![Page 1: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/1.jpg)
Cloud Computing& Business
Tim PrestonTuesday,
September 27, 2011
![Page 2: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/2.jpg)
Presentation Gameplan
1. Cloud computing & business introduction2. Business approaches to cloud computing3. Cloud financial decision models4. Recommendations
![Page 3: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/3.jpg)
Cloud Computing Quotes…and Hidden Agendas
![Page 4: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/4.jpg)
Articles Surveyed
• Dispelling the vapor around cloud computing. IBM• Above the Clouds: A Berkeley View of Cloud
Computing. UC Berkeley• Cloud Computing ROI Assessment. BTC Logic• Cost of cloud computing, expensive! up.time IT
Systems Management Blog
![Page 5: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/5.jpg)
* The Berkeley article argues that private clouds are not included in cloud computing.
*
![Page 6: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/6.jpg)
IBM’s take on the cloud• Industry-wide survey of companies in 2009• Findings:– Private clouds > public clouds right now– Privacy/security are #1 barrier– Many workloads are cloud-inappropriate
• Survey bias: large companies (1k-10k employees)
• My opinion: small/startup companies need the cloud more than anyone!
![Page 7: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/7.jpg)
Berkeley View
Next: Berkeley economic arguments to support cloud computing
![Page 8: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/8.jpg)
![Page 9: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/9.jpg)
Berkeley Cloud Performance Assessment
• In practice, virtual machines can share CPU’s and main memory surprisingly well.– CPU’s already handle context switching well; VM-
switching is similar to a special case of this.– Ex., when running the STREAM memory benchmark on
75 EC2 instances, μ = 1355 MB/s, and σ = 52 MB/s (< 4% of μ)
• I/O, via disks and the network, are another story.– Ex., for a 1 GB disk write by 75 EC2 instances, μ = 55
MB/s, and σ = 9 MB/s (> 16% of μ)– Network issues will be discussed next…
![Page 10: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/10.jpg)
Data transfer bottlenecks
![Page 11: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/11.jpg)
If this statement is true, then we are better off with a cloud.Note: this model assumes that revenue is proportional to user hours, and that revenue is not affected by whether we’re on a cloud or not.
Berkeley Cloud Decision Model
![Page 12: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/12.jpg)
More Detailed Cloud Decision Modeling
• Next, we’ll examine BTC Logic’s model– Based on ROI (Return on Investment) analysis– Concrete calculations are based on a blog entry by
up.time IT Systems Management Blog
![Page 13: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/13.jpg)
![Page 14: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/14.jpg)
![Page 15: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/15.jpg)
![Page 16: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/16.jpg)
![Page 17: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/17.jpg)
http://www.uptimesoftware.com/uptimeblog/cloud-virtualization/cost-of-cloud-computing-expensive/
![Page 18: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/18.jpg)
Recommendations FOR clouds• Startup business can greatly benefit from public
clouds by “testing the waters” without making risky hardware purchase decisions
• Servers with “spike & flatline” demand• Non-computing businesses: public clouds can
help companies focus on core competencies• Web software companies: public clouds can
allow all employees to work in one location – not necessarily the location where web apps are hosted– Ex., California developers & Idaho electricity costs
![Page 19: Cloud Computing & Business Tim Preston Tuesday, September 27, 2011](https://reader035.vdocument.in/reader035/viewer/2022062714/56649d015503460f949d47fe/html5/thumbnails/19.jpg)
Recommendations AGAINST clouds
• Software shouldn’t be in the cloud if:– It’s subject to government regulations or
auditability requirements; ex., Sarbanes-Oxley– It processes very sensitive information; ex., health
care records– Its workloads are network-heavy, and heavy
control of bandwidth is required; ex., streaming audio/video applications
– It can be easily run independently on a user’s desktop (why bother putting it on a cloud?)