on complex projects and applications. This is a major problem before small
organizations, that restricts them from diving into cloud technology for their business.

g) Recovery of lost data in contingency: Before subscribing any cloud service provider
goes through all norms and documentations and check whether their services match your
requirements and sufficient well-maintained resource infrastructure with proper
upkeeping. Once you subscribed to the service you almost hand over your data into the
hands of a third party. If you can choose proper cloud service, then in the future you don’t
need to worry about the recovery of lost data in any contingency.

h) Upkeeping(management) of Cloud: Maintaining a cloud is a herculin task because a

cloud architecture contains a large resources infrastructure and other challenges and risks
as well, user satisfaction, etc. As users usually pay for how much they have consumed the
resources. Sometimes it becomes hard to decide how much should be.

i) Lack of resources/skilled expertise: One of the major issues that companies and
maintaining a cloud is a herculin task because a cloud architecture contains a large
resources infrastructure and other challenges and risks as well, user satisfaction, etc
enterprises are going through today is the lack of resources and skilled employees. Every
second organization is seeming interested or has already been moved to cloud services.
That’s why the workload in the cloud is increasing so the cloud service hosting companies
need continuous rapid advancement. Due to these factors, organizations are having a
tough time keeping up to date with the tools. As new tools and technologies are emerging
every day so more skilled/trained employees need to grow. These challenges can only be
minimized through additional training of IT and development staff.

9. Anatomy of Cloud Computing

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 9.1 Provisioning and Configuration Module:
It is the lowest level of cloud and typically resides on bare hardware (as a firmware) or on the top
of the hypervisor layer. Its function is to abstract the underlying hardware and provide a standard
mechanism to spawn instance of virtual machine on demand. It also handles the post-
configuration of the operating systems and applications residing on the VM.

9.2 Monitoring and Optimization:

This layer handles the monitoring of all services, storage, networking, and applications
components in cloud. Based on the statistics, it could perform routine functions that optimize the
behaviour of the infrastructure components and provide relevant data to the cloud administrator
to further optimize the configuration for maximum utilization and performance.

9.3 Metering and Chargeback:

This layer provides functions to measure the usage of resources in cloud. The metering module
collects all the utilization data per domain per use. This module gives the cloud administrator
enough data to measure ongoing utilization of resources and to create invoices based on the
usage on a periodic basis.

9.4 Orchestration:
Orchestration is a central to cloud operations. Orchestration converts requests from the service
management layer and the monitoring, chargeback modules to appropriate action item which are
then submitted to provisioning and configuration module for final closure. Orchestration updates
the CMDB in the process.

9.5 Configuration Management Database (CMDB):

It is a central configuration repository wherein all the meta data and configuration of different
modules, resources are kept and updated in the real-time basis. The repository can then be
accessed using standards protocols like SOAP by third-party software and integration
components. All updates in CMDB happen in real time as requests get processed in cloud.

9.6 Cloud Life cycle Management Layer (CLM):

This layer handles the coordination of all other layers in cloud. All requests internal and external
are addressed to the CLM layer first. CLM may internally route requests and actions to other
layers for further processing.

9.7 Service CatLog:

It is central to the definition of cloud; SC defines what kind of services the cloud can provide and
at what cost to the end user. SC is the first thing that is drafted before a cloud is architecture. The
service management layer consults SC before it processes any request for a new resource.

10. Cloud Computing Services in Financial Market

A Cloud Computing readiness approach can be adopted by capital market and other financial firms

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 to make clear decisions upon their approach of handling day to day fiscal problems and to adapt
the cloud computing services on the go. In this digital age of computers and networks, one of the
major discoveries in information technology is Cloud computing. Cloud Computing is a wireless
shared stream of resources networked to offer wide range of services. The services include storage,
servers, software development platform and all the web hosting service in a “virtual” environment.
It is the data manipulation and services offered over internet in pay-as-you-go model, which means
you do pay only for what you use. No advance payment or post payment.

10.1 Role of Cloud Computing in Financial Market –

• Software as a service (SaaS): A cloud-based Customer Relationship Management
(CRM) platform that can be used by a firm to connect with customers and staff
representatives.

• Platform as a service (PaaS): A platform cloud that helps developers build, host and
scale applications through datacentres and host web applications on the same systems.

• Infrastructure as a Service (IaaS): An infrastructure cloud web service that provides

resizable compute, storage capability and network capacity on the cloud.

• Business Process as a Service (BPaaS): An Online business process services for HR,
benefits administration and outsourcing of various tasks.

• Data as a Service (DaaS): A public data service that makes large datasets easy to
explore, visualize and communicate for trading and investment purposes.
1. Public Cloud: It is open to all around the web. The cloud provider manages
and owns everything from operations and facilities to manipulate resources.

2. Private cloud: A private cloud is available only to trusted and confidential

group of users of an organization or group of the financial firm.

3. Hybrid cloud: A hybrid cloud is a mix of multiple public and private clouds.

4. Community Cloud: A community cloud is accessible to the members of a

larger community comprised of different organizations under the same cloud
to share and address the resources.

10.2 Features of Cloud Computing Services:

• Resilient resources accessed in self-service mode with pay for use basis.
• Depending upon the size of the business the bandwidth requirements is calculated.
• Bandwidth of the spectrum and the accessing of services is directly proportional.

10.3 The key Benefits of Cloud Computing are:

• Business agility in upfront cost-cutting.
• The capital expenditure of hardware maintenance and management is reduced.

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 • Cloud leverages the power and performance of the service by accessing the remote
resources.
• And if your computer breakdown doesn’t worry all your data are in cloud.
• There by ensuring data security and compliance.
• The accuracy and speed of software implementation is greatly achieved.
• The growth prospects are maintained in time to market business strategy.
• Complexity is much lowered with the help of middleware as a service.
Cloud computing services accelerates the business in Financial Market by, Cost Reduction,
Optimizing Resources, and Improving the Market Activities. In much simpler terms internet of
things collects big data with various devices and store it in cloud and the same being accessed and
controlled in cloud.

11. Economics of Cloud Computing

Economics of Cloud Computing is based on the PAY AS YOU GO method. Users/Customers must
have to pay only for their way of usage of the cloud services. It beneficial for the users. So that
Cloud is economically very convenient for all. Another side is to eliminate some indirect cost
which is generated by assets such as license of software and their support. In cloud, users can use
software application on subscription basis without any cost because the property of the software
providing service remains to the cloud provider.

Economical background of cloud is more useful for developers in the following ways:
• Pay as you go model offered by cloud providers.
• Scalable and Simple.

Cloud Computing Allows:

• Reduces the capital costs of infrastructure.
• Removes the maintenance cost.
• Removes the administrative cost.

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 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 minimize 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 which are introduced by the Cloud Computing: Tiered
Pricing, Per-unit Pricing, and Subscription based Pricing. These are explained as following below.

a) Tired Pricing: Cloud Services are offered in the various tiers. Each tier offers fix service
agreements at specific cost. Amazon EC2 uses this kind of pricing.

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 b) Per-unit Pricing: The model is based upon the unit specific service concept. Data
transfer and memory allocation includes in this model for specific units. Go Grid uses
this kind of pricing in terms of RAM/hour.

c) Subscription based Pricing: In this model users are paying periodic subscription fee
for the usage of software.

So, these models give more flexible solutions about cloud economy.

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 Conclusion
There are many more players in the on-demand market that many reports acknowledge. These
range from basic infrastructure offerings (IaaS), through platform support (PaaS) to full applications
(SaaS). The long-term cost of ownership may at first not seem to add up but take into consideration
other factors such as reduced risk and added value and for many organisations on-demand services
make a lot of sense. Cloud computing is changing the way IT departments buy IT. Businesses have a
range of paths to the cloud, including infrastructure, platforms and applications that are available
from cloud providers as online services. Many people may be confused by the range of offerings
and the terminology used to describe them and will be unsure of the risk and benefits. This gallery,
written for Computer Weekly, by Bob Tarzey of Quocirca aims to provide further insight.

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