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Cloud Computing & Business

Cloud Computing & Business. Tim Preston Tuesday, September 27, 2011. Presentation Gameplan. Cloud computing & business introduction Business approaches to cloud computing Cloud financial decision models Recommendations. Cloud Computing Quotes… and Hidden Agendas. Articles Surveyed.

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Cloud Computing & Business

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  1. Cloud Computing& Business Tim Preston Tuesday, September 27, 2011

  2. Presentation Gameplan • Cloud computing & business introduction • Business approaches to cloud computing • Cloud financial decision models • Recommendations

  3. Cloud Computing Quotes…and Hidden Agendas

  4. 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

  5. * * The Berkeley article argues that private clouds are not included in cloud computing.

  6. 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!

  7. Berkeley View Next: Berkeley economic arguments to support cloud computing

  8. 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…

  9. Data transfer bottlenecks

  10. Berkeley Cloud Decision Model 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.

  11. 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

  12. http://www.uptimesoftware.com/uptimeblog/cloud-virtualization/cost-of-cloud-computing-expensive/http://www.uptimesoftware.com/uptimeblog/cloud-virtualization/cost-of-cloud-computing-expensive/

  13. 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

  14. 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?)

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